5.18.2 Business Returns IRC 6020(b) Processing

Manual Transmittal

June 25, 2018

Purpose

(1) This transmits a complete revision of IRM 5.18.2, Liability Determination, Business Returns IRC 6020(b) Processing.

Material Changes

(1) Formatting and editorial changes were made throughout the document.

(2) IRM 5.18.2.1 Updated subsection to Program Scope and Objectives as part of IRM internal controls.

(3) IRM 5.18.2.1.1 Added Background subsection as part of IRM internal controls.

(4) IRM 5.18.2.1.2 Added Authority subsection as part of IRM internal controls.

(5) IRM 5.18.2.1.3 Added Roles and Responsibilities subsection as part of IRM internal controls.

(6) IRM 5.18.2.1.4 Added Program Management and Review subsection as part of IRM internal controls.

(7) IRM 5.18.2.1.5 Added Program Controls subsection as part of IRM internal controls.

(8) IRM 5.18.2.1.6 Added Defined Terms/Definitions/Acronyms subsection as part of IRM internal controls.

(9) IRM 5.18.2.1.7 Added Related Resources subsection as part of IRM internal controls.

(10) IRM 5.18.2.2 Updated subsection to Campus Business Returns IRC 6020(b) Processing Research Criteria and Basis of Tax.

(11) IRM 5.18.2.3.2 Removed reference to process flow chart exhibit.

(12) IRM 5.18.2.4.4 Reorganized subsection on cases requiring manual processing for clarity.

(13) IRM 5.18.2.4.4.1 Added subsection on working Status 001 listing.

(14) IRM 5.18.2.4.4.2 Added subsection on working Status 003 listing.

(15) IRM 5.18.2.4.4.3 Added subsection on working Status 004 listing.

(16) IRM 5.18.2.4.4.4 Added subsection on working Status 015 listing.

(17) IRM 5.18.2.4.4.5 Added subsection on working Status 020 listing.

(18) IRM 5.18.2.4.4.6 Added subsection on default assessments in Status 021 and 023.

(19) IRM 5.18.2.4.6 Reorganized subsection on tax technician duties for clarity.

(20) IRM 5.18.2.4.6.1 Added subsection for responses received prior to default assessment.

(21) IRM 5.18.2.4.6.2 Added subsection for responses received subsequent to default assessment.

(22) IRM 5.18.2.4.6.3 Added subsection on deceased Taxpayers, bankrupt taxpayers and defunct corporations.

(23) IRM 5.18.2.4.6.4 Added subsection of taxpayers filing incorrect form, i.e. Form 941 versus 944.

(24) IRM 5.18.2.4.6.5 Added subsection on statute year case processing.

(25) IRM 5.18.2.4.6.6 Reorganized section on telephonic contacts for clarity.

(26) IRM 5.18.2.4.6.6.1 Added subsection of persons authorized to represent business entities.

(27) IRM 5.18.2.4.6.6.1.1 Added subsection on Limited Liability Companies.

(28) IRM 5.18.2.4.6.6.2 Added subsection on closing actions for telephonic contacts.

(29) Exhibit 5.18.2-1 Removed A6020(b) processing flowchart.

Effect on Other Documents

IRM 5.18.2 dated June 24, 2016 is superseded.

Audience

SB/SE employees in Compliance Services Collection Operation who process A6020(b) returns.

Effective Date

(06-25-2018)

Michelle C. Alvarado
Director, Headquarters Collection (HQC), Collection Inventory Delivery & Selection (CIDS)

Program Scope and Objectives

  1. The objective of the Campus Automated 6020(b) program (A6020(b)) is to promote filing compliance for taxpayers liable for employment taxes on Form 940, Form 941, Form 943 or Form 944.

  2. Purpose: In general, taxpayer written, phone or face to face contacts related to A6020(b) notices will be processed using this IRM.

  3. Audience: These procedures apply to IRS employees who are responsible for the processing of Campus A6020(b) case responses. These employees are located in the Small Business/Self-Employed (SB/SE) business operating division in the Compliance Services Collection Operation (CSCO) function.

  4. Policy Owner: Director, Collection Policy.

  5. Program Owner: Nonfiler and Inventory Analysis (NIA) which is an organization within SBSE Collection Headquarters, Collection Inventory, Delivery and Selection (CIDS).

  6. Primary Stakeholders: SBSE tax examiners in CSCO

  7. Program Goals: This IRM provides the fundamental knowledge and procedural guidance for employees who work the Campus A6020(b) program. By following the processes and procedures provided by this IRM, employees will process A6020(b) program responses in a manner that follows IRS policy and procedures while promoting the best interests of the Government.

Background

  1. IRM 5.18.2, Business Returns IRC 6020(b) Processing, provides directions and guidelines for working the Campus A6020(b) program. The procedures contained in this section provide guidance for employees to help taxpayers liable for employment taxes to become filing compliant. This section also provides guidance on initiating, resolving and responding to inquiries in reference to A6020(b) cases.

  2. The IRS is committed to a customer service program that encourages taxpayers to comply voluntarily with the tax laws and assists them in meeting their obligations.

  3. The SBSE CSCO Nonfiler Operation is committed to achieving excellence in the service it provides to its customers. We provide our customers with assistance in a manner that warrants the highest degree of public confidence. Representatives practice courtesy and proper communication techniques while ensuring that responses are technically and procedurally accurate and complete.

Authority

  1. Internal Revenue Code 6020(b) is the authority given to the Commissioner of the Internal Revenue Service to prepare and process returns for non-filing business taxpayers.

  2. Delegation Order No. 182 (Rev. 7), extends 6020(b) authority to Internal Revenue Agents; Tax Auditors; Revenue Officers, GS-9 and above; Collection Support Function Managers, GS-9 and above; Automated Collection Branch Unit Managers, GS-11 and above; Customer Service Collection Branch Managers, GS-10 and above; and Tax Resolution Representatives, GS-9 and above.

  3. Per Policy Statement 5-1: A tax system based on voluntary assessment would not be viable without enforcement programs to ensure compliance. The Service is committed to educating and assisting taxpayers who make a good faith effort to comply. However, enforcement action should be taken promptly, in accordance with Internal Revenue Manual guidelines, against taxpayers who have not shown a good faith effort to comply. Promotion of long-term voluntary compliance is a basic goal of the Service, and in reaching this goal, the Service will be cognizant not only of taxpayers’ obligations under our system of taxation but also of their rights.

  4. Per Policy Statement 5-2: We will actively assist taxpayers who try to comply with the law, and work to continually improve the quality of our systems and service to meet the needs of our customers. All taxpayers, whether delinquent or fully compliant, are entitled to prompt and professional service whenever they deal with Service employees. The public as a whole is our customer, not just delinquent taxpayers. Our customers expect us to promote voluntary compliance by ensuring that all promptly file tax returns and pay their fair share.

  5. The IRS Restructuring and Reform Act of 1998 (IRS RRA 98), Section 3705(a), provides identification requirements for all IRS employees working tax related matters.

Roles and Responsibilities

  1. The Director, Collection Inventory Delivery and Selection (CIDS) is responsible for all policy and procedures related to nonfiler programs.

  2. The Operations Manager is responsible for managing remote collection activities including telephone, correspondence and face-to-face transactions, following the procedures in this IRM. They oversee department, team and employee responses to taxpayer inquiries and responses concerning filing compliance inquiries. They oversee department, team and employee actions to resolve nonfiler accounts by taxpayers who did not timely file tax returns due.

  3. The Department manager is responsible for overseeing team and employee responses to taxpayer inquires and responses concerning nonfiler inquiries, following the procedures in this IRM. They oversee team and employee actions to resolve nonfiler accounts by taxpayers who did not timely file tax returns due.

  4. The Team manager is responsible for overseeing employee responses to taxpayer inquiries and responses concerning taxpayer delinquent return accounts and investigations, following the procedures in this IRM. They oversee employee actions to resolve nonfiler accounts of taxpayers who did not file returns timely.

  5. Employees who process A6020(b) program responses are responsible for responding to taxpayer inquiries and responses concerning missing returns, following the procedures in this IRM.

Program Management and Review

  1. Program Reports: The following daily and weekly reports are generated by management, and can assist with evaluating the performance of the A6020(b) program:

    • Embedded Quality Review System (EQRS) Reports.

    • National Quality Review System (NQRS) Reports.

    • Accounts Management Services (AMS) Reports.

    • Monthly Monitoring Report (MMR).

    • Work Planning & Control (WP&C) Reports.

    • Case Control Activity System (CCA) Reports.

    • Collection Activity Report (CAR).

  2. Program Effectiveness: The program results are housed on the Collection Program and Campus Reports SharePoint site in the Monthly Monitoring Report (MMR).The MMR captures NQRS results to show monthly and cumulative stats. Evaluative (EQRS) and national (NQRS) quality reviews and consistency reviews are routinely conducted, along with Headquarters reviews to ensure case actions are timely and in accordance with the procedures in this IRM.

    • Phone and paper cases are routinely reviewed by Centralized Quality Review System (CQRS) and Program Analysis System (PAS) to ensure case actions are timely and in accordance with the procedures in this IRM.

    • Case reviews are conducted by managers to ensure compliance with this IRM.

    • Operational reviews are conducted by the Department and Operation Managers annually to evaluate program delivery, conformance to administrative requirements and ensure compliance with this IRM.

    • Headquarters Collection Policy, Collection Inventory Delivery & Selection will conduct ad hoc program reviews as necessary to verify compliance with IRM requirements, address TIGTA/GAO findings, and address any trends that appear.

Program Controls

  1. Incoming telephone calls are distributed to telephone representatives using the Aspect system.

  2. Taxpayer responses are distributed to correspondence tax examiners.

  3. AMS and the A6020(b) system track employee actions and are monitored by Operation, Department, and Front-Line managers along with Collection HQ employees.

  4. Managers are required to follow program management procedures and controls addressed in:

    • IRM 1.4.11, Field Assistance Guide for Managers

    • IRM 1.4.16, Accounts Management Guide for Managers

    • IRM 1.4.20, Filing & Payment Compliance Managers Handbook

Terms/Definitions/Acronyms

  1. Lists of some of the terms with definitions as well as acronyms and their definition used in this IRM are found below. This list is not all inclusive. For details on other acronyms, use the Search feature on the IRS Home Page.

    Defined Terms

    Word Definition Example of using a word that is open to interpretation.
    (This column is for illustration purposes only)
         
    Calendar Year Accounting period beginning January 1 and ending December 31. The corporation is a calendar year filer meaning their Form 1120 will be for the accounting period beginning January 1 and ending December 31.
    Employment Codes Alpha codes found in Doc. 6209 that identify employers who are other than normal business employers. Employment code "G" identifies an employer that is a State or Local Government Agency.
    Entity An area within the campus that resolves issues with the business name, EIN, address and filing requirements. Also a person, partnership, organization, or business that has a legal and separately identifiable existence. Send the case to Entity to verify the correct filing requirements for the taxpayer.
    Last Return Assessed (LRA) The last return that has posted to the BMF for the same MFT. Use the Last Return Assessed (LRA) tax amount as the basis for the proposed 6020(b) assessment.
    Received Date Date the item was received. The taxpayer's correspondence must be stamped with the date the IRS received it, i.e the IRS Received Date.

     

    Acronyms

    Acronym Definition
    ACS Automated Collection System
    ACSS Automated Collection System Support
    ASED Assessment Statute Expiration Date
    BCD Business Closed Date
    BMF Business Master File
    CP Computer Paragraph
    CSCO Compliance Services Collection Operations
    CSED Collection Statute Expiration Date
    DWLP Date Wages Last Paid
    EIN Employer Identification Number
    EO Exempt Organization
    EP Employee Plans
    IDRS Integrated Data Retrieval System
    IMF Individual Master File
    IDS Inventory Delivery System
    IRP Information Returns Program
    LLC Limited Liability Company
    MFT Master File Tax code
    NDS. Notice Delivery System
    OFP Organization, Function and Program
    POA Power of Attorney
    SBSE Small Business/Self-Employed Business Operating Division (BOD)
    SIA Standardized IDRS Access
    TSIGN TDA/TDI Assignment Code
    W&I Wage and Investment Business Operating Division (BOD)

     

Related Resources

  1. While many topics are touched upon in this IRM section, comprehensive guidance about all of them cannot always be included here. As you use this IRM section, remain alert for references to other resources, such as related IRMs and websites. Access that guidance as needed to ensure a thorough understanding of topics.

  2. Additional resources can be found as applicable in:

    • IRM 2.3, IDRS Terminal Responses

    • IRM 2.4, IDRS Terminal Input

    • IRM 3.13.62, Media Transport and Control

    • IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates

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

    • IRM 5.19.3, Backup Withholding Program

    • IRM 5.19.4, Enforcement Action

    • IRM 5.19.10, Collection Operations Transcript Processing

    • IRM 5.19.16, Compliance Services Collection Operations (CSCO) Clerical Procedures

    • IRM 5.19.22, Business Master File (BMF) Return Delinquency

    • IRM 21.1, Accounts Management and Compliance Services Operations

    • IRM 21.2, Systems and Research Programs

    • IRM 21.3, Taxpayer Contacts

    • IRM 21.4, Refund Inquiries

    • IRM 21.5, Account Resolution

    • IRM 21.7, Business Tax Returns and Non-Master File Accounts

    • IRM 21.10, Quality Assurance

    • IRM 20.1, Penalty Handbook

    • IRM 20.2, Interest

    • Document 6209, IRS Processing Codes and Information

  3. Employees may also find the following information helpful:

    • Servicewide Electronic Research Program (SERP)

    • Servicewide Notice Information Program (SNIP)

    • Correspondex Letters

    • Integrated Automation Technologies (IAT) Tools

  4. The IRS adopted the Taxpayer Bill of Rights (TBOR) in June 2014. Employees are responsible for being familiar with and acting in accordance with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see Taxpayer Bill of Rights FAQs on IRS Source.

Campus Business Returns IRC 6020(b) Processing Research Criteria and Basis of Tax

  1. Research criteria for Campus 6020(b) processing is found in IRM 5.18.2.2.1, Research Criteria for IRC 6020(b) Processing.

  2. The basis of tax for Campus 6020(b) processing is found in IRM 5.18.2.2.2, Basis of Tax for 6020(b) Modules.

Research Criteria for IRC 6020(b) Processing

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Basis of Tax for 6020(b) Modules

  1. To determine if a refund situation will occur when there is both a credit and Last Return Assessed (LRA) wage amount:

    1. Multiply the wage amount on Form 941/943/944 by .353 or .062 for Form 940 and subtract the credit.

    2. If a refund situation results, use the credit method to determine the "base wage" on the proposal, as illustrated in the following table.

      Figure 5.18.2-1

      Form Base Wage Determination
      Forms 941/943/944….. credit / .353 = $$$$$
        $$$$$ x .05 = ?????
        $$$$$ + ????? = base wage
         
      Form 940………… credit / .062 = $$$$$
        $$$$$ x .05 = ?????
        $$$$$ + ????? = base wage
  2. If the LRA wage amount used in determining a "base wage" is prior to the delinquent period an inflation factor of:

    1. 2.5% must be added for each period in between the LRA and delinquent periods for Forms 941 (see Figure 5.18.2-2).

    2. 10% on annual Forms 943 and 944. (see Figure 5.18.2-2).

    3. if the Last Return Assessed (LRA) is subsequent to the delinquent period no inflation factor is required.

    4. withholding (WH) is always assessed at the rate of 20% of wage amount.

    Figure 5.18.2-2

    Form 941
    1 inflation factor .025
    2 inflation factors .050
    3 inflation factors .075
    4 inflation factors 1.00 etc.
     
    Form 943/940/944
    1 inflation factor- .10
    2 inflation factors .20
    3 inflation factors .30
    4 inflation factors .40 etc.
  3. When using a credit to determine a "base wage" use the following formula:

    • Divide the credit by the tax rate (.353 for Form 941/943/944 & .062 for Form 940)

    • multiply that amount by 5% (.05)

    • add the two amounts together. See Figure 5.18.2-1..

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    Figure 5.18.2-3

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Logistics of 6020(b) Processing

  1. Process a return under the provisions of IRC 6020(b) for Business Master File (BMF) returns if:

    • The entity appears to be liable for the return

    • The person required to file the return does not file it

    • Attempts to secure the returns fail

  2. The following BMF returns with corresponding Master File Tax (MFT) codes are the returns usually prepared under the provisions of IRC 6020(b):

    TAX RETURN RETURN TITLE RETURN MFT
    Form 940 Employer's Annual Federal Unemployment Tax Return 10
    Form 941 Employer's Quarterly Federal Tax Return 01
    Form 943 Employer's Annual Return for Agricultural Employees 11
    Form 944 Employer's Annual Federal Tax Return 14

    Note:

    The A6020(b) program at the Ogden Campus processes Forms 941/943/944/ 940 for three (3) tax years prior to current year (e.g. current year 2016, would work 2016, 2015, 2014, 2013).

  3. Do NOT propose assessments on cases with the characteristics described in IRM 5.18.2.2.1.(1).

Federal and State Information Sharing Agreements

  1. There are Federal and state information sharing agreements in existence, requiring sharing of information regarding 6020(b) assessments. Agreements usually require the sharing of information as tax returns are assessed. Be careful of unauthorized taxpayer information disclosures which will occur if you give more information than the Federal and state agreement specifies to share with the taxpayers' state of residence.

  2. If these agreements are active, maintain the integrity of the agreement by:

    • Sharing weekly information regarding return assessments using information from the A6020(b) system

    • Providing information specified in the agreement and requested by your federal/state coordinator

    Note:

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A6020(b) Centralization

  1. The Ogden Campus Collections Operation is the centralization point for the Automated 6020(b) process. The automated program will be the national standard with manual procedures as a back-up in case of hardware and/or software problems. The A6020(b) system resides at the Memphis Computing Center along with the Applications Support.

System Security

  1. The A6020(b) system is a web-based application accessed through the Internet. There are primarily seven (7) levels of access developed initially based on user profile and can be added/revised/updated on an "as needed" basis. These levels are as follows:

    • administrator

    • unit manager

    • unit lead

    • tax examiner

    • guest (reports only)

    • guest/PAS review (read only)

    • clerical

  2. A6020(b) users are added/deleted through the Online 5081 process. There are three (3) levels of approval needed to grant/deny access. They are:

    1. unit manager

    2. application

    3. systems

  3. Users are trained in how to fulfill their security responsibilities. Behavior consistent with the rules of the system and periodic refresher training are required for continued access to the system. This training is provided by the Collections Operation at the Ogden campus where the A6020(b) program is centralized. These Rules of Behavior are part of the Online 5081 system/process and users are required to sign these forms prior to being granted logical access to the system.

  4. Audit trails are maintained in the application. All status code changes made to a module are stored as a history record, in the system along with the date and user who made the change. These audit trails are reviewed on an "as needed" basis.

  5. An approved Business/Disaster Recovery Plan and Service Level Agreement (SLA) can be provided upon request.

A6020(b) Case Selection

  1. Cases are selected by the Inventory Delivery System (IDS) based on established criteria. These cases are identified by Tsign AO008600. Inventory for A6020(b) is then extracted from IDRS and uploaded to the A6020(b) system. The A6020(b) process/system also accepts referrals, via TSIGN, when "stand alone" TDIs are identified and are eligible for A6020(b) processing.

    Note:

    This IRM cannot be all inclusive for resources to be researched during the A6020(b) program processing. These resources may include IRM 3, Submission Processing, IRM 3.13, Campus Document Services, IRM 5.19, Liability Collection, IRM 20, Penalty and Interest, and IRM 21, Customer Accounts Services. Refer to the SERP website for accessing appropriate IRMs.

Organization, Function, and Program (OFP) Codes for A6020(b)

  1. Ogden Campus Collections Operation is responsible for working the A6020(b) inventory. Closing code 008 identifies unagreed cases and closing code 009 identifies agreed cases. Systemic action, e.g., receipts and closures, on A6020(b) cases is reported under OFP code 62900. Sub function codes have been established as follows:

    • 810-62901 (Taxpayer correspondence responses)

    • 810-62902 (Taxpayer telephone responses)

  2. A6020(b) Reconsideration closures are reported under OFP 810-62930.

A6020(b) Inventory

  1. A download tape from IDRS containing A6020(b) eligible cases is produced weekly and uploaded to the A6020(b) stand-alone system. Case selection based on established criteria is done by the Inventory Delivery System (IDS). Delinquent periods must be within three (3) years prior to current calendar year and must contain either a credit on the delinquent period or a "last return assessed" (LRA) within established thresholds. IDS also uses this same criteria to assign cases to A6020(b) during its annual queue "clean-up" The incoming data is then directed, based on the characteristics of the case as identified in the A6020(b) load criteria, to specific statuses. The weekly mail out is prioritized by "combo" accounts and those having the largest proposed assessed amount. Once initiated into the process, the case will be systemically moved, through a series of statuses having assigned follow-up periods, to completion.

A6020(b) Inventory Assignment and Control

  1. Once accounts are Tsigned AO008600 TDI weekend processing then assigns a A6020(b) -ACCT-IND to the account entity. This code has three (3) values:

    • 0 = no 6020(b) activity

    • 1 = 6020(b) activity

    • 2 = associated TDA (combo account needing priority processing)

  2. An A6020(b)-MOD-IND is assigned to any tax period (TXMOD) meeting A6020(b) processing criteria. The 6020B-MOD-IND has two (2) values:

    • 0 = no 6020(b) activity

    • 1 = 6020(b) activity

  3. When these cases upload to the A6020(b) system IDRS generates an "OPENING" record to the A6020(b) system.

  4. During weekend TDI processing if a change occurs on an account assigned to A6020(b), a "REFRESH" and/or "CLOSING" record will be sent to the A6020(b) system to update the module appropriately.

  5. Generation of weekly Letter 1085, see Exhibit 5.18.2-2, is based on request, via the Electronic File Transfer Utility (EFTU), by the manager and/or lead following an established schedule which is subject to change. Included with the Letter (L) 1085 is the taxpayer appeal rights, Publication 5, see Exhibit 5.18.2-3.

  6. These 1085 ltr packages are printed by the National Print Site West (Ogden) through the Notice Delivery System (NDS).

A6020(b) Case Characteristics

  1. Cases on A6020(b) will be assigned a status as follows:

    • -L,-Z freeze codes (will be closed via Standardized IDRS Access (SIA) to either Exam or Criminal Investigation)

    • TDA-IND set to 1 (combo case requiring acceleration through the process)

    • -O, -C freeze code (case will be directed to a holding status until freeze is lifted)

  2. If the above characteristics are not present, incoming cases from IDRS will be assigned a status indicating ready for mail out or needs additional manual perfecting.

A6020(b) Status Codes

  1. The A6020(b) inventory has several different status codes, see Exhibit 5.18.2-1, used for assignment depending on:

    • Characteristics of the case

    • Progression of the case within the automated system

A6020(b) Reports and Reject and Error Listings

  1. The A6020(b) system generates the following weekly reports for inventory management:

    • All Status Codes for all Modules Report shows the number of modules in each status on the A6020(b) system.

    • Weekly MIS Report shows weekly receipts, closure (by entity and module count) types, and ending inventory in terms of "started" and "unstarted" inventory (module count only).

  2. The A6020(b) system will reject any entity trying to load from IDRS if the load criteria is insufficient/invalid. The A6020(b) system will assign to an error status any module having insufficient/invalid criteria. Listed below are the reject and error categories, along with status, description of reject/error.

    Note:

    Those with an "*" are conditions addressed systemically.

    LISTING STATUS EXPLANATION
    REJECT 850/860* Employment codes F, T, G; 6020b-ACCT-IND not 0, 1, 2; invalid TDA indicator; account to be sent weekly via "tickler" file to IDS for reassignment
    ERROR 700 Invalid TDI status code; see IRM 5.18.2.4.4
    ERROR 701* Invalid 6020b Module Indicator; TBD
    ERROR 702* Transaction code not numeric; TBD
    ERROR 703* Invalid tax period date; TBD
    ERROR 704* Invalid transaction code 592; TBD
    ERROR 705 Invalid transaction code 594; see table in IRM 5.18.2.4.4

A6020(b) Cases Requiring Manual Perfection

  1. Modules in Status 001, 003 and 004 require manual perfection to process. Status 015 and 020 listings can as well. For all Status 001, 003, 005 and 015 modules, follow the procedures below and then follow the specific instructions based on the case status.

    1. Check CC ENMOD for date wages last paid (DWLP) or business closed date (BCD). If found, input TC 591 CC 008 on IDRS according to those dates. Close all filing requirements needed. If taxable returns are filed or deposits made after these dates, then work the case as normal.

    2. If research of CC BMFOL or CC TXMOD indicates the taxpayer is not liable, input TC 590 CC 008 or TC 591 CC 008. If there are any pending TC 59X transactions, do not work the module. IDRS will subsequently update A6020b if the account TSIGN is 8600.

    3. When working the 001 listing, modules in Status 001 will be considered for A6020b processing only if the last return assessed (LRA) data for the same MFT is within three (3) years of the earliest delinquent module on the listing. When working Forms 941 or 944, both MFTs need to be checked for LRA data.

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    5. Work all modules on A6020b system in Status 001, 015 and 019. When working Status 015 modules refer to the instructions in IRM 5.18.2.4.4.4. Move modules in Status 019 to Status 020 and refer to 020 listing instructions in IRM 5.18.2.4.4.5.

    6. Input the wage amount to the A6020b system and change the status to 020 and input appropriate letter date.

Status 001 Listing
  1. Follow the procedures in the table below by tax form and MFT for Status 001 cases:

    If And Then
    Form 940 MFT 10 Wage data is available. Use same year wages for Forms 941/943/944. On IDRS, use CC BMFOLW for Form 941 wages and CC BMFOL (U or R) for Form 943/944 wages. Add wages from IDRS and any wages on A6020b for the same year to determine the "base wage."
    Form 940 MFT 10 A credit is on the account. Use Form 941/943/944 wage data for the same year unless it results in a refund situation. Otherwise, use the credit to determine the wages. See IRM 5.18.2.2.2.
    Form 940 MFT 10 No credit and no Form 941/943/944 wage data for the same year. Input TC 597 CC 008. IDRS will subsequently update A6020b if the account TSIGN is 8600.
    Form 941 MFT 01   Use the LRA on Form 941 or Form 944. Use CC BMFOLI and BMFOLR.
    • If the LRA is Form 944, divide the wages by four (4) to get the LRA, then multiply the inflation factor as if the LRA was on the last quarter of the LRA year.

    Form 941 MFT 01 Credit Use LRA wage data first unless it results in a refund situation. Otherwise, use the credit to determine the wages. See IRM 5.18.2.2.2.
    Form 941 MFT 01 No credit and no LRA data Input TC 597 CC 008. IDRS will subsequently update A6020b if the account TSIGN is 8600.
    Form 943 MFT 11 Intentionally left blank Use CC BMFOLU for the same tax year first, if no W-3 or W-2 wages reported for the delinquent year, use CC BMFOLI for the LRA on Form 943
    When checking CC BMFOLU, insure there are no filing requirements for Form 941 or Form 944 during the year in question. If yes, then use CC BMFOL (I and R) to get a base wage.
    Form 943 MFT 11 Credit Use LRA wage data first unless it results in a refund situation. Otherwise, use the credit to determine the wages. See IRM 5.18.2.2.2.
    Form 943 MFT 11 No Credit and no LRA data Input TC 597 CC 008. IDRS will subsequently update A6020b if the account TSIGN is 8600.
Status 003 Listing
  1. Follow the procedures below for Status 003 cases.

    1. Check SUMRY for balance dues in TDA status 22/24/26; regardless of MFT; Do not include balance due amounts if in any other status.

    2. Use the if/then chart below for further completion of the modules in status 003.

      Note:

      Modules on A6020(b) in status 020 or less are considered unstarted, status 021-050 are started, and status 060 and above are closed.

      Note:

      Status 003 is a combo case and takes precedence over other cases requiring manual perfection; should be worked the same week it is assigned to status 003.

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Status 004 Listing
  1. Status 004 Listings cases cannot be worked until the -C and/or -O freeze condition has been removed.

  2. After freeze removal, status 004 cases will revert to the previous status.

  3. If no prior status, follow status 001 procedures to resolve. See IRM 5.18.2.4.4.1, Status 001 Listing..

Status 015 Listing Cases Requiring Manual Research and Perfection
  1. Follow the procedures below to process Status 015 listing cases requiring manual research and perfection.

    1. Check CC ENMOD for date wages last paid (DWLP) or business closed date (BCD). If found, input TC 591 CC 008 on IDRS according to those dates. Close all filing requirements as needed.. If taxable returns filed or deposits made after these dates, then work the case as normal.

    2. If research of CC BMFOL or CC TXMOD indicates the taxpayer is not liable input TC 590 CC 008 or TC 591 CC 008. If there are any pending TC 59X transactions, do not work the module. IDRS will subsequently update A6020(b) if the account TSIGN is 8600.

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    5. Check CC BMFOLU for the same year W-2 or W-3 wages (whichever is greater) and input wages on A6020(b), move to status 020 and input appropriate letter date.

    6. Use the if/then chart below for further completion of the modules in status 015.

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    7. Input the wage amount to the A6020(b) system, change the status to 020 and input appropriate letter date.

    8. If no wages found and there is no credit on the TDI module, input TC 597 CC 008 on IDRS. IDRS will subsequently update A6020(b) if the account TSIGN is 8600.

    9. If there is both a credit and LRA liability for the module, determine if a refund situation will occur. See IRM 5.18.2.2.2 paragraph (1).

    10. Use credit for determining only if there is no LRA liability or if there is LRA data but it results in a refund situation. Figure 5.18.2-1

Status 020 Listing
  1. Modules in status 020 are computer generated and are in the process of creating the 1085 letter. However there are some instances where the modules in 020 must be manually perfected before the letter is printed. Follow the procedures below to process cases in Status 020.

    1. Check CC ENMOD for date wages last paid (DWLP) or business closed date (BCD). If found, input TC 591 cc 008 on IDRS according to those dates. Close all filing requirements needed and update A6020(b) to prevent generation of a letter. Refer to Exhibit 5.18.2-1, Status Codes, for A6020(b) status codes. If taxable returns filed or deposits made after these dates, then leave modules in Status 020 and allow the letter to generate.

    2. If research of CC BMFOL or CC TXMOD indicates the taxpayer is not liable input TC 590 cc008 or TC 591 cc 008. If there are any pending TC 59X transactions, do not work the module. Update A6020(b) to appropriate status to prevent generation of a letter.

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If unable to perfect, input TC 597 CC 008 and update A6020(b) to status 093 to prevent generation of a letter.

    4. Work all other modules on the 020 listing in status 001, 015, and 019 follow the instructions in IRM 5.18.2.4.4.1 or IRM 5.18.2.4.4.4.

Default Assessments: Status 021 and 023
  1. After being printed, the 1085 letter is mailed and the module is put into Status 021.

  2. Modules remaining in Status 021 after 45 days, are systemically moved to Status 023 and TC 599 cc 008 is systemically input.

  3. Default returns are printed and sent for processing. Modules are systemically moved to Status 025.

  4. After a 60 day follow-up, the modules are systemically moved to the proper Status 09X or to Status 026 manual listing.

Clerical Duties

  1. Batch incoming taxpayer correspondence and undeliverable mail per local procedures

    • Written requests in response to the 1085 letter received in CSCO must be IDRS controlled within 30 days from the IRS received date, and reconsideration cases must be IDRS controlled by 14 days if it cannot be immediately closed.

    • All undeliverable receipts must be worked by 30 days from the IRS received date.

  2. Process undeliverable mail using the following procedures:

    • Work undeliverable mail under OFP code 790–62907

    • Stamp each "X" d envelope (case) with employee IDRS number; write the EIN, MFTs, and tax periods on the envelope and what actions were taken on the case

    • If the modules listed on the 1085 Ltr are not T-Signed 8600, update A6020(b) to the appropriate status if closing actions are taken

    • If the account is T-Signed to an RO, move the module in A6020(b) to Status 060. Do not work. History CC TXMOD, "1085UNDEL" and "X" the undeliverable letter.

    • If a Z freeze is located on the account, move to Status 800 in A6020(b). Do not work and "X" the undeliverable 1085 letter.

    • Check ENMOD to verify business name, address, date wages last paid (DWLP) and Date Business Closed (DBC).

    • Check filing requirements; compare open filing requirements on ENMOD with history of forms filed on BMFOLI and BMFOLU.

    • If a final Form 940 has been filed do not close the Form 941 filing requirement; however, input a TC 590 CC 008 on the remaining Form 941 modules for the same tax year, if the Form W-2 amounts on CC BMFOLU match the previously filed Form 941 amounts for the same year. A final Form 941 is sufficient to close the Form 940 filing requirement for the subsequent year as long as a Form 943 or Form 944 filing requirement is not present.

      Exception:

      If the taxpayer continues to file returns with dollar amounts other than zero after a final return, then a liability cannot be determined and A6020(b) process should continue to secure the delinquent return.

    • Address all other applicable MFTs.

    • Check TXMODA on each module to verify there is no return or other satisfying transaction on the module

  3. Research for a new address by checking the following:

    • CC ENMOD for updated mailing address

    • Envelope for forwarding address

    • CC ENMOD for location address

    • CC ENMOD/INOLES for X-reference with different address

    • if a new address is found, use the chart below to complete the case. If a new address is not found, continue to the next bullet statement.

    IF AND THEN
    ENMOD was updated with a new mailing address Intentionally left blank Send a 2475C letter with the 1085 as an enclosure to the new address;; history TXMOD (1085NUADRS); update modules listed on 1085 letter to status 050 on A6020(b) unless already in Status 023 or later.
    ENMOD was not updated with a new mailing address A new address was found on the envelope or a cross-referenced TIN Send Letter 2475C to the new address with the 1085 letter as an enclosure. Do not change the ENMOD address. History CC TXMOD, 1085NUADRS: update modules listed on the 1085 letter to Status 050 on A6020(b) unless already in Status 023 or later.
    ENMOD was not updated with a new mailing address There is a location address different from the mailing address Use CC ENREQ to update the mailing address to match the location address. Send a 2475C letter with the 1085 letter as an enclosure to the new address; history CC TXMOD, 1085NUADRS. Update modules listed on the 1085 letter to Status 050 on A6020(b) unless already in Status 023 or later.
    If Letter 2475C or second 1085 letter is returned undeliverable CC ENMOD was updated with a newer address Enclose the 1085 letter and/or Letter 2475C in an envelope and send to the new address; history CC TXMOD 1085NUADRS or 2475CNUADRS. Update modules listed on the 1085 letter to Status 050 on A6020(b) unless already in Status 023 or later.
  4. If a new addressis not found follow the chart below:

    IF AND THEN
    The A6020b default return has not posted. A TC 599 008 is not on the account Input TC 593 CC 008 to the earliest non-filed return module for each A6020b MFT.
    The A6020b default return has not posted to the account There is a TC599-08 on the account or it is pending or A6020(b) is in Status 023 Input the TC 530 CC 003 with a delay cycle of 2. History CC TXMOD, 1085UNDEL.
    The A6020b default return has posted to the account Intentionally left blank Input TC 530 CC 003 using CC REQ77. History CC TXMOD, 1085UNDEL.
    If the taxpayer's return is posted to the account Intentionally left blank Verify that A6020b is in Status 099. If not, update module to Status 096 on A6020b. History CC TXMOD, 1085UNDEL
    If Letter 2475C or 2nd 1085 letter is returned undeliverable No new address is found Input TC 593 CC 008 to the earliest non-filed return module for each A6020b MFT; history CC ENMOD (1085UNDEL or 2475CUNDEL) Follow above procedures for any default returns or credits.


    Input a TC 530 CC 003 on any A6020b MFT (01, 10,11 or 14) that shows a balance due. History CC TXMOD, 1085UNDEL. Balance due modules might not be included on the 1085 letter.

  5. If the undeliverable 1085 letter was sent to the POA address , do not update A6020b, and follow the chart below:

    IF AND THEN
    There is no new POA Only the POA copy of the 1085 letter was returned History CC TXMOD (1085UDLPOA).
    There is a new POA address Only the POA copy of the 1085 letter was returned Send the 1085 letter to the POA in a white envelope.
    If both the taxpayer and POA copies are returned Intentionally left blank Follow the regular procedures for the taxpayer portion.
  6. Deceased Taxpayer :

    IF THEN
    It is a sole proprietorship Back off any A6020b returns that have posted on modules after the date of death (DOD) and input TC 591 CC 008.
    On modules prior to DOD:
    If bal. due on account input TC 530 CC 003.
    If TDI on module input TC 590 CC 008.
    It is a corporation or partnership The remaining partner(s) and/or officer(s) are still liable to file. If unable to determine or contact, input TC 593 CC 008 on the earliest delinquent module.
  7. Defunct Corporation. If there are delinquent modules created subsequent to the date of TC 530–10 determination, back-off A6020b assessments and input TC 591 CC 008. If there are delinquent modules not assessed prior to the date of the TC 530–10, input TC 597 CC 008.

Tax Technician Duties

  1. Work A6020(b) status and/or error listings in priority order as designated by management. See IRM 5.18.2.4.4.

  2. You are required to document actions taken on taxpayers accounts and/or actions promised by a taxpayer. All documentation must be done via AMS. All documentation should be, to the extent possible, completed while the taxpayer is on the phone. When working paper, AMS documentation should support action(s) taken based on complete research.

  3. If the taxpayer gives a corrected address or includes telephone number, update CC ENMOD with the correct information.

  4. Follow procedures in this subsection to resolve taxpayer responses to A6020(b) proposed or default assessments.

Responses Received Prior to Default Assessments
  1. If the taxpayer responds to the 1085 letter package; prior to default assessment, the following procedures should be followed:

    IF THEN
    Taxpayer states no employees during the period in question Input TC 590 CC 008 on each module not liable; address credit(s) per section (9) below.
    Taxpayer states business is closed (DBC) Input TC 591 CC 008 on the earliest module after DBC ; close all open filing requirements; input business closing date on CC ENMOD; address credit(s) per (8) below.
    Taxpayer indicates Date Wages Last Paid (DWLP) Input TC 591 CC 008 on the earliest module after DWLP; close all open employment tax filing requirements; input DWLP on CC ENMOD; address credit(s) per section (9) below.
    Taxpayer submits a return Input TC 599 CC 009, code and prepare for processing.
    If a previous TC 599 ( closing code other than 08) is present or pending, follow instructions in next box. Input DBC and/or DWLP if indicated on return.
    Taxpayer submits possible copy of a return and the original return has not posted and the TC 599-xxx or TC 610 is less than 10 weeks Verify if the IRS received date on the return is within the same cycle of TC 599/610. If the date(s) are within the same cycle, code the return and send for processing. If the date(s) are not within the same cycle, input TC 594 CC 033, print input screen from IDRS and notate "Source Doc" , stamp your employee number and date of input, code return with TC 594 CC 033 and attach taxpayer correspondence behind the return, attach return behind the print to be filed in the source doc file.
    If TC 599-xxx was input over 10 weeks from the current date, input TC 599 CC 009 and send the return to Submission Processing.
    Taxpayer sends a signed return and the return matches the TC 150 posted to the account X return and indicate TC 150 already posted.
    Taxpayer correspondence is insufficient Contact taxpayer per telephone, (do phone look-up if necessary) to clarify the information; if no telephone contact can be made continue with A6020(b) processing; send letter to the taxpayer.
    Taxpayer states return will be filed at a later date History the module(s) on TXMOD with the date taxpayer will file.
    Taxpayer states return was filed under a new or different Employer Identification Number (EIN) Verify the return(s) have been filed under the new or different EIN; if the taxpayer filed only for the tax periods addressed on the 1085 letter input TC 590 CC 008 on those modules; if the EIN on the 1085 letter is no longer liable input TC 591 CC 008 to the earliest not liable period to close the filing requirements.
    Taxpayer states credit(s) on the account is intended for a different return, tax period or EIN Transfer the credit(s) or payments(s) to the applicable return, tax period, or EIN.
    Taxpayer states they want a refund of the credit(s) on the account Refer to IRM 5.18.2.4.6.5, Statute Year Processing..
    Response indicates the return may have posted to the wrong period and/or EIN Attempt to secure the return per a call to the taxpayer; if a copy cannot be secured prepare a "dummy" using the information on BRTVU/BMFOLR; if the tax period is not statute expired/imminent input TC 291 for the entire liability on the incorrect EIN, and send the return for processing on the correct EIN; if the return is statute expired follow statute procedures for account transfers.
    Faxed return received Accept and process as applicable
    Remittance received with a return Complete Form 3244 , attach the remittance to the Form 3244 and give to Lead or Manager, code and process the return using regular procedures.
    Taxpayer indicates possible identify theft Input TC 591 CC 008 (and a total abatement if response addresses a reconsideration); refer the case to the local fraud coordinator for potential follow-up action.
Responses Received Subsequent to Default Assessment
  1. Process taxpayer responses received subsequent to a default assessment as follows:

    IF AND THEN
    Taxpayer states no employees during the period(s) in question There are no credits on the account. Input TC 590/591 CC 008 to IDRS depending on the response; address all filing requirements if business is closed ; input closing date or date wages last paid on ENMOD; input TC 291 adjustment using figures from TXMOD to remove all tax and wages; use blocking series 18 and source doc (telephone contact sheet and/or taxpayer correspondence) on the last adjustment input as the source doc. Use appropriate Item Reference Numbers, hold codes, and priority codes as needed; input a STAUP for any module in status 21 or 58, if in statuses 22/24/26 input TC 470 no closing code.
    Taxpayer states no employees during the period(s) in question There are credits on the account. Inform taxpayer by phone or 4349C letter they need to file a signed form 94X showing zero wages.
    Taxpayer submits a taxable return Intentionally left blank Input TC 599 CC 009, code and prepare the return for processing. Input appropriate STAUP or if Status 22/24/26 input TC 470.
    Taxpayer submits a signed zero liability return There are no credits on the module Input TC 971 action code 012, input TC 590 CC 008 or TC 591 CC 008 and TC 291 adjustment using figures from TXMOD to remove all tax and wages; use blocking series 18; use appropriate Item Reference Numbers, hold codes, and priority codes as needed; input a STAUP for any module in status 21 or 58; if status is in 22/24/26, input TC 470 no closing code.
    Taxpayer submits signed zero liability return There are credits on the module Input TC 599 CC 009; code and prepare the return for processing using normal procedures.
    Taxpayer submits an unsigned zero return With or without credits on the module Input TC 599 CC 009; code and prepare the return for processing using normal procedures.
    Taxpayer submits a signed zero liability return The adjustments has already been made Input TC 290 for .00 on REQ 54 with hold code 3, blocking series 18 using the return as a source doc. If it is a statute year, input RFSC date using the IRS received date. Input TC 971 CC 012 to set ASED.
    Taxpayer sends in a return and a return already posted to the account that does not match Intentionally left blank Input TC 599 CC 009; code and prepare the return for processing using normal procedures.
    Taxpayer submits a return; a TC599 and TC976 are posted to TXMOD with no subsequent TC29X Intentionally left blank Research the account using CC BRTVU to see if the TC 976 is the same return received from the taxpayer; if a true copy "X" the return and Accounts Management (AM) will adjust to match the taxpayers figures; if not a true copy and AM has an open control route to AM; if not a true copy and no open AM control input TC 599 CC 009 and route return for processing.
    Taxpayer submits return; TC599 and TC976 are present with a subsequent TC29X Intentionally left blank Compare the figures posted to IDRS; if figures match "X" the return; if BRTVU shows the adjustment was done incorrectly route to AM to correct; if the return is different from that on BRTVU/TXMOD input TC 599 CC 009 and route for processing
    When working reprocessable cases work only those module(s) with a 6020b issue; other modules are to be referred to AM for resolution.
    Taxpayer submits a Form 941-X indicating a zero liability Intentionally left blank Input TC 291 adjustment using figures from CC TXMOD to remove all tax and wages; use appropriate hold and priority codes, item reference numbers as needed. Input CC STAUP for any modules in status 21 or 58; input TC 470 no closing code if in status 22/24/26. Source doc the Form 941-X.
    Do not input TC 599-09 or TC 971-012.
    Taxpayer submits a Form 941-X A partial adjustment is warranted Route to AM for resolution.
    Taxpayer states not liable Default return prepared by Revenue Officer (TC 599-63) Route or fax correspondence to Revenue Officer who prepared the return for resolution. Send 86c letter to taxpayer.
Deceased Taxpayers, Bankrupt Taxpayers or Defunct Corporations
  1. If the taxpayer is deceased:

    IF THEN
    It is a sole proprietorship Back off any A6020(b) returns that have posted on modules after the date of death (DOD). Input a TC 591 CC 008 on any modules after DOD. Input TC 971-296 on any credit balance modules
    On modules prior to DOD:
    If bal. due on account input TC 530 CC 003
    If TDI on module input TC 590 CC 008.
    It is a partnership The remaining partner(s) are still liable to file. If no new business or remaining partner(s) contact information is found, input TC 593 CC 008 on the earliest module
    It is a corporation The remaining partner(s) are still liable to file. If no new business or remaining owner(s) contact information is found, input TC 593 CC 008 on the earliest module
Incorrect Tax Forms: 941/944
  1. Refer to the procedures in the table below when the taxpayer files the incorrect form, either Form 941 or Form 944.

    IF And Then
    Taxpayer sends in a Form 944 but is required to file a Form 941 Intentionally left blank Return the Form 944 with a letter advising the taxpayer to file the correct Form 941
    Taxpayer sends in a Form 941 but is required to file a Form 944 Sends in less than all four quarters for the delinquent year Return the Form 941 with a letter advising the taxpayer to file the correct Form 944
    Taxpayer sends in Form 941 but is required to file a Form 944 Taxpayer sends in all four signed quarterly Form 941s for the delinquent year Create a dummy return with the information secured from the four signed quarterly Form 941s. Refer to IRM 5.19.2.6.5.4.16 (8-10)
Statute Year Processing
  1. Credit issues such as taxpayer indication of misapplied payments or input of TCs 590/591/593/597 with a credit on the account are to be addressed by following the credit balance procedures found in IRM 5.19.2.6, Credit Balance Overview.

    The Statute of Limitations must be considered on all modules. Claims for credit or refund of pre-paid and post-paid credits must be filed within 3 years of the filed return date or 2 years from the payment date, whichever is later. If no return was filed by the taxpayer, the claim for credit or refund must be filed within 2 years from the date the tax was paid. If the taxpayer files a late return and simultaneously files a refund claim, the taxpayer is entitled to a refund limited to payments made within the 3 years immediately preceding the filing. Pre-paid credits are payments made on or before the due date of the return and are considered paid on the due date of the return. Post-paid credits are payments made after the due date of the return and are considered paid on the date the payment was made. Even if a claim is timely, the taxpayer may not be entitled to a refund, as limitations on the amount of the refund may apply. For more information see IRM 4.23.8.9.

    Example:

    Allowable Pre-Paid Credit:
    Taxpayer return is received on 01/15/ 2012 on MFT 01 tax period 200912 (due 1/31/2010), with a payment dated 1/15/2010 on the account; the refund is allowed because the tax was paid on or before the due date of return, and the taxpayers return or claim was filed timely.

    Example:

    Allowing Refund of a Post-Paid Credit:
    Taxpayer return is received on 1/15/2011 on MFT 01 Tax period 200912 (due 1/31/2010), with a payment dated 2/15/2010 on the account; the refund is allowed because the tax was paid after the due date of return and the return or claim was filed timely.

    Follow procedures in the tables below when considering credit cases.

  2. Default return posted, statute year, payment more than 2 years old

    IF AND THEN
    Taxpayer states no liability Filed no return If no return was filed, then the taxpayer can file a return and refund claim simultaneously to get a refund limited to payments made in the last 3 years. For example, if pre-paid tax and filed a return 2.5 years after the return due date, then can file a return 2.5 years late and get refund of all pre-paid credits. Taxpayers should not be told that statute has expired if they can still receive a refund by filing a return.
    Taxpayer states no liability Sends a zero liability return Process the return using the appropriate procedures
    TP states no liability Sends a Form 843 Route to Accounts Management for processing
  3. Default return posted, payment less than 2 years old, regardless of year:

    IF And Then
    Taxpayer states no liability Filed no return Inform taxpayer of available credit if zero liability return is filed (telephone or Letter 4349C )
    Taxpayer states no liability Sends a zero liability return Process the return using the appropriate procedures. The available credit will refund once the return posts
    Taxpayer states no liability Sends a Form 843 Route Form 843 to Accounts Management
  4. Default return posted, Non-Statute year, payment more than 2 years old:

    If And Then
    Taxpayer states no liability Filed no return Inform taxpayer of available credit if zero liability return is filed (telephone or Letter 4349C )
    Taxpayer states no liability Sends a zero liability return Process the return using the appropriate procedures. The available credit will refund once the return posts.
    Taxpayer states no liability Sends a Form 843 Route Form 843 to Accounts Management
  5. No Default return posted, statute year, payment more than 2 years old:

    If And Then
    Taxpayer states no liability Filed no return Input TC 59X CC 008 and TC971-296. If no return was filed, then the taxpayer can file a return and refund claim simultaneously to get a refund limited to payments made in the last 3 years. For example, if pre-paid tax and filed a return 2.5 years after the return due date, then can file a return 2.5 years late and get refund of all pre-paid credits. Taxpayers should not be told that statute has expired if they can still receive a refund by filing a return.
    Taxpayer states no liability Sends a zero liability return Process the return using the appropriate procedures.
    TP states no liability Sends a Form 843 Route Form 843 to Accounts Management.
  6. No Default return posted, statute year, payment more than 2 years old:

    If And Then
    Taxpayer states no liability Filed no return Input TC 59X CC 008 and TC971-296. If no return was filed, then the taxpayer can file a return and refund claim simultaneously to get a refund limited to payments made in the last 3 years. For example, if pre-paid tax and filed a return 2.5 years after the return due date, then can file a return 2.5 years late and get refund of all pre-paid credits. Taxpayers should not be told that statute has expired if they can still receive a refund by filing a return.
    Taxpayer states no liability Sends a zero liability return Process the return using the appropriate procedures.
    TP states no liability Sends a Form 843 Route Form 843 to Accounts Management.
A6020b Incoming Phone Calls
  1. Some taxpayers will respond to the 1085 letter by calling the A6020b toll-free telephone number indicated on the 1085 letter. Important steps to provide quality taxpayer assistance on phone calls include the following:

    • When speaking with a taxpayer, always identify yourself by title and last name or first name, and employee identification number (aka badge number).

    • Complete disclosure verification of taxpayer or taxpayer representative.

    • Provide accurate and complete assistance and/or appropriately refer the taxpayer to another source, if required.


    The purpose of disclosure is to verify the identity of the caller to insure the caller is authorized to receive account information. In order to complete a disclosure check, verify the following information:

    • Employer Identification Number (EIN)

    • Person's complete name and title (see below determining the business entity)

    • Business name (doing business as for sole proprietors/partners)

    • Mailing address


    If the taxpayer is unable to provide the correct EIN, business name or mailing address, request additional taxpayer authentication as discussed in para (5) below.
    Determine the business entity by researching the filing requirements on CC ENMOD. The chart below lists the business entity, authorized person(s), and filing requirements for each type of entity but a business is not limited to these and may have additional return filing requirements:

    Business Entity Authorized Person(s) Filing Requirements
    Sole Proprietorship The person listed first on the account. If two names are listed, the second name is not authorized. A sole proprietorship is restricted to the person obligated to file the return and pay the tax.

    Note:

    The denial of access applies even if the spouse or employee signed the return in error.

    Either Form 941, Form 944 and Form 940.

    Note:

    A Form 943 could also be required in addition

    Partnership A member of the partnership during any part of the period covered by the return. Both general and limited partners are entitled to request and receive partnership returns and return information. Form 1065
    Corporation Corporate officers or any employee who signed the return on behalf of the corporation and is still in the same position. Any corporate officer or employee authorized by the corporation in accordance with applicable state law to legally bind the corporation.

    Note:

    The denial of access applies even if the spouse or employee signed the return in error.

    Form 1120 > 01
    S-Corporation Shareholders during any part of the period covered by the return. Form 1120 >02
    Exempt Organization A person legally authorized to act for the organization Form 990, Form 990C or Form 990T
    Estate Administrator, executor, or trustee. Any heir at law, next of kin, or beneficiary may also receive returns and return information. Form 1041
    Trust Trustee(s) jointly or separately. Any beneficiary of a trust may receive returns and return information of the trust. Form 1041
    Government Agencies: Returns and return information of a federal, state or local government agency may be disclosed to any person legally authorized to act for such agency. Generally, verification that the requester is a government official, such as a director of taxation or personnel, will be sufficient. Intentionally left blank
    Indian Tribal Government Tribal council members and other officials of Federally recognized Indian tribes and Alaskan native villages Intentionally left blank
    Deceased Taxpayer The administrator, executor, or trustee of an estate, any heir at law, next of kin, beneficiary under the will, or a donee (recipient) of property Intentionally left blank
    Limited Liability Company (LLC) Depends on how the company conducts the business and what type of classification they elected. A more detailed description is below. Intentionally left blank


    A Limited Liability Company (LLC) is a business structure allowed by the state statute. LLCs are popular because, owners have limited personal liability for the debts and actions of the LLC. Owners of an LLC are called members. The member(s) has no personal liability for debts or claims against the entity. The IRS uses tax entity classification, which allows the LLC to be taxed as a corporation, partnership, or sole proprietor, depending on the elections made by the LLC and the number of members. An LLC is always classified under federal law as one of these types of taxable entities. The business must elect how it will be classified for federal tax purposes: as a corporation, a partnership, or an entity disregarded as separate from its owner.

    If classification elected is: Then:
    Partnership The authorized person is a member of the partnership during any part of the period covered by the return.
    Single Member owned by an individual The authorized person whose name is listed on the account as the single member
    Single Member owned by a business entity.
    Example: If the LLC is owned by the Flamingo Corp., follow the rules of disclosure for corporations.
    The authorized person is any corporate officer or any employee who signed the return on behalf of the corporation and is still in the same position. Any corporate officer or employee authorized by the corporation in accordance with applicable state law to legally bind the corporation


    Prior to January 1, 2009, when a single member LLC is disregarded then two EINs are assigned. Single member LLC(s) that is disregarded may report the employment taxes under the LLC EIN or EIN of the owner, The taxpayer can choose the primary EIN to use to file employment taxes

    If the taxpayer chooses to use: Then:
    Owner’s EIN to file employment taxes The LLC’s EIN assigned is used just for banking purposes or because the state requires another EIN.
    LLC’s EIN to file employment taxes The owner’s EIN assigned is used for cross-referenced purposes.


    After January 1 ,2009, when a single member LLC is disregarded a LLC EIN is assigned as the primary EIN, then either another EIN is assigned or the SSN/ITIN is used to determine who is responsible for federal tax filing. However, the employment taxes must be reported under the LLC EIN.

    If the taxpayer chooses to use: Then:
    Owner is an individual and responsible for all federal income tax filing The cross-referenced SSN or ITIN is used for cross-referenced purposes.
    Owner is a business entity the owner(s) are responsible for all federal tax filing The EIN assigned is used for cross-referenced purposes.
  2. Disclosure verification of taxpayer representatives with Power of Attorney. To verify the caller is an authorized Power of Attorney (POA) or Third Party representative of the taxpayer, research CC CFINK. A complete disclosure check is required. In order to complete a disclosure check for a third party, verify the following information:

    • Third party's name

    • Third party's rep. or CAF number

    • Tax form(s) and period(s) in question

      Note:

      Provide information to the representative only on Form(s) and period(s) listed on CC CFINQ or unprocessed Form 2848 or Form 8821

    • Follow the IF/And/Then chart below for additional circumstances:

      IF And Then
      If a customer is submitting an original Form 2848 or Form 8821 or if the customer says they have previously submitted an authorization A search of CC CFINK does not show the POA/TIA loaded to CAF Accept a completed "unprocessed " paper or faxed copy of the third party authorization as valid and provide immediate assistance.
      Perform the same authentication process for paper or faxed authorization as you would for an authorization already on file.
      Forward the original unprocessed paper or faxed copy of the Form 2848 or Form 8821 to the appropriate CAF unit for processing.
      f it is less than two weeks from the date the POA/TIA was submitted, treat the form as classified waste. Do not forward the POA/TIA to the CAF unit for processing.
      If the caller does not have his/her CAF number available The caller can verify his/her name and street address, city, state and zip code Provide the CAF number shown on CC RPINK or CC CFINK to the caller and the requested tax information
      If the caller does not have his/her CAF number available The caller is unable to verify his/her name and street address, city, state and zip code Do not provide the CAF number or tax information
  3. Disclosure verification of taxpayer representatives with oral authorization. The taxpayer or an authorized Power of Attorney can give formal permission via oral statement to allow disclosure of tax information to a third party.
    If authorization is given:

    • Ensure the taxpayer wants IRS to have a continuing dialog with the designated third party until the tax matter is resolved.

    • Inform the taxpayer that all relevant tax return information may be disclosed to the authorized third party in order to resolve the tax issue.

    • Oral disclosure consent expires after the account issue(s) are closed; i.e. the module no longer meets IDRS retention criteria.


    Use CC ACTON, and the following format, to record the history items on each tax module (TXMOD) only when there will be a continuing dialogue:

    • H, --- Activity code ORADISCLO

    • H, --- First name of designee

    • H, --- last name of designee

    • H, ---Telephone # without hyphens of designee

  4. Disclosure verification of taxpayer's third party designees. To verify the caller as a third party designee, research on CC TXMOD, BMFOL, RTVUE, BRTVU, TRDBV, CFINK or RPINK and have them verify the following:

    • Taxpayer's name

    • Taxpayer's TIN

    • Tax period

    • Form(s)


    Validate the identification provided by the third party designee with the posted data using the following procedures:

    1. TIN - research using CC ENMOD or INOLE

    2. PTIN - research using CC TXMOD, BMFOLR, RTVUE or BRTVU to ensure they match

    3. If caller states that his/her PTIN is lost, forgotten or never received, have the caller contact the vendor at:
      Primary toll-free: 1–877–613–7849
      TTY: 1–877–613–3686
      International callers: 1–915–342–5655 (non toll-free)
      available Monday - Friday 8:00 AM to 5:00 PM CST


    The third party designee may discuss account related issues, but keep the following in mind:

    • Third party designee authority is limited to the specific tax form and period of the return, and is limited to issues involving processing of that specific return.

    • They do not allow the designee to bind the taxpayer to a particular course of action, or to make a commitment on behalf of the taxpayer.

    • May not discuss collection or examination proceedings (e.g., issues that are beyond return processing)

    • The designation expires one year after the due date of the return in question. Extensions of time to file a return do not extend the third party designation period.

      Note:

      there are no exceptions or extensions to the expiration date of the third party designation period.

    • A TC 971 with Action Code (AC) 263 changes the third party designee indicator to “0” indicating a revocation.

    • The third party designee authority expires with the taxpayer’s date of death

  5. Additional taxpayer authentication. For other conditions in which additional authentication are warranted, using the list below, verify two or more additional items from the taxpayers return or account.

    • Year EINr was established

    • Payment amounts and/or dates of payment

    • Taxpayer’s SSN (except on Corporations)

    • Amount of income reported on taxpayer's Form W-2

    • Employers shown on taxpayer's Form W-2

    • Financial institutions from taxpayer's Forms 1099–INT or Forms 1099 DIV

    • Number of exemptions claimed on last return or on return in question

    • Preparer, paid/unpaid, if any

    • Expected refund amount (within $100.00) unless computed by IRS

    • Any other verifiable items form the return/account

  6. Non- authorized callers. Callers who are not authorized to receive tax information or who cannot complete the disclosure check can be given non-specific information including:

    • Cause of notice without addressing specific tax form(s) or period(s)

    • general procedures needed to resolve a situation

    • Other Information that is generally available to the public. Accept information from any third party even if the provider of the information does not have a written or oral authorization from the taxpayer. Generally, this means any information that can resolve the account issues, but not an address change. Do not advise any third party who does not have written or oral authorization of any account information or resolution.

  7. Do a full compliance check and address all open modules on the A6020b system:

    IF Then
    Taxpayer states no employees during the period in question Input TC 590 CC 008 to IDRS on each module not liable.
    Taxpayer states business is closed Input TC 591 CC 008 on IDRS on the earliest period closed; close all necessary filing requirements; input date business closed and/or date wages last paid using CC ENMOD
    Taxpayer states return(s) will be filed History AMS "TP2FILE" Input date if taxpayer provides the date of when they will file for each tax period ;
    Taxpayer states return was filed under a different Employer Identification Number (EIN) Verify the returns(s) have been filed under the new EIN; if the taxpayer filed only for the tax periods addressed on the 1085 letter input TC 590 CC 008 on these modules; if the EIN on the 1085 letter is no longer liable input TC 591 CC 008 to the earliest not liable period to close the filing requirements
    Taxpayer states no liability and A6020b return posted to the account Input TC 590 CC 008 or TC 591 CC 008 to IDRS depending on the response; address all filing requirements if the business is closed; input closing date on ENMOD; input TC 291 adjustment using figures from TXMOD to remove all tax and wages; use blocking series 18 and source document (telephone contact sheet) only the last adjustment input; reference the source doc. Other adjusted periods; use appropriate Item Reference Numbers, hold code 0 and priority codes as needed; input a STAUP for 6 cycles on any module in status 21 or 58, if in status 22/24/26 input TC 470.
    Caller states they are not associated with the business and they do not have a current address for the business Request the caller send back the 1085 letter package with correspondence explaining the situation
    The business is not liable and there is a credit(s) on the module; and the taxpayer states the credit(s) on the account is intended for a different type of tax period or EIN Transfer the credits(s) or payment(s) to the applicable tax period or EIN.
    The business is not liable and there is a credit(s) on the module; and the taxpayer states they want a refund of the credit(s) Explain they must file Form 843 claim within two years of the payment(s) date or file $0.00 return indicating "Not Liable"
    If the taxpayer states the payment does not belong to them and /or tax examiner is unable to determine who made the payment Input TC 971 AC 296 to identify that all necessary research was completed and provides an audit trail for future reference.
    Taxpayer requests additional time to file Explain that we can not allow an extension of time to file. The estimated returns are prepared by an automated system. If we do not receive the taxpayer’s return within 45 days from the 1085 letter date then the estimated returns will automatically be processed. If the estimated return is processed before we receive the taxpayer’s return, once we receive the taxpayer’s returns, we will adjust the figures accordingly.
    Taxpayer requests copy of a previously filed return Explain to request a copy of their return they must complete Form 4506 or we can provide a record of their account.


    If the taxpayer has questions that are not related to A6020b refer them to:

    Department Phone Number Issues
    Customer Service 1–800–829–0115 BMF How to fill out forms, payment questions, setting up payment plans, and account questions
    Business and Specialty Tax 1–800–829–4933 For technical and entity questions
  8. Documentation on phone call history sheet (only if case becomes correspondence)

    1. The following items are required on the phone call history sheet:
      • Date the call received
      • Employer Identification Number
      • Callers name and position
      • Indicate all forms, and tax years addressed
      • Description of issues(s) and resolution discussed

    2. The following are required on the phone call history sheet when applicable:
      • New or updated phone number for the business
      • New or updated address for the business
      • Date business closed (DBC)
      • Date wages last paid (DWLP)
      • Taxpayer filing under a new Employer Identification Number (EIN)

  9. The following items are required on AMS narrative screen:

    • Disclosure Verified (DV)

    • Indicate all forms and tax years addressed (only if multiple tax periods are addressed)

    • Description of issue(s) and resolution discussed

    • DBC if applicable

    • DWLP if applicable

    • Taxpayer filing under a new EIN

    • Description of issues(s) if referred to another phone number

Business Entity, Authorized Persons
  1. Determine the business entity by researching the filing requirements on CC ENMOD. The chart below lists the business entity, authorized person(s), and filing requirements for each type of entity but a business is not limited to these and may have additional return filing requirements:

    Business Entity Authorized Person(s) Filing Requirements
    Sole Proprietorship The person listed first on the account. If two names are listed, the second name is not authorized. A sole proprietorship is restricted to the person obligated to file the return and pay the tax.

    Note:

    The denial of access applies even if the spouse or employee signed the return in error.

    Either Form 941, Form 944 and Form 940.

    Note:

    A Form 943 could also be required in addition

    Partnership A member of the partnership during any part of the period covered by the return. Both general and limited partners are entitled to request and receive partnership returns and return information. Form 1065
    Corporation Corporate officers or any employee who signed the return on behalf of the corporation and is still in the same position. Any corporate officer or employee authorized by the corporation in accordance with applicable state law to legally bind the corporation.

    Note:

    The denial of access applies even if the spouse or employee signed the return in error.

    Form 1120 > 01
    S-Corporation Shareholders during any part of the period covered by the return. Form 1120 >02
    Exempt Organization A person legally authorized to act for the organization Form 990, Form 990C or Form 990T
    Estate Administrator, executor, or trustee. Any heir at law, next of kin, or beneficiary may also receive returns and return information. Form 1041
    Trust Trustee(s) jointly or separately. Any beneficiary of a trust may receive returns and return information of the trust. Form 1041
    Government Agencies: Returns and return information of a federal, state or local government agency may be disclosed to any person legally authorized to act for such agency. Generally, verification that the requester is a government official, such as a director of taxation or personnel, will be sufficient. Intentionally left blank
    Indian Tribal Government Tribal council members and other officials of Federally recognized Indian tribes and Alaskan native villages Intentionally left blank
    Deceased Taxpayer The administrator, executor, or trustee of an estate, any heir at law, next of kin, beneficiary under the will, or a donee (recipient) of property Intentionally left blank
    Limited Liability Company (LLC) Depends on how the company conducts the business and what type of classification they elected. IRM 5.18.2.4.6.6.1.1, Limited Liability Company. Intentionally left blank
Limited Liability Company
  1. A Limited Liability Company (LLC) is a business structure allowed by the state statute. LLCs are popular because, owners have limited personal liability for the debts and actions of the LLC. Owners of an LLC are called members. The member(s) has no personal liability for debts or claims against the entity. The IRS uses tax entity classification, which allows the LLC to be taxed as a corporation, partnership, or sole proprietor, depending on the elections made by the LLC and the number of members. An LLC is always classified under federal law as one of these types of taxable entities. The business must elect how it will be classified for federal tax purposes: as a corporation, a partnership, or an entity disregarded as separate from its owner.

    If classification elected is: Then:
    Partnership The authorized person is a member of the partnership during any part of the period covered by the return.
    Single Member owned by an individual The authorized person whose name is listed on the account as the single member
    Single Member owned by a business entity.
    Example: If the LLC is owned by the Flamingo Corp., follow the rules of disclosure for corporations.
    The authorized person is any corporate officer or any employee who signed the return on behalf of the corporation and is still in the same position. Any corporate officer or employee authorized by the corporation in accordance with applicable state law to legally bind the corporation


    Prior to January 1, 2009, when a single member LLC is disregarded then two EINs are assigned. Single member LLC(s) that is disregarded may report the employment taxes under the LLC EIN or EIN of the owner, The taxpayer can choose the primary EIN to use to file employment taxes

    If the taxpayer chooses to use: Then:
    Owner’s EIN to file employment taxes The LLC’s EIN assigned is used just for banking purposes or because the state requires another EIN.
    LLC’s EIN to file employment taxes The owner’s EIN assigned is used for cross-referenced purposes.


    After January 1 ,2009, when a single member LLC is disregarded a LLC EIN is assigned as the primary EIN, then either another EIN is assigned or the SSN/ITIN is used to determine who is responsible for federal tax filing. However, the employment taxes must be reported under the LLC EIN.

    If the taxpayer chooses to use: Then:
    Owner is an individual and responsible for all federal income tax filing The cross-referenced SSN or ITIN is used for cross-referenced purposes.
    Owner is a business entity the owner(s) are responsible for all federal tax filing The EIN assigned is used for cross-referenced purposes.
Closing Actions for Telephonic Contacts
  1. Do a full compliance check and address all open modules on the A6020b system:

    IF Then
    Taxpayer states no employees during the period in question Input TC 590 CC 008 to IDRS on each module not liable.
    Taxpayer states business is closed Input TC 591 CC 008 on IDRS on the earliest period closed; close all necessary filing requirements; input date business closed and/or date wages last paid using CC ENMOD
    Taxpayer states return(s) will be filed History AMS "TP2FILE" Input date if taxpayer provides the date of when they will file for each tax period ;
    Taxpayer states return was filed under a different Employer Identification Number (EIN) Verify the returns(s) have been filed under the new EIN; if the taxpayer filed only for the tax periods addressed on the 1085 letter input TC 590 CC 008 on these modules; if the EIN on the 1085 letter is no longer liable input TC 591 CC 008 to the earliest not liable period to close the filing requirements
    Taxpayer states no liability and A6020b return posted to the account Input TC 590 CC 008 or TC 591 CC 008 to IDRS depending on the response; address all filing requirements if the business is closed; input closing date on ENMOD; input TC 291 adjustment using figures from TXMOD to remove all tax and wages; use blocking series 18 and source document (telephone contact sheet) only the last adjustment input; reference the source doc. Other adjusted periods; use appropriate Item Reference Numbers, hold code 0 and priority codes as needed; input a STAUP for 6 cycles on any module in status 21 or 58, if in status 22/24/26 input TC 470.
    Caller states they are not associated with the business and they do not have a current address for the business Request the caller send back the 1085 letter package with correspondence explaining the situation
    The business is not liable and there is a credit(s) on the module; and the taxpayer states the credit(s) on the account is intended for a different type of tax period or EIN Transfer the credits(s) or payment(s) to the applicable tax period or EIN.
    The business is not liable and there is a credit(s) on the module; and the taxpayer states they want a refund of the credit(s) Explain they must file Form 843 claim within two years of the payment(s) date or file $0.00 return indicating "Not Liable"
    If the taxpayer states the payment does not belong to them and /or tax examiner is unable to determine who made the payment Input TC 971 AC 296 to identify that all necessary research was completed and provides an audit trail for future reference.
    Taxpayer requests additional time to file Explain that we can not allow an extension of time to file. The estimated returns are prepared by an automated system. If we do not receive the taxpayer’s return within 45 days from the 1085 letter date then the estimated returns will automatically be processed. If the estimated return is processed before we receive the taxpayer’s return, once we receive the taxpayer’s returns, we will adjust the figures accordingly.
    Taxpayer requests copy of a previously filed return Explain to request a copy of their return they must complete Form 4506 or we can provide a record of their account.


    If the taxpayer has questions that are not related to A6020b refer them to:

    Department Phone Number Issues
    Customer Service 1–800–829–0115 BMF How to fill out forms, payment questions, setting up payment plans, and account questions
    Business and Specialty Tax 1–800–829–4933 For technical and entity questions

A6020(b) Status Codes

Status Code Status Name
001 INSUFFICIENT DATA FOR SYSTEMIC CALCULATION
002 AUTOMATED CASE
003 COMBO CASE, EXPEDITE
004 HOLDING FOR -O, -C FREEZES
005 RESERVED
006 RESERVED
007 HOLDING STATUS
008* CASES WITH -L FREEZE
009* CASES WITH -Z FREEZE
010 US Territories and Possessions
011 RESERVED
012 RESERVED
013 RESERVED
015 MODULES WITH MFT 14 AND NO CREDIT AMOUNT
019 READY FOR MAIL-OUT
020 1085 PACKAGE ORDERED
021 1085 PACKAGE PRINTED
022 RESERVED
023 DEFAULT RETURN ORDERED
024-030 RESERVED
045 RESERVED
050 TEMP HOLD FOR UNDELS W/NEW ADDRESS
060 RESERVED
090 CLOSED OTHER ACTION/AREA
091 RESERVED
092 RESERVED
093 NON-WORKABLES
094 TC591-08 NO LIABILITY DETERMINATION
095 TC590-08 NO LIABILITY DETERMINATION
096 TC150, TC610, OR TC599-09 SECURED RETURN
097 TC593-08 UNDELIVERABLE
098 TC599-08 DEFAULT ASSESSMENT
099 CASE CLOSED, 1 YEAR
100 CASE CLOSED, 2 YEARS
101 CASE CLOSED, READY FOR ARCHIVING
700 ERROR-INVALID TDI STATUS CODE
701 ERROR-INVALID 6020b MODULE INDICATOR
702 ERROR-TRANSACTION CODE NOT NUMERIC
703 ERROR-INVALID TAX PERIOD DATE
704 ERROR-INVALID TRANSACTION CODE 592
705 ERROR-INVALID TRANSACTION CODE 594
800 REJECT-ACCOUNT TO BE REASSIGNED
850** B1 TICKLER CASES (TDIs only needing reassignment)
860** B2 TICKLER CASES (Combo w/TDAs needing reassignment
*status produces output file to SIA for posting to IDRS
**status produces output file to IDS for Tsign change

A6020(b) 1085 Letter

INTERNAL REVENUE SERVICE SB/SE Internal Revenue Service Ogden, UT 84201-0048 Department of the Treasury Employer Identification Number: Forms: Tax Period(s) Ended:
Dear [Name]: Person to Contact: A6020(b) Representative Contact Telephone Number: 855-814-5755 (6 am - 4 pm Mountain Time) Fax Number: 855–235–8842
We have reviewed your tax records and found no record of you filing the tax returns identified above. We believe you are liable and have prepared a tax return for the tax period(s) in question. If you agree that the tax liability shown is correct, please sign each form and return it to us. If you do not agree with our findings, you have 45 days (90 days if this letter is addressed outside the United States) to do one of the following:
1. Prepare and sign tax returns which you believe show your correct tax liability and return them to us (if you choose to file a Form 940 claiming a reduced rate of assessment you must attach a copy of the state certification showing the amount of contributions paid or the return may be processed at the standard unemployment tax rate of 6.2%); or
2. Mail us any additional information you would like us to consider; or
3. Request a conference.
WHAT WILL HAPPEN IF YOU DO NOT RESPOND TO THIS LETTER? The Internal Revenue Code Section 6020(b) gives us the authority to prepare and file tax returns on your behalf. Therefore, if we do not hear from you within 45 days from the date of this letter (90 days if this letter is addressed to you outside the United States), we will process the enclosed tax returns that we have prepared for you. You will then be billed for the amount of tax due, plus any additional penalties and interest. You need to check your records to ensure that all tax returns you are liable for have been filed.
If you have any question and want to call us, please use the telephone number shown above and a representative will be able to help you. Since there will be a long distance charge to you if you are beyond the immediate dialing area of the service center, you may prefer to write to us. If you write, please include your telephone number and the most convenient time to call you in case we need more information. Your appeal rights are explained in the enclosed Publication 5.
  Sincerely yours, Collection Operations Manager
Enclosures: Completed Tax Returns Appeal Rights (Publication 5) Envelope Letter 1085 (A6020(b)) (Rev. 02-05)

Pub 5

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