The purpose of Notice Review is to review IMF Computer Paragraph (CP) notices to verify the accuracy of notices selected for review before mailing. This will ensure the information received by taxpayers are complete and accurate. Notice Review employees use the Notice Review Processing System (NRPS) package, Control D, and /or Integrated Data Retrieval System (IDRS), Integrated Automation Technologies (IAT) Tool, and Account Management Services (AMS) to ensure the information for each notice is processed correctly. Any changes to the notice is made using the On Line Notice Review (OLNR) system.

Title 26 of the United States Code (USC) is more commonly known as the Internal Revenue Code (IRC). The IRC has been amended by acts, public laws, rules and regulations, such as the following:

The Campus Director is responsible for monitoring operational performance for the Submission Processing campus.

The Operations Manager is responsible for monitoring operational performance for their operation.

The Team Manager/Lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.

The Team Employees are responsible to follow the instructions contained in this IRM and maintain updated IRM procedures.

Program Goals: To review Computer Paragraph (CP) notices which generate to notify the taxpayer of any change to a specific module from their original return and to verify the accuracy of the information, ensuring the notice received by the taxpayer is complete and correct.

Program Reports: After NRPS completes the selection process, it combines all the selection information into NRPS batches. NRPS produces various reports from the output files:

Program Effectiveness: The program goals are measured by using the following tools:

Annual Review: The processes outlined in this IRM should be reviewed annually to ensure accuracy and promote consistent tax administration.

This table lists Acronyms, Abbreviations, and Definitions.

The following resources may assist in performing the work as outlined in this IRM:

Submit IRM deviations in writing following instructions from IRM 1.11.2.2.3 When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

The Customer Account Data Engine 2 (CADE) 2 solution modernizes the IRS to a daily processing environment.

The components of CADE 2 Transition State include:

IMF transactions posting time frames are outlined as follows:

When an action is taken to:

Corporate Files On-Line (CFOL) Command Code IMFOL will contain an indicator on the screen to identify whether the account is a Daily account or a Weekly account.

When CC NOREFP is initiated, the following chart explains when the TC 846 and systemic TC 841 will be displayed:

f Notice Review does not stop refunds at the request of another area. If a request is received , inform the requestor Notice Review cannot process the request.. If the requestor indicates they do not have access to IDRS or CC NOREF in their profile, they should contact their area to address the issue.

Notice Accuracy is a part of Balanced Measures; therefore it is critical and necessary to provide appropriate feedback to all functions generating erroneous notices or refunds.

Notice Review will develop a local method for providing feedback to the responsible function.

Management must ensure that adequate reviews are performed during the employee's on-duty status. AMS will provide the ability for online quality review of the Priority Refund Transcripts. Management must input the sample size or percentage in each employee's profile in AMS to ensure a sample of transcripts are included in the Quality rating.

Management must allow time for Tax Examiners to provide feedback information.

The Tax Examiner must identify to the lead those situations where an error trend can be established (e.g., same/similar error being committed repeatedly by the same function and/or Tax Examiner).

The lead will provide this information weekly to the Planning and Analysis analyst responsible for Notice Review.

Use OLNR Notice Disposition Reports as a tool. There are two basic formats for these reports:

Cumulative history reports show year-to-date totals for the above reports. Although the weekly reports show data only for those keys with current cycle activity, the history reports show data for keys that have had activity at any time during the year.

Use historical records to assist in feedback sessions for functions that frequently generate bad notices.

Notice Review should correct and disposition notices timely to minimize negative impact to the taxpayer, Timely means all of the following:

Notice Review should schedule and staff personnel to work 100 percent of the notices selected for review.

Whenever a site determines that 100 percent of the sample cannot be completed timely, they will contact the Headquarters Notice Review analyst.

Make every reasonable attempt to reduce the amount of interest IRS pays on refunds.

Review, correct, and select disposition (OLNR) all notices in a timely manner to allow the taxpayer the full amount of time to pay. A taxpayer has only 21 calendar days from the date of the notice (ten business days for notice amounts of $100,000 or more) to pay without incurring interest for periods after the date of the notice.

Refer to IRM 20.2, Interest, for proper guidance when reducing, computing, or discussing interest.

Reviewing Math Error notices that have historically high error rates is a top priority.

For assistance in adjusting the percentage of Math Error notices selected by NRPS, review IRM 3.14.1.3.8, NRPS Local Control File.

Review ALL modules and the tax return, if available, as required per Selection Key criteria related to a notice or transcript selected for review. Modules to review include:

It is the function of Notice Review to review and verify the accuracy of all selected CP Notices in a timely manner. The notice must state accurately and clearly the changes made and the status of the taxpayer's account.

This subsection lists the IRM references that relate to the Notice Review Function. Functional handbooks contain specific instructions for processing and resolving issues that appear on a given notice.

To ensure a comprehensive review, Tax Examiners must be aware of these procedures. They are not to be used to reflect errors against the individual employees, but as a means of providing feedback to the functions causing errors or not following procedures. The references are:

Employees are responsible for taking the required precautions to provide security for documents, information, and property handled while performing official duties.

This subsection contains information relating to Individual Master File (IMF), Individual Retirement Account (IRA), and Shared Responsibility Payment (SRP) notices. It includes a description of the notices and information on the data elements.

Computer Paragraph (CP) Notices are the most common form of communication with the taxpayer regarding their account. A CP Notice generates to notify the taxpayer of any change to a specific tax module from the taxpayer’s original return, or in response to taxpayer correspondence. A notice must have accurate and timely information.

A CP Notice is a computer-generated message resulting from:

Notices generate to:

The taxpayer must receive a notice (unless otherwise specified in IRM 3.14.1, IMF Notice Review) when there is:

Each CP Notice contains the following basic information:

The Notice Elements describe the conditions which characterize a notice. The principal elements are:

Overpayment CP Notices 12 and 24 will have a systemically imposed refund hold to allow time for Notice Review to correct erroneous notices before the refund transaction generates. This results in the ability to input an adjustment, credit transfer, or required transaction to correct the notice, and associated refund amount prior to the refund being issued to the taxpayer.

Other overpaid notices in OLNR inventory include, CP 10, CP 12, CP 16, CP 21, CP 24, CP 30A, and CP 51B do not have a refund hold applied for refunds less than $100,000. A TC 846 is present on these accounts and cannot be intercepted. If these notices are identified as erroneous, follow erroneous refund procedures. See IRM 3.14.1.6.7, Erroneous Refunds.

Each posting cycle, the Notice Review Processing System (NRPS) generates the IMF and IRA Notice Lists. These lists contain information on all notices (except CP 36A and CP 38A) generated from that Submission Processing Campus. These lists are tools for reviewing notice output, requesting tax returns, and controlling notices.

The IMF Notice List shows CP information grouped by inquiry campus, then by CP number in Social Security Number (SSN) order. Refer to the figure below for a description of the Notice List Data Elements. Figure 3.14.1-1.

Figure 3.14.1-1

NRP6610 – IMF Notice List SummaryThe following is an example of an IMF Notice List printout that details all CPs that have been issued in the submission processing campuses. The printout displays items identified with numbers presented in parentheses preceding each item. The numbers are referenced in the text that follows the printout. This text provides descriptions of the items referred to. File page number, displaying the number 000001Current date, displaying 11-18-2025File title, displaying IMF NOTICE LISTSubmission processing campus name, displaying AUSTINPage number, displaying page number 1Output file number, displaying NRP6610CP number displaying 10Notice count, displaying 25Current cycle, displaying 202547Social Security Number (SSN), displaying the acronym SSNTax Period, displayingDocument Locator Number (DLN)Notice amount or first notice DLNNRPS Primary selection key, manual intervention or subagency codes, or blankNotice sequence numberThis report lists notices generated for the cycle. The letter preceding the sequence number indicates whether the notice is a Selected (B) or Non-Selected (C) notice. This list is in SSN order by CP.

Please click here for the text description of the image.

IRA Notices also appear on the IMF Notice List.

The Notice List prints in the same sequence as the corresponding notices. A notice sequence number prints for each Notice List line item and provides an easily referenced number for each notice. The Notice List provides a total count of notices issued.

NRPS uses sets of criteria called Selection Keys in the selection process. The Selection Keys with similar criteria are grouped within a category that NRPS uses for prioritizing the selection order. Refer to the NRPS Selection Keys table below. The following is a list of categories in selection priority:

Within a category, NRPS assigns a priority to each Selection Key.

NRPS performs the following steps for each Selectable Notice Record in the notice stream until the selection limit is reached, or until all notice records are processed:

The NRPS selection limit for each weekly cycle is 14,000 notices. As the number of selections increases at each Submission Processing Campus, the following changes occur in the selection process:

New Taxpayer Notice Codes (TPNCs) are reviewed at 100 percent at the beginning of each filing season to ensure that all TPNCs are reviewed at least once. To ensure that the NRPS automated selection process selects at 100 percent, all TPNC percentages that have been manually adjusted using the Local Control File must be cleared prior to the first cycle.

Selectable Notices — These notices are subject to selection under NRPS and may also be subject to Manual Intervention. Notice images can be viewed from Taxpayer Correspondence Services: Servicewide Notice Program.

Associated Notices — These notices are not subject to selection, but are included in the review package if NRPS selects another notice for the same taxpayer/spouse and are also subject to Manual Intervention:

Manual Intervention Notices — NRPS will neither select these nor associate them with a selected notice. However, they may appear on the NRPS Manual Intervention List.

If there is a CP Notice selected by NRPS for OLNR inventory and a Priority Refund Transcript is in AMS within the same cycle, NRPS will provide a statement on the NRPS Package/Control D Package Contents Page indicating the TIN that is also a Priority Refund Transcript in AMS.

After NRPS completes the selection process, it combines all of the selection information into NRPS batches. A NRPS batch consists of the following:

Use Control D/Web Access to view NRPS batches. For additional information, refer to the Notice Review Job Aid 2534-002 and IRM 3.14.1.4, On-Line Notice Review (OLNR).

NRPS produces the following additional types of output:

All of the above print outs generate from the following NRPS output files:

The Batch Separator Page identifies the beginning of each batch and contains the following information:

NRPS Package/Control D contains various types of information needed to review each selected CP Notice. Each batch may contain up to 20 selected notices.

Each NRPS Package/Control D contains a Contents Page, online notice information, transcribed posted return data, an Entity transcript, and a tax module transcript. These items are explained in greater detail in the subsections that follow.

The last page of each batch shows the following information for each CP Notice:

NRPS produces two different (but related) Batch Control Sheets. Refer to the NRPS 6130 — Batch Control Sheet exhibit. Exhibit 3.14.1-6

The NRPS Document Charge-out provides information needed by the Files Function to pull documents for use in reviewing CP Notices.

The NRPS Batch Return Request List is a cover sheet that separates the document charge-outs by batch and to accompany the requested documents sent by the Files Function. It contains a line for each charge-out in the batch.

The Manual Intervention List includes notices that may or may not have been selected for review, but manual intervention is required before allowing them to be mailed (if appropriate).

The NRPS Selection Report contains notice/transcript input and selected-for-review counts, sorted by selection key and by Taxpayer Notice Code (TPNC), with year-to-date totals, for notices selected in the current cycle. Refer to the NRPS 6130 — NRPS Selection Report exhibit. Exhibit 3.14.1-7

The Notice Retype Error Report (NRPS 8240) contains information on notices that were unable to be processed after cycle release. The notices on this report must be recreated by one of the following methods:

The NRPS Automated Local Control Selection Report shows the previous four weeks' selection percentages and the current cycle's selection percentage, based on the automated selection process.

Submission Processing Campuses can adjust the number of notices selected weekly by NRPS through the use of the Local Control File (LCF) produced by CC NRP97 on IDRS.

The LCF can increase or decrease the number of notices selected for review. Additionally, the non-print indicator can be input on the LCF to suppress printing of NRPS Package/Control D when only a list is needed. Returns may be requested for the selected notices, if necessary.

Use input screen information for instructions on how to use Substitute Keys 085-089 and 099 to identify local selections.

TPNC defect rates and selection percentages are computed by the NRPS system using data from OLNR NRPS 0030 Report. It is no longer necessary to manually set the percentages for TPNC selection. While the systemic selection can be overridden by manual input, this occurrence should be kept to a minimum and only under special circumstances (programming problem, etc.).

See the chart below for defect rates and selection percentages. NRPS will select 100 percent for a particular TPNC until the year-to-date volume reviewed for that TPNC exceeds 50 notices.

A priority option causes 100 percent of the notices containing a specific TPNC to be selected without regard to normal exception processing, i.e., previous CARE review ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. This is limited to 40 TPNCs. Other options control the Exception Override of Selection Keys 028/029 and TPNC 100 Document Charge-outs.

The computer processing used to access this capability resides in IDRS. Three programs are used to update and maintain the NRPS Local Control File database.

Adjust the LCF using CC NRP97. This IDRS command code allows sites to add, change, and delete requests on the LCF. Any LCF changes should be input by 12 P.M. local time on Thursdays to ensure notices are stopped for the subsequent cycle. The weekly deadline for making changes is determined by the running of NRP98, and is run on Friday afternoon. After the records are processed, NRP99 is run to create a new LCF. NRP99 is run on Friday 12:00 noon. Any data input on the LCF after NRP98 is run and before NRP99 is run is overwritten by NRP99. To ensure requests are processed, you can start input Monday and stop input at 12:00 noon before the running of NRP98.

The following are features/capabilities of the OLNR Retype function:

Once inside a cycle of work in OLNR, and a batch is selected, the Notice Disposition screen is loaded and appears on the screen. It contains all of the sequence numbers for the selected batch. As each case in the batch is reviewed, the user selects the disposition code for the desired notice action.

The Notice Disposition Program sends the selected disposition codes to the mainframe, and the data is used to compile the Notice Disposition Report. The disposition code entered for each notice will determine how the notice will be handled by the back-end printing programs.

Special reviews include:

This subsection provides instructions on prioritizing duties performed by the Clerical Support staff. These include:

Notice Review must verify certain types of information common to all returns to ensure the accuracy of each notice. Compare IDRS, CP Notice data, along with the information contained in the NRPS Package/Control D, against the information on the return, being mindful of any transcription errors or misplaced entries. If the return is unavailable use IDRS, Control D, and other available tools to verify the accuracy of the notice data.

The following instructions attempt to address the situations that are most frequently encountered when reviewing notices. These instructions cannot address every possible issue; use in conjunction with all of the information contained in this IRM.

In addition to completing the following General Review Procedures, continue with the necessary subsections as appropriate:

To prevent a refund from generating, see IRM 3.14.1.7.1.1, Refund Intercepts

For Taxpayer Notice Code (TPNC) lists and descriptions, refer to IRM 3.14.1.8, Taxpayer Notice Codes Document 6209, IRS Processing Codes and Information, Section 9, and IRM 3.12.3, Individual Income Tax Returns – Error Resolution System (ERS) to 3.12.3-2 Taxpayer Notice Codes .

All related tax modules associated with the notice module as well as any associated notices must be reviewed and resolved, as applicable, with the resolution of the notice issue. Only one count will be allowed when associated notices and or modules have to be resolved in conjunction with the notice module.

NRPS extracts this data from the following sources:

Unpostable transactions require corrective action before they can post to the Master File.

Unpostable Codes (UPCs) identify the set of conditions that caused the unpostable transaction. Unpostable Reason Codes (RCs) specify the various conditions that can be present for each UPC.

Unpostable Resolution Codes (URC) identify whether the corrective action can be done systemically, manually by the Unpostables function, or must be rejected back to the originator for correction.

The GUF and the Unpostable Files show pertinent information about unpostable transactions on IDRS, including:

The computer will automatically offset an overpayment if a credit elect request to a subsequent year is present, but will first attempt to satisfy balances due for other federal taxes, or liabilities owed to other federal or state agencies. Therefore, when manually transferring credits, Lump Sum Credit Offsets to other federal taxes, and Treasury Offset Program (TOP) offsets to other agencies take priority over credit elect and refund requests. TOP offsets can be identified by the DEBT indicator on the module. See IRM 3.14.1.6.4.3, TOP Offsets-TC 898/899.

Master File can perform systemic offsets correctly within the same account (same taxpayer) and will also transfer overpayment interest.

If a payment has been misapplied and must be moved to satisfy other debt then any credit elect must be moved back and frozen before moving a payment to a different module if the full payment amount is not available.

Exceptions to systemic processing of offsets:

Satisfy all existing modules with a balance due ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ before inputting a manual refund or manually transferring a credit elect.