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3.11.6. Data Processing (DP) Tax Adjustments

3.11.6 Data Processing (DP) Tax Adjustments

Manual Transmittal

November 06, 2023

Purpose

(1) This transmits revised IRM 3.11.6, Returns and Documents Analysis, Data Processing (DP) Tax Adjustments.

Material Changes

(1) IRM 3.11.6 - Updated CIS to CII throughout the IRM because the name of the system changed. IPU 23U0060 issued 01-09-2023.

(2) IRM 3.11.6 - Updated Correspondence Imaging System (CIS) to Correspondence Imaging Inventory (CII) throughout the IRM because the name of the system changed. IPU 23U0060 issued 01-09-2023.

(3) IRM 3.11.6 - Updated CIS/AM to AM throughout the IRM because the name of the system changed. IPU 23U0060 issued 01-09-2023.

(4) IRM 3.11.6 - Updated routing instructions to Correspondence Imaging System (CIS) has been changed to Image Control Team (ICT) throughout the IRM because the system changed. IPU 23U0060 issued 01-09-2023.

(5) IRM 3.11.6 - Updated CIS AM to AM throughout the IRM because the name of the system changed. IPU 23U0060 issued 01-09-2023.

(6) IRM 3.11.6 - Replaced CISAMTOADJ notation with TOAMTOADJ throughout the IRM because the name of system changed. IPU 23U0060 issued 01-09-2023.

(7) IRM 3.11.6 - Changed MEFP or MEFS to CII throughout the IRM. In some instances the phrase was removed instead of replaced to provide clarity. IPU 23U0277 issued 02-17-2023.

(8) IRM 3.11.6.1(1), Program Scope and Objectives - Removed ISRP since there are no processing instructions for ISRP to follow.

(9) IRM 3.11.6.1.1(1), Background - Removed old paper processing instructions now that all SP 1040-X workflows are scanned to CII. IPU 23U0658 issued 05-25-2023.

(10) IRM 3.11.6.1.6(1), Acronyms - Updated the table to address the CIS update. IPU 22U1142 issued 12-01-2022.

(11) IRM 3.11.6.1.7, Related Resources - Removed local procedure instructions since all SP 1040-X cases are worked through CII and removed extra links.

(12) IRM 3.11.6.1.7(1), Related Resources - Updated the table to address the CIS update. IPU 22U1142 issued 12-01-2022.

(13) IRM 3.11.6.1.7, Related Resources - The entire subsection was revised to consolidate the various resources used when processing amended returns. IPU 23U0277 issued 02-17-2023.

(14) IRM 3.11.6.2, General Form 1040-X Information - The subsection has been rewritten to make it more user friendly.

(15) IRM 3.11.6.2(6), General Form 1040-X Information - Removed CP notice information to consolidate instructions. IPU 23U0106 issued 01-17-2023.

(16) IRM 3.11.6.2(3), General Form 1040-X Information - The entire subsection was revised to consolidate instructions now that all SP 1040-X workflows are accessed through the Correspondence Imaging Inventory system. IPU 23U0277 issued 02-17-2023.

(17) IRM 3.11.6.2.1, Processing Time Frames and Suspense Time Frames - Removed paper processing instructions from since all SP 1040-X cases are worked through CII. The tax year has been updated for the new filing season.

(18) IRM 3.11.6.2.1, Processing Time Frames and Suspense Time Frames - The subsection was revised to make the processing time frame consistent. IPU 23U0277 issued 02-17-2023.

(19) IRM 3.11.6.2.1.1, 1040-X Suspense Activity Codes - Deleted paper processing instructions since all SP 1040-X cases are worked through CII.

(20) IRM 3.11.6.2.4, Integrated Data Retrieval System (IDRS) Access - Deleted paper processing instructions since all SP 1040-X cases are worked through CII.

(21) IRM 3.11.6.2.5, Document Perfection Operation (DPO) Submission Processing (SP) 1040-X Organization Function Program (OFP) Information - Deleted paper processing instructions since all SP 1040-X cases are worked through CII.

(22) IRM 3.11.6.2.5(3), Document Perfection Operation (DPO) Submission Processing (SP) 1040-X Organization Function Program (OFP) Information - Added category codes to the table to help clarify which OFP to use. IPU 23U0060 issued 01-09-2023.

(23) IRM 3.11.6.2.5, Document Perfection Operation (DPO) Submission Processing (SP) 1040-X Organization Function Program (OFP) Information - Moved the subsection (formerly 3.11.6.1.8) and the OFP for CP Notices received through the DUT has been added. IPU 23U0277 issued 02-17-2023.

(24) IRM 3.11.6.2.5(3), Document Perfection Operation (DPO) Submission Processing (SP) 1040-X Organization Function Program (OFP) Information - Removed the Austin only designation since all sites will process all SP 1040-X workflows. IPU 23U0611 issued 05-09-2023.

(25) IRM 3.11.6.2.5.1, Daily Work Record (DWR) - New subsection to describe the DWR. IPU 23U0277 issued 02-17-2023.

(26) IRM 3.11.6.2.6, Systems - New subsection to describe the various systems used when processing amended returns. IPU 23U0277 issued 02-17-2023.

(27) IRM 3.11.6.2.6.1, IDRS Command Codes (CC) - New subsection to list all CCs used when processing amended returns. IPU 23U0277 issued 02-17-2023.

(28) IRM 3.11.6.2.6.1(1), IDRS Command Codes (CC) - Removed CC no longer needed for Austin to review SP 1040-X Memphis due to system change. IPU 23U0611 issued 05-09-2023.

(29) IRM 3.11.6.2.6.2, Integrated Automation Technologies (IAT) Tools - New subsection to list all IAT tools used when processing amended returns. IPU 23U0277 issued 02-17-2023.

(30) IRM 3.11.6.2.6.3, Correspondence Imaging Inventory (CII) Roles- Updated title and instructions to address the change to CIS. IPU 22U1142 issued 12-01-2022.

(31) IRM 3.11.6.2.6.3, Correspondence Imaging Inventory (CII) Roles - Moved and revised subsection to included CII System. IPU 23U0277 issued 02-17-2023.

(32) IRM 3.11.6.3, Controlling CII Cases on the Integrated Data Retrieval System (IDRS) - Deleted paper processing instructions since all SP 1040-X cases are worked through CII.

(33) IRM 3.11.6.3, Controlling CII Cases on the Integrated Data Retrieval System (IDRS) - Moved and renamed the subsection (formerly Controlling Cases on the Integrated Data Retrieval System (IDRS)). Then revised the subsection to reflect the systemic controlling of CII cases, and to add the Memphis remote site. IPU 23U0277 issued 02-17-2023.

(34) IRM 3.11.6.3(2), Controlling CII Cases on the Integrated Data Retrieval System (IDRS) - Removed Memphis from the table to reflect the current generic queues. IPU 23U0386 issued 03-13-2023.

(35) IRM 3.11.6.3(2), Controlling CII Cases on the Integrated Data Retrieval System (IDRS) - Site queue number updated, and instructions were added to address queue number changes to ensure consistency. IPU 23U0611 issued 05-09-2023.

(36) IRM 3.11.6.3(5), Controlling CII Cases on the Integrated Data Retrieval System (IDRS) - Deleted paragraph 5 and incorporated information into a new subsection. IPU 23U0763 issued 06-22-2023.

(37) IRM 3.11.6.3(1), (2), and (5), Controlling CII Cases on the Integrated Data Retrieval System (IDRS) - Paragraphs 1 and 2 were rewritten to address CII auto-distribution. The note in paragraph 2 has been deleted and the information rewritten and added to new paragraph 5. IPU 23U0883 issued 08-10-2023.

(38) IRM 3.11.6.3.1, Submission Processing CII Generic Queue Management - Deleted subsection to remove manual distribution instructions.

(39) IRM 3.11.6.3.1, Auto-Distribution - New subsection to address SP 1040-X's auto-distribution of cases using the Correspondence Imaging Inventory (CII) system. IPU 23U0883 issued 08-10-2023.

(40) IRM 3.11.6.3.1(3) and (6), Auto-Distribution - Paragraph 3 has been updated to add an exception to the MUI limit for TEs on learning curve. Paragraph 6 has been updated to ensure cases being manually reassigned follow FIFO. IPU 23U0894 issued 08-16-2023.

(41) IRM 3.11.6.4, Amended Return Preliminary Review - The subsection has been renamed (formerly Preliminary Review of Form 1040-X/Amended Return) and rewritten to remove paper processing instructions.

(42) IRM 3.11.6.4, Amended Return Preliminary Review - The entire subsection was revised to remove paper instructions and to move split image instructions to a new subsection. IPU 23U0277 issued 02-17-2023.

(43) IRM 3.11.6.4(6), Amended Return Preliminary Review - Revised the classified waste instructions because a new subsection specifically for classified waste has been added. IPU 23U0984 issued 10-02-2023.

(44) IRM 3.11.6.4.1, CII Split Image Request - New subsection to simplify the split image process. IPU 23U0277 issued 02-17-2023.

(45) IRM 3.11.6.4.1(3), CII Split Image Request - Revised instruction to provide clarity of whom to notify. IPU 23U0611 issued 05-09-2023.

(46) IRM 3.11.6.4.2(1), Associating Forms, Schedules, and Other Documents to CII Cases - The subsection has been renamed (formerly Associating Forms, Schedules, and Other Documents to MEFP and MEFS Cases). Paragraph 1 has been updated to remove "MEFP or MEFS" case. IPU 23U0277 issued 02-17-2023.

(47) IRM 3.11.6.4.3, Tax Period - Deleted paper processing instructions and added correspondence instructions because cases are worked through CII.

(48) IRM 3.11.6.4.3(1), (2), and (4), Tax Period - Paragraph 1 note has been revised to remove "MEFP or MEFS". Paragraphs 2 and 4 were revised to reflect CII processing. IPU 23U0277 issued 02-17-2023.

(49) IRM 3.11.6.4.4, Taxpayer Identification Number (TIN) - The subsection has been rewritten to remove paper processing instructions. Instructions on how to research a scrambled SSN have been added.

(50) IRM 3.11.6.4.4(4), Taxpayer Identification Number (TIN) - Revised to reflect CII processing. IPU 23U0277 issued 02-17-2023.

(51) IRM 3.11.6.4.4.1, Protecting Americans from Tax Hikes (PATH Act) - The subsection has been revised to ensure consistent application of the PATH Act.

(52) IRM 3.11.6.4.4.2, TIN requirements for Exemptions and Credits - The subsection has been revised to simplify processing instructions.

(53) IRM 3.11.6.4.5, Received Date - Deleted paper processing instructions since all SP 1040-X cases are worked through CII.

(54) IRM 3.11.6.4.5(3), (5), and (10), Received Date - Paragraphs 3 and 5 have revised to reflect CII processing. Paragraph 10 has been deleted because all SP 1040-X workflows are controlled systemically. IPU 23U0277 issued 02-17-2023.

(55) IRM 3.11.6.4.5.2, Superseding Returns - Deleted prior year information and revised routing instructions to ensure consistency.

(56) IRM 3.11.6.4.6, Signature - The subsection has been updated to simplify processing instructions and remove paper processing instructions.

(57) IRM 3.11.6.4.6(1) and (2), Signature - Moved CP notice instructions from paragraph 1 to a new paragraph 2. IPU 23U0277 issued 02-17-2023.

(58) IRM 3.11.6.4.6.1, Centralized Authorization File (CAF) - Form 2848, Power of Attorney (POA) and Form 8821 (TIA) and General /Durable POAs - The subsection has been updated to simplify processing instructions.

(59) IRM 3.11.6.4.6.1(6), (7), (9), and (11), Centralized Authorization File (CAF) - Form 2848, Power of Attorney (POA) and Form 8821 (TIA) and General /Durable POAs - Paragraphs 6 and 11 have been revised to reflect CII processing. Paragraph 7 has been deleted to remove paper processing instructions. Paragraph 9 was updated to add instructions for the SP 1040-X Memphis remote site. IPU 23U0277 issued 02-17-2023.

(60) IRM 3.11.6.4.7, Processing Presidential Election Campaign Fund (PECF) Requests - Removed prior year instructions and paper routing instructions, and added correspondence instructions for consistency.

(61) IRM 3.11.6.4.7(7), Processing Presidential Election Campaign Fund (PECF) Requests - Removed paper processing instructions because all SP 1040-X workflows use the CII system. IPU 23U0277 issued 02-17-2023.

(62) IRM 3.11.6.4.8, Discovered Remittances - Deleted the subsection to remove paper processing instructions.

(63) IRM 3.11.6.4.8(1) and (2), Updating Case Data - Paragraph 1 has been updated to include case error instructions.

(64) IRM 3.11.6.4.8(2) and (3), Updating Case Data - Updated OFPs in paragraph 2 due to realignment. Removed paragraph 3 CC ACTON instructions due to tool update. IPU 23U0060 issued 01-09-2023.

(65) IRM 3.11.6.4.8(2) and (4), Updating Case Data - Paragraph 2 was updated to remove the Austin Only designation to prepare for auto-distribution and to add the program code for CP 08 and CP 09 notices received through the DUT. Paragraph 4 was revised to specify CII processing. IPU 23U0277 issued 02-17-2023.

(66) IRM 3.11.6.4.8(2), Updating Case Data - Paragraph 2 was updated to ensure case data is consistent. IPU 23U0984 issued 10-02-2023.

(67) IRM 3.11.6.4.8.1, CII Cases with an E-1 Error - New subsection with instructions on how to resolve a CII case error.

(68) IRM 3.11.6.5, Screening Criteria for Processable Return - The note in paragraph 1 has been deleted and the information has been included in the paragraph.

(69) IRM 3.11.6.5.1, Transaction Code (TC) 150 Research (No TC 150) - The subsection has been rewritten to consolidate research instructions.

(70) IRM 3.11.6.5.1(6) and (8), Transaction Code (TC) 150 Research (No TC 150) - Paragraph 6 was revised to remove paper processing instructions. Paragraph 8 was updated to add instructions for SP 1040-X Memphis tax examiners. IPU 23U0277 issued 02-17-2023.

(71) IRM 3.11.6.5.1(6), Transaction Code (TC) 150 Research (No TC 150) - Paper processing instructions were removed. SERP Feedback # 9237. IPU 23U0386 issued 03-13-2023.

(72) IRM 3.11.6.5.1(9), Transaction Code (TC) 150 Research (No TC 150) - Added E- freeze instructions when sending to batching. IPU 23U0611 issued 05-09-2023.

(73) IRM 3.11.6.5.1(9), Transaction Code (TC) 150 Research (No TC 150) - Revised TC 971 AC 002 instructions for consistency. IPU 23U0658 issued 05-25-2023.

(74) IRM 3.11.6.5.2, Form 1040 Attached to Form 1040-X - The subsection has been rewritten to improve routing instructions and to remove paper processing instructions.

(75) IRM 3.11.6.5.2(2), Form 1040 Attached to Form 1040-X -Deleted paragraph to remove paper processing instructions. IPU 23U0277 issued 02-17-2023.

(76) IRM 3.11.6.5.2(5), Form 1040 Attached to Form 1040-X - Added reminder to input a TC 971 AC 002 for consistency. IPU 23U0658 issued 05-25-2023.

(77) IRM 3.11.6.5.3, Amended Form 1040 without Form 1040-X Attached - The subsection has been rewritten to improve routing instructions and to remove paper processing instructions.

(78) IRM 3.11.6.5.3(1), Amended Form 1040 without Form 1040-X Attached - Paragraph 1 was revised to remove paper processing instructions. IPU 23U0277 issued 02-17-2023.

(79) IRM 3.11.6.5.3(1), Amended Form 1040 without Form 1040-X Attached - Added reminder to input a TC 971 AC 002 for consistency. IPU 23U0658 issued 05-25-2023.

(80) IRM 3.11.6.5.4, Form 1040-X without Form 1040 Attached (No TC 150) - has been revised to specify when a case is to be suspended. The correspondence instructions have also been updated to ensure consistency.

(81) IRM 3.11.6.5.4(1) and (2), Form 1040-X without Form 1040 Attached (No TC 150) - Paragraph 1 was revised to remove paper processing instructions. Paragraph 2 updated to correspondence format to help copy paragraphs to the IAT Letters tool. IPU 23U0277 issued 02-17-2023.

(82) IRM 3.11.6.6(2), Master File Verification and Math Verification Screening - Revised to reflect CII processing. IPU 23U0277 issued 02-17-2023.

(83) IRM 3.11.6.6.1, Duplicate Returns and Identical Open CII Cases - Removed duplicated routing instructions and local procedure instructions since all SP 1040-X cases are worked through CII.

(84) IRM 3.11.6.6.1(1), (3), and (4), Duplicate Returns and Identical Open CII Cases - Each paragraph has been updated to remove paper processing instructions. IPU 23U0277 issued 02-17-2023.

(85) IRM 3.11.6.6.1(2), Duplicate Returns and Identical Open CII Cases - Updated routing instructions to remove paper processing instructions. IPU 23U0763 issued 06-22-2023.

(86) IRM 3.11.6.6.1(5), Duplicate Returns and Identical Open CII Cases - Revised the classified waste instructions because a new subsection specifically for classified waste has been added. IPU 23U0984 issued 10-02-2023.

(87) IRM 3.11.6.7, Sorting, Routing, and Priority Processing Screening - The subsection has been rewritten to improve routing instructions and to remove paper processing instructions.

(88) IRM 3.11.6.7(3), (4), and (5), Sorting, Routing, and Priority Screening - Each paragraph has been updated to make instructions CII specific. IPU 23U0277 issued 02-17-2023.

(89) IRM 3.11.6.7.1, SP 1040-X Routing When a TC 150 Isn’t Present - New subsection to improve No TC 150 routing instructions.

(90) IRM 3.11.6.7.2, SP 1040-X Routing When a TC 150 Is Present - New subsection to improve routing instructions when a TC 150 is present.

(91) IRM 3.11.6.7.3, International Return Screening - Consolidated the International Returns and the International Return Criteria subsections. The consolidation resulted in the deletion of the International Return Criteria subsection (formerly IRM 3.11.6.7.21.1).

(92) IRM 3.11.6.7.5, Office of Fraud Enforcement (OFE), Suspicious Case Referral Screening - Deleted paper processing instructions since all SP 1040-X cases are worked through CII.

(93) IRM 3.11.6.7.5(2) and (3), Office of Fraud Enforcement (OFE), Suspicious Case Referral Screening - Removed paper processing instructions. IPU 23U0277 issued 02-17-2023.

(94) IRM 3.11.6.7.6, Disaster Claim Screening - The subsection has been rewritten to improve the screening process.

(95) IRM 3.11.6.7.7, Carryback and Carryforward Screening - Removed local procedure and paper processing instructions since all SP 1040-X cases are worked through CII. Cares Act information has also been added to the subsection to ensure consistency when screening cases.

(96) IRM 3.11.6.7.7(2), Carryback and Carryforward Screening - Updated to make instructions CII specific. IPU 23U0277 issued 02-17-2023.

(97) IRM 3.11.6.7.7(13), Carryback and Carryforward Screening - Updated Form routing instructions. SERP Feedback # 12257. IPU 23U0844 issued 07-24-2023.

(98) IRM 3.11.6.7.7.1, List of Frivolous Claims - This subsection has been deleted as a result of the instructions being consolidated into IRM 3.11.6.7.11, Frivolous Claims Screening.

(99) IRM 3.11.6.7.8, Identity Theft (IDT) Screening - Deleted paper processing instructions since all SP 1040-X cases are worked through CII.

(100) IRM 3.11.6.7.8(7), Identity Theft (IDT) Screening - Updated the table to make instructions CII specific and to add instructions for SP 1040-X Memphis. IPU 23U0277 issued 02-17-2023.

(101) IRM 3.11.6.7.9, Statute Review Screening - The subsection has been revised to improve the screening process.

(102) IRM 3.11.6.7.9, Statute Review Screening - The entire subsection has been revised due to updated routing procedures. IPU 23U0106 issued 01-17-2023.

(103) IRM 3.11.6.7.9, Statute Review Screening - The subsection has been revised to prevent cases from being routed incorrectly. IPU 23U0277 issued 02-17-2023.

(104) IRM 3.11.6.7.9(7), Statute Review Screening - Added E- freeze instructions when sending to batching. IPU 23U0611 issued 05-09-2023.

(105) IRM 3.11.6.7.9(7), Statute Review Screening - Updated note concerning the input of a TC 971 AC 002 for consistency. IPU 23U0658 issued 05-25-2023.

(106) IRM 3.11.6.7.10, Examination Case Screening - The title has been changed (formerly Examination) and the subsection has been revised to improve the screening process.

(107) IRM 3.11.6.7.10(2), Examination Case Screening - Updated to clarify what is to be considered a SP 1040-X complete claim. IPU 23U0277 issued 02-17-2023.

(108) 3.11.6.7.10.2, Exam/-L Freeze Claim Processing - This subsection has been incorporated into IRM 3.11.6.7.10, Examination Case Screening, causing this subsection to be deleted.

(109) 3.11.6.7.10.2(4), Exam/-L Freeze Claim Processing - Updated instruction to reflect CII case processing. IPU 23U0894 issued 08-16-2023.

(110) IRM 3.11.6.7.11, Frivolous Claims Screening - Consolidated and revised the Frivolous Returns and the List of Frivolous Claims subsections. The consolidation and revision resulted in the deletion of the List of Frivolous Claims subsection (formerly IRM 3.11.6.7.7.1).

(111) IRM 3.11.6.7.11(2) and (4), Frivolous Claims Screening - Paragraphs 2 and 4 have been updated to add a new freeze code and TC for FRP cases. IPU 23U0277 issued 02-17-2023.

(112) IRM 3.11.6.7.7(2) (3), Frivolous Claims - Paragraphs 2 and 3 have been updated to reflect out-of-scope processing instructions for SP 1040-X. SERP Feedback: 13383. IPU 23U0956 issued 09-13-2023.

(113) IRM 3.11.6.7.12, Criminal Investigation (CI) Scheme Development Center (SDC) Screening - Deleted paper processing instructions since all SP 1040-X cases are worked through CII, and revised the tables to clarify routing conditions.

(114) IRM 3.11.6.7.12(2), Criminal Investigation (CI) Scheme Development Center (SDC) Screening - Removed paper processing instructions. IPU 23U0277 issued 02-17-2023.

(115) IRM 3.11.6.7.12.1, International Return Criteria - This subsection has been deleted as a result of the instructions being consolidated into IRM 3.11.6.7.3, International Return Screening.

(116) IRM 3.11.6.7.13, Return Integrity and Verification Operation (RIVO) Case Screening - The subsection has been revised to break-up instructions into a narrow focus to ensure consistency.

(117) IRM 3.11.6.7.13(2), Return Integrity and Verification Operation (RIVO) Case Screening - Added Memphis to the table. IPU 23U0277 issued 02-17-2023.

(118) IRM 3.11.6.7.14, Category A (CAT-A) Criteria Screening - The subsection has been rewritten to improve CAT-A screening and routing procedures.

(119) IRM 3.11.6.7.14.1(6), Category A (CAT-A) Criteria Screening - Removed paper processing instructions. IPU 23U0277 issued 02-17-2023.

(120) IRM 3.11.6.7.14.1(1), (2), and (3), Category A (CAT-A) Criteria Screening - Paragraph 1 has been rewritten and new paragraphs 2 and 3 have been added to improve the CAT-A screening process. New paragraph 3 removed the need for the instructions in paragraphs 5 and 6 causing them to be deleted. IPU 23U0883 issued 08-10-2023.

(121) IRM 3.11.6.7.15(3), Automated Underreporter (AUR) Screening - Revised the table to remove paper processing instructions. IPU 23U0277 issued 02-17-2023.

(122) IRM 3.11.6.7.16, Accounts Management Case Screening - The subsection has been rewritten to improve claim screening and to remove paper processing instructions since all SP 1040-X cases are worked through CII.

(123) IRM 3.11.6.7.16(4) and (6), Accounts Management Case Screening - Removed paper routing instructions and specified CII routing procedures. IPU 23U0277 issued 02-17-2023.

(124) IRM 3.11.6.7.17, Open Case and Open Control Base Screening - Deleted paper processing instructions since all SP 1040-X cases are worked through CII.

(125) IRM 3.11.6.7.17(4) and (7), Open Case and Open Control Base Screening - Paragraph 4 was updated to specify CII cases. A reference title was updated in paragraph 7. IPU 23U0277 issued 02-17-2023.

(126) IRM 3.11.6.7.17(4), Open Case and Open Control Base Screening - Updated routing instructions to remove paper processing instructions. IPU 23U0763 issued 06-22-2023.

(127) IRM 3.11.6.7.17.1, Cases Open to an SP 1040-X Tax Examiner - The subsection (formerly 3.11.6.7.13.1) has been updated to reflect auto-distribution of CII cases to SP 1040-X tax examiners.

(128) IRM 3.11.6.7.17.1, Cases Open to an SP 1040-X Tax Examiner - New subsection created to address multiple open CII cases and to remove paper processing instructions. IPU 23U0763 issued 06-22-2023.

(129) IRM 3.11.6.7.18, All Other Claims Screening - New subsection to categorize various other routing conditions.

(130) IRM 3.11.6.7.18.1, Killed in Terrorist Action (KITA) Screening - Deleted paper processing instruction since all SP 1040-X cases are worked through CII.

(131) IRM 3.11.6.7.18.3.(2), Collection Function Case Screening - Removed paper processing instructions. IPU 23U0277 issued 02-17-2023

(132) IRM 3.11.6.7.18.3.1, Compliance Services Collection Operations (CSCO) Screening - The subsection has been rewritten to improve claim screening and to remove paper processing instructions since all SP 1040-X cases are worked through CII.

(133) IRM 3.11.6.7.18.3.2, Automated Collection Systems (ACS) Screening - The subsection has been rewritten to improve claim screening and to remove paper processing instructions since all SP 1040-X cases are worked through CII.

(134) IRM 3.11.6.7.18.3.3, Offer In Compromise (OIC) Screening - The subsection has been rewritten to improve claim screening and to remove paper processing instructions since all SP 1040-X cases are worked through CII.

(135) IRM 3.11.6.7.18.3.4, Field Collection Case Screening - The subsection has been rewritten to improve claim screening and to remove paper processing instructions since all SP 1040-X cases are worked through CII.

(136) IRM 3.11.6.7.18.3.5(5), Automated Substitute For Return (ASFR) and Non-Filer Return (NFR) Screening - Specified CII processing instructions. IPU 23U0277 issued 02-17-2023.

(137) IRM 3.11.6.7.19, Releasing Screened Returns - The subsection has been revised to remove paper processing instructions. IPU 23U0277 issued 02-17-2023.

(138) IRM 3.11.6.7.19, Releasing Screened Returns - Deleted a duplicate instruction found elsewhere in the IRM.

(139) IRM 3.11.6.7.19.1, Working Trail and Action Trail - The subsection has been revised to break-up instructions into several subsections ensure consistency.

(140) IRM 3.11.6.7.19.1, Working Trail and Action Trail - The subsection has been revised to remove paper processing instructions. IPU 23U0277 issued 02-17-2023.

(141) IRM 3.11.6.7.19.1.1, Working Trails and Action Trails When Reassigning a Case - New subsection for working trails and action trails when reassigning a case.

(142) IRM 3.11.6.7.19.1.2, Working Trails and Action Trails When Rerouting a Case - New subsection for working trails and action trails when rerouting a case.

(143) IRM 3.11.6.7.19.1.3, Working Trails and Action Trails When Sending an E-fax or Secure Message - New subsection for working trails and action trails when sending an e-fax or secure message.

(144) IRM 3.11.6.7.19.2, Transaction Code (TC) 971 and Action Codes - Deleted paper processing instruction since all SP 1040-X cases are worked through CII.

(145) IRM 3.11.6.7.19.2(2), Transaction Code (TC) 971 and Action Codes - Added action code to be used on certain No TC 150 cases. IPU 23U0611 issued 05-09-2023.

(146) IRM 3.11.6.8, 1040-X Routing Guide - The routing criteria has been updated to be consistent with Mef segmentation.

(147) IRM 3.11.6.8, 1040-X Routing Guide - Added Form 8915-F and renumbered the table. IPU 22U1142 issued 12-01-2022.

(148) IRM 3.11.6.8(7), 1040-X Routing Guide - Digital Assets routing condition has been added for consistency. IPU 23U0611 issued 05-09-2023.

(149) IRM 3.11.6.8(7), 1040-X Routing Guide - Added additional routing criteria to ensure consistency. IPU 23U0658 issued 05-25-2023.

(150) IRM 3.11.6.8(7), 1040-X Routing Guide - Updated routing criteria to ensure consistency. IPU 23U0763 issued 06-22-2023.

(151) IRM 3.11.6.9, 1040-X Reassignment and Reroute Guides - Revised the subsection now that SP 1040-X processes all cases through CII.

(152) IRM 3.11.6.9.1(4), MEFP Reassignment and Reroute Guide - Updated suspense instructions to ensure consistency. IPU 23U0106 issued 01-17-2023.

(153) IRM 3.11.6.9.1(4) MEFP Reassignment and Reroute Guide - Updated reassignment instructions due to procedure change by receiving area. IPU 23U0611 issued 05-09-2023.

(154) IRM 3.11.6.9.1(4), MEFP Reassignment and Reroute Guide - Updated priority code usage instructions for consistency. IPU 23U0763 issued 06-22-2023.

(155) IRM 3.11.6.9.2, MEFS Reassignment and Reroute Guide - Revised the subsection to clarify routing procedures.

(156) IRM 3.11.6.9.2(4), MEFS Reassignment and Reroute Guide - Updated suspense instructions to ensure consistency. IPU 23U0106 issued 01-17-2023.

(157) IRM 3.11.6.9.2(4), MEFS Reassignment and Reroute Guide - Added reassignment procedures for CP notices received through the DUT. IPU 23U0277 issued 02-17-2023.

(158) IRM 3.11.6.9.2(4), MEFS Reassignment and Reroute Guide - Updated reassignment instructions due to procedure change by receiving area. SERP Feedback# 10200. IPU 23U0611 issued 05-09-2023.

(159) IRM 3.11.6.9.2(4), MEFS Reassignment and Reroute Guide - Updated priority code usage instructions for consistency. IPU 23U0763 issued 06-22-2023.

(160) IRM 3.11.6.9.4, MEFP and MEFS Secure Messaging and E-fax Routing - Revised the subsection to clarify routing procedures.

(161) IRM 3.11.6.10, Correspondence Procedures - Revised correspondence instructions to reduce possible delays when C-letters are updated.

(162) IRM 3.11.6.10(1), (2), and (10), Correspondence Procedures - Paragraph 1 was updated to reflect CII processing instructions. Paragraph 2 was updated to remove Surge team information and add SP 1040-X Memphis remote site information. Paragraph 10 was updated to remove paper processing instructions. IPU 23U0277 issued 02-17-2023.

(163) IRM 3.11.6.10(2) and (8), Correspondence Procedures - Paragraph 2 was updated due to a system change. Paragraph 8 was updated to remove paper processing instructions. IPU 23U0611 issued 05-09-2023.

(164) IRM 3.11.6.10.1, Multiple Correspondence Issues - Revised correspondence instructions to reduce possible delays when C-letters are updated.

(165) IRM 3.11.6.10.1(1) and (2), Multiple Correspondence Issues - Removed paper processing instructions. IPU 23U0611 issued 05-09-2023.

(166) IRM 3.11.6.10.2, Spanish Correspondence - Revised correspondence instructions to reduce possible delays when C-letters are updated.

(167) IRM 3.11.6.10.2(4), Spanish Correspondence - Added new C-letter to the table. IPU 23U0106 issued 01-17-2023.

(168) IRM 3.11.6.10.2(4), Spanish Correspondence - Paper processing instructions have been removed. IPU 23U0611 issued 05-09-2023.

(169) IRM 3.11.6.10.3, Corresponding on Net Balance Due Returns (Letter 324C) - Revised correspondence instructions to reduce possible delays when C-letters are updated.

(170) IRM 3.11.6.10.3, Corresponding on Net Balance Due Returns (Letter 324C) - The subsection was revised to remove paper processing instructions. IPU 23U0277 issued 02-17-2023.

(171) IRM 3.11.6.10.3.1, Letter 178C, Amended (Unnumbered) Return Incomplete for Processing - This subsection has been deleted and the contents consolidated into IRM 3.11.6.10.3. IPU 23U0611 issued 05-09-2023.

(172) IRM 3.11.6.10.3.2, Form 8009-A, We Need More Information to Process Your Amended Return or CP Notice - This subsection has been deleted to remove paper processing instructions since all SP 1040-X inventory is worked through CII. IPU 23U0611 issued 05-09-2023.

(173) IRM 3.11.6.10.4, Corresponding on Net Refund and Zero-Balance Returns (Letter 178C) - Revised correspondence instructions to reduce possible delays when C-letters are updated.

(174) IRM 3.11.6.10.4, Corresponding on Net Refund and Zero-Balance Returns (Letter 178C) - The entire subsection has been revised to remove all paper processing instructions and to consolidate correspondence instructions. The title to the subsection has also been changed (formerly Corresponding on Net Refund and Zero-Balance Returns (Form 8009-A and Letter 178C)) to reflect the revision, and the updated title has been changed to reference links throughout the IRM. IPU 23U0611 issued 05-09-2023.

(175) IRM 3.11.6.10.5, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP) - The subsection has been revised to break-up the correspondence and input instructions. The correspondence instructions have been revised to reduce possible delays when C-letters are updated. The input instructions have been moved to a new subsection (Inputting a Disallowance Adjustment).

(176) IRM 3.11.6.10.5, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP) - The subsection was revised to remove paper processing instructions. IPU 23U0277 issued 02-17-2023.

(177) IRM 3.11.6.10.5(3), Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP) - Removed paper processing instructions. IPU 23U0611 issued 05-09-2023.

(178) IRM 3.11.6.10.6, Correspondence for Correcting a Claim (Letter 474C and 474SP) - Revised correspondence instructions to reduce possible delays when C-letters are updated.

(179) IRM 3.11.6.10.7, Correspondence for Requesting Credit Previously Received (Letter 76C) - Revised correspondence instructions to reduce possible delays when C-letters are updated.

(180) IRM 3.11.6.10.7, Correspondence for Requesting Credit Previously Received (Letter 76C) - New subsection to address 76C Letter correspondence. IPU 23U0106 issued 01-17-2023.

(181) IRM 3.11.6.10.7, Correspondence for Requesting Credit Previously Received (Letter 76C) - The entire subsection was updated. Paragraph 1 was updated to address the Letter 76C update. SERP Feedback# 10515. Paragraphs 2 through 4 were added to include CP notice correspondence instructions. IPU 23U0611 issued 05-09-2023.

(182) IRM 3.11.6.10.7(4), Correspondence for Requesting Credit Previously Received (Letter 76C) - Updated correspondence fill-in instructions. SERP Feedback # 12119. IPU 23U0844 issued 07-24-2023.

(183) IRM 3.11.6.10.7(3), Correspondence for Requesting Credit Previously Received (Letter 76C) - Correspondence for Requesting Credit Previously Received (Letter 76C) - Updated correspondence instructions for consistency. SERP Feedback# 13158. IPU 23U0945 issued 09-11-2023.

(184) IRM 3.11.6.10.8, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP) - Revised correspondence instructions to reduce possible delays when C-letters are updated.

(185) IRM 3.11.6.10.8, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP) - The subsection has been updated to add instructions for a new TC 971 maker, update the correspondence fill-ins (SERP Feedback# 8141), and to remove paper processing instructions. IPU 23U0277 issued 02-17-2023.

(186) IRM 3.11.6.10.8(3), Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP) - Updated correspondence paragraphs due to letter update. IPU 23U0712 issued 06-08-2023.

(187) IRM 3.11.6.10.9, Correspondence for Estimated Tax Penalty (Letter 369C) - Revised correspondence instructions to reduce possible delays when C-letters are updated.

(188) IRM 3.11.6.10.9, Correspondence for Estimated Tax Penalty (Letter 369C) - The subsection was updated to reflect CII processing instructions. IPU 23U0277 issued 02-17-2023.

(189) IRM 3.11.6.10.10, Correspondence for Excess Social Security and Railroad Retirement Tax (Letter 404C) - Revised correspondence instructions to reduce possible delays when C-letters are updated.

(190) IRM 3.11.6.10.10(1), Correspondence for Excess Social Security and Railroad Retirement Tax (Letter 404C) - Revised the correspondence fill-in for consistency. IPU 23U0700 issued 06-05-2023.

(191) IRM 3.11.6.10.11, Correspondence for Dependent Documentation (Letter 3050C and Letter 3050SP) - Revised correspondence instructions to reduce possible delays when C-letters are updated.

(192) IRM 3.11.6.10.12, Illegible Amended Return (Letter 418C) - Revised correspondence instructions to reduce possible delays when C-letters are updated.

(193) IRM 3.11.6.10.12(1) and (2), Illegible Amended Return (Letter 418C) - Paragraph 1 was updated to remove paper processing instructions. Paragraph 2 was updated to specify the suspense period. IPU 23U0277 issued 02-17-2023.

(194) IRM 3.11.6.10.13, Unable to Locate Amended Return Procedures (Letter 282C and Letter 282SP) - This subsection has been deleted because all SP 1040-X cases are worked through CII.

(195) IRM 3.11.6.10.13, Undelivered Correspondence - Deleted paper processing instructions since all SP 1040-X cases are worked through CII, and simplified processing instructions.

(196) IRM 3.11.6.10.13(3), Undelivered Correspondence - Removed Form 9856 instructions and replaced them with paragraph references. IPU 22U1142 issued 12-01-2022.

(197) IRM 3.11.6.10.13, Undelivered Correspondence - The subsection was updated to remove paper processing instructions. IPU 23U0277 issued 02-17-2023.

(198) IRM 3.11.6.10.13(5), Undelivered Correspondence - Paragraph 5 was deleted to remove paper processing instructions. The deletion caused the paragraphs in the subsection to be renumbered. The new paragraph 5 has been updated to remove Form 8009-A instructions. IPU 23U0611 issued 05-09-2023.

(199) IRM 3.11.6.10.13(5), (6), and (8), Undelivered Correspondence - Revised the classified waste instructions because a new subsection specifically for classified waste has been added. IPU 23U0984 issued 10-02-2023.

(200) IRM 3.11.6.10.14, Correspondence Received - The subsection has been renamed (formerly MEFP and MEFS Correspondence) and revised to reflect SP 1040-X processing cases through CII.

(201) IRM 3.11.6.10.14(1) and (2), Correspondence Received - Both paragraphs have been updated to remove individual MEFP and MEFS instructions. IPU 23U0277 issued 02-17-2023.

(202) IRM 3.11.6.11, Correspondence Table of Issues, C-Letter and Paragraph Fill-ins - Revised the subsection to specify CII cases. IPU 23U0277 issued 02-17-2023.

(203) IRM 3.11.6.11.1, Letter 178C Correspondence Table of Issues - The correspondence instructions have been revised to update form titles and reduce possible delays when C-letters are updated.

(204) IRM 3.11.6.11.1(1), Letter 178C Correspondence Table of Issues - Updated correspondence fill-in. IPU 23U0611 issued 05-09-2023.

(205) IRM 3.11.6.11.1, Letter 178C Correspondence Table of Issues - Renamed the subsection (formerly MEFP and MEFS Case Correspondence Table of Issues) and revised it to improve correspondence and reflect CII case processing. IPU 23U0277 issued 02-17-2023.

(206) IRM 3.11.6.11.1(1) (2), and (3), Letter 178C Correspondence Table of Issues - Revised the correspondence fill-in to account for the IAT Letters tool open paragraph limitation. IPU 23U0658 issued 05-25-2023.

(207) IRM 3.11.6.11.2, Letter 324C Correspondence Table of Issues - The correspondence instructions have been revised to update form titles and reduce possible delays when C-letters are updated.

(208) IRM 3.11.6.11.2, Letter 324C Correspondence Table of Issues - Renamed the subsection (formerly Paper Case Correspondence Table of Issues) and revised it to improve correspondence and reflect CII case processing. IPU 23U0277 issued 02-17-2023.

(209) IRM 3.11.6.11.2(2), Letter 324C Correspondence Table of Issues - Revised the correspondence fill-in to account for the IAT Letters tool open paragraph limitation. IPU 23U0658 issued 05-25-2023.

(210) IRM 3.11.6.12, Updating Taxpayer Information Using CC ENMOD - The subsection has been revised to narrow focus.

(211) IRM 3.11.6.12.1, Entity Changes - The subsection has been revised to break-up instructions into several subsections ensure consistency.

(212) IRM 3.11.6.12.1(1) (4) and (5) Entity Changes - The instructions in paragraphs 1 and 4 have been incorporated into new paragraphs 4 and 5 to ensure Entity related research and changes are consistent. IPU 23U0945 issued 09-11-2023.

(213) IRM 3.11.6.12.1.1, Address Changes - New subsection specifically for address changes.

(214) IRM 3.11.6.12.1.2, Filing Status Changes - New subsection specifically for filing status changes.

(215) IRM 3.11.6.12.1.2.1, Filing 2 Status Changes - This subsection has been revised to ensure consistency when inputting FS 2 changes.

(216) IRM 3.11.6.12.1.2.1(6), Filing Status 2 Changes - Corrected a reference. IPU 23U0242 issued 02-06-2023.

(217) IRM 3.11.6.12.1.2.1(7), Filing Status 2 Changes - Added an exception to paragraph 7 because of changes made to IRM 21.6.1.5.3.2 and IRM 21.6.1.7.2. Paragraphs 4, 5, 6, and 7 have been rearranged. IPU 23U0700 issued 06-05-2023.

(218) IRM 3.11.6.12.3(2), Form 9000, Alternative Media Preference - REQ77/FRM77 Programming was updated to require an entry in the Secondary Date field. IPU 22U1142 issued 12-01-2022.

(219) IRM 3.11.6.13, Personal Exemption or Dependent Changes - Moved instructions on revoking an ITIN to a new subsection.

(220) IRM 3.11.6.13.1, Revoking a Dependent’s ITIN - New subsection with instructions on how to revoke an ITIN.

(221) IRM 3.11.6.13.3(7), Updating the Duplicate Taxpayer Identification Number (TIN) OnLine (DUPOL) Database - Added a reminder to paragraph 7 because of changes made to IRM 21.6.1.5.3.2 and IRM 21.6.1.7.2. IPU 23U0700 issued 06-05-2023.

(222) IRM 3.11.6.13.4, Command Code DDBCK (Dependent Database Check) - Deleted paper processing instructions since all SP 1040-X cases are worked through CII.

(223) IRM 3.11.6.13.4(5), Command Code DDBCK (Dependent Database Check) - Added a reminder to paragraph 3 because of changes made to IRM 21.6.1.5.3.2 and IRM 21.6.1.7.2. IPU 23U0700 issued 06-05-2023.

(224) IRM 3.11.6.13.4(8), Command Code DDBCK (Dependent Database Check) - Updated instruction to reflect CII case processing. IPU 23U0894 issued 08-16-2023.

(225) IRM 3.11.6.13.5, Command Code DUPED - Deleted manual processing instructions since IAT tools are mandated.

(226) IRM 3.11.6.13.5(3), Command Code DUPED - Added a reminder to paragraph 3 because of changes made to IRM 21.6.1.5.3.2 and IRM 21.6.1.7.2. IPU 23U0700 issued 06-05-2023.

(227) IRM 3.11.6.13.5.1, Add a Record - Deleted manual processing instructions since IAT tools are mandated.

(228) IRM 3.11.6.14, Specific IMF Adjustments - The subsection has been revised to move AGI verification instructions to another subsection and duplicate instructions found elsewhere in the IRM have been deleted.

(229) IRM 3.11.6.14(8), Specific IRM Adjustments - Direct deposit instructions have been added. IPU 23U0242 issued 02-06-2023.

(230) IRM 3.11.6.14 (3) and (4), Specific IMF Adjustments - Added new TC 971 marker instructions to both paragraphs. IPU 23U0277 issued 02-17-2023.

(231) IRM 3.11.6.14.1.1, Adjusted Gross Income (AGI) - (Line 1) - AGI verification instructions have been added.

(232) IRM 3.11.6.14.1.1.1, Earned Income - Revised the subsection to improve screening procedures.

(233) IRM 3.11.6.14.1.1.3(2) and (3), Unemployment Compensation Exclusion (UCE) - Tax Year 2020 Only (Line 1) - Added note to paragraph 2 and deleted the table in paragraph 3 because the UCE recovery has ended. IPU 23U0106 issued 01-17-2023.

(234) IRM 3.11.6.14.1.1.4(4), Notice 2014-7, Qualified Medicaid Waiver Payments/Difficulty of Care - Added reason code instructions to be consistent with AM processing of 2014-7 cases. IPU 22U1142 issued 12-01-2022.

(235) IRM 3.11.6.14.1.1.5, Employer Provided Education Assistance (IRC 127) - (Line 1) - The subsection has been revised to simplify processing instructions.

(236) IRM 3.11.6.14.1.1.8, Student Loan Interest Deduction (Line 1) - Updated the table amounts for the new filing season.

(237) IRM 3.11.6.14.1.1.10, Form 2106, Employee Business Expenses (Line 1) - The subsection has been revised to additional qualifying individuals and processing instructions.

(238) IRM 3.11.6.14.1.1.11, Refund of State Taxes Paid - Tax Year 2022 Only - New subsection to address returns where taxpayers are not required to report state refunds as taxable income. IPU 23U0386 issued 03-13-2023.

(239) IRM 3.11.6.14.1.1.12, General Welfare and Disaster Relief Payments - Tax Year 2022 Only - New subsection to address returns where taxpayers are not required to report their payments received for the promotion of the general welfare or as a disaster relief payment. IPU 23U0386 issued 03-13-2023.

(240) IRM 3.11.6.14.1.1.12, General Welfare and Disaster Relief Payments - Tax Year 2022 Only - Updated the research instruction because different states used different forms. IPU 23U0844 issued 07-24-2023.

(241) IRM 3.11.6.14.1.2.1, Standard Deduction - Updated the deduction amounts for the new filing season.

(242) IRM 3.11.6.14.1.2.2, Itemized Deductions (Line 2) - Revised correspondence instructions to reduce possible delays when C-letters are updated.

(243) IRM 3.11.6.14.2.1.1, Form 6251, Alternative Minimum Tax - Deleted duplicate instruction within the subsection.

(244) IRM 3.11.6.14.2.2.1, Form 2441, Credit for Child and Dependent Care Expenses - Updated tables for the new filing season.

(245) IRM 3.11.6.14.2.2.3, Form 8863, Education Credits - Updated tables for the new filing season.

(246) IRM 3.11.6.14.2.2.3.1, Lifetime Learning Credit (LLC) - Revised correspondence instructions for consistency.

(247) IRM 3.11.6.14.2.2.3.1(3), Lifetime Learning Credit (LLC) - Added correspondence instructions. IPU 23U0277 issued 02-17-2023.

(248) IRM 3.11.6.14.2.2.3.1(1) and (3), Lifetime Learning Credit (LLC) - In paragraph 1, a link to Form 8863 eligibility criteria has been added. In paragraph 3, the verbiage was updated to reflect the change in the eligibility instructions. IPU 23U0386 issued 03-13-2023.

(249) IRM 3.11.6.14.2.2.3.2, American Opportunity Tax Credit (AOTC) - Non-refundable - Revised correspondence instructions for consistency.

(250) IRM 3.11.6.14.2.2.3.2(7), American Opportunity Tax Credit (AOTC) - Non-refundable - Added correspondence instructions. IPU 23U0277 issued 02-17-2023.

(251) IRM 3.11.6.14.2.2.3.2(6) and (7), American Opportunity Tax Credit (AOTC) - Non-refundable - In paragraph 6, a link to Form 8863 eligibility criteria has been added. In paragraph 7, the verbiage in the table has been updated to reflect the change in the eligibility instructions, and a new box was added with correspondence instructions. IPU 23U0386 issued 03-13-2023.

(252) IRM 3.11.6.14.2.2.5, Credit for Other Dependents (ODC) - Revised routing instructions and removed informational verbiage to simplify processing instructions.

(253) IRM 3.11.6.14.2.2.6, Child Tax Credit (CTC) - Removed tax year 2019 information.

(254) IRM 3.11.6.14.2.2.9.19, Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit - Revised correspondence instructions to reduce possible delays when C-letters are updated.

(255) IRM 3.11.6.14.2.2.9.20, Elective Payment Election (EPE) - Revised the subsection to specify how the election is claimed for tax year 2022.

(256) IRM 3.11.6.14.3.2.9.20, Elective Payment Election (EPE) - New subsection to address the Elective Payment Election for certain taxpayers. IPU 23U0763 issued 06-22-2023.

(257) IRM 3.11.6.14.2.4, Line 10 - Other Taxes - Revised the screening instructions to ensure cases are being routed correctly.

(258) IRM 3.11.6.14.2.4.1, Additional Tax on Early Distribution - Form 5329 and Form 1099-R (Line 10) - Revised the subsection to ensure consistency in research and correspondence procedures.

(259) IRM 3.11.6.14.2.4.2, Self-Employment (SE) Tax (Line 10) - Updated instructions to address undelivered correspondence and no-reply procedures.

(260) IRM 3.11.6.14.2.5, Total Tax (Line 11) - Deleted instructions duplicated elsewhere in the IRM.

(261) IRM 3.11.6.14.3.1, Federal Income Tax Withholding (Line 12) - Revised the subsection to simplify research, correspondence, and processing procedures.

(262) IRM 3.11.6.14.3.1, Federal Income Tax Withholding (Line 12) - Revised the entire subsection to add a new TC 971 markers. IPU 23U0277 issued 02-17-2023.

(263) IRM 3.11.6.14.3.1.1, Excess Social Security and Railroad Retirement Tax Act (RRTA) - Revised the subsection to simplify routing and math verification processing instructions.

(264) IRM 3.11.6.14.3.2(2), Estimated Tax Payments (Line 13) - Added SP 1040-X Memphis instructions. IPU 23U0277 issued 02-17-2023.

(265) IRM 3.11.6.14.4, Earned Income Credit (EIC) - Line 14 - Revised the subsection to ensure consistency when routing and math verification is required.

(266) IRM 3.11.6.14.4.1, Earned Income Tax Credit (EITC) Eligibility Criteria - Revised the subsection to simplify processing instructions.

(267) IRM 3.11.6.14.4.3, Taxpayer with Qualifying Child(ren) on Schedule EIC - Revised the subsection to simplify processing and correspondence instructions.

(268) IRM 3.11.6.14.4.4, Adjusting the Earned Income Tax Credit (EIC) - Line 14 - Revised the subsection to simplify processing and routing instructions.

(269) IRM 3.11.6.14.5.1, Schedule 8812, Additional Child Tax Credit (ACTC) - Deleted duplicate instruction found elsewhere in the IRM, and updated routing instructions for consistency.

(270) IRM 3.11.6.14.5.1.1, Schedule 8812, Refundable Child Tax Credit (Tax Year 2021) - Added screening instruction for consistency.

(271) IRM 3.11.6.14.5.2, American Opportunity Tax Credit (AOTC) Refundable Portion - Updated table for the new filing season and simplified processing instructions..

(272) IRM 3.11.6.14.5.5, Premium Tax Credit (PTC), Form 8962 - The routing criteria has been updated to be consistent with Mef segmentation.

(273) IRM 3.11.6.14.5.7, Recovery Rebate Credit (RRC) - Tax Years 2020 and 2021 Only - Updated research reference instructions.

(274) IRM 3.11.6.14.5.8, Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals - Tax Years 2020 and 2021 Only - Revised the entire subsection to ensure consistency when processing and corresponding. IPU 23U0277 issued 02-17-2023.

(275) IRM 3.11.6.14.5.8, Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals - Tax Years 2020 and 2021 Only - Added instruction to look for additional routing criteria. IPU 23U0611 issued 05-09-2023.

(276) IRM 3.11.6.14.6.8(3), Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals - Paragraph 3 has been updated to reflect an out-of-scope processing instruction for SP 1040-X. IPU 23U0956 issued 09-13-2023.

(277) IRM 3.11.6.14.5.8.1, Credit for Qualified Sick and Family Leave Wages - Tax Year 2022 - New subsection to address the credit for TY 2022. IPU 23U0277 issued 02-17-2023.

(278) IRM 3.11.6.14.5.8.1, Credit for Qualified Sick and Family Leave Wages - Tax Year 2022 - Added instruction to look for additional routing criteria. IPU 23U0611 issued 05-09-2023.

(279) IRM 3.11.6.14.6(2), Overpayment Amount on This Amended Return (Line 21) - Removed IRN 872 instructions due to programming delay. IPU 23U0042 issued 01-05-2023.

(280) IRM 3.11.6.14.6.1, Direct Deposit - Revised correspondence instructions to reduce possible delays when C-letters are updated.

(281) IRM 3.11.6.14.6.1, Direct Deposit - Removed IRN 872 instructions and revised the entire subsection due to programming delay. IPU 23U0042 issued 01-05-2023.

(282) IRM 3.11.6.14.6.1, Direct Deposit - The entire subsection was revised to add direct deposit processing instructions. IPU 23U0242 issued 02-06-2023.

(283) IRM 3.11.6.14.6.1(2) and (4), Direct Deposit - Paragraph 2 has been revised to update the routing instruction. Paragraph 4 has been revised to remove paper processing instructions. IPU 23U0277 issued 02-17-2023.

(284) IRM 3.11.6.14.6.1(2) and (4), Direct Deposit - Removed the IAT tool information now that the IAT tools have been updated. IPU 23U0386 issued 03-13-2023.

(285) IRM 3.11.6.14.6.2, Credit Elect (Line 23) - Deleted paper processing instructions since all SP 1040-X cases are worked through CII. The correspondence instructions have also been revised to reduce possible delays when C-letters are updated.

(286) IRM 3.11.6.14.6.2.1, Credit Elect Availability Dates - Updated example for the new filing season.

(287) IRM 3.11.6.15.1(2), Integrated Data Retrieval System (IDRS) Freeze Codes - Added new freeze code to the table for FRP cases. IPU 23U0277 issued 02-17-2023.

(288) IRM 3.11.6.15.1(2), Integrated Data Retrieval System (IDRS) Freeze Codes - Updated E- freeze instructions and included link to processing instructions. IPU 23U0611 issued 05-09-2023.

(289) IRM 3.11.6.15.2, Integrated Data Retrieval System (IDRS) Transaction Codes - Updated research instructions to ensure consistent screening.

(290) IRM 3.11.6.15.2(2), Integrated Data Retrieval System (IDRS) Transaction Codes - Added new TC to the table for FRP cases. IPU 23U0277 issued 02-17-2023.

(291) IRM 3.11.6.15.3(3), Transaction Codes (TC), Item Reference Numbers (IRN), and Credit Reference Numbers (CRN)- Removed IRN 872 instructions due to programming delay. IPU 23U0042 issued 01-05-2023.

(292) IRM 3.11.6.15.3(3), Transaction Codes (TC), Item Reference Numbers (IRN), and Credit Reference Numbers (CRN) - Direct deposit instructions have been added. IPU 23U0242 issued 02-06-2023.

(293) IRM 3.11.6.15.4, Source Codes (SC) - Removed information not necessary for processing a case.

(294) IRM 3.11.6.15.5, Reason Codes (RC) - Revised reason codes usage to ensure consistency.

(295) IRM 3.11.6.15.5(3), Reason Codes (RC) - Added reason code for 2014-7 income exclusion so ensure consistency with AM. IPU 22U1142 issued 12-01-2022.

(296) IRM 3.11.6.15.6, Blocking Series (BS) - Revised blocking series usage to ensure consistency.

(297) IRM 3.11.6.15.9, Priority Codes (PC) - Removed instruction to not change the priority code used by the IAT tool to reflect the way the xMend to currently works.

(298) IRM 3.11.6.15.10, Category Codes - Revised the subsection to consolidate instructions.

(299) IRM 3.11.6.15.10(2), (3), and (4), Category Codes - Paragraph 2 was updated to remove paper processing instructions and add DUT instructions. Paragraphs 3 and 4 was revised to remove paper processing instructions. IPU 23U0277 issued 02-17-2023.

(300) IRM 3.11.6.15.11, Correspondence Imaging Inventory Indicator (CII IND), Source Document Attached Indicator (SD), and Remarks - Updated the title (formerly Correspondence Imaging System Indicator (CIS IND), Source Document Attached Indicator (SD), and Remarks) and the CII indicator to reflect the current field name.

(301) IRM 3.11.6.15.11(1), Correspondence Imaging System Indicator (CIS IND), Source Document Attached Indicator (SD), and Remarks - Updated the subsection title. Paragraph 1 was updated to clarify what to input in the CIS-IND field on CC REQ54. IPU 23U0060 issued 01-09-2023.

(302) IRM 3.11.6.15.11, Correspondence Imaging Inventory Indicator (CII IND), Source Document Attached Indicator (SD), and Remarks - Renamed the subsection (formerly correspondence Imaging System Indicator (CIS IND), Source Document Attached Indicator (SD), and Remarks) and revised the subsection. IPU 23U0277 issued 02-17-2023.

(303) IRM 3.11.6.16(1), (5),and (8), Form W-7 and ITIN Research - This subsection has been deleted and the instructions have been incorporated into IRM 3.11.6.16.14, Returns With an Individual Taxpayer Identification Number (ITIN) and IRM 3.11.6.16.14.1, Returns Received From the ITIN Unit (Form W-7).

(304) IRM 3.11.6.16(1), (5), and (8), Form W-7 and ITIN Research - Updated to remove the Austin Only designation, remove paper processing instructions and to added CII instructions. IPU 23U0277 issued 02-17-2023.

(305) IRM 3.11.6.16(5) Form W-7 and ITIN Research - The processing references have been updated to ensure consistency. IPU 23U0945 issued 09-11-2023.

(306) IRM 3.11.6.16, Cases Requiring Special Handling - New subsection to identify cases that require extra research or adjustment steps to be taken.

(307) IRM 3.11.6.16.1, Processing Statute Cases - The subsection has been revised to simplify processing instructions.

(308) IRM 3.11.6.16.1, Processing Statute Cases - This subsection has been revised to prevent cases from being routed incorrectly. IPU 23U0277 issued 02-17-2023.

(309) IRM 3.11.6.16.1(1) and (3), Processing Statute Cases - Paragraph 1 has been updated to correct a reference. SERP Feedback# 9208. Paragraph 6 has been updated to correct a reference. IPU 23U0386 issued 03-13-2023.

(310) IRM 3.11.6.16.1(4), Processing Statute Cases - Updated correspondence paragraphs due to letter update. IPU 23U0712 issued 06-08-2023.

(311) IRM 3.11.6.16.2, Processing a Disaster Claim - The subsection has been revised to simplify processing instructions.

(312) IRM 3.11.6.16.3, Cases Returned From CAT-A Suspense - The subsection has been revised to ensure consistency.

(313) IRM 3.11.6.16.3(1), SP Cases Returned From CAT-A - Renamed the subsection (formerly SP MeF and SP CII Cases Returned From CAT-A) and No Consideration instructions were added. IPU 23U0277 issued 02-17-2023.

(314) IRM 3.11.6.16.4, Combat Zone - The subsection has been revised to simplify processing instructions.

(315) IRM 3.11.6.16.5, Inputting a Corrected Adjustment - The subsection has been revised to simplify processing instructions.

(316) IRM 3.11.6.16.5(1), Inputting a Corrected Adjustment - Added new Letter 76C instructions. IPU 23U0106 issued 01-17-2023.

(317) IRM 3.11.6.16.5, Inputting a Corrected Adjustment - The subsection was updated to remove paper processing instructions. IPU 23U0277 issued 02-17-2023.

(318) IRM 3.11.6.16.6, Math Error Response Cases - The subsection has been renamed (formerly Math Error Response) and revised to break-up instructions into several subsections simplify processing instructions.

(319) IRM 3.11.6.16.6(4), Math Error Response Cases - Corrected a bad reference. IPU 23U0106 issued 01-17-2023.

(320) IRM 3.11.6.16.6(5), Math Error Response Cases - Removed paper processing instructions. IPU 23U0277 issued 02-17-2023.

(321) IRM 3.11.6.16.6.1, The Amended Return Agrees with, or Doesn’t Address, the Math Error(s) - New subsection specifically address cases when the taxpayer agrees with or doesn’t address a math error.

(322) IRM 3.11.6.16.6.2, Processing a Timely Substantiated Protest to a Math Error Set on the Original Return - New subsection specifically address cases when the taxpayer submits a timely substantiated response.

(323) IRM 3.11.6.16.6.3, Processing a Late Substantiated Protest to a Math Error Set on the Original Return - New subsection specifically address cases when the taxpayer submits a late substantiated response.

(324) IRM 3.11.6.16.6.4, Processing a Timely Substantiated Protest to a Math Error Set on an Amended Return - New subsection specifically address cases when the taxpayer submits a timely substantiated response.

(325) IRM 3.11.6.16.6.5, Processing a Late Substantiated Protest to a Math Error Set on an Amended Return - New subsection specifically address cases when the taxpayer submits a late substantiated response.

(326) IRM 3.11.6.16.7, Inputting a Disallowance Adjustment - The subsection has been revised to simplify processing instructions.

(327) IRM 3.11.6.16.8, Estimated Tax Penalty (ETP) - The title has been updated and the subsection revised to specify ETP changes can be processed on superseding returns. IPU 23U0973 issued 09-22-2023.

(328) IRM 3.11.6.16.10, Decedent Returns - Revised correspondence instructions to ensure letters appropriately addressed.

(329) IRM 3.11.6.16.11(1), Form 8857, Request for Innocent Spouse Relief - Removed paper processing instructions. IPU 23U0277 issued 02-17-2023.

(330) IRM 3.11.6.16.12, Form 8379, Injured Spouse Allocation - Deleted paper processing instructions since all SP 1040-X cases are worked through CII.

(331) IRM 3.11.6.16.14, Returns With an Individual Taxpayer Identification Number (ITIN) - New subsection to address cases with an ITIN present.

(332) IRM 3.11.6.16.14.1, Returns Received From the ITIN Unit (Form W-7) - Revised the subsection (formerly titled Form W-7 and ITIN Research) to simplify research and processing instructions.

(333) IRM 3.11.6.16.14.1(8), Returns Received From the ITIN Unit (Form W-7), Revised the correspondence fill-in to account for the IAT Letters tool open paragraph limitation. IPU 23U0658 issued 05-25-2023.

(334) IRM 3.11.6.16.14.2, Individual Taxpayer Identification Number (ITIN) Status - Revised the subsection to simplify research and processing instructions.

(335) IRM 3.11.6.16.14.2(6), Individual Taxpayer Identification Number (ITIN) Status - Removed paper processing instructions. IPU 23U0611 issued 05-09-2023.

(336) IRM 3.11.6.16.15, Computer Paragraph (CP) Notices - The subsection has been revised to ensure consistent processing.

(337) IRM 3.11.6.16.15, Computer Paragraph (CP) Notices - The subsection has been moved (Formerly 3.11.6.2.2). In addition to moving the subsection, it has been entirely revised to consolidate procedures. IPU 23U0106 issued 01-17-2023.

(338) IRM 3.11.6.16.15, Computer Paragraph (CP) Notices - The entire subsection has been revised to add Document Upload Tool (DUT) information. IPU 23U0277 issued 02-17-2023.

(339) IRM 3.11.6.16.15(1), Computer Paragraph (CP) Notices - Updated to reflect the how responses are to be filed by tax year. IPU 23U0386 issued 03-13-2023.

(340) IRM 3.11.6.16.15(1), (6), (10), and (14), Computer Paragraph (CP) Notices - Revised the classified waste instructions because a new subsection specifically for classified waste has been added. IPU 23U0984 issued 10-02-2023.

(341) IRM 3.11.6.16.15.1, CP 08, You May Qualify for Child Tax Credit (CTC), and Form 15110, Additional Child Tax Credit Worksheet - The subsection has been revised to ensure consistent processing of responses.

(342) IRM 3.11.6.16.15.1, CP 08, Additional Child Tax Credit, and Form 15110 - The subsection has been moved (Formerly 3.11.6.13.6.1.2). In addition to moving the subsection, it has been entirely revised to consolidate procedures. IPU 23U0106 issued 01-17-2023.

(343) IRM 3.11.6.16.15.1(4), CP 08, Additional Child Tax Credit, and Form 15110 - Updated signature instructions. IPU 23U0277 issued 02-17-2023.

(344) IRM 3.11.6.16.15.1(4), CP 08, Additional Child Tax Credit, and Form 15110 - The correspondence instructions were updated because of the Letter 76C update. IPU 23U0611 issued 05-09-2023.

(345) IRM 3.11.6.16.15.2, CP 09, Earned Income Credit - You May Be Entitled to EIC, and Form 15111, Earned Income Credit Worksheet - The subsection has been revised to ensure consistent processing of responses.

(346) IRM 3.11.6.16.2, CP 09, Earned Income Credit, and Form 15111 - The subsection has been moved (Formerly 3.11.6.13.5.5). In addition to moving the subsection, it has been entirely revised to consolidate procedures. IPU 23U0106 issued 01-17-2023.

(347) IRM 3.11.6.16.15.2(5) and (8), CP 09, Earned Income Credit, and Form 15111 - Paragraph 5 has been revised to added new signature instructions. Paragraph 8 reason codes have been updated to ensure consistency. SERP Feedback# 8172. IPU 23U0277 issued 02-17-2023.

(348) IRM 3.11.6.16.15.2(8), CP 09, Earned Income Credit - You May Be Entitled to EIC, and Form 15111, Earned Income Credit Worksheet (CP 09) - Updated to address instances when only the taxpayer(s) qualify for EIC. IPU 23U0386 issued 03-13-2023.

(349) IRM 3.11.6.16.15.2(2) and (8), CP 09, Earned Income Credit - You May Be Entitled to EIC, and Form 15111, Earned Income Credit Worksheet (CP 09) - Paragraph 2 was updated to remove paper processing instructions now that all SP 1040-X workflows are scanned into CII. Paragraph 8 correspondence instructions were updated because of the Letter 76C update. IPU 23U0611 issued 05-09-2023.

(350) IRM 3.11.6.16.15.3, CP 27, EIC Potential for Taxpayer Without Qualifying Children, and Form 15112, Earned Income Credit Worksheet (CP 27) - The subsection has been revised to ensure consistent processing of responses.

(351) IRM 3.11.6.16.15.3(5), CP 27, EIC Potential for Taxpayer Without Qualifying Children, and Form 15112 - Revised the correspondence fill-in to prevent erroneous correspondence. IPU 22U1142 issued 12-01-2022.

(352) IRM 3.11.6.16.15.3, CP 27, Additional Child Tax Credit, and Form 15112 - The subsection has been moved (Formerly 3.11.6.13.5.6). In addition to moving the subsection, it has been entirely revised to consolidate procedures. IPU 23U0106 issued 01-17-2023.

(353) IRM 3.11.6.16.15.3(4) and (7), CP 27, Additional Child Tax Credit, and Form 15112 - Paragraph 4 has been revised to added new signature instructions. Paragraph 7 has been reason codes have been updated to ensure consistency. IPU 23U0277 issued 02-17-2023.

(354) IRM 3.11.6.16.15.3(2) and (7), CP 27, Additional Child Tax Credit, and Form 15112 - Paragraph 2 was updated to remove paper processing instructions now that all SP 1040-X workflows are scanned into CII. Paragraph 7 correspondence instructions were updated because of the Letter 76C update. SERP Feedback# 10516. IPU 23U0611 issued 05-09-2023.

(355) IRM 3.11.6.16.16, Processing Loose Form 8606 - Revised the subsection to ensure consistency in research and correspondence procedures.

(356) IRM 3.11.6.16.16(3), Processing Loose Form 8606 - Replaced Alpha File instruction with CII instructions. IPU 23U0277 issued 02-17-2023.

(357) IRM 3.11.6.16.17, Prisoner Returns - Combined instructions to ensure consistent processing. Additionally, the correspondence instructions have been revised to reduce possible delays when C-letters are updated.

(358) IRM 3.11.6.16.17(3), Prisoner Returns - Adding the new MISC field descriptors used with the TC 971 AC 123. IPU 22U1142 issued 12-01-2022.

(359) IRM 3.11.6.16.17(6), Prisoner Returns - Reformatted correspondence processing instructions. IPU 23U0277 issued 02-17-2023.

(360) IRM 3.11.6.16.17(6), Prisoner Returns - Updated correspondence paragraphs due to letter update. IPU 23U0712 issued 06-08-2023.

(361) IRM 3.11.6.16.18, Exam Soft Notices - CP 85A, CP 85B, CP 85C, CP 87A, CP 87B, CP 87C, and CP 87D - New subsection to address various Exam soft notices.

(362) IRM 3.11.6.16.19, Taxpayer Advocate Service (TAS) Cases - Deleted paper processing instructions since all SP 1040-X cases are worked through CII.

(363) IRM 3.11.6.16.20(4) and (6), Taxpayer Advocate Service (TAS) Cases - Paragraph 4 has been updated to remove paper processing instructions. Paragraph 6 has been to reflect CII processing and to add SP 1040-X Memphis instructions. IPU 23U0277 issued 02-17-2023.

(364) IRM 3.11.6.16.21, Loose Correspondence and Documents - The correspondence instructions have been revised to reduce possible delays when C-letters are updated.

(365) IRM 3.11.6.18, Classified Waste - Added a new subsection to include classified waste procedures. IPU 23U0984 issued 10-02-2023.

(366) IRM 3.11.6.17.1(6), CII Case Unpostable Resolution - The notation CIS AM TO ADJ was changed due to the system update. IPU 23U0060 issued 01-09-2023.

(367) IRM 3.11.6.17.2, Paper Case Unpostable Resolution - Deleted subsection to remove paper processing instructions since all SP 1040-X cases are worked through CII.

(368) IRM 3.11.6.18.4, For Lead Tax Examiners - Other Category Code Cases - Deleted subsection because SP 1040-X has switched to auto-distribution through CII.

(369) IRM 3.11.6.18.2(5), For Lead Tax Examiners - Reversing an Erroneous Adjustment - Added direct deposit. IPU 23U0277 issued 02-17-2023.

(370) Editorial changes have been made throughout the IRM to:

  • Reorganize the IRM structure without changing any substantive content or meaning. Sections flow in processing order and follow the Form 1040-X so tax examiners (TEs) can easily find needed information. During the reorganization, some subsections have been renamed.

  • Correct spelling and grammatical errors.

  • Add or correct references citations and links to the forms that are currently in the IRM so tax examiners can access the forms with ease.

  • Update information more subject to frequent changes such as queue numbers, tax years, and line-items on forms for the new tax filing season.

  • Update organizational terms, titles, and acronyms that are relevant for the 1040-X TEs.

  • Convert graphics to text and converting text to tables so that TEs will better understand our processes.

  • Improve the quality of an existing graphic or adding alternative text.

Effect on Other Documents

IRM 3.11.6, dated October 19, 2022 (effective January 3, 2023), is superseded. This IRM incorporates IRM Procedural Update (IPU): 22U1142 issued December 12, 2022, 23S0003 issued January 3, 2023, 23U0042 issued January 5, 2023, 23U0060 issued January 9, 2023, 23U0106 issued January 17, 2023, 23U0242, issued February 6, 2023, 23U0277 issued February 17, 2023, 23U0386 issued March 13, 2023, 23U0611 issued May 9, 2023, 23U0658 issued May 25, 2023, 23U0700 issued June 5, 2023, 23U0712 issued June 8, 2023, 23U0763 issued June 22, 2023, 23U0844 issued July 24, 2023, 23U0883 issued August 10, 2023, 23U0894 issued August 16, 2023, 23U0945 Issued September 11, 2023, 23U0956 Issued September 13, 2023, 23U0973 Issued September 22, 2023, and 23U0984 Issued October 2, 2023.

Audience

Wage and Investment Submission Processing Tax Examiners

Effective Date

(01-02-2024)


James L. Fish
Director, Submission Processing
Wage and Investment

Program Scope and Objectives

(1) Purpose: This IRM covers Form 1040-X, Amended U.S. Individual Income Tax Return, Computer Paragraph (CP) CP 08, You May Qualify for a Refund From the Additional Child Tax Credit, CP 09, You May Be Eligible for the Earned Income Credit (EIC), and CP 27, You May be Eligible for the Earned Income Credit (EIC) - Complete EIC Worksheet, processing procedures for Integrated Data Retrieval System (IDRS).

(2) Audience: These procedures apply to SP 1040-X employees such as Supervisory Tax Examining Technicians, Lead Tax Examining Technicians, and Tax Examining Technicians, who are responsible for processing amended tax returns and related correspondence.

(3) Policy Owner: Director, Submission Processing

(4) Program Owner: Submission Processing, Post Processing Section, Specialty Programs Branch

(5) Primary Stakeholders: SP 1040-X employees, Accounts Management (AM), Small Business/Self-Employed (SBSE), Large Business and International (LB&I), Return Integrity Compliance Systems (RICS), Chief Financial Officer (CFO), Taxpayer Advocate Service (TAS), Chief Counsel, Information Technology programmers, Compliance, Submission Processing (SP)

(6) Program Goals: This IRM provides the fundamental knowledge and procedural guidance for employees who work Form 1040-X. By following the processes and procedures provided in this IRM, employees will adjust tax accounts using documents provided by the taxpayer in a manner that follows IRS policy and procedures while promoting the best interests of the Government.

Background

(1) Employees in the Submission Processing (SP) 1040-X organization:

  • Perform a preliminary review of Form 1040-X.

  • Screen, sort, route, and prioritize the forms for processing.

  • Process Form 1040-X using AMS, CII, EUP, RRD, IDRS, and IAT tools.

  • Input specific Individual Master File (IMF) Adjustments.

  • Correspond for missing required forms and signatures.

  • Aid in determining fraud and frivolous positions.

  • Input adjustments from CP Notices.

Authority

(1) Authority for these procedures is found in the following sections of the Internal Revenue Code (IRC) and their corresponding Treasury regulations.

  • IRC 6201(a)

  • IRC 6213(b)

  • IRC 6402(a)

  • IRC 6511

  • Protecting Americans from Tax Hikes Act (PATH Act) enacted December 18, 2015

  • The Disaster Tax Relief and Airport and Airway Extension Act of 2017, enacted on September 29, 2017

  • The Tax Cuts and Job Act (TCJA) enacted on December 22, 2017

  • The Bipartisan Budget Act of 2018 enacted February 9, 2018

  • The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) of 2020, enacted March 27, 2020

  • The Consolidated Appropriations Act, 2021, enacted December 27,2020

  • American Rescue Plan Act of 2021, enacted March 11, 2021

Roles and Responsibilities

(1) The Director of Submission Processing is responsible for monitoring operational performance for the Submission Processing campuses.

(2) The Operations Manager is responsible for monitoring operational performance.

(3) The Team Managers and Leads are responsible for performance monitoring and ensuring employees have the tools to perform their duties.

(4) Employees are responsible for following the instructions contained in this IRM and maintaining updated IRM procedures.

Program Management and Review

(1) Program Reports: ERS Draft language - System control reports are on the Control-D, WebAccess (CTDWA).

(2) Program Effectiveness: Program effectiveness is determined by Submission Processing’s employees successfully using IRM guidance to perform necessary account actions and duties. The following are used to ensure program effectiveness:

  • Embedded Quality Submission Processing (EQSP)

  • Balanced Measures

  • Managerial reviews

(3) Annual Review: Review the processes included in this manual annually to ensure accuracy and promote consistent tax administration. This may be included under responsibilities for a manager.

Program Controls

(1) Federal Managers Financial Integrity Act (FMFIA) of 1982 requires federal agency executives to periodically review and annually report on the agency's internal control systems.

(2) The Government Accountability Office (GAO) sets forth the standards for an effective internal control system for federal agencies in the Standards for Internal Control in the Federal Government.

(3) Systemic controls are embedded in the Integrated Automation Technologies (IAT) tools and the Integrated Data Retrieval System (IDRS).

Acronyms

(1) Acronyms commonly used include the following:

Acronym

Definition

AC

Action Code

AIMS

Audit Information Management System

AM

Accounts Management

AMS

Account Management Services

AQC

Automated Questionable Credit (RIVO)

ASED

Assessment Statute Expiration Date

ATIN

Adoption Taxpayer Identification Number

BS

Blocking Series

CC

Command Code

CII

Correspondence Imaging Inventory

CRN

Credit Reference Number

DDBCK

Dependent Database Check

DUPOL

DUPlicate TIN OnLine

EIP

Economic Impact Payment

EITC

Earned Income Tax Credit

ERO

Electronic Return Originator

EUP

Employee User Portal

HC

Hold Code

HOH

Head of Household

IAT

Integrated Automation Technologies

IDRS

Integrated Data Retrieval System

IMF

Individual Master File

IRN

Item Reference Number

ITIN

Individual Taxpayer Identification Number

FS

Filing Status

MAGI

Modified Adjusted Gross Income (always greater than the AGI)

MFJ

Married Filing Joint

MFS

Married Filing Separate

MFT

Master File Tax

NC

Name Control

NSD

No Source Document

O/S

Original Signature

ODC

Credit for Other Dependents

PIN

Personal Identification Number

POA

Power of Attorney

QND

Qualifying Non-Dependent

QSS

Qualifying Surviving Spouse

RC

Reason Code

RRD

Return Request Display

RSED

Refund Statute Expiration Date

RTS

Real Time System

SC

Source Code

SDI

Source Document Indicator

SP

Submission Processing

SSN

Social Security Number

TC

Transaction Code

TCD

Technical Communication Document

TIN

Taxpayer Identification Number

(2) For a comprehensive listing of any IRS acronyms, please refer to the Acronym Database.

Related Resources

(1) Use the following IRMs when guidance isn't provided within IRM 3.11.6:

  • IRM 2.4, IDRS Terminal Input

  • IRM 3.10.72, Receiving, Extracting, and Sorting

  • IRM 3.10.72-1, Routing Guide/Local Maildex

  • IRM 3.10.72-2, Correspondex C Letters - Routing Guide

  • IRM 3.10.72-3, Computer Paragraph CP Notices - Routing Guide

  • IRM 3.10.72-4, Miscellaneous Documents/Forms/Correspondence - Routing Guide

  • IRM 3.11.3, Individual Income Tax Returns

  • IRM 3.11.249.3.2.1, Document Locator Number (DLN)

  • IRM 3.12.37.25, Correspondence

  • IRM 3.12.179, Individual Master File (IMF), Payer Master File (PMF) Unpostable Resolution

  • IRM 3.13.5, Individual Master File (IMF) Account Number

  • IRM 3.24.3, Individual Income Tax Returns

  • IRM 21.6.1, Filing Status and Exemption/Dependent Adjustments

  • IRM 21.6.2, Adjusting TIN-Related Problems

  • IRM 21.6.3, Credits

  • IRM 21.6.4, Tax Computation / Accounting Period Changes

  • IRM 21.6.6, Specific Claims and Other Issues

  • IRM 21.6.7, Adjusting Individual Tax Accounts

  • IRM 21.5.3-2, Examination Criteria (CAT-A) - General

  • IRM 21.5.3-3, Examination Criteria (CAT-A) - Credits

(2) Websites and electronic tools used to process adjustments include:

  • Accounts Management Services (AMS)

  • Campus Document Routing Guide and Maildex Listings

  • Correspondence Imaging Inventory (CII)

  • Correspondex Letters

  • Employee Use Portal (EUP)

  • IMF 1040X Research Portal

  • Integrated Automation Technologies (IAT)

  • Integrated Data Retrieval System (IDRS)

  • Interactive Tax Law Assistant (ITLA)

  • IPUs and Prior IRM Revisions

  • IRC 30D New Qualified Plug-In Electric Drive Motor Vehicle Credit

  • IRS Certified Professional Employer Organizations Public Listings

  • IRS Disaster Assistance Program

  • IRS Tax Publications

  • Modernized e-File Return Request Display (RRD)

  • Servicewide Electronic Research Program (SERP)

  • SERP Feedback

  • Servicewide Notice Information Program (SNIP)

  • USPS.com

Note: References to tools and websites used aren’t exhaustive or complete. See the training materials and job aids for more Information.

(3) Additional CII information, including the CII Performance Guide (Course Number 6902c-203 CSR Guide), can be found under the Local/Sites/Other tab on SERP, followed by the Correspondence Imaging Inventory (CII) tab. The CSR Guide provides additional explanations, information, and instructions.

(4) RRD is accessed through EUP. The RRD application displays specific tax return and status information for tax returns/extensions processed by the MeF application. This application allows IRS employees to view 100% of the data transmitted on MeF tax returns/extensions (including attachments) in a format that resembles paper forms.

(5) Use Document 6209, IRS Processing Codes and Information, 1040 attachment guide, Tax Form and Instructions (accessible through the IRS Home Page), and Pub 17, Your Federal Income Tax (For Individuals), when processing amended returns. These are valuable resources for obtaining additional information, resolving questions and completing math verification.

(6) This IRM doesn't cover all scenarios. See your lead or manager when clarification is needed.

General Form 1040-X Information

(1) Taxpayers can add, delete, update, or change tax information reported on their original tax return, including amounts adjusted by the IRS, by filing an amended return. Generally, taxpayers need to complete and submit, electronically or by mail, a Form 1040-X, Amended U.S. Individual Income Tax Return, to amend their original return, but they do have the option to use Form 1040, U.S. Individual Income Tax Return, Form 1040-SR, U.S. Tax Return for Seniors, or Form 1040-NR, U.S. Nonresident Alien Income Tax Return. Regardless of the filing method used, Submission Processing (SP) 1040-X tax examiners use the Correspondence Imaging Inventory (CII) system when processing amended returns.

Note: Amended returns received electronically are automatically transferred to the CII system and those received by mail are scanned into the CII system.

(2) Page 1 of Form 1040-X contains three columns to help taxpayers calculate changes:

  1. Column A, Original amount, shows amounts originally claimed by the taxpayer, amounts adjusted by the IRS (math error on original return) or amounts adjusted from a previously filed Form 1040-X for the same tax period.

  2. Column B, Net change, shows the amount of change (increase or decrease) for each line the taxpayer is changing. Taxpayers are instructed to show decreases in parenthesis, explain each change in the Explanation of Changes on page 2 of Form 1040-X or attached statement and attach any schedule and/or form related to the change.

  3. Column C, Correct Amount, shows the amended figures.

(3) All references to line numbers are for the current revision of the form or schedule unless otherwise specified.

(4) The operational instructions in this IRM determine if the adjustment request can be made in Submission Processing or if it must be sent to another area or function.

(5) General SERP Alerts issued for IRM 3.11.6 are additions to the IRM and are followed as part of IRM 3.11.6.

(6) The operational guidance in this IRM takes precedence over any conflicting IRM. The specific section instructions take precedence over any general instruction.

Note: This IRM does link to specific subsections in other IRMs. When following links to other subsections, typically, the instructions are within that subsection. Occasionally, there are instances in which you must follow a link within the subsection.

Example: When researching Child Tax Credit to determine eligibility, you refer to IRM 21.6.3.4.1.24.1, Child Tax Credit (CTC) - Qualifications. If the eligibility criteria are met, you continue processing the claim per IRM 3.11.6. If eligibility isn't met and you're instructed to disallow, you refer to IRM 3.11.6.14.2.2.6, Child Tax Credit (CTC), and IRM 3.11.6.10.5, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP), for instructions on disallowing the claim.

(7) Not all scenarios are covered by this IRM. Follow IRM 3.11.6.1.7, Related Resources, when this occurs. If clarification is needed, contact your lead for assistance. Leads follow IRM 3.11.6.18.1, For Lead Tax Examiners - Related IRMs and Resources.

(8) Edit your Tax Examiner (TE) number in the top left margin of amended returns when documents are being detached, printing a paper copy, rerouting, or sending an e-fax or secure message.

(9) When processing an amended return, the CII Case ID is required in the remarks section of all IDRS transactions, such as REQ54, ENREQ, REQ77, and credit transfers.

(10) The general sequence is to determine if:

  1. Routing criteria is met

  2. The claim is complete

  3. The claim is allowable

  4. The claim is processable

(11) When processing amended returns and CP Notices, use IDRS, AMS, CII, EUP, and RRD.

(12) Use of IAT tools is required. IRM instructions take precedence over any instructions, directions or default inputs the IAT tools provide. If specific IRM instructions are not present, accept the IAT Tool results.

Note: Prior to using the IAT tools, you must complete setup and complete your IAT profile.

(13) Researching previous tax years may assist in processing a return. Tax examiners must have a valid business reason to access related accounts.

Processing Time Frames and Suspense Time Frames

(1) Form 1040-X, Amended U.S. Individual Income Tax Return, Computer Paragraph (CP) CP 08, You May Qualify for a Refund From the Additional Child Tax Credit, CP 09, You May Be Eligible for the Earned Income Credit (EIC), and CP 27, You May be Eligible for the Earned Income Credit (EIC) - Complete EIC Worksheet, notices must be processed in first in/first out (FIFO) order by oldest IRS Received Date regardless of the filing method in accordance with the timeframes described in this section. For additional information on processing timeframes, see IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates.

(2) Cases that have been received through the mail that have the same received date are batched together. Cases received from areas within the IRS are identified as Inter office (I/O); Such as, Work I/O, Statute I/O, and W-7 I/O. When creating an I/O batch, use the current date as the Julian Date in BBTS.

(3) Form 1040-X, CP notices, and I/O work all have the same processing timeframe.

Work type...

Then ...

Form 1040-X

Process the Form 1040-X within 30 calendar days from the IRS received date (day one) to the date the CII Case is reassigned or rerouted to another area (ending day), the CII case is closed (ending day), or the input of a TC 29X.

CP 08, CP 09, or CP 27

Process the CP case within 30 calendar days from the IRS received date (day one) to the date the CII Case is reassigned or rerouted to another area (ending day), the CII case is closed (ending day), or the input of a TC 29X.

I/O

Process the I/O case within 30 calendar days from the IRS received date (day one) to the date the CII Case is reassigned or rerouted to another area (ending day), the CII case is closed (ending day), or the input of a TC 29X.

Form 4442, Inquiry Referral, or E-4442

Process the referral within 30 calendar days.

(4) Amended return suspense time frames are as follows:

Note: C-Letter correspondence suspense time frames are applicable to the SP-Letter version.

Reason for Suspense ...

Time Frame ...

No TC 150

  • 60 days from the received date

  • ERS Status is "100", suspend for 5 working days

  • If the tax data is present and/or is pending, 60 days from the received date

TC 150 posting date shows 00000000 or is blank

  • For TY 2024 and prior, suspend the amended return until Posting Cycle 22

  • If the amended return is received during Posting Cycle 21 or later and the posting date shows 00000000 or is blank, then suspend the case for 14 days

Unpostable TC 150

45 days from today.

Corrected Unpostable TC 150

10 days from today.

Pending TC 150

10 days from today.

RETREG

21 days from today.

Letter 324C per IRM 3.11.6.10.3, Corresponding on Net Balance Due Returns (Letter 324C).

45 days from the date the letter sent on IDRS.

Letter 324C or Letter 916C per IRM 3.11.6.16.1, Processing Statute Cases.

45 days from the date the letter sent on IDRS.

Credit transfer during "Dead Cycles"

Suspend until after the "Dead Cycles"

Undelivered correspondence per IRM 3.11.6.10.13, Undelivered Correspondence

If the case is in suspense, 45 days from the date of your newly issued letter.

Unemployment Compensation Exclusion (UCE) per IRM 3.11.6.14.1.1.3, Unemployment Compensation Exclusion (UCE) - Tax Year 2020 Only (Line 1)

Suspend for 10 working days.

1040-X Suspense Activity Codes

(1) When suspending a case, use the appropriate suspense reason from the "Suspense" drop-down listed below.

If ...

And ...

Then use ...

No TC 150

  1. The case is in ERS Status 100.

  2. If tax data is present and/or is pending (must be present on primary taxpayer for FS 3), per IRM 3.11.6.5.1, Transaction Code (TC) 150 Research (No TC 150)

  1. "No TC 150 ERS Status 100".

  2. "No TC150".

TC 150 posting date shows 00000000 or is blank

 

"No TC 150 Posting Date".

Note: If the return is received in Cycle 21 or later, use "No TC 150 Posting Date Received in Cycle 21 or Later"

Unpostable TC 150

 

"Unnn TC 150".

Corrected Unpostable TC 150

 

"CU TC 150".

Pending TC 150

 

"PN TC 150".

Statute return on retention

 

"RETREG".

Letter 324C

 

"324C-SNT".

Letter 916C or Letter 916SP

 

"916C-SNT".

Credit transfer during "Dead Cycles"

 

"Dead Cycle".

Note: If a suspense reason listed above not available in the drop-down menu, use "MONITOR" as the reason for suspense.

Internal Revenue Manual (IRM) Deviations

(1) Service Center Directors, Headquarter Branch Chiefs, and Headquarter Analysts don't have the authority to approve deviations from IRM procedures. Any request for an exception or deviation to an IRM procedure must be elevated through appropriate channels for executive approval. This ensures other functional areas are not adversely affected by the change, and it doesn't result in disparate treatment of taxpayers.

(2) See specific guidelines in IRM 1.11.2, Internal Revenue Manual (IRM) Process. Request for an IRM deviation must be submitted in writing and signed by the field director, following instructions from IRM 1.11.2.2.4(3). Any disclosure issues must be coordinated by the program owner. No deviations can begin until reviewed by the program owner and approved at the executive level. All requests must be submitted to the Submission Processing Headquarters IRM Coordinator.

IRS Employees and Covered Relationships

(1) IRS employees can be identified from the IRS-EMP-CD on CC TXMOD and on CC IMFOLT. There are special procedures that you must follow to protect the taxpayer employee, as well as to protect yourself.

(2) If you access an account of an IRS employee that you don't know, work the case and see (4) below.

(3) If you access an account of an IRS employee that you do know, or if you access an account of someone that falls under a covered relationship such as family members, friends, or neighbors, refer the case to your lead or manager and see (4) below.

(4) Completing Form 11377-E, Taxpayer Data Access, is voluntary but highly recommended. The purpose is to document the reason(s) that the tax return and/or information on IDRS was accessed when the case wasn't assigned directly to you.

Integrated Data Retrieval System (IDRS) Access

(1) While working cases, SP employees may encounter modules that are blocked on IDRS. These modules are identified by an IDRS security violation message, "Unauthorized to Access This Account". Reassign the CII case ID to your manager. Managers must notify the local Planning & Analysis staff who must send the CII case ID as encrypted information to the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ mailbox requesting access to the account. Managers must retain the original case in CII inventory, awaiting access that can take up to five business days. Once notified that access has been granted, the case can be transferred back to the tax examiner to work following applicable procedures.

Document Perfection Operation (DPO) Submission Processing (SP) 1040-X Organization Function Program (OFP) Information

(1) SP 1040-X OFP codes are used for reporting work closed by individual Tax Examiners.

(2) SP 1040-X OFP codes are used in conjunction with the weekly WPC (Work Planning and Control) reporting system.

(3) The following represent the codes used for reporting the work performed:

Work Type ...

OFP...

MeF (MEFP)

  • 710-44490 - 1040-X MeF processing

Paper cases scanned into CII (MEFS)

  • 710-44450 - 1040-X scan processing

  • 710-44452 - W-7 scan processing

DUT CP Notices (MEFS)

  • 710-40411 - CP 27

  • 710-40412 - CP 09

  • 710-40413 - CP 08

Paper CP Notices scanned into CII (MEFS)

  • 710-40000 - CP 27

  • 710-40002 - CP 09

  • 710-40003 - CP 08

(4) For additional information regarding OFP codes, refer to IRM 3.30.20, Work Planning and Control - Organization, Function, and Program (OFP) Codes.

Daily Work Record (DWR)

(1) The daily work record (DWR) is used to report the volume of work processed by work type. Every tax examiner is responsible for completing a DWR and submitting it to their manager or lead.

Systems

(1) The IRS uses a network of tax account and information systems to maintain communication with and service to the taxpaying public. This section gives condensed descriptions and explanations of many of the systems, databases, files and processes used or researched by Customer Account Services (CAS) employees. Although this list isn't all-inclusive, these systems are used to:

  • File tax returns

  • Process tax returns

  • Process information returns

  • Issue notices, refunds, and letters

  • Store and retrieve information

  • Process adjustments to information

  • Provide information for other official purposes

(2) 1040-X personnel need a general understanding of the systems and the ability to research for more specific information when needed, using these and other systems.

  • Master File (MF) – MF is the official repository of all taxpayer data extracted from magnetic tape records, paper and electronic tax returns, payments, and related documents, is maintained at Enterprise Computing Center - Martinsburg (ECC-MTB) and /or Enterprise Computing Center - Memphis (ECC-MEM). For more information about MF, see IRM 21.2.1.2, Master File.

  • Integrated Data Retrieval System (IDRS) – IDRS accesses Master File account information using IDRS Command Codes (CCs) to take control of and take action on cases, request and receive printouts of modules, research accounts, research or extract from MF tapes, and to issue letters to taxpayers. For more information about IDRS, see IRM 21.2.1.3, IDRS.

    Note: There are various Integrated Automation Technologies (IAT) tools available that automate specific IDRS actions. Refer to IRM 3.11.6.2.6.2, Integrated Automation Technologies (IAT) Tools, for more information

  • Account Management Services (AMS) – AMS provides a common user interface that allows users to update taxpayer accounts, view history and comments from other systems and access a variety of case processing tools. For more information about AMS, see IRM 21.2.1.8, Account Management Services (AMS).

  • Correspondence Imaging Inventory (CII) – CII is a document imaging and workflow system. All incoming paper correspondence, notice replies, amended returns, internal transcripts, and internal Computer Paragraph (CP) notices are scanned and processed as digital images. CII interacts with IDRS to control cases and distribute cases electronically to tax examiners for resolution. The digital cases are assigned to tax examiners who work the cases online using the workflow software. CII interacts with IDRS to initiate various command codes and can be used to capture the request completed screens as a part of the digital case. CII inventory is accessed using the AMS system. Users must access AMS first and then select the CII inventory link. For more information about CII, see IRM 21.2.1.9, Correspondence Imaging Inventory (CII).

    Note: There are different roles assigned in CII that allow users to perform certain actions. Refer to IRM 3.11.6.2.6.3, Correspondence Imaging Inventory (CII) Roles, for more information.

  • Name Search Facility (NSF) – The NSF contains the full taxpayer or business names used and the most current Master File addresses. For more information about NSF, see IRM 21.2.1.13, Name Search Facility (NSF).

  • Taxpayer Information File (TIF) – The TIF consists of multiple areas of information. The TIF provides tax account information for certain taxpayers (generally involving only active accounts) on the database. Balance due notices are issued from the TIF. For more information about TIF, see IRM 21.2.1.14, Taxpayer Information File (TIF).

  • Fact-Of-Filing (FOF) – The FOF file contains timely filed IMF/CADE2 refund returns (original only), usually posted within three weeks of processing. For more information about FOF, see IRM 21.2.1.16, Fact-Of-Filing (FOF).

  • Tax Return Data Base (TRDB) – TRDB contains all of the tax return data for electronically filed returns and subsequent corrections. Reject codes are displayed for research. For more information about TRDB, see IRM 21.2.1.21, Tax Return Data Base (TRDB).

  • Modernized e-File (MeF/TRDB) – MeF/TRDB is a web-based system that allows electronic filing of Individual, Corporate, Partnership, Exempt Organizations, Excise, Estate and Trusts, and Employment Tax Returns through the Internet. For more information about MeF/TRDB, see IRM 21.2.1.22, Modernized e-File (MeF/TRDB).

  • Modernized e-File Return Request Display (RRD) – The RRD application displays specific tax return and status information for original and amended tax returns/extensions processed by the MeF application. This application allows IRS employees to view 100% of the data transmitted on MeF tax returns/extensions (including attachments) in a format that resembles paper forms. Access to RRD is through the Employee User Portal (EUP). For more information about the RRD, see IRM 21.2.2.4.4.9, Modernized e-File Return Request Display (RRD).

  • E-File Services (eFS) System – The eFS System offers several methods for filing taxes and transferring funds electronically. eFS uses several multi-functional Electronic Filing Systems (EFS) to receive and process individual and business returns. For more information about the eFS System, see IRM 21.2.1.38, E-File Services (eFS) System.

  • Where’s My Amended Return (WMAR) – The WMAR is an Integrated Customer Communication Environment (ICCE) application, established March 18, 2013, to provide automated access to the processing status of Form 1040-X, US Amended Return. It is available in English and Spanish and allows taxpayers to track the status of their Form 1040-X for the current year and up to three prior years. They must wait three weeks after filing the form before using WMAR. Consistent messages are provided by the phone and web versions of WMAR. For more information about the WMAR, see IRM 21.2.1.59, Where’s My Amended Return (WMAR) .

IDRS Command Codes (CC)

(1) All SP 1040-X tax examiners, quality reviewers and leads use the following IDRS command codes. See the IDRS Command Code Job Aid for detailed information on the command codes. There are various Integrated Automation Technologies (IAT) tools available that automate specific IDRS CC actions.

Command Codes required for all Tax Examiners

Additional Command Codes required for all Lead and Quality Review Tax Examiners

  • ACTON

  • ADD24

  • ADD34

  • ADD48

  • ADJ54

  • AMDIS

  • BMFOL

  • CFINK

  • DDBCK

  • DDBKD

  • DRT24

  • DRT48

  • DUPED

  • DUPOL

  • EICMP

  • ENMOD

  • ENREQ

  • ERINV

  • FFINQ

  • FIEMP$

  • FINDS

  • FRM34

  • FRM77

  • FTBOL

  • IMFOL

  • INCHG

  • INOLE

  • IRPTR

  • LETER

  • LPAGD

  • LPAGE

  • MESSG

  • MFREQ

  • NAMEB

  • NAMEE

  • NAMEI

  • NAMES

  • PGNUM

  • REQ54

  • REQ77

  • RTVUE

  • SFDISP

  • SUMRY

  • TERUP$

  • TPIIP

  • TRDBV

  • TRDPG

  • TXCMP

  • TXMOD

  • UPTIN

  • ESTAB

  • QRACN

  • QRADDG

  • RVIEW

Integrated Automation Technologies (IAT) Tools

(1) The use of Integrated Automation Technologies (IAT) Tools is required by all SP 1040-X employees. IAT tools are desktop productivity enhancing tools and simplify taxpayer account processing by assisting the user with IDRS research and input. If IDRS or a command code (CC) is down or not functioning properly, IAT won’t function correctly. If you're having a problem with an IAT tool, try entering the command code manually using IDRS. If there are no IDRS or CC issues, continue processing the case manually and notify your lead or manager there's a problem with IAT. If an IAT tool isn't available, or an employee has a problem with the IAT Tool Manager, the case should be processed through IDRS following established procedures.

Caution: IRM instructions take precedence over any instructions, directions or default inputs the IAT tools provide. If specific IRM instructions are not present, accept the IAT Tool results.

(2) The IAT tools used are:

  • ACT ON

  • Address

  • Code Search Index (CSI)

  • Credit Transfer

  • eClerical

  • Fill Forms

  • IAT

  • Letters

  • Name Search

  • Quick Command Code (QCC)

  • REQ54

  • REQ77

  • RESULT

  • Stop Refund (NOREF)

  • xMend

    Note: The xMend tool incorporates access to several of the IAT tools.

Correspondence Imaging Inventory (CII) Roles

(1) Each site will designate the employees assigned to one of the following roles.

  • Site User Manager (SUM)

  • Back-up SUM (BSUM)

  • Manager

  • Lead

  • Tax Examiner

  • Clerk

(2) The SUM:

  1. Has the ability to see all CII profiles for the site and can update all profiles for the site.

  2. Can distribute cases to a SUM, BSUM, manager, lead, and tax examiner.

(3) The BSUM:

  1. Has the ability to see all CII profiles for the site and can update all profiles for the site.

  2. Can distribute cases to a SUM, BSUM, manager, lead, and tax examiner.

(4) The manager:

  1. Has the ability to see all CII profiles for their employees and can update their profiles.

  2. Can distribute cases from the CII system to a SUM, BSUM, manager, lead, and tax examiner.

(5) The lead:

  1. Has the ability to see all CII profiles for their employees and can update their profiles.

  2. Can distribute cases from the CII system to a lead, and tax examiner.

  3. Can process cases.

(6) The tax examiner processes cases assigned to them by the:

  1. CII system

  2. SUM

  3. BSUM

  4. Manager

  5. Lead

(7) The clerk:

  1. Can scan and validate documents.

  2. Can do research on CII cases.

Controlling Cases on the Correspondence Imaging Inventory (CII) System

(1) All Submission Processing (SP) 1040-X inventories, received on paper and scanned into the Correspondence Imaging Inventory (CII) system, received through the Modernized e-File (MeF) system, or the Document Upload Tool (DUT) are held in a generic central CII queue. The central queue is commonly referred to as the Global Queue (GQ) and can be identified by the unique Integrated Data Retrieval System (IDRS) number, 0938000000.

(2) Each case in the GQ is controlled systemically on the Integrated Data Retrieval System (IDRS) when the CII case is created. Cases in the GQ are considered unassigned (UA) and pending assignment through auto-distribution. For more information on controlling CII cases or auto-distribution, see IRM 3.13.6.2.7, Preparing Documents for Scanning - General Instructions, IRM 3.13.6-1, APPENDIX A - DOCUMENT TYPES, CATEGORY CODES, IMF DOMESTIC, and IRM 3.11.6.3.1, Auto-Distribution.

(3) If any part of the CII case data is incorrect, follow to IRM 3.11.6.4.8, Updating Case Data, before completing your case action.

(4) If the case has multiple control bases with the same received date, close all bases upon case completion.

(5) If you receive an inquiry from another area concerning controlled cases, the inquiry must be on Form 4442, Inquiry Referral, or E-4442. Refer to IRM 3.11.6.16.9, Form 4442 and E-4442, Inquiry Referrals.

Auto-Distribution

(1) The Correspondence Imaging Inventory (CII) system’s auto-distribution functionality is used in Submission Processing (SP) to distribute cases to a SP 1040-X tax examiner (TE) for processing. Cases are distributed during the evening, Monday through Friday, based on the TE’s CII profile. It’s the responsibility of the TE’s manager to set and adjust the TE’s CII profile settings:

  1. Availability (AVBL)

  2. Max User Inventory limit (MUI)

  3. Volume per Day limit (VpD)

  4. Skill Set

(2) The AVBL setting must be set to "Available" for a TE to receive cases through auto-distribution. Using the "Unavailable" setting prevents the system from auto-distributing cases to the TE, and cases can’t be manually assigned to or reassigned from the TE. This setting should only be used when a TE is detailed to another area or is placed in non-duty status.

Caution: If changing a TE’s Availability to "Unavailable", all cases, if any, in the TE’s inventory must be reassigned manually by the manager to another TE before making the profile change.

(3) The MUI limit is 500 cases. This limit is the total number of cases a TE can have in inventory and cases in suspense count against this limit. If a TE’s inventory reaches the limit, the TE is excluded from distribution until the TE’s inventory falls below the limit. Cases that are created using TE’s number in CII at validation are still distributed to the TE, if active and available, without regard to the limit.

Note: The MUI may be modified when appropriate, but not below the 500-case minimum for SP 1040-X TEs.

Exception: The MUI for TEs that have finished their new hire training class and are on Skill Set "a" and "b" learning curve, the MUI minimum is 200 cases.

(4) The VpD limit is 75 cases. This limit is total number of cases a TE receives daily through the auto-distribution process. Cases that are created using TE’s number in CII at validation are still distributed to the TE, if active and available, without regard to the limit.

Note: The VpD may be modified when appropriate, but not below the 75-case minimum for SP 1040-X TEs.

(5) The Skill Set is used by the CII system to identify the Document Type (Doc Type) to be auto-distributed to a TE. The CII Skill Sets for SP 1040-X are:

  1. SP 1040X

  2. SP 1040X W7

  3. SP 1040X CP 08

  4. SP 1040X CP 09

  5. SP 1040X CP 27

Note: All TEs, once finished with their new hire training class, are required to have their CII profile setup for CII Skill Sets "1" and "2" shown above. Once a TE’s learning curves for skills “1” and “2” have been completed, the CP notice skill sets are to be add to the TE’s CII profile.

(6) In the event a TE depletes their active inventory and TE needs cases before the next auto-distribution, a manager, or lead, is able to manually reassigns cases from the auto-distribution queue directly to the TE. When manually reassigning cases from the auto-distribution queue to a TE:

  1. Verify what Doc Types the TE is profiled to process. Refer to paragraph 5 above.

  2. Determine which cases in the auto-distribution queue contains the oldest cases the TE is eligible to process based on the TE’s profile.

  3. Reassign the oldest cases by Doc Type to the TE.

Note: If manually reassigning cases, the MUI limit may need to be increased.

(7) To temporarily stop distribution of cases to a TE, when on leave for example, set the volume per day to zero. Don’t set TE’s CII Availability to "Unavailable" for brief, temporary absences.

Amended Return Preliminary Review

(1) Occasionally, taxpayers file multiple returns or CP Notices and each require a Document Type (Doc Type) for the Correspondence Imaging Inventory (CII) system. Refer to IRM 3.11.6.4.8 (2), Updating Case Data, for the CII Doc Types used by Submission Processing (SP) 1040-X.

(2) Multiple filings for the same tax year (TY) requiring the same Doc Type, result in a CII case having multiple return images. Multiple filings requiring different Doc Type will have a have multiple CII cases.

If ...

And ...

Then ...

The taxpayer filed an amended return for TY 2023 on paper

The taxpayer submits another amended return for TY 2023 on paper and the CII case for the first return is still open

The second return will be present on the existing CII case.

The taxpayer filed an amended return for TY 2023 on paper

The taxpayer submits another amended return for TY 2023 on paper and the CII case for the first return is closed

The second return creates a new CII case.

The taxpayer filed an amended return for TY 2023 on paper

The taxpayer submits another amended return for TY 2023 electronically and the CII case for the first return is still open

The second return will be present on the existing CII case.

Caution: You need to search RRD for an amended return for the same TY.

Exception: If the paper filed amended return is received from the ITIN, then a new case is created for the second return.

The taxpayer filed an amended return for TY 2023 electronically

The taxpayer submits another amended return for TY 2023 on paper and the CII case for the first return is still open

The second return will be present on the existing CII case.

The taxpayer responds to a CP notice

The taxpayer submits an amended return for the same TY on paper or electronically

Then a new CII case is created for the amended return.

(3) If a CII case has more than one imaged return follow the table.

If ...

And ...

Then ...

The imaged returns are duplicates

 

Process the case using the earliest complete return.

The imaged returns are not duplicates

They are for the same taxpayer, tax year, and routing criteria isn't present

Process each case separately.

Reminder: When inputting multiple adjustments, a posting delay code is required.

Caution: Don't close the CII case until all adjustments have been completed.

The imaged returns are not duplicates

They are for the same taxpayer, tax year, and routing criteria is present

Route the entire CII case following normal procedures.

(4) When multiple CII cases are present, determine if the other case(s) are unassigned. See the generic queue list in IRM 3.11.6.3, Controlling Cases on the Correspondence Imaging Inventory (CII) System.

(5) Determine if the CII case return is a superseding, duplicate, or amended return.

(6) Before an adjustment can be input or sent to another function, check the return for the following elements:

  • Taxpayer Identification Number (TIN)

  • Tax period

  • Received date

  • Control base

  • Presidential Election Campaign Fund (PECF) requests

  • TC 150 posted

(7) When instructed to treat a case as classified waste, see IRM 3.11.6.16.22, Classified Waste.

CII Split Image Request

(1) A split image request is required when two or more unrelated cases have been erroneously scanned as one CII image. There are two types of split requests, simple and complex.

  • A simple split request can be done on cases when two or more cases are in sequential order with all forms and schedules.

  • A complex split request is where two or more cases or images are commingled in one case.

Note: Refer to the 1040-X Job Aid for more information on splitting a CII image.

(2) A simple split request is submitted as follows:

  1. The TE must choose "SPLIT-IMAGE" from the "Suspend" drop-down list to open the "Split Image Details" screen. On the "Split Image Details" screen take the following actions:
    • Click the radio button next to the CIS image icon to start the simple split process.
    • In "Step 1" indicate the last page included with the current case by clicking on the appropriate page number and click the "Add Split" button.

  2. The lead or manager must retrieve the request from their "Approval" inventory and determine if the request is be accepted or denied. If denying the request leave a case message stating the reason for the denial.

    Note: Once the approval or denial process has been completed, the case must be sent back to the TE’s "Active" inventory.

  3. The TE must retrieve the case and review the case for any case messages from the lead or manager. If the request was denied, review the reason for the denial and submit another request if needed. If the request was approved, continue processing the case.

(3) A complex split request is submitted as follows:

  1. The TE must enter a case message stating "Complex split request. Pages (XX -XX) belong with the current case. Pages (XX - XX) belong to New Case (A, B, C, etc.)." Then, the TE notifies the lead or manager that (CII case number) requires a complex split.

  2. The lead or manager must search for the case in the TE’s inventory and review the case message. After reviewing the case message, the lead or manager must use the Split Image tool located in the "CII Administration" menu to verify the split information to determine if the request should be approved or denied.
    • If approved, the tool must be used to split the case. Once the case has been split, the TE must be notified.
    • If denied, leave a case message stating the reason for the denial and inform the TE.

  3. The TE must, upon receiving notification, retrieve the case and review the case for any case messages from the lead or manager. If the request was denied, review the reason for the denial and submit another request if needed. If the request was approved, continue processing the case.

Associating Forms, Schedules, and Other Documents to CII Cases

(1) Occasionally, when working a case, tax examiners will need to send a form, schedule, and other document to associate with the case they’re working. The CII case association process must be completed prior to the case being reassigned, rerouted, or closed.

(2) The tax examiner must prepare theCII Association Header Sheet and input a case note stating what form(s), schedule(s), or other document(s) are being sent for association to the case.

  • TIN - Use the primary TIN

  • Name Control - Use the primary name control

  • MFT - Use "30"

  • Tax Period - Use the tax period of the case

  • Case ID - Use the CII Case ID of the case being worked

  • Employee number- Use your IDRS employee number

(3) Send the case to ICT for association through the exception scanning.

Tax Period

(1) Amended returns must be for a specific tax period. When the tax period is missing and you can't determine the tax period from return information or attachments, research IDRS for matching tax data.

Note: If the tax period is incorrect on a case, update the case data to the correct tax period per IRM 3.11.6.4.8, Updating Case Data.

(2) If the tax period can be determined, edit the tax period on the front of the return above the Entity section in YYMM or YYYYMM format or mark the appropriate box, if available, even when reassigning, rerouting and suspending case to another function.

(3) If you can't determine the tax period through IDRS research, correspond unless return is being sent to another function. Correspond per IRM 3.11.6.11, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins, and use the tax period of the CII case when sending the letter.

(4) If the taxpayer submitted an amended return for multiple tax periods on a single amended return, correspond. See IRM 3.11.6.11, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins.

Taxpayer Identification Number (TIN)

(1) To process a return, the taxpayer must have a Taxpayer Identification Number (TIN). The IRS uses four different types of TINs when processing Individual Master File (IMF) Taxpayer accounts. The following table contains the type of TINs and their format:

Taxpayer Identification Number (TIN) Type

Format

Social Security Number (SSN) - If followed by an asterisk (*) it is a temporary or "invalid" number.

xxx-xx-xxxx

Individual Taxpayer Identification Number (ITIN) - This number is assigned by the Austin campus ITIN Operation as a result of an accepted W-7, Application for IRS Individual Taxpayer Identification Number, or W-7SP application.

9xx-NN-xxxx

Note: The fourth and fifth digits of a valid ITIN range are:
- 50 through 65
- 70 through 88
- 90 through 92
- 94 through 99

Adoption Taxpayer Identification Number (ATIN) - This number is assigned by the Austin campus as a result of an accepted W-7A application.

9xx-93-xxxx
(always "93" for 4th and 5th digits)

Internal Revenue Service Number (IRSN) - This number is assigned by the IRS.

9xx-NN-xxxx

Note: The fourth and fifth digits of an IRSN are the IRS Service Center code. See IRM 3.13.5.23, Internal Revenue Service Number (IRSN) Format.

(2) For ITINs, see IRM 3.11.6.16.14.2, Individual Taxpayer Identification Number (ITIN) Status.

(3) If the Primary TIN (P-TIN) or secondary TIN (S-TIN) is missing, incorrect, or illegible for a taxpayer with the filing status of married filing jointly, research per IRM 3.11.6.12.1, Entity Changes. If found, edit to the appropriate field on the amended return.

Note: When processing a case, update the Case Data to correct P-TIN per IRM 3.11.6.4.8, Updating Case Data.

(4) If you have exhausted all resources and are still unable to determine the P-TIN and/or S-TIN, correspond per IRM 3.11.6.11, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins.

(5) Send to AM, if:

  1. The taxpayer makes changes to the primary or secondary taxpayer's TIN.

  2. The P-TIN or S-TIN is invalid.

  3. The primary or secondary taxpayer is changing from an ITIN or IRSN to an SSN.

  4. The primary or secondary taxpayer’s account is set up on the invalid segment of master file (which requires an asterisk after the TIN (000-00-0000*). A pound sign after the TIN (000-00-0000#) is an indication of a newly assigned TIN. Don't treat as an invalid TIN.

    Exception: If the filing status is MFS (FS 3), the spouse's TIN may show an asterisk after the TIN. This should not be considered an invalid TIN and can be worked as normal.

  5. A filing status change to Married Filing Jointly (MFJ) and both taxpayers have already filed.

  6. The case involves merged (re-sequenced) account and an update to CC DDBCK or CC DUPED is required.

    Note: A merged (resequenced) account will have a transaction code 011, 013, 040 or 041 on CC ENMOD.

  7. Mixed entity cases where more than one taxpayer has attempted to file under the same TIN and:
    • It isn't possible to verify the correct TIN through research, or
    • Research verifies that both individuals have used the TIN in other tax years, or
    • CC INOLES shows that both taxpayers have been listed under this TIN

  8. Scrambled SSN cases where CC INOLES has an entry beside the Scrambled SSN Prompt and Numeric Indicator, except blank, 00, 08, 21, or 22.

  9. For TY 2019 and later, if the taxpayer indicates a religious (e.g., "Amish", "Mennonite", or "Form 4029", Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits) or conscience-based objection to obtaining a taxpayer identification number (TIN).

(6) If the taxpayer is filing MFJ and there's no TC 150 posted for the primary's TIN, research the secondary's TIN for a TC 150. TC 594 may be present. See IRM 3.11.6.5.1, Transaction Code (TC) 150 Research (No TC 150).

Protecting Americans from Tax Hikes (PATH Act)

(1) The Protecting Americans from Tax Hikes Act (PATH Act) was enacted December 18, 2015. The PATH Act prohibits taxpayers from retroactively claiming certain credits for any tax year in which the taxpayer, spouse or qualifying child doesn't have a valid TIN issued on or before the due date, or extended due date, of the return or, if the taxpayer, spouse, or qualifying child has an inactive TIN.

(2) The PATH Act applies to:

  • Child Tax Credit (CTC)

  • Additional Child Tax Credit (ACTC)

  • Credit for Other Dependents (ODC)

  • American Opportunity Credit (AOTC) - both refundable and non-refundable

  • Earned Income Tax Credit (EITC)

  • CP notices 08, 09 and 27

(3) Credit-specific eligibility requirements apply in addition to the PATH Act criteria. A TIN that is valid to claim a particular credit may not be valid to claim a different credit.

(4) The PATH Act prohibits current year refunds of EITC or ACTC before February 15. All amended returns without a C- freeze that add EITC or ACTC must be held until then.

(5) The TIN validations required by the PATH Act isn’t applied to superseding returns that have already passed TIN validations.

Exception: If there’s a TIN present on the superseding return that wasn’t on the original return, the new TIN requires PATH Act validation.

(6) If processing W-7 returns, see IRM 3.11.6.16.14.1, Returns Received From the ITIN Unit (Form W-7).

(7) Don't remove PATH Act credits previously allowed due to a filing status change to married filing jointly (MFJ) unless initiated by the taxpayer. Apply the PATH Act using the following table:

Exception: If EITC is involved, see IRM 3.11.6.14.4, Earned Income Credit (EIC) - Line 14.

If ...

And ...

Then ...

The spouse has a newly assigned ITIN

The XRET is for the current processing year, or the assignment date is more than 90 days after the return due date or due date as extended for a prior year

Disallow the claim. Input the adjustment per IRM 3.11.6.10.5, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP), and follow (8) below.

The spouse has an SSN

The SSN was issued after the return due date

Disallow the claim. Input the adjustment per IRM 3.11.6.10.5, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP), and follow (8) below.

The spouse has an SSN

The SSN was issued on or before the return due date or due date as extended

Process the return.

The spouse has a newly assigned SSN

The SSN was issued after the return due date and EITC is increasing

Disallow the additional EITC. Input the adjustment per IRM 3.11.6.10.5, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP). Don't remove existing EITC.

The spouse has a newly assigned SSN

The SSN was issued after the return due date and EITC is decreasing

Decrease the EITC.

The spouse has a newly assigned SSN

The SSN was issued on or before the return due date

Process the return.

(8) Research is required prior to adding PATH Act credits. To qualify, the correct TIN required for the particular credit(s) claimed must have been assigned on or before the due date, or due date as extended, of the return being processed. Use CC INOLES - TIN ASGNMT to research when the TIN was issued.

If ...

Then ...

The "TIN ASGNMT" field contains a date on or before the due date of the return

Note: ITINs assigned within 7 days of the return due date are considered timely.

Allow the credit if all other criteria are met.

The "TIN ASGNMT" field is all zeros

Allow the credit if all other criteria are met.

The "TIN ASGNMT" field contains a date after the due date of the return

Disallow the claim. Input the adjustment per IRM 3.11.6.10.5, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP) and follow (9) below.

(9) When a PATH Act credit(s) has been disallowed, input a TC 971 AC 113.

  • Use the received date for the transaction date.

  • Enter the total of all PATH Act credit(s) claimed on Form 1040-X that are being disallowed in the "Freeze Release>" field.

TIN requirements for Exemptions and Credits

(1) The tables below provide a quick reference to determine the TIN requirements for exemptions and certain credits. Always research for specific requirements including but not limited to the form, statute, and PATH Act.

Note: For EITC, CTC, ODC, AOTC, and RRC, all TINs must be issued before the due date, or extended due date, of the return.

(2) For Exemptions

Note: The Tax Cuts and Jobs Act of 2017 (TCJA), enacted on Dec. 22, 2017, suspended personal and dependent exemptions for tax years beginning on January 1, 2018, and before Jan. 1, 2026. For tax years 2018-2025, dependents are for credit eligibility.

Type of TIN

Valid SSN

Valid ITIN (active)

Valid ATIN

Primary TIN

Yes

Yes

N/A

Secondary TIN

Yes

Yes

N/A

Dependent TIN

Yes

Yes

Yes

(3) Earned Income Tax Credit

Type of TIN

Allowed with valid SSN

Allowed with valid ITIN (active)

Allowed with valid ATIN

Allowed with FS 3 (MFS) for TYs 2020 and prior

Allowed with FS 3 (MFS) for TYs 2021 and later

Primary TIN

Yes

No

N/A

No

No, unless taxpayer files Schedule EIC

Secondary TIN

Yes

No

N/A

No

No, unless taxpayer files Schedule EIC

EITC qualifying child

Yes

No

No

No

Yes

Note: The SSNs for the primary, secondary (if FS 2), and the EITC qualifying child(ren), must all be valid for EITC to be allowed. An SSN is valid for the EITC unless it was issued after the due date of the return (including extensions), or it was issued solely to apply for or receive a federally funded benefit and does not authorize the individual to work.

(4) Child and Dependent Care Expenses

Type of TIN

Allowed with valid SSN

Allowed with valid ITIN (active)

Allowed with valid ATIN

Allowed with FS 3 (MFS)

Childcare provider on Form 2441

Yes

Yes

N/A

Yes

Child’s TIN on Form 2441

Yes

Yes

Yes

Yes

Note: For the provider TIN requirement, see IRM 3.11.6.14.2.2.1, Form 2441, Credit for Child and Dependent Care Expenses.

(5) Other Credits

Credit

Allowed with valid SSN

Allowed with valid ITIN (active)

Allowed with valid ATIN

Allowed with FS 3 (MFS)

Child Tax Credit / Additional Child Tax Credit (tax years 2018 - 2025)

Yes

  • Primary - Yes

  • Secondary - Yes

  • Dependent - No

  • No

Yes

Lifetime Learning Credit (LLC)

Yes

Yes

Yes

No

American Opportunity Tax Credit (AOTC)

Yes

Yes

Yes

No

Credit for Other Dependents (ODC)

Yes

Yes

Yes

Yes

Recovery Rebate Credit

Yes

No, but the RRC is not disallowed to a taxpayer with an ITIN if the spouse or qualifying dependent on the return has a TIN (SSN or ATIN) that is valid for the RRC. The allowable RRC amount is based on the number of taxpayers and dependents on the return who qualify and have a valid TIN, except that if one spouse is a member of the military and the spouses file jointly, then only one spouse needs to have a valid SSN for the couple to claim RRC for both spouses.

Yes

Note: The ATIN could be issued at any time.

Yes

Received Date

(1) Every return should be stamped with a received date stamp. An Official Received Date Stamp must consist of no less than:

  • The word "Received"

  • Month (alpha or numeric)

  • Day - (for example, can be "1" or "01")

  • Year - four digits

  • "Area Office (AO)", "Lockbox (LB)", Campus, "Field Office", "Taxpayer Assistance (TAC)" plus the location city, or functional area within one of these sites (e.g., Compliance Service Collections Operation (CSCO), Exam, Information and Communication Technology (ICT), Collection Information System (CIS), Accounts Management (AM), etc.)

  • Note: Not all IRS offices are designated places for filing, and not all IRS employees are authorized to accept a tax return for processing. If a return contains a received date stamp from other than a Taxpayer Assistance Center (TAC), Lockbox, or IRS campus (Compliance, Accounts Management (AM), or Submission Processing (SP)), circle out the invalid received date and edit the correct received date according to instructions in paragraph 4 below. For example, returns received by Taxpayer Advocate Service (TAS) or the IRS Office of Chief Counsel are not properly filed and a received date by that office isn't the official "IRS Received Date."

(2) On MEFP cases, the RRD field labeled "Received Date" is the received date of the return. The RRD field labeled "IRS Received Date" is an electronic postmark used to determine return timeliness.

Note: See the 1040-X Job Aid for additional information.

(3) If the Received Date stamp on a MEFS case is missing from the front page, or is illegible, but is found elsewhere in the return packet, add the received date to the front of the return in MMDDYY or MMDDYYYY format in the blank space above line 1.

Caution: When editing the received date, check the case data and update if needed.

(4) Use the following table for CII cases processed by SP 1040-X:

If ...

Then ...

Editing a received date is required on a case imaged into CII.

Use the CII “Annotation Toolbar” to add the received date.

A case has multiple identical images with multiple received dates.

Use the received date from the earliest complete return.

(5) Honor received dates that are handwritten in the center portion of the amended return edited in:

  • Green ink on current year returns received with payments as the return received date.

  • Red ink located in the center portion of the amended return.

Caution: When working a scanned CII case, the image is in black and white. Honor the received date handwritten in the center portion of the amended return.

(6) If the Received Date stamp isn't found or is obviously incorrect, edit the received date based on the order of precedence below in the same format and location as stated in (3) above.

  1. Latest postmark or designated private delivery service mark on the envelope

  2. IRS Service Center Automated Mail Processing System (SCAMPS) date

  3. Signature Date (only if the return was signed in the current year)

  4. Current date

(7) When there are multiple received dates stamped, or edited, on the return and you're adjusting or sending an amended return to another area, use the earliest received date. When processing replies to correspondence, see IRM 3.11.6.10.3, Corresponding on Net Balance Due Returns (Letter 324C), IRM 3.11.6.10.4, Corresponding on Net Refund and Zero-Balance Returns (Letter 178C), or IRM 3.11.6.7.9, Statute Review Screening.

(8) Input the received date of the return you're processing as the received date on IDRS. If the received date of the return doesn't match the established control base, see IRM 3.11.6.3, Controlling Cases on the Correspondence Imaging Inventory (CII) System.

Exception: For Statute returns, see IRM 3.11.6.7.9, Statute Review Screening.

(9) OVERRIDE CODE - An Override Code is required when the IRS Received Date is over one year old and on cases when the Refund Statute Expiration Date (RSED) has expired.

  1. R - Allows IRS Received Date to be older than a year in the past.

  2. S - Allows current date and the Refund Statute Control Date (RFSCD) to be later than the RSED. Refer to IRM 3.11.6.7.9, Statute Review Screening.

Determining Timeliness

(1) Always use the received date when determining timeliness of the claim. If the received date is missing, see IRM 3.11.6.4.5, Received Date. When the postmark is missing or illegible consider any return received within ≡ ≡ ≡ ≡ ≡ ≡ ≡calendar days of the due date of the return timely.

Reminder: On MEFP cases, the RRD field labeled "Received Date" is the received date of the return. The RRD field labeled "IRS Received Date" is an electronic postmark used to determine return timeliness. See the 1040-X Job Aid for additional information.

(2) April 16 is Emancipation Day in Washington D.C., a legal holiday. This may affect when a return is considered to be timely filed for taxpayers throughout the United States. See alsoIRM 25.6.1.6.18, List of Legal Holidays.

  1. When April 15 falls on a Sunday, the following Monday is generally the day on which returns are timely filed; however, in Washington D.C., April 16 is Emancipation Day, a legal holiday. All taxpayers have until Tuesday April 17 to file a timely return.

  2. When April 16 falls on a Saturday, Friday April 15 is considered the holiday. All taxpayers have until Monday April 18 to file a timely return due to the Emancipation Day holiday.

  3. When April 16 falls on a Sunday, Monday April 17 is the date of the Emancipation Day holiday. All taxpayers have until Tuesday April 18 to file a timely tax return due to the Emancipation Day holiday.

(3) Use the following table to determine if the claim is considered timely filed:

If April 15 falls on ...

Then the postmark must be ...

Friday

April 18 or earlier.

Saturday

April 18 or earlier.

Sunday

April 17 or earlier.

Caution: Disaster declarations may impact return due dates.

(4) According to Notice 2020-23, the due date for TY 2019 tax returns was postponed to July 15, 2020.

(5) According to Notice 2021-21, the due date for TY 2020 tax returns was postponed to May 17, 2021.

(6) These timeliness instructions affect the processing of:

Superseding Returns

(1) The due date of a calendar year individual income tax return is April 15.

Note: A fiscal year individual income tax return is due the fifteenth day of the fourth month following the close of the fiscal year.

(2) The due date may be changed due to Presidential disaster declarations.

(3) An amended return:

  • Filed on or before the due date or the extended due date is a superseding return.

  • Postmarked on or before the due date or extended due date, is processed as a superseding return.

(4) Send to AM any superseding return if:

  • The adjustment would result in an unpaid net balance due increase on the module.

  • The refund claim must be disallowed, partially disallowed, or not considered, leaving the account with a balance due instead of a refund.

Amended Claims Date

(1) The Amended Claims Date is a REQ54 field that is used by Master File to apply the 45-day interest free period.

  1. Use the IRS Received Date as the Amended Claims Date.

  2. For suspended correspondence, the Amended Claims Date is the received date of the taxpayer’s reply that allows you to process the return.

  3. An Amended Claims Date is required on every adjustment unless specifically noted otherwise.

(2) Don't use an Amended Claims Date when processing CP 08, CP 09, CP 27 or Math Error Corrections (only when the math error was set on the original return).

(3) When making a received date determination, see IRM 3.11.6.4.5, Received Date.

Signature

(1) The claim or amended return requesting an adjustment must be signed by (1) the taxpayer or (2) a person holding a valid Power of Attorney (POA) who has been authorized by the taxpayer to sign the taxpayer’s return by checking box on Form 2848, line 5a. The signature(s) is required anywhere below the jurat (perjury statement), but not in the paid preparer section on amended returns. If an original signature isn't present on a CII case, correspond per IRM 3.11.6.10, Correspondence Procedures, IRM 3.11.6.10.3, Corresponding on Net Balance Due Returns (Letter 324C), IRM 3.11.6.10.4, Corresponding on Net Refund and Zero-Balance Returns (Letter 178C), and IRM 3.11.6.11, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins.

(2) See IRM 3.11.6.16.15 (7), Computer Paragraph (CP) Notices, for CP 08, CP 09, and CP 27 signature requirements.

(3) All accepted e-filed returns have a valid signature.

Caution: Rejected e-filed returns may also be present on RRD. Only accepted returns are sent to SP 1040-X for processing.

(4) If the jurat has been altered, treat it as a Frivolous claim.

(5) If the jurat is missing, treat it as an unsigned return and correspond for the missing signature(s) using Letter 324C to obtain the signature. Process the net balance due per IRM 3.11.6.10.3, Corresponding on Net Balance Due Returns (Letter 324C).

Exception: If page 2 is missing on the new Form 1040-X, don't treat as missing jurat. Follow procedures for missing signature.

(6) Don't correspond for a missing or incorrect signature(s) if:

  1. A "Dummy" return was prepared by the IRS.

  2. A fiduciary representative or parent for other than a minor child signs for a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

  3. Form 2848, Power of Attorney and Declaration of Representative, with specific authorization on line 5a to sign a return, and including completed Part II, is attached to the return. See IRM 3.11.6.4.6.1, Centralized Authorization File (CAF) - Form 2848, Power of Attorney (POA) and Form 8821 (TIA) and General /Durable POAs.

  4. The return is a duplicate.

  5. Taxpayer files MFS (FS 3) and spouse didn't sign the return.

  6. The return is a substantiated math error response.

  7. The claim meets routing criteria unless otherwise specified.

  8. Note: For decedent returns, see IRM 3.11.6.16.10, Decedent Returns.

(7) If Form 1040-X isn't signed, however a Form 1040 matching the Correct Amount column of Form 1040-X is attached and signed, accept the signature and continue processing the return. Edit a notation onto the signature line, if present, on Form 1040-X indicating that the Form 1040 is signed. Otherwise edit the notation on the front bottom portion of Form 1040-X.

(8) Correspond for the signature of two witnesses when the taxpayer signs with a mark such as an "X". See IRM 3.11.6.10, Correspondence Procedures.

(9) Joint returns require the signature of both taxpayers unless one of the taxpayers falls into one of the categories below:

  1. One spouse is overseas, and the signing spouse is authorized by a power of attorney (e.g., Form 2848) or similar signed document which clearly defines the scope of authorization granted to the POA.

  2. One spouse is in a combat zone/qualified hazardous duty area and the signing spouse attaches a statement.

  3. One spouse is incapacitated. The signing spouse should attach a dated statement explaining the reason the incapacitated taxpayer can't sign. The signing spouse signs on the signature line as well as the spouse's signature line.

    Caution: Incapacitated means the taxpayer is physically unable to sign the return. In the case of a mentally incompetent taxpayer a court appointed representative who can act for the taxpayer must sign the tax return.

  4. If MFJ return with only one signature and the taxpayer is divorced or separated, send the case to AM.

(10) If the taxpayer is a minor (there must be a clear indication the child is a minor) the return must be signed by one of the following:

  • The minor child

  • A parent

  • A guardian or other fiduciary representative ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  • A guardian or other fiduciary representative with documentary evidence is attached

  • Note: Fiduciary representatives include:
    • Administrator (ADM)
    • Conservator (CONS)
    • Custodian (CUST)
    • Executor (EXEC)
    • Guardian (GDN)
    • Personal Representative (PER REP)
    • Trustee (TTEE)

(11) If taxpayer is a minor and the return is not signed, correspond for a missing signature. See IRM 3.11.6.10, Correspondence Procedures.

Centralized Authorization File (CAF) - Form 2848, Power of Attorney (POA) and Form 8821 (TIA) and General /Durable POAs

(1) The CAF maintains a database of authorized representatives who are permitted to sign for the taxpayer. The CAF unit assigns unique identifiers (CAF numbers) to the representative(s) based on Form 2848, Power of Attorney and Declaration of Representative (POA), and acceptable General/Durable POAs submitted.

(2) Taxpayers occasionally submit a tax return that has been signed by their enrolled agent or some other representative. The taxpayer must attach a Form 2848 or other acceptable power of attorney that specifically authorizes the representative to sign a return on the taxpayer’s behalf. See Form 1040 (and 1040-SR) Instructions. Or a Form 2848 authorizing the representative to sign a return may be on file with the CAF unit.

Note: For married filing joint (FS 2) accounts, each taxpayer must execute their own power of attorney or tax information authorization on a separate Form 2848 even if the same representative/appointee is provided.

(3) Taxpayers may also submit a Form 8821, Tax Information Authorization and Declaration of Representative (TIA), as documentary evidence for signing the tax return; however, Form 8821 doesn't authorize the signing of the return. If Form 8821 is present, detach and follow the routing instructions in paragraph 8.

(4) Correspond for a Form 2848, per IRM 3.11.6.11, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins, if the taxpayer submits a Form 8821 and the return is signed by someone other than the taxpayer.

(5) When the taxpayer submits a General/Durable POA, leave the document attached to the return and continue processing.

(6) If Form 2848 is attached specifically authorizing a representative to sign a return, follow the table below when processing a CII case.

If ...

And ...

Then ...

The signature on the return matches a representative listed on CC CFINK or the Form 2848 is already on file, including specific authorization to sign a return.

SIGN: field on CC CFINK is marked YES

Continue processing the return.

The signature on the return doesn't match a representative listed on CFINK, or no record is found,
or SIGN: field on CC CFINK is marked "NO"

Form 2848 is attached specifically authorizing the representative to sign a return

Print the case to PDF and follow the steps below.

  1. Go to the page(s) with Form 2848 and print just the Form 2848 to a PDF.

  2. E-fax the Form 2848 PDF to the CAF unit per paragraph 9 below.

  3. Leave a case note stating, "Form 2848 sent to CAF".

  4. Continue processing the case.

The signature on the return doesn't match a representative listed on CFINK, or no record is found,
or SIGN: field on CC CFINK is marked NO

Form 2848 isn't attached

Correspond IRM 3.11.6.11, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins.

Taxpayer signs the return and Form 2848 is attached

The representative(s) isn't listed or there's a change to the type of "Authorization" on CC CFINK

  1. Print the case to PDF and follow the steps below.

    1. Go to the page(s) with Form 2848 and print just the Form 2848 to a PDF.

    2. E-fax the Form 2848 PDF to the CAF unit per paragraph 9 below.

    3. Leave a case note stating, "Form 2848 sent to CAF".

    4. Continue processing the case.

(7) If line 4 of Form 2848 or Form 8821 is checked, continue processing the return, don't detach or send to the CAF unit.

(8) Use the following addresses when routing a Form 2848 or Form 8821 to a CAF Unit:

SP 1040-X Site

Fax Numbers

Address

Austin, Kansas City, and Memphis

855-214-7519

Internal Revenue Service
5333 Getwell Rd.
Mail Stop 8423
Memphis, TN 38118

Ogden

855-214-7522

Internal Revenue Service
1973 N Rulon White Blvd
Mail Stop 6737
Ogden UT 84201

(9) Don't detach any "Worksheets" provided by the military to personnel assigned to a Combat Zone. They aren’t considered a POA in lieu of Form 2848. See IRM 3.11.6.16.4, Combat Zone.

(10) If correspondence attached to the return is unrelated to the amended return and must sent to another functional area, attach a PDF copy of the POA or TIA to the correspondence. Indicate that the form has been detached and sent to the CAF unit.

Processing Presidential Election Campaign Fund (PECF) Requests

(1) Congress established the Presidential Election Campaign Fund (PECF) to support financing of presidential election campaigns.

  1. Taxpayers may file an amended return to designate a part of the tax liability to the PECF, if not specified on the original return.

  2. The amended return must be filed within 20 and one-half months after the original due date for filing the return.
    • For calendar year 2023, this period ends on December 30, 2025.
    • For calendar year 2022, this period ends on December 30, 2024.
    • For calendar year 2021, this period ends on December 30, 2023.
    • For calendar year 2020, this period ends on December 30, 2022.

(2) If the PECF request isn't received timely and the only change is to the PECF, then "no consider" the claim and use the fill-in: We were unable to honor your Presidential Election Campaign Fund (PECF) request. On an amended return, PECF requests must be filed within 20 and one-half months after the original due date for filing the return.

(3) The taxpayer may request that $3 go to the Presidential Election Campaign Fund (PECF) by checking one or both boxes on page 1 of Form 1040-X, Amended U.S. Individual Income Tax Return, or an amended Form 1040, U.S. Individual Income Tax Return, and amended Form 1040-SR, U.S. Tax Return for Seniors.

(4) Research the “POLITICAL CHECKOFF” field on CC IMFOLR to determine if a change to the election is required. The field is coded as follows:

Code

Election Type

0

None elected.

1

One elected on original return.

2

Two elected on original return.

3

One elected on amended return, none on original return.

4

Two elected on amended return, none on original return.

5

Two elected on amended return, one original return.

(5) Only take action on an amended return with a PECF designation change from "No" to "Yes." A "Yes" designation may not be changed.

(6) Don't process a PECF request on any return that is being routed.

(7) If the return meets correspondence criteria and an adjustment isn’t input, don't process the PECF request. Correspond as required.

(8) Prepare a "dummy" Form 1040-X when the taxpayer indicates an addition to the PECF and send the case to Batching. Prepare the “dummy” as follows:

  1. Edit "Dummy PECF" in the top margin of a blank Form 1040-X.

  2. The tax period

  3. The primary name control

  4. The primary SSN and secondary SSN.

  5. Check the appropriate filing stratus check box

  6. IMF Condition Code (CCC) "5" to the right of filing status just above Column C if one PECF box is checked. Edit CCC "6" if two boxes are checked.

  7. The received date in MMDDYY format in the center portion.

  8. Check the appropriate PECF box(es), in Part II on the second page of the Form 1040-X.

  9. Edit "CII case - Don't correspond for signature" in the signature area.

  10. Your employee number/stamp in the upper left margin.

  11. Input Case Note "PECF Prep".

Updating Case Data

(1) The case data for cases received in Submission Processing (SP) 1040-X have the following elements:

Note: An E-1 error can occur when there is an issue the case data. refer to IRM 3.11.6.4.8.1, CII Cases with an E-1 Error.

  • TIN (Taxpayer Identification Number)

  • MFT (Master File Tax)

  • TXPD (Tax Period)

  • NC (Name Control)

  • IRS Rcvd Dt (IRS Received Date)

  • Work Type

  • Doc Type (Document Type)

  • Category

  • Program

  • Function

(2) Use the following table to ensure the case data is correct and update as appropriate.

If the CII case is a ...

Then use ...

1040-X or amended 1040

  1. The TIN of the Primary Taxpayer

  2. MFT "30"

  3. The TXPD of the return

  4. The NC of the Primary Taxpayer

  5. The IRS Rcvd Dt of the return

  6. Work Type "IMF"

  7. Doc Type "SP 1040X"

  8. Category "MEFP" for MeF cases, and "MEFS" for scanned cases

  9. Program "44490" for MEFP cases, and "44450" for MEFS cases

  10. Function "ADJ-710"

W-7 1040-X or amended 1040

Note: A W-7 return can be identified by a "W-7" stamp on the return image. Generally, the stamp is located in the lower left corner of the return.

  1. The TIN of the Primary Taxpayer

  2. MFT "30"

  3. The TXPD of the return

  4. The NC of the Primary Taxpayer

  5. The IRS Rcvd Dt of the return

  6. Work Type "IMF"

  7. Doc Type "SP 1040X W7"

  8. Category "MEFS"

  9. Program "44452"

  10. Function "ADJ-710"

Computer Paragraph (CP) 27 Notice

  1. The TIN of the Primary Taxpayer

  2. MFT "30"

  3. The TXPD of the CP Notice

  4. The NC of the Primary Taxpayer

  5. The IRS Rcvd Dt of the return

  6. Work Type "IMF"

  7. Doc Type "SP 1040X CP 27"

  8. Category "MEFS"

  9. Program "40000"

  10. Function "ADJ-710"

CP 09

  1. The TIN of the Primary Taxpayer

  2. MFT "30"

  3. The TXPD of the CP Notice

  4. The NC of the Primary Taxpayer

  5. The IRS Rcvd Dt of the return.

  6. Work Type "IMF"

  7. Doc Type "SP 1040X CP 09"

  8. Category "MEFS"

  9. Program "40002" or "40412" if the case is received through the DUT

  10. Function "ADJ-710"

CP 08

  1. The TIN of the Primary Taxpayer

  2. MFT "30"

  3. The TXPD of the CP Notice

  4. The NC of the Primary Taxpayer

  5. The IRS Rcvd Dt of the return

  6. Work Type "IMF"

  7. Doc Type "SP 1040X CP 08"

  8. Category "MEFS"

  9. Program "40003" or "40413" if the case is received through the DUT

  10. Function "ADJ-710"

(3) The data displayed in the Case Data section must be updated by clicking the "Update Data" button, when reassigning a case. See IRM 3.11.6.9, 1040-X Reassignment and Reroute Guides.

(4) The Statute Search field must be changed to Yes, once a CII case has been returned from the statute unit indicating "No Statute Issue(s)."

CII Cases with an E-1 Error

(1) An E-1 error occurs when:

  1. The name control (NC) used to create the case doesn’t match IDRS.

  2. The taxpayer identification number (TIN) used to create the case is incorrect.

  3. The case control was closed on IDRS, but not closed in CII.

(2) The issue causing the E-1 error must be resolved before taking action on the case. If you’re unable to resolve the E-1 error take the following action:

  1. Input a case messages stating "E-1 error."

  2. Suspend the case to your lead or manager to resolve the error. Once the error has been resolved, the case will be returned to you for processing.

Screening Criteria for Processable Return

(1) Screen the amended return and research IDRS for any Transaction Code(s) or Freeze Code(s) that require special attention to determine if:

  1. Routing criteria is present

  2. The claim is complete

  3. The claim is allowable

  4. The claim is processable

(2) Before inputting any changes to a Form 1040-X, check for any issue(s), freeze codes, transaction codes, math error condition, tax period, No TC 150, etc. that require routing to another area. See IRM 3.11.6.8, 1040-X Routing Guide.

(3) If the return isn't sent to another area, check for the following items that may require correspondence or additional action if missing or invalid:

  • Primary TIN

  • Tax period

  • Signature

  • Received date

  • Presidential Election Campaign Fund (PECF) boxes checked requiring preparation of a "dummy return"

  • Forms, schedules, or other required information

(4) Unless otherwise specified, input the adjustment if the claim is processable, doesn't meet routing criteria, or require correspondence.

(5) If working a MEFS case and the case requires Form 1040-X be converted to a Form 1040 or Form 6114, follow the association process in IRM 3.11.6.4.2, Association, Forms, Schedules, and Other Documents to CII Cases, prior to routing.

Transaction Code (TC) 150 Research (No TC 150)

(1) All amended claims require a posted TC 150, unless specifically instructed. Specific instructions to route a case without a posted TC 150 take priority. Research IDRS using the primary taxpayer’s TIN to locate a TC 150 for the tax period indicated on the return. Researching for a TC 150 includes researching both the valid and invalid sides of Master File. To research the invalid side, input an asterisk after the TIN.

Note: It might be necessary to research different tax years if the information on the return or the data on IDRS support a different tax period.

If ...

And ...

Then ...

Researching the primary taxpayer’s TIN

A TC 150 wasn’t found under the primary taxpayer’s TIN

Research CC TRDBV for tax data. If the tax data is present or is pending (must be present on primary taxpayer for MFS (FS 3)) suspend the case for 60 days from the received date and monitor for the TC 150 to post. Don’t consider REJECTED, DELETED OR VOIDED on CC TRDBV as tax data. Follow paragraph 9 below for instructions on suspending the return.

Note: A Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, won’t post as a TC 150, and should be considered tax data.

Exception: If you find master file information on CC TRDBV, but there's not information posted on MFT 30 research CC IMFOLI to see if information has posted to MFT 32 and if present, treat the case as identity theft. See IRM 3.11.6.7.8, Identity Theft (IDT) Screening.

Researching the primary taxpayer’s TIN

A TC 150 wasn’t found under the primary taxpayer’s TIN

Look though the entire return for a different TIN for the primary taxpayer, including taxpayer’s explanation. If a different TIN is found, research for a TC 150 using the discovered TIN.

A TC 594 is present

The case is a married filing joint return

Research for a TC 150 using the cross-reference TIN.

A TC 594 is present

The case isn’t a married filing joint return

Research for a TC 150 using the cross-reference TIN.

The case is a married filing joint return

A TC 150 hasn’t been found

Research for a TC 150 using the secondary taxpayer’s TIN.

There are dependents present on the return

A TC 150 hasn’t been found

Research the dependent(s) TIN using CC DDBKD or CC DUPED for different primary TIN.

There are dependents present on the return

A different TIN wasn’t found for the primary taxpayer and the case is a married filing joint return

Research the dependent(s) TIN using CC DDBKD or CC DUPED for different secondary TIN.

A TIN for the primary taxpayer, or secondary taxpayer if applicable, hasn’t been found

A TC 150 hasn’t been found

Use IAT Name Search Tool to locate a different TIN. It may be necessary to use multiple name combinations in order to locate a different TIN. If research shows the TC 150 for the primary or secondary taxpayer was filed under a different TIN:
- Update the CII case data to the reflect the taxpayer with the TC 150 present.
- Input a TC 971 AC 120.
- Send the case to AM.

Exception: When the secondary taxpayer is changing from FS 2, don’t update the TIN.

A different TIN hasn’t been located

A TC 150 isn't present

Research ERS inventory. See paragraph 4 below.

(2) If a TC 150 is present, follow the table.

If ...

Then ...

The posted date is all zeros or blank and the return was received before cycle 21

Suspend the case using the "No TC 150 Posting Date" activity in the suspense menu.

The posted date is all zeros or blank and the return was received in cycle 21 or later

Suspend the case using the "No TC 150 Posting Date Received in Cycle 21 or Later" activity in the suspense menu.

The TC 150 is showing as an unpostable (Unnn 150)

See IRM 3.11.6.7.4, Taxpayer Protection Program (TPP) Screening, to determine if the case must be sent to AM. If it doesn’t, suspend the case using the "Unnn TC 150" activity in the suspense menu.

The TC 150 is showing as a corrected unpostable (CU 150)

Suspend the case using the "CU TC 150" activity in the suspense menu.

The TC 150 is showing as a pending transaction (PN 150)

Suspend the case using the "PN TC 150" activity in the suspense menu.

The TC 150 is showing as rejected (RJ 150)

See paragraph 4 below for ERS research. If the case isn’t in ERS, send to AM.

None of the above apply

Continue processing.

Note: If the TC 150 hasn’t posted after the suspense period, send to AM

(3) If a TC 150 isn’t present, follow the table.

If ...

Then ...

A TC 971 AC 124 is present

See IRM 3.11.6.7.4, Taxpayer Protection Program (TPP) Screening.

Form 4684 is present or the taxpayer indicates the case is a disaster claim

See IRM 3.11.6.16.2, Processing a Disaster Claim.

A TC 971 AC 506, 522, or 524 is present on CC ENMOD

See IRM 3.11.6.7.8, Identity Theft (IDT) Screening.

  • A TC 971 AC 111 is present on CC IMFOLT or CC TXMODA

  • CC IMFOLI indicates the return is on MFT 32

  • Form 14039 is attached or mentioned or the taxpayer indicates identity theft

See IRM 3.11.6.7.8, Identity Theft (IDT) Screening.

The case is for a Statute year

See IRM 3.11.6.7.9, Statute Review Screening.

(4) Use the following table to research ERS inventory.

    If processing a ...

    Then ...

    MEFP case

    Take the following action:

    1. Research RRD to see if the original return was e-filed. If the original return is present on RRD and the "Processing Status" field is "ERS SUSPENDED" or similar, send the case to your local ERS per IRM 3.11.6.9.1, 1040-X MEFP Reassignment and Reroute Guide

    2. If the original return was paper filed, research ERS inventory using CC ERINV and CC ERINV@. If in ERS, send the case to your local ERS per IRM 3.11.6.9.1, 1040-X MEFP Reassignment and Reroute Guide

    MEFS case

    Take the following action:

    1. Research RRD to see if the original return was e-filed. If the original return is present on RRD and the "Processing Status" field is "ERS SUSPENDED" or similar, send the case to your local ERS per IRM 3.11.6.9.2, 1040-X MEFS Reassignment and Reroute Guide

    2. If the original return was paper filed, research ERS inventory using CC ERINV and CC ERINV@. If in ERS, send the case to your local ERS per IRM 3.11.6.9.2, 1040-X MEFS Reassignment and Reroute Guide

Note: Refer to the 1040-X Job Aid for IMF File Location Codes for use with CC ERINV@

.

(5) If the ERS Status is "100" or "900," suspend for 5 working days. If after the suspense period a TC 150 is still not on the account, send the case to ERS.

(6) Use the following stop numbers when sending a case to ERS per paragraph 4 above. Prior to sending to ERS, change the case control activity to "SNT2ERS."

Reminder: The only suspend ERS cases that are in ERS Status "100" or "900." All other ERS Statuses must be sent to ERS without delay.

If ...

Then ...

The original return was e-filed

  • Austin – Mail Stop 6122 AUSC

  • Kansas City – Mail Stop 6120 KCSC

  • Ogden – Mail Stop 6120 OSC

  • Memphis – Mail Stop 6122 AUSC

The original return was paper filed

  • Austin – Mail Stop 6122 AUSC

  • Kansas City – Mail Stop 6120 KCSC

  • Ogden – Mail Stop 6120 OSC

  • Memphis – Mail Stop 6122 AUSC

(7) If no TC 150 is found after all research has been exhausted:

  1. If no Form 1040 is attached, see IRM 3.11.6.5.4, Form 1040-X without Form 1040 Attached (No TC 150).

  2. If Form 1040 is attached, see IRM 3.11.6.5.2, Form 1040 Attached to Form 1040-X.

  3. If no Form 1040-X is attached, see IRM 3.11.6.5.3, Amended Form 1040 without Form 1040-X Attached.

  4. For a Statute year return see, IRM 3.11.6.7.9, Statute Review Screening.

Note: When routing a no TC 150 case to Batching and there's an E- freeze on the account, input a TC 971 AC 002 to indicate the amended return is being reprocessed as the original (to post as TC 150). The TC 971 AC 002 releases the E– freeze. When inputting the TC 971 AC 002 take the following action:
• In the "TRANS-DT" field, input the TC 976/977 date associated with the case you’re processing as the transaction date.
• In the "XREF-TIN" field, input the TIN of the primary taxpayer.
Note: If the cross-reference TIN is the same as the account TIN, enter "R" to automatically populate the field.
• In the "XREF-TX-PRD" field, input the correct tax period.
Note: If the cross-reference tax period is the same as account tax period, enter "R" to automatically populate the field.

Form 1040 Attached to Form 1040-X

(1) After researching for a TC 150 per IRM 3.11.6.5.1, Transaction Code (TC) 150 Research (No TC 150), determine if the attached Form 1040 and Form 1040-X is for the same or different tax period.

(2) If theForm 1040 is for a different tax period than the Form 1040-X and:

  1. Form 1040 is being used as "support" for a carryback loss, keep the two returns together and treat as a carryback claim.

  2. No TC 150 has posted for the tax period of Form 1040, detach Form 1040. Continue processing Form 1040-X.

(3) When processing a case and no TC 150 has posted for the same tax period, follow the table below.

Reminder: When routing a no TC 150 case to Batching and there's an E- freeze on the account, input a TC 971 AC 002 to indicate the amended return is being reprocessed as the original (to post as TC 150). The TC 971 AC 002 releases the E– freeze. When inputting the TC 971 AC 002 take the following action:
• In the "TRANS-DT" field, input the TC 976/977 date associated with the case you’re processing as the transaction date.
• In the "XREF-TIN" field, input the TIN of the primary taxpayer.
Note: If the cross-reference TIN is the same as the account TIN, enter "R" to automatically populate the field.
• In the "XREF-TX-PRD" field, input the correct tax period.
Note: If the cross-reference tax period is the same as account tax period, enter "R" to automatically populate the field.

If ...

And ...

Then ...

MEFP

 

  1. Print the entire amended return from RRD to PDF

  2. Edit the PDF to circle any indication that the return is amended such as, "e-file GRAPHIC print - DO NOT PROCESS."

  3. "X" Form 1040-X

  4. Edit the PDF to add the received date

  5. Edit the PDF the working/action trail information

  6. Line through the direct deposit fields

  7. Edit "MeF Return - Don't correspond for signature" in the signature area

  8. Send the document to Batching

MEFS

Form 1040 matches the Correct Amount, Column C, of Form 1040-X

Take the following action:

  1. Use the CII Annotation tool to circle any indication that the return is amended such as, "e-file GRAPHIC print - DO NOT PROCESS."

  2. "X" Form 1040-X

  3. Annotate the received date if needed

  4. Annotate the working and action trail information

  5. Line through the direct deposit fields

  6. If the case is signed, annotate "CIS Image- Don't correspond for signature" in the signature area

  7. Send the document to Batching

MEFS

Form 1040 doesn't match the Correct Amount, Column C, of Form 1040-X
Note:Form 1040 may be notated As originally filed

Take the following action:

  1. Convert taxpayer's Correct Amount figures using a Form 6114 or current year Form 1040, as appropriate

  2. Use the CII Annotation tool to circle any indication that the return is amended such as, "e-file GRAPHIC print - DO NOT PROCESS"

  3. "X" Form 1040-X and the Form 1040(s) that doesn't match.
    Exception: When using Form 6114, don’t "X" the Entity section

  4. Annotate the received date

  5. Annotate the working and action trail information

  6. Line through the direct deposit fields

  7. If the case is signed, annotate "CIS Image- Don't correspond for signature" in the signature area

  8. Send the document to Batching

MEFS

Two Form 1040s are attached to a Form 1040-X

  • One may be notated "As originally filed" and doesn't match the correct amount column

  • The second may be notated "As amended" and matches the correct amount column

Take the following action:

  1. Use the CII Annotation tool to circle any indication that the return is amended such as, "e-file GRAPHIC print - DO NOT PROCESS"

  2. "X" Form 1040-X and the Form 1040s notated "As originally filed"

  3. Annotate the received date

  4. Annotate the working and action trail information

  5. Line through the direct deposit fields

  6. If the case is signed, annotate "CIS Image- Don't correspond for signature" in the signature area

  7. Send the document to Batching

Amended Form 1040 without Form 1040-X Attached

(1) Research for a TC 150 per IRM 3.11.6.5.1, Transaction Code (TC) 150 Research (No TC 150). If no TC 150 has posted, take the following action:

  1. Use the CII Annotation tool to circle any indication that the Form 1040is amended such as, "e-file GRAPHIC print - DO NOT PROCESS".

  2. Edit your TE number.

  3. Annotate the received date if needed.

  4. Edit "No TC 150" and the current date in the upper left margin.

  5. Line through the direct deposit fields.

  6. If the case is signed, annotate "CIS Image- Don't correspond for signature" in the signature area.

  7. Send the document to Batching.

  8. Reminder: When routing a no TC 150 case to Batching and there's an E- freeze on the account, input a TC 971 AC 002 to indicate the amended return is being reprocessed as the original (to post as TC 150). The TC 971 AC 002 releases the E– freeze. When inputting the TC 971 AC 002 take the following action:
    1) In the "TRANS-DT" field, input the TC 976 or 977 date associated with the case you’re processing as the transaction date.
    2) In the "XREF-TIN" field, input the TIN of the primary taxpayer.
    Note: If the cross-reference TIN is the same as the account TIN, enter "R" to automatically populate the field.
    3) In the "XREF-TX-PRD" field, input the correct tax period.
    Note: If the cross-reference tax period is the same as account tax period, enter "R" to automatically populate the field.

Note: When it appears that Code & Edit has corresponded for a signature (i.e., Form 3531 attached or notated in the working trail) and the return is still unsigned follow normal procedures to send the case to Entity.

(2) If an undeliverable return is received, see IRM 3.11.6.10.13, Undelivered Correspondence.

Form 1040-X without Form 1040 Attached (No TC 150)

(1) After researching for a TC 150 per IRM 3.11.6.5.1, Transaction Code (TC) 150 Research (No TC 150), if no return has been filed and there’s no specific instruction to route a case without a TC 150 present, suspend the case for 60 days from the IRS received date. Use the appropriate suspense activity code per IRM 3.11.6.2.1.1, 1040-X Suspense Activity Codes.

If ...

Then ...

The taxpayer previously had an ITIN or IRSN and is switching to a valid SSN

Suspend the case using the SSN for 60 days from the IRS received date. Use the appropriate suspense activity code per IRM 3.11.6.2.1.1, 1040-X Suspense Activity Codes.

If there’s no specific instruction to route a case without a TC 150 present

Suspend the case for 60 days from the IRS received date. Use the appropriate suspense activity code per IRM 3.11.6.2.1.1, 1040-X Suspense Activity Codes.

(2) After the 60-day suspense period has ended and there's still no posted or pending TC 150 follow the table below.

If ...

Then ...

There are payments on the account indicating a balance due, or a tax increase, or credit decrease on the amended return

Route the return to AM.

There are no payments on the account, or no tax increases, or credit decreases on the amended return

Don't input a TC 290 for .00. Send Letter 178C with the following fill-in: We’ve no record of receiving your original return, therefore we can't process your Form 1040-X, Amended U.S. Individual Income Tax Return. Please complete and submit a new Form 1040, U.S. Individual Income Tax Return, being sure to include your amended changes and your original signature(s). Please don't attach a Form 1040-X to your new Form 1040.

Master File Verification and Math Verification Screening

(1) Master file verification is required on all amended returns, CPs, and any miscellaneous claim adjustment prior to:

  • Inputting an adjustment

  • Initiating correspondence

  • Exception: Master file verification isn't required when corresponding for a missing tax period or TIN, or when a return has been perfected

(2) Master file verification requires the comparison of lines 1-15 Column A on Form 1040-X, with CC IMFOL or CC TXMOD.

Caution: The American Rescue Plan Act of 2021 allows the taxpayer to exclude $10,200 (MFJ - $10,200 for each spouse) of Unemployment Compensation from income for the tax year 2020. Taxpayers may file a Form 1040-X with an incomplete Column A or incorrect Column A due to systemic recovery performed on these accounts. Refer to IRM 21.6.6.2.54, Unemployment Compensation Exclusion due to American Rescue Plan Act (ARPA) of 2021, and the 2020 Unemployment Compensation Exclusion (UCE) FAQs found on irs.gov for additional information regarding the UCE.

  1. If any combination of lines in Column A don't match CC TXMOD and no math error (MTH-ERR) is present, then Math verification is required.

  2. Review AMS and CII Case Notes on cases worked by SP 1040-X.

  3. Be sure to consider all previous adjustments. If no changes can be identified see IRM 3.11.6.6.1, Duplicate Returns and Identical Open CII Cases.

  4. When Column A doesn't match and an amended Form 1040 series is attached matching Column C, adjust to the Column C amount(s).

  5. For single page returns with a payment made within a few days of the received date or "W-7" stamped returns, research IDRS to determine if it was for a payment or ITIN renewal only. If the preceding scenarios are applicable, treat as a duplicate return. See IRM 3.11.6.6.1, Duplicate Returns and Identical Open CII Cases.

(3) When the amount shown on a supporting form or schedule differs from the amount shown on the Form 1040-X:

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ adjust using the 1040-X amount.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ correspond per IRM 3.11.6.11, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins.

(4) When a dependent is being removed, verify the taxpayer is removing credits associated with that dependent.

(5) Math verification is required when one or more of the following are met:

  1. There’s a total tax change (positive or negative) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. Column A entries don't match TXMOD or IMFOL (no math error code is present) and paragraph (2)(d) above doesn't apply.

  3. A math error is present. Also see IRM 3.11.6.16.6, Math Error Response Cases.

  4. There are amounts that are blank, illegible or incorrect.

Exception: Math verification isn't required when the claim doesn't meet SP criteria, the entry is off by a dollar due to rounding, or the error can be identified as a misplaced entry that results in no difference between the taxpayer’s expected refund or balance due and the overall adjustment being made.

(6) Math verification includes doing the following:

  1. Verifying the math on the entire amended return, including any forms, schedules and worksheets that are related to the change.

  2. Verifying the taxpayer’s modified entries using the forms attached to the claim, schedules, worksheets, taxpayer remarks, and IDRS research.

  3. Verifying the corrected tax computation.

  4. Verifying any additional taxes on line 10 as reported by the taxpayer are calculated correctly.

  5. Verify all income-based items on claims involving an income change. Recalculate the items when the income changes, even if the taxpayer doesn't address them.

(7) If you're unable to "perfect" the return based on information submitted and through IDRS research, correspond requesting clarification:

If ...

Then ...

there's an unexplained amount that results in a change ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ to lines 11-15, Column B

Accept the amount and adjust using the taxpayer’s Column B figures.

The taxpayer's Column A figures (original amount) don't match IDRS

Correspond per IRM 3.11.6.11, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins.

For any other reason

Correspond per IRM 3.11.6.11, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins.

(8) When math verifying the return and an error is discovered, re-compute the correct amounts using the information supplied and IDRS research. After perfecting the Total Tax (line 11), if the recomputed lines 12 - 15 amounts are:

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, adjust using the taxpayer’s figures.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, adjust the account using your recomputed figures. See IRM 3.11.6.16.5, Inputting a Corrected Adjustment.

Duplicate Returns and Identical Open CII Cases

(1) A duplicate condition occurs when:

  • Multiple open CII cases are identical

  • An amended return matches the most recent adjustment/filing figures

(2) When other open CII case(s) are present and assigned to the generic queue, determine if the other case(s) are identical to your case. If so, process as follows:

  1. Link the cases using the "Link" function on the "Active Case" page.

  2. In the Link Case popup, input the CII Case ID of the case(s) to be linked, one at a time.

  3. Notate "duplicate amended return" in the notes section of the identical case(s).

  4. Reassign the unassigned case to your CII case inventory.

  5. Close each CII case linked to the original case using the "Close as Misc" button.

  6. Continue processing the original CII case per normal procedures.

Reminder: If a case is open to another SP 1040-X tax examiner, refer to IRM 3.11.6.7.17.1, Cases Open to an SP 1040-X Tax Examiner.

(3) Prior to treating an amended return as a duplicate, review the return and attachments for routing criteria.

  1. If the return is a duplicate but the taxpayer is requesting an additional action, follow general processing procedures.

  2. Research IDRS for taxpayer correspondence. Research the type of letter(s) that have been sent. Send the case to the originating area. This includes the Letter 12C requesting a taxpayer signature.

  3. When it appears that Code and Edit has corresponded for a signature (Form 3531 attached or notated in the working trail) and the return is still unsigned, follow normal procedures and send the case to Entity.

  4. If the return is a duplicate, don't correspond for missing forms, schedules, or signature(s).

(4) When processing a CII case, continue researching to determine the reason the taxpayer filed the form.

If ...

And ...

Then ...

The taxpayer has requested a processable change that doesn't cause a change to a line-item dollar amount

The change has a specific reason code (RC)

Input a TC 290 .00 with the appropriate RC.

The taxpayer has requested a processable change that doesn't cause a change to a line-item dollar amount

The change doesn't have a specific reason code

Use RC 099.

No change or action is required

 

Input a TC 290 .00 without a reason code.

Note: If there's a prior pending adjustment, input a post delay code.

(5) Once a Form 1040/A/EZ/SR is identified as an amended return and that reverts the module back to the original filing, look for any indication as to why. If no indication is found, then treat the return as classified waste. See IRM 3.11.6.16.22, Classified Waste.

Exception: If an active Combat Zone return, per IRM 3.11.6.16.4, Combat Zone, will revert the module to the original filing, input a TC 290 .00 without a reason code.

Sorting, Routing, and Priority Screening

(1) Before inputting an adjustment or corresponding, screen the case to identify all documents and IDRS conditions requiring actions by another area.

(2) Occasionally, a Form 4442, Inquiry Referral, or E-4442, may be received from another area. Expedite the processing of these requests.

(3) When screening a case:

  • Identify all possible route out criteria, then send to the highest priority as stated in paragraphs 4 and 5 below

    Note: Specific routing instructions found within the designated priority order take on that priority.

    Example: A case has a -W freeze and a  -L Freeze (status code 12) on the account, and it also meets AUR open case criteria. In this instance, the three possible routing destinations for this claim are Exam, AUR, and AM. Since Exam is the highest priority and has specific instructions regarding the -W freeze, the case bypasses the AUR criteria and will be sent to AM.

  • Follow specific IRM instructions

  • CII cases are reassigned or rerouted through CII whenever possible. See IRM 3.11.6.9, 1040-X Reassignment and Reroute Guide

    Caution: When reassigning a case through CII, don't close the case control. Closing the case control causes an "E-1" error.

  • If the TC 150 has not posted, see IRM 3.11.6.5.1, Transaction Code (TC) 150 Research (No TC 150)

  • Don't input or update CC REQ54, CC DUPED, CC DDBCK or CC ENREQ unless otherwise instructed by a specific IRM section

  • Input a case note and see IRM 3.11.6.7.19.1, Working Trail and Action Trail

Note: Keep all related tax years together if possible.

Exception: Don't route non-statute year returns to the Statute unit unless they are attached to a statute year return for informational purposes. Don't route a non-AUR cases to AUR unless they are attached for informational purposes

(4) If Form 1040-X needs must be converted to a Form 1040 or Form 6114, follow the association process in IRM 3.11.6.4.2, Association, Forms, Schedules, and Other Documents to CII Cases, prior to routing.

(5) See IRM 3.11.6.7.19.2, Transaction Code (TC) 971 and Action Codes, for TC 971 Action Codes and routing destination for specific items.

(6) See IRM 3.11.6.4.7, Processing Presidential Election Campaign Fund (PECF) Requests, for "Dummy PECF" editing instructions.

SP 1040-X Routing When a TC 150 Isn’t Present

(1) When a TC 150 isn’t present, the priority of routing is as follows.

Priority ...

Condition ...

Follow ...

1

Taxpayer Protection Program (TPP)

IRM 3.11.6.7.4, Taxpayer Protection Program (TPP) Screening.

2

ID Theft (IDT)

IRM 3.11.6.7.8, Identity Theft (IDT) Screening.

3

Disaster Claims

IRM 3.11.6.7.6, Disaster Claim Screening.

4

Statute

IRM 3.11.6.7.9, Statute Review Screening.

5

All other cases

IRM 3.11.6.5.1, Transaction Code (TC) 150 Research (No TC 150).

SP 1040-X Routing When a TC 150 Is Present

(1) When a TC 150 is present, the priority order for routing is as follows.

Priority ...

Condition ...

Follow ...

1

International case

IRM 3.11.6.7.3, International Return Screening.

2

Taxpayer Protection Program (TPP) case

IRM 3.11.6.7.4, Taxpayer Protection Program (TPP) Screening.

3

Identity Theft (IDT) case

IRM 3.11.6.7.8, Identity Theft (IDT) Screening.

4

Office of Fraud Enforcement (OFE) case

IRM 3.11.6.7.5, Office of Fraud Enforcement (OFE) - Suspicious Case Referral Screening.

5

Disaster Claim case

IRM 3.11.6.7.6, Disaster Claim Screening, and IRM 3.11.6.16.2, Processing a Disaster Claim.

6

Carryback (CB) or Carryforward (CF) Claim case

IRM 3.11.6.7.7, Carryback and Carryforward Screening.

7

Statute case

IRM 3.11.6.7.9, Statute Review Screening.

8

Examination case

IRM 3.11.6.7.10, Examination Case Screening.

9

Frivolous (FRIV) case

IRM 3.11.6.7.11, Frivolous Claims Screening.

10

Criminal Investigation (CI) Scheme Development Center (SDC) case

IRM 3.11.6.7.12, Criminal Investigation (CI) Scheme Development Center (SDC) Screening.

11

Return Integrity and Verification Operation (RIVO) case

IRM 3.11.6.7.13, Return Integrity and Verification Operation (RIVO) Screening.

12

Category A (CAT-A) case

IRM 3.11.6.7.14, Category A (CAT-A) criteria Screening

13

Automated Underreporter (AUR) case

IRM 3.11.6.7.15, Automated Underreporter (AUR) Screening.

14

Adjustment Function Criteria (AM) case

IRM 3.11.6.7.16, Accounts Management Case Screening.

15

Open case to an employee in an area not listed above

IRM 3.11.6.7.17, Open Cases and Open Control Base Screening.

16

Collection Function case

IRM 3.11.6.7.18.3, Collection Function Case Screening.

17

All other case types

Various.

International Return Screening

(1) Send all International returns to AM. This includes duplicate returns.

(2) Don’t process an amended return if all the Forms W-2 and Forms 1099 attached are from the Virgin Islands (regardless of the address). Send these returns to the following address:
Virgin Islands Bureau of Internal Revenue
6115 Estate Smith Bay, Ste. 225
St. Thomas, U.S. Virgin Islands 00802

(3) Send to AM if "dual status" is indicated by the following conditions on an "amended" Form 1040:

Form 1040 Revision is

Filing Status

Box is checked

and Line is blank or zero

2019 and later

Other than Married filing separately (FS 3)

In entity section for "Your spouse itemizes on a separate return or you were dual-status alien"

8

(4) If any of the following are attached or mentioned, send the amended return to AM..

  • Claims with foreign addresses on either the original or amended return (other than APO, DPO, and FPO addresses)

  • Form 1040 GUAM, Guam Individual Income Tax Return

  • Form 1040C, U.S. Departing Alien Income Tax Return

  • Form 1040-NR, U.S. Non-resident Alien Income Tax Return

  • Form 1040NR-EZ., U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents

  • Form 1040PR, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bone Fide Residents of Puerto Rico)

  • Form 1040SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico)

  • Form 1042S, Foreign Person's U.S. Source Income Subject to Withholding

  • Form SSA-1042S, Social Security Benefit Statement

  • Form RRB-1042S, Railroad Retirement Benefits

  • Form 2555, Foreign Earned Income

  • Form 2555EZ, Foreign Earned Income Exclusion (attached or noted on the return)

  • Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts

  • Form 3520-A, Annual Return of Foreign Trust With a U.S. Owner

  • Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa

  • Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI)

  • Form 8288A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests (IRC 1445)

  • Form 8288B, Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests

  • Form 8689, Allocation of Individual Income Tax to the Virgin Islands

  • Form 8804, Annual Return for Partnership Withholding Tax (Section 1446)

  • Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax

  • Form 8813, Partnership Withholding Tax Payment Voucher (Section 1446)

  • Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)

  • Form 8854, Initial and Annual Expatriation Information Statement

  • Form 8858, Information Return of U.S. Persons with Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs)

  • Form W-2AS, American Samoa Wage and Tax Statement

  • Form W-2GU, Guam Wage and Tax Statement

  • Form W-2VI, U.S. Virgin Islands Wage and Tax Statement

  • Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals)

  • Claims involving IRC 911, IRC 931, or IRC 933

  • A notation on the return of "Dual Status"

  • Claims for an exemption or exclusion of the tax or income due to an international treaty or United States Tax Treaty

  • Claims involving Treaty Trader or Fulbright Grantee

  • Claims citing income from Johnston Island (26 CFR 1.931-.1)

  • Income paid in foreign currency, whether or not it was converted to U.S. currency

  • Primary, secondary, or both taxpayers are Non-Resident Aliens (NRA)

  • Any indication on the Form 1040-X the taxpayer originally filed an International return and is requesting a conversion to a Domestic return (i.e., originally filed Form 1040-NR and request conversion to Form 1040)

Taxpayer Protection Program (TPP) Screening

(1) The Taxpayer Protection Program (TPP) is for cases where potential IDT has been identified. The taxpayer is sent a Letter 4883C requiring the taxpayer to authenticate through the TPP.

(2) Send all cases selected for the TPP to AM. TPP cases can be identified by the following:

  • Unpostable TC 150 with unpostable code (UC) 1260

  • TC 971 AC 124

  • TC 971 AC 124 with either an unpostable TC 150 UC 1260 or CC TRDBV shows the return is unpostable

  • TC 971 AC 129 with Misc>"NNNNNNNNNNNNNN 1040X" on CC IMFOL and CC TXMOD

Note: NNNNNNNNNNNNNN = DLN of MeF Return

Office of Fraud Enforcement (OFE), Suspicious Case Referral Screening

(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Note: If the case meets Exam or CAT-A routing criteria, don't send to OFE. Send the case to Exam or CAT-A as appropriate.

Exception: If the case meets Identity Theft criteria, send the case per IRM 3.11.6.7.8, Identity Theft (IDT) Screening.

(2) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, follow the table below:

Note: Form 13549, Campus Fraud Lead Sheet, must be completed electronically.

If processing a ...

Then ...

MEFP case

  1. The tax examiner must:

    1. Complete Form 13549, Sections I, II, Section III item 1, and Section IV. In Section IV, make the following notations:

      • The case is on Modernized e-File Return Request Display

      • CII case ID

      • Describe the suspicious elements on the case. Refer to page 4 of Form 13549

    2. Leave a Case Message stating, "Form 13549 approval request."

    3. Suspend the case to your lead and send a secure e-mail with Form 13549 attached. Remember to indicate the CII Case Id in the e-mail.

  2. The lead must:

    1. Verify Form 13549, Sections I, II, Section III item 1, and Section IV have been completed correctly. If incomplete, return to the TE for corrections. If complete, review the case

    2. If you approve, reassign the case back to the TE with a case message stating, "Form 13549 referral approved, close the CII case."

    3. Complete Form 13549 Section III item 2 c and send the case to the appropriate fraud advisor based on your site. Your site’s advisor can be found using this link Campus Fraud Examination and Fraud Enforcement Advisor Contacts

    4. If you don't approve, complete Form 13549 Section III Item 2 a, and Section V and e-mail the form back to the TE. Reassign the case back to the TE with a case message stating, "Form 13549 referral denied, continue processing."

  3. When the lead returns the case, take the following action:

    1. If the referral is approved, leave a case note stating, "Form 13549 referral" and close the case

    2. If the referral is denied, continue process per normal procedures

MEFS case

  1. The tax examiner must:

    1. Complete Form 13549, Sections I, II, Section III item 1, and Section IV. In Section IV, make the following notations:

      • The case is on CII

      • CII case ID

      • Describe the suspicious elements on the case. Refer to page 4 of Form 13549

    2. Leave a Case Message stating, "Form 13549 approval request."

    3. Suspend the case to your lead and send a secure e-mail with Form 13549 attached. Remember to indicate the CII Case Id in the e-mail

  2. The lead must:

    1. Verify Form 13549, Sections I, II, Section III item 1, and Section IV have been completed correctly. If incomplete, return to the TE for corrections. If complete, review the case

    2. If you approve, take the following actions:

      • Reassign the case back to the TE with a case message stating, "Form 13549 referral approved, close the CII case."

    3. Complete Form 13549 Section III item 2 c and send the case to the appropriate fraud advisor based on your site. Your site’s advisor can be found using this link Campus Fraud Examination and Fraud Enforcement Advisor Contacts

    4. If you don't approve, take the following actions:

      • Complete Form 13549 Section III Item 2 a, and Section V. Then e-mail the form back to the TE

      • Reassign the case back to the TE with a case message stating, "Form 13549 referral denied, continue processing."

  3. When the lead returns the case, take the following action:

    1. If the referral is approved, leave a case note stating, "Form 13549 referral" and close the case

    2. If the referral is denied, continue process per normal procedures

Disaster Claim Screening

(1) A qualified disaster loss is an individual’s casualty or theft loss of personal-use property that’s attributable to a major disaster declared by the President under section 401 of the Stafford Act in 2016, and January 1, 2018, through February 18, 2020. Verify the taxpayer had a loss in a qualified disaster area via the IRS Disaster Assistance Program.

(2) The Disaster Tax Relief Airport and Airway Extension Act of 2017, the Tax Cuts and Jobs Act (TCJA), the Bipartisan Budget Act of 2018, and the Further Consolidated Appropriations Act, 2020 provide special rules for some qualified disaster losses. For a list of the qualifying disasters, see the IRS Disaster Assistance Program. The special rules include:

  • The $100 limitation per casualty increased to $500

  • The 10 percent of AGI limit doesn't apply

  • The standard deduction is increased by the net qualified disaster loss

A qualified disaster loss is a personal casualty loss caused by:
  • A federally declared disaster that occurred in 2018 or 2019, but before December 21, 2019

  • A federally declared disaster that occurred beginning January 1, 2020, but before February 26, 2021

  • Hurricane Ida disaster after August 28, 2021

(3) For tax years 2018 through 2025, an individual’s loss of personal-use property is deductible only if the loss is attributable to a federally declared disaster.

Exception: Personal casualty or theft loss can only be deducted to the extent of casualty gains.

(4) Taxpayers who live in a Federal "Declaration of Emergency or Major disaster" area may file disaster claims. The IRS may place a -O or -S freeze on the module for the zip codes of the affected areas to indicate the taxpayer resides in a disaster area. Disaster claims are identified by either:

  • -O and/or -S freeze on the module

  • Taxpayer mentions the loss is attributable to a federally declared disaster

(5) When instructed to send a disaster claim to AM, use category code "KATX" if the disaster claim meets the criteria listed in paragraph 2 above, and use category code "DSTR" for all other cases.

(6) If a TC 150 hasn’t posted on a disaster claim, send the case to AM.

(7) Screen the case for CAT-A criteria. Refer to IRM 3.11.6.7.14, Category A (CAT-A) Criteria Screening.

(8) Taxpayers claiming a disaster loss must file Form 4684, Casualties and Thefts. The taxpayer may file a claim for the year of the disaster or may elect to claim the loss in the tax year preceding the disaster year.

If ...

Then ...

The loss is claimed for the tax year in which the disaster occurred

The return must be filed within three years of the due date of the return for the tax year in which the disaster occurred, without extensions.

The loss is claimed for the tax year preceding the tax year in which the disaster occurred

The election must be made on or before 6 months after the due date for filing your original return (without extensions) for the tax year in which the disaster occurred.

A disaster claim isn’t filed within the timeframes above

Send the case to AM.

The disaster claim is timely filed

Process the claim following IRM 3.11.6.16.2, Processing a Disaster Claim.

Example: A disaster occurs in August 2020, and the loss is sustained in 2020. The taxpayer can elect to timely file the disaster loss for 2019 until October 15, 2021. Alternatively, the taxpayer could choose to file the loss for the 2020 tax year and has until April 15, 2024, to claim the loss via an amended return.

(9) Correspond using Letter 324C if:

  • The Form 4684 is missing

  • The disaster claim is missing a signature. Suspend the return until you secure a signature only on refund returns
    - If a reply is received within 45 days, continue processing the return and input under Blocking Series 05
    - If no reply is received after 45 days, send a Letter 916C, per IRM 3.11.6.10.8, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP). Input a TC 290 .00 to file the return

  • The federally declared disaster designation isn't listed in Section A(1) of Form 4684 (for 2018 through 2025)

(10) Follow normal processing procedures if the return isn't a disaster claim as defined in (1) or (2) above.

Note: A non-disaster claim is a casualty loss that isn't attributable to a federally declared disaster.

Carryback and Carryforward Screening

(1) ALL Carryback or Carryforward (CB/CF) claims are sent to AM.

Note: If the case is 60 days or less before the ASED expires, or if the ASED has expired, leave a case note stating, "CB/CF/Statute Imminent". Leave a CC ACTON history item "STAT IMNT".

(2) Identify if the claim is Carryback or Carryforward. Then reassign the case to the appropriate queue per IRM 3.11.6.9.1, MEFP Reassignment and Reroute Guide, or IRM 3.11.6.9.2, MEFS Reassignment and Reroute Guide, as appropriate.

Note: For more information on how to identify a Carryback or Carryforward claim, see Technical Communication Document (TCD) 0212

.

(3) A taxpayer who has an overpayment of tax as a result of a Net Operating Loss (NOL), Net Capital Loss (NCL), Unused Credits, or a Claim-of-Right adjustment can file an application or claim, also referred to as a carryback claim (RINT) or tentative refund (TENT), for adjustment or refund. The tax year in which the loss occurred is the loss year. The tax year the loss is applied to is the gain year.

(4) An NOL occurs when deductions exceed income from all sources. In computing an NOL, non-business deductions, such as the deduction for mortgage interest on a personal residence, are deductible only to the extent of non-business income, such as investment income on a personal investment. Deductions that relate to a trade or business, work as an employee, or casualty or theft are not limited in computing an NOL.

Note: For 2018 through 2025, miscellaneous itemized deductions such as the deduction relating to work as an employee are not allowed, and thus are not considered in determining an NOL for those years. For 2021 and after, most NOLs may only be carried forward. After 2020, only NOLs attributable to the trade or business of farming and NOLs incurred by non-life insurance companies are eligible for carryback.

.

Exception: The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) of 2020, enacted March 27, 2020, temporarily repealed some of the TCJA provisions that limited carrybacks, including the disallowance of NOL carrybacks for entities other than farming businesses and non-life insurance companies. For claims involving an NOL incurred in a tax year beginning in 2018, 2019, or 2020, see IRM 21.5.9.5.10.8.

(5) A RINT is claimed on Form 1040-X, U.S. Individual Income Tax Return, an amended Form 1040, U.S. Individual Income Tax Return, an amended Form 1040-SR, U.S. Tax Return for Seniors, or an amended Form 1040-NR, U.S. Nonresident Alien Income Tax Return, resulting from a carryback of:

  • An NOL

  • An NCL

  • Unused general business credits and other credits

  • Section 1256 contract losses

  • Claim-of-right

(6) A TENT is claimed on Form 1045, Application for Tentative Refund. A Form 1045 can be filed by individuals, estates or trusts to apply for a quick tax refund resulting from the carryback of:

  • An NOL

  • Unused general business credits

  • A net section 1256 contract loss

  • An overpayment of tax due to a claim of right adjustment under section 1341(b)(1)

(7) An NOL occurs when certain deductions exceed income from all sources. Only deductions that relate to a trade or business, work as an employee, or casualty or theft losses can create an NOL. Once computed, an NOL is carried to other tax years as an NOL deduction. An NOL deduction reduces the taxable income for the taxable year to which the NOL is carried and may allow a refund for taxes already paid if the NOL is carried back to an earlier year. Any NOL remaining after computing the amount of the NOL absorbed in preceding years may be carried to later years.

Note: Miscellaneous itemized deductions such as work as an employee are disallowed for tax years 2018 through 2025 and thus are not considered in determining an NOL for those years.

(8) An NCL for individuals occurs when capital losses exceed capital gains, plus a limited amount of ordinary income ($3,000 Married Filing Joint, or $1,500 Married Filing Separately). A NCL can only be carried forward on an IMF (Individual Master File) return.

(9) Unused general business credits and other credits.

Credits

Carry Back

Carry Forward

Form 1116, Foreign Tax Credit

Note: Certain taxpayers may file Form 1118, Foreign Tax Credit - Corporations. Route these cases to AM.

1 year

10 years

Form 3800, General Business Credit

1 year

20 years

Form 5695, Residential Energy Credits

No

Unlimited
(until used)

Form 8396, Mortgage Interest Credit

No

3 years

Form 8839, Qualified Adoption Expenses

No

5 years

Form 8859, Carryforward of the District of Columbia First-Time Homebuyer Credit

No

Unlimited
(until used)

(10) An individual taxpayer can carryback section 1256 contract(s) losses three years but can only apply them to section 1256 contract(s) gains.

(11) A claim of right adjustment under IRC 1341(b)(1) is mentioned in the explanation of changes or attachments.

(12) Indications that a taxpayer is trying to take a carryback are:

  • The Form 1040-X line 1 carryback box is checked

  • The Form 1040-X line 7 carryback box is checked

  • A notation of NOL Carryback on the return, in the Form 1040-X, Part III, Explanation of Changes, or other attached documents

  • Form 1045, Application for Tentative Refund, and/or supporting schedules (Schedule A-NOL, Schedule BNOL Carryover, or Schedule D) are attached

  • Schedule K-1 from a partnership, S corporation, estate, trust, or similar wording is attached for the year of the loss

  • Typically, section 1256 contract losses are reported on Form 6781, Gains and Losses from Section 1256 Contracts and Straddles, with box D checked. The losses might also be mentioned in the explanation of changes or other attachments

  • Claim-of-right adjustment under IRC 1341(b)(1) is mentioned in the explanation of changes or attachments.

    Note: A Claim of Right Adjustment can be entered on line 2 or line 15 of the 1040-X, with an amount in an attached Schedule 3 (Form 1040), line 13b, or Schedule A (Form 1040) line 16.

  • Form 1116, Foreign Tax Credit. Part III line 10

  • Form 3800, General Business Credit, Part I lines 5, Part II line 35, and Part III box D is checked

(13) Indications that a taxpayer is trying to take a carryforward are:

  • A notation of NOL Carryforward, or Carryover on the return, in the Form 1040-X, Part III, Explanation of Changes, or other attached documents

  • A notation of an election to forgo the carryback period for any tax year and carry the entire NOL forward

    Reminder: Check TRDBV for e-filed returns look for the literal "ELECTION". If present, the election has already been made. Don't send the as CB/CF.

  • Form 1040 has a change on line 21, Other income

  • Schedule K-1 from a partnership, S corporation, estate, trust, or similar wording is attached for the year of the loss

  • Typically, section 1256 contract losses are reported on Form 6781, Gains and Losses from Section 1256 Contracts and Straddles, with box D checked. The losses might also be mentioned in the explanation of changes or other attachments

  • Claim-of-right adjustment under IRC 1341(b)(1) is mentioned in the explanation of changes or attachments. The taxpayer might mention Regulation 5.6.411.1(d)

    Note: A Claim of Right Adjustment can be entered on line 2 or line 15 of the 1040-X or Schedule A line 16.

  • Form 1116, Foreign Tax Credit, Part III line 10

  • Form 3800, General Business Credit, Part I line 4 or Part I line 5 box is checked, Part II line 34 or Part II line 35 box is checked, Part III box C is checked, and Part III credit identified as "carryforward only"

  • Form 5695, Residential Energy Credits, Part I lines 12 and 16

  • Form 8396, Mortgage Interest Credit, Part I lines 4, 5 and 6, and Part II lines 14, 16, and 17

  • Form 8839, Qualified Adoption Expenses, Part II line 13

  • Form 8859, Carryforward of the District of Columbia First-Time Homebuyer Credit

(14) Don't treat the following claims as CB/CF claims:

  • The term "carryforward" can be used when identifying certain credits that can apply to future tax years. Since these are not restricted interest claims they are not CB/CF claims

  • Schedule D loss that exceeds the $3,000 loss limit. Taxpayers are entitled to "roll-over" or "carryforward" any Schedule D loss that is greater than $3,000. Process these cases with RC 013

  • Carryover of an IRA

  • Schedule A, Itemized Deductions, with an entry in the Gifts to Charity section on "Carryover from prior year."

  • Cases where none of the CB/CF issues are changing (e.g., An NOL is indicated on line 21 of Schedule 1 but isn't changing)

Identity Theft (IDT) Screening

(1) Identity Theft (IDT) can be indicated by the taxpayer’s explanation, by markers on the account, or by suspicious changes identified by tax examiners.

(2) Accounts the IRS has identified as IDT contain one of the following indicators. If one of the following indicators is found, see paragraphs 3 and 7 below.

  • CC ENMOD, IMFOL, or TXMOD: TC 971 with AC 506, 522 (with the literals UNWORK or IRSID), or 524 (if the 1040X is for a tax year after the date of death). See paragraph 3 below for additional information

    Note: The Secondary Date (SECONDARY-DT>) field of one of the above indicators reflects the tax year affected by identity theft. If the tax period in question matches the year of the Secondary Date, see paragraphs 3 and 7 below.

    Exception: AC 524 may or may not have a SECONDARY-DT field entry. AC 524 is an identity theft indicator used to lock the account of deceased taxpayers. It prevents a deceased taxpayer’s TIN (SSN or ITIN) from being used as the primary, secondary, or dependent TIN on a current or subsequent year federal income tax return. The TC 971 AC 524 indicator is applied systemically to the account and is effective the following year after the date of death.

    Example: Taxpayer’s date of death is 6/03/2020. A return for TY 2020 can post but a return for TY 2021 won’t.

  • CC TXMOD or IMFOLT: TC 971 AC 111

  • CC IMFOLI: MFT 32 is indicated for the Tax Year and No TC 150 is present on MFT 30. See paragraph 7 below

Note: The IDT literal on CC ENMOD, CC IMFOLE, or other TC 971 Action Codes should not be used as an IDT indicator.

(3) Verify IDT indicators have not been reversed prior to routing. If a TC 972 is present reversing the IDT indicator, don't route the return unless there are additional indicators present.

(4) A taxpayer can self-identify as a victim of IDT by:

  • Stating in the Explanation of Changes on Form 1040-X or a separate statement

  • Completing Form 14039, Identity Theft Affidavit

  • Responding to IRS correspondence related to IDT

(5) If the taxpayer indicates their dependent is a victim of IDT, send the case to AM. The taxpayer can indicate their dependent is a victim of IDT by:

  • Stating in the Explanation of Changes on Form 1040-X or a separate statement

  • Completing Form 14039, Identity Theft Affidavit

  • Responding to IRS correspondence related to IDT

(6) Tax Examiners may identify suspected IDT when the return doesn't master file verify and when certain account changes seem suspicious such as large, unusual or questionable line-item changes. When this occurs use the following research steps to aid in determining if the return should be routed as IDT:

  1. Use CC RTVUE to verify:
    - Address for the first return(s) filed
    - Dependents
    - Type of Income
    - Filing Status
    - Schedules and Forms filed

  2. Use CC TRDBV to verify:
    - Significant changes in the filing history
    - Occupation
    - Requested method of refund payment
    - Tax Preparer
    - Multiple attempts to file a rejected return

  3. Use CC DDBCK to verify:
    - Dependents and/or credits claimed on the original return

  4. Use CC IMFOLI to verify:
    - Number of years the TIN has been used
    - Filing status changes
    - Method of filing: paper or e-file

  5. Use CC IRPTR to verify:
    - Comparative review of reported income and payor information
    - Previous and current employer
    - Previous address

Reminder: Before routing as IDT, you must have multiple suspicious changes between the original filing and the amended filing.

(7) Once a return is identified as being an IDT return:

If ...

Then ...

Form 1040-X

  1. Input "IDT" in the case notes.

  2. Send the case to AM.

Form 1040 series

  1. In the upper left-hand corner of the return notate PAO (Process as Original).

  2. Circle out any notation that suggests the return was previously filed.

  3. Send the case to Batching.

Form 1040-X with Form 1040

  1. If a TC 150 is posted (or pending):

    1. Input "IDT" in the case notes.

    2. Send the case to AM.

    If no TC 150 is posted or pending:

    1. "X" Form 1040-X.

    2. Edit PAO in the upper left-hand corner of the Form 1040.

    3. Circle out any notation that suggests the return was previously filed.

    4. Send the case to Batching.

Undeliverable

Send the case to Entity.

Statute returns

Send the case to IDTVA Statute:

  • Austin - 6539 AUSC

  • Kansas City - 6507 C2 KCSC

  • Ogden - 6507 C2 KCSC

  • Memphis - 6539 AUSC

Statute Review Screening

(1) Beginning January 1, 2024, all returns for tax year 2020 and prior are considered statute year returns.

(2) Send any statute year case involving any of the following to AM:

  • A signed consent or request to extend the statute of limitations

  • Filing status changes to MFJ

  • Cases requiring a manual refund

  • A statement of Financial disability

(3) If the case is a Substitute for Return (SFR), see IRM 3.11.6.7.18.3.5, Automated Substitute For Return (ASFR) and Non-Filer Return (NFR) Screening.

(4) Per IRM 25.6.1.9.9, Procedures for Processing Amended Returns - in General, if a tax increase or credit decrease is required and the ASED is within 90 days of expiration, the case must be sent to the Statute function. Cases where the ASED is within 90 days of expiration or expired are considered statute imminent (SI) cases. Amended returns that are SI must be hand carried by a manager to Statute, per IRM 25.6.1.9.9.2, After Hours and Imminent Assessments.

Exception: The hand carry requirement doesn't apply to cases on the CII system.

(5) IDRS research is required to determine if the amended return is a tax increase or credit decrease and to verify the ASED. When verifying the ASED, use today’s date.

Exception: A claim to decrease withholding isn't considered a credit decrease and is processable without statute involvement.

If IDRS shows Form 1040-X ...

And the ASED ...

Then ...

Line 11 is a total tax increase

Expired

Take the following action:

  1. Input a TC 971 AC 014

  2. Suspend the case to Statute.

Line 14 or line 15 is a refundable credit decrease

Note: Be sure to consider hidden changes to refundable credits.

Expired

Take the following action:

  1. Input a TC 971 AC 014.

  2. Suspend the case to Statute.

Line 11 is a total tax increase and line 14 or line 15 is a refundable credit decrease

Reminder: Be sure to consider hidden changes to refundable credits.

Expired

Take the following action:

  1. Input a TC 971 AC 014.

  2. Suspend the case to Statute.

Line 11 is a total tax increase

Expires in 90 days or less

Take the following action:

  1. Input a TC 971 AC 014.

  2. Suspend the case to Statute.

Line 14 or line 15 is a refundable credit decrease

Reminder: Be sure to consider hidden changes to refundable credits.

Expires in 90 days or less

Take the following action:

  1. Input a TC 971 AC 014.

  2. Suspend the case to Statute.

Line 11 is a total tax increase and line 14 or line 15 is a refundable credit decrease

Reminder: Be sure to consider hidden changes to refundable credits.

Expires in 90 days or less

Take the following action:

  1. Input a TC 971 AC 014.

  2. Suspend the case to Statute.

Line 11 is a total tax increase

Expires in 91 days or more

Process per IRM 3.11.6.16.1, Processing Statute Cases.

Line 14 or line 15 is a refundable credit decrease

Expires in 91 days or more

Process per IRM 3.11.6.16.1, Processing Statute Cases.

Line 11 is a total tax increase and line 14 or line 15 is a refundable credit decrease

Expires in 91 days or more

Process per IRM 3.11.6.16.1, Processing Statute Cases.

(6) Follow the procedures in the table below in cases when a TC 150 isn't present:

Exception: Due to the continued impact of COVID-19 and processing delays, SP and AM have developed procedures for IMF tax year 2019 and prior year original delinquent returns (No TC 150) to bypass AM Statute clearance and be processed as original returns. In addition, any 2019 and prior year returns previously cleared by AM Statute won’t be returned by SP to AM for clearance again if the 90-day statute stamp has expired. If a tax return is later considered a barred assessment due to this process change, the barred case won’t be charged to SP or AM. The barred case is considered systemic and reported on the quarterly barred statute report under the responsible area "N/A".

If ...

And ...

Then ...

Statute year Form 1040

There's no Form 1040-X attached.

  1. Input a TC 971/014.

  2. Suspend the case to Statute per IRM 3.11.6.9.1, MEFP Reassignment and Reroute Guide, or IRM 3.11.6.9.2, MEFS Reassignment and Reroute Guide, as appropriate.

Exception: If the return is stamped "Statute Cleared" or "No Statute Issue(s)" send to Batching.

Statute year Form 1040-X

There's an original Form 1040 or an "As Amended" Form 1040 is attached

  1. Follow the procedures in IRM 3.11.6.5.2, Form 1040 Attached to Form 1040-X, paragraph (5) except suspend the case to Statute Unit for clearance.

  2. Input a TC 971 AC 014.

  3. Suspend the case to Statute per IRM 3.11.6.9.1, MEFP Reassignment and Reroute Guide, or IRM 3.11.6.9.2, MEFS Reassignment and Reroute Guide, as appropriate.

Exception: If the return is stamped "Statute Cleared" or "No Statute Issue(s)", then send to Batching. When routing a no TC 150 case to Batching and there's an E- freeze on the account, input a TC 971 AC 002 to indicate the amended return is being reprocessed as the original (to post as TC 150). The TC 971 AC 002 releases the E– freeze. When inputting the TC 971 AC 002 take the following action:
• In the "TRANS-DT" field, input the TC 976/977 date associated with the case you’re processing as the transaction date.
• In the "XREF-TIN" field, input the TIN of the primary taxpayer.
Note: If the cross-reference TIN is the same as the account TIN, enter "R" to automatically populate the field.
• In the "XREF-TX-PRD" field, input the correct tax period.
Note: If the cross-reference tax period is the same as account tax period, enter "R" to automatically populate the field.

Statute year Form 1040-X

There's no Form 1040 attached

  1. Convert Form 1040-X to a Form 1040 or Form 6114.
    Exception: When using Form 6114, don’t X the Entity section.
    Reminder: If working a MEFS case, follow the association process in IRM 3.11.6.4.2, Association, Forms, Schedules, and Other Documents to CII Cases, prior to sending to Statute.

  2. Input a TC 971 AC 014

  3. Input a CC ACTON history of "X21502STAT."

  4. Suspend the case to Statute per IRM 3.11.6.9.1, MEFP Reassignment and Reroute Guide, or IRM 3.11.6.9.2, MEFS Reassignment and Reroute Guide, as appropriate.

Exception: If the return is stamped "Statute Cleared" or "No Statute Issue(s)", input a TC 971 AC 002 and use the posted TC 976/977 date as the transaction date. This is done to indicate the amended return is being reprocessed as the original (to post as TC 150) which releases the E– freeze. Then send to Batching.

(7) If an amended Form 1040 is received in the 1040-X unit and the amended Form 1040 is stamped ""Statute Cleared"", return the document to the Statute Unit.

Examination Case Screening

(1) Review all claims and amended returns for examination involvement.

  • An open TC 420 on the account

  • An open TC 424 on the account

  • A -L freeze on the account

(2) If a case meets examination criteria and it’s incomplete, correspond following IRM 3.11.6.10, Correspondence Procedures.

Caution: If the response to the correspondence is incomplete, send the claim to Exam.

(3) Use CC AMDISA to determine the AIMS status when a -L freeze is present on the account.

If ...

Then ...

There’s a CI SDC open control

Follow IRM 3.11.6.7.12 (3), Criminal Investigation (CI) Scheme Development Center (SDC) Screening.

There’s not a TC 420 or TC 424 on the account

Suspend the case the CAT-A.

There’s a -W freeze present

Send the case to AM as Out of Scope.

There’s an open control base or CC AMDISA, shows an appeals case (IDRS number 66XXX)

Send the case to AM as Out of Scope.

The AIMS status is 90

Send the case to AM as Out of Scope.

there's a TC 300 - 361 on the account

Send the case to AM as Out of Scope.

The AIMS status is 08 or less and CAT-A criteria is present.

Follow IRM 3.11.6.7.14, Category A (CAT-A) Criteria Screening.

The AIMS status is 08 or less and CAT-A criteria isn’t present.

Process as normal. If inputting an adjustment, use hold code 1.

The AIMS status is 09 or more, but less than 90

Take the following action:

  1. Input a TC 971 AC 013 and use the received date of the amended return for the transaction date.

  2. Send the case to Exam based on the current Employee Group Code (EGC) in AIMS. Use the following link to the EGC list found on the SERP Who/Where tab to see where to send the case. Exam Employee Group Code.

Frivolous Claims Screening

(1) A frivolous argument is used for the purpose of expressing dissatisfaction with the substance, form, or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. See paragraph 7 below for a list of frivolous arguments.

(2) A -E freeze is set by a posted TC 810 with a Responsibility Code (Res C). A TC 810 with Res C indicates a frivolous return, and the entire account is frozen. Adjustments shouldn’t be made to accounts showing an -E freeze. Send all cases with a TC 810 with a Res C to AM.

(3) F- freezes are set by a posted TC 971 AC 089 and indicates that a frivolous return has been received and the entire account is frozen. Adjustments aren’t made to accounts showing an F- freeze.

(4) Send any "suspicious" return or case with an F- freeze to the local Frivolous Return Program (FRP) Coordinator to review as follows:

  1. Input a case message stating the "case meets requirements to send to the FRP coordinator" and suspend the case to your lead or manager.

  2. The lead or manager must input a TC 971 with AC 013 with "SENT TO FRP" in the remarks area and forward the case to the local FRP coordinator.

(5) The FRP Coordinator reviews any case sent in which the taxpayer:

  1. Argues for any reason against filing a tax return or the paying of taxes.

  2. Uses one of the frivolous arguments or statements listed in paragraph 7 below.

  3. Marks out or alters in any manner, the penalty or perjury statement (i.e., the jurat) in the signature area.

(6) If a non-frivolous claim is received with an open control base to an employee in the FRP Unit (IDRS Numbers begin with 14867, 14868, or 14869) send the case to FRP at the following address:

IRS Frivolous Return Program
1973 N Rulon White Blvd
Mail Stop 4450
Ogden, UT 84404

Input a TC 971 with AC 013 and enter "Sent to FRP" in the remarks area.

(7) The following list includes Recognized known frivolous arguments made by both individuals and businesses are included and is not inclusive of all frivolous arguments. Notice 2010-33 also is a non-exclusive source for identifying frivolous arguments..

  • Alleged Churches/First Amendment - Taxpayer receives income from non-religious sources, may claim a vow of poverty, and may submit a tax return with all or substantially all of the gross income claimed as a contribution on Schedule A.

  • Altered Form - Taxpayer submits a tax return altering any or all line-items with the intent of showing non-compliance with the tax laws.

  • Altered Jurat/Uniform Commercial Code (UCC) 1-207 - Taxpayer submits a tax return that contains income and deductions and alters or lines through all or part of the jurat. The return may include a reference to UCC 1-207 or a statement that the return wasn't signed under penalties of perjury. The alteration may be located elsewhere on the return and an arrow to the jurat.

  • Amended Returns/Form 843 Claim - Taxpayer files an amended return or Form 843 to obtain a refund of all taxes paid in prior years based on a tax avoidance argument.

  • American Indian Employment Credit - Taxpayers submit returns and claims reducing taxable income by substantial amounts and citing an American Indian Employment Credit. Although there's an Indian Employment Credit available for business that employ American Indians or their spouses, there's no provision for its use by the actual employee.

  • Argument against Government Action/Inaction - Taxpayer claims a deduction or credit on the tax return based on dissatisfaction with government actions or spending.

  • Bosnian Refugees - Taxpayer filing claim eliminating tax based on their status as a Bosnian refugee.

  • Certain instances of misuse or excessive use of the section 6421 fuels credit.

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  • Challenges to Authority/Title 26 or "Law" in Other Documents - Taxpayer may argue that Title 26 of the United States Code (USC) isn't law because it was never enacted as named. They may also argue that other laws or documents prevent the IRS from assessing and collecting tax, such as the Bible, Bill of Rights, Declaration of Independence, etc.

  • Disclaimer - Taxpayer submits a disclaimer. The disclaimer states they "disclaim the liability of the tax due", making the liability on the tax return zero.

  • Employment Tax/CFR 1.861 - No employer is legally obligated to withhold income or employment taxes on employees’ wages.

  • Erroneous claims that taxes are only owed by persons with a fiduciary relationship to the United States or the IRS.

  • Federal Reserve Notes Are Not Legal Tender - Taxpayer argues that Federal Reserve notes are not money, so they are not income when received.

  • Fifth Amendment - Taxpayer makes an improper blanket assertion of the Fifth Amendment right against self-incrimination as a basis for not providing financial information.

  • Form 1099 MISC -Form 1099 MISC -The Frivolous Form 1099 is used to claim large refunds based on false income amounts and withholding. The false income typically is reported as Other Income. Typically, the Form 1099 MISC payer (issuer) is a large bank, loan, and/or mortgage company and the income and withholding may be substantiated on IRPTR. The fraudulent withholding is generally 33 percent of the reported income but may be up to 100 percent. The taxpayer may include other issues on these fraudulent claims.

  • Form 2555 Deduction - Taxpayer submits a return showing income and deducts the same amount (or a large portion of the amount) by adding "Form 2555" to Schedule 1. Form 2555, Foreign Earned Income, is usually attached showing the taxpayer’s "foreign address" is in the United States. The taxpayer also shows his income on Form 2555 as "foreign earned income" even though the employer's address is also in the United States.

  • Fuel Tax Credit Returns - Taxpayers submit returns that reflect fuel tax claimed for occupations that would not justify the use of fuel used for non-taxable purposes, such as hairdressers, housekeepers, nurse, etc. Realistically, the taxpayers would not have money sufficient to live on, if indeed they had purchased the amount of fuel on which they claimed the credits. Therefore, the claims remain so far beyond a reasonable range as to doubt good faith on the return in general.

  • In Lieu of - Taxpayer submits a document containing personal identifying information and a summary of income received "in lieu of" an official income tax form.

  • IRC 1001 -Taxpayer claims on Schedule A under "Other Miscellaneous Deductions" no gain realized for even exchange of property-Labor (property)-Employer's (property) with NO GAIN REALIZED Butcher's Union Co. v. Crescent City Co., 111 US 746 S.CT.Rptr., pp.660-661.

  • IRC 83 - Claims, generally in the form of Form 843, Claim for Refund and Request For Abatement, request abatements of previously assessed taxes and/or penalties using IRC 83 as justification. The claims further describe that the abatement is based on an allegation that the taxpayer previously failed to compute, under IRC 83, the amount of property transferred in connection with the performance of services.

  • IRC 1341 - Taxpayer claims compensation for personal labor isn't taxed by Title 26, IRC 1341, sometimes arguing that the taxpayer has a "claim of right" to exclude the cost or value of the labor..

  • IRC 3121 - Taxpayer contends that IRC 3121 exempts the Federal Insurance Contribution Act (FICA) portion of earnings from the definition of "wages" and therefore from "gross income" for federal income tax purposes. The taxpayer attempts to reduce taxable income by their portion of withheld Social Security tax.

  • IRS is a Private Organization/Collects Tribute, Not Taxes - Taxpayer argues that the IRS is an entity named the Internal Revenue and Tax Service, Inc. and since the IRS deposits its revenues in the Federal Reserve Bank, it is a collection agency for the Federal Reserve Bank. Additionally, the taxpayer argues the Department of Treasury is part of the United Nations and secretly leading the tax-paying public into a "New World Order".

  • Native American Indian Treaty- The filings usually include Form 1099-MISC or other income documents that include withholding and results in a refund.

  • Mariner's Tax Deduction (or the like) related to invalid deductions for meals.

  • Misinterpretation of the 9th Amendment to the U.S. Constitution Taxpayer's objection to military spending.

  • Non-negotiable Charge Back - Taxpayer attempts to sell their birthright back to the government for a large dollar amount and requests that a "Treasury Direct Account" be set up to hold the money.

  • Not a Citizen/Free Citizen/Not a Resident of Federal Zone - Taxpayer argues they are not a citizen of the United States and received no income or benefits from sources within the United State.

  • Not a Person or Individual - Taxpayer argues that he or she isn't a "Person" or "Individual" within the meaning of the IRC; therefore, he or she isn't subject to income taxes.

  • Obscene, Vulgar, Harassing - Taxpayer submits documents or other materials indicating that non-filing is due to dissatisfaction with tax policies or taxation in general. Often this argument is expressed in an extremely demeaning manner with obscene, vulgar, or crude language and characters.

  • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Example: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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  • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  • Outlandish and/or Unsubstantiated Credits - Taxpayers submit returns and claims that generally reflect income, but also claim the exact amount of income entered as withholding. Oftentimes the filing contains Forms 1099-OID (Original Issue Discount). In some instances, the 1099-OID is shown generated to a payee unrelated to the taxpayer (such as the Department of the Treasury or various judges or attorneys), yet the withholding is claimed on the taxpayer’s return. The refunds claimed, resulting from these filings, are large.

  • Prisoners and substitute W-2-- Prisoners supplying a substitute W-2 (Form 4852) with the explanation portion of the Form 4852 stating the income is based on computation of minimum wage for hours worked within the prison. the Form 4852 lists a withholding amount that allegedly represents the amount an employer would withhold from an employee’s wages if working for minimum wage. The inmate then claims a refund based on the data for income and withholding they say that the prison should have reported. Prisons never withhold tax from pay and don't issue Form W-2.

  • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  • Services Not Taxable/Thirteenth Amendment/Form of Servitude - Taxpayer argues that income results from the sale of goods; therefore, the value of services isn't taxable. This includes indentured servitude arguments and barter offsets. The taxpayer may also argue that the Thirteenth Amendment outlawed slavery. They may claim to be a "natural enfranchised individual and freeman" who is a resident of a state and therefore a nonresident alien for the purpose of the IRC.

  • Sixteenth Amendment - Taxpayer argues the Sixteenth Amendment wasn't properly ratified; therefore, the federal government doesn't have the legal authority to collect an income tax without apportionment.

  • Taxes are Voluntary/Law doesn't Require - Taxpayer submits a tax return, amended tax return, or correspondence that argues income taxes are voluntary.

  • Thumbprint in lieu of a signature - Thumbprint is present in the signature area on a return.

  • Trusts - Taxpayer attempts to flow income through the trust to avoid personal tax liability. Promoters use "business trusts" as a means of evading income tax.

  • U.S. vs. Long - Taxpayer submits a tax return with zero money amounts and refers to U.S. vs. Long.

  • Unsigned Tax Returns - Taxpayer submits a completed unsigned tax return. A statement why the return isn't signed is attached or added to the return indicating disagreement with the tax system.

  • Unsupportable non-taxable compensation - Taxpayer reports wages but deducts all or a portion of the income as non-taxable compensation.

  • Untaxed - Taxpayer argues that they should be "untaxed" and attempts to drop out of the Social Security system. They withdraw or rescind their Social Security Number (SSN), claiming they are a sovereign citizen.

  • Valuation - Taxpayer argues that income isn't taxable because of the declining fair market value of the dollar. They state the dollar isn't backed by gold/silver, or the value of services is offset by the value of the labor (barter income).

  • Wages Deducted in Cost of Goods Sold - Taxpayer submits a return with a Schedule C claiming a deduction equal, or nearly equal, to the amount reported as wage income. The deduction is usually included in the cost of goods sold but could appear under a different deduction category.

  • Wages/Receipts Not Income - Taxpayer argues that salaries and wages are not "income" within the meaning of the Sixteenth Amendment. Taxpayer may also argue that labor worth a certain amount is exchanged for money worth the same amount, so there's no income to be taxed.

  • Wages, tips, and other compensation received for the performance of personal services - Taxpayer argues that the wages, tips or other compensation received are not taxable income or are offset by an equivalent deduction for the personal services rendered, including an argument that a taxpayer has a “claim of right” to exclude the cost or value of the taxpayer’s labor from income or that taxpayers have a basis in their labor equal to the fair market value of the wages they receive, or similar arguments described as frivolous in Rev. Rul. 2004–29, 2004–1 C.B. 627, or Rev. Rul. 2007–19, 2007–1 C.B. 843.

  • Zero Returns - Taxpayer submits a tax return with zero money amounts and attaches a statement claiming there's no section of the IRC that establishes an income tax liability. The statement may also contain arguments regarding the definition of income. Taxpayer may cite the Latin phrase "Nunc Pro Tunc" ("Then and Now") on the return, Form 1096 and/or 1099. Taxpayer may list all zeros and claim a refund of all Federal Withholding, or claim an amount for wages, AGI and Standard Deduction, enter no tax and claim a refund of all Federal Withholding, or taxpayer claims wages and AGI, but carries AGI to refund line.

  • Zero Wages on a Substitute W-2 - Filer generally attaches either a substitute Form W-2, Form 1099, or Form 4852 that shows "$0" wages or no wage information. Entries are usually for Federal income tax withheld but can be Social Security tax withheld or Medicare tax withheld. An explanation on the Form 1040-X or Form 4852 may cite "statutory language behind IRC 3401 and IRC 3121" or include some reference to the company refusing to issue a corrected Form W-2 for fear of IRS retaliation.

Criminal Investigation (CI) Scheme Development Center (SDC) Screening

(1) The Criminal Investigation (CI) Scheme Development Center (SDC) identifies and assembles information on individuals and entities involved in civil and criminal noncompliance with the Internal Revenue Code (IRC) and other related statutes.

(2) Send claims meeting SDC criteria to your local SDC:

  • Austin: ≡ ≡ ≡ ≡ ≡ ≡ ≡

  • Kansas City: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  • Ogden: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  • Memphis: Follow instructions for Austin

(3) Use the following table to determine if the case must be sent to CI SDC:

If ...

Then ...

IDRS shows a "-Z or Z-" freeze

Send to the SDC. Input a CC ACTON history item To CISDC.

Exception: If the tax module shows Project Code 0173, 0263, 0390, 0584, 0603, or 0611 on CC AMDISA, send the case to CAT-A regardless of the claim amount.

Exception: If the return meets both Frivolous and SDC criteria, send the case to Frivolous.

CC TXMOD has an unreversed pending or posted TC 914 or TC 916

Send to the SDC. Input a CC ACTON history item "To CISDC".

CC ENMOD has an unreversed pending or posted TC 918

Send to the SDC. Input a CC ACTON history item "To CISDC".

(4) Claims returned from the CI SDC may have a stamp indicating they have been reviewed.

If ...

And ...

Then ...

The CI SDC returns the claim with instructions for the 1040-X team to work the case

Other routing criteria is present

Follow normal processing procedures. The case should be annotated with the routing criteria and the CI SDC processing instructions should be left attached.

The CI SDC returns the claim with instructions for the 1040-X team to work the case

The processing instructions conflict with IRM instructions

Send the case to AM. The case should be annotated with the issue that doesn't meet SP 1040-X criteria and the CI SDC processing instructions should be left attached.

The CI SDC returns the claim with instructions for the 1040-X team to work the case

The case will be processed

Follow normal processing procedures and add "Per CISDC" in the remarks.

Note: When a Z freeze is present, the case must be manually input

CI SDC returns the claim with instructions for the 1040-X team to send the case to Files

 

Then input a TC 290 .00 and add "Per CISDC" in the remarks.

Return Integrity and Verification Operation (RIVO) Case Screening

(1) The Return Integrity Verification Operation (RIVO) identifies, and intercepts refunds from returns with questionable wage and/or withholding claims, which may include identity theft related issues.

(2) Use the following chart to on cases with RIVO involvement:

Note: RIVO should not receive any CP notices or returns that have already been stamped by RIVO.

If ...

And ...

Then ...

RIVO is holding the refund with a TC 971 AC 134

Note: Cases with a TC 971 AC 134 are pre-refund wage verification, not ID theft.

Wages and withholding in Column C of the Form 1040-X can be verified per CC IRPTR
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Process the Form 1040-X using normal procedures.

RIVO is holding the refund with a TC 971 AC 134

Note: Cases with a TC 971 AC 134 are pre-refund wage verification, not ID theft.

Wages and withholding in Column C of the amended return can’t be verified per CC IRPTR.

Take the following action:
Exception: If there's additional routing criteria and RIVO takes priority, then route the claim based on the second routing criteria. See IRM 3.11.6.7, Sorting, Routing, and Priority Screening, for routing priority.

  1. Adjust the account to the Form 1040-X figures following normal procedures.

  2. Use HC 4 to set the -K freeze.

  3. Open an IDRS control to:
    C#,AQC6X,A,AQC2
    1487877777,*

  4. Close the CII case.

RIVO is holding the refund with a TC 971 AC 134

Note: Cases with a TC 971 AC 134 are pre-refund wage verification, not ID theft.

There’s an AQC marker (TC 971 AC 122, 140, or 128) and the account has not been adjusted by RIVO
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Take the following action:
Exception: If there's additional routing criteria and RIVO takes priority, then route the claim based on the second routing criteria. See IRM 3.11.6.7, Sorting, Routing, and Priority Screening, for routing priority.

  1. Adjust the account to the Form 1040-X figures following normal procedures.

  2. Use HC 4 to set the -K freeze.

  3. Open an IDRS control to:
    C#,AQC6X,A,AQC2
    1487877777,*

  4. Close the CII case.

There's an open case to RIVO Automated Questionable Credit (AQC), QRPA, or the account was previously adjusted by the AQC program. (The account will show a closed AQC control with a TC 971 AC 122, 140, or 128.) (The TC 971 AC 128 must contain a MISC field of AQCPTC191 or AQCPTC195 and a TC 810 with a memo amount.)

The amended return:

  • Addresses income, withholding, or credits

  • Addresses the previously adjusted issues

  • Has Letter 4800C or Letter 3219C attached or mentioned.

Don't input an adjustment. Send the entire case to RIVO AQC program:
RIVO AQC Program
Stop 763 ATSC
4800 Buford Hwy
Atlanta, GA 39901

There's an open case to RIVO Automated Questionable Credit (AQC), QRPA, or the account was previously adjusted by the AQC program. (The account will show a closed AQC control with a TC 971 AC 122, 140, or 128.) (The TC 971 AC 128 must contain a MISC field of AQCPTC191 or AQCPTC195 and a TC 810 with a memo amount.)

The amended return is changing items other than income, withholding, or credits.

Follow normal processing procedures.
Note: For open controls, place the case in "B" status, input the adjustment, and then return the case to its original status.

There are Estimated Tax (ES) Payments on the module, but the taxpayer isn't claiming ES payments on the amended return. Or the taxpayer is claiming a small portion of the ES payments on the module.

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Send the case to your local RIVO. Input a CC Acton history item "TO RIVO."

  • Austin: 6574 AUSC

  • Kansas City: 6574 S-2 KCSC

  • Ogden: 9002 OSC

  • Memphis: 6574 AUSC

(3) When verifying documents on CC IRPTR, if an information document (IDOC) contains one of the following statements, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡:

  • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(4) Claims returned from RIVO may have a stamp indicating they have been reviewed.

If ...

And ...

Then ...

RIVO doesn't

  • Provide any specific processing instructions

  • Indicate "No RIVO Potential "or similar statement

The claim still appears suspicious

Elevate to your Lead or Manager. The Lead or Manager must check with the local P&A Analyst ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

RIVO indicates the wages and/or withholding can't be verified, 1040-X can't be verified/disallow, or similar wording

The wages or withholding are the only issue

Take the following action:

  1. Input a TC 290 .00.

  2. Send a Letter 916C using the following fill-in: We can’t verify your claim for wages or withholding. Please verify your information.

RIVO indicates the wages and/or withholding can’t be verified, 1040-X can’t be verified disallow, or similar wording

The claim has a mix of items that can or can’t be verified on IRPTR

Take the following action:

  1. Input the processable changes and allow items that can be verified through IRPTR.

  2. Disallow items that can't be verified on IRPTR. Send a Letter 106C disallowing the claim and input the adjustment per IRM 3.11.6.10.5, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP), using the following fill-in: We can’t verify your claim for (fill in the blank). Please verify your information.

RIVO indicates "RIVO is no longer interested in the return."

 

Follow normal processing procedures.

RIVO returns the claim with instructions for the 1040-X team to work the case

Other routing criteria are present

Follow normal processing procedures. The case should be annotated with the route criteria and the RIVO processing instructions should be left attached.

RIVO returns the claim with instructions for the 1040-X team to work the case

The processing instructions conflict with IRM instructions

Send the case to AM. The case should be annotated with the issue that doesn't meet SP 1040-X criteria and the RIVO processing instructions should be left attached.

RIVO returns the claim with instructions for the 1040-X team to work the case

The case will be processed
Note: If a Z freeze is present on the case, see IRM 3.11.6.7.12, Criminal Investigation (CI) Scheme Development Center (SDC) Screening.

Follow normal processing procedures and add "Per RIVO" in the remarks.

RIVO returns the claim with instructions for the 1040-X team to send the case to Files

 

Input a TC 290 .00 and add "Per RIVO" in the remarks.

Category A (CAT-A) Criteria Screening

(1) To determine if a case meets Category A (CAT-A) criteria, see IRM 21.5.3-2, Examination Criteria (CAT-A) - General, and IRM 21.5.3-3, Examination Criteria (CAT-A) - Credits. "CAT-A criteria" cited refers to the amount of the tax decrease, credit increase, or certain other changes. Criteria apply to both refund and balance due returns. Only complete claims can be referred to CAT-A. A claim is considered complete if it has all information required to process the return.

(2) Only complete claims can be referred to CAT-A. A claim is considered complete if it has all information required to process the return. If the claim is incomplete, correspond following IRM 3.11.6.10, Correspondence Procedures.

Caution: If the response to the correspondence is incomplete, send the claim to CAT-A.

(3) When screening a case for CAT-A criteria, ensure the change isolated from any other change on the return meets the criteria listed.

(4) If a CAT-A criteria is met and there is an increase to Earned Income Tax Credit (EITC), unless a CAT-A EITC exception is present, screen the case through CC DDBCK. If the case is selected, follow DDBCK Selected procedures in IRM 3.11.6.13.4 (7), Command Code DDBCK (Dependent Database Check). If the case is not selected, send the case to CAT-A.

(5) Don't apply CAT-A criteria to:

  • Combat Zone returns when the TP is actively serving in a Combat Zone. See IRM 3.11.6.16.4, Combat Zone

  • CP notices

  • Credits that are being disallowed

  • Credits that are being reduced below the CAT-A tolerance due to master file or math verification

(6) If the case is being forwarded to CAT-A, do not input a TC 971 AC 013.

(7) If a dependent’s TIN is being changed from an ITIN to SSN, follow IRM 3.11.6.13.1, Revoking a Dependent’s ITIN, before sending the claim to CAT-A.

(8) If the claim meeting CAT-A criteria is complete, follow the table.

If ...

Then ...

The CAT-A issue meets SP criteria

Suspend the case to CAT-A.

Caution: If Schedule C meets CAT-A criteria and EIC is increasing, input CC DDBCK to check the validation results prior to referring the case to CAT-A.

The CAT-A issue doesn’t meet SP 1040-X criteria

Send to AM as Out of Scope. Follow IRM 3.11.6.9.1, MEFP Reassignment and Reroute Guide, or IRM 3.11.6.9.2, MEFP Reassignment and Reroute Guide, as appropriate.

An AUR criteria is present per IRM 3.11.6.7.15, Automated Underreporter (AUR) Screening

Send to AUR following IRM 3.11.6.9.1, MEFP Reassignment and Reroute Guide, or IRM 3.11.6.9.2, MEFP Reassignment and Reroute Guide, as appropriate.

There’s also an out-of-scope issue present on the case

Send to AM as Out of Scope. Follow IRM 3.11.6.9.1, MEFP Reassignment and Reroute Guide, or IRM 3.11.6.9.2, MEFP Reassignment and Reroute Guide, as appropriate.

Automated Underreporter (AUR) Screening

(1) When working accounts with Automated Underreporter (AUR) involvement, research the account to determine where the account is in the AUR process. This can be determined by reviewing the AUR Process Code (PC) listed under the Transaction Code (TC) 922 on the account. The status of an AUR case is determined by the last PC posted. Use the table below when determining if the PC meets routing requirements to AUR.

Note: The process codes are the two-digit numbers below the TC 922.

If the last TC 922 process code is:

Then

No process code (PC) is shown or any PC not listed below

Process as normal.

01, 03, 06

Process as normal.

09

Process as normal.

07, 19, or 49

Process as normal.

10 –14, 16, or 21 – 29

Process as normal.

15 or 18

If the PC immediately preceding PC 15 or PC 18 is other than 01, 03, or 06, route as an open case. If the preceding PC isn't 01, 03, 06, process as normal.

17

Route as ID Theft. See IRM 3.11.6.7.8, Identity Theft (IDT) Screening.

35, 36, 38, 62–64, 66 or 82, 83, 85 or 86

Send the case to Exam per IRM 3.11.6.7.14, Examination Case Screening.

44, 72 or 84

Send the case to AM.

46, 65 or 76

Send the case to AM.

80

Send the case to AM.

30, 34, 54, 55, 57–60, 75, 77–79, 81, 95, 96, 97–99

Send the case to AUR as an open case.

96

If there’s an open control to an AUR employee on IDRS, send the case to AUR as an open case. If there’s no open control, process as normal.

47, 48, 51, 52, 70, 71, 73, 74, 91, 92 or 93

Process as normal.

20, 39, 53, 67- 69, 87 - 90, or 94

Send as a reconsideration case.

(2) If an AUR case meets CAT-A criteria, don't send the case to CAT-A. The case must be sent to AUR for CAT-A determination.

(3) When sending a CII case to AUR, determine the routing destination by using the first two digits of the TC 922 DLN and follow the table below.

If processing a ...

And the AUR case is ...

Then ...

MEFP case

An open case

Follow the table in IRM 3.11.6.9.1, MEFP Reassignment and Reroute Guide, and reroute per the AUR – Open Cases instructions.

MEFP case

A reconsideration case

Follow the table in IRM 3.11.6.9.1, MEFP Reassignment and Reroute Guide, and reroute per the AUR – Reconsideration Cases instructions.

MEFS case

An open case

Caution: If the return is in the "Attached Files" and not in the "Document Images" section of the CII case, follow the MEFP instructions above.

Follow the table in . IRM 3.11.6.9.2, MEFS Reassignment and Reroute Guide, and reroute per the AUR – Open Cases instructions.

MEFS case

A reconsideration case

Caution: If the return is in the "Attached Files" and not in the "Document Images" section of the CII case, follow the MEFP instructions above.

Follow the table in IRM 3.11.6.9.2, MEFS Reassignment and Reroute Guide, and reroute per the AUR – Reconsideration Cases instructions.

Accounts Management Case Screening

(1) Cases are sent to Accounts Management (AM) based on the issue, the dollar tolerance, IDRS conditions, and other various reasons.

(2) A TC 150 must be posted before sending a case to AM, unless specific instructions are provided.

(3) Don't input a TC 971 AC 010 when routing a case to AM.

(4) If there’s an open case to AM, send the case to AM.

(5) Send cases to Accounts Management for a Manual Refund if:

  1. The taxpayer requests the refund issued in a name other than shown on master file.

  2. The taxpayer requests the refund issued to a temporary address.

  3. Refund is less than one dollar.

  4. Refund is $10 million or more.

(6) SP 1040-X tax examiners process cases using CII, and during processing, CII imaged returns might be generated. Use the table below to determine how to process CII imaged returns:

If the CII image originated from...

Then ...

Another area

Send the case to AM.

Exception: If a CII imaged return is notated "Process as Original (PAO)" or similar verbiage and there's not a TC 150 posted or pending, then send the case to Batching. When needed, use the Prior Year and Conversion Form 1040 Edit Sheet for Tax Year YYYY. If the case is for the current year and the conversion form isn't available, then "dummy" a current year Form 1040 for processing.

SP 1040-X

Process following normal procedures.

Open Case and Open Control Base Screening

(1) Generally, if an account has an open control base on CC TXMOD you’ll send the return to the assigned employee or a specified department. An open case can be in any of the following status: "A" Active; "B" Background; "S" Suspense; or "M" Monitor.

Note: Don't route cases that are open in CC ENMOD.

(2) Cases in A or S status should be routed based on the ASSIGN-TO field of the open control.

(3) Don't send cases open in B or M status; continue to process if routing criteria isn't present.

(4) The following exceptions apply to A, B, S, and M status:

  1. If the open control is in B status due to a P- freeze/TC 841 and the case is a net refund, then send the case to AM.

  2. Refer cases with a category code NLUN to the assigned IDRS number to process.

  3. Cases open to Accounts Management should be sent to AM. See (7) below to identify Accounts Management cases, more Accounts Management routing criteria might be identified through research found in (6) below.

  4. For cases open to a 1040X SP employee see IRM 3.11.6.7.17.1, Cases Open to an SP 1040-X Tax Examiner.

  5. Cases open to RIVO AQC or QRPA should be screened following IRM 3.11.6.7.13, Return Integrity and Verification Operation (RIVO) Screening.

  6. For cases that are processable place the case in B status, input the adjustment, and then return it to its original status.

  7. Cases with Activity 9465 should be placed in "B" status and processed.

  8. Cases controlled to Appeals IDRS number 66XXX, send the case to AM.

  9. AUR controlled cases should be screened following IRM 3.11.6.7.15, Automated Underreporter (AUR) Screening.

(5) If the open control is assigned to your current or previous IDRS number, close your open control before continuing to take any action on the return.

(6) Use CC MESSG or the IDRS Unit and USR Database, IUUD, web site to determine the appropriate campus location and stop number based on the IDRS number in the ASSIGN-TO field of the open control.

Note: If unable to locate the stop number, see your lead.

(7) Accounts Management IDRS numbers are identified by the service center two-digit code and 301-399 series. For instance, a Customer Service Representative (CSR) in Kansas City would be 093XX. Submission Processing 1040X Units use the SC code and the 200-244 series. This includes cases open to the AM suspense queue that don't contain 301-399 series:

Campus

Generic IDRS number

Atlanta

0739900025

Andover

0848900000

Austin

0686100000

Brookhaven

0138640000

Cincinnati

0237500000

Fresno

1042000000

Kansas City

0938000000

Reminder: This number is also used by SP 1040-X. See IRM 3.11.6.3, Controlling Cases on the Correspondence Imaging Inventory (CII) System.

Memphis

0339300000

Ogden

0439800000

Philadelphia

0544300093

Cases Open to an SP 1040-X Tax Examiner

(1) If there’s a CII case open to another 1040-X SP tax examiner (TE) for the same tax year, reassign the case to the SP 1040-X TE with the oldest case control. If the other open case is in suspense to a SP 1040-X TE, refer your case to your lead or manager. The lead or manager must ensure the case in suspense is the oldest case. If the case in suspense is the oldest case, the lead or manager must take the following action:
a. Enter a case note that states, "Case reassigned to TE with the oldest case control."
b. Reassign the case to the TE with the oldest case.

Note: When using the CII auto-distribution function, cases for the same taxpayer are sent to the same TE.

(2) Ensure all open controls associated with the case(s) that you’re processing are closed. Associated cases are those that have an:

  • Open control to your local 1040-X department

  • Open XRET control base with an Activity that has a "SPX" designation and is assigned to a SP 1040-X employee or SP 1040-X queue

    Example: An Austin TE is working a MEFS case and notices there are two open controls. One of the open controls is for the MEFS case being worked, and the other is an XRET control assigned to the Kansas City generic queue. See Figure 3.11.6-1, The XRET Control and Open CII Case Match.

The XRET Control and Open CII Case Match

All Other Claims Screening

(1) Screen cases for all other specialized routing conditions.

Killed in Terrorist Action (KITA) Screening

(1) Send all claims identified (on the return or on IDRS) as Killed in Terrorist Action (KITA), Killed in Action (KIA) or Victim of Terrorist Attack to AM, notate "KITA" in the working trail.

Note: The literal "KITA" appears on CC ENMOD, CC IMFOLE, CC TXMOD and CC SUMRY as an indicator.

(2) Other terminology may include:

  • Anthrax

  • Oklahoma City

  • IRC 104(a)

  • 9 / 11

  • 911 Disability

  • 911 Rescue Workers

  • Publication 3920

  • September 11th Victim Compensation Fund

  • Tax Forgiveness Victims of Terrorist Act

  • World Trade Center (WTC)

  • Zadroga Act

(3) Place a CC ACTON history item, "2KITA", on CC TXMOD.

Affordable Care Act and Possible Health Professional Claim Screening

(1) The Affordable Care Act enacted April 2010 expanded tax benefits for health professionals working in some communities. Health care professionals who received student loan relief under various state programs and work in under-served communities may qualify for refunds on their 2009 federal income tax returns. If you receive the Form 1040-X, Amended U.S. Individual Income Tax Return, referencing the "Excluded student loan amount under 2010 Health Care Act", "Affordable Care Act", or "Student Loan Forgiveness", send the case to AM.

Collection Function Case Screening

(1) All amended returns must be screened for the following collection function criteria.

  • Compliance Services Collection Operations (CSCO)

  • Automated Collection Systems (ACS)

  • Offer In Compromise (OIC)

  • Field Collection Cases

  • Automated Substitute For Return (ASFR) and Non-Filer Return (NFR)

(2) When sending a case to one of the Collection functions listed in paragraph 1 follow the table. If the entire return is being routed to one of the collection areas described in paragraph 1 above, input a TC 971 AC 012.

If sending the case to...

Then ...

Compliance Services Collection Operations (CSCO)

Send the case using e-fax to the number specified per IRM 3.11.6.7.18.3.1, Compliance Services Collection Operations (CSCO) Screening.

Automated Collection Systems (ACS)

Send the case using e-fax to the number specified per IRM 3.11.6.7.18.3.2, Automated Collection Systems (ACS) Screening.

Offer In Compromise (OIC) Screening

Send the case using e-fax to the number specified per IRM 3.11.6.7.18.3.3, Offer In Compromise (OIC) Screening.

Field Collections

Send the case using e-fax to the number specified per IRM 3.11.6.7.18.3.4, Field Collection Case Screening.

Automated Substitute For Return (ASFR) and Non-Filer Return (NFR)

Send the case using e-fax to the number specified per IRM 3.11.6.7.18.3.5, Automated Substitute For Return (ASFR) and Non-Filer Return (NFR) Screening.

Compliance Services Collection Operations (CSCO) Screening

(1) The following must be detached from an amended return and sent to the Compliance Services Collection Operations (CSCO). See IRM 3.11.6.7.19.1, Working Trail and Action Trail, prior to sending to CSCO.

  1. Form 9465, Installment Agreement Request.

    Exception: Don't detach and send Form 9465 when:
    • Received with MeF amended returns (MEFP cases), continue processing. The MeF system automatically sends the CSCO a copy of the Form 9465. When Form 9465 is attached to a MeF case (MEFP case) as a PDF, a copy of the form must be sent to the CSCO.
    • When sending a case to be processed as an original.

  2. A written request for an Installment Agreement.

  3. CP 503 or CP 504, Taxpayer Notification of Federal Tax Not Received, with a statement of, or similar to:
    • Can’t pay
    • Won’t pay
    • Want to pay
    Form 9465 is attached

    Caution: If the case status is 22 or 24 in the "SC-STS" field on CC TXMOD or "STATUS" field on CC IMFOLT or the "STAT HIS" on CC IMFOLI, follow IRM 3.11.6.7.18.3.2, Automated Collection Systems (ACS) Screening. If the case status is 26, follow IRM 3.11.6.7.18.3.4, Field Collection Case Screening.

  4. CP 523, Past Due Payment Default Notice.

  5. Form 433-D, Installment agreement.

(2) Take the following action if Form 15103, Form 1040 Return Delinquency, or CP 59, First Notice - Return Delinquency, Unfiled Tax Return(s), is present and is:

  1. Attached to an amended return: disregard.

  2. Attached to an original return: send the case to Batching.

(3) When sending a case to CSCO, take the following action:

  • Research the Business Operating Division (BOD) code using the CSCO addresses found on SERP to identify the correct Service Center

    Note: The BOD code will be SBSE or W&I and is located in the "BOD-CD" field of CC TXMODA.

  • Identify the appropriate Service Center based on the state in which the taxpayer resides

  • Example: If the BOD code is W&I, and the taxpayer resides in TX, the case would be sent to the Atlanta Service Center.

(4) Follow the table below when a T- freeze is present.

If ...

Then ...

There’s not a Letter 1058, CP 90 or notation such as:
• Can’t pay
• Won’t pay
• Want to pay
Form 9465 is attached

Workable.

A Letter 1058, CP 90 is attached and there’s notation such as:
• Can’t pay
• Won’t pay
• Want to pay
Form 9465 is attached

See IRM 3.11.6.7.18.3.2, Automated Collection Systems (ACS) Screening.

Automated Collection Systems (ACS) Screening

(1) When T- freeze is present, review the case status in the SC-STS field on CC TXMOD or STATUS field on CC IMFOLT or the STAT HIS on CC IMFOLI shows the case is in Status 22 or 24, follow the instructions below.

And ...

Then ...

The IRS address is on the top of the letter

  • Detach the correspondence and send the case to the appropriate ACS support site based on the BOD-CD on CC TXMODA. The ACS support site can be found on SERP in the Who/Where tab under ACS Support and Status 22 TAS Liaisons.

  • Input TC 470, no closing code using CC REQ77.

  • Leave a working trail on the correspondence and the Form 1040-X. See IRM 3.11.6.7.19.1, Working Trail and Action Trail.

  • Continue processing Form 1040-X.

The IRS address isn't on the top of the Letter 1058 and correspondence is attached

Exception: If a letter or correspondence isn’t attached, continue processing Form 1040-X.

  • Research the appropriate ACS support site based on the BOD-CD on CC TXMODA. The ACS support site can be found on SERP in the Who/Where tab under ACS Support and Status 22 TAS Liaisons.

  • Detach the correspondence.

  • Input TC 470, no closing code, using CC REQ77.

  • Leave a working trail on the correspondence and the Form 1040-X. See IRM 3.11.6.7.19.1, Working Trail and Action Trail.

  • Mail the correspondence to the ACS Correspondence Address indicated on SERP.

  • Continue processing Form 1040-X.

(2) When sending a case to ACS, take the following action:

  • Research the Business Operating Division (BOD) code using the ACS CDP Coordinators site found on SERP to identify the correct Service Center.

    Note: The BOD code will be SBSE or W&I and is located in the "BOD-CD" field of CC TXMODA.

  • Identify the appropriate Service Center based on the state in which the taxpayer resides.

  • Example: If the BOD code is W&I, and the taxpayer resides in TX, the case would be routed to the Fresno Service Center.

Offer In Compromise (OIC) Screening

(1) The following should be sent to OIC if a -Y freeze is present on the module.

If ...

Then ...

There’s an unreversed TC 480 on the module but no TC 780.

The case is workable.

There’s an unreversed TC 480 on the module and a TC 780.

Send the case to the appropriate campus based on the Monitoring Offer in Compromise (MOIC) Compliance Campus Locations for Offers in Compromise. Offer-in-Compromise (OIC) Compliance Campus Locations for the Monitoring of Accepted Offers

(2) When sending a case to OIC, take the following action:

Field Collection Case Screening

(1) When T- freeze is present, review the case status in the SC-STS field on CC TXMOD or STATUS field on CC IMFOLT or the STAT HIS on CC IMFOLI shows the case is in status 26, follow the instructions below.

If ...

Then ...

The last four digits of the Collection-Asgmt>field is 8000 (xxx8000).

Note: The Collection-Asgmt>field is located at the top right-hand side of CC TXMOD.

Take the following action:

  • Research the first two digits of the DLN using the following link to determine where the case must be sent.
    ASFR Centralized Processing Sites

  • Input a TC 971 AC 012.
    Exception: Don't send returns with imminent or expired ASED. Suspend the case to Statute per IRM 3.11.6.7.9, Statute Review Screening.

The last four digits of the Collection-Asgmt>field isn't 8000 (xxx8000).

Take the following action:

  • Research the appropriate Revenue Officer Group office address using the following link.
    RO by TSIGN/ZIP/STATE

  • Input TC 470, no closing code, using CC REQ77.

  • Input TC 971 AC 012.

  • Send the entire case to the address obtained from SERP.

Note: If the Revenue Officer (RO) inquires why the 1040-X was sent to them, explain we can't process the amended return without their approval since it’s assigned to them.

(2) When sending a case to Field Collections, take the following action:

  • If the Collection-Asgmt>field is 8000 (xxx8000), research the first two digits of the DLN using the following link to determine where the case must be sent. ASFR Centralized Processing Sites

  • If the last four digits of the Collection-Asgmt>field isn't 8000 (xxx8000)

  • Research the appropriate Revenue Officer Group office address using the following link. RO by TSIGN/ZIP/STATE

Automated Substitute For Return (ASFR) and Non-Filer Return (NFR) Screening

(1) ASFR returns are prepared by an IRS employee under IRC 6020(b) when a taxpayer fails to file. The taxpayer is given the opportunity to file a valid voluntary return to correct the proposed assessment, or to agree to the proposed assessment. A NFR is a return that’s received in the Service after the posting of the TC 150 Dummy SFR but prior to the issuance of the Initial Contact Letter (ICL) by Exam.

Note: For more information on SFR returns, see IRM 21.5.3.4.10, Returns Prepared Under IRC Section 6020(b). For more information on NFR returns, see IRM 21.5.3.4.10.1, Non-Filer Reject Returns.

(2) When sending a case to ASFR or NFR:

  1. ASFR cases are sent to one of the following areas per paragraph 5 below:
    - Exam per IRM 3.11.6.7.10, Examination Case Screening
    - CSCO per IRM 3.11.6.7.18.3.1, Compliance Services Collection Operations (CSCO) Screening.

  2. NFR cases are sent to one of the following areas per paragraph 5 below:
    - AM
    - The Fresno Campus ASFR unit.

(3) Identify returns for ASFR as follows:

  • CC TXMOD - The TC 150 for .00 has the literal "SFR" to the right of the Document Locator Number (DLN).

  • CC IMFOLI - The "Vestigial:" field has the literal "SUBST4".

(4) Identity returns for NFR as follow:

  • A TC 976 is present

    Note: Not all NFR returns include a Transaction Code (TC) 976 on the module.

  • CC TXMOD - The TC 150 has the literal "SFR" to the right of the Document Locator Number (DLN).

  • AIMS status of 08 or less. (open TC 420/424).

  • AIMS Status 90 with a Non-Examined Disposal Code.

    Note: Refer to Examination Disposal codes, for a complete list of Non-Examined Disposal Codes

  • Some cases have the letters NFR across the front of the return.

(5) Route ASFR and NFR returns per the table below:

If ...

And ...

Then ...

SFR returns

There’s an unreversed TC 420 and a -L freeze

Exception: If CC AMDISA status is 08 or less then see Non-filer Reject below.

See IRM 3.11.6.7.10, Examination Case Screening.

SFR returns

There’s an unreversed TC 420 present

Send the case to CSCO per IRM 3.11.6.7.18.3.1, Compliance Services Collection Operations (CSCO) Screening, and input a TC 971 AC 012.

NFR returns

Identified per paragraph 2 above

Send the case to AM.

Posted TC 599 cc 89 on CC TXMODA

 

Send the case to AM.

Posted TC 599 cc 88 on CC TXMODA

Without a subsequent TC 599 cc 89

  • If working a CII case, fax the case≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
    Reminder: Input TC 971 AC 012.

  • If working paper, send the case to:
    Fresno Campus
    ASFR Unit Stop 81304
    5045 E Butler Ave
    Fresno, CA 93727
    Reminder: Input TC 971 AC 012.

Releasing Screened Returns

(1) All SP 1040-X cases are screened and released in the Correspondence Imaging Inventory (CII) system.

Working Trail and Action Trail

(1) When sending a case, detachment, or prepared form to another area, a working trail or action trail is required.

(2) If any of the following elements are missing, edit the missing element(s) on the return, form, schedule, notice, or prepared form.

Exception: Don't edit Personally Identifiable Information (PII) on detached forms that belong to different taxpayers.

  1. Taxpayer's name

  2. Taxpayer's address

  3. Taxpayer Identification Number (TIN), (e.g., SSN, IRSN, ITIN)

  4. Received date

  5. Tax Year

  6. TE number

  7. Annotate the CII Case Id next to your TE Number.

  8. Annotate "CII Image- Don't correspond for signature" or Edit "MeF Return - Don't correspond for signature" in the signature area if the case is signed as appropriate.

(3) Official Use Only (OUO) information mustn’t be included in a working trail, action trail, or CII case note. If you're unsure how to identify OUO, see your lead or manager.

Working Trails and Action Trails When Reassigning a Case

(1) When reassigning an entire case, input a CII case note.

(2) When the entire case isn’t being reassigned, follow the table.

If ...

Then ...

Detaching a form, schedule, or notice from a return

  1. Input a CII case note that specifies:

    1. Detached item description.

    2. Routing destination of detachment.

  2. Complete Form 12305, Routing Slip, and include the CII case number the form, schedule, or notice was detached from.

Preparing a form or schedule

  1. Input a CII case note that specifies:

    1. The prepared item.

    2. Routing destination of the prepared item.

  2. Complete Form 12305, Routing Slip, and include the CII case number used to prepare the form or schedule.

Working Trails and Action Trails When Rerouting a Case

(1) A CII case, a portion of a case, or a prepared document rerouted through CII is converted to paper for the receiving area.

(2) When rerouting an entire case, input a CII case note and complete the Routing Slip Data screen.

(3) When using the Reroute EITC, or Reroute Exam functions, input a CII case note and complete the Routing Slip Data screen as appropriate.

(4) When a portion of a case, or a prepared document, is being rerouted, see IRM 3.11.6.7.19.1.3, Working Trails and Action Trails When Sending an E-fax or Secure Message.

Working Trails and Action Trails When Sending an E-fax or Secure Message

(1) When a CII case, a portion of a case, or a prepared document is being sent to the receiving area via e-fax or secure messaging, follow the table.

If ...

Then ...

Detaching a form, schedule, or notice from a return

  1. Input a CII case note that specifies:

    1. Detached item description.

    2. Routing destination of detachment.

    3. The method used, e-fax or secure message.
      Example:Form 9465 sent via e-fax to CSCO on 01/02/202X.
      Exception: If routing to OFE, input a case message and not a case note.

  2. Complete Form 12305, Routing Slip. When filling out the Remarks section include the following:

    1. CII Case ID number.

    2. The number of pages being sent to the receiving area.

    3. The method used, e-fax or secure message.

Preparing a form or schedule

  1. Input a CII case note that specifies:

    1. Detached item description.

    2. Routing destination of detachment.

    3. The method used, e-fax or secure message.
      Example:Form 9465 sent via e-fax to CSCO on 01/02/202X.
      Exception: If routing to OFE, input a case message and not a case note.

  2. Complete Form 12305, Routing Slip. When filling out the Remarks section include the following:

    1. CII Case ID number.

    2. The number of pages being sent to the receiving area.

    3. The method used, e-fax or secure message.

Transaction Code (TC) 971 and Action Codes

(1) A TC 971, when input with one of the action codes (AC) below, indicates the taxpayer filed an amended return and begins an action trail for the document. The action code indicates where the return was routed. Since some of these actions generate a TC 977 on master file and a -A or E- freeze on IDRS, the received date of the Form 1040-X must be input for the transaction date. If you’re only routing correspondence or a form attached to a Form 1040-X , you generally don't need to enter an action code unless instructed to do so.

(2) The most common TC 971 action codes are:

Action Code

Description

002

Used when routing a return with No TC 150 to Batching to prevent the E- Freeze from switching to a -A Freeze when the return posts.

010

MeF amended returns, scanned cases processed in SP, and paper filed amended return claims forwarded to Accounts Management (Automatically input by CII).

012

Collection (When routing the entire return).

013

Exam or Frivolous.

014

Statute function .

015

Underreporter function.

016

Destination International Cases amended returns/claims go to Philadelphia (Automatically input by CII).

065

Form 8857, Request for Innocent Spouse Relief (and Separation of Liability and Equitable Relief), filed. Send the case to Covington, KY. (Input by Cincinnati Centralized Innocent Spouse Operation).

071

Form 8379, Injured Spouse Claim and Allocation.

111

ID Theft.

113

Total AOTC, CTC and/or EIC amounts that were disallowed due to the PATH Act.

120

Amended return/claim in Submission Processing.

123

Unemployment Compensation Exclusion Recovery can be identified by the MISC field entry, UCERECOVERY03112021. See IRM 3.11.6.14.1.1.3, Unemployment Compensation Exclusion (UCE) - Tax Year 2020 Only (Line 1).

134

RIVO or CI SDC. See IRM 3.11.6.7.13, Return Integrity and Verification Operation (RIVO) Screening.

137

Refer to IRM 3.11.6.12.1, Entity Changes.

192

Schedule LEP, Request for Alternative Language Products by Taxpayers With Limited English Proficiency (LEP). See IRM 3.11.6.12.2, Schedule LEP, Request for Change in Language Preference.

592

Form 9000, Alternate Media Preference. See IRM 3.11.6.12.3, Form 9000, Alternative Media Preference.

698

Form 8938, Statement of Foreign Financial Assets, attached to Form 1040-X. See IRM 3.11.6.16.13, Form 8938, Statement of Foreign Financial Assets.

Note: For further information, see TC 971 action codes in Document 6209, IRS Processing Codes and Information, Section 8C, Master File Codes.

1040-X Routing Guide

(1) Dollar ($) Tolerance is the change to Total Tax (line 11) unless otherwise indicated. CAT-A tolerances refer to Total Tax decrease as a direct result of the specific condition without regard to the module balance.

(2) If an IRM subsection and the Routing Guide contain conflicting information, the specific section instructions take precedence over the general instructions contained in the Routing Guide.

(3) When multiple routing conditions are present, see IRM 3.11.6.7, Sorting, Routing, and Priority Screening. The Maildex IRM 3.10.72, Receiving, Extracting, and Sorting, contains a complete list of forms, letters, CPs and their routing.

(4) If unable to locate instructions for a specific form in this IRM, check the Maildex/Correspondex for handling instructions. The Maildex IRM 3.10.72-1, Routing Guide/Local Maildex, contains instructions for forms and CPs while IRM 3.10.72-2, Correspondex C Letters – Routing Guide, contains instructions for correspondence.

(5) Routing criteria is located throughout this IRM. This Routing Guide is a reference list of forms, schedules, documents, and tolerances that have route out criteria not mentioned elsewhere. Specifically, lists of routing criteria are found in:

(6) The common "When to Route" conditions in the Routing Guide are defined as follows:

  • Always: If the conditions are met, route without regard of any changes to the taxpayer’s figures even if the condition doesn't appear amended.

  • If Changing: There must be a change to the dollar amount reported on the tax return. This doesn't include changes within the Form or Schedule that have no effect on the outcome.

  • See IRM 3.11.6.X.X: Review the IRM reference for specific instructions prior to routing.

  • All other situations should fully describe the appropriate "Route if" condition.

(7) The following table contains routing instructions for cases not worked by SP 1040-X.

Condition

When to Route

Where to Route

Age discrimination claims (IRC 104(a)(2))

Always

AM

Alimony paid deduction (TIN of recipient provided)

If changing

AM

Archer MSA ( Form 8853)

Always

AM

Basket Option Transactions

  • Filed under Notice 2015-73

  • Filed under Notice 2015-74

Always

AM

Claim reducing capital gain preference items for the Alternative Minimum Tax (AMT) (PL 99-272)

If changing

AM

Clean-Fuel Vehicle - (IRC 179A)

Always

AM

CP 2000

Reminder: Check last process code of the TC 922

See IRM 3.11.6.7.15, Automated Underreporter (AUR) Screening.

Underreporter

CP 2006

Reminder: Check last process code of the TC 922

See IRM 3.11.6.7.15, Automated Underreporter (AUR) Screening.

Underreporter

CP 2501

Reminder: Check last process code of the TC 922

See IRM 3.11.6.7.15, Automated Underreporter (AUR) Screening

Underreporter

Disabled Combat Veteran, Combat Injured Veteran (or similar),
Letter 6060-A or Letter 6060-D letter attached
(taxable to nontaxable)
Disability Severance Pay
Military Retirement
Military Disability Pay
VA Claim
St. Clair vs US
Strickland Claim

Always

AM

Domestic Production Activities Deduction (Form 8903)

Always

AM

Erroneous Refunds

Always

AM

Examination Classification Disallowed or Rejected

Always

AM

Excess Contributions to an IRA

Always

AM

Exonerated Prisoner, Incarceration Exclusion PATH Act, or similar notation

Always

Send the case to AM with EXPR as the working trail

Extraterritorial Income exclusion (Form 8873)

Always

AM

Fiscal Year Filer

Always

AM

Form 499/W-2PR/W-3PR Withholding Statement

Always

AM

Form 843, Claim for Refund and Request for Abatement

Always

AM

Form 926, Return by a U.S. Transferrer of Property to a Foreign Corporation

Always

AM

Form 965 or IRC 965 notated

Always

AM

Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)

Always

AM

Form 1099-Q, Payments from Qualified Education Programs

Always

AM

Form 1116, Foreign Tax Credit

Note: If Form 1118, Foreign Tax Credit - Corporations, is attached, always send the case to AM

Always

AM

Form 1310, Statement of Person Claiming Refund Due to a Deceased Taxpayer

Always

AM

Form 2159, Payroll Deduction Agreement

Always

Detach Form from the amended return and send the case to Collection Operation.

Form 2210-F, Underpayment of Estimated Tax by Farmers and Fishermen

Always

AM

Form 3115, Application for Changing in Account Method

Always

AM

Form 3911, Taxpayer Statement Regarding Refund

Always

Detach and send the case to Refund Inquiry.

Form 3949, Information Report Referral

Always

Detach and send the case to your local function based on the checked box on line 9-14 on the second page.

Form 3949-A, Information Referral

Always

Send the case to OSC
Mail Stop: 6273

Form 4137, Social Security and Medicare Tax on Unreported Tip Income

Always

AM

Form 5405, First Time Home Buyer Credit Recapture/Repayment

Always

AM

Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations

Always

AM

Form 5884-B, New Hire Retention Credit

Always

AM

Form 8288, Withholding on Distributions by Foreign Persons of U.S. Real Property Interests

Always

AM

Form 8288-A, Withholding on Distributions by Foreign Persons of U.S. Real Property Interests

Always

AM

Form 8288-B, Withholding on Distributions by Foreign Persons of U.S. Real Property Interests

Always

AM

Form 8615, Tax for Certain Children Who Have Unearned Income

Always

AM

Form 8801, Credit Paid for Prior Year Minimum Tax

Always

AM

Form 8839, Qualified Adoption Expenses

Always

AM

Form 8853, Archer MSAs and Long-Term Care Insurance

Always

AM

Form 8854, Initial and Annual Expatriation Information Statement

Always

AM

Form 8859, District of Columbia First-Time Home Buyer Credit

Always

AM

Form 8862, Information To Claim Certain Refundable Credits After Disallowance

Always

AM

Form 8873, Extraterritorial Income Exclusion

Always

AM

Form 8885, Health Coverage Tax Credit

Always

AM with HCTC in the working trail.

Form 8889, Health Savings Account

Always

AM

Form 8891, U.S. Information Return for Beneficiaries of Certain Canadian Registered Retirement Plans

Always

AM

Form 8903, Domestic Production Activities Deduction

Always

AM

Form 8915-A, Qualified 2016 Disaster Retirement Plan Distributions and Repayments

Always

AM

Form 8915-B, Qualified 2017 Disaster Retirement Plan Distributions and Repayments

Always

AM

Form 8915-C, Qualified 2018 Disaster Retirement Plan Distributions and Repayments

Always

AM

Form 8915-D, Qualified 2019 Disaster Retirement Plan Distributions and Repayments

Always

AM

Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments

Always

AM

Form 8915-F, Qualified 2021 Disaster Retirement Plan Distributions and Repayments

Always

AM

Form 8919, Uncollected Social Security and Medicare Tax on Wages

Always

AM

Form 8939, Allocation of Increase in Basis for Property Received from a Decedent

Always

Process the amended return as normal. Send Form 8939 to:
Estate and Gift Tax Operation
Internal Revenue Service
201 W Rivercenter Blvd
Covington, KY 41011
Attn.: Stop 824G

Form 8959, Additional Medicare Tax

Always

AM

Form 8960, Net Investment Income Tax

Always

AM

Caution: Screen the case for CAT-A criteria. See IRM 3.11.6.7.14, Category A (CAT-A) Criteria Screening.

Form 8962, Premium Tax Credit (PTC)

Always

AM and notate in the working trail PTCX.

Form 8994, FMLA

Always

AM

Form 8996, Qualified Opportunity Fund

Always

AM

Form 14157 Complaint: Tax Return Preparer

Note: If Form 14157-A is also attached, follow the Form 14157-A procedures

Always

Send the case to: Attn: Return Preparer Office
401 W Peachtree Street NW
Mail Stop 421-D
Atlanta, GA 30308

Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit

Always

Route completed form along with any supporting information to AM.

Fulbright Grantee

Always

AM

Health Care Act excluding student loan amount

Always

AM

Household Employee Income, Household Help, (HSH)

  • If the HSH amount is changing

  • HSH is present and there's a change to any credit

AM

"ICT/IVO" notation on the amended return or in the remarks

Always

Send the case to AM with "ICT/IVO" as the working trail. See IRM 3.11.6.7.13, Return Integrity and Verification Operation (RIVO) Screening.

Immediate disallowance requested

Always

AM

Insolvent Farmer

If changing

AM

IRA Rollover

If changing

AM

IRA Deduction

If changing

AM

IRC 26 CFR 1.931.1

Always

AM

IRC 104(a)(2) – Claim that income from payments based on age discrimination are excludable

Always

AM

IRC 134 – Claim that compensation as JROTC instructors is tax exempt

Always

AM

IRC 179A – Clean Fuel Vehicle

Always

AM

IRC 301 – Veteran’s Disability Compensation is excluded from gross income (This includes St Clair vs. US claims, IRS Ruling 80-9)
CSRC or CDRP
X% disabled (or VA disability X%)
taxable to non-taxable
Strickland Claim
Pub 525

Always

AM

IRC 692 – Federal Income Tax Forgiveness for Certain U.S. Military and Civilian Employees and Other Individuals

Always

AM with KITA as a working trail.

IRC 803 – Victims of Nazi Regime

Always

AM

IRC 911, IRC 913, IRC 931, or IRC 933

Always

AM

IRC 1341 – Repayments of Debt Cancellation

Always

AM

"Letter 6173", "Letter 6174", "Letter 6174-A", "Digital Assets" (e.g., Virtual Currency or Crypto)

Always

AM

Lottery Winnings (lump sum payment change from ordinary income to capital gain)

Always

AM

Lump sum payment excluded from income

Always

AM

Manual adjustment to penalties and/or interest on tax liabilities. Not adjustment for ES Penalties (TC170/176).

Always

AM

Maritime Claims

  1. With a breakdown of days, localities, and rates

  2. Without a breakdown of days, localities, and rates

  1. See IRM 3.11.6.7.14, Category A (CAT-A) Criteria Screening.

  2. All others

  1. CAT-A

  2. AM

May Dept. Store vs. Sequa Rev. Rul. 99-40

Always

AM

Medical/Dental Resident FICA Claims, includes:

  • Mayo Clinic

  • Minnesota vs. Apfel

Always

AM

"Microcaptive"

Always

Send the case to:
Internal Revenue Service
2970 Market Street
Philadelphia, PA 19104

Misapplied Payment

See IRM 3.11.6.14.3.2, Estimated Tax Payments (Line 13).

AM

Net Operating Loss (NOL) or any indication of an NOL loss

If changing

Carryback or Carryforward, refer to IRM 3.11.6.7.7, Carryback or Carryforward Screening.

Pension Protection Act PL 109-280

Always

AM

Personal injury damages excluded from income (IRC 104(a)(2))

Always

AM

Pigford vs. USDA
Pigford vs. other
Black Farmers Suit
Keepseagle vs. USDA
Native Americans vs. USDA
Pigford II vs. USDA

Always

AM

Police Meal Expense

Always

AM

Public Law 99-272 Insolvent Farmer / AMT

Always

AM

Public Safety Officer PSO Exclusion indicated on return

Always

AM

Reconsideration Letter attached

Always

Input TC 971 AC 010.
Send to:
IRS Andover Campus
310 Lowell St
Andover, MA 01810

Refund

Less than $1.00 or greater than $10 million, always

AM

Refund Inquiry

Always

AM

Registered Domestic partners (RDPs). Can also be identified as CCA201021050 or CCA. Another indication is Form 8958 is mentioned or attached.

Always

AM

Resubmitted Claim/Re-submission or Appeal of a previously rejected claim

Always

AM

Rev. Rul. 57-383 (Strike Fund Benefits Claim for Refund)

Always

AM

Rollover of Airline Payments to Traditional IRAs

If changing

AM

ROTH IRA

If changing

AM

Safe Harbor

Always

AM

Schedule H, Household Employment Taxes

Always

AM

Seller Paid Points (also see Schedule A)

  • Claimed for tax period other than year of purchase

  • HUD-1 or Settlement Statement not attached

  • Loan origination fees, Loan discount, Discount Points, Paid Points, not mentioned on HUD-1 or Settlement Statement

  • Property taxes, appraisals, inspections, title, or attorney fees included as deductible points

If changing

AM

Student Loan Forgiveness

If changing

AM

Tax Equity and Fiscal Responsibility Act

  • TEFRA

  • Letter 3906

  • Letter 4505 (any)

Always

AM

Treaty Trader

Always

AM

  • Tribal General Welfare Exclusion Act of 2014

  • General Welfare

  • H.R. 3043

  • Notice 2012–78

  • Revenue Procedure 2015–35

Always

OSPC
1973 Rulon White Blvd.
Ogden, UT 84201
M/S 7700, Attn: GECS

Unemployment compensation repayments

Always

AM

United Mine Workers of America (UMWA) Refunds claimed for premiums paid

If changing

AM

UDC - Unlawful Discrimination Claims, identified as a write in of "UDC"

Always

AM

W-7, Application for IRS Individual Taxpayer Identification Number

  • Attached, or the taxpayer requests additional information to complete processing

Always

Austin Submission Processing Campus
ITIN Operation
Stop: AUSC 6090
3651 S IH 35
Austin, TX 78714-9342

Note: Keep all documentation provided by the taxpayer with the application; this may include original passports and birth certificates.

W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions (ATIN), is attached to a Form 1040-X

Always

Austin Submission Processing Campus
Internal Revenue Service
ATIN Unit
3651 S IH 35
Stop 6182
Austin, TX 78767

Walker Tax Court decision transportation expense tax deduction

Always

AM

Williams Claims

Always

AM

Zero Return- Transcription Error

See IRM 21.4.1.4.1.2.2, Return Found - Processing Errors Identified

AM

1040-X Reassignment and Reroute Guides

(1) The MEFP and MEFS reassignment and reroute guides are used when sending CII cases to other areas. Each guide is specific to the category code of the case being processed.

Note: When using the "Reroute" option in CII, a hardcopy of the case image, the case notes, if selected, and a a routing slip are printed.

Caution: Reassigned cases that don't have a "valid AM CII combination" are rejected by AM and returned to the MEFP and MEFS AM rejected queue, and then to the TE for correction. See IRM 3.11.6.9.3, MEFP and MEFS Accounts Management Rejected Queue.

(2) Routing priority applies to reassigning and rerouting cases. When International is one of the routing conditions, refer to IRM 3.11.6.9.1 (2), 1040-X MEFP Reassignment and Reroute Guide, or IRM 3.11.6.9.2 (2), 1040-X MEFS Reassignment and Reroute Guide, as appropriate.

(3) See IRM 3.11.6.7.19.1, Working Trail and Action Trail, prior to using the CII Reassign and Reroute functions.

MEFP Reassignment and Reroute Guide

(1) Follow the instructions below when reassigning or rerouting a MEFP case.

(2) If International routing criteria per IRM 3.11.6.7.3, International Returns Screening, is present with one of the other routing conditions below, reassign the case based on the additional issue instructions.

  • Disaster Claim per IRM 3.11.6.7.6, Disaster Claim Screening

  • Carryback per IRM 3.11.6.7.7, Carryback and Carryforward Screening

  • Carryforward per IRM 3.11.6.7.7, Carryback and Carryforward Screening

  • Identity Theft per IRM 3.11.6.7.8, Identity Theft (IDT) Screening.

  • Injured Spouse per IRM 3.11.6.16.12, Form 8379, Injured Spouse Allocation.

  • Zero Return per IRM 21.4.1.4.1.2.2(1), Return Found - Processing Errors Identified.

Example: If a case has both International and Carryback criteria, reassign the case per the Carryback International instructions in paragraph 4 below.

(3) When reassigning a case, don't close the open control base.

(4) When reassigning a case, update the case data per IRM 3.11.6.4.8, Updating Case Data, and follow the table below:

Note: Update the required "MFT", "Work Type", "Function", and "Statute Search" fields as appropriate

Caution: If the case data is updated incorrectly, the case will be sent back to you for correction.

If ...

And ...

Then ...

Carryback

Domestic

Use:

  1. Doc Type "Carryback MeF".

  2. Category "MEFC".
    Exception: If Form 1045 or Form 1139 is attached, use:
    • Doc Type "Carryback"
    • Category "TENT".

  3. Priority Code: Enter the appropriate priority code per the table in IRM 21.5.1.5.2, Cases Currently Assigned in CII.

Carryback

International

Use:

  1. Work Type "IMF INTL".

  2. Doc Type "Carryback MEF".

  3. Category "MEFR".
    Exception: If Form 1045 or Form 1139 is attached, use:
    • Doc Type "Carryback"
    • Category "ITCB".

  4. Priority Code: Enter the appropriate priority code per the table in IRM 21.5.1.5.2, Cases Currently Assigned in CII.

Carryforward

Domestic

Use:

  1. Doc Type "Carryforward".

  2. Category "CFWD".

Carryforward

International

Use:

  1. Work Type "IMF INTL"

  2. Doc Type "Carryforward".

  3. Category "ICFD".

CAT-A

The CAT-A issue would normally meet SP criteria.

Suspend to CAT-A. Don’t change the:

  • Doc Type Don't change.

  • Category Don't change.

CAT-A

The CAT-A issue would normally meet SP criteria if the tolerance wasn't met, and there's also an out-of-scope issue present on the case.

See Out of Scope below.

CAT-A

The CAT-A issue would not normally meet SP criteria.

See Out of Scope below.

CAT-A

There’s an open AUR case that meets CAT-A criteria.

See paragraph 6 below.

Combat Injured Veterans Tax Fairness Act of 2016, St Clair Claims - SPC8

 

Use:

  1. Doc Type "1040X Veteran Claim".

  2. Category "VRET".

Disaster Claim

Domestic

Use:

  1. Doc Type "1040X".

  2. Category "DSTR" or "KATX" per IRM 3.11.6.7.6, Disaster Claim Screening.

Disaster Claim

International

Use:

  1. Doc Type "1040X".

  2. Category "DSTR" or "KATX" per IRM 3.11.6.7.6, Disaster Claim Screening.

Form 14039

Non-tax related (English)

Use:

  1. Doc Type "ID Theft IDT4".

  2. Category "IDT4".

Identity Theft

Domestic - Taxpayer Identified

Use:

  1. Doc Type "ID Theft IDT1".

  2. Category "IDT1".

Identity Theft

Domestic- IRS Identified.

Use:

  1. Doc Type "ID Theft IDT3".

  2. Category "IDT3".

Identity Theft

International- Taxpayer Identified.

Use:

  1. Doc Type "ID Theft IDT1".

  2. Category "IDT1".

Identity Theft

International- IRS Identified.

Use:

  1. Doc Type "ID Theft IDT3".

  2. Category "IDT3".

Injured Spouse

Domestic

Use:

  1. Doc Type "Injured Spouse Claim".

  2. Category "DMFC".

  3. Program Code "97140".

Injured Spouse

International

Use:

  1. Doc Type "Injured Spouse Claim".

  2. Category "DMFC".

  3. Program Code "97140".

International

Carryback

See Carryback above.

International

Carryforward

See Carryforward above.

International

Identity Theft

See Identity Theft above.

International

Injured Spouse

See Injured Spouse above.

International

Zero Return

See Zero Return below.

International

Form 1040-X or Amended Form 1040 not meeting the criteria directly above.

Use:

  1. Work Type "IMF INTL"

  2. Doc Type "1040X MEF".

  3. Category "MEFI".

  4. Campus "PSC".

  5. Reassign.

IRC 965

IRC 965 is mentioned or Form 965 is attached.

Use:

  1. Doc Type "IRC 965 1040X".

  2. Category "965X".

KITA

 

Use:

  1. Doc Type "1040X".

  2. Category "KITA".

Out of Scope

 

Use:

  1. Doc Type "1040X MeF".

  2. Category "MEFA".

Premium Tax Credit

 

Use:

  1. Doc Type "ACA-1040X".

  2. Category "ACAX".

  3. Program Code "40320".

  4. Reassign to the "MEFS/MEFP" Out of Scope queue.

Scrambled SSN cases

 

Use:

  1. Doc Type "1040X".

  2. Category "SCRM".

TAS

 

Use:

  1. Doc Type "1040X MEF".

  2. Category "MEFA".

VA Claims Veterans Disability Claims

 

Use:

  1. Doc Type "1040X Veteran Claim".

  2. Category "VRET".

Zero Return- Transcription Error. Tax year 2018 only. See IRM 21.4.1.4.1.2.2 (1), Return Found - Processing Errors Identified.

Domestic

Use:

  1. Doc Type "1040X".

  2. Category "SPC5".

Zero Return- Transcription Error. Tax year 2018 only. See IRM 21.4.1.4.1.2.2(1), Return Found - Processing Errors Identified.

International

Use:

  1. Doc Type "1040X".

  2. Category "SPC5".

(5) When reassigning a case, use the appropriate CSR queue number from the AM Site Specialization Temporary Holding Numbers list on the SERP that correlates to the Doc Type and Category from paragraph 3 above.

Note: When reassigning a case to TAS, CAT-A, or Premium Tax Credit, use the Out of Scope CSR queue number.

Exception: When reassigning a case to the International queue, select "PSC" in "Campus" field when updating the case data.

Exception: When reassigning an open case to AM, use the CSR number in the" ASSIGN-TO" field of the open control. If the case is open to a generic AM queue, reassign the case to the Out of Scope (All Other Claims) queue.

(6) When rerouting a case, follow the table below:

If ...

Then ...

Reroute EITC

Follow IRM 3.11.6.13.4, Command Code DDBCK (Dependent Database Check).

Reroute Exam

  1. Complete the "Exam Referral Data" section as follows:

    1. Complete the "To Stop number "field per IRM 3.11.6.7.10, Examination Case Screening.
      Note: If the "SBC" isn't all zeroes, input the address in the "Comments" field. If there's not a stop number available, input "N/A" in the "To Stop number field".

    2. Complete the "From Stop number" field.

    3. Complete the "Phone number" field.

    Note: Some of these fields may populate by default.

  2. Complete the "Action" section as follows:

    1. Check the "Tax Decrease has NOT Been Made" check box.

    2. Check the "TC971-013" check box.

    3. Input a TC 971 AC 013 per IRM 3.11.6.7.10, Examination Case Screening.

  3. Complete the "Reason Referred" section as follows:

    1. Check the "Open AIMS" check box.

    2. Use CC AMDISA to complete the following:

      • EGC field.

      • Source Code field.

      • Status Code field.

      • Date field using the Current Status Code Date

    3. In the "Remarks" field, notate as follows: "The case is on Modernized e-File Return Request Display".

  4. Select the appropriate campus from the "Print" drop-down menu and then click "Reroute" to send the case to Exam.

AUR – Open Case

  1. Take the following action

    1. Print the return to pdf.

    2. Edit any required working trail information. Refer to IRM 3.11.6.7.19.1, Working Trail and Action Trail.

    3. Complete Form 12305, Routing Slip

    4. Send the Form 12305, Routing Slip, and the return to the appropriate fax number found in the AUR Addresses (Open Cases) list on SERP.

    5. Input a case note per IRM 3.11.6.9.4, MEFP and MEFS Secure Messaging and E-fax Routing.

    6. Input a TC 971 AC 015

    7. Close the CII case.

AUR – Reconsideration

  1. Take the following action

    1. Print the return to pdf.

    2. Edit any required working trail information. Refer to IRM 3.11.6.7.19.1, Working Trail and Action Trail.

    3. Complete Form 12305, Routing Slip.

    4. Send the Form 12305, Routing Slip, and the return to the appropriate fax number found in the AUR Reconsideration list on SERP.

    5. Input a case note per IRM 3.11.6.9.4, MEFP and MEFS Secure Messaging and E-fax Routing.

    6. Input a TC 971 AC 015.

    7. Close the CII case.

Reroute

  • CI/SDC

  • COLLECTIONS

  • ERS

  • FRIVOLOUS

  • RIVO

  • Any other area not listed.

Exception: Some of the areas listed above may accept secure message or e-fax routing. See IRM 3.11.6.9.4, MEFP and MEFS Secure Messaging and E-fax Routing

  1. Complete the "Routing Slip Data" as follows:

    1. Complete the "To Stop number "field per the specific IRM subsection.

    2. Complete the "From Stop number" field.

    3. Complete the "Phone number" field.

    4. Complete the "Comments:" field, "The case is on Modernized e-File Return Request Display". Add required working trail or action trail information.
      Note: Some of these fields may populate by default.

  2. Select the appropriate campus from the "Print" drop-down menu and then click "Reroute".

(7) To send a MEFP case to Statute per IRM 3.11.6.7.9, Statute Review Screening, take the following actions:

  1. Select "2Statute" from the "Suspend" drop-down list.

  2. Click the tax increase/credit decrease check box, if appropriate.

  3. Complete the ASED field.

Note: If Statute determines that they must work the case, they print a hardcopy for their use and return the case with instructions to close the case.

MEFS Reassignment and Reroute Guide

(1) Follow the instructions below when reassigning or rerouting a MEFS case.

(2) If International routing criteria per IRM 3.11.6.7.3, International Return Screening, is present with one of the other routing conditions below, reassign the case based on the additional issue instructions.

  • Disaster Claim per IRM 3.11.6.7.6, Disaster Claim Screening

  • Carryback per IRM 3.11.6.7.7, Carryback and Carryforward Screening

  • Carryforward per IRM 3.11.6.7.7, Carryback and Carryforward Screening

  • Identity Theft per IRM 3.11.6.7.8, Identity Theft (IDT) Screening.

  • Injured Spouse per IRM 3.11.6.16.12, Form 8379, Injured Spouse Allocation.

  • Zero Return per IRM 21.4.1.4.1.2.2(1), Return Found - Processing Errors Identified.

Example: If a case has both International and Carryback criteria, reassign the case per the Carryback International instructions in paragraph 4 below.

(3) When reassigning a case, don't close the open control base.

(4) When reassigning a case, update the case data per IRM 3.11.6.4.8, Updating Case Data, and follow the table below:

Note: Update the required "MFT", "Work Type", "Function", and "Statute Search" fields as appropriate

Caution: If the case data is updated incorrectly, the case will be sent back to you for correction.

If ...

And ...

Then ...

Carryback

Domestic

Use:

  1. Doc Type "Carryback".

  2. Category "RINT".
    Exception: If Form 1045 or Form 1139 is attached, use Category "TENT".

  3. Priority Code: Enter the appropriate priority code per the table in IRM 21.5.1.5.2, Cases Currently Assigned in CII.

Carryback

International

Use:

  1. Work Type "IMF INTL".

  2. Doc Type "Carryback".

  3. Category "IRNT".
    Exception: If Form 1045 or Form 1139 is attached, use Category "ITCB".

  4. Priority Code: Enter the appropriate priority code per the table in IRM 21.5.1.5.2, Cases Currently Assigned in CII.

Carryforward

Domestic

Use:

  1. Doc Type "Carryforward".

  2. Category "CFWD".

Carryforward

International

Use:

  1. Work Type "IMF INTL"

  2. Doc Type "Carryforward".

  3. Category "ICFD".

CAT-A

The CAT-A issue would normally meet SP criteria.

Suspend to CAT-A. Don’t change the:

  • Doc Type.

  • Category.

CAT-A

The CAT-A issue would normally meet SP criteria if the tolerance wasn't met, and there's also an out-of-scope issue present on the case.

See Out of Scope below.

CAT-A

The CAT-A issue would not normally meet SP criteria.

See Out of Scope below.

CAT-A

There’s an open AUR case that meets CAT-A criteria.

See paragraph 6 below.

Combat Injured Veterans Tax Fairness Act of 2016, St Clair Claims

 

Use:

  1. Doc Type "1040X Veteran Claim".

  2. Category "VRET".

CP 08, CP 09, and CP 27 Notices

 

Use:

  1. Doc Type "Correspondence".

  2. Category "TPRQ".

Disaster Claim

Domestic

Use:

  1. Doc Type "1040X".

  2. Category "DSTR" or "KATX" per IRM 3.11.6.7.6, Disaster Claim Screening.

Disaster Claim

International

Use:

  1. Doc Type "1040X".

  2. Category "DSTR" or "KATX" per IRM 3.11.6.7.6, Disaster Claim Screening.

Form 14039

Non-tax related (English)

Use:

  1. Doc Type "ID Theft IDT4".

  2. Category "IDT4".

Identity Theft

Domestic - Taxpayer Identified.

Use:

  1. Doc Type "ID Theft IDT1".

  2. Category "IDT1".

Identity Theft

Domestic- IRS Identified.

Use:

  1. Doc Type "ID Theft IDT3".

  2. Category "IDT3".

Identity Theft

International- Taxpayer Identified.

Use:

  1. Doc Type "ID Theft IDT1".

  2. Category "IDT1".

Identity Theft

International- IRS Identified.

Use:

  1. Doc Type "ID Theft IDT3".

  2. Category "IDT3".

Injured Spouse

Domestic

Use:

  1. Doc Type "Injured Spouse Claim".

  2. Category "DMFC".

  3. Program Code "97140".

Injured Spouse

International

Use:

  1. Doc Type "Injured Spouse Claim".

  2. Category "DMFC".

  3. Program Code "97140".

International

Carryback

See Carryback above.

International

Carryforward

See Carryforward above.

International

Identity Theft

See Identity Theft above.

International

Injured Spouse

See Injured Spouse above.

International

Zero Return

See Zero Return below.

International

Form 1040-X or Amended Form 1040 not meeting the criteria directly above.

Use:

  1. Work Type "IMF INTL"

  2. Doc Type "1040X".

  3. Category "IXRT".

  4. Campus "PSC".

  5. Reassign.

IRC 965

IRC 965 is mentioned or Form 965 is attached.

Use:

  1. Doc Type "IRC 965 1040X".

  2. Category "965X".

KITA

 

Use:

  1. Doc Type "1040X".

  2. Category "KITA".

Out of Scope

 

Use:

  1. Doc Type "1040X".
    Exception: If the Category is "ACAX", follow Premium Tax Credit below.

  2. Category "XRET" or "ACAX" per IRM 3.11.6.15.10, Category Codes.

Premium Tax Credit

 

Use:

  1. Doc Type: "ACA-1040X" .

  2. Category "ACAX".

  3. Program Code "40320".

  4. Reassign to the "MEFS/MEFP" Out of Scope queue.

Scrambled SSN cases

 

Use:

  1. Doc Type "1040X".

  2. Category "SCRM".

TAS

 

Use:

  1. Doc Type "1040X".

  2. Category "XRET".

VA Claims Veterans Disability Claims

 

Use:

  1. Doc Type "1040X Veteran Claim".

  2. Category "VRET".

Zero Return- Transcription Error. Tax year 2018 only. See IRM 21.4.1.4.1.2.2 (1), Return Found - Processing Errors Identified.

Domestic

Use:

  1. Doc Type "1040X".

  2. Category "SPC5".

Zero Return- Transcription Error. Tax year 2018 only. See IRM 21.4.1.4.1.2.2(1), Return Found - Processing Errors Identified.

International

Use:

  1. Doc Type "1040X".

  2. Category "SPC5".

(5) When reassigning a case, use the appropriate CSR queue number from the AM Site Specialization Temporary Holding Numbers list on the SERP that correlates to the Doc Type and Category from paragraph 3 above.

Note: When reassigning a case to TAS, CAT-A, or Premium Tax Credit, use the Out of Scope Paper CSR queue number.

Exception: When reassigning a case to the International queue, select "PSC" in "Campus" field when updating the case data.

Exception: When reassigning an open case to AM, use the CSR number in the" ASSIGN-TO" field of the open control. If the case is open to a generic AM queue, reassign the case to the Out of Scope (All Other Claims) queue.

(6) When rerouting a case, follow the table below:

If ...

Then ...

Reroute EITC

Follow IRM 3.11.6.13.4, Command Code DDBCK (Dependent Database Check).

Reroute Exam

  1. Complete the "Exam Referral Data" section as follows:

    1. Complete the "To Stop number "field per IRM 3.11.6.7.10, Examination Case Screening.
      Note: If the "SBC" isn't all zeroes, input the address in the "Comments" field. If there's not a stop number available, input "N/A" in the "To Stop number field".

    2. Complete the "From Stop number" field.

    3. Complete the "Phone number" field.
      Note: Some of these fields may populate by default.

  2. Complete the "Action" section as follows:

    1. Check the "Tax Decrease has NOT Been Made" check box.

    2. Check the "TC971-013" check box.

    3. Input a TC 971 AC 013 per IRM 3.11.6.7.10, Examination Case Screening.

  3. Complete the "Reason Referred" section as follows:

    1. Check the "Open AIMS" check box.

    2. Use CC AMDISA to complete the following:

      • EGC field.

      • Source Code field.

      • Status Code field.

      • Date field using the Current Status Code Date.

  4. Select the appropriate campus from the "Print" drop-down menu and then click "Reroute" to send the case to Exam.

AUR – Open Cases

Caution: If the return is in the "Attached Files" section and not in the "Document Images" section of the CII case, follow the MEFP reroute instructions in IRM 3.11.6.9.1, MEFP Reassignment and Reroute Guide.

  1. Take the following action

    1. Edit any required working trail information. Refer to IRM 3.11.6.7.19.1, Working Trail and Action Trail.

    2. Input a TC 971 AC 015.

  2. Complete the "Routing Slip Data" as follows:

    1. Complete the "To Stop number "field per the AUR Addresses (Open Cases) list on SERP.

    2. Complete the "From Stop number" field.

    3. Complete the "Phone number" field.


    Note: Some of these fields may populate by default.

  3. Select the appropriate campus from the "Print" drop-down menu and then click "Reroute".

AUR – Reconsideration Cases

Caution: If the return is in the "Attached Files" section and not in the "Document Images" section of the CII case, follow the MEFP reroute instructions in IRM 3.11.6.9.1, MEFP Reassignment and Reroute Guide.

  1. Take the following action

    1. Edit any required working trail information. Refer to IRM 3.11.6.7.19.1, Working Trail and Action Trail.

    2. Input a TC 971 AC 015.

  2. Complete the "Routing Slip Data" as follows:

    1. Complete the "To Stop number" field per the AUR Reconsideration list on SERP.

    2. Complete the "From Stop number" field.

    3. Complete the "Phone number" field.


    Note: Some of these fields may populate by default.

  3. Select the appropriate campus from the "Print" drop-down menu and then click "Reroute".

Reroute

  • CI/SDC

  • COLLECTIONS

  • ERS

  • FRIVOLOUS

  • RIVO

  • Any other area not listed.

Exception: Some of the areas listed above may accept secure message or e-fax routing. See IRM 3.11.6.9.4, MEFP and MEFS Secure Messaging and E-fax Routing

  1. Complete the "Routing Slip Data" as follows:

    1. Complete the "To Stop number" field per the specific IRM subsection.

    2. Complete the "From Stop number" field.

    3. Complete the "Phone number" field.


    Note: Some of these fields may populate by default.

  2. Select the appropriate campus from the "Print" drop-down menu and then click "Reroute".

(7) To send a MEFS case to Statute per IRM 3.11.6.7.9, Statute Review Screening, take the following actions:

  1. Select "2Statute" from the "Suspend" drop-down list.

  2. Click the tax increase/credit decrease check box, if appropriate.

  3. Complete the ASED field

Note: If Statute determines that they must work the case, they print a hardcopy for their use and return the case with instructions to close the case.

MEFP and MEFS Accounts Management Rejected Queue

(1) Reassigned cases that don't have a valid "AM CII combination" are rejected by Accounts Management (AM) back to Submission Processing (SP) for correction. These rejected cases are sent by AM to the SP Reject queue, 0623804109.

Note: You must notify the headquarter 1040-X analyst immediately upon learning the current SP Reject queue owner will no longer hold a position with SP 1040-X duties. When notifying the headquarter analyst, a new queue number must be provided to ensure that cases can be transferred without interruption.

(2) The 1040-X quality review (QR) manager or another designated person(s) at each site must review the SP Reject queue daily. The cases must be cleared out of the rejected queue by 9:00 am local time.

(3) When a rejected case from your site is discovered:

  1. Input a case message stating, "Rejected by AM for invalid AM CII combination."

  2. Reassign the case to the tax examiner to take corrective action.

MEFP and MEFS Secure Messaging and E-fax Routing

(1) SP 1040-X uses secure messaging and e-fax routing when directed by the specific IRM subsection.

Note: This subsection isn't all-inclusive and may change frequently.

(2) Current areas accepting secure message routing from SP 1040-X are:

  • OFE

  • TAS

  • SP 1040-X

(3) Current areas accepting e-fax routing from SP 1040-X are:

  • AUR

  • CAF

  • CI-SDC

  • Collection Functions
    – CSCO
    – ACS
    – OIC
    – Field Collections
    – ASFR and NFR

  • SP 1040-X

Note: If there's a problem with an e-fax number, refer the case to your lead or manager. The lead or manager must contact the appropriate AUR coordinator using the AUR Coordinators list on SERP.

(4) When routing via secure messaging or e-fax, see IRM 3.11.6.7.19.1.3, Working Trails and Action Trails When Sending an E-fax or Secure Message.

(5) To send a case to your site’s secure mailbox use the following:

(6) The mailbox owners or other designated personnel such as clerical staff, must monitor their respective site mailbox throughout the day. They will print the documents and send them to the destination indicated on the attached Form 12305, Routing Slip.

Correspondence Procedures

(1) When required to send correspondence to the taxpayer(s), you must select the correct paragraphs from the IAT Letters tool or the Correspondex Letters on SERP.

(2) Each letter is to include the following:

  1. The appropriate signature code and return address code per paragraph 4 below.

  2. The CII case ID number.

  3. An appropriate opening paragraph that includes the received date of the return.

  4. Appropriate paragraphs for the body of the letter to detail the purpose of the correspondence.

  5. If a fill-in is required, use the designated open paragraph. If an additional space is needed to fill-in paragraphs, use the asterisk to insert another paragraph then continue with the fill-in(s).

  6. If multiple correspondence issues are present with multiple fill-ins, modify the fill-ins by combining them to remove repeated statements.

  7. Use the appropriate closing paragraph to include the "0922" toll-free phone number.

(3) Use the following guidance for correspondence unless otherwise directed with a specific instruction.

  1. Correspondence must be professional (i.e., correct spelling, punctuation, and grammar).

  2. Don't correspond when you can "dummy" the form or schedule from the information attached or through IDRS research.

  3. Don't correspond when the change is the result of a ripple effect and the forms or schedules needed to support the change are missing.

  4. When sending correspondence, print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page".

(4) When sending C-letter correspondence, use the appropriate Correspondex Signature Code and Correspondex Return Address Code.

If ...

Then ...

Sending a C-letter as certified or registered mail

Use the signature code for your site’s Submission Processing (SP) field director.

  • Austin - Correspondex Signature Codes.

  • Kansas City -Correspondex Signature Codes.

  • Ogden -Correspondex Signature Codes.

  • Memphis - Use Austin’s SP 1040-X Signature Code.

Not sending a C-letter as certified or registered mail

Use the signature code for your site’s operations manager.

  • Austin - Correspondex Signature Codes.

  • Kansas City -Correspondex Signature Codes.

  • Ogden - Correspondex Signature Codes.

  • Memphis - Use Austin’s SP 1040-X Signature Code.

Your site requires a return address code

Use the appropriate code for your site.

  • Austin - Return Address Codes

  • Kansas City - Return Address Codes

  • Ogden - Return Address Codes

  • Memphis - Use Austin’s SP 1040-X Return Address Code.

Your site doesn't require a return address code

Then leave the field blank.

(5) Correspondence for missing information takes priority over all other correspondence conditions unless otherwise specified.

(6) When multiple correspondence issues are met, see IRM 3.11.6.10.1, Multiple Correspondence Issues.

(7) Not all correspondence scenarios are covered by the IRM. See your lead if clarification is needed.

(8) If correspondence has been issued on a claim with CAT-A criteria or an Exam case and an incomplete response has been received, forward the claim to CAT-A or Exam, as appropriate. See IRM 3.11.6.7.14, Examination.

(9) All correspondence issues must be identified prior to initiating correspondence to ensure all items are requested at the same time.

Note: Ignore dollar limit tolerances once correspondence has been initiated.

Example: Correspondence is initiated because Form 1040-X is missing a Schedule EIC but there's also an unexplained entry on line 7 of $400. Correspond addressing both issues.

(10) In general, correspondence is issued on:

  1. Letter 178C for net result refund or zero-balance on Form 1040-X. See IRM 3.11.6.10.4, Corresponding on Net Refund and Zero-Balance Returns (Letter 178C).

  2. Letter 324C for net result balance due on Form 1040-X, APO/FPO/DPO, and Disaster claims. See IRM 3.11.6.10.3 Corresponding on Net Balance Due Returns (Letter 324C).

    Exception: Letter 178C, can be sent to an APO/FPO/DPO address when there's no attachment and no reply is expected.

  3. Letter 105C or Letter 105SP for fully disallowed claims. See IRM 3.11.6.10.5, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP).

  4. Letter 106C or Letter 106SP for partially disallowed claims. See IRM 3.11.6.10.5, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP).

  5. Letter 474C or Letter 474SP for correcting a claim and general correspondence. See IRM 3.11.6.10.6, Correspondence for Correcting a Claim (Letter 474C and 474SP).

  6. Letter 916C or Letter 916SP for “No Considering” a claim. See IRM 3.11.6.10.8, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP).

  7. Other letters as specified.

Note: Check the CC MESSG "Correspondence News" page for updates to applicable C-Letters and SP-Letters.

(11) Prior to issuing any correspondence, CC ENMOD must be reviewed to determine the LEP indicator. If the LEP indicator is blank, CC INOLES must be reviewed. When reviewing CC INOLES, if the MFR code is 07, correspondence must be sent in Spanish, if available. See IRM 3.11.6.10.2, Spanish Correspondence.

(12) Follow the instructions below when the address on the Form 1040-X doesn't match IDRS.

If ...

Then ...

An address change can be made per IRM 3.11.6.12.1, Entity Changes.

Correspond using the address on the Form 1040-X. See IRM 3.11.6.10.3, Corresponding on Net Balance Due Returns (Letter 324C).

An address change can't be made for reasons other than missing signature

Correspond using the address of record on IDRS. See IRM 3.11.6.10.3, Corresponding on Net Balance Due Returns (Letter 324C).

An address change can't be made due to a missing signature

Correspond using the address of record on IDRS and suspend the return.

(13) If a taxpayer is incarcerated, the taxpayer’s "prisoner number" must be included on the second name line of any correspondence being issued, if present. Don't update IDRS to add the prisoner number.

Multiple Correspondence Issues

(1) Correspond for missing information before addressing any other correspondence issues, unless otherwise specified. If there are identifiable issues on the return that cause a disallowance, no consideration, or a corrected adjustment once the response is received, include appropriate narrative fill-in from other “C” letters that addresses the issue(s) with the Letter 324C, or Letter 178C.

Reminder: Don't follow the instructions below until all correspondence for missing information is complete, see IRM 3.11.6.10, Correspondence Procedures.

(2) If the return is processable and multiple correspondence conditions exist, the fill-ins or paragraphs might require they be combined from the specific instructions. Use open paragraph(s) when needed.

  • If one of the issues is a formal disallowance, send the Letter 106C.

  • When a Letter 105C orLetter 106C, formal disallowance letter, is required and other issues on the return require a math error to be set, send both the Letter 105Cor Letter 106C and the Letter 474C. See (3) below.

  • In all other instances, send the Letter 474C using the open paragraphs to address all issues.

    Exception: The Letter 369C, Letter 404C, and Letter 3050C used to return original documents, can't be combined. They must be used in addition to any other letter.

(3) When an amended return requires both a formal disallowance and a math error, two letters and two adjustments are required:

  1. The first adjustment to address the math error and any other issue(s) that may be present. Send a Letter 474C per IRM 3.11.6.16.5, Inputting a Corrected Adjustment, and address all issues not related to the disallowance. Use the additional fill-in: You should’ve received a separate notice that part of your claim was disallowed.

  2. The second adjustment to address the disallowance issue. Send a Letter 106C per IRM 3.11.6.10.5, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP).

Spanish Correspondence

(1) If a letter requires an open paragraph to be filled in, consider the letter as not available in Spanish.

(2) CC ENMOD must be reviewed to determine the LEP indicator.

If the LEP indicator is ...

And ...

Then ...

001

 

Send correspondence in Spanish.

Blank

The MFR code is 07 on CC INOLES

Send correspondence in Spanish.

(3) If corresponding on a married filing joint return, the LEP and MFR indicators must be checked for both the primary and secondary taxpayer. In some instances, two letters must be sent, one in English and one in Spanish, because each taxpayer can file a Schedule LEP to designate their language preference.

(4) Currently, the following SP 1040-X correspondence letters are available in Spanish.

Correspondence Letter

Spanish Version Available

Letter 76C

N/A

Letter 105C

Letter 105SP

Letter 106C

Letter 106SP

Letter 178C

N/A

Letter 282C

Letter 282SP

Letter 324C

N/A

Letter 369C

N/A

Letter 404C

N/A

Letter 418C

N/A

Letter 474C

Letter 474SP

Letter 916C

Letter 916SP

Letter 3050C

Letter 3050SP

(5) When sending correspondence in Spanish:

  1. The same C-letter paragraphs are used.

  2. Use "Formulario 1040-X" instead of "Form 1040-X."

  3. Enter the date in DD-month-YYYY format.

    Example: If required to send a Letter 105SP, the opening paragraph should read:
    Gracias por su Formulario 1040-X del 04 de mayo de 2022.

(6) Use the table below for converting months Spanish.

If ...

Then ...

January

enero

February

febrero

March

marzo

April

abril

May

mayo

June

junio

July

julio

August

agosto

September

septiembre

October

octubre

November

noviembre

December

diciembre

Corresponding on Net Balance Due Returns (Letter 324C)

(1) When an amended return reflects an overall balance due that is missing required forms, schedules, signature(s), or other necessary information, request the missing information using a Letter 324C, Amended (Numbered) Return Incomplete for Processing. When sending Letter 324C:

  1. Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page"

  2. Leave a CII Case Note, describing the items requested

  3. Suspend the CII case for 45 days from today’s date. If paragraph 2 below applies, don't suspend

(2) If the only correspondence issue on a balance due or zero-balance return is a missing signature, issue a Letter 324C at the same time you input your adjustment. When the taxpayer responds, associate the information with the adjustment document.

(3) When a reply to a Letter 324C is received within the 45-day suspense period, follow the table.

If ...

Then ...

All the requested information is supplied

  1. Retrieve the suspense case from the CII suspense Queue.

  2. Use the earliest received date from the return as the received date.

  3. Use the received date from the taxpayer’s reply as the amended claims date.

  4. Use CII Indicator "1".

  5. Use Source Document Indicator "N".

  6. Input the appropriate remarks.

It is determined that correspondence was unnecessary, and all issues can be determined.

  1. Retrieve the suspense case from the CII suspense Queue.

  2. Use the received date from the return as the received date.

  3. Use the received date from the return as the amended claims date.

  4. Use CII Indicator "1".

  5. Use Source Document Indicator "N".

  6. Input the appropriate remarks.

The taxpayer doesn't supply all the requested information and the return is still incomplete.

  1. Retrieve the suspense case from the CII suspense Queue.

  2. Input only the issues that can be determined per normal procedures.

  3. Use CII Indicator "1".

  4. Use Source Document Indicator "N".

  5. Input the appropriate remarks.

  6. Send a Letter 474C, per IRM 3.11.6.6, Master File Verification and Math Verification Screening, and IRM 3.11.6.16.5, Inputting a Corrected Adjustment, using the fill-in: You didn't provide (insert a description of the missing information).

(4) If no reply is received, after the 45-day suspense period:

If ...

Then ...

There are issues that can be determined on the return

Send a Letter 474C per IRM 3.11.6.16.5, Inputting a Corrected Adjustment, using the fill-in: You didn't provide (insert a description of the missing information).

Note: Don't allow any credits if part of the correspondence was for a missing signature.

All issues on return can be determined

Process the return using the original received date as the received date and the amended claims date.

None of the issues on the return can be determined

Send Letter 916C per IRM 3.11.6.10.8, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP).

(5) Use the table below if a reply is received after the amended return is closed per either paragraph 2, 3, or 4 above:

If ...

Then ...

The Letter 324C wasn't sent by SP 1040-X

Send the case to AM.

The Letter 324C was sent by SP 1040-X

Process as normal.

  1. Retrieve the original case from CII and link it to the late reply case.

  2. Use the received date from the reply as the received date.

  3. Use the received date from the reply as the amended claims date.

  4. Use CII Indicator "1".

  5. Use Source Document Indicator "N".

  6. Add "324C LATE REPLY" to the remarks.

Corresponding on Net Refund and Zero-Balance Returns (Letter 178C)

(1) When an amended return reflects a net overall refund or zero-balance and is missing required forms, schedules, signature(s), or other necessary information, correspond using Letter 178C. When sending Letter 178C:

  1. Use the open paragraph to request the missing information

  2. Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page."

  3. Leave a CII Case Note describing the items requested

  4. Input a TC 290 for .00. Use Hold code 1 if the module is in a credit balance

    Caution: If there’s not a TC 150 present on the account, don't input a TC 290 for .00.

  5. Close the CII case

(2) If the amended return is reporting additional income and is missing required forms, schedules, and documentation, send Letter 324C per IRM 3.11.6.10.3, Corresponding on Net Balance Due Returns (Letter 324C).

(3) If the only issue on a zero-balance return is a missing signature, send Letter 324C per IRM 3.11.6.10.3, Corresponding on Net Balance Due Returns (Letter 324C), to request the signature and process the adjustment at the same time. When the taxpayer responds, associate the information with the adjustment document.

(4) If a signature is missing on an APO, FPO, DPO or a Disaster Claim, suspend the return and correspond using a Letter 324C.

(5) When the taxpayer responds with all the requested information:

  1. Create a new case.

  2. Process the claim.

  3. Use the received date of the reply as the received date and amended claims date.

  4. Link the case to the original amended return.

(6) If the taxpayer responds with required forms and/or documents and doesn't address items within tolerance, continue processing the return.

Reminder: Don't use the original received date. Use the received date of the reply as the received date and amended claims date.

(7) If the taxpayer’s reply on a refund return is incomplete or unprocessable:

  1. Adjust the account for only the issues that are processable and send Letter 474C per IRM 3.11.6.16.5, Inputting a Corrected Adjustment, with the fill-in: You didn't provide [insert a description of the missing information].

  2. If no issues are processable, send a Letter 916C per IRM 3.11.6.10.8, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP).

  3. If the correspondence involves PATH Act issues, see IRM 3.11.6.4.4.1, Protecting Americans from Tax Hikes (PATH Act).

(8) When it is determined that the correspondence was sent by the IRS in error, follow the table:

If ...

Then ...

All issues can be determined, and the return is incomplete

Send another Letter 178C to request the correct information.

All issues can be determined, and the return is complete

Process the return using the earliest received date as the received date and amended claims date.

None of the issues can be determined

Send Letter 916C per IRM 3.11.6.10.8, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP).

Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP)

(1) Taxpayers are sent disallowance letters for fully disallowed or partially disallowed claims:

  • Letter 105C is used for fully disallowed claims

  • Letter 106C is used for partially disallowed claims

  • Letters must be sent certified or registered mail

  • Letters must contain the specific reason for the claim disallowance as well as the claim amount

  • Letters must include appeal rights and the right to file suit

(2) If an amended return is received that has previously been disallowed, send the case to AM. A previous disallowance can be determined by:

  • Reviewing the Blocking Series of the previous adjustment. See IRM 3.11.6.15.6, Blocking Series (BS).

  • Researching CC ENMOD for an indication that a Letter 105C or Letter 106C has been sent.

(3) If the signature is missing on a full or partial disallowance, correspond per IRM 3.11.6.10.4, Corresponding on Net Refund and Zero-Balance Returns (Letter 178C).

Reminder: If processing a Statute case, see IRM 3.11.6.16.1, Processing Statute Cases.

(4) See IRM 3.11.6.16.7, Inputting a Disallowance Adjustment, for processing instructions.

Correspondence for Correcting a Claim (Letter 474C and 474SP)

(1) The Letter 474C is used to correct a claim and general correspondence as instructed.

(2) A Letter 474C is used in the following:

  • For a corrected adjustment, see IRM 3.11.6.16.5, Inputting a Corrected Adjustment.

  • When a taxpayer claims a credit they already received, see IRM 3.11.6.16.5, Inputting a Corrected Adjustment.

  • CP 08, CP 09, or CP 27 correspondence.

  • When specific instructions are provided.

Note: Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page."

Correspondence for Requesting Credit Previously Received (Letter 76C)

(1) When instructed to send Letter 76C, Correspondence for Claim for Refund Approved/Correct/Reduced/Math Error, for an amended return, see IRM 3.11.6.16.5, Inputting a Corrected Adjustment.

(2) If instructed to send a Letter 76C when processing a CP 08, You May Qualify for Child Tax Credit (CTC), follow the table.

If corresponding because ...

And ...

Then ...

Taxpayer claims additional children on the CP 08 or Form 15110 that were not claimed on the original return
OR
Taxpayer claims ANY children on the CP 08 or Form 15110 that were disallowed as exemptions

The claim is being partially denied.

Use the appropriate paragraphs and include the refund amount.

Taxpayer claims additional children on the CP 08 or Form 15110 that were not claimed on the original return
OR
Taxpayer claims ANY children on the CP 08 or Form 15110 that were disallowed as exemptions

The claim is being completely denied.

Use the appropriate paragraphs and don’t include the denied amount.

Some of the children that the taxpayer claimed on the CP 08 notice or Form 15110 are eligible, allow the ACTC for those dependents.

The claim is being partially denied

Use the appropriate paragraphs and include the following fill-in: We disallowed part of your claim for the Additional Child Tax Credit because not all the children claimed on your CP 08 notice were eligible.

(3) If instructed to send a Letter 76C when processing a CP 09, Earned Income Credit - You May Be Entitled to EIC, follow the table.

If corresponding because ...

And ...

Then ...

The taxpayer claims a child on the CP 09 or Form 15111 that wasn't claimed on the original return

No other qualifying child from the original return is being claimed.

Use the appropriate paragraphs.

The taxpayer claims a child on the CP 09 or Form 15111 that wasn't claimed on the original return

There’s a qualifying child that was claimed on the original return.

Use the appropriate paragraphs.

The child(ren) the taxpayer claims as children on the CP 09 or Form 15111 were claimed on the original return

The child(ren) are not eligible for EITC based on eligibility criteria or our computations and you have verified the taxpayer(s) are not eligible

Use the appropriate paragraphs, include the refund amount, and include the fill-in: We're writing as a follow-up to the (CP 09 notice or Form 15111) we recently mailed. We're sorry to inform you that you don't qualify for the Earned Income Tax Credit. We apologize for this inconvenience.

(4) If instructed to send a Letter 76C when processing a CP 27, EIC Potential for Taxpayer Without Qualifying Children, Use the appropriate paragraphs, include the refund amount, and include the fill-in: We're writing as a follow-up to the (CP 27 notice or Form 15112) we recently mailed. We're sorry to inform you that you don't qualify for the Earned Income Tax Credit. We apologize for this inconvenience.

Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP)

(1) A Letter 916C informs the taxpayer we can't process the claim and a new claim with the requested information may be filed.

(2) For statute year returns, see IRM 3.11.6.16.1, Processing Statute Cases.

(3) Follow the table below when sending a Letter 916C.

If ...

Then ...

The claim is being no considered per IRM 3.11.6.14.1.1, Adjusted Gross Income (AGI) - (Line 1)

  1. Input the adjustment as follows:

    1. Input a TC 290 for .00.

    2. Use the applicable Reason Code(s).

    3. Input the appropriate remarks.

  2. Send Letter 916C using the fill-in: We're unable to process your amended return because we can’t verify the income amount claimed. If you have more information you didn't send to us, you can file another amended return that includes all your supporting information.

    1. Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page"

    2. Leave a CII Case Note describing the issue.

The claim is being no considered per IRM 3.11.6.14.3.1, Federal Income Tax Withholding (Line 12)

  1. Input the adjustment as follows:

    1. Input a TC 290 for .00.

    2. Use the applicable Reason Code(s).

    3. Input the appropriate remarks.

  2. Send Letter 916C using the fill-in: We're unable to process your amended return because we can’t verify the withholding amount claimed. If you have more information you didn't send to us, you can file another amended return that includes all your supporting information.

    1. Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page".

    2. Leave a CII Case Note describing the issue.

The entire claim is being no considered

  1. Input the adjustment as follows:

    1. Input a TC 290 for .00

    2. Use the applicable Reason Code(s).

    3. Input the appropriate remarks.

  2. Send Letter 916C using the fill-in: You didn't provide [insert a description of the missing information]. If you have more information you didn't send to us, you can file another amended return that includes all your supporting information.

    1. Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page".

    2. Leave a CII Case Note describing the issue.

(4) If a reply to the Letter 916C is received and the taxpayer still has not submitted the requested information, then:

  1. Input a TC 290 for .00.

  2. Use the applicable Reason Code(s).

  3. Input the appropriate remarks.

(5) If a response to a Letter 916C is received without an amended return attached, follow the table below.

If ...

Then ...

The Letter 916C wasn’t sent by SP 1040-X

Send the case to AM.

The Letter 916C was sent by SP 1040-X

Process the case as follows:

  1. Retrieve the case from CII and link it to the new case.

  2. Use the received date of the reply as the received date.

  3. Use the received date of the reply as the amended claims date.

  4. Input a TC 29X for the appropriate amount.

  5. Use the applicable Reason Code(s).

  6. Use CII Indicator "1".

  7. Use Source Document Indicator "N".

  8. Add "916C REPLY "to the remarks.

Exception: For Statute cases, follow IRM 3.11.6.16.1, Processing Statute Cases.

Correspondence for Estimated Tax Penalty (Letter 369C)

(1) When instructed to send Letter 369C per IRM 3.11.6.16.8, Estimated Tax Penalty, use the fill-in: If you qualify for one of the exceptions in Part II of Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts, you may be able to reduce your penalty. Complete and submit Form 2210 according to the instructions.

Correspondence for Excess Social Security and Railroad Retirement Tax (Letter 404C)

(1) When instructed to send Letter 404C per IRM 3.11.6.14.3.1.1, Excess Social Security and Railroad Retirement Tax Act (RRTA), follow the table.

If the reason for correspondence is ...

Then ...

Excess Social Security was withheld by only one employer and there's one W-2

  1. Input a TC 290 .00. If additional issues are present, continue to process for the remaining issues.

  2. Send Letter 404C.

The taxpayer is MFJ and used earnings / Social Security from both the primary and secondary taxpayers to calculate excess Social Security

  1. Input a TC 290 .00. If additional issues are present, continue to process for the remaining issues.

  2. Send Letter 404C.

Correspondence for Dependent Documentation (Letter 3050C and Letter 3050SP)

(1) When instructed to send Letter 3050C per IRM 3.11.6.13, Personal Exemption or Dependent Changes, be sure to address all dependent related issues.

Illegible Amended Return (Letter 418C)

(1) Occasionally, an amended return is received that is illegible. In this instance, send Letter 418C, Amended/Original Return Unavailable; Copy Requested, to request another amended return. When sending Letter 418C:

  1. Use the appropriate paragraphs.

  2. Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page".

  3. Leave a CII Case Note, stating "Amended return was illegible requesting another amended return."

  4. Select Monitor from the suspense drop down menu and suspend the case for 45 days from today’s date.

(2) If a reply to Letter 418C, Amended/Original Return Unavailable; Copy Requested, isn't received and the 45-day suspense period has lapsed, suspend the case for an additional 90 days. Change the case activity to "418C-90DAYS".

(3) If the 90-day suspense period has lapsed and a reply has still not been received, close the case with a TC 290 for .00.

Undelivered Correspondence

(1) When undelivered correspondence is received, see IRM 3.11.6.10.14, Correspondence Received, then follow the instructions below.

(2) Research for a better address using IDRS, the return, the envelope, or use the yellow address change sticker provided by the U.S. Postal Service on the envelope. Compare the address on the yellow sticker to the name and address using CC ENMOD to verify it is the same taxpayer.

Reminder: When an undelivered mail piece has an affixed USPS yellow label, see IRM 3.11.6.12.1.1, Address Changes.

(3) When a new address is found, input a new letter using the new address; don't update the address in IDRS. If an adjustment related to the undelivered correspondence is on the module, see paragraph 6 and 7 below. For Letter 105C/Letter 106C undelivered correspondence, see the following paragraph.

Note: If the case is in suspense, close then reopen the suspended case to allow the taxpayer 45 days to respond from the date of your newly issued letter.

(4) For a Letter 105C or Letter 106C, Disallowance Letter, don't reinput the letter. Print the entire (original) letter, include the returned envelope, unchanged, and send all to the new address in another envelope per local procedures.

(5) When working an undeliverable piece of correspondence and a new address isn't found:

If ...

Then ...

The return was determined processable

Process the case as normal using the original received date as the amended claims date.

The return is a zero-balance return

Adjust the account per the return using the earliest received date (that has not been circled out).

Correspondence was a Letter 178C or a Letter 324C requesting missing information

  • Input a case note stating "Letter (178C/324C) dated (MM-DD-YYYY) returned undelivered. No new address found."

  • Treat the case as classified waste per IRM 3.11.6.16.22, Classified Waste.

Correspondence was a Letter 916C for missing information

  • Input a case note stating "Letter 916C dated (MM-DD-YYYY) returned undelivered. No new address found."

  • Treat the case as classified waste per IRM 3.11.6.16.22, Classified Waste.

Correspondence was a Letter 916C no consideration, or a Letter 474C

  • Input a case note stating "Letter (916C/474C/4364C) dated (MM-DD-YYYY) returned undelivered. No new address found."

  • Treat the case as classified waste per IRM 3.11.6.16.22, Classified Waste.

The correspondence was a formal disallowance or contained appeal rights

  • Input a case note stating "Letter (105C/106C) dated (MM-DD-YYYY) returned undelivered. No new address found."

  • Treat the case as classified waste per IRM 3.11.6.16.22, Classified Waste.

Correspondence was for informational purposes (such as Direct Deposit)

Treat as classified waste. See IRM 3.11.6.16.22, Classified Waste.

(6) If the Form 1040-X is returned undelivered and a TC 150 is still not posted on the account, research for a new address and follow the table:

If ...

Then ...

A new address is found

Send correspondence to the new address.

A new address isn't found and there are payments on the module

Send the case to AM.

A new address isn't found and there are no payments on the module

Treat as classified waste. See IRM 3.11.6.16.22, Classified Waste.

(7) If an undeliverable return is identified as an ID Theft return, then send the case to Entity. See IRM 3.11.6.7.8, Identity Theft (IDT) Screening.

(8) For undelivered CP 08, CP 09, and CP 27 notices, treat as classified waste. See IRM 3.11.6.16.22, Classified Waste.

Correspondence Received

(1) When correspondence is received, it must be sent to the Image Control Team (ICT) for scanning.

  1. If the original case is closed, a new case is created with the reply using Category Code IRRQ.

    Note: When working an IRRQ reply, the category code must be updated, and the case linked to original CII case.

  2. If the original case is still open, the reply must be associated to the open CII Case per paragraph 2 below.

    Note: When working a reply that is associated to a case, the reply appears in the image section of the open case.

(2) Send all correspondence replies to ICT are scanned through the exception scanning process.

If correspondence is received on a ...

Then ...

Closed case

The clerical staff or tax examiner must prepare a CII Association Header Sheet.

  • TIN - Use the P-TIN which can be found on IDRS.

  • Name Control - Use the Primary name control from the letter, form(s), schedule(s), or other document(s).

  • MFT - Always use "30".

  • Tax Period - Use the tax period indicated on the letter, form(s), schedule(s), or other document(s).

  • Case ID - Use the CII Case ID indicated on the letter, or the form(s), schedule(s), or other document(s) if present.

  • Employee number - Use the tax examiner’s IDRS employee number from the letter.

Open case

The clerical staff or tax examiner must prepare a CII Association Header Sheet and input a case note stating what type of correspondence is being sent for association to the case.

Example: If a Letter 324C reply is received on MM-DD-YYYY, the case note would be:
324C reply received MM-DD-YYYY sent to ICT for case association.

  • TIN - Use the P-TIN which can be found on IDRS.

  • Name Control - Use the Primary name control from the letter, form(s), schedule(s), or other document(s).

  • MFT - Always use "30".

  • Tax Period - Use the tax period indicated on the letter, form(s), schedule(s), or other document(s).

  • Case ID - Use the CII Case ID indicated on the letter, or the form(s), schedule(s), or other document(s) if present.

  • Employee number - Use the tax examiner’s IDRS employee number from the letter.

Correspondence Table of Issues, C-Letters and Paragraph Fill-ins

(1) This section contains the most common correspondence issues and is referred to throughout the IRM. When sending:

  1. Letter 178C refer to IRM 3.11.6.11.1, Letter 178C Correspondence Table of Issues.

  2. Letter 324C refer to IRM 3.11.6.11.2, Letter 324C Correspondence Table of Issues.

Reminder: Not all correspondence scenarios are covered by the IRM. See your lead if clarification is needed.

Letter 178C Correspondence Table of Issues

(1) When sending Letter 178C use the appropriate fill-in from the tables below. These tables address the most common correspondence issues.

(2) The following table is a guide in corresponding with the taxpayer on Entity issues, it isn't all-inclusive.

If ...

And ...

Fill-in(s) ...

Tax Period is missing

You can't determine the correct tax period through IDRS research and attachments

We’re unable to correct your account with the information you provided on your amended return. Please submit another Form 1040-X being sure to provide the tax period. If amending more than one tax year, you must file a separate return for each year.

The taxpayer tries to submit an amended return for multiple tax periods on a single amended return

 

We’re unable to correct your account with the information you provided on your amended return. Please submit another Form 1040-X being sure to provide the tax period. If amending more than one tax year, you must file a separate return for each year.

Primary TIN and/or Secondary TIN can't be determined

ALL attempts have been made (e.g., reviewed attachments, IDRS research, etc.) to secure the TIN

We’re unable to correct your account with the information you provided on your amended return. Your Social Security number or your spouse’s Social Security number is missing or doesn't show nine digits. Please submit another Form 1040-X with the correct number(s).

TP is changing to FS 2 (MFJ) and the Secondary TIN can't be determined

ALL attempts have been made (e.g., reviewed attachments, IDRS research, etc.) to secure the TIN

We’re unable to correct your account with the information you provided on your amended return. Your Social Security number or your spouse’s Social Security number is missing or doesn't show nine digits. Please submit another Form 1040-X with the correct number(s).

The TP is changing to FS 4 (HOH)

The TP is claiming a qualifying non-dependent and the name of the QND isn't provided.

We’re unable to correct your account with the information you provided on your amended return. Your dependent’s name or taxpayer identification number (or both) is missing, incomplete, or doesn’t match our records. Please submit another Form 1040-X with the correct information.

The TP is changing to FS 4 (HOH)

Removing all dependents claimed and doesn't change to FS 1 (Single) or provide the name of the QND.

We’re unable to correct your account with the information you provided on your amended return. Your dependent’s name or taxpayer identification number (or both) is missing, incomplete, or doesn’t match our records. Please submit another Form 1040-X with the correct information.

The dependent name and/or TIN is missing, or TIN and/or name doesn't match CC INOLE, or TIN can't be determined through IDRS research

The taxpayer has not indicated a religious (e.g., “Amish,” “Mennonite,” or “Form 4029”) or conscience-based objection to obtaining a taxpayer identification number (TIN),

We’re unable to correct your account with the information you supplied on your amended return. The name or taxpayer identification number of the person you claimed as a dependent on Form 1040X, Part I, Page 2 is either missing, incomplete, or doesn't match our records. Please submit another Form 1040-X with the corrected information.

The dependent name and/or TIN is missing, or TIN and/or name doesn't match CC INOLE, or TIN can't be determined through IDRS research

There’s a statement indicating either the dependent isn't deceased or was born before the tax year if deceased

We’re unable to correct your account with the information you supplied on your amended return. The name or taxpayer identification number of the person you claimed as a dependent on Form 1040X, Part I, Page 2 is either missing, incomplete, or doesn't match our records. Please submit another Form 1040-X with the corrected information.

One or more ITIN(s) is Inactive

The entire return is unprocessable because of an increase to a credit that is based on an inactive ITIN

We’re unable to process your amended return. Please submit a completed Form W-7 application with supporting document(s) to renew the inactive or expired individual taxpayer identification number (ITIN) listed on your return.

One or more ITIN(s) is Inactive

Some issues are processable and the allowable adjustment changes the taxpayer’s expected refund/balance due

We’re unable to process your amended return as submitted. There was one, or more, inactive individual taxpayer identification number (ITIN), that caused a change to your return. Please submit a completed Form W-7 application with supporting document(s) to renew the inactive or expired ITIN listed on your return.

(3) The following table is a guide in corresponding with the taxpayer for missing Forms and Schedules, it isn't all-inclusive.

If ...

And ...

Fill-in(s) ...

The amount shown on a supporting form or schedule differs from the amount shown on the Form 1040-X

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

We’re unable to correct your account with the information you supplied on your amended return. The information provided on [insert Form or Schedule number, Title] doesn't support the entry made on your Form 1040-X. Please submit another Form 1040-X with any documentation necessary to support your claim.

Schedule A, Itemized Deductions, is missing

The TP is changing from a standard deduction to itemized deduction or TP is increasing deductions on an existing Schedule A and doesn't explain the type of deduction and the change isn't the result of a ripple effect

We’re unable to correct your account with the information you provided on your amended return. Schedule A, Itemized Deductions, to support your claim was missing. Please submit another Form 1040-X with Schedule A.

Schedule EIC, Earned Income Credit

Is missing and the change isn't the result of a ripple effect

We’re unable to correct your account with the information you provided on your amended return. Schedule EIC, Earned Income Credit, to support your claim was missing, incomplete, or contains incorrect information. Please submit another Form 1040-X with a completed Schedule EIC.

Schedule EIC, Earned Income Credit

The qualifying child's SSN doesn't verify

We’re unable to correct your account with the information you provided on your amended return. Schedule EIC, Earned Income Credit, to support your claim was missing, incomplete, or contains incorrect information. Please submit another Form 1040-X with a completed Schedule EIC.

Schedule LEP, Request for Change in Language Preference

Schedule LEP was either illegible, had multiple selections, was incomplete, or missing.

We’re unable to process your Schedule LEP, Request for Change in Language Preference, because it was either illegible, had multiple selections, was incomplete, or missing. Please complete and submit a new Schedule LEP, Request for Change in Language Preference.

Schedule R, Credit for the Elderly or the Disabled, is missing or incomplete

Any amount claimed

We’re unable to correct your account with the information you provided on your amended return. Schedule R, Credit for the Elderly or the Disabled, to support your claim was missing. Please submit another Form 1040-X with Schedule R.

Schedule SE, Self-Employment Tax,

The schedule is attached and the return is FS 2 and both taxpayers have SE tax they have combined their SE tax onto one Schedule SE

We’re unable to correct your account with the information you provided on your amended return. Please submit another Form 1040-X with Schedule SE, Self Employment Tax.
Note: On a married filing join return and both spouses have self-employment income (SEI) or you're unable to determine which spouse the SEI belongs to, use an open paragraph to add the fill-in: If filing jointly and both spouses have self-employment income (SEI), each spouse must file a separate Schedule SE. If only one spouse has SEI, list only that spouse's name on the Schedule SE.

Schedule SE, Self-Employment Tax,

You can't determine which TP account to adjust

We’re unable to correct your account with the information you provided on your amended return. Please submit another Form 1040-X with Schedule SE, Self Employment Tax.
Note: On a married filing join return and both spouses have self-employment income (SEI) or you're unable to determine which spouse the SEI belongs to, use an open paragraph to add the fill-in: If filing jointly and both spouses have self-employment income (SEI), each spouse must file a separate Schedule SE. If only one spouse has SEI, list only that spouse's name on the Schedule SE.

Form 1040-X lines 1 – 15 Columns A and C match the information on IDRS

There's no explanation of the change, and you're unable to determine through attachments

We’re unable to correct your account with the information you supplied on your amended return. There’s not a sufficient explanation to determine the changes you’ve requested. Please submit another Form 1040-X with an explanation telling us what changes you’re making to your income, deductions, or credits, and the reason for each change.

Form 2106, Employee Business Expenses, is missing; there's no explanation of source of the miscellaneous deductions

The amount of the unreimbursed employee expense ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

We’re unable to correct your account with the information you provided on your amended return. Form 2106, Employee Business Expenses, to support your claim was missing. Please submit another Form 1040-X with Form 2106.

Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, is missing

The amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on line 15 of Form 1040-X

We’re unable to correct your account with the information you provided on your amended return. Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, to support your claim was missing. Please submit another Form 1040-X with Form 2439. A duplicate or photocopy of Form 2439 is acceptable.

Form 2441, Child and Dependent Care Expenses, is missing

The change isn't the result of a ripple effect

We’re unable to correct your account with the information you provided on your amended return. Form 2441, Child and Dependent Care Expenses, to support your claim was missing. Please submit another Form 1040-X with Form 2441.

Form 2441, Child and Dependent Care Expenses, is missing

Lines 1c or 2b can't be determined through research

We're unable to correct your account with the information you provided on your amended return. The name and taxpayer identification number (TIN) of the care provider or individual that qualifies you for the Form 2441, Child and Dependent Care Expenses, was missing. Please submit another Form 1040-X with Form 2441.

Form 3800, General Business Credit, or the supporting forms are missing for a specific credit

The amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

We're unable to correct your account with the information you provided on your amended return. Form [XXXX], Title, to support the changes you’ve made was missing. Please submit another Form 1040-X along with a completed Form [XXXX].

Note: Request the specific credit form. If the specific credit isn't known, request Form 3800, General Business Credit.

Form 4136, Credit for Federal Tax Paid on Fuels, is missing

The amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

We’re unable to correct your account with the information you provided on your amended return. Form 4136, Credit For Federal Tax Paid on Fuels, to support your claim was missing. Please submit another Form 1040-X with Form 4136.

Form 4684, Casualties and Thefts

Form 4684, Casualties and Thefts, is missing.

Send Letter 324C

Form 4684, Casualties and Thefts

The itemized deduction amount was recalculated

We changed your total itemized deductions. On your Schedule A, Itemized Deductions, you showed [$XXX] for your Casualty and Theft Losses; however, the correct amount is [$XXX]. For more information, see www.irs.gov/Form4684.

Form 4684, Casualties and Thefts

The standard deduction amount was recalculated

When you claim a qualified disaster loss, you’re entitled to your standard deduction plus an increased amount for your net loss. We changed your return to deduct the standard deduction plus the qualified disaster loss because the total was more than your itemized deductions. For more information, see www.irs.gov/Form4684.

Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts

If the taxpayer is reporting they are not subject to the 10 percent penalty, Form 5329 must be attached. See IRM 3.11.6.14.2.4.1, Additional Tax on Early Distribution - Form 5329 and Form 1099-R (Line 10).

We’re unable to correct your account with the information you provided on your amended return. Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, to support your claim was missing. Please submit another Form 1040-X with Form 5329.

Form 5695, Residential Energy Credits, is missing

The change isn't the result of a ripple effect or ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

We’re unable to correct your account with the information you provided on your amended return. Form 5695, Residential Energy Credits, to support the changes you’ve made was missing. Please submit another Form 1040-X along with a completed Form 5695.

Form 6478, Biofuel Producer Credit, is missing and Form 3800, General Business Credit, isn't attached

Any amount claimed

We’re unable to correct your account with the information you provided on your amended return. Form 6478, Biofuel Producer Credit, to support the changes you’ve made was missing. Please submit another Form 1040-X along with a completed Form 6478.

Form 8606, Nondeductible IRAs, isn't attached

The taxpayer is reporting or has indicated a change to a Nondeductible IRA in the explanation part of the Form 1040-X

We’re unable to correct your account with the information you provided on your amended return. Form 8606, Nondeductible IRAs, to support your claim was missing. Please submit another Form 1040-X with Form 8606.

Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, is missing

A copy of the divorce decree or Form 2120 isn't attached

We’re unable to correct your account with the information you provided on your amended return. Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, to support your claim was missing. Please submit another Form 1040-X with Form 8332.

Schedule 8812, Credits for Qualifying Children and Other Dependents, is incomplete

Can't be perfected or "dummied" by using AMS worksheets

We’re unable to correct your account with the information you provided on your amended return. Schedule 8812, Credits for Qualifying Children and Other Dependents, to support the changes you’ve made was missing. Please submit another Form 1040-X with a completed Schedule 8812.

Form 8396, Mortgage Interest Credit, is missing

The amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

We’re unable to correct your account with the information you provided on your amended return. Form 8396, Mortgage Interest Credit, to support the changes you’ve made was missing. Please submit another Form 1040-X with a completed Form 8396.

Form 8826, Disabled Access Credit, is missing and Form 3800, General Business Credit, isn't attached

Any amount claimed

We’re unable to correct your account with the information you provided on your amended return. Form 8826, Disabled Access Credit, to support your claim was missing. Please submit another Form 1040-X with a completed Form 8826.

Form 8834, Qualified Electric Vehicle Credit, is missing and Form 3800, General Business Credit, isn't attached

The amount claimed isn't the result of a ripple effect

We’re unable to correct your account with the information you provided on your amended return. Form 8834, Qualified Electric Vehicle Credit, to support your claim was missing. Please submit another Form 1040-X with a completed Form 8834.

Form 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit, is missing and Form 3800, General Business Credit, isn't attached

The amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

We’re unable to correct your account with the information you provided on your amended return. Form 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit, to support your claim was missing. Please submit another Form 1040-X with a completed Form 8835.

Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), (line 7 and/or 15 of Form 1040-X) is attached

The amount claimed isn't the result of a ripple effect

We’re unable to correct your account with the information you provided on your amended return. Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), to support the changes you’ve made was missing or incomplete. Please submit another Form 1040-X with a completed Form 8863.

Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), (line 7 and/or 15 of Form 1040-X) is attached

The EIN is missing and can't be determined through attachments or IDRS research,

We’re unable to correct your account with the information you provided on your amended return. Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), to support the changes you’ve made was missing or incomplete. Please submit another Form 1040-X with a completed Form 8863.

Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), (line 7 and/or 15 of Form 1040-X) is attached

Lines 20 thru 22 in Part III of Form 8863 are not complete

We’re unable to correct your account with the information you provided on your amended return. Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), to support the changes you’ve made was missing or incomplete. Please submit another Form 1040-X with a completed Form 8863.

Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), (line 7 and/or 15 of Form 1040-X) is attached

The student’s name and/or TIN is missing and can't be determined

Note: Form 1098-T may be used to determine the student’s name or TIN.

We’re unable to correct your account with the information you provided on your amended return. Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), to support the changes you’ve made was missing or incomplete. Please submit another Form 1040-X with a completed Form 8863.

Form 8864, Biodiesel and Renewable Diesel Fuels Credit, is missing and Form 3800, General Business Credit, isn't attached

Any amount claimed

We’re unable to correct your account with the information you provided on your amended return. Form 8864, Biodiesel and Renewable Diesel Fuels Credit, to support your claim was missing. Please submit another Form 1040-X with a completed Form 8864.

Form 8880, Credit for Qualified Retirement Savings Contributions, is missing

The amount claimed≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

We’re unable to correct your account with the information you provided on your amended return. Form 8880, Credit for Qualified Retirement Savings Contributions, to support the changes you’ve made was missing. Please submit another Form 1040-X along with a completed Form 8880.

Form 8907, Nonconventional Source Fuel Credit, is missing and Form 3800, General Business Credit, isn't attached

Any amount claimed

We’re unable to correct your account with the information you provided on your amended return. Form 8907, Nonconventional Source Fuel Credit, to support the changes you’ve made was missing. Please submit another Form 1040-X along with a completed Form 8907.

Form 8910, Alternative Motor Vehicle Credit, is missing, and Form 3800, General Business Credit, isn't attached

Any amount claimed

We’re unable to correct your account with the information you provided on your amended return. Form 8910, Alternative Motor Vehicle Credit, to support the changes you’ve made was missing. Please submit another Form 1040-X along with a completed Form 8910.

Form 8911, Alternative Fuel Vehicle Refueling Property Credit, is missing, and Form 3800, General Business Credit, isn't attached

Any amount claimed

We’re unable to correct your account with the information you provided on your amended return. Form 8911, Alternative Fuel Vehicle Refueling Property Credit, to support the changes you’ve made was missing. Please submit another Form 1040-X along with a completed Form 8911.

Form 8917, Tuition and Fees Deduction, is missing

Any amount claimed

We’re unable to correct your account with the information you provided on your amended return. Form 8917, Tuition and Fees Deduction, to support the changes you’ve made was missing. Please submit another Form 1040-X with Form 8917.

Form 8936, Clean Vehicle Credits, and/or Form 8936 Schedule A, is missing

The Form 8936, and/or Form 8936 Schedule A, is missing

We’re unable to correct your account with the information you provided on your amended return. Form 8936, Clean Vehicle Credits, and/or Form 8936, Schedule A, Clean Vehicle Credit Amount, which are required, to support the changes you’ve made was incomplete or missing. Please submit another Form 1040-X along with a completed Form 8936.

Form 8936, Clean Vehicle Credits, and/or Form 8936 Schedule A, is missing

The VIN number is missing

We’re unable to correct your account with the information you provided on your amended return. The Vehicle Identification Number (VIN) on Form 8936, Schedule A, Clean Vehicle Credit Amount, which is required to support the changes you’ve made, was made was missing. Please submit another Form 1040-X and a completed Form 8936, Schedule A, with a VIN.

Form W-2/W-2C is missing or doesn't reflect the exclusion

An amended return is filed claiming an IRC 127 exclusion of $5,250 or less

We’re unable to correct your account with the information you provided on your amended return. Form W-2, Wage and Tax Statement, to substantiate your reduction of wages due to employer provided educational assistance benefits was missing. Please submit another Form 1040-X with Form W-2 to substantiate your claim. We’ll accept a duplicate from your employer or a photocopy.

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

There's no explanation of the change and you're unable to determine through attachments

We’re unable to correct your account with the information you supplied on your amended return. There’s not a sufficient explanation to determine what changes are being requested. Please submit another Form 1040-X with an explanation to tell us what changes were made to your income, deductions, or credits with the amounts and reason for each change.

There's a new unsubstantiated credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

There's no explanation of the change for the credit

We’re unable to correct your account with the information you supplied on your amended return. There’s not a sufficient explanation to determine what changes are being requested. Please submit another Form 1040-X with an explanation to tell us what changes were made to your income, deductions, or credits with the amounts and reason for each change.

Form 1040-X Column A doesn't match IDRS

The return can't be perfected and there's not an amended Form 1040 attached

We’re unable to correct your account with the information you provided on your amended return. The amounts entered in Column A, Original amount, don't match our records, and it’s unclear what adjustment(s) are being requested. Please verify your information and submit another Form 1040-X.

Form 1040-X Column A does match the information on IDRS

The return can't be perfected and there's not an amended Form 1040 attached

We’re unable to correct your account with the information you provided on your amended return, it’s unclear what adjustment(s) are being requested. Please verify your information and submit another Form 1040-X.

Any Form or Schedule (not previously listed) is missing to support the change

The refund ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for net balance due. See IRM 3.11.6.10.3, Corresponding on Net Balance Due Returns (Letter 324C).

We're unable to correct your account with the information you supplied on your amended return. [Form/Schedule XXXX] to support your claim was missing. Please submit another Form 1040-X with [Form/Schedule XXXX].

Notice 2014-7 exclusion is claimed

The required information is missing

  1. First fill-in: Please provide the full name and social security number of the person receiving homecare, copies of third-party documents for you and the person receiving homecare to verify that they resided in the same home for the tax year the is being credit claimed, and evidence the individual receiving care is under a state Medicaid waiver program.

  2. Second fill-in: Acceptable documents are legible copies of governmental and social service documents, medical and utility bills for the tax year the is credit claimed. Verification showing the person receiving homecare, and all payments being claimed for the exclusion were for the tax year are through a qualified state Medicaid waiver program. Handwritten notes and letters won’t be considered.

(4) The following table is a guide in corresponding with the taxpayer for signature issues.

If ...

And ...

Fill-in(s) ...

A signature is missing

Conditions in IRM 3.11.6.4.6, Signature, paragraphs 5, 6, 8, and 9 don't apply

We're unable to process your amended return because it wasn’t signed. Please complete, sign, and submit another Form 1040-X.

A signature is missing on a decedent return

The return isn't signed by a surviving spouse, an executor, or an administrator

We're unable to process your amended return because it wasn’t signed. Please complete, sign, and submit another Form 1040-X. Additionally, if one spouse is deceased, then the surviving spouse must sign the return indicating “Filing as Surviving Spouse” in the signature area and include the date of death.

Caution: Don't address correspondence to the deceased taxpayer.

The return is signed by someone other than the taxpayer (there's clear indication that the TP is a minor child)

A parent didn't sign, or fiduciary relationship such as a Guardian is clearly identified and the tax decrease/credit increase ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

We're unable to process your amended return because it wasn’t signed by you. Please complete, sign, and submit another Form 1040-X. If you’re a parent signing for a minor child, you must sign the child’s name and your name, writing “parent of minor child” in the signature area.

The return is signed by someone other than the taxpayer

The following apply:

  • No General/Durable POA is attached

  • Form 2848 isn't attached

  • Form 8821, Tax Information Authorization, is attached and the appointee signed the return

  • There’s no declaration of good standing attached and POA is granted to an attorney, CPA enrolled agent, or enrolled actuary

We’re unable to process your amended return because it wasn't signed by you. Please complete, sign, and submit another Form 1040-X. If someone signs the return on your behalf, you must send us a power of attorney or court certificate or Form 2848, Power of Attorney and Declaration of Representative.

The signature on the return doesn't match a representative listed on CFINK, or no record is found,
or SIGN: field on CC CFINK is marked "NO"

Form 2848 isn't attached

We're unable to process your amended return because it wasn't signed by you. Please complete, sign, and submit another Form 1040-X. If you can’t write your name, please sign your mark with two witnesses present. The witnesses must also sign next to your mark.

The return is signed with an “X”

Two witnesses didn't sign

We're unable to process your amended return because it wasn't signed. Please complete, sign, and submit another Form 1040-X. If you can’t write your name, please sign your mark with two witnesses present. The witnesses must also sign next to your mark.

The jurat is missing

Note: if the jurat has been altered route as Frivolous

There's no amended Form 1040 attached or if attached the jurat is missing

Send 324C letter and don't mail the return back.

The signature is missing

Correspondence is being sent per IRM 3.11.6.10.5, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP)

We're unable to process your amended return because it wasn't signed. Additionally, you can’t claim (what’s being disallowed) because [reason for disallowance]. Please complete, sign, and submit another Form 1040-X.

Letter 324C Correspondence Table of Issues

(1) When sending Letter 324C use the appropriate fill-in from the tables below. These tables address the most common correspondence issues.

(2) The following table is a guide in corresponding with the taxpayer on Entity issues, it isn't all-inclusive.

If ...

And ...

Fill-in(s) ...

Tax Period is missing

You can't determine the correct tax period through IDRS research and attachments

Send Letter 178C.

The taxpayer tries to submit an amended return for multiple tax periods on a single amended return

 

Send Letter 178C.

Primary TIN and/or Secondary TIN can't be determined

ALL attempts have been made (e.g., reviewed attachments, IDRS research, etc.) to secure the TIN

Use the appropriate paragraphs from the Letter 324C .

TP is changing to FS 2 (MFJ) and the Secondary TIN can't be determined

ALL attempts have been made (e.g., reviewed attachments, IDRS research, etc.) to secure the TIN

Use the appropriate paragraphs from the Letter 324C .

The TP is changing to FS 4 (HOH)

The TP is claiming a qualifying non-dependent and the name of the QND isn't provided.

Use the appropriate paragraphs from the Letter 324C.

The TP is changing to FS 4 (HOH)

Removing all dependents and doesn't change to FS 1 (Single) or provide the name of the QND.

Use the appropriate paragraphs from the Letter 324C .

The dependent name and/or TIN is missing, or TIN and/or name doesn't match CC INOLE, or TIN can't be determined through IDRS research

The taxpayer has not indicated a religious (e.g., “Amish,” “Mennonite,” or “Form 4029”) or conscience-based objection to obtaining a taxpayer identification number (TIN)

Use the appropriate paragraphs from the Letter 324C.

The dependent name and/or TIN is missing, or TIN and/or name doesn't match CC INOLE, or TIN can't be determined through IDRS research

There’s a statement indicating either the dependent isn't deceased or was born before the tax year if deceased

Use the appropriate paragraphs from the Letter 324C .

One or more ITIN(s) is Inactive

The entire return is unprocessable because of an increase to a credit that is based on an inactive ITIN

Send Letter 178C.

One or more ITIN(s) is Inactive

Some issues are processable and the allowable adjustment changes the taxpayer’s expected refund/balance due

Send Letter 178C.

(3) The following table is a guide in corresponding with the taxpayer for missing Forms and Schedules, it isn't all-inclusive.

If ...

And ...

Fill-in(s)

The amount shown on a supporting form or schedule differs from the amount shown on the Form 1040-X

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Use the appropriate paragraphs from the Letter 324C .

Schedule A, Itemized Deductions, is missing

The TP is changing from a standard deduction to itemized deduction or TP is increasing deductions on an existing Schedule A and doesn't explain the type of deduction and the change isn't the result of a ripple effect

Use the appropriate paragraphs from the Letter 324C .

Schedule EIC, Earned Income Credit

Is missing and the change isn't the result of a ripple effect

Use the appropriate paragraphs from the Letter 324C.

Schedule EIC, Earned Income Credit

The qualifying child's SSN doesn't verify

Use the appropriate paragraphs from the Letter 324C .

Schedule LEP, Request for Change in Language Preference

Schedule LEP was either illegible, had multiple selections, was incomplete, or missing.

Use the appropriate paragraphs from the Letter 324C .

Schedule R, Credit for the Elderly or the Disabled, is missing or incomplete

Any amount claimed

Use the appropriate paragraphs from the Letter 324C .

Schedule SE, Self-Employment Tax

The schedule is attached and the return is FS 2 and both taxpayers have SE tax. The taxpayers have combined their SE tax onto one Schedule SE

Taxpayers filing jointly must each file a separate Schedule SE if both spouses have self-employment income.
Note: On a married filing join return and both spouses have self-employment income (SEI) or you're unable to determine which spouse the SEI belongs to, use an open paragraph to add the fill in: Taxpayers filing jointly must each file separate Schedules SE if they both have self-employment income.

Schedule SE, Self-Employment Tax

You can't determine which TP account to adjust

Taxpayers filing jointly must each file a separate Schedule SE if both spouses have self-employment income.
Note: On a married filing join return and both spouses have self-employment income (SEI) or you're unable to determine which spouse the SEI belongs to, use an open paragraph to add the fill in: Taxpayers filing jointly must each file separate Schedules SE if they both have self-employment income.

Form 1040-X lines 1 – 15 Columns A and C match the information on IDRS

There's no explanation of the change, and you're unable to determine through attachments

Use the appropriate paragraphs from the Letter 324C .

Form 2106, Employee Business Expenses, is missing; there's no explanation of source of the miscellaneous deductions

The amount of the unreimbursed employee expense ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Use the appropriate paragraphs from the Letter 324C .

Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, is missing

The amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on line 15 of Form 1040-X

Use the appropriate paragraphs from the Letter 324C .

Form 2441, Child and Dependent Care Expenses, is missing

The change isn't the result of a ripple effect

Use the appropriate paragraphs from the Letter 324C.

Form 2441, Child and Dependent Care Expenses, is missing

Lines 1c or 2b can't be determined through research

Use the appropriate paragraphs from the Letter 324C .

Form 3800, General Business Credit, or the supporting forms are missing for a specific credit

The amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Use the appropriate paragraphs from the Letter 324C .

Note: Request the specific credit form. If the specific credit isn't known, request Form 3800, General Business Credit.

Form 4136, Credit for Federal Tax Paid on Fuels, is missing

The amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Use the appropriate paragraphs from the Letter 324C .

Form 4684, Casualties and Thefts

Form 4684, Casualties and Thefts, is missing.

Use the appropriate paragraphs from the Letter 324C.

Form 4684, Casualties and Thefts

The itemized deduction amount was recalculated

Send Letter 178C.

Form 4684, Casualties and Thefts

The standard deduction amount was recalculated

Send Letter 178C .

Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts

If the taxpayer is reporting they are not subject to the 10 percent penalty, Form 5329 must be attached. See IRM 3.11.6.14.2.4.1, Additional Tax on Early Distribution - Form 5329 and Form 1099-R (Line 10).

Use the appropriate paragraphs from the Letter 324C .

Form 5695, Residential Energy Credits, is missing

The change isn't the result of a ripple effect or ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Use the appropriate paragraphs from the Letter 324C .

Form 6478, Biofuel Producer Credit, is missing and Form 3800, General Business Credit, isn't attached

Any amount claimed

Use the appropriate paragraphs from the Letter 324C .

Form 8606, Nondeductible IRAs, isn't attached

The taxpayer is reporting or has indicated a change to a Nondeductible IRA in the explanation part of the Form 1040-X

Use the appropriate paragraphs from the Letter 324C .

Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, is missing

A copy of the divorce decree or Form 2120 isn't attached

Use the appropriate paragraphs from the Letter 324C .

Schedule 8812, Credits for Qualifying Children and Other Dependents, is incomplete

Can't be perfected or "dummied" by using AMS worksheets

Use the appropriate paragraphs from the Letter 324C .

Form 8396, Mortgage Interest Credit, is missing

The amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Use the appropriate paragraphs from the Letter 324C .