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5.18.1  Automated Substitute for Return (ASFR) Program

Manual Transmittal

April 06, 2016

Purpose

(1) This transmits a revision of the IRM 5.18.1, Liability Determination, Automated Substitute for Return (ASFR) Program.

Background

IRM 5.18.1 was updated with input from CSCO and ASFR Operation employees.

Material Changes

(1) All SERP IRM 5.18.1 updates have been included in this revised version.

(2) Elimination of old sections and additions of new sections has resulted in tridoc renumbering.

(3) This revision reorganizes some content under the heading of systemic changes. Some sections were removed and the content is referenced as it is available in another IRM section.

(4) The following is a list of Subsection changes:

  • IRM Procedural Update (IPU) 15U0079 issued on 01-08-2015, IRM 5.18.1.10.2.3.13.2 to address a systemic programming issue with Status 108 for Joint Filers. Status 108 cannot be used until corrections are programmed. Users should use status 101. Remove first row of IF/THEN chart and correct second box to use status 101.

  • IPU 15U0374 issued on 02/24/2015, IRM 5.18.1.10.2.3.46 to address missing information on the Worker, Homeownership and Business Assistance Act of 2009 (WHBAA)in First Time Homebuyer Credit (FTHBC) procedures.

  • IPU 15U0374 issued on 02/24/2015, Corrected reference to the 30-Day letter from 2566 SC/CG to 2566 throughout the IRM.

  • IPU 15U0374 issued on 02/24/2015, IRM 5.18.1.10.2.2.3, Updated instructions for retention of undelivered 90-Day letters.

  • IPU 15U0374 issued on 02/24/2015, IRM 5.18.1.10.2.3.26, Updated references from Early Withdrawal Penalty to Early Withdrawal Tax for early distributions on Form 1099-R.

  • IPU 15U0374 issued on 02/24/2015, IRM 5.18.1.10.2.1.1.1 and IRM 5.18.1.10.2.3.12, updated to show ASFR Refund Hold returns should be worked within 45 days of the IRS received date.

  • IPU 15U0374 issued on 02/24/2015, Added IRM Subsection 5.18.1.7.11.35, Status 079. All following subsections were renumbered.

  • IPU 15U0374 issued on 02/24/2015, Added IRM Subsection 5.18.1.10.2.1.4.2, Referrals from Appeals, including instructions for previously barred refunds deemed to be timely.

  • IPU 15U0374 issued on 02/24/2015, IRM 5.18.1.10.2.3.13.3, Updated the link to decedent account procedures from 21.6.6.3.22.1 to 21.6.6.3.21.

  • IPU 15U0374 issued on 02/24/2015, IRM 5.18.1.10.2.3.16 (5), Updated to add instructions for manual computation of FTF and FTP on tax increase reconsiderations.

  • IPU 15U0374 issued on 02/24/2015, IRM 5.18.6.3, Updated to add clarification to notify taxpayers of actions taken.

  • IPU 15U0374 issued on 02/24/2015, IRM 5.18.1.7.11.55, Updated to clarify instructions for Status 108

  • IPU 15U0374 issued on 02/24/2015, IRM 5.18.1.10.2.3.13.2, Updated to add back in update to status 108, and clarify procedures for ASFR Recon Transcripts and resolution of credits on modules.

  • IPU 15U0374 issued on 02/24/2015, IRM 5.18.1.10.2.1, Updated to correct the OFP codes for working IDT modules.

  • Control 201501226 from SERP, IRM 5.18.1.10.2.3.19 (3) updated to correct the Note link from 20.1.3.2.1.7(5) to 20.1.3.2.1.7(7).

  • IPU 15U0944 issued on 6/1/2015, IRM 5.18.1.10.2.3.8, paragraph 2 updated to include instructions to update to the correct ASFR status and let ASFR input the agreed transactions.

  • IPU 15U0944 issued on 6/1/2015, IRM 5.18.1.7.11.22, updated to remove verbiage referring to special procedures.

  • IPU 15U0944 issued on 6/1/2015, IRM 5.18.1.7.11.5, updated to remove "technical "support language" " .

  • IPU 15U0944 issued on 6/1/2015, IRM 5.18.1.7.11.6, updated to remove "technical support language" .

  • IPU 15U0944 issued on 6/1/2015, IRM 5.18.1.10.2.3.13.6, updated to remove "technical support language" .

  • IPU 15U0944 issued on 6/1/2015, IRM 5.18.1.10.2.3 (3), Added paragraph 3 regarding credit resolution. Subsequent paragraph was renumbered.

  • IPU 15U0944 issued on 6/1/2015, IRM 5.18.1.10.2.3 (4) and IRM 5.18.1.10.2.1, Added instructions to identify and resolve ASFR issues on both TINs for a joint return.

  • IPU 15U0944 issued on 6/1/2015, IRM 5.18.1.10.2.3.13, Added instructions to resolve existing credits for closed modules in multiple sections of 13.

  • IPU 15U0944 issued on 6/1/2015, IRM 5.18.1.10.2.3.14, Added instruction to resolve existing credits for closed modules.

  • IPU 15U0944 issued on 6/1/2015, IRM 5.18.1.10.2.1.4.2, Added referral procedures and addresses for Appeals.

  • IPU 15U1037 issued 6/15/2015, IRM 5.18.1.7.11.21, .22, .24, .26, .28, .29, .30 - Instructions updated for TC 595, cc 088.

  • IPU 15U1037 issued 6/15/2015, IRM 5.18.1.7.11.55 - Removed paragraph 5 instructing to update the tax amount.

  • IPU 15U1814: IRM 5.18.1.10.1.1, IRM 5.18.1.7.11.37, and IRM 5.18.1.10.2.3.13.5 Identity Theft procedures were updated. Identity Theft case processing is now performed by the IDT units in Accounts Management. References to IRM 10.5.3 have been removed. Case work performed once identity theft has been verified takes place in Accounts Management. References to the new IDT guidelines in IRM 25.23 have been made where appropriate. ASFR will be responsible for requesting IDT verification for ASFR modules when a claim is made, prior to referring a case to the new IDT function.

  • IRM 5.18.1.2 was reorganized to provide a streamlined overview of ASFR processing. Some sections were removed. All subsequent sections were reorganized and renumbered. References to renumbered references were updated throughout the IRM.

  • Procedures in IRM 5.18.1.5.11 were added or updated for the following statuses: 037, 079, 081, 095, 331, 332, 771.

  • Some outdated failed conditions were removed from IRM 5.18.1.6.3.1.

  • Income descriptions were removed from IRM 5.18.1.8.2.3.20-42 were removed. The IRM now points to the appropriate IRM, 4.19.3.7.

  • Redundant content for ASFR lists was removed from IRM 5.18.1.8.2.3.55-58.

  • Instructions for working Reconsideration transcripts were updated in IRM 5.18.1.5.3.

  • Instruction on reviewing IRPTR data for EINs was added in IRM 5.18.1.6.7

  • The tolerance for FERDI modules was added to all appropriate sections.

  • IRM 5.18.1.6 was updated for consistency with IRM 4.19.15.47.10 and IRM 4.19.15.47.11 to allow use of CC TRDBV when a return cannot be located.

  • IRM 5.18.1.6.9.1 was updated with ASFR address upload information.

  • 5.18.1 6.10 includes use of Control-D letter copies.

  • The tables in IRM 5.18.1.6.11.5 were consolidated.

  • References to CC SUPOL were removed as it is obsolete.

  • IRM 5.18.1.8.2.3.14 Reconsideration timeliness was updated to 60 days from the IRS received date.

  • IRM 5.18.1.8.2.3.20.2 was added, referring to IRM 4.19.3.7 for income definitions.

  • IRM 5.18.1.8.2.3.48.1 was updated to include information about blocking series 98 and 99.

  • TETR instructions in IRM 5.18.1.8.2.3.45 were updated.

  • IRM 5.18.1.8.2.3.48.2 instructions for AMD-CLMS-DT and RET-PROC-DT were updated

  • IRM 5.18.1.8.2.3.48.6 transaction code fields were updated.

  • IRM 5.18.1.9.4.9 was updated in paragraph one to change the 2629C letter to 2320C letter.

  • IRM 5.18.1.11.2.3.11 was updated in paragraph 2)d) to change verbiage for letter 3238C and increase the number of days to respond from 10 days to 20 days.

  • IRM 5.18.1.11. 2.3. 19. 1 and IRM 5.18.1.8.2.3.19.2 titles were updated to better clarify the intent of the content.

  • Instructions for 474C letter in IRM sections 5.18.1.11.2.3.19.1, 5.18.1.11.2.3.19.2, and 5.18.1.11.2.3.43 were updated to include Publication 1 when issuing a 474C letter.

  • IRM 5.18.1.8.2.3.14 was updated with 2 new sections for ASFR Return routing and ASFR Reconsideration routing.

  • Added section 5.18.1.8.2 with routing procedures for ASFR responses. All subsequent sections were renumbered.

Effect on Other Documents

This IRM supersedes IRM 5.18.1 dated December 9, 2014. This IRM also incorporates IPUs 15U0374, 15U0944, 15U1037, and 15U1814.

Audience

All employees who work and management that administers the Automated Substitute for Return for both SB/SE and W&I Operating Divisions will use this IRM.

Effective Date

(04-06-2016)


Phyllis Brown
Director, Collection Inventory Delivery & Selection, Small Business/Self Employed

5.18.1.1  (04-06-2016)
Automated Substitute for Return (ASFR) Program Overview

  1. ASFR is a key compliance program within the Service, enforcing compliance for taxpayers who have not filed individual income tax returns, but owe a significant income tax liability. ASFR determines and assesses the correct tax liability by:

    • Securing valid income tax returns from taxpayers, or

    • Computing tax, penalties, and interest based on Information Reporting Program (IRP) information submitted by payers, combined with other internally available information.

  2. ASFR is a Nonfiler or Return Delinquency (RD) program. The ASFR system is an assessment tool used to systemically perform some liability calculations, issue ASFR notices, and input transactions to the Integrated Data Retrieval System (IDRS) via Standardized IDRS Access (SIA). Taxpayer Delinquency Investigation (TDI) inventory is created by Case Creation Nonfiler Identification Process (CCNIP), or manually in some situations. ASFR inventory is received directly from TDI or as referrals from the Automated Collection System (ACS) and Collection Field function (CFf).

  3. The ASFR program is consolidated in the Small Business/Self Employed (SBSE) Operating Division, at the Austin, Brookhaven, and Fresno campuses.

    • Austin and Fresno employees work ASFR in the Compliance Services Collection Operation (CSCO), while Brookhaven employees work ASFR in the ASFR Operation.

    • Employees work systemic error conditions identified by ASFR and taxpayer response to ASFR letters. Taxpayer responses include correspondence, returns, and calls to the toll-free ASFR call sites.

    • Closures include systemic and manual closures where the TDI has been closed. Reassignments of unresolved TDIs are not included in work plan closures.

    • The ASFR 200 MIS Report is systemically issued weekly and includes closure and reassignment volumes.

  4. ASFR prepares Substitutes for Return under the authority of Internal Revenue Code (IRC) 6020 (b). Statutory Notices of Deficiency are issued under authority of IRC 6212.

5.18.1.2  (04-06-2016)
ASFR Processing

  1. Most processing for ASFR cases is performed systemically by the stand alone ASFR system.

  2. ASFR sends notices to taxpayers, performs systemic calculations and comparisons, and sends transactions to be posted on the IDRS system.

  3. Employees work taxpayer responses and any modules on the ASFR system identified as needing perfection or review.

5.18.1.2.1  (04-06-2016)
ASFR System Overview

  1. ASFR is a stand-alone system residing on a SUN Microsystems platform at the Enterprise Computing Center (ECC). Systemic processing occurs weekly.

  2. The Collection Assignment Code (TSIGN) or field assignment for ASFR accounts is 8000.

    • TDIs are directly assigned to 8000 and loaded to ASFR when the MF status of the TDI moves to Status 03, and the selection code is an ASFR selection code.

    • Modules may also be referred from other functions if they meet ASFR criteria as defined in IRM 5.18.1.6.3.8, ASFR 423 List—TDA Assigned to Assignment Number 8000.

    • If an account is already assigned to 8000, a new TDI module will join it on ASFR.

5.18.1.2.2  (04-06-2016)
ASFR Criteria

  1. A module meets ASFR criteria if all the following conditions exist:

    • It is not older than five years prior to the current processing year, and

    • It has IRP with a proposed tax liability of ≡ ≡ ≡ ≡ or more; or IRP with a proposed tax liability of ≡ ≡ ≡ ≡ ≡ ≡ or more for Federal Employee/Retiree Delinquency Initiative (FERDI), and

    • IRP exists on CC IRPTRJ for the module, and

    • It has no associated balance due modules in a status greater than 12, including statuses 53 and 60, and

    • The total IRP documents for the module are 60 or less, and

    • There are no -V, -W, -L, -Z or , Z- freezes on the module or account, and

    • The selection code is not a CI, International, or IRS employee selection code.

    Note:

    If accounts are assigned to 8000 and they do not meet ASFR criteria, they will be systemically reassigned.

5.18.1.2.3  (04-06-2016)
ASFR Prioritization

  1. The manner in which ASFR prioritizes inventory changed in June 2012. The ASFR database will reflect all programming changes in FY 2012.

  2. ASFR inventory is now prioritized by Refund Hold (priority 0) and the number of weeks (1-6) since RH indicator was set. The weeks are called "buckets." The remaining priorities are by Tax Year with various categories for Net Tax Due which are called "buckets." The Priority Charts below outline Refund Hold and Non-Refund Hold prioritization.

    Refund Hold Priority Chart
      Bucket - Weeks since RH Indicator
    Priority 1 2 3 4 5 6
    0 Any Year            
    Non-Refund Hold Priority Chart
      Bucket - Net Tax Due
      1 2 3 4 5 6
    Net Tax Due Over 100K Net Tax Due $50,000 - $99,999 Net Tax Due Less than $50K
    Priority Multiple Module Single Module Multiple Module Single Module Multiple Module Single Module
    1 TY 2012            
    2 TY 2011            
    3 TY 2010            
    4 TY 2009            
    5 TY 2008            
    6 TY 2007            
  3. ASFR will issue Priority 0 first. Priority 1 is issued 2nd. Priority 2 will not be issued until all Priority 1 have been started. Priority 3 will not be issued until all of Priority 2 have been started. ASFR will work only 1 module per taxpayer. All related modules will be suspended pending resolution of the one started year. The "Hold" status for multiple modules where 1 module is started will be Status 734. See IRM 5.18.1.5.11.74, Status 734: Hold Status, for explanation of Status 734.

    Note:

    Toll free assistors must ensure full compliance is performed to let the taxpayers know there are other unfiled years that may be enforced at a later date.

  4. The ASFR screen "Priority" field will be displayed as Priority/Bucket. i.e.: 0/1 for RH/1 week since RH indicator; 1/2 for TY 2010 for single module with Net Tax due over $100K.

    Note:

    Since ASFR prioritization of inventory changed in June 2012, if there was already a started module when the new change was initiated, a more current TY could possibly be suspended due to the already started module. i.e.: TY 2009 was already started on ASFR when TY 2010 came on, TY 2010 would be suspended to the "Hold" status, Status 734. This scenario will happen most often when the new tax years are brought on after tax year changes.

5.18.1.2.4  (04-06-2016)
ASFR Selection Codes

  1. Direct assignment of TDIs occurs systemically on certain selection codes. See Document 6209 for a list of all select codes.

  2. Selection Codes are not part of new module validation. See IRM 5.18.1.6.1, Module Validation-Systemic Validation During New Module Processing.

5.18.1.2.5  (04-06-2016)
ASFR Assignment from 8000

  1. The Collection assignment code is changed from 8000 when all open TDIs are closed.

5.18.1.2.6  (04-06-2016)
Taxpayer Delinquency Investigation (TDI) Supplement Information

  1. When a module is sent to ASFR, Master File TDI supplements (IRP information) are also sent. TDI supplements include the Information Returns Program (IRP) data, taxpayer entity data, and, when available, information from the last return filed (LRF).

5.18.1.2.7  (04-06-2016)
Access to ASFR

  1. Only employees and managers assigned to the ASFR function, PAS or Quality Review Analysts, System Administrators, ASFR programmers and Headquarter analysts have access to the ASFR system. If access is requested by other employees, contact must be made with Headquarters.

  2. In order to obtain access, an on-line 5081 must be input and approved by management requesting access to the "ASFR-TCC" production system.

  3. Access to ASFR requires two separate ID and passwords. The first login ID and password gains the user access to the operating system. The second employee number and password gains the user access to the ASFR application.

  4. Currently ASFR has the following types of users:

    • ASFR users - ASFR users can update to allow all normal processing and can generate all prints.

    • Key ASFR users – Key Users can update to statuses that deviate from normal processing, and can generate all prints.

    • ASFR Managers – Managers have the same abilities as Key Users. They also can update the Setup menu, generate listings of any Status, and query other information through the managers menu.

    Access is granted based on the information in the Special Instruction Section of the Online Form 5081 add user request. If a non-key user is allowed "key" access, they should submit a "modify profile" Online Form 5081 request and state this in the instructions section.

  5. For more specific information on how to obtain access to ASFR, refer to the ASFR Help Desk Handbook. The Handbook is available electronically and is distributed to all ASFR functions.

5.18.1.2.8  (04-06-2016)
Payer Agent/High Dollar Coordinator

  1. Each campus must designate a Payer Agent/High Dollar coordinator(s). The coordinator(s) is responsible for ensuring that modules in Status 007, and 038 are worked expeditiously. See IRM 5.18.1.5.11.3, Status 007: Pre-30-Day Problem...Payer Agent List, and IRM 5.18.1.5.11.14, Status 038: Tax Assessments Over $100,000. The coordinator is also responsible for referring EINs to the National Payer Agent Coordinator for inclusion on the National Payer Agent File. See IRM 4.19.3, IMF Automated Underreporter Program.

  2. The Service Center Recognition/Image Processing System (SCRIPS) stores and retrieves digitized images of IRP documents and interfaces with the IDRS system. SCRIPS system errors have been identified where non-monetary information (social security number, or state identification number) was included in dollar amount fields. Users should use extreme care when reviewing income on Form 1099-MISC. Income amounts for Attorney Fees, Fishing Income, or Crop Insurance that exceed $10,000,000 may be incorrect.

5.18.1.2.9  (04-06-2016)
Internal Revenue Manual and Publication References

  1. ASFR function follows guidelines for the Taxpayer Advocate Program and correspondence guidelines. See IRM 13.1, Taxpayer Advocate Case Procedures, IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates, and IRM 21.3.3.4, Correspondence Procedures.

  2. The following additional IRMs are listed for convenience for in depth research required to resolve unusual technical issues not covered in the ASFR IRM. This research may be performed by the Lead per campus option. When reference to one of the related IRM is required for ASFR processing, the complete IRM reference will be stated in this IRM. This list is not all inclusive.

    • IRM 2.3, IDRS Terminal Responses

    • IRM 2.4, IDRS Terminal Input

    • IRM 4.19.10, Examination General Overview

    • IRM 4.19.3, IMF Automated Underreporter Program

    • IRM 5.19.1, Balance Due

    • IRM 5.19.2, Individual Master File (IMF) Return Delinquency

    • IRM 3.11.6, Data Processing (DP) Tax Adjustments

    • IRM 4.13, Audit Reconsiderations

    • IRM 25.6, Statute of Limitations

    • IRM 20.1, Penalty Handbook

    • IRM 20.2, Interest

    • IRM 25.12.1, Processing Refund Hold Program Inventory

    • IRM 11.3, Disclosure of Official Information

    • IRM 3.12, Error Resolution

    • IRM 3.17, Accounting and Data Control

    • IRM 21, Customer Account Services

    • Pub 17, Your Federal Income Tax (For Individuals)

    • Document 6209, IRS Processing Codes and Information

5.18.1.2.10  (04-06-2016)
ASFR System Security

  1. The ASFR system is designed to protect taxpayer data from unauthorized disclosure. All users are responsible for protecting taxpayer data and taxpayer privacy. Users should only access data needed to perform their duties. Any infraction should be reported to management. See IRM 11.3, Disclosure of Official Information, for disclosure guidelines. See IRM 10.5.1, Policy, Roles and Responsibilities for Privacy policy. Additionally, users must safeguard their password.

5.18.1.2.11  (04-06-2016)
Protection of Taxpayer Accounts

  1. Prevent unauthorized disclosure of taxpayer information by following the guidelines in IRM 11.3, Disclosure of Official Information.

  2. For additional information regarding unauthorized access (UNAX), refer to the Supplemental Guide for IRS' Awareness Briefing on Unauthorized Access-UNAX for additional information or contact the Office of the Privacy Advocate's, UNAX Program Office on 202-283-UNAX. The UNAX Program Office is located in Privacy, Governmental Liaison and Disclosure (PGLD) in the Office of Information Protection Projects. See IRM 10.5.5, IRS Unauthorized Access, Attempted Access or Inspection of Taxpayer Records (UNAX) Program Policy, Guidance and Requirements.

5.18.1.2.12  (04-06-2016)
Federal/State Exchange Program

  1. The Federal/State exchange program for ASFR is systemically performed. All disclosure related questions should be referred to the Disclosure Help Desk 1-866-591-0860.

5.18.1.2.13  (04-06-2016)
Identifying Tax Delinquency Accounts (TDAs) Assigned to ASFR (8000)

  1. Only stand alone TDI accounts can be systemically assigned to 8000. However, while in 8000, an associated module may move into balance due status (status greater than 12). Combo accounts are modules in balance due status with an associated TDI module. ASFR will reassign any unstarted Combo accounts. If a module becomes a Combo after it was started on ASFR, the ASFR module will continue until it is completed, and then be reassigned out of 8000. Any associated, unstarted module(s) will be placed into the appropriate status (714, 715, or 716). The following lists identify ASFR combo cases:

    • ASFR 423 List - IRM 5.18.1.6.3.8, ASFR 423 List: TDAs Assigned to 8000

    • ASFR 400 List - IRM 5.18.1.6.3.1, ASFR 400 List

5.18.1.3  (04-06-2016)
CP 36Cs and CP 36Zs

  1. A CP 36Z is generated and sent to Files when a TC 976 posts on a module where an ASFR Dummy return has posted. Files will pull the return, attach the CP 36Z to the front of the return and route the return to the ASFR Operation, Department or Team.

    Note:

    If CP 36Zs are not being received, open a GetServices ticket.

  2. A CP 36C is generated when a TC 976 posts on a module where an ASFR Dummy return has posted. The CP 36C prints at the campus based on the DLN of the TC 150. TC 150s posted with Philadelphia or Memphis DLNs are printed at Brookhaven. The CP 36C is routed to the ASFR Operation, Department or Team. The CP 36C is an information transcript that notifies the ASFR Operation that a return has been filed.

  3. When CP 36Cs are received, but the accompanying CP36Z with the return has not been received:

    1. Research AMS for possible CIS image and print.

    2. If no CIS image is available, research CC TRDBV for an electronic copy and print.

    3. If no electronic CC TRDBV copy is available, then input a CC ESTAB request for the TC 976. Follow with a special search request on Form 2275 if the return is not received within 2 weeks.

    4. If all research attempts have been exhausted and no return has been secured, contact the taxpayer and request a copy of the return, including WOEA. Update ASFR with Status 080. Continue the ASFR if no return is received after 45 days.

  4. If a CC TRDBV print is being used to process the return:

    • Notate the top of the return "ORIGINAL MISSING."

    • Attach a copy of the CC TRDBV print.

    • A return on CC TRDBV is considered a signed return.

5.18.1.4  (06-01-2015)
Account Maintenance (AM) Transcript

  1. AM transcripts generate when a module exists on IDRS and there is an unresolved condition on the module. ASFR will receive AM04 and AM09 transcripts on modules assigned to 8000.

  2. ASFR Recon transcripts will generate when there is a possible unresolved ASFR Reconsideration issue, when a taxpayer files jointly under the spouse’s SSN.

5.18.1.4.1  (11-03-2010)
AM04 Transcripts

  1. AM04 transcripts are generated when a -A freeze (TC 976) has not been released within 36 weeks. If received without the return, research AMS for possible CIS image, if the CIS is not available secure the return by both requesting the return from Files and/or contacting the taxpayer.

5.18.1.4.2  (04-06-2016)
AM09 Transcripts

  1. For ASFR cases, AM09 transcripts are generated when a credit exists on a module, and there is a TC 570 holding the credit. Either continue ASFR processing, release the credit or transfer the credit to the Excess Collection Account. See IRM 5.18.1.8.2.3.15.1, Refund Statute Expiration Date (RSED), for instructions on transferring credits to Excess Collection Account (XSF). In addition, if the credit cannot be offset or refunded and remains on the module, a TC 971 AC 296 must be input on IDRS using CC REQ77. However, if the credit/payment is offset, refunded, or moved to XSF, do not input a TC 971 AC 296.

    Note:

    This provides an audit trail indicating all credit(s) on the account module up to the input date of the TC 971 AC 296 have been researched and do not need to be researched again. It is not necessary to input a second TC 971 AC 296 if one is present and not additional actions should be taken.

5.18.1.4.3  (04-06-2016)
ASFR Recon Transcripts

  1. ASFR Recon transcripts generate when TC 594 cc 084 with DLN blocking series and serial numbers 88888 or 99999 posts to a module with a prior ASFR default assessment. The transcript generates one time, in the cycle the TC 594 cc 084 posts.

    1. Verify a valid joint return was filed.

    2. Ensure the ASFR default assessment was reversed. If the default assessment is not reversed, follow procedures in paragraph 2) below.

    3. If the ASFR default assessment is reversed, verify all transaction codes below are present and close the transcript “previous action”.

      Exception:

      DO NOT input a second TC 594 cc 084.

  2. If the default assessment is not reversed take the following actions:

    1. Zero out tax, penalties, credits, income, and SE amounts.

    2. Use credit reference 887 to reduce the exemption to zero.

    3. Input Hold Code 4 and credit reference 999 with 00 amount to indicate a secondary account return associated with a joint return.

    4. Notify taxpayer the case is resolved.

    5. Resolve any existing credits on the module per IRM 5.19.2.5.7, Credit Balance Overview, including input of TC 971 with AC 296 if appropriate. See IRM 5.19.2.5.7.4, Input of TC 971 AC 296 - Credit Research Completed.

5.18.1.5  (10-01-2005)
ASFR Systemic Processing and Calculations

  1. When ASFR processing is initiated on a module, the ASFR system will calculate the proposed tax assessment, and generate both the 30-day and 90-day letters. The system will also systemically request a default assessment when the taxpayer doesn't provide a sufficient response or valid tax return.

    Note:

    A return may be unprocessable for purposes of starting any period for payment of overpayment interest, but may still be valid.

5.18.1.5.1  (05-19-2009)
ASFR Dummy TC 150

  1. When an ASFR 30-Day Letter is generated, ASFR requests a TC 971 Action Code 141 post to the module. The TC 971 triggers a dummy return to then post. The dummy return posts as a TC 150 for $.00 to the module. An ASFR dummy return can be identified by the literal -SFR to the right of the TC 150 on TXMODA. Additionally, the tax class and document type of the DLN will be 210 with a Julian date of 887. The Julian date for Exam SFR is 888. An ASFR dummy return and an account collection assignment of 8000 signify the account belongs to ASFR and ASFR processing has begun. Since only one tax return can post to a tax module on IDRS, all returns filed by taxpayers subsequent to the issuance of the 30-Day Letter must be manually assessed and input to IDRS. See IRM 5.18.1.8.2.3.14, Returns, for instruction on processing filed returns.

  2. When a Dummy TC 150 does not post, use the menu Option 26 to recreate the dummy TC 150.

    Note:

    See IRM 5.18.1.5.11.60, Status 150: Recreate Dummy TC 150.

5.18.1.5.2  (10-01-2005)
Computing Taxable Income

  1. ASFR systemically computes taxable income on all modules.

  2. For questions about a particular income type, use Publication 17 or other IRS publications for research. Treatment of income can change from year to year.

5.18.1.5.3  (04-06-2016)
Computing Tax Due, Penalties and Interest

  1. ASFR systemically calculates tax, penalties and interest due on all proposed assessments. ASFR systemically calculates tax, penalties and interest to 28 days from the issuance date of the 30–day letter.

  2. If any changes are made to a module (e.g., deleting a case minor) carry change forward to case major so the correct tax is computed. See IRM 5.18.1.5.8, Deleting and Adding Case Minors, for information on updating case minors.

    Note:

    If changes are made after the 30-day letter has been issued, the module must be updated to reissue a new 30-day letter, or the proposed assessment will not be recalculated.

5.18.1.5.4  (04-06-2016)
Preparing and Processing ASFR Dummy Return

  1. ASFR generates a TC 971 AC 141 which triggers a dummy return to post to the module. No paper return exists. Do not attempt to request the DLN from files or try to associate anything with it.

  2. If a 30-day letter has been issued and no dummy TC 150 is posted, request one using Option 26 on ASFR. See IRM 5.18.1.5.1, ASFR Dummy TC 150.

5.18.1.5.5  (04-06-2016)
Letter 2566 (30-Day Letter)

  1. If a module passes TIF check 1 (See IRM 5.18.1.6.2.1, TIF Check 1 - Pre-30-Day Letter Check), the 30-Day Letter is systemically generated.

  2. The 30-Day Letter is mailed in address correction envelopes. When the 30 day letter is undeliverable the post office will return the letter with new address information when available.

    • If the taxpayer has a POA updated to ASFR, a duplicate 30-Day Letter is systemically addressed and mailed to the POA.

  3. The letter gives the taxpayer 30 days to respond. The system suspends the module for ≡ days from the date of the 30-Day Letter to allow taxpayer time to respond. ≡ ≡ ≡ ≡ ≡ suspense period is used for APO/FPO addresses.

    Note:

    Letter 2566R is sent when ASFR shows a Delinquent Return Refund Hold (RH) indicator. The letter includes verbiage for the RH program.

5.18.1.5.6  (04-06-2016)
Statutory Notice of Deficiency (ASFR 90-Day Letter)

  1. At the conclusion of 30-Day Letter suspense period, if there is no/insufficient response, ASFR requests TIF check 2 (See IRM 5.18.1.6.2.2, TIF Check 2 - Pre-90-Day Letter Check) to ensure that ASFR processing should proceed. If a module passes the TIF check 2, ASFR generates a Statutory Notice of Deficiency (90–Day Letter).

  2. The 90-Day Letter is fully automated.

  3. The letter is sent by certified mail.

  4. A Post Office stamped original Certified Mail List should be received from the National Print Site and maintained by the Campus for each weekly 90–day mail out. If the Certified List is not received, open a GetIT services ticket.

  5. Retire Certified Listings to the Federal Record Center after three years.

5.18.1.5.7  (04-06-2016)
Case Minor Review

  1. Review of case minors occurs when a module is in certain statuses (380 or 385), or when the taxpayer responds that the case minor is not valid or when a Payer Agent issue is discovered. See IRM 5.18.1.5.11.3, Status 007: Pre-30-Day Problem...Payer Agent List.

    Caution:

    Be aware of Payer/Agent information.

  2. Delete the case minor when the payee name line(s) is obviously not the taxpayer. For example, the name line(s) contains any of the following groups:

    • Government agencies — federal, state, or local

    • School — private, public, colleges, universities, etc.

    • Charitable and tax-exempt organizations — hospitals, churches, medical centers, etc.

    • Pension Profit Sharing Plan name line(s) with the words "trustee" , "trustee for" , etc.

  3. Consider the case minor valid (as belonging to the taxpayer) when ANY of the following conditions are present:

    1. The taxpayer's name is the only payee name on the case minor.

    2. The taxpayer's name appears in the first or the second name lines on the case minor.

    3. The payee name on the case minor implies a sole proprietorship type business, or the taxpayer's occupation as shown on Form 1040, Form 1040A, Form 1040EZ, or Schedule C or F is typically operated as a sole proprietorship or small business.

    4. The payee EIN on the case minor matches the EIN on the Schedule C or F.

  4. Delete case minors when:

    1. The payee entity contains the words "Estate of" .

    2. The taxpayer's name is preceded by the word "by" .

    3. The payee(s) name is obviously different from the tax account name(s) and does not contain obvious business words, even though the SSN matches.

    4. EIN 99–9999999, foreign income, is present and another EIN is present for the same payer. Case minor dollar amounts may vary due to currency exchange rates.

      Note:

      Delete the 99–9999999 case minors ONLY when both are present. Foreign Source case minors are treated the same as domestic source case minors.

  5. Consider case minors with the following conditions valid:

    1. The payer's name is garbled, missing, or incomplete.

    2. The payee's first and last name are in a different order on the case minor.

    3. The payee name line includes the taxpayer's title (MD, DDS, CPA, etc.).

    4. Only a name control is showing as the payee name and it matches the taxpayer's name.

    5. The payee second name line includes "c/o" (or a variation) followed by the taxpayer's name.

    6. The payee name line contains obvious business words and it is determined that the payee is the taxpayer.

    7. The income was reported under the payee’s EIN. Use CC INOLE to identify any EIN associated with the taxpayer. Use CC IRPTR with validity indicator 3 to research EIN income. See IRM 2.3.47, Command Codes INOLE, EOGEN, and SPARQ, and IRM 2.3.35.5.1, Validated Fields of Payee Request Screen, for additional command code instructions.

    8. The literal is "AMEND" and the document does not match the original documents.

    9. The payee name is followed by "and" or "or" without other names.

    10. The case minor payee name is a maiden name. If the payee's first name or initial on the case minor are the same as the tax account name, consider case minor valid.

    11. The word "rollover" is present on either the payee or payer side.

  6. Amended case minors are identified by the literal "AMEND" . ASFR will systemically use the amended minor. However, if ASFR cannot determine which to use, manual correction of the minor and major is needed.

  7. A blank in the amount field of an amended case minor represents $0 (zero).

  8. Delete original case minors if amended case minors match an original. The amended and original case minor must have:

    • The same payer name and/or EIN.

    • The same account number (if present).

    • The same type of income.

  9. Amended case minors may reflect incomplete information; neither amount literals nor $0 (zero dollar amounts) are displayed. If such a case minor is present, assume the payer/employer attempted to zero out an incorrect income amount previously reported.

  10. Add all case minors if the amended case minor(s) does not match an original, or if the amended case minor matches more than one of the other case minors.

  11. If all elements (SSN/EIN, name, amount, account number, income type, etc.) on any two case minors are identical:

    1. Delete one of the case minors.

  12. If all elements on any two case minors are identical except that one does not contain an account number, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  13. If the income amount of any two case minors is the same and the same sequence of numbers or characters can be identified in both account numbers, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  14. Do not consider case minors as duplicates when the account numbers are obviously different, even though all other elements are identical.

  15. Do not consider duplicate any two Form 1099–B or Form 1099–S case minors unless the sales date is the same.

  16. If the case minor indicates that the income is non-taxable, delete the minor.

  17. If Forms 1099–INT or DIV identifies in the payee or payer area on the minor as being income from the following sources, delete the minor.

    • Keogh (HR-10) or 403(b) accounts

    • SEP or IRA accounts

    • Municipal Bond funds

    • A Pension Plan or Profit Sharing Plan (including a 401(k) plan).

    • Capital Construction Fund (CCF) account

  18. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

5.18.1.5.8  (04-06-2016)
Deleting and Adding Case Minors

  1. Whenever a case minor is amended, deleted or added, the case major must also be updated to reflect the change to income.

    1. To delete or amend, access the Tax Module screen. Request Option 3. Scroll through the minors until the one to amend is found. Make necessary changes. Exit Option 3, and make the necessary changes to the case major. See IRM 5.18.1.5.13, ASFR Tax Module Screen Menu Options.

    2. To add a minor, go to the ASFR Main Menu, and access Option 12. Fill in the screen, exit, and update the case major for the module. The Integrated Automation Technologies (IAT) ASFR IRP Loading tool can also be used to add case major and minor data.

  2. Do the following:

    If the adding or deleting of a case minor(s) results in net tax due of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , and Then
    No 30–day letter has been sent, Update to Status 071. See IRM 5.18.1.5.11.29, Terminate ASFR, TC 590 CC 088 Not Liable
    A 30–day letter has been sent,
    • On IDRS, input a TC 590 CC 88, TC 290 for $.00 and TC 887 for .01-, TC 999 for $.00, and TC 971 AC 001. See IRM 5.18.1.8.1 for DLN explanation. Resolve any credits.

    • Update ASFR to Status 101.

    • Send taxpayer correspondex letter notifying them that the case is resolved.

    A 90–day letter has been sent,
    • On IDRS, input a TC 590 CC 88, TC 290 for $.00 and TC 887 for .01- ,TC 495, TC 999 for $.00, and TC 971 AC 001. Resolve any credits.

    • Updated ASFR to Status 101.

    • Send taxpayer correspondex letter notifying them that the case is resolved.

    If the adding or deleting of the case minor(s) results in net tax due of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Then
    No 30–day letter has been sent, Update to Status 031.
    A 30–day letter has been sent, Re-issue 30-Day Letter. Update to Status 032.
    • Advise TP that if they do not file by the 90-day letter date that they will be charged at the higher rate.

    Note:

    Update to Status 032 requires manual review of all other failed conditions. If other failed conditions are found, correct the condition or close the module by updating to the appropriate closure status.

    Notify the taxpayer that a revised 30–day letter is being issued.
    A 90–day letter has been sent, Advise the TP to file a correct return and advise the TP that the period for petitioning cannot and has not been extended. Do not update Status out of Status 090.

5.18.1.5.9  (05-05-2014)
ASFR Address Verification

  1. Addresses on ASFR are systemically uploaded and refreshed from IDRS weekly.

5.18.1.5.9.1  (04-06-2016)
Address Uploads

  1. The IDRS and Master File address is updated when address information becomes available from a tax return processed, a notification of change of address from the taxpayer or by the National Change of Address (NCOA).

    Note:

    The National Change of Address (NCOA) is a United States Postal Service (USPS) database. The IRS accesses the NCOA database to update taxpayer records maintained in the automated Masterfile for the purpose of updating the IRS’s mailing list. The IRS receives a copy of the entire database.

  2. If the MF and IDRS addresses are updated, ASFR will receive the new entity information and update the entity on ASFR. The literal "Address Update per SIA refresh" and a Status reference code 990 will appear on the ASFR module screen. ASFR receives updated address via the following:

    • TIF check for 30-Day and 90-Day letters

    • Cases sent out for Standardized IDRS Access (SIA) research

    • Returned Address Research (ADR) research

5.18.1.5.9.2  (04-06-2016)
Address Research through ADR

  1. If an ASFR 30–day letter is returned undeliverable, research is performed through ADR. There is no manual undeliverable research performed.

    Caution:

    Only update modules in Status 030 to Status 040. Do not update modules to Status 040 that are in a response Status or Status 090.

    Note:

    Do not update modules with a Refund Hold indicator to status 040. Continue the ASFR.

  2. During weekly processing, ADR processes modules from ASFR undeliverable Statuses 340, and 040, for address research. The modules are systemically moved from Status 340 and 040 to Status 342 to indicate ADR research started. See IRM 5.18.1.5.11.63, Status 340: Pre-30-Day Problem, U Coded TDI Notice.

    Caution:

    Do not move modules out of Status 342 unless a return is received.

  3. When the modules come back from ADR, ASFR updates the status to indicate what took place.

    If Then
    ADR secures a new address or a new address is updated through SIA refresh, see IRM 5.18.1.5.9, ASFR Address Verification
    • The module is moved to Status 031.

    • The ASFR address in the entity record is updated.

      Note:

      ADR updates the MF address.

    No new address is found and no 30–Day Letter has been sent, The module is moved to Status 031.
    No new address is found and a 30–Day Letter has been sent, The module is moved to Status 030 with an expired follow-up date.

    Note:

    Do not request ADR research again when less than 150 days have passed since the prior ADR research or if the module is in 90-day Status.

5.18.1.5.10  (04-06-2016)
ASFR Archive

  1. Effective June 21, 2005, an ASFR Archive database was established. The database stores all ASFR generated documentation on ASFR closed modules where a 30-day letter has been generated, and modules where the taxpayer has petitioned the Tax Court, Status 074 modules.

  2. Subsequent to June 21, 2005, paper files on ASFR systemic assessments (defaults) are not available, and all ASFR generated documentation is stored on the ASFR archive database. Additionally, all ASFR generated documentation on manual assessments subsequent to June 21, 2005, is stored on the ASFR archive database, and is not associated with the manual assessments.

  3. The Archive database is accessed through ASFR MENU. Choose the Archive database option. Documentation can then be queried and printed by TIN or TIN/TAX YEAR.

  4. All requests for ASFR documentation on assessments subsequent to June 21, 2005 are worked by the ASFR functions as access to ASFR is required to retrieve the information. ASFR letter copies must be obtained using the Control-D system by employees with specialized access to that system. ASFR was mandated to use the Control-D system to archive letters beginning in April, 2009.

5.18.1.5.11  (10-01-2005)
ASFR Statuses

  1. All ASFR inventory exists in statuses. Statuses define where the module is in the ASFR process, and if the module is workable, or non-workable.

  2. ASFR uses status codes as an audit trail to document that each legal requirement is met before assessment. Statuses are also used to identify failed conditions on modules so that the appropriate actions can be taken to resolve any issues.

  3. Statuses also indicate that a specific letter was sent to the taxpayer and that a return or correspondence was received.

  4. HQ analysts will create new Status codes to meet new situations, and delete previously used Status codes when program enhancements and/or IRM changes occur.

5.18.1.5.11.1  (10-01-2005)
Statuses 000 and 001: Internal Use Only ASFR System Statuses

  1. ASFR uses these internal Statuses during weekly new module processing, when new modules are downloaded onto the system. Status 000 and Status 001 should never appear on ASFR screen and is not shown on ASFR–211 REPORT—Status CODES in USE. See IRM 5.18.1.7.6, ASFR 211 Report: Status Codes In Use.

  2. If Status 000 or Status 001 appears on any ASFR module, notify the team leader and system administrator to immediately shut down the system to research and correct the problem.

5.18.1.5.11.2  (10-01-2005)
Status 005: Internal Use Only ASFR System Status

  1. ASFR uses Status 005 to systemically correct joint name line modules. ASFR retains the first name to the left of the ampersand (&) and deletes the secondary name to the right of the ampersand on the TDI record screen.

  2. ASFR only uses filing statuses of single or married filing separately when preparing a proposed assessment for the 30-Day Letter. Status 005 is not shown on ASFR–211 REPORT—Status CODES IN USE. See IRM 5.18.1.7.6, ASFR 211 Report: Status Codes In Use.

5.18.1.5.11.3  (04-06-2016)
Status 007: Pre-30-Day Problem…Payer Agent List

  1. The AUR function maintains the Payer Agent List. The Payer Agent List is a list of businesses by EIN who reported income and there are discrepancies in what was reported. ASFR runs a file of all the EINs on the Payer Agent List weekly against all the case minors on the ASFR database. If the EIN and the document code on the Payer Agent list matches the EIN and the document code on a case minor on a module and the module is in a pre 30-Day letter Status, ASFR systemically updates the module to Status 007.

  2. Modules in Status 007 must be reviewed and updated weekly. Access the module on ASFR and review the Comments. Comments contains information on which case minors were filed by businesses on the Payer Agent List.

    If Then
    Four or less matches are found all the case minor sequence number will appear in Comments.
    More than four are found the comments will state "MULTI PAYER AGENT-MANUAL SEARCH, and manual review of all case minors is required."
  3. Access the ASFR Payer Agent file by accessing Option 10 on the ASFR menu or by accessing Option 15 on the Tax Module screen. See IRM 5.18.1.5.13, ASFR Tax Module Screen Menu Options.

  4. Determine if the case minor should be amended, eliminated entirely, or left untouched based on the Payer Agent List information.

    Caution:

    SCRIPS system errors have been identified where non-monetary information (social security number, or state identification number) was included in dollar amount fields. Users should use extreme care when reviewing income on Form 1099-MISC. Income amounts for Attorney Fees, Fishing Income, or Crop Insurance that exceed $10,000,000 may be incorrect.

  5. If eliminating the case minor, code the non-add field on the case minor with a "B."

  6. Correct the case major based on all changes made to the case minor. For example, if interest income is being deleted based on Payer Agent information, then that amount of interest income must be deleted from the interest field on the major record. See IRM 5.18.1.5.8, Deleting and Adding Case Minors.

    If Then
    The change results in net tax due of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more,
    1. Update module to Status 031.

    2. Add a note in the remarks field on the bottom of the case minor record to indicate the action taken and why.

    3. On the ASFR module screen, clear the COMMENTS field .

    The change results in net tax due of less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. Update module to Status 071.

    Caution:

    The case major record does NOT systemically update when a change is made to a minor record. Always correct the case major manually.

  7. To add the case minor to the ASFR Payer Agent file, use the ADD option listed on the ASFR Payer Agent menu.

  8. Modules placed into Status 007 have a 7 day follow-up and will appear on the ASFR-424 LIST NO ACTIVITY. Work modules in Status 007 weekly.

5.18.1.5.11.4  (04-06-2016)
Status 010: Pre-30-Day Problem (CI/Exam Review Needed)

  1. Status 010 indicates that CI/Exam review is required.

  2. Modules are placed in Status 010 during weekly new module validation. See IRM 5.18.1.6.1, Module Validation - Systemic Validation During New Module Processing, when at least one of following conditions is met:

    • Primary TDI code of "T" for Examination

    • Primary TDI code of "U" for Criminal Investigation

    • TDI Case Code of 3949 from Criminal Investigation request

    • TDI Case Code of 914 intelligence freeze

    • TDI Case Code of 5346 from Examination request

  3. ASFR processing is not terminated on the Criminal Investigation and Examination modules. Research modules on IDRS for freeze conditions, fact of filing, or significant TSIGN(s). If necessary, forward ASFR transcripts on Form 3210, Document Transmittal, to Examination or Criminal Investigation for review.

    If Then
    Module selected by Criminal Investigation Update to Status 063. See IRM 5.18.1.5.11.22, Status 063: Terminate ASFR, TC 596 CC 088 Selected by CI.
    Module is selected by Examination Update to Status 064. See IRM 5.18.1.5.11.23, Status 064: Terminate ASFR, TC 595 CC 088.
    Criminal Investigation or Examination advises to continue normal processing Update the module to Status 032, if the module was previously in Status 039 and when no 30-Day Letter was issued.

    Note:

    Update to Status 032 requires manual review of all other failed conditions. If other failed conditions are found, correct the condition or close the module by updating to the appropriate closure status

    . Update the module to 091, if the module was previously in Status 099 and when a 30-Day Letter was issued, but a 90-day has not been issued. Update the module to Status 104, if the module was in Status 097 and a default should be input. Input Comments that CI or Examination advises to continue ASFR processing.
  4. These modules appear on the ASFR-424 LIST-NO ACTIVITY if no action takes place within 45 days. See IRM 5.18.1.6.3.9, ASFR 424 List: No Activity List.

5.18.1.5.11.5  (04-06-2016)
Status 011: Centralized Insolvency Office (CIO)

  1. Status 011 indicates that Centralized Insolvency (-V Freeze) or Advisory Group (-W Freeze) is working the bankruptcy issue.

  2. Status 011 modules meet at least one of the following:

    • Bankruptcy indicator is 1 on TDI record(s)

    • Primary TDI code is "Q" bankruptcy

      Note:

      Bankruptcy conditions may also be identified during the TIF checks. Reversal of the TC 520 does not always indicate the module is released from protection of the Bankruptcy Court which prohibits further assessment for the tax years of the bankruptcy.

  3. Update modules with –V Freeze to Status 717 to close the module. DO NOT UPDATE –V FREEZE TO STATUS 011. Insolvency modules are identified by an unreversed TC 520 on the module. An entity freeze code is created at MF by the TC 520 and shows on IDRS as a —V or —W freeze. See Document 6209, Chapter 8 for more information on Freeze codes. See IRM 21.5.6.4.46, -V Freeze, for additional instruction on –V Freeze and IRM 21.5.6.4.46, -W Freeze, for –W Freeze.

  4. Research IDRS.

    If Then
    There is no indication of bankruptcy on IDRS (no TC 520 or TC 521 on TXMOD) Update the module to Status 032, if the module was previously in Status 039 and when no 30-Day Letter was issued.

    Note:

    Update to Status 032 requires manual review of all other failed conditions. If other failed conditions are found, correct the condition or close the module by updating to the appropriate closure status.

    Update the module to 091, if the module was previously in Status 099 and when a 30-Day Letter was issued, but a 90-day has not been issued. Update the module to Status 104, if the module was in Status 097 and a default should be input.
    There is a TC 520 or TC 521 Contact the appropriate SB/SE Area Office CIO or Advisory Group (formerly Technical Support Function) for disposition of the case. Verify the Document Locator Number (DLN) of the TC 520 before contacting either CIO or Advisory.
    CIO or Advisory advises termination of the ASFR module
    • Transfer the case to CIO or Advisory.

    • Update ASFR module to Status 063.

    • Prepare Form 3210 and forward ASFR case to the appropriate Technical Support Function office.

    TC 520 has posted and ASFR has issued a 90-Day Letter,
    • Contact Centralized Insolvency ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for – W Freeze modules.

    • No default assessment can be made until 60 days after a TC 521 has posted.

    • Modules that were in Status 090 and a TC 520 posts to IDRS, will fail to Status 097. Do not update modules from Status 097 to Status 104, until 60 days after a TC 521 posts.

    • Update module to Status 080, when the assessment cannot be input. Update the tax Module screen with comments that there is an open TC 520, and the default cannot be input.

    No response is received from CIO or Advisory request for advice within 30 days
    • Refer the case to campus revenue officer or designee for Territory Office contact regarding module disposition.

    • If CIO or Advisory are still not responsive, ASFR management should contact the respective area.

    Insolvency identifies a case that has been assessed by ASFR in violation of the automatic stay they will contact ASFR to make an adjustment. The ASFR Bankruptcy Coordinator will reverse the assessment and establish an IDRS control base for continued monitoring
    1. When the campus is contacted to abate the default, then the coordinator will abate the default and monitor the case until the TC 521 posts.

    2. The ASFR Bankruptcy Coordinator will address the TC 521 using the below guidelines.

    Guidelines for TC 521:

    • An assessment by default cannot be input without Insolvency approval. If Insolvency approves of the assessment by default then the ASFR Bankruptcy Coordinator will document the approval on the case history sheet and on AMS.

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

  5. Request to rescind a 90-Day Letter by CIO or Advisory must be in writing and must be signed by delegated Campus authority.

5.18.1.5.11.6  (06-01-2015)
Status 012: Advisory Group -W Freeze

  1. Status 012 indicates that contact has been made with Centralized Insolvency Office (CIO) or Advisory and they require additional time to review the module – W Freeze Advisory, -V Freeze CIO.

  2. Manually update modules to Status 012 only after initial contact is made with CIO or the Advisory Group in the Territory Office. This is a suspense Status indicating that additional CIO or Advisory Group field research is needed. See IRM 21.5.6.4.46 , -W Freeze, for additional instruction on –W Freeze.

  3. Modules in this Status are suspended for 60 days before they appear on ASFR-424 LIST-NO ACTIVITY. See IRM 5.18.1.6.3.9, ASFR 424 LIST: NO ACTIVITY LIST.

  4. Status 012 cases appearing on the ASFR 424 LIST-NO ACTIVITY with –V freeze are to be removed from ASFR without further contact with CIO by moving the case to Status 717.

5.18.1.5.11.7  (10-01-2005)
Status 015: Ineligible ASFR (Await Closure of Active ASFR Module)

  1. Status 015 indicates that the module does not meet ASFR criteria.

  2. Modules are placed in Status 015 systemically during new module processing (weekly) when they have failed the module validation and there is another module(s) on the same taxpayer that is progressing through the ASFR system. Status 015 has a 120 day follow-up.

  3. At the conclusion of the 120 day suspense period, the system will examine the entity again to determine if the related module is still present or not. If the other module is still OPEN on ASFR, the system will move the Status 015 module into Status 016.

  4. When the valid module(s) is no longer present or is in a satisfied (closed) ASFR Status, the Status 015 module will systemically move to Status 762 for reassignment of the account from 8000.

5.18.1.5.11.8  (10-01-2005)
Status 016: Ineligible ASFR (Additional 60-Day Extension From Status 015)

  1. Status 016 is an extension of Status 015.

  2. Status 016 gives an additional 60-day extension for modules in Status 015. These modules are systemically monitored for closure of the valid module.

  3. When the valid module(s) is no longer present or is in a satisfied (closed) ASFR Status, the Status 016 module will systemically move to Status 762 for reassignment of the account from 8000.

5.18.1.5.11.9  (04-06-2016)
Status 030: 30-Day Letter Created (30-Day Mail out)

  1. Status 030 indicates that a 30-Day Letter has been generated.

  2. Modules are systemically moved into Status 030 (from Status 032 and Status 035) after passing TIF check 1. See IRM 5.18.1.6.1, Module Validation - Systemic Validation During New Module Processing.

    Note:

    The Status 030 date is not the date of the 30-Day Letter. Access the Audit screen, Option 04 on ASFR to determine the mail out date. See IRM 5.18.1.5.15, ASFR Follow-up or Action Dates.

5.18.1.5.11.9.1  (04-06-2016)
ASFR 30-Day Letter

  1. The ASFR 30-Day Letter is automated. The 30-Day Letter consists of:

    • 30-Day Letter 2566

    • Tax Calculation Summary

    • Summary of the Income Sources

    • Explanation of Penalties and Interest

    • Taxpayer Response Form

    • Publication 1

    • Publications 5 and 594

    • Notice 609

    • Cover Sheet

    • Return envelope

      Note:

      If there is allocated tips income, Form 2504, Agreement to Assessment and Collection of Additional Tax and Acceptance of Over-assessment, is added to the Letter.

5.18.1.5.11.10  (04-06-2016)
Status 031: Pre-30-Day IDRS

  1. Status 031 indicates that the module is workable and unstarted. All unstarted Status 031 inventory is assigned to a campus because it is associated with another module or in Corporate CORP Inventory on ASFR. When a site requests starts, the corporate modules become assigned to that site. If an employee manually starts a case, it will be assigned to the employee’s campus.

  2. The ASFR system systemically places modules in Status 031 when new modules have passed new module validation. See IRM 5.18.1.6.1, Module Validation - Systemic Validation During New Module Processing.

  3. Modules are manually moved into this status when an employee corrects/perfects a module or completes needed research on the new module (e.g., UD research, Exam review etc.) and they have determined that the module is now ready for TIF check 1. See IRM 5.18.1.6.2.1, TIF Check 1 - Pre-30-Day Letter Check.

  4. Modules remain in Status 031, in priority order, until requested for IDRS research, TIF check 1, prior to issuing the 30-Day Letter.

  5. Headquarters uses the Setup menu to indicate the volume of modules selected for research TIF check 1 (preparing the modules for the 30-Day Letter action). See IRM 5.18.1.6.2.1, TIF Check 1 - Pre-30-Day Letter Check. Modules will be selected based on ASFR prioritization.

  6. ASFR Prioritization is systemic. See IRM 5.18.1.2.3, ASFR Prioritization.

  7. During the next week's processing, the modules move from Status 031 into:

    • Status 035, Status 030, passed TIF check 1, 30-Day Letter created

    • Status 032, Status 030, passed TIF check 1, 30-Day Letter created

    • Status 039 - failed TIF check 1, research and resolve manually

    Note:

    ASFR will start all years for Refund Hold accounts. When accounts are not Refund Hold, ASFR will start the most current year available and suspend all associated modules.

5.18.1.5.11.11  (10-01-2005)
Status 032: PASSES IDRS CHECK, Issue 30-Day Letter

  1. Status 032 indicates that the module passed TIF check 1. See IRM 5.18.1.6.2.1, TIF Check 1 - Pre-30-Day Letter Check.

  2. Modules are systemically moved to Status 032 when they pass TIF check 1. The modules will move to Status 030 the same week it moves to Status 032.

    Note:

    Status 032 should not appear on the ASFR 201 Report.

  3. The volume of 30-Day Letters requested will be systemically determined based on the number of modules that passed TIF check 1.

5.18.1.5.11.12  (10-01-2005)
Status 035: Cancel Previous 30-Day Letter, Reissue

  1. Status 035 indicates that a 30-Day Letter has been requested.

  2. This Status is generated by an ASFR program, when an entire batch of 30-day letters needs to be re-created. This happens when:

    1. an erroneous mail out date was entered on the reports, or

    2. the file was not received or processed timely by the National Print Site.

  3. This status is also used by employees to bypass TIF check 1 and generate a 30-Day Letter.

    Note:

    CAUTION must be used when updating to 035, as all validation performed by the TIF check 1 must be manually performed.

  4. If modules were in Status 030, the follow-up date will be RESET.

5.18.1.5.11.13  (04-06-2016)
Status 037: Questionable IRP Income Over $1,000,000

  1. Unstarted modules with potential $1 million or more tax assessments are systemically moved into Status 037 weekly. Large income amounts may result when payers place incorrect information, such as state identification numbers, in the wrong fields for Form 1099-MISC.

  2. Follow instructions in IRM 5.18.1.5.11.14, Status 038: Tax Assessments over $100,000, to resolve these issues.

5.18.1.5.11.14  (04-06-2016)
Status 038: Tax Assessments over $100,000

  1. Unstarted modules with potential $100K or more tax assessments, exclusive of tax based on stock and bonds gross sales, are systemically moved into Status 038 weekly. ASFR also generates the 430 List of all modules moved to Status 038. The 430 List must be worked weekly by each site. See IRM 5.18.1.6.3.11, ASFR 430 List: Over $100K Assessments.

  2. Review of potential over $100K assessments will be made to ensure accurate default assessments for the ASFR program.

    Note:

    After review of modules, print an Administrative File for potential assessments of over $1 Million and forward to your local coordinator.

  3. Determine if Payer contact is required: Review the case minors on ASFR and the information on IRPTR to ensure accuracy. If there is a case minor that is apparently erroneous, i.e. obvious decimal point error, or obvious Payer Agent transmission error i.e.: Payer EIN transmitted as amount of income, research the Payer Agent List. If the EIN is on the Payer Agent List, follow the Status 007 procedures in IRM 5.18.1.5.11.3, Status 007: Pre-30-Day Problem…Payer Agent List. If the EIN is not on the Payer Agent List, contact payer for verification of income. If the payer verifies the income or there is no response from the payer within 30 days from the date the request was sent, update module to Status 031. If the payer states that there is an error on the case minor, follow Status 007 procedures to correct the module. Input comments on ASFR that Status 038 research was completed. You may also compare prior year information, if available, and look for inconsistency between tax years. If prior year income was significantly lower and there appears no justification for the spike, contact employer to ensure documents are correct. Follow the chart below for examples of possible incorrect payer data.

    Caution:

    SCRIPS system errors have been identified where non-monetary information (social security number, or state identification number) was included in dollar amount fields. Users should use extreme care when reviewing income on Form 1099-MISC. Income amounts for Attorney Fees, Fishing Income, or Crop Insurance that exceed $10,000,000 may be incorrect.

    IF THEN
    Last filed year had income less than $100,000 Contact employer to determine if delinquency year wages are correct
    Delinquency year wages were received from a restaurant and are less than $10,000, Allocated tips are over $1 million, contact employer
    Taxpayer is over 65 and prior year income was less than $100,000 Contact employer if wages are now over $1 million
    No prior return filing information is available Contact employer to verify data on delinquent year

    Note:

    The above chart depicts examples only, dollar amounts may vary.

    Note:

    Prior to contacting payers to verify information reported for a specific taxpayer - IRC 7602 requires Third Party Contact notification requirements have been met, see IRM 5.19.2.5.6.2, Third Party Contact and Responses. Issuance of CP 518 includes advance notification of possible Third Party Contact, meeting requirements for contact in addition to generating a TC 971 AC 611.

    Note:

    Input a comment on ASFR indicating the action taken. i.e.: Notate if the employer was contacted, Q-note sent, annotations should indicate case minor information.

    1. Verifying/Conducting Third Party Contact:

      IF THEN
      CP 518 was issued on TY in question within the past 12 months
      1. Contact payer to verify reported income.

      2. Prepare and submit Form 12175 per IRM 5.19.2.5.6.2, Third Party Contact and Responses.

      CP 518 was not issued on TY in question within the past 12 months
      1. Issue letter 3232C Third Party Contact notification, input TC 971 AC 611 2

      2. Ten days after letter mail-out date, contact payer to verify reported income.

      3. Prepare and submit Form 12175 per IRM 5.18.1.8.2.3.11, Third Party Contact.

    2. If it is determined the potential $100K assessment is due to Payer Agent data follow IRM 5.18.1.5.11.3, Status 007: Pre-30-Day Problem...Payer Agent List.

      Note:

      Appropriate movement out of 038 is restricted to "manager" and "key tech" access.

    3. If it is determined the proposed assessment is accurate move case to Status 032 if appropriate to continue ASFR processing.

    4. If there are no apparent issues with the ASFR case minors, then do the following:

      IF THEN
      There is a Form W-2, or a Form 1099 of any kind with income over $1,000,000 and it is apparent that the income is accurate, i.e. gambling winnings from a casino, NEC paid to a doctor from an insurance company, etc., Update module to Status 031. Input comments on ASFR that Status 038 research was completed.
      There is a W-2, or a 1099 of any kind with income over $1,000,000 and it is not apparent that the income is accurate, i.e. gambling winnings from a casino, NEC paid to a doctor from an insurance company, etc., Research prior year IRP.
      1. If prior year IRP shows income within 50% of the income shown as ASFR total income (Multiply the prior year income by 1.50. If the ASFR income is less than the result, consider income reported accurately.), update module to Status 031. Input comments on ASFR that Status 038 research was completed.

      2. If prior year IRP shows income less than 50% of the income shown as ASFR total income, (Multiple the prior year income by 1.50. If the ASFR income is greater than the result, payer contact is required.), contact payer who reported income over $1,000,000 to verify income. If the payer verifies the income or there is no response from the payer within 30 days from the date the request was sent, update module to Status 031. Input comments on ASFR that Status 038 research was completed. If the payer states that there is an error on the case minor, follow Status 007 procedures to correct the module. See IRM 5.18.1.5.11.3, Status 007: Pre 30-Day Problem...Payer Agent List.

      3. If there is no prior year IRP available, contact payer who reported income over $1,000,000. If the payer verifies the income or there is no response from the payer within 30 days from the date the request was sent, update module to Status 031. Input comments on ASFR that Status 038 research was completed. If the payer states that there is an error on the case minor, follow Status 007 procedures in IRM 5.18.1.5.11.3, Status 007: Pre 30-Day Problem...Payer Agent List, to correct the module.

      There is no one W-2, or a 1099 of any kind with income over $1,000,000 Research prior year IRP.
      1. If prior year IRP shows income from the same payer within 50% of the income shown in ASFR year (Multiply the prior year case minor income by 1.50. If the ASFR same payer case minor income is less than the result, consider income reported accurately.), update module to Status 031. Input comments on ASFR that Status 038 research was completed.

      2. If prior year IRP shows income from the same payer less than 50% of the income shown on the ASFR case minor, (Multiply the prior year case minor by 1.50. If the ASFR case minor income is greater than the result, payer contact is required.), contact payer who reported the largest amount of the total income to verify income. If the payer verifies the income or there is no response from the payer within 30 days from the date the request was sent, update module to Status 031. Input comments on ASFR that Status 038 research was completed. If the payer states that there is an error on the case minor, follow Status 007 procedures in IRM 5.18.1.5.11.3, Status 007: Pre 30-Day Problem...Payer Agent List, to correct the module.

      3. If there is no prior year IRP available, update to Status 031. Input comments on ASFR that Status 038 research was completed.

      Note:

      Third party contact procedures must be followed prior to contacting the payer. See IRM 5.18.1.8.2.3.11, Third Party Contact.

5.18.1.5.11.15  (04-06-2016)
Status 039: FAILED IDRS Analysis, Pre-30-Day Letter

  1. Status 039 indicates that the module has failed TIF check 1. See IRM 5.18.1.6.2.1, TIF Check 1 - Pre-30-Day Letter Check. These modules were previously in Status 031.

  2. Modules in Status 039 will appear on the ASFR 400 List for resolution. See IRM 5.18.1.6.3.1, ASFR–400 LIST—IDRS RESEARCH Failed LIST.

  3. Modules in Status 039 have a 45-day suspension. If the modules remain in Status 039 beyond 45 days, they will appear on the ASFR 424 List. See IRM 5.18.1.6.3.9, ASFR–424 LIST—NO ACTIVITY LIST.

    Caution:

    Never manually update a module to Status 039.

5.18.1.5.11.16  (04-06-2016)
Status 040: ADR Research Requested

  1. Status 040 indicates that Undeliverable, ADR, research has been requested. See IRM 5.18.1.5.9, ASFR Address Verification.

  2. When a module in Status 030 is returned from the Post Office as Undeliverable, update the status to Status 040.

    Exception:

    Do not update modules with a Refund Hold indicator to status 040. ASFR does not forward Refund Hold to ADR for research. Research for a newer address on CC ENMOD and update ASFR if a new one is found. Continue ASFR even if a new address is not found.

    Note:

    Consider Refused, Deceased returned 30-day letters, or any other statements written on a returned 30-Day Letter, correspondence. See IRM 5.18.1.8.2.1.1, Clerical Screening of ASFR and Unidentifiable Mail.

    Note:

    Do not update to Status 040 if the current status is 051, 080 or 093, follow IRM 5.18.1.8.2, Taxpayer Responses, Returns and Correspondence. Status 040 is only used when a 30-Day Letter is returned as undeliverable. If the module is not in Status 030, see Lead or Team Leader.

  3. During weekly processing the status will be updated systemically to Status 342. A file of all modules updated to Status 342 will be sent to the Address Research System (ADR) to initiate Undeliverable Research. If another address is found, the ADR automatically sends a contact letter requesting that the taxpayer reply with their current address.

  4. The processing time frame for processing cases through ADR is approximately 60 days, but may be greater.

5.18.1.5.11.17  (10-01-2005)
Status 051: Post-30–Day Taxpayer Paper Correspondence

  1. Status 051 indicates that taxpayer correspondence was received prior to issuance of the 90-Day Letter.

    Note:

    This status is for taxpayer paper correspondence without returns attached only. Do not update to Status 051 for telephone contact.

  2. Status 051 is the suspense status used when taxpayer correspondence is received and a 90-Day Letter has not been issued. Status 051 has a 60 day suspension, and will appear on the ASFR-424 LIST-NO ACTIVITY when the suspension period has expired.

  3. If the correspondence is not updated to Status 051, when the Status 030 follow-up date expires, a 90–day letter will be issued.

5.18.1.5.11.18  (04-06-2016)
Status 056: Presidentially Declared Disaster Area or Terroristic or Military Action Suspense Period

  1. Status 056 indicates that the taxpayer is in a federally declared disaster area or was affected by a terroristic or military action.

    Note:

    The deadlines for certain acts performed by taxpayers (e.g. filing and paying) and the Service may be postponed for a period of up to a year. The length of the postponement period is prescribed in the Notice (or other guidance including an IRS News Release) issued by the Service regarding a particular disaster or action. See IRM 25.16.1, Disaster Assistance and Emergency Relief, Program Guidelines.

  2. Status 056 suspension is 60 days. If no action is taken during the 60 days, the modules will appear on the ASFR 424-NO ACTIVITY LIST. However, the suspense period is systemically extended if the suspension period is extended beyond 60 days.

  3. A utility program will identify, by ZIP codes, the impacted ASFR modules. Once identified, the utility will move the modules to Status 056. Do not manually move modules.

  4. After suspense period expires, modules systemically move back to the status they were in prior to Status 056.

    Note:

    See IRM 25.16.1, Disaster Assistance and Emergency Relief, Program Guidelines, for additional instructions if the taxpayer states they are impacted by the disaster, but are located outside the covered disaster area.

5.18.1.5.11.19  (04-06-2016)
Status 060: TERMINATE ASFR, Ref Hold-Rtn Filed Pre 30–Day Letter

  1. Status 060 indicates that the taxpayer filed a return prior to the issuance of a 30–day letter and the modules is a Refund Hold module.

  2. Update to Status 060 when a Refund Hold return has posted to the module, and then immediately update to Status 109. Do not let module appear on the ASFR 421 List. See IRM 5.18.1.6.3.6, ASFR 421 List: Terminated Case List.

5.18.1.5.11.20  (04-06-2016)
Status 061: TERMINATE ASFR, Return Filed Pre-30-Day Letter

  1. Status 061 indicates that the taxpayer filed a return prior to issuance of the 30-Day Letter.

  2. Update to Status 061 when a return has posted to the module, and then immediately update to Status 109. Do not let module appear on the ASFR 421 List. See IRM 5.18.1.6.3.6, ASFR 421 List: Terminated Case List.

5.18.1.5.11.21  (10-01-2005)
Status 062: TERMINATE ASFR, Failed ASFR Criteria and Must Be Reassigned

  1. Status 062 indicates that the account requires reassignment out of 8000.

  2. Modules are systemically moved to Status 062 when the module fails validation, and there are no other modules being worked on ASFR. Then ASFR will move module to Status 762.

  3. When a module terminates into Status 062, the ASFR TDI COMMENT field contains one of the following literals:

    • "NO IRP DATA AVAILABLE"

    • "MISSING CASE MINORS"

    • "TERMINATE SFR- EXCESSIVE MINORS"

    • "MISSING SUPPS- TERMINATE AUDIT REPORT"

  4. Modules will be reassigned from 8000.

5.18.1.5.11.22  (04-06-2016)
Status 063: TERMINATE ASFR, TC 596 CC 88 Selected by CI

  1. Status 063 indicates that the modules were selected by Criminal Investigation.

  2. Manually update Status to indicate that a module has been selected by Criminal Investigation. Take the following actions:

    1. Input TC 596 CC 88 on IDRS.

    2. If open, close the control base on IDRS.

    3. Update to Status 109. Do not let module appear on the ASFR 421 List.

    Caution:

    Ensure that prior to updating to Status 109, the module is in an ASFR closures status. If it is not in a closure status, proper closure credit will not be reported on the ASFR 200 Report.

  3. If there is an existing 59X on IDRS, follow instructions in IRM 5.18.1.5.11.25, Status 066: TERMINATE ASFR, Satisfying TDI TC (59X).


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