4.19.23 FUTA Control

Manual Transmittal

August 17, 2020

Purpose

(1) This transmits revised IRM 4.19.23, Liability Determination, FUTA Control.

Material Changes

(1) IRM 4.19.23.2, Statute Awareness, updated Statutes dates and IAT SBSE DM Batcher Tool Information.

(2) IRM 4.19.23.3.1.1 ,Researching New Receipts, added Schedule H Instruction to the note for incoming receipts for replies and late under the SSN.

(3) IRM 4.19.23.3.2, Controlling on IDRS, updated the IAT SBSE DM Batcher Tool information.

(4) IRM 4.19.23.3.2.1 ,Batching and Controlling Replies, updated the IAT SBSE DM Batcher Tool Information and the interim contact letter exception.

(5) IRM 4.19.23.3.2.2 ,Batching and Controlling Reconsiderations (previously called late replies), updated the IAT SBSE DM Batcher Tool information.

(6) IRM 4.19.23.3.2.3 ,Batching and Controlling Prior Reconsiderations (previously called prior late replies), updated the IAT SBSE DM Batcher Tool information.

(7) IRM 4.19.23.3.2.4.1 ,Batching and Controlling 3870 Recons (previously called prior late replies), updated the IAT SBSE DM Batcher Tool information.

(8) IRM 4.19.23.9 ,Taxpayer Advocate Service, added information about the Taxpayer Bill of Rights (TBOR).

(9) Exhibit 4.19.23-1 ,Batcher Control Sheet, updated the sample control sheet.

(10) Updated and replaced all references to Late replies with Reconsiderations (RECONS).

(11) Editorial changes have been made throughout the IRM.

Effect on Other Documents

This material supersedes IRM 4.19.23 dated 09/27/2019.

Audience

Employees in SB/SE

Effective Date

(08-17-2020)

Maha H. Williams
Director, Exam Field and Campus Policy
Small Business/Self-Employed

Program Scope and Objectives

  1. This manual contains information on Business master file (BMF) accounts with discrepancy issues related to the Federal Unemployment Tax Act (FUTA).

  2. Purpose: to provide clerical procedures regarding unemployment taxes.

  3. Audience: The primary users of this IRM are the FUTA clerical staff in the Small Business Self Employed site.

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

  5. Program Owner: Small Business/Self Employed (SB/SE) BMF Document Matching.

  6. Primary Stakeholder: Small Business/ Self Employed (SB/SE)

  7. Program Goals: Program goals for this type of work can be found in IRM 1.4.23, FUTA Manager and Coordinator Guide.

Background

  1. The FUTA provides for cooperation between state and federal governments in the establishment and administration of unemployment insurance. Under this dual system, the employer is subject to a payroll tax levied by the federal and state government. The taxpayer is allowed a maximum credit of 5.4% against the Federal tax of 6.0%, provided all payments were made to the state by the due date. Employers whose payments are received by the state after the due date are allowed 90% of the credit that would have been allowed, had the payments been made on time. As a result of FUTA, IRS is responsible for receiving and processing the Form 940 and/or Schedule H. All revenue associated with these tax returns is turned over to the Department of Labor (DOL). DOL is responsible for dispensing the revenue deposited in the FUTA Trust Fund. DOL is charged with monitoring the Unemployment Insurance Systems for each state and can withhold funds from a state, if the state does not comply with Federal standards.

Authority
  1. The authority for the procedures of FUTA can be found under Title 26, Subtitle C, Chapter 23 of the Internal Revenue Code (Section 3301 through Section 3311).

Roles and Responsibilities
  1. The Director, SB/SE Exam Field and Campus Policy is responsible for the FUTA 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 FUTA Case Processing System (FCP).

Acronyms
  1. Below is list of acronyms and their definitions:

    Term Definition
    ASED Assessment Statute Expiration Date
    BMF Business Master File
    CAF Centralized Authorization File
    CC Closing Code
    EIN Employer Identification Number
    FCP FUTA Case Processing
    FUTA Federal Unemployment Tax Act
    IAT Integrated Automation Technologies
    IDRS Integrated Data Retrieval System
    IMF Individual Master File
    IRC Internal Revenue Code
    IRM Internal Revenue Manual
    MFT Master File Tax
    POA Power of Attorney
    RECON Reconsideration
    RSED Refund Statute Expiration Date
    SSN Social Security Number
    TC Transaction Code
    TIN Taxpayer Identification Number

Related Resources
  1. IRM 1.4.23, FUTA Manager and Coordinator Guide.

  2. IRM 4.19.5, Certification of State Federal Unemployment Tax Act.

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 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 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. In the FUTA Clerical team, 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 201712 tax year returns were due by 01/31/2018; therefore the ASED for 201712 cases will be 01/31/2021). The ASED can be found on IDRS command code TXMOD or command code BMFOLT.

  4. The Integrated Automation Technology (IAT) SBSE DM (Document Matching) Batcher Tool will assist you in identifying a statute tax year case. The tool will not batch the case and will print out on an error listing with the comment ASED EXPIRING in the additional issues section.

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

    1. Input C#,TYFTAXXXXX,A,TPLR.

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

FUTA Correspondence

  1. FUTA receipts will be responses to:

    1. Letter 4010C, FUTA Certification-Proposed Tax Increase to FUTA Tax.

    2. Letter 4011C, FUTA Certification-Proposed Tax Decrease to FUTA Tax.

      Note:

      You may also receive the Spanish versions of either Letter 4010SP, FUTA Certification-Proposed Tax Increase to FUTA Tax or Letter 4011SP, FUTA Certification-Proposed Tax Decrease to FUTA Tax.

    3. Letter 380C, State Certification Tax Adjustment Explained Form 940/ Schedule H.

    4. Letter 3786C, FUTA Certification No Change to Tax Liability.

    5. Adjustment notices.

    6. Notices of intent to levy.

    7. Balance due notices.

  2. Further research may be needed to identify and process these cases.

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

  4. FUTA cases can be defined as Reply, Recon (previously called Late Reply), Prior Recon (previously called Prior Late reply, or Undeliverables.

    1. A Reply is any case without a date on FCP.

    2. A Recon (previously called Late Reply)is any case with a closing date on FCP.

    3. A Prior Recon (previously called Prior Late Reply) is any case no longer on FCP.

    4. An Undeliverable is mail returned as not delivered to the taxpayer.

  5. Form 3870 Recon (previously called prior late reply) and TAS cases will also be received as receipts, both are now controlled on FCP and IDRS. Further instruction for processing Form 3870 Recon (previously called prior late reply) and TAS cases are detailed below see IRM 4.19.23.3.2.4.1 and IRM 4.19.23.9.

Processing Incoming Receipts

  1. Upon receipt of all correspondence:

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

    2. Perform a quick sort to determine if the correspondence is in response to a FUTA discrepancy.

    3. Sort correspondence by tax year.

Researching New Receipts
  1. FCP Research-to determine the status of the case.

    If .. Research FCP... Then ...
    the correspondence is a Letter 4010C ,Letter 4011C ,Letter 380C or Letter 3786C . if the case is a new receipt
    1. Enter the reply date through the "Edit Reply/Undeliverable " Screen.

    2. The case is now ready to be batched.

    the correspondence is a Letter 4010C ,Letter 4011C ,Letter 380C or Letter 3786C . if the case is determined to be additional correspondence
    1. Print TXMOD Screen from IDRS

    2. Associate the additional correspondence to the original reply.

    the correspondence is a Letter 4010C ,Letter 4011C ,Letter 380C or Letter 3786C . if the case is determined to be a Late Reply
    1. Enter the reply date through the "Edit Reply/Undeliverable " Screen.

    2. The case is now ready to be batched.

  2. IDRS Research

    1. When you can't determine if the correspondence belongs to FUTA, you will need to research IDRS.

    2. To determine if the correspondence is a FUTA Reply, research TXMOD for an open "M" (monitor) control to the FUTA Unit.

    3. To determine if the correspondence is a FUTA Recon (previously called Late Reply) or Prior Recon (previously called a Prior Late Reply), research CC TXMOD for a TC 290/291 adjustment with blocking series 50/51 or 12 for Statute Function assignment (MFT 10) or 05 (MFT 05 or MFT 30) for the tax year you are working.

      Note:

      If only an SSN is available, you will need to research CC IMFOLR to obtain the X-REF TIN/EIN. This EIN will be used to access the case on FCP. All Schedule H Replies, Recons (previously called Late Replies) and Prior Recons (previously called a prior late reply) must be controlled on the SSN.

4010C/4011C and Miscellaneous Controlling Procedures
  1. All receipts must be controlled no later than 14 days from the earliest IRS received date or 3 business days from receipt into the department.

  2. The IRS received date is determined by oldest received date stamped on correspondence. If there is no received date (other than the FUTA stamped date) see below:

    1. Latest postmark or private delivery service date on the envelope.

    2. Service Center Automated Mail Processing System (SCAMPS) digital dates.

      Exception:

      If the only available date is from a copy of a previously file return, do not use the copied signature’s date.

    3. Today’s date minus 10 days.

  3. To control the receipts on FCP:

    1. Click on "EDIT."

    2. Choose "Reply/Undeliverables Rcvd."

    3. Click "Reply" .

    4. Enter earliest IRS received date.

    5. Enter Employer Identification Number (EIN) or Taxpayer Identification number (TIN) and Tax Period.

    6. Click "QUERY."

  4. Batch the miscellaneous receipts as follows:

    When you are prompted to Batch.... Then ...
    " Update the reply date on this Letter 4010C /Letter 4011C issued"
    1. Click "OK."

    2. Choose Cancel when prompted to add a case to a batch.

    3. Keep cases sorted by program and received date in groups of no more than 25.

    4. See IRM 4.19.23.3.2.1 Batching and Controlling Replies.

    No matching correspondence records are found....
    AND
    you have double checked the EIN and the tax period for accuracy and it is correct
    1. You have misrouted mail or a prior year case.

    2. IRM 4.19.23.3.1.1 Researching New Receipts.

    The "case is already closed in FCP"
    1. Click "OK" to add to the Recon (previously called Late Reply)Table.

    2. Keep cases sorted by program and received date in groups of no more than 25.

    3. IRM 4.19.23.3.2.2 Batching and Controlling Recons (Previously Called Late Replies).

    The "case does not exist in FCP"
    1. Research IDRS to determine if this is a Recon (previously called Late Reply) case belonging to your site.

    2. Add to the Recon (previously called Late Reply) Table.

    3. Keep cases sorted by program and received date in groups of no more than 25.

    4. And it is determined the case does not belong to your site, route the case to the appropriate site http://wc.web.irs.gov/CAWR-SSA/Address%20and%20mail%20stop.htm( this hyperlink is for SSA/CAWR cases that need to be rerouted.).

Controlling on IDRS

  1. All replies and Recons (previously called 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 25 cases of the same program and received date.

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

    3. Each batch must be assigned to a tax examiner in received date order.

    4. Each batch number is built according to the program type as outlined in IRM 4.19.23.3.2.1, Batching and Controlling Replies, IRM 4.19.23.3.2.2, Batching and Controlling Recons (Previously Called Late Replies), and IRM 4.19.23.3.2.3 , Batching and Controlling Prior Recons (Previously Called Prior Late Replies).

    5. Designate specific IDRS numbers to maintain your reply, recon (previously called late reply) and prior recon (previously called prior late reply) inventory.

    Note:

    The IAT SBSE DM 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 inputs the applicable STAUP or TC 470/90 on all cases, and alerts the clerical staff when the cases have an ASED expiring within 90 days. Use of this tool is mandatory.

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

  2. Issue a Letter 5825C when appropriate and must be issued within 30 days of the IRS Received Date to adhere to Policy Statement P-21-3 guidelines.

    Note:

    FCP now sends a Letter 5825C on all open cases in the database and aged to 25 days. A follow up Letter 5825C will be issued by FCP on all cases still open when the initial Letter 5825C ages to 55 days old. Subsequent Letter 5825C will be issued automatically every 55 days until the case is closed. Management will monitor the CCA listing for any cases assigned to the staging area that are no longer on FCP, not closed within 55 days and a second Letter 5825C will be issued.

  3. FUTA batches will be numbered as follows:

    Tax year Program Sequence Number
    AA = the last two digits of the release year of the cases. BBB = FUTA Replies will be notated as FTA. CCCCC = Next Sequential Number available in the log.

    Example:

    18FTA00001 = first batch created for FUTA Replies for 2018 cases.

  4. Retrieve cases already previously sorted (no more than 25 cases), of the same program and IRS received date and assign the next available batch number from the appropriate log book.

  5. Follow procedures below to update IDRS control:

    1. Access CC TXMOD.

    2. Find C# control.

    3. Access CC ACTON.

    4. Assign the batch to the appropriate Status "A" control labeled TPRR and reassign it to the number designated for FUTA Replies.

    Example:

    CXX,09FTA00001. The "XX" will stand for the "C#" and will overlay the existing FUTA control number.

    Note:

    The IAT SBSE DM 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 inputs the applicable STAUP or TC 470/90 on all cases, and alerts the clerical staff when the cases have 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 4.19.23-1 for 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 Reconsiderations (Previously Called Late Replies)
  1. Sort recons (previously called late replies) by received date.

  2. Access the FCP system, mark the Replies field, enter the received date. The Status Code field will update to LTRP, only if the current Status is a Close Code.

  3. Repeat this process for any re-occurring recons (previously called late replies) received, as long as they are on the FCP system. For Prior Recons (previously called Prior Late Replies), see IRM 4.19.23.3.2.3

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

  5. Issue a Letter 5825Cmust be issued within 30 days of the IRS Received date to adhere to Policy Statement P-21-3 guidelines.

    Note:

    FCP now sends a Letter 5825C on all cases in the database that are open after 55 days. Management will monitor the CCA listing for any cases assigned to the staging area that are no longer on FCP, not closed within 55 days and a second Letter 5825C will be issued.

  6. FUTA Recon (previously called Late Reply) batches will be numbered as follows:

    Tax Year Program Recons (previously called Late Replies) Sequence Number
    AA = the last two digits of the tax year of the cases. BBB = Recons (previously called late replies) will be notated asFLR. CCCCC = Next Sequential Number available in the log.

    Example:

    12FLR00001 = first batch created for FUTA Recons (previously called Late Replies) for 2012 cases.

  7. Retrieve cases already previously sorted (no more than 25 cases), of the same program and IRS received date, and assign the next available batch number from the appropriate log book.

  8. 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#,08FLR00001,A,TPLR
      IDRS Unit # and TE#,Rec'd Date

      Note:

      The IAT SBSE DM 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 inputs the applicable STAUP or TC 470/90 on all cases, and alerts the clerical staff when the cases have an ASED expiring within 90 days. Use of this tool is mandatory.

  9. Create a cover sheet listing each EIN/TIN of the batch, IRS Received Date, and Batch Number. See Exhibit 4.19.23-1 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.

Batching and Controlling Prior Reconsiderations (Previously Called Prior Late Replies)
  1. When prior recons (previously called 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 within 30 days of the IRS Received date to adhere to Policy Statement P-21-3 guidelines.

    Note:

    FCP now sends a Letter 5825C on all cases in the database that are open after 55 days. Management will monitor the CCA listing for any cases assigned to the staging area that are no longer on FCP, not closed within 55 days and a second Letter 5825C will be issued..

  4. FUTA Prior Recon (previously called Late Reply) batches will be numbered as follows:

    Tax Year Program/Prior Recon (previously called Prior Late Reply) Sequence Number
    AA = the last 2 digits of the latest release year dropped off the FCP System BBB = FUTA Prior Recons (previously called Prior Late Replies) will be notated as FPR. CCCCC = Sequential Number available in the log.

    Example:

    09FPR00001= first batch created for FUTA Prior Recons (previously called prior late replies) for a 2009 case.

  5. Retrieve cases already previously sorted (no more than 25 cases), of the same program and IRS received date, and assign the next available batch number from the appropriate log book.

  6. 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#,FPR00001,A,TPLR
    IDRS Unit # and TE#,Rec'd Date

    Note:

    The IAT SBSE DM 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 inputs the applicable STAUP or TC 470/90 on all cases, and alerts the clerical staff when the cases have 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 Batch Number. See Exhibit 4.19.23-1 for a sample cover sheet. Place cover sheet on top of the batch.

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

Retrieving Forms 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 FUTA tax assessment and/or penalty. These requests will either be paper, fax, or sent to a secure e-mail box *SB/SE CCS XXXX CAWR-FUTA (XXXX= CINCY, MEM, or PHILA). The RO will put the taxpayer's Name Control, MFT, and the last four digits of the TIN in the subject line for each specific Form 3870 being sent.

  2. The clerk or designated official:

    1. retrieve the new electronic Form 3870 once a day

    2. print each Form 3870 with attachments and staple

    3. 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.

    4. If the cases are in our inventory and closed, batch them as category 3870 and record the receipts in inventory. Use the 3870 button on FCP to control the case as a 3870. This will ensure the case is recorded properly and will restrict interim letters from being issued.

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

    Reminder:

    Do not mix FUTA Recons (previously called Late Replies) with the Form 3870 Recons (previously called 3870 Prior Late Replies). Form 3870 must be batched separately.

Batching and Controlling Forms 3870 Reconsiderations (Previously Called Prior Late Replies)
  1. Form 3870 Recons (previously called 3870 prior late replies) will be batched as 3870 Recons (previously called prior Late Replies). Sort the Form 3870 Recons (previously called 3870 prior late replies) by received date and tax year. The E-mail date will be used as the received date. (No more than 25 cases to a batch).

  2. Use the 3870 button on FCP 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 mandatory IAT SBSE DM Batcher Tool.

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

  4. FUTA Form 3870 Recon batches will be numbered as follows:

    Program Type Category 3870 Recons (previously called Prior Late Reply) Sequence Number
    A = FUTA 3870 Recons (previously called prior late replies) will be notated asF. BBBB = Category will be notated as3870 CCCCC = Next sequential number available in the log.

    Example:

    F387000001 = first batch created for FUTA3870 Recon (previously called prior Late Reply).

  5. Retrieve cases of the same program and received date, and assign the next available batch number from the appropriate log book.

  6. Use the IAT SBSE DM Batcher Tool to streamline the clerical Form 3870 batching process. The Batcher Tool allows the user to input the applicable STAUP or TC470/90 on all cases and alerts the clerical staff when the cases have an ASED expiring within 90 days. The use of this tool is mandatory.

  7. To manually assign Forms 3870 Recons (previously called prior late replies) and create the IDRS control, follow the procedures below:

    1. Access CC TXMOD

    2. Access CC ACTON

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

      Example:

      C#,F387000001,A,3870
      IDRS Unit #,TE#, Received Date

  8. File completed batch in FUTA inventory staging area designated for Forms 3870 in batch number order.

Assigning Work to Tax Examiners
  1. The procedures below must be followed when assigning work to a Tax Examiner:

    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 Tax Examiner's IDRS number.

      Example:

      Batch 09FTA00001 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.

    Note:

    When assigning a case directly to a Tax Examiner assign the case on IDRS directly to the specific tax examiner number.

Loose State Certifications

  1. At times, states will send loose State Certifications (Form 940C) for cases not yet in the FCP database. These certifications are to be treated as loose certifications only. Research FCP to ensure a previous state cert 940C has not been received. To research FCP:

    1. On FCP click on EDIT.

    2. Select FUTA Form 940C from the drop down menu.

    3. Click on the Search String box and type in the EIN in "XX-XXXXXXX" format.

    4. Click the down arrow next to the Search Field Box and change it to EIN and click the Find button.

    5. Repeat steps 3 and 4 using information like Company Name for the search if the 940C information does not appear.

    6. Click the No button to stop the search if the 940C is not found.

    7. If certification is not found then file the 940C’s as loose certifications.

  2. When inputting new Form 940C follow the steps below:

    1. Click New button to enter the new 940C information.

    2. Enter the information from the 940C in the fields, a number will be assigned to the 940C and write the number at the top of the 940C.

    3. Click the Apply button to save the Form 940C information, then the Close button.

    4. File in the Form 940C in the FUTA staging area using the assigned number.

Undeliverables

  1. This section is to be used for all FUTA letters returned undeliverable. Undeliverable mail received from the mail room can be identified one of two ways:

    1. Unopened original FUTA correspondence.

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

  2. All undeliverable mail is to be reviewed within 7 calender days of the IRS received date. This action will prevent the FCP System from closing the case as a "No Reply" before a new letter can be issued with the new address.

  3. Check the envelope for a yellow Post Office (P.O.) forwarding sticker.

  4. When there is no P.O. sticker research IDRS Command codes ENMOD, INOLES, and NAMEE for a new/better address by using the Research Address IAT tool.

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

    If ... Then ...
    A new address is found
    AND
    It is within 30 days of the mail out date
    The clerk will re-mail all information, including the original envelope to the new/better address.
    A new address is found
    AND
    it is after 30 days of the mail out date
    1. Input Undeliverable date onto FCP and batch the Undeliverable to a tax examiner.

    A new address is NOT found Input Undeliverable date and batch for a tax examiner to work.
  6. Undeliverable batches will be numbered as follows:

    Tax Year Program/Undel Sequence Number
    AA = The last two digits of the tax year of the cases BBB = FUTA Undeliverable will be notated as FUN CCCCC = Next sequential number available in the log

    Example:

    18FUN00001 = first batch created for FUTA Undeliverable for 2018 cases.

  7. Retrieve cases previously sorted (no more than 25 cases) of the same program and IRS received date and assign the next available batch number form the appropriate log book.

  8. Follow procedures below to update IDRS control:

    1. Access CC TXMOD.

    2. Access CC ACTON.

    3. Ensure the previous "M" control is closed.

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

      Example:

      C#,11FUN00001,A,UNDL
      *(Assignee employee number),MMDDYYYY(IRS receive date)

  9. Create a cover sheet listing each EIN/TIN of the batch, IRS Received Date, and Batch Number. See Exhibit 4.19.23-1 for a sample cover sheet. Place cover sheet on top of the batch.

  10. File completed batch in FUTA inventory undeliverable staging area in batch number order or give directly to a tax examiner.

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 FUTA unit.

  3. At times misdirected mail may be received , and not related to the FUTA program. This mail will be routed back to the mail room for proper routing.

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

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 Record of Discovered Remittances.

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

Retrieving Phone Messages

  1. At times taxpayers or internal IRS areas may call to inquire about a FUTA 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 Tax Examiner's designated mail box.

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

Taxpayer Advocate Service

  1. Even though the IRS strives to improve its systems and provide better service, some taxpayers still have difficulty getting solutions to their problems or appropriate, timely responses to their inquiries. The purpose of all Taxpayer Advocate Service (TAS) is to guide taxpayers through the process resolving tax problems they haven't been able to resolve on their own. Information on the new TAS Case Acceptance Criteria and how and when to refer a taxpayer to TAS is available in IRM 13.1.7. The TAS toll-free case intake line is 1–877–777–4778 or TTY/TDD 1–800–829–4059. Service Level Agreements between TAS and the Operating Divisions are available at the TAS web site. When a TAS case is received you will take it to your TAS Coordinator.

  2. The Taxpayer Bill of Rights (TBOR), was adopted by IRS in June 2014, outlines the ten fundamental rights of taxpayers. Publication 1 Your Rights as a Taxpayer, was updated to include the modified language from the Taxpayer Bill of Rights.

  3. Per the Taxpayer Bill of Rights (TBOR), taxpayers have the right to expect a fair and just tax system which provides taxpayers with the opportunity to have their facts and circumstance considered when it might affect their underlying liabilities, ability to pay, or ability to provide information timely. For additional information on the Taxpayer Bill of Rights, visit http://taxpayeradvocate.irs.gov/About-TAS/Taxpayer-Rights.

Batch Control Sheet

Below is an example of the Batch Cover Sheet used by the IAT SBSB DM Batcher tool. The header will show the IRS Received date, Batch # and the 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#