Section 2. Notice Review - Business Master File (BMF) Notice Review

(1) This transmits revised IRM 3.14.2, Notice Review - Business Master File (BMF) Notice Review.

(1) IRM 3.14.2 - Removed all references to CP notices 947A, B, C and 956 as they are obsolete.

(2) IRM 3.14.2.1.1 - Removed Control D stand alone and added it to NRPS as the batches are located in Control D.

(3) IRM 3.14.2.1.3 - Changed title to Roles and Responsibilities per IRM 1.11.2.2.4.

(4) IRM 3.14.2.1.3(1) - Changed Campus to Submission Processing Center (SPC).

(5) IRM 3.14.2.1.4(1) - Restructured the sentence and added reviewing taxpayer accounts to more clearly state the program goals for Notice Review.

(6) IRM 3.14.2.1.5 - Added Program Control section per IRM 1.11.2.2.4, thereby renumbering the remainder of the section.

(7) IRM 3.14.2.1.5(1) - Added BEARS information to request Notice Review programs.

(8) IRM 3.14.2.1.5(2) - Added information about weekly sample priority and assignment.

(9) IRM 3.14.2.1.6 - Renamed the section Terms and Acronyms per IRM 1.11.2.2.4.

(10) IRM 3.14.2.1.6(1) - Added link to Acronyms Database for a comprehensive list and added FTP, HQ, KCSPC, and MI to the acronym table.

(11) IRM 3.14.2.1.7(1) - Removed Control D and added it in front of NRPS as the NRPS system is not a research tool but the Control D NRPS batch is a tool.

(12) IRM 3.14.2.2.3(2) - Clarified interest charged on amounts paid after the date of notices and demand or 23C date.

(13) IRM 3.14.2.3(1) - Added note to link to Exhibit 3.14.2-3 for Computer Paragraph notice information. IPU 25U0148 issued 01-31-2025.

(14) IRM 3.14.2.4.1(7) - Added definitions and acronyms.

(15) IRM 3.14.2.4.1.2(4) - Corrected print-outs to reports.

(16) IRM 3.14.2.4.1.3 - Updated Figure 3.14.2-1 to identify the items on the NRPS batch header page.

(17) IRM 3.14.2.4.2(1) - Added OLNR definition, deleted the word program as OLNR is now a Windows based platform, and added a note to see OLNR Access and System Information.

(18) IRM 3.14.2.4.2.3 - Changed title from OLNR Access and Notice Disposition to OLNR Access and System Information for clarity.

(19) IRM 3.14.2.4.2.3(1) - Defined OLNR and BEARS and added OLNR request roles in an alpha list.

(20) IRM 3.14.2.4.2.3(1) a - Added OLNR User role information.

(21) IRM 3.14.2.4.2.3(1) b - Added Report User role information.

(22) IRM 3.14.2.4.2.3(1) c - Added QA User role information.

(23) IRM 3.14.2.4.2.3(1) d - Added PowerUser role information and a caution note stating that users must have a valid BEARS request, be active in OLNR, and included the steps to activate a user.

(24) IRM 3.14.2.4.2.3(2) - Added the links for OLNR at all three Notice Review locations.

(25) IRM 3.14.2.5.2.1(1) - Clarified using IAT to complete the Form 2275 and removed faxing instructions.

(26) IRM 3.14.2.5.2.4(2) a - Added outside correction or voiding to the table.

(27) IRM 3.14.2.5.2.4(2) b - Added CC NRP97 input information.

(28) IRM 3.14.2.5.3(7) e - Removed paragraph per Counsel decision that Form 8655 does not allow a request for penalty abatement. IPU 25U0241 issued 02-20-2025.

(29) IRM 3.14.2.5.3.2(5) a - Added information on how to update the entity tab in OLNR; choose E.

(30) IRM 3.14.2.5.3.4(2) - Clarified which tools to use when reviewing a service center address.

(31) IRM 3.14.2.5.3.4(5) - Changed from must be used to is mandated for the IAT Address tool.

(32) IRM 3.14.2.5.4(3) b - Changed XMIT to page up or transmit for clarity.

(33) IRM 3.14.2.5.4.1 - Updated title to CC NRP97 for clarity.

(34) IRM 3.14.2.5.4.1(3) - Added no other information is needed to display the response screen.

(35) IRM 3.14.2.6.1.1.3(3) - Updated the caution to clearly state Notice Review tax examiners cannot act outside of the IRM list of entity changes.

(36) IRM 3.14.2.6.1.1.3(4) - Moved extraneous information from caution in the paragraph above to this section for clarity.

(37) IRM 3.14.2.6.1.1.3(6) b - Added if a building or suite number is missing correct the entity using the IAT Address tool.

(38) IRM 3.14.2.6.1.1.3(7) - Created new paragraph for clarity to include reasons Notice Review does not change the entity. Moved previous 3.14.2.6.1.1.3(6) e, f, & h to this location.

(39) IRM 3.14.2.6.1.1.4(3) - Updated note for language clarity for return due date.

(40) IRM 3.14.2.6.1.1.6(2) - Removed check from an example of acceptable signatures as the signature must be accompanied by a jurat statement.

(41) IRM 3.14.2.6.1.2(2) - Updated the table to “no additional action required” for clarity and changed void terminology to delete to match OLNR language.

(42) IRM 3.14.2.6.1.2(3) - Removed unnecessary center column from the table.

(43) IRM 3.14.2.6.1.3(3) - Simplified the caution and removed redundant information per SME request.

(44) IRM 3.14.2.6.1.3(4) - Added Entity Control routing for trust name change to this item previously in (3) per SME request.

(45) IRM 3.14.2.6.1.5(2) - Removed outdated Debtor Master File offset from before 1/11/1999.

(46) IRM 3.14.2.6.1.5(6) - Added alpha list to explain debt liability indicators 0 and 1.

(47) IRM 3.14.2.6.1.5.1(3) b - Added transfer the credit elect using the IAT Credit Transfer tool.

(48) IRM 3.14.2.6.1.7(1) - Added that the NRPS data is found at the beginning of each notice in the batch.

(49) IRM 3.14.2.6.1.7(2) - Added see the following sections for more information.

(50) IRM 3.14.2.6.1.7.1(3) - Added common pending statuses seen in Notice Review.

(51) IRM 3.14.2.6.1.7.1(5) - Added see the following sections for more information.

(52) IRM 3.14.2.6.1.7.1.1 - Added section Pending (PN, RS, or UP) Adjustment Transactions.

(53) IRM 3.14.2.6.1.7.1.2 - Added section Pending (PN, RS, or UP) Credit or Debit Transactions (Payments and Credit Transfers).

(54) IRM 3.14.2.6.2(3) - Clarified the exception to state hold refund as needed and maintain an open control base.

(55) IRM 3.14.2.6.2(4) h - Updated RECON to more clearly state it is used to get the most current data.

(56) IRM 3.14.2.6.3.1(1) a - Updated to more clearly state what timeframe is current.

(57) IRM 3.14.2.6.3.2(2) - Clarified the then box that the original notice will be voided and the additional notice will be selected using the LCF and then voided.

(58) IRM 3.14.2.6.4.3(5) - Changed the mis numbered list and clarified the research steps.

(59) IRM 3.14.2.6.4.4(1) - Removed FEMA per Counsel directive as disaster declaration is allowed without FEMA input.

(60) IRM 3.14.2.6.4.4(3) a - Changed extended disaster due date to postponed disaster due date per Counsel directive.

(61) IRM 3.14.2.6.4.4(5) - Added to route using Form 5101.

(62) IRM 3.14.2.6.4.6(3) b - Added Exception to better explain corporate short year due dates for June.

(63) IRM 3.14.2.6.4.7.1(6) a - Clarified that the current cycle notice is voided if a better address cannot be found.

(64) IRM 3.14.2.6.4.8(2) - Added a note that these CP notices will not be sent after 2025.

(65) IRM 3.14.2.6.4.9(1) - Added more detail and separated the information for bonds into separate bullets per Counsel suggestion.

(66) IRM 3.14.2.6.4.10 - Removed specific IRC and legislative locations per SME request since employees do not research the tax law to process these cases; minimal review is required since these credits are expired. In addition the section was changed to past tense to indicate the expiration of the credits discussed.

(67) IRM 3.14.2.6.4.10(1) - Removed original opening paragraph and replaced it with COVID expiration information.

(68) IRM 3.14.2.6.4.10(2) - Added that OB3 legislation terminated several climate provisions enacted by IRA 2022.

(69) IRM 3.14.2.6.4.10(5) - Added that OB3 legislation amended ERC for 2021 and prohibits the IRS from allowing ERC claims unless the claims were filed on or before 1-31-2024.

(70) IRM 3.14.2.6.4.10.1 - Changed the section to past tense.

(71) IRM 3.14.2.6.4.10.1(4) - Added Qualified Commercial Clean Vehicles credit was terminated for vehicles acquired after 9/30/2025 to the table.

(72) IRM 3.14.2.6.4.10.1.1 - Changed the section to past tense.

(73) IRM 3.14.2.6.4.10.1.1(1) - Updated the middle table column for clarity and to streamline the information.

(74) IRM 3.14.2.6.4.10.1.2 - Changed the section to past tense.

(75) IRM 3.14.2.6.4.10.1.2(1) - Updated the middle table column for clarity and to streamline the information.

(76) IRM 3.14.2.6.4.10.1.3 - Changed the section to past tense.

(77) IRM 3.14.2.6.4.10.2 - Changed the section to past tense.

(78) IRM 3.14.2.6.4.10.3 - Changed the section to past tense.

(79) IRM 3.14.2.6.4.10.3(7) - Added deferred payments and regular payments were made using the same methods.

(80) IRM 3.14.2.6.4.10.3.1 - Changed the section to past tense.

(81) IRM 3.14.2.6.4.10.4 - Changed the section to past tense.

(82) IRM 3.14.2.6.4.11(1) - Changed IRA includes tax and climate credits to IRA is a law applicable to tax and climate credits based on Counsel feedback.

(83) IRM 3.14.2.6.4.11.1(1) - Removed redundant timely filed sentence; removed credits and replaced with election and making the election instead of choosing for clarity.

(84) IRM 3.14.2.6.4.11.1(3) - Clarified that taxpayers must pre-register and receive the registration number before filing with the IRS and making an EPE.

(85) IRM 3.14.2.6.4.11.1(4) - Clarified the entities affected per Counsel feedback; edited one credit in the paragraph and table due to the applicable IRC. In addition, noted that Qualified Commercial Clean Vehicles was terminated by OB3 for vehicles acquired after September 30, 2025.

(86) IRM 3.14.2.6.4.11.1(5) - Clarified which taxpayers (including individuals) that are non-applicable entities are also eligible to make an EPE.

(87) IRM 3.14.2.6.4.11.2(1) - Clarified the treatment of EPE in regard to the due date of the return.

(88) IRM 3.14.2.6.4.11.3(1) - Added more information and mirrored EPE per Counsel feedback.

(89) IRM 3.14.2.6.4.11.3(2) - Added new paragraph with pre-registration statement and corrected table header which said EPE instead of TRE in error.

(90) IRM 3.14.2.6.5(1) - Clarified the TCJA of 2017 and corrected to past tense.

(91) IRM 3.14.2.6.5(2) - Changed to are required to report to reported since a new IRC 965 election can no longer be made.

(92) IRM 3.14.2.6.5(3) - Changed “intended to be” to “is subject to”.

(93) IRM 3.14.2.6.5(4) - Changed “can be made” to “are allowable”.

(94) IRM 3.14.2.6.5(4) - Changed “could be made” to “taxpayers could make”.

(95) IRM 3.14.2.6.5(6) - Corrected to past tense and removed bullet list not needed for notice processing.

(96) IRM 3.14.2.6.5(7) - Clarified that reporting in 2018 is different from 2017 and added citations.

(97) IRM 3.14.2.6.5(7) a - Removed redundant "any tax year with liability".

(98) IRM 3.14.2.6.5(8) - Moved previous paragraph (8) to the new 3.14.2.6.5.1, Identifying IRC 965 Elections and Payments.

(99) IRM 3.14.2.6.5(8) - Updated current paragraph previous (13) to clarify that excess remittance was applied to outstanding IRC 965 liability only in the inclusion year or the year IRC 965(i) election tax liability is assessed.

(100) IRM 3.14.2.6.5(9) - Deleted previous paragraph (9) table with line locations of inclusion year as the 2017 Form data is no longer necessary.

(101) IRM 3.14.2.6.5(10) - Deleted previous paragraph (10) table with line locations of inclusion year as the 2018 Form data is no longer necessary.

(102) IRM 3.14.2.6.5(11) - Deleted previous paragraph (11) table with line locations of inclusion year as the 2019 Form data is no longer necessary.

(103) IRM 3.14.2.6.5(12) - Moved to the new section, 3.14.2.6.5.1, Identifying IRC 965 Elections and Payments.

(104) IRM 3.14.2.6.5(14) - Moved to the new section, 3.14.2.6.5.1, Identifying IRC 965 Elections and Payments.

(105) IRM 3.14.2.6.5(15) - Moved to the new section, 3.14.2.6.5.1, Identifying IRC 965 Elections and Payments.

(106) IRM 3.14.2.6.5(16) - Moved to the new section, 3.14.2.6.5.1, Identifying IRC 965 Elections and Payments.

(107) IRM 3.14.2.6.5(17) - Deleted previous paragraph (17) at this location as the information is no longer needed to process returns.

(108) IRM 3.14.2.6.5.1 - Added new section, Identifying IRC 965 Elections and Payments, to assist tax examiners in identifying IRC 965 case impact and moved TC 971 AC 114 Explained to section 3.14.2.6.5.2.

(109) IRM 3.14.2.6.5.2(1) a - Added REQ77 to note for clarification, added an exception for IRC 965 in 2020 and corrected to past tense.

(110) IRM 3.14.2.6.5.2(1) b - Removed redundant statement about TC 971 AC 114 posting only to the inclusion or triggering event year.

(111) IRM 3.14.2.6.5.2(2) - Updated all citations due to section realignment and added title, IRC 965(i) Elections.

(112) IRM 3.14.2.6.5.3(4) - Removed former paragraph 4 redundant data alpha list about reporting tax inclusion.

(113) IRM 3.14.2.6.5.3(5) - Combined the information from the table in a paragraph stating that a Form 965-A is required for all IRC 965(i) electors each year until their liability is assessed and paid in full; added review the return and attachments when an IRC 965(i) election is made.

(114) IRM 3.14.2.6.5.3(6) - Removed former paragraph 6 unnecessary line numbers for reporting tax inclusion.

(115) IRM 3.14.2.6.5.3(7) - Reordered TC 971 data and clarified triggering event information.

(116) IRM 3.14.2.6.5.3(9) - Deleted table that was previously at this location and moved the other information to new section 3.14.2.6.5.1, Identifying IRC 965 Elections and Payments.

(117) IRM 3.14.2.6.5.3.1(3) - Changed the MISC table note to any subsequent year from the annual reporting.

(118) IRM 3.14.2.6.5.3.1(4) - Deleted former paragraph 4 due to redundancy and research steps from adjustment directions.

(119) IRM 3.14.2.6.5.3.1(4) - Clarified the table reference for TC 971 AC 165.

(120) IRM 3.14.2.6.5.3.1(5) - Clarified the table is for verifying IRC 965(i) TC 971 AC 165 transactions.

(121) IRM 3.14.2.6.5.4(1) - Removed redundant "election" from the deferral statement.

(122) IRM 3.14.2.6.5.4(3) - Moved caution statement for IRC 965(i) elections that may trigger and change to an IRC 965(h) election from beneath the alpha list.

(123) IRM 3.14.2.6.5.4(6) - Added IDRS to note to clarify where to identify DPC 64.

(124) IRM 3.14.2.6.5.4(7) - Added "in the inclusion year only" to clarify when the -R freeze will set.

(125) IRM 3.14.2.6.5.4(8) a - Removed unnecessary table with line numbers from prior year forms.

(126) IRM 3.14.2.6.5.4(8) a - Changed "for" to "with" to clarify the TC 971 triggered liability.

(127) IRM 3.14.2.6.5.4(8) b - Changed the note from "off of" to "on" to clarify BMF return entries.

(128) IRM 3.14.2.6.5.4(8) c - Added CRN to clarify the 263.

(129) IRM 3.14.2.6.5.4(8) e - Added review all possible inclusion year modules in BMFOLM.

(130) IRM 3.14.2.6.5.4(9) - Added caution statement for the table data date information.

(131) IRM 3.14.2.6.5.4(9) - Removed mis-numbered and redundant step list.

(132) IRM 3.14.2.6.5.4(9) - Added a caution before the table stating that the table dates only applied to an original IRC 965(h) inclusion; and IRC 965(i) inclusion that triggers and the taxpayer elects an (h) at that time will have different installment dates.

(133) IRM 3.14.2.6.5.4(10) - Removed CP 965 due to programming changes.

(134) IRM 3.14.2.6.5.4.1(5) - Removed redundant DPC 64 statements from the table.

(135) IRM 3.14.2.6.5.4.1(7) - Removed "if an adjustment is needed" to it a 971 is incorrect since a REQ77 could be confused with an account adjustment.

(136) IRM 3.14.2.6.5.4.1(9) - Moved table from former (16) when the inclusion year and/or triggering event year module is in a debit balance.

(137) IRM 3.14.2.6.5.4.1(10) - Clarified input for SEQ-NUM> field.

(138) IRM 3.14.2.6.5.4.1(11) - Clarified that the table is for leads only.

(139) IRM 3.14.2.6.5.4.1(12) - Clarified that the table is for leads only.

(140) IRM 3.14.2.6.5.4.1(13) - Clarified that the table is for leads only.

(141) IRM 3.14.2.6.5.4.1(15) - Deleted former paragraph (15) which contained duplicate information.

(142) IRM 3.14.2.6.5.4.1(16) - Moved table from former (16) to current paragraph (9).

(143) IRM 3.14.2.6.5.5 - Removed from the section CP notices 947A, 947B, 947C and 956 as they have be obsoleted and are no longer sent to taxpayers.

(144) IRM 3.14.2.6.5.5(3) - Updated the second bullet to follow the adjustment procedures, added take to a lead for adjustment if needed, and if there is a remaining liability to print the notice.

(145) IRM 3.14.2.6.5.5(4) - Added take to a lead for adjustment if needed.

(146) IRM 3.14.2.6.5.6(7) - Added paragraph to review all possible inclusion modules to verify payment placement.

(147) IRM 3.14.2.6.6.2(8) - Added see the campus directory for statute contact information.

(148) IRM 3.14.2.6.6.19(1) - Per Counsel feedback removed the word federally before declared disasters.

(149) IRM 3.14.2.6.7.1.5(2) b - Corrected extension capability for Form 706-NA.

(150) IRM 3.14.2.6.7.1.5(2) c - Added Form 8892 extension information for Form 709 and Form 709-NA.

(151) IRM 3.14.2.6.7.1.5(6) - Deleted redundant stop number and indicated Form 3465 should be attached.

(152) IRM 3.14.2.6.7.2 (6) a - Clarified payment pattern is a history.

(153) IRM 3.14.2.6.7.2(10) - Clarified payment pattern.

(154) IRM 3.14.2.6.8(4) d - Clarified in the exception note how to release Q- freeze.

(155) IRM 3.14.2.6.8(4) f - Added Caution that 3 cycles must remain before transferring credits on Q- freeze.

(156) IRM 3.14.2.6.8(5) b - Updated to clearly state what a zero tax return is and directed to 3.14.2.6.7.2 for more information.

(157) IRM 3.14.2.6.8(5) (i) - Removed outdated information about ordering paper vouchers and using RTR for payments after 2003 and added CC EFTPS.

(158) IRM 3.14.2.6.8(6) - Removed outdated information about ordering paper vouchers and check copies and added CC EFTPS definer E.

(159) IRM 3.14.2.6.8(6) c - Clarified the paragraph and linked to the correct citation paragraph for -A freeze.

(160) IRM 3.14.2.6.8(7) c - Added caution that at least three cycles must remain before initiating a credit transfer and what to do if less than three cycles remain; included -E freeze table.

(161) IRM 3.14.2.6.8(8) - Added Caution that 3 cycles must remain before transferring credits on Q- freeze and included -Q freeze decisions table that was previously only in 3.14.2.6.7.3(9).

(162) IRM 3.14.2.6.8(10) - Added Caution that 3 cycles must remain before transferring credits on Q- freeze.

(163) IRM 3.14.2.6.8(11) - Removed CP from the table rows and updated the table header and updated CP 268 conversion for programming changes.

(164) IRM 3.14.2.6.8(13) d - Removed IDRS field code and replaced with TC for tax examiner clarity.

(165) IRM 3.14.2.6.8(15) d- Clarified the adjustment needed for incorrect or doubled withholding or credits.

(166) IRM 3.14.2.6.8(16) d- Clarified when to use LCF, added which hold codes will prevent an additional notice from generating, and added the correct citation titles.

(167) IRM 3.14.2.6.8(17) - Clarified posting delay reason in the table, first then box; clarified the caution to state the notice is voided in OLNR and a history item is needed in IDRS.

(168) IRM 3.14.2.6.8(19) - Clarified that hold code 3 or 4 prevents another notice or CC NRP97 can intercept using LCF.

(169) IRM 3.14.2.6.8(20) - Clarified if a pending TC 150 or amended return, do not release the refund, and if voiding the notice leave a history item in IDRS.

(170) IRM 3.14.2.6.10.1(4) - Updated table for Failure to File electronically for dates after 12-31-2024. IPU 25U0148 issued 01-31-2025.

(171) IRM 3.14.2.6.10.1(4) - Updated table to add penalty amounts for tax returns due in 2026.

(172) IRM 3.14.2.6.10.2(1) - Removed “failure to file a complete tax return” since the PRN 722 only applies to failure to file timely.

(173) IRM 3.14.2.6.10.2(2) - Added TC 30X input with a PRN 722 will also generate a CP 162A.

(174) IRM 3.14.2.6.10.2(9) b - Updated table for Failure to File a complete return for dates after 12-31-2024. IPU 25U0148 issued 01-31-2025.

(175) IRM 3.14.2.6.10.2(9) b - Updated the penalty to $255 after 12/31/2025.

(176) IRM 3.14.2.6.10.3(3) - Added TC 30X input with a PRN 723 will also generate a CP 162B.

(177) IRM 3.14.2.6.10.4(3) - Removed 2024 tax year from the CP 162E manual intervention only review as programming was not updated. IPU 25U0148 issued 01-31-2025.

(178) IRM 3.14.2.6.14(1) - Clarified that CP 910 and CP 920 are Spanish versions of the CP 210 and CP 220.

(179) IRM 3.14.2.6.14(2) - Added information on identifying an examination adjustment, that DP adjustments include those done in notice review and that DOC code 34 credit transfers input as ADD34 with a correspondence received date generates a CP 225.

(180) IRM 3.14.2.6.14(3) - Added that NRPS selects these CPs for review due to pending transactions and provided common selection keys.

(181) IRM 3.14.2.6.14(6) - Clarified that inputting incorrect adjustments and credit transfers can generate unnecessary adjustment notices; added BPI is also needed to prevent unpostable transactions.

(182) IRM 3.14.2.6.14.1 - Removed paragraphs and created sections 3.14.2.6.14.2 through 3.14.2.6.14.6 due to tax examiners being unable to easily search and find the information.

(183) IRM 3.14.2.6.14.2 - Separated the section from 3.14.2.6.14.1, CP 210, CP 220, CP 910, CP 920, clarified the review steps, and titled it CP 210 (CP 910) and CP 220 (CP 920) Review Procedures.

(184) IRM 3.14.2.6.14.3 - Separated the section from 3.14.2.6.14.1, CP 210, CP 220, CP 910, CP 920, clarified the what generates the doc code transactions, and titled it CP 210 (CP 910) and CP 220 (CP 920) With Pending Doc 47 or 54 Transactions.

(185) IRM 3.14.2.6.14.4 - Separated the section from 3.14.2.6.14.1, CP 210, CP 220, CP 910, CP 920 and titled it CP 210 (CP 910) and CP 220 (CP 920) With Pending Credit Transactions.

(186) IRM 3.14.2.6.14.5 - Separated the section from 3.14.2.6.14.1, CP 210, CP 220, CP 910, CP 920 and titled it CP 210 (CP 910) and CP 220 (CP 920) With Pending Debit Transactions.

(187) IRM 3.14.2.6.14.6 - Separated the section from 3.14.2.6.14.1, CP 210, CP 220, CP 910, CP 920, titled the section CP 210/ CP 220 Annual Branded Prescription Drug (BPD) Fee - Ogden Only and provided Ogden information on BPD cases that HQ should be contacted.

(188) IRM 3.14.2.6.15(1) - Removed 3X5 card as TPNC 90 information is received from ERS on Form 12648.

(189) IRM 3.14.2.6.15(1) b - Replaced all mention of 3X5 card with Form 12648 throughout the table and removed redundant sentence from the last box.

(190) IRM 3.14.2.6.15(1) e- Added the maximum character limitation in OLNR for TPNC 90.

(191) IRM 3.14.2.6.17(2) - Updated with a caution to subtract applicable FTP from FTF. IPU 25U0241 issued 02-20-2025.

(192) IRM 3.14.2.6.17.3 - Updated title for clarity to Failure to File (Delinquency) Penalty Recomputation IRC 6651(a)(1) and reordered the section to clarify the steps used to calculate base FTF and FTF with overlapping FTP. IPU 25U0241 issued 02-20-2025.

(193) IRM 3.14.2.6.17.3(4) - Updated table for Failure to File for dates after 12-31-2024. IPU 25U0148 issued 01-31-2025.

(194) IRM 3.14.2.6.17.3(5) - Added CC INTSTD and PIFTF for review and penalty rate impact for specific account conditions. IPU 25U0241 issued 02-20-2025.

(195) IRM 3.14.2.6.17.3(6) - Added note to introduce OSP FTF penalty tool. IPU 25U0241 issued 02-20-2025.

(196) IRM 3.14.2.6.17.3(7) - Added the IDRS fields to identify the months delinquent to view the penalty period. IPU 25U0241 issued 02-20-2025.

(197) IRM 3.14.2.6.17.3(10) - Clarified the calculation of FTF with overlapping FTP and provided an example and removed the previous incorrect 5(g) rate table from the reordered paragraph. IPU 25U0241 issued 02-20-2025.

(198) IRM 3.14.2.6.17.3(11) - Updated the penalty to $525 after 12/31/2025.

(199) IRM 3.14.2.6.17.3(12) - Updated to clarify that REQ54 is used to abate FTF manually. IPU 25U0241 issued 02-20-2025.

(200) IRM 3.14.2.6.17.6(2) - Updated step list for clarity to alpha instead of numeric. IPU 25U0241 issued 02-20-2025.

(201) IRM 3.14.2.6.17.7(1) - Changed “provides for a penalty” to “imposes a penalty in addition to tax”.

(202) IRM 3.14.2.6.17.7(4) a - Corrected the missing tax year.

(203) IRM 3.14.2.6.18(7) - Removed confusing note to not edit CCC G on an amended return since Notice Review does not process and will not receive an amended return.

(204) IRM 3.14.2.6.18(18) b - Changed Figure 3.14.2-7 name to Command Code (CC) FRM77 response screen for CC REQ77 to input a TC 971 Action Code (AC) 001.

(205) IRM 3.14.2.7.1 - Updated Figure 3.14.2-8, IDRS CC NOREF Input, to include new direct deposit or paper refund indicator field.

(206) IRM 3.14.2.7.1(2) - Moved previous (9) to this paragraph so tax examiners could see it above the table.

(207) IRM 3.14.2.7.1(3) - Added a NOREF accelerated refund cycle chart. IPU 25U0148 issued 01-31-2025.

(208) IRM 3.14.2.7.1(3) - Created new (3) by moving NOREF input and base information from controlling cases to this section as it applies directly to NOREF.

(209) IRM 3.14.2.7.1(5) - Added new direct deposit information and included caution that NOREFD is no longer available.

(210) IRM 3.14.2.7.1(6) - Updated the NOREF cycle chart for 2025. IPU 25U0148 issued 01-31-2025.

(211) IRM 3.14.2.7.1(6) - Updated Accelerated refund chart for 2026 data.

(212) IRM 3.14.2.7.1(7) - Removed all definers except NOREFM as all other definers are invalid due to programming updates; Figure 3.14.2-8, IDRS CC NOREF Input, was also updated.

(213) IRM 3.14.2.7.1(9) - Updated NOREF cycle chart for 2026.

(214) IRM 3.14.2.7.1(10) - Removed previous (10) as NOREFD cannot be used starting in 2026.

(215) IRM 3.14.2.7.1.1 - Removed NOREFD section as it is no longer available due to programming updates.

(216) IRM 3.14.2.7.1.2(1) - Corrected the Activity code column in the table to remove the abbreviation as that is already stated in the Abbreviation column.

(217) IRM 3.14.2.7.2(3) - Moved NOREF data here from controlling cases as it applies to reconciling NOREF.

(218) IRM 3.14.2.7.2.1(5) c - Clarified the labeling and adjustment process for turnaround cases. IPU 25U0148 issued 01-31-2025.

(219) IRM 3.14.2.7.2.1(8) - Added more description to the types of erroneous refunds.

(220) IRM 3.14.2.7.2.1(11) a - Removed outdated statement about the notice already being mailed.

(221) IRM 3.14.2.7.2.1(12) a - Removed outdated statement about the notice already being mailed.

(222) IRM 3.14.2.7.3(1) - Added control base definition.

(223) IRM 3.14.2.7.3(2) - Added a control base can be generated systemically and the items that establish a control.

(224) IRM 3.14.2.7.3(3) - Added a control base can be established manually and included ACTON information.

(225) IRM 3.14.2.7.3(4) - Clarified that a hold notice is H in OLNR.

(226) IRM 3.14.2.7.3(5) - Moved to section 3.14.2.7.1.

(227) IRM 3.14.2.7.3(6) - Moved to section 3.14.2.7.1.

(228) IRM 3.14.2.7.3(7) - Moved to section 3.14.2.7.2.

(229) IRM 3.14.2.7.5(8) - Added new paragraph for international addresses.

(230) IRM 3.14.2.7.6.3(1) - Clarified which hold code freezes the overpayment and which suppresses an adjustment notice.

(231) IRM 3.14.2.7.6.3(2) - Added hold code 0 will not freeze the overpayment.

(232) IRM 3.14.2.7.6.6.2(1) - Corrected ASHIP type in the note.

(233) IRM 3.14.2.7.6.6.5 - Updated title and section to add series to Form 943 per Development Services Branch.

(234) IRM 3.14.2.7.6.6.5(1) - Added series to Form 943 per Development Services Branch.

(235) IRM 3.14.2.7.6.6.5(2) - Added series to Form 943 per Development Services Branch for IRN 119 and 185.

(236) IRM 3.14.2.7.7(9) - Moved posting delay chart here from 11b as it was in the wrong place.

(237) IRM 3.14.2.7.9(2) b - Updated the note to only suppress an adjustment notice when adding an extension if the penalties will recompute to zero.

(238) IRM 3.14.2.7.10(2) - Changed “may send the notice” to “must send a notice per legal requirements”.

(239) IRM 3.14.2.7.10(5) a - Clarified the steps and decisions involved before inputting an adjustment.

(240) IRM 3.14.2.7.10(5) b - Clarified that the TE must decide if an adjustment notice will or should generate.

(241) IRM 3.14.2.7.10(10) - Updated the last bullet for missing offset information.

(242) IRM 3.14.2.7.10.3(2) - Clarified that the LCF is used for preventing a later adjustment notice.

(243) IRM 3.14.2.7.10.5(4) - Updated the history item example it exceeded ten characters.

(244) IRM 3.14.2.7.10.6.17(3) - Corrected typo of 14 to correct Label 17.

(245) IRM 3.14.2.8.1(1) - Removed obsolete Pub 80 and 179 and added Pub 15 (Circular E) Employer's Tax Guide.

(246) IRM 3.14.2.9.3(1) a - Clarified the filing deadlines for international returns.

(247) IRM 3.14.2.9.3(1) b - Added protects the right to claim deductions (different than an extension to file), per Counsel feedback.

(248) IRM 3.14.2.9.3(1) c - Clarified that an extension of tile to file affects FTF but not FTP penalties; previous sentence was confusing and incorrect.

(249) IRM 3.14.2.9.5 - Updated title to Withholding Tax on Foreign Partners - Form 8804, 8805, 8813, and 8288.

(250) IRM 3.14.2.9.5(8) - Clarified Forms 8288 and 8288-A are filed to report and pay withholding tax due to the disposition by foreign persons of U.S. real property interests and interests in partnerships engaged in a U.S. trade or business.

(251) IRM 3.14.2.9.5(9) - Added Form 8288 IRC 1446(f) information per Counsel request.

(252) IRM 3.14.2.9.7(1) - Added these forms are used to report section 1446(a) withholding by PTPs on distributions of effectively connected taxable income and section 1446(f) withholding on the dispositions of interests in PTPs engaged in a U.S. trade or business per Counsel feedback.

(253) IRM 3.14.2.9.10(8) - Removed paragraph due to outdated manual notice practices.

(254) IRM 3.14.2.9.10(9) - Removed paragraph due to manual notice outdated practices.

(255) IRM 3.14.2.9.13 - Updated title per Counsel Form 706-NA United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States.

(256) IRM 3.14.2.9.13(1) - Updated to clarify who files Form 706-NA and combined with previous paragraph two information.

(257) IRM 3.14.2.9.13(2) - Updated previous paragraph 3 to clearly state the due date information.

(258) IRM 3.14.2.9.13(3) - Added correct extension information for Form 706-NA.

(259) IRM 3.14.2.9.13(4) - Added extension information for Form 706-NA and SB/SE delegation IRM.

(260) IRM 3.14.2.9.14(1) - Removed new for 2025 from last year.

(261) IRM 3.14.2.9.14(3) - Removed incorrect due date information and updated with the correct filing requirements and due dates.

(262) IRM 3.14.2.9.15(1) e - Added Form 1120-F or 1120-FSC must be filed to claim the benefit of deductions or credits.

(263) IRM 3.14.2.9.15(1) f - Added Form 1120-F or 1120-FSC must be filed to claim income IRC 6114; also added note that the list does not include all situations.

(264) IRM 3.14.2.9.15(2) - Added or U.S. domestic law per Counsel feedback.

(265) IRM 3.14.2.9.18(1) a - Added section 1446(f) per Counsel feedback.

(266) IRM 3.14.2.9.19(1) - Added bullets to explain FDAP and Form 1120-F section II information.

(267) IRM 3.14.2.9.19(2) - Added a bullet for Form 1120-F section I information.

(268) IRM 3.14.2.9.19(3) - Removed previous paragraph 3 Section II of Form 1120-F is used to compute tax for the clearer information provided in paragraph one bullets.

(269) Exhibit 3.14.2-2 - Clarified due dates for Forms 1041, 1065, and 1120.

(270) Exhibit 3.14.2-4 - Updated the title to clarify the exhibit and added missing Forms 990-PF, 1040 series, 1066, 1120-POL, 3520, 3520-A, 5329, 5330, 5500, 8038-B, 8038-GC, 8038-T, 8038-TC, 8278- Civil Penalty, 8288, 8328, 8697, 8703, 8752, 8804, 8805, 8813, 8849, 8871, and 8872.

(271) Exhibit 3.14.2-5 - Added information for the acronyms and added the link to the database.

(272) Exhibit 3.14.2-10 - Clarified EPE information for CP 131 and updated the CP 268 conversion for programming changes.

(273) Exhibit 3.14.2-12 - Image corrected to state delete extension instead of add extension.

(274) Exhibit 3.14.2-14 - Updated to complete form type column for all forms and added missing forms.

(275) Exhibit 3.14.2-28 - Corrected 4th payment June date from 6/16 to 6/15.

(276) Exhibit 3.14.2-29 - Added clarifying information on which month the Form 2290 is due and added CP 161 processing link.

(277) Exhibit 3.14.2-33 - Added MFT 74 to the exhibit has a plan number is needed for Form 5500-EZ. IPU 25U0148 issued 01-31-2025.

(278) Exhibit 3.14.2-33 - Updated the entire section to include MFT 74 to match the title and information and added BMF SSN input format to the tables.

(279) Editorial changes were made throughout the IRM and include:

corrected spelling and grammatical errors,

corrected IRM references, and

replaced all instances of incorrect “mail” verbiage to “print” for notice disposition. IPU 25U0148 issued 01-31-2025.

(280) Editorial changes were made throughout the IRM and include:

updated all mention of the IAT Credit Transfer Tool from required to mandated verbiage,

updated all mention of the IAT Address Tool from required to mandated verbiage,

added use of IAT Fill Forms throughout to make form completion easier,

changed Campus to Submission Processing Center (SPC) throughout,

updated all TC 290 to TC 290 .00 per reviewer feedback,

updated per plain language guidelines included changes from subsequent to next or another,

updated paragraph layouts to match style throughout the IRM,

added missing titles to forms and citations,

added missing table introduction sentences,

corrected spelling and grammatical errors,

updated Online to OnLine (in OnLine Notice Review) for consistency throughout Notice Review programs,

added Control D to NRPS batches for consistency throughout Notice Review programs,

corrected spacing issues,

corrected dash (-) versus double dash (--),

corrected IRM references, and

corrected capitalization issues.

Scott Wallace Director, Submission Processing Taxpayer Services Division

This section provides instructions to the Submission Processing Notice Review function for reviewing Business Master File (BMF) Computer Paragraph (CP) notices. These notices are selected for review by the Notice Review Processing System (NRPS).

Notices may also be mandated for review by Treasury Inspector General for Tax Administration (TIGTA), management, policy statements, etc.

Purpose: This section provides BMF Notice Review personnel with instructions for reviewing CP notices that have been selected by the Notice Review Processing System (NRPS). Reviews are conducted with the goal of improving both the accuracy and quality of information the IRS sends to the taxpayers. The Notice Review process helps to ensure the information received by taxpayers is complete and correct.

Audience: These procedures apply to Taxpayer Services (TS) Submission Processing (SP) Business Master File (BMF) Notice Review personnel, located primarily in Kansas City and Ogden:

Supervisory Tax Examining Technician

Lead Tax Examining Technician

Tax Examining Technician

Supervisory Clerk

Lead Clerk

Clerk

Policy Owner: Director, Submission Processing

Program Owner: Specialty Programs Branch, Post Processing Section

Primary Stakeholders: Other areas that may be affected by these procedures include (but are not limited to):

Accounts Management (AM)

Chief Counsel

Compliance

Information Technology (IT) Programmers

Large Business and International (LB&I)

Submission Processing (SP)

Tax Exempt and Government Entities (TE/GE)

Notice Review is the process where tax accounts with specific, pre-determined account activity, are selected for manual review. Most cases involve review of a generated notice, but some account conditions trigger a review to intercept and correct possible processing errors and potential erroneous refunds (example: refund transcript). This process allows tax examiners (TEs) to analyze the account and the notice to decide if the information on the notice is complete and represents the most current account information before the BMF Computer Paragraph (CP) notice is mailed to the taxpayer. Notice Review employees use the Control D Notice Review Processing System (NRPS) Package, and Integrated Data Retrieval System (IDRS) to ensure the information for each notice and account is correct. Any changes to the notices are made using the OnLine Notice Review (OLNR) system.

The ultimate goal of this process is to allow the IRS the opportunity to change inaccurate information on the notice before mailing to reduce taxpayer inquiries, both written and by phone. The end result will give the taxpayer the most accurate and current tax account information available at the time of mailing. The review of refund transcripts can decrease taxpayer burden and reduce the cost to the IRS for recovery efforts of erroneous refunds.

The following provide authority for the instructions in this IRM:

Title 26 of the United States Code (USC) or more commonly known as the Internal Revenue Code (IRC).

All Policy Statements are contained in IRM 1.2.1, Servicewide Policies and Authorities, Servicewide Policy Statements. All Policy Statements for Submission Processing are contained in IRM 1.2.1.4, Policy Statements for Submission Processing Activities.

The Submission Processing Center (SPC) Director is responsible for monitoring operational performance for the SPC.

The Operations Manager is responsible for monitoring the performance of their assigned operation.

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

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

Program Goals: Review Computer Paragraph (CP) notices and corresponding taxpayer accounts to verify their accuracy and ensure all taxpayer notices and posted accounts are complete and correct.

Program Reports: The NRPS system produces several types of reports, which can be accessed on Web Control-D. See IRM 3.14.2.4.1.2, NRPS Output Files, for more information.

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

Embedded Quality Submission Processing (EQSP)

Balanced Measures

Managerial Reviews

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

All tax examiners must submit requests through Business Entitlement Access Request System (BEARS) for Integrated Data Retrieval System (IDRS), Control D Web Access Server, Account Management System (AMS), and OnLine Notice Review (OLNR). These requests must be approved by management before the employee can gain access to the above systems to perform Notice Review work.

Tax examiners review work from a weekly sample selected by the Notice Review Processing System which loads to the OnLine Notice Review Platform for correction. The assignment of work is performed by site personnel as directed by this manual and National Headquarters Staff. This work is reviewed by SPC Quality Review employees.

This table lists some Acronyms, Abbreviations and Definitions. For a full list of acronyms use the Acronyms Database.

Acronyms and Abbreviations

Definition

AC

Action Code

AM

Accounts Management

BFS

Bureau of Fiscal Services

BMF

Business Master File

CADE

Customer Accounts Data Engine

CAF

Centralized Authorization File

CC

Command Code

CNM

Contact Not Made

COB

Close of Business

CP

Computer Paragraph

CRD

Correspondence Received Date

CRN

Credit Reference Number

DC

Document Code

DLN

Document Locator Number

DP

Data Processing

DPE

Deemed Payment Election

EFT

Electronic Funds Transfer

EFTPS

Electronic Federal Tax Payment System

EIN

Employer Identification Number

ELF

Electronic Return Filing

EPE

Elective Payment Election

ERS

Error Resolution System

ES

Estimated Tax

EUP

Employee User Portal

FTD

Federal Tax Deposit

FTF

Failure to File

FTP

Failure to Pay

HCTC

Health Coverage Tax Credit

HQ

Headquarters

IAT

Integrated Automation Technologies

IDRS

Integrated Data Retrieval System

IRC

Internal Revenue Code

IRM

Internal Revenue Manual

IRN

Item Reference Number

KCSPC

Kansas City Submission Processing Center

LB&I

Large Business and International

LCF

Local Control File

MEC

Math Error Code or Minimum Essential Coverage

MeF

Modernized Electronic Filing

MFT

Master File Tax Code

MI

Manual Intervention

MMDDYY

Month Month Day Day Year Year

NR

Notice Review

NRPS

Notice Review Processing System

OLNR

OnLine Notice Review

OSPC

Ogden Submission Processing Center

POA

Power of Attorney

RA

Reporting Agent

RAF

Reporting Agent’s File

RDD

Return Due Date

RPC

Return Processing Code

RPD

Return Processable Date

RPS

Remittance Processing System

RTF

Return Transaction File

RTR

Remittance Transaction Research System

SERP

Servicewide Electronic Research Program

SSN

Social Security Number

TAS

Taxpayer Advocate Service

TBOR

Taxpayer Bill of Rights

TC

Transaction Code

TE

Tax Examiner

TE/GE

Tax Exempt & Government Entities

TIGTA

Treasury Inspector General for Tax Administration

TIN

Taxpayer Identification Number

TOP

Treasury Offset Program

TPNC

Taxpayer Notice Code

TRS

Transcript Request System

TS

Taxpayer Services formerly Wage and Investment (WI)

UPC

Unpostable Code

XREF

Cross Reference

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

Servicewide Electronic Research Program (SERP)

Control D Notice Review Processing System (NRPS) Batch

OnLine Notice Review (OLNR)

Integrated Data Retrieval System (IDRS)

Employee User Portal (EUP)

Remittance Transaction Research (RTR) System

Account Management System (AMS)

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

The goal of the Notice Review Departments is to complete their BMF selected notices by the established cutoff times.

The cycle will load Friday and will close out the second Monday at 2:00 AM.

If there is a possibility that the entire cycle will not be reviewed, the centers cannot extend the cycle and must prioritize the work in the following order:

TPNC (sometimes referred to as Math Error Code) 90 (Key 009)

Large Corp Notices (Key 006). These are worked by the Large Corp Teams but should be completed in their entirety each cycle.

IRC 965 Keys (Keys 16, 50)

Manual Intervention Listing. If listings are not processed within cycle, they will default to "held" inventory creating a backlog of inventory in Notice Review.

Any notice selected through the LCF (Keys 82, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99).

Branded Prescription Drug (BPD) and Insurance Provider Fee (IPF- repealed December 31, 2020) Notices (Key 18) Ogden only.

If after the priorities listed above are completed and resources are available to continue cycle processing, then process the remaining notices in the following order:

Follow any priority updates provided by Headquarters if 100% of sample cannot be completed.

Refund Selection Keys (start with refund transcripts), be mindful of command code NOREF cutoff times.

Balance Due Keys (start with Keys 40, 42, 43, 44, 45, 46, 47, 48, 49).

CP 267 (Keys 11, 12, 34, 36, 71, 72, 83).

All other selected notices not mentioned above.

Notify the BMF Notice Review Headquarters (HQ) analyst if cycle review will not be completed. Provide the HQ analyst with the reason why the cycle was not completed.

These priorities may be modified by the HQ analyst based on organizational requirements.

Notice Review employs the following to achieve its goal:

Quality

Timeliness

Interest Reduction

Effectiveness

Completeness

The Notice Review area performs reviews on the following products:

Math Error Notices: These notices are generated as a result of the assignment of taxpayer notice codes (TPNCs) also known as math error codes (MECs) by ERS/Rejects. Review is conducted to ensure the return was processed correctly and the appropriate Taxpayer Notice Code/Math Error Code was assigned during processing. MEC is often used synonymously with TPNC throughout the IRM and in Notice Review training.

Adjustment Notices: These notices are generated as a result of adjustments input by areas throughout the IRS. Review is conducted to ensure the adjustment was input correctly and is correctly reflected on the notice.

Settlement Notices: These notices generate based upon specific conditions of issuance upon settlement/posting of the return. Review is conducted to ensure the return was processed/posted correctly and the appropriate notice was issued.

Associated Notices: If a notice is selected for review, any additional notice that generated for the same taxpayer as the selected notice is reviewed for accuracy.

CAF/RAF Notices: These are notices that are issued to an authorized representative. Research is performed to ensure the recipient is listed as an authorized representative for the return and tax period listed on the notice and whether or not they are authorized to receive notices.

BMF Refund Transcripts: These are service center notices that contain information on pending refunds. Review is conducted to ensure the accuracy of the refund prior to issuance to minimize erroneous refunds.

Notice accuracy is increased when appropriate feedback is provided to all areas that contribute to the generation of erroneous notices or refunds.

An effective method must be developed to provide feedback to the responsible processing functions at a local level.

This feedback must be provided weekly during the current filing season.

For the process to work, Notice Review TEs must be allowed time to assemble and provide feedback information to the team lead, who will contact the appropriate functional area.

The OnLine Notice Review (OLNR) Disposition Reports can be used as a tool to identify error trends with CPs and keys that could indicate processing issues. There are two basic formats for these reports:

The CP Format provides a breakdown of each selection key by CP number for a given cycle.

The Key Total Format provides a breakdown of each notice by selection key for a given cycle.

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

The historical records are used to assist in feedback sessions with functional areas that cause the generation of notices. Provide your Headquarters Analyst a monthly list of error trends so that it can be shared with the appropriate Headquarters processing analyst.

If the IRM contains inconsistencies and/or conflicting information, immediately submit this information to the HQ Analyst for resolution. Be sure to include all applicable local analysts and personnel.

Do not establish local procedures without first contacting the HQ Analyst.

The Servicewide Electronic Research Program (SERP) is the program used to distribute IRM changes and IRM alerts to the service centers. IRM changes are sent to the SERP Area who then posts the updated version on SERP the next business day. IRM alerts are issued for a variety of reasons and generally will not update the IRM. These include changes that affect only the current cycle. Examples can be Command Code NOREF day or time change due to Holiday processing.

The following resources are utilized to review and correct notices, transcripts and accounts for accuracy:

Paper Tax Return (as appropriate)

Employee User Portal (to review electronic returns)

IDRS

OLNR

RTR

IAT

Control D

SERP (IRM Research/Job Aids/Tools)

Information common to all returns must be verified and compared to the CP notice and the information contained in IDRS and the NRPS package. Research is required to ensure that the tax return was processed correctly and accurately reflected in IDRS. The notice, IDRS or both are updated as appropriate.

Some of the most common IDRS research command codes used by Notice Review can be found in IRM 3.14.2.6.2, Common Command Codes Used in Notice Review.

All selected notices must be reviewed, corrected and timely mailed to minimize any negative impact to the taxpayer. For Notice Review, timely means all of the following:

Marking the disposition of all selected notices using the OLNR web-based application before cycle closeout.

Completing all adjustments affecting refunds within one week of the transaction code (TC) 841 posting

Inputting adjustment actions on all other cases by the notice 23C Date

Every effort should be made to input all necessary IDRS transactions during the notice cycle.

To help reduce the amount of interest the IRS pays on refunds:

The IRS has a 45-day interest-free period (from the later of the return due date, return received date, or the date the return was received in processable form) in which to process taxpayer refunds. By law, refunds not issued within the 45-day period (180 days for qualifying overpayments resulting from tax deducted and withheld under Chapter 3 and Chapter 4 of the Internal Revenue Code) must include credit interest.

Revisions to the process are made when necessary to review and correct overpaid accounts without paying unnecessary interest.

Reviewing, correcting, and mailing all notices timely allows the taxpayer the full allotted time to pay any outstanding balances. If a taxpayer pays all or part of the outstanding balance stated in the notice and demand for payment within 21 calendar days from the date of the notice and demand (10 business days for notice amounts of $100,000 or more), no interest charges will accrue after the date of the notice and demand on the amount that was paid. Interest continues to accrue on any part of the balance that was not ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

For proper guidance when reducing, computing or discussing interest, refer to IRM 20.2, Interest.

BMF Refund Transcript (CP 388) is reviewed to ensure the interest being paid on applicable refunds is accurate and is corrected if necessary, prior to issuance. See IRM 3.14.2.6.12, Refund Transcripts, for more information on BMF Refund Transcripts.

The review of Math Error notices helps to identify those notices that historically have high error rates. It also provides valuable feedback that is used to refine selection criteria.

The review of adjustment notices helps to identify and correct erroneous adjustments to ensure the accuracy of the module and the notice.

The review of settlement notices allows the Notice Review area to identify deficiencies in programming changes to ensure that all notices are generated in accordance with established conditions of issuance.

The review of CAF/RAF and manual intervention notices ensures that only authorized representatives receive a copy of the notice to prevent unauthorized disclosure.

The review of BMF Refund Transcripts ensure the accuracy of refunds and interest paid on refunds (as applicable) prior to issuance. Refund Transcript selection criteria can be modified to address and combat fraud, schemes, etc. to prevent erroneous refunds.

The LCF can be utilized to select notices based on specific criteria to ensure accuracy with regard to the implementation of new legislative changes and/or the creation of new notices, etc.

Generally, you must review the entire tax return, and all tax modules related to a notice or transcript selected for review by utilizing the NRPS Package and IDRS. The review can include, but is not limited to the review of items below:

Entity Module(s)

Outstanding Credit Balance Modules

Cross-reference Taxpayer Identification Numbers (TINs)

Related Names

Freeze Conditions

See IRM 3.14.2.6, General Review Procedures, for additional guidance.

The ultimate goal of Notice Review is to verify the accuracy of the information contained in all notices selected for review before mailing. All changes made to the taxpayer's account must be correct and completed before the cycle close out (there are some exceptions).

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

A tax examiner entering taxpayer notice codes (TPNCs) on a return

A Master File analysis of a taxpayer’s account

Certain transactions posting to an account

BMF Notices and Refund Transcript list can be found in Exhibit 3.14.2-3, BMF Notices and Refund Transcripts Table.

Notices can generate to:

Request information or payment from a taxpayer

Educate a taxpayer

Clarify an issue (i.e., explain a Math Error identified on their tax return)

Most notices contain the following information:

Taxpayer’s name

Address

Taxpayer Identification Number (TIN)

Tax period

Tax form

A computer generated message

An EIN, SSN, ITIN or IRSN can be used for Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests. An IRSN will have a W following the number and an SSN or ITIN will have a V following the number. An SSN will be used for Forms 706 and 709. Valid SSNs will be input with a V following the number and invalid SSNs will be input with a W following the number.

Three types of notices worked in Notice Review are:

Settlement

Information

Campus

Settlement Notices tell the taxpayer of payments due, interest and/or penalties due, math errors, or adjustments the SPC has made to the taxpayer’s account. The three types of settlement notices reviewed by Notice Review are:

Math Error Notices generate when a tax return, containing a math error, posts to the Master File. Error Resolution normally identifies the math errors. The tax module may include math, clerical, or credit errors.

Non-Math Error Balance Due Notices generate when a return, with no math error, posts to the Master File. The tax module may include tax, credits, penalties, interest, or a combination of all four. The CP 161 is the balance due notice for all BMF forms (Spanish CP 861).

Adjustment Notices generate when certain types of Data Processing (DP) or Examination adjustments post to an account. All adjustments made in Notice Review are Data Processing adjustments.

All types of Settlement Notices are subject to review.

Information Notices generate when information needs to be sent to a taxpayer. Notice Review selects Informational type notices that explain credit elect and the offsetting of money to other balance due tax modules within the account. These notices are referred to as Associated Notices.

Campus Notices generate to notify the SPC, Territory Office, or Area Office of a condition that needs further action to bring the taxpayer’s Master File account into current status. This category includes Refund Transcripts, which are the only Campus notices reviewed in Notice Review.

For a description of all notices, see Document 6209 Section 9. To view an exhibit of a notice, refer to the Servicewide Notice Information Program.

The Notice Review Processing System (NRPS) selects settlement notices, adjustment notices, associated notices and refund transcripts for review by analyzing data from the following sources:

CP Notice Records: NRPS also uses this information to print a copy of selected notices for the review.

Entity and Tax Modules: NRPS uses the Transcript Request System (TRS) to obtain data. This information is sent to each SPC exclusively for NRPS processing. NRPS prints this information in transcript format as part of the NRPS package.

Return Transaction File (RTF): NRPS extracts RTF data records for each selectable settlement notice. NRPS packages also contain printouts of this information.

Pending Transactions: NRPS uses data from transactions that have not yet posted at the SPC as part of the selection criteria for certain keys. See table below for Pending Transaction Sources and Possible Pending Transactions.

Pending Transaction Sources

Possible Pending Transactions

Enterprise Computing Center at Martinsburg (ECC-MTB) Resequence File

Adjustments (TC 29X/30X)

Unidentified Remittance Files (URF)

Extensions (TC 460)

Tape Edit Program (TEP) (pipeline and corrected unpostable files)

Merge Transactions (TCs 001, 011, and 04X)

Generalized Unpostable Framework (GUF) and Current Cycle ECC-MTB Unpostable Files

Credit Transfers [Document Codes (DC) 24, 34, 48, or 58 transactions]

Excess Collection (XSC) File

Credit Transfers [Document Codes (DC) 24, 34, 48, or 58 transactions]

Generalized Mainline Framework (GMF) Error File

All other significant (non-zero) transactions

Reject File

Rejected transactions

The OnLine Notice Review (OLNR) System allows Tax Examiners to review notice elements, determine notice disposition, and retype notices online. OLNR is used in conjunction with NRPS. It does not replace the need to review the NRPS package for each notice.

Selected taxpayer notices are not printed until after the NRPS batches have been reviewed and OLNR goes through its weekly closeout process (term used for end-of-cycle processing that controls notice printing). This allows the system to avoid printing notices that should be voided and also allows full editing capabilities in case a notice needs correction prior to mailing.

Notices that are not reviewed before cycle closeout will automatically default to the NR (Not Reviewed) disposition and after cycle closeout will be printed and mailed to the taxpayer. This default provides a more correct notice accuracy rate, since only notices that are reviewed in a given cycle are compiled into notice accuracy numbers for reporting.

Notices are selected by NRPS based on established selection criteria. These criteria are divided into categories. Each category contains a list of Keys that have been assigned specific selection criteria. The categories were established to separate notice types and help establish a priority of review. Notices are selected in category order as follows:

Category A: Special Handling Required

Category B: High Priority Selection-Local Selection

Category C: Federal Tax Deposit (FTD) Rollover

Category D: Balance Due and Even Balance Notices

Category E: Overpaid Notices

Category F: Adjustment Notices

Category G: Refund Transcripts

Category H: Low Priority Local Selection

Category I: Balance Due Low Priority

Within each category the notice is analyzed in sequence by selection priority. Once a notice meets the criteria for a key within a category, the remaining selection keys in that category are bypassed and the analysis continues through the remaining categories. If the notice meets selection criteria in another category, it is assigned a secondary selection key; all remaining categories are bypassed, and analysis stops. Analysis is limited to one primary and one secondary selection key.

The selection process continues from category to category in alphabetical order. When completed, the process will result in one of the following conditions:

All selection criteria were applied to the notice, but the notice was not selected for review.

The notice was selected for review meeting only one selection criteria.

The notice was selected for review meeting two selection criteria.

The NRPS selection criteria is only applied to selectable notices and transcripts.

The selection criteria are divided into categories containing similar conditions or notice types.

Each category is assigned a priority based on the importance of the selection criteria within the category.

Each selection criteria are assigned a two-digit numerical selection key and a numerical priority.

The selection criteria are applied against the notice in ascending priority order until either the notice is selected for review or the selection criteria for the category is exhausted.

If the notice is selected for review, the remaining selection criteria for the category is not applied against the notice.

A numerical group number is assigned during the selection analysis and is used to sort and batch the NRPS packages. The group number is decided by the priority of the review and is used to associate similar selections together.

The selection process requires the following:

Entity and Tax Modules: The Transcript Request System provides Master File data for use in the analysis process. This data is separated from other Master File data, then shipped to each SPC for use by NRPS processing and displayed in transcript format as part of the NRPS package.

Transcribed Tax Return Data: an RTF data record is extracted for each settlement notice subject to NRPS selection. This data is used in the selection process and included in the NRPS package for selected notices.

The selection process requires in-house transactions-certain transactions which have not posted to the Master File by the notice cycle are required by NRPS processing, they include:

Adjustments (TC 29X) (TC 30X)

Credit Transfers (Document Codes 24, 34, 48, and 58)

Merge Transactions (TCs 001, 011, 04X)

Extensions of Time to File (TC 460)

Any transactions with non-zero transaction amounts

The transactions listed above are extracted from the following files:

ECC-MTB Resequence, RSQ

Unpostables (current cycle at ECC-MTB and GUF)

Tape Edit Processing, TEP,(all pipeline transactions)

Unidentified Remittance File, URF

Excess Collections, XSF

GUF Error

Rejects (transaction failed SPC validity check)

FTD File

All selected notices are displayed in the Control D NRPS package.

The Control D NRPS package will include all current cycle notices, selected/associated notices and/or refund transcripts.

A contents sheet will be included with each package, and will provide the following information:

Selection Key and literal key description

Pending transactions

Documents requested

Selected notice

Other (non-selected) notices

A Control D NRPS batch consists of the following:

NRPS Batching Sheet: Identifies the beginning of each batch

NRPS Packages: 1 to 20 notices per batch

NRPS Selection List: A list of the notices contained within the batch

Manual Intervention List, this list will show, in notice sequence number order, all notices that were not selected for review but require manual intervention for any of the following conditions:

Central Authorization File (CAF) Mismatch: Central Authorization File name/address information to be added.

Reporting Agent File (RAF) Mismatch: Reporting Agent File name/address information to be added for Form 940, Form 941, Form 944, and Form 945.

Both CAF and RAF Mismatch (MM): Central Authorization File name/address information to be added and Reporting Agent File name/address information to be added for Form 940, Form 941, Form 944, and Form 945.

Service Center Mismatch Address File (SC): address information needs to be reviewed and verified.

Control D NRPS Batch Control Sheet: Contains a line for each batch (Notice Review copy) or a line for each batch with a document request (Files copy). It is also used as an assignment control document.

For specific information on NRPS Selection Keys, see Exhibit 3.14.2-5.

For detailed information on the Local Control File, see IRM 2.4.45, Command Code NRP97. For detailed information on the Notice Review Processing system, see Program Requirement Package (PRP) 160 Section 54. Valid percentages for Local Control File: 1%, 10%, 25%, 33%, 50%, 75%, and 100%.

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

NRPS Batching Sheet

NRPS Packages

NRPS Selection List

NRPS are viewed using Control D. See BMF Job Aid 2533-701 for additional information on NRPS.

NRPS produces several additional types of output:

NRPS Batch Control Sheet

NRPS Document Charge-Out

NRPS Batch Return Request List

Manual Intervention List

NRPS Selection Report

NRPS Non-package Selection List

NRPS Duplicate Selection List

NRPS Associated Notice Listing

A description of each of these is in IRM 3.14.2.4.1.6, Other NRPS Output.

All of the above reports generate from the following Listing of Output Files in the table below:

Control D Job Name

Control D Report Name

Description

NRP1310*

NRP1310 CHARGEOUTS

Files Chargeouts

NRP1320*

BATXXXX

Notice Review tax examiner Batches by 4-digit number

NRP1330*

BMF CP-267 VOID LIST, BMF SELECT LIST DUPL, BMF BATCH CNTL SHEET, BMF SELECT REF TRANS, BMF MANUAL INV LIST, BMF SEL NOTICE LIST, BMF PAYMNT ASSOC LIST, BMF CP-207L SEL LIST

267 Void List, NRPS Selection List, Batch Control Sign out, Manual Intervention List, BMF Selected Notices List, Payment list and CP 207 list

NRP1420*

BMF NRPS SELECT LIST

NRPS Selected and Associated Report

PRTNRP*

NRP9841*

Local Control File records

PRTNOR*

NOR0142*

Refund Intercept

The Batch Sheet is the first sheet of each batch. It contains the following information:

Batch Number: Batch numbers are four digits. Batches will start with preceding zeros with the batch numbers getting larger throughout the sample. Example: Batch 001, Batch 0501, Batch 8001, etc.

Sort Group: The number assigned to indicate priority sorting of selected notices see IRM 3.14.2.4.1, Notice Selection Process, for more information.

Batch Type: Types are special, miscellaneous, overpaid, or balance due.

Cycle Information: A six-digit cycle number which contains the year and cycle.

See figure below for the information contained in the first or header page of a Control D NRPS Batch.

Figure 3.14.2-1

Please click here for the text description of the image.

NRPS packages contain various types of information needed to review each selected CP Notice or Refund Transcript. Each batch may contain up to 20 selected notices.

Packages for overpayment notices must be viewed online first. Most packages contain only one notice. However, the NRPS Package will contain all Selectable or Associated CP Notices that generate in the current cycle for a taxpayer if one or more is selected for review. Each NRPS package contains the following:

Package Contents Page is the first page of each Control D NRPS Package. This page contains the information in the table below:

NRPS Package Contents:

A list of all Selected or Associated CP Notices or Refund Transcripts in the package with CP number and Document Locator Number (DLN)

The Selection Key Number along with a brief description of the Key

A list of pending transactions

A list of requested vouchers and documents

Manual Intervention Indicators

Online Notice Information: Depending on the CP number of the selected notice, this may either be a duplicate of the live notice, or a shortened version. The shortened version displays only the notice record information, such as dollar amounts and TPNC numbers, as opposed to Taxpayer Bill of Rights language and TPNC explanations.

Entity Transcript: This displays the entity information for the notice Taxpayer Identification Number (TIN).

Tax Module Transcript (optional): This displays the tax module transactions for the notice TIN.

Transcribed Posted Return Data: This displays transcribed return fields for selected Settlement Notices

813 List: This list displays only for Remittance Processing System (RPS) Discrepancy cases.

This list is the last page of each batch. It shows the following information for each Selected CP Notice in the batch:

Count (item number on the list)

Sequence Number

DLN

CP Number

Primary Selection Key

Secondary Selection Key

NRPS produces two different (but related) Batch Control Sheets.

The Notice Review copy has one line for each batch, showing the number of Selected and Associated CPs and Document Requests in each batch.

The Files Function copy has a line for each batch, showing the number of Document Charge-outs in each batch.

The NRPS Document Charge-out provides information that the Files Function needs to pull documents for Notice Review to use in reviewing CP Notices.

The NRPS Batch Return Request List is a cover sheet that separates the Document Charge-outs by batch and contains a line for each charge-out.

The Manual Intervention List provides a list (in notice sequence number order) of all notices that were not selected for review but may require manual intervention.

See IRM 3.14.2.5.3 (Manual Intervention CAF/RAF/MM/SC) for additional information and procedures.

The NRPS Selection Report contains various statistical data including the number of CPs selected. This report is sorted by CP Number and Selection Key. See Exhibit 3.14.2-6 (BMF NRPS Selection Report-NRP1420).

OnLine Notice Review (OLNR) was developed to eliminate manual correction of physical notices. Before OLNR, Notice Review clerks were required to pull paper notices and retype or use sticker labels to update the notice.

See IRM 3.14.2.4.2.3, OLNR Access and System Information, for access request information.

OLNR allows users to easily monitor and track production of notice inventory.

OLNR allows access to disposition reports that provide year-to-date information and allow managerial users to track patterns in notice changes.

OLNR allows users to edit most notice fields so that notices can be retyped to reflect current account data in IDRS.

Some specific OLNR retype capabilities are:

the ability to correct entity on selected and associated notices.

the ability to correct data fields on most selected notices including penalties and interest fields.

the ability to add, change or delete MECs/TPNCs using a drop-down list.

the ability to add a label to applicable notices.

the ability to correct or void entity fields on manual intervention notices.

the ability to correct or void the entity on CAF/RAF copies of notices or void the entire notice (even if the primary notice is mailed).

the ability to convert one CP to another CP.

the ability to void an unnecessary notice so the taxpayer does not receive it.

For specific information on how to utilize the OLNR program, refer to the BMF Notice Review Job Aid 2533-701.

The OLNR system allows the user to convert one CP notice type to another, when account actions/adjustments require a different type of notice be sent to the taxpayer. See Exhibit 3.14.2-10, Reference Chart for Retyping BMF Notices in OLNR, for more information on what notice retypes or conversions can be performed.

An incorrectly transcribed return identified during review of the notice needs an adjustment to the account on IDRS. If the review and adjustment results in the removal of all math errors but the taxpayer account will still have a balance due, the original notice must be converted from a math error notice to a non-math error, balance due notice (CP 161/ Spanish CP 861 if applicable).

Most field values from the original notice will be transferred into the conversion notice, where they can then be adjusted by the examiner, if necessary.

If any IDRS adjustment actions will be reflected in the converted notice, use the appropriate adjustment hold code to prevent unnecessary adjustment notices.

When converting from an overpaid to a balance due notice you will need to input the correct pay by date. Refer to the posting cycle chart in the BMF Notice Review Job Aid 2533-701.

OnLine Notice Review (OLNR) must be requested in Business Entitlement Access Request System (BEARS). Access must be requested by role. Available roles are:

OLNRUsers: Uses the OLNR system to edit and correct notices. OLNR Tax Examiners belong in this group. Allows the ability to search and edit both BMF and IMF notices. This group cannot unlock, or update batches locked by another user.

ReportUsers: Uses the OLNR WebManager to view reports, identify unfinished work, and generate reports. Allows use of the OLNR application to search both BMF and IMF notices in read-only mode.

QAUsers: Uses the OLNR WebManager to search for specific batches, dispositions and audit data to perform quality review work. Allows the use of the OLNR application to edit both BMF and IMF notices if needed. This group cannot unlock, or update batches locked by another user.

PowerUsers and OLNRSAs: Uses OLNR and OLNR WebManager to search batches, dispositions and audit data; update dispositions; view reports, identify unfinished work, deactivate or reactivate users, generate reports, and unlock/reopen batches. This access is designed for OLNR System Administrators, Analysts, Managers, and Team Leads.

Users who do not access OLNR for 120 days will become inactive in the system. This is not the same as BEARS access. Users must have a valid BEARS request approved and be active in OLNR. PowerUsers and OLNRSAs can reactivate users by accessing the ADMIN drop-down menu in OLNR and clicking UserInfo. On the display screen, input the SEID of the user who needs to be reactivated. Click the box in the IsActive column on the same line as the SEID. This process is the same for deactivating a previous employee, however the box should be unchecked.

Once access has been approved navigate to OLNR with the correct site link. Refer to the OLNR section of the BMF Notice Review Job Aid 2533-701 for more information. OLNR access links by site:

Austin OLNR

Kansas City OLNR

Ogden OLNR

Once the correct OLNR link has been accessed, choose the BMF inventory. Then locate the correct batch to be worked using the search box. Enter the batch in the box and hit enter on your keyboard. Open the correct batch by mouse clicking on the number displayed.

The Notice Disposition screen will then appear on the screen. It contains all of the sequence numbers for the selected batch. As each case in the batch is reviewed, the user selects the disposition code for the desired notice action.

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

Available notice disposition codes in alpha order are:

E: Entity-Only Notice Change. The notice is completely correct except for a name or address issue. See IRM 3.14.2.7.10.4, Entity Only Disposition, for more information.

H: Hold Notice - The notice will not be mailed in the current cycle. This disposition must be approved by Headquarters with the exception of a quality error. See IRM 3.14.2.7.10.7, Holding Notices, for more information.

L: Label Notice - Informational labels will be added to the top of the notice. Follow IRM 3.14.2.7.10.6, Labeling Notices, for when to label.

P: Print Notice - The notice matches account data, and the taxpayer needs the information. See IRM 3.14.2.7.10.2, Printing Notices, for more information.

R: Retype Notice - When the notice needs to be changed to match current account conditions or multiple actions must be taken such as Entity and Label. See IRM 3.14.2.7.10.5, Retyping Notices, for retype criteria.

V: Void Notice - The taxpayer should not receive a notice. These notices are removed from the print file and will never be received by the taxpayer. See IRM 3.14.2.7.10.3, Voiding Notices, for voiding notices.

If a refund is intercepted/ deleted /stopped then the correct notice disposition above should be used in conjunction with "I" .

During review of the notice and account a misapplied payment is found. The refund should be stopped and the misapplied payment transferred out of the module, however, the taxpayer still needs the notice for another issue. Choose RI as the OLNR notice disposition to make the appropriate notice changes.

Every effort must be made to review, correct, and select disposition of notices in the current cycle to minimize negative impact to the taxpayer. Do not use "H" disposition in OLNR to hold notices past cycle without Headquarter analyst approval.

If quality review of a notice results in a tax examiner error, the quality review unit should mark the notice disposition as" H" to allow for review and correction of the error. The notice must be corrected by the TE or production team in the cycle the notice generated.

The OLNR system has programming limitations which can cause notices to "fall out" as a systemic held when the cycle closes out. Manual Intervention notices are also systemically held if not worked. On Mondays, (except Monday holiday weeks then Tuesday) a lead needs to research and resolve the systemically held notice and make sure the notice disposition is marked and any interest and penalties updated.

If the TE or production team disagree with the quality review error, the production team has two business days to rebut the error. If the error is being rebutted, the production team must notify Headquarters analysts if the notice will be held past cycle close out.

If the held notice disposition is allowed by HQ, notices should be worked as soon as the necessary information or document(s) are received to minimize any further delay to the taxpayer and possible additional accrual of penalties and/or interest.

If a Balance Due notice is held beyond cycle (with approval), change the pay-by date to be consistent with the pay-by date of balance due notices generating in the cycle the held notice is being released. Recalculate the interest, penalties, and any other applicable fields. When inputting a disposition of "H" you must put a control status of B on the module and enter a STAUP for 8 weeks. When releasing the hold, reduce the STAUP to the appropriate number of weeks so that a collection notice is mailed to the taxpayer in the appropriate timeframe.

This section describes the clerical procedures performed during the Notice Review process.

The clerical function provides a wide variety of services critical to the NRPS system. These services, outlined in this section and in IRM 3.14.2.5.2, Clerical Function Priorities, assist Notice Review TEs (and other customers) in providing accurate information to the taxpayer. The clerical support staff:

Orders and sorts tax returns

Distributes NRPS packages and related documents to the TEs

Corrects erroneous, and undeliverable notices

Stops refunds

Resolves CAF, RAF, MM, and SC mismatches on notices that generate on the Manual Intervention List

This subsection contains instructions dealing with clerical function priorities. It includes instructions for associating tax returns and payment vouchers, reviewing priority, intercepting requests from other areas, notice corrections, and releasing notices to Receipt and Control.

When a return is needed to review a notice and/or transcript, request the document(s) needed using Form 2275, Records Request, Charge and Recharge and route to Files per SPC directions. Use IAT Tool Fill Forms to make the request easier.

If Efax is being utilized then, input “Notice Review NRPS Document Request” in the subject line when sending the Efax to Files. Contact your local Planning and Analysis (P&A) analyst to identify the preferred method of communication with your Files site.

All necessary documents (adjustment documents and tax returns) are associated with each batch before releasing to TEs. All NRPS batch sheets that do not need documents are routed directly to Notice Review.

Error Resolution System (ERS) may request that Notice Review select and correct a specific notice.

ERS tax examiner must prepare Form 3465, Adjustment Request and send it with the return to Notice Review.

Local Control File (LCF) Key 091 should be input by a Notice Review lead or clerk to select the notice for review by DLN (NRP97D). See IRM 3.14.2.5.4.1, NRP97 Input Information.

Notice Review Clerical Support will associate the return and Form 3465 with the NRPS batch and release the case to be worked by a tax examiner.

The Clerical Support Unit will distribute the work in the order indicated below: Refer to IRM 3.14.2.1.9, Prioritization of Work for BMF Service Centers, for additional information.

Selected Overpayment Notices and Refund Transcripts -tax examiners must complete this review before the pre-determined cut-off of CC NOREF (4:00 PM Eastern Time, Thursday). Local management must decide the disposition of overpayment notices not reviewed by the cut-off. In doing so, consider prior cycle error rates of the individual CP Notices and selection keys.

Treat notices selected by BMF Key 52 as overpayment notices because the current cycle refund is the reason for the review.

Selected Balance Due Notices.

It is not the responsibility of Notice Review to stop refunds at the request of another area. If a request is received, inform the requestor that they should contact their own area to have the refund stopped. If the requestor indicates that they do not have access to IDRS or do not have CC NOREF in their profile, they should contact their area to address this issue.

Other functions may request that an incorrect notice be corrected or stopped. However, it has to be a selectable notice, and the request has to be received in Notice Review within established deadline cut off times.

See the table below for the deadlines for requesting a notice for correcting or voiding:

If the request is for

Then the Request Must Be Received By

A current cycle notice

Close of Business (COB) Thursday before the 23C Date of the notice.

A next cycle notice

The request must be received by 12:00 PM Thursday (local time) before the notice cycle.

Notice Review Clerical Team uses Command Code NRP97 (Local Control File) to select the notice. See IRM 3.14.2.5.4.1, CC NRP97 Input Information, for instructions.

Tell other functions that the notice request deadline is Thursday 12:00 PM local time per LCF local procedures.

Manual intervention may be required on selected and non-selected notices.

All notices on the Manual Intervention List (Batches 9XXX) and in regular NRPS review batches must be closed or they will be systemically held by OLNR.

The notices generated on the Manual Intervention List do not meet NRPS selection criteria, however, it has been decided that they do require some sort of manual review and correction. Manual intervention conditions are as follows:

Central Authorization File (CAF) mismatch.

Reporting Agent’s File (RAF) mismatch.

Both CAF and RAF (multiple) mismatch issues (MM).

Service Center (SC) address mismatch.

If the notice is not selected by NRPS, the notice (and the manual intervention condition) appears on the Manual Intervention List. These appear in batches beginning in the 9000 series (9XXX) in OLNR. Manual Intervention batches 96XX are worked by Large Corporation employees only.

The list shows one line for each notice, sorted by notice sequence number.

Maximum of 25 to a batch.

If the notice is also selected by NRPS, the manual intervention information will be on the Package Contents page of the NRPS Package/Control D. If a manual intervention condition is present, the tax examiner must resolve it in addition to resolving the potential notice issue during the review. The clerical staff is only responsible for resolving the notices that generate on the Manual Intervention Listing.

The Centralized Authorization File (CAF) is a computerized system of records which houses authorization information from both powers of attorney and tax information authorizations. The CAF system contains several types of records, among them taxpayer and representative records, tax modules and authorizations. For more information see IRM 21.3.7, Processing Third Party Authorizations onto the Centralized Authorization File (CAF).

Authorizations recorded on the CAF are generally submitted on:

Form 2848, Power of Attorney and Declaration of Representative

Form 706, U.S. Estate Tax Return

Form 8821, Tax Information Authorization

Oral Tax Information Authorization (OTIA), paperless Form 8821

Form 8655, Reporting Agent Authorization, is used to authorize a designated agent to assist an employer in making required tax deposits and tax information filings to federal, state, and local governments. For more information refer to IRM 21.3.9, Processing Reporting Agents File Authorizations. The Form 8655 allows a reporting agent the authorities listed below:

File and sign certain tax returns filed electronically.

Prepare FTDs and submit FTD information electronically.

Receive duplicate copies of official notices, correspondence, transcripts or other information with respect to the electronic returns filed by the agent.

Receive duplicate copies of official notices, correspondence, transcripts, filing frequency information or other information with respect to the FTDs submitted electronically by the agent.

Service Center Manual Intervention resolutions are required when the address is missing fields (example 00000 for the ZIP code) or the input fields do not match the United States Postal Service verified address.

The CAF copy of the notices should generate with the representative’s name and address on the notice. If the CAF copy is missing this information, it is considered a CAF mismatch condition and will be notated on the Notice List.

NRPS will compile all CAF mismatch notices and include them on the Manual Intervention Listing. A literal will print out on the list indicating the CAF mismatch by notice sequence number and CP number.

Research a CAF mismatch on CC CFINK with taxpayer's TIN, and the specific MFT and tax period of the notice module.

Review CFINK fields carefully to decide if the representative is authorized to receive notices.

Make sure CAF STATUS on CFINK is GOOD STANDING before updating CAF notice information. Only representatives in GOOD STANDING and listed as YES for notice should receive notices.

If a representative is found in good standing and yes for notice receipt, update CC CFINK with the CAF number(example XXXX-XXXXXR) overlaying the EIN and transmit to view the representative’s address. Repeat for each listed representative who is eligible to receive a notice. See below for the CFINK Representative Decision Table:

If

Then

YES is present in the CC CFINK NOTICE field

The representative is authorized to receive notices. Use the CAF Status Decision table below to verify the representative should receive a notice.

Type the name and address of each representative(s) on the notice tab and send the notice.

NO is present in the CC CFINK NOTICE field.

The representative is not authorized to receive notices.

Delete the CAF notice using the Delete CAF/RAF check box on the CAF/RAF entity tab in OLNR.

Check the CAF status line for any of the following words: Undeliverable, Suspended, Deceased, Disbarred, Retired or Good Standing. If present, follow the instructions in the CAF Status Decision table below:

If

Then

The word Undeliverable is present on the CAF status line;

The representative is no longer authorized, or the mail is undeliverable.

Delete the CAF notice using the Delete CAF/RAF check box on the CAF/RAF entity tab in OLNR.

The words Disbarred, Suspended, Retired or Deceased is present on the CAF status line;

The representative is no longer authorized.

Delete the CAF notice using the Delete CAF/RAF check box on the CAF/RAF entity tab in OLNR.

The words Good Standing are present on the CAF status line;

The representative is authorized.

Type a % then input the representative's name on the Sort Name Line in OLNR and include the representative's address, city, and state on the appropriate lines under the CAF Mismatch Tab.

More than one representative may be authorized to receive notices. Repeat the steps above for each representative.

If the name of the second representative is the same or similar to the first representative, and the address is identical, do not use the second representative. Delete the second CAF copy if applicable. If the representative for the CAF is the same representative for the RAF, delete the RAF copy.

If RECORD NOT FOUND for the taxpayer on the CAF file, the representative is not authorized. Delete the representative notice copy.

For more information regarding notice disposition for representative notices, see, IRM 3.14.2.6.1.2, Manual Intervention Centralized Authorization File (CAF) and Reporting Agents File (RAF).

The RAF contains information about the authorizations that taxpayers give to their reporting agents for employment tax modules. The authorization allows reporting agents to file Forms 940, 940(sp), 941, 941(sp), 941-SS, 941-NMI, 943, 943(sp), 944, 945, 1042 or CT-1 for the taxpayer. The authorization also allows for reporting agents to make payments or deposits for Forms 940, 941, 943, 944, 945, 720, 1041, 1042, 1120 and/or CT-1.

Reporting Agents File (RAF) notices are similar to CAF notices, in that a copy of the notice will generate to the taxpayer, and a copy will generate to the Reporting Agent. The RAF copy of the notice should generate with the representative’s name and address on the notice. If the RAF copy is missing any or all of this information, it is considered a RAF mismatch condition and will be identified on the Manual Intervention Listing with the literal RAF MIS.

Use CC RFINK to obtain authorization information regarding the reporting agent.

When CC RFINK is input with the Taxpayer EIN only, a list of MFTs and beginning tax period for the taxpayer will be displayed along with the reporting agent’s name, EIN and authorization information. Delete the RAF notice copy in OLNR if all representative tax periods (column TAXPRD) are after the notice tax period.

When CC RFINK is input with the Taxpayer EIN only, the last column on the response screen is the Notice/Action/Payment (NAP) column. This column contains three fields which provide representative information:

The first field in the NAP column is the Notice Indicator. The Notice Indicator identifies whether the reporting agent is authorized to receive copies of notices with a Y for yes or an N for no. See the table below for a description of the values available for the Notice Indicator.

The Notice indicator and Action indicator must be reviewed before taking action in OLNR.

If RFINK NAP Notice Indicator is:

Then

Y

The reporting agent is authorized to receive notices

N

The reporting agent is not authorized to receive notices

The second field in the NAP column is the Action Indicator field. The Action Indicator field identifies the status of the representative.

See the table below for a description of the values available for the Action Indicator.

If RFINK NAP Action indicator is

Then

A - Add

Representative has been added and is allowed to receive a notice if the Notice indicator is also yes.

D - Delete

Representative has been deleted and is not allowed to receive a notice for that tax period regardless of the Notice indicator. Delete the RAF notice using the Delete CAF/RAF check box on the CAF/RAF entity tab in OLNR.

E - End Dated

Representation has ended but a notice may still be sent if the tax period is before the end date period and the Notice indicator is also yes.

I - Inactive

Representative status is not active and is not allowed to receive a notice for that tax period regardless of the Notice indicator. Delete the RAF notice using the Delete CAF/RAF check box on the CAF/RAF entity tab in OLNR.

R - Revoked

Representative status has been revoked and is not allowed to receive a notice regardless of the tax period or Notice indicator. Delete the RAF notice using the Delete CAF/RAF check box on the CAF/RAF entity tab in OLNR.

U - Undeliverable

Previous representative notices have been returned as undeliverable. Do not send a notice. Delete the RAF notice using the Delete CAF/RAF check box on the CAF/RAF entity tab in OLNR.

The third field in the NAP is the Payment Indicator Field. The Payment Indicator identifies whether the reporting agent is authorized to make payments/deposits. This field does not have impact on notices.

See the table below for a description of the values available for the Payment Indicator:

If

Then

P is present

The reporting agent is authorized to make payments and/or deposits.

Blank

The reporting agent is authorized to sign and file returns but not authorized to make payments and/or deposits.

Electronic Federal Tax Payment System (EFTPS) modules will have a payment indicator of P.

See IRM 2.3.16-4, Command Code RFINK - Output Format, for more information.

If a representative is found, after transmitting CC RFINK with the notice EIN, without a definer, verify the starting tax period. If the notice tax period and MFT are identified as having a representative, verify the Notice Indicator and Action Indicator have statuses allowing representative notices per paragraph 4 above.

If the Notice Indicator and Action Indicator statuses allow notices, input RFINK definer R and type or copy and paste the reporting agent’s EIN over the taxpayer EIN and transmit to receive detailed information which contains the representative mailing address. See the table below for notice disposition.

If

Then

CC RFINK shows a Notice Indicator Y , the tax period on the notice is within the range of beginning and ending tax periods, and the Action Indicator allows a notice

Choose E disposition in OLNR and type the name and address of each representative(s) on the CAF/RAF entity tab to send the notice.

CC RFINK shows a Notice Indicator N or the tax period is not within date range, or the Action Indicator does not allow a notice

Choose E disposition in OLNR delete the RAF notice using the Delete CAF/RAF check box on the CAF/RAF entity tab in OLNR.

If the representative for the CAF is the same representative for the RAF, void the RAF copy.

For more information regarding notice disposition for representatives see, IRM 3.14.2.6.1.2, Manual Intervention Centralized Authorization File (CAF) and Reporting Agents File (RAF).

Research the CAF Mismatch using IRM 3.14.2.5.3.1, Processing Notices with a Central Authorization File (CAF) Mismatch.

Research the RAF Mismatch using IRM 3.14.2.5.3.2, Processing Notices with a Reporting Agents File (RAF) Mismatch.

Update all OLNR entity tabs as necessary.

Service Center Manual Intervention cases require careful review of the full address due to possible missing fields (example: 00000 for the ZIP code) or state and ZIP code mismatch conditions verified against United States Postal Service ZIP Code Lookup.

Use all available research tools including CCs FINDE, NAMEE, and the IAT Name and Address tools.

Once a full address is identified, use the USPS ZIP code look up tool to verify the found address against Postal Service standards.

Update the OLNR entity tab with the new/corrected address.

Update the address in IDRS. For more information see IRM 3.14.2.7.5, Entity Adjustments.

The Integrated Automation Technologies (IAT) Address tool is mandated to be used by the centers to make address changes in IDRS.

The NRPS Local Control File (LCF) processing is designed to allow each SPC the option to obtain additional notices for review. BMF has a priority option that when exercised, moves the analysis for the selection from Category H to the second highest Category B. The Local Control File priority option does not override the Category A selection criteria.

There are three selection systems that update and maintain the NRPS Local Control File Database.

NRP97: is used by Notice Review to display, add, change, and delete records on the Local Control File Database. Program NRP97 is updated using IDRS Command Code NRP97. NRP97 Local Control File consists of ten NRPS record types. Each record type may be updated using command code NRP97 with a unique identifier. For more information, see IRM 3.14.2.5.4.1, NRP97 Input Information, and IRM 2.4.45, Command Code NRP97.

Percentages valid on Command Code NRP97 (Local Control File) are: 1%, 10%, 25%, 33%, 50%, 75%, and 100%.

NRP98: is a batch processing program executed by operations each Friday. This program creates Local Control File tapes for input into the weekly NRPS processing. Local control reports are produced detailing the contents of the Local Control File. These reports are intended to be reviewed by Notice Review before the input of the Local Control tape files into the weekly National Account System (NAS) program. NRP98 is run on Saturday AM before running NRP11.

NRP99: is a batch processing program executed by Operations after the completion of the weekly NRPS processing. This program deletes records from the Local Control Data Base as a result of the NRPS processing, or when a TIN or DLN record has remained on the Data Base for six weeks. Local Control reports are produced by this processing. These reports show which records were deleted and why they were deleted and detail the records remaining on the Data Base.

Data Retention: Records will only be deleted from the NRPS Local Control Data Base under the following circumstances:

EIN (except Large Corporation), ERS DLN and Full DLN records are automatically deleted when selected for review or after six weeks if not selected.

Any record may be manually deleted by selecting the appropriate Option from the Option Menu, keying in enough information to identify the record. Then use the X to select the Delete action and hit page up or transmit key.

Data change: Any existing local control record may be altered as desired. To use this capability:

Select the appropriate Option from the Option Menu.

Enter enough information to identify the record.

Alter the record as desired and use X to select the change action.

Hit the XMIT key to save the changes.

Selection Keys: The following is a list of the Selection Keys assigned when a notice is selected for review by Local Control:

06: Large Corporation selection

90: EIN Selection

91: ERS DLN selection

92: CP number Selection

93: Balance Due Amount Selection

94: Full or Partial DLN Selection

95: Penalty Code Selection

Substitute Keys: Selection Keys 85, 86, 87, 88, 89, and 99 are reserved for use as Substitute Selection Keys. Substitute Keys can only be used to replace Selection Keys 90 through 96. Large corporation, TPNC, Exception Override and normal criteria selections do not have substitute keys.

Do not input NRPS command code NRP97 to update records in between the weekly runs NRP98 and NRP99. However, you can use them for research during this period. If any records have been updated in between these two runs, these updated records will not appear on the NRPS Data Base after NRP99 run. This restriction will ensure continuity in the data base throughout the weekend NRPS runs.

IDRS Command Code (CC) NRP97 is used by Notice Review to add, change and delete records on the Local Control File (LCF). This command code is only used for future cycles. It does not impact the current cycle already loaded for NRPS and OLNR.

NRP97 requests must be input before 12:00 PM (local time) on Thursdays before the new cycle file is run. The NRP97 command code is generally available on Fridays before 9:59 AM ET but will not capture any notices for the new cycle loading on Friday. It will only work for future cycles.

Several areas throughout this IRM refer to adding items to the LCF. Data input using NRP97 adds specific types of files or notices to the LCF. NRPS will use the data to select any notices that meet the NRP97 input criteria and include them in future cycles.

Use the information in this section and IRM 2.4.45, Command Code NRP97, for specific input information.

Notice Review leads, managers, and clerks use NRP97 to add, delete, and change priority review per HQ direction.

Notice Review tax examiners use NRP97 to intercept a next cycle notice the taxpayer should not receive that could not be stopped from generating. Once chosen for selection using the LCF the notice will be voided. Follow specific guidelines for when to update the LCF (using CC NRP97) throughout the IRM. These actions are in addition to correct disposition of the current cycle notice in OLNR.

If a notice being selected via NRP97 input should not be voided, contact your lead to ensure the correct notice disposition is used in OLNR in the future cycle. This is a rare occurrence.

Input CC NRP97 in the upper left corner and transmit. No other information is needed for NRP97 input to display the response screen.

The NRP97 response screen displays with the heading NRPS LOCAL CONTROL FILE BASIC OPTIONS.

The following table lists the identifier choices which appear on the BASIC OPTIONS menu screen and can be used to display, add, change, or delete a file in the LCF.

Identifier

Record Type

T

SSN/EIN

D

DLN

M

MFT/PERCENTAGE

C

CP NUMBER/PERCENTAGE

L

LARGE CORPORATION

N

TPNC OR TPNC GROUP/PERCENTAGE

B

BALANCE DUE AMOUNT

A

ADJ REASON CODE/PERCENTAGE

I

MISCELLANEOUS IMF/BMF OPTIONS

E

EMPLOYMENT CODE/AMOUNT

Click directly behind the indicator letter (list above) for the file type being updated and transmit. A new response screen will display. The layout of the new response screen depends on the indicator letter chosen. Tax examiners will generally use indicator option "T" to update the LCF by TIN.

The following steps are for NRP97T input only. Other NRP97 indicator options will have different input requirements.

When intercepting a future notice using T to update the LCF by TIN, on the response screen, choose "B" for a BMF TIN.

In the next field "return charge out wanted" , only choose "Y" if the case involves a paper return, the return is currently located in Notice Review and the return will be retained until the notice is selected by NRPS.

The next field is SSN or EIN. Enter SSN or EIN as pertains. Only one entry is permitted at a time. The number input is all that is needed the dashes are prepopulated and the number input will fill the fields as necessary.

The next field is Substitute NRPS Key. Though this is an optional field HQ prefers input of 90 - EIN Selection, when inputting NRP97T. This allows for leads and clerks to find these notices in the next cycle to make sure OLNR is updated correctly. See IRM 3.14.2.5.4, NRPS Local Control File, for more available NRP97 selection keys.

Field MFT is valid only for BMF input and while optional, it is best to complete this field so only the necessary notice module is impacted.

Tax period is valid only for BMF input and while optional, it is best to complete this field so only the necessary notice module is impacted.

Retention should never be set to "Y" by tax examiners. This requires a manual removal of the TIN from the LCF at a later date.

Priority should always be set to "Y" to ensure the capture of notices for the chosen TIN.

Print Package "Y " includes the entry in printed NRPS files. Default is allowed unless otherwise directed per local guidelines.

Once all the above data has been input, finalize the addition to the LCF by inputting an "X" to the right of the field ADD and transmitting.

The menu completion options at the bottom of each indicator response screen are DISPLAY, CHANGE, ADD, and DELETE. Completing all necessary data on the response screen will allow you to choose any of these actions.

There are two other menu options provided at the bottom of all identifier input response screens. The OPTION-MENU is used to return to Basic Options. The NRP97 response screen menu. The EXIT TAP option is used to clear the entire screen and continue to input another command code if desired, or to sign off the IDRS terminal. To choose these options input an "X " on the line to the right of the menu option and transmit. No other field input is required to use these two options.

The following section contains procedures Notice Review tax examiners should follow when reviewing notices and transcripts.

TEs must verify the accuracy of the information on the notice and taxpayer account. Compare the tax return (if available) or transcribed data in IDRS (if return is unavailable) using IDRS research command codes, to the information in the Control D NRPS Package and IDRS posted account data (TXMOD/BMFOLT) to ensure the notice and account are correct. Research utilizing all necessary command codes (e.g., TXMODA, BRTVU, TRDBV) should be performed to verify notice and account accuracy. See IRM 3.14.2.6.2 Common Command Codes Used in Notice Review, for more information.

The notice module may contain multiple issues. All issues must be resolved before marking notice disposition. Refer to all appropriate sections of IRM 3.14.2 to ensure proper analysis and resolution of notice issue(s).

All related tax modules and associated notices must be reviewed and resolved, as applicable, when the primary notice and corresponding account is resolved. No additional count is permitted for associated notices and/or modules resolved in association with the notice module.

At the beginning of each cycle, NRPS provides a charge out sheet (based on the assigned selection key) to Files for returns that may be needed for review. However, the selection key is not always an indication that a return should be ordered from Files. The return is not always necessary when reviewing certain keys and notices. However, a paper filed return must be requested in the following instances:

Appropriate IDRS research has been performed using all available command codes, but account actions and notice disposition are inconclusive.

You are permitted to access only those tax modules required to accomplish your official duties. While working assigned cases, SP employees may come across some accounts that are blocked on IDRS. These accounts can be identified by the IDRS security violation message, “Unauthorized Access to This Account”. If you receive this message, input an H Disposition to hold the notice and forward the case (e.g., BMF tax return, copy of IDRS transcript or NRPS quick print) to your manager. Managers will notify the local Planning and Analysis Staff, who will scan the case and send the encrypted information to the≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ mailbox to request access to the account. Managers will retain the original case in a file awaiting access (can take up to 5 business days). Once access has been granted, the case can be worked following applicable procedures.

E-file (ELF) returns can be reviewed using BRTVU or TRDBV. Some Forms 941, 943, 944, and 945 (depending on DLN) can be reviewed using the Employee User Portal (EUP) to access Modernized e-File (MeF) and viewing the Return Request Display. In addition, starting in 2023 scanned paper 940 and 941 returns received from Lockbox locations, will be viewable in MeF and can be identified with Filing Location Codes (first two digits of the DLN) 40, 42 (KCSPC) and 91 (OSPC).

A math error notice with a balance due of $250,000 or more or an overpayment of $100,000 or more, see IRM 3.14.2.6.7.1 Reviewing Return Math Errors, for specific information.

The return is generally needed when reviewing Key 54. See IRM 3.14.2.6.15, Selection Keys - Additional Review Required for Notices Generated Under Keys 09, 33, 52, 54, 55, 90 and 91, for complete instructions.

If the paper return is needed and was not requested via a NRPS charge-out (described above), request the return using CC ESTAB. If unable to secure the document from files via ESTAB, initiate a special search request, using Form 2275, Records Request, Charge and Recharge. Use IAT Tool Fill Forms to make the request easier. Mark the notice disposition in OLNR H to hold as approved by Headquarters. See IRM 3.14.2.7.10.7, Holding Notices, for complete information.

After research has been performed and necessary actions identified, see IRM 3.14.2.7, Case Resolution, for specific information on account and notice actions.

Use the appropriate CC (TERUP, NOREFD, etc.) to reverse actions that may have been performed in error. Be mindful of specific time frames associated with reversing actions.

History Items are required when taking action on the notice module. If the notice module is not available on CC TXMOD (dummy module not on the TIF), a history item is not necessary. Do not create a module (CC MFREQ) just to leave a history item.

If research indicates an open and active control base in A status on IDRS on the notice module, take the following actions:

Contact the employee identified on the open and active control base prior to taking any action on the account.

Do not initiate contact if the open control is assigned to a clerical unit. Clerical units are often identified by all zeroes in the last 5 digits of the employee number (i.e., XXXXX00000), although numbers other than zero may also be used.

Certain Freeze Codes require contact regardless of status code on the module. For a listing of these Freeze Codes, refer to IRM 3.14.2.6.6 titled, Reviewing Notices with Freeze Codes.

After two attempts to contact the employee with the open control (phone or email) and no response is received within two days after contact is initiated, take the appropriate action to resolve the account and notice.

When taking an action on a module with an open case control, place the employee with the open control in “B” status (using CC ACTON), input the necessary account updates, then place the employee back in “A” status (also using CC ACTON).

To ensure consistency and adherence to the processing procedures contained in IRM 3.14.2, do not establish local procedures without first contacting the Headquarters analyst. To maintain the accuracy of IRM 3.14.2, corrections and change requests can be sent to the IRM author or program owner in several ways. See IRM 1.11.6.5, Providing Feedback About an IRM Section - Outside of Clearance, for further details.

Before submitting corrections and/or change requests for IRM 3.14.2 via the SERP Feedback Application, consult the lead or manager for assistance to verify if the request for an IRM change or correction is valid.

The following information and instructions attempt to address situations that are encountered most often when reviewing notices. These instructions cannot address every possible situation and/or issue encountered. They are to be used in conjunction with all the information contained in IRM 3.14.2 and classroom training. When in doubt, contact your team lead or manager.

The following subsections list specific information that needs to be reviewed for each notice and the corresponding account.

You are permitted to access only those tax modules required to accomplish your official duties. While working assigned cases, SP employees may come across some accounts that are blocked on IDRS. These accounts can be identified by the IDRS security violation message, “Unauthorized Access to This Account”. If you receive this message, input an H Disposition to hold the notice and forward the case (e.g., BMF tax return, copy of IDRS transcript or NRPS quick print) to your manager. Managers will notify the local Planning and Analysis Staff, who will scan the case and send the encrypted information to the≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ account mailbox to request access to the account. Managers will retain the original case in a file awaiting access (can take up to 5 business days). Once access has been granted, the case can be worked following applicable procedures.

Verify the following items for each selected notice:

Employer Identification Number

Document Locator Number

Name

Address

Return Received Date

Tax period

Signature(s) for refund returns only

Taxpayer correspondence (if applicable)

Payments and credits

Discovered remittance (if applicable)

Dishonored payments and bad check penalties

Offsets

$100 million refunds

Pending transactions

Slipped blocks and mixed data blocks

Compare the EIN on the return (if the return is necessary to complete the review of the notice or if the return is available for viewing on EUP) to the notice quick print. The majority of business returns require an EIN to file. However, Form 8288, Form 706, and Form 709 usually require an SSN followed by a one letter code. If the SSN is valid the one letter code is V. If the SSN is invalid the one letter code is W.

XXX-XX-XXXXV for a valid SSN and XXX-XX-XXXXW for an invalid SSN.

Follow the steps below if you have reason to believe the EIN may have been changed. It may be necessary to use CC BMFOL if the account is for an EIN that is not available on CC TXMOD.

Use CC ENMOD to find the latest entity information on a taxpayer.

Research the return, AMS and EUP, if available to determine the correct EIN.

Use CC FINDS/FINDE to obtain the taxpayer's EIN and for a possible name change.

If there is an EIN discrepancy, the case must be routed to the Entity Control Unit. Follow the steps below before routing:

In OLNR, mark notice with "H" and notify the lead.

Request the return if not available.

Make a copy of the NRPS quick print notice and the return entity section.

Route the copies to the Entity Control Unit per local procedures, including a request to review and update entity.

When Entity returns confirmation of the update, mark the notice disposition in OLNR. If Entity Control identifies an issue with the EIN and a reprocess is needed, see IRM 3.14.2.6.18, Reprocessing Returns.

If the case has a refund, see IRM 3.14.2.7.5, Entity Adjustments, for complete IDRS actions before routing to Entity.

Always verify the DLN on your return with the DLN on the notice or NRPS package to ensure that you are reviewing the proper document. If the DLNs do not match, follow local procedures to request the correct document.

Compare the name on the tax return (if the return is available or available for viewing on EUP), to the name on the notice or entity part of the Transcript. See (5) below for address review.

If the name on the paper return is illegible, check the signature, return envelope or other attachments to determine the taxpayer’s correct name.

If the name on the notice is different from the return, check IDRS CC INOLE for the correct Master File name information using the EIN. If the name on the notice is incorrect, see (3) below to determine if Notice Review is allowed to correct the error.

Never update or request an update to a prior year name line with current processing year information.

Notice Review tax examiners are only allowed to correct the following name errors:

misspelling e.g., Coporation instead of Corporation ,

typographical error (e.g., 2424 instead of 2442), or

extra characters (e.g., extraneous %) in the first name line or continuation of first name line (IDRS field CONT-OF-PRIM-NM)

An error will be charged if name changes other than those listed above are initiated by a Notice Review employee.

See IRM 3.14.2.7.5, Entity Adjustments, for specific correction or routing information.

Because of the nature of the BMF tax account, all other name errors must be routed to the Entity Control function. This includes taxpayers requesting a Trust name change. See IRM 3.14.2.7.5, Entity Adjustments, for information on required actions and routing directions.

Compare the address on the tax return if available (if the return is necessary to complete the review of the notice or if the return is available for viewing on EUP) with the notice or refund transcript address. The notice must match the return. If the address is illegible, check the return and all attachments for clarification. If the notice and return addresses do not match use the United States Postal Service (USPS)USPS ZIP code lookup, to verify street, city, state and ZIP code.

The address must be changed in the following instances:

See IRM 3.14.2.7.5, Entity Adjustments, for specific information before making an address correction.

If the notice contains an incorrect or misspelled street suffix. Even though USPS can deliver by street name alone in most cases, all street suffixes (e.g., Avenue, Boulevard, Circle, Drive, Road, Street etc., or their acceptable abbreviations) must be correct on the notice, regardless of where the error originates.

If the notice has incorrect or missing building (bldg)/trailer/apartment number/suite/room, correct the information or add the missing information using the IAT Address Tool.

If the return or notice contains both a PO Box number and a numbered street address, put the PO Box in the street address field and the street address in the location address field on ENMOD. Correct the address on OLNR to the PO Box.

If a number is shown as part of the city, it must be spelled out. See examples in the Guide to Changing City table below.

Address on Notice

Corrected to Notice

29 PALMS

TWENTY NINE PALMS

1000 OAKS

ONE THOUSAND OAKS

Correct obviously misspelled cities and incorrect abbreviations. If you have any questions about valid abbreviations refer to IRM 3.24.38.3.4.14.8, Street Address. Use the USPS ZIP code lookup to determine the correct spelling or abbreviation of an address.

Use of the USPS website is not required on every notice, only when there is doubt as to the validity of the notice address or abbreviations of the address on the notice.

An address change is not required if:

If North, South, East or West, (or N, S, E or W) is shown at the beginning of the city name, but is missing on the notice. No IDRS change is necessary; correct the entity in OLNR.

A city or town name (that is too long) that has been abbreviated for lack of space (13 characters).

FT (Fort) and ST (Street) is used. These are allowable abbreviations and do not need to be spelled out.

The FINALIST program is standardization software used by USPS to ensure addresses are valid and correct. FINALIST knows if building numbers are valid and is used to ensure the IRS’s outgoing mail, notices, tax packages, etc., comply with the USPS address standards.

An address that is entered into IDRS and does not meet the USPS standards will not update or post with the input address.

The USPS allows thirteen characters (including spaces) for city names. FINALIST will abbreviate city names if needed to reduce the number of characters to 13.

FINALIST will also abbreviate street names if over 13 characters. However, a list of abbreviations used by FINALIST is not available.

Abbreviated street or city names are acceptable regardless of the FINALIST program or Pipeline processing. Do not change. Allow the abbreviation.

PENNSYLVANIA AVE posts as PENN AVE; WASHINGTON DR posts as WA DR.

Use the following to determine if an address change requested by the taxpayer is allowed:

Never change an address to an "in care of " unless the request is signed by the taxpayer or authorized representative.

Change the address if signed correspondence is received from the taxpayer with the street address lined through and a new address written in.

If the return has a response written on it, accept the information as coming from the taxpayer. Process the change even if the return is not signed.

If a photocopy is received without an original signature, do not change the account address.

Requests for changes of address from Certified Public Accountants (CPAs), attorneys, etc., will be honored only if there is a valid Power of Attorney on file. Use IDRS CC CFINK to check for Power of Attorney status.

When notices are printed with LOCAL as the address. The following instructions must be followed:

Use CC ENMOD to find the latest entity information for the taxpayer.

Input a CC FINDS/FINDE to obtain the taxpayer's most current address information.

If neither procedure above gives a current address to use, then verify the ZIP code using the USPS ZIP code lookup website. If the ZIP code is accurate, change the address to GENERAL DELIVERY. See IRM 3.14.2.7.5, Entity Adjustments, for specific information about making an address correction.

Never print a notice with LOCAL as the address.

If the notice contains % or C/O name on the address line, add to the "In Care Of" line and delete from the address line.

If the notice contains an address in the "In Care Of" name line that is identical to the address line, delete the address on the "In Care Of" line.

Selected notices may contain a Service Center address. When the notice has a Service Center Address, follow the instructions below.

Research the module. If there are identity theft (IDT) Indicators on the notice module, do not change the address.

RIVO updates an address to a Service Center address when working certain IDT cases. For more information on these types of cases see, IRM 25.23.9.6, Business Master File (BMF) Identity Theft Tracking Indicators.

ID Theft Indicators (RIVO markers) will appear on CC ENMOD, TXMOD, BMFOLT, or UPTIN. The BMF indicators of ID Theft are:

TC 971 AC 522 with any of the MISC fields listed in IRM 25.23.9-1, Transaction Code (TC) 971 Action Code (AC) 5XX- MISC Codes.

TC 971 AC 524 with multiple MISC field possibilities. See IRM 25.3.9-1, Transaction Code (TC) 971 Action Code (AC) 5XX- MISC Codes, for more information. When a TC 971 AC 524 is present the EIN has been locked due RIVO involvement on an ID Theft case. Another indicator is an ENMOD control base assigned to 1481400000.

UPC 341 reason code 1 or 2. on any year. This unpostable code is for unposted returns or unposted payments due to the posting of a TC 971 AC 524.

If ID Theft indicators are found on the module, input an “H” disposition for the notice and refer the case to the lead who will contact HQ for additional guidance.

If there are no ID Theft (IDT) Indicators on the notice module, use the following research methods to locate the correct address and update the notice and IDRS module accordingly:

Use CC ENMOD to find the latest entity information for the taxpayer.

Research the return, AMS and EUP, if available to determine the correct address.

Use CC FINDS/FINDE to obtain the taxpayer's current address information.

If the current address is found, see IRM 3.14.2.7.5, Entity Adjustments, for specific information for correcting an address.

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Due to an Executive directive, every return received must retain the envelope and carry the stamped IRS Received Date as the return received date.

The DUE/RCVD DATE field in the NRPS package also shows the received date.

If there is a question about the received date because the return was not stamped, decide the correct received date in the following priority:

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Earliest postmark date on envelope

Taxpayer signature date

Julian control date minus 10 days in the DLN

Current date minus 10 days

IRC 7503 provides that, in the case where the due date for filing or paying falls on a Saturday, Sunday, or legal holiday, the return or payment is considered to have been timely filed or made on the due date if it is mailed on the next succeeding day which is not a Saturday, Sunday, or legal holiday. "Legal holiday" means any legal holiday in the District of Columbia, or any State.

The Failure to File (FTF) penalty is the only penalty that should be adjusted manually for Return Received Date recomputation issues. Interest should not be adjusted manually. When the FTF is adjusted manually the computer will adjust the interest. (See IRM 3.14.2.6.17.1, Penalties and Interest.)

For Business Returns, the type of return filed can have varied period/year endings. They are:

Calendar Year: These are for a consecutive 12-month period ending on December 31. The tax period for this type of return is in the format CCYYMM. The acronym CCYYMM stands for the Century (CC), the Year (YY). the Month (MM). Each acronym is represented in 2-digit format, so it would appear on Business Returns as 202312.

Fiscal Year: These are for a consecutive 12-month period ending on the last day of a month other than December.

A return with a tax period ending January 31, 2023, would indicate a tax period of 202301.

Short Year: These are for a consecutive period of fewer than 12 months. (See IRM 3.14.2.6.4.6 Short Period Returns.)

Quarterly: These returns are filed 4 times a year (within a consecutive 12-month period beginning January 1, and ending December 31)

A first quarter return (January - March 31) would indicate a tax period of 202303 in format CCYYMM; second quarter, (April - June 30) would indicate a tax period of 202306 in format CCYYMM, etc.

Compare the year on the tax return (if the return is necessary to complete the review of the notice or if the return is available for viewing on EUP) to the tax period on the notice or on the NRPS Package Contents Page.

Look for cross-outs and changes to the tax period part of the return.

Taxpayers often file their returns using the incorrect year tax forms.

Fiscal year returns are indicated at the top of the tax return.

If the return is posted to the wrong tax period, reprocess the return to the correct tax period. (See IRM 3.14.2.6.18 Reprocessing Returns.)

Tax returns are legal documents and must have a signature on a paper return.

The following are processed without taxpayer signatures:

Returns prepared by IRS under IRC 6020(b), referred to as Substitute for Returns or SFRs, must be signed by a revenue agent or officer. However, the revenue officer's (RO) electronic signature or typed signature is a valid signature.

If the taxpayer signs the SFR it becomes the return of the taxpayer under IRC 6020(a).

Dummy returns filed by IRS.

A blank return with a CP 139 attached (e.g., notification that Form 941 or Form 940 may no longer be required because four consecutive 941 tax years were received with no liability.

Correspondence containing a signature and jurat is attached showing that the taxpayer is responding to an IRS letter.

Re-entry returns originally filed electronically (MeF). The presence of E-File printouts or Tax Return Print (TRPRT) may identify these returns as in lieu of an actual return.

A signature must be on the paper return or appropriate pin indicating an electronic signature on an electronically filed return. If the original return was received in pipeline processing without a signature, code and edit or ERS will correspond with the taxpayer. The full return is not sent back to the taxpayer. Instead, the taxpayer receives a letter containing a jurat that the taxpayer is signing the correspondence in place of the return under penalties of perjury, which the taxpayer then sends back to the IRS.

Tax return preparers may use a signature stamp to facilitate signing large numbers of returns; see facsimile signature, below. Taxpayers, however, must continue to sign paper returns with original signature.

Internal Revenue Procedure 2005-39 outlines the use of facsimile signatures (fax) by corporate officers or duly authorized agents when filing certain employment tax returns or certain information returns. The Revenue Procedure includes the following tax forms:

Form 94X series including but not limited to Form 940, Employer's Annual Unemployment (FUTA) Tax Return; Form 941, Employer's QUARTERLY Federal Tax Return; Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, Form 944, Employer's ANNUAL Federal Tax Return, and Form 945, Annual return of Withheld Federal Income Tax.

Form 1042, Annual Withholding Information Return for U.S. Source of Foreign Persons.

Form 8027, Employer's Annual Information Return of Tip Income Allocated Tips.

Form CT-1, Employer's Annual Railroad Retirement Tax Return.

Any variant of the above (e.g., Form 941-SS, Employer's QUARTERLY Federal Tax Return (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands 2023 and prior).

The facsimile signature may be in the form of a rubber stamp, mechanical device or computer software program. The corporate officer or authorized agent is responsible for ensuring their facsimile signature is affixed to return. For more detailed information, please refer to IRM 21.3.4.3.7, Use of Fax for Taxpayer Submissions.

If an electronic signature is in question see IRM 10.10.1, IRS Electronic Signature (e-Signature) Program, for specific guidelines.

If the signature is missing on a tax return requesting a refund and the tax module contains a Computer Condition Code (CCC) 3 or E in IDRS, process the notice module as if the tax return was signed.

If CCC 3 or E are not present review the return attachments and ENMOD to verify a letter has been sent to the taxpayer requesting a signature. If indication of a signature request letter cannot be found, stop the refund and send a 143C letter requesting a signature. Follow procedures in IRM 3.14.2.7.11, Signature Request Letter Process.

If taxpayer correspondence is discovered attached to the return, review it and follow through as necessary. Follow Policy Statement P-21-3 (formerly Action 61) requirements if more than 25 days have elapsed from the date the return was received.

If the correspondence is requesting action to be taken on the notice module, see the Correspondence Decision Table below.

If

Then

The action can be taken

Take the necessary action. Retype the notice as appropriate. Update the History on IDRS, indicating CORRW/RTN as the first History Item. Then input the notice disposition with the second History Item. Mailing of the notice within cycle will satisfy Policy Statement P-21-3 (formerly Action 61) requirement.

The action cannot be taken

Photocopy the tax return and the original letter. Attach the photocopy of the letter to the original tax return. Route the original letter with a copy of the tax return to Accounts Management. (Write photocopy on the copy of the tax return.) An Interim letter is required if more than 25 days have elapsed from the return received date. Update the account History to indicate action(s) taken.

If the taxpayer is requesting an Installment Agreement or indicates an inability to pay and there is no indication the letter was forwarded to Collections:

Copy the letter and attach the copy to the return.

Notate the original letter was sent to Collections.

Route the original letter to Collections.

Make sure the taxpayer's name, address, and EIN is indicated on the correspondence.

Input a CC STAUP for 9 cycles.

An Interim letter is required if more than 25 days have elapsed from the return received date.

Update the account History to indicate action(s) taken.

Route Reasonable Cause requests to Accounts Management.

If the account is in balance due status, input CC STAUP for 9 cycles.

An Interim letter is required if more than 25 days have elapsed from the return received date.

Update the account History to indicate action(s) taken.

The table below can be used as a guide to determine reasonable cause.

Examples of Reasonable Cause

Death, serious illness, or injury of the taxpayer or their immediate family

Unavoidable absence of the taxpayer

Destruction by fire or other casualty of the taxpayer's place of business or records

Delay due to erroneous information from an Internal Revenue Service employee. See IRM 20.1.1.3.2.2.5, Erroneous Advice or Reliance, regarding the conditions for reasonable cause.

Delays caused by, or related to, civil disturbances outside of the taxpayer's control

Timely requested forms not received timely

Advice or aid sought in preparing returns from Internal Revenue Service representative on or before the due date, but through no fault of the taxpayer, they were unable to see a representative

Taxpayer is unable to determine the amount of deposits or tax due for reasons beyond the taxpayer's control

Taxpayer does not have access to their records

Events beyond the control of the taxpayer. For example, the Post Office shredded the taxpayer's return, a bank substantiates the taxpayer's claim that the delay was caused by the bank, etc.

Taxpayer relies upon their accountant, and reasonable cause for the accountant’s failure can be established

While inability to pay is not reasonable cause forlate filing, lack of funds is reasonable cause for failure to pay only when it is shown that the taxpayer was unable to pay despite their exercise of ordinary business care and prudence. (Make this determination using the information available in the taxpayer's statement.)

If correspondence indicates missing information that was not added when the tax return was processed, or requests assistance in computing tax or credits that is beyond the scope of Notice Review:

Void the notice.

Route to Accounts Management.

Make sure the taxpayer's name, address, and EIN is indicated on the correspondence.

Input CC STAUP for 9 cycles if the account is in balance due status.

An Interim letter is required if more than 25 days have elapsed from the return received date.

Update the account History to indicate action(s) taken.

If the correspondence is referencing a tax module(s) other than the notice module:

Check IDRS for an open control base. See IDRS Open Control Base Decision Table below.

If

Then

There is an open control base

Route the original letter to the tax examiner who has the case controlled. Indicate correspondence attached to original return on routing document.

There is no open control base, and the requested action has not been taken

Input CC STAUP for 9 cycles. Route case to Accounts Management. Indicate correspondence attached to original return on routing document.

The guidelines for Policy Statement P-21-3 (formerly Action 61) are established to ensure the taxpayer receives an accurate, professional and timely response to correspondence submitted to the IRS. In Notice Review, we will be responsible for sending interim responses to correspondence attached to original tax returns when it is decided the action requested has not been taken. If it can be decided the action requested has been taken, the mailing of the notice will satisfy our responsibility for the requirement.

If Manual Intervention conditions on the notice module are identified on the NRPS contents page, use the following to determine notice resolution and disposition:

If the notice generates with the representative's name and address in the entity, manual intervention will indicate match.

If the notice generates with the representative's name and address blank, manual intervention will indicate mismatch

Manual intervention may indicate any combination of CAF Match, CAF Mismatch, RAF Match, or RAF Mismatch.

Use CCs CFINK and RFINK on IDRS to decide notice disposition for CAF/RAF mismatch and locate an authorized representative's name and address.

For more complete instructions for reviewing CAF/RAF notices please refer to ,IRM 3.14.2.5.3, Manual Intervention CAF/RAF/MM/SC , IRM 3.14.2.5.3.1, Processing Notices with a Central Authorization File (CAF) Mismatch and/or IRM 3.14.2.5.3.2, Processing Notices with a Reporting Agents File (RAF) Mismatch.

For notice disposition when a valid Authorized Representative is not located, refer to the Invalid Representative Disposition Table below.

If

And disposition of original CP is

Then

NO is present on CFINK or NO is present on RFINK

Print

Select OLNR disposition E (Entity) and delete the CAF or RAF Entity copy by checking the box located on the Entity Tab Screen.

NO is present on CFINK or NO is present on RFINK

Label

Select OLNR disposition R (Retype) and delete the CAF or RAF Entity copy by checking the box located on the Entity Tab Screen. Then select the appropriate label from the Label Drop Down Menu.

NO is present on CFINK or NO is present on RFINK

Retype

Select OLNR disposition R and delete the CAF or RAF Entity copy by checking the box located on the Entity Tab Screen.

NO is present on CFINK or NO is present on RFINK

Void

No additional action is required.

Disbarred, Suspended or Deceased is indicated

Print

Select OLNR disposition E and delete the CAF or RAF Entity copy.

Disbarred, Suspended or Deceased is indicated

Label

Select OLNR disposition R and delete the CAF or RAF Entity copy by checking the box located on the Entity Tab Screen. Then select the appropriate label from the Label Drop Down Menu.

Disbarred, Suspended or Deceased is indicated

Retype

Select OLNR disposition R and delete the CAF or RAF Entity copy by checking the box located on the Entity Tab Screen.

Disbarred, Suspended or Deceased is indicated

Void

No additional action is required.

If the representative address is undeliverable

Print

Select OLNR disposition E and delete the CAF or RAF Entity copy by checking the box located on the Entity Tab Screen.

If the representative address is undeliverable

Label

Mark OLNR disposition R and delete the CAF or RAF Entity copy by checking the box located on the Entity Tab Screen. Then select the appropriate label from the Label Drop Down Menu.

If the representative address is undeliverable

Retype

Mark OLNR disposition R and delete the CAF or RAF Entity copy by checking the box located on the Entity Tab Screen.

If the representative address is undeliverable

Void

No additional action is required for the CAF or RAF copy. All versions of the notice will be voided.

For notice disposition when an authorized representative's address is located, refer to the CAF/RAF Notice Disposition table below.

Disposition of Original CP

CAF/RAF Mismatch Additional Action Required

PRINT

Select the OLNR disposition E.

Add the CFINK or the RFINK address information to the CAF or RAF Entity Copy on the OLNR server.

VOID

None

RETYPE

Select OLNR disposition R.

Add the CFINK or the RFINK address information to the CAF or RAF Entity copy on the OLNR server.

LABEL

Select OLNR disposition R.

Add the CFINK or the RFINK address information to the CAF or RAF Entity copy on the OLNR server.

Select the appropriate label.

After completing the General Review procedures located in IRM 3.14.2.6, General Review Procedures, including all subsections, continue with the following instructions as appropriate:

Math Error Condition: IRM 3.14.2.6.7

CP 267 and CP 268 Review - Notice of Excess Credit Q- Freeze: IRM 3.14.2.6.8

CP 161 (CP 861 Spanish) Balance Due Notice - Non-Math Error: IRM 3.14.2.6.9

CP 162 Failure to File Electronic Partnership Return: IRM 3.14.2.6.10.1

Reviewing Notices with Remittance Processing System (RPS) Indicators (Key 02): IRM 3.14.2.6.11

Refund Transcripts: IRM 3.14.2.6.12

Required Payment or Refund Under Section 7519 - Form 8752: IRM 3.14.2.6.13

Adjustment Notices: IRM 3.14.2.6.14

Selection Keys - Additional Review Required for Notices Generated Under Keys 09, 33,52, 54, 55, and 91: IRM 3.14.2.6.15

CP 173 - ES Penalty: IRM 3.14.2.6.16

This subsection contains instructions dealing with payments and credits. It includes information on discovered remittance, dishonored payments, Bad Check Penalties and Bank Adjustments.

When reviewing tax returns, especially Non-Math Error Balance Due notices, thoroughly search all attachments (including envelopes) for payments.

Use the following procedures to process a discovered remittance:

Prepare Form 3244 (Payment Voucher) in duplicate.

Attach the carbon copy to the front of the tax return under the Entity section.

Use CC ACTON to input a history item of DISCREMIT on IDRS.

Input CC STAUP for 8 cycles on all balance due modules.

Void, retype, or label the original notice as required.

Prepare Form 4287 - Record of Discovered Remittance.

Give remittance and the original copy of Form 3244 to team lead.

A penalty is imposed on dishonored checks or other forms of payment that are returned from a financial institution unpaid.

Bad checks penalty associated with the dishonored payment will be identified on Master File and IDRS as a TC 280 (manually computed and assessed penalty) or TC 286 (systemically computed and generated penalty).

If a Dishonored Payment transaction (TCs 611, 641, 651, 661, 671, 681, or 691) and penalty (TC 280 or 286) are pending on the notice module:

Delete any refund resulting from the dishonored/bad check.

If the refund was deleted, wait for the TC 841 to post.

Input CC STAUP for 6 cycles if a balance due remains.

Retype the notice to include the Dishonored Payment Penalty (Notice Penalty Code 04). Update the balance due, refund amount, or credits on the notice using CC COMPA and CC INTST.

Use CC COMPA to update the module because CC INTST will not be accurate until the TC 280 or 286 posts.

Issue a manual refund for large dollar refunds if it can be done within the 45 day period, if the taxpayer is still entitled to a refund despite the dishonored payment/bad check.

For additional information, see IRM 20.1.10.7, IRC 6657 - Bad Checks (Dishonored Checks or Other Forms of Payment).

There may be instances when payments are encoded incorrectly on a taxpayer’s account. If an obvious encoding error is discovered, refer to the Bank Adjustments Decision Table below.

If

And

Then

The payment can be located on Remittance Transaction Research (RTR) system

The amount of the check matches the amount posted to the account

No further research is needed. Resolve the notice issue.

The payment can be located on RTR

The amount of the check does not match the amount posted to the account

This may be an encoding error. Print a copy of the check from RTR and follow the directions in the boxes below.

Math error notice and the notice module is overpaid, and a refund is scheduled to be released

The payment is less than what the taxpayer is claiming

1. Allow the refund. 2. Print the notice. 3. Contact the Payment Correction Team (at the SP site that processed the payment) for resolution.

Math error notice and the notice module is overpaid, and a refund is scheduled to be released

The payment is more than what the taxpayer is claiming

If the verified payments total $5,000.00 or more, issue a manual refund for the corrected refund amount. Void the notice, leave a history and follow Item 4 in next box.

1. Intercept the refund using CC NOREF via the IAT tool. 2. Use Refund Deletion code 99. 3. Close your control base. 4. Contact the Payment Correction Team (at the SP site that processed the payment) for resolution.

The notice is a non-math error notice

Notice is balance due

Void notice. Leave History Item Input CC STAUP for 9 cycles. Contact the Payment Correction Team at the SP site that processed the payment) for resolution.

Notice is a non-math error notice

Notice is credit or even balance

Void notice. leave History Item. Intercept Refund and/or freeze credit on module.

When working CP 267 or CP 210, if there is a bank adjustment, the credit must be frozen, or refund intercepted so the bank adjustment can be done prior to the credit being erroneously refunded.

The notice is a math error notice with a balance due

The notice has EFTPS payment(s)

Print the notice. Contact the Ogden Payment Correction Team at 801-620-7801 for resolution.

Internal Revenue Code IRC 6402 (a) allows the IRS to offset payments against tax liability. Internal Revenue Code IRC 6402 (c)-(f) require a taxpayer’s overpayment be applied to any outstanding non-tax debts including child support, federal agency non-tax debt, state income tax obligations or certain unemployment compensation debts owed to a state. Offsets under IRC 6402 (c)-(f) must be made prior to crediting the overpayment to a future tax (credit elect) or allowing a refund. This application of a tax overpayment is called a refund offset. Refund offsets to child support, federal agency non-tax debts, state income tax obligations and unemployment compensation debt are handled by the Bureau of the Fiscal Service (BFS) through the Treasury Offset Program (TOP). This occurs after a refund is certified by Internal Revenue Service (IRS) for payment by BFS, but before the refund check is issued or direct deposit is transferred to the taxpayer’s bank account. For additional information see IRM 21.4.6, Refund Offset Research, Reversals, and Injured Spouse Processing.

There are two types of refund offsets:

Tax offset,

Treasury Offset Program (TOP) offset, effective 01/11/1999 and after

A tax overpayment must offset to an outstanding federal tax debt before it offsets to non-tax debts or is applied to a credit elect.

The priority of offsets within TOP are:

Office of Child Support Enforcement: Temporary Assistance to Needy Families (TANF) (payments to the state) and/or

Non-Temporary Assistance to Needy Families (non-TANF) (payments to the custodial parent through the state)

Federal Agencies

State income tax obligations

Unemployment compensation

Command Code (CC) INOLE contains debt liability indicators based on information received from BFS. BFS debt records are updated daily; however, IRS CC INOLE is only updated weekly. Therefore, CC INOLE may not have the most current debt information. The indicators are used to identify an IRS freeze or tax debt, TOP non-tax debt, or both. These indicators are shared with Electronic Return Originators (EROs) on the Electronic Filing (ELF) acknowledgement file, and used by the EROs to determine whether to approve a Refund Anticipation Loan (RAL) The indicators are the letters: N, I, F, B. For a complete explanation of each code refer to IRM 21.4.6.4, Refund Offset Research.

CC TXMOD also contains debt liability indicator, found directly below the TC 846. The indicator is set at the time the TC 846 is generated on the module and is shown as: DMFLIAB-> 1 or DMF-LIAB-IND>0.

If the indicator on CC TXMOD is a 0, the debt indicator on CC INOLE will be an N or an I.

If the CC TXMOD debt liability indicator is a 1 the debt liability indicator on CC INOLE will be an F or B.

Offsets occur when credit is moved between different tax modules and/or taxpayer accounts. Credits can be moved manually, or are computer generated.

Money should not be moved manually with offset or lump sum transaction code if the Refund Statute Expiration Date (RSED) has expired. However, a payment can be moved if it was made less than 2 years before the claim was filed.

All existing modules with a balance due≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡must be satisfied before inputting a manual refund or manually transferring a credit elect.

Review the return to decide if the taxpayer requested that all or part of their overpayment be applied to the next tax period.

If any balance due module contains an -E Freeze, do not manually offset credit to satisfy the module.

When the request is transcribed properly from a current period return, the computer will automatically offset the credit (TC 836/716) if it is available.

If credit elect is $ .99 or less the amount will not be automatically offset by the computer. In this instance the tax examiners do not have to manually transfer the credit.

If the full amount of the credit is not available when the return posted:

For Form 990-PF, Form 990-T, Form 1041, Form 1120, and Form 1120-C, the computer continues to offset as more credit becomes available until the full credit elect amount is satisfied. This capability only exists up to one year after the original tax period ending date.

Up to December 31, 2021 for a 202012 tax return.

For Form 940, Form 941, Form 943, Form 944, Form 945, Form 720, Form CT-1, and Form 1042 the computer will not offset additional credit elect after the return posting cycle. A manual credit elect transfer must be input for additional offsets on these modules. (Input CC ADD48 on IDRS using the IAT Credit Transfer Tool and TC 830/TC 710.)

The following notices pertain specifically to credit elect situations:

CP 147 - will only generate on an income tax return. It is issued when additional credit(s) become available and are computer offset.

CP 145 - must be pulled and associated with the case when adjusting an account if the credit elect will be affected.

Forms 940, 941, 943, Form 944, and 945: When the refund box is checked, Integrated Submission and Remittance Processing (ISRP) System or Data Input System (DIS) will input a Refund Indicator, which generates the Computer Condition Code S at posting. When neither box is checked or the Applied to Next Return box is checked, the refund indicator is not input, Computer Condition Code E generates at posting, and the overpayment is applied to the next return (credit elect). Follow the instructions below:

Verify that the entries match the Computer Condition Code posted to the notice module.

If there is an overpayment on the account that will refund, and any of the following occur, apply the credit elect using (6) below: • Neither of the boxes are checked. • The return is not available. • The Computer Condition Code E is present on the notice module.

If the Data Transcriber did not properly transcribe the credit elect request and the credit is refunding:

Delete the refund.

Use CC ADD48 to manually transfer the credit elect amount as a TC 830/TC 710. Be sure to use posting delay codes to allow time for the TC 841 to post to the module before the TC 830 posting.

For Form 941 and Form 944, if the taxpayer entered the credit elect or total FTD credits on the Advanced Earned Income Credit line in error and an erroneous TC 766 credit is present, delete the refund. Adjust the TC 766, using CC REQ54 on IDRS. Manually transfer the claimed credit elect if not already offset by the computer.

Master File will not automatically offset requests for credit elect on prior year income tax returns and/or additional requests on all non-income tax returns.

Use CC BMFOL to review the next period.

Manually input credit elects on all prior year returns.

Never transfer credit elect from a module with an expired RSED.

Transfer claimed credit elect directly to a module separated by more than one tax period (e.g., 20XX03 to 20XX09), if all of the modules in between claim the same credit elect, are settled modules, and no penalties or interest will abate. Use the correct dates and an Override Code "2" on the Doc Code 48 transfer.

All other offsets (TC 826 or 896) have priority over a credit elect offset. Only reverse one of these offsets in favor of a credit elect when a TC 826 offsets to the next period, and penalties and interest will decrease if a timely credit elect posts.

Refer to the Credit Elect and Credit Offset Decision Table below.

If

Then

The next tax period has a balance due

Stop the refund.

The credit elect will cause penalties and interest assessed on the next period to partially or fully abate

Retype the settlement notice or Void the CP 145.

Taxpayer claimed the credit on the next tax period and the credit elect field on the next module has an amount

Manually offset the credit elect.

Otherwise

Allow the refund.

When increasing tax or reversing credits on the notice module, reverse all or part of a notice cycle credit elect to cover the debit. Input CC ADC48 using TC 832/712 on IDRS.

Delete any current cycle refund on the next module. Reverse the offset using a posting delay code to allow time for the TC 841 to post before the TC 712.

Do not reverse a credit elect that was offset in a different cycle from the notice cycle.

If the notice generated in cycle 20XX15 and the TC 836 posted in cycle 20XX08, do not reverse the TC 836.

Retype the original notice to include the CP 145 information. If a notice cannot be mailed take no action.

If the credit elect from the prior year module (TC 716) was intended for another account, use CC ADD48 to transfer the credit with a TC 712/TC 710:

Use the TC 716 date as the TC 712 date.

Use the date the credit was originally available as the TC 710 date.

Reverse a TC 826 offset if there is a pending manual credit transfer.

When manually transferring credit elect, input TC 830/TC 710:

If all payments or credits are timely ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, use the due date of the return as the 830/TC 710 date. Otherwise, use the date of the credit creating the overpayment as the TC 830/TC 710 date. In the case of a tax decrease (TC 291/295), use the due date of the return or latest payment date.

For Form 1120 with a tax period ending in 06, the TC 830/836 date is the RDD plus one month. For example: on a 20XX06 return the due date is 101520XX and the TC 830/836 date is 111520XX. For Form 1120 returns beginning after 12/31/2015 (excluding those with a tax period ending in 06) , the TC830/836 date is the RDD (there is no need to add a month). Refer to IRM 21.7.4.4.5, Estimated Tax Overpayment Credit Elect-General.

Multiple TC 830s may need to be input depending on the date the credit is available. Always transfer the most recent credits first.

If a tax adjustment or credit transfer creates, or is a part of the overpayment, time the offset (TC 830) to post after the adjustment or credit transfer, by inputting a Posting Delay Code (See Use of Posting Delay Codes Table).

Timing the actions will allow all of the transactions to post and will prevent unintentional refunds and unpostables. If the required overpayment amount is not available, the computer will resequence the TC 830 for one cycle. The exact amount of credit must be available or the TC 830 will unpost.

An adjustment notice will generate the same cycle as a penalty reversal if a Failure to Deposit (FTD), Failure to File (FTF), Failure to Pay (FTP) (decrease only) or Estimated Tax (ES) Penalty recomputes.

Refer to the Use of Posting Delay Codes chart below.

If

Then

The penalty or interest will recompute because of an adjustment action.

If penalties and interest will not recompute, the Posting Delay Code on the TC 830 is not required.

Use appropriate Posting Delay Codes to time the transactions to post in the following order:

Adjustment or credit transfers and TC 290 .00 adjustments, if preventing an adjustment notice.

When inputting a credit transfer follow instruction in IRM 3.14.2.7.7, Credit Transfers.

The TC 830.

The TC 571, if required.

Check prior periods for debit modules before inputting the TC 830/TC 710. If no E Freezes are present, manually offset applicable credit to the debit module(s) with the earliest CSED(s) before applying forward. Use TC 820/700 with CC ADD24. Time the transaction to post in the same cycle as the TC 830/TC 710.

A Doc Code 34 credit transfer will create the overpayment, use a Freeze Code 1 on the transfer.

Input TC 290 .00, Hold Code 3, appropriate Posting Delay Code, if the adjustment notice must be suppressed. See Note below.

Input TC 830/TC 710, Doc Code 48, appropriate Posting Delay Code on the debit side of the transfer.

Release module freeze, appropriate Posting Delay Code to post after the TC 830 if there is remaining credit that must refund.

A Doc Code 24 or 48 credit transfer will create the overpayment, use a TC 570 on the credit side of the transfer.

Input TC 290 .00, Hold Code 3 if the adjustment notice must be suppressed. See Note below.

Input TC 830/TC 710 with Doc Code 48.

Release module freeze. Use appropriate Posting Delay Code to post after the TC 830 if there is remaining credit that should refund.

A Doc Code 54 adjustment will create the overpayment, use Hold Code 4 on the adjustment.

Input the TC 830/TC 710 on a Doc Code 48.

The TC 830 will release any remaining credit on the module when Hold Code 4 is used.

For more information on selecting the appropriate Hold Code, see, IRM 3.14.2.7.6.3, Hold Codes and IRM 20.1.2.2.10, Hold Codes and Notices.

See the Credit Elect Notice Disposition chart below to determine the correct notice disposition.

If

And

Then

The CP 145 or settlement notice with the credit elect pop-in paragraph will be mailed to the taxpayer.

Master File cannot systemically offset the additional credit elect.

Manually transfer the credit elect (see above).

Use label 7 to reflect the credit elect.

The CP 145 or settlement notice with the credit elect pop-in paragraph will be mailed to the taxpayer.

Master File can systematically offset the additional credit elect.

Let Master File offset the credit. Do not input a TC 830/TC 710.

Use Label 2. Allow the CP 147 to generate.

All of the requested credit elect amount has now been applied.

A CP 145 generated.

Void the CP 145.

All of the requested credit elect amount has now been applied.

A settlement notice generated with the credit elect pop-in paragraph.

Retype the notice to exclude the pop-in paragraph or void if returning to taxpayer’s original figures.

The total credit elect applied is still less than the taxpayer’s figures.

A CP 145 generated.

Retype the CP 145.

The total credit elect applied is still less than the taxpayer’s figures.

A settlement notice generated with the credit elect pop-in paragraph.

Retype the notice to correct the dollar amounts in the pop-in paragraph.

Keep the following in mind when manually transferring credit elect:

Use an Override-Date Indicator 2 on both sides of a Doc Code 48 if the debit and credit transaction dates are different.

Use the date of the credit being reversed as the reversal transaction date.

Do not transfer credit elect for an amount exceeding the available credit on the module.

Do not transfer credit elect with a transaction date earlier than the due date of the return.

Do not transfer credit elect with a transaction date earlier than the credit or payment that created the overpayment.

In the case of a tax decrease (TC 291/295), use the due date of the return or latest payment date.

Master File offsets available credit (with a TC 826/706) to an account on which a taxpayer has a balance due. A notice will generate to tell the taxpayer of the offset:

This offset to a debit account has priority over a requested credit elect except when an -A Freeze is present.

CP 138 generates when an overpayment offsets to another tax liability.

Use a Doc Code 24 credit transfer with a TC 701/821 to reverse an offset to a tax liability. Include a TC 570 on the credit side (TC 821) if the credit must be held. A Bypass Indicator is unnecessary. Use of IAT is mandatory to perform credit transfers.

Make sure the reversal date matches the original offset date. Use CC BMFOLT to review a module that is not in the NRPS package or on IDRS.

The TC 826 date may differ from the corresponding TC 706 date.

Reverse multiple transactions in the order that the TC 826s appear on the module. Do not lump transactions together.

Reverse a TC 826 offset if there is a pending manual credit transfer

If an adjustment will leave a balance due on a module:

Reverse the offset. Refer to the Offset Reversal Decision Table below.

If

Then

There is a current cycle TC 826/706 offset

Reverse it in whole or in part to satisfy the balance due. Do not reverse a prior cycle TC 826 unless timely credits are located to satisfy the account.

The module that received the offset has a current cycle refund

Delete the refund. Reverse the TC 826 using a Posting Delay Code to allow time for the TC 841 to post before the TC 821.

Use CC ADD24 with a TC 731/851 to reverse offset interest (TC 736/ 856).

Use CC REQ54 with a TC 772 to reverse the TC 776. Use Hold Code 3 if needed.

Void or retype the CP 138.

When manually transferring offsets, input TC 820/700 on CC ADD24.

Use the later of the Return Due Date (RDD) or the date of the credit creating the overpayment as the TC 820/700 date.

Never transfer lump sum credit from a module with an expired RSED.

Multiple TC 820s may need to be input depending on the date credit is available. Always transfer the earliest available credits first.

Bureau of the Fiscal Service (BFS) initiates refund offsets to outstanding federal tax debts, child support, state income tax obligations and unemployment compensation debts via the Treasury Offset Program (TOP). These offsets are referred to as TOP offsets. A TOP offset appears on the module as:

TC 898 with an Offset Trace Number (OTN), an offset amount, and a debtor-TIN field, if the offset is for a secondary spouse.

OTN - Starting with 1 indicates primary taxpayer debt.

OTN - Starting with 2 indicates secondary taxpayer debt.

TOP offsets occur after the IRS has certified a refund to BFS for payment (TC 840/846 on account), but before BFS direct-deposits the refund overpayment or mails the refund check.

A TOP offset reduces the amount of the IRS refund by the amount of the TC 898 offset.

A TOP offset does not affect IRS’ ability to stop a refund through (CC) NOREF, or the time frame involved to do so.

A TOP offset Bypass Indicator (BPI) is assigned to all manual and systemic refunds issued to BFS by IRS. The BPI is a one-digit indicator that identifies for BFS whether the refund is eligible for offset by TOP.

The BPI is posted/displayed along with the TC 840/846 on all output screens such as TXMOD, IMFOL, BMFOL, and on MFTRA transcripts.

There are ten BPIs, 0 through 9. For a complete definition of BPI codes refer to IRM 21.4.6.4.2.1, TOP Offset Bypass Indicator (BPI).

TOP offsets are made against any refund issued from the following MFTs: 02, 03, 07, 10, 13, 29, 34, 44, 46, 52, 60, 63, 64, 77, and 78, unless a BPI is systemically generated on the refund or input on a manual refund. See IRM 21.4.6.4.2.1, TOP Offset Bypass Indicator (BPI).

For specific questions concerning offsets refer to IRM 21.4.6, Refund Offset.

An account with an overpayment of $100 million or more requires that a manual refund be issued because a TC 846 will not generate. Assign these cases to a work leader the same day they are received in the unit. See IRM 3.14.2.6.6.25 , Refund X- Freeze for more information.

Refer to Document 6209 Freeze Codes Section 8 A for more information.

Use current procedures for resolving over payment prior to initiating a manual refund:

Verify all unclaimed credits.

Offset the overpayment as needed to cover any debit balances.

Abate any interest caused by an overpayment not due the taxpayer.

The account must be satisfied or in debit status before closing the control. If another area has an open control on the case, contact that area, and route all available documents to that area (remember to document this action on IDRS).

The control base may be closed if there is an -L Freeze (see IRM 3.14.2.6.6.13, AIMS Indicator Freeze (-L)) on the module and a Revenue Agent (RA) has advised that the credit not be refunded due to legal implications. Remember to document this action on IDRS.

If, after any adjustments, the account has a credit balance less than $100 million with a -X freeze:

Offset credit to any debit-balance modules.

Prepare a manual refund for the excess credit.

Initiate a manual refund using the IAT tool.

If, after any adjustments, the account has a credit balance of $100 million or more, Notice Review must initiate the manual refund using the IAT and route to the Accounting Function for issuance. Take the following steps below”

Prepare Form 3753.

Send a copy of the original return, transcript, Form 3753 , Manual Refund Posting Voucher, all prints essential to manual refunds, and any other documents about the case to the Accounting function. Refer to IRM 3.14.2.7.2.2, Manual Refunds, for more information.

Close the control base after all account transactions post.

Keep photocopies of the return and the transcript on file for future reference.

The NRPS data will show appended (changed/pending) transactions at the beginning of each notice file in the batch. NRPS extracts this data from the following sources:

Generalized Unpostable Framework (GUF) and Unpostable Files

Taped Edited Program (TEP) File

Error Resolution System (ERS) File Revenue Receipts

Unidentified Remittance and Excess Collection File

Resequencing File (RS)

Generalized Mainline Framework (GMF) Error, Block Out of Balance (BOB), and Reject Files (RF)

See the following sections for more information on pending transactions.

Pending transactions are account actions that have not posted to the taxpayer’s account by the notice cycle.

Pending transaction data consists of transaction codes, dates, and amounts, account identifying information, and other pertinent data. This data appears with the name of its source file (GUF, TEP, etc.) under the Pending Transaction heading on the NRPS Package Contents Page. ( See Document 6209 Section 14 Pending Transaction Identification Codes/IDRS Merge Related Transaction Codes ).

Pending Transactions can be identified by their IDRS status. Below are common statuses seen in Notice Review.

AP - Awaiting Pending status. A transaction that was input on the current day and will remain in AP status until end of day processing.

PN - Pending. A transaction that is pending and has passed IDRS validity checks.

RJ - Rejected. A transaction that has been rejected due to not meeting IDRS validity checks.

RS - Resequencing. A transaction that has been extracted from the resequencing file due to account conditions.

UP - Unpostable. A transaction that cannot post due to errors that will not pass GUF validity verification.

CU - Corrected Unpostable. A transaction that previously unposted, has been corrected, and will post after Master File processing.

DU - Deleted Unpostable. A transaction that previously unposted and could not be corrected due to unknown variables or system limitations.

Due to CADE 2 accelerating IDRS updates the amount of pending transactions should be reduced.

See the following sections for processing different types of pending transactions.

Adjustment transactions in IDRS with a DLN Document Code of 54 or 47 indicate an input from ADJ54. See Document 6209 Section 4, Document Locator Number and Section 4, Part 2, DLN Doc Code composition for more information.

If the pending transaction is Resequencing (RS), the transaction will post unless conditions on the module or in the transaction data cause it to go unpostable. Refer to, IRM 3.14.2.6.1.7.2, Unpostable Transactions, for more information.

See IRM 3.14.2.6.14, Adjustment Notices, and its subsections for specific information for adjustment notices.

If a pending adjustment was input by another area, with a Hold Code 0 or 1, another notice will generate. Label 1 the notice in OLNR. See the table below for account and OLNR actions.

When Hold Code 0 is used, it will not display on IDRS screens (other than ADJ54) or in the NRPS Package/Control D. If no hold code is visible, Hold Code 0 was input.

If the account is

Then

Not overpaid

Apply Label 1 to the selected notice in OLNR.

Overpaid but the pending transaction will not reduce the refund

Apply Label 1 to the selected notice in OLNR.

Overpaid, the pending transaction will reduce the refund, and the refund can be intercepted,

Intercept the refund. Apply Label 1 to the selected notice in OLNR.

Overpaid, the pending transaction will reduce the refund, and the refund cannot be intercepted

Follow erroneous refund procedures ( IRM 3.14.2.7.2.1, Erroneous Refunds) and apply either Label 15 or 16 in OLNR as applicable.

When the pending transaction was input using a Hold Code 3 or 4, use the following chart:

Another adjustment notice will not generate.

In addition to preventing an adjustment notice, Hold Code 4 will freeze any available credit from refunding or offsetting.

If the account

And the Pending Transaction will

Then

Is refunding

Not reduce the refund

Retype the notice if one refund check will be received. If two refund checks will be received, apply Label 17.

Is refunding

Reduce the refund

Intercept the refund and retype the notice. If the refund cannot be intercepted, follow erroneous refund procedures and apply either Label 15 or 16 as applicable.

Is not refunding (regardless of the original account balance)

Change the account balance

Retype the notice to reflect the correct account information and module balance.

Timely credits or debits posting to an account may result in systemic recomputation of Failure to Deposit (FTD), Failure to Pay (FTP), Failure to File (FTF), and Estimated Tax (ES) penalties.

See IRM 3.14.2.6.14, Adjustment Notices, and its subsections for specific information for adjustment notices.

Carefully research IDRS.

If review of the account determines that a pending (AP, PN, RS, UP or CU) credit or debit transaction will post:

Use CC INTST to compute the new module balance updating the date to the current 23C (notice) date.

If interest or Failure to Pay penalty is restricted, use CC COMPA to recompute interest or CC COMPAF to recompute Failure to Pay penalty.

If the pending transaction is a payment that is RS or UP, CC INTST reflects only the payment. Penalty and interest must be manually recomputed.

Use CC PIEST to show a recomputed ES Penalty (TC 176 assessment/TC 171 abatement) when timely payments are moved into a module for Form 990-T , Form 990-PF, Form 1041 and the Form 1120 series. See IRM 3.14.2.6.17.7, Estimated Tax Penalty and IRM 3.14.2.6.16 CP 173 - ES Penalty for more information.

Use CC COMPAE/ CC COMPAS to recompute the ES Penalty if it is restricted by a manual TC 170 or TC 171 or an additional tax adjustment requires the penalty to be recomputed.

If a pending (PN, RS, or UP) credit transaction will post, use the following chart:

If the pending transaction will not post, print the notice.

If another notice will

And the notice module

Then

Not generate

A notice will not generate if the FTF, FTP (decrease only), or ES Tax penalties will not recompute.

Is overpaid or offsetting

Retype or label the notice as appropriate. The label options for this scenario are: Label 4,(IRM 3.14.2.7.10.6.4, Label 4), Label 6 ( IRM 3.14.2.7.10.6.6, Label 6), and Label 14 ( IRM 3.14.2.7.10.6.14, Label 14). Review each label carefully before selecting in OLNR.

Not generate

A notice will not generate if the FTF, FTP (decrease only), or ES Tax penalties will not recompute.

Is in balance due that will be reduced, become even balance, or overpaid

Retype the notice to reflect the credit and update interest and penalties as needed. Label 3 may be used instead, but the module must remain in balance due status and the updated account balance must be provided on the label in OLNR.

If the account balance will match taxpayer figures and the account will have a zero balance without a math error or the taxpayer is receiving the expected refund with one TC 846 (refund), then void the notice.

Generate because the FTF, FTP (decrease only), or ES Tax penalties will recompute

Failure to Pay (TC 276) will not recalculate if the payment is late and dated within the same monthly period as the 23C date of the notice.

Will be overpaid or even balance

Apply Label 18.

Generate because the FTF, FTP (decrease only), or ES Tax penalties will recompute

Failure to Pay (TC 276) will not recalculate if the payment is late and dated within the same monthly period as the 23C date of the notice.

Will have a balance due

Apply Label 2.

If review of the account determines that a pending (PN, RS, or UP) debit transaction will post to the notice module, follow the chart below.

If an account is refunding and the debit transaction is a TC 820 or TC 830, see (5) below.

If the pending transaction will not post, print the notice.

If another notice will

And the notice module balance

Then

Not generate

Will be a decreased overpayment

Intercept the refund and retype the notice including applicable interest and penalties

If the account balance will match taxpayer figures and the account will have a zero balance without a math error or the taxpayer is receiving the expected refund with one TC 846 (refund), then void the notice.

Not generate

A notice will not generate if the FTF, FTP (decrease only), or ES Tax penalties will not recompute.

Is balance due and the balance due will increase

Retype the notice to reflect the debit transaction and update interest and penalties.

Generate because the FTF or ES Tax penalties will recompute

Is overpaid, the overpayment will be decreased, and the account will remain overpaid or even balance

Intercept the refund. Retype the notice as appropriate, including interest and penalties. Input a TC 290 .00 Hold Code 3 to intercept the adjustment notice.

If the account balance will match taxpayer figures and the account will have a zero balance without a math error or the taxpayer is receiving the expected refund with one TC 846 (refund), then void the notice.

Generate because the FTF or ES Tax penalties will recompute

Is balance due and the balance due will increase

Retype the notice to reflect the debit transaction and update interest and penalties. Input a TC 290 .00 Hold Code 3 to intercept the adjustment notice.

If the pending debit transaction is a TC 820 (manual offset) or TC 830 (manual credit elect), and the account is refunding or has systemically offset, the TC 820 or TC 830 will go unpostable if the credit is no longer available when the transaction posts.

Review all of the involved modules to determine if the pending transaction is correct.

Intercept the refund if possible. See IRM 3.14.2.7.1, Refund Intercepts using CC NOREF, for more information.

If the refund cannot be intercepted or the overpayment amount has already systemically offset, contact the originator if they do not have an open control base to notify them of the impending unpostable, and print the notice.

If the refund can be intercepted to allow the TC 820 or TC 830 to post , the taxpayer account will remain overpaid, and the transaction is for the same EIN on the credit and debit sides of the transaction, then release any remaining refund and Label 7 the notice. If the account will become balance due or the EIN on one side of the TC 820 or TC 830 is different then retype the notice to include the offset or credit elect amount(s).

Unpostable transactions are transactions that require corrective action before posting to the Master File.

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

Document 6209, Section 8, contains descriptions of UPCs and RCs along with a list of unpostable resolution codes (URCs). This information will help decide the corrective action to take. See Document 6209 Section 8B Unpostable Codes chapter 4 and/or Document 6209 Section 8B Unpostable Resolution Codes chapter 7

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

Transaction Code

Date

Dollar Amount

TIN

MFT

Tax Period

Cross Reference (XREF) Account

A pending Unpostable will display one of the following identification codes next to the Transaction Code:

Unnn or UP: An open unpostable transaction nnn is a numeric unpostable codes (e.g., 198 or 175).

CU: A corrected unpostable. The transaction should post in the cycle displayed on IDRS

DU: A deleted unpostable. This transaction will not post and has been deleted from the module.

NU: A nullified unpostable to be resolved by the Rejects Function or by the originating tax examiner.

If the account is not on your local database, research controls or actions being taken on the remote database.

Use CC UPTIN on cases open on the Unpostable File to provide useful information to the Unpostables Function. Only the Unpostables Function can correct and close a case on the Unpostable File.

The originating tax examiner may need to resolve closed cases.

Use the unpostable code to decide what caused the unpostable.

If Unpostables has closed the case, an Unpostable Resolution Code (URC) will describe the resolution (See Document 6209, Section 8b and IRM 3.12.279, BMF/CAWR/PMF Unpostable Resolution). Use this information to decide how the transaction will affect the notice and the notice module. Correct the notice (See IRM 3.14.2.7.10, Notice Disposition and IRM 3.14.2.6.14, Adjustment Notices) and resolve the case. No further action is required on the unpostable.

If the case is still open, check the transaction information to decide the cause of the unpostable. Overlay the CC UPDIS response screen with CC UPCASZ and input any history item information that will be useful in resolving the unpostable case.

If the case is still open ,check the transaction information to determine the cause of the unpostable and how it will effect the notice module and add the appropriate disposition to the notice.

If the transaction can be posted as it is, leave a history item indicating that Unpostables should post the transaction without a change. The transaction may have been unpostable when it first reached the Master File.

When a Notice Review tax examiner receives notification of an unpostable, the transaction has usually been deleted on IDRS. Use the Unpostable Code information to correct the transaction. Refer to the Unpostable Decision Table below.

Unpostables will open a control base for the originating tax examiner and include the transaction on the Nullified Distribution Listing.

If the

Then

Error condition can be corrected

Re-input the transaction with the corrected information.

Error condition cannot be corrected

Close the base. Input any necessary history items, TC 570s or CC STAUPs. Delete any incorrect refunds.

Adjustment or credit transfer was already input by someone else

Do not enter a duplicate transaction. Close the control base assigned to you.

Refer to the chart below for Common Unpostable Codes and Resolutions.

UNPOSTABLE CODE

ERROR CONDITION

RESOLUTION

UPC 305

A credit transfer input without a Bypass Indicator or a TC 570, attempts to post to a settled module.

When transferring a payment to a settled module, use CC UPTIN to tell the Unpostable (UP) Unit to allow the credit to post.

If the module balance changes to a credit balance and the credit is not to be released, input a TC 570 using REQ77, FRM77.

UPC 313

Incorrect TC was used to reverse original TC in module. (no matching TC found)

Determine what the correct TC should have been. Use CC UPTIN to alert the Unpostables unit to post with the correct TC. ( Input correct TC in remarks)

UPC 316

Transaction date of credit transfer does not match date of the related TC.

Use UPTIN to tell UP unit to post with the correct date. (Input correct date in remarks)

UPC 316

Money amount not matching

Input credit transfer with correct amount.

UPC 316

Doc Code 24 credit transfer input for EFT payment without inputting the EFT indicator

Re-input credit transfer using ADD/ADC24 with EFTPS indicator 1 or using ADD/ADC34. (EFTPS indicator is not required)

UPC 325

TC 820 or 830 amount exceeds the credit balance in the module

Re-input the transaction by either waiting until the credit will be available or reducing the amount of the TC 820/830.

UPC 328

A tax adjustment without Priority Code 8, is within $10.00 of a previous tax adjustment

Decide if the adjustment is not a duplication. Re-input the adjustment with Priority Code 8.

See IRM 3.12.279, BMF/CAWR/PMF Unpostable Resolution, for further information concerning resolving any of the UPCs listed above.

UPTIN can only be used if the case is open on the UPTIN file.

The Unpostables Unit cannot correct money amounts.

Avoiding unpostables requires that the proper Priority Codes, Hold Codes, Bypass Indicators, Freeze Codes (or TC 570), and Posting Delay Codes be input with adjustment actions. When inputting a credit transfer, follow instructions in IRM 3.14.2.7.7, Credit Transfers. Use of the IAT tool is mandated to prevent date and transaction code unpostable transactions. The following are actions to take to prevent unpostables:

Decide the correct TC.

Use Doc Code 24 to transfer credits between Master Files when a secondary TC is needed, or when changing the date on a posted transaction.

The debit and credit parts post separately on ADC34 (3 cycle) and ADD34 (2 cycle).

The debit and credit parts post together on ADC24 and ADD24.

Review each account carefully before entering an adjustment or credit transfer.

Use of the Integrated Automation Technologies (IAT) Credit Transfer tool is mandated when inputting credit transfers. The IAT tool was designed to help reduce unpostable transactions and to prevent erroneous transactions from posting.

Consider the effects of pending transactions, previous actions, freeze codes, module balances, and posted manual penalty and interest adjustments. Also consider the effects of the transaction being input.

Contact any tax examiner with an open control base (A status only) to coordinate actions on modules and prevent erroneous and duplicate adjustments. See IRM 3.14.2.7.3, Controlling Cases, for more information.

To prevent Unpostable Tax Adjustments (Doc Code 54):

Be sure the adjustment is not a duplicate of a previous adjustment.

Consider previous tax adjustments before inputting another adjustment, especially those within $10.00 of a previous adjustment.

Look for manual adjustment of penalties and interest (TCs 160, 161, 170, 171, 340, 341 and 240 with PRN 722 or 723) that need correction or recognition when inputting an adjustment.

Use the correct MFT, tax period, and name control.

Input the correct Item Reference Numbers (IRN) and Credit Reference Numbers (CRN). See IRM 3.14.2.7.6.6, Credit Reference (CRN) and Item Reference Numbers (IRN), for more information. Consider posted amounts and limitations for each code being input. Do not reduce Reference Number 886 below zero.

To prevent Unpostable Credit Transfers (Doc Codes 24, 34, or 48):

Follow instructions in IRM 3.14.2.7.7, Credit Transfers.

Use the correct reversal transaction code for the posted transaction code.

Use TC 672 to reverse TC 670.

Use the correct MFT, name control, and tax period.

When transferring overpayments, make sure the credit to be transferred is available on the module. The TC 830/820 amounts cannot exceed the credit balance on the module.

When transferring payments from an account, make sure the dates on both sides of the credit transfer match. The money amounts must not exceed the amounts of the transactions being reversed.

TC 826 and TC 706 can have different transaction dates. Use the correct dates for the debit and credit transactions when reversing these transactions. See IRM 3.14.2.6.1.5.2 Lump Sum Credit Offset (TC 826/706 and TC 820/700) procedures.

Use a Bypass Indicator 1 to allow the credit to refund, or use a TC 570 or Credit Freeze Code 1 to freeze the credit when transferring TCs 650, 660, or 670 to a full paid tax module (status 10 or 12) and the posting of the credit will create an overpayment of $1.00 or more.

Use a Bypass Indicator 1 to allow the credit to refund, or use a TC 570 or Credit Freeze Code 1 to freeze the credit when transferring TCs 650 or 670 to a balance due tax module when the payment is dated later than the period ending and the posting of the credit will create a credit balance of $10.00 or more.

Use a Credit Freeze Code 1 or input a TC 570 on the credit side of the transfer if the credit will be held. This will generate a -R Freeze.

Two TC 570s will not post simultaneously on a module, you should use only one TC 570 for multiple credit transfers.

An EFT indicator is required on a 24 Doc Code for EFT deposits.

Use a Posting Delay Code to delay the posting of a transaction so that it matches the posting cycle of another transaction. Enter 1 through 6 to delay the posting of a transaction for one to six cycles, respectively.

Use a Posting Delay Code to delay the posting of a Doc Code 48 debit transaction until a Doc Code 34 credit transaction posts.

Command Codes are used to perform taxpayer account research to aid in case resolution and to initiate changes to taxpayer accounts on IDRS (Integrated Data Retrieval System).

BMF Notice Review employees should use the Integrated Automation Technologies (IAT) tools. The IAT tools simplify taxpayer account processing by assisting the user with IDRS research and input. They are desktop productivity enhancing tools.

If an IAT tool is not available, or an employee has a problem with the IAT TASK Manager (ITM), the account action should be processed manually on IDRS. If you have any questions or concerns contact your lead for help. For additional information regarding IAT functionality, reference the Job Aids on the Integrated Automation Technologies - IAT website.

IAT is mandated to complete all credit transfers. If the tool is unavailable hold the case in inventory (mark the notice in OLNR with "H" ) until the IAT Credit Transfer tool is available. Be sure to hold refunds as applicable and leave an open control base in IDRS. See IRM 3.14.2.7.1, Refund Intercepts using Command Code (CC) NOREF, for more information.

Below are the most commonly used IDRS Command Codes in Notice Review with a brief description of its use. For more information on the command codes listed below refer to the IDRS Command Code Job Aid (or see IRM 2.3.10, Command Codes MFREQ and RECON, through IRM 2.4.61, Command Code IDT48/IDT58/RPM48/RPM58/CSO48/CSO58/ELP45, for specific command code input information):

See Command Codes ACTON - BMFOL in the table below.

Command Code:

Used to:

ACTON

Open or close control base and input history items.

ADD/ADC24

Transfer one payment at a time or reverse one offset at a time.

ADD/ADC34

Transfer one to four payments at one time. The credit side of the transaction will post one cycle after the debit side.

ADD/ADC48

Input credit elect transactions

ADJ54 (response screen for REQ54)

Input adjustments including TC 290 .00 freeze releases.

AMDIS

Review a display of any action or potential action initiated by the Examination Function.

The definer A (AMDIS A) limits access to a particular module.

BMFOL

Research of nationwide entity and tax data information posted to the Business Master File (BMF)

BMFOL is a very important research tool for Notice Review tax examiners. The below table defines the BMFOL definers used for research.

Definer

Display File Source

MFT and Tax Period

Result

A

Y

Y

Adjustment transactions including trans code, posted date, among, cycle, DLN, codes and other dates

B

Y

Y

CFOL038 Screen message or error screen.

C

N

N

Tax Module screen associated with input check symbol/check number, CFOL041, or CFOL042

D

Y

N

Deposit Schedules for Forms 941, CT-1, 943, and 945.

E

Y

N

Entity information including cross-ref TIN, freeze codes, indicators, codes, and posted transactions

F

Y

N

FTD coupon ordering information

H

N

N

Help screen

I

Y

N

On/off-line status of entity and tax modules, merge information, sign of module balance, posted return indicator, and IDRS service centers

K

Y

Y

Form 941 Lookback information

L

Y

N

Last tax module satisfied

N

Y

N

Index of Retention Register Tax Modules that do not have an associated Vestigial Entry

O

Y

N

Exempt organization information

P

Y

N

Payment Summary

R

Y

Y

Return DLN, cycle posted, transaction date, some schedules, codes, exemptions, amounts

S

Y

Y

Status histories

T

Y

Y

Control DLN, exemption total, settlement information, amounts, freezes, indicators

U

Y

Y

CAWR information

V

Y

N

Vestigial data (retention register)

W

Y

Y

Quarterly Form 941 information.

Z

Y

N

Audit history information