25.25.12 Fraud and Referral Evaluation (FRE) Procedures for Return Integrity Verification Operations (RIVO)

Manual Transmittal

September 08, 2021

Purpose

(1) This transmits revised IRM 25.25.12, Revenue Protection - Fraud and Referral Evaluation Procedures for the Return Integrity Verification Operation.

Material Changes

(1) 25.25.12.1.3 Update the department responsible for this IRM from the Return Integrity Verification Operation (RIVO) to Return Integrity Verification Program Management (RIVPM).

(2) 25.25.12.1.5 Add table of Acronyms and definitions used throughout the IRM 25.25.12 Fraud and Referral Evaluation Procedures for the RIVO.

(3) IRM 25.25.12.1.6 Update the Taxpayer Bill of Rights (TBOR) content based on guidance from the Division Counsel/Associate Chief Counsel (National Taxpayer Advocate Program) and Branch 3 of the Associate Chief Counsel (Procedure and Administration) and added a link to the TBOR website. (IPU 21U0828 issued 06-10-2021)

(4) IRM 25.25.12.3.1 Update the query names and standard Electronic Fraud Detection System (EFDS) Notes used for pattern matching. Add reference to the Selections aNd Analytics Platform (SNAP) used to create and run pattern matching queries.

(5) IRM 25.25.12.4 Add Section for PS12 Unverifiable Return Selections.(IPU 21U0324 issued 03-02-2021)

(6) 25.25.12.4(2) Change screening frequency for PS12 from a daily process to a weekly process. Update EFDS Note from RIVO FRE Pattern PS12 to PATMAT-Shared Characteristics as other TPP.

(7) IRM 25.25.12.5 Add processes to the up-front queries for Process Status (PS) 30

(8) IRM 25.25.12.5.1 Add PS 30 Daily Inventory Selections aNd Analytics Platform (SNAP) query procedures to the PS 30 identification process

(9) IRM 25.25.12.5.2 Delete identification procedures from the PS 30 monitoring process.

(10) IRM 25.25.12.5.2(3) Add guidance to address TC 972/129 TPP database screening on a weekly basis. (IPU 21U0324 issued 03-02-2021)

(11) IRM 25.25.12.7, Revise guidance for Limited Direct Deposit Refund procedures. (IPU 21U0828 issued 06-10-2021)

(12) IRM 25.25.12.7(3) Add guidance for S- freeze treatment after 60 days. (IPU 21U0324 issued 03-02-2021)

(13) IRM 25.25.12.7.1 Add section for Monitoring Actions for Undeliverable Checks resulting from Multiple Direct Deposits to one bank account. (IPU 21U0828 issued 06-10-2021)

(14) IRM 25.25.12.8 Remove S Freeze Rejects due to redundant information. (IPU 21U0324 issued 03-02-2021)

(15) IRM 25.25.12.8 Remove redundant query process for TPP compromised note. (IPU 21U0324 issued 03-02-2021)

(16) IRM 25.25.12.8 Update sources of security breach leads. Add lead monitoring processes

(17) IRM 25.25.12.10.1 Broke the Electronic Filing Identification Number (EFIN) and Preparer Tax Identification Number (PTIN) Leads process down into 4 categories: Lead Research; Lead Actions; Inventory Tracking; and Inventory Time Frames.

(18) IRM 25.25.12.14 Revise GATT Procedures to align with other business unit work processes. (IPU 21U0324 issued 03-02-2021)

(19) IRM 25.25.12.15(2) Added procedure for updating TC 972 AC 122 template to the PS55 table. (IPU 21U0395 issued 03-15-2021)

(20) IRM 25.25.12.15 Add section for Rule 7 Screening Procedures to align with procedural and legislative changes. (IPU 21U0324 issued 03-02-2021)

(21) IRM 25.25.12.15 Add step to reverse TC971 control for returns with Electronic Fraud Detection System (EFDS) Note "Rule 7 Verified"

(22) IRM 25.25.12.16 Add section for PTC Referrals in response to campus feedback. (IPU 21U0324 issued 03-02-2021)

(23) IRM 25.25.12.17 Remove AQC procedures and clarified the Withholding Only Work (WOW) guidance in response to campus feedback. (IPU 21U0324 issued 03-02-2021)

(24) IRM 25.25.12.17 Add guidance to the Wage or Withholding (WOW) Procedures for returns containing specific EFDS Notes. (IPU 21U0828 issued 06-10-2021)

(25) IRM 25.25.12.17 Added Official Use Only restriction to specific EDFS Notes (IPU 21U0842 issued 06-15-2021)

(26) IRM 25.25.12.18 Add AQC procedures section per campus feedback and procedural guidance. (IPU 21U0324 issued 03-02-2021)

(27) IRM 25.25.12.18, Add guidance to the Automated Questionable Credits Procedures for returns containing specific EFDS Notes. (IPU 21U0828 issued 06-10-2021)

(28) IRM 25.25.12.18 Added Official Use Only restriction to specific EDFS Notes (IPU 21U0842 issued 06-15-2021)

(29) IRM 25.25.12.19 Revise MFT 32 Procedures due to program and procedural changes. (IPU 21U0324 issued 03-02-2021)

(30) IRM 25.25.12.19.1 Add Systemic MFT 32 Screening Procedures due to realignment to other business work processes. (IPU 21U0324 issued 03-02-2021)

(31) IRM 25.25.12.19.1 Add If/And/Then table to the Systemic MFT 32 Screening Procedures. (IPU 21U0828 issued 06-10-2021)

(32) IRM 25.25.12.19.2 Add MFT 32 Clean-up Process due to reassignment to other business work processes. (IPU 21U0324 issued 03-02-2021)

(33) IRM 25.25.12.20(2) Add guidance to mass push PS 47/60/50 returns to scheme for cleanup per campus feedback. (IPU 21U0324 issued 03-02-2021)

(34) IRM 25.25.12.21 Revise bullet list guidance for the PS28 Clean-up process of DDb Rule 7 returns. (IPU 21U0395 issued 03-15-2021)

(35) IRM 25.25.12.21 Add guidance to the Process Status 28 Procedures for returns containing specific EFDS Notes. (IPU 21U0828 issued 06-10-2021)

(36) IRM 25.25.12.22 Delete duplicate actions listed in IRM. Clarify the steps to be taken for PS 77 screening. Add standardized EFDS Notes for returns selected for the Frivolous Return Program (FRP) and non-select refiled returns. Add tables to organize the weekly and monthly queries to be performed for the FRP process.

(37) IRM 25.25.12.23 Revise Title and section to clarify Suspicious IDOCs treatment for MOC 230 and 231 per SERP Feedback. (IPU 21U0324 issued 03-02-2021)

(38) IRM 25.25.12.23 Revise Title and guidance for the Suspicious Employer/IRP IDOCs for EFDS queries and EFDS Notes. (IPU 21U0828 issued 06-10-2021)

(39) IRM 25.25.12.23, Remove EFDS SNAP query procedure for returns in Process Status 31. (IPU 21U0886 issued 06-25-2021)

(40) Editorial changes to subsection content based upon program realignment and removing or updating obsolete work processes, grammatical updates, and renumbering as needed

Effect on Other Documents

IRM 25.25.12 dated September 25, 2020 is superseded. This IRM incorporates IRM procedural update (IPU) 21U0324 issued 03-02-2021, IPU 21U0395 issued 03-15-2021, IPU 21U0828 issued 06-10-2021, IPU 21U0842 issued 06-15-2021, and IPU 21U0886 issued 06-25-2021.

Audience

Campus employees in Return Integrity Verification Operations

Effective Date

(10-01-2021)

Denise D. Davis
Director, Return Integrity Verification Program Management
Wage and Investment Division

Program Scope and Objectives

  1. Purpose: This IRM section provides guidance for Return Integrity Verification Operations (RIVO) employees who screen individual master file returns in the Electronic Fraud Detection System (EFDS) for possible identity theft and false income and withholding.

  2. Audience: The audience intended in this IRM is RIVO employees.

  3. Policy Owner: The Director of Return Integrity Verification Program Management (RIVPM) is the policy owner of this program.

  4. Program Owner: RIVPM is the program office responsible for oversight over this program.

  5. Primary Stakeholders: The primary stakeholders are Return Integrity Verification Operation (RIVO) and organizations that collaborate with RIVO.

  6. Program Goals: Program goals for the program are in the Operations Guidelines as well as IRM 1.4.10 , Return Integrity Verification Operations Managers Guide.

Background

  1. Return Integrity Verification Operations (RIVO) strengthens the integrity of the tax system by:

    • Protecting the public interest by improving IRS’s ability to detect and prevent improper refunds

    • Serving the public interest by taking actions fairly and appropriately to identify, evaluate and prevent the issuance of improper refunds

    • Helping taxpayers understand the refundable tax credits for which they are eligible

Authority

  1. Refer to the following:

    • IRM 1.2.1.5.10, Policy Statement 4-21

    • IRC 6402(a), Authority to make credits or refunds

    • IRC 6401, Amounts treated as overpayments

    • IRC 6404, Abatements of tax

    • IRC 6213, Requirements for a statutory notice, including math error authority

Responsibilities

  1. The Return Integrity Verification Program Management (RIVPM) has responsibility for information in this IRM. Information is published in the IRM on a yearly basis.

  2. The Director of RIVPM is responsible for the policy related to this IRM.

  3. The Chief of RIVPM Policy & Analysis is responsible for ensuring this IRM is timely submitted to publishing each year.

Program Management and Review

  1. The program has reports to track the inventory, including receipts and closures.

  2. A quality control program is in place to review all processes to ensure accuracy and effectiveness.

Acronyms

  1. Acronyms used throughout the Fraud and Referral Evaluation (FRE) Procedures for Return Integrity Verification Operations (RIVO) IRM are listed alphabetically in the table below:

    ACRONYM DEFINITION
    AC Action Code
    ACTC Additional Child Tax Credit
    AIMS Audit Information Management System
    AOTC American Opportunity Tax Credit
    AQC Automated Questionable Credit
    BBTS Batch Block Tracking System
    BOE Business Objects
    BPL Business Performance Lab
    CFAM Cybersecurity Fraud Analytics and Monitoring
    CI Criminal Investigations
    CY Current Year
    DDB Dependent Database
    DLN Document Location Number
    DMAS Data Management, Analysis and Support
    EFDS Electronic Fraud Detection System
    EFIN Electronic Filing Identification Number
    EIN Employer Identification Number
    EITC Earned Income Tax Credit
    EL External Leads
    EOY End of Year
    EPPM e-file Provider Program Management
    ERO Electronic Return Originator
    FRE Fraud Referral and Evaluation
    FRP Frivolous Return Program
    FYP Full Year Prisoner
    GATT General Agreement on Tariffs and Trade
    HSH Household Help
    IAT Integrated Automation Technologies
    IDOC Income Document
    IDT Identity Theft
    IP Internet Provider
    IP PIN Identity Protection Personal Identification Number
    IPU SERP IRM Procedural Update
    IRC Internal Revenue Code
    IRM Internal Revenue Manual
    IRP Information Return Processing
    ISAC Information Security Analysis Center
    LMS Lead Management System
    MeF Modernized e-File
    MFT Master File Tax
    MOC Mode of Contact
    NIDT Non-Identity Theft
    NOREF IDRS Command Code
    OCSE Office of Child Support enforcement
    PATMAT Pattern Matching
    POC Point of Contact
    PS Process Status
    PTC Premium Tax Credit
    PTIN Preparer Tax Identification Number
    PY Prior Year
    QRY Query
    RAAS Research, Applied Analytics & Statistics
    RICS Return Integrity Compliance Services
    RIVO Return Integrity Verification Operation
    RIVPM Return Integrity Verification Program Management
    RIVPM PA Return Integrity Verification Program Management Policy and Analysis
    RPC Return Preparer Coordinator
    RRC Recovery Rebate Credit
    RRP Return Review Program
    SE Self Employment
    SERP Servicewide Electronic Research Program
    SNAP Selections aNd Analytics Platform
    SP Submission Processing
    SRP Shared Responsibility Payment
    SSN Social Security Number
    SSMS SQL Server Management Studio
    SSRS SQL Server Reporting Services
    STARS Scheme Tracking and Referral System
    TBOR Taxpayer Bill of Rights
    TC Transaction Code
    TE Tax Examiner
    TIN Taxpayer Identification Number
    TPP Taxpayer Protection Program
    UNP Unpostable
    WOW Withholding Only Work

Related Resources

  1. The related resources listed below may be utilized for account research and issue resolution. These related resources may be accessed through the IRS Intranet-Servicewide Electronic Research Program (SERP) site.

    • IRM 25.25, Revenue Protection

    • IRM 25.23, Identity Protection and Victim Assistance

    • IRM 21, Customer Account Services

    • IRM 2, Information Technology

    • IRM 3, Submission Processing

    • IRM 4, Examining Process

  2. The following IRMs should be used in conjunction with IRM 25.25.12:

    • IRM 1.1.13, Organization and Staffing, Wage and Investment Division

    • IRM 25.25.1, Return Integrity Verification Operations Business Master File Procedures

    • IRM 25.25.2, Revenue Protection Screening Procedures for Individual Master File Returns

    • IRM 25.25.3, Revenue Protection Verification Procedures for Individual Master File Returns

    • IRM 25.25.4, Return Integrity Verification Identity Theft Return Procedures

    • IRM 25.25.5, General Correspondence Procedures

    • IRM 25.25.6, Taxpayer Protection Program

    • IRM 25.25.7, Automated Questionable Credit Program

    • IRM 25.25.8, Revenue Protection External Leads Procedures

    • IRM 25.25.9, Revenue Protection Prisoner Lead Procedures

    • IRM 25.25.10, Frivolous Return Program

    • IRM 25.25.11, Wage and Withholding Only (WOW) Procedures

    • IRM 25.25.13, Account Resolution for Integrity and Verification Operation

  3. Integrated Data Retrieval System (IDRS) restricted access accounts are accounts where a user must request special permissions to access the account through IDRS. Follow IRM 21.2.1.3.2, Authorized IDRS Access.

  4. The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see https://www.irs.gov/taxpayer-bill-of-rights. Under these rights taxpayers have the right to receive prompt, courteous, and professional assistance in their dealings with the IRS, to be spoken to in a way they can easily understand, to receive clear and easily understandable communications from the IRS, and to speak to a supervisor about inadequate service.

Fraud and Referral Evaluation Overview

  1. The mission of the Fraud and Referral Evaluation Department (FRE) is to protect revenue by identifying and dispositioning returns which display patterns of fraud (including identity theft).

  2. The Department Manager, Fraud and Referral Evaluation Department (FRE), reports to the Program Manager, Return Integrity Verification Operations (RIVO).

  3. To accomplish the mission, the Fraud and Referral Evaluation Department staff:

    • Identifies and takes action on return inventory that may show patterns of fraud and identity theft as required to protect revenue, taxpayers, and the integrity of the tax system.

    • Receives, researches and processes information leads submitted from a variety of sources (i.e., external leads, industry leads, internal referrals, and prisons).

    • Supports the operation by providing analytical support of inventory processes and reporting.

Fraud and Referral Evaluation Pattern Matching Overview

  1. The Fraud and Referral Evaluation (FRE) Department was established to evaluate returns not selected into the workload for potential fraud and ID theft. Because data mining models and filters learn from past behavior, it is necessary to review non-selected returns so the models do not continue to reinforce themselves. More so, because of the rapid changes made by criminals and those attempting to defraud the government through its tax return system, current models and filters must consistently be updated and improved upon using know patterns. Many of the common fraudulent schemes have been identified and require constant observation and monitoring to prevent refund fraudsters from exploiting those known areas. Concurrently, the FRE Department must scrutinize and look at large sums of data in non-traditional ways (e.g., looking for the "Nulls" , using human behavioral patterns, and observing political events impacting the tax refund system), to identify any new and ingenious patterns that could result in the release of tax refunds to fraudsters.

  2. As these patterns change, FRE must also be able to quickly and robustly adapt/adjust. The FRE Department must operate without preconceptions and fixed notions, and instead think outside the box. FRE Analysts use a variety of techniques and tools, along with critical thinking and data attained from events taking place in the public, to create and update queries identifying any previously undetected fraud. FRE has an impact on reducing the number of external leads by catching them before refunds are released.

Pattern Matching Procedures

  1. Pattern matching is used to analyze returns en masse, not one by one. Utilize Selections aNd Analytics Platform (SNAP) to create and run assigned queries and adjust as applicable based on internal and external information.

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  3. Research query results to identify a pattern (this list is not all inclusive).

    Note:

    Utilize pre-refund and post-refund dates to assist in making determination of patterns.

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  4. Once a pattern has been identified:

    • Load/Import all selected returns into CASE. Selected returns must be in Process Status (PS) codes 0, 3, 10, 12, 32, 47 or 60.

    • Push the return to PS 30.

      Reminder:

      When pushing returns to Process Status 30 utilizing Case, do not push returns already assigned an Identity Theft (IDT) treatment stream (e.g., PS 49/50) as it could possibly change the status of the return.

    • Run the IP PIN Validity Code Query to ensure the taxpayer did not already use an assigned IP PIN.

    • Input in the EFDS return notes the duplicate conditions that applied to your pattern (e.g., PATMAT WW, PATMAT ZIP CODE, PATMAT IP, etc.)

    • Input a secondary EFDS note "RIVO FRE PATTERN" . The note must be on all returns pushed to PS 30.

    • Research may need to performed to verify the return if it indicates "Tribal Income" before selecting the return for inclusion in a pattern. See IRM 25.25.2.6(4), Unsubstantiated Income and/or Withholding.

  5. Research patterns obtained through SNAP queries on EFDS.

    Note:

    Don’t determine pattern of ID Theft from Current Year Return Spreadsheet only; research the Return Detail for a few returns prior to making a determination.

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  6. Research IP addresses based on the Average Refund, smallest to largest:

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  7. Look for additional patterns within original pattern and utilize SNAP to identify additional returns:

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Process Status 12 Unverifiable Return Selections

  1. Move Return Review Program (RRP) selections that include all unverifiable type income such as Schedule C Self Employment (SE) or as Household Help (HSH) to EFDS PS12 and add note "NIDT Select - Sch C/HSH Only" in EFDS.

    Note:

    The returns may also claim a small amount of income from wages below the wage and withholding thresholds of $2,000 in wages and $500 in withholding.

    • Modernized e-File (MeF) selections in PS12 include Transaction Code (TC)971 Action Code (AC)052 in IDRS and resequence for 14 days.

    • Paper returns include two transaction codes, a TC971 AC 052 and TC971 AC 134 in IDRS to resequence for 14 days and create a -R refund freeze (TC570).

  2. Screen PS12 weekly to identify potential IDT returns using the following steps:

    1. Run a weekly query to identify all returns in PS12.

    2. Screen the query results for potential IDT criteria using the Pattern Matching Procedures in IRM 25.25.12.3.1, Pattern Matching Procedures.

    3. If the return meets IDT criteria, push the return to PS30 as a Taxpayer Protection Program (TPP) Manual Select.

    4. Input the Standard Note "PATMAT-SHARED CHARACTERISTICS AS OTHER TPP" in EFDS.

    5. If the return is not selected for IDT, refile the return in EFDS.

      Reminder:

      If the refund stop date is 3 days or less and the refund is not already being held, manually stop the refund.

Process Status 30

  1. Process Status 30, also known as ACE/ADJ in the Electronic Fraud Detection System (EFDS), identifies returns that were manually selected for the Taxpayer Protection Program (TPP) treatment. These returns can be identified from Return Integrity Verification Operations screening inventory, Fraud and Referral Evaluation pattern matching, Criminal Investigation referrals, and other internal or external referrals.

  2. An Access database is used for monitoring process status (PS) 30 inventory. You may query using the following processes:

    • Identifies current PS 30 inventory

    • Identifies all DLNs in PS 49

    • Tracks all DLNs placed into PS 30 at End of Day

    • Identifies TC 971 AC 129 and AC 124 returns for the year

    • Identifies returns without the proper EFDS IDT note

    • Identifies the EFDS note captured for creating the model type

    • Identifies and creates e-mail by manager of incorrect note

    • Identifies returns without the proper EFDS IDT note

    • Identifies the EFDS note captured for creating the model type

    • Identifies and creates e-mail by manager of incorrect note

    • Tracks all TC 971 AC 123 DLNs

Process Status 30 Selection Identification Procedures

  1. Identify new inventory in Process Status (PS) 30 using the disposition date:

    • Research for required Electronic Fraud Detection System (EFDS) note (RIVO FRE PATTERN, RIVO RSV IDT, etc.).

    • Determine if the return meets PS 30 criteria (not previously in the Taxpayer Protection Program (TPP), except for accounts containing a TC 971 AC 123 MISC field TPPRP or TPP Recovery).

    • Perform a “B 30” check (accounts that have been placed back into process status 30). The accounts on this spreadsheet must be checked on IDRS for TC 971 AC 124 or AC 129 to see if the return went through the TPP process. If there is no indication of prior TPP, set the return to be sent through the TPP process on the following Thursday. If there is an indication of prior TPP then send the “B 30” listing to management to have accounts removed from PS 30 and placed in the appropriate process status.

    • Provide feedback to managers if criteria are not met.

  2. Run SNAP query "PS 30 Daily Inventory"

    • Research for missing note.

    • Perform a "B 30" check (accounts that have been placed back into process status 30).

    • Check IDRS accounts on the spreadsheet for TC 971 AC 124 or AC 129 to see if the return went through the TPP process.

    • If there is no indication of prior TPP, set the return to be sent through the TPP process on the following Thursday.

    • If there is an indication of prior TPP, send the "B 30" listing to management to have accounts removed from PS 30 and placed in the appropriate process status.

  3. For returns that meet the PS 30 criteria, determine the refund freeze process and initiate the appropriate freeze actions. Remove from PS 30 those returns not meeting the criteria.

    • Prepare batch freeze template for returns dispositioned to PS 30 after midnight the previous day up to the refund freeze cut off deadline, to generate TC 971 AC 134 and forward to Modernized Development and Delivery (MDD) contact.

    • Identify refund returns that were unable to be stopped using the batch freeze template for refund cancellation using CC NOREF, see IRM 25.25.2.4, Stopping the Refund.

  4. Identify the appropriate TPP marker (e.g., TC 971 AC 124 or TC 971 AC 129), prior to the weekly master file cutoff deadline by taking the following actions:

    • EFDS return DLN is not posted - put on the template for the TC 971 AC 124

    • EFDS return DLN is posted

    If And Then
    1
    There is no TC 846 present
      Put on the template for the TC 971 AC 129
    2
    A TC 846 is present on the module
    there is an open RIVO refund cancellation IDRS control Put on the template for the TC 971 AC 129
    3
    A TC 846 is present on the module
    there is No open RIVO refund cancellation IDRS control Push return to PS 65 - input EFDS note "PS 30 REFUND LOST MOVED TO PS 65"

  5. Ensure the master file template is submitted to the server by the deadline and received by MDD.

Monitoring Process Status 30 Procedures

  1. The database is used for monitoring current year process status 30 inventory. Queries can be run on the following processes:

    • Identifies current PS 30 inventory

    • Identifies all PS 49 DLNs(current and historical)

    • Tracks all DLNs placed into PS 30 at End of Day

    • Identifies TC 971 AC 129 and AC 124 returns for the year

    • Identifies 29 cycles aged returns

    • Tracks all TC 971 AC 123 DLNs

  2. Pull the 972/129 from the TPP database on a weekly basis. Mass push all confirmed IDT cases to scheme as CT Cat 7. Refile anything that is confirmed NONIDT with no 971/052 CANNOT VERIFY. Case with the 971/052 have the income verified per IRM 25.25.2.19

Taxpayer Protection Program (TPP) Suspense Expired
  1. Returns still in PS 30 after 29 cycles are reviewed weekly in the Age Out process. If the refund has been released, the return is re-filed. Those with "no response" where the refund is still holding are dispositioned to Scheme Tracking and Referral System (STARS), mirroring the PS 49 process.

Compromised Information Return Processing (IRP) Notes

  1. Run Queries for TPP compromised note process.

    • 1 QRY Prim SSN to Breach

    • 2 QRY SP SSN to Breach List

    • 3 Appnd Prim Breach to Master

    • 4 Appnd SP Breach to Master

    • 9 DLNs Need IRP Note by load Date

    • TPP Comp Note Qry - run daily - add note to IRP “PATMAT-SUS IRP”

Limited Direct Deposit Refund Procedures

  1. New direct deposit rules began in January 2015 to limit the number of United States Treasury Tax Refunds to be deposited into a single financial account to 3. All subsequent refunds are automatically flipped to a paper check and issued to the address of record. The IRS simultaneously issues CP 53X, A Message About Your Request for an Electronic Deposit Refund, to the address of record, informing the taxpayer of the delay, inability to deposit the refund to the account as requested, and the issuance of the paper check.

  2. Accounts impacted by the new direct deposit rules contain the following:

    • A transaction code (TC) 841 for the original refund amount or split refund amount.

    • A Direct Deposit Reject Reason Code (DDRC) 49.

    • A TC 971 action code (AC) 850 with a DLN of "2827799999999Y" to flip the direct deposit refund to a paper check.

    • A TC 971 AC 804 with a MISC field of "CP 53X" .

    • A second TC 846 for the refund being issued as a paper check.

  3. If CP 53X is returned as undeliverable, it should be destroyed as classified waste, see IRM 21.5.1.4.10, Classified Waste.

Monitoring Actions for Undeliverable Checks Resulting From Multiple Direct Deposits to One Bank Account

  1. For accounts where the paper check is returned to the IRS as undeliverable (TC 740) and appears on the Business Objects (BOE) Report, FRE is to take the following actions when the S- freeze is still on the account after 60 days:

    • Push returns to STARS as CATG 7

    • Input EFDS Note: RIVO FRE PATTERN Multi/Limited Direct Deposit S Freeze

    • Monitor for the returns to hit STARS and use the STARS Mass Update Template to update the Disposition to "DD"

    • Identify returns in STARS CATG 7, DISP "DD" and run through the Return Integrity Compliance Services (RICS) IDT Tool to treat the return as IDT

      Note:

      Any return rejected by the RICS IDT Tool is worked manually per IRM 25.25.4, Integrity & Verification Identity Theft Return Procedures.

    • Update STARS DISP to "CL"

Security Breach Leads

  1. Security Breach Leads - The IRS receives notification of specific security breach incidents from various sources related to a data breach. This information is received from Electronic Products & Services Support (EPSS), Cyberfusion and various software providers. The Fraud Referral and Evaluation (FRE) analysts provide ongoing analysis of the information received and protect IRS revenue of potential identity theft returns through the referral process.
    Security Breach Lead Analysis:

    • Monitor returns filed for each lead for the current year

    • Monitor SSNs, potential suspicious Internet Protocol Addresses, and potential suspicious e-mail addresses received from Cyberfusion for the current year

    • Monitor prior year leads for potential IDT

    .

Bank Leads

  1. Leads are external information and communications about questionable tax refunds identified by a variety of stakeholders, including: national banks, state banks, savings and loan associations, mutual savings banks, credit unions, financial institutions, brokerage firms, government and law enforcement agencies, state agencies, tax preparation entities and various other sources. Bank Leads may involve treasury checks, direct deposits/ACH, refund anticipation loans or checks, and pre-paid debit cards.

  2. Leads from financial institutions are voluntarily submitted through the External Lead Mailbox Process. Reference IRM 25.25.8.2 , Processing External Leads, for more information. The bank leads from this mailbox are imported into the "RICS Lead Management System" (LMS). These leads are all post refund returns. The FRE Bank Leads Program utilizes the lead data within the LMS to search for revenue protection and fraud trend identification opportunities.

  3. The FRE Bank Leads Program uses the lead information to identify revenue protection opportunities on additional questionable returns currently in the processing stream. The FRE Bank Leads Program also uses these leads to identify new fraudulent filing patterns and trends. New trends are monitored for additional activity. Any identified returns are assigned to the appropriate processing streams. New filter rule suggestions are periodically forwarded to the appropriate teams in RICS/RIVO for consideration.

  4. Lead Research:

    • Review all returns for possible IDT using the bank leads obtained from the saved SSRS Report spreadsheet. Continue reviewing the remaining lead data for fraudulent filing patterns.

    • Review Lead data, including some or all of the following: SSN, Bank Account, IP address, e-mail address, name, and physical address.

    • Research SNAP, IDRS, EFDS and other systems to conduct lead research and identify fraudulent return patterns.

    • Address Leads differently based on the particular scenario. Refer to the Bank Leads Desk guide for current query processes.

    • Run SNAP queries daily based on identified lead fraud patterns.

  5. Lead Actions:

    • Disposition all possible ID theft returns to Process Status 30 (ACE/Adjustments) in EFDS. Input the following notes in EFDS:
      Note 1: "RIVO FRE PATTERN"
      Note 2: Summit (‘extlds Bank Leads-[SNAP QUERY NAME]”)

    • Update database status to "Closed" .

Electronic Return Originator Leads (ERO)

  1. Electronic Filing Identification Numbers (EFINs) and Preparer Tax Identification Numbers (PTINs) are vulnerable to identity theft, breaches, and hijacking. Some cases involve EFINs or PTINs established with identity victims' names and social security numbers (SSNs). Other cases involve EFINs or PTINs originally established by legitimate return preparers or practitioners and then misused by thieves in filing identity theft (IDT) returns. Yet other cases involve a compromised EFIN, under which the IRS receives both a bona fide return from the legitimate owner of the EFIN and an IDT return from a thief. Electronic Product and Services Support (EPSS) and Return Integrity Verification Operation (RIVO) have been working together to identify suspicious EFINs, research them, and inactivate them, when applicable.

  2. Abusive return preparers have been a problem for the IRS and for taxpayers for many years. These preparers prepare returns that contain fraudulent/abusive items (for example, income, withholding, dependents, and refundable credits). Abusive return preparers create a problem for the IRS because these returns cost the government revenue and cost the taxpayers money when they are audited. It is often difficult to discern the abuse, because some taxpayers collude with these preparers while others do not.

Electronic Filing Identification Number (EFIN) and Preparer Tax Identification Number (PTIN) Leads

  1. Suspicious EFIN, PTIN and Preparer information is received in a number of ways from numerous internal and external stakeholders. The most prominent method for receiving suspicious EFIN/PTIN leads is through the RICS/RIVO/FRE Fraud Leads mailbox. Leads are assigned to the RIVO FRE Analyst. The leads come in from EPSS, RAAS, RPO, Analysts, and sometimes from industry. The leads are assigned to a RIVO FRE analyst to research and make a determination on what action needs to be taken. The analyst checks the EFIN application on the Employee User Portal (EUP), the EFIN owners IDRS accounts, EFDS information, addresses, and Accurint for relevant information. Additionally, the analyst pulls the return information from EFDS along with the EFDS statuses and uses all this information to make a determination as to whether the EFIN should be inactivated.

  2. Lead Research:

    • Determine if the lead needs to be imported.

    • Import the lead to the database.

    • Using all available research tools, make a determination on the assigned EFINs/PTINs.

    • Research all EFINs assigned to the participant.

  3. This research must be thorough, because it helps determine if the EFIN is using someone else’s stolen identity; if the good ERO is filing Identity Theft (IDT) returns; or if the EFIN has been compromised.

  4. The five main determinations that the RIVO FRE analyst can make are:

    • "Data Breach" indicates the intentional or unintentional release of confidential information. In ERO cases the released confidential information would be the ERO clients’ Personally Identifiable Information (PII).

    • "Application Misrepresentation" indicates that applications were submitted with the wrong owners/principals listed.

    • "Compromised" indicates that an otherwise good ERO’s EFIN has been hijacked; the EFIN is being used by a third party to file returns. In most cases you’ll see good and bad returns coming through the same EFIN.

    • "EFIN filing IDT returns" indicates that a valid EFIN owner is filing IDT returns.

    • "IDT EFIN" indicates that an EFIN was established with a stolen ID and then was used to file IDT returns.

  5. Lead Actions:

    • Forward your determination to the primary Management and Program Analyst for review. All documentation to support your determination to EPSS must be included in an Excel spreadsheet.

      Reminder:

      After the review is completed, the program manager forwards the recommendation to BPL for review.

    • Update the FRE database with all required fields.

  6. Inventory Tracking:

  7. Import EFIN referrals from all sources into the Leads Management database upon receipt. The inventory from the RAAS EFIN Tool is included in the ERO Leads inventory and assigned one lead at a time:

    1. Oldest date first

    2. Case status moved to "In Progress" – lead is being reviewed

    3. Case updated to "Completed" – lead is closed

      Reminder:

      Analysts should be assigned only one case at a time. Justification is needed if multiple cases are open.

  8. Inventory Time Frames:

  9. Place the lead status “In Progress” for no longer than 24 hours and completed within 30 days of the received date; this includes all intake sources:

    • RAAS

    • EPSS/EPPM

    • RICS (RIVO/BPL)

    • CFAM

    • RPO

    • ISAC

    • Other ad hoc referrals

      Reminder:

      The goal of the program is to inactivate EFINs as soon as possible, protecting the practitioner and revenue. Leads over 30 days are considered aged. Justification is needed for any leads over 30 days and any leads “In Progress” for longer than 72 hours.

Abusive Preparer Program Leads

  1. Return Integrity Verification Operations (RIVO) has implemented a streamlined referral process to direct Abusive Preparer cases to the Lead Development Center (LDC) and to the Return Preparer Coordinators (RPCs) office using specified criteria. This includes Exam functions that focus on the fraudulent items indicated in the referral.

  2. There is a process to refer these abusive preparer cases to LDC and the RPC. After thoroughly researching and developing the referrals, refer only the most egregious preparers. If the criteria is not egregious enough to warrant a referral, forward all leads to the Return Preparer’s Office (RPO) to be filed as a complaint only.

  3. RICS/RIVO/FRE employees are in a unique position to identify these abusive preparers. This identification supports their mission of fraud detection and revenue protection. In addition, they have access to return data that is not generally available elsewhere in the IRS. This frequently results in identifying pockets of questionable returns that are prepared by the same individual and allows for case building on preparer fraud not captured elsewhere.

  4. A FRE Point of Contact (POC) is assigned at each site. A POC review must be completed before any lead can be referred to the Industry Fraud Leads Mailbox. Forward all referrals to the FRE POC’s e-mail address with a CC to their back up.

    Note:

    If the POC disagrees with the research or determines additional case building is required, the template is rejected back to the initiating employee with a description of the reject reason.

    If ... Then ...
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    The lead is a potential ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Send an e-mail to the FRE mailbox ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"
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  5. Program Case Research:

    • Determine if the lead needs to be imported

    • Import the lead into the database

    • Using all available research tools, make a determination if the case is Abusive or Not

    • Verify the CY return totals; > 500 returns for referral to the LDC or < 500 returns referral to the RPC

    • Double check database to make sure the EFIN is still active (if EFIN is inactive, review the comments to see if a referral is warranted)

    • Consider all EFINs associated with the firm being researched. Make a referral to the LDC/RPC for the firm, not an individual PTIN

    • Capture everything the firm filed, including Paper and ELF

    • Check for open investigations in CI or Civil. Check everything in PS 29 for schemes

    • Pull CY and PY return data using the EIN and/or PTIN and use those DLNs as the condition on the Preparer Query

    • Check for confirmed IDT. If there is any, we would send the case to EPSS for IDT instead of referring it as an abusive preparer

    • Fill out all required fields on the Abusive Preparer Program Template and complete a recommendation spreadsheet (LDC ONLY)

  6. Refer the abusive preparer cases to the LDC (for abusive preparers filling more than 500 returns) and to the RPCs (for abusive preparers filling fewer than 500 returns) and to the RPO, if the referral is not egregious enough and needs to be filed as a complaint only.

  7. Lead Actions:

    • Forward your recommendation to the primary ERO Leads Management and Program Analyst for review. All documentation to support your recommendation to the LDC/RPC/RPO must be included in an Excel spreadsheet or template provided.

    • Forward the complete review to the program manager to forward the recommendation to the LDC, RPC, or the RPO for resolution.

    • Update the FRE database with all required fields accordingly.

Industry Leads

  1. As part of the Security Summit Initiative, lead reports are received from American Coalition of Taxpayer Rights (ACTR) members as well as other participating software partners. The returns referred as part of these lead reports are reviewed and analyzed for possible identify theft characteristics. If a return is thought to be questionable, it is processed accordingly by the IRS to ensure revenue protection. Higher level analysis is then performed to aid in identifying additional returns and any filing patterns or trends that can be used in the future.

  2. Industry Lead files are received on the server through a secure data transfer process. A lead consists of two separate files: .

    • Control File – (txt format) – this file contains company contact information pertaining to the data file

    • Data File – (xml file format)* – this file contains the actual data records

  3. Lead Research

    • Import the lead to the database

    • Process the Industry lead file

    • Review all returns in a workable process status (with stoppable refund stop dates) to identify possible identify theft returns (pattern matching)

    • Disposition all returns identified as possible ID theft returns to Process Status 30 (ACE/Adjustments) through Case in the Electronic Fraud Detection System (EFDS) with the following notes:
      "extlds Industry Leads OL"
      "RIVO FRE PATTERN"

    • Update LM - FRE with all required fields

    • Update the Lead Database Status to "Completed"

    • Move the lead files to the appropriate leads folder

State Leads

  1. The State Leads Program is a program within RICS that receives referrals from various State taxing agencies relating to fraudulent/IDT returns being filed at the State level. RICS uses these leads to identify questionable returns being filed at the federal level and to identify new fraudulent filing patterns and trends.

  2. Lead Research

    • Review and format the state lead file so that it can be imported into the Lead Management FRE database

    • Import the lead to the database

    • Review all returns that are not in a current ID theft Process Status (with stoppable refund stop dates) to identify possible identify theft returns (pattern matching)

    • Update LM - FRE database with all required fields

    • Disposition all returns identified as possible ID theft returns to Process Status 30 (ACE/Adjustments) through Case in the Electronic Fraud Detection System (EFDS) with the following notes: "extlds State Leads Closed" , "RIVO FRE PATTERN"

    • Update the lead status to "Completed"

    • Move the lead to the appropriate leads folder

Office of Child Support Enforcement (OCSE)

  1. The Office of Child Support Enforcement (OCSE) assists with the Treasury Offset Program (TOP) Offset Reversal process by supplying a file of social security numbers associated with accounts where TOP offsets were generated from suspect returns (possibly not filed by the true taxpayer). The file OCSE delivers is missing the tax period associated with the TOP offset which the Tax Examiners (TEs) need in order to complete the TOP Offset Reversal Process.

  2. Research is completed with the use of batch tools and databases to find the following information:

    • The tax period associated with the TOP offset

    • The IRS determination:
      Yes: All funds requested back - this is not the true taxpayer
      No: No funds requested back - the offset is valid

  3. Lead Research:

    • Create the query

    • Research the accounts

    • Make the yes/no determination

    • Send the determination back to OCSE

General Agreement on Tariffs and Trade (GATT) Procedures

  1. General Agreement on Tariffs and Trade (GATT) returns are Full Year Prisoner (FYP) returns with wages earned while incarcerated, regardless of filing status, that are not entitled to the following refundable credits:

    • Earned Income Tax Credit (EITC)

    • Additional Child Tax Credit (ACTC)

    Note:

    A FYP is identified as one who is incarcerated for 11 consecutive months within the tax year. See IRM 25.25.2.15, Prisoner Returns, for additional prisoner information.

  2. Perform two daily queries to identify potential GATT and selected GATT returns. Use query results to update account indicators and make referrals as shown below:

    Query 1 - Potential GATT return criteria:

    1. Run a daily query to identify FYP claiming EITC and/or ACTC (regardless of the number of dependents claimed).

      Reminder:

      FS2 returns must have both primary and secondary filers marked as FYP’s to be selected.

    2. Using query results, update the template for the "TC971 AC199 GATT EFDS" markers and place the template on the server DAILY for BPL to add the TC971 AC199 markers to the Masterfile listing.

    3. Input the standard EFDS Note "Possible GATT Refund Hold" using CASE.

    Query 2 - True GATT return criteria:

    1. Run a daily query to identify new returns in PS28 (Refile) and PS0 (not selected for Data Mining) that have the EFDS Note "Possible GATT Refund Hold" .

    2. Use CASE to push the identified returns to STARS as CATG "8" .

      Note:

      These returns should have already had a TC971 AC199 GATT EFDS marker on the account.

    3. Input EFDS Note "FRE GATT Refer to AQC" .

    4. Monitor for the returns to hit STARS and use the STARS Mass Update Template to update the Disposition to "TT" .

    5. Refer GATT selected returns to Automated Questionable Credit (AQC) POC.

Rule 7 Screening Procedures

  1. Run a BOE report to identify new Rule 7 receipts and the EFDS Process Status.

  2. If EFDS Note "Rule 7 Verified" is present and an R Freeze is still holding the refund, input reversal transaction for the TC971 AC122.

  3. Use CASE to input a standard EFDS note and include the Rule 7, sub rule identifier. Follow the below chart for appropriate actions:

    If any of the following... And... Then ...
    • Rule 7A - 7E (AOTC issues)

    • 7S (screening work around for the prior disallowances for ACTC, EITC and AOTC)

    is in PS0 or PS28 and does not contain the EFDS Note "Rule 7 Verified" Push return to PS55
    • 7F (1040SS)

    • 7R (Recovery Rebate Credit (RRC) see sub-rules below)
      1: Resident of Puerto Rico claiming a Recovery Rebate Credit (RRC)
      2. Resident of one of the Freely Associated States (FAS) of the Republic of Palau, Republic of Marshall Islands or the Federated States of Micronesia claiming a Recovery Rebate Credit (RRC)
      4: Taxpayer claiming the RRC of $500 or more and the taxpayer sends in documentation which substantiate their citizenship for the credit

    • 7T (Questionable citizenship and claiming ACTC and/or EITC)

    is in PS0 or PS28 and does not contain the EFDS Note "Rule 7 Verified"
    • Push return to STARS CATG "8"

    • Input EFDS Note "FRE Rule 7 Refer to AQC"

    • Send to AQC POC

      Note:

      include sub-rule identifier in case referral

    • Monitor for the returns to hit STARS and use the STARS Mass Update Template to update the Disposition to "R7"

  4. Monitor returns in PS 55 and run weekly F1098-T IRP queries as applicable. Follow the chart below for actions needed:

    If ... And ... Then ...
    Rule 7A - 7E F1098-T IRP match found on weekly query
    • Refile the return

    • Update the template for the TC972 AC122 markers and place the template on the server for BPL to add the markers to the Masterfile listing. Include all reversal markers related to the DLN

    • Input EFDS note "Rule 7 Verified"

    Rule 7A - 7E No F1098-T IRP match through Cycle 17 Take no action
    Rule 7A - 7E No F1098-T IRP match found beginning Cycle 18
    • Push the return to STARS CATG "8"

    • Input EFDS Note "FRE Rule 7 Refer to AQC"

    • Refer to AQC POC

    • Monitor for return to hit STARS and use the STARS Mass Update Template to update the Disposition to "R7"

    Rule 7S   No action is taken by FRE. RIVO TE’s use the screening Tree in IRM 25.25.2.2.1, Data Mining Screening Tree, to work this inventory.

PTC Referral Procedures

  1. Premium Tax Credit (PTC) cases are identified from BOE queries TC971 AC128 MISC field AQCPTC191 and AQCPTC195.

    • Input TC810 to freeze the "Exposure Amount" and freeze the refund.

    • Run a SNAP query to identify the PS0 and PS28 on the PTC returns identified by the BOE query.

    • Push PS0 AND PS28 to STARS CATG 8, Disposition PT.

    • Refer to AQC POC.

Withholding Only Work (WOW) Procedures

  1. A weekly automated e-mail from EFDS titled "Referral, AM Aging Completed Successfully" identifies the cycle and gives the number of aged referrals. SNAP query results should match the number of aged referrals in the e-mail.

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  3. Perform FRE IRP Validation check using the following:

    • Move all cases that are a valid IRP match to DL and release refunds.

    • Send cases with open correspondence controls and valid IRP matches to the WOW POC for the WOW POC to pull the case correspondence.

    • Perfect the spreadsheet with updated IRP income information.

  4. Run cases through TXMOD and complete the following:

    • Send cases with credits that meet AQC criteria to the AQC POC.

    • Import cases with open controls or other function freezes into the WOW DB to be worked as manuals.

    • Move cases that have been resolved to AL.

  5. Run all remaining cases through the QRP IAT tool and complete the following:

    • Import tool rejects into the WOW DB for manual review.

    • Refer Shared Responsibility Payment (SRP) cases to the BPL POC for SRP Tool treatment.

    • Update STARS disposition to MA as both categories require manual review.

    • Cases worked by the tool are mass updated to AL.

  6. Process the WOW manual referral cases received from the National POC’s per the following:

    • Run cases through the QRP IAT tool.

    • Import Tool Rejects into the WOW DB for manual review.

    • Send SRP cases to BPL POC to be worked by the SRP tool.

    • STARS disposition for both categories are updated to MA.

    • Cases worked by the tool are mass updated to AL.

Automated Questionable Credit (AQC) Procedures

  1. FRE inventory referrals for AQC treatment are identified in BOE, STARS, or Manual.

  2. FRE actions:

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    2. Import referred cases to the AQC database by work type including the listing from the Refer to AQC folder in the share drive and the manual referral (MR) sheet.

    3. Run the various work type through the AQC IAT tool to have the initial letters generated per IRM 25.25.7.3, Automated Questionable Credit (AQC) Initial Case Processing.

      Note:

      Monitor AQC cases where the 150 DLN has not yet posted.

    4. Import the output file into the AQC database.

    5. Rerun files through the AQC IAT Tool when suspense time expires per IRM 25.25.7.6, No Response Received to Letter 4800C and IRM 25.25.7.7, No Response Received to Letter 3219C (Notice of Deficiency).

    6. Send tool rejects to the RIVO P&A POC for manual work in all stages of the tool runs.

    7. Identify the AQC Database closed cases. Use the STARS mass update to disposition QL.

Master File Tax (MFT) 32 Reversal Procedures

  1. The Master File Tax (MFT) 32 Reversal Process monitors accounts to ensure returns moved to MFT 32 (due to possible ID Theft) post back to MFT 30 after authentication of the taxpayer. FRE monitors the accounts after the actions are taken per IRM 25.25.6.7.1, MFT 32 Reversal Procedures and IRM 3.28.4.5.10, Returns on MFT 32.

  2. Review output and take actions per Systemic, Manual, and Reconciliation Reports in order to release refunds, refer for compliance treatment, or perform clean-up activities necessary to reconcile Category "7" inventory pushed to STARS.

Systemic MFT 32 Screening

  1. Pull the following SSRS Reports posted weekly from the TPP database:

    • IDTFP RL

    • IDTFP IW/IW_FI

    • IDTFP CV

  2. FRE performs the following actions:

    ‘IF’ ‘AND’ ‘THEN’
    RL (Release)
    • Return moved back to MFT 30 and refund is held.

    • Verification is complete with no other issues

     
    • Release refund

    • Update STARS to DL

    • Reverse and RIVO markers

    IW (Selected for Non-IDT)
    • Return moved back to MFT 30 and refund is held

    • Income needs verification

    Return verifies good
    • Release refund

    • Update STARS to DL

    • Reverse and RIVO markers

    IW (Selected for Non-IDT) OR IW-FI (False Income)
    • Return moved back to MFT 30 and refund is held

    • Income needs verification

    Return is deemed fraudulent
    • Refer to treatment stream

    CV (Can’t Verify) Monitor for new IRP
    • Systemic action moves the return to either RL, IW or IW-FI

MFT 32 Clean-up Process

  1. Use the MFT 32 Clean-up Report to identify the STARS Category 7 inventory that needs to be reviewed for final resolution.

Clean up

  1. Performed annually to ensure all returns are in a process or closed.

  2. The week EFDS goes into read only mode, mass push PS 47/60/50 returns into scheme that do not match the FRE IRP Verification Process.

Process Status 28

  1. Run SNAP query weekly

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    • Input reversal for TC971 AC134, that were not input systemically

    • Input refund release for tool work

    • Send manual work to Team manager weekly

Frivolous Return Program (FRP)

  1. Weekly Reports: PS 77

  2. Run the PS 77 Query:

    • Screen all incoming PS 77

    • Move returns selected for Frivolous Return Program (FRP) treatment to PS 70 as a FRP select

    • Add one of the following EFDS notes:
      "FRP Selected, Argument 1099 & RRP Filter"
      "FRP Selected, Argument OTHER, & RRP Filter"
      "FRP Selected, Argument 2439, & RRP Filter"
      "FRP Selected SCH A Scheme"
      "RIVO FRE PATTERN - Selected Frivolous Return ARG 1099"
      "FF Filter"

    • Input TC 810 on selected returns

    • Create CCREQ via EITCRA to open controls to FRP teams on all PS 70 selects

    • Refile non-selected returns as PS 28

    • Add EDFS Note "FRP cleared" on all non-selected returns

  3. Weekly Reports: FRP Database

  4. Complete listing from all FRP teams with changes/deletes and update queries related to back-end Db change request by teams.

  5. Run the following FRP Database (SQL) queries and take the listed actions:

    Query Initial Action Secondary Actions
    Unmatched Linking Field Query    
    dbo.Over $40K Filter results for:
    • Refunds over $40K

    • Refunds adding up to $40K for the same taxpayer

    E-mail results to:
    • RIVPM PA

    • Collection ATAT

    • FRP Coordinator

    • FRP Revenue Officer

    • Start Manual Assessment or Jeopardy Levy process

    dbo.usp_FRPATAGLANCE_New

    Note:

    Use last week ending date (Saturday)

    • Complete the FRP at a Glance Inventory Report

    • Update BBTS

    • Save the FRP at a Glance Report to SharePoint

    • Input receipt and closure numbers for each FRP program code in BBTS

    DS/R5XGB.New TP Run TINS through GII CC INOLES
    • Compare names entered in the FRP Database (DB) are correct

    • Identify and disclosure errors

    • Send error list to managers and leads to correct and return to FRE

    DS/R5XGB.3175letters Identify new taxpayers added to the FRP DB
    • Review results for errors

    • E-mail errors to managers/leads for review

    • Import successful letter sent results in the FRP DB

    dbo.usp_qry3175_soft_letter_update Input letter date
    • If needed information is missing or incorrect, an error list is sent to the FRP clerk team managers and leads

    • Managers/leads are to send the corrected list back so letters can be issued by the FRE analysts

    dbo.3176 letter purge 60 days Identify all cases in FRP DB where the 60 day pre-notification letter was issued, and the compliance timeframe expired
    • Send query results to managers and DM identifying cases that can move forward in the pipeline

    dbo.IAT3176 Identify all pre-notification letters issued the prior week
    • Install L3176 trigger date on the back end (BE)

    dbo.usp_qryUpdateL3176andfollowUpDate Update the suspense timeframe
    • Input date

    dbo.CI Identify cases within FRP inventory that have Criminal Investigation (CI) involvement
    • Send results and requested FRP input actions for CI approval

    • Update FRP DB with CI approval or denial to continue case

    • Update response date

    • E-mail technicians with CI determinations

    returns2proc Pull cases FRP sent to processing
    • Run results through GII to identify posted TC150 returns

    • Send results to the clerk team manager/lead

    dbo.TOP 20 oldest cases Export the results to Excel, creating a spreadsheet for each program code
    • Perform VLookup from prior week’s results

    • Highlight the cases in yellow that are revolving from the previous report

    • Send to all FRP managers and DM

    FRP 1099-MISC/F56 Search results for all TINs referred to FRP from FIRE, Entity or Funny Box
    • Run TINs through GII on all refundable years to identify if an E freeze is on the account

    • If no E freeze, run GII and input an E freeze on all refundable years

    • Save TINS and monitor for returns to come in

    • Once a return is received, screen for frivolous criteria and deliver to FRP teams

  6. Monthly Reports

  7. Run the following queries:

    Action Query Name Secondary Action
    Run the two queries in FRP
    • Create Purge Issues

    • Pull Purge Listing

    Query identifies the following:
    • Balance due

    • Open AIMS

    • CI Freezes

    • Purges

    • Credit on account over $10K

    Import the Balance Due spreadsheet into the FRP database (DB) Run queries:
    • Close Comp Run 1st

    • Close Update Comp

    • Query updates the issues to Balance Due

    • Query updates the Purge date and closes the issue

    Import Open AIMS spreadsheet to the FRP DB Run queries:
    • Close Comp2 Run 1st

    • Close Update Comp2

    • Query updates the issues to open AIMS

    • Query updates the purge date and closes the issue

    Import the Z freeze spreadsheet into FRP DB Run queries:
    • Close Comp4 Run 1st

    • Close Update Comp4

    • Query updates the issues to open AIMS

    • Query updates Purge date and closes the issue

    Import Purge spreadsheet into the FRP DB Run queries:
    • Purge RUN 1st

    • Update Purge Execute

    • Query updates the issues to Purge

    • Query updates the Purge date and closes the issue

    Run the two queries in SQL Server Management Studio (SSMS) Run queries:
    • dbo.DeleteRecordsEligiblePurge

    • dbo.IDT DB Removal query

    • Send to FRP managers for lead review

    Input "Run IDT" query in FRP Run query:
    • DB REMOVAL

    • Import spreadsheet into FRP DB

    • Save results in Excel

    • Import to "tbl.Match-SSMS"

    Run stored procedure in SSMS Run query:
    • dbo.usp_IDT_Delete_Query

    • Query removes all confirmed IDT entities, related issues, and history from the FRP DB

    Run query in FRP DB Run query:
    • CI

    • Identify cases FRP hasn’t received a CI response on in over 30 days

    • E-mail results to the CI Coordinator indicating 30-day follow-up

  8. As Needed Reports

    • Run query in FRP to identify all GECS/ITG cases and e-mail them to teams and Data Management, Analysis and Support (DMAS) POC.

    • Automate frivolous Correspondence by running the multiple queries, updates and Stored Procedures on SSMS.

    • Run query on data set contained within automation to identify cases that do not have preventative TC 810s installed on refundable years.

    • Run TINs through GII and install TC 810s en masse on warranted TINs and years.

    • Run "KDICALL" query and perform a GII INOLES run to build listing for the DPC.

    • Input preventative freeze on case spreadsheets received from all campus funny box coordinators.

    • Run "FRIV EFT CHECK FRP" query for the entire month. Send number of checks to Collections ATAT and Data Management, Analysis and Support (DMAS) POCs.

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Manual Return Treatment (Not in EFDS)

  1. Certain RRP Non-IDT Return Selections are not loaded into EFDS. Since EFDS is the primary platform by which potentially fraudulent returns are screened, an established process identifies this inventory and provides an opportunity for RIVO teams to manually review outside of EFDS and to take necessary action on accounts in furtherance of the revenue protection strategy.

  2. Pull these cases for screening en masse. Work cases that do not require manual review by screening and releasing refunds en masse. Open control bases on any case that needs to be screened manually. Assigned the case to the TE team for screening.

  3. Release any cases that are verified and close the control bases. Include all cases that are not verified in the normal manual referral process to AQC, WOW or EXAM.

  4. Tax examiners send potential ID theft referrals to FRE. Cases are added to a spreadsheet to be included with the 971/129 Thursday run to add them to the TPP process.

  5. Open a monitoring control base to 1485600001 with the activity MAN2TPP. Monitor the control for 29 cycles for the age out process.

Unpostable (UNP) 126 Process

  1. Run Posting Bypass files through IAT

  2. Close all post file errors

  3. Input totals on Unpostable (UNP) 126 Analysis Spreadsheet

  4. Send spreadsheet to management

End of Year (EOY) Process

  1. End of Year (EOY) is any data unresolved in EFDS or that comes into RIVO during EFDS downtime.

  2. FRE captures the EFDS read only (The One Long Day) snapshots for all movement in EFDS.

  3. At EFDS start up the next year, mass push the fraud or ID theft returns into scheme and into the manual referral process.

  4. For PS 30/49- FRE tracks the TPP with the PS 30/49 databases. FRE mass pushes, performs IRP verifications, inputs manual referrals and releases refunds based on data pulled from the TPP database or PS 30/49 queries.

  5. IDT in PS 30/49 is updated in PS 30/49 DB and mass pushed when EFDS comes up. FRE runs all IDT through the IDT tool on posted tax returns.