5.19.6  ACS Support (Cont. 1) 
TDA/TDI Correspondence  (10-31-2014)
Screening/Scanning Incoming Mail

  1. You will receive taxpayer inquiries that are not asking for research, abatements, or information. These cases will be resolved by screening the cases when first received, within 24-48 hours. The following are examples of situations that require expeditious processing, this list is not all inclusive:

    • If the account is in R2 or S7 (Taxpayer Advocate) forward to ACSS TAS Liaison.

    • If the correspondence indicates any of the following: bankruptcy, in tax court , insolvency, or deceased, batch for immediate assignment.

    • If in S8 (Collection Due Process inventory) or Form 12153 , Request for a Collection Due Process or Equivalent Hearing is attached, forward to the CDP Department.

  2. Other correspondence may be attached to notices, quick notes, or levy responses. These cases may require some research such as sending the taxpayer an account summary, account balance, or verifying a payment. Correspondence must be placed in AMS by taxpayer TIN. AMS will control the case in IDRS and send the interim as necessary. Assign the case to S4 using "TOS4,60,CORR" . Some types of correspondence received may request or indicate the following:

    • A request for an account summary and/or account balance.

    • A request for an installment agreement, promise to pay in the future, or states currently making payments. - including submitting a Financial Statement.

    • TP refuses to pay.

    • A claim for refund.

    • A request for abatement of tax, penalty and interest.

    • Indicates the account is in bankruptcy or will be filing bankruptcy.

    • Indicates the taxpayer does not understand or disagrees with an additional assessment (Exam, AUR, ASFR/SFR, etc.).

    • Indicates the taxpayer is deceased or incarcerated

    • Indicates the taxpayer is not liable, no longer in business, or a defunct corporation.

    • A request to release a Levy or Notice of Federal Tax Lien (NFTL)

    • A request to search for a missing payment.


    Check the envelope for possible discovered remittance following the instructions in IRM, Discovered Remittances.

  3. Correspondence must be placed in AMS by taxpayer TIN. AMS will control the case in IDRS and send the interim as necessary.

  4. Assign the case to S4 using "TOS4,60,CORR" .

  5. When performing the First Read screening process on taxpayer correspondence and the account reflects the BOD is not the same as your site (e.g., SB/SE receives correspondence but BOD indicator is WI) route the taxpayer correspondence to the appropriate ACSS Site for that BOD. Send an 86C letter to inform the taxpayer the case has been transferred to another site - provide the site information in the letter.

  6. If the BOD changes after the case has been assigned to a Direct OFP or if the BOD has changed since being assigned from First Read (e.g., SB/SE to WI), the ACSS Site will retain the correspondence to work to resolution. Do not route the correspondence to the other Site/BOD to process.  (06-17-2014)
Wrongful Levies

  1. A wrongful levy is one that resulted in the remittance of property (e.g., a bank account) to which the taxpayer has no rights.


    A levy source has paid funds to the Internal Revenue Service from an account of a non-liable party.

  2. If the proceeds have not been forwarded, the levy should be released and no claim for refund processed. Follow the levy release procedures outlined in IRM, Levy Release: General Information .

  3. Refer to IRM, Wrongful Levies, for additional processing procedures.  (06-17-2014)
Erroneous Levy, Reimbursement of Bank Charges

  1. Policy Statement P-5-39 provides the Service reimburse taxpayers for bank charges that result from erroneous levies. In addition to the bank's fee for processing levies, this includes charges for overdrafts directly caused by the levy. The claim must be filed with the Area Director or Field Director, Compliance Services who issued the levy, within one year after the expense accrues.

  2. The following must be met in all cases:

    • The Service must have caused the error.

    • The taxpayer must not have contributed to continuation or compounding the error.

    • Before the levy was issued, the taxpayer must have responded timely to any contact and provided requested documentation sufficient to establish his/her position.

  3. If the claim is valid, it may take 2 to 4 weeks for a refund of the bank charges after the claim is received by the IRS Finance Center in Beckley, WV (BFC). BFC will not notify Compliance Services that the claim has been paid.

  4. Processing Claim:

    If Then
    Taxpayer files a claim on Form 8546 within 1 year from the date of the bank charges. Claim cannot exceed $1,000 and must have a valid signature.
    Joint bank account levied. Both taxpayers must sign Form 8546.
    Any information is missing; signature, copy of levy, proof of bank charges, Form 8546. Return claim to taxpayer requesting missing information.
    The claim doesn't meet criteria Send brief disallowance letter indicating reason for denial.


    When the original claim is returned to the taxpayer as incomplete, the taxpayer should be given a specific deadline to re-submit the requested information, not to exceed 21 days. A copy of the Form 8546 should be retained in a suspense file until the taxpayer returns the requested information or the deadline to respond has lapsed.

  5. ACS and IDRS Research - in most cases the account will no longer be on ACS because it has been paid in full. If the account is not on ACS, make prints of all ACS archive screens. Review the activity on ACS to determine when and why the levy was issued. Research IDRS/ACS to determine if reimbursement should be granted based on:

    • Adjustments made to the account that would have delayed or negated the levy.

    • Transactions that would have caused the levy to have been issued in error.

    • Letters or open controls that could have affected the levy issuance.

    • The LT11 was not issued or the levy was issued before the 30 day time frame for the LT11 has elapsed.

    • The taxpayer paid the liability, but the payment was not credited properly to the account.

    • The taxpayer contacted the IRS for an installment agreement and was not processed.

    • The taxpayer contacted ACS and was given time to pay the account, but a levy was issued before the deadline expired.

  6. Preparing the Case File - Prepare a memo for the approving official explaining the facts of the case that led to the levy, include any documentation that confirms or contradicts the taxpayer's statement. Each folder must have a file control sheet attached to the front of the folder showing the received date, the taxpayer's name, address, form, tax period, amount of the claim and the employee's profile number. This form will be used to file the folder when the case is completed.


    Authority has been delegated to second level supervisors grade GS-13 or above in all Operating Divisions and the Taxpayer Advocate Office and may not be redelegated. See Delegation Order 1.4, found in IRM

  7. As of May 1, 2007 claims under $1,000 (small claims) are processed and paid by IRS Finance Center, Beckley, WV under authority granted by the Bureau of Fiscal Service (BFS) . FMS Form 197, available on the FMS web page, http://fms.treas.gov/judgefund/forms.html is used to transmit claims to BFS for processing.


    Do not use Form 197-A always use Form 197.

  8. Approved Claims:

    If Then
    The claim is allowed in full Complete Form 197. Send claim directly to IRS Finance Center, Beckley, WV using Correspondex Letter 2180C with Form 8546 , Claim for Reimbursement of Bank Charges, Form 197 and Form 3210 , Document Transmittal, for processing. Send Correspondex Letter 2179C to taxpayer advising the claim has been processed and it will take approximately 2 to 4 weeks to complete.
    The amount claimed is different from amount allowed. Form 197 must be prepared in triplicate and sent to the taxpayer for signature using letter 2179C. The taxpayer must sign and return two signed copies to IRS.
    The signed Form 197 indicates the taxpayer has accepted the change in the money amount. Prepare Correspondex Letter 2180C and send to IRS, Finance Center, Beckley WV with a Form 3210 for processing.
  9. Each Form 197 sent for processing must be numbered with a unique claim number consisting of the campus acronym (e.g. PSC ACS) followed by the processing year and sequential number 01, 02, etc. Each office will maintain a log sheet of assigned numbers.


    PSC ACS 2001 -- 01, PSC ACS 2001 -- 02, etc.

    These forms will be forwarded to Beckley on Form 3210. Enter the claim number in the form's Transmittal Code block. If more than one Form 197 is forwarded on the Form 3210, list each of the corresponding claim numbers on the Form 3210 and also enter the first one in the Transmittal Code block.  (01-01-2015)
Reimbursement of Bank Charges Due to Direct Debit Installment Agreement Processing Errors

  1. On January 13, 2011, the Deputy Commissioner for Services and Enforcement amended Policy Statement 5-39, Reimbursement of Bank Charges Due to Erroneous Levy and Service Loss or Misplacement of Taxpayer Checks, or Direct Debit Installment Agreement Processing Errors. The amendment to Policy Statement 5-39 (P-5-39) added claims for reimbursement of bank charges incurred due to IRS processing errors on Direct Debit Installment Agreements (DDIA). The Commissioner revised Delegation Order (DO) 1-4 (Rev. 1) to allow first level managers in IRS Operating Divisions to consider, ascertain, adjust and determine under 31 USC § 3723 claims for reimbursement of bank charges arising out of Direct Debit Installment Agreement (DDIA) processing errors.

  2. If the IRS did not process the DDIA in accordance with IRM, DDIA, or IRM, Direct Debit Installment Agreement - Form 433D, Installment Agreement and Form 9465, Installment Agreement Request, the taxpayer may be entitled to reimbursement of their bank fees that were not reversed by the bank. DDIA processing errors are identified if the following criteria are met:

    1. The Service failed to act timely, took an incorrect or improper action, or a systemic failure caused the bank fees;

    2. The taxpayer must not have contributed to the continuation or compounding of the error that caused the bank fees; and

    3. Prior to the processing error, the taxpayer did not refuse (either orally or in writing) to timely respond to the Service's inquiries or provide sufficient information for the DDIA processing change to be made.

  3. Form 8546, Claim for Reimbursement of Bank Charges, must be signed by both taxpayers if joint return. Form 8546 should be math verified to ensure the taxpayer is ONLY claiming the amount of bank charges shown on bank statements that are a result of a Service DDIA error. If the claim amount is incorrect or the taxpayer has included an erroneous debit in the amount, request an amended Form 8546 from the taxpayer. Acceptable verification includes bank statements showing the bank charges and copies of bank statements for each subsequent month showing the bank charges were not reversed up to the filing of the claim; or a statement from the bank stating the charges have not been and will not be reversed by the bank. The statement needs to be on the bank's official letterhead.

    • If the facts indicate bank fees are a result of a DDIA processing error, systemic error, or the Service failed to process the request/change within IRM guidelines/timeframe, document the case facts and/or reason for recommendation to reimburse.

    • If the facts indicate the Service did NOT err and/or the DDIA request was processed within IRM guidelines/timeframe, document the case facts and/or reason for recommendation to disallow claim for reimbursement.

  4. The Kansas City (KC) ACSS function will make a determination to allow or deny the claim. If approved, KC ACSS will forward Financial Management Services (FMS) Form 197, Judgment Fund Voucher for Payment, to Beckley Finance Center (BFC). Approved claims may take 4 - 6 weeks before the taxpayer receives the reimbursement check if they did not request Direct Deposit. The KC ACSS function will update AMS with action(s) taken.

  5. If the claim is denied, KC ACSS will issue a denial letter as to the reason the claim was denied. There are no Appeal Rights for these claims.

  6. Claims must be made within one year of the date the bank fees were debited to the taxpayers account and are limited to $1000 (See 31 USC § 3723.)

  7. Occasionally, the IRS may erroneously debit a taxpayer's bank account. Erroneous debits include IRS initiated duplicate debit entries, debit entries in an amount greater than authorized by the taxpayer under the DDIA.

  8. If the IRS erroneously debits the taxpayer’s bank account in violation of the DDIA, and the taxpayer does not seek reimbursement directly from his bank then the IRS must return the erroneous payment to the taxpayer. Thus, once an erroneous debit has been identified, and the IRS has confirmed that the taxpayer is not seeking reimbursement from his bank, the IRS should immediately take steps to return the erroneously debited funds using manual refund procedures. See IRM, Manual Refund Procedures.


    In order to initiate the return of the erroneous debit, all that needs to be established is that the debit entry is erroneous. The taxpayer does not need to establish hardship or any other criteria. However, if the taxpayer instructs the IRS to apply the erroneous debit entry to the tax liability, the IRS may follow the taxpayer' instruction.

  9. For further information on processing Form 8546 , IRM, Erroneous Levy, Reimbursement of Bank Charges.  (10-05-2012)
Closed Case Assembly

  1. Clip together all materials associated with the case, including correspondence being sent to the taxpayer.

  2. Include OFP code, date closed and IDRS tax examiner number on all work. For Levy Responses only, include this information on the cover/quality review sheet.

  3. Ensure all items to be routed are properly addressed, e.g., routing slips, envelopes, buck slips.

  4. Place all loose envelopes to be mailed at the front of the closed folder to ensure proper mailing.

  5. Keep individual programs separate in your closed case folder.

  6. All items that are to be destroyed, should be clearly marked. For processing of Levy Responses only, rather than marking each response as destroyed, the cover sheet should be clearly notated "DESTROY" or similar.  (07-12-2004)
Stripping of Closed Work Folders

  1. Stripping of closed work will be conducted by designated area after the work has been subjected to Quality Review.

  2. Place all re-routes in appropriate mail buckets in the Control & Support area.

  3. Place all work marked to be destroyed in designated classified waste container.

  4. Route adjustment folders as directed.

  5. Place envelopes in designated out going mail container.

  6. Return any questionable items to tax examiner, e.g. original documents, birth and death certificates and tax returns containing original signatures.

  7. Items not clearly marked for disposition should be returned to the originator.

  8. Once closed folders are stripped, return to appropriate team.  (10-15-2010)
LP Responses Overview

  1. Third party correspondence consists of responses to letters sent to third parties, requesting information to locate the taxpayer and their assets. The information received is input to ACS.

  2. The following responses are worked according to 3rd party procedures:

    • LP 47, Address Information Requests (sent to Post Office)

    • Form 4759 , Request for Additional Information from the Post Office (seeks street address)

    • LP 61, Please Provide Information on the Named Person (sent to potential employer)

    • LP 62, Please Give Us Some Information (sent to potential financial institution)

    • LP 64, Please Help Us Locate a Taxpayer (sent to other third party)


      See IRM 5.19.5-4, ACS Letters (Reference: IRM and throughout the entire IRM 5.19.5), for complete letter content.  (08-02-2011)
LP Responses Procedures

  1. Access the account on ACS. Input any pertinent information on the case in history and if needed in AMS narrative using standard ACS Abbreviations per IRM 5.19.5-6, Standard Abbreviations for Use in Account Management Services, AMS and/or ACS (Reference IRM

  2. "OALP" is used for the history updates with the literal LPxxY or LPxxX, where the "xx" refers to type of LP letter (e.g. 47, 61, etc.). The "Y/X" indicates if pertinent information was given or not. "Pertinent information" must be entered in AMS narrative which includes:

    • Potential new address, home, or work phone number to contact the taxpayer.

    • Potential new employer, employer address, or work telephone numbers

    • Potential contacts of people who may be able to locate the taxpayer.

    • Whether the 3rd party is responsible for paying the taxpayer money for work, contracts, pensions, or unearned income, and type of income.

    • Whether the taxpayer is employed by or has an account with the 3rd party.

    • If the taxpayer is hospitalized, incapacitated, or other information that will affect the taxpayer's ability to respond/pay.

    • Any other information that can help locate the taxpayer.

    • If 3rd party provides no information, notate that LP letter was returned with no information.


      When you encounter a 3rd party reply that states that the taxpayer is deceased or bankrupt, sort, and work under R4 procedures.  (10-15-2010)
LP 47 Decision Chart

  1. Use the following decision chart to determine correct action:

    If Then
    Mail is delivered to address given Enter "ADRSD AS GVN and first 4 characters of address in query" in AMS narrative.
    Taxpayer not known at address given Enter "UNK and first 4 characters of address in query" in AMS narrative.
    Taxpayer moved and left no forwarding address Enter "MLNFA and first 4 characters of address in query" in AMS narrative.
    "No such address" Enter NS ADRS and first 4 characters of address in query in AMS narrative.
    States something other than above Enter the information.

    Enter OALP,##,LP47Y for the history (Y per comments entered). The fill-in "##" refers to the number of days entered for the follow-up date.  (10-15-2010)
Form 4759

  1. Enter information provided by the post office into AMS narrative. Enter OALP,##,F4759Y, for the history (Y per AMS narrative).  (10-15-2010)
LP61 & LP62

  1. Refer to the levy response instructions for levy deletion codes and for guidelines concerning pertinent information to be documented in the AMS narrative.

  2. If the levy source refuses to provide information notate the reasons and other pertinent information in AMS narrative.

  3. Use the appropriate levy deletion codes per IRM, Next Action After Levy Response , when deleting the levy source. On ACS Web Levy screen, use history code, where "nn" refers to number of the levy being deleted, "#" refers to the single digit levy deletion code and "NMCL" refers to the name control of the levy source.
    LP 61 Decision Chart

    If Then
    Response is from an employer or wage source and states no longer employed, no record, no account, or company out of business.
    1. Delete levy source. See IRM, .

    2. Add any new information that the levy source provides to AMS narratives. See note following chart for special address update cycle considerations.

    3. Update ACS Web history. See ACS history codes, IRM 5.19.5–7, ACS History Codes (Reference IRM

    Response is from a financial institution or source other than "wage" such as "interest" and states no longer employed or no record of employment .
    1. Do not delete the levy source.

    2. If levy source provides new or corrected name, address or phone number information, update/revise the ACS Web Levy detail screen as the system allows. If the system will not allow the changes, enter the information in AMS narrative.

    3. When any levy source information is updated on the ACS Web Levy screen, update the levy source cycle by selecting "Yes" or "Reconf" as appropriate on the ACS Web Levy detail screen and clicking on "Modify" .

    4. Add any new information provided by the levy source to the AMS narrative.

    5. Update ACS Web History. See ACS History Codes, IRM 5.19.5–7.

    Response from a financial institution or source other than "wage" such as "interest" and states account closed or no record.
    1. Delete the levy source. Per IRM Even though the LP61 for wage source was sent, an appropriate response was received based on the income source.

    2. Add any new information that the levy source provides to AMS narrative.

    3. Update history on ACS Web history.

    Response states taxpayer employed with levy source.
    1. If the levy source provides new or corrected name, address or phone number information, update / revise the ACS Web Levy detail screen as the system allows. If the system will not allow the changes, enter the information in AMS comments.

    2. Update the ACS Web Levy detail screen by selecting "Yes" or "Reconf" as appropriate and clicking on "Modify" .

    3. Update the work telephone number on ACS Web if this information is provided by the employer.

    4. Add any other new information provided by the levy source to the AMS narrative.

    5. Update ACS Web history.


    Check the address update cycle on ENMOD. If the taxpayer's address has been updated since the last date of employment:
    • Do not enter any potential new taxpayer addresses
    • Enter a potential new home phone number given if the taxpayer still lives in at least the same city or state.
    • Enter potential new contacts, employers, or work numbers which are still good possible sources of information.

    LP 62 Decision Chart

    If ... Then ...
    Response is from a financial institution and states no account, no record, or account closed.
    1. Delete levy sources. See IRM

    2. Add any new information that the levy source provides to the AMS narrative.

    3. Update ACS Web history.

    Response is a financial institution and states that the taxpayer has an open account, no fund, or an overdrawn account.
    1. Do not delete levy source.

    2. If the levy source provides new or corrected name, address or phone number information, update /revise the ACS Web Levy detail screen as the system allows. If the system will not allow the changes, enter the information on AMS.

    3. Update the ACS Web Levy detail screen by selecting "Yes" or "Reconf" as appropriate and clicking on "Modify" .

    4. Add any other new information provided by the levy source to the AMS narrative.

    5. Update ACS Web history.  (10-15-2010)
LP 59

  1. LP 59 responses are to be considered levy responses and worked according to the procedures in IRM, Procedures for Levy Responses.  (10-15-2014)
Levy Responses

  1. All Levy Responses are processed directly through the Levy Response ACSWeb application. Only employees profiled on ACS for "S4" will have access to this ACSWeb application.

  2. The ACSWeb application eliminates the need for employees to manually update the account with levy response information. Account action histories, case reassignments, follow-up actions and the posting of comments are all systemically generated based on employee entries within the application.

  3. Potential taxpayer information may be provided by the levy source on the responses. Use the "Comments Section" to enter the information. Click on the "Add Comments" to submit the information which will update immediately on ACS>

    • Potential new addresses, telephone numbers and new/different employers are to be entered into the specified fields on the Levy Response Information Screen.

    • Additional potential information should be entered in the "Comments field" . This information can include, but is not limited to, levy source not sending funds at this time but will in the future, funds will start on a specific date (add date), taxpayer is in furlough but expected to return, date of death (also click "TP Deceased" box) etc.

  4. If the response indicates the taxpayer is deceased, check the "TP Deceased" box and press the "TOR4 Update" button. This will immediately reassign the account to the R4 inventory on ACS.

  5. When a "No Funds" response is received and the levy source may be productive in the future, enter the first five (5) characters of the levy name in the "OADT,NO Funds" box and press submit.

  6. When a levy response with remit is received, check the “With Remit” box and press submit. This will generate systemic analysis during the overnight processing for possible generation of NC09, LP68, and/or transfer to a different function unit.

  7. If a levy source is not good then delete the levy by clicking on "View Levies" . Select the appropriate radio button related to the appropriate deletion reason next to the applicable levy source and press submit. The levy source will be immediately deleted on ACS and display the applicable Levy Deletion Code. Only issued levy sources will be displayed on this screen. Choose the appropriate radio button fitting the levy response:

    • NOA - No Account

    • NLE - No Longer Employed

    • NF - No Funds (levy source will not be productive in the future)

  8. Various pre-defined literals and deletion codes are systemically generated based on employee entries on the Levy Response Information screen and the radio button selected on the Levy Response Date screen.

  9. When an account is accessed on ACS and states "097 Archive Account" , the only action required is to delete the appropriate levy when applicable (no longer employed, no account, etc.) AMS and/or ACS documentation is not required.

  10. When an account is accessed on ACS and states "001 Account Not on ACS" , no action is required. AMS and/or ACS documentation is not required.

  11. When this application is not available, levy response will be processed through ACSWeb or ACS Green Screen following the procedures in IRM, Procedures for Levy Responses.

  12. Report time and volume using OFP 810-64141.  (07-01-2013)
Internal Correspondence

  1. Sometimes while processing ACS correspondence, it becomes necessary to contact another area or campus to ensure proper resolution of the taxpayer's account. Some areas will have "internal use only" phone numbers that can be used to quickly resolve issues (check SERP under the "Who and Where" tab for the area you need to contact). When an account inquiry can be completed online, there is no need for written documentation except when specifically required in the IRM instructions. If this option is not available a written referral is used.

  2. A written referral is a standard way of exchanging information. An inquiry is generally written up as a referral when the following conditions exist:

    • The inquiry requires additional research or information to provide the taxpayer with a complete and accurate response.

    • The action to be taken needs to be completed by another site or function.

    • The account is controlled to the Taxpayer Advocate Function or some other area that takes precedence.

  3. Because it is important that these contacts are done in a consistent and professional manner, various forms are available. The type of referral will determine which form is used. These forms are used to share information, so you may be the initiator or the recipient. The forms are routed through the clerical unit, sorted and batched to the contact area. Below are the written referral forms most commonly seen in ACS Support:

    • Form 4442 , Inquiry Referral.

    • Form 3870 , Request for Adjustment.

    • Form 4159 , Payment Tracer Request.


      Form 4442, Inquiry Referral, is available for on-line input through AMS.

  4. IAT tools simplify processing by assisting the user with IDRS research and input. The tools also reduce the chance of errors and improve productivity. When an action must be taken and an IAT tool is available, ACSS employees with access to IAT tools are required to complete the action using the IAT tool. See IRM, Mandated IAT Tools for ACS Support, for a list of mandated IAT tools. Document the tool used and the results in AMS comments.


    If an IAT tool is not functioning properly or it is determined not to be appropriate for a specific situation, the case should be worked using IDRS. For more information on each tool as well as job aid for each tool, see http://iat.web.irs.gov/

    .  (06-17-2014)
Form 4442, Inquiry Referral

  1. Form 4442 is used for most written referrals, unless the area being contacted has another specific form that must be used. ACS Support uses this form for general written inquiries to other areas, such as:

    • to request CP 2000, Request for Verification of Unreported Income, Payments, or Credits or certified listings from outside your home campus

    • to expedite information about bankruptcies to the proper area, or

    • to refer information to another tax examiner.

  2. A complete and correctly prepared Form 4442, Inquiry Referral is essential for the resolution of a taxpayers' inquiry. Referrals must be legible and contain sufficient detailed information to allow the receiving function or office to identify the taxpayer's issue and the reason for the referral.

  3. Do not use ACS abbreviations.

  4. When initiating Form 4442, be sure to complete Part 1, Part 2, numbers 8 through 24 and Part 3, Section B.

  5. If you are the recipient of Form 4442, in addition to taking the required action you may also be required to complete Part 3, Sections A & C and respond to the taxpayer/initiator.


    Refer to IRM 21.3.5 for line by line instructions for completing Form 4442.  (10-15-2010)
Form 3870, Request for Adjustment

  1. This form is specifically used by the field function to request an adjustment to an account.

  2. Form 3870, Request for Adjustment will be received requesting full or partial tax adjustments or penalty abatements. It must include specific information as to the modules involved and the reason for the adjustment or penalty abatement. If the form is unclear, or doubt exists to the correctness of the request, contact the originator for clarification.

  3. If an adjustment to tax is required, follow the appropriate procedures in the following IRMs:

    • IRM 21.5, Account Resolution

    • IRM 21.6, Individual Tax Returns

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


    Use the Form 3870 as your source document.  (10-15-2010)
Form 4159, Payment Tracer Request

  1. Form 4159, Payment Tracer Request, is used to request payment tracer action. This form can be initiated in ACS Support. Follow procedures in IRM 21.5.7, Payment Tracers  (10-15-2010)
Third Party Upload - Manual Input Required

  1. This list is generated weekly and is downloaded to Control-D. The remarks section displays ACRW5300 and the Job Name is ACJWA531. It identifies cases where the ACS system upload of ACS LV/LP actions as stated in IRM, Notification of Third Party Contact, was not attempted because the name line discrepancy (NL) indicator was set. That means that there are differences in the name lines among the tax modules. In these situations, the system currently cannot match names and modules to ensure that it is reported accurately.

  2. For each entity, the list shows the edited TIN, name control, the LV/LP History Code and definer, and the contact date.

  3. TIN access each case on ACSWeb and review the ACS Modules screen for name line discrepancies - focusing on the name line for each module.

  4. Prepare Form 12175, Third Party Contact Report Form, as necessary using instructions in IRM

  5. Route completed Forms 12175 as stated in IRM

  6. This list should be completed within one week of receipt.

  7. The completed list should be retained for internal quality review purposes; afterwards, it may be destroyed.  (07-01-2013)
Systemic Upload of ACS Transactions

  1. Some ACS closing actions are systemically read and transaction codes created to post to Master File via the Standardized IDRS Access (SIA). This process eliminates the need for a CSR to toggle to IDRS to enter closing information. The following action history entries are analyzed for systemic upload:

    1. TFRO with definer 6501 or 6566.

    2. TFQU transfer to Collection queue (TFQU 7000)

    3. Transfer to ASFR (TFQU 8000)

    4. RDxx (return delinquency closing TC59x)

    5. NCxx (currently not collectible TC530)

  2. If the transaction can be created electronically, the transaction code, closing code and/or TFQU is created and posted to IDRS. The employee number on electronically created transactions is all 8's (88888888).

  3. Items that are not electronically created are treated as paper action requests.

  4. ACS lists are:

    • Service Center Error List (ACRW 1501)

    • ACS Diagnostic List (ACRW 8001)

    • ACS-IDRS Balance List (ACRD 7301)

  5. Some transactions may not be processable once electronically created and will appear on the ACRD5301 - ACS Transactions IDS Upload Error Report.

  6. IAT tools simplify processing by assisting the user with IDRS research and input. The tools also reduce the chance of errors and improve productivity. When an action must be taken and an IAT tool is available, ACSS employees with access to IAT tools are required to complete the action using the IAT tool. See IRM, Mandated IAT Tools for ACS Support, for a list of mandated IAT tools. Document the tool used and the results in AMS comments.


    If an IAT tool is not functioning properly or it is determined not to be appropriate for a specific situation, the case should be worked using IDRS. For more information on each tool as well as job aid for each tool, see http://iat.web.irs.gov/


  7. Charge time spent to 810-64500 and take a point of count for each case reviewed by a tax examiner.  (10-15-2010)
Processing the SC Error List (ACRW 1501) and the SC Diagnostic List (ACRW 8001)

  1. IDRS Control Group lines out some of the accounts on the service center error list. The remaining Z2 (TDA) and Z3 (TDI) records will be processed by ACSS.

  2. Process the Z2 and Z3 records per (3) through (8) below.

  3. Research IDRS for the MFT, tax period, balance due, DOAO, TSIGN, and IDRS status.

  4. Enter History Code TFQU if one of the following:

    1. IDRS shows more modules with ACS indicators than are present on ACS.

    2. ACS has more modules than IDRS has ACS indicators and the error record has no ACS indicator.

  5. Process accounts from which IDRS shows the same number of modules with ACS indicators as are present on ACS as follows:

    1. Enter the changed data shown on IDRS into the ACS comments field.

    2. Enter OADT,07 to allow the weekend update to correct ACS.

  6. Forward ACS accounts for which IDRS shows no modules with ACS indicators to the manager for removal. Input ACS History Code ZAP1.

  7. Process ACS accounts for which IDRS shows no data available as follows:

    1. Use CFOL CC IMFOL/BMFOL to request the account from the MF.

    2. If the account has satisfying transaction codes posted (full paid, CNC etc.) ask the manager to remove the case from ACS.

    3. Input ACS History Code ZAP1.

  8. Process accounts which do not have a satisfying transaction posted as follows:

    1. Input CC MFREQ to establish the account on IDRS.

    2. Notify the IDRS control group of the problem.

  9. Z4 records can be ignored as they do not affect the creation of levy sources to the database. Contact your HQ analyst when there are high volumes of Z4 records on the ACRW1501 report.

  10. Note the action taken on the listing and retain for six months.  (10-15-2010)
IDRS/ACS Balance List 7301

  1. One list is printed for the purpose of resolving mismatched between IDRS and ACS. It is: ACRB7301, Missing ACS Account Report (modules on IDRS but not on ACS).

  2. The list must be run and processed weekly.


    Working these mismatch lists at frequent intervals helps prevent inappropriate actions when ACS has not received proper updates from IDRS. It may help identify other system problems.

  3. The reason for the discrepancy between ACS and IDRS is identified on the list. The balancing looks at TIN, name control, AOTO, branch group, employee code, MFT, Tax period and TDA/TDI indicator.

  4. Research each TIN on ACS and IDRS that appears on the report.

    1. If the case meets tolerance criteria, input a TC530 CC09.

    2. If there is no account on ACS, enter ASIGN(I)(B) 7000 on IDRS to reassign the case to the queue, or if one of the exceptions in Exhibit 5.19.5-9, Field Queue Bypass Criteria (Reference IRM, is present, have a manager enter the direct field assignment on IDRS.

    3. If the account is on ACS, compare the open modules. If there is any module open on IDRS with and ACS indicator that is not open on ACS, enter TFQU, or forward the case to a manager to enter TFRO if the case meets one of the exceptions in Exhibit 5.19.5-9.

    4. If there is no mismatch, take no action.  (07-08-2008)
ACS Transactions IDS Upload Error Report - ACRD 5301

  1. Error report ACRD 5301 is a daily report that identifies entity and modular conditions that mismatch with the records on IDRS or the transaction code/closing code is invalid. The errors can be from IDS as well as weekly systemic removal of aged cases. The following error codes require 100% review. Other error codes can be ignored as they do not effect the creation or posting of the transaction.

  2. Error Code 6 - Invalid Name Control - name control on ACS does not match name control on IDRS.

    • Research IDRS to determine if module(s) are still on IDRS. If so, enter closing transaction(s) directly to IDRS.

    • Request manager to ZAP account from ACS.

  3. Error Code 8 - Update Invalid - Memo Account/Module - Account re-sequenced to a new TIN.

    • Research IDRS for the new TIN

    • If account is on ACS under new TIN, enter the transaction and closing code directly to IDRS.

    • ZAP the account under the old TIN.

  4. Error Code 7 - Account/Module not on IDRS 0- ACS did not receive earlier closing record(s) from IDRS. ZAP account from ACS.

  5. Error Code 30 - Invalid Closing Code - the requested closing code is not valid with requested transaction code.

    • If the closing code is 39 (systemic removal of aged cases) enter a new action code on ACS for transfer to queue (TFQU).

    • For all other transaction codes review AMS narratives and or action history fields to see if the correct transaction code and closing code was entered when the action history was requested. Reenter the closing transaction directly to IDRS using CC REQ77; the account should drop from ACS after the transaction has posted.  (10-15-2010)
Excess Levy Source List

  1. The Excess Levy Source List is generated for ACS accounts that have all 15 levy source fields full and additional levy sources are passed from IDRS.

  2. The list downloads onto Control D weekly. The remarks section displays ACRW7007 and the job name is ACJWA720.

  3. Review the lists and, if it provides potentially more productive levy source(s), delete any existing low potential source(s) and add the new source(s). See IRM, Levy Sources and ACS Display , for information about levy priorities and display order.

  4. If the list contains more levy sources than space permits, document the additional source(s) in AMS narrative.

  5. Do not add levy sources to ACS that we are prohibited from issuing. See IRM

  6. See IRM, Adding Levy Sources to ACS , for procedures on adding levy sources to ACS.  (01-31-2012)
Adding Levy Sources to ACS

  1. When adding levy sources to ACS based on the Excess Levy Sources Listings, the following procedures must be followed to ensure that the type of levy source income is properly identified.

  2. The following fields must be entered when adding levy sources to ACS:

    1. The type of income. See (3) below to determine the type of income to enter.

    2. Who the income is for: Primary, Secondary or Joint.

    3. If the income is for secondary taxpayer, the secondary SSN must be entered.

    4. Levy source EIN if present on listing.

    5. Enter: "INFO" if "INFO-ONLY-IND" value is a "1" , otherwise leave field blank.

    6. 1st name line.

    7. 2nd name line, if present on listing.

    8. Street address.

    9. City, State and Zip.

  3. Use the following table to determine the type of income to enter based on the values contained in the SRCE TYPE code and the DOC TYPE CD.

    Enter TYPE of income as: When "SRCE TYPE CODE" is: or "DOC TYPE CD" is:
    Wages 006  
    Interest 000 A
    Other   X
    NONEMP 021  
    1099R 128  
    Fishing 023  
    Rent and Royalty 024/025  


    Must be input as "INFO"

    Currency Transaction (CTR) 066/087  
    1041 Passive Income 144  
    1041 Business Income 050  
    Medical Payments 022  
    1099K 300  (06-17-2014)
Undeliverable Mail

  1. Undelivered (UD) mail is any letter, notice or other correspondence that was sent to a taxpayer or third party and subsequently returned to us with an indication that the address to which the mail was sent is no longer valid.

  2. A visual sort of the UD mail must be performed to separate UD notices that have specialized processing (e.g., UD NFTL Notices, UD Levy Releases, UD ACS TDI Notices (W & I ), etc.).

  3. UD mail processing is generally done at the clerical level.

  4. UD mail that contains a USPS Yellow label must be processed using procedures in IRM

  5. The returned mail must be processed through one or more of the following systems.

    1. ADR (Address Research System for letters with a 12-digit bar code). The ADR system initiates automated research for new addresses. ACS notes are input by the Inventory Delivery System (IDS).

    2. AMS narratives are input for non-scanned UD mail if the case is no longer on ACS.

    3. ACSWeb history is input for UD levy, releases, and LP/LT Letters.


      Certified, Return Receipt Mail delivery status updates IDRS with the appropriate TC 971 code (AC 066; 067; 068; 069) via a system implemented July 2007 by CPS on LT11s.

  6. All UD Correspondex Letters initiated by ACS and ACSS will be processed by ACSS employees. Use OFP 810-64900 to report hours and volume.

    1. Research IDRS to check if the address was recently changed or is in a pending status. If the address was updated or pending, re-issue the correspondex letter and document AMS.

    2. If no new address or pending change, destroy correspondex letter and update AMS comments

    3. If there is a USPS forwarding address label, follow the USPS yellow label directions in IRM, Undelivered (UD) Mail Procedures, 3rd If/And/Then section - USPS Yellow Label Indicates forwarding address.

    4. If the account is on ACS, check and adjust the follow-up date as appropriate. Enter "OAUD,xx,####UDA" when the Letter # has more than 2 characters. (e.g., "OAUD,45,2272MAI" )


      #### = Letter # and UDA = 1st three characters of the UD Address.  (11-04-2013)
Non-Scanned UD Mail (ACS Input)

  1. Manually process ACS Undelivered mail that cannot be processed through the ADR system.

  2. When returned mail indicates "Deceased" , reassign the case to R4 inventory for processing. Document AMS history.


    If the returned mail is a 2268C letter, ACSS will batch and work the correspondence using guidance in IRM, Deceased Taxpayers.

  3. When the UD mail is a Notice of Levy or LP letter to the levy source, forward to the NLS Coordinator.

  4. For all other UD mail, process as follows:

    If Then
    UD mail is a Form 8519 (taxpayer's copy of Levy)
    • Input pertinent information to AMS history.

    • Maintain the follow-up date. Enter "OAUD,XX,8519UDA" .

    UD mail is an "LP" letter, other than those to the levy source.
    • Input pertinent information to AMS history.

    • Change the follow-up date to the following day using "OAUD,01,LP##UDA" .

    All other non-scanned mail to the taxpayer (includes ALP CP9X UD Mail).
    • Input pertinent information to AMS history.

    • Change the follow-up date to the following day by entering "OAUD,01,LT##UDA" or "OAUD,01,####UDA" when the letter # has more than 2 characters



    UDA = 1st three characters of the UD address.

  5. If all necessary information is in AMS history, comments are not required. Any useful information including:

    1. Potential new addresses.

    2. Potential new phone numbers.

    3. The levy source is out of business.

  6. UD mail entered on the ACS system is generally worked under OFP code 790-64901. UD mail researched and processed by a TE is generally worked under OFP 810-64900.  (12-02-2008)
Undeliverable Levy Releases

  1. There may be an occasion when a levy release is undeliverable. All undeliverable levy releases, LP68’s and/or Form 668D’s require immediate account research to prevent potential harm to the taxpayer and/or over collection on a full paid account.

  2. Forward undeliverable Levy Releases, Form 668D, Release of Levy / Release of Property from Levy prepared by the field, to the Revenue Officer (RO) using the return address information on the levy release.

  3. All undeliverable levy releases must be worked within 24 hours of receipt in ACS Support.

  4. A review of the account is needed to determine whether:

    • Payments are still being received.

    • If partial levy release, do the payments posting on account after the partial release was issued reflect the partial release?

    • subsequent contact was made by the taxpayer for fax levy release

  5. Follow the instructions in the table below to determine if a new levy release must be sent.


    If the prior levy release was a partial release but levy payments continue to arrive, a new partial release may be required.

    If account review reveals Then
    • Payments continue to be received

    • No subsequent contact with taxpayer and

    • No indication that a subsequent release of levy was faxed or mailed within the last four weeks.

    Research the NLS database for levy source fax or phone number.
    • If a fax number is found, fax (partial, if applicable) levy release immediately.

    • If a fax number is not found but a phone number is, call the levy source to secure a fax number and fax (partial, if applicable) the release immediately.

    • If neither a fax nor a phone number is found, call the taxpayer to secure a fax number for the levy source.

    • If taxpayer provides the fax number, fax (partial, if applicable) the levy release immediately.

    • If the taxpayer needs to call back to provide a fax number, update the AMS history to indicate which levy source requires a fax levy release and that the taxpayer will call back with the fax number.

    • If the taxpayer is not available by phone, mail the levy release, (partial, if applicable) to the taxpayer and document AMS history that levy release was mailed to taxpayer.

    • Proceed to IRM, Undeliverable Levy Procedures for All ACS Support Employees.

    • Payments continue to be received

    • Levy release was issued within the past 4 weeks to a different address for the levy source or was faxed to levy source.

    • Update AMS history to reflect levy release dated mm-dd-yyyy was received undeliverable. (mm-dd-yyyy = actual date of issuance of levy release.)

    • Proceed to IRM

    • No additional payments have been received

    • Update AMS history to reflect that the levy release dated mm-dd-yyyy was returned.

    • Proceed to IRM

  6. After ensuring the levy has been released, employees need to take the following steps to perfect the levy source address for the ud mail.

    Step Check: If Then:
    #1 Address of UD levy release with address on ACS Levy source is no longer on ACS Forward the UD Levy release to NLS Coordinator for research on the NLSD.
    #1 Addresses are different Destroy the UD levy release.
    Addresses are the same Proceed to step 2.
    #2 NLS Match indicator NLS = Y Forward the UD Levy release to NLS Coordinator for research on the NLSD.
    NLS = N Destroy the UD levy release.  (11-04-2013)
Undeliverable Levy Procedures for All ACS Support Employees

  1. Alpha sort all undeliverable levies.

    • Contact HQ Levy Analyst when 25 or more undelivered levies exist for one source, if not previously elevated or addressed.

    • Research all undelivered levies for big known employers


      Federal Agencies, UPS, KFC, Wal-Mart Etc.

  2. Access account on ACS.

    • When the account is on archive only, no further action is necessary on UD levy.

    • Prior to re-issuing any levy, review ACS Comments, AMS history, account alerts, and history codes for anything that may affect the levy decision.

    • If levy will not be issued because of pending case actions, update the levy source address on ACSWeb and remove the date in the ISSUED box on ACSWeb detail levy screen.

    • When ACS research shows that the levy source was previously deleted, do not re-add the levy source for re-issuance.

    • When the account is still on ACS take the following actions:

    Step Check: If Then:
    #1 Address UD levy with address on ACS Addresses are different Forward to NLS Coordinator for research on NLSD.
    Addresses are the same Proceed to step 2.
    #2 NLS Match indicator NLS = Y Forward UD Levy to NLS Coordinator for research on NLS.
    NLS = N Proceed to step 3.
    #3 PRD Earned (See IRM, Levy Sources and ACS Display , for more information)) Current year and NLS = N
    • Research for better address for levy source and if found reissue levy.

    • If new address not found delete levy source.

    • Update AMS comments.

    Current year and NLS = Y
    • Reissue levy.

    • Update AMS comments.

    Not current year. This means the PRD Earned field is more than 2 years prior to current year. Proceed to step 4.
    #4 Check CCIRPTR for current year IRP information. Is UD levy listed as a source of income for the current year? Yes
    • Research for better address. If found, reissue levy

    • Input comments to indicate reissuing levy to new address.

    • Delete the levy source from ACSWeb.

    • Update AMS comments: UD levy, no new address found.

    • Depending on what caused multiple undelivered levies, i.e.: 25 or more, corrective actions may vary. HQ will assist in corrective actions required.

    • Do not re-add levy sources if they have been deleted.


    Multiple undelivered levies was caused by incorrect entry on NLS, sources on ACS all have NLS match ind = Y. NLS entry is subsequently updated, undelivered levies should be reissued.

  3. Use OFP 810-64142 to report time and volume when processing UD Levies, except those worked by the NLS Coordinator.  (10-05-2012)
Procedures for Validating and Updating Levy Source Information

  1. This section provides procedures for validating levy source address information and adding or editing information on the National Levy Source Database (NLSD). Updates can be the result of undelivered (UD) levies, levy releases, Form 4442, Inquiry Referral, and LP letters issued to levy sources.

  2. Prior to adding new information to NLS, the NLS Coordinator will:

    1. Attempt to contact the levy source to secure an address for levy processing and the levy source EIN. If the levy source is a bank, attempt to secure the bank routing number also.

    2. Research IDRS to locate a new address for levy source and to verify the EIN for the levy source.

  3. When phone contact is unsuccessful and a new address is provided by the U.S. Postal Service (USPS), accept that address as a valid address and input to NLS database.

  4. If an address is not provided by USPS, research for a valid new address and locate an EIN for the levy source. Once an address/EIN is located, edit or input the EIN, name line and address in the NLS database.

  5. In the NOTES box on NLS, input the date, site and initials of the person who updated the levy source on NLS.


    Do not place notes in any other field on the NLS database other than the NOTES box.

  6. Sub Key Programming:

    • #00 is used to ensure that text clarifying how or where to apply a levy shows at the top of the listing, just under the principal name line, in the new National Levy Source Look-UP (NLS-Lookup). Use #01 the #02 up ro #99 to show clarifying text. The #00 must be three spaces with a space before the beginning of the text as in #01 States of MD, OH, SD etc. The #01 will not show up on the National Levy Source Look-up.


      Bank of America sends levies to three different places dependent upon in which state the taxpayer resides. Each of the three sites has #00 text to indicate which states belong to that particular Bank of America address.

    • "-" is used in front of an entry in the sub key area. This entry will ensure that the item does NOT appear in the National Levy Source Look-up (NLS-Lookup).

  7. Update the levy source on ACS and re-issue the levy.

  8. If a new address or EIN cannot be located for the UD levy, forward the levy to HQ Analyst.

  9. Report time and volumes using OFP 810-64304.  (10-15-2014)
Undeliverable Notice of Federal Tax Lien (NFTL)

  1. Employees receiving notices returned as undelivered must research the notice within fourteen (14) calendar days from the date received in ACSS to determine if a more current address is available for re-issuance of the notice.

  2. Research the UD NFTLs through IDRS, ALS, and AMS:

    • Due to redaction of the TIN on the NFTL notice, use IDRS or ALS to locate the correct taxpayer TIN.

    • After locating the taxpayer's TIN, verify the address on IDRS.

    • If the address on IDRS is different than the address on the CDP notice, compare the cycle of the address on IDRS with the cycle date the NFTL was requested.

    • Consider the CDP notice correct if the address on IDRS was the last known address of the taxpayer at the time the NFTL was requested.

    • Review AMS history to see if a new address was provided or updated the same day the NFTL was requested.


    Requested is defined as the date of the FM10 (ACS action history) or date of AMS history indicating the NFTL was requested (NFTL was not filed via ACS action history FM10).

  3. UD NFTLs with a foreign address do not have a certified mail number to input into the NOTADD screen. International taxpayers certified mail is issued using a registered mail number. Therefore, additional research on ALS is necessary to identify the correct number to access the account through NOTADD. Use the following steps, as identified in the ALS User Guide, Chapter 7, RRA Notices, under the "Processing Returned Mail (Undeliverable/Unclaimed/Refused)" Section, to locate the correct number in order to process this type of UD NFTL:

    1. Log on to Research Screen on ALS

    2. Type in "S" for SLID

    3. Type in the SLID of the UD NFTL

    4. Notate the TIN on UD NFTL

    5. Type "4 " for Court

    6. Type "7" for Notice

    7. Notate the Certified mail Listing number from the screen. This number is needed to research and process the UD NFTL.

  4. If the UD NFTL was returned with an indication the taxpayer is deceased, originally sent to a fiduciary, or was issued with deceased in the name line, check IDRS for an updated address. If the address on IDRS is the same as the returned notice, no further research is necessary. If the address was not sent to the last known address, follow (5) below.

  5. If it is determined the notice was not sent to the last known address as defined above, the employee must issue a new notice to the correct address using NOTADD. The ALS User Guide provides instructions for issuing a new notice using NOTADD in Chapter 7, RRA Notices. The ALS User Guide can be located at http://mysbse.web.irs.gov/Collection/collsystems/als/userguide/default.aspx


    If a different address is found on IDRS but was effective after the NFTL was requested, do not issue a new notice.

  6. If the reissued CDP notice is returned, there is no need for additional research because the reissued notice was mailed to the last known address at the time, based on prior research.

  7. For all undelivered NFTLs, a TC 971 Action Code 253 must be input using the ALS NOTADD screen. The ALS User Guide provides instructions to update the delivery status (Undelivered - systemic generations of TC 971 AC 253). Refer to Chapter 7, page 11, for step-by-step guidance.

    REMINDER: ACSS is only required to process Undeliverable NFTLs and does not work the Refused and Unclaimed NFTL Notices.

  8. If the account is still open on ACS, input the following ACS action histories upon completion of research:

    1. "OAUD,nn,RECmmdd" and


      mmdd = the ACS Support Received Date of the UD NFTL. For example, UD NFTL was received in ACS Support on June 28, 2013. ACS Action history code would be "OAUD,01,REC0628"

    2. "OADT,nn,UD3172R" when notice is reissued or "OADT,nn,UD3172" when notice is not reissued.


    nn = "00" if the case follow-up date is expired or the number of days until the current follow-up date if not expired.


    If the case is in "F" function and the follow-up date is beyond your ability to input, use "OAUD,01,RECmmdd" and "OADT,01,UD3172" to let the system re-analyze the account.

  9. If the account is no longer on ACS, document AMS histories using the AMS Issue - LIEN, with the necessary information regarding the UD NFTL including that the UD NFTL mail was received, the ACSS received date from the batch sheet, type(s) of research completed, and whether or not the notice was reissued.

  10. Destroy any other type of returned CDP notices. Example: refused or unclaimed. Do not take a point of count for these types of notices.

  11. Charge time spent on this program to OFP 790-64903. Take a point of count for each undeliverable NFTL notice processed.  (04-30-2012)
FERDI - F9 Inventory Processing

  1. The F function has been designated for FERDI cases in ACS.

  2. The F9 inventory is used to house FERDI correspondence (paper) cases.

    REMINDER: Do not remove FERDI cases from F inventory unless specifically directed.

  3. FERDI cases can be identified by the literal "FE" on the ACS Entity screen and/or "Federal Employee" in the Alerts section of the AMS Summary screen. See IRM for additional ways to identify FERDI cases.

  4. FERDI correspondence is worked following the same guidance as non-FERDI correspondence. When processing is completed, reassign the case with the appropriate follow-up timeframe as follows:

    1. If FPLP payments are being received, move to F2.

    2. If taxpayer is subject to FPLP, but FPLP payments have not started, move to F1.

    3. If taxpayer is not subject to FPLP (e.g., active or retired military), move to F5.


    Only two ACSS inventories will remain in S inventory upon receipt: CDP Requests will continue to be assigned to S8 inventory and TAS OARs/hold requests will continue to be assigned to S7. After completing the necessary actions on these two specific case types, the accounts must be assigned to F1 inventory.


    Pending Installment Agreements meeting the criteria in IRM will be assigned to R6 inventory.

  5. Follow procedures in IRM, Processing S4 Inventory, when processing expired follow-ups. Substitute F9 for any reference to "S4" .

  6. FERDI Large Dollar (LG$) cases are worked by the FERDI ACS Site (Jacksonville ACS). Related FERDI LG$ correspondence is worked by ACS Support. After processing FERDI LG$ correspondence, reassign all cases "TOF7,00,CRBUR" for credit bureau research.  (01-31-2012)
K Inventories - SB/SE Only

  1. The K Inventory will be used by SB/SE ACS and ACSS employees.  (01-31-2012)
K1 - Reserved

  1. This inventory is reserved.  (01-31-2012)
K2- Reserved

  1. This inventory is reserved.  (06-19-2012)
K3 Inventory - Return Preparer Misconduct

  1. K3 inventory is used to house Return Preparer Misconduct cases which require follow-up actions.

  2. See IRM, Return Preparer Misconduct for guidance on processing these types of cases, including expired follow-ups.  (11-04-2013)
K4 through K9 Inventories - Reserved

  1. This inventory is reserved.  (10-15-2014)
M Inventories - W&I Only

  1. The M Inventory will be used by the W&I ACS and ACSS employees.

  2. When processing the M Inventory, any accounts that must be referred to a managerial function "0" , use "M0" in lieu of "S0" .  (06-17-2014)
M1 Inventory - Manual Accurint Locator Research and Determination

  1. M1 inventory is used by WI ACS Support to house stand-alone TDI cases that have been processed through the Locator GII application. Accounts that have been processed using the Locator GII application will be identified with “LOCDONE”.

    1. Accounts that do not have a history “LOCDONE” will require Accurint research to be completed. These accounts will require manual processing as the automated GII application is not able to identity the correct taxpayer. Accurint batch requests return information on the wrong person which the program recognizes because the name returned on Accurint does not match the name on the ACS account.

    2. The accounts with LOCDONE will require the closing actions to be taken.

  2. Check Accurint for locator information as described in IRM, I2 - Accurint Research, with the following modifications:

    1. If a new address is found, issue an overlay letter to the possible address. If no new telephone number is found, update the case to M1 with an appropriate follow-up date for closure once the letter follow-up time has expired.

    2. If a new telephone number is found, update the ACS home number field and move the account TOC8 with the next day follow-up for a predictive dialer outcall attempt.

    3. If no additional information is found, make a case closure determination.


      For TDI accounts, follow I5 procedures in IRM, I5 - Closing the Case. Be sure that required contact attempts have been made to the ACS address and/or any previously available telephone numbers.


      TDI accounts that have a balance due account on IDRS but not on ACS, follow I4 procedures in IRM, I4 - Closing the Case . Be sure the required contact attempts have been made to the ACS address and/or any previously available telephone numbers.

  3. If all locator research has been completed within the last twelve months and contact attempts have been made, make a case closure determination using I5 procedures in IRM

  4. For an account identified as a stand-alone TDI on ACS but IDRS research shows it is a combo case, make a case closure determination following I4 procedures in IRM .


    Since Accurint research is only usable for a case closure determination for twelve months after the research is completed, case closure actions must be processed timely to avoid re-work.  (06-19-2012)
M3 Inventory – Return Preparer Misconduct

  1. M3 inventory is used to house Return Preparer Misconduct cases which require follow-up actions.

  2. See IRM, Return Preparer Misconduct for guidance on processing these types of cases, including expired follow-ups.  (01-31-2012)
M4 Inventory - Appeals and Insolvency/Technical Services Issues

  1. M4 inventory is used by W&I ACS to house cases for Atlanta Support.

  2. Cases are placed in M4 for Atlanta ACS Support which has program responsibility.

  3. The cases in M4 Inventory are the same as R4 Inventory.

  4. See IRM for processing instructions.  (11-04-2013)
M5 through M9 Inventories - Reserved

  1. This inventory is reserved.  (11-04-2013)
Oscar "O" Inventory

  1. The O function has been designated for Identity Theft (IDT) cases in ACS.

  2. Function inventories may be processed either by next case processing or from a list.

    1. In next case processing the ACS system brings each case up in priority sequence with an expired follow-up date.

    2. List(s) obtained through QMF identifies accounts which may not have expired follow-up dates.


      Either process is necessary to ensure proper follow-up actions are taken. This includes moving cases to the appropriate function.


    Review cases carefully when working from a list to avoid taking premature actions.  (11-04-2013)
O0 Inventory - Managerial

  1. O0 inventory contains ACS accounts awaiting managerial approval. This inventory must be functioned out weekly.

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