Processing Rejects

General Information - Rejects are documents related to US Residency Certification that cannot go through the normal certification process. These are either:

Forms 8802 for which the user fee ($105 for individuals, $230 for non-individuals) has not been paid.

Supporting documentation (such as Foreign Claim Forms, Forms 8821 and 2848, Penalty of Perjury (POP) statements, etc.) for which no application can be found.

Most Form 8802 rejects are discovered during Validation, see IRM 21.8.4.2.2.3, Validating Form 8802 Payments. Most documentation rejects are discovered during the receipt of incoming mail, see IRM 21.8.4.3.2, Processing Incoming Documents, or Screening, see IRM 21.8.4.3.2.3, Quick Closure Screening. When a reject has been identified, it is put into the Rejects bucket for later processing.

Batching and Processing.

Pull all reject work from the Rejects bucket.

For applications rejected for non-payment, research payment information again on Pay.gov, see IRM 21.8.4.2.2.2, Electronic Payments Background. If valid payment is found, Validate, see IRM 21.8.4.2.2.3, Validating Form 8802 Payments, the application as a normal receipt.

For document applications, try to find a recent case for that taxpayer in the USRC 6166 Database. If a recent case is found, treat the document as Screening/Correspondence.

If you find no further information while researching payment/screening, the case is a true reject.

Batch the rejects as normal for Batching and give it a batch number, see IRM 21.8.4.3.3, Batching Overview.a) Be sure to follow all the normal batching rules when batching rejects:• Up to 25 records or applications.• Batch "B" applications only with other B applications, I applications only with other I applications, and document rejects only with other document rejects.• Batch only received dates within the same work week together.• Write the earliest IRS Received Date in the batch on the batch sheet.b) All reject batches have an X as the Clerical Prefix in the Batch Number (for example, B2X, I1X, etc.).c) Batch all document rejects (those that do not have an attached Form 8802 such as foreign forms by themselves) as I.d) In the case of 8802 rejects, the number of records for the batch is the same as the number of 8802 applications in the batch.e) In the case of document rejects, the number of records for the batch is the same as the number of individual taxpayers listed on the documents.