4.19.21 Clerical

Manual Transmittal

December 03, 2021

Purpose

(1) This transmits revised IRM 4.19.21, Liability Determination, Clerical.

Scope

This IRM section contains general information on procedures and administrative matters relative to Examination (Exam) Clerical functions. This is to be used as a guide for all Campus Exam functions.

Material Changes

(1) IRM 4.19.21.2(1), Processing Incoming Correspondence, Added language to address incoming correspondence from the Document Upload Tool (DUT), Document Insert Tool (DIT) and Taxpayer Digital Communication (TDC).

(2) IRM 4.19.21.2(6), Processing Incoming Correspondence, If and Then table 4th row --clarification of USPS yellow label use. IPU 21U0778 issued 05-26-2021.

(3) IRM 4.19.21.2.1.1, Exam Mail Process (EMP) Stages, Provided additional information related to the EMP stages.

(4) IRM 4.19.21.2.1.6, Exam Mail Process (EMP) Divide and Assign, Added subsection to provide instructions for the EMP Divide and Assign stage.

(5) IRM 4.19.21.2.3, Open Case Undeliverable Mail, Added subsection to provide instructions on processing undeliverable mail on open cases. Also incorporated instructions from IPU 21U0778.

(6) IRM 4.19.21.8(1) Address Change-IDRS, Added clarification of USPS yellow label use. IPU 21U0778 issued 05-26-2021

(7) Updated content to improve the readability using plain language to help the reader understand the content on the first read.

Effect on Other Documents

IRM 4.19.21, Clerical, dated December 14, 2020 effective January 01, 2021 is superseded. IPU 21U0778 has been incorporated into this IRM.

Audience

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

Effective Date

(01-01-2022)

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

Program Scope and Objectives

  1. Purpose: This IRM section contains guidance and general information on procedures relative to Examination (Exam) Clerical functions. Clerical support activity is basic in nature, however because of varied duties - cross training is essential.

  2. Scope: Because each site unitizes their clerical staff differently this IRM is written as a guide regarding the most common clerical duties. It is not all-inclusive.

  3. Audience: Wage and Investment (W&I) and Small Business and Small Business/Self Employed (SB/SE).

  4. Policy Owner: The Director of Returns Integrity and Compliance Services (RICS), Wage and Investment (W&I) Division and Small Business/Self Employed (SB/SE).

  5. Program Owner: The Director of Returns Integrity and Compliance Services (RICS), Wage and Investment (W&I) Division.

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

  7. Contact Information: To recommend changes or make any other suggestions for this IRM section send an email to the IRM author or utilize the Servicewide Electronic Research Program (SERP) Feedback Application.

Background

  1. This IRM provides uniform guidelines for the handling of incoming correspondence from taxpayers in reply to Computer Program (CP) notices sent by IRS. Also addressed are the generalized methods and set time frames that cases are held open at each step in the examination process.

  2. This subsection provides information on specific programs worked in Wage and Investment Examination (W&I) and Small Business/Self Employed (SB/SE) Campus Examination Operations.

Authority

  1. Congress has delegated to the IRS the responsibility of administering the tax laws, known as the Internal Revenue Code, found in Title 26 of the United States Code. Congress enacts these tax laws, and the IRS enforces them.

  2. (See Policy Statement P-1-236, Fairness and Integrity in Enforcement Selection). "http://imdtrack.web.irs.gov/IG_Uploads/IRS.gov_Yes/OUO_No/policy_statement_1_236.pdf"

Roles and Responsibilities

  1. The Director, Refundable Credits Program Management is the executive responsible for the policies and procedures of this work.

  2. The Return Integrity & Compliance Services (RICS), Refundable Credits Program Management (RCPM), Exam Policy & Coordination (EPC), Earned Income Tax Credit (EITC) group oversees the work performed at the W&I sites.

  3. IRS employees are expected to carry out their duties with integrity and fairness, which means they must administer tax laws to all taxpayers and tax professionals equitably. Employees must exercise their professional judgment, not personal opinions, in conducting their enforcement responsibilities.

Program Management and Review

  1. Each frontline manager ensures timely completion of the work performed in that unit, addresses issues that may come up and notifies the Department Manager of ongoing problems.

  2. Local problems are resolved at the local level. Problems of a more serious nature that cannot be resolved at the first line are reported to the Planning and Analysis (P&A) Staff. If the work problem or stoppage is determined to be something that could or would affect Exam nationwide, P&A will report the issue to the Headquarters analyst for resolution and possible all site notification.

Acronyms

  1. Some acronyms used in Examination are listed below.

    ACE Automated Correspondence Exam
    AIMS Audit Information Management System
    APOTS Always Part of the Solution
    BLP Batch Leveraging Process
    CC Command Code
    cc Closing Code
    CEAS Correspondence Examination Automation Support
    CIS Correspondence Imaging System
    DIT Document Insertion Tool
    DUT Document Upload Tool
    EMP Examination Mail Process
    EMT Examination Mail Tool
    RGS Report Generation Software
    RIVO Return Integrity and Verification Operation
    SNOD Statutory Notice of Deficiency
    SSN Social Security Number
    TDC Taxpayer Digital Communication
    TY Tax Year
    TIN Taxpayer Identification Number
    URT Undeliverable Reply Tool

  2. Additional listings can be found at http://rnet.web.irs.gov/Resources/Acronymdb.aspx

Related Resources

  1. Liability Determination - Examination IRM structure is as follows:

    • 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, Refundable Credits Strategy

    • RM 4.19.15, Discretionary Programs

    • IRM 4.19.16, Claims

    • IRM 4.19.17, Non-Filer Program

    • IRM 4.19.19, Campus Examination Telephone Contacts

    • IRM 4.19.20, Automated Correspondence Exam (ACE) Processing Overview

    • IRM 25.23.10, Compliance Identity Theft Case Processing

Processing Incoming Correspondence

  1. Correspondence is received by mail, fax, E-fax, Document Upload Tool (DUT), Taxpayer Digital Correspondence (TDC) received by email, and/or referrals from other areas.

  2. Date stamp all paper correspondence within two business days of receipt in Examination

  3. For digital and faxed correspondence received, no date stamp action is required. The date will already be present on correspondence submitted digitally (TDC, DUT, Fax). Exception: If the fax is received from another internal department, date stamp to show when the Exam Operation actually received it.

    • If fax receipts are not dated and time stamped by the fax machine, follow paper correspondence procedures.

    • Consider faxes received by an E-fax machine before 2 p.m., local time, timely received. Take no further action to evidence receipt.

    • If no date shows on an E-Fax, date stamp the E-fax based on the guidelines provided.

  4. To protect taxpayer privacy, the Service masks social security numbers (SSNs) on certain Computer Paragraph (CP) notices. Some notices display the entire SSN while others display the SSN redacted/masked (e.g., xxx -xx -1234). To identify the account information for masked SSNs, use hand-held scanners to read the barcode. If the hand- held scanner is unavailable or unable to read the bar code, use CC TPIIP. For additional information on CC TPIIP, refer to IDRS Command Code Job Aid located on the Servicewide Electronic Research Program (SERP) under IRM Supplements.

  5. Update correspondence with the earliest IRS received date within five business days of the earliest Exam received date.

  6. Process all incoming correspondence through an initial mail sort as shown in the following if and then table: Correspondence will be researched to determine the location of the case.

    If then
    No open AIMS or indication of closed AIMS Route to the proper areas within five workdays.
    Agreed mail without comments or documents
    1. If paper file exists, associate with paper file.

    2. Send to the proper unit/team and update to Status 51.

    3. Handle the case as priority work.

    .
    Agreed mail with comments or documents
    1. If paper file exists, associate with paper file.

    2. Update case to show correspondence status.

    3. Assign to team.

    Note:

    Campuses using the Exam Mail Process (EMP) will refer to the Exam Mail Tool (EMT) User Guide to process correspondence.

    Undeliverable AIMS Status 90 Associate undeliverable documents with case file by completing Form 9856, Attachment Alert, and routing to files.
    Undeliverable AIMS Status 90 - totally automated (Blocking Series 40X)
    1. Enter a transaction code (TC) 290 for .00.

    2. The undeliverable document is the source document for the ADJ54. It will be attached to the ADJ54 print and routed to Files.

    Unclaimed and/or refused mail from the post office AIMS Status 24 (certified mail is sent to the correct address but was not claimed by the taxpayer) Place unclaimed mail into the case file and update RGS/CEAS to status code 2497.

    Note:

    Do not overwrite status code 2498.

    Miscellaneous transcripts, reports and or charge outs Route to the proper unit/team within Exam based on the campus policy.
    Correspondence
    1. Use EMT to research systems and generate a cover sheet. If EMT does not provide enough information research IDRS/RGS/CEAS to determine how to route or assign the correspondence.

    2. If the case is assigned, route to assigned examiner or team with 5 business days of the Exam mail received date.

    3. If the case is an unassigned batch case, update and route mail within 5 business days of Exam received date based on local management procedure.

    4. If the case is an unassigned manual case, associate mail, update, and route mail within 5 business days of the Exam received date based on local management procedure.

    AIMS Status 90 and meets audit reconsideration criteria (TC 300 is unpaid or an unreserved credit) Send to Centralized Reconsideration Unit (CRU) IRM 4.13.3, Central Reconsideration Unit.
    AIMS Status 90 and does not meet audit reconsideration criteria Route to team to work Closed Case Mail. See IRM 4.19.13.10.5, Correspondence or Return Received on Closed Examinations Not Meeting Audit Reconsideration Criteria.
     

  7. The following table details the Exam incoming correspondence workflow update process.

    In status 10 ~ mail received
    (Correspondence received before Form 4549 has been issued to the taxpayer)
    1. Update to status 54 ~ team Employee Group Code (EGC).

    2. Assign to a tax examiner to work.

    In status 2298, 2398 or 2598 ~ mail received
    1. Update to status 54 ~ team EGC.

    2. Assign to tax examiner to be worked.

    In status 2498 ~ mail received Status does not change. Once in status 2498 the case is always in status 2498
    1. Update correspondence date ~ team EGC.

    2. Assign to tax examiner to be worked.

  8. For W&I only do not update the cases to Status 54 when correspondence is received with no information or the taxpayer only provided a telephone number. Process this type of correspondence as follows:

    If Then
    Mail has no written response or documents submitted, but has a telephone number
    1. Insert the new telephone number.

    2. Send 131C letter to the taxpayer acknowledging receipt of the mail and state “We received your correspondence and updated your telephone number, but there was no written response or documents included. If needed, you can fax your documentation to (enter fax number) or mail it to the address in this letter.”

    3. Input a non-action note stating that mail was received, but no written response or documents were provided.

    Mail has no written response or documents submitted
    1. Send 131C letter to the taxpayer acknowledging receipt of the mail and state “We received your correspondence, but there was no written response or documents included. If needed, you can fax your documentation to (enter fax number) or mail it to the address in this letter.

    2. Input a non-action note stating that mail was received, but no written response or documents were provided.

Exam Mail Process (EMP)

  1. The Exam Mail Process (EMP) is a streamline process for incoming exam correspondence. The two user tools that systemically assist with researching and updating taxpayer mail and undeliverable/unclaimed letters are the Exam Mail Tool (EMT) and the Undeliverable Reply Tool (URT). The EMT Guide- provides guidance on correspondence sorting. The URT User Guide provides guidance on processing undeliverable/unclaimed letters.

  2. The EMP streamlines the processing of incoming Exam correspondence utilizing a centralized workstation.

  3. The EMP applies to incoming correspondence, paper, faxed and digital. However, it is recommended that the different types of mail be processed separately through EMP (paper, fax, DUT).

  4. The process utilizes a U - shaped workstation configuration. This configuration allows for all mail processing to be visible and performed in one central location, which allows for flexibility of planning and staffing, and improves the quality by promoting teamwork.

  5. Each desk on the two arms of the workstation operates independently. One arm may be shut down when the work volume is low. Duties can be specialized or rotated to allow flexibility.

Exam Mail Process (EMP) Stages
  1. The Five Stages are as follows:

    1. Raw Sort - a preliminary sort of all incoming correspondence, to pull closed agreed cases and obvious misroutes. Separate correspondence into different mail types.

    2. Research - Input through EMT to research CEAS and AIMS.

    3. Secondary Sort - Associate EMT coversheets with correspondence. Information provided on the EMT coversheets is used to separate correspondence to be further researched or updated and routed accordingly.

    4. Move and Update - move to central mail handling group and update correspondence received date.

    5. Divide and Assign - distribute work to correspondence examination teams.

  2. To make work visible for monitoring purposes, it is recommended that wire baskets are used to separate paper correspondence through each clerical stage.

  3. Use carts for the Move and Update stage to easily move work around the workstation.

  4. Use specific filters for the Raw Sort and Secondary Sort. Sort the taxpayer replies and placed in the corresponding labeled basket. Additions or deletions to these established filters are not recommended.

Exam Mail Process (EMP) Raw Sort
  1. Perform the following actions during the EMP Raw Sort:

    1. Date stamp correspondence to identify the Exam received date, see IRM 4.19.21.2.2, Correspondence Filtered from the Exam Mail Process.

    2. The following are the Raw Sort filters. The correspondence identified by these filters is excluded from EMP and processed manually. Refer to the Examination Mail Tool (EMT) Users' Guide for a detailed explanation.

    Correspondence Description Basket ID
    Correspondence scanned through the Correspondence Imaging System CIS Prints
    Form 4442 (without attachments) Form 4442
    Signed Form 886-H (without attachments) Form 886-H
    Innocent Spouse Form 8857
    A taxpayer’s request to make payments or completed “How to Pay” document with no additional documentation attached Installment Agreements
    Form 2848 or Form 8821 (without documents) POAs
    Indication of payment without signature document (green rocker) Possible Payments
    Undeliverable or Unclaimed Letter 3219 – Statutory Notice of Deficiency Undeliverable or Unclaimed 90-Day Letter Undeliverable or Unclaimed 90-Day Letter
    Undeliverable or Unclaimed Letter 105C/ Letter 106C Undeliverable or Unclaimed Letter 105C/ Letter 106C
    Undeliverable or Unclaimed Letters, e.g., 566, 566B, 566E, 525, 692, 3501, 3540, 3540-A, 3541, 3541-A, CP75 Undeliverable or Unclaimed Letters

  2. After the Raw Sort, assemble the remaining correspondence into bundles of 25 for EMT input.

Exam Mail Process (EMP) Research
  1. The bundles are pulled by the clerks working the EMP Research stage. Clerks will perform the following actions:

    1. Input correspondence into EMT. Run and print EMT coversheets.

    2. Complete any additional research and actions required may be completed at this stage to identify missing social security numbers (SSNs), identify correct tax years, create missing RGS records, etc., to prepare the correspondence to continue through EMP.

    3. If extensive research is required, refer the unresolved correspondence to the work leader.

Exam Mail Process (EMP) Secondary Sort
  1. Use the following filters to prepare for the EMP Secondary Sort. Exclude from EMP any correspondence identified by these filters and process manually. Refer to the EMT User Guide for a detailed explanation.

    AIMS Status/EGC/RGS Group Basket ID
    Assigned to a non-EMP Group Group EGC #
    Future Status 24 date Future Status 24
    No indication of Exam activity (no TC 420, -L freeze or TC 300) No Exam
    Other Campus/Office (and does not meet Self-Assign criteria) Primary Business Code (PBC) #
    Pending CRD update on CEAS or already in Status 5x/mail handling group Possible Duplicates
    Pending Status 22 Pending Status 22
    RGS Group B1/B2/Batch Team B1/B2/Batch Team
    Status 09 or below Not started
    Status 51 Recon Status 51
    Status 90 or Status 7XXX Closed Case Mail – some sites may sort into Closed Case Mail and Audit
    Subsequent replies Status xx98 – reassign correspondence to the examiner that who worked prior correspondence. This is optional based on local procedure Refiles/Reassign
    Unresolved issues – missing SSNs, etc. requiring extensive research Unresolved

EMP Mail Process (EMP) Move and Update
  1. Clerks assigned to the EMP Move and Update stage collect bundles of correspondence from the cart using the following criteria:

    1. By EGC

    2. In CRD order from the oldest date

    3. In no more than bundles of 50 pieces of correspondence

  2. Move the cases from RGS Group B0 or other EMP group to the RGS Mail Handling group. Print the CEAS Assign Summary.

  3. When updating AIMS and CEAS through RGS, clerks should include a unique identifier in the Action Text. The unique identifier can be either the clerk’s initials or RGS user number as determined by local management. The following Action Text references the clerk identifier as XXX.

  4. Update AIMS and CEAS through RGS for each piece of correspondence in the bundle following normal correspondence update procedures. The Action Text input will be ‘EMPReplyXXX.’ Associate the correspondence with any physical case files during this step.

Exam Mail Process (EMP) Divide and Assign
  1. The clerk(s) assigned to EMP Divide Assign stage collect the updated bundles and divide the work for assignment according to local procedures.

  2. Update AIMS and CEAS through RGS to the designated EGC following normal update and assign procedures. The Action Text input will be ‘AssignNNXXX,’ where NN is the RGS Group Number.

Correspondence Filtered from the Exam Mail Process (EMP)

  1. Correspondence filtered during the Raw Sort and Secondary Sort requires clerical action outside the Exam Mail Process (EMP).

  2. Complete the following actions on correspondence filtered from the Raw Sort as shown in the following table:

    If Filter ID: Then
    CIS Prints Assign to technical CET to determine if:
    1. Correspondence Imaging System (CIS) information was already considered or

    2. CIS information will be treated as correspondence.

    Form 886-H Assign to technical CET to determine if:
    1. Taxpayer qualifies for personal Earned Income Tax Credit (EITC) and revised report required or

    2. Form 886-H will be treated as correspondence.

    Form 4442 Assign to technical CET to determine if:
    1. Information was already considered or

    2. If case is assigned, route accordingly. If case is unassigned, route to a technical team for resolution. Do not update as mail but treat as a priority.

    Form 8857 Follow IRM 4.19.13.23, Innocent Spouse Relief/Joint and Several Liability.
    Form 12203
    (For W&I only)
    These forms need to be expedited. Route to the Appeals Coordinator for technical review and necessary action.
    Form 14027 B/Form 14039
    1. Print and attach research to determine proper routing.

    2. Forward to local Exam Identity (ID) Theft Coordinator for review and action.

    Installment Agreement Assign to technical CET for review to determine if the case will be:
    1. Closed agreed and then forward Installment Agreement (IA) request to the co-located Collection operation or

    2. Treated as correspondence.

    POAs Follow IRM 4.19.13.8, Power of Attorney and Other Third Party Authorizations.
    Shared Responsibility Payment (SRP) Worksheets If the taxpayer only provides a copy of the SRP worksheet during the Raw sort for tax years 2018 and prior, do not update to status 54, 55 or 57 through the Exam Mail Tool (EMT). Make a copy of the worksheet and send to the designated SRP area. Then forward the original worksheet to the assigned exam group or individual. Input a Non-Action CEAS note saying the worksheet was receive, copied, and forwarded.
    No Response Follow IRM 4.19.13.12, No Response and Unagreed Cases.
    Possible Payments Pre 90- Day Route to technical team (CET) to determine if case can be closed agreed per full payment.
    Possible Payments post 90-Day Case cannot be closed without a signed agreement from the taxpayer regardless if case is full paid.
    Undeliverable or Unclaimed 90-Day Letter Follow IRM 4.19.21.2(1)(b), Processing Incoming Correspondence.
    Undeliverable or Unclaimed Letters 105C/106C
    Undeliverable or Unclaimed Letters

  3. Complete the following actions on correspondence filtered from the Secondary Sort:

    If Filter ID Then
    Group Employee Group Code (EGC #) EGC owner is completes necessary action.
    Future Status 24 Follow IRM 4.19.20.2.6,Aging, to determine account update.
    Aged Mail Treat as priority for manual update and assignment, follow IRM 4.19.13.11, Monitoring Overaged Replies.
    No Exam Follow All Campuses "Mail Routing Guide” to determine proper routing.
    A different Primary Business Code (PBC) Follow Automated Integrated Management System (AIMS) /Exam Return Control System (ERCS) Contacts to determine proper routing.
    Possible Duplicates
    1. Look at the Action Text

      • If ‘Reply 54XXX,’ associate the duplicates together.

      • If ‘Reply EPTXXX,’ it is waiting to be updated to a group and is in an assign bundle. Locate and associate the duplicates together.

    2. Make sure the oldest correspondence date is reflected on AIMS/CEAS.

    Pending Status 22
    1. Make a current AIMS print and monitor CEAS for the status update.

    2. Once the ‘P’ drops off the record the case can be returned to EMP.

    Status >10 Assign to technical team to issue the initial contact letter.
    Status 51 Assign to a technical team to determine if:
    1. Correspondence was considered or

    2. if action required.

    Closed Case Mail Complete first read to determine if meets audit recon criteria or closed mail criteria or if already considered.
    Refiles (cases previously worked by CETs) Pull physical case to determine examiner that worked prior correspondence and complete update and assignment. (Follow local procedures regarding correspondence assignment)
    Unresolved Forward for technical review to determine the correct action for the correspondence.

Open Case Undeliverable Mail

  1. Taxpayers have a right to receive information concerning any federal taxes assessed against them. The Service is required to exercise due diligence to find and use taxpayer’s last known address. Treas. Reg. Section 301.6212-2(a) defines “last known address” as the address on the most recently filed and properly processed tax return unless the taxpayer has clearly and concisely notified the IRS of a change of address. In addition, the IRS also updates the taxpayer’s address of record by using the United States Postal Service’s (USPS) National Change of Address database (NCOA) in accordance with Treas. Reg. 301.6212-2. Undeliverable mail is given priority to ensure that letters are timely sent to the taxpayer’s correct address.

  2. Instruction for closed case undeliverable letters and unclaimed mail can be found in the table under 4.19.21.2 (5).

  3. Sort undeliverable letters by initial contact/30 day and certified/registered letters. (Envelopes for certified/registered mail should be stapled to the notices.) While research is the same for all undeliverable letters, the resulting actions are different. When you are performing IDRS research and find a positive result (new address, IDT indicator, etc.) for the research being performed, print a copy of the IDRS screen and staple it to the letter.

  4. Review CC ENMOD or IMFOLE and AIMS for an Identity Theft (IDT) indicator. If an IDT indicator is present, take no further action and route the undeliverable to the ID Theft Liaison for technical review/action.

  5. Perform research for a new address. Use the Integrated Automation Technologies (IAT) tool and the Undeliverable Research Tool (URT) for researching and updating whenever possible.

    Note:

    Yellow labels are “excluded” from the entry into URT.

    1. The IRS may update the taxpayer's last known address using a USPS yellow sticker if the IRS performs research and is reasonably confident that the individual on the yellow sticker is the taxpayer in question. Use the following table to decide if the taxpayer address can be updated with the address provided on the yellow USPS label.

      Determining a new address using the USPS yellow label

      If Then
      The taxpayer's name printed in the letter and shown on the yellow label are an exact match, but the address is different Update the taxpayer address on IDRS and RGS to the yellow label address
      If the taxpayer first name is “like that” on the Yellow Label, but the last name is an exact match Research to see if IRS records show any other taxpayers with similar first names and the exact same last name at the same address.
      If there are no similar names, update the taxpayer address on IDRS and RGS to the address on the yellow label.
      If there are similar names, do not update the address.
       

    2. If there is no yellow label or the yellow label could not be used to update the address, check IDRS command code ENMOD for a new address. If there is a new address on IDRS, different than the one on the letter, print and staple the IDRS print to the undeliverable letter.

      Note:

      Prior to remailing letters to the taxpayer, remove the attached IDRS research print.

  6. If no new address is found and the return is not married filing joint (MFJ), check INOLES to see if the taxpayer is deceased.

  7. Check CFINQ for an active POA or Fiduciary for all cases where the taxpayer is not deceased, no other address was found and no POA or Fiduciary included on original mailing.
    The table below lists the actions to take after research is completed.

    Note:

    All research and actions taken must be documented in a CEAS Non-Action Note or on the Form 4700 workpaper. Include relevant information that may have been provided on the envelope.

    Research Result Action for initial contact/30-day letter Action for certified or registered letter
    New Address Found
    1. Remail the letter to the new address.

    2. Update the suspense date to be 30 days from the date the letter is re-mailed.

    3. Update the taxpayer address on RGS and/or IDRS as applicable.

    1. Check the cycle on ENMOD in which the address change was made and match against the 90-Day (Statutory Notice of Deficiency - SNOD) letter date. If the date of the new address change is:

      1. Before the 90-Day letter was issued: re-issue the 90-Day letter to the correct address and update the taxpayer address on RGS and/or IDRS as applicable.

      2. After the 90-Day letter was issued: re-mail a copy of the current 90-Day letter to the correct address. Update the taxpayer address on RGS and/or IDRS as applicable.

    2. Associate the original letter and envelope with case file.

    3. Update status/status extension (on CEAS/RGS only) to 2499. Note: do not update if currently in 2498.

    Taxpayer deceased (not MFJ) Destroy the letter
    1. Associate the undeliverable letter/envelope with the case file.

    2. Update status/status extension (on CEAS/RGS only) to 2499. Note: do not update if currently in 2498.

    Taxpayer not deceased and no new address or active POA/fiduciary Destroy the letter
    1. Associate the undeliverable letter/envelope with the case file.

    2. Update status/status extension (on CEAS/RGS only) to 2499. Note: do not update if currently in 2498.

  8. Assign/forward any certified/registered mail that needs to be re-issued to the appropriate team.

  9. Assign/forward any other undeliverable letters requiring further technical review (e.g. validation of POA/ fiduciary) to an RGS team.

Statutory Notices

  1. Statutory Notice of Deficiencies are created through Report Generation Software (RGS). The statutory notice of deficiency (SNOD) is run through the AMSTUS/STN02 program and those accepted are printed and mailed by the Correspondence Production Services (CPS) site.

    • The two consolidated sites are CPS East in Detroit and CPS West in Ogden.

    • For cases that are accepted into the STN02 process, the SNOD and the mail out package, including the report, are systemically dated the 3rd Monday after the aging program.

    • For cases that fail the validity checks for CPS processing, print and mail the SNOD locally and date for the Friday following the aging program.

    • Those that fail the STN02 process are generated by the AMSTUS/STN01 process in Machine Services at the site level, and then shipped to Exam for association with the copy of the report and mailing. The Batch Aging copy of the report is be generated and printed within the Exam area.

    • Verify that the correct penalty code (if any) has been cited and the Form 886-A computation matches the amount of the report.

    • A copy of the SNOD will be maintained in the 90-Day files until closing/default.

    • SNODs will be kept bundled in mail out date, then SSN order.

  2. Only in very rare situations will a case reject from B1 and need a manual Form 5600, Statutory Notice Worksheet, input to IDRS. If this occurs, input the Form 5600 to IDRS and when the statutory notice arrives, check figures for accuracy and ensure the proper number of copies were printed (two SNODs for the taxpayer, one for file, and one for third party if one is listed on Centralized Authorization File (CAF) - check CFINQ). In most of the work, Batch will give you a listing of all cases going into the 90-Day process. The SNOD and the certified listing will generate in Machine Services. The report will generate in Batch. Check filing status with IDRS entity.

  3. Associate the report with the 90-Day letter and mail to the taxpayer using current procedures. Fold and put into envelopes (as appropriate) E- 44-B, E-142, E-212, or E-213 two copies of SNOD, one copy of Form 886-A, applicable letter, and any attachments.

  4. Reject Listings: The following reports are generated weekly via STN02 and should be printed and worked weekly.

    • STN FAILED TO MERGE DETAIL

    • BATCH PRINT REJECT REPORT

    • EXCEPTION LIST

    • ARP0843 - AIMS Weekly Updates (new addresses) are used for STN 01, 02 and manual cases

    • STN0147 - Manual Research Report from Control D are used for STN 01 and manual cases for a variety of reject reasons.

  5. Replies Received in Status 24 STN01, B0 Manual:

    • Pull the SNOD

    • If no CRD is on RGS/CEAS, input one.

    • If the case is assigned to a group, deliver the reply to the appropriate group. Unit clerk will update RGS/CEAS to Status 2498 and assign the case to CET.

    • Do not update the status on AIMS. Leave all 90-Day cases in status 24.

    • If the case is not assigned to a correspondence group, assign it to one based on guidelines set by the local management.

  6. STN02 and prior Status 23 or 25:

    • If there is a physical case when an STN02 Statutory Notice of Deficiency is issued by CPS, follow campus procedure for staging the status 24 case file during the aging process.

  7. Defaulting STN02 With No Replies (Blocking Series 40 X):

    • A listing (in SSN order) of the cases that have defaulted will be provided by the Batch Coordinator.

    • Form 13181, Examination Report Generation Software (RGS) Closing Information,) is generated in the Print Manager Program. Properly dispose of it.

  8. Defaulting STN02 Cases With Replies Case will consist of the following when it is forwarded to files:

    • Taxpayer correspondence,

    • Closing Information Cover Sheet (Form 13181).

  9. Defaulting Cases STN01/B0 Manual With No Reply Case will consist of the following when it is forwarded to files:

    • Closing Information Cover Sheet (Form 13181),

    • Statutory Notice of Deficiency, and

    • Any attachments or documents not saved electronically.

Mail Outs

  1. The clerical function will assemble the notice package and prepare the envelope for mail out. The package will contain the following:

    1. One (1) copy of the letter being used

    2. One (1) copy of the exam report

    3. One copy of Form 14817 (Reply Coversheet for Exam Correspondence)

    4. One (1) copy of the Form 886

    5. One (1) copy of the stuffers -- Publication 3498-A

    6. One (1) return envelope

  2. Place package in envelope E-44B.

  3. If the notice or letter package does not contain all of the above mentioned items and is no more than 5 to 8 pages you may be able to use a smaller envelope.

    Caution:

    If a smaller envelope is used you must make sure no sensitive taxpayer information is visible in the window of the envelope.

  4. Periodically, Exam mails letters abroad to foreign addresses. Detailed information on international mail is found in IRM 1.22.3.4, Addressing Standards for International Mail.

Maintaining Files

  1. You will assist local management in the preparation and review of reports.

  2. You will receive weekly listings such as status workloads, ARP340, etc.

  3. Your job is to research RGS/CEAS, AIMS, IDRS, and paper case files, to:

    • Account for the case and/or determine if the case was forwarded elsewhere.

    • Monitor dates to ensure work is moved to next status promptly.

    • Update all cases going to another unit (such as 90 day unit).

    • Update on AIMS/RGS/CEAS/IDRS. Follow procedures in the Batch Processing Guidelines to update.

  4. When updating AIMS and CEAS through RGS, clerks should include a unique identifier in the Action Text. The unique identifier can be either the clerk’s initials or RGS user number as determined by local management.

  5. The following suggested Action Text references the clerk identifier as XXX, #### indicates the EGC and NN is the RGS Group Number.

    Standard Action Text

    Text Use When
    Upmail XXX Updating mail in any unit
    Upfax XXX Updating faxes in any unit
    Und XXX Changing a status extension and/or EGC due to an undeliverable Letter 525 or Letter 3219
    3219Unc XXX Changing a status extension and/or EGC due to an unclaimed Letter 3219
    AssignXXX Moving a case from one group to another and no other action is taking place other than the assignment
    B0rej XXX Moving rejected cases to M1 for update/reassignment to a unit, for correction
    Reject XXX Rejecting manually cases from approval screens
    ####Ltr XXX Mailing of any letter to the taxpayer
    B1rej XXX Updating Batch reject cases updated and assigning FROM B1 to another unit
    Miscfix XXX Doing miscellaneous corrections to a case within the same unit
    Agreed XXX Updating Agreed mail within a unit or sending an Agreed between units
    Phone XXX Updating a case, when a phone call is made to a taxpayer in lieu of a letter taxpayer
    TP Ext XXX Extending the suspend date, per taxpayer request.
    EMPReplyXXX Updating the CRD and status on an account
    AssignNNXXX Assigning a case to a group or to an individual
     

  6. The following procedures are standard in Campus Examination Operations when utilizing the RGS/CEAS system to maintain Examination cases.

    If Then
    Case is reassigned to another unit
    1. Update AIMS, RGS, CEAS, and IDRS.

    2. Update case to the receiving EGC and RGS group number.

      Reminder:

      Cases in Batch are maintained in the Batch inventory, not in a unit inventory. The cases must be removed from B0 before updating.

    Correspondence is received
    1. Use the earliest IRS received date.

    2. Input the correspondence date within 2 business days of receipt in Exam.

    3. Follow IRM 4.19.21.2, Processing Incoming Correspondence.

      Reminder:

      The CRD date needs to be input any time correspondence is received.

    Case is updated Every time a case is updated (e.g., when case updated to status 54 or when moved from unit to unit, etc.)
    Mail Received
    1. Cases with no SNOD issued update to 54/55/57 accordingly.

    2. Cases with a SNOD issued, do not change ST 24 on AIMS and update CEAS to include the 98 extension on the status (2498).

    Suspense Date update Follow IRM 4.19.10.1.7.2, Standard Suspense Periods for Correspondence Examination, for inputting suspense dates. By double-clicking on the suspense date field in the RGS Update Screen, a calendar tool is available to assist in inputting the correct Suspense date.

    Reminder:

    In most cases, inventory is purged 45 days from the letter date sent by the examiner. There may be other time frames, if so, your manager will inform you of these time frames.

    Note:

    These procedures are not all inclusive, if a situation is not covered work per instructions from the team leader, work leader, and/or manager.

  7. Updating the RGS Case Summary Record with an additional two digits will generate the correct disposal code and technique code for the ACE Closing process. The cases will be maintained in group B0 but MUST have the proper Status code on RGS to close with the correct Blocking Series, Technique and Disposal Code information on Form 5344. The table below details that information:

    Status Disposal Code Technique Code Blocking Series
    no 3rd and 4th digits 10 6 40X
    XX90 10 6 30X
    XX91 10 6 30X
    XX93 Paper no reply 10 6 30X
    XX97 Unclaimed/refused 10 6 30X
    XX98 Response 10 2 30X
    XX99 Undeliverable 13 7 30X

Self-Assign Uses Other Than Closures

  1. The Self-Assign function in CEAS is commonly used by examiners working phone calls to reassign a case from another campus or within their campus inventory for case closures. The Self-Assign function is also used to complete the following:

    1. Processing misdirected agreed closures at the receiving site

    2. Transferring cases between groups within the site

    3. Transferring cases to consolidate multiple year cases to one examiner

    4. Assigning Virtual Service Delivery (VSD) cases

  2. Refer to IRM 4.19.19.6, Self-Assign General, and IRM 4.19.19.6.1, Self-Assign Procedures, for information on Self-Assign reject codes and other conditions when self assign is not allowed.

  3. It is the responsibility of the gaining site to close self-assigned cases within 48 hours. The losing will identify all paper files by researching the monthly self-assign reports, identity the TC 300 Document Locator Number (DLN) and send the case documents to files. See IRM 4.19.13.18, Case File Assembly, to determine the required case documents.

  4. It is the responsibility of the gaining site to contact the losing site to secure case correspondence if the self-assigned case is not closed within 48 business hours. If not contacted, the losing site can send case documents to the gaining site when they identify cases not closed in 48 hours.

Routing Closed Cases

  1. All closed cases that have a SNOD, a Reply, or Agreed Report or were closed elsewhere by Self-Assign will be forwarded to files.

    • Forward the Form 13181, Closing Information Cover Sheet, and attachments, to the Documents Retention Unit for association with Form 5147 transmittals.

    • Any attachments or miscellaneous documents that need association with a previously closed file will be forwarded using Form 9856, Attachment Alert, or an IMFOLT print high lighting the SSN, tax year, name control and document locator number (DLN) as a cover sheet.

Identifying and Re-filing Residual Paper Cases Files Closed by a Campus Using Self-Assign

  1. Headquarters Correspondence Examination System Support (CESS) provides a monthly Self-Assign report. This report should be used to identify cases in the losing campus that need to be pulled and paper documents sent to Files.

    • All “losing” WI campuses must review the report within 7 days of receipt by researching CEAS and reviewing the CEAS history to identify and resolve paper case files remaining in the losing campus.

    • No action is required for paperless cases identified on the report.

    • For paper case files, research IDRS to secure the TC 300 closing DLN and re-file the applicable correspondence and documents to Files per IRM 4.19.13.18, Case File Assembly.

      Exception:

      If an original return is in the losing campus case file for programs such as FTHBC/LTR, the original return should be re-filed behind the TC 150 DLN since the gaining campus will close the case without having the original return.

    • For Self-Assign procedures see, IRM 4.19.19.6, Self-Assign General.

Handling Paper Correspondence for Digitized (Virtualized) Cases

  1. Cases with an AIMS tracking code 6746 have been converted to electronic case files. Incoming correspondence, E-Faxes and all paper documents have been uploaded to the case in the Office Documents section on RGS. Cases that have been partially digitalized/virtualized but also contain paper correspondence will need tracking code 6697 to identify the case as a hybrid case.

  2. After being uploaded to RGS, the documents for digitized (virtualized) cases are housed in the clerical area by the IRS Correspondence Received Date (CRD) in TIN order.

  3. SB/SE and W&I RICS RCEO will retain the paper correspondence for an electronic case for 180 days from the IRS CRD. W&I will destroy the paper correspondence 180 days from the CRD following the procedures in IRM 10.5.1.6.10, Disposition and Destruction, unless there is a business need to retain it for a longer period.

  4. Even though the correspondence for an electronic case is not sent to Files, the Form 13181 must still be sent to Files. It contains the instructions for contacting the RGS Coordinator to secure copies of the case documents for an electronic case if the requestor does not have access to RGS.

Researching Accounts as Requested

  1. There are numerous command codes for case research. The Servicewide inventory Exam control system is AIMS. Prior to most case activity, research should be performed.

  2. See IRM 4.19.13.4, Researching Cases. This section contains the common command codes for research.

  3. IDRS Command Code Job Aid on SERP under IRM Supplements (see link for Command Code Job Aid). See http://serp.enterprise.irs.gov/databases/job-aids/job-aids.html.

Address Change-IDRS

  1. Address changes will be obtained from direct taxpayer contact, Form 8822 (Change of Address), undeliverable mail (only the post office yellow label), will follow guidelines in IRM 4.19.13.14, Undeliverable Mail , telephone contact forms, taxpayer replies notating a new address and from the tax examiners. Address changes can be made when:

    • There is direct contact made by the taxpayer

    • Form 8822 (Change of Address) is received

    • The yellow USPS label on undeliverable mail presents a new address

    • Taxpayer provides new address in correspondence/reply

    Caution:

    Update MF based on the yellow sticker, only after research is conducted and you are reasonably sure the address reflected is the most current. See IRM 4.19.21.2.3(5)a.

     

    Note:

    IDTVA will make necessary changes to the name and/or the address on Masterfile, See IRM 4.19.13.26.4, Masterfile shows a SC Address as the Taxpayer’s Address, for additional information. DO NOT update the address if there is an Identify Theft indicator present on ENMOD/IMFOLE. An IDT indicator is a TC 971 with an action code (AC) 501, 504, 505, 506, or 522, 524. Additional research must be performed to ensure that the addressee is the intended taxpayer; the update to the entity information will be completed by IDTVA in Accounts Management when the account is corrected to make the taxpayer whole. Contact your Identity Theft Liaison for additional information.





    .

  2. ENREQ is the CC for initiating an address change.

  3. IDRS Command Code Job Aid on SERP under IRM Supplements (see link for Command Code Job Aid). See http://serp.enterprise.irs.gov/ database/irmsup.dr/job_aid.dr/command-code.dr/idrs command_codes_jobaid.htm .

Statute Awareness

  1. To readily identify Statute imminent paper cases, maintain in a red folder. To identify digital/virtual Statute imminent cases, close monitoring should be conducted in RGS and through AIMS generated reports (Table 4.0).