After review by a lead, send the Form 14566 by secure e-mail to the applicable liaison per IRM 25.23.11.5, Business Master File (BMF) Form 14566 Referral Liaisons. If Form 14039 or Form 14039-B is present, attach the form to the secure e-mail when referring the case. In the subject line of the secure e-mail, include the tax year of the case that is being referred.

Update the CII History Notes to show: Potential BMF IDT - Case referral to [insert the function’s name].

Advise the taxpayer that due to the complexity of ID theft, their case will need to be referred to the ID theft area and to allow 120 days for resolution. Advise the taxpayer a hold has been placed if there was a balance owed relating to the ID theft issue.

Complete a Form 14566. Forward the referral to the appropriate site via secure e-mail advising the case needs to be scanned into CII and moved into the BMF ID Theft inventory. In the subject line of the secure e-mail, include the tax year of the case that is being referred. The contacts for the sites are:

Input TC 971 AC 522 IDTCLM with the Secondary date being the date of the call.

See IRM 25.23.9-2, BMF ID Theft Indicators- TC 971 AC 522 IDTCLM-Initial Allegation or Suspicion of BMF ID Theft, for additional information. In the MISC field enter WI AM IDTCLM, see IRM 25.23.9-1, TC 971 AC 5XX-MISC Codes, for additional information.

There is an unreversed TC 971 AC 524 input on ENMOD or BMFOLE containing EINFAB or EINFB2 in the MISC field.

After the 60 day timeframe has passed, continue to follow the instructions above every 60 days (as needed) if the taxpayer does not receive a response.

There is an unreversed TC 971 AC 524 input on ENMOD or BMFOLE containing EINFAB or EINFB2 in the MISC field and 'Identity Theft' is present in the sort name line

The taxpayer states they did not receive a Letter 6042C and RICS has made a final determination of ID theft.
For example, research may show any of the following (this is not all-inclusive):

If the taxpayer responded to the Letter 6042C, Entity Verification for Businesses, and calls back claiming they did not receive a refund or their return did not complete processing due to RICS review, no confirmed BMF IDT TC posted to the account and 120 days have passed from the taxpayer's letter response received date

If the taxpayer responded to Letter 6042C and did not receive a refund or their return did not process due to RICS review, and a confirmed BMF IDT transaction code posted to the account.

The taxpayer submitted additional information to support the return filed and states they did not receive a refund or their return was determined to be an invalid filing due to RICS review.
For example, research may show any of the following (this is not all-inclusive):

If the taxpayer submitted additional information to support the return filed and states they did not receive a refund or their return was determined to be an invalid filing due to RICS review, and RICS has confirmed the final determination of ID theft.

Forward the case to RICS Unit, Ogden Service Center, Stop 9002 OR fax the response to 844-201-5531.

Forward the case to RICS Unit, Ogden Service Center, Stop 9002

A duplicate/amended return but there is no posted TC 150 because the original return is being held pending RICS review and it has been 23 weeks since RICS selected the original return (TC 973)

A duplicate/amended return but there is no posted TC 150 because the original return is being held pending RICS review and it has not been 23 weeks since RICS selected the original return (TC 973)

Suspend the case and monitor for RICS to make a determination.

If the 23 week timeframe passes with no determination from RICS, send a referral as indicated in Box 3 above.

Upon RICS determination, continue processing per the applicable scenarios below.
 

Do not refer to BMF IDT and process using normal procedures as found in IRM 21.7.9, BMF Duplicate Filing Conditions.

Do not refer to BMF IDT and process using normal procedures as found in IRM 21.7.9, BMF Duplicate Filing Conditions.

Prepare Form 14566, BMF Identity Theft Referral, and send by secure email to the AM BMF IDT liaison at *TS AM BMF IDT. In the subject line of the secure email, include the tax year of the case that is being referred.
 

The account will be reviewed to confirm the original determination is still valid.

For cases already in BMF AM inventory: Reassign the case into AM BMF IDT inventory and update the case data.
For cases not assigned to a BMF AM employee (example: case is assigned to IDTVA) or the referral is from a phone call: Create a CII case and prepare the referral and associated documents (if provided) to be scanned to CII.

If the case is being created based on a referral for a CII case not assigned to a BMF AM employee, link the CII cases together. Do not reassign IMF work to BMF, as actions may still need to be completed under the IMF account.
Responses will be returned to either the AM BMF IDT Liaison or to the originator of the referral, if the referral was received directly in the site BMF IDT team’s mailbox and not from a Liaison.

Invalid/Valid

1. Suspend to Statutes through CII. Complete the information on the Statutes suspense page.

2, Once the case is returned from Statutes, take all remaining required actions to continue with final IDT resolution (input of TC 971 AC 522, closing letter, etc.).

Invalid/Valid

1. Suspend to Statutes through CII. Complete the information on the Statutes suspense page.

2. Send the lead and/or manager of your local Statutes team an email advising you suspended an imminent quick assessment through CII. Provide the ASED and case information within your email.

3. Once the case is returned from Statutes, take all remaining required actions to continue with final IDT resolution (input of TC 971 AC 522, closing letter, etc.).

1. Suspend to Statutes through CII. Complete the information on the Statutes suspense page.

2, Once the case is returned from Statutes, take all remaining required actions to continue with final IDT resolution (input of TC 971 AC 522, closing letter, etc.).

1. Suspend to Statutes through CII. Complete the information on the Statutes suspense page.

2. Send the lead and/or manager of your local Statutes team an email advising you suspended an imminent quick assessment through CII. Provide the ASED and case information within your email.

3. Once the case is returned from Statutes, take all remaining required actions to continue with final IDT resolution (input of TC 971 AC 522, closing letter, etc.).

Statutes will:

-A Freeze (TC 150 is posted) and an IDT determination has been made by RICS. The account has not been deemed fabricated and is not locked.
Research must be conducted to determine if the TC 150 that is posted to the account is the taxpayer’s valid return. For example (this list is not all-inclusive):

-A Freeze (TC 150 is posted) and an IDT determination has been made by RICS. The account has not been deemed fabricated and is not locked.
Research must be conducted to determine if the TC 150 that is posted to the account is the taxpayer’s valid return. For example (this list is not all-inclusive):

Perform all research detailed in IRM 25.23.9.4, BMF Identity Theft Research, and Exhibit 25.23.9-7, BMF Identity Theft Research Requirement, to reconsider the validity of the EIN.

1. If, through research, you determine the EIN is not fabricated and the account should be unlocked:

2. If, through research, you determine the EIN is fabricated and the account should remain locked:

The entity must be marked on CC ENMOD using CC REQ77. Overlay the SSN ENMOD with CC REQ77 and complete the fields as follows:

Reverse the TC 971 AC 504 SPCL2 on the IMF entity.
See the following IRMs for more information:

Update the case data and check to confirm all required fields are correct prior to reassigning:

Prepare Form 14566, BMF Identity Theft Referral, and send by secure email to the AM BMF IDT liaison at *TS AM BMF IDT.

Advise the TP they must reply to the 5263C letter and provide the requested information via FAX or to the address provided on the letter.
 

Determine if the address is correct. If the address was changed as a result of the invalid return, correct it back to the taxpayer’s correct address.

Completely back out (nullify) the invalid return using HC 4. This allows the adjustment notice resulting from the account correction to reflect the adjustment to the taxpayer’s figures.

If any refund was issued as a result of the filing of the IDT return, determine if the refund was sent to the invalid or the valid taxpayer.
If the refund was sent to the invalid taxpayer, follow lost refund procedures in IRM 25.23.11.8.2, Lost Refund. Monitor the case until the TC 841/700 posts back to the account.

If the refund was sent to the valid taxpayer, follow Category C erroneous refund procedures found in IRM 25.23.11.7.4.4, SBSE Recapture CARES Act Credit Cases.

Once the TC 841/TC 700 posts back to the account, adjust the account to reflect the valid taxpayer’s return:

Determine if the address is correct. If the address was changed as a result of the invalid return, correct it back to the taxpayer’s correct address.

Completely back out (nullify) the invalid return, including any associated penalties other than the bad check penalty and the FTP penalty. You must use HC 4 when inputting the adjustment. This allows the adjustment notice resulting from the account correction to reflect the adjustment to the taxpayer’s figures.

Any FTP penalty in the module will automatically reverse when the tax is backed out. Any bad check penalty should also be reversed if the dishonored payment was not tendered by the "valid" taxpayer, or if the penalty does not apply due to reasonable cause.

If any refund was issued as a result of the filing of the IDT return, determine if the refund was sent to the invalid or the valid taxpayer.
If the refund was sent to the invalid taxpayer, follow lost refund procedures in IRM 25.23.11.8.2, Lost Refund. Monitor the case until the TC 841/700 posts back to the account.

If the refund was sent to the valid taxpayer, follow Category C erroneous refund procedures found in IRM 25.23.11.7.4.4, SBSE Recapture CARES Act Credit Cases.

Input the adjustment using PC 2 and Item Reference Number (IRN) 871. PC 2 allows the computer to recognize the need to compute the FTP back to the return due date. IRN 871 represents the “tax shown” on the valid return minus refundable credits.
The computer will compute the FTP based on the lesser of the IRN 871 amount (what the taxpayer expected to owe) or the tax assessed (290 amount) on the return from the due date of the return. In the computation of FTP penalty, the computer will recognize FTD and ES payments and refund reversals (TC 841/700) and calculate the FTP penalty appropriately.

Determine if the address is correct. If the address was changed as a result of the invalid return, correct it back to the taxpayer’s correct address.

If any refund was issued as a result of the filing of the IDT return, determine if the refund was sent to the invalid or the valid taxpayer.
If the refund was sent to the invalid taxpayer, follow lost refund procedures in IRM 25.23.11.8.2, Lost Refund. Monitor the case until the TC 841/700 posts back to the account.

If the refund was sent to the valid taxpayer, follow Category C erroneous refund procedures found in IRM 25.23.11.7.4.4, SBSE Recapture CARES Act Credit Cases.

Determine if the address is correct. If the address was changed as a result of the invalid return, correct it back to the taxpayer’s correct address.

If any refund was issued as a result of the filing of the IDT return, determine if the refund was sent to the invalid or the valid taxpayer.
If the refund was sent to the invalid taxpayer, follow lost refund procedures in IRM 25.23.11.8.2, Lost Refund. Monitor the case until the TC 841/700 posts back to the account.

If the refund was sent to the valid taxpayer, follow Category C erroneous refund procedures found in IRM 25.23.11.7.4.4, SBSE Recapture CARES Act Credit Cases.

a. Use IDRS command code REQ77 initiated from command code TXMOD to input a TC 972 AC 522 reflecting a Tax Administration Source Code of NOIDT in the MISC field. See Exhibit 25.23.9-5, Reversing Business Master File (BMF) Identity (ID)Theft Indicators - Transaction Code (TC) 972 Action Code (AC) 522, for additional information.

b. If there is no TXMOD to input the TC 972 AC 522 NOIDT, AMS/CII must be documented with the reason for the NOIDT determination.
See the examples below for additional information.