IRS Logo

8.20.6  Interim Actions

Manual Transmittal

June 30, 2016

Purpose

(1) This document transmits revised IRM 8.20.6, Account and Processing Support (APS), Interim Actions.

Background

During Fiscal Year 2013, the Account and Processing Support (APS) Internal Revenue Manuals (IRM) were reorganized to incorporate all APS Guidance for Carding Actions into IRM 8.20.5, Interim Actions into 8.20.6, and Closing Actions into 8.20.7. The crosswalk of where each section was copied from and moved to in each APS IRM chapter is available in the revision identified below:

  • IRM 8.20.5 Revision Date November 5, 2013

  • IRM 8.20.6 Revision Date September 11, 2013

  • IRM 8.20.7 Revision Date November 13, 2013

During the Fiscal Year 2015 APS IRM update, the source IRM reference numbers that were incorporated into the section and sub-section titles during the FY 13 reorganization, are removed from the titles in this revision. The last revision to include this cross-reference IRM information with the section and sub-section titles is identified below:

  • IRM 8.20.5 Revision Date January 10, 2014

  • IRM 8.20.6 Revision Date September 25, 2014

  • IRM 8.20.7 Revision Date October 3, 2014

Material Changes

(1) Editorial changes are made throughout.

(2) Cross-reference links and titles are verified and updated.

(3) Sections and subsections are renumbered and reorganized throughout.

(4) The effective date of each section and each subsection is updated due to renumbering.

(5) IRM 8.20.6.1, Appeals Payment Processing Overview and both subsections are updated with significant new information and additional references. Subsections IRM 8.20.6.1.1, IRC 6603 Deposits, Undesignated Remittances and Conversion of Cash Bonds Under Revenue Procedure 2005-18 and IRM 8.20.6.1.2, General Awareness of Interest Rules When a Payment or an IRC 6603 Deposit is Received and Posted include updated information, as well as additional information to assist with understanding the unique analysis required by both the ATE and APS when a taxpayer requests a refund of all or a portion of their IRC 6603 Deposit prior to conclusion of their case. Exhibit 8.20.6-7, Refund of IRC 6603 Deposit - Amount in Dispute and Excess Amount components from IRM 8.20.6.1.2 (6) Example is added to reflect the application of the interim action refund process based upon the facts and figures provide in the (6) Example.

(6) IRM 8.20.6.2, Account and ACDS Updates, Changes, or Corrections Required as an Interim Action is updated with a new title and subsections are retitled, reorganized, and expanded to include changes and new information.

(7) IRM 8.20.6.2.5, APS Guidance for IDRS, AIMS, and PCS Corrections and Updates is a new section added to provide APS guidance for updating IDRS, AIMS, ACDS, and PCS to ensure database accuracy. This section includes five newly reorganized and updated subsections to further clarify procedure and guidance for APS to update, correct, and maintain database accuracy between all applicable systems interfacing with the taxpayer’s account.

(8) A new section IRM 8.20.6.2.6, ACDS Attachments is added to provide APS with guidance for uploading an attachment to the ACDS Record, and using the attachment description field to clearly identify the type and status of the respective attachment.

(9) IRM 8.20.6.3, Certified and Registered Mail Procedures is updated to clarify the range of address types for which certified mail procedures are used, and to differentiate between those for which registered mail procedures are used. This change/clarification is made to ensure that less costly certified mail is used whenever possible in place of the more costly registered mail. Links to the Domestic Mail Manual (DMM) for reference to source information that clarifies the address type of mail that is treated as domestic, as well as a listing of freely associated states have been inserted. A link to IRM 1.22.2.2, International Mail is also included.

(10) IRM 8.20.6.4, Form 3210, Document Transmittal Follow-up Requirement is updated and renumbered.

(11) IRM 8.20.6.5, Procedures for Shipping Personally Identifiable Information (PII) is renumbered and updated links to source information are provided.

(12) IRM 8.20.6.6, Abatement of Interest Claim Notice of Disallowance Issuance is updated and renumbered.

(13) IRM 8.20.6.7, Introduction to "Appeals-Issued" Statutory Notice of Deficiency (SND) and all subsections are renumbered and include significant updates and changes. "Appeals-Issued" SND guidance is separated and distinctly differentiated from "Compliance-Issued" SND guidance to establish a clear separation of APS responsibilities between these two types of cases within ACDS inventory and Appeals or Counsel jurisdiction.

(14) IRM 8.20.6.7.8, Tax Court Petition Filed During the "Appeals-Issued" Statutory Notice of Deficiency Suspense Period (4) is added to provide a link to the Form 14758, Appeals/Counsel Routing Coversheet which must be printed on orange paper and affixed to the front of the docketed case by APS.

(15) IRM 8.20.6.7.6, Undeliverable or Unclaimed "Appeals-Issued" Notice of Deficiency or Notice of Determination in renumbered, renamed, and includes new information for procedures when a Notice of Determination for a CDP case, Innocent Spouse case, or an Interest Abatement Claim case is returned undeliverable or unclaimed.

(16) IRM 8.20.6.7.10, "Appeals-Issued" SND - Married Filing Joint MFT 30 Accounts Requiring Specialized Action(s) is a new subsection which includes significant new information and new subsections:

  • IRM 8.20.6.7.10.1, "Appeals-Issued" SND - Petitioning/Non-Petitioning Spouse

  • IRM 8.20.6.7.10.2, Deceased Spouse in an "Appeals-Issued" SND on a Married Filing Joint MFT 30 Account

  • IRM 8.20.6.7.10.3, ACDS and AIMS Updates on an "Appeals-Issued" SND Non-Petitioning Spouse Case

(17) IRM 8.20.6.7.11, Non-Petitioned Year in an "Appeals-Issued" Statutory Notice of Deficiency is a new and separate section which includes significant changes and new guidance and procedures.

(18) IRM 8.20.6.7.12, Defaulted "Appeals-Issued" Statutory Notice of Deficiency is renumbered and updated to remove Disposition of Agreed or Defaulted "Appeals-Issued" 90-Day Cases Involving Claim per request from Senior Analyst for IRM 8.7.7, Claim and Overassessment Cases.

(19) IRM 8.20.6.8, "Compliance-Issued" Statutory Notice of Deficiency (SND) - Premature Default/Assessment is a new and reorganized section to differentiate between APS procedures for "Appeals-Issued" SND and clarify specific procedures for a "Compliance-Issued" SND within ACDS inventory and Appeals or Counsel jurisdiction. The following subsections are reorganized and include significant updates:

  • IRM 8.20.6.8.1, Interim Abatements Authorized by ATE/ATM/Counsel Attorney

  • IRM 8.20.6.8.2, Petitioning/Non-Petitioning Taxpayer, or Non-Petitioned Year(s) in Multiple Year "Compliance-Issued" SND

  • IRM 8.20.6.8.3, "Compliance-Issued" SND - Counsel Returns Dummy File After Answer for Appeals Consideration

(20) IRM 8.20.6.9, Docketed Case Settled by Appeals - STIPFF is renumbered and allows for Appeals to retain the administrative file whenever possible and forward only the STIP Package to Counsel for entry of the decision.

(21) IRM 8.20.6.9.1, Streamlined Docketed "EZ" Closing Procedures is a new section added to incorporate Interim Guidance Memorandum AP-08-0415-0004, Streamlined Docketed "EZ" Closing. This new section includes a link to the Appeals Guidance, Policy, Research web page for access to the updated list of participating Appeals Offices and Counsel Offices and includes APS guidance for interim processing actions for Docketed EZ cases.

(22) IRM 8.20.6.10, Docketed Case Settled by Appeals, Counsel Prepares the STIP - PREPSTIP is renumbered and includes minor updates.

(23) IRM 8.20.6.11, Docketed Case Not Settled by Appeals - Jurisdiction Released to Counsel DCJUR is renumbered and includes a new subsection with uniform procedures:

  • IRM 8.20.6.11.1, Counsel Receives and Accepts Delinquent Return - Interim Adjustment Procedures is a new section added to provide APS with guidance for processing adjustments based on a delinquent return that is received and accepted by Counsel as a basis for settlement prior to preparation and entry of the decision documents.

(24) IRM 8.20.6.14, DECENT and ORDENT Procedures is renumbered and the table is updated with a bullet list and reminder.

(25) IRM 8.20.6.15, Dismissed Cases (Entered Orders) and all subsections are renumbered. IRM 8.20.6.15.1, Entered Order to Dismiss for Lack of Jurisdiction includes minor updates and (3) includes two new examples with Step Action Tables.

(26) IRM 8.20.6.16, Appeal of Tax Court Decision is renumbered and includes updated information. Subsections are all renumbered and organized. The following subsections include new, updated, and reorganized procedures:

  • IRM 8.20.6.16.2, Appeal Filed by Petitioner, Bond Filed

  • IRM 8.20.6.16.3, Appeal Filed by Petitioner, No Bond Filed

  • IRM 8.20.6.16.4, Refund or Credit While an Appeals of the Tax Court Decision is Pending

(27) IRM 8.20.6.17, Interim Adjustment and Interim Account Update Processing is renumbered, and updated. The bullet list in (4) is updated to add additional reasons for an interim adjustment request.

(28) IRM 8.20.6.18, Interim Account Adjustments - Assessment or Abatement Prior to Final Determination is renumbered and includes renumbered and reorganized subsections.

(29) IRM 8.20.6.18.2, Partial (Interim) Assessment/Abatement AIMS CC: AMCLSF includes significant updates to provide clarification for APS account related responsibility and strengthen guidance and procedure for analyzing and controlling the taxpayer’s account balance while the case remains open in Appeals or Counsel jurisdiction.

(30) IRM 8.20.6.18.3, Partial Interim Assessment/Abatement Non-AIMS CC: REQ54/ADJ54 is renumbered and (7) is added to remind APS to close the IDRS Control Base for each account they’ve adjusted once the transaction(s) post.

(31) IRM 8.20.6.19, Collection Due Process (CDP) Interim Processes is renumbered and includes renumbered and reorganized subsections. (1) Interim Process list item e) is added to specify that the ATE may ask APS to add or remove a tax period(s) from a CDP WUNO and also request that APS update the taxpayer’s account(s) to add, correct or reverse a TC 520. IRM 8.20.6.19.1, CDP Interim Adjustments includes a new (4) to remind APS to close the IDRS Control Base once the transaction(s) has/have posted. CDP/Equivalent Hearing (EH) Disregarded Hearing Letter is removed per clearance comment stating that this is a closing procedure in IRM 8.20.7.

(32) IRM 8.20.6.21, Disaster Relief Cases is renumbered, reorganized, and includes new information related to how Disaster Master-File freeze codes are set and identified, as well as links to additional Disaster Relief guidance and procedures.

(33) IRM 8.20.6.24, Identify Theft (ID Theft) Interim Processing is renumbered and includes renumbered and updated subsections. IRM 8.20.6.24.3, ID Theft Interim Adjustment (1) is updated with list items d) - f) to codify PEAS documentation, suspense and monitoring procedures for APS. A Note is added to clarify that list items a) and b) items do not apply when Counsel initiates the ID Theft adjustment. All source IRM references are updated and the tables in IRM 8.20.6.24.4, ID Theft Indicator Acronyms and Definitions are removed and only the "APS-specific" acronyms and definitions are retained per clearance comments submitted by Senior Tax Analyst.

(34) IRM 8.20.6.27, IRC 7436 Notice of Determination Issuance title is updated to add "of Worker Classification" for accuracy and clarification.

(35) IRM 8.20.6.30, TEFRA Interim Processing Procedures and all subsections are renumbered, reorganized and updated.

(36) IRM 8.20.6.31, Third Party Database Maintenance is renumbered and reorganized.

(37) IRM 8.20.6.32, APS Reports Team Procedures is renumbered, reorganized and updated per APS Senior Technical Advisor request.

(38) Exhibit 8.20.6-2, General Acronym Definitions Included in IRM 8.20.6 is updated.

(39) Exhibit 8.20.6-3, ACDS Acronym and Code Definitions is updated.

(40) Exhibit 8.20.6-4, AIMS Acronyms is updated.

(41) Exhibit 8.20.6-5, IDRS and CFOL Acronyms is updated.

(42) Exhibit 8.20.6-7, Refund of IRC 6603 Deposit - Amount in Dispute and Excess Amount components from IRM 8.20.6.1.2 (6) Example is added to reflect the process for calculating the underpayment and overpayment interest as well as the components of the refund principle based upon the facts and figures provide in IRM 8.20.6.1.2, General Awareness of Interest Rules When a Payment or an IRC 6603 Deposit is Received and Posted(6) Example.

Effect on Other Documents

This IRM supersedes IRM 8.20.6, Account and Processing Support (APS), Interim Actions dated September 25, 2014. This IRM incorporates interim guidance memo AP-08-0415-0004, Streamlined Docketed "EZ" Closing, dated April 17, 2015.

Audience

Appeals

Effective Date

(07-01-2016)

John V. Cardone, Director, Policy, Quality and Case Support

8.20.6.1  (07-01-2016)
Appeals Payment Processing Overview

  1. To ensure timely transmission to the appropriate Remittance Processing Function, checks received in Appeals must be promptly provided to the designated Appeals Technical Employee (ATE) for preparation of Form 3244-A, Payment Posting Voucher - Examination and Form 3210, Document Transmittal. See IRM 8.7.17, Technical and Procedural Guidelines - Appeals Remittance Procedures for additional information.

  2. When the Appeals Technical Employee (ATE) determines that an interim assessment must be made as a result of receipt of the payment, the ATE will use Form 5402, Appeals Transmittal and Case Memorandum to request that APS process an interim assessment. See IRM 8.7.17.1.3, Procedures for Assessing Advanced Remittances for additional information.

  3. When the ATE determines the remittance received is an IRC 6603Deposit, they will provide this information on the Form 5402, submitted to APS for an interim or a closing action, to differentiate the 6603 Deposit from an advanced payment of tax.

  4. Taxpayers may also use the Electronic Federal Tax Payment System (EFTPS) to submit IRC 6603Deposits, advance payments and other types of remittance. For more information, see IRM 3.17.277, Electronic Payments.

8.20.6.1.1  (07-01-2016)
IRC 6603 Deposits, Undesignated Remittances and Conversion of Cash Bonds Under Revenue Procedure 2005-18

  1. The ATE will annotate Form 5402 with information pertaining to payments or 6603 Deposits received in Appeals for the following circumstances:

    1. Remittances received while the case is in Appeals

    2. Information pertaining to remittances identified by the taxpayer but not found on the transcript of account

    3. Amount of advanced payment(s) and tax period(s) to which the payment applies

    4. Amount(s) designated to pay tax (TC 640/670), or penalty (TC 690), or interest (TC 680)

    5. Amount of disputable tax and the date of the Notice, 30-Day or 90-Day Letter for IRC 6603 deposits.

      Note:

      APS must be provided with the information in e) above because the taxpayer can request the return/refund of an IRC 6603 Deposit at any time prior to its conversion to a payment upon the posting of an assessment, APS uses the information in e) above to correctly calculate the overpayment interest at the Federal short term rate on the portion of the IRC 6603 Deposit refunded to the taxpayer.

      Exception:

      If any portion of an IRC 6603 Deposit is in excess of the disputable tax amount, the amount identified as excess by the ATE is refunded without overpayment interest at the Federal short term rate. See IRM 8.20.6.1.2 (3) below for additional details.

8.20.6.1.2  (07-01-2016)
General Awareness of Interest Rules When a Payment or an IRC 6603 Deposit is Received and Posted

  1. IRC 6601, Interest on Underpayment, Nonpayment, or Extension of Time for Payment of Tax and IRC 6622, Interest Compounded Daily, provides authority for the accrual of underpayment interest and compound interest. Section 8 of Rev. Proc. 2005-18 provides procedures for the running of interest on an assessed tax liability satisfied by application of a remittance (whether the remittance initially was treated as a payment of tax or a deposit).

  2. When the taxpayer remits a payment (TC 640, TC 670, TC 680, or TC 690) for the full amount of the underlying tax deficiency, penalties (if any), and accrued interest, the account is considered full paid as of the payment received date and underpayment interest ceases to further accrue. However, if the taxpayer remits a payment that is less than the full amount of tax, penalty, and accrued interest owed on the account, additional underpayment interest continues to accrue daily on the unpaid amount until the remaining underpaid balance is full paid, or until the account balance equals $0.00. Transaction Codes for certain payments received after the tax return is filed are listed below:

    • TC 640 - Advance Payment of Determined Deficiency of Underreporter Proposal

    • TC 640 with a Designated Payment Code (DPC) 12 - IRC 6603 Deposit (see IRM 8.20.6.1.2 (3) below)

    • TC 670 - Subsequent Payment

    • TC 680 - Designated Payment of Interest

    • TC 690 - Designated Payment of Penalty

  3. Rev. Proc. 2005-18, Deposits Made to Suspend the Running of Interest on Potential Underpayments provides procedures for interest application when an IRC 6603 Deposit is posted to the taxpayer’s account with a TC 640 and a Designated Payment Code (DPC) of 12. Underpayment interest accrual is suspended on the IRC 6603 Deposit amount as of the deposit received date.

  4. The Service retains the IRC 6603 Deposit until the final adjustments are posted to the taxpayer’s account, unless the taxpayer submits a written request for refund of all or a portion of the IRC 6603 Deposit, prior to the resolution of the taxpayer’s case. The written request for the refund of an IRC 6603 Deposit is processable for an amount less than or equal to, the collective amount of tax, penalties and interest in dispute. See IRM 8.20.6.1.2 (5) for more specific guidance on determining the disputable tax* amount. When an IRC 6603 Deposit posted to the taxpayer’s account and does not exceed the disputable tax* amount, the entire amount of the IRC 6603 Deposit is interest bearing and earns overpayment interest at the Federal Short Term rate when refunded. When an IRC 6603 deposit is posted to the taxpayer’s account for an amount greater than the disputable tax* amount, the excess 6603 Deposit is refundable, but is not interest bearing, thus overpayment interest is neither allowed nor paid on the excess amount.

    Reminder:

    Once an assessment is posted to an account, ONLY the amount of the IRC 6603 Deposit in excess of the tax, penalty, and interest assessment is available for refund but is not interest bearing because at the time of remittance, it was an excess deposit and thus remains an excess deposit.

  5. *Rev. Proc. 2005-18 Section 2 Background .03 Section 6603(c) and .04 Section 6603(d)(2) clarifies and defines the term disputable tax. The Appeals Technical Employee or Counsel Attorney in receipt of the taxpayer’s written request for refund of their 6603 Deposit, will verify for APS, the amount of the IRC 6603 Deposit that is attributable to disputable tax. If any portion of the IRC 6603 Deposit is in excess of the disputable tax amount, the excess amount can still be refunded but will not include accrued overpayment interest at the Federal short-term rate. See Rev. Proc. 2005-18 Section 8 Determination of Underpayment Interest for additional information.

    Note:

    IRM 20.2.4.8.2, IRC 6603 Deposits provides the Servicewide policy and procedure specific to IRC 6603 Deposits.

  6. Overpayment interest allowed on an IRC 6603 Deposit returned at a taxpayer’s request must be manually computed at the Federal short-term rate and posted via a transaction code (TC) 770.

    Reminder:

    Overpayment interest calculated at the Federal short-term rate is only applicable to the portion of the 6603 Deposit attributable to disputable tax. If the taxpayer submitted a 6603 Deposit in excess of the amount of disputable tax, the excess amount is refundable upon written request by the taxpayer, but that excess amount over and above the amount(s) in dispute is not interest bearing nor is it included in the overpayment interest computation. When the 6603 Deposit is posted for the disputed amount or for less than the disputed amount, the APS TE need only calculate the overpayment interest at the Federal short-term rate for the principle amount being manually refunded. When the 6603 Deposit is posted for an amount greater than (in excess of) the disputed amount, APS must follow a two-part process to identify the 6603 Deposit excess amount:

    Two-Part Process Table for Steps Used to Identify the Interest Bearing Portion and the Non-Interest Bearing Portion of a 6603 Deposit

    Part I of 6603 Deposit Refund: Calculation to Determine Excess Deposit Amount Part II of 6603 Deposit Refund: Overpayment Interest Application on ONLY the Interest Bearing Portion
    Calculate Underpayment Interest on disputed Tax and Penalty amount(s). Calculate Overpayment Interest at the Federal short-term rate on the 6603 Deposit amount = Total amount in dispute*.
    Add Tax/Pen/Int amounts to determine the total amount in dispute*. Prepare the Form 3753, Manual Refund Posting Voucher.
    Calculate the amount of 6603 Deposit in excess of disputed Tax/Pen/Int. Refund Principle = amount of 6603 Deposit requested by the taxpayer to be refunded
    Overpayment Interest = amount calculated above on only the interest bearing portion of the 6603 Deposit attributable to the total amount in dispute.
    The excess 6603 Deposit is refundable and included in the refund principle amount, but the excess amount is not included in the overpayment interest computation. TC 840 amount is comprised of the principle amount and the overpayment interest calculated on the interest bearing portion of the 6603 Deposit at the Federal short-term rate.

    Example:

    Taxpayer submits an IRC 6603 Deposit for $20,000,000.00 on October 15, 2012 along with a 30-Day Letter (issued by LB&I on August 1, 2012) for an additional tax deficiency of $10,000,000.00 and penalty of $2,000,000.00 for MFT 02 Tax Period 201012. The 30-Day Letter identifies the amount in dispute is $12,000,000.00 plus any applicable interest thereon. The taxpayer files a protest and their case enters Appeals Jurisdiction. On January 15, 2014, the taxpayer provides the ATE with a written request for a full refund of their $20,000,000.00 IRC 6603 Deposit prior to their case being resolved. The ATE determines that only $12,000,000.00 plus applicable underpayment interest thereon can be refunded with accrued overpayment interest at the Federal short-term rate. The remainder of the 6603 Deposit principle is refundable, but is in excess of the amount in dispute and thus, it is not interest bearing. The ATE submits a written request to APS, for an interim action manual refund of the taxpayer’s 6603 Deposit amount attributable to disputable tax and penalty ($12,000,000.00), accrued underpayment interest thereon of ($ amount to be determined by APS) and the amount NOT attributable to disputed tax ($8,000,000.00 - * (*the accrued underpayment interest calculated by APS). Upon receipt of the request, APS calculates the underpayment interest on the disputed tax amount up to the IRC 6603 received date = *$1,500,000.00, and prepares the manual refund for the $ 20,000,000.00. APS then calculates the overpayment interest for only the $13,500,000.00 of the interest bearing principle at the Federal short-term rate. The remaining $6,500,000.00 principle amount is refunded without interest. See Exhibit 8.20.6-7, Refund of IRC 6603 Deposit - Amount in Dispute and Excess Amount Components From IRM 8.20.6.1.2 (6) Example for an overview of the process followed by the ATE and then by APS to correctly process the taxpayer’s request as described in this example.

  7. For additional information on interest application related to payments and 6603 Deposits see:

    • IRM 20.2.1-2 Exhibit Definition of Terms (Cash Bond and IRC 6603 Deposit)

    • IRM 20.2.4.8.2, IRC 6603 Deposits

    • IRM 20.2.4.8.2.1, Identification and Rate of Interest for 6603 Deposits

    • IRM 20.2.4.8.2.2, Applying an Excess 6603 Deposit Against Another Liability

    • IRM 20.2.4.8.2.3, Request for Return of an IRC 6603 Deposit

    • IRM 20.2.4.8.2.4, Designating a Deposit Made Under Rev. Proc. 84-58 (Cash Bond) as a Deposit Under IRC 6603

    • IRM 20.2.5.8.1.3, Consideration of Payments for LCU

    • IRM 20.2.5.8.2, Start Date for LCU Interest Rate

    • IRM 20.2.6.3, Assessment of Interest Accruals

    • IRM 20.2.6.5, Computer Generated Interest Computations

    • IRM 20.2.6.6, Steps to Compute Interest

    • IRM 20.2.6.7, Types of Interest Suspensions

    • IRM 20.2.6.8, Payment Allocation and Reallocation

8.20.6.2  (07-01-2016)
Account and ACDS Updates, Changes, or Corrections Required as an Interim Action

  1. During their consideration of the taxpayer’s case, the Appeals Technical Employee (ATE) may identify one or more of a variety of changes that must be made to ACDS, AIMS, IDRS and/or the Partnership Control System (PCS). Upon notification of the change request from the ATE, APS must process the system update(s) as an Interim Action. Listed below are several events during the course of Appeals’ consideration of the case that necessitate systemic updates:

    • ACDS Field(s) Update

    • Name Change

    • Address Change

    • Assessment Statute Expiration Date (ASED) Change

    • AIMS Status Change

    • AIMS Database Element Correction

    • Transfer of AIMS Database to a new Appeals Office Code (AOC)

    • Partnership Control System (PCS) Updates

    • Adding or Removing Tax Period(s) from the CDP WUNO which includes reversing TC 520(s) posted if necessary



    An overview of the ACDS/AIMS/IDRS/PCS system interim update process from the ATE initiation of the update request to the APS procedure for each specific type of system update is provided in the subsections below.

  2. When the ATE determines that a change to the taxpayer and/or Power of Attorney (POA) name and/or address is required, they will make the change in ACDS using the AIVP Validation Tracking System (VTS), Other Validation. The validation is available from the AO/SO Validation menu accessible from the CARATS screen or the Case Summary Card bottom menu. The change is designated as a Normal Update (N) if the change is the result of new case information. If the change is needed to correct an error on ACDS the change will be designated as an Error Correction (E) on the validation screen.

    Reminder:

    Updates to a taxpayer's and/or POA’s name or address must be entered on ACDS timely and not delayed until the case is submitted to APS for final closing. Timely update of a taxpayer’s and/or POA’s name and/or address is necessary to ensure all correspondence between Appeals and the taxpayer(s) and/or POA includes the correct name(s) and most current address.

  3. When the ATE becomes aware of a name and/or address change for the taxpayer and/or POA, they will ensure that both ACDS and the taxpayer’s entity information on IDRS is updated/corrected. The ATE will submit a request to APS to update the taxpayer's information on IDRS to ensure that IDRS reflects the correct name and address for the taxpayer as soon as the change in the entity information is known. See IRM 8.20.6.2 (7) for procedures on how APS receives an ATE update request.

  4. Updates, changes and modifications to ACDS critical data fields on cases where AIMS = Y requires the Appeals Technical Employee (ATE) to select the appropriate Processing Team Manager (PTM) in the Validation Tracking System to ensure that the request for Statute Date and Statute Code update are sent to the PTM's PEAS mailbox. Upon receipt of the systemic notification, the PTM will assign the update request to an APS Tax Examiner (TE) for update of ACDS/AIMS and/or IDRS as appropriate.

    Reminder:

    APS must always ensure that the Statute Date and Statute Code on ACDS and AIMS are both updated and match to ensure adequate Statute Protection, and avoid an AMATCH validation problem between ACDS and AIMS.

  5. When a PCS database element must be updated, the ATE will prepare Form 8339, PCS Change and submit the completed form to their designated PTM for assignment to an APS Tax Examiner (TE). The PTM, upon receipt of the systemic notification, will assign the update to an APS TE for update of PCS as appropriate.

  6. Appeals employees must use the validation tracking system (VTS) to update ACDS Critical Data Fields. APS will reject all requests that are available for the ATE to update through the VTS.

  7. The ATE uses the following procedures to request assistance from APS to correct or update ACDS/AIMS/IDRS/PCS information:

    1. Prepare "ACDS Update Request Form" or "APS Request Form for Collection Cases" found on APGolf under ACDS Updates, completing only the required items.

    2. Find the correct e-mail address on OUTLOOK Global Address List - *AP-PQCS-APS-(your Area, East, West or Campus)-(your APS update office) ACDS Update Request.

      Example:

      *AP-PQCS-APS-East-ATL ACDS Update Request

    3. E-mail the "ACDS Update Request Form" via encrypted e-mail.

      Reminder:

      Do not send update requests to the PTM’s Outlook e-mail address.

  8. APS will:

    1. Process the "ACDS Update Request Form" within 3 business days of receipt.

    2. E-mail the requesting employee if clarification is needed to process the request.

    3. Reject any request for update/correction when not submitted via the electronic form/mailbox.

  9. The electronic mailbox allows APS management to monitor timeliness and accuracy of the ACDS Update Requests.

  10. See the following IRM 8.10.3, Appeals Reports and Projects - Appeals Inventory Validation Process for specific additional guidance on AIVP:

    • IRM 8.10.3.1, Validation of Appeals Centralized Database System (ACDS)

    • IRM 8.10.3.3.1, Critical Data Field for additional information and the link to ACDS Critical Data Field List

    • IRM 8.10.3.3.3, ACDS Update Request Form

    • IRM 8.10.3.3.4, Other System Updates

    • IRM 8.10.3.3.7, Statute Validation

    • IRM 8.10.3.3.7.1, IDRS Updates

    • IRM 8.10.3.3.8, Appeals Technical Employee (ATE) Validations

    • IRM 8.20.5.3.2, AIVP Create Case Validation

8.20.6.2.1  (07-01-2016)
ACDS - Updating Case Status

  1. ACDS must always reflect the location of the case. Anytime a case moves from one location to another or is closed, the action must be updated to reflect the move/closure of the case.

  2. When the status of a case is changed on AIMS, ACDS must also be updated to identify the location of the case. Some items that may need to be updated are:

    • ACTION - code to describe action taken

    • TODATE - date action started

    • FROMDATE - date action ended

    • LACTION - code to describe action (locally defined)

    • LTODATE - date local action started

    • LFROMDATE - date local action ended

  3. See the ACDS Utilities Menu for a list of current status codes.

8.20.6.2.2  (07-01-2016)
ACDS Closing Code 30 - Transfer of a Case Between Areas Within Appeals

  1. Any necessary approvals of the Appeals Area Directors or the Chief, Appeals will be secured by the ATM and documented in the file before submitting the case to APS to complete the transfer.

  2. The ATM will enter a CC 30 action through their ATM closing screen which will automatically generate a PEAS unassigned record.

  3. The sending Appeals APS Office will transmit the following items:

    • Administrative File

    • Form 3210, Document Transmittal, original and 1 copy

    • ACDS Transfer Form (if used)

    Reminder:

    AIMS programming will not allow an AIMS record in status 81 to transfer. Update AIMS to status 80 or 82 before transmitting the administrative file.

  4. Make the following ACDS updates to transfer a case:

    1. Select "Special Activities Menu"

    2. Select "Closing Code 30 Update – Transfer to another Office" and search for the case

    3. Select the TRANSFER AREA (The Area you are transferring the case TO)

    4. Select a TRANSFER AOC from the list of valid TRANSFER AOCs for the TRANSFER AREA

    5. Select the correct TRANSFER POD, if there is more than one POD for the TRANSFER AOC

    6. Select DATECLSD/TODATE = date the case is mailed

    7. Select "R" for a Regular Transfer or "W" for a Workload Transfer

    8. Select "Submit Update"

      Reminder:

      Do Not Update ACTION, ACDS systemically updates this field with ACTION = TR NNXXPODC (NN=Area, XX=AOC, POD=POD Initials, C=R or W)

  5. When a return is on AIMS and is transferred to another AOC, the sending office will transfer the AIMS database using command code AMSOCA. See IRM 8.20.6.2.5.4, AIMS Control Transfer to Another AOC for additional information.

  6. When the case is received, the receiving office will accept the case from the INBOX by selecting "(Y)es ACCEPT this transfer case," which will systemically enter a FROMDATE in the ACTION "TR NNXXPODC" field. Manually enter the FROMDATE in the LACTION "POD-POD" field.

  7. The receiving office will acknowledge receipt by signing and dating the appropriate boxes and returning a copy of the signed Form 3210 to the transferring Appeals Office.

    Reminder:

    Once the receiving office accepts the transfer from their INBOX, if some reason exists for not accepting the transfer, the receiving office will contact the originating ATM by phone or email prior to returning the case. Contact with the originating ATM by telephone or e-mail is required before returning the case to minimize shipping cost and for protection of the taxpayer's Personally Identifiable Information (PII).

  8. When APS is required to transfer the case back to the originating office, APS follow procedures in (1) - (5) above to complete the transfer process.

  9. See IRM 8.20.6.2.3, ACDS Closing Code 40 - Re-assignment of a Case Within the Same Area below for a case re-assigned to another ATE within the same area.

8.20.6.2.3  (07-01-2016)
ACDS Closing Code 40 - Reassignment of a Case Within the Same Area

  1. Cases are re-assigned to another Appeals Technical Employee (ATE) after approval by the Appeals Team Manager (ATM). The ATE will print out a re-assignment sheet and the ATM will identify the new ATE.

  2. Cases are only re-assigned if both ATEs are in the same area.

  3. Make the following ACDS updates to re-assign a case:

    1. Select "Special Activities Menu"

    2. Select "Closing Code 40 Update – Reassign to another AO" and search for the case

    3. Select the new Appeals Technical Employee. The list is alphabetical by last name

      Note:

      To determine proper routing, refer to Case Routing instructions for the specific work stream found on the Appeals Web site: Appeals Only Routing Addresses and Instructions.

    4. Update the CORWUGRADE to correct the grade of the case, if necessary

    5. Select "Submit Update"

    6. If you are mailing the case to another POD, return to the "Main Cases Menu" and select "Action Fields Update" and update ACTION = SHIPPED with a TODATE = date mailed and select POD initials of the receiving office.

      Example:

      "RCH-BAL" means Richmond sent the case to Baltimore for reassignment to another ATE within the same area.

  4. If the case is re-assigned to an Appeals Technical Employee in another office with another Appeals Office Code within the area and the case is on AIMS, transfer the AIMS database using command code AMSOCA. See IRM 8.20.6.2.5.4, AIMS Control Transfer to Another AOC, for additional information.

  5. When the case is received from an Appeals Office within the Field area, update ACDS with a FROMDATE in ACTION SHIPPED and on LACTION POD-POD.

  6. Cases re-assigned to an Appeals Technical Employee outside your area, will be closed as a transfer. See IRM 8.20.6.2.2, ACDS Closing Code 30 - Transfer of a Case Between Areas Within Appeals.

8.20.6.2.4  (07-01-2016)
ACDS Feature Codes for Post Appeals Mediation Cases

  1. For purposes of accurately tracking the amount of direct time on Appeals cases, Appeals mediators will be assigned as a team member on the mediation case.

  2. The Appeals mediator will request that Account and Processing Support (APS):

    1. Input the feature code "TL" to create the Team Leader record for the Appeals Team Case Leader (ATCL) or ATE even if there are no other team members on the case besides the Appeals mediator;

    2. Input the feature code "TM" to create the Team Member record for the Appeals mediator; and

    3. Input the feature code "MD" on the same case to indicate it is a mediation case. (This feature code will only be used on cases for which the taxpayer requests mediation while the case is in Appeals jurisdiction.)

  3. The ATCL or ATE is responsible for verifying that APS follows the carding procedures in IRM 8.20.5.38, Team Leader/Team Member (TL/TM) Cases, when establishing the team member assignment.

8.20.6.2.5  (07-01-2016)
APS Guidance for IDRS, AIMS, and PCS Corrections and Updates

  1. APS is required to update AIMS and PCS when appropriate to ensure database accuracy.

  2. APS must monitor all IDRS, AIMS, and PCS changes until the respective database reflects the correct data.

  3. Specific update actions, their respective command codes, and applicable IRM references are provided is the subsections below:

    • IRM 8.20.6.2.5.1, Address or Name Change - Form 2363

    • IRM 8.20.6.2.5.2, AIMS Status and ASED Updates

    • IRM 8.20.6.2.5.3, AIMS Data Field Correction

    • IRM 8.20.6.2.5.4, AIMS Control Transfer to Another AOC

    • IRM 8.20.6.2.5.5, Partnership Control System Update

8.20.6.2.5.1  (07-01-2016)
Address or Name Change - Form 2363

  1. Upon receipt of a written request by an ATE, APS will prepare Form 2363, Master File Entity Change, and input the information on IDRS. Name and address changes may be input on the same Form 2363 or each change may be input separately.

  2. See IRM 2.4.9, IDRS Terminal Input, Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG for additional information.

8.20.6.2.5.2  (07-01-2016)
AIMS Status and ASED Updates

  1. APS will update AIMS when there is a change in the jurisdictional status of a case. To update the AIMS Status from 81 to 80 Non-Docketed Appeals, or 82 Docketed Appeals, use command code AMSTUA. To update the AIMS Status 80 Non-Docketed Appeals to Status 82 Docketed Appeals, use command code AMSTUB.

    Example:

    When an Appeals case is in AIMS Status 80 "Non-Docketed Appeals," and a Statutory Notice of Deficiency (SND) is issued by Appeals, if the taxpayer petitions the United States Tax Court (USTC), APS must update the AIMS Status to 82 "Docketed Appeals" upon transmittal of the case to Counsel jurisdiction. For this AIMS Status Update, use CC: AMSTUB.

    Reminder:

    AIMS and ACDS must match with respect to the correct status of the case to ensure database accuracy of both systems. If the current AIMS Status is 80, (Non-Docketed Appeals), and ACDS shows the case is docketed, the case will be reflected on the AMATCH Mismatch Data Report which must be worked quarterly by each APS PTM for their respective Appeals Office Code (AOC). For additional information see IRM 8.10.1.10.4, Returns with Mismatched Data.

  2. CC: AMSTUB is also used to update the Assessment Statute Expiration Date (ASED).

  3. Upon receipt of an "ACDS Statute Update Notification," the APS TE will use CC: AMSTUB to update the AIMS ASED as requested by the ATE. The AIMS ASED is updated to the corresponding Extended Assessment Statute Expiration Date (ASED) or applicable AIMS Alpha Statute Code as follows:

    • Extended ASED date per the Statute Extension i.e. Form 872

    • ASED Code 872-A for an open ended Statute Extension i.e. Form 872-A

    • AIMS Alpha Statute per ACDS Statute Code (see table below for list)

    ACDS Statute Code AIMS Alpha Statute Purpose
    Claim AA Claim Pending
    CBYYMM BB Carryback Pending
    RFRTN FF Reference Return
    10495 GG Non-TEFRA Flow Through Entity
    TFINV HH TEFRA Investor
    10495 PP ATE intentionally allowing the ASED to expire

    Note:

    The AIMS Statute Date is systemically updated to MM-"QQ" -YYYY when the AIMS Status Code 80, or 81 is updated to 82, "Docketed Appeals."

  4. For additional information on CC: AMSTUA and AMSTUB see:

    • CC: AMSTUAIRM 2.8.4.2, Command Code AMSTUA, and IRM 2.8.4-3 Exhibit, Command Code AMSTUA

    • CC: AMSTUBIRM 2.8.4.3, Command Code AMSTUB, and IRM 2.8.4-4 Exhibit, Command Code AMSTUB

8.20.6.2.5.3  (07-01-2016)
AIMS Data Field Correction

  1. APS will use command code AMAXUA when appropriate to correct the AIMS data elements identified below:

    • Item 16 - Appeals Code

    • Item 20 - Claim Rejection Date

    • Item 42 - ARDI Indicator (Payment Code)

    • Item 800 - Appeals Results

    • Item 801 - Counsel Results

    • Item 802 - Appeals Adjustment Amount

    • Item 803 - Appeals Grade

    • Item 804 - Appeals Time

    • Item 805 - Counsel Adjustment Amount

    • Item 806 - Counsel Grade

    • Item 807 - Counsel Time

    • Item 808 - Amount Disallowed - Exam Claim

    • Item 809 - Amount of Appeals/Counsel Claim

    • Item 810 - Amount Disallowed - Appeals/Counsel Claim

    • Item 811 - Closing Code

    • Item 820 - Workunit Number

    • Item 821 - Prior Appeals Code

    Note:

    Command Code AMAXUA cannot be used to correct TIN, MFT, file source, tax period, or name control.

  2. For additional information on CC: AMAXUA see:

    • IRM 2.8.6.2, Command Code AMAXUA

    • IRM 2.8.6-7 Exhibit, Command Code AMAXUA

8.20.6.2.5.4  (07-01-2016)
AIMS Control Transfer to Another AOC

  1. AIMS CC: "AMSOC" with definer "A" is used to transfer the AIMS database to the correct AOC. For additional information on AIMS CC: AMSOC, see:

    • IRM 2.8.5.1, Account Short Closing Command Code AMSOC

    • IRM 2.8.5-10 Exhibit, Command Code AMSOCA

    • IRM 2.8.6.2, Command Code AMAXUA

8.20.6.2.5.5  (07-01-2016)
Partnership Control System Update

  1. When a PCS database element must be updated, the ATE will prepare Form 8339, PCS Change and submit the completed form to their designated PTM for assignment to an APS TE. APS uses CC: TSCHG to input the information provided on Form 8339 and update the PCS. Updates made to AIMS database elements common to the PCS are reflected on the PCS database records after nightly processing. If the PCS and AIMS records are within the same campus area, AIMS changes are reflected on the PCS when they are made. For additional information on PCS Command Codes see:

    • IRM 4.29.2.3, Updating PCS Records (TSCHG)

    • IRM 4.29.2.3.2, PCS Change (TSCHG I or P)

    • IRM 4.29.2.4, Researching PCS Accounts

    • IRM 4.29.2.4.1, Linkage Summary (TSUMY)

    • IRM 4.29.2.4.2, Specific Record Inquiry, (TSINQ)

    • IRM 4.29.2.5.3, Release of Linkage Freeze on AIMS Investor Records (TSCLS)

    • IRM 4.29.2-4 Exhibit, Instructions for Form 8339, PCS Change

    • IRM 4.29.2-5 Exhibit, TSCHG Elements and Valid Range of Values

    • IRM 4.29.3.1, Overview of PCS Database Elements

8.20.6.2.6  (07-01-2016)
ACDS Attachments

  1. Appeals uses ACDS to control and update all cases under Appeals and/or Counsel jurisdiction. The ACDS record attachment functionality provides a method by which case related forms, documents, and other pertinent information can be uploaded as an attachment to the respective WUNO.

  2. The following list provides examples of forms, documents, and case related information that may be uploaded as an attachment to the applicable ACDS record when processing an interim action on a paperless case (this list is not all inclusive):

    • Form 5402, Appeals Transmittal and Case Memo Pre-ATM Approval (no ACAPDATE)

    • Form 5402, Appeals Transmittal and Case Memo Approved with ATM signature (with ACAPDATE)

    • Form 4549, Income Tax Examination Changes

    • Form 5278, Statement - Income Tax Changes

    • Form 3610, Audit Statement

    • Signed Waiver(s) of Agreement (Form 870, Form 870-AD, etc...)

    • Signed Consents to Extend the Time to Assess Tax (Form 872, Form 872-A, etc...)

    • Signed Form 872-T, Notice of Termination of Special Consent to Extend the Time to Assess Tax

    • Signed Form 866, Agreement as to Final Determination of Tax Liability (Original Form 866 must be retained for 6 years)

    • Signed Form 906, Closing Agreement on Final Determination Covering Specific Matters (Original Form 906 must be retained for 6 years)

    • Entered Tax Court Decision

    • Entered Tax Court Order

    • Signed Form 3870, Request for Adjustment

    • Input Completed Form 3870, Request for Adjustment - (includes DLN)

    • Input Completed Form 8485, Assessment Adjustment Case Record - (includes DLN)

    • Input Completed Form 5403, Appeals Closing Record - (includes DLN)

    • Signed Form 8278, Assessment and Abatement of Miscellaneous Penalties

    • Input Completed Form 8278, Assessment and Abatement of Miscellaneous Penalties - (includes DLN)

    • Form 2859, Request for Quick or Prompt Assessment - (includes DLN)

    • Form 2285, Concurrent Determinations of Deficiencies

    • 6404(g) Worksheet

    • SEQUA Spreadsheet

    • Form 5403 Instructions

    • Input Completed Form 12249, Adjustment Document - (includes DLN)

    • ACT/DMI Interest Computations (review completed only)

  3. Although ACDS programming controls the file name for the attachment, the user can input a file description to differentiate each attachment. For purposes of consistency across Appeals, the following ACDS file descriptions are recommended for APS:

    ACDS Attachment Segment Variation(s) Examples
    Document Type and Number-
    Attachments without a specific category or numeric designation e.g. interest computations are identified by a descriptive acronym
    • Form

    • Interest Computation

    • Letter

    • Entered Tax Court Decision with Docket Number

    • Entered Tax Court Order with Docket Number

    • F5403-

    • ICMP-

    • L3535-

    • TCD-NNNNN-NN-

    • TCO-NNNNN-NN-

    Document Status-
    Attachments are uploaded for different reasons and at different stages. The Document Status definer identifies the stage(s) applicable to the attachment type.
    • Not Signed

    • Approved With Signature

    • Reviewed and Approved

    • Input and Request Completed

    • NS-

    • AS-

    • RA-

    • RC-

    When the Attachment covers all Tax Periods in the WUNO No MFT or Tax Period is included in the ACDS attachment file name N/A
    When the Attachment is for a specific MFT- and specific Tax Period-
    • MFT = "NN-"

    • Tax Period = "YYYYMM-"

    • 30-201012-

    • 02-201012-

    • 01-201006-

    Note:

    See Table Below for Additional Notes for APS

    Additional Notes Applicable to the ACDS Attachment File Name
    Dashes are used to separate the file description segments.
    Documents that require a Signature Authorization can be status "NS" for Not Signed or "AS" for Approved With Signature.
    Documents that do not require a Signature Authorization but do require a Review e.g. manual interest computations, should not be uploaded as an ACDS attachment, until the review is completed and the interest computation has been approved by the designated authority. This means that all manual interest computations when uploaded with include the Document Status "RA" to denote Reviewed and Approved
    Account adjustment documents are only uploaded as ACDS attachments after the entries have been input and the Request Completed message is returned by AIMS/IDRS. APS TE will notate the partial or full DLN on the adjustment document. This type of ACDS attachment file name will include the Document Status Code "RC" .
    IMPORTANT: Only attach the following APS generated documents with Status RA or RC:
    • Reviewed and Approved (RA) (manual interest computations)

    • Request Completed (RC) (account adjustment documents which are input and include the DLN)

    Example:

    #1 The ACDS Attachment File Description for a Form 5403 for MFT 30 tax period 201112 for WUNO 0123456789 that is input with a "Request Completed" and uploaded on 03-15-2016 is:
    "F5403-RC-30-201112"

    Example:

    #2 The ACDS Attachment File Description for a Form 2859 for MFT 30 tax period 201012 for WUNO 1234567890 which includes the PTM’s signature and the Document Locator Number (DLN), uploaded on 03-15-2016 is:
    "F2859-RA-30-201012"

    Example:

    #3 The ACDS Attachment File Description for a Reviewed and Approved ACT/DMI Manual Interest Computation for WUNO 9876543210 MFT 30 201012 tax period uploaded on 03152016 is:
    "ICMP-RA-30-201212"

    Example:

    #4 Using Example #3 information but the tax period is 201112:
    "ICMP-RA-30-201112"

  4. APS TEs follow their PTM’s procedure for requesting a manual interest computation review.

  5. APS TEs use the PEAS Case Activity Record (CAR) to document their actions (see examples of entries below). PEAS CAR entries auto-populate the current date for each entry:

    1. Interest Computation review requested for TXPD "YYYYMM" (list all tax periods)

    2. Interest Computation emailed to J. Doe (identify reviewer by first name initial and last name)

    3. Interest Computation review completed and approved.

    Reminder:

    The manual interest computation is not added to ACDS as an attachment until after Step 3.

  6. PEAS Suspense is used when the APS TE will not apply direct time during completion of the manual interest computation review process.

8.20.6.3  (07-01-2016)
Certified and Registered Mail Procedures

  1. Certified and Registered mail records are maintained for 5 years in compliance with Document 12990, Appeals Records Control Schedule (RCS) 10, Item 6 Mailing Records. APS will maintain a record of delivery of certified or registered mail which may be Post Office Department Form 3877, Firm Mailing Book, or the form used by a private mail service.

  2. Computer generated listings are acceptable; however, they must contain the same information and follow a similar format.

  3. APS mails all "Appeals-issued" notices (deficiency/claim disallowance) and determination letters and also maintains the mailing files. In some locations a centralized or consolidated mail room performs the mailing functions.

  4. The following types of letters require a certified or registered mail receipt:

    • Abatement of Interest Claim Notice of Determination

    • Collection Due Process (CDP) Notice of Determination

    • Deficiency Dividend Form 2198, Determination of Liability for Personal Holding Company Tax

    • Employment Tax Determination (IRC 7436, Notice of Determination of Worker Classification)

    • EP and EO Final Adverse Determination

    • Innocent Spouse Determination letter

    • Notice of Claim Disallowance under IRC 6532

    • Statutory Notice of Deficiency (90-day/150-day)

  5. Use certified mail for the following address types:

  6. Use registered mail for letters to taxpayers with foreign mailing addresses that are not included in the address types listed in IRM 8.20.6.3 (5) above. A "Return Receipt" must be requested when sending by registered mail.

  7. See IRM 1.22.2.3, International Mail for additional information.

8.20.6.4  (07-01-2016)
Form 3210, Document Transmittal Follow-up Requirement

  1. See IRM 21.1.7.11.4, Suspense Copies, Form 3210, Document Transmittal, for procedures on monitoring and acknowledgement follow-up requirements.

  2. See page 8 of Document 13056, Employee Toolkit: Shipping Procedures for Personally Identifiable Information (PII) for Procedures for Use of Form 3210, Document Transmittal.

  3. Upon receipt of the Form 3210, Document Transmittal acknowledgement, enter the FROMDATE on ACDS to close the SHIPPED Action.

8.20.6.5  (07-01-2016)
Procedures for Shipping Personally Identifiable Information (PII)

  1. The Shipping Policy for PII Documents is located at: Shipping Policy for PII Documents

  2. For additional information on shipping PII see:

    • Document 13056, Employee Toolkit, Shipping Procedures for Personally Identifiable Information (PII)

    • Document 13144, Proper PII Shipping Procedures

    • IRM 10.2.13.4.4.1, Shipping Personally Identifiable Information (PII)

  3. All Appeals employees must adhere to the procedures for shipping PII.

8.20.6.6  (07-01-2016)
Abatement of Interest Claim Notice of Disallowance Issuance

  1. The following guidelines are provided for abatement of interest claims filed after July 30,1996.

  2. The ATE prepares a disallowance letter for unagreed cases. The taxpayer has 180 days to petition the United States Tax Court for review of the disallowance.

  3. Upon receipt of the administrative file with the signed notice of disallowance (Letter 2391, Partial Allowance - Abatement of Interest or Letter 2392, Full Disallowance for Abatement of Interest - Final Determination), mail and retain copies in the same manner as outlined for notices of deficiency. See list below:

    1. Verify the taxpayer's address using ENMOD or INOLES.

    2. If the taxpayer lives within the U.S., send the final determination letter by certified mail. See IRM 8.20.6.3 (5).

    3. If the taxpayer lives outside the U.S., send the letter by registered mail. See IRM 8.20.6.3 (6).

    4. Complete PS Form 3800Certified Mail Receipt.

    5. Document the certified mail number on the original and all additional copies.

    6. Send the appropriate copies of the letter and schedules to the representative, if applicable.

    7. Keep a dated copy of the letter and schedules in the administrative file.

    8. Suspend the administrative file until the taxpayer petitions, or the taxpayer defaults.

      Note:

      The taxpayer has 180 days to petition the Tax Court or if mailed to an address outside of the U.S., add 60 additional days 180 + 60 = 240 days.

    9. In the mailing record - enter the taxpayer's name and mailing address as it appears on the envelope, and enter the mailing date.

  4. Update ACDS:

    • SNTYPE = 180A

    • SNDATE = date letter is mailed

      Reminder:

      The letter MUST be mailed on the date shown on the letter.

    • On the return level screen, SND = Y

  5. APS must retain the administrative file on the disallowed interest abatement claims for "180/240 days plus 2 months" to allow time for receipt of taxpayer’s petition to the U.S. Tax Court. See IRM Exhibit 8.20.6-1, Calculating the Default Date for additional information.

  6. If the letter issued to the taxpayer was for "partial disallowance," APS processes the abatement on the allowed portion of the claim as an interim adjustment in accordance with the ATE instruction and takes no account adjustment action on the disallowed portion of the claim during the suspense period.

    Note:

    If the interest abatement claim was resolved with finality by obtaining Form 906, Closing Agreement on Final Determination Covering Specific Matters, a final determination letter is not needed. See IRM 8.20.7, Account and Processing Support (APS) - Closing Procedures for guidance on closing an agreed interest abatement case.

8.20.6.7  (07-01-2016)
Introduction to "Appeals-Issued" Statutory Notice of Deficiency (SND)

  1. When Appeals issues a statutory notice of deficiency (SND), the case is considered a 90-day case from the date the notice is issued until a petition is filed with the United States Tax Court (USTC) or until expiration of the 90-day period. This section covers how to process Appeals-issued 90-day cases that are both resolved and not resolved during the 90-day period.

  2. A statutory notice of deficiency is most commonly referred to as a 90-day letter, SND or SNOD.

  3. If there is a deficiency in the case as defined in IRC 6211, IRC 6212 authorizes mailing a statutory notice of deficiency to the taxpayer's last known address using certified or registered mail.

  4. After Appeals issues the statutory notice of deficiency, the case can also be reconsidered during the 90-day period. Reconsideration of a case does not extend the 90-day time in which the taxpayer may petition the Tax Court for a redetermination. See IRM 8.20.6.7.7, Reconsideration of "Appeals-Issued" Statutory Notice of Deficiency During Suspense Period for additional information.

  5. For any SND mailed to an address outside of the United States, add an additional 60 days to the normal suspense period.

    Example:

    A 90 + 30 day (120 day) suspense period becomes a 150 + 30 day (180 day) suspense period when the mailing address is outside of the United States.

8.20.6.7.1  (07-01-2016)
"Appeals-Issued" SND - Case to Counsel for Concurrence

  1. Some notices of deficiency, as well as Employee Plans (EP) and Exempt Organizations (EO) final adverse determination letters, will go to Counsel for concurrence before the letter is issued. The ATE will indicate when Counsel concurrence is required. The administrative file sent to Counsel will contain the following:

    • Approved Form 5402 marked for Counsel concurrence and either a completed but unsigned statutory notice or a draft of paragraphs to be included in the statutory notice.

    • All returns and documents which were in the case file when it was received in the Appeals Office.

    • Copies of all correspondence received or sent while the case was in Appeals.

  2. Form 3210, Document Transmittal must be used whenever transmitting taxpayer information.

  3. Enter action code SNDC and the current date (date case sent to Counsel) on the update case screen.

  4. Since Appeals Field Offices are not always co-located with their servicing APS Team, but may be co-located with their servicing Counsel Office, it is not mandatory that cases sent to Counsel for Concurrence be routed through APS; however it is mandatory that ACDS accurately reflect the location of the administrative file.

  5. The Appeals employee who forwards the case to Counsel for SND Concurrence must update ACDS with action code SNDC and the current date (date case sent to Counsel) to document the location of the administrative file.

    Reminder:

    When the SND is sent to Counsel, and the case will not be routed through the designated APS Office, the ATE must submit an ACDS Update Request to their servicing APS Office, requesting the ACDS record be updated with: Action Code = SNDC and a TODATE = to the date on which the file was transmitted to Counsel.

  6. The APS Reports Team will run the SNDC follow-up list on a monthly basis, to determine if Counsel has returned the administrative file or not.

8.20.6.7.2  (07-01-2016)
"Appeals-Issued" SND Case Returned by Counsel - Concurrence Approved

  1. When the administrative file is returned through APS with Counsel’s approval, APS will:

    1. Review the file to confirm all returns and other documents were returned.

    2. Sign and return the acknowledged Form 3210 to the initiator.

    3. Transmit the file to the Appeals Technical Employee (ATE), with Counsels’ concurrence with the unsigned SND, or Counsels’ concurrence of the draft paragraph to be included in the SND.

    4. Update ACDS by entering the date the administrative file was returned by Counsel in the FROMDATE on the case update screen.

    5. Use Form 3210, Document Transmittal whenever transmitting taxpayer information.

  2. If the case is returned from Counsel directly to the ATE and not through APS, the ATE must ensure the FROMDATE is entered on ACDS to reflect the return of the case to Appeals. If Counsel returns the case to Appeals through APS, the APS TE will update the FROMDATE on ACDS and forward the case to the ATE for their action.

8.20.6.7.3  (07-01-2016)
"Appeals-Issued" SND Case Returned by Counsel - Without Concurrence

  1. When the administrative file is returned through APS without Counsel’s approval APS will:

    1. Confirm that all returns, documents, and other papers forwarded to Counsel were returned except those intended for Counsel’s retention.

    2. Sign and return the acknowledged Form 3210 to the initiator.

    3. Update ACDS by entering the date the administrative file was returned by Counsel in the FROMDATE on the update case screen.

    4. Transmit the file to the ATE for further consideration.

    5. Use Form 3210, Document Transmittal whenever transmitting taxpayer information.

  2. If the case is returned from Counsel directly to the ATE and not through APS, the ATE must ensure the FROMDATE is entered on ACDS to reflect the return of the case to Appeals. If Counsel returns the case to Appeals through APS, the APS TE will update the FROMDATE on ACDS and forward the case to the ATE for their action.

8.20.6.7.4  (07-01-2016)
Appeals Statutory Notices of Deficiency (SND) - Issuance, Suspense, and Interim Processes

  1. APS mails notices of deficiency and maintains the certified mailing files. In some locations, a centralized or consolidated mail room may perform these functions. Certified mail records and files must be retained for 5 years from the issuance date to comply with Document 12990, "Records Control Schedules," "Schedule 10, Appeals - Administrative Records, Item 6 Mailing Records."

  2. The administrative file submitted by the ATE must include an approved Form 5402, a signed notice of deficiency letter and a correctly prepared "right-sized" envelope with the ATE's correct return address.

    Note:

    If the ATE does not provide a correctly prepared "right-sized" envelope, APS will not reject the case for this reason alone. Instead, APS will correctly prepare the envelope(s). If the envelope's return address is different from the ATE's return address, use a label to overlay the envelope's return address with the ATE's correct return address. This will ensure that if the SND is undeliverable or unclaimed, it will be returned to the ATE's local office and received by the ATE.

    Caution:

    Carefully review the taxpayer's address on the envelope as the envelope is used to determine whether the SND was mailed to the "Last Known Address."

  3. If the notice of deficiency is for a separate individual return, a window envelope may be used. However, use the right sized envelope to avoid disclosing any information other than the name and address.

  4. If the notice of deficiency is for a joint return, each spouse must receive a notice in an envelope addressed only to them.

  5. APS will:

    1. Verify the address included on the notice prepared by the ATE and approved by the ATM matches the SPARQ, INOLES or ENMOD print included in the administrative file submitted by the ATE

    2. Compare the name and address of the taxpayer(s) shown on the notice of deficiency with the name and address shown on the envelope(s) to ensure they are the same

    3. Contact the ATE if there is a discrepancy to resolve prior to issuing the SND

    4. Ensure there are a sufficient number of copies of the notice of deficiency and identify them for distribution to the persons designated to receive them

  6. APS must also verify that the SND, and any agreement form all have the same:

    • Taxpayer(s) name(s)

    • TIN

    • Tax period(s)

    • Deficiency amount

    • Penalty amount(s)

  7. ACDS will calculate the "Last Day to Petition Tax Court" and populate the SNEXPDATE field after APS enters the SNTYPE and SNDATE fields and clicks "Submit." APS must enter the SNEXPDATE on the SND letter. IRM Exhibit 8.20.6-1, Calculating the Default Date provides additional information.

    Note:

    ACDS is programmed to account for Saturdays, Sundays and Legal Holidays in the District of Columbia.

    Caution:

    Always use the correct SNTYPE and SNDATE to ensure that the SNEXPDATE is calculated correctly.

    1. 90 days are added to the date the notice of deficiency is issued, if the taxpayer's address is within the United States.

    2. 150 days are added to the date the notice of deficiency is issued, if the taxpayer's address is outside the United States or the Service has knowledge that the taxpayer is out of the country when the notice of deficiency is issued.

    3. Complete PS Form 3800, Certified Mail Receipt.

    4. Notate the certified mail number on the original letter and all additional copies.

  8. Duplicate original notices are not required if both spouses are at the same address.

    • One spouse will receive the original notice

    • The other spouse will receive a copy of the same notice

    • Both notices (original and copy) must be sent via certified mail

    • Each SND (original and copy) will have its own certified mail receipt number

    Reminder:

    APS is responsible for making the copy of the original notice for the spouse residing at the same address as the spouse receiving the original notice and/or for the taxpayer’s representative(s).

  9. Duplicate original notices are required if each spouse has a different address. Each notice sent to the joint taxpayer’s at a different address must each have their own certified mail receipt number.

  10. APS will date the SND and all copies. The SND (both the original and the copy) MUST be mailed on this date.

    Caution:

    APS must be aware of their local mail room requirements regarding postmark dates to ensure that the postmark date and letter date are the same.

  11. Unless the Form 2848, "Power of Attorney and Declaration of Representative" or Form 8821, "Tax Information Authorization" mailing instructions state otherwise, the taxpayer receives the original letter (certified/registered mail) and the representative receives a copy (regular mail). For notices on an MFT 30 Married Filing Joint account, see IRM 8.20.6.7.4 (8) and IRM 8.20.6.7.4 (9) above.

  12. When the Form 2848, or Form 8821 includes specific mailing instructions, the ATE and APS are required to adhere to the specified mailing instructions for the respective taxpayer(s) and respective tax period(s). Several examples of alternate mailing instructions that may be authorized by the taxpayer via the Form 2848 or Form 8821 are:

    • Send all original documents to the representative (use certified/registered mail) and a copy to the taxpayer (use regular mail). The letter will be addressed to the taxpayer in care of the representative.

    • Send a copy of the documents to a second representative.

    • Do NOT send a copy to the representative.

    Caution:

    When Married Filing Joint taxpayer’s reside at different addresses, each taxpayer must receive an original notice mailed to their respective address. In the case of duplicate original notices, the Form 2848 or Form 8821 mailing instructions apply to each taxpayer and/or their representative as applicable per the Form 2848 or Form 8821 in effect for each taxpayer and tax period.

  13. The original notice must be mailed by certified or registered mail regardless of who is designated to receive the original notice.

    • IRM 8.20.6.3, Certified and Registered Mail Procedures provides additional details and guidance for determining address categories.

    • Use Certified Mail when the address is within the United States, U.S. Territories and Possessions, an APO, FPO, DPO, the United Nations, or a Freely Associated State (see IRM 8.20.6.3 (5)).

    • Use Registered Mail when the address is not authorized to receiving certified mail, and thus categorized as foreign or international (see IRM 8.20.6.3 (6)).

  14. Insert the following items in the envelope containing the original notice of deficiency:

    1. Accompanying statements and schedules as provided by the ATE within the SND package

      Reminder:

      The certified/registered mail number must be included on the original notice and all copies.

    2. Return envelope for the taxpayer to return their signed agreement

  15. Insert the following items in the envelope containing a copy of the notice of deficiency:

    1. Copy of the accompanying statements and schedules as provided by the ATE within the SND package

      Reminder:

      The certified/registered mail number must be included on the original notice and all copies.

    2. Return envelope for the joint taxpayer at the same address or for the taxpayer’s representative to return their signed agreement

  16. Enter the taxpayer’s name, mailing address as it appears on the envelope (in care of representative, if appropriate), and mailing date in the mailing record.

  17. Distribute the remaining copies of the notice of deficiency package as follows:

    • Fasten one copy to the administrative file

    • Forward one copy to Counsel if their prior concurrence was necessary

    • Use Form 3210, Document Transmittal whenever transmitting taxpayer information to an IRS function, Appeals personnel and Counsel personnel

    • Place the administrative file in the "Letter Issued-Awaiting Taxpayer’s Action" file

8.20.6.7.5  (07-01-2016)
ACDS SNTYPE Update

  1. Once a notice of deficiency is issued by Appeals, update ACDS.

  2. An entry is required in SNTYPE on all Appeals cases where a notice of deficiency or a determination letter has been issued. Select the appropriate category from the following list:

    • 030A - Appeals-issued notice of determination

    • 090A - Appeals-issued notice of deficiency

    • 150A - Appeals-issued notice of deficiency to taxpayer residing outside the United States

    • 180A - Appeals-issued notice of final determination of partial or full disallowance of an abatement of interest claim

    • FPAA - TEFRA (Appeals-issued FPAA)

    Note:

    In the event the notice of deficiency is rescinded under Rev. Proc. 98-54, follow the instructions set forth in IRM 8.20.6.9.13, "Rescinded Appeals-Issued Notice of Deficiency Under Rev. Proc. 98-54."

  3. Update ACDS as follows:

    • SNDATE - enter the date the letter is mailed

    • SNEXPDATE - this date is computer generated

    • SND - enter "Y" in the update returns screen for each tax period covered by the SND

8.20.6.7.6  (07-01-2016)
Undeliverable or Unclaimed "Appeals-Issued" Notice of Deficiency or Notice of Determination

  1. Occasionally, the mail service is unable to deliver a statutory notice of deficiency (SND) or notice of determination (NOD), either because the taxpayer cannot be located (undeliverable) or because the taxpayer will not accept delivery (unclaimed). In these circumstances, the Post Office returns the undeliverable/unclaimed notice to the Appeals office according to the Return Address on the envelope.

  2. The following paragraphs provide instructions for the following UND/UNC types:

    • Statutory Notice of Deficiency see IRM 8.20.6.7.6 (3) and IRM 8.20.6.7.6 (4)

    • Notice of Determination (CDP and INNSP) see IRM 8.20.6.7.6 (5)

    • Notice of Claim Disallowance see IRM 8.20.6.7.6 (6)

  3. Upon receipt of the undeliverable or unclaimed SND in the Appeals Office, the recipient* (see Note below) must provide the unopened SND to the appropriate ATE for their action and decision. When the ATE’s initials are not provided on the envelope’s return address, the recipient will research ACDS to identify the appropriate ATE.

    Note:

    *The recipient is the person designated to receive and distribute the Appeals Office mail per local office procedures.

  4. Undeliverable or Unclaimed Statutory Notice of Deficiency (SND) Procedures:

    IF ATE Decides: THEN APS Will:
    the SND will not be reissued upon receipt of the SND and ATE's written decision, place documents inside of the suspensed administrative file.
    a courtesy copy will be sent to a different address without impact to the existing SND, the ATE will prepare the courtesy copy and envelope and forward the UND/UNC SND and the courtesy copy and right sized and addressed envelope to APS upon receipt of the UND/UNC SND, the courtesy copy and envelope prepared by the ATE, and the ATE's written decision:
    1. Place the courtesy copy into the right sized envelope prepared by the ATE,

    2. Seal and mail the courtesy copy,

    3. Enter "Courtesy Copy mailed per ATE instruction MM-DD-YYYY" in ACDS Note field,

    4. Place ATE written decision and instructions into the SND suspense file.

    Note:

    Do not update the ACDS address or taxpayer’s entity address unless specifically requested in writing by the ATE.

    the SND must be reissued and sufficient time remains on the statute, the ATE will generate a new SND with the new Last Known Address, secure ATM approval, and submit the package to APS. upon receipt of the new SND package, APS will:
    1. pull the administrative file from suspense

    2. reissue the new SND via certified mail

    3. update ACDS SNTYPE and SNDATE

    4. suspense the administrative file under the new default date

    the SND was not issued to the last known address and the ASED is expired, the ATE will immediately notify their ATM. The ATM will contact the PTM the same day to alert them of the potential barred statute and request the administrative file be pulled from suspense and returned to the ATE. upon notification from the ATM, and prior to releasing the suspensed administrative file to the ATE, the APS PTM will review the suspensed administrative file, and the information provided to APS with respect to the SND Issuance Address. See IRM 8.21.7.5.1Discovering a Potentially Barred Statute. Coordination between the ATM and PTM is required to ensure timely and accurate reporting of the potentially barred statute and accurate determination of the causation.
    they need the administrative file for their action and decision upon notification by the ATE, APS will:
    1. insert a charge-out notated with the date of removal and who the file is being sent to as a placeholder for the admin file

    2. update ACDS Note field to identify the date the administrative file was returned to the ATE

    3. use Form 3210 to transmit the file if ATE is not co-located

    4. identify charged-out SND files as the Statutory Notice Issued Report is worked and follow-up actions taken as appropriate

  5. Undeliverable or Unclaimed Notice of Determination (NOD) Procedures for CDP or INNSP:

    • When the undeliverable/unclaimed (UND/UNC) CDP or INNSP NOD is received in Appeals, there is no additional action needed by the ATE. The recipient* (as defined in IRM 8.20.6.7.6 (3) above), will forward the unopened UND/UNC NOD to APS for association with the administrative file.

    • In offices where APS is responsible for receiving the Appeals Office mail, APS will associate the UND/UNC NOD with the administrative file.

  6. Undeliverable or Unclaimed Notice of Interest Abatement Claim Disallowance procedures differ depending on if the Notice of Interest Abatement Claim Disallowance was Undeliverable, or if it was Unclaimed:

    • Upon receipt of the undeliverable"Notice of Interest Abatement Claim Disallowance" in the Appeals Office, the recipient* (as defined in IRM 8.20.6.7.6 (3) above), must provide the unopened Interest Abatement Claim NOD to the appropriate ATE for their action and decision. When the ATE’s initials are not provided on the envelope’s return address, the recipient* will use ACDS to identify the ATE for their decision/action. The ATE will decide if another letter should be mailed to a different address or not. The ATE will forward the undeliverable Interest Abatement Claim NOD to APS for association with the suspensed administrative file.

    • Upon receipt of the unclaimed"Notice of Interest Abatement Claim Disallowance" in the Appeals office, the Recipient* (as defined in IRM 8.20.6.7.6 (3) above), will forward the unopened Interest Abatement Claim NOD to APS for association with the suspensed administrative file. The ATE does not need to take any action on an unclaimed NOD.

8.20.6.7.7  (07-01-2016)
Reconsideration of "Appeals-Issued" Statutory Notice of Deficiency During Suspense Period

  1. If the Appeals Team Manager (ATM) or Appeals Area Director decides to grant further consideration of a case in the suspense period, reactivate the case. When notified the case is being reconsidered APS will:

    1. Prepare a "chargeout" with the name of the case, the ATE, and the date the action is taken

    2. Place the "chargeout" in the "Letter Issued-Awaiting Taxpayer’s Action File" as a placeholder for the administrative file

    3. Remove the administrative file from suspense and transmit the file to the ATE

    4. Form 3210, Document Transmittal must be used whenever transmitting taxpayer information

    5. Indicate in the Note section of ACDS that the case has been returned to the ATE for reconsideration

  2. If no agreement is reached after consideration or reconsideration in the suspense period the ATE will ensure there is an approved informal memorandum and a signed closing letter for the unagreed case and return the case to APS. Upon receipt of the approved informal memorandum and signed closing letter for the unagreed case, APS will:

    1. Date the memorandum

    2. Date and mail the closing letter

    3. Indicate in the Note section of ACDS that the case has been returned to APS for SND Suspense

    4. File the original memorandum and copy of the closing letter in the administrative file

    5. Return the administrative file to the "Letter Issued-Awaiting Taxpayer’s Action File" and remove the "chargeout"

8.20.6.7.8  (07-01-2016)
Tax Court Petition Filed During the "Appeals-Issued" Statutory Notice of Deficiency Suspense Period

  1. If the taxpayer files a petition with the Tax Court:

    • Verify that both taxpayers signed the petition for an SND issued to married filing joint taxpayers

    • If both taxpayers are not included on the petition, see IRM 8.20.6.7.10.1, "Appeals-Issued" SND Petitioning/Non-Petitioning Spouse

    • Verify that all tax periods are included for a petition filed in response to a multi-year SND

    • If all SND tax periods are not included in the petition, see IRM 8.20.6.7.11, Non-Petitioned Year in an "Appeals-Issued" Statutory Notice of Deficiency for special handling and processing procedures

    • Remove the administrative file from "Letter Issued-Awaiting Taxpayers’ Action File"

  2. Update AIMS to status 82. AIMS automatically generates docketed alpha code "QQ" using the MMQQYYYY format (positions 15–20) when Appeals updates the AIMS status from 80 to 82. See IRM 8.20.6.2.5.2, AIMS Status and ASED Updates for additional information.

  3. Update the ACDS Record via the ACDS Special Activities> Closing Code 42/43 Update as follows:

    1. DKTNO = docket number

    2. CLOSINGCD = 43

    3. DATECLSD = date case sent to Counsel

    4. ACTION = DCJUR

    5. TODATE = date case sent to Counsel

    6. DC Office = Counsel Office code

    7. ATTORNEY = name of attorney

    8. SNDATE = do not delete entry

    9. STATDATE = blank for each tax period included on the petition

    10. Statute Code = DOCKT for each tax period identified on the petition

    11. DIMS TE will close the DIMS record once they notify the appropriate APS office of the petitioned SND

    Reminder:

    Do not delete the SNEXPDATE entry.

  4. APS prepares the Form 14758, Appeals/Counsel Routing Coversheet, printed on orange paper, attaches it to the administrative file and forwards the administrative file to Counsel for Answer.

  5. Use Form 3210, Document Transmittal whenever transmitting taxpayer information.

  6. Counsel will retain the administrative file after answer for settlement or trial preparation since Appeals already attempted settlement and issued an SND when an agreement could not be reached.

  7. If Counsel answers the petition and returns the administrative file to Appeals for a second attempt at settlement, input Closing Code 42 on ACDS to put the case/record back in Part 2 of the assigned employee’s inventory.

8.20.6.7.9  (07-01-2016)
Disposition of "Appeals-Issued" Statutory Notice of Deficiency (SND) Cases

  1. After an SND is issued on a case, disposition occurs in one of the following ways:

    IF THEN
    the taxpayer agrees to the deficiency within the 90-day (150-day) period by signing the appropriate agreement form, the case is forwarded for assessment action under Form 5402, Appeals Transmittal and Case Memorandum.
    the taxpayer fails to file the petition with the United States Tax Court within the prescribed period, the case is forwarded for default assessment action under Form 5402Appeals Transmittal and Case Memorandum.
    the taxpayer enters into agreement under IRC 6212(d) to rescind the Notice of Deficiency follow procedures in 8.20.6.9.12, Rescinded "Appeals-Issued" Notice of Deficiency Under Re. Proc. 98-54.
    the taxpayer files a timely petition and the case becomes docketed in the Tax Court the entire administrative file is transmitted to Counsel for answer and usually, the case will remain in Counsel’s jurisdiction for trial preparation.

    Note:

    If Appeals issued the SND before full consideration because the ASED was imminent, then Appeals can ask Counsel to refer the docketed case back to Appeals for reconsideration.

    Caution:

    To ensure ASED accuracy and protection, always review TLCATS and the information provided by Counsel or DIMS to verify the following items:
    All tax periods listed on the SND are included
    Both taxpayers names and their signatures if the SND was issued on a MFT 30 Married Filing Joint (MFJ) account
    Consult with the Counsel Attorney to address any discrepancy or omission and document the discussion and resolution in the PEAS CAR

8.20.6.7.10  (07-01-2016)
"Appeals-Issued" SND - Married Filing Joint MFT 30 Accounts Requiring Specialized Action(s)

  1. APS is responsible for issuing, monitoring and controlling "Appeals-issued" SND's.

  2. When an SND is issued on a MFT 30 Married Filing Joint (MFJ) account, the Primary TP and Secondary TP are treated individually for the purpose of:

    • Legally signing a waiver of agreement, or

    • Legally petitioning the United States Tax Court (USTC).

  3. When the resolution of the "Appeals-Issued" SND on a MFJ MFT 30 Account is split due to one of the scenarios listed below, APS must take additional actions to ensure protection of the ASED for both taxpayers:

    1. Single Agreement - Waiver of Agreement received from one spouse but not the other

    2. Single Petition - One Petitioning Spouse/One Non-Petitioning Spouse

    3. Separate Petitions - Each Spouse files a separate petition

    4. Separate Agreements - Waiver of Agreement received from each spouse but with different agreement dates

    5. Deceased Spouse - Surviving Spouse has Fiduciary authority (via Form 56) to represent the deceased spouse

    6. Deceased Spouse - Neither the Surviving Spouse, nor a Fiduciary has authority to represent the deceased

    7. Deceased Spouse - Fiduciary, not the surviving spouse, has legal authority to represent the deceased spouse via Form 56, Notice Concerning Fiduciary Relationship

  4. Since the Appeals-issued SNDs on a MFJ account may require two different interim actions, one for each spouse, and then ultimately require further adjustments to each spouse’s account and/or the Joint MFT 30 account, both the interim action(s) and the closing action(s) are staged in this section for clarity and consistency.

  5. The table below provides guidance for the additional interim/closing actions required for the various instances identified in (3) a) - g) above:

    If And Then
    only one TP (TPH or TPW) signs the SND Waiver of Agreement Form 4089, the other TP does not sign the same Waiver of Agreement create an MFT 31 Account for the TP who agreed and assess the full amount of the SND.
    The TP who did not agree is kept in SND Suspense until the earlier of:
    • receipt of SND Waiver signed by the previously unagreed TP,

    • petition of SND by previously unagreed TP,

    • SND Default Date

    only one TP on a MFJ MFT 30 SND filed a Petition to USTC, the other TP is not included as a Petitioner, after verifying there is a Non-Petitioning Spouse (NPS), take the following actions:
    • Prepare a Dummy File for the NPS

    • Update ACDS and AIMS according to IRM 8.20.6.7.10.3, ACDS and AIMS Updates on "Appeals- Issued" SND Non-Petitioning Spouse

    • Continue suspense of the dummy NPS file

    • Forward the PS administrative file to Counsel for DCJUR

    both taxpayer’s on a MFJ MFT 30 SND file separate petitions, neither spouse is included on the other spouse’s petition see IRM 8.20.5.5.6, Joint Return - Separate Petitions for ACDS update procedures.
    both spouses sign separate waivers the waivers are received on different dates assess the SND on the MFT 30 account using the earliest waiver date.

    Note:

    If one spouse is deceased, see IRM 8.20.6.7.10.2, Deceased Spouse in an "Appeals-Issued" SND on a Married Filing Joint MFT 30 Account for procedures.

  6. When one spouse agrees and the other spouse does not sign the same agreement, an MFT 31 account is created and assessed for the agreeing spouse. The remaining unagreed spouse can later:

    • Submit a separate agreement (see a below), or

    • Take no action and default (see b below), or

    • File a separate petition (see IRM 8.20.6.7.10.1 below)


    1. A separate agreement on a later date requires the SND be removed from suspense and submitted for closing action. As long as the ASED is open for both the 1st agreeing spouse and the 2nd agreeing spouse, the SND will be assessed on the MFT 30 MFJ account using the earliest agreement date and the MFT 31 account adjustment(s) for the first taxpayer who agreed must be reversed.

      Caution:

      Always verify that both the MFT 31 ASED for the first spouse who agreed is still open, and also that the MFT 30 ASED is open as well. If the MFT 31 ASED for the first spouse is expired, then do not abate the MFT 31 assessment, but instead, create an MFT 31 account for the second spouse who agreed and post their assessment on their separate MFT 31 account using the earliest agreement date.

      Reminder:

      Taxpayers on a MFJ MFT 30 account need only pay the tax, penalty and interest amount once. For this reason, the earliest agreement date is used and the IDRS interest routine will not require an interest restriction.

      Note:

      See IRM 21.6.8.6.1, Exam/Appeals/AUR MFT 31 Accounts (1) when both taxpayer’s are responsible for the same debt and also see IRM 21.6.8.8.1, DUPASMT Transcripts for additional information to consider and act upon when an MFT 31 account is not fully paid.

    2. The unagreed spouse defaults on a later date and the SND is removed from suspense and submitted for closing action. The SND will be assessed on the MFT 30 MFJ account using the agreement date. The MFT 31 account adjustments for the first taxpayer who agreed must be reversed.

      Caution:

      Always verify that the ASED based on the earliest agreement is open for the MFT 30 account adjustments prior to reversing the adjustments on the MFT 31 account.

      Reminder:

      Taxpayers on a MFJ MFT 30 account need only pay the tax, penalty and interest amount once. For this reason, the earliest agreement date is used and the IDRS interest routine will not require an interest restriction.

  7. APS TE's must document their actions within their PEAS Case Activity Record (CAR).

  8. For additional guidance on Split Spousal Assessments see:

    • IRM 3.17.46.5.7.2, Non-Petitioning and Petitioning Spouse Accounts

    • IRM 21.6.8, Individual Tax Returns, Split Spousal Assessments (MFT 31 / MFT 65)

8.20.6.7.10.1  (07-01-2016)
"Appeals-Issued" SND - Petitioning/Non-Petitioning Spouse

  1. When Appeals issues a Statutory Notice of Deficiency (SND) for a proposed joint deficiency and only one spouse petitions the United States Tax Court (USTC), and the other spouse agrees or does not take any action (defaults), the case is considered a "petitioning/non-petitioning spouse" (PS/NPS) case.

  2. If only one spouse petitions (confirm with Counsel), several additional steps must be taken. The issuing APS office will:

    1. Prepare a "dummy file" for continued suspense of the NPS SND

    2. Update ACDS to create a Petitioning Spouse (PS) MFT 31 record and a Non-Petitioning Spouse (NPS) MFT 31 record

    3. See IRM 8.20.5.5.5, Non-Petitioning Spouse (NPS) Cases for ACDS record update procedures

    4. Create the NPS MFT 31 Account on IDRS using CC: REQ77/FRM77 to input TC 971, Action Code 103, XREF TIN = NPS TIN to the MFT 30 account

    5. Do not create an MFT 31 Account for the PS because the need for the MFT 31 account cannot be determined until the Docketed Case for the petitioning spouse is resolved

    6. Provide the petitioned case to Counsel for trial preparation

    7. Continue to monitor the NPS SND in suspense until receipt of an agreement or a separate petition, or the SND default date

  3. If the NPS submits a separate petition, update ACDS and forward the NPS dummy file to Counsel.

    Reminder:

    Clearly document the dummy file’s Form 14758, Appeals/Counsel Routing Coversheet with the Docket Number for the related petitioned case in Counsel jurisdiction.

    Note:

    Do not delete the MFT 31 account already created, this will be resolved during the closing process.

  4. If the NPS SND becomes either agreed or defaulted, APS must take the action to ensure timely assessment of the SND on the NPS MFT 31 account.

  5. Prepare Form 5403, as described below and input the MFT 31 Account Adjustment:

    1. Check box "AMCLSS" at the top of Form 5403

    2. TIN = TIN of primary taxpayer on the joint account

    3. MFT = 30

    4. Item 12 - Enter total tax and penalty to be assessed against the non-petitioning spouse

      Note:

      On the MFT 31 account, the TC 300 will generate a TC 470, which will withhold collection indefinitely if the APS TE opens an IDRS Control Base using CC: ACTON.

      Reminder:

      Any TC 470 posted after July 6, 1990 will automatically reverse at 15 cycles or 9 cycles with no control base. To manually reverse the MFT 31 TC 470 prior to the automatic reversal, input a TC 472 with no Closing Code.

    5. Item 14 is a required entry for AMCLSS and must reflect the correct ASED for the MFT 31 assessment

      Caution:

      If the NPS ASED is within 60 days, follow quick assessment procedures to make the MFT 31 NPS assessment and monitor the assessment until it is posted to the MFT 31 account. Do not duplicate the tax or penalty amounts in Item 12 of the Form 5403.

    6. Item 56 - Check PA if the primary SSN is the non-petitioning spouse

    7. Item 56 - Check SA if the secondary TIN is the non-petitioning spouse - this will cause the assessment to post to the MFT 31 account created for the secondary TIN

      Reminder:

      If Item 56 is checked for SA, you must also enter Item 57 with the Spouse's 4 Alpha Character Name Control when inputting Command Code AMCLSS entries or AMCLS will return a reject message "ITEM 57 REQUIRED WHEN ITEM 56 EQUALS SA OR SE." (Item 57 is included on the current revision of Form 5403 (Rev. 10/2014).

    8. Items 16, 20, 802–811, 39, and 42 - Make no entries

    9. Make a copy of the completed CC: AMCLSS Form 5403 for the dummy file

    10. Make a copy of the face of the return and associate it with the Form 5403 to be sent to campus files as the source document for the adjustment transaction

    11. Place the case in PEAS Suspense for monitoring of the MFT 31 adjustments

    12. Upon verification of the MFT 31 adjustment posting, update the MFT 31 ACDS record as appropriate and forward the NPS dummy file and assessment verification to Counsel for association with the docketed case.

      Note:

      If the case is being transferred because a change in place of trial has been granted, the transferring APS office is responsible for processing the interim assessment against the non-petitioning spouse.

  6. APS TE's must document their actions within their PEAS Case Activity Record (CAR).

  7. If one of the taxpayers on a Married Filing Joint MFT 30 account is deceased, additional procedures may be necessary to update ACDS and IDRS. See IRM 8.20.6.7.10.2, Deceased Spouse in an "Appeals-Issued" SND on a Married Filing Joint MFT 30 Account for procedures to use when the deceased spouse is the Non-Petitioning Spouse on an "Appeals-issued" SND.

8.20.6.7.10.2  (07-01-2016)
Deceased Spouse in an "Appeals-Issued" SND on a Married Filing Joint MFT 30 Account

  1. A Married Filing Joint (MFJ) MFT 30 account may include both a deceased spouse and a surviving spouse.

    • If one or both of the taxpayer’s were deceased prior to their case coming to Appeals in a docketed or non-docketed status, the taxpayer’s entity and account information should have been updated by the originating function, and APS would have carded the case with the literal "DECD" following the deceased taxpayer’s name.

    • The ATE and APS must take coordinated additional interim actions to correct the ACDS name line, Master File (MF) Entity name line, and document the tax period during which the taxpayer became deceased.

    • The coordinated ATE and APS procedures in (2) through (12) below apply if one or both of the taxpayer’s become deceased after their case is received by Appeals in a docketed or non-docketed status.

  2. The ATE will:

    1. Identify if the decedent is the primary or the secondary taxpayer or both.

    2. Identify the "year of death" for the deceased taxpayer(s) so APS can post a TC 540 to update the mail filing requirement code on the correct tax period for the decedent(s).

    3. Determine if the surviving spouse or another individual has “fiduciary” authority via Form 56, Notice Concerning Fiduciary Relationship.

    4. Determine if the decedent’s entity requires a name line and/or address change to include an "in-care-of" name line and new address.

    5. Update the name line on ACDS to include the literal "DECD" behind the deceased taxpayer’s given name.

      Example:

      #1 "Doe, John Z. DECD and Jane Z." (MFT 30 MFJ Deceased Primary TP)

      Example:

      #2 "Doe, John Z. and Jane Z. DECD" (MFT 30 MFJ Deceased Secondary TP)

    6. Prepare and submit a name/address change request to their servicing APS Team to update the taxpayer’s Master File (MF) Entity information.

    7. Prepare and submit a request for APS to post a TC 540 on the MFT 30 tax period during which the taxpayer became deceased.

      Example:

      Taxpayer’s Date of Death (DOD) is MM-DD-2015. A TC 540 must be posted to the taxpayer’s MFT 30 201512 account. Posting of the TC 540 sets the mail filing requirement to "08" which closes the decedent’s IRS filing requirement and deactivates the taxpayer’s SSN account for tax filing in any subsequent year e.g. 2016 and forward. In addition to ensuring the taxpayer’s entity and filing requirements are accurate, this action also serves to guard against future use of the deceased taxpayer’s SSN for tax related identify theft purposes. See IRM 3.12.179.18, Decedent Returns (4) for additional information.

    8. When a designated representative has fiduciary authority on behalf of the deceased spouse via Form 56, Notice Concerning Fiduciary Relationship, the ATE will follow IRM 3.13.5.30, Form 56, Notice Concerning Fiduciary Relationship to validate the accuracy of the information. The ATE will notate the date of receipt on the original form, create an electronic file of the Form 56, and upload the electronic file to the ACDS record. The original Form 56 is then stapled to the back of the first page of the most recent tax period in the administrative file. See IRM 4.4.1-2 Exhibit Case Assembly # 4. item e for reference.

  3. Upon receipt of the ATE’s request to update the taxpayer’s entity name line, address, and/or "in-care-of" information and the request to post a TC 540 to the tax period for the year in which the taxpayer became deceased, APS will:

    • Use Form 2363, Master File Entity Change to identify the applicable Transaction Codes and document the information for input

    • Use CC: INCHG to input the entity changes

    • Use CC: REQ77 to input a TC 540 on the tax period identified by the ATE as the year during which the taxpayer became deceased.

      Caution:

      Do not add the TC 540 tax period to the ACDS record because it is neither open on AIMS nor active in an Appeals Status. The PEAS CAR entry is sufficient to document the authorized action taken by the APS TE.

    • Document the account adjustment activity in the PEAS Case Activity Record (CAR) and place the PEAS case in suspense for monitoring until all TC’s input are fully posted.

  4. The following resources provide additional information related to updating or correcting IRS systems when one or both taxpayer’s become deceased:

    • IRM 8.20.6.2, Account and ACDS Updates, Changes, or Corrections Required as an Interim Action

    • IRM 8.20.6.2.5, APS Guidance for IDRS, AIMS, and PCS Corrections and Updates

    • IRM 8.17.4.28, Notices of Deficiency for Special Types of Taxpayers

    • IRM 8.17.4.28.2, Fiduciary Relationships/Deceased Taxpayer

    • IRM 8.17.4.28.2.1, Deceased Taxpayer, Joint Return Filed

    • IRM 8.20.2.3.1, When to Request Non-Master File (NMF) Transcripts

    • IRM 2.4.19-4 Exhibit, Transactions Valid with Command Code FRM77

    • IRM 2.4.19-5 Exhibit, Command Code FRM77 Input

    • IRM 3.5.61.3, Receiving and Preparing Other Documents For Filing

    • IRM 3.5.61.3.1, Form 56, Notice Concerning Fiduciary Relationship/Form 56-F Notice Concerning Fiduciary Relationship of Financial Institution

    • IRM 3.5.61.22.9, Alpha Files Listing

    • IRM 3.12.179.18, Decedent Returns see (4) for TC 971 AC 524 (input by Accounts Management to prevent ID Theft of decedent SSN)

    • IRM 3.13.2.2.7, "Care of Name"

    • IRM 3.13.2.9.31, Correspondence Regarding a Fiduciary Relationship

    • IRM 3.13.2.18, Form 56, Notice Concerning Fiduciary Relationship

    • IRM 3.13.2-2 Exhibit, Transaction Codes (see TC 098 and TC 099)

    • IRM 3.13.5.6, Entity Section

    • IRM 3.13.5.6.1, Establishing and Maintaining the Entity

    • IRM 3.13.5.30, Form 56, Notice Concerning Fiduciary Relationship

    • IRM 3.13.5.34, Form 2363, Master File Entity Change

    • IRM 3.13.5.43, Determining Primary Taxpayer Address Changes Due to IDRS

    • IRM 3.13.5.44, Determining Secondary Taxpayer Address Change Due to IMF Processing

    • IRM 3.13.5.45, Updating Address Records

    • IRM 3.13.5.47, Information Required to Complete Address Changes

    • IRM 3.13.5.57, Entering In Care of Address Information

    • IRM 3.13.5.65, UPC 147 RC 4/CP 01H Processing/Reversals of Incorrect TC 971 AC 524

    • IRM 3.13.5.86, Using CC INCHG Instead of CC IRCHG

    • IRM 3.13.5.87, Researching Using CC ENMOD to Initiate Entity Changes

    • IRM 3.13.5.96, Use CC MFREQ D to Complete Address Changes During IMF Cycles 01-03

    • IRM 3.13.5.116, Correcting a Taxpayer’s Name

    • IRM 3.13.5.116.2, Completing Name Changes With CC INCHG

    • IRM 3.13.5.116.3, Determining Name Line Year Used with TC 013 Corrections

    • IRM 3.13.5.116.9, Inputting Name Changes for Deceased Taxpayers

    • IRM 3.13.5.116.10, Inputting Name Changes for Taxpayers (Married Filing Jointly)

    • IRM 3.13.5.120, Add, Delete or Change Spouses’ TIN (generates a TC 017)

    • IRM 3.13.5.125.9, CP 54 Notice Due to (Deceased Taxpayer(s))

    • IRM 3.13.122.21, UPC 182 - Account Deactivated by Mail Filing Requirement (MFR) 08

    • IRM 3.13.122.21.1, Resolution for Specific Transaction Codes

    • IRM 3.13.122.21.4, UPC 182 - Social Security Number (SSN) Belong to a Single Taxpayer

    • IRM 3.13.122.21.6, Resolution when Social Security Number (SSN) belongs to Deceased Primary Taxpayer with a Joint Return

    • IRM 4.8.9.8.2.6, Fiduciary Relationship

    • IRM 4.10.8.21, Deceased Taxpayers

    • IRM 4.19.3.4.5, Deceased Taxpayers

    • IRM 4.19.3.20.1.22 (7) - (13)

    • IRM 5.18.1.10.2.3.13.3, Deceased Taxpayer

    • IRM 5.19.1.4.3.2, Deceased Taxpayers - Entity Changes

    • IRM 5.19.7.2.12, Death of a Taxpayer-Termination of Consideration

    • IRM 5.19.7.3.10.7, Death of the Taxpayer While Monitoring the OIC

    • IRM 21.6.6.3.21.1, Updating an Entity on Decedent Accounts

    • IRM 21.6.6.3.21.2, Processing Decedent Account Refunds

    • IRM 21.6.8.3, What is MFT 31 / MFT 65 (1) 6th bullet

    • IRM 21.7.1.4.9, Fiduciary Name/Address Change

  5. When a deceased "secondary" taxpayer on a Married Filing Joint (MFJ) account is deemed a non-petitioning spouse, once the SND defaults, the default assessment for the deceased secondary TP must be processed using the Automated Non-Master File (ANMF) System. The ANMF process only applies for a deceased "secondary" taxpayer and does not apply for a deceased "primary" taxpayer, because the primary TP already has an existing entity for the MFJ tax period(s) associated with their SSN. When ANMF procedures are used to make the (deceased) NPS assessment on MFT 20, the NPS ACDS record must also be updated to MFT 20.

    Caution:

    When one spouse on a MFJ return is deceased, the filing of a separate petition prior to the actual default of the SND does not serve as a trigger to establish a Non-Petitioning Spouse MFT 31 or MFT 20 account. To avoid unnecessary creation of a split account, wait until the SND defaults because a separate petition can be filed up until that date. Additional procedures are provided below in Table #3.

  6. See IRM 3.17.46.5.7.2, Non-Petitioning and Petitioning Spouse Accounts (1) "Non-Petitioning/Petitioning Spouse accounts are now processed on the Master File under MFT 31 with the exception of an invalid SSN and a deceased secondary spouse SSN."

  7. If the "primary" taxpayer is the decedent, and a non-petitioning spouse assessment is required, their assessment is processed using MFT 31 procedures.

  8. If the Appeals-issued MFT 30 MFJ SND defaults and neither the surviving spouse nor the deceased spouse’s representative take an action to jointly or separately agree or jointly or separately file a petition, then the default assessment is posted to the MFT 30 MFJ account. The name line on ACDS and Master File must accurately reflect which spouse is "DECD," and if a fiduciary represents the deceased spouse, the "in care of" information must also be present to ensure that the account notices are mailed appropriately.

  9. Tables #1 and Table #2 below and Table #3 in IRM 8.20.6.7.10.2 (12) provide an illustration of the processing requirements when one taxpayer on a MFJ MFT 30 account is deceased:

    Table #1 "Appeals-Issued" SND ATE Determines Authority for the Surviving Spouse to Represent the Deceased Spouse

    If ATE Determines: Then: When: Final Account Actions:
    Surviving Spouse legally represents the Deceased Spouse Spouses are NOT treated separately Surviving Spouse signs the agreement or petition for both Posted to MFT 30
    Surviving Spouse legally represents the Deceased Spouse Spouses are treated separately Surviving Spouse only signs the agreement or petition for themselves and not on behalf of the Deceased Spouse See Table #2 below
    Surviving Spouse does NOT legally represent the Deceased Spouse and NO Fiduciary is Identified for the Deceased Spouse Spouses are treated separately for the purpose of agreement or filing of a petition Surviving Spouse only agrees or petitions for themselves
    Deceased Spouse SND will default (NPS)
    See Table #2 below
    Deceased Spouse is legally represented by a Fiduciary who is NOT the surviving spouse Spouses are treated separately
    • Surviving Spouse can only agree or petition for themselves

    • Fiduciary can only agree or petition for the Deceased Spouse

    ★ Surviving Spouse and Fiduciary can coordinate to agree or petition together see IRM 8.20.6.7.10.2 Table #3 1st row
    See Table #3 below


    Table #2 If Surviving Spouse does NOT Legally Represent the Deceased Spouse and No Fiduciary is Identified

    Deceased Spouse Surviving Spouse Interim SND NPS Default Assessment is: Final Account Actions at Closing
    Primary Taxpayer Secondary Taxpayer Posted to MFT 31 • Create MFT 31 for Secondary TP
    • Adjust MFT 31 for Deceased TP if SND amounts are adjusted
    • Link both MFT 31 accounts to MFT 30 so payments can be systemically mirrored
    Secondary Taxpayer Primary Taxpayer Posted to MFT 20 • Create MFT 31 for Primary TP
    • If SND amounts are adjusted, prepare MFT 20 adjustment documents and submit them to ANMF
    • Link Primary TP MFT 31 account to MFT 30 so payments can be systemically mirrored
  10. Automated Non-Master File Accounting References:

    • IRM 3.17.46, Accounting and Data Control - Automated Non-Master File Accounting

    • IRM 3.17.46.3.2, Additional Assessments

  11. Prepare and fax the forms listed below to RACS EEFax # 855-254-9562 Attn: ANMF Assessment Needed Petitioning/Non-Petitioning Spouse (Secondary TP Deceased):

    • Form 2859, Request for Quick or Prompt Assessment for deceased secondary spouse only. Always include the Attn: statement provided above in the Form 2859 Remarks Section.

    • Interest Computation up to the 23C Date on Form 2859

    • Form 3177, Notice of Action for Entry on Master File TC 470 cc 90. ANMF will input this on ANMF

    • Document representing the assessment authority (e.g. Defaulted SND)

    • Form 3210, Document Transmittal

    Note:

    Do not include a completed Form 5403 for the MFT 20 account.


    Caution:

    The TC 470 cc 90 input by ANMF will automatically reverse after 180 days. To extend the TC 470 cc 90 hold on the MFT 20 account, fax the Form 3177 to EEFax # 855-254-9569.


    Reminder:

    #1 If the petitioning taxpayer’s Entered Tax Court Decision results in less tax and/or penalty, the APS TE must prepare a Form 1331-B, Notice of Adjustment to adjust the MFT 20 account to the correct amount of tax and/or penalty. The Form 1331-B must be faxed to the Covington Accounting Manual Assessment/Manual Refund Team at EEFax # 877-563-6425. Always use Form 3210 when transmitting taxpayer information.


    Reminder:

    #2 If the MFT 20 account balance is ≥ $25,000.00, use CC: TXMODA to secure an account transcript. If the MFT 20 account balance is < $25,000.00, fax your request for the MFT 20 transcript(s) to Cincinnati Submission Processing Center Accounting Operations Department EEFax # 855-254-9569. See last row of table below or IRM 4.71.2.4, Non-Master File Transcript Requests for details on information to include with your request.

    MFT 20 Account Adjustments

    MFT 20 Action Needed Required Documents EEFax Number
    Assess Deceased Secondary Spouse
    • Form 2859

    • Interest Computation

    • Defaulted SND (documentation for assessment authority)

    • Form 3177

    • Form 3210

    855-254-9562
    Extend TC 470 cc 90
    • Form 3177

    • Form 3210

    855-254-9569
    Adjust MFT 20 Account
    • Form 1331-B

    • Interest Computation

    • Entered Tax Court Decision (documentation for abatement authority)

    • Form 3210

    877-563-6425
    Request MFT 20 Transcript
    • Fax Transmittal which includes:

    • Your name

    • Your EEFax Number

    • "Request for MFT 20 transcript"

    • TP Name

    • TIN

    • Tax Period(s)

    855-254-9569
  12. If a Fiduciary legally represents the deceased spouse, Table #3 below provides instructions for SND actions, APS interim actions, and APS final account actions at closing.

    Table #3 Fiduciary Legally Represents the Deceased Spouse

    Deceased Spouse Represented by Fiduciary SND Actions: APS Interim Actions: Final Account Actions at Closing
    Primary TP DECD & Secondary TP Surviving

    OR
    Secondary TP DECD & Primary TP Surviving
    Fiduciary and Surviving TP jointly sign Agreement • Verify ACDS and IDRS name lines are updated with "DECD"

    • Verify TC 540 is input per ATE request
    • Prepare case for closing as Agreed
    ★ Agreed SND adjustments are posted to MFT 30 MFJ Account
    Primary TP DECD & Secondary TP Surviving

    OR
    Secondary TP DECD & Primary TP Surviving
    Fiduciary and Surviving TP jointly file Petition • Verify ACDS and IDRS name lines are updated with "DECD"

    • Verify TC 540 is input per ATE request
    • Prepare case for update to Counsel for Answer
    Update ACDS and transmit case
    ★ Settled or Entered Decision adjustments are posted to MFT 30 MFJ Account
    Primary TP DECD
    Secondary TP Surviving
    OR
    Secondary TP DECD & Primary TP Surviving
    Fiduciary and Surviving TP sign separate agreements on different dates • Verify ACDS and IDRS name lines are updated with "DECD"

    • Verify TC 540 is input per ATE request
    • Prepare case for closing
    Agreed SND is posted to the MFT 30 MFJ Account using the earliest Agreement Date
    Primary TP DECD
    Secondary TP Surviving
    OR
    Secondary TP DECD & Primary TP Surviving
    Fiduciary and Surviving TP file separate petitions • In addition to the actions identified for jointly-filed petitions,
    • Use PEAS CAR to document the reason why an MFT 31 account or ANMF MFT 20 account is not initiated for the NPS.
    • Use PEAS Suspense and PEAS Follow-up options to continue to monitor the docket listing.
    •Once the second (separate) petition is filed on behalf of the DECD spouse, forward the remaining suspense file to Counsel for association with the administrative file.
    Settled or Entered Decision adjustments are posted to MFT 30 MFJ Account

8.20.6.7.10.3  (07-01-2016)
ACDS and AIMS Updates on an "Appeals-Issued" SND Non-Petitioning Spouse SND Case

  1. When a SND issued on an MFT 30 Married Filing Joint (FS = 2) return and only one spouse files a petition, the ACDS record for the MFT 30 account, must be updated to include an MFT 31 for the petitioning spouse, and an MFT 31 for the non-petitioning spouse.

    • MFT 30 Joint Return (this is the key case)

    • MFT 31 Petitioning Spouse (PS) (do not create an MFT 31 account for the PS as an interim action)

    • MFT 31 Non-Petitioning Spouse (NPS) (create an MFT 31 account for the NPS as an interim action unless one spouse is deceased, then see the Caution in IRM 8.20.6.7.10.2 (5) and the last row of Table #3 above IRM 8.20.6.7.10.2 (12)

    Note:

    These instructions only apply to statutory notices of deficiency issued on an MFT 30 FS 2.

    Reminder:

    A non-petitioning spouse workunit is not created for CDP determination cases if only one spouse petitions because the tax is already assessed so MFT 31 procedures do not apply to CDP cases.

  2. ACDS field entries for MFT 31 ACDS records required on a Compliance-Issued SND are provided in IRM 8.20.5.5.5.1, Non-Petitioning Spouse Case Carding Requirements. ACDS field entries for MFT 31 ACDS records required on an Appeals-Issued SND are provided below.

  3. Update the MFT 30 Joint Return ACDS Record as follows:

    • FEATRCD - Enter NS

    • DKTNO - Enter Docket Number as it appears on the docket listing

  4. Update the Returns Screen on the MFT 30 Joint Return:

    1. AIMS indicator - Enter "Y"
      Appeals-Issued SNDs will already have AIMS controls established however, the AIMS Status 80 "Non-Docketed" must be updated to AIMS Status 82 "Docketed" via CC: AMSTUB.

    2. STATDATE - Enter the actual statute date of the joint return which results from the status of the non-petitioning spouse. This will reflect the most conservative ASED until such time as the NPS SND is agreed, defaults, or also becomes docketed.

    3. Statute CODE - "NPS"

    4. Upon resolution of the Non-Petitioning Spouse (NPS) SND, the ACDS record for the MFT 30 Joint Account, and the MFT 31 NPS Account must be updated as described in (5) and (6) below.

  5. Upon verification of the NPS MFT 31 assessment posting, update the MFT 30 ACDS record as follows:

    • STATDATE = blank

    • Statute CODE = DOCKT

    • NOTES = NPS MFT 31 Assessment 23C = MM-DD-YYYY

  6. Upon verification of the NPS MFT 31 assessment posting, update the MFT 31 NPS ACDS record as follows:

    • STATDATE = blank

    • Statute CODE = ASESD

    • NOTES = NPS MFT 31 Assessment 23C = MM-DD-YYYY

  7. After verifying the MFT 31 assessment has posted, the APS TE must close the IDRS Control Base opened under their IDRS number on the NPS MFT 31 account to allow systemic reversal of the TC 470.

  8. The MFT 31 account TC 470 will automatically reverse in 9 or 15 cycles to resume collection activity.

    Reminder:

    APS will not enter CSED information on the MFT 31 NPS ACDS record.

8.20.6.7.11  (07-01-2016)
Non-Petitioned Year in an "Appeals-Issued" Statutory Notice of Deficiency

  1. Oftentimes, an SND is issued for multiple tax periods. Occasionally, one or more of the tax periods listed in the SND may be omitted from the petition (intentionally or unintentionally). These cases are considered potential "Non-Petitioned Year," (NPY) cases until Counsel confirms the intention of the taxpayer.

  2. When one or more tax periods are missing from the petition, confirm with Counsel, before taking action to separate the NPY tax return(s) from the petitioned tax return(s) and original administrative file.

  3. If Counsel confirms that the taxpayer intended to include all SND tax periods on their petition, or provided a perfected petition to include all tax periods, then remove the case from suspense and use normal procedures to update ACDS and AIMS and transmit the file to Counsel.

  4. If Counsel verifies that the petitioner intentionally omitted one or more tax periods, and the taxpayer will not submit a "perfected petition" to include all of the tax periods, take the following actions:

    • Separate the non-petitioned year(s) tax return(s) and create an SND file for continued suspense awaiting agreement or default

    • Confirm with Counsel whether they do or do not want the NPY(s) associated with the docketed administrative file once they are closed, and document the SND suspensed file accordingly so appropriate action is taken upon their removal from SND suspense

    • Update the ACDS Returns Level for each Petitioned tax period: STATDATE = Blank and Statute CODE = "DOCKT." Do not update the NPY’s until they are closed from SND suspense.

      ACDS Return Level Updates for Petitioned Tax Period(s)

      ACDS Code ACDS Entry
      STATDATE Blank
      Statute CODE DOCKT
    • Update AIMS Controls to Status 82 for the petitioned year(s) ONLY via CC: AMSTUB

    • In ACDS NOTE field enter "Non-Petitioned Year(s) = YYYYMM in SND Suspense" (list each NPY)

    • Print the updated ACDS record and affix the print to the original administrative file to alert Counsel of the NPY(s)

    • Identify the NPY(s) on the Form 14758, Appeals/Counsel Routing Coversheet

    • Follow normal procedures to transmit the docketed years and the original administrative file to Counsel using Form 3210

    • Do not update the Closing Code for the ACDS record to 43 since the Non-petitioned year(s) are still in Appeals jurisdiction and their ASED(s), which are not controlled by the petition, must continue to be monitored by APS until an agreement is received for the NPY(s) or the SND defaults.

    Reminder:

    Always confirm if the Counsel Attorney wants the NPY(s) re-charged to them for association with the petitioned case, after conclusion of the SND suspense and APS processing actions. See IRM 8.20.6.7.11 (5) below if Counsel does want the NPY return(s) re-charged to them. See IRM 8.20.6.7.11 (6) below if Counsel does not want the NPY return(s) re-charged to them once they are agreed or defaulted.

  5. When Counsel does want the (defaulted or agreed) NPY(s) for association with the docketed administrative file after they are assessed and closed on AIMS, APS will take the following steps upon agreement or default:

    1. Process the agreed or defaulted tax period(s) assessment using CC: AMCLSA.

    2. Input TC 971 AC 057 on each assessed tax period to identify the location of the workpapers (latest docketed year).

    3. Make a copy of the completed Form 5403(s) and page one of the tax return(s).

    4. Affix a copy of the Form 5403 to each return as appropriate.

    5. Prepare Form 4251, Return Charge-Out to recharge the tax return(s) to the applicable Counsel Attorney. See IRM 25.5.1.4.9, Recharging and Re-fling Documents for additional guidance.

    6. Prepare the "Source Document Package" for each tax period: (see table below)

      Source Document Package
      Original Form 5403
      Form 4251, Return Charge-Out
      Copy of the first page of the tax return
    7. Use Form 3210 to transmit the "Source Document Package" to the appropriate Campus Files Function for association with the Form 5147, IDRS Transaction Record.

    8. Update the AIMS Indicator to E for the assessed tax period(s) ONLY to avoid an ACDS and AIMS mismatch on the AMATCH Report during the timeframe the ACDS Docketed WUNO remains open.

    9. Update the ACDS Returns Level statute date and statute code for the assessed tax period(s) ONLY:

      ACDS Return Level Update for Assessed Non-Petitioned Tax Period(s) Before Assessment Posts

      ACDS Code ACDS Entry
      STATDATE Update to the numeric ASED MM-DD-YYYY
      Statute CODE Leave Blank
    10. Update the ACDS Record: (see table below)

      ACDS Record Update When the Non-Petitioned Tax Period(s) Adjustments are Input

      ACDS Action ACDS Entry
      Update ACDS NOTE field "NPY(s) assessed agreed/defaulted 23C date = MM-DD-YYYY"
      Use ACDS Closing Code 43 Updates the ACDS record to Counsel Jurisdiction ACTION = DOCKT
    11. Use Form 3210 to transmit the re-charged tax return(s) to the Counsel Attorney for association of the NPY returns with the Docketed administrative file.

    12. Document the PEAS CAR as appropriate.

    13. Suspense and monitor on PEAS until the adjustments are fully posted.

    14. After assessment fully posts, update ACDS STATDATE and Statute CODE per the table below and close PEAS:

      ACDS Return Level Update for Assessed Non-Petitioned Tax Period(s) After Assessment Posts

      ACDS Code ACDS Entry
      STATDATE Update to Blank
      Statute CODE Update to ASESD

    Note:

    Depending on the timing of the ACDS and AIMS update action for the petitioned years, the ACDS Mismatch Report may reflect the discrepancy in the petitioned tax periods STATDATE and Statute CODE, however, the ACDS NOTE field will provide the necessary clarification as to the legitimate reason for the mismatch.

  6. When Counsel does not want the (defaulted or agreed) NPY(s) for association with the docketed administrative file after they are assessed and closed on AIMS, APS will take the following steps upon agreement or default:

    1. Process the agreed or defaulted tax period(s) assessment using CC: AMCLSA

    2. Input TC 971 AC 057 on each assessed tax period to identify the location of the workpapers (latest docketed year)

    3. Transmit the source documents and original returns to the appropriate Campus Files Function for association with the Form 5147, IDRS Transaction Record using Form 3210, Document Transmittal per normal closing procedures

    4. Update the AIMS Indicator to E for the assessed tax period(s) ONLY to avoid an ACDS and AIMS mismatch on the AMATCH Report.

    5. Update ACDS Returns Level for the Non-Petitioned tax period(s) ONLY, following procedures in IRM 8.20.6.7.11 (5) list item i) before the assessment is fully posted.

    6. Update the ACDS Record: (see table below)

      ACDS Record Update When The Non-Petitioned Tax Period(s) Adjustments are Input

      ACDS Action ACDS Entry
      Update ACDS NOTE field "NPY(s) assessed agreed/defaulted 23C date = MM-DD-YYYY"
      Use ACDS Closing Code 43 Updates the ACDS record to Counsel Jurisdiction ACTION = DOCKT
    7. Document the PEAS CAR as appropriate

    8. Suspense and monitor on PEAS until the adjustments are fully posted then update ACDS STATDATE and Statute CODE following procedures in IRM 8.20.6.7.11 (5) list item n) after the assessment is fully posted and close PEAS.

8.20.6.7.12  (07-01-2016)
Defaulted "Appeals-Issued" Statutory Notice of Deficiency

  1. If the taxpayer(s) does not sign and submit the waiver (Agreement), or does not file a timely petition with the tax court, the case is removed from SND Suspense on the Default Date.

  2. The Default Date is calculated by adding 30 days to the last day to file a petition date. For taxpayer's with a U.S. Address, the Default Date is 90+30=120 days from the SND Issuance Date. For taxpayer's with an address outside of the U.S., the Default Date is 150 + 30 =180 days from the SND Issuance Date.

  3. Check the Statutory Notice Report for any case where Appeals issued the statutory notice of deficiency. Also check for any case on which Appeals accepted jurisdiction from Compliance during the 90-day period.

  4. Update ACDS using general closing instructions. In addition input the following:

    1. CLOSINGCD - 05

    2. ACTION - ACKCLS

    3. STATDATE - newly computed statute date

      Note:

      See IRM Exhibit 8.20.7-1Form 5403, Appeals Closing Record (Instructions) ITEM 14-STATUTE EXTENDED TO DATE (MMDDYYYY FORMAT) and IRM 8.21.2Account and Processing Support (APS) Statute Responsibility for additional guidance.

    4. RevsdTax/Pen/Claim - enter the amounts from the notice of deficiency

  5. Prepare Form 5403 for assessment.

8.20.6.7.13  (07-01-2016)
Rescinded "Appeals-Issued" Notice of Deficiency Under Rev. Proc. 98-54

  1. In the event Appeals rescinds an "Appeals-issued" SND per Form 8626, Agreement to Rescind Notice of Deficiency, update ACDS as follows:

    1. Remove 090A or 150A from SNTYPE field

    2. Remove date from SNDATE field

    3. Enter "SND rescinded (date signed by Commissioner)" in NOTE field

    4. Change Y to N in SND field

  2. If Form 872 or Form 872-A was also completed in conjunction with Form 8626, Agreement to Rescind Notice of Deficiency update the STATDATE or statute CODE as appropriate on ACDS and AIMS.

8.20.6.8  (07-01-2016)
"Compliance-Issued" Statutory Notice of Deficiency (SND) - Premature Default/Assessment

  1. IRM 8.20.5.5, General Carding Information for Docketed Cases is the primary APS reference for receipt and acceptance of "Compliance-Issued" SND cases. This section is included in the APS Interim Action IRM 8.20.6 to clarify and specify the difference between APS carding responsibility and action(s) and APS Interim Action responsibilities on a "Compliance-Issued" SND. Furthermore, this section provides a clear distinction from the APS Interim Action(s) required for an "Appeals-Issued" SND which is a separate and distinct Interim Action process for APS.

  2. APS DIMS Team responsibilities for a Docketed "Compliance-Issued" SND are:

    • Monitor the Electronic Docket Listing (EDL)

    • Create ACDS skeletal record(s)

    • Perform follow-up with Compliance function if docketed administrative file is not received timely

    • Create a dummy file for Counsel if necessary

    • Receive docketed administrative files from Compliance functions

    • Generate Form 14758 , Appeals/Counsel Routing Coversheet, print it on bright orange paper, complete all applicable entries, and affix to top of file

    • Verify and document on ACDS that any non-petitioned tax period or non-petitioning spouse accounts are accurately controlled by the Compliance Source Function

    • See IRM 8.20.6.8 (12) for a list of links to Compliance Source Function Contacts

    • Monitor and protect ASED’s and when necessary, process protective assessments

    • Transmit dummy file or administrative file to Counsel

    • Coordinate with and support assigned APS Field and APS Campus offices

    • Transfer ACDS record to appropriate AOC

    • Close DIMS

  3. APS Field or APS Campus Team responsibilities for a Docketed "Compliance-Issued" SND are:

    • Receive docketed administrative files from Compliance functions

    • Generate Form 14758, Appeals/Counsel Routing Coversheet, print it on bright orange paper, complete all applicable entries, and affix to top of file

    • Contact DIMS Team to notify them of receipt of original administrative file and request closure of DIMS record

    • Verify ACDS and AIMS are accurately updated

    • Verify that any non-petitioned tax period or non-petitioning spouse accounts are accurately controlled by the Compliance Source Function (this includes documenting ACDS appropriately)

    • See IRM 8.20.6.8 (12) for a list of links to Compliance Source Function Contacts

    • Use PEAS to apply direct time for post-carding actions and close PEAS when actions and monitoring are concluded

    • Monitor and protect ASED’s and when necessary, process protective assessments

    • Transmit original administrative file to Counsel

    • See IRM 8.20.6.8 (4) below when the original petition is amended to include the NPS

  4. APS Field or APS Campus Team responsibilities for a Docketed "Compliance-Issued" SND when the original petition is amended to include the NPS:

    • Upon receipt of written verification from Counsel that the NPS is converted to a Joint Petitioning Spouse, APS must take specific actions to intervene on the MFT 31 account since a default assessment is not appropriate

    • Perform IDRS research to determine the current status of the NPS MFT 31 account established by the Compliance Function

    • When the MFT 31 account does not already have the NPS default assessment pending, see Alpha List #1 in IRM 8.20.6.8 (5) below

    • When the MFT 31 account already has the NPS default assessment pending or posted, see IRM 8.20.6.8.1, Interim Abatements Authorized by ATE/ATM/Counsel Attorney

  5. When a petition for an MFT 30 Married Filing Joint SND is amended to add the other spouse, and the NPS MFT 31 default assessment is not already pending or posted to the NPS MFT 31 follow Step List #1:

    1. Use CC: ACTON to Open an IDRS Control Base in Case History Status Code "A" Assigned - Actively Being Worked and also Enter a history item "NPS added to Petition DKTNO NNNNN-YY" on the NPS MFT 31 account and on the MFT 30 account.

      Reminder:

      Placing an IDRS Control and entering the History Item on the MFT 31 will protect the account from erroneous default assessment of the SND for the NPS while entering the History Item on the MFT 30 account serves to retain the History Item information in the event the MFT 31 account ages off the active IDRS database.

      Note:

      When inclusion of the NPS on an amended petition overlaps with the Compliance function pulling the NPS "dummy file" for default assessment, the IDRS control base and history item restricts the compliance function from processing the adjustment transaction. The MFT 31 intervention process serves to prevent an erroneous assessment by the Compliance Function, an incorrect notice to the taxpayer, erroneous credit offsets to the MFT 31 balance due account, and an interim abatement action by APS.

    2. Use encrypted email to alert originating function to close NPS dummy file suspense and transmit the NPS (documents) to Appeals for association with the docketed administrative file. See IRM 8.20.6.8 (12) below for a list of links to Compliance Source Function Contacts.

    3. Provide your EEFax number or mailing address to the originating function within the encrypted email.

    4. Upon receipt of the NPS documentation from the Compliance function, use CC: ACTON to close the IDRS Control Base (MFT 31).

    5. Use CC: REQ77 to input a TC 972 AC 103 to close the MFT 31 account on IDRS

    6. Monitor the account updates until posted, then use CC: ACTON to close the IDRS Control Base (MFT 30)

    7. Update ACDS to close the MFT 31 record(s) since all account adjustments will be processed on the MFT 30 account.

    8. Update the MFT 30 ACDS Note field with "NPS added to petition MFT 31 closed."

    9. Document actions taken on the PEAS CAR and close PEAS.

  6. When a petition for an MFT 30 Married Filing Joint (MFJ) SND is amended to add the other spouse, and the NPS MFT 31 default assessment is already pending or posted to the NPS MFT 31 see IRM 8.20.6.8.1, "Interim Abatements Authorized by ATE/ATM/Counsel Attorney" for processing guidance.

  7. When a "Compliance-Issued" SND is closed from Compliance Technical Services (CTS) as a defaulted SND and shipped to Compliance Case Processing (CCP) for a default assessment, additional actions are required by both Compliance and APS.

  8. CTS follows guidance in:

    • IRM 4.8.9.25.6, Unlocatable Case Files when the assessment has not been made and AIMS controls remain open.

    • IRM 4.8.9.25.7, Status 90 Cases when the assessment has been made and the AIMS controls are closed and in Status 90.

  9. The lists below illustrates the coordination of steps taken by CTS, DIMS, and the APS Office aligned with the designated Counsel office to resolve the problem and secure the case for Counsel:

    SND is Defaulted but has not been assessed - AIMS Controls are open:

    • When the file is not received timely by Appeals and the AIMS Controls are still open, the APS DIMS team will identify the case as aging on the DIMS Listing and will contact Compliance Technical Services (CTS) to request the file.

    • CTS will take the necessary actions to ensure the return of the original administrative file from Compliance Case Processing (CCP) and will also create a "DUMMY FILE" which they will forward to the DIMS Team for ACDS Carding and transmission to the appropriate Counsel Office.

    • Upon return of the original administrative file from CCP, CTS will use AIMS CC: AMCLSE to update AIMS to Appeals Unassigned Status 81 and process the case to the Appeals Office aligned with the designated Counsel Office.

    • Upon receipt of the original administrative file from CTS, APS will update ACDS to reflect the original administrative file has been received and forward the administrative file to the Counsel Attorney, or the ATE for association with the "DUMMY FILE."



    SND is Defaulted and has been assessed - AIMS Controls are closed Status 90:

    • CTS prepares Form 3177, Notice of Action for Entry on Master File to input CC: STAUP (15) cycles to prevent the issuance of balance due notices to the taxpayer.

    • CTS provides the items listed below to the Appeals DIMS Team via EEFax:

    1. Verification that the CC: STAUP is input

    2. Copy of the docket list page identifying the taxpayer, tax period(s) docket number, and Appeals Office

    3. Copy of the closed control care showing the date the SND was issued

    4. Copy of Form 5348, AIMS/ERCS Update prepared for CTS to update AIMS to Status Code 24. (CTS will reopen AIMS in Status Code 21, then update to Status Code 24)

      Note:

      CTS cannot input the CC: AMSTUR in the same cycle the AIMS controls were closed to Status 90.


    • Once the case is re-established in AIMS Status 24, CTS takes the following additional actions:

    1. Retrieve the Form 5344, Examination Closing Record from RGS CEAS

    2. Input the CC: AMCLSE and process the re-constructed file to Appeals for association with the original administrative file retrieved by APS from CCP

    3. Archive the RGS electronic file so Appeals can gain access and view the record

  10. Upon receipt of the EEFax documents from CTS, DIMS will:

    • Create the skeletal ACDS Record

    • Attach the EEFax documentation to the ACDS Record

    • Use CC: ESTAB to request the original administrative file for the applicable APS Office

    • Identify in ACDS Note that CC: ESTAB is input

    • Transfer the ACDS skeletal record to the applicable APS Office

    • Close DIMS

  11. Upon receipt of the ACDS record from DIMS, the APS Office will:

    • Accept the transfer of the ACDS record into their AOC

    • Access the documentation attached to the ACDS record to determine adjustment actions required to correct the taxpayer’s account

    • Request written authorization from the Counsel Attorney to abate the default assessment

    • Process the abatement of the CCP assessment once written approval is received from Counsel (see IRM 8.20.6.8.1, Interim Abatements Authorized by ATE/ATM/Counsel Attorney for additional guidance on interim abatement actions.)

    • Use CC: FRM77 to post a TC 521 cc 72 to the taxpayer’s account to establish the Master File "-W" Litigation Freeze on IDRS for each applicable tax period

    • Use CC: AMSTUB to update AIMS controls to Status 82, once AIMS controls are re-established and placed in AIMS Status 81

    • Update ACDS to correct all applicable fields including the Statute Date and the Statute Code

    • Forward the administrative file to Counsel once it’s received as a result of DIMS CC: ESTAB request for association with the dummy file

    • Document the PEAS CAR with actions taken

    • Monitor all transactions until fully posted to the account(s)

    • Close PEAS once all necessary actions are taken and monitoring is completed

  12. See the list below for links to Compliance Source Contacts and References:

    • AIMS/ERCS Contacts

    • ASFR Contacts

    • ASFR Brookhaven Coordinators

    • ASFR - Reconsideration Returns - Centralized Processing Sites

    • AUR Coordinators

    • Automated Underreporter Contacts by TC 922 DLN

    • BMF AUR Program (Ogden)

    • Campus Directory

    • Ogden Campus Automated Underreporter (AUR) Operations Compliance Functional Liaisons

    • SB/SE Area Office (by PBC) and Campus Contacts

    • Statutory Notices of Deficiency - Exam Technical Services

    • Return and Income Verification Services (RAIVS) Campus Contacts

    • IRM 3.17.46.5.7.2, Non-Petitioning and Petitioning Spouse Accounts

    • IRM 21.6.8, Individual Tax Returns, Split Spousal Assessments (MFT 31 / MFT 65)

8.20.6.8.1  (07-01-2016)
Interim Abatements Authorized by ATE/ATM/Counsel Attorney

  1. Upon receipt of the written verification and/or approval of the ATE/ATM/Counsel Attorney to authorize the abatement of a premature assessment, the APS Tax Examiner will analyze the taxpayer’s account(s) and take the appropriate action(s) to correct AIMS, IDRS, and ACDS.

  2. Follow the steps below to process the abatement of the default assessment:

    1. Verify the TC 520 cc 72 is "-W" Litigation Freeze is posted to each applicable tax module

    2. Prepare and input account adjustment document(s) to reverse the premature default assessment

    3. See IRM 8.20.6.8.1 (3) if AIMS controls are not yet re-established

    4. See IRM 8.20.6.8.1 (4) if AIMS controls are re-established

    5. Use the appropriate Priority Code to bypass any unpostable condition(s)

    6. Monitor the account for posting of abatement transaction(s)

    7. Notify Counsel when the abatement has posted and forward the account adjustment documents for association with the docketed case file

    8. Document actions taken in the PEAS CAR and close PEAS

  3. If AIMS controls are closed and have not yet been fully re-established (TC 424 posted but no 420), prepare Form 8485, Assessment Adjustment Case Record to abate the premature assessment.

    • Enter Priority Code 1 (see (3) Reminder below)

    • Enter Hold Code 4

    • Annotate in the Remarks section: "Priority abatement needed - timely filed petition received MM-DD-YYYY."

    • Depending on the day of the IDRS cycle on which the non-AIMS adjustment is input, full AIMS controls may or may not post prior to the adjustments transactions.

    • For additional guidance on processing CC: ADJ54 adjustments see IRM 8.20.6.18.3, Partial Interim Assessment/Abatement Non-AIMS CC: REQ54/ADJ54

  4. If AIMS controls have already been re-established (TC 420 posted), prepare Form 5403, Appeals Closing Record to abate the premature assessment via CC: AMCLSF.

    • Enter Priority Code as needed to avoid an unpostable

    • Enter Hold Code 4

    • Annotate in the Remarks section: "Priority abatement needed - timely filed petition received MM-DD-YYYY."

    • For additional guidance on processing CC: AMCLSF adjustments see IRM 8.20.6.18.2, Partial Interim Assessment/Abatement AIMS CC: AMCLSF

    Reminder:

    All transaction codes and item reference numbers input with the premature assessment must be reversed. Priority Code 1 will allow a Non-AIMS adjustment to post even though a TC 42X is on the account. Hold Code 4 will hold both the notice and any credit posted to the account.

    Note:

    IRM 4.8.9.25.7, Status 90 Cases, outlines the steps used by Exam Technical Services to input CC STAUP and prepare and send a Field Exam prematurely defaulted docketed file to Appeals (including Command Code AMSTUB). Premature assessment cases require APS actions as outlined above.

  5. Links to references for Unpostables (UPC) caused when an input transaction is within $10.00 of a previously posted transaction are provided below:

    • IMF UPC 158 Reason Code 1 IRM 3.12.179.53, UPC 158 Estimated Penalty/Duplicate Assessments/Abatements

    • BMF UPC 328 Reason Code 2 IRM 3.12.279.119, UPC 328 Potential Duplicate Transaction

    • Document 6209 Section 8B - Master File Codes 2 - Unpostable Codes - GUF

8.20.6.8.2  (07-01-2016)
Petitioning/Non-Petitioning Taxpayer, or Non-Petitioned Year(s) in Multiple Year "Compliance-Issued" SND

  1. Upon receipt of the administrative file from a Compliance function, where only one spouse is determined to have petitioned the USTC, APS will review the file for the following items and when TXMODA or AMDISA is not included, performs IDRS research to secure a current TXMODA and AMDISA:

    • Review the TXMODA to verify that the submitting function has input TC 971 AC 103 on the MFT 30 account for the NPS TIN

    • Review the AMDISA to verify that the submitting function has requested AIMS controls for the MFT 30 account, and updated AIMS to Appeals Status 81

    • Verify the file includes the original return, or acceptable documentation in the absence of an original return

    • Verify that CC: ESTAB either has been input by the originating function or take action to input CC: ESTAB if the administrative file has been prematurely released SND suspense.

  2. When a Statutory Notice of Deficiency is issued by a Compliance Function (not Appeals), on an MFT 30 Married Filing Joint (MFJ) account, and only one of the spouses files a petition with the United States Tax Court (USTC), the originating function must prepare a dummy file for the Non-Petitioning Spouse (NPS) for continued suspense under their jurisdiction.

  3. The originating function retains jurisdiction of the NPS SND until one of the following occurs for the NPS SND remaining in their suspense:

    • Non-Petitioning Spouse files a separate petition to the United States Tax Court (USTC)

    • Non-Petitioning Spouse submits a signed waiver of agreement for the SND

    • Non-Petitioning Spouse SND defaults

  4. If the NPS files a separate Petition to the USTC, the Compliance function will follow their existing procedures to transmit the NPS Dummy file to Appeals for assignment to the Counsel Attorney who has jurisdiction over the Petitioning Spouse’s docketed case.

  5. If the NPS does not file a separate Petition, upon conclusion of the NPS SND suspense, either by signed waiver, or default, the Compliance function with jurisdiction for the NPS SND, will process the NPS MFT 31 assessment and forward the NPS assessment verification along with the NPS dummy file to APS.

  6. Upon receipt of the NPS Dummy file and NPS assessment verification, APS will update ACDS per the instructions provided in IRM 8.20.6.7.10.3, ACDS and AIMS Updates on Non-Petitioning Spouse SND Cases and timely transmit the NPS Dummy file to Counsel for association with the Petitioning Spouse’s docketed case under Counsel Jurisdiction.

  7. Although Appeals has no jurisdictional authority over the NPS assessment or NPS Assessment Statute Expiration Date (ASED) on a Compliance-Issued SND, the APS PTM can authorize an MFT 31 protective assessment against the NPS for the tax and penalty amount identified on the "Compliance-Issued" SND under the following circumstances:

    1. An encrypted email is sent by the APS TE (always include your PTM in the email Cc line) to the originating Compliance SND function manager to request written verification that the Compliance function is controlling the ASED for the NPS - and no reply is received within 5 business days;

    2. The Counsel Attorney with jurisdiction for the Petitioning Spouse verifies in writing that the petition does not cover the NPS; and

    3. The ASED for the NPS assessment is within 60 days of expiring thus justifying the protective assessment action by Appeals.

  8. Upon written approval from the PTM for APS to make a protective assessment against the NPS MFT 31 account, APS will follow the procedures in IRM 8.20.6.7.10.1, "Appeals-Issued" SND Petitioning/Non-Petitioning Spouse for processing the NPS MFT 31 protective assessment on the "Compliance-issued" SND.

  9. APS will not initiate a MFT 31 protective assessment against the NPS for a "Compliance-issued" SND under the following circumstances:

    • Compliance has already established the MFT 31 account and the SND assessment is pending, or

    • Compliance verifies in writing that they are controlling the ASED for the NPS and will forward the assessment verification to Appeals with the dummy file, or

    • Counsel confirms that the spouse is included on the petition.

  10. If one or more tax periods included on a "Compliance-Issued" SND are not included on the petition, APS must take the appropriate actions. See the table below for applicable decision points:

    If And Then Chart for Petitioned/Non-Petitioned Tax Period(s) in a Multiple Year "Compliance-Issued SND"

    When And Then
    Compliance issued the SND CTS has submitted the entire administrative file to Appeals including the Non-Petitioned Tax Period(s), APS must:
    • Use secure email to notify the CTS Contact that one or more tax periods were not included on the petition.

    • Verify using CC: AMDIS, that only the AIMS controls for the petitioned tax periods have been transferred into Appeals AIMS Status 81.

    • Use CC: AMSTUB to back-down AIMS controls for any non-petitioned tax period. This ensures that the non-petitioned tax period’s ASED remaining in Compliance’ Jurisdiction will continue to be monitored and protected by Compliance.

    CTS has retained the original tax return or a copy of the return for the Non-Petitioned Tax Period(s) upon secure email notification from APS that there is one or more Non-Petitioned Tax Period(s), CTS verifies they still have AIMS Controls and a Dummy File for monitoring of the disposition of the SND and they will make the assessment if an agreement is received or the SND defaults for the Non-Petitioned Tax Period; APS must
    • Ensure ACDS properly contains only the Petitioned tax periods with their correct ASED and does not contain the Non-Petitioned Tax Periods remaining under Compliance Jurisdiction.

    • Include in the administrative file, a copy of the secure email exchange with Compliance to establish the responsible party for ASED protection purposes and notification to the Counsel Attorney as to why the petitioned case does not include all SND tax periods.

    CTS has not retained the original tax return or a copy of the return for the Non-Petitioned Tax Period(s), upon secure email notification from APS that there is one or more Non-Petitioned Tax Period(s), Technical Services verifies that they mistakenly updated the AIMS Status for the Non-Petitioned Tax Periods and transmitted the Non-Petitioned Tax Returns to Appeals, APS must:
    • Consult with Counsel to alert them of the Non-Petitioned Year(s) prior to returning them to CTS,

    • Verify in writing that they will return the NPY(s) AIMS Control(s) to CTS, and

    • Transmit the Non-Petitioned Tax Period(s) back to CTS for their continued monitoring and suspense

    Reminder:

    Neither Appeals, nor Counsel has jurisdiction of the "Compliance Issued" SND tax periods omitted from the petition. The ASED for the Non-Petitioned Tax Period(s) is the responsibility of the function with jurisdiction over the SND, in this example, the responsibility for protection of the ASED remains with CTS.

    At any time, it is determined that the ASED is at risk of expiring without a timely assessment being processed the APS PTM determines that a Protective Assessment must be processed to protect the ASED, the APS PTM will direct the APS TE to prepare a Protective Assessment and submit it for processing prior to the ASED.

    Reminder:

    Statute Protection is APS Highest Priority

    Note:

    Once the ASED is protected and the complete DLN is assigned to the assessment, if the status of the previously Non-Petitioned Tax Period changes to Agreed or Petitioned, APS will coordinate with CTS and/or Counsel to determine if additional adjustments to the account are required.

  11. Using the guidelines provided in IRM 8.20.6.2.6, ACDS Attachments, APS TE's must associate documentation of their follow-up actions taken per (10) above with the ACDS WUNO for the petitioned tax period(s). If the APS TE also has an open PEAS record for the respective WUNO, they must also document their actions within their PEAS Case Activity Record (CAR).

8.20.6.8.3  (07-01-2016)
"Compliance-Issued" SND - Counsel Returns Dummy File After Answer for Appeals Consideration

  1. If no administrative file is received and Counsel answers the petition using the dummy file documents, then Counsel will include the following items within the dummy file:

    • Answer

    • Designation of Place of Trial

    • Other pertinent information from the legal file

    Note:

    Appeals uploads the petition to ACDS so it will not be included within the file returned to Appeals by Counsel.

  2. Counsel will then send the dummy file for consideration DIRECTLY to the Appeals office and ATM identified on the orange Appeals/Counsel Routing Coversheet APS previously placed on top of the dummy file.

8.20.6.9  (07-01-2016)
Docketed Case Settled by Appeals - STIPFF

  1. After the Appeals office secures signed decision documents, the STIP Package is forwarded to Field Counsel.

  2. The STIP Package includes the following documents:

    1. Two signed decision documents with original signatures for filing with the Tax Court

    2. Approved Form 5402, Appeals Transmittal and Case Memo

    3. Appeals Case Memo (ACM), if prepared in addition to Form 5402

    4. Settlement computation

  3. STIPFF is an ACDS Action Code that means "Stipulation for filing." When Appeals settles a docketed case, Appeals retains the administrative file and forwards only the STIP Package to Counsel for entry of the Decision. STIPFF is the term used to categorize the process of controlling the retained administrative file. STIPFF procedures apply to both Field and Campus APS.

  4. APS verifies that the admin file includes all returns listed on the Form 3210 and controlled on ACDS.

    STIPFF - Administrative File Retained in Appeals

    If And Then
    ATM/ATE forwards STIP Package to Counsel sends Administrative File to APS for STIPFF, APS:
    • Acknowledges the Form 3210

    • Updates ACDS:

    1. ACTION = STIPFF

    2. TODATE = Date ATM mailed STIP Package

    • Places the administrative file in STIPFF Suspense in alphabetical order

    ATM/ATE associates STIP Package with administrative file sends both the STIP Package and the administrative file to APS, APS:
    • Acknowledges the Form 3210

    • Forwards the STIP Package to Counsel using Form 3210

    • Ensures calendar cases are transmitted timely

    • Updates ACDS:

    1. ACTION = STIPFF

    2. TODATE = Date APS mails STIP Package

    • Places the administrative file in STIPFF suspense in alphabetical order

  5. Rarely, Counsel will request both the admin file and STIP package.

    STIPFF Process - Administrative File Sent to Counsel

    If And Then
    Counsel requests both the STIPFF package and the administrative file the ATM/ATE sends both items to Counsel. The ATM prepares an ACDS ACTION/TODATE Update Request and submits it to their servicing APS email address. APS updates ACDS:
    1. ACTION = STIPFF

    2. TODATE = Date ATM/ATE sent both the STIP Package and Admin. File to Counsel

    3. LACTION = AFINCXXX
      AFINC = Admin File in Counsel
      XXX = Counsel Office Initials

      Example:

      Phoenix Counsel = PHX

    Counsel requests both the STIPFF package and the administrative file the ATM/ATE sends both items to APS for processing to Counsel. APS:
    • Acknowledges the Form 3210

    • Forwards the admin file and STIP Package to Counsel using Form 3210

    • Ensures calendar cases are transmitted timely

    • Updates ACDS:

    1. ACTION = STIPFF

    2. TODATE = Date APS sends both the STIP Package and Admin. File to Counsel

    3. LACTION = AFINCXXX
      AFINC = Admin File in Counsel
      XXX = Counsel Office Initials

      Example:

      Phoenix Counsel = PHX

8.20.6.9.1  (07-01-2016)
Streamlined Docketed "EZ" Closing Procedures

  1. On April 17, 2015, the Interim Guidance Memorandum AP-08-0415-0004Streamlined Docketed "EZ" Closing Pilot went into effect for specific Appeals and Counsel Offices.

  2. The Streamlined Docketed "EZ" Closing Procedures process may include additional Appeals Offices and Counsel Offices. The Docketed "EZ" Close (Participating Offices) listing is available on the Appeals Guidance, Policy, Research page in the "Guidance / IRM" section.

  3. Docketed cases settled using the Docketed "EZ" Closing process will:

    • Include a Feature Code "EZ" on the ACDS Record

    • Include ACDS Attachments for the following documents:

    ACDS Attachment Document: Uploaded by: ATM’s Secretary Actions:
    Form 5402, signed by the ATM
    • ATE

    • ATM Reviews and Approves

    • ATM Uploads Signed Form 5402

    • ATM enters ACAPDATE on ACDS

    Reminder:

    ATM prints Direct Ship Coversheet and attaches it to the front of the case file.

    Date:
    • Letter(s) 5534

    • Decision documents

    • Attachments

    • Date and retain the administrative file copies

    Using the envelope(s) provided by the ATE, Mail:
    • Letter(s) 5534

    • Decision Documents

    • Attachments

    Other ACDS Attachments:
    • Appeals Case Memorandum (if prepared)

    • Form 5403 Instructions

    • Settlement Computation (Form 5278)

    • Decision Document (WORD format)

    Other Files (as applicable)
    • May/Sequa Worksheet

    • 6404(g) Worksheet

    • Form 2285

    ATE
    • Generate Form 3210 for transmission of the case file to APS


    On the ACDS Record, Enter:
    • ACTION = STIPFF

    • Feature Code = EZ


    Transmit the case file to APS for STIPFF suspense, until the decision is entered.
  4. APS will:

    • Receive the case

    • Acknowledge the Form 3210

    • Update the ACDS ACTION = STIPFF

    • Verify that Feature Code = "EZ" is present on ACDS

    • Update ACDS with LACTION = "ECLOSE"

      Reminder:

      If the Feature Code "EZ" is not already entered, update the Feature Code to "EZ" using the validation tracking system (VTS) and identify the update as an Error Correction.

  5. Once all actions are taken in IRM 8.20.6.9.1 (4) above, APS will place the case in STIPFF suspense until:

    • Notified that case must be sent to Counsel for trial preparation

    • Notified that the decision is entered and attached to the ACDS record

      Reminder:

      Counsel will not upload decisions that do not contain a waiver paragraph until the 100th day after the entered decision date because without the waiver paragraph, either the petitioner or the Service may file an appeal of the Tax Court Decision. The tax examiner will not include an agreement date on the assessment document when the entered decision does not contain a waiver paragraph. Due to the additional Counsel suspense time, the ASED may be within 60 days. Always verify the ASED and take all necessary processing actions to timely process the assessment.

  6. When a docketed "ECLOSE" case is ready for APS closing action, Counsel will "Green Light" the closing by uploading the following attachments to the ACDS Record:

    • Entered Decision Document

    • Form 1734, Transmittal Memorandum (or equivalent)

  7. The APS Reports Team monitors and uploads the following reports to the shared website weekly (or as otherwise directed):

    • STIPFF

    • DECENT

    • ORDENT

  8. The APS Reports Team works the DECENT Report monthly to identify cases with a Feature Code "EZ" that are ready for closure.

    Reminder:

    The APS Reports Team notifies the controlling APS PTM that the closing information is uploaded to ACDS and the administrative file is then pulled from STIPFF suspense and assigned on PEAS for closing actions.

  9. The APS TE will:

    • Receive the case assignment on PEAS

    • Secure the administrative file

    • Verify all necessary documents are attached to the ACDS Record

    • Verify the entered decision document includes the waiver paragraph or does not include the waiver paragraph

    • Verify the ASED for each tax period

      Caution:

      If the decision document does not include the waiver paragraph and at least 100 days have not elapsed from the decision entered date, notify your PTM because the case cannot be closed prior to the 100th day.

  10. Once the APS TE verifies the case is ready to close, follow procedures in IRM 8.20.7, Docketed Cases to process and close the case.

8.20.6.10  (07-01-2016)
Docketed Case Settled by Appeals, Counsel Prepares the STIP - PREPSTIP

  1. ACTION PREPSTIP is used when Appeals settles the case, but Counsel prepares the decision document. APS enters action code PREPSTIP and the TODATE (date case placed in PREPSTIP) on the update case/returns screen.

  2. The admin file is sent to Counsel and copies are NOT maintained by APS.

    PREPSTIP Process

    If Then
    The ATM/ATE sends the admin file to Counsel. The ATM prepares an ACDS ACTION/TODATE Update Request and submits it to their servicing APS email address. APS updates ACDS:
    1. ACTION = PREPSTIP

    2. TODATE = Date ATM/ATE sent the Admin File to Counsel

    The ATM/ATE sends the Admin file to APS to send to Counsel. APS:
    • Acknowledges the Form 3210

    • Forwards the admin file to Counsel using Form 3210,

    • Ensures calendar cases are transmitted timely

    • Updates ACDS:

    1. ACTION = PREPSTIP

    2. TODATE = Date Admin File sent to Counsel

    Note:

    When the Tax Court Decision is Entered (DECENT), or the Tax Court Order is Entered (ORDENT), the ACDS ACTION Code PREPSTIP is replaced with the next applicable action e.g., DECENT, ORDENT. This process is normally managed by the APS Reports Team.

8.20.6.11  (07-01-2016)
Docketed Case Not Settled by Appeals - Jurisdiction Released to Counsel DCJUR

  1. When Appeals concludes docketed case consideration without settlement, Appeals forwards the case to Counsel. Ordinarily a settlement computation is not required in an unagreed docketed case, however, if the ATE concedes an issue, a settlement computation might be necessary.

  2. When APS receives the administrative file with an approved Form 5402 releasing jurisdiction, APS will take the following actions:

    1. Examine the file to ensure that all returns, documents, and other papers are included in the folder

    2. Date Form 5402 in the upper right corner

    3. Date and mail the letter addressed to the petitioner or representative advising that jurisdiction has been released to Counsel

    4. Place a copy of the letter, Form 5402, and the ACM in the administrative file

    5. Update ACDS as shown in IRM 8.20.6.11 (3) below

    6. Transmit the administrative file to Counsel using Form 3210, or Form 2828

  3. Update ACDS:

    • Using Special Activities> Closing Code 42/43

    • Enter CLOSINGCD 43 which moves the case from Part 2 to Part 3 and updates ACDS Action to DCJUR

    • TODATE = the date administrative file sent to Counsel

  4. When a case moves from Part 2 to Part 3, it shows in the ATE's inventory as suspense status "E/T" .

  5. If Form 2828, Transmittal Memo is used, establish a follow-up "tickler" control until Counsel acknowledges receipt of the administrative file.

  6. When Counsel returns the administrative file for final closing, upon receipt, verify the file received includes all returns, and forms required for closing the case. Documents should be in chronological order with the most recently dated documents on top. The case is then assigned by the PTM or Lead to the appropriate APS TE for closing action(s).

  7. If the category on ACDS is IC (Industry Case), CIC (Coordinated Industry Case), or the case is an Estate and Gift Tax case, notify the PTM that a CIT Referral Form must be prepared and submitted to the *AP Complex Interest mailbox for assignment of an APS-CIT TE to process the entered decision or entered order and ACDS closing. Upon response from the *AP Complex Interest mailbox identifying the APS-CIT TE assignment, the case will be transmitted to the APS-CIT TE at the address provided in the email for closing actions.

  8. The APS Reports Team runs the DCJUR follow-up list monthly to determine whether Counsel has returned the administrative file.

8.20.6.11.1  (07-01-2016)
Counsel Receives and Accepts Delinquent Return - Interim Adjustment Procedures

  1. On occasion when a case is in Counsel Jurisdiction based on a Tax Court petition challenging a Substitute for Return (SFR), the petitioning taxpayer(s) may submit a delinquent return to the Counsel Attorney for consideration. This may occur to allow for a change in filing status per IRC 6013(b)(3)(A)(i) or (iii).

  2. Counsel will determine whether to accept the return as a basis for settlement and send to Appeals for interim adjustment prior to entering a decision document.

  3. When Counsel accepts the return, they will take the following actions:

    1. Verify that the delinquent return includes the correct name(s) and TIN(s) for the taxpayer(s)

    2. Verify that the delinquent return is signed and dated by the taxpayer(s)

    3. For any joint taxpayer who is not a party to the Tax Court Case, secure a signed Form 870-AD, Offer to Waive Restrictions on Assessment and Collection of Tax Deficiency and to Accept Overassessment to reflect the return amount.

    4. Prepare the most recent version of Form 3608, Counsel Request For Tax Computation Work

    5. Upload the return, Form 3608, Form 870-AD (if applicable) and Statutory Notice of Deficiency (if not already attached to the petition) to the Appeals Case Support Intake list.

  4. For a Potential Overpayment delinquent return, the attorney will identify the Refund Statute Expiration Date (RSED) on the Form 3608. If the RSED is barred for refund or offset, the overpayment must be moved to the Excess Collections File and cannot be refunded to the taxpayer(s), or offset to another tax period.

  5. Upon receipt of the SharePoint computation request from Counsel, the TCS manager assigns Counsel’s request to a TCS for tax computation work and updates the status of the SharePoint request accordingly.

  6. TCS prepares the applicable computation forms, schedules and other documents as applicable, using existing procedures (see list below) and submits to Counsel for their review and approval:

    • Form 5403 Instructions (always required)

    • SEQUA Spreadsheet (required when applicable)

    • Form 2285 (required when applicable)

    • Other forms and schedules as necessary

  7. After Counsel reviews and approves the TCS computations, Counsel generates a new SharePoint request using the Appeals Case Support intake form and uploads he completed and approved documents as attachments to the ACDS record. Counsel also updates the Appeals Case Support Intake List to create an assignment to the APS Technical Advisor (TA) for assignment to the appropriate PTM.

  8. Upon receipt of the request from the APS TA to process the Delinquent Return using TCS computations and Form 5403 Instructions, the Processing Team Manager (PTM) assigns the interim action to an APS TE on PEAS.

  9. Upon receiving the PEAS assignment, the APS TE will access the ACDS attachments listed below:

    • Form 3608, Counsel Request for Tax Computation Work

    • Form 5403 Instructions

    • Delinquent Return (APS will associate this with the Form 5403 CC: AMCLSF adjustment source document)

    • Signed Form 870-AD, Offer to Waive Restrictions on Assessment and Collection of Tax Deficiency and to Accept Overassessment to identify the "waiver date."

      Caution:

      APS will use the waiver date to verify the ASED but the waiver date will NOT be associated with the TC 300 tax assessment because the assessment is not made under IRC 6213(a) deficiency procedures and is not eligible for the IRC 6213(a) underpayment interest suspension.

  10. Using the information provided in the ACDS attachments, APS will:

    • Verify the Assessment Statute Expiration Date (ASED) and/or Refund Statute Expiration Date (RSED).

    • Perform AIMS, IDRS, and Entity research to verify the current status of the taxpayer’s account and database information.

    • Input all Entity Changes as appropriate using IDRS CC: INCHG, or the IAT Address Tool.

    • Update the ACDS record to reflect the correct Name and Address information (contact your PTM and/or Counsel Attorney if you have questions about the entity changes)

    • Identify the expected 23C date for posting of the entity changes, set a PEAS follow-up date and monitor for posting of the entity changes to ENMOD and filing status change to TXMODA. Do not suspense the case while continuing to process the delinquent return as provided below.

      Reminder:

      Using the PEAS Follow-up Feature instead of using PEAS Suspense, serves to set a reminder while allowing additional PEAS Direct Time entries for the remaining processing activities. Always verify that the entity and filing status changes fully post before the input of any account adjustment transactions. This is necessary to avoid unpostables, erroneous notices and erroneous refunds.



    • Document in the PEAS Case Activity Record (CAR). See table in the Example below:

      Example:

      PEAS Case Activity Record (CAR) Entries
      a. CC: INCHG input 23C date = MM-DD-YYYY
      b. ACDS updated to correct name line and address
  11. APS will prepare an AIMS CC: AMCLSF partial assessment to post the tax, penalty(ies), ASED, Item Reference Codes and Credit Reference Codes reflected on the tax computations to the taxpayer’s account.

    Reminder:

    #1 - Always enter Hold Code (HC) 4 in Item 07 of Form 5403 to hold both the notice and any credit. The notice will not be issued at any time and if the account adjustments result in an overpayment, the overpayment will only be released upon posting of the TC 300 entered via CC: AMCLSA. If the RSED is barred, APS will transfer the overpayment to Excess Collections when the case is closed.

    Reminder:

    #2 - Always use the appropriate Priority Code (PC) in Item 09 of Form 5403 to bypass an unpostable condition. Entering PC 9 causes the computer programming to generate IRC 6651(a)(2) Failure to Pay Penalty from the Return Due Date (RDD).

  12. APS will complete the Form 5403 Items listed below:

    Form 5403, Appeals Closing Record Entries

    Form Field Entry
    Command Code AMCLSF (Partial)
    Items 1 thru 4 Must match the entity information verified by Counsel
    Blocking Series 78X
    Item 07 Hold Code 4
    Item 08 BLANK (the agreement provides assessment authority but does not qualify for IRC 6601(c) interest suspension)
    Item 09 Priority Code 9 (to computer generate FTP Penalty TC 276 from the RDD)
    Item 12
    • TC 300 assessment

    • TC 160 Failure to File Penalty (if applicable)

    • TC 170 Estimated Tax Penalty (if applicable)

    Item 13 Disposal Code 03
    Item 14 Enter the ASED determined by adding 3 years to the earlier of the F-870-AD "Date Accepted For Commissioner" or IRS (Counsel) Received Date affixed on the Delinquent Return. This will post the most conservative ASED to the taxpayer’s account and bypass Unpostable Code 150 RC 3, 5 and 6.
    Item 15 Entries identified on Form 5403 Instructions prepared by TCS
    Item 800 Enter Appeals results
    Item 36 Enter the hash total
    Item A Identify the entity changes input per (8) above
    Items C, D, E, F Enter applicable information and date(s)

    Reminder:

    Do NOT input the AMCLSF adjustment(s) until the entity changes have posted. Premature input may result in one or more unpostable conditions.

  13. Once the APS TE completes preparation of the adjustment document for the interim adjustment, APS will document their actions in the PEAS Case Activity Record (CAR) and then will place the case in PEAS Suspense until the PEAS Follow-up date set for monitoring of the Entity change transaction code(s) posting date identified in IRM 8.20.6.11.1 (10) above.

  14. Once the Entity change transaction codes post, the APS TE will remove the case from PEAS Suspense and input the AMCLSF entries.

  15. Upon receiving a "Request Completed" response APS will document the partial DLN in Item 15b on Form 5403 and create an electronic record for attachment to the ACDS record.

  16. APS will attach the Form 5403, Appeals Closing Record CC: AMCLSF to the ACDS record

  17. APS will notify the Counsel Attorney via encrypted email when the AMCLSF has been input. The Counsel email notification will be prepared as follows:

    • Subject Line: "Docket # NNNNN-YY Interim Assessment Input 23C date = MM-DD-YYYY"

    • Attachment: Form 5403, Appeals Closing Record CC: AMCLSF

  18. APS will prepare the adjustment source document for shipment to files for association with the Form 5147, Transaction Record generated at the Campus Files Function, and transmit the following documents assembled in the order provided below to Campus Files Function using Form 3210, Document Transmittal:

    1. Form 5403, Appeals Closing Record

    2. Copy of the delinquent return

    3. Form 870-AD

    4. TCS computations

    5. Form 5403 Instructions

  19. APS will document the PEAS Case Activity Record (CAR) with the actions taken and place the case in PEAS Suspense to monitor for posting of the adjustments.

  20. Once the adjustments post, remove the case from PEAS Suspense and close PEAS.

  21. When the Counsel Attorney determines that the delinquent return fully settles the taxpayer’s case, they will prepare the Tax Court Decision Documents for "No additional tax deficiency" without the Waiver Paragraph. Counsel will retain the administrative file until the expiration of the 90 day appeal period. Once the 90 day appeal period has expired, Counsel will transmit the case to APS for processing of the Entered Tax Court Decision. See IRM 8.20.7, Closing Procedures for closing guidance.

8.20.6.12  (07-01-2016)
Docketed Reconsideration Cases (Closing Code 42) - Jurisdiction Returned to Appeals by Counsel

  1. Any docketed case may be transferred between Counsel and Appeals by agreement when transfer may promote a more efficient disposition of the case.

  2. If a Campus Appeals office forwards a case to Field Counsel for "trial preparation" and, subsequently, the Petitioner or Counsel of Record wish to discuss "settlement," presents new information or decides to settle based upon Appeals' settlement offer, Field Counsel may return case jurisdiction to Campus Appeals when all agree there is a strong possibility of settlement and the case is not on a Tax Court calendar.

  3. If the case is on a Tax Court calendar, Field Counsel may return the case to Field Appeals for reconsideration.

  4. If Counsel returns the case to Appeals for reconsideration, Appeals will accept jurisdiction of the case and the following administrative actions will be taken:

    1. APS uses ACDS Special Activities> Closing Code 42/43 to update the record from Part 3 to Part 2 with Closing Code 42. This action auto-populates the FROMDATE for the DCJUR action and removes the case from the DCJUR follow-up list.

    2. If Counsel returns the case directly to the ATE/ATM, the ATE/ATM must submit an ACDS Update Request to their servicing APS Team to update ACDS Closing Code to 42.

    3. If an AC/FR was previously input on the Case Activity Record (CAR), the ATM will input **RR to reflect the case is returned to the assigned technical employee. This will change the prior AC/FR to MS. Or, if the case needs to be reassigned to a different technical employee, the ATM will reassign and input **RR on the CAR.

    4. After reconsideration, the ATE will input AC/FR and submit the case to the ATM.

    5. The ATM will input a revised ACAPDATE and submit to APS for closing.

8.20.6.13  (07-01-2016)
United States Tax Court Calendars for Trial Sessions

  1. The United States Tax Court (Tax Court) regularly issues calendars for trial sessions. The calendars list petitioner(s) names, case docket numbers, trial session date and location (city and state). A trial session’s calendar also lists cases in which motions are calendared for hearing at a trial session.

  2. The Tax Court posts all session schedules to its web site, http://www.ustaxcourt.gov.

  3. Tax Court judges sometimes issue orders requesting specific actions by the IRS that may impact Counsel/Appeals calendar time frames or document submissions. Appeals employees should pay particular attention to the requirements of any orders of this nature issued by a Tax Court judge.

8.20.6.13.1  (07-01-2016)
ACDS Tax Court Calendar Program (TAXCAL)

  1. The Tax Court Calendar program (TAXCAL) is a sub-system of ACDS developed and maintained by Appeals.

  2. The ACDS Tax Court Calendar (TAXCAL) program provides Appeals offices with a method to identify and monitor Tax Court Calendar cases and generate Tax Court Calendar reports within ACDS.

  3. As soon as a calendar is established, Counsel provides Appeals with an electronic file for each Tax Court Calendar to upload into TAXCAL. Fresno APS is responsible for uploading all Tax Court Calendars onto TAXCAL.

  4. The ACDS Tax Court Calendar functionality is menu based and user-friendly. Based upon the permissions of the user, the program allows appropriate functionality.

  5. The ACDS permissions levels for Tax Calendar are as follows:

    1. (14000) Tax Calendar

    2. (14100) Tax Calendar, User

    3. (14200) Tax Calendar, Coordinator

    4. (14300) Import Electronic Calendar - restricted permission

  6. ACDS web-based technology allows the program to match a docket number to any case on ACDS, in any Appeals office.

  7. A calendared case input on a Tax Court calendar created in any Appeals office will appear on the appropriate group's or ATE's report.

  8. The TAXCAL program provides the following functionality:

    • Electronically import or manually create an ACDS Tax Court Calendar

    • Match a calendar case to an ACDS case

    • Provide a status report for Counsel

    • Notify the assigned ATE when the case appears on a calendar

    • Link on the TAXCAL record to e-mail the calendar coordinator or assigned ATE

    • Add comments to the TAXCAL record

  9. Tax Court Calendar actions are the responsibility of both the Field Appeals and Campus Appeals ATEs for their assigned cases.

  10. A TAXCAL report listing all Dockets on the calendar in Docket Number order should be generated by the Field Appeals office and faxed to the Field Counsel responsible for the calendar within five business days of receipt of the calendar. This list shows the name of the ATE assigned to the case and if the case is unassigned or unmatched. The designated Field Appeals ATM is responsible for resolving unassigned or unmatched cases.

  11. Appeals provides Field Counsel with periodic calendar status reports. The designated Appeals ATM responsible for the calendar generates the report monthly. These calendar status reports are generated from TAXCAL and provide the following information:

    • Name of the docketed case

    • TIN of the docketed case

    • Docket number

    • Name of the ATE assigned the case, if assigned

    • Attorney/paralegal assigned to the case as shown on ACDS

    • Closing code and date closed, if applicable

    • "Status" of the case

  12. The report is forwarded to each Field Counsel responsible for the calendar. Field Counsel updates the list with the name of the attorney/paralegal assigned to the case within two workdays from the date of receipt of the list. Field Counsel delivers or faxes the list back to the Appeals office responsible for the calendar so that the ACDS database can be updated with the corrections. Subsequent lists contain those corrections.

  13. The TAXCAL Users' Manual is posted on the Appeals web site on the ACDS page.

8.20.6.14  (07-01-2016)
DECENT and ORDENT Procedures

  1. Upon receipt of a TLCATS Listing indicating a "Decision" or "Order" was entered by the Tax Court, the APS Reports Team researches ACDS for all cases listed on the TLCATS document with a Decision/Order entered date.

    Actions Upon Receipt of an Entered Tax Court Decision or Order

    IF the case THEN
    is found on ACDS the APS Reports Team will promptly update the following fields in ACDS:
    • ACTION - either DECENT or ORDENT

    • TODATE - the date the Decision/Order was entered

    • Statute - ACDS will calculate the DECENT STATUTE DATE at 150 days from the ACTION TODATE and will populate the STATUTE CODE with 150DAY


    Reminder:

    When a case includes a tax period that has an ASED expiring within 60 days, promptly fax notification to alert the appropriate APS office of the entered Decision/Order so that immediate follow-up actions begin.

    is NOT found on ACDS the APS Reports Team will establish controls on ACDS to ensure statute protection.

8.20.6.15  (07-01-2016)
Dismissed Cases (Entered Orders)

  1. A distinction is made between a case dismissed for lack of jurisdiction and a case dismissed for lack of prosecution.

  2. A dismissal for lack of jurisdiction is not a determination on the merits, and the Order of Dismissal does not reflect a deficiency amount.

  3. A dismissal for lack of prosecution is considered to be a final determination on the merits, and the Order of Dismissal includes a deficiency amount.

8.20.6.15.1  (07-01-2016)
Entered Order to Dismiss for Lack of Jurisdiction

  1. The Tax Court can dismiss a case for lack of jurisdiction for a variety of reasons such as:

    1. Petition was not filed on or before the 90th/150th day for filing a timely petition

    2. Petitioner did not pay the filing fee

    3. Petition was filed by an unauthorized representative of the deceased person (Estate Tax)

    4. Petition was filed in violation of the Bankruptcy Code Stay Provision

    5. Notice of deficiency or notice of determination was not issued for the tax period(s) identified on the petition

    6. Notice of deficiency was not issued to the taxpayer

    7. Notice of deficiency was not sent to the taxpayer's last known address (see (2) below)

  2. Generally a Tax Court dismissal for lack of jurisdiction does not favor the taxpayer, however, the dismissal can be based on circumstances that do favor the taxpayer. For example, a deficiency notice may be determined to be invalid because it was not sent to the taxpayer's last known address. The Tax Court lacks jurisdiction over a case that is based upon an invalid notice.

    1. When the USTC determines that the Statutory Notice of Deficiency was not sent to the taxpayer's last know address, the Appeals Team Manager (ATM) will determine if the ASED is still open or not.

    2. If the ASED is still open, the ATM may request that the ATE prepare and re-issue the statutory notice of deficiency to the correct address.

    3. If the statute of limitation is not open, the ATM will follow barred statute procedures.

  3. When that taxpayer submits a petition in response to a CDP/EH decision letter, 30 day letter, or some other letter that does not contain Tax Court rights, the administrative file or a dummy file may or may not be needed. APS will:

    • Contact the Counsel attorney to confirm whether they plan to dismiss the case and identify if they require the administrative file or dummy file.

    • If Appeals had the case as a non-docketed case and the original WUNO is already closed, follow the steps in the Example below:

      Example:

      Step Action Table - When the Original WUNO is Already Closed

      Step Action
      1. Create a New WUNO - skeletal record on ACDS
      2. Cross-reference the original WUNO in the Note field
      3. Add a Note "TP petitioned erroneously, original admin closed, no dummy file needed"
      4. Leave the case on AOC 00’s database until the dismissal is entered
      5. Upon receipt of the dismissal the case is assigned on PEAS for closing action(s)
    • If there is no previous ACDS record for the taxpayer, follow the steps in the Example below:

      Example:

      Step Action Table - When No Prior WUNO is on ACDS

      Step Action
      1. Create a skeletal record on ACDS
      2. Add a Note "TP petitioned erroneously, original admin closed, no dummy file needed"
      3. Upon receipt of the dismissal the case is assigned on PEAS for closing action(s)
  4. Each Appeals office designates an Appeals Technical Employee (ATE) who is responsible for review of dismissed cases prior to assessment.

  5. See IRM 8.20.7, Dismissed for Lack of Jurisdiction Case Closing for ACDS, AIMS and IDRS closing procedures.

8.20.6.15.2  (07-01-2016)
Entered Order to Dismiss for Lack of Prosecution

  1. Appeals gives no further consideration to cases that are dismissed by the Tax Court for lack of prosecution.

  2. Upon receipt of the Tax Court Dismissal the case is assigned on PEAS to an APS TE for ACDS, AIMS, and IDRS closing actions in compliance with the Order to Dismiss.

  3. See IRM 8.20.7, Dismissed for Lack of Prosecution Case Closing for closing procedures.

8.20.6.15.3  (07-01-2016)
Entered Decision/Order is Vacated

  1. In the very rare circumstance when an entered decision/order is vacated by the court, the entered decision/order which was vacated is no longer in effect.

  2. When APS becomes aware of a vacated Decision/Order, APS will:

    1. Verify with the Counsel Attorney that the entered Decision/Order has been vacated

    2. Update ACDS from PEAS to remove the Action Code DECENT or ORDENT and replace it with DCJUR

    3. Use the date the entered Decision/Order was Vacated as the TODATE

    4. Add a Note: "Decision/Order Entered MM/DD/YYYY Vacated on MM/DD/YYYY"

  3. If the case is returned by Counsel for further Appeals consideration, update ACDS following the procedures in IRM 8.20.6.12 (4), Docketed Reconsideration Cases (Closing Code 42) - Jurisdiction Returned to Appeals by Counsel.

  4. If Counsel does not return the case for further Appeals consideration, but instead sends the case to APS for processing of a new Entered Decision/Order, APS will follow appropriate Docketed case closing procedures in IRM 8.20.7.

8.20.6.16  (07-01-2016)
Appeal of Tax Court Decision

  1. A Tax Court decision in a regular case can be appealed by either the petitioner or the U.S. Government. Counsel retains tried Tax Court case files for 100 days after the Tax Court decision is entered. The 100 days is comprised of the 90 day appeal period + 10 additional days to allow for mailing, receipt and upload of the appeal. The Entered Decision on this case type will not include a waiver paragraph. When 100 days elapse without an appeal being filed by either the petitioner or the U.S. Government, Counsel forwards the case to APS for processing of the entered decision. APS will not include an entry in the Form 5403 Item 08 Agreement Date when processing the entered decision. Follow the procedures below when an appeal of the Tax Court Decision is filed within the 90-day period.

8.20.6.16.1  (07-01-2016)
Assessment of Deficiency Determined by the Tax Court When an Appeals of the Tax Court Decision is Pending

  1. If the case goes to the Court of Appeals (Appellate Court), the deficiency determined by the Tax Court can be assessed and collected unless the petitioner files an "appeal bond" (also called a review bond) with the Tax Court. The appeal bond must be in an amount fixed by the Court on or before the time the notice of appeal is filed. No assessment is made if the bond is filed.

  2. An appeal bond is not the same as an IRC 6603 Deposit. The appeal bond is an irrevocable, open-ended promise by the taxpayer to pay the tax, additions to tax, and interest determined to be due. The taxpayer will provide security for the bond, which is not posted to the taxpayer's account.

  3. The docket attorney from Counsel’s Field office has the responsibility to ensure prompt assessment of the tax, generally within 60 days after the decision of the Tax Court becomes final. Counsel will notify Appeals when the decision becomes final (after the case is finished in the Court of Appeals and/or Supreme Court).

8.20.6.16.2  (07-01-2016)
Appeal Filed by Petitioner, Bond Filed

  1. Counsel notifies APS:

    • When a petition of an entered tax court decision is filed with the Court of Appeals

    • Whether or not a bond was also filed by the petitioner

  2. Upon notification from Counsel, APS will update ACDS as follows:

    1. Action Code = APPEALED

    2. TODATE = Date the appeal was filed

    3. LACTION = (optional entry - local procedure)

    4. TODATE = (optional entry - local procedure)

    5. Upload the TLCATS transmittal as an attachment to the ACDS WUNO

  3. When Counsel secures a bond from the taxpayer, APS does not adjust the taxpayer’s account.

  4. When Counsel does not secure a bond from the taxpayer, APS must follow procedures in IRM 8.20.6.16.3, Appeal Filed by Petitioner, No Bond Filed below to adjust the taxpayer’s account per the Entered Decision.

  5. Once the Counsel attorney receives notification that the decision has become final, they will notify Appeals and transmit the administrative file to Appeals using Form 1734, Transmittal Memorandum, with an annotation, "Tax Court Case/Assessment must be made before [MM-Dd-YYYY]."

  6. The APS PTM is responsible for assigning the case to ensure the account adjustments are processed timely.

8.20.6.16.3  (07-01-2016)
Appeal Filed by Petitioner, No Bond Filed

  1. If the petitioner files a notice of appeal but does not file a bond, the tax must be assessed. The decision document will not contain an IRC 6213(a) waiver paragraph so an Agreement Date is not entered on the assessment document, nor is the waiver period considered in the deficiency interest calculation associated with the assessment. The assessment must be made even if the tax is paid.

  2. The attorney contacts the PTM and immediately delivers the administrative file using Form 1734, Transmittal Memorandum, with an annotation "Appealed Tax Court Case/Assessment must be made by [MM-DD-YYYY]."

  3. APS will process the assessment via:

    • Form 5403, CC: AMCLSF, in order to keep the AIMS controls open, or

    • Form 2859, Quick Assessment if required due to dollar amount, or ASED protection.

  4. The earliest assessment statute is 60 days after the Tax Court decision becomes final. The Tax Court decision becomes final after the Appeals Court case (or Supreme Court case) decision is entered. Therefore, a quick assessment is not necessary unless notification has been received that the Tax Court decision has become final. The IRC 6213(a) paragraph will not be on this decision so there is no agreement date associated with the resulting tax assessment.

  5. The APS employee who receives the assessment notification or administrative file from Counsel must check the ACDS Category Code to identify if the interim adjustment will be processed by the local APS Team, or if it must be processed by the APS-Complex Interest Team (CIT).

  6. The APS employee must notify their PTM to request preparation of the CIT Referral Form if the ACDS Category Code is:

    • CIC (Coordinated Industry Case)

    • IC (Industry Case)

    • EXM/TEGE (Subcategory Estate and Gift) TYPE = ES (Estate) or TYPE = G (Gift)

  7. For the cases identified in IRM 8.20.6.16.3 (6) above, the APS PTM will prepare and submit the completed CIT Referral Form to the *AP Complex Interest mailbox for assignment of an APS-CIT TE.

  8. Within 2 business days, the PTM will receive an email response from the *AP Complex Interest mailbox which identifies the APS-CIT TE assigned to process the interim adjustment, as well as their fax number and complete mailing address.

  9. Upon receipt of a response from the *AP Complex Interest mailbox, the PTM or designated APS TE will fax or mail the documents required to process the interim assessment to the assigned APS-CIT TE.

    Reminder:

    Whenever possible, avoid unnecessary shipment of cases to reduce mailing costs and eliminate the risk for loss and inadvertent disclosure of PII.

  10. APS will process the interim assessment of the Entered Decision under Appeal as follows:

    1. Verify that the amount of deficiency and/or penalty reflected in the decision agrees with the amounts in Item 12 of Form 5403.

    2. Verify that all applicable "interest-related" forms and schedules are available for accurate computation of the interest for the interim assessment action. See IRM 8.20.7.11, AIMS CC: AMCLSA General Processing for specific guidance covering APS verification procedures and requirements.

      Example:

      An MFT 30 account requires a 6404(g) worksheet so the APS TE can accurately process the interest related transactions. If the 6404(g) worksheet was either not included in the case when it was originally submitted to Counsel or if is not included in the interim assessment request submitted by Counsel, follow existing procedures to request the 6404(g) worksheet from TCS.

      Note:

      The interim assessment posting and removal of the TC 520 cc 72 instructed in c) below, will initiate collection activity so accurate computation of the interest is critical. Without the appropriate "interest-related" forms and schedules, the interest adjustment may be overstated or understated.

      Table of Interest-Related Features Which Require Additional Documentation for Interest Accuracy

      Interest IRC and Feature MFT/Master File Required Form/Schedule
      IRC 6404(g) Untimely Notice 30 - IMF 6404(g) worksheet
      IRC 6601(d) Carry-back 30 - IMF and 02 BMF Form 2285(s)
      IRC 6621(c) LCU Interest 02 - BMF LCU Notice Amount and Trigger Date
      IRC 7508 Combat Zone 30 - IMF ENMOD/TXMOD/F-3198/F-5402
      IRC 7508A Disaster Area Any ENMOD/TXMOD/F-3198/F-5402
      Rev. Rul. 99-43 SEQUA Any SEQUA Spreadsheet
    3. Input TC 521 Closing Code (cc) 72 to reverse the TC 520 cc 72 and initiate collection activity.

      Reminder:

      Manual reversal of the TC 520 cc 72 is necessary when processing the interim adjustment, unlike the closing adjustment CC: AMCLSA which automatically generates the TC 521 reversal.

      Reminder:

      Assessment Verification requires a complete DLN for the transaction(s) input.

      If and Then Table for Assessment Verification

      If Then
      Adjustment is processed via CC: AMCLSF
      • APS TE monitors the account using CC: TXMODA until the transaction code(s) are fully posted.

      • APS TE inputs TC 521 cc 72 once TCs are fully posted.

      Adjustment is processed via Quick Assessment (Q/A) which APS faxes to the appropriate Accounting function for processing
      • APS TE receives notification from the Accounting function which includes the complete DLN as well as a copy of the billing assembly.

      • APS TE inputs TC 521 cc 72 once TCs are fully posted.

      Quick Assessment DLN is not provided to the APS TE by the 23C Date APS TE will contact the Accounting function to:
      • identify the reason for the delay

      • provide the information needed to resolve the issue

      • secure the complete DLN and billing assembly

      • APS TE inputs TC 521 cc 72 once TCs are fully posted.

      Reminder:

      PEAS Suspense and PEAS Follow-up features must be used to properly control inventory monitoring and set follow-up action date(s).

    4. When the interim assessment is processed by APS-CIT using the necessary faxed documents, and the administrative file is being held by Counsel, or the originating APS Office, the APS-CIT TE transmits the assessment documentation via fax for association with the administrative file.

    5. Upon receipt of the assessment documentation, associate the assessment verification with the administrative file and prepare Form 3210 to transmit the administrative file to the designated Counsel Attorney.

    6. Notate the following on the Form 3210, Document Transmittal"Assessment is posted and assessment verification is attached."

  11. Update ACDS as follows:

    • ACTION = APPEALED

    • TODATE = date the case is transmitted to Counsel

    • LACTION = (Local Option)

    • LTODATE = (Local Option)

  12. Update ACDS Return Level for each tax period with assessment verification as follows:

    • STATDATE = remove ASED date and leave blank

    • Statute CODE = ASESD for each tax period with assessment verification

  13. Follow-up on Form 3210 transmittal receipt as appropriate.


More Internal Revenue Manual