4.19.22 CAWR Control

Manual Transmittal

March 25, 2019

Purpose

(1) This transmits revised IRM 4.19.22, Liability Determination, CAWR Control.

Material Changes

(1) IRM 4.19.22.2.1.2 Prior Year 99C and Other Miscellaneous Correspondence Controlling Procedures: Deleted outdated section.

(2) IRM 4.19.22.2.2 Researching on IDRS: Reformatted table.

(3) IRM 4.19.22.2.3.1 Batching and Controlling Replies: Updated the year in the examples.

(4) 4.19.22.2.3.2 Batching and Controlling Late Replies: Updated the year in the examples.

(5) IRM 4.19.22.2.3.2.2 Batching and Controlling Form 3870 Late Reply: Incorporated bullet list in (4) into the table.

(6) IRM 4.19.22.2.3.4 Batching and controlling Letter 854C Replies: Added new section.

(7) IRM 4.19.22.5 Routing Documents: Moved SSA addresses to a new table.

(8) Exhibit 4.19.22-1 Batch Control Sheet: Updated title the exhibit.

Effect on Other Documents

This material supersedes IRM 4.19.22, dated 03-23-2018.

Audience

Small Business-Self Employed

Effective Date

(04-01-2019)

Daniel R. Lauer
Director, Exam Field and Campus Policy
SE:S:E:HQ:EFCP
Small Business/Self-Employed

Program Scope and Objectives

  1. This section is designed to assist the clerical employees in the Small Business/Self-Employed (SB/SE) Document Matching Combined Annual Wage Reporting (CAWR) operations with their responsibilities.

  2. Purpose: To provide procedures for the clerical staff in the CAWR Operation.

  3. Audience: The primary users of this IRM are SB/SE clerical employees in the CAWR operation.

  4. Policy Owner: Director, Exam Field and Campus Policy.

  5. Program Owner: SB/SE BMF Document Matching.

  6. Primary Stakeholder: SB/SE

  7. Program Goals: Program goals for this type of work can be found in IRM 1.4.22, CAWR Manager and Coordinator.

Background

  1. The Combined Annual Wage Reporting (CAWR) is a document matching program that compares the Federal Income Tax (FIT) withheld, Medicare wages, Social Security wages, and Social Security tips reported to the IRS on the Forms 94X and Form 1040 Schedule H against the amounts reported to SSA via the processed totals of the Forms W-2, Wage and Tax Statement, and the amounts reported to IRS on Forms 1099R, Distributions from Pension, Annuities, Retirement or Profit Sharing Plans, and W-2G, Certain Gambling Winnings. When referring to all Form 941, Form 943, Form 944, Form 945, this IRM will read 94X.

  2. The CAWR program has two basic components. The two components are the Internal Revenue Service -CAWR (IRS-CAWR) program and the Civil Penalty Program-CAWR (SSA-CAWR).

    Note:

    When referring to IRS-CAWR cases, the reference will be IRS-CAWR. When referring to SSA-CAWR cases, the reference will be SSA-CAWR. When an instruction indicates CAWR, it is referring to all case types.

  3. The success of the CAWR Operation and achieving service wide program goals depends directly on the work performed by the clerical staff.

  4. CAWR clerks are called upon to multi-task in order for the CAWR units to function. Each clerk performs assigned tasks and on occasion will be directed to other phases of similar but not familiar activities. For that reason, cross training is essential.

    Note:

    CAWR units may not be identical, but the clerical support activity is uniform in nature.

  5. The Combined Annual Tax Reporting System (CATRS) is a computer platform that houses the CAWR Automated Program (CAP). CAP is a computer application that houses the CAWR programs (inventory, correspondence, reporting, document preparation, and updated to Master File). CAWR clerks will update CAP during the CAWR process.

  6. This clerical section has been written as a guide regarding most of the common duties and assignments of a clerk. It is not all-inclusive. The following subsections outline specific tasks to be performed by the clerical staff.

Authority

  1. The authority is covered under Pub. L. No. 94-202, sec. 232, 89 Stat. 1135 (1976) (codified at 42 U.S.C. Sec. 432).

Roles and Responsibilities

  1. The Director, SB/SE, Exam Field and Campus Policy is responsible for the CAWR program.

  2. Management officials are responsible for:

    • Providing internal controls relating to the program, process and activity.

    • Ensuring the instructions are communicated to and carried out by the proper officers and employees.

Program Controls

  1. This program is monitored through the CAWR Automated Program.

Acronyms

  1. The following is a listing of descriptions for acronyms used in this IRM:

    • ASED - Assessment Statute Expiration Date

    • BMF - Business Master File

    • BMFOL - Business Master File On-Line

    • CAWR - Combined Annual Wage Reporting

    • CAP - CAWR Automated Program

    • CC - Closing Code or Command Code

    • EIN - Employer Identification Number

    • IAT- Integrated Automation Technologies

    • IDRS - Integrated Data Retrieval System

    • IMF - Individual Master File

    • IMFOL - Individual Master File On-Line

    • IRC - Internal Revenue Code

    • IRM - Internal Revenue Manual

    • MFT - Master File Tax

    • SSA - Social Security Administration

    • SSN - Social Security Number

    • TAS - Taxpayer Advocate Service

    • TC - Transaction Code

    • TIN - Taxpayer Identification Number

Related Resources

  1. IRM 4.19.4, CAWR Reconciliation Balancing.

  2. IRM 1.4.22, CAWR Manager Coordinator Guide.

CAWR Correspondence

  1. IRS-CAWR issues the Letter 99C and SSA-CAWR issues the Letter 98C.

  2. The bulk of CAWR receipts will be responses:

    1. Letter 98C - Separate and control as an SSA-CAWR case. The current year for SSA-CAWR is the statute year.

    2. Letter 99C - The current year for IRS-CAWR is statute year plus one year and should be controlled as a current reply.

  3. In addition, taxpayers may also respond to Letter 2057C closing letters, adjustment notices, notices of intent to levy, or balance due notices. Further research may be needed to identify and process these cases IRM 4.19.22.2.2, Researching on IDRS.

  4. Correspondence may be received by mail, fax and/or referrals.

  5. CAWR cases can be defined as Reply, Late Reply, or Prior Late Reply.

    1. A Reply is any case with a current notice as listed above. This case will not be accompanied by any other notices and will not have an assessment or penalty applied. The cases are typically in "M" status in IDRS and do not have a closing date on CAP if applicable.

    2. A Late Reply: May have a current notice but it will be accompanied by another notice. It will have tax and/or penalty assessment. The status in IDRS is most likely closed or in suspense and if applicable it will have a closing date on CAP.

    3. A Prior Late Reply is any case no longer on CAP. It will have the same characteristics as a Late Reply. It will have tax or a penalty assessment and the correspondence may include a bill. You may have to do extensive research for this case type in IDRS utilizing command codes such as BMFOLI, BMFOLU, BMFOLT, etc.

Processing Incoming Receipts

  1. Upon receipt of all correspondence:

    1. Stamp correspondence with the date received in the CAWR area.

    2. Determine if the correspondence is in response to a CAWR discrepancy case.

      Example:

      Letter 99C or Letter 98C.

    3. Sort correspondence by IRS-CAWR or SSA-CAWR case type.

98C/99C Letter Reply Controlling Procedures
  1. When batching and controlling work, look at the date the letter was issued. If this date is close to 81 days prior to the current date, this notice can go into "No Reply" status soon. These cases need to be put on the CAP system immediately to avoid the case being assessed prior to the STAUP being input. All receipts must be controlled by the later of 14 calendar days from the earliest IRS received date or 3 business days from receipt into the department.

  2. The IRS received date is determined by following the priority criteria listed below:

    1. Oldest received date stamped on correspondence. If there isn't a received date (other than the CAWR stamped date) then use,

    2. Envelope postmark date.

    3. Signature date.

    4. Current date.

  3. To Control the Receipts:

    1. On CAP, click on "EDIT"

    2. Choose "Reply/Undeliverable Rcvd"

    3. Click "Reply"

    4. Enter earliest IRS received date

    5. Enter EIN and Tax Period

    6. Click "QUERY"

      When you are prompted ... And... Then ...
      "Update the reply date on this 98C/99C issued" Click OK to update the reply date. You are prompted to add the case to a batch
      1. Choose No, when prompted to add a case to a batch.

      2. Keep cases sorted by program and received date in groups of no more than 30.

      3. IRM 4.19.22.2.3.1, Batching and Controlling Replies.

        Note:

        Small volumes of work may be batched together into one batch, but the received dates must be within seven calendar days of the earliest IRS received date.

      Update the reply date on this 98C/99C issued Click OK to update the reply date. This case belongs to another site.
      1. After inputting an ACTON history item notating the site

        Example:

        (MSC to PSC) you are forwarding to

      2. Route the case to the appropriate site on Form 3210 Document Transmittal.

      This is a Late Reply case and already closed in CAP, If you continue, this Late Reply will be re-opened to status 47. Click OK to update the reply date. You are prompted to add the case to a batch
      1. Choose No, when prompted to add a case to a batch.

      2. Keep cases sorted by program and received date in groups of no more than 30.

      3. IRM 4.19.22.2.3.2, Batching and Controlling Late Replies.

        Note:

        Small volumes of work may be batched together into one batch, but the received dates must be within seven calendar days of the earliest IRS received date.

      This is a Late Reply case and already closed in CAP, If you continue, this Late Reply will be re-opened to status 47. Click OK to update the reply date. This case belongs to another site.
      1. After inputting an ACTON history item notating the site

        Example:

        (MSC to PSC) you are forwarding to

      2. Route the case to the appropriate site on Form 3210.

      No record found matching that criteria you have double checked the EIN and the tax period for accuracy and it is correct
      1. additional IDRS research

        • is required to determine if this

        • is a Prior Late Reply case

        • belonging to your site, if not, forward to the appropriate site.

      2. When it is determined it

        • belongs to your site, add to

        • the Prior Late Reply Table.

      3. Keep cases sorted by

        • program and received date

        • in groups of no more than 30.

      4. and it is determined the

        • case does not belong to your

        • site, rout the case to the

        • appropriate site.

        Note:

        Small volumes of work may be batched together into one batch, but the received dates must be within seven calendar days of the earliest IRS received date.

Researching on IDRS

  1. Research to determine whether the correspondence is an IRS-CAWR or SSA-CAWR case by following the steps below.

    1. IRS-CAWR: research Command Code (CC) TXMOD on MFT 01, 05, 11, 14, and 16 for a Transaction Code (TC) 290 adjustment with blocking series 55 on the Form 94X.

    2. SSA-CAWR: research CC TXMOD on MFT 13 for a TC 240 adjustment with a Penalty Reference Number (PRN) 549 or (PRN) 550. If no penalty is applied on MFT 13, research MFT 01.

    3. When the taxpayer responds with the SSN used for their Schedule H, research the second page of CC IMFOLR to obtain the X-REF Taxpayer Identification Number (TIN)/EIN:

      If ... Then ...
      there is a TC 290 on MFT 30 with blocking series 05 or 07 this is identified as a IRS-CAWR case.
      there is no adjustment on the SSN research the EIN for TC 240 adjustment with a PRN 549 or PRN 550 this is identified as an SSA-CAWR case.
  2. When it is determined the case is a CAWR case research http://serp.enterprise.irs.gov/databases/who-where.dr/transshipment.dr/campus_locator_guide/01_cplg_toc.htm to route to the appropriate campus. When the case belongs to your campus, see IRM 4.19.22.2.3 Controlling on IDRS.

Controlling on IDRS

  1. All replies, late replies and prior late replies must be controlled accurately and timely. Efficient inventory management is essential to meeting your program objectives.

  2. Clerical management must set up and maintain an Inventory Management process to ensure:

    1. A batch consists of no more than 30 cases of the same program and received date.

      Note:

      Small volumes of work may be batched together into one batch, but the received dates must be within seven calendar days of the earliest IRS received date.

    2. Each batch will be recorded and tracked utilizing a separate log for each program.

    3. Each batch must be assigned in received date order.

    4. Each batch number is built according to the program type as outlined in IRM 4.19.22.2.3.1, Batching and Controlling Replies, IRM 4.19.22.2.3.2, Batching and Controlling Late Replies and IRM 4.19.22.2.3.3, Batching and Controlling Prior Late Replies.

    5. Designate specific IDRS numbers to maintain your reply, late reply and prior late reply inventory.

      Reminder:

      The CAWR/FUTA Integrated Automation Technology (IAT) Batcher Tool must be used for this process. The tool streamlines the clerical process in batching and controlling cases directly to IDRS. It allows the user the option to send interim Letter 5825C on prior year cases, automatically input the applicable STAUP or TC 470/90 on all cases, and alerts the clerical staff of a case when it has an ASED expiring within 90 days. Use of this tool is mandatory.

Batching and Controlling Replies
  1. Once cases are controlled on CAP, you can continue to the batching stage.

  2. A Letter 5825C"Interim Letter" will be issued automatically by CAP when the case is open and aged to 25 days and a follow up Letter 5825C will be issued by CAP on all cases still open when the initial Letter 5825C ages to 55 days old. Subsequent Letter 5825Cs will be issued automatically every 55 days until the case is closed.

  3. CAWR batches will be numbered as follows:

    Tax year Program Sequence Number
    AA BBB CCCCC
    • AA= the last two digits of the tax year of the cases

    • BBB= Program type. IRS-CAWR Replies will be notated as IRS. SSA-CAWR Replies will be notated as SSA.

    • CCCCC= Next Sequential Number available in log.

      Example:

      17IRS00001= first batch created for IRS-CAWR Replies for 2017 cases.

      Example:

      16SSA00001= first batch created for SSA-CAWR Replies for 2016 cases.

  4. Retrieve cases already previously sorted (no more than 30 cases), of the same program and IRS received date, and assign the next available batch number from the appropriate log book.

    Note:

    Small volumes of work may be batched together into one batch, but the received dates must be within seven calendar days of the earliest IRS received date.

  5. When updating IDRS controls manually, follow procedures below to update IDRS control:

    1. Access TXMOD

    2. Find C# control

    3. Access CC ACTON

    4. Close "M" status control

    5. Assign the batch to the appropriate Status "A" control labeled TPRR and reassign it to the number designated for the program you are working.

    Example:

    C#,17IRS00001. 10 digit IDRS TE#, IRS Rec'd date.

    Reminder:

    The CAWR/FUTA IAT Batcher Tool must be used for this process. The tool streamlines the clerical process in batching and controlling cases directly to IDRS. It allows the user the option to send interim Letter 5825C on prior year cases, automatically input the applicable STAUP or TC 470/90 on all cases, and alerts the clerical staff of a case when it has an ASED expiring within 90 days. Use of this tool is mandatory.

  6. Create a cover sheet listing each EIN/TIN of the batch, IRS Received Date, and Batch Number. See Exhibit 4.19.22-1, Batch Control Sheet or a sample cover sheet. Place cover sheet on top of the batch.

  7. File completed batch in inventory staging area separated by program in batch number order.

Batching and Controlling Late Replies
  1. When the late replies are sorted, you can proceed to the batching stage.

  2. Suppress all balance due notices by inputting STAUPS or inputting TC 470 with CC 90 by ensuring the check box is checked on the IAT tool.

  3. CAP will automatically issue a Letter 5825C interim letter using paragraphs A, B, G, and S for SSA-CAWR and A, B, G, M and S for IRS-CAWR on any case 25 days or older. Interim letters must be issued within 30 days of the IRS Received date to adhere to Policy Statement P-21-3. A follow up Letter 5825C will be issued by CAP on all cases still open when the initial Letter 5825C ages to 55 days old. Subsequent Letter 5825Cs will be issued every 55 days until the case is closed.

  4. CAWR Late Reply batches will be numbered as follows:

    Tax Year Program/Late Reply Sequence Number
    AA BBB CCCCC
    • AA= the last two digits of the tax year of the cases

    • BBB= Program type. IRS-CAWR Late Replies will be notated as ILR. SSA-CAWR Late Replies will be notated as SLR.

    • CCCCC= Next Sequential Number available in log.

      Example:

      17ILR00001= first batch created for IRS-CAWR Late Replies for 2017 cases.

      Example:

      16SLR00001= first batch created for SSA-CAWR Late Replies for 2016 cases.

  5. Retrieve cases previously sorted (no more than 30 cases), of the same program and IRS received date, and assign the next available batch number from the appropriate log book.

    Note:

    Small volumes of work may be batched together into one batch, but the received dates must be within seven calendar days of the earliest IRS received date.

  6. When updating IDRS controls manually, follow procedures below to create IDRS control.

    1. Access CC TXMOD

    2. Access CC ACTON

    3. Create a new "A" Status control labeled TPLR and reassign it to the number designated for the program you are working

    Example:

    C#,15IRS00001,A,TPLR
    10 digit IDRS TE#, IRS Rec'd date.

    Reminder:

    The CAWR/FUTA IAT Batcher Tool must be used for this process. The tool streamlines the clerical process in batching and controlling cases directly to IDRS. It allows the user the option to send interim Letter 5825C on prior year cases, automatically input the applicable STAUP or TC 470/90 on all cases, and alerts the clerical staff of a case when it has an ASED expiring within 90 days. Use of this tool is mandatory.

  7. Create a cover sheet listing each EIN/TIN of the batch, IRS Received Date and the Batch Number. Place the cover sheet on top of the batch. See Exhibit 4.19.22-1, Batch Control Sheet for a sample cover sheet.

  8. File the batches in earliest IRS received date order with the batch numbers in order.

Retrieving and Processing Form 3870
  1. When a case is worked by the field, the Revenue Officer (RO) will send a Form 3870 Request for Adjustment, to request an abatement of the CAWR tax assessment and/or civil penalty. These requests will either be paper, fax, or to a secure E-mail mailbox. The RO will put the taxpayer’s Name Control, MFT, and the last four digits of the TIN in the subject line of the E-mail to the specific Form 3870.

  2. The clerk or designated official will retrieve the new electronic Form 3870 once per day.

  3. Print the attachments.

  4. Check IDRS to see if cases are already in our inventory. If we have open cases in our inventory, the Form 3870 will be associated with the case and worked.

  5. If the cases are in our inventory, and are closed, batch them as category 3870 and record the receipts into inventory. Use the 3870 button on CAP to control the case as a 3870. This will ensure the case is recorded properly and will restrict interim letters from being issued. Do not mix CAWR or SSA Late Replies with the Form 3870 Late Replies. Forms 3870 must be batched separately.

  6. If an electronic Form 3870 was misrouted, forward the E-mail to the correct campus and cc the RO. If the mis-route is paper, forward to the correct campus and alert the RO by E-mail

Batching and Controlling Form 3870 Late Reply
  1. Forms 3870 will be batched and controlled as Late Replies. Sort the Forms 3870 by received date (E-mail date will be the received date) and tax year. (No more than 30 cases to a batch).

    Note:

    Small volumes of work may be batched together into one batch, but the received dates must be within seven calendar days of the earliest IRS received date.

  2. Use the 3870 button on CAP to control the case as a 3870. This will ensure the case is recorded properly and will restrict interim letters from being issued. Do not issue an interim letter on these cases as the RO has already had contact with the taxpayer. Be sure to unmark the box for the Interim Letter on the IAT Batcher Tool.

  3. Suppress all balance due notices by inputting STAUPS or TC 470/90.

  4. CAWR Form 3870 batches will be numbered as follows:

    Program Type Category Sequence Number
    I (IRS-CAWR Late Replies)
    or
    S (SSA-CAWR late Replies)
    3870 XXXXX Next sequential Number available in log.

    Example:

    I3870 00001 = first batch created for IRS-3870 Late Reply.
    S3870 00001 = first batch created for SSA-3870 Late Reply.

  5. See IRM 4.19.22.2.3,, Controlling on IDRS.

  6. Retrieve cases already sorted of the same program (Form 3870), received date and assign the next available batch number from the appropriate logbook.

  7. When updating IDRS controls manually, follow procedures below to create the IDRS Control:

    1. Access CC TXMOD

    2. Access CC ACTON

    3. Create a new "A" Status Control. Use Category code 3870.

    Example:

    C#,I3870 00001,A,3870
    IDRS Unit #, TE#, Received Date


    C#,S387000001,A,3870
    10 digit IDRS TE#, IRS Rec'd date

  8. File completed Batch in staging area separated by program in batch number order.

Batching and Controlling Prior Late Replies
  1. When prior late replies are sorted, you can proceed to the batching stage.

  2. Suppress all balance due notices by inputting STAUPS or inputting TC 470 with CC 90.

  3. Issue a Letter 5825C using paragraphs A,B,G, and S for SSA-CAWR and A, B, G, M, and S for IRS-CAWR with a time frame of 60 days. Interim letters must be issued within 30 days of the IRS Received date to adhere to Policy Statement P-21-3 guidelines.

    Note:

    Management will monitor the CCA 4243 listing for any cases assigned to the staging area that are not closed within 60 days and request that a Letter 5825C be issued.

  4. CAWR prior year batches will be numbered as follows:

    Program/Prior Late Reply Sequence Number
    BBB CCCCC
    • AA = is not applicable due to multiple tax years being combined in one batch

    • BBB = Program type. IRS-CAWR Prior Late Replies will be notated as PRI. SSA-CAWR Prior Late Replies will be notated as PRS.

    • CCCCC = Next Sequential Number available in log.

      Example:

      PRI00001 = first batch created for IRS-CAWR Prior Late Replies.

      Example:

      PRS00001 = first batch created for SSA-CAWR Prior Late Replies.

  5. Retrieve cases previously sorted (no more than 30 cases), of the same program and IRS received date, and assign the next available batch number from the appropriate log book.

    Note:

    Small volumes of work may be batched together into one batch, but the received dates must be within seven calendar days of the earliest IRS received date.

  6. When updating IDRS controls manually, follow procedures below to update IDRS control:

    1. Access CC TXMOD

    2. Access CC ACTON

    3. Create a new "A" Status control labeled TPLR and reassign it to the number designated for the program you are working

    Example:

    C#,PRS00001,A,TPLR
    10 digit IDRS TE#,Rec'd Date

    Reminder:

    A CAWR/FUTA IAT Batcher Tool must be used for this process. The tool streamlines the clerical process in batching and controlling cases directly to IDRS. It allows the user the option to send interim Letter 5825C, automatically input the applicable STAUP or TC 470/90 on all cases, and alerts the clerical staff of a case when it has an ASED expiring within 90 days. Use of this tool is mandatory.

  7. Create a cover sheet listing each EIN/TIN of the batch, IRS Received Date, and the Batch Number. Place the cover sheet on top of the batch. See Exhibit 4.19.22-1 for a sample cover sheet.

  8. File completed batch in inventory staging area separated by program in batch number order.

Batching and controlling Letter 854C Replies
  1. Retrieve cases already sorted (no more than 30 cases) as Letter 854C Replies.

  2. Letter 854C Replies will be batched using the IAT Batcher Tool as follows:

    1. The Control Status Code will be "A" .

    2. The Control Category Code will be "854C" .

    3. The Activity Code will be "854C" .

    4. Input the appropriate Assignee Employee Number.

    5. Input the appropriate IRS received date.

    6. The Batcher Tool will: send interim Letter 5825C, input IDRS CC STAUP or TC 470/90 as appropriate, and alert the clerical staff when a case has an ASED expiring within 90 days.

    7. A cover sheet listing each TIN in the batch, the IRS received date, and batch number will be generated. Place the cover sheet on top of the batch.

    Reminder:

    use of the IAT batcher is mandatory for this process.

  3. When establishing IDRS controls manually (for example: the Batcher Tool is unavailable), follow the procedures below to establish the IDRS control:

    1. Access IDRS CC TXMOD for the applicable TIN, MFT, and tax year.

    2. Access IDRS CC ACTON.

    3. Create a status Code to “A”, control with the Activity Code to “854C”, and input the appropriate Assignee Employee Number and IRS received date for the case.

      Example:

      C#,854C,A,854C, 05XXXXXXXX, 05292019.

  4. Suppress all balance due notices by using IDRS CC STAUP with definer “S” or by inputting TC 470 with CC 90, as appropriate.

  5. Input interim Letter 854C.

  6. Create a cover sheet listing each TIN in the batch, the IRS received date, and batch number and attach to the batch.

Assigning Work to TEs
  1. The procedures below must be followed when assigning work to a TE:

    1. Pull the batch with the earliest received date from the staging area.

    2. Access CC TXMOD on IDRS and using CC ACTON, reassign the cases in the batch to the TE's IDRS number. Whenever assigning a case directly to a TE after the sorting phase assign the case on IDRS directly to the specific TE number.

      Example:

      Batch 15IRS00001 is assigned to 0123412345. To reassign the cases to 0123455555 enter:
      CXX
      0123455555

      The "XX" represents the appropriate Control number on IDRS to be reassigned.

Undeliverables

  1. This section is to be used for all Letter 98C and Letter 99C that are returned undeliverable. Undeliverable mail received from the mail room can be identified one of two ways:

    1. Unopened original CAWR correspondence.

    2. An opened original CAWR correspondence with the envelope affixed to the back.

  2. All letters 98C or 99C undeliverable mail is to be researched for a better address within 14 calender days of receipt. If a better address isn't found the case must be controlled within those same 14 days to stop the suspense time frame from expiring.

  3. Check the envelope for a yellow Post Office (P.O.) forwarding sticker. If a yellow sticker is present, compare the entity on the yellow sticker to the name and address using CC ENMOD to verify it is the same taxpayer. If so, then determine if the address on the USPS yellow sticker is more current than the address on ENMOD. If the USPS sticker is more current use the address to reissue the letter.

  4. When there is not a PO forwarding sticker present, research IDRS for a new/better address. A new/better address may be found using Command Codes ENMOD, INOLES, NAMEE, and BRTVUE.

    Reminder:

    Use of the Research Address IAT tool is mandatory for new address research.

  5. If CC ENMOD shows an SSN that is responsible for the entity, use CC INOLE definer "S" for the SSN to research for a new/better address. If CC ENMOD shows a Mr. and Mrs. listed, address the notice to only the taxpayer that owns the SSN found on ENMOD for disclosure purposes.

    If ... AND Then ...
    A new address is found it is within 30 days of the mail out date re-mail all information, including the original envelope, to the new/better address.
    A new address is found it is after 30 days of the mail out date
    1. print the IDRS CC screen containing the new/better address.

    2. attach the print to the Undeliverable mail.

    3. input Undeliverable date onto CAP.

    4. Batch the Undeliverable to a TE.

    A new address is NOT found N/A input Undeliverable date and batch for a TE to work.

    Note:

    If the received date is after cycle 33 do not research for a new address. Control the case on CAP and IDRS.

  6. Undeliverable batches will be numbered as follows:

    Tax Year Program/Undel Sequence Number
    AA BBB CCCCC
    • AA = the last two digits of the tax year of the cases.

    • BBB = Program Type. IRS-CAWR-Undeliverable will be notated as UNI or UNS

    • CCCCC = Next Sequential Number available in log.

      Example:

      16UNI00001=first batch created for
      IRS-CAWR Undeliverables
      for 2016 cases.

      Example:

      15UNS00001=first batch created for
      SSA-CAWR Undeliverables
      for 2015 cases.

  7. Retrieve cases previously sorted (no more than 30 cases) of the same program and IRS received date, and assign the next available batch number from the appropriate log book.

    Note:

    Small volumes of work may be batched together into one batch, but the received dates must be within seven calendar days of the earliest IRS received date.

  8. When updating IDRS controls manually, follow procedures below to update IDRS control:

    1. Access CC TXMOD.

    2. Access CC ACTON.

    3. Create a new "A" Status control labeled UNDL and reassign it to the number designated for the program you are working.

      Example:

      C#,16UNI00001,A,UNDL
      10 digit IDRS TE#, IRS Rec'd date

  9. Create a cover sheet listing each EIN/TIN of the batch, IRS Received Date, and Batch Number. See Exhibit 4.19.22-1 for a sample cover sheet. Place cover sheet on top of the batch.

  10. File completed batch in inventory staging area separated by program in batch number order.

Undeliverable Mail for Returned SSA (CP 215 PRN 549 or PRN 550)

  1. Research undeliverable correspondence with operational errors, incomplete or incorrect name and erroneous or extraneous data. Make corrections and re-mail all information, including the original envelope to the new/better address.

  2. Research the undeliverable and IDRS for a better address. See IRM 4.19.22.3,Undeliverables. If a better address is found, re-mail all information, including the original envelope to this (new/better) address. Do not update CAP.

  3. When a new/better address is not found, give to a TE to file the correspondence.

Statute Awareness

  1. A statute of limitation is a time period established by law to review, analyze and resolve taxpayer and/or IRS related issues. The Internal Revenue Code (IRC) requires that the Internal Revenue Service (IRS) will assess, refund, credit, and collect taxes within specific time limits. These limits are known as the Statutes of Limitations. When they expire, the IRS can no longer assess additional tax, allow a claim for refund or credit by the taxpayer, or take collection action. The determination of Statute expiration differs for Assessment, Refund, and Collection.

  2. Failure to protect an assessment statute can result in disciplinary action against the responsible employee. The responsible area/employee is identified as the area/employee that had the case, when the case was within 90 days of the ASED and either took no action to protect the statute or allowed the statute to expire (barred statute).

  3. For CAWR clerical a Statute imminent case is identified by the Assessment Statute Expiration Date (ASED) which is 3 years from the due date of the return. (Example 201312 tax year returns were due by 04/15/2014; therefore the ASED for 201312 cases will be 04/15/2017). The ASED can be found on IDRS command code TXMOD or command code BMFOLT.

  4. The CAWR Batcher Tool will assist you in identifying a statute tax year case. The tool will not batch the case and it will print it out on the error listing with ASED in the remarks section. These cases will be manually batched and controlled on IDRS to a designated management official who will be responsible for making sure the case is reviewed and/or worked immediately to protect the statute.

  5. To manually batch these cases use the following procedures:

    For... Input Command Code Acton Then ...
    IRS-CAWR cases
    1. Input C#,TYIRSXXXXXX,A,TPLR.

    2. Control the case to the 10 digit IDRS number of the designated management official with the correct IRS received date.

    For SSA-CAWR cases
    1. Input C#TYSSAXXXXX,A,TPLR.

    2. Control the case to the 10 digit IDRS number of the designated management official with the correct IRS received date.

Routing Documents

  1. Clerical function is responsible for all outgoing mail. This mail may consist of internal mail, misdirected mail, or external mail.

  2. Internal mail is routed to other areas using a Form 3210 Document Transmittal. The receiving area will acknowledge the receipt of the cases by sending a signed copy of the Form 3210 back to the originating area. These forms must be maintained in a log in the CAWR unit.

  3. At times misdirected mail may be received. Mail not related to the CAWR program will be routed back to the mail room for proper routing if the mail room was in error routing it to you. If the letter was addressed to CAWR and did not fit CAWR criteria, forward to the proper area and issue an Letter 86C to the taxpayer. For additional information on issuing 86C letters see IRM 21.3.3.4.2.1 Referring Taxpayer Inquiries/Forms to Another Office. Also see http://serp.enterprise.irs.gov/serphome/who.html for instructions in routing misrouted Letter 4442.

  4. When the TEs complete their daily work it is filed in brown folders. Follow local procedures for routing these folders to the Files Function.

  5. Form 9338 Closed Case Result Sheet for Returned SSA Cases and Form 6494 Correction of W-3 Transmittals are filled out by the TEs and sent to SSA at least monthly. Send each tax year to SSA with a separate Form 3210 as a batch cover. All Forms 3210 and Forms 9338, (with attached paper Forms W-3/W-2) should be sent to the following address:

    Social Security Administration Division of Business Services 2-B-02 NT Wabash Building 6100 Wabash Avenue Baltimore, MD 21215

  6. At times Forms W-2/W-3 or Forms W-2C/W-3C are received prior to SSA Processing: These Forms will be notated with "URI" across the top.

    If then use the following address:
    Form W-2/W-3 are sent via United States Postal Service (USPS)
    Social Security Administration
    Data Operations Center
    Wilkes-Barre, PA 18769–0001
    Forms are mailed by other postal service, for example, United Parcel Service (UPS) or Federal Express
    Social Security Administration
    Data Operation Center
    ATTN: W-2 Process
    1150 E. Mountain Drive
    Wilkes-Barre, PA 18702–7997
    Forms W-2C/W-3C are sent via USPS
    Social Security Administration
    Data Operations Center
    P.O. Box 3333
    Wilkes-Barre, PA 18767–3333
    Forms W-2C/W-3C are mailed by other postal service, for example, UPS or Federal Express
    Social Security Administration
    Data Operation Center
    ATTN: W-2c Process
    1150 E. Mountain Drive
    Wilkes-Barre, PA 18702–7997
  7. Taxpayers may request assistance from the Taxpayer Advocate Service (TAS). TAS is an independent organization within the IRS created by Congress to help taxpayers resolve problems with the IRS and recommend changes to prevent the problems. Form 12412, Operations Assistance Requests (OARs), are received from TAS in the Clerical Function by both mail and fax. When a Form 12412 is received in CAWR, it must be treated in an expeditious manner. Clerical should take the following actions for all OARs received:

    1. Date Stamp each Form 12412.

    2. Hand carry these cases to the TAS Liaison in your Unit or Functional Area.

Discovered Remittance

  1. Cash and non-cash remittances found outside of the Receipt and Control secured/restricted area are "discovered remittances."

  2. When a Remittance is discovered you must:

    1. Immediately notify your manager/lead.

    2. Access CC INOLES to verify the name.

    3. At the bottom of the CC INOLES screen type the MFT, YEAR/Quarter, 670/570, Rec'd date, and money amount.

    4. Print three copies of the CC INOLES screen. One attached to the case and two attached to the Remittance.

    5. Complete a Form 4287"Payment Posting Voucher."

    6. Hand carry both the remittance, Form 4287 and INOLES prints to your Manager.

Loose Forms W-2 and Form 8922 Third Party Sick Pay Recaps

  1. Any loose Forms W-2 or Form 8922 received into the department need to be researched on CAP:

    If ... And.. Then ...
    There is a case on CAP it is assigned to a TE give the Forms W-2 or Form 8922 to the TE assigned to the case.
    There is a case on CAP it is not assigned to TE give the Forms W-2 or Form 8922 to your lead for further research.
    If there is not a case on CAP N/A give the Forms W-2 or Form 8922 to your lead for further research.

Loose Schedule D

  1. Schedule D "Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations" information is now stored in the CAP system for all tax years. Loose paper Forms 941 Schedule D are routed to Philadelphia Service Center (PSC) CAWR. These Forms will be entered into the CAP system by a designated employee by following these procedures:

    1. Click "edit" . Select TE Miscellaneous and then "CAWR SCHD"

    2. Click on "Plus Sign" .

    3. Enter the EIN.

    4. Enter the tax period.

    5. Enter the other party EIN.

    6. Enter the transaction date.

    7. Click "YES" when prompted to apply the record.

    8. Destroy the paper Schedule D.

    Note:

    If the Schedule D contains missing information that makes it impossible to input they can be placed in classified waste.

Retrieving Phone Messages

  1. At times taxpayers or internal IRS areas may call to inquire about a CAWR issue. The clerical team will be responsible for retrieving and recording the information left on voice mail.

  2. On a telephone message slip record the following information:

    1. Date and time of call

    2. Name of individual calling and company name

    3. Phone number and extension

    4. Best time to reach caller

    5. EIN and tax period

    6. A brief explanation of issue

    7. The name of the clerk retrieving the message

  3. When the case has an open "A" control on IDRS place the message slip in the TE’s designated mail box.

  4. When the case is not controlled give the message slip to your lead for further research.

Batch Cover Sheet

Below is an example of the Batch Cover Sheet used by the IAT Document Batcher tool. The header will show the IRS Received Date, Batch #, and Case Type.

TIN MFT Tax Period Program Control STAUPS Interim Letter Issued Additional Issues Fed Contractor Ind
EIN#                
EIN#                
EIN#                
EIN#                
EIN#                
EIN#                
EIN#                
EIN#                
EIN#                
EIN#                
EIN#                
EIN#                
EIN#                
EIN#                
EIN#                
EIN#                
EIN#                
EIN#                
EIN#                
EIN#