These procedures are based on and consistent with the Taxpayer Bill of Rights, The Privacy Act of 1974, the Fair Tax Collection Processes Act, the Freedom of Information Act, and IRS Policy Statement P-1-1.

The following authorities provide the basis for these guidelines:

Director, Collection Policy is responsible for the policies and procedures in this IRM.

Director, Field Collection, has executive oversight for all Field Collection programs.

Field Collection Area Directors, territory managers and group managers are responsible for ensuring compliance by field personnel with these procedures.

Revenue officers are responsible for reading and implementing the procedures listed in this IRM.

Program Reviews: Program reviews completed by Collection Policy to verify compliance with the IRM requirements and address any TIGTA/GAO findings. Case reviews are conducted by Group Managers to ensure compliance with this IRM.

Program Reports: Collection managers utilize reports generated from the Integrated Collection System (ICS) and the ENTITY Case Management System to monitor and track inventory assignments and timely and appropriately take case actions. Reports and queries from ICS and Entity of cases which include open TDIs can be reviewed to assist managers in determining if employees are timely addressing TDIs. Reports from the Embedded Quality Review system provide review information for managerial use in guiding revenue officers to promote timeliness, effectiveness, and accuracy of case actions.

Program Effectiveness: Operational reviews are conducted by the Collection Area Directors and Territory Managers annually to evaluate program delivery and conformance to administrative and program National Quality Reviews and consistency reviews are routinely conducted to measure program consistency, effectiveness in case actions, and compliance with policy and procedures. Trends reported in these reviews are used to promote and improve program effectiveness. Trends, recommendations and corrective actions issued during the course of program and operational reviews are used to identify opportunities for improvement and achieve program goals.

Collection managers verify program and procedural compliance by conducting case consultations, case reviews, performance reviews, and security reviews. Prescribed internal controls are detailed in IRM 1.4.50, Collection Group Manager, Territory Manager and Area Director Operational Aid, which communicates responsibility to Collection managers for promoting quality case work and required internal controls. The ICS, ENTITY Case Management, Embedded Quality Review, and National Quality Review Systems provide the case access, data, and reports used by managers to monitor internal controls.

There are several procedural and systemic controls for Delinquent Return Closures. Certain methods of TDI closures require managerial approval. Specific transaction codes identify taxpayers under Criminal Investigation. There are a number of controls surrounding IRS employee return delinquencies as well as the referral to CI process.

The following table provides a list of acronyms used throughout this IRM.

IRC 6020(b)

IRC 6702

P 5-133

Notice 2010-33

There are two types of delinquency checks for individuals. Case creation uses information obtained from both delinquency checks in the Case Creation Nonfiler Identification Program (CCNIP).

The CCNIP identifies individual taxpayers from:

The BMF case creation program identifies business taxpayers who have an open filing requirement for a return that is not filed. BMF delinquency checks are made 16 weeks after the due date of each return and tax period.

The BMF delinquency check assimilates third party information (CAWR data, 1099 IRP, and Payer Master File Processing) in the case creation program to identify productive BMF nonfiler cases. This process is known as the Business Masterfile Case Creation Nonfiler Identification Process (BMF CCNIP).

Nonfilers generally receive one or two notices about their delinquent return. When the taxpayer fails to resolve the delinquency during the notice process, a delinquent return (Del Ret) module is generated and assigned an Inventory Delivery System (IDS) case prioritization code that determines where it will be assigned.

You must investigate all unresolved previous and subsequent tax periods when a Del Ret module is issued on a taxpayer for a specific tax period. The goal of your investigation is to bring the taxpayer into full filing and paying compliance.

Del Ret cases are worked as a standalone investigation or in combination with a balance due (Bal Due) account or other investigation (OI). The latter is referred to as a "combo case."

Review the complete case history when a Del Ret case is first assigned to you. In addition to the case history, several research tools are available on IDRS and CFOL to help in the initial analysis of your case. The Initial Analysis Tool (IAT) is also a useful tool for verifying compliance. Document the following during your initial analysis:

Observe taxpayer rights when conducting delinquency investigations.

Verify at first contact that the taxpayer has received Pub 1, Your Rights as a Taxpayer. If first contact is by telephone and the taxpayer has not received a copy of the publication, the interview may continue; however, Pub 1 should be sent to the taxpayer.

Document the case history that the taxpayer has been provided Pub 1 and any questions the taxpayer had were answered.

Give taxpayers who reach an impasse during an interview an opportunity to meet with the supervisory official. Advise taxpayers of their appeal rights even if they do not request a higher level of review.

The taxpayer may be represented during a taxpayer interview by any of the following who is not disbarred or suspended from practice before the Service, and has a properly executed Form 2848, Power of Attorney and Declaration of Representative, from the taxpayer:

Suspend an interview if the taxpayer clearly indicates that he/she wishes to consult with a representative.

Serve a collection summons if you believe the taxpayer abuses this process through repeated delays or suspensions of interviews. Document the reasons for non-issuance in such circumstances.

Notify the taxpayer if you believe the representative is responsible for unreasonable delay or hindrance. Request that the taxpayer appear for an interview and inform the taxpayer that a collection summons requiring the taxpayer’s appearance at an interview may be issued. Refer to IRM 5.1.23.5, By-passing a Taxpayer's Representative, for more information and by-pass procedures.

When appropriate, continue with IRC 6020(b) procedures or referrals to Examination or Criminal Investigation while addressing delays by the taxpayer’s representative.

Determine and document whether all returns are filed and paid during initial contact. A full compliance check will include, as appropriate, reference to the following:

Determine and document the root cause for the tax delinquency and instruct the taxpayer to take the necessary corrective steps.

Avoid field contact, if possible, when working cases on potentially dangerous taxpayers and taxpayers who use frivolous legal arguments to delay collection. Use field contact only after office methods, such as correspondence, telephone contact, and office appointments, have proven unsuccessful. See IRM 5.1.3.5, Armed Escort to Contact a Taxpayer, for armed escort procedures.

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Frivolous nonfilers are taxpayers who refuse to file or who file non-processable returns based on arguments not supported by tax law. Review Policy Statement 5–133, Delinquent Returns -enforcement of filing requirements, found in IRM 1.2.1.6.18 and follow the appropriate actions specified in IRM 5.1.11.7, Delinquent Return Investigation Closures, to secure a delinquent return when working frivolous nonfiler cases.

If you determine that a taxpayer has submitted a tax return (original or amended) taking a frivolous position, stamp the return with the date received. Do not send the return to Submission Processing. Instead, send the complete original or amended return with all attachments, including the envelope, to the Frivolous Return Program (FRP) unit address below. Maintain a copy of the return in the case file.

IRC 6702(a) provides that a person who files a purported tax return (original or amended) based on one or more positions the IRS has identified as frivolous under IRC 6702(c) will be subject to a penalty of $5,000, if the return,

See Notice 2010-33, 2010-17 I.R.B. 609 for positions the IRS has identified as frivolous.

A person will also be subject to a penalty if the purported return is not based on a position listed in Notice 2010–33, but it meets either a) or b) immediately above and reflects a desire to delay or impede tax administration.

The IRC 6702(a) penalty is assessed by the FRP unit at the Ogden Compliance Services Campus.

The FRP unit mails a Letter 3176, Response to Frivolous Documents/Returns Received from Taxpayers, along with Pub 2105, Why do I have to Pay Taxes?, to the taxpayer informing them of the frivolous argument and requesting they rescind their position and submit any non-filed returns. The FRP unit will monitor for a response from the taxpayer.

Monitor IDRS for assessment of the IRC 6702(a) penalty (TC 240, PRN 666). If there is no assessment after ten weeks, contact the Ogden Compliance Service Center FRP Coordinator to determine the status.

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Refer a case to Examination on Form 5666, TE/GE Referral Information Report, if the following occurs:

Contact TE/GE Customer Account Services at 877–829–5500 in Cincinnati and notify them of any changes that would affect their Exempt Organization Master File.

Field Collection is responsible for securing delinquent wagering, occupational, and/or excise tax returns, except when:

Stop all balance due enforcement actions upon learning that the taxpayer has filed a petition under any chapter in bankruptcy.

See IRM 5.9.3.9, Revenue Officers and Insolvency, for additional information and necessary actions.

IRS employee Del Rets are identified by specific Selection Codes. Refer to Document 6209, Section 11.7, for the Selection Code assignment by Delinquent Tax Year and Business Operating Division (BOD).

Area offices will designate an experienced revenue officer and back-up to work IRS employee cases.

IRS employee cases bypass ACS and are systemically assigned to the Area ICS/Entity Quality Analyst (IQA) via the Integrated Collection System (ICS).

Potential violations under RRA '98 §1203 (b)(8), "willful failure to file a federal tax return," or (b)(9), "willful understatement of federal tax liability" are generally identified through the Employee Tax Compliance (ETC) program. Do not refer these cases to TIGTA.

IRS employee cases are worked like any other taxpayer delinquent return investigation.

Follow the procedures in IRM 5.1.11.6, when a delinquent return is secured. Record the following information in the ICS history:

Always protect against inappropriate disclosures due to the sensitive nature of IRS employee cases.

If the taxpayer is no longer an employee of the IRS or the secondary coded case is on an ex-spouse and there are no outstanding joint liabilities with the IRS employee, request input of TC 972, AC 191 on Form 4844 to turn off the IRS Employee Indicator. Note in the Remarks section of the form "Reversing IRS employee Indicator." Allow two cycles for removal of the indicator.

Remove the FED Indicator by requesting TC 972, AC 51 only if the taxpayer is not a federal employee or retiree.

Intra-Area Del Ret transfers are input using ICS and require managerial approval.

Initiate a Courtesy Investigation (see also IRM 5.1.8.2, Originating Office Procedures, to propose a transfer if:

Indicate the potential taxpayer address in the "Action Information" portion, and specify the action required in the "Action Requested" portion of the request for a Courtesy Investigation.

Refer to Delinquent Return Refund Hold procedures found in IRM 25.12.1, Processing Refund Hold Program Inventory. This IRM section contains the criteria for holding a taxpayer's refund while investigating the delinquent return(s) and the functional procedures for screening, working, and monitoring cases.

The Service holds individual income tax refunds, debtor Master File offsets, and credit elects when a current or prior year return is filed with a refund ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ that is not barred by statute and the taxpayer has a return delinquency in the five years prior to the current filing year. Refund hold modules can be identified by the following:

The Delinquent Return Refund Hold program delays issuing an income tax refund up to six months while the Service investigates a return delinquency. The refund is released to the taxpayer after it is used to offset any balance due on the delinquent return(s).

If you are unsuccessful in securing the return(s), refer any select code standalone Del Ret module with a Refund Hold indicator to the Automated Substitute for Return (ASFR) or the appropriate Examination process using the applicable ICS closure. See IRM 5.1.11.7.3.

See IRM 5.7.9.2.1, Identifying Federal Contractor (FEDCON), for information on the Masterfile that identifies the taxpayer as a federal contractor.

Per IRM 5.7.9.4, Non-Filers- Delinquent Returns, promptly assess unpaid delinquent returns secured from a federal contractor or vendor. See IRM 5.1.4.5, Prompt Assessments.

The Taxpayer Protection Program (TPP) is responsible for identifying potential identity theft cases that are scored by a set of identity theft models in the Dependent Database (DDb); selected through filters in the Return Review Program (RRP) system; or manually selected by Return Integrity Verification Operation (RIVO). See IRM 25.25.6.1.7 for an overview of the TPP.

The premise of the Taxpayer Protection Program is to screen returns for identify theft indicators early in the IRS’s return submissions process and engage with taxpayers then, instead of processing suspicious returns and relegating victimized taxpayers to the more burdensome ID Theft Affidavit process. The Taxpayer Protection Program generally involves four functional steps.

For returns identified with potential identity theft indications, the processing of the return is stopped and the tax return information is posted to MFT 32.

Employees should be aware of the TPP when working Del Ret cases, and research MFT 32 before proceeding with 6020(b) or referral activity.

Revenue officers may encounter situations in which the taxpayer states they have filed a return. However, a return has not posted to MFT 30 under their TIN and there are Taxpayer Protection Program (TPP) indicators on the account. The following are indications of TPP involvement:

The chart below addresses the unpotsable procedures to follow.

Revenue officers who are meeting/calling the taxpayer to determine if that return was filed by them, could start by asking if they received any of the TPP letters.

TPP letters that may have been mailed to taxpayer include the following: Letter 4883C, Letter 5071C, Letter 5447C , or Letter 5747C.

If face to face contact is made with the taxpayer (or over the phone for International) and authentication is completed, Revenue officers should date stamp and forward secured returns to RICS-IVO for processing.
RICS - IVO
Stop 6579 AUSC
3651 S IH 35
Austin, TX 78741

The timeframe for return processing is 6-8 weeks. Follow up for timeframes not met. Refer to the Collection Field ID Theft Liaison.

If face to face contact is made with the taxpayer but authentication cannot be completed, instruct the taxpayer to call 800-829-1040 to complete high risk authentication.

Revenue officers should prepare Form 4442, Inquiry Referral and fax to #855-851-1378#. In the remarks section, include the DLN of the return that needs to be resolved along with a a statement that the taxpayer was authenticated in person or over the phone (for International taxpayers). (The DLN is needed if there is more than one return on the module.) If the requestor has access to initiate an e-4442 through AMS, send the e-4442 to IVO (using RICS-IVO TPP for the e-4442 queue) with the authentication statement and DLN of the return that needs to be resolved.

Compute and include all penalties and interest in the full amount due.

Apply partial payments secured on multiple returns first to the oldest return in order of tax, penalty, and interest, unless the taxpayer specifically designates otherwise.

See IRM 5.1.11.8.1 for ICS module closure instructions.

Contact the taxpayer and demand full payment (see IRM 5.1.10, Taxpayer Contacts) when a return is received without full payment of tax, penalty, and interest. If full payment is not secured, make all reasonable efforts to collect full payment. If the taxpayer is unable to pay the liability in full, resolve the liability in one of the following ways:

Write "TC 599 cc 069" on the upper left margin of the secured return and close the ICS Del Ret module per IRM 5.1.11.8.1.

If a Collection Information Statement (CIS) is secured, verify the information contained on the CIS without delaying the processing of the return.

Open an "ICS Only Pre-Assessed" module to complete the investigation if the liability is not resolved by full payment.

If the subsequent investigation reveals assets that can be used to collect the liability, then request the issuance of the Bal Due through your group manager via CC STAUP.

If enforced collection action will be taken, then request a prompt assessment per IRM 5.1.4, Jeopardy, Termination, Quick and Prompt Assessments.

If the taxpayer is in bankruptcy, then write TC 599 and the appropriate taxable or nontaxable cc on the return. Assessments can be made on returns where the bankruptcy was filed on or after October 22, 1994. See IRM 5.9.4.3.1(2), BAPCA and BRA94's Effect on Assessments.

See IRM 5.1.11.7.7 and IRM 5.1.11.8.1 for the appropriate case and ICS closing actions for returns prepared and filed under IRC 6020(b).

BMF or IMF Del Rets closed with closing codes 063 or 064 with TC 599 receive a first notice from the Master File with Publication 1 and are then accelerated to Bal Due status 26 the following week.

Initiate a Trust Fund Recovery Penalty investigation on any secured trust fund returns, if required.

You may periodically encounter tax returns with potential underreported tax. This may happen when you are:

If this occurs, do not attempt to audit, examine, or verify the correctness of the return secured. If omitted taxable income appears to be at least ≡ ≡ ≡ ≡ ≡ ≡ or overstatement of credits exceeds ≡ ≡ ≡ ≡, consider a referral to Examination. Do ensure the secured return is valid (signed and complete) and attempt to resolve with the taxpayer any discrepancies or omissions.

Upon receipt of an original return filed for reconsideration of an SFR assessment do the following:

In all investigations, be alert to discrepancies that may indicate underreporting on a tax return.

The determination to pursue or not pursue a return will depend upon the facts of each case. Review Policy Statement 5–133 (P-5-133) (see IRM 1.2.1.6.18) for general guidelines and factors to consider when determining whether to pursue enforcement of filing requirements and secure a return.

The specific factors that must be considered when making an enforcement determination are as follows:

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Enforcement of filing requirements will normally be pursued for a six year period. Always request all (non-fraudulent) unfiled returns. The taxpayer may file for all open periods regardless of the age of the delinquency.

Document the case history with the facts and reasons supporting your decision. If after consideration of the factors above, a determination is made that more or less than six years of filing requirements will be enforced, then managerial approval is required.

Calculate the six year period for enforcement by starting with the tax year that is currently due and go back six years.

P-5-133 allows an investigating employee to close a Del Ret without enforcement because the non-filing is not willful, and:

Generally, when closing a Del Ret under (7) c. above, the nonfiler's current ability to pay will not be the primary factor in determining whether or not to secure less than six years of returns. On a case-by-case basis, apply prudence when it is clear from information available that the nonfiler does not have or will not have the ability to pay some if not all of the potential tax liability over the 10 year statutory collection period (CSED).

The following are examples of situations where we would not pursue returns because the cost to secure the return would exceed anticipated revenue:

The following returns must be secured and should not be closed under the provisions of P-5-133:

"Net tax due" on employment tax returns is determined before the application of credits. See IRM 5.1.11.7.1(3), above for P-5-133 thresholds.

Inform taxpayers personally contacted on a potential refund return that a refund will only be issued if a return is filed within three years of the due date of the return. See IRM 25.6.1.5, Statute of Limitation Issues.

The Fraud Handbook, IRM 25.1 is the comprehensive guide for compliance functions. It covers the development of potential fraud issues, referrals for criminal fraud, and the duties and responsibilities for joint investigations. Use this guide as a reference for identifying and developing criminal investigation referrals.

Fraud may exist where a taxpayer willfully attempts to illegally underreport taxes, not pay taxes, or both. Willfulness means the individual acted deliberately with the specific intent of violating the law.

Refer and discuss issues of potential fraud with the Fraud Technical Advisor.

You are responsible for identifying potential fraud and referring that taxpayer to Criminal Investigation. The majority of criminal fraud cases will be established based on a taxpayer's:

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If a determination has been made that a return is required (see IRM 5.1.11.7.1), fraud is not involved (see IRM 5.1.11.7.2), and other collection enforcement activities are not appropriate (see IRM 5.1.11.7), then a nonfiler may be referred for enforced collection of a delinquent return.

Research MFT 32 prior to completing the referral, as the taxpayer may have been selected for inclusion in the Taxpayer Protection Program (TPP). See IRM 25.25.6.1.7 for an overview of the TPP. For returns identified with potential identity theft indications, the processing of the return is stopped and the tax return information is posted to MFT 32.

For Individual (MFT 30) nonfiler (Form 1040) referrals, evaluate factors such as type and source of income, amount of income, and the complexity of the case to make the appropriate and most efficient enforcement referral. Each referral process has limitations and specific requirements; however, always refer to the most efficient process when fraud is not involved.

Refer an Individual Master File (IMF) non-filed return (Form 1040) for enforcement to one of the following processes for preparation of a Substitute for Return (SFR). This table lists the IMF SFR processes in order of most efficient to least efficient and briefly describes limitations and restrictions of each process. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Form 720, Quarterly Federal Excise Tax Return, and Form 2290, Heavy Highway Vehicle Use Tax Return, may be prepared under the authority of IRC 6020(b) if a taxpayer fails or refuses to file. See IRM 5.1.11.7.7.

Do not prepare the returns under IRC 6020(b) if preparation will involve reviewing taxpayer records or will pose complex legal questions. Refer the taxpayer to Excise Operations Support (EOS) on Form 3449 and provide all facts relative to the preparation of the return.

Send Form 3449 via secure email to the EOS Outlook mailbox *SBSE Excise EOS.

If you encounter a responsible officer of an exempt organization who refuses to file a required exempt organization return, a referral should be sent using Form 5666, TE/GE Referral Information Report, to:

A summons does not have to be served prior to referring a case to TE/GE.

Attach an explanatory cover memo and include all information on the referral to assist TE/GE in preparation of the return.

Employee Plans, Form 5500 series (MFT 74) are no longer worked in Field Collection. If a Del Ret includes a Form 5500 delinquency and the plan number is 001–500, proceed as follows:

If a Del Ret is for any other Form 5500 series or where the plan number is 501 or higher, close the ICS Del Ret by selecting "No Return Secured" and submenu action "Not Liable for return (BMF-NMF)" which will post a TC 590 cc 050 to the module.

Employment Tax Program examiners determine when income of independent contractors or officers of corporations should be reported as wages subject to income tax and/or FICA. These examiners also determine the employer liability for employment taxes in a third-party payer arrangement (e.g., professional employer organization). The program involves the following taxes:

Refer a case to Specialty Tax, Employment Tax when it is determined during an investigation that a taxpayer may be treating employees as independent contractors or officers may be taking draws, loans, dividends, professional or administrative fees, etc., to avoid reporting taxable wages. Do not ask to see taxpayer records if there is a question about how a taxpayer is treating individuals performing services. Review and/or use of certain documents secured from the taxpayer in an employment tax delinquent return investigation may constitute an examination and require additional processing not used in Collection. Refer potential Employer/Employee relationship determinations on Form 3449 relating all the facts of the case and close the ICS Del Ret by selecting "Exam Referral."

Refer a case to the Indian Tribal Government (ITG) Classification Officer electronically through the Manager, Compliance Program Management (CPM) on Form 3449, Referral Report, when it is determined during an investigation that an ITG entity may be treating employees as independent contractors to avoid reporting taxable wages. Locate the Manager, CPM on this link https://organization.ds.irsnet.gov/sites/tege-cl/ITG/itg-org.pdf

IRM 4.23, Employment Tax, contains additional information for all functions pertaining to the administration of Employer/Employee classification issues.

The following returns may be prepared, signed and executed by revenue officers under the authority of IRC 6020(b):

Per Delegation Order 5–2 (Rev 2), effective October 21, 2013, GS-09 Revenue Officers, GS-09 Bankruptcy Specialists, and GS-11 Bankruptcy Advisors have the authority to prepare, sign and execute returns under IRC 6020(b).

Select "Return Secured" from the "Close Del Ret" menu to close the Del Ret module(s) on ICS when a return is secured.

See IRM 5.1.11.6 for specific details on types of returns secured.

Select "Unable to Locate" from the "Close Del Ret" menu to close the Del Ret when you are unable to locate a taxpayer.

Close the earliest Del Ret period for each MFT.

Group Manager approval is required.

ICS generates a TC 593 cc 057 to IDRS when approved.

Select "No Return Secured" from the "Close Del Ret" menu when a taxpayer is not required to file for a period.

ICS generates a TC 590 and closing code (cc) to satisfy a particular period; however, the requirement to file for subsequent periods remains open.

Select one of the following closing actions from the ICS submenu to generate the appropriate closing code:

For problems concerning multiple entities, see IRM 5.1.11.8.13 for additional guidance.

Select "No Return Secured/Final" from the "Close Del Ret" menu when the taxpayer is no longer required to file a return. The filing requirement for the MFT should be closed on the Master File, and any business activity indicated by the Selection Code, IRPTR, or SRFMI data addressed.

ICS generates a TC 591 to satisfy that period as well as closing the filing requirements on all subsequent periods for that MFT so be sure to select "No Return Secured/Final" on the earliest period on each MFT.

A TC 591 will stop future delinquency checks for that MFT.

Select a closing action from the ICS submenu to generate the appropriate closing code:

To prevent future delinquencies on those periods or MFTs not appearing on ICS at the time of closing the Del Ret do the following:

Select "Exam Referral" from the "Close Del Ret" menu when you refer a case to Examination, ETE, TE/GE, or the Memphis Campus.

Close the earliest Del Ret period for each MFT referred.

ICS generates a TC 595 cc 057 once the closure is verified.

Select "CI Referral (IMF Only)" from the "Close Del Ret" menu when a case is referred to Criminal Investigation.

ICS will generate a TC 596 cc 057 once the closure is verified.

Close the earliest Del Ret period for each MFT referred.

See IRM 5.1.11.7.2, for specific details on CI referrals.

If the return has been previously filed (allow 10 weeks from the date the return was filed for it to post), secure a signed copy of the return with proof of payment, if appropriate. A careful analysis of the facts should be made to determine for which entity the previously filed return was intended. Verify fact of filing using CFOL command codes as shown in IRM 5.1.11.2.3.1.

Select "Shelved" from the "Close Del Ret" menu only when prescribed in IRM instructions or by direction from Headquarters.

ICS generates a TC 598 cc 057 to IDRS once the closure is verified.

Select "Surveyed" from the "Close Del Ret" menu to generate a TC 597 on IDRS.

The appropriate closing actions for a TC 597 are as follows:

Select "Unable to Contact" from the "Close Del Ret" menu to close an IMF module when efforts to contact the taxpayer are unsuccessful and the determination is made not to pursue enforcement.

ICS will generate a TC 593 with cc 056 to IDRS.

Close the earliest Del Ret period for each MFT.

Select "Erroneously Created Mod" from the "Close Del Ret" menu when an ICS only Del Ret was opened and is no longer needed.

ICS will not generate a transaction code to IDRS.

Some Del Ret modules have credit balances after the module is closed. Handle the credit balance separately from the Del Ret closure based on whether you secure a return or not.

Carefully analyze all facts when working a Del Ret module when you find there has been a change in the entity to ensure that the case is closed properly and that all returns have been filed under the appropriate TIN(s).

Make changes to the taxpayer's address, location or ZIP code on ICS using the "Case Summary" screen and selecting the "Entity Detail Menu."

All other changes require Form 2363, Master File Entity Change, to make changes to the taxpayer’s entity. Some of these changes could include:

The following table will help you solve most types of entity problems:

Stamp both copies of Form 2290 Schedule 1 with the area office "received" stamp. Attach one copy of Schedule 1 to the original return. Return the other copy of Schedule 1 to the taxpayer if:

Field Collection employees will also stamp Schedule 1 of Form 2290 in the following situations: