Section 4. IDTVA Paper Process

(1) This manual transmits revised guidance for IRM 25.23.4, IDTVA Paper Process, and provides procedures for the treatment and resolution of Individual Master File (IMF) tax-related identity theft (IDT) cases.

(1) IRM 25.23.4.1.3(1) Revised Taxpayer Services Commissioner to Taxpayer Services Chief.

(2) IRM 25.23.4.2(1) Updated the Note to include Federal Trade Commission (FTC) Identity Theft Report. IPU 25U3661 issued 11-04-2025

(3) IRM 25.23.4.2(9) Revised to include unpostables for weekly inventory management requirements when monitoring the AAL. IPU 25U3661 issued 11-04-2025

(4) IRM 25.23.4.3(7) Added a link to Exhibit 25.23.4-12 for additional information on updating the CII Category Code, when necessary. IPU 26U0751 issued 08-06-2026

(5) IRM 25.23.4.3.1(1) Revised 1st Reminder to clarify when processing cases by the same employee. IPU 26U0638 issued 06-15-2026

(6) IRM 25.23.4.3.1(2) Updated to include Category Code IDT2 when opening a CII case control for additional impacted years and covered relationships. IPU 26U0712 issued 07-17-2026

(7) IRM 25.23.4.3.1(2) Added a note stating related cases will be worked, regardless of age, to ensure the identity theft issue is fully resolved without unnecessary delays. IPU 25U3715 issued 12-11-2025

(8) IRM 25.23.4.3.1(9) Revised guidance for cases with the same tax year (even when a new tax year is listed) will be reassigned to the employee who worked the previous case.

(9) IRM 25.23.4.3.1.1(4) Added a Note for determining the appropriate time frame and follow-up actions for specific account conditions. Added a Table Scenario to include guidance on the use of an IDRS control base to monitor an unprocessed document sent to Submission Processing (SP). IPU 26U0379 issued 04-01-2026

(10) IRM 25.23.4.3.4(1) Updated listing to include Federal Trade Commission (FTC) Identity Theft Report. IPU 25U3661 issued 11-04-2025

(11) IRM 25.23.4.4(3) Removed guidance for processing mixed entity and scrambled SSN cases. All subsequent paragraphs were renumbered. IPU 26U0379 issued 04-01-2026

(12) IRM 25.23.4.4(5) Revised Table Scenario (2) to include guidance on reversing an existing TC 971 AC 522. IPU 26U0638 issued 06-15-2026

(13) IRM 25.23.4.4(5) Revised the second bullet item to clarify the use of CC ACTON to close an IDRS control base as "MISC" . IPU 25U3661 issued 11-04-2025

(14) IRM 25.23.4.4(6) Revised the guidance for taxpayer inquiries involving return prepare misconduct (RPM) issues for clarification. IPU 26U0379 issued 04-01-2026

(15) IRM 25.23.4.4(7) Removed the Caution and moved it to the new paragraph (8). Subsequent paragraphs were renumbered. IPU 26U0379 issued 04-01-2026

(16) IRM 25.23.4.4(7) Added a paragraph providing direction for frivolous claims of identity theft. All subsequent paragraphs were renumbered. IPU 25U3661 issued 11-04-2025

(17) IRM 25.23.4.4(11) Added a paragraph providing direction for rescinded identity theft claims. IPU 26U0638 issued 06-15-2026

(18) IRM 25.23.4.4.1 New section - Taxpayer Requests to Rescind Identity Theft (IDT) Claim. IPU 26U0638 issued 06-15-2026

(19) IRM 25.23.4.4.1(6) Added a Note in the first bullet item for IDT indicator reversals of a tax year that is more than 7 years old. Added a Reminder to not include quotation marks when using special paragraphs provided.

(20) IRM 25.23.4.4.1(6) Revised guidance for clarification on providing IP PIN information when issuing closing Letter 4402C. IPU 26U0712 issued 07-17-2026

(21) IRM 25.23.4.5(1) Expanded on information to provide details for systemic processes and IDT identified by an employee through research. IPU 25U3661 issued 11-04-2025

(22) IRM 25.23.4.5(2) Revised to remove information that is repetitive of details included in the IRM reference employees are directed to for research. Subsequent paragraphs were renumbered. IPU 25U3661 issued 11-04-2025

(23) IRM 25.23.4.5(3) Added an Exception for credit transcript IDT6 cases on CII will not be updated to Category Code IDT3.

(24) IRM 25.23.4.5(4) Exception was revised for clarification and to provide a link for additional related details. IPU 25U3661 issued 11-04-2025

(25) IRM 25.23.4.5(4) Revised to include a reference for CN ownership and case processing determinations. IPU 25U3661 issued 11-04-2025

(26) IRM 25.23.4.5(6) Deleted to remove information that is repetitive of details included in the IRM reference employees are directed to for determinations. IPU 25U3661 issued 11-04-2025

(27) IRM 25.23.4.6(1) Expanded to describe information available in CII and AMS. IPU 25U3661 issued 11-04-2025

(28) IRM 25.23.4.6(4) Revised 2nd Note to clarify when not to reassign transcripts to an IDTVA Specialty Functions. Added another Note for cases that should not be reassigned to IDTVA Specialty Functions. IPU 26U0379 issued 04-01-2026

(29) IRM 25.23.4.6(5) Updated time frame from 611 days to 580 days. IPU 26U0751 issued 08-06-2026

(30) IRM 25.23.4.6(5) Updated time frame from 623 days to 611 days. IPU 26U0473 issued 04-24-2026

(31) IRM 25.23.4.6(5) Updated time frame from 582 days to 623 days. IPU 26U0072 issued 01-15-2026

(32) IRM 25.23.4.6.1(1) Revised 3rd bullet to clarify CP 36I cases will show a TC 971 AC 804 on CC TXMODA. IPU 25U3767 issued 12-19-2025

(33) IRM 25.23.4.6.1(6) Revised Table Scenario (2) to clarify guidance when the suspense timeframe has expired, and the taxpayer did not provide new information. IPU 26U0379 issued 04-01-2026

(34) IRM 25.23.4.6.1(11) Revised verbiage to match the guidance given by EPSS for consistency with IRM 25.23.2.3.10. IPU 26U0379 issued 04-01-2026

(35) IRM 25.23.4.6.1(11) Revised Note in 2nd bullet to clarify procedures for reversing a TC 971 AC 522 placed by EPSS. IPU 26U0072 issued 01-15-2026

(36) IRM 25.23.4.6.1.1(5) Revised Table Scenario (3) to clarify guidance for research of prisoner cases (incarcerated taxpayers). IPU 26U0638 issued 06-15-2026

(37) IRM 25.23.4.6.1(15) Revised 9th bullet to list additional information on the use of CC TRDBV for research. IPU 26U0712 issued 07-17-2026

(38) IRM 25.23.4.6.2(1) Revised Table Scenario (1), (4), (5), and (6) to clarify the details of the definition of each applicable transcript type. IPU 25U3767 issued 12-19-2025

(39) IRM 25.23.4.6.2(1) Revised Table Scenario (1) to include Form Processing Code (FPC) 8 in the transcript description. IPU 25U3715 issued 12-11-2025

(40) IRM 25.23.4.6.2(1) Revised to clarify category codes and add a table providing details for various transcripts in identity theft inventories. IPU 25U3661 issued 11-04-2025

(41) IRM 25.23.4.6.2(6) Add a new Table Scenario (13) for performing research and processing of Form 2848 or Form 8821. Subsequent table scenarios were renumbered.

(42) RM 25.23.4.6.2(6) Revised Table Scenario (1) to clarify guidance for updating the entity. IPU 26U0722 issued 07-23-2026

(43) IRM 25.23.4.6.2(6) Revised Table Scenario (22) to clarify guidance for research of prisoner cases (incarcerated taxpayers). IPU 26U0638 issued 06-15-2026

(44) IRM 25.23.4.6.2(6) Added new Table Scenario (7) to include information for Durable POA. Subsequent table scenarios were renumbered. IPU 26U0379 issued 04-01-2026

(45) IRM 25.23.4.6.2(6) Revised Table Scenario (16) to clarify that U.S. Territories and Possessions are treated as a foreign address (international case). IPU 25U3661 issued 11-04-2025

(46) IRM 25.23.4.6.2(7) Revised to clarify assignment of an IRSN is required when streamline criteria is not met. IPU 25U3661 issued 11-04-2025

(47) IRM 25.23.4.6.2(8) Updated CII case note determination information for streamline cases. IPU 25U3661 issued 11-04-2025

(48) IRM 25.23.4.6.2.1.1 New section - Statute Clearing Identity Theft (IDT) Cases. IPU 26U0379 issued 04-01-2026

(49) IRM 25.23.4.6.2.1.1(3) Added a Note to include information for paper filed tax returns that may be scanned in EUP/MeF.

(50) IRM 25.23.4.6.2.2(10) Added a new paragraph to include the IRM link for information on CN ownership/IDT determinations. IPU 26U0379 issued 04-01-2026

(51) IRM 25.23.4.6.3(1) Added new Table Scenario (9), (10), and (11) to include guidance on Trump Accounts. IPU 26U0638 issued 06-15-2026

(52) IRM 25.23.4.6.3(1) Revised Table Scenario (3) to include information on the expiration period for cases routed to Examination for DIF score. IPU 25U3661 issued 11-04-2025

(53) IRM 25.23.4.6.5.1(1) Added a Note to include information for paper filed tax returns that may be scanned in EUP/MeF.

(54) IRM 25.23.4.6.5.2(9) Revised 2nd bullet to clarify current guidance on determining when a CII case needs to remain open. IPU 26U0379 issued 04-01-2026

(55) IRM 25.23.4.6.5.2(11) Revised 2nd bullet for required edits prior to sending an unprocessed return to SP. IPU 26U0638 issued 06-15-2026

(56) IRM 25.23.4.6.5.2(13) Revised Table Scenario (2) to clarify the ASED expiring within 90 days or less. IPU 25U3661 issued 11-04-2025

(57) IRM 25.23.4.6.5.2.1(8) Revised 1st bullet for required edits prior to sending an unprocessed return to SP. IPU 26U0638 issued 06-15-2026

(58) IRM 25.23.4.6.5.2.2 Title changed to Unprocessed Returns - 45 Day Monitor Time Frame Expired. IPU 26U0379 issued 04-01-2026

(59) IRM 25.23.4.6.5.2.2(1) Revised the time frame from 40 days to 45 days throughout this IRM. Revised Table Scenario (3) for clarification. IPU 26U0379 issued 04-01-2026

(60) IRM 25.23.4.6.7 Title changed to Identity Theft (IDT) Fraud Procedures. IPU 26U0379 issued 04-01-2026

(61) IRM 25.23.4.6.7(1) Revised for clarification when processing IDT case types with fraudulent claims. IPU 25U3715 issued 12-11-2025

(62) IRM 25.23.4.7(1) Updated to include guidance for documenting in a CII Case Note when an IRSN is used. IPU 26U0379 issued 04-01-2026

(63) IRM 25.23.4.8(3) Note: Revised to remove the requirement for the lead or designated individual to document concurrence of the determination made on the TIN-Related Problem Research Sheet. IPU 25U3661 issued 11-04-2025

(64) IRM 25.23.4.8(8) Added a new paragraph (8) to clarify cases that involve a questionable return. Subsequent paragraphs were renumbered. IPU 26U0379 issued 04-01-2026

(65) IRM 25.23.4.8(9) Revised Table Scenario (1) procedures for resolving a case as an IDT4 for consistency with IRM 25.23.3.2.3. IPU 26U0638 issued 06-15-2026

(66) IRM 25.23.4.8(9) Revised the Note to clarify the referral process for Complex Cases. IPU 25U3661 issued 11-04-2025

(67) IRM 25.23.4.8.1.1(2) Added an Exception for cases with a Priority Code (PC) 6 from a known fraud scheme identified by Research, Applied Analytics & Statistics (RAAS). IPU 25U3661 issued 11-04-2025

(68) IRM 25.23.4.8.1.1(4) Added a Reminder for scheme #7 identified by Research, Applied Analytics & Statistics (RAAS). IPU 25U3661 issued 11-04-2025

(69) IRM 25.23.4.8.1.3.1(13) Revised the CII suspense time frame from 40 to 45 days. IPU 26U0379 issued 04-01-2026

(70) IRM 25.23.4.8.2.1(5) Revised the 1st bullet to clarify when sending an e4442 to RIVO. IPU 26U0473 issued 04-24-2026

(71) IRM 25.23.4.8.2.3(2) Added a Caution for following non-streamline procedures when income is verifiable. IPU 25U3661 issued 11-04-2025

(72) IRM 25.23.4.8.2.4(6) Revised guidance to update the CII Category Code to IDT4. Updated paragraph selections when issuing Letter 4674C and included suggested wording for the special paragraph. IPU 26U0712 issued 07-17-2026

(73) IRM 25.23.4.8.2.4(6) Revised the language for delays in the systemic issuance of CP01A for clarification. Added the link to Exhibit 25.23.4-25 for closing letter paragraph selections. Removed the special paragraphs in the Caution. IPU 25U3767 issued 12-19-2025

(74) IRM 25.23.4.8.2.5(1) Revised to clarify the acronym of (PII) as loss of personally identifying information. IPU 26U0379 issued 04-01-2026

(75) IRM 25.23.4.8.2.5(4) Revised Table Scenario (5) to clarify NOIDT determinations, the taxpayer's issue will be resolved as non-tax-related. IPU 26U0379 issued 04-01-2026

(76) IRM 25.23.4.8.2.5(5) Added a Note for use of special paragraphs for IP PIN issues. IPU 25U3661 issued 11-04-2025

(77) IRM 25.23.4.8.3.1(1) Added a Note in Table Scenario (4) for guidance for cases when Form 14039, police report, or correspondence is received and the same address is included on the questionable return(s), IPU 26U0379 issued 04-01-2026

(78) IRM 25.23.4.8.3.1(2) Added a Note in Table Scenario (3) and (6) for guidance for cases when Form 14039, police report, or correspondence is received and the same address is included on the questionable return(s), IPU 26U0379 issued 04-01-2026

(79) IRM 25.23.4.8.4(2) Removed Category Code IDS2. Dependent related identity theft cases in Spanish will be included in Category Code IDT2. IPU 26U0722 issued 07-23-2026

(80) IRM 25.23.4.8.4(2) Added a new paragraph to advise of Category Code to IDT2/IDS2 for dependent related identity theft cases. All subsequent paragraphs were renumbered. IPU 26U0712 issued 07-17-2026

(81) IRM 25.23.4.8.4(3) Revised Table Scenario (1) and (2) to clarify when corresponding with an unauthorized third party individual. IPU 26U0473 issued 04-24-2026

(82) IRM 25.23.4.8.4(3) Added a Note to clarify third party contacts. Revised Table Scenario (1) for IDT claims received on behalf of a dependent under age 18. Added a new Table Scenario (2) for IDT claims received on behalf of a dependent age 18 or older. Added a new Table Scenario (3) for scenarios where the dependent is claiming IDT for themselves is under age 16, but not currently age 18 or older. Subsequent Table Scenario was renumbered. IPU 26U0379 issued 04-01-2026

(83) IRM 25.23.4.8.4(3) Added new Table Scenario (3) for scenarios where the dependent self-reported the IDT and the parent/legal guardian also reported the IDT. IPU 25U3715 issued 12-11-2025

(84) IRM 25.23.4.8.4(3) Table Scenario (1) was revised to add a caution for instances where parent information is not available on CC DDBKD. IPU 25U3715 issued 12-11-2025

(85) IRM 25.23.4.8.4(3) Added an Exception and Example for the 2nd table scenario for consider claims of dependent IDT filed by individual themselves. IPU 25U3661 issued 11-04-2025

(86) IRM 25.23.4.8.4(6) Added a reference to the example in paragraph (5) above. IPU 25U3661 issued 11-04-2025

(87) IRM 25.23.4.8.4(10)(b) Revised to clarify when to update the "Continuation of Primary Name" field on the entity. IPU 26U0712 issued 07-17-2026

(88) IRM 25.23.4.8.4(11) Updated the requirements for inputting a TC 971 AC 528. IPU 26U0638 issued 06-15-2026

(89) IRM 25.23.4.8.4(12) Revised guidance for issuing correspondence to the reporting victim for clarification. IPU 26U0379 issued 04-01-2026

(90) IRM 25.23.4.8.4(12) Added an Exception for item listing (b) for corresponding with a person who is not an authorized third party. IPU 25U3661 issued 11-04-2025

(91) IRM 25.23.4.8.4(13) Revised to clarify when corresponding with an unauthorized third party individual. IPU 26U0473 issued 04-24-2026

(92) IRM 25.23.4.8.4(13) Added a new paragraph to provide guidance when corresponding with a reporting person determined to be an unauthorized third party. IPU 26U0379 issued 04-01-2026

(93) IRM 25.23.4.8.4.1(1) Added an Exception for following streamline determination procedures on dependent IDT case types. IPU 25U3661 issued 11-04-2025

(94) IRM 25.23.4.8.4.1(4) Added a Reminder in Table Scenario (7) for considering claims from individuals under the age of 16. IPU 25U3661 issued 11-04-2025

(95) IRM 25.23.4.8.4.2(2) Added a Caution to advise the "Continuation of Primary Name" field on the entity is not confirmation of legal guardianship. IPU 26U0712 issued 07-17-2026

(96) IRM 25.23.4.8.4.2(2) Revised Table Scenario (2) for clarification of incomplete court documentation for dependent IDT case types. IPU 26U0072 issued 01-15-2026

(97) IRM 25.23.4.8.4.2(2) Added a paragraph providing direction to review all documentation included with the claim and consider all information available through research of internal systems. Subsequent paragraphs were renumbered. IPU 25U3661 issued 11-04-2025

(98) IRM 25.23.4.8.4.2(3) Revised Table Scenario (2) for clarification. IPU 26U0638 issued 06-15-2026

(99) IRM 25.23.4.8.4.2(3) Revised Table Scenario (1) 1st bullet to clarify requesting proof of relationship/legal guardianship. IPU 26U0379 issued 04-01-2026

(100) IRM 25.23.4.8.4.2(3) Clarified for consistency with other revisions in IRM 25.23.4.8.4(3) and IRM 25.23.4.8.4.2(2). IPU 25U3661 issued 11-04-2025

(101) IRM 25.23.4.8.4.2(4) Added Caution with guidance when the documentation provided by the reporting person appears to be acceptable. Revised the "Unacceptable Documentation" table listing. IPU 26U0379 issued 04-01-2026

(102) IRM 25.23.4.8.4.2(4) Added a Caution in the Table for requesting current documentation from a foster care agency when the placement documentation is 2 years or older from the current date. IPU 25U3661 issued 11-04-2025

(103) IRM 25.23.4.8.4.2(5) Table Scenario (3) was revised to remove the word separate to allow for matching addresses confirmed through independent account research to be used. IPU 25U3715 issued 12-11-2025

(104) IRM 25.23.4.8.4.2(7) Revised Table Scenario (1) second bullet listing to include additional information for researching AMS and CII. IPU 26U0638 issued 06-15-2026

(105) IRM 25.23.4.8.4.2(7) Revised Table Scenario (4) to include CC TRDBV research path. IPU 25U3661 issued 11-04-2025

(106) IRM 25.23.4.8.4.3(1) Revised Table Scenario (1), (3), and (7) to mention the correct paragraph(s) to use when issuing a closing letter. IPU 26U0712 issued 07-17-2026

(107) IRM 25.23.4.8.4.3(1) Revised Table Scenario (1) to include guidance on marking the account a TC 971 AC 504 for clarification. IPU 26U0379 issued 04-01-2026

(108) IRM 25.23.4.8.6.1(5) Revised Table Scenario (3) to clarify cases worked as non-tax-related IDT. IPU 26U0379 issued 04-01-2026

(109) IRM 25.23.4.8.6.2(3) Added a note to address instances where multiple sources provide conflicting information regarding incarceration dates. IPU 25U3715 issued 12-11-2025

(110) IRM 25.23.4.9.1(2) Added a Caution to clarify guidance when backing out the invalid return when 90 days or less remain for ASED expiration. IPU 26U0379 issued 04-01-2026

(111) IRM 25.23.4.9.1(2) Clarified Table Scenario (5) to specify the valid return was moved to MFT 32 in error. Added Table Scenario (6) for instances when the invalid return was moved to MFT 32 and the valid return is unprocessed. Added Table Scenario (7) for instances when there is no TC 150 present and the valid return created an E- Freeze or is unprocessed in the CII case images. Subsequent Table Scenario was renumbered. IPU 25U3715 issued 12-11-2025

(112) IRM 25.23.4.9.2.1(2) Clarified information to specify a TC 150 is present on the module. IPU 25U3715 issued 12-11-2025

(113) IRM 25.23.4.9.2.1(5) Added a new paragraph for instances where there is not a TC 150 posted to the module. Subsequent paragraphs were renumbered. IPU 25U3715 issued 12-11-2025

(114) IRM 25.23.4.10.1(2) Revised current procedures to clarify actions needed for unprocessed documents. IPU 25U3661 issued 11-04-2025

(115) IRM 25.23.4.10.1(6) Revised Table Scenario (18) to include guidance on documenting in a CII Case Note when an IRSN is used. IPU 26U0379 issued 04-01-2026

(116) IRM 25.23.4.10.1(6) Revised Table Scenario (3) to clarify the requirement for inputting a TC 971 AC 850. IPU 25U3715 issued 12-11-2025

(117) IRM 25.23.4.10.1(6) Revised Table Scenario (13) to include information on the expiration period for cases routed to Examination for DIF score. IPU 25U3661 issued 11-04-2025

(118) IRM 25.23.4.10.1(7) Revised Table Scenario (8) to clarify the use of posting delay codes when transferring credits. IPU 25U3661 issued 11-04-2025

(119) IRM 25.23.4.10.1(8) Added a Reminder in Table Scenario (1) and (2) for when lead/manager concurrence or approval may be required. Revised Table Scenario (3) for clarification when lead/manager concurrence or approval may be required. IPU 26U0072 issued 01-15-2026

(120) IRM 25.23.4.10.1(10) Revised Table Scenario (2) for the input TC 470 CC 90 procedures. IPU 25U3661 issued 11-04-2025

(121) IRM 25.23.4.10.2(2) Added a Reminder for modules with the presence of a TC 810 RESP 4 and a -E freeze. IPU 26U0379 issued 04-01-2026

(122) IRM 25.23.4.10.2(2) Removed the Reminder regarding the use of IDT8/IDS8 category code. IPU 25U3661 issued 11-04-2025

(123) IRM 25.23.4.10.5(2) Added a Reminder to consider each return in question and address separately. IPU 25U3661 issued 11-04-2025

(124) IRM 25.23.4.10.5.4(2) Revised the table "Case Type" listing when creating a new CII case Category Code "MXEN" . IPU 26U0638 issued 06-15-2026

(125) IRM 25.23.4.10.5.4(3) Removed guidance from paragraph (3) for consistency with updates to IRM 25.23.4.10.8. Revised guidance to link the new case and reassign the new case for clarification. Subsequent paragraph was renumbered. IPU 26U0379 issued 04-01-2026

(126) IRM 25.23.4.10.6(1) Revised Table Scenario (3), (5), and (6) to update the use of the appropriate Toll-free number when issuing Letter 4674C. IPU 26U0722 issued 07-23-2026

(127) IRM 25.23.4.10.6(1) Revised Table Scenario (5) to clarify use of the appropriate telephone number when issuing closing Letter 4674C. Revised Table Scenario (6) Added a new bullet to include guidance for issuing a closing letter. IPU 26U0379 issued 04-01-2026

(128) IRM 25.23.4.10.6(1) Added a Reminder for case assignment on cases with previous IDT resolution and the taxpayer is providing additional correspondence. IPU 25U3661 issued 11-04-2025

(129) IRM 25.23.4.10.7(2) Revised the Reminder throughout the IRM for the requirement of inputting an additional TC 971 AC 528. IPU 26U0638 issued 06-15-2026

(130) IRM 25.23.4.10.7 Added a Reminder throughout the IRM when it is necessary to input an additional TC 971 AC 528 for dependent related IDT case types. IPU 26U0473 issued 04-24-2026

(131) IRM 25.23.4.10.7(2) Revised Table Scenario (3) for a victim that is listed as a primary/secondary on an invalid return for clarification. IPU 26U0379 issued 04-01-2026

(132) IRM 25.23.4.10.8(1) Revised the first bullet item for clarification. IPU 26U0379 issued 04-01-2026

(133) IRM 25.23.4.10.8(1) Revised to include clarifying verbiage for certain account actions required for NOIDT determinations. Added two bullet lists for loss of personally identifying information (PII) and potential Return Preparer Misconduct (RPM) previously in paragraph (2). IPU 25U3661 issued 11-04-2025

(134) IRM 25.23.4.10.8(2) Revised Table Scenario (2) to combine guidance in Table Scenario (3) for entity updates for taxpayer and IRS identified case types. IPU 25U3715 issued 12-11-2025

(135) IRM 25.23.4.10.8(2) Added a Table with entity update scenarios and included information previously in paragraph (5) and (6). Moved to paragraph (1) information for loss of personally identifying information (PII) and potential Return Preparer Misconduct (RPM). IPU 25U3661 issued 11-04-2025

(136) IRM 25.23.4.10.8(3) Added a new Table Scenario (3) for guidance when the module does not have a TC 150. Subsequent table scenarios were renumbered. Revised Table Scenario (4) to add guidance to input a case note documenting the No IDT determination. IPU 26U0379 issued 04-01-2026

(137) IRM 25.23.4.10.8(3) Revised Table Scenario (1) and (2) to clarify current procedures. Added new scenarios and included information previously in paragraph (5) and (6). IPU 25U3661 issued 11-04-2025

(138) IRM 25.23.4.10.8(4) Revised Table Scenario (1) to clarify guidance on the reversal of a TC 971 AC 501/506. IPU 26U0379 issued 04-01-2026

(139) IRM 25.23.4.10.8(4) Table Scenario (1) was revised to update the literal to "UNWORK" . Table Scenario (2) was revised to update the literal to "IRSID" . IPU 25U3767 issued 12-19-2025

(140) IRM 25.23.4.10.8(4) Table Scenario (2) was revised to update the literal to "IRSID" . IPU 25U3715 issued 12-11-2025

(141) IRM 25.23.4.10.8(4) Added a Table to include scenarios for reversal of previous IDT indicators. Moved all information on issuing a closing letter for Taxpayer Identified cases to a new table in paragraph (5). IPU 25U3661 issued 11-04-2025

(142) IRM 25.23.4.10.8(5) Revised Table Scenario (1) for the appropriate paragraph selection when issuing a closing letter for a NO IDT determination. IPU 26U0712 issued 07-17-2026

(143) IRM 25.23.4.10.8(5) Revised Table Scenario (1) to include additional information on use of special paragraphs listed in Exhibit 25.23.4-25. IPU 26U0072 issued 01-15-2026

(144) IRM 25.23.4.10.8(5) Added a Table to include scenarios for issuing a closing letter to the taxpayer. Added information previously in paragraph (4) for Taxpayer Identified case in the table scenarios. IPU 25U3661 issued 11-04-2025

(145) IRM 25.23.4.10.9(1) Revised to clarify the requirement of requesting additional information and specific letter guidance in linked IRM 25.23.4.18.2. IPU 26U0638 issued 06-15-2026

(146) IRM 25.23.4.10.9(2) Added a new Table Scenario (4) to include guidance when a response was not received and there is not enough information to make an IDT determination. IPU 26U0379 issued 04-01-2026

(147) IRM 25.23.4.10.9(2) Added a new Table Scenario (3) to include guidance when a NOIDT determination when following No Reply procedures. IPU 25U3661 issued 11-04-2025

(148) IRM 25.23.4.10.11(6) Removed the Note to issue both letters when there was not sufficient space to address all issues based on previous guidance.

(149) IRM 25.23.4.10.11(6) Updated procedures for sending Letter 474C when explaining changes made to the taxpayer’s return. IPU 26U0712 issued 07-17-2026

(150) IRM 25.23.4.10.12(2) Added a Note to include an IRM reference for guidance on a case with the presence of any other TC 810 RESP code. IPU 25U3767 issued 12-19-2025

(151) IRM 25.23.4.11.1.1 Title changed to Identity Theft Allegations on Tax Year 2016 and Prior. IPU 25U3715 issued 12-11-2025

(152) IRM 25.23.4.11.1.1(8) Revised Note for clarification. IPU 26U0379 issued 04-01-2026

(153) IRM 25.23.4.11.4(1) Added a Reminder for documenting in a CII Case Note when an IRSN is used. IPU 26U0379 issued 04-01-2026

(154) IRM 25.23.4.12.1(1) Added a new paragraph to provide general information about cases in collection status and clarify IDTVA-AM employees will reassign the case after preventing collection activity. Subsequent paragraphs were renumbered. IPU 25U3661 issued 11-04-2025

(155) IRM 25.23.4.15(3) Revised Table Scenario (4) to include guidance payments on the module. IPU 26U0379 issued 04-01-2026

(156) IRM 25.23.4.17(2) Added a paragraph to clarify what years will be considered for potential non-filer issues. All subsequent paragraphs were renumbered. IPU 25U3661 issued 11-04-2025

(157) IRM 25.23.4.17(10) Revised guidance to clarify use of Form 2209 for clarification. IPU 26U0638 issued 06-15-2026

(158) IRM 25.23.4.18(5) The note was revised to clarify translations of open paragraphs can be in CII case notes or in a document attached to the CII case. IPU 25U3715 issued 12-11-2025

(159) IRM 25.23.4.18.1(1) Added a Caution for selecting appropriate paragraph(s) when an IDT letter has been updated. IPU 26U0712 issued 07-17-2026

(160) IRM 25.23.4.18.1(5) Updated time frame from 611 days to 580 days. IPU 26U0751 issued 08-06-2026

(161) IRM 25.23.4.18.1(5) Updated time frame from 623 days to 611 days. IPU 26U0473 issued 04-24-2026

(162) IRM 25.23.4.18.1(5) Updated time frame from 582 days to 623 days. IPU 26U0072 issued 01-15-2026

(163) IRM 25.23.4.18.1(6) - Revised to clarify an apology letter will be sent when a letter related to the identity theft issue was sent for an incorrect year or when a letter provided incorrect information. IPU 25U3661 issued 11-04-2025

(164) IRM 25.23.4.18.1(8) Added a new Note to include guidance when multiple correspondence is being answered for the same tax period. IPU 26U0638 issued 06-15-2026

(165) IRM 25.23.4.18.1(9) Updated time frame from 611 days to 580 days. Updated the Reminder and Example for consistency. IPU 26U0751 issued 08-06-2026

(166) IRM 25.23.4.18.1(9) Updated time frame from 623 days to 611 days. IPU 26U0473 issued 04-24-2026

(167) IRM 25.23.4.18.1(9) Updated time frame from 582 days to 623 days. Revised time frame in the Example for consistency. IPU 26U0072 issued 01-15-2026

(168) IRM 25.23.4.18.1(13) Revised the information in the bullet listing for clarification.

(169) IRM 25.23.4.18.1(13) Added a Caution for providing specific information regarding an IP PIN for a primary and secondary taxpayer impacted by IDT. IPU 26U0712 issued 07-17-2026

(170) IRM 25.23.4.18.1(13) Added a new paragraph to provide guidance prior to issuing a closing letter with specific information regarding IP PIN’s. All subsequent paragraphs were renumbered. IPU 26U0379 issued 04-01-2026

(171) IRM 25.23.4.18.1(14) Removed the Reminder to include as the opening statement in the paragraph for clarification.

(172) IRM 25.23.4.18.1(14) Revised the Caution for closing Letter 4674C paragraph selection for clarification. IPU 26U0751 issued 08-06-2026

(173) IRM 25.23.4.18.1(14) Revised the Caution for paragraph selection based on revised Letter 4674C. Revised the Reminder to include a link to Exhibit 25.23.4-25. IPU 26U0712 issued 07-17-2026

(174) IRM 25.23.4.18.1(14) Added a new paragraph to instruct taxpayers who request to be removed from the IP PIN program to unenroll through Online Services. All subsequent paragraphs were renumbered. IPU 25U3661 issued 11-04-2025

(175) IRM 25.23.4.18.1(15) Revised 2nd Note to clarify possible delays in the systemic issuance of CP01A. IPU 25U3767 issued 12-19-2025

(176) IRM 25.23.4.18.1(15) Revised 2nd Note to provide the current reference for selecting special paragraphs when sending a closing letter. IPU 25U3715 issued 12-11-2025

(177) IRM 25.23.4.18.1(18). Revised information to notify a taxpayer of a third party contact for clarification.

(178) IRM 25.23.4.18.1(18) Updated the correct paragraph to use when issuing Letter 4674C for consistency. IPU 26U0712 issued 07-17-2026

(179) IRM 25.23.4.18.1(18) Added a Reminder for paragraph selection when sending a closing letter to an unauthorized third party. IPU 25U3661 issued 11-04-2025

(180) IRM 25.23.4.18.1(20) Deleted the 2nd bullet item for Centralized Authorization File (CAF). IPU 26U0712 issued 07-17-2026

(181) IRM 25.23.4.18.1(20) Revised bullet listing to include additional information regarding selecting the correct paragraphs for cases created from transcripts or that are IRS initiated. IPU 26U0638 issued 06-15-2026

(182) IRM 25.23.4.18.1(21) Added a Reminder in Table Scenario (2) "Then" column for forwarding to CAF an unprocessed Form 2848 or Form 8821.

(183) IRM 25.23.4.18.1(21) Added a new paragraph to clarify letter procedures for a valid POA or third-party representative. Subsequent paragraphs were renumbered. IPU 26U0712 issued 07-17-2026

(184) IRM 25.23.4.18.1(22) Revised to clarify when it is appropriate to provide the applicable Compliance toll-free number after the IDT issue is resolved. IPU 25U3661 issued 11-04-2025

(185) IRM 25.23.4.18.1(24) Revised Table Scenario (1), (3), and (7) to include the appropriate IDTVA Toll-free number. IPU 26U0722 issued 07-23-2026

(186) IRM 25.23.4.18.1(24) Updated the Exception to give an example to clarify when an additional letter may be required based on information that cannot be included on Letter 4674C. IPU 26U0712 issued 07-17-2026

(187) IRM 25.23.4.18.1(23) Added a new Table Scenario (9) to list the appropriate telephone number to use when corresponding with an unauthorized third party. IPU 26U0638 issued 06-15-2026

(188) IRM 25.23.4.18.1(23) Revised Table Scenario (7) for consistency with Previous Action procedures in IRM 25.23.4.10.6. IPU 26U0473 issued 04-24-2026

(189) IRM 25.23.4.18.1(24) Added a new table to include scenarios for addressing correspondence on cases filed as married filing joint (MFJ). IPU 26U0379 issued 04-01-2026

(190) IRM 25.23.4.18.1(25) Revised the Caution to clarify possible delays in the systemic issuance of CP01A. IPU 25U3767 issued 12-19-2025

(191) IRM 25.23.4.18.1(25) Revised the Caution to provide the current reference for selecting special paragraphs when sending a closing letter. IPU 25U3715 issued 12-11-2025

(192) IRM 25.23.4.18.1(26) Revised the first table scenario to clarify letter procedures when the primary and secondary taxpayer is a victim of IDT. IPU 26U0712 issued 07-17-2026

(193) IRM 25.23.4.18.1(26) Revised the information for marking an account with TC 971 AC 506 for consistency with IRM 25.23.2.6.3. IPU 26U0638 issued 06-15-2026

(194) IRM 25.23.4.18.1(28) Deleted paragraph (28). Moved guidance for cases when Form 14039, police report, or correspondence is received and the same address is included on the questionable return(s) to non-streamline IDT determinations in IRM 25.23.4.8.3.1. IPU 26U0379 issued 04-01-2026

(195) IRM 25.23.4.18.2 Revised the term "taxpayer(s)" to "reporting person" throughout the IRM. IPU 26U0379 issued 04-01-2026

(196) IRM 25.23.4.18.2(8) Revised guidance for telephone contact for clarification. IPU 26U0379 issued 04-01-2026

(197) IRM 25.23.4.18.2(10) Revised the guidance for contacting a reporting person by mail for clarification. IPU 26U0379 issued 04-01-2026

(198) IRM 25.23.4.18.2(11) Revised the CII suspense time frame from 40 to 45 days. Added a Reminder for cases when Form 14039, police report, or correspondence is received and the same address is included on the questionable return(s). IPU 26U0379 issued 04-01-2026

(199) IRM 25.23.4.18.2(14) Added a Note to review CII for documents that may have been scanned under cross reference TIN. Added a new paragraph to include guidance when requesting documentation from a reporting person to verify the parent/legal guardianship relationship. All subsequent paragraphs were renumbered. IPU 26U0379 issued 04-01-2026

(200) IRM 25.23.4.18.2(15) through (17) Added a Reminder to review CII for documents that may have been scanned under cross reference TIN. IPU 26U0379 issued 04-01-2026

(201) IRM 25.23.4.18.5 Title changed to Taxpayer Calls on Identity Theft (IDT) Cases (IDT Paper Skilled Employees Only). IPU 26U0379 issued 04-01-2026

(202) IRM 25.23.4.18.5(3) Revised the Note to clarify when "INVEN2" should be used by an IDT skilled employee. IPU 26U0473 issued 04-24-2026

(203) IRM 25.23.4.18.5(4) Revised guidance to clarify when to consider the taxpayer’s statement and make an identity theft determination from a voice mail message. All subsequent paragraphs were renumbered.

(204) IRM 25.23.4.19(1) Revised the list of languages translated by Linguistics Policy, Tools and Services (LPTS). IPU 26U0638 issued 06-15-2026

(205) IRM 25.23.4.19(2) Revised information for required translation of a non-English language. IPU 26U0712 issued 07-17-2026

(206) IRM 25.23.4.20(23) Revised to include an IRM reference for erroneous refund procedures for RRC. IPU 26U0379 issued 04-01-2026

(207) IRM 25.23.4.20.2(5) and (8) Revised to include guidance on documenting the determination in a CII case note. IPU 26U0638 issued 06-15-2026

(208) IRM 25.23.4.20.5(9) Added a new table to include case scenarios for RRC. IPU 26U0379 issued 04-01-2026

(209) IRM 25.23.4.21.1(5) (10), and (11) Revised to include guidance on documenting the determination in a CII case note. IPU 26U0638 issued 06-15-2026

(210) IRM 25.23.4.21.2.1(13) Revised to include guidance on documenting the determination in a CII case note. IPU 26U0638 issued 06-15-2026

(211) IRM 25.23.4.21.3(7) Revised to include guidance on documenting the determination in a CII case note. IPU 26U0638 issued 06-15-2026

(212) Exhibit 25.23.4-4 (3) Revised Table Scenario (3) Exception for clarification. IPU 26U0638 issued 06-15-2026

(213) Exhibit 25.23.4-4 (3) Revised the Caution in Table Scenario (6) to clarify the process of referring cases to RIVO. IPU 26U0473 issued 04-24-2026

(214) Exhibit 25.23.4-4(3) Revised Table Scenario (6) to clarify the process of referring cases to RIVO. IPU 26U0379 issued 04-01-2026

(215) Exhibit 25.23.4-4(3) Table Scenario (6) guidance was revised for Refund Inquiry cases with RIVO involvement. IPU 25U3767 issued 12-19-2025

(216) Exhibit 25.23.4-4(4) Revised Table Scenario (5) to include a Note and an Example to clarify when it is appropriate to update and reassign a CII case control to IDTX. IPU 26U0072 issued 01-15-2026

(217) Exhibit 25.23.4-4 (4) Table Scenario (5) was updated to remove language specification and the holding number but left the link to the current list of holding numbers. IPU 25U3715 issued 12-11-2025

(218) Exhibit 25.23.4-5(1) Added a Reminder for the appropriate actions to take on a case with multiple controls. IPU 26U0072 issued 01-15-2026

(219) Exhibit 25.23.4-5(3) Revised 2nd Reminder to clarify when not reassign transcripts to an IDTVA Specialty Functions. IPU 26U0379 issued 04-01-2026

(220) Exhibit 25.23.4-5(6) Added a Note in Table Scenario (9) to clarify guidance for Exam Project Codes when referring to the FRP team.

(221) Exhibit 25.23.4-5(11) Revised 1st Reminder to clarify which cases can be reassigned to IDTVA Specialty. Revised Table Scenario (1) for reassignment to Appeals. Revised Table scenario (17) to include ACSS - Status 28/58. Revised Table Scenario (18) to remove TC 474 from the TC 971 AC 143 for open ASFR cases.

(222) Exhibit 25.23.4-5(11) Revised Table Scenario (10), (11), and (12) to set the Priority Code (PC) to N/A on CII. Added a Caution throughout the table regarding the use of the correct "Doc Type" on CII. IPU 26U0712 issued 07-17-2026

(223) Exhibit 25.23.4-5 (11) Revised 1st Note to clarify when it is determined another area must take ownership of a cases involving MFJ. IPU 26U0638 issued 06-15-2026

(224) Exhibit 25.23.4-5(11) Added a Reminder for cases that should not be reassigned to IDTVA Specialty Functions. Added a 2nd Reminder to advise IDTVA-A employees not to reassign certain transcripts to IDTVA Specialty Functions. IPU 26U0379 issued 04-01-2026

(225) Exhibit 25.23.4-5(11) Revised Table Scenario (8) to include additional disposal codes for cases with Exam involvement with AIMS status 90. Revised Table Scenario (17) for clarification to ensure cases are routed appropriately. IPU 25U3661 issued 11-04-2025

(226) Exhibit 25.23.4-5 (11) Revised Table Scenario (14) to include information originally in Table Scenario (15). Subsequent Table Scenarios were renumbered. Revised Table Scenario (17) to remove the criteria in the 5th bullet advising IDTVA-AM employees to resolve a case in Status 22/24. IPU 25U3715 issued 12-11-2025

(227) Exhibit 25.23.4-7(1) Revised tables for IDTVA-A and IDTVA-I to remove Category Code IDS2. Dependent related identity theft cases in Spanish will be included in Category Code IDT2. IPU 26U0722 issued 07-23-2026

(228) Exhibit 25.23.4-7(1) Revised tables for IDTVA-A and IDTVA-I to include Category Code IDT2. IPU 26U0712 issued 07-17-2026

(229) Exhibit 25.23.4-7 (1) Revised tables for IDTVA-A and IDTVA-1 to clarify procedures for multiple CII controls. IPU 25U3715 issued 12-11-2025

(230) Exhibit 25.23.4-8 (2) Revised the 1st bullet for inventory priorities of Congressional, Counsel, and Department of Justice (DOJ) cases established for IDTVA-A. IPU 26U0473 issued 04-24-2026

(231) Exhibit 25.23.4-8 (4) Revised the 1st bullet for inventory priorities of Congressional, Counsel, and Department of Justice (DOJ) cases established for IDTVA-Specialty Function. IPU 26U0473 issued 04-24-2026

(232) Exhibit 25.23.4-9(1) Revised the "Document Type" in the table for consistency with CII.

(233) Exhibit 25.23.4-9(1) Revised the Note to update the Doc Type on CII for IDT2 Spanish case types. IPU 26U0751 issued 08-06-2026

(234) Exhibit 25.23.4-9(1) Revised CII Category Code IDT2 to include Spanish. Added a Note for Spanish correspondence for dependent related identity theft cases are included in Category Code IDT2. Removed the 4th row for Category Code IDS2. IPU 26U0722 issued 07-23-2026

(235) Exhibit 25.23.4-9(1) Added a new CII Category Code IDT2 in the table for taxpayer self-identified claims reporting potential dependent related identity theft. IPU 26U0712 issued 07-17-2026

(236) Exhibit 25.23.4-9(1) Revised the "Defining Characteristic" for Category Code "IDS8" for clarification. IPU 26U0379 issued 04-01-2026

(237) Exhibit 25.23.4-10(1) Added a link for IRM 25.23.4.18.1 to consider letter requirements. Added a new bullet listing for considering when a closing letter must provide supplemental information for IP PIN issues. IPU 26U0712 issued 07-17-2026

(238) Exhibit 25.23.4-11(2) Revised Table Scenario (1) CII suspense time frame from 40 to 45 days. IPU 26U0379 issued 04-01-2026

(239) Exhibit 25.23.4-12(1) Added a Note to clarify which Doc Type to use for cases with Spanish correspondence.

(240) Exhibit 25.23.4-12(1) Revised the Function and Program for Category Code IDT2. IPU 26U0751 issued 08-06-2026

(241) Exhibit 25.23.4-12(1) Removed Category Code IDS2. Spanish correspondence for dependent related identity theft cases will be included in IDT2. IPU 26U0722 issued 07-23-2026

(242) Exhibit 25.23.4-12(1) Added a new CII Category Code IDT2 in the table for taxpayer self-identified claims reporting potential dependent related identity theft. IPU 26U0712 issued 07-17-2026

(243) Exhibit 25.23.4-15(3) Updated to include PC "T3" for the ITVA HQ AUR ADR Report. IPU 26U0379 issued 04-01-2026

(244) Exhibit 25.23.4-18(8) Revised information for reassignment to Appeals.

(245) Exhibit 25.23.4-21(2) Revised Table Scenario (2) to clarify guidance for updating the entity. IPU 26U0722 issued 07-23-2026

(246) Exhibit 25.23.4-21 (2) Revised Table Scenario (3) to clarify guidance when updating the entity for an incarcerated taxpayer. IPU 26U0638 issued 06-15-2026

(247) Exhibit 25.23.4-21(2) Revised Table Scenario (2) to clarify guidance for identifying the appropriate address for the taxpayer. IPU 26U0379 issued 04-01-2026

(248) Exhibit 25.23.4-21(3) Added an Exception in Table Scenario (2) for the input of a TC 971 AC 850. IPU 26U0379 issued 04-01-2026

(249) Exhibit 25.23.4-21(7) Revised Table Scenario (1) Added a Reminder for cases routed to Examination for DIF score. IPU 25U3661 issued 11-04-2025

(250) Exhibit 25.23.4-21(8) Revised Table Scenario (11) for reversal of an IDT indicator on rescinded identity theft (IDT) case types.

(251) Exhibit 25.23.4-21(8) Added a Note in Table Scenario (11) for reversal requests of an IDT indicator will apply to NOIDT determinations or No Reply procedures only. IPU 26U0379 issued 04-01-2026

(252) Exhibit 25.23.4-21(8) Table Scenario (11) Then guidance was updated to instruct employees to include the CII Case ID in the notes on the Form 4442. IPU 25U3661 issued 11-04-2025

(253) Exhibit 25.23.4-22 (2) Added an IRM link for establishing or updating the entity with an IRS Service Center address for "IRS Identified" in Table Scenario (6) and (7). IPU 26U0638 issued 06-15-2026

(254) Exhibit 25.23.4-22(2) Updated the first table to specify the claim is from a confirmed parent or authorized third party. Table Scenario (9) revised with previous scenario moved to the new table added for claims submitted by an unauthorized third party. The IRS Identified table was revised to add three scenarios for dependents age 18 or older. IPU 25U3661 issued 11-04-2025

(255) Exhibit 25.23.4-25(4) Revised the Caution for clarification. Revised" Example 2 No Identity Theft (NOIDT)" case scenario information for clarification. Revised "Example 4 IP PINs" 1st Note for clarification. Removed the 2nd Note and inserted the information in the new table for case scenario "Already Enrolled" , updated case scenario (1) and (2) to clarify when it is appropriate to select the applicable special paragraph(s), and added a new table for case scenario Already Enrolled.

(256) Exhibit 25.23.4-25(4) Revised the Caution for closing Letter 4674C paragraph selection for clarification. Example 2 - Removed the Note and placed the information within the paragraph for clarification. IPU 26U0751 issued 08-06-2026

(257) Exhibit 25.23.4-25(4) Revised the 2nd Table for Example 2 NOIDT special paragraphs for consistency with the revised closing Letter 4674C. IPU 26U0722 issued 07-23-2026

(258) Exhibit 25.23.4-25(4) Revised the Caution for paragraph selection based on revised Letter 4674C. Revise Example 1 for consistency with the revised closing Letter 4674C. Revised Example 2 to include special paragraphs for NOIDT cases. Revised Example 3 to include guidance on sending Letter 4402C for income related IDT case types. Revised Example 4 for consistency with the revised closing Letter 4674C. IPU 26U0712 issued 07-17-2026

(259) Exhibit 25.23.4-25(4) Example 3 Removed the 2nd Reminder stating to not include quotation marks when using a special paragraph. IPU 26U0638 issued 06-15-2026

(260) Exhibit 25.23.4-25(4) Example (4) revised the guidance for issuing a closing letter with specific information regarding IP PIN’s for consistency with IRM 25.23.4.18.1. Table Scenario (2) was moved as scenario (5). All subsequent table scenario(s) were renumbered. Example (4) second special paragraph for Case Scenario (5) revised for clarification. IPU 26U0379 issued 04-01-2026

(261) Exhibit 25.23.4-25(4) Example 1 Table Scenario (1) Revised the case scenario for clarification when issuing correspondence after cycle 46 and revised the 3rd special paragraph to remove the sentence for filing Form 8822 to avoid duplicate information already mentioned in Letter 4674C "How to Contact Us" section. Example 2 Table Scenario (2) revised for clarification. Example 4 Table Scenario (3) 2nd special paragraph revised to remove the sentence for filing Form 8822 to avoid duplicate information already mentioned in Letter 4674C "How to Contact Us" section. Example 4 Table Scenario (5) revised the special paragraphs to explain the purpose of an IP PIN for claims for dependents (under age 18). Example 4 Table Scenario (6) removed the 2nd special paragraph for filing Form 8822 to avoid duplicate information already mentioned Letter 4674C "How to Contact Us" section. IPU 25U3767 issued 12-19-2025

(262) Exhibit 25.23.4-25 (4) Example 2 Table Scenario (2) Added a new scenario for instances where the taxpayer is not a victim of IDT but their dependent’s personally identifiable information (PII) has been compromised. Revised Example 4 Table Scenario (2), special paragraphs for after cycle 46 case scenario. Added new case scenarios for taxpayers opted into the online IP PIN program and claims for dependents after cycle 46. All subsequent table scenario(s) were renumbered. IPU 25U3715 issued 12-11-2025

(263) Exhibit 25.23.4-25(4) Example (4) Table Scenarios (1)-(3) revised to explain the IP PIN will not be mailed in the future if the taxpayer accesses it online. Added a Reminder not to include the quotation marks when using special paragraphs listed for all examples. IPU 25U3661 issued 11-04-2025

(264) Exhibit 25.23.4-25(5) Revised guidance for issuing correspondence for clarification.

(265) Exhibit 25.23.4-25(5) Revised Table Scenario (2) for consistency based on revised closing Letter 4674C. IPU 26U0712 issued 07-17-2026

(266) Exhibit 25.23.4-25 (5) Added a new paragraph to include guidance when corresponding to the taxpayer regarding Form 4547, Trump Account Election(s). IPU 26U0638 issued 06-15-2026

(267) IRM 25.23.4, Various editorial changes, updated IRM cross references, and replacement of "Service" with "IRS" throughout the entire IRM.

(268) IRM 25.23.4, Various editorial changes and IRM cross references updated throughout the entire IRM. IPU 26U0751 issued 08-06-2026

(269) IRM 25.23.4, Various editorial changes and IRM cross references updated throughout the entire IRM. IPU 26U0722 issued 07-23-2026

(270) IRM 25.23.4, Various editorial changes and IRM cross references updated throughout the entire IRM. IPU 26U0712 issued 07-17-2026

LuCinda Comegys, Director Accounts Management Taxpayer Services

Purpose - This IRM section provides guidance for resolving identity theft (IDT) casework.

Audience - The provisions in this section apply primarily to employees assigned to the Identity Theft Victim Assistance (IDTVA) directorate, but may be used by all divisions, functional units, employees and contractors within the IRS working identity theft cases.

Policy Owner - The owner of the policies contained herein is the Director, Accounts Management.

Program Owner - The Director of Accounts Management is the program owner.

Primary Stakeholders - The primary stakeholders are organizations that Accounts Management collaborates with, such as Return Integrity and Compliance Services (RICS), Compliance and Submission Processing.

Program Goals - Program goals for this type of work are included in the Accounts Management Program Letter.

Employees in the Identity Theft Victim Assistance (IDTVA) organization process identity theft (IDT) claims and respond to IDT victims’ phone inquiries.

Refer to IRM 1.2.1.13, Policy Statements for Customer Account Services Activities, for information.

The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate, that helps taxpayers and protects taxpayer rights. TAS offers free help to taxpayers when a tax problem is causing a financial difficulty, when they’ve tried and been unable to resolve their issue with the IRS, or when they believe an IRS system, process, or procedure just isn't working as it should. TAS strives to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.

The Taxpayer Services Chief has overall responsibility for the policy related to this IRM which is published on a yearly basis.

Additional information is found in IRM 1.1.13.6.3, Accounts Management (AM), and IRM 21.1.1, Accounts Management and Compliance Services Overview.

Program Reports - For reports concerning quality, inventory, aged listing, refer to IRM 1.4.16, Accounts Management Guide for Managers. Aged listings can also be reviewed by accessing Control Data Analysis, Project PCD. They are located on the Control-D/Web Access server, which has a login program control.

Program Effectiveness - Program Effectiveness is determined by Accounts Management’s employees successfully using IRM guidelines to perform necessary account actions and duties effectively and efficiently.

Goals, measures and operating guidelines are provided in the yearly Program Letter. Quality data and guidelines for measurement is referenced in IRM 21.10.1, Embedded Quality (EQ) Program for Accounts Management, Campus Compliance, Field Assistance, Tax Exempt/Government Entities, Return Integrity and Compliance Services (RICS) and Electronic Products and Services Support.

Refer to the table below for a list of acronyms used throughout IRM 25.23.4.

This list may not be all inclusive.

Acronyms

Definitions

AC

Action Code

ACSS

Automated Collection System Support

AdvCTC

Advanced Child Tax Credit

AM

Accounts Management

AMS

Accounts Management System

APTC

Advance Premium Tax Credit

ARPA

American Rescue Plan Act

ASED

Assessment Statute Expiration Date

ASFR

Automated Substitute for Return

AUR

Automated Underreporter

BFS

Bureau of Fiscal Service

BMF

Business Master File

CARES

Coronavirus Aid, Relief, and Economic Security Act

CC

Command Code

CCA

Complete Case Analysis

CDS

Centralized Delivery Service

CEAS

Correspondence Examination Automation Support

CI

Criminal Investigation

CII

Correspondence Imaging Inventory

CN

Common Number

CSR

Customer Service Representative

DITA

Designated Identity Theft Adjustment

EGC

Employee Group Code

EIN

Employer Identification Number

EIP

Economic Impact Payment

ES

Estimated Tax

EUP

Employee User Portal

FRP

Frivolous Return Program

FTC

Federal Trade Commission

FTF

Failure to File

FTP

Failure to Pay

HC

Hold Code

HQ

Headquarters

IAT

Integrated Automation Technologies

ICCE

Integrated Customer Communication Environment (System)

ICT

Image Control Team

IDRS

Integrated Data Retrieval System

IDT

Identity Theft

IDTVA

Identity Theft Victim Assistance

IDTVA-A

Identity Theft Victim Assistance Accounts Management

IJE

Invalid Joint Election

IMF

Individual Master File

IPSU

Identity Protection Specialized Unit (inventory programs)

IRM

Internal Revenue Manual

IRSN

Internal Revenue Service Number

ITIN

Individual Taxpayer Identification Number

ITVA HQ

Identity Theft Victim Assistance Headquarters

MeF

Modernized e-File

MXEN

Mixed Entity

OAR

Operations Assistance Request

P&A

Planning & Analysis

PC

Priority Code

POC

Point of Contact

RGS

Report Generation Software

RICS

Return Integrity and Compliance Services

RIVO

Return Integrity & Verification Operations

RO

Revenue Officer

RPD

Return Processable Date

RPM

Return Preparer Misconduct

RPO

Return Preparer Office

RRC

Recovery Rebate Credit

RSED

Refund Statute Expiration Date

RTF

Return Transaction File

SC

Source Code

SCRM

Scrambled SSN

SDC

Scheme Development Center

SLA

Service Level Agreement

SP

Submission Processing

SSA

Social Security Administration

SSN

Social Security Number

TAC

Taxpayer Assistance Center

TAS

Taxpayer Advocate Service

TC

Transaction Code

TCIS

Treasury Check Information System

TIF

Taxpayer Information File

TIN

Taxpayer Identification Number

TOP

Treasury Offset Program

TPP

Taxpayer Protection Program

This section provides Individual Master File (IMF) CSRs/TEs with the resources and guidance to resolve taxpayer (TP) identified and IRS identified identity theft cases, including general procedures for cases with Compliance involvement.

The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see Taxpayer Bill of Rights.

CSRs/TEs should utilize and become familiar with the IRMs below in conjunction with IRM 25.23.4 to aid them in accurately resolving their case and/or routing cases to other functions, when applicable.

IRM 3, Submission Processing

IRM 4, Examination Process

IRM 5, Collecting Process

IRM 20.1, Penalty Handbook

IRM 21, Customer Account Services

IRM 25, Special Topics

IRM 25.23.1, Identity Protection and Victim Assistance – Policy Guidance

IRM 25.23.2, Identity Protection and Victim Assistance - General Case Processing

IRM 25.23.3, IMF Non-Tax-Related IDT and Specialized Programs

IRM 25.23.9, BMF Identity Theft Processing

IRM 25.23.10, Compliance Identity Theft Case Processing

IRM 25.23.11, Business Master File (BMF) Identity Theft Procedures for Accounts Management

IRM 25.23.12, IMF Identity Theft Toll-Free Guidance

IRM 25.24.1, Return Preparer Misconduct Victim Assistance - General Overview

IRM 25.24.2, Return Preparer Misconduct Victim Assistance Specialized Accounts Management Processing

Employees of Identity Theft Victim Assistance (IDTVA - Accounts Management and Specialty Functions) are responsible for keeping current with the following resources:

Identity Theft Victim Assistance (IDTVA) Service Level Agreement (SLA)

Identity Theft Memorandums of Understanding (MOUs) and Interim Guidance Memoranda (IGMs)

Identity Theft Victim Assistance Hub (IDTVA Hub)

ID Theft Resource Page and Technical Communication Documents (TCDs)

SERP Alerts

Employees of IDTVA are also responsible for keeping current with IRM provisions specific to resolving Compliance identity theft account referrals from:

Automated Collection System Support (ACSS)

Automated Substitute for Returns (ASFR)

Automated Underreporter (AUR)

Compliance Services Collection Operation (CSCO)

Monitoring Offer In Compromise (MOIC)

Centralized Offer in Compromise (COIC)

Doubt as to Liability (DATL)

Correspondence Examination (Exam)

Taxpayer Advocate Service (TAS)

This section of the IRM provides guidance primarily for use by IDTVA for the research and resolution of tax-related identity theft cases. Additional information in IRM 25.23.10, Compliance Identity Theft Case Processing, provides procedures specific to cases involving compliance issues.

Cases may initially be taxpayer identified identity theft claims or IRS identified.

Per Exhibit 25.23.1-1, Glossary of Identity Protection Terms and Definitions, an identity theft claim refers to any combination of Form 14039, Identity Theft Affidavit, or a police report or, for other than Compliance functions, a written statement from the taxpayer that they are, or may be, a victim of identity theft. Cases that are referred to IDTVA from a Compliance function must include a Form 14039, police report or Federal Trade Commission (FTC) Identity Theft Report to be considered an identity theft claim.

Identity theft returns filed to generate a fraudulent refund may show the following characteristics:

Refundable credits claimed, no Form W-2 income included

Adoption credit

First-time Homebuyer Credit

Refundable Education Credit (Form 8863)

Only Education Credits of $1,000 claimed on return

Cases generally fall into one of two treatment streams:

Streamline identity theft case processing - the identity theft return can be nullified

Non-Streamline identity theft case processing - the identity theft return cannot be nullified and must be processed to an IRSN

When possible, cases will be resolved based on information provided and/or directly available. If a determination cannot be made based on the information provided and/or directly available, guidance will be followed for communicating with the taxpayer(s).

Steps for resolution of IDT cases are generally based on one of the following scenarios:

Invalid return/valid return - no lost refund

Invalid return/valid return - lost refund

Valid return/invalid return - no lost refund

Two or more invalid returns (no valid return) - no lost refund

Two or more invalid returns (no valid return) - lost refund

One invalid return only - no lost refund

One invalid return only - lost refund

The subsections that follow provide details on the assignment of work, management of inventory, and applicable research and resolution processes, etc.

ITVA headquarters provides various reports to IDTVA P&A for inventory management purposes. Recommended uses for the reports are outlined individually.

AUR Analytics Data Retrieval (ADR) Report - See Exhibit 25.23.4-15, ITVA HQ AUR ADR Report - For Use by IDTVA P&A and Designated Individuals Only.

Balance Due Receipts Listing - See Exhibit 25.23.4-16, ITVA HQ Balance Due Receipts Listing - For Use by IDTVA P&A Only.

Disaster -O Freeze Listing - See Exhibit 25.23.4-17, ITVA HQ Disaster -O Freeze Listing - For Use by IDTVA P&A Only.

Freeze Code -L Listing - See Exhibit 25.23.4-18, ITVA HQ Freeze Code -L Listing - For Use by IDTVA P&A Only.

Freeze Code Z Listing - See Exhibit 25.23.4-19, ITVA HQ Freeze Code Z Listing - For Use by IDTVA P&A Only.

On a weekly basis, IDTVA P&A ensures site adherence to inventory management requirements outlined in IRM 1.4.16.5.6, Monitoring the Automated Age Listing (AAL), in an effort to appropriately prioritize cases while addressing old age inventory, unpostables, and unnecessary multiple controls.

IDT skilled employees with IDT/RPM inventory are assigned a phone extension so taxpayers may contact them directly with questions about the status of their cases. Employees must be signed into their routing extension when they are not answering calls on a toll-free line. Refer to IRM 25.23.4.18.5, Taxpayer Calls on Identity Theft (IDT) Cases (IDTVA Paper Employees Only), for additional information.

In general, identity theft cases will be scanned into the Correspondence Imaging System (CII) and assigned to employees through the Centralized Work Distribution (CWD) process.

The Correspondence Imaging System (CII) has been updated with identity theft CII Logic to assign/associate newly scanned work to CSRs with existing controls. This is to be consistent with note/guidance under (2) of IRM 21.5.2.3, Adjustment Guidelines - Research.

The Automated Age Listing (AAL) and Multiple Control Listing (MCL) are used to monitor and manage assigned inventory.

On a quarterly basis, ITVA will provide a listing of statute imminent cases (based on the current ASED on the module). Statute year cases will be prioritized for statute clearing purposes. Refer to Exhibit 25.23.4-24 , IDTVA Statute Clearing.

Identity theft cases are priority work per IRM 25.23.2.2.2, Priority Handling of Identity Theft Cases.

When the CII case is controlled to an incorrect Category Code, update CII to reflect the correct case type and OFP.

If multiple controls are present on your case, link cases following guidance in IRM 21.5.1.5.1, CII General Guidelines. Use the table in Exhibit 25.23.4-7, Identity Theft (IDT) Multiple Control Decision Document, to determine the appropriate IDT Category Code.

If an IDT4 was recently assigned to you because you have an open IDS3 or IDT3 for the same tax period, you would update the surviving Category Code to IDS1 or IDT1. If you have an IDI1, IDS1 or IDT1 for a different tax period, you must manually revise the IDT4 to the appropriate IDI/IDS/IDT category on CII.

Certain identity theft determinations and/or resolution processes require lead/manager approval prior to moving forward with account actions. Document your research and determination or action requiring approval in a CII case note prior to suspending the case to your work leader. Generally, the lead/manager will provide a response within 3 business days, documenting their concurrence or disagreement in a CII case note.

Identity theft cases will be closed with a TC 290 .00 with RC 139 when a corrective adjustment is not necessary.

For refund related IDT (i.e., invalid return filed), do not create a CII control or input a TC 290 .00 with a Reason Code 139 if the following conditions exist:- There is no TC 150 present on the account.- No tax module exists.- The module is in retention (unless reversing a tax offset will create a balance due or it is necessary to resolve the taxpayer issue to make the taxpayer whole).- When an impacted module is not active on IDRS CC: TXMOD and is not yet in retention. Do not input IDRS CC: MFREQ.

IDTVA Specialty Function teams utilize CII. If a case is open in one of the Compliance functions (AUR, Exam, ASFR, etc.) with an IDT allegation, do not refer the case to the Compliance function. Reassign the case to the appropriate IDTVA Specialty Function following Exhibit 25.23.4-5, IDTVA Routing Matrix.

In addition to guidance found in IRM 21.5.1.4.2.6, Adjustments Case Management by Customer Service Representative (CSR), or Tax Examiners (TE), IDT skilled employees will review the identity theft inventory on their Automated Age Listing (AAL) to identify and take action, when appropriate, to refer cases to IDTVA Specialty Functions and/or interrupt collection activity. Failure to make timely referrals to IDTVA Specialty Functions can result in default assessments requiring reconsideration activities and failure to interrupt collection activity results in undue burden, further victimizing the taxpayer.

If the taxpayer’s account reflects a MF or SC collection status, refer to guidance in IRM 25.23.4.12, Collection Activity - Form 14394/13794, to interrupt collection activity while the case is worked.

All identity theft (IDT) cases are required to have a CII control. The Image Control Team (ICT) creates a CII case for the tax year identified via the taxpayer’s correspondence. The creation of the CII case will open the initial IDRS control base. If multiple tax years are listed, ICT will create the CII case for the earliest year identified. Review the taxpayer’s correspondence and perform Complete Case Analysis (CCA) to determine if there are any other IDT impacted tax years. A new CII case must be opened for all tax years identified by the taxpayer and all additional years discovered to be impacted by IDT. Do not update your existing CII case to reflect each year as they are worked. Refer to IRM 25.23.2-15, IDTVA IDRS Category Controls by Function, to determine the appropriate category code for additional impacted years. These controls should prevent other areas from adjusting an account without making contact. If there are multiple function controls on a case, use Exhibit 25.23.4-9, IDTVA-A Identity Theft (IDT) Work Types Listing, to determine where to route the case.

"IDT impacted tax years" includes dependent related identity theft, income related tax year(s), and invalid returns filed using the primary or secondary taxpayer’s TIN identified through Complete Case Analysis (CCA). When a dependent related, income related, or primary/secondary taxpayer issue is identified through CCA, and the issue was not previously resolved or was worked incorrectly, the case will be created even if no tax module exists. TC 290 .00 with Reason Code 139 will only be input if a TC 150 is present. All related CII cases must be linked, including XREF TINs, dependent related IDT siblings/parents, cases previously resolved, and new cases created as a result of CCA.

All cases determined to be NOIDT require a CII case to be created if the year was identified by the taxpayer (e.g., listed on Form 14039, police report, correspondence, etc.).

For cases determined to be impacted by refund related IDT (i.e., invalid return filed), do not create a CII control or input a TC 290 .00 with a Reason Code 139 if the following conditions exist:- There is no TC 150 present on the account.- No tax module exists.- The module is in retention (unless reversing a tax offset will create a balance due or it is necessary to resolve the taxpayer issue to make the taxpayer whole).- Issues involving a secondary taxpayer previously worked by another function (e.g., RIVO, TPP, etc.) may require addressing an unresolved TC 594 CC 084. See IRM 25.23.4.8.1.3, Married Filing Joint Scheme Involvement, for additional information.- When an impacted module is not active on IDRS CC: TXMOD and is not yet in retention. Do not input IDRS CC: MFREQ.

Use of the IAT REQ54 tool to input the TC 290 .00 with RC 139 will prevent unnecessary modules being made active with IDRS CC MFREQ.

Whenever possible, multiple cases for the same taxpayer will be processed by the same employee. These cases may be located in unassigned inventory or as a case assigned to another employee. When unassigned, take control of the case(s). When assigned to another employee, coordination of same taxpayer, multi-year, and covered relationship cases is necessary to ensure consistent processing. Attach the email to the CII case and/or leave a CII case note documenting the contact and coordination. Refer to paragraph (7) if you are the employee taking ownership of the case.

When opening a CII case control for additional impacted years and covered relationships, the Category Code IDT1, IDT2, or IDT4 will be used when the original case is taxpayer identified and IDT3 when IRS identified. The "IRS Received Date" field will be the earliest IRS received date. Refer to the list below for more specific guidance:

Cases created as a result of identification through CCA are to be worked, regardless of age, to ensure the taxpayer’s identity theft issue is fully resolved without unnecessary delays.

IRS identified case: The IRS Received Date field will be the date of identification. This date should not be changed unless an earlier received date is found through research. IDT3, IDS3, IDT6, and IDS6 cases that are created from the generation of a transcript will retain the IRS received date used at case creation. Do not update the IRS received date on CII to the date of a TC 976.

To consider timeliness of filing and refund availability when inputting an adjustment, the IRS received date of the valid TC 976 should be reflected in the appropriate field on CC REQ54/ADJ54.

Taxpayer identified case: The IRS Received Date field will be the date of the claim. This date should not be changed unless through research an earlier received date is found.

A case should rarely be opened from archive and should not be if the case cannot be closed the same day. If not closing the same day, create a new CII case. Use MISC as the category code, and the date of identification as the IRS received date. Link the new case to the archived case. Verify the appropriate IRS received date for any required adjustments. Allowing the IRS received date from the newly created case to be used may negatively impact the taxpayer.

The IRS received date of IDT3, IDS3, IDT6, and IDS6 CII cases may not be the appropriate date for necessary adjustments and/or determinations of credit availability for refund or offset. Thorough research must be conducted to ensure the correct date is used for these actions.

The control base will be in case status "A" while the IDT determination is in process.

Tax related identity theft is controlled on IDRS CC TXMOD.

Dependent related identity theft is controlled on IDRS CC TXMOD.

Income related identity theft is controlled on IDRS CC TXMOD.

Non-tax-related identity theft is controlled on IDRS CC ENMOD.

If all case actions have been completed and you are monitoring the account to ensure "ALL" account actions have posted, close the CII case. Establish a monitor base on IDRS. See IRM 25.23.4.3.1.1, Monitoring Case Controls, for more information.

If an IDRS control base is created to IDTVA in error, update the Activity Code to "OPNDNERR" and the Category Code to MISC prior to closing the case.

For correspondence uploaded using the Document Upload Tool (DUT) and Digital and Mobile Adaptive Forms (DMAF), the IRS received date on CII is the taxpayer’s submission date and will be treated as the signature date. The received and signature dates may not be present on the form when submitted through electronic options. The date of submission will be used when determining if a claim is timely received for purposes of credits.

When multiple IDT cases for the same taxpayer and tax module include the same documentation and are being closed on the same day, close the case with the most recent received date as miscellaneous. Previous action procedures do not apply under these circumstances.

A CII case with received date January 23, 2021 includes a Form 14039, Identity Theft Affidavit, filed through the FTC website. A second CII case with received date February 1, 2021 for the same taxpayer and tax module is created. Comparison of the documents shows the second case includes a Form 14039 that is a duplicate of the submission made through the FTC website. The case with the earliest received date is worked following normal IDT procedures. The case with the later received date is closed as miscellaneous.

When multiple IDT cases for the same taxpayer and tax module include similar documentation (i.e., Form 14039 and taxpayer correspondence describing the same incident) and are being closed on the same day, close the case with the most recent received date as miscellaneous. Previous action procedures do not apply under these circumstances.

When correspondence is received from a taxpayer after previous identity theft cases were resolved, refer to the table below:

When correspondence is:

Case Assignment

For a new tax year,

Will remain with the assigned employee.

For the same tax year (even when a new tax year is listed),

Will be reassigned to the employee who worked the previous case for that tax year, whenever possible.

A response to NOIDT or NORPLY closing letter,

Will be reassigned to the employee who worked the previous case for that tax year if new information is provided, whenever possible.

Specific activity codes were created to easily determine the status of the IDT case. Use of these activity codes is encouraged for all functions. See Exhibit 25.23.4-11, IDRS Activity Codes and Definitions, for more information.

While working identity theft (IDT) cases, there may be instances when monitoring actions is necessary prior to moving forward with resolution. There are two types of case monitoring:

Open CII case

IDRS control base only (CII case has been closed)

Monitoring an open CII case may be necessary when account actions must post before moving forward with additional actions required for case resolution. Examples are listed below:

This list is not all inclusive.

Establishing a new account (TC 000) on CC ENMOD/IMFOLE (e.g., dependent’s entity).

Requesting additional information from the taxpayer (e.g., telephone and/or written).

Suspending the case on CII to lead/manager (e.g., reassignment request, approvals, etc.).

If monitoring on IDRS only, ALL actions must be completed prior to closing the case. Establish a monitor base on IDRS using Category Code “MISC” with the current date as the received date.

When establishing this monitored control base, use “,” to generate the current date and assign the case to you with Command Code (CC) ACTON.

The Julian date input should be calculated in calendar days as the follow up date.

Refer to the table below for a list of account conditions that require monitoring after the CII case has been closed. Verifying applicable transactions related to these scenarios have posted ensures the taxpayer’s issue is fully resolved.

Refer to the applicable IRM procedure(s) to determine the appropriate time frame and follow-up actions for specific account conditions.

Case Scenario

Monitor Actions

(1) Excess Collection File (XSF)

Prepare Form 8758, Excess Collection File Addition, to transfer payments and/or credits TO the Excess Collection File (XSF) or Form 8765, IDRS Control File Credit Application, to transfer FROM the XSF.

Use an IDRS control base to monitor the taxpayer’s account to verify posting of payments and/or credits moved TO and/or FROM the XSF.

See IRM 25.6.1.7.3, Excess Collection File (XSF) and Unidentified Remittance File (URF), for more information.

(2) Manual Refund

When a manual refund is issued, and there are no other actions required to resolve the case, use an IDRS control base to monitor the account for the posting of TC 840. See below for an example.

See IRM 25.23.4.10.10, Identity Theft (IDT) - Manual Refunds, for more information.

(3) Moving Specific Year Account

When Form 12810, Account Transfer Request Checklist, is prepared and sent to Accounting to request the transfer of a tax module from master file to non-master file (TC 370/400 procedures), use an IDRS control base to monitor the account for the posting.

If there is a valid return that must be addressed and an adjustment will be input after the TC 402 posts, the CII case will remain open.

One IDRS control on the Common Number (CN) module may be used to monitor both sides of the move (From and To TINs).

Below is a list of information to help with monitoring an account for TC 370/400:

CN: A pending TC 971 AC 045 will be present and will post with TC 400. The module will be in a zero balance after posting.

CN: The module will have a posted TC 400.

IRSN: Once the TC 400 posts on the CN, a TC 370 will be input and pending on the invalid number (IRSN).

IRSN: Once the TC 370 posts, all of the transactions you requested to be moved will post.

CN: After the TC 370 posts on the IRSN, the CN will show a pending TC 370.

CN: When the TC 370 on the CN posts, the REVERSAL transaction codes for all transactions requested to be moved will also post.

See IRM 25.23.4.11.4 , Moving Specific Year Account Information, for more information.

(4) Treasury Offset Program (TOP)

When the Treasury Offset Program (TOP) offset being reversed is more than 6 years old, a manual reversal is required. Use an IDRS control base to monitor the account for posting of the reversal when no other actions are required to resolve the case. See below for an example.

See IRM 25.23.4.10.3.2 , Identity Theft with TOP Offsets, for more information.

(5) Reversal of Lost/Partially Lost Refund

When a refund was incorrectly moved to the General Ledger (GL) 1545, prepare Form 3245, Posting Voucher - Refund Cancellation or Repayment, and Form 3809, Miscellaneous Adjustment Voucher, to move the credit back to the originating module.

Use an IDRS control base to monitor for posting of the TC 841 or TC 700 when no other actions are required to resolve the case.

See IRM 25.23.4.16, Form 3245/3809 Reversals, for more information.

(6) Unprocessed Documents

When sending unprocessed valid returns to Submission Processing (SP), use an IDRS control base to monitor the account for the posting of TC 976 only. Upon posting, the resulting -A Freeze must be released.

See IRM 25.23.4.6.5.2, Unprocessed Documents, for more information.

Taxpayer Amy Jones contacted Taxpayer Advocate Service (TAS) for assistance because she has a financial hardship. As a result, TAS opens an Operation Assistance Request (OAR). The OAR lists resolving IDT and issuing a manual refund to the taxpayer as the necessary actions. The IDT skilled employee assigned the OAR works the case to address all IDT issues and closes the case on CII. A monitor control base is opened to monitor for the posting of the TC 840.

While conducting CCA, the IDT skilled employee determines the return meets the Married Filing Joint Scheme criteria. The employee takes all necessary actions to resolve the IDT issue, inputs a TOP offset reversal, and closes the case on CII. To ensure the TOP offset reversal (TC 766) posts and the account is resolved with a zero balance (no credit balance on IDRS), a monitor control is opened on IDRS using Category Code “MISC”.

For cases involving reversal of an IDT indicator with a secondary date for the tax year that is more than 7 years old, it is not necessary to keep the case open or monitor until the TC 972 AC 5XX posts on CC ENMOD/IMFOLE. See Exhibit 25.23.4-21, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, for additional information.

Generally, case transfers will occur when more than one IDTVA function has an open case control. To better assist the taxpayer and ensure end to end account resolution, one employee will take responsibility for the case. Refer to Exhibit 25.23.4-5, IDTVA Routing Matrix, to determine ownership of the case.

Examiners will check IDRS for multiple IDTVA open controls on the same or other tax periods for one taxpayer.

All issues should be worked by the same employee. This will prevent duplication of work, potential unpostables, and incorrect adjustments on a module.

In most instances, the employee with the earliest IRS received date will work all tax years. However, if the identifying employee assigned a case with a later IRS received date for the same taxpayer, they may take ownership of all tax years to prevent unnecessary delays in resolution.

Regardless of IRS received date, if an employee has started working the case, that employee will take ownership of all tax years.

When there are compliance issues involved (i.e., AUR, Exam, etc.), the case may need to be reassigned to an IDTVA Specialty Team. The IRS received date will not be considered in these instances. Refer to Exhibit 25.23.4-5, IDTVA Routing Matrix.

If any control bases are in Status A, B, or M with IDT involvement, the assigned employee must be contacted to request reassignment or closure of the CII case before taking action on the account. Once contact is made with the assigned employee or their manager, allow 3 business days for a response before continuing with case actions.

All referrals within IDTVA will be made using the Correspondence Imaging System (CII).

Review documentation submitted by the taxpayer to determine if your case should be retained or routed/referred to another function. Refer to the following IRM sections for additional guidance:

Exhibit 25.23.4-4, Identity Theft (IDT) Functional Routing and Referral Chart

Exhibit 25.23.4-5, IDTVA Routing Matrix

Exhibit 25.23.4-9, IDTVA-A Identity Theft (IDT) Work Types Listing

IRM 25.23.2.4.3, Tracking Individual Taxpayers Reporting to be Victims of Business-Related Identity Theft.

IDTVA-A and IDTVA Specialty employees – Review the IDTVA-A CII Reassignment Guide or IDTVA Specialty CII Reassignment Guide for Non-IDT Cases located on the IDTVA Hub for additional information for reassignment of cases that involve issues with mixed entity, scrambled SSN, MFT 29 (Form 5329 Part III through VIII only), etc.

Before referring the case, review guidance in IRM 21.3.3.4.2.1, Use of 86C Letter - Referring Taxpayer Inquiry/Forms to Another Office, to determine if the 86C letter is required.

Letter 86C is not required if the case is being transferred within IDTVA, through CII, or to another function in the same location.

Identity theft (IDT) allegations received in campus Compliance functions will be referred to the appropriate IDTVA function when:

A Form 14039, Identity Theft Affidavit, police report or Federal Trade Commission (FTC) Identity Theft Report is included in response to a letter/notice.

IDRS CC ENMOD contains an unreversed TC 971 AC 522 with the literal UNWORK.

IDRS CC ENMOD contains an unreversed TC 971 AC 522 with the literal PNDCLM and there is a CII Image of Form 14039, police report or Federal Trade Commission (FTC) Identity Theft Report available on AMS.

There is an open control to an IDT skilled employee (i.e., IDTX or IDIX) for the tax year in question.

If the account contains one of the following TC 971 Action Codes for the tax year in question, the IDT issue may have been previously resolved.

Action Code

Literals

501

INCOME, MULTFL, INCMUL, NOFR, OTHER, DECD, REFCCA, ICMCCA or PRISNR

504

ACCT, NKI, EMPL, or ICMCCA

506

INCOME, MULTFL, INCMUL, NOFR, OTHER, DECD, or PRISNR

Responses regarding functional Compliance issues should be kept and worked by the same function. If a referral is received and the account contains one of the TC 971 Action Codes in paragraph (2) above, a designated technical individual will review the referral and take the following action:

If the new information/referral

Then

(1) Addresses an outstanding Compliance issue and will not impact IDTVA’s previous determination,

Reject the case back to the Compliance function that made the referral.

(2) States the remaining issues are attributable to the previous identity theft claim or provides new information that may allow us to revise our previous determination,

Accept the referral.

If the account contains a TC 972 with the literals NOIDT or NORPLY, follow the table in (3) above.

Ensure that all referrals received from another area meet the requirements to be worked by IDTVA. If requirements are not met, return any cases back to the referring function.

Use the "Reassign" option to return a case that was referred through the CII system.

If a CII case was created for a case that met rejection criteria but was accepted in error, the case will not be rejected by the assigned employee. Use internal information and/or information already provided by the taxpayer to determine the CN owner. When a CN ownership determination cannot be made from available information, refer to IRM 25.23.2.3.6, When to Request Additional Information to Support an Allegation of Identity Theft.

Any IDTVA-A or AM referrals must meet requirements listed in paragraph (4) of IRM 21.3.1.6.41, Status Of Individual Master File (IMF) Underreporter Cases.

For any other referral, including referrals such as TAS, IPSU, etc., ensure the account includes a Compliance issue on at least one tax year.

All identity theft (IDT) cases should be treated as priority, however some cases require immediate attention. Certain case types and/or account conditions are identified by the priority code. This is not a designation of priority order. Refer to Exhibit 25.23.4-8 , Order of Priority Listing IDTVA-A and IDTVA Specialty Functions, for additional information.

IDTVA-A Priority Codes are listed below.

Priority Code

Definition

Priority Code 1

TAS case - Form 12412, Operations Assistance Request (OAR)

TAS cases involving a statute imminent issue will be assigned PC 7.

Priority Code 2

All IDT and IPSU inventory not meeting another PC definition

Priority Code 3

Cases selected and identified by Headquarters (HQ) for trending casework - do not update to another PC unless PC 1, PC 6 or PC 7 applies.

Priority Code 4

Cases selected and identified by Headquarters (HQ) for trending casework - do not update to another PC unless PC 1, PC 6 or PC 7 applies.

Priority Code 6

Potential fraud-scheme scenarios

Priority Code 7

Statute imminent issue requiring protection of the account

The case will remain in Priority Code 7 through closure to ensure remaining actions are taken

Priority Code 8

Cases identified for statute clearing

IDTVA Specialty Functions Priority Codes are listed below. When sending a case to ICT for scanning to CII, certain cases will require a Priority Code to be noted on the batch sheet, as applicable.

Priority Code

Definition

Priority 1

TAS case - Form 12412, Operations Assistance Request (OAR)

IDTVA-ACSS expired Oscar inventories

TAS cases involving a statute imminent issue will be assigned PC 7.

Priority 2

For cases that have had a Statutory Notice of Deficiency issued and the taxpayer still has time to petition tax court

Appeals/CDP

IDT6/IDS6 transcript cases

Referrals from OIC (Specialty Collection Offer in Compromise (SCOIC) only)

Form 3870 Field referrals

Form 14027-B, Global Review Referrals

Priority 3

For open AUR or open Exam cases not meeting the criteria for PC 1 or PC 2

Priority Code 6

Potential fraud-scheme scenarios

Priority Code 7

Statute imminent issue requiring protection of the account

The case will remain in Priority Code 7 through closure to ensure remaining actions are taken

Priority Code 8

Cases identified for statute clearing

Blank

All other inventory will be worked in IRS received date order

It may be necessary to update the Priority Code of a case as it is processed.

The case was originally built/scanned with no Priority Code. During the time the case is waiting to be worked, TAS issues an OAR for the account. Using the ‘Update Data’ button in the Case Data section of your CII case, the Priority Code would need to be updated to Priority Code "1" .

The case was originally built/scanned with no Priority Code. During the time the case is waiting to be worked, the account comes within 180 days of the ASED expiring, the Priority Code would need to be updated to Priority Code "7" . See IRM 25.23.4.9.1, Statute Imminent Assessments for IDT Cases

Refer to specific functional IRMs for additional cases that may require immediate attention.

Taxpayers indicate IDT by submitting Form 14039, Identity Theft Affidavit, a police report, or a similar statement.

If the taxpayer inquiry requires translation into English, refer to guidance in IRM 25.23.4.19, Requesting Translations of Certain Languages.

After research is completed, the case will generally be identified as one of the following types:

A mixed entity case

A scrambled SSN case

An IDT case that you can resolve

An IDT case that should be routed or reassigned

A non-IDT case (e.g., in some instances you may discover the case involves multiple returns filed by the SSN owner; a normal DUPF case)

The following are examples of taxpayer inquiries involving IDT.

Examples of tax-related IDT involving two or more returns include, but are not limited to, references to a Letter 673C, a notice of tax due, references to an attempt to e-file a return that was rejected due to a return already having been filed, a missing refund, or the amount of the refund is different than the amount claimed, etc., and the taxpayer claims they did not file more than one return.

Examples of tax-related IDT involving only one posted return include, but are not limited to, references to impact to Social Security benefits, impact to low income housing benefits, no filing requirement or below filing requirement, and the taxpayer claims they did not file a return.

Examples of tax-related IDT involving secondary TINs on returns include cases in which taxpayers’ overpayments have been applied to accounts that show the taxpayers as secondary filers and the taxpayers claim they did not file as joint or secondary filers on the accounts. See IRM 25.23.4.8.1.3, Married Filing Joint Scheme Involvement, and IRM 25.23.4.8.1.3.1, Invalid Joint Election Consideration.

Examples of income related IDT involve instances where income earned by someone other than the CN owner is present on CC IRPTRL. These cases may be tax related or non-tax related but are always controlled on CC TXMOD on the affected tax period.

Examples of non-tax-related IDT involve Forms 14039 filed in response to someone applying for a credit card using the taxpayer’s name and/or Social Security Number (SSN).

Examples of dependent related IDT involve instances where misuse of a dependent’s TIN is reported. These cases may be tax related or non-tax-related but are always controlled on TXMOD.

If you determine a case assigned to a tax related category code (i.e., IDT1) is a true non-tax related case:

A No IDT determination will only result in a non-tax-related IDT determination if the taxpayer’s statement indicates loss of personally identifying information.

Update the existing CII case information to reflect Category Code IDT4 and all zeros for the MFT and Tax Period to open a control base on CC ENMOD.

If you determine the case was updated on CII to Category Code IDT4 but remains open on CC TXMOD, update the MFT and Tax Period to all zeros (0), per Exhibit 3.13.6-14, Appendix N - Document Types, Category Codes, Priority Codes, IDT - IMF, to establish the control on ENMOD.

If CII did not systemically close the IDRS CC TXMOD control base, use CC ACTON to manually close it as "MISC" .

Follow the guidance in IRM 25.23.3.2.3, Self-Identified - Non-Tax-Related Identity Theft - IDT4 Overview, to resolve the case.

An indication of a potential return preparer misconduct (RPM) issue, rather than identity theft, may be identified when the taxpayer submits a Form 14039, Identity Theft Affidavit, police report, or correspondence. The taxpayer’s inquiry may be alleging they went to a tax preparer for the year in question, and the preparer did any of the following:

Filed an altered return,

Filed a return without their knowledge and consent,

Misdirected the tax refund

There is no IRS identified return preparer misconduct. DO NOT reassign any case that is not taxpayer initiated to RPM.

If

Then

(1) -A freeze is present on the module, ORThe CII case includes the taxpayer's valid unprocessed return,

Do not release the -A freeze or send the return for processing.

Reassign the case to the RPM team. See IRM 25.24.1.4.1, Routing Information - Paper, for additional information.

Input a CII case note "NO ID theft - RPM issue."

Input TC 972 AC 522 with Tax Administration Source Code "NOIDT" and the tax year associated with the alleged IDT incident, if appropriate. Refer to IRM 25.23.2.6.6, Reversing Unsupported Allegations of Identity Theft, for additional information.

(2) -A freeze is NOT present,ANDThe CII case does not include the taxpayer’s valid return,

DO NOT reassign the case to the RPM team.

Send an appropriate "C" letter advising the taxpayer the information they provided indicates there is an RPM issue and not an identity theft issue.

Advise the taxpayer to complete and mail Form 14157, Return Preparer Complaint, and Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit, along with the required documentation as outlined in the instructions for Form 14157-A.

At the time of case closure, if you find the entity has been flagged with a TC 971 AC 522 "UNWORK" or "PNDCLM" , input a TC 972 AC 522 "NOIDT" or TC 972 AC 522 with the literal "OTHER" , if appropriate. Refer to IRM 25.23.2.6.6, Reversing Unsupported Allegations of Identity Theft, for additional information.

Close the CII case.

If it can be determined Form 14039, Identity Theft Affidavit, or correspondence contains frivolous claims, the case must be referred to Ogden Campus Frivolous Return Program (FRP). Follow procedures in IRM 21.5.3.4.16.7, Identifying Frivolous Returns/Correspondence and Responding to Frivolous Arguments, for guidance on referring the case to FRP. If a TC 971 AC 522 is present, and the taxpayer is not a victim of identity theft, the TC 971 AC 522 may need to be reversed. Input a TC 972 AC 522 with Source Code OTHER, when applicable.

Frivolous filing of a Form 14039 is not to be confused with NOIDT. Frivolous claims are identified by information that is false, includes recognized frivolous arguments, Constitutional based objections, etc. See IRM 25.23.2.3, Identity Theft Claims - General Guidelines, for additional information.

In rare instances, a claim may be received listing a public figure or famous individual as the victim.

IF

AND

THEN

(1) The statement includes the name of a public figure or famous individual,

They are not listed as the victim,

Continue processing following normal procedures.

(2) The statement includes the name of a public figure or famous individual,

They are listed as the victim,

STOP.

Once identified, do not conduct further research until guidance is received from ITVA HQ.

Prepare and email Form 4442 using the subject line: Frivolous Claim (or similar) to ITVA HQ. Document all research completed in a CII case note and/or on Form 4442. Attach Form 4442 to your CII case.

Suspend the case awaiting a response from ITVA HQ. Upon receipt, the account will be researched. A response on how to address the account will be received within 7 business days.

For cases where tax related identity theft is indicated by the taxpayer, change the doc type and update the Category Code to IDT1/IDS1 if it has not already been done.

Change the Category Code when resolving an IDT4 case.

IDTVA Specialty Functions do not change Category Codes. All cases remain in the function’s Category Code.

Perform complete and careful research on each case, per IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, and the related subsections to make a determination.

If a determination cannot be made based on the information directly available, refer to guidance in IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written), to initiate communications with the taxpayers.

Taxpayers may request to rescind their identity theft claim. When these requests are received, follow procedures in IRM 25.23.4.4.1, Taxpayer Requests to Rescind Identity Theft (IDT) Claim.

Taxpayers may call in or correspond to request to rescind their identity theft (IDT) claim.

The request cannot be honored when there is a TIN-related issue open in another function (i.e., unresolved TPP, MFT 32, MXEN, etc.).

When a request to rescind is received during a phone call and eligibility has been confirmed, the assistor will document AMS and/or CII with the explanation the taxpayer provides and contact the employee assigned the case via email to advise the taxpayer has rescinded their claim.

Correspondence requesting an IDT claim to be rescinded will only be accepted when submitted by the individual or an authorized third party (i.e., parent/legal guardian, Power of Attorney, etc.).

Rescinding an IDT claim applies to all tax years identified by the taxpayer. As requested, the account will not be reviewed for IDT or marked with an IDT indicator.

Search for CII cases for additional impacted years. All years identified on the claim with an open CII case will be closed when a request to rescind has been received.

Take the following actions when closing a case as rescinded:

Use IDRS Command Code REQ77 initiated from Command Code ENMOD to input a TC 972 AC 522 reflecting a Tax Administration Source Code of "TPRQ" and the tax year of the identity theft incident. See Exhibit 25.23.2-11, IMF Only TC 972 AC 522 – Reversal of TC 971 AC 522, for additional information.

Refer to Exhibit 25.23.4-21, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, for additional guidance when the secondary date is for a tax year that is more than 7 years old.

Issue a closing Letter 4402C to notify the taxpayer we have closed their claim, as requested, and provide appropriate IP PIN information. You may use a selectable paragraph, the special paragraphs, or similar verbiage:Claim Closed"Thank you for contacting the IRS. On (date), you stated you would like to rescind your identity theft claim. We have closed your claim, as requested. You can add security to your tax account by using an Identity Protection Personal Identification Number (IP PIN)." An IP PIN is a six-digit number that will help prevent the misuse of your taxpayer identification number on fraudulent federal income tax returns. You can find more information at irs.gov/ippinfaqs.• Input the full date without abbreviations in place of (date).IP PIN Information18 years or older:"You can protect your account by obtaining an IP PIN by accessing your Individual Online Account located online at irs.gov/account." Under 18 years"You can protect your account by completing Form 15227, Identity Protection Personal Identification Number Paper Application, or by visiting your local Taxpayer Assistance Center."

Do not include the quotation marks when using the special paragraphs provided above.

Instances of identity theft impacting tax administration may be IRS identified through systemic methods or research conducted by an employee.

IRS programming systemically recognizes potential identity theft issues through comparison of tax return and tax account information and identification of tax returns meeting criteria specific to known schemes and fraudulent activity.

IRS employees may identify potential identity theft issues with thorough account research, comparing tax return details with the taxpayer’s filing history and other information available internally. Generally, these cases involve duplicate filing conditions, a married filing joint scheme, or a dependent claimed on a tax return determined to be invalid.

Unless a condition exists where additional information is needed (i.e., missing forms, etc.), IDTVA will only send a closing letter to the taxpayer when it has been determined they are a victim of identity theft.

For cases where tax related identity theft is IRS identified, update the Category Code to IDT3/IDS3 if it has not already been done.

Cases with RIVO involvement meeting IDT8 criteria. See IRM 25.23.4.6.2, IDTVA - Additional Research and Required Actions, for more details.

Credit Transcripts meeting IDT6 criteria. See IRM 25.23.4.6.6, Credit Transcripts - IDT6/IDS6, for more details.

IDTVA Specialty Functions do not change Category Codes. All cases remain in the function’s Category Code.

Complete and careful research must be performed on each case per IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, and the related subsections, and IRM 25.23.4.8, Identity Theft (IDT) Common Number (CN) Ownership and Case Processing Determinations, to make an identity theft determination.

Complete and careful research must be performed on all cases. Employees outside of IDTVA are responsible for taking appropriate actions prior to reassigning a case to IDTVA or proceeding with scrambled SSN procedures. To conduct the necessary research, all information available through taxpayer communication and internal sources must be considered. See below for details about researching in Correspondence Imaging Inventory (CII) and Account Management Services (AMS).

CII: Review all CII images, attached documents, case notes, and case messages in your assigned case(s). Search for related cases under the Common Number (CN) and cross reference Taxpayer Identification Number(s) (TINs) located. Include archived and non-archived cases.

AMS: Review all history items, account alerts, and images available in AMS for the CN and cross reference TINs. There are instances where the electronic submission of information will make documents available in AMS but not in CII.

The taxpayer responds to a CP 2000 notice. This does not create a CII case, but an image is available in AMS.

Upon recognition of a case as a potential IDT case, also perform the following actions:

Determine if a TC 971 AC 522 is required and, if appropriate, whether the TC 971 AC 522 reflecting an appropriate Tax Administration Source Code has been input on CC ENMOD. See IRM 25.23.2.4.4, Initial Allegation or Suspicion of Tax-Related Identity Theft - IMF Identity Theft Indicators, for additional information.

A CP 01S may have been issued to acknowledge the receipt of Form 14039, Form 14039 (SP), a police report, or a similar statement related to identity theft. An acknowledgement letter would not have been issued for IRS identified IDT cases. See IRM 25.23.2.3, Identity Theft Claims - General Guidelines, and IRM 25.23.4.18.1, General IDTVA Letter Procedures, for additional information.

Perform a complete statute search and leave a case note that indicates the case is related to an IDT issue. Statute expiration must be considered to prevent barred assessments.

Determine the correct Category Code, Doc Type, etc. Update CII and the Statute Clearance check box, when appropriate, when reassigning to a CII user. Leave a note on CII if one is not generated.

Ensure all relevant documents have been scanned to the case. Cases for tax years at or approaching 10 years (i.e., current year is 2023 and case is for tax year 2013), it is suggested IRPTR screen prints are attached to the case. Due to the nature of the work, access to the income history may be lost before an employee is able to work the case.

Review the case for potential balance due issues that must be addressed. Accounts with balance due issues must be protected, which includes prevention of balance due notices, tax offsets, and/or enforcement actions. Refer to the table below to determine the appropriate action(s):

If

And

Then

(1) The year(s) on a claim reflect a balance due in notice status (SC or MF):

The corrective adjustment will full pay the balance,

Input TC 470 CC 90.

(2) The year(s) on a claim reflect a balance due in notice status (SC or MF):

The identity theft claim is pending and/or there will still be a balance owed after the case is resolved,

Input TC 470 with no CC.

(3) The year(s) on a claim reflect a balance due in collection status 03, 22, 24, 26, or 58 (SC or MF):

blank

Refer to IRM 25.23.4.12.1, Collection Activity Form 14394, for additional information about ensuring the taxpayer is not harmed from a levy.

(4) There is a TC 582 (Lien Indicator) or TC 360

blank

Refer to IRM 25.23.4.12.2 , Collection Activity - Form 13794 Additional Actions Required - Lien, for additional actions that may be required to protect the taxpayer.

(5) The valid taxpayer’s return is not the TC 150 and requests a credit elect:

The year the credit elect is to be applied to reflects a balance due that will be full paid once the credit elect is applied,

Input TC 470 CC 94 on the module with the balance due to prevent notices, offsets, and collection activity.

(6) The valid taxpayer’s return is not the TC 150 and requests a credit elect:

The year the credit elect is to be applied to reflects a balance due that will not be fully resolved once the credit elect is applied,

Input TC 470 CC 94 on the module with the balance due to prevent notices, offsets, and collection activity. Once the case has been resolved, input TC 472 CC 94 to resume normal balance due activity.

If reassigning the case, after performing the actions above, reassign the case to the IDT holding number. International cases should be reassigned to the International holding number. Both IDRS numbers can be found on the Accounts Management Site Specialization Temporary Holding Numbers located on SERP. See paragraph (15) of IRM 21.5.1.5.2, Cases Currently Assigned in CII, for additional information.

A case reassigned to the Centralized Distribution Site (CDS) in error may be returned to the originating site. Reassigning cases in error can result in an adverse impact to the taxpayer and delay the processing of their case.

IDT skilled employees will continue to resolve the case or route/reassign the case, if applicable. Before proceeding, if the case should be assigned/routed to another area (e.g., AUR, Exam, etc.) or employee, refer to IRM 25.23.4.3.2, Case Transfer Within IDTVA, and IRM 25.23.4.3.3, Cases Requiring Routing/Reassignment To Other Functions, for additional guidance. If the case does not require reassignment/routing, proceed to the next IRM sections that apply to your case.

IDTVA-A employees - do not reassign the following transcripts to IDTVA Specialty Functions unless there is an open and/or active identity theft (IDT) claim or a previous assessment for the year in question that may require an IDT determination: TRNS 36, 36D, 36I, 36N, 36P, 36S, 36U and 36V.

IDTVA-A skilled employees - do not reassign the case containing the taxpayer's IDT claim (i.e., Form 14039, etc.) to IDTVA Specialty Functions if the Compliance issue on a module is not for the same tax year in question.

CII case with TRNS 36 is assigned on tax year 2023. Research of the taxpayer’s account shows a previous TC 922 with Process Code (PC) 87 (taxpayer agreed) and an assessment made for tax year 2021. Tax year 2021 does not have an IDT issue. Do not reassign the CII case for tax year 2023 to IDTVA Specialty.

CII case with TRNS 36 is assigned on tax year 2024. Research of the taxpayer’s account shows a previous TC 300 with an Exam assessment for tax year 2022. An IDT claim received for tax year 2022 resulted in a determination of IDT, and all required actions were completed correctly. There is no remaining issue to address. Do not reassign the CII case for tax year 2024 to IDTVA Specialty.

Policy Statement P-21-3 guidelines require timely and quality responses to taxpayer correspondence. The "IDT1/IDS1," "IDIX" , or "TPRQ" cases described in this subsection are, according to Policy Statement P-21-3, are considered correspondence. Generally, the response provided to the taxpayer who has submitted this type of correspondence is the closing Letter 4674C, Letter 5064C, if closed within 30 days, or CP 01 notice informing the taxpayer that we have made an identity theft determination. A response, as described here, is considered timely if issued within 611 days of the received date of the "notification" "IDT1/IDS1" , or "TPRQ" document.If a closing response cannot be issued by the 611th day, an interim letter must be sent informing the taxpayer that we require additional time to complete the processing of their case. The time frame given in this interim letter may not exceed 60 days.

The issuance of a closing letter may or may not coincide with the complete resolution of the case. The closing letter is sent when we can share with the taxpayer the results of our processing of the case, e.g., we have made an ownership determination. Do not wait until all resolving actions, e.g., TOP offset reversal transfer procedures, have been completed before sending a closing letter.

A reasonable effort must be made to respond or send an interim letter within the time frame previously given. Such an effort is considered reasonable if it does not hinder the primary objective of resolving the IDT condition and issuing a quality closing response.

Be sure you are sending any necessary letters to the correct address. The Correspondex letter system will default to the Address of Record which may or may not be the correct address for your correspondence. Override the Address of Record when appropriate.

Cases determined not to be identity theft may require additional actions to resolve outstanding issues (i.e., amended return, duplicate return, etc.). Refer to IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations, to appropriately close the identity theft issue and open a new case to fully resolve the account.

Make every effort to locate the correct TIN for each taxpayer before contacting the taxpayer(s) for additional information. Research the TIN (valid and invalid) to determine if there was an identity theft (IDT), mixed entity (MXEN), or scrambled SSN case (SCRM/SSA2) in prior and/or subsequent years. Complete research is essential to determining the necessary corrective actions. Attempt to locate any possible cross-reference TIN. You may identify a cross-reference TIN assigned to a taxpayer who filed a return under the common number (CN) that was determined to be due to identity theft. Internal Revenue Service Numbers (IRSNs) are temporary numbers issued by the IRS and are always on the invalid segment of Master File. The invalid segment is indicated by an asterisk (*) following the last digit of the TIN. Additionally, the tax return(s) in question must be reviewed to determine if the case is a mixed period instead of a TIN-related issue. For purposes of identifying the correct account issue, refer to the following definitions:

Identity Theft (IDT) - the intentional misuse of a taxpayer’s personal information/TIN to commit, or attempt to commit, tax-related fraud.

Mixed Entity (MXEN) - the unintentional misuse of a taxpayer’s TIN due to an inadvertent taxpayer error, tax return preparer error, Marketplace error, or IRS processing error.

A separate TIN can be identified for the taxpayer who has filed under the CN in error.

Mixed Period - a return for the valid taxpayer is processed to an incorrect year, usually due to editing the tax year on the tax return or an incorrect version of the tax return being used by the taxpayer (i.e., TY 2020 income reported on a TY 2021 form).

Scrambled SSN (SCRM/SSA2) - multiple individuals using the same SSN, and the true owner cannot be determined. The Social Security Administration (SSA) has issued the same SSN to more than one individual.

Search returns, schedules, and forms for a different TIN, if applicable. Research spouse and dependent information, whenever available.

Research the valid and invalid sides of any TINs identified for the case (i.e., primary, secondary, different TIN located on forms, etc.). A return posted to the invalid side of the CN is not sufficient evidence to identify an IDT issue. Further research must be conducted to verify the return was not processed to the invalid side of the TIN as a result of an error on the return or name changes that have not yet been provided to the IRS by the Social Security Administration (SSA):

Generally, a return is posted to the invalid side of a TIN due to a Name Control mismatch issue. This may be seen more frequently with taxpayers who have multiple last names, taxpayers who are recently married, and typos on the return.

CC INOLES: Determine the appropriate Name Control(s) for the taxpayer.

CC IMFOLI: Determine if the taxpayer is filing jointly for the first time.

CC TRDBV: Determine if the Name Control based on the spelling of the last name entered on the tax return processed to the invalid side of the TIN matches an appropriate Name Control shown on CC INOLES.

When ICT is unable to determine the correct TIN, the CII case is assigned to all zeros. Additional research is required to locate a TIN for the taxpayer. Using IDRS CC NAMES or NAMEI, input the taxpayer’s name and address information to search for a TIN. To do a broad search, input the taxpayer’s name and only the first 3 digits of their zip code. The results will include taxpayer information from areas surrounding the current address. Consider the following possibilities when conducting research using CC NAMES and NAMEI:

The taxpayer may share their name with a parent or child.

The taxpayer’s current address may be different than the address reflected on their account.

The taxpayer’s name may be different as a result of a change in their marital status.

The taxpayer’s name may have included a hyphenated last name or variation in spelling of their name due to typographical errors by the taxpayer, a preparer, or the IRS.

A taxpayer may use Form 14039 to report someone has obtained an Employer Identification Number (EIN) in their name. When the EIN is not provided, make every effort to locate it through internal research.

Once you have completed the necessary research, see the table below:

If

Then

(1) An individual’s TIN cannot be located and there is sufficient mailing information on the complaint,

Issue Letter 5064C to the taxpayer requesting the taxpayer’s TIN and any other required IDT documentation. See IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written).

(2) No response is received,

Refer to IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written), for additional information when the suspense timeframe has expired, and we have no record of a response being received.

(3) Correspondence cannot be issued,

Leave a CII case note stating there is insufficient information to issue correspondence and close the case no action.

(4) An EIN cannot be located,

Follow IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations. In your closing Letter 4674C, advise the taxpayer they may file Form 14039-B, Business Identity Theft Affidavit, if they have an identity theft issue related to an Employer Identification Number (EIN).

When working ITIN cases, you must research under the relevant SSN used for income reporting. Use EUP/ITIN RTS to research ITIN application and assignment information. It is not necessary to request original Form W-7, Application for IRS Individual Taxpayer Identification Number, documents to conduct required research. Using IDRS CC NAMES or NAMEI, input the taxpayer’s name and address information to search for a TIN. To do a broad search, input the taxpayer’s name and only the first 3 digits of their zip code. The results will include taxpayer information from areas surrounding the current address. Consider the following possibilities when conducting research using CC NAMES and NAMEI:

The taxpayer may share their name with a parent or child.

The taxpayer’s current address may be different than the address reflected on their account.

When the taxpayer files as married filing joint, research of the spouse’s TIN may lead to identification of valid TIN information for the taxpayer you are researching.

The taxpayer’s name may have included a hyphenated last name. When the taxpayer has a hyphenated last name, complete research under each last name separately in addition to the hyphenated name. Research the valid and invalid sides of the TIN. Returns may post to the invalid side of a TIN due to a name control mismatch.

An ITIN may have been assigned using only one last name. Through review of the information on Form W-7, you may be able to determine the taxpayer’s valid TIN by matching address and/or spouse information to the application for an ITIN.

The Protecting Americans from Tax Hikes Act (PATH Act) was enacted December 18, 2015 and mandates ITIN renewal requirements. An expired ITIN is not a revoked ITIN. Once an ITIN is assigned, it belongs to that taxpayer unless revoked. Revoked ITINs are not recycled. An expired ITIN will be identified by "Inactive" displayed in the ITIN Status field on ITIN RTS, an ITIN Status of "I" on CC INOLES, and TC 971 AC 193 on CC ENMOD/IMFOLE. For additional information on TIN-related credits limited by the PATH Act, see IRM 3.11.6.4.4.1, Protecting Americans from Tax Hikes (PATH Act).

For ITIN cases, if the Form W-7, Application for IRS Individual Taxpayer Identification Number, clearly indicates which taxpayer was assigned the ITIN, make a notation of this for the CSR/TE who will be working the case, after reassignment from the Centralized Delivery Service (CDS).

If you suspect the case is a scrambled SSN case, research IDRS CC ENMOD or IMFOLE for a Scrambled SSN Indicator (SCI) 01, 10, 12, 13, 20, or 23. Refer to Exhibit 21.6.2-1, Scrambled SSN Indicators. If the indicator is 01 or 20, the case can be reassigned as a scrambled SSN case without ordering the NUMIDENT or sending the questionnaire. If an SCI is not present, order a NUMIDENT. If the NUMIDENT supports a scrambled SSN case, refer to IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written), and its subsections to initiate contact with the taxpayers using the TIN, determine if the case is a scrambled SSN case, and the appropriate actions to take based on the determination made.For example, if it is necessary to initiate Letter 5064C, order NUMIDENT for use when asking supplementary questions per IRM 25.23.4.18.2.1, Telephone Contact Guidelines (Associated with the Letter 5064C Common Number Questionnaire).

NUMIDENT is for internal use only; never send NUMIDENT to the taxpayer.

Only attach the NUMIDENT to the primary CII case when a determination has been made that the NUMIDENT is required and necessary to resolve the case.

IDTVA Specialty Functions do not work scrambled SSN cases. These cases will be reassigned using the IDTVA Specialty CII Reassignment Guide for Non-IDT Cases after resolution of all IDT impacted years.

If you determine the case is a Mixed Period, the taxpayer is not a victim of identity theft. Refer to IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations. For additional information, see IRM 21.6.7.4.2.7.1, Mixed Periods.

IDTVA Specialty Functions do not work mixed period cases. These cases will be reassigned using the IDTVA Specialty CII Reassignment Guide for Non-IDT Cases after resolution of all IDT impacted years.

If a valid TIN can be located for each taxpayer, the taxpayer is not a victim of identity theft. Refer to IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations. For additional guidance, see IRM 21.6.2.4.2, Mixed Entity Procedures.

IDTVA Specialty Functions do not work mixed entity cases. These cases will be reassigned using the IDTVA Specialty CII Reassignment Guide for Non-IDT Cases after resolution of all IDT impacted years.

If a valid different TIN cannot be located for at least one of the taxpayers, continue processing as an IDT case. The following items may be indicators of current or prior IDT:

A TC 971 AC 129 identifies a return as questionable. This indicator alone does not meet IDT criteria. Other indications of identity theft must be present to refer a case to IDTVA.

Previously posted TC 971 AC 501/506 or 522.

Accounts with a TC 971 AC 522 "EPSS DISABL" indicate an on-line account has been disabled by Electronic Products Service and Support (EPSS). This will prevent the TIN owner from accessing an online account. EPSS will instruct these taxpayers to file Form 14039 if they believe they may be a victim of identity theft. See IRM 25.23.2.3.10, Electronic Products Service and Support (EPSS) Disabled Accounts, for additional information.

IDT skilled employees cannot reverse an existing TC 971 AC 522 placed by EPSS. When it is necessary to reverse a TC 971 previously input by EPSS, either in error or because the taxpayer is now stating they were not a victim of identity theft, prepare and email Form 4442 using the subject line: Reverse EPSS IDT Indicator (or similar) to ITVA HQ to request issuance of the IP PIN by mail. Per IRM 25.23.4.3.1.1, Monitoring Case Controls, do not suspend or keep your CII case open only to monitor the posting of the reversal.

The presence of a "CP 36I" transcript that generates an IDT1. These transcripts are generated in a duplicate filing condition and a taxpayer sends in a return with a Form 14039, a police report, or a similar statement attached indicating identity theft, and the return is edited with an FPC 8. The FPC "8" also generates a TC 971 AC 522 on CC ENMOD and a CP 01S acknowledgement. A TC 971 AC 804 MISC CP 001S-SPC8 will post on CC TXMOD when the CP 01S notice is issued.

When a Form 14039(SP), a police report, or a similar statement is received in Spanish, the return is coded with "SPC S" , which generates the TC 971 AC 522 and a CP 01S acknowledgement.

The presence of a CP 36U transcript that generates an IDT1 or CP 36V that generates an IDT3. These transcripts are generated in a duplicate filing condition and when the module has prior IDT indicators on IDRS.

The posting of a CP 36N or CP 36P transcript that generates an IDT8. These transcripts are generated in a duplicate filing condition when the module has a RIVO indicator of TC 971 AC 44/134/617 or TC 971 AC 199 with AMWEX60033 REFEFDS or AMWEX60033 OMMFEFDS in the miscellaneous field. The CP 36 "N" generates when any of the indicators are present and the module is in credit balance, and the CP 36 "P" generates when any of the indicators are present and the module has a zero or debit balance. The cases have previous RIVO involvement. Refer to IRM 25.23.4.6.2.2, RICS-RIVO Involvement General Information and Research, for additional information.

When a return is received from a taxpayer with a previous IDT indicator, a transcript (TRNS) 36V will generate. Normally this case work is identified as Category Code IDT3 on CII; however, in certain circumstances these have been converted to Category Code DUPF to be worked following normal procedures for duplicate filing conditions. The case should not be reassigned back to IDTVA based solely on the generation of a TRNS 36V. The return should be worked where received unless the account was not processed properly. The case should only be reassigned to IDTVA if there are outstanding IDT issues or questions on the previous account adjustments.

If the employee is not assigned to IDTVA, the case should be retained and worked where identified.

Transcripts can be identified on TXMOD by the presence of TC 971 AC 805 and a MISC code of TRNS 36, 36D, 36F, 36I, 36N, 36P, 36S, 36U, or 36V.

IDTVA-A skilled employees - do not reassign the following transcripts to IDTVA Specialty Functions unless there is an open and/or active identity theft (IDT) claim or a previous assessment that may require an IDT determination: TRNS 36, 36D, 36I, 36N, 36P, 36S, 36U and 36V.

A taxpayer is selected by Exam. The return selected is deemed an IDT return and nullified. IDTVA Specialty Exam determines the SSN owner has a filing requirement. A return was requested but not received. The account was backed out and the appropriate IDT indicator was placed on the account. Six months later, the SSN owner files a return. The return is received in IDTVA-A. The return will remain in IDTVA-A to be processed.

For cases originally controlled with a non-IDT category code (e.g., DUPF, C36F, etc.), determine how the case should be categorized (e.g., IDT1/IDS1, or IDT3/IDS3, etc.) per Exhibit 25.23.4-9, IDTVA-A Identity Theft (IDT) Work Types Listing. Prior to reassigning a case to an IDT category code, document all research completed, results of the research, the request for reassignment, and lead or manager approval to reassign in a CII case note.

To correct tax-related IDT problems, you must be familiar with the following research elements and systems:

Entity module

Tax module

Transaction Codes

Reason Codes

Posting Delay Codes

Hold Codes

Unpostable Codes

Retention Register - Request a Retention Register transcript only if the account cannot be reactivated by using Command Code IMFOL with definer "B."

Command Codes, including NAMES, INOLE, DDBKD, DUPOL, MFTRA, IMFOL, RTVUE, FFINQ, REINF, TRDBV, IRPTR, ENMOD, TXMOD, TPIIP, DFAST and FINDS with various definers and systems, such as TCIS or ACCURINT.

Some of the Command Codes and/or systems listed are applicable to the IDTVA Specialty Functions only (e.g., ACCURINT and DFAST).

NUMIDENT transcript showing specific taxpayer data provided by Social Security Administration (SSA) records (for SSN research only)

Collection status - If the taxpayer’s account is in ACS status, refer to guidance in IRM 25.23.4.12, Collection Activity - Form 14394/13794, to interrupt collection activity while the case is worked.

The research and tools necessary for accurately processing an IDT case includes, where applicable, and is not limited to the following:

Utilizing the IAT aMend tool. The IAT aMend tool is mandated for use by all employees working all IDT cases, which includes streamline and non-streamline cases. See Exhibit 21.2.2-2, ACCOUNTS MANAGEMENT MANDATED IAT TOOLS, for a list of tools required for IDTVA.

Utilizing the Correspondence Imaging System (CII) and all applicable and available internal research systems to review all related cases, whether open or closed.

Utilizing the Correspondence Imaging System/Accounts Management System (CII/AMS) to review all related documents and/or attachments. Also refer to IRM 25.23.4.3, Case Assignment and Inventory Management - General Guidance, for additional guidance.

Utilizing the ITIN Real Time System (RTS) to research and review data related to assigned, suspended and/or rejected Form W-7, Application for IRS Individual Taxpayer Identification Number. RTS is a tool located within the Employee User Portal (EUP). Online 5081 permission and access are required. See IRM 3.21.263.9.1.2, Accessing and Logging onto ITIN Real-Time System (RTS), and IRM 3.21.263.9, General Instructions for ITIN Navigation (ITIN RTS), for additional information.

The Form W-7 application's Document Locator Number (DLN) is only available on RTS.

Analyzing the account history for:Number of years the TIN has been used for filing returnsFiling status changesMethod of filing, electronic or paperPrevious adjustmentsFiling dates of original and duplicate returnsTC 971 Transaction Codes

Utilizing NAMES to identify and locate all related TINs for all tax years

Utilizing RTVUE to determine items of information such as:Address for the first return(s) filedDependentsType of incomeFiling StatusSchedules and Forms filed

Utilizing MeF to perform research of filing activity (example of results could be an IDT return accepted by MeF, but subsequently deleted from processing by SP; data may not be present on TRDBV)

Utilizing TRDBV to determine items of information such as:Rejected attempts to file (no invalid returns accepted)Wage information detailsOccupationTax Return PreparerRequested method of disbursing overpayment, electronic or by mail

Utilizing INOLE to determine items of information such as:Date of birthPrevious namesSpouse's TINOther related TINs

Utilizing IRPTR to perform research actions and determine items of information such as:Comparative review of reported income and payor informationPrevious and current employersPrevious addressesState Reverse File Match Initiative (SRFMI) information

This information may be available for taxpayers who have filed a state tax return but have not filed a federal tax return. Refer to IRM 5.1.11.2.3.1.3, State Reverse File Matching Initiative (SRFMI), for additional information. The presence of state tax return information for a state other than the state the taxpayer lives in may be an indication of identity theft. Research must be conducted to determine if the taxpayer previously lived in that state or earned income in that state requiring them to file a state tax return for a state they do not currently live in. When the SRFMI information matches income information reported to the IRS (i.e., Form W-2, etc.), this may support the taxpayer’s claim. See the example below.

The taxpayer submits Form 14039 with a tax return for TY 2023. The Form 14039 states the taxpayer could not file electronically, and the tax return is posted as the TC 976. Research of CC IRPTR shows SRFMI information reporting wages of $62,479.00 filed in the state the taxpayer lives in. There is a W-2 from ABC Company on CC IRPTR for the same amount, and the TC 976 return includes those wages. The TC 150 return is reporting wages of $44,916 and has an address in a different state. A W-2 from XYZ Corp. for this amount is on CC IRPTR. The W-2 from XYZ Corp. includes the taxpayer’s name but an address in a different state. Research of the account did not result in the identification of another valid TIN. This information supports making a determination of refund related IDT requiring non-streamline resolution and income related IDT for the income earned by the person who filed the TC 150 tax return.

Signatures (except for e-filed returns when a signature is unavailable)

For additional signature requirements refer to IRM 21.6.7.4.9, Signature Verification.

A Form 14039 received from Federal Trade Commission (FTC) should be considered valid. A signature is no longer required for the IRS to accept the receipt of the Form 14039.

Do not determine the validity of a social security card based on the word "VOID" on the photocopy. Placing the word "VOID" on a photocopy of a recently issued social security card simply indicates that the document is a photocopy of the original card.

The receipt of a "notification" or an "incidental" Form 14039 or some similar type of information (e.g., a police report regarding IDT) requires you to change the category of the "DUPF" or MXEN case to "IDT1/IDS1" or to "IDT3/IDS3" , if the IDT was discovered by the IRS.

When reviewing cases with similar or identical income, careful and thorough research must be performed to determine the correct TIN owner. With external data breaches on the rise, a valid return could easily be identified as a duplicate and/or amended return. Review the returns or IDRS for the following indications:

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This list may not be all inclusive.

Consider the taxpayer’s statement. The taxpayer may not provide the specific details for their identity theft issue. A generalized statement may be used to identify the appropriate research path. Refer to the table below for examples:

This table is not all inclusive.

Statement

Research Path

(1) Unable to file electronically,

Refund related IDT

(2) My Social Security Benefits were reduced,

Income related IDT

(3) The IRS is taking my Social Security,

Collections activity

(4) Obtained services or line of credit using my information (i.e., healthcare coverage, credit card, loan, etc.),

Non-tax-related IDT

If you identify a TC 971 AC 515, TC 971 AC 199 with MISC field "AMWEX60033 GAT EFDS" , or the Identity Theft (IDT) claim and/or correspondence is from an individual who is incarcerated (prisoner), refer to IRM 25.23.4.6.1.1, Researching Accounts for Incarcerated Individuals (Prisoners), for additional information.

If you identify a TC 971 AC 123 with MISC "PREPARER CONTACT" , or the taxpayer provides a statement indicating they were potentially involved in a data breach incident, refer to IRM 25.23.4.8.2.4, Identity Theft (IDT) with External Business/Preparer Data Breach Involvement, for additional information.

If you identify a TC 971 AC 123 with MISC "TTAX LIST" , or the taxpayer provides a statement indicating they were advised by Intuit/TurboTax that an individual attempted to use their personal information to create a new account and/or file a tax return, refer to IRM 25.23.4.8.2.5, Identity Theft (IDT) with Tax Preparation Software Misuse, for additional information.

IDTVA cases that have been excluded from the systemic process for unemployment income relief provided in The American Rescue Plan Act of 2021 can be identified by a TC 971 AC 123 with MISC "IDTVACASE" (IDTVA case is open) posted on IDRS CC IMFOLE. When an IDT case that was excluded has been closed, IDRS CC IMFOLE will reflect a TC 971 AC 123 with MISC "IDTVACLSD" (IDTVA case has been resolved). These transactions are systemically placed on the account.

Identity Theft (IDT) claims and/or correspondence from a taxpayer may be received from individuals who are incarcerated (prisoners). Prior to making an identity theft determination, conduct basic research.

Cases involving an incarcerated taxpayer may show the following indicators on IDRS CC TXMOD/IMFOL:

TC 971 AC 515: Taxpayer is on the prisoner file.

TC 971 AC 199 with MISC field "AMWEX60033 GAT EFDS" The incarcerated taxpayer is a full year prisoner, and a return was filed claiming refundable credits they may not qualify for.

A review of the account(s) may reflect Automated Questionable Credit (AQC) inventory which is identified by TC 971 AC 122 with the following MISC fields:

GAT11: Pre-refund prisoner returns with verified wages and withholding, with or without Sch. C or HSH income, with refundable credits that are not allowable based on income earned while an inmate at a penal institution.

7G2: Pre-refund return for a full year prisoner claiming Refundable Child Tax Credit (RCTC) – tax year 2021 only.

IDRS populates Command Code (CC) FTBOL Definer P with data received and compiled once yearly from correctional institutions in the United States. Prisoner incarceration dates and release dates for the current tax year and three (3) prior tax years are maintained. See Exhibit 25.25.2-6, IDRS COMMAND CODE FTBOL SCREEN, for additional information, including IDRS examples of CC FTBOLP.

Prior year incarceration and release dates will not be updated in the current year prison file. However, the "NOTE" field for prior years will update based on the most current information.

When yearly prisoner data is incomplete and cannot be perfected, incarceration and release dates are shown on IDRS as Not Applicable (N/A). This DOES NOT mean the taxpayer was released during that tax year. For these instances, use the latest incarceration and release dates to determine whether the taxpayer is a full year prisoner.

Additional research for accounts involving an incarcerated taxpayer (prisoner) may include, but is not limited to, the following systems:

Research

Description

(1) IDRS

Research the account for evidence of current or previous taxpayer incarceration.

CC TXMOD/IMFOL indicators described in paragraphs (2) and (3) above.

CC FTBOL Definer P is available for reviewing the prisoner file. Refer to SERP CCJA - IDRS Command Code Job Aid for CC FTBOLP and/or Exhibit 25.25.2-6, IDRS COMMAND CODE FTBOL SCREEN, for additional information.

CC IRPTR:

Form W-2 or other income document indicating wages earned in prison or the address indicates a prison or other correctional facility.

Address on Form 1098-T identifies a prisoner or a prison or other correctional facility.

CC DFAST is used as a research tool for displaying a list of compliance issues found on returns:

Prisoner Entry/Release dates, state incarcerated and prisoner indicator for Primary TIN (these fields are not displayed for non-prisoners.

(2) AMS

Conduct a cursory review for any evidence of incarceration:

Prisoner indicators may not be present on AMS.

History items documenting previous telephone inquiries specifying the taxpayer is/was incarcerated.

History items documenting resolved/unresolved cases which may include details regarding the taxpayer’s incarceration.

Correspondence Imaging Inventory (CII) images which may include documents providing details of the taxpayer’s incarceration.

(3) Prisoner Database(s)

Confirmation of incarceration, current facility, and updated mailing addresses may be found by researching:

When available, use of the inmate Identification Number to conduct this research is recommended.

Government websites, such as the official Department of Corrections website for the state or the local inmate information search on the county website, as applicable. (Determine the county by using the address provided by the taxpayer.)

Public records websites, such as Public Record Center or Public Record Center - Inmate Search.

(4) Documents

Do not assume the individual filing the identity theft claim is the true owner of the Common Number (CN). Consider:

All information received,

Account research conducted,

Marking on the envelope that indicates prisoner mail (i.e., Inmate Identification Number, etc.), and

Additional information available.

An invalid return could include information that is consistent with the taxpayer’s filing history. Refer to IRM 25.23.4.6, Research, Actions and Complete Case Analysis – Overview, for additional items to review to prevent the mishandling of an IDT case.

Refer to the table below for common case scenarios and the appropriate research path:

Case Scenario

Research Path

(1) The incarcerated taxpayer states they did not file the tax return in question,ANDThe tax return is Married Filing Joint (MFJ),

See IRM 25.23.4.8.1.3, Married Filing Joint Scheme Involvement, and its applicable subsections.

(2) The incarcerated taxpayer states they did not file the tax return in question,Someone helped them but added direct deposit information that does not belong to them, orThey expected to receive the EIP in the mail and did not,ANDThe tax return was filed using the Non-Filers Tool.

See IRM 25.23.4.8.5, Identity Theft with Non-Filer Returns.

(3) The incarcerated taxpayer states someone claimed them as a dependent.

See IRM 25.23.4.8.4, Dependent Related Identity Theft (IDT) – General, and its subsections.

(4) All cases not meeting a case scenario above,

Continue to IRM 25.23.4.8.6.1, Identity Theft (IDT) with Incarcerated Taxpayer (Prisoner) Involvement – Streamline Determination.

Identity theft cases will be either taxpayer identified or IRS identified. All taxpayer identified claims will be categorized as an IDT1 and all IRS identified cases as an IDT3. Cases with specific transaction codes indicating Return Integrity and Compliance Services (RICS) or Return Integrity & Verification Operations (RIVO) involvement will be controlled as IDT8. Certain account conditions or circumstances will result in transcripts generating cases in specific categories. See the table below for additional information:

Transcript

Details

(1) CP 36I

The taxpayer has submitted a return with an attached Form 14039, police report, or similar statement indicating identity theft, and the return is edited with a Form Processing Code (FPC) 8.

FPC 8 will generate a TC 971 AC 522 on CC ENMOD and a CP 01S acknowledgement notice.

The case will be resolved as taxpayer identified (IDT1).

(2) CP 36U

A TC 976 posted after a previous identity theft claim initiated by the taxpayer. An unreversed TC 971 AC 522 "PNDCLM" or TC 971 AC 501 is present.

The case will be resolved as taxpayer identified (IDT1).

Because there is no correspondence with this taxpayer identified case, letter procedures for these cases may differ from other taxpayer identified case types. Specific guidance will be provided where applicable.

(3) CP 36V

A TC 976 posted after the IRS previously identified the taxpayer as a victim of identity theft. An unreversed TC 971 AC 506 is present.

The case will be resolved as IRS identified (IDT3).

If at any point after the transcript generated, the taxpayer has submitted a Form 14039, police report, or similar statement indicating identity theft, the case will be resolved as taxpayer identified (IDT1).

(4) CP 36N

The module reflects a credit balance.

A CP 05A, indicating RIVO involvement, is present.

The module will have a TC 971 AC 44/134/617 or TC 971 AC 199 with "AMWEX60033 REFEFDS" or "AMWEX60033 OMMFEFDS" in the miscellaneous field.

The case will be resolved as an IDT8.

(5) CP 36P

The module has a zero or debit balance.

A CP 05A, indicating RIVO involvement, is present.

The module will have a TC 971 AC 44/134/617 or TC 971 AC 199 with "AMWEX60033 REFEFDS" or "AMWEX60033 OMMFEFDS" in the miscellaneous field.

The case will be resolved as an IDT8.

(6) CP 36orCP 36F

CP 36 is a duplicate return condition.

CP 36F is a multiple filing condition which occurs when the same TIN is used as a primary taxpayer on one return and a secondary taxpayer on another return for the same tax year, generating a TC 971 AC 151. The CP 36F transcript is now obsolete; however, secondary duplicate filing issues may be seen in identity theft cases.

Generally, these cases will be IRS identified and reassigned to IDTVA to be resolved as IDT3.

If at any point after the transcript generated, the taxpayer has submitted a Form 14039, police report, or similar statement indicating identity theft, the case will be resolved as taxpayer identified (IDT1).

IDTVA Specialty Functions cases are identified or categorized by "IDIX" where X = a digit from 1 to 9 depending on the function. See Exhibit 25.23.2-15, IDTVA IDRS Category Controls by Function, for additional details.

For the majority of cases, you will be able to work them without obtaining additional information from the taxpayer. If additional information is needed to resolve the case, refer to guidance in IRM 25.23.2.3, Identity Theft Claims - General Guidelines, and IRM 25.23.2.3.6, When to Request Additional Information to Support an Allegation of Identity Theft.

If you can work the case utilizing internal resources, do not request unnecessary information from the taxpayer.

If the account has RIVO involvement and a duplicate filing condition exists, a CP 36N or CP 36P transcript IDT8 case is generated. RIVO involvement is not a pre-determination of identity theft. All normal identity theft research per IRM 25.23.4.6.1, Required Research, must be performed. Refer to IRM 25.23.4.6.2.2, RICS-RIVO Involvement General Information and Research, for additional information.

Refer to IRM 25.23.4.8, Identity Theft (IDT) Common Number Ownership and Case Processing Determinations, prior to taking any action on the account. Once a determination of CN ownership has been made, document the determination in a CII case note and follow the appropriate case resolution process to correct all affected modules.

When a taxpayer is a victim of income related IDT and refund related IDT (invalid return present) for the same tax year, follow applicable procedures to resolve the invalid return and address any income not belonging to the valid taxpayer. The closing IDT indicator input will be based on the invalid return determination.

The table below provides IRM references for various account circumstances that may need to be addressed.

Account Circumstances

IRM References and Resources

(1) Address and Entity Changes (i.e., telephone number, filing status, etc.)

IRM 25.23.4.6.3, IDTVA Research, Verification, and Requests, Exhibit 25.23.4-21, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, IRM 25.23.2.3.7, When to Update the Victim’s Address, and IRM 3.13.5.42, Determining National change of Address (NCOA) Address Changes.

(2) Adoption Credit

Form 8839, Qualified Adoption Expenses, and IRM 21.6.3.4.1.25, Form 8839, Qualified Adoption Expenses.

(3) Affordable Care Act

For unprocessed returns or amended returns with Form 8962, Premium Tax Credit, or Form 8965, Health Coverage Exemptions, submitted by the valid SSN owner, follow procedures in IRM 21.6.3.4.2.12, Premium Tax Credit.When nullifying TC 150 returns for tax year 2014, or later years, the Shared Responsibility Payment (SRP) may be posted to the MFT 35. A separate adjustment on the MFT 35 account will be required to reverse the SRP. Use of the IAT Credit Transfer tool is required when reversing any credit applied from the MFT 30 account. This is identified by a TC 796 on the MFT 35 account and TC 896 on the MFT 30 account. Follow instructions in IRM 21.6.4.4.20.3.1, Shared Responsibility Payment Adjustments.

(4) American Rescue Plan Act (ARPA)

IRM 25.23.4.21, American Rescue Plan Act (ARPA) - General

(5) Combat Zone - C Freeze

IRM 21.6.2.4.2.3, Valid TIN Located - Taxpayer B - Posted First IDTVA Specialty Functions, also see IRM 5.19.10.6.2, Combat Zone Qualified Individuals and Areas, and IRM 5.19.10.6.3, Combat Zone Freeze Code.

(6) Decedent Returns

IRM 21.6.6.2.21.1, Updating the Entity on Decedent Accounts.

(7) Durable Power of Attorney

IRM 21.3.7.8.4, General Durable POA Authorizations.

(8) Earned Income Tax Credit Recertification Indicator (EITC) - Reversals

IRM 4.19.14.7(7), Recertification.

(9) Economic Impact Payment (EIP)

IRM 25.23.4.20, Economic Impact Payment (EIP) and Recovery Rebate Credit (RRC) - General.

(10) Erroneous Refunds

An erroneous refund is defined as "the receipt of any money from the Service to which the recipient is not entitled." This definition includes all erroneous refunds regardless of taxpayer intent or whether the error that caused the erroneous refund was made by the IRS, the taxpayer, or a third party.

IRM 21.4.5.5, Erroneous Refunds Categories and Procedures.

(11) Excess Collections - Moving credits to or from the Excess Collection File (XSF)

IRM 25.6.1.7.3, Excess Collection File (XSF) and Unidentified Remittance File (URF).

If the debit/credit is not posted or pending after 8 weeks, follow local procedures to contact IDTVA P&A to follow up with the appropriate site’s P&A.

(12) First-time Homebuyer Credit (FTHBC)

IRM 21.6.3.4.2.10, First-Time Homebuyer Credit.

(13) Form 2848, Power of Attorney and Declaration of Representative or Form 8821, Tax Information Authorization

Perform research to determine if the Form 2848 or Form 8821 has been processed. Refer to IRM 21.3.7.5.1, Essential Elements for Form 2848 and Form 8821.

If unprocessed, accept the completed form. Forward the form to the appropriate CAF unit for processing. See SERP Who/Where CAF Unit Addresses, Fax Numbers, and State Mapping for routing information.

(14) Form 3949-A turned Form 14039 in error

IRM 3.28.2.4, Initial Screening Criteria, for routing instructions.

(15) Fraudulent and/or Compromised POA

IRM 21.3.7.5.5.3, How to Report a Compromised or Potentially Compromised CAF Number.

(16) General POA

IRM 21.3.7.8.4, General Durable POA Authorizations.

(17) IDT Case Requiring Corrections

IRM 25.23.4.14, Identity Theft (IDT) Cases Processed Incorrectly.

(18) International Taxpayers

International taxpayers are those with an address that is not in the 50 states, District of Columbia, or an APO/DPO/FPO address. APO, DPO, and FPO addresses are considered domestic addresses.U.S. Territories and Possessions are treated as a foreign address (international case) for processing purposes (i.e., Form 14039 with a valid address in Puerto Rico, Form 1040-PR, etc.). See Exhibit 25.23.4-4, Identity Theft (IDT) Functional Routing and Referral Chart, for additional information.

(19) Letter Procedures Job Aids

Tools and Job Aids section of the IDTVA HUB.

(20) Manual Refunds

IRM 21.4.4.5, Preparation of Manual Refund Forms.

(21) Math Error Procedures

IRM 25.23.4.10.11, Identity Theft (IDT) - Setting the Math Error.

(22) Moving Refunds

IRM 21.5.2.4.23.10, Moving Refunds.

(23) Prisoner Cases (Incarcerated Taxpayers)

Confirmation of incarceration, current facility, and updated mailing addresses may be found by researching:

When available, use of the inmate Identification Number to conduct this research is recommended.

Government websites, such as the official Department of Corrections website for the state or the local inmate information search on the county website, as applicable. Determine the county by using the address provided by the taxpayer.

Public records websites, such as Public Record Center or Public Record Center - Inmate Search.

(24) Restricted Interest

Accounts requiring manual restricted interest computations will be referred to the IDTVA restricted interest specialist. See “IDTVA Restricted Interest Desk Guide” in the IDTVA HUB

Cases that may require restricted interest calculations include disaster claims, carryback/carry forward and combat zone claims.

(25) Statute Considerations

IRM 25.23.4.6.2.1, Statute Research.

(26) TOP Offsets

IRM 25.23.4.10.3.2, Identity Theft with TOP Offsets.

(27) Unfiled Returns

IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions.

(28) Unpostables

IRM 21.5.5.4.2, Resolving Unpostables.The UPTIN Histories Tool on IAT can be used to research and resolve unpostables. The tool is designed to assist users with input of histories on CC UPTIN.Unpostables on OARs must be corrected within 3 days of identification.

The list above may not include all actions required to resolve your case. Research and analyze each case to ensure complete and accurate resolution.

If a valid TIN is not located and the IDT return cannot be nullified, an IRSN will be assigned for the IDT (invalid) return(s). Refer to IRM 25.23.4.7, Non-Streamline Identity Theft (IDT) Case Processing, for additional information.

For all non-streamline case processing, the TIN-Related Problem Research Sheet is required. This research sheet is found on SERP under the IRM Supplements tab. The research sheet can also be completed using the aMend tool. Per Exhibit 21.2.2-2 , ACCOUNTS MANAGEMENT MANDATED IAT TOOLS, use of the aMend tool is mandatory when working IDT cases. Include a CII case note when a determination is made. Record all significant research actions and information. The information retained/recorded must be sufficient to support the actions taken on the case.

In situations where the aMend tool will not perform the necessary account adjustment, another IAT adjustment tool must be used.

If you are preparing the case for reassignment to another CSR/TE or to the IDT holding number, you may notate your research in the "Notes" section of the CII case in lieu of using the research sheets. The IDT holding number can be found on the Accounts Management Site Specialization Temporary Holding Numbers located on SERP.

If you are preparing the case to reroute to another function using CII, any linked cases, IDRS screen captures, and attached files do not print. If any of these items must be attached to the case, print the items using your local printer and manually associate the printed documents. See IRM 21.5.1.5.2(7), Cases Currently Assigned in CII, for additional information.

If the IDT claim cannot be supported based on the information received and your research, refer to IRM 25.23.2.6.6.3, Identity Theft Claims Submitted by Individuals Who Do Not Appear to be the Victim, for additional guidance.

A statute of limitation is a time period established by law to review, analyze, and resolve taxpayer and/or IRS tax related issues.

The Internal Revenue Code (IRC) requires that the Internal Revenue Service (IRS) will assess, refund, credit, and collect taxes within specific time limits. These limits are known as the Statutes of Limitations. When they expire, the IRS can no longer assess additional tax, allow a claim for refund by the taxpayer, or take collection action. The determination of statute expiration differs for assessment, refund, and collection.

Assessment Statute Expiration Date (ASED): The general rule is that an assessment of tax must be made within three years from the date a return is received. This includes increases to tax requested by the taxpayer and any additional tax increase identified by the IRS (i.e., AUR or Exam assessment). Additionally, the ASED must be considered when decreasing a posted credit. IDRS Command Codes (CCs) IMFOLT/IMFOBT and TXMODA will show ASED fields for IMF accounts.

A case is considered imminent when a tax increase is required and it is within 180 days of the valid TC 150, TC 976/TC 977 or unprocessed return. To prevent a barred statute assessment follow procedures in IRM 25.23.2.5, Statute Protection.

Invalid returns meeting streamline processing criteria do not require statute protection; however, other returns on the account may. Each return must be considered separately.

When following non-streamline procedures or reprocessing a valid return, the ASED must be considered when determining the appropriate actions. Refer to IRM 25.23.4.9, Statute Processing Considerations, and its subsections.

Refund Statute Expiration Date (RSED): The RSED is generally three years from the Return Due Date (RDD) for prepaid credits if a return was filed. Timely requesting an extension to file will extend the RSED. Payments are refundable after the RSED has expired when the claim was received within two years from the payment posted date. CCs IMFOLT/IMFOBT and TXMODA will show RSED fields for IMF accounts.Care must be taken to ensure the RSED has not expired before refunding an overpayment. Generally, the amount refunded is limited to the tax paid during the three years immediately preceding the filing of a return, plus any extension of time to file. If payments are being considered, a two year look back from the claim (i.e., Form 14039) received date must be conducted to identify which payments are available for refund or offset. See IRM 25.6.1.10.3.3.2, Limitations on the Amount of a Claim, and its subsections for additional information.See IRM 25.6.1.10.3.5, Claims for Credit or Refund – Taxpayers in Special Situations, and its subsections for procedures regarding claims for credit or refund from taxpayers that meet special situations such as financial disability, federally declared disaster area or significant fire, identity theft, etc.

The period of RSED limitations is not suspended due to identity theft.

Do not allow any overpayment of prepaid credits or subsequent payments to refund or offset if the RSED has expired. Review IRM 25.6.1, Statute of Limitations Processes and Procedures, for more information.

Refunds allowed outside of the statute of limitations are erroneous and require correction. For additional guidance on erroneous refunds refer to paragraph (9) below.

Collection Statute Expiration Date (CSED): The CSED is a time period established by law to collect taxes. The CSED is normally ten years from the date of assessment. CCs SUMRY, IMFOLT/IMFOBT, and TXMODA will show CSED fields for IMF accounts.Each tax assessment has its own CSED. The CSED dates will always reflect in chronological order. However, you must always look for additional Transaction Codes (TCs) or other conditions that may further extend the CSED. Listed below are examples of liability assessments and their transaction codes (TCs) that may further extend the CSED:

Transaction Code (TC) 150, Tax Assessed

TC 160, Manually Computed Delinquency Penalty

TC 166, Delinquency Penalty

TC 170, Computer Generated or Manually Assessed Estimated Tax Penalty

TC 176, Estimated Tax Penalty

TC 180, Deposit Penalty

You must consider all items in the statutes case processing charts below that apply to your case scenario. Utilizing the tables below will assist you in addressing all issues to make the taxpayer whole.

Each return on the module (valid and invalid) must be considered separately.

Stolen identity cases are exempt from normal statute processing. To that end, IDT cases do not truly have a CSED when it was established as the result of processing an invalid return on the module.

For ASED statute related issues and instructions, see the table below:

If

And

Then

(1) Tax increase for a TC 976/977 return is imminent,

More than 90 days remain before the valid return ASED expires,

A normal adjustment may be input on IDRS.

(2) Tax increase for a TC 976/977 return is imminent,

The valid return ASED on the CN account will expire in 90 days or less,

Complete Form 2859, Request for Quick or Prompt Assessment. Refer to IRM 25.23.4.9.1 IRM 25.23.4.9.2, Statute Imminent Assessments for IDT Cases, for additional information.

Use the AMA2859 tool to prepare Form 2859, Request for Quick or Prompt Assessment, when the ASED is less than 60 days. See the AMA SharePoint for additional information and User Guides.

AM IDT skilled employees are required to use AMA2859 to prepare Form 2859.

(3) The invalid return will be moved to an IRSN,

The ASED on the IRSN return will expire in 180 days or less,

Complete Form 2859, Request for Quick or Prompt Assessment. Refer to IRM 25.23.4.9.1, Statute Imminent Assessments for IDT Cases, for additional information.

Use the AMA2859 tool to prepare Form 2859, Request for Quick or Prompt Assessment, when the ASED is less than 60 days. See the AMA SharePoint for additional information and User Guides.

AM IDT skilled employees are required to use AMA2859 to prepare Form 2859.

(4) The invalid return will be moved to an IRSN,

The ASED has expired,

Refer to IRM 25.23.4.11, Non-Streamline - Determining When Specific Year Account Information Must Be Moved, and its subsections for additional information

(5) The ASED has expired,

The assessment was not timely OR tax was erroneously abated,

The assessment is barred. See IRM 25.23.4.9.2, Addressing Barred Assessments on Identity Theft (IDT) Cases, for account correction and reporting procedures.

(6) Recovery of an erroneous refund before the ASED expires,

You may identify an erroneous refund created by someone else.

The refund was issued to the valid taxpayer,

See IRM 25.6.1.10.2.3, Remedies for Recovering an Erroneous Refund.

(7) An erroneous abatement occurred after the ASED expired,

The credit is still on the account for the valid taxpayer,

Send the credit to the Excess Collection File (XSF) per IRM 25.6.1.10.2.3.1, Recovery of Assessable Erroneous Refunds.

(8) Recovery of an erroneous refund,

The refund was issued to the invalid taxpayer,

Lost refunds on an IDT return should be moved to general ledger (GL) 1545 account. For additional guidance refer to IRM 25.25.4.6, Reversing Identity Theft Lost Refunds.

For RSED statute related issues and instructions, see the table below:

If

And

Then

(1) Identity theft case includes tax offsets,

Follow procedures in IRM 25.23.4.10.3.1, Identity Theft with Tax Offsets.

(2) Identity theft case includes TOP offsets,

Follow procedures in IRM 25.23.4.10.3.2, Identity Theft with TOP Offsets.

(3) When following Category D erroneous refund procedures,

The Erroneous Refund Statute Expiration Date (ERSED) is considered,

Refer to IRM 21.4.5.15.1.1, Statute of Limitations Category D Erroneous Refunds IRC 6532 (b) ERSED.

For CSED statute related issues and instructions, see the table below:

If

And

Then

(1) Offset reversal needed to address the taxpayer’s liability,

Offset resulted from an overpayment of the invalid return,

Follow procedures IRM 25.23.4.10.3, Identity Theft with Offsets.

(2) Balance due module is a Married Filing Joint (MFJ) account,

Offset was applied from a module that does not reflect both spouses’ names,

One Return IDT - MFJ Scheme determination for TY 2019. The secondary taxpayer filed Form 14039, because their refund from their TY 2022 return was offset to the MFJ balance due.

Follow procedures IRM 25.23.4.10.3, Identity Theft with Offsets.

(3) TAS hardship case(s),

Requests for returning an offset to the originating module,

Follow procedures IRM 25.23.4.10.3.1, Identity Theft with Tax Offsets.

Statute clearing identity theft (IDT) cases is not limited to the filing season. Statute cases identified for review will be updated to Priority Code (PC) 8 and distributed to employees for statute clearing.

The cases are identified by the posted Assessment Statute Expiration Date (ASED). This date may be incorrect due to the filing of an invalid return.

A tax return filed on or before the return due date is considered timely filed. The ASED will be calculated using the return due date. Late filed returns will have an ASED based on the return received date. To determine the correct ASED for a late filed return, add 3 years to the received date.

Review the account for unprocessed returns:

If the taxpayer has a history of filing jointly or mentions a spouse or filing jointly in their correspondence, conduct the research for both Taxpayer Identification Numbers (TINs).

Correspondence Imaging Inventory (CII): Review case images for unprocessed tax returns related to the case.

IDRS: Research Command Codes (CCs) TXMOD, IMFOL, and TRDBV for tax returns posted as TC 976/977 or to MFT 32.

Employee User Portal (EUP): This tool can be used to view e-filed tax returns.

Starting in processing year 2026, paper filed tax returns, referred to as Scanned Paper Returns (SPR), may be scanned and retrieved using EUP/MeF. See IRM 3.14.2.6.1.1.2, Document Locator Numbers (DLN), for additional information.

Identify the case scenario:

Single Return with TC 150: TC 150 present with no TC 976/977 or unprocessed returns located through research

Single Return No TC 150: No TC 150 present and one TC 976/977 or unprocessed return located through research.

Multiple Returns with TC 150: TC 150 present with a TC 976/977 or unprocessed return located through research (may be multiple returns)

Multiple Returns No TC 150: No TC 150 and multiple TC 976/977 or unprocessed returns located through research

MFT 32: A return has posted to MFT 32 for the tax year in question (there may be a TC 150 on the MFT 30 side)

Non Return: A return has not been received for the TIN (may be a dependent or income related IDT claim with no filing requirement)

Refer to the table below to statute clear the case based on the applicable scenario:

If

And

Then

(1) Single Return

TC 150 present

There is no statute issue. Proceed to paragraph (6).

(2) Single Return

No TC 150 present

Determine the ASED of the unprocessed return:

If more than 180 days remain before the ASED expires, there is no statute issue. Proceed to paragraph (6).

If the ASED is within 180 days of expiration, the return is imminent. Proceed to paragraph (8).

If the ASED has expired, proceed to paragraph (9).

(3) Multiple Returns

TC 150 present

Math verify the TC 976/977 or unprocessed return.

Calculate the total tax posted to the module, considering the TC 150 and any TC 29X or TC 30X posted or pending adjustments.

Compare the total tax on the TC 976/977 or unprocessed return to the total tax calculated for the module:• If the total tax calculated for the module is more than the total tax on the TC 976/977 or unprocessed return, and there is no credit decrease, there is no statute issue. Proceed to paragraph (6).

Non-streamline procedures require the total tax for the invalid return to be moved. When considering the total tax on the module, do not include any amount of tax attributable to the invalid taxpayer when computing the total tax on the module.

(4) Multiple Returns

No TC 150 present

Math verify the tax returns.• If the total tax for all returns is zero, there is no statute issue. Proceed to paragraph (6).• If the total tax for one or more returns is more than zero, proceed to paragraph (7).

(5) MFT 32 – Single Return

No TC 150 present

Math verify the tax return posted to MFT 32.• If the total tax is zero, there is no statute issue. Proceed to paragraph (6).• If the total tax is more than zero, proceed to paragraph (7).

(6) MFT 32 – Multiple Returns

TC 150 present

Math verify the tax returns.

Calculate the total tax posted to the MFT 30 module, considering the TC 150 and any TC 29X or TC 30X posted or pending adjustments.

Compare the total tax on the return posted on the MFT 32 module:• If the total tax calculated for MFT 30 is more than the total tax on the return posted to MFT 32 module and there is no credit decrease, there is no statute issue. Proceed to paragraph (6).

Non-streamline procedures require the total tax for the invalid return to be moved. When considering the total tax on the module, do not include any amount of tax attributable to the invalid taxpayer when computing the total tax on the module.

(7) MFT 32 – Multiple Returns

No TC 150 Present – Includes an Unprocessed Return in the CII case images

Math verify the tax returns.

Calculate the total tax on the unprocessed return.

Compare the total tax on the unprocessed return to the total tax for the return posted to the MFT 32 module:• If the total tax calculated for either return is more than zero, proceed to paragraph (7)

(8) No Return

blank

There is no statute issue. Proceed to paragraph (6).

When you have determined there is no statute issue, take the following actions:

Mark the CII case as statute cleared.

Verify the CII case PC is 8. Update, if necessary.

Reassign the case to the number of your site. See the Statute Search Site Reassignment Numbers on the IDTVA HUB,

After reassigning the case, update the IDRS case control activity to "ASMTxxxxxx" where "xxxxxx" is the date of the valid ASED.

The valid return received date is 10/15/2023. The valid ASED is 10/15/2026. The IDRS case control activity would be "ASMT101526" .

When there is a potential statute issue (tax increase or credit decrease), make an identity theft determination following normal procedures. Then refer to the following list to determine if the valid ASED is imminent:

If an identity theft determination cannot be made prior to expiration of the ASED, proceed to paragraph (9).

If the valid ASED expires in 180 days or less, proceed to paragraph (8).

If the valid ASED expires in more than 180 days, follow procedures in paragraph (6) to update the CII case.

If the valid ASED has expired, proceed to paragraph (10).

When you have determined the ASED is imminent and a tax increase or credit decrease is required, update the CII case to PC 7. Refer to the table below for imminent assessment prioritization:

When a non-streamline determination is made, the tax associated with the invalid return will be moved to an Internal Revenue Service Number (IRSN). When calculating the tax increase for the Common Number (CN), treat the module balance as zero to prevent a barred assessment.

ASED Expiration

Order of Priority

(1) Within 3 days

Immediate Action Required: Take action to protect the account within 1 calendar day.

A quick assessment is required.

(2) 4 – 14 days remain

Expedited Action Required: Take action to protect the account within 3 calendar days.

A quick assessment is required.

(3) 15 – 90 days remain

Urgent Treatment Required: Take action to protect the account within 10 calendar days.

A quick assessment is required.

(4) 91-180 days remain

Priority Treatment Required: Take action to protect the account within 21 calendar days.

Assessments made within this timeframe can be input with a normal adjustment.

Proceed to IRM 25.23.4.9.1 , Statute Imminent Assessments for IDT Cases, to protect the account.

When an identity theft determination cannot be made prior to expiration of the ASED, refer to the table below to protect the account:

If

And

Then

(1) Single Return

No TC 150

Math verify the return.

If necessary, recompute tax and credits.

Determine the ASED of the return.

Complete Form 2859 including any applicable penalties.

The identity theft determination will be made after the assessment posts.

(2) Multiple Returns

TC 150 present

Math verify the return.

If necessary, recompute tax and credits.

Determine the ASED of the TC 976/977/unprocessed return.

Do not consider the posted amount of tax on the module. Complete Form 2859 for the total tax as math verified, including any applicable penalties.

The identity theft determination will be made after the assessment posts.

Tax and penalties on the account can be abated, as needed, once an identity theft determination has been made.

(3) Multiple Returns

No TC 150 present

Math verify the returns.

If necessary, recompute tax and credits.

Determine the ASED for both returns.• If both ASEDs have not expired, use the earliest ASED for your assessment. Add the total tax for both returns together. Complete Form 2859 for the total tax as math verified, including any applicable penalties.• If only one ASED has not expired, use that ASED and assess only the tax and penalties attributable to that math verified return for your assessment.

The identity theft determination will be made after the assessment posts.

Tax and penalties on the account can be abated, as needed, once an identity theft determination has been made.

(4) MFT 32

TC 150 present

Math verify the return posted to MFT 32.

If necessary, recompute tax and credits.

Determine the ASED of the return posted to MFT 32.

Do not consider the posted amount of tax on the MFT 30 module. Complete Form 2859 for the total tax on the return posted to MFT 32 as math verified, including any applicable penalties.

The identity theft determination will be made after the assessment posts.

Tax and penalties on the account can be abated, as needed, once an identity theft determination has been made.

(5) MFT 32

No TC 150 present

Math verify the returns.

If necessary, recompute tax and credits.

Determine the ASED for both returns.• If both ASEDs have not expired, use the earliest ASED for your assessment. Add the total tax for both returns together. Complete Form 2859 for the total tax as math verified, including any applicable penalties.• If only one ASED has not expired, use that ASED and assess only the tax and penalties attributable to that math verified return for your assessment.

The identity theft determination will be made after the assessment posts.

Tax and penalties on the account can be abated, as needed, once an identity theft determination has been made.

Proceed to IRM 25.23.4.9.1 , Statute Imminent Assessments for IDT Cases, to protect the account.

When you have determined a tax increase or credit decrease is barred due to the expiration of the ASED, follow procedures in IRM 25.23.4.9.2, Addressing Barred Assessments on Identity Theft (IDT) Cases, to take the appropriate actions to correct the account and address the barred assessment.

Return Integrity Compliance Services (RICS) is a Business Unit within Taxpayer Services (TS) and is responsible for protecting public interest by improving the IRS's ability to detect and prevent improper refunds and helping taxpayers understand the refundable tax credits for which they are eligible. Return Integrity Verification Operations (RIVO) is a function within RICS that identifies and dispositions returns which display evidence of patterns of fraud including identity theft (IDT) as well as identify potentially false returns and verify as-reported wage and withholding accuracy.

Selected returns contain characteristics considered questionable for potential identity theft or first-person fraud. The presence of RIVO indicators should not be interpreted as a pre-determination of identity theft.

In most instances, your case should be worked following normal identity theft research and identity theft determination requirements. Research must be performed to make an identity theft determination. The RIVO indicators on the account may assist you with making the determination.

Cases with RIVO involvement will be worked in the category in which it was created. For example: An IDT8 is only a duplicate filing condition where a CP 36N or CP 36P is generated, A Form 14039 will be assigned as an IDT1 whether there are RIVO indicators on the account or not.

The extent of your research depends upon the type of case you have, whether it is a duplicate filing condition or a taxpayer initiated claim (i.e., Form 14039 claiming identity theft, etc.). Every specific scenario cannot be included. This section is meant to provide an overview of RIVO codes and their definitions to assist you in determining what is occurring on the account. Your research should take into account the presence of RIVO indicators and may take you in a particular direction.

Taxpayer Protection Program (TPP) Involvement: Through the TPP process, returns are screened for characteristics of potential identity theft. A questionable return selected for potential identity theft requires the taxpayer to authenticate their identity and verify the return, if they filed the tax return in question. The presence of TPP indicators on an account does not always indicate identity theft and is based on taxpayer response or non-response. Depending upon the selection, the taxpayer will be provided the option to call the TPP telephone line, verify online, or require them to authenticate at a TAC office. If the taxpayer does not respond to the TPP letter, the return will be purged to MFT 32 by RICS through a batch process. It is important to review the return posted on MFT 32 to determine whether it may be a valid return. Once the TPP issue is resolved, returns continue through fraud filters. Refer to the table below for a listing of transactions that can be seen on an account with TPP involvement:

Account Indicator(s):

And

Definition(s)

(1) With or without a posted TC 150,ANDUnreversed TC 971 AC 124 with the DLN of the questionable return listed in the MISC field,

The selected return is prevented from posting and will show as unpostable UP 126 RC 0. A TPP letter is issued requiring the taxpayer to authenticate their identity.

(2) TC 150 is posted,ANDUnreversed TC 971 AC 129 with the DLN of the questionable return listed in the MISC field

The return was identified after the initial processing. As a result, the return(s) could not unpost with UP 126 RC 0. In this case, normal TPP authentication and verification of the return(s) is still required. The module may contain an unresolved -R freeze or P- freeze, resulting in a hold on the overpayment.

(3) TC 150 and/or TC 976 is posted,ANDTC 972 AC 124 with a DLN match in the MISC field,

TC 971 AC 123 with MISC field "TPP RP" is NOT present,

In response to a TPP letter, the taxpayer authenticated their identity and verified the return filed is valid.

History on AMS will reflect the taxpayer resolved the TPP issue by visiting a TAC office or by calling the TPP phone line. If the taxpayer authenticated their identity online, AMS will not reflect any history information.

(4) TC 150 and/or TC 976 is posted,ANDTC 972 AC 124 with a DLN match in the MISC field,

TC 971 AC 123 with MISC field "TPP RP" is present,

RIVO Resolution - Batch Process:

Information from internal or external sources resulted in the return(s) being deemed valid. RIVO generally will resolve these case types within the first two (2) weeks of the return going unpostable.

(5) TC 972 AC 129 is present,ANDThe MISC field is populated with Last 6 DLN underscore,

MISC field also contains in whole or in part the verbiage "NONIDT" ,

The taxpayer has authenticated their identity and verified the return filed is valid in response to the TPP letter.

(6) MFT 32 is present,ANDTC 972 AC 124 and TC 971 AC 111 present with matching DLN in the MISC field,

TC 971 AC 111 DOES NOT contain "88888" in the DLN,

The taxpayer responded to the TPP letter and claimed identity theft.

History on AMS will reflect the taxpayer resolved the TPP issue by visiting a TAC office or by calling the TPP phone line. If the taxpayer authenticated their identity online, AMS will not reflect any history information.

(7) MFT 32 is present,ANDTC 972 AC 124 and TC 971 AC 111 present with matching DLN in the MISC field,

Due to timing issues, reversal of the TC 972 AC 124 may not be viewable.

TC 971 AC 111 contains "88888" in the DLN,

RIVO Resolution - Batch Process:

The suspense period expired and the taxpayer did not respond to the TPP issue. As a result, the return is deemed as identity theft.

(8) No MFT 32 is present,ANDthere is a TC 972 AC 124 with a MISC Field DLN and no TC 150 posted with a matching DLN,AND

The return on CC TRDBV may show "Archived" or "Deleted" ,

The taxpayer provided a response to the TPP letter and claimed identity theft,OR RIVO resolved the issue through the batch process due to no response, the suspense timeframe expired, and the return is for a prior year (more than the current year or immediate prior year).

(9) TC 972 AC 129 is present,ANDMISC field contains the Last 6 digits with DLN IDT,ANDLast 6 digits of the DLN match the posted TC 150,

The TC 150 may have been backed out by RIVO. However, timing issues may create delays preventing it to appear on IDRS,

The taxpayer has responded to the TPP letter and claimed identity theft.

For possible fraud selections, returns are verified against third party data to determine whether or not first-person fraud has been committed. At this point the IRS may reach out to the taxpayer in order to verify income.

The tablet below provides the definition of various RIVO markers that will generate a CP 36 "N" or CP 36 "P" - IDT8 duplicate filing case.

The presence of RIVO indicators should not be interpreted as a pre-determination of identity theft. Complete research must be performed.

Account Indicator(s)

Definition(s)

(1) TC 971 AC 044

A CP 05 - We're Holding Your Refund, was issued.

(2) TC 971 AC 134

Income verification:

The module may contain a -R Freeze.

The presence of a TC 971 AC 134 doesn’t automatically generate a letter or notice. Therefore, further research is required to determine if Letter 4464C or CP 05 was issued.

(3) TC 971 AC 617

RIVO initiated Third Party Contact notification.

(4) TC 971 AC 199

Returns deemed questionable or false, RIVO will input a TC 971 AC 199 to place a "hard freeze" on the module.

(5) 971 199 MISC "AMWEX60033 REFEFDS"

A return was determined as fraud.

TC 971 AC 134 may be present on these accounts with various MISC fields. Refer to the table below for definitions.

The presence of RIVO indicators should not be interpreted as a pre-determination of identity theft. However, depending upon the indicator it may assist you in making a determination of identity theft or not.

TC 971 AC 134 MISC Field:

Definition(s):

(1) CANT VERIFY

Non identity theft process:IRP data is not available and verification of income is required. The return in question will be held and rerun against IRP data until it is available or after it is determined all data is loaded for the processing year and released if verified ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or it moves into the next treatment phase if not verified ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

(2) CANT VERIFY IDTFP

Non identity theft process:The taxpayer authenticated their identity and confirmed the return filed is valid. Identity theft is not considered in this case. However, IRP data is not available and verification of income is required.

(3) FULL YR PRN

Placed on the module when an incarcerated individual is identified as a prisoner for eleven (11) consecutive months.

(4) RRPNONIDT

The account will reflect a posted TC 971 AC 052. The return was not selected by Return Review Program (RRP) for potential ID theft.

(5) BOGUS EIN

Placed on the module when any income document on the return is suspected as potentially fraudulent submission.

(6) POTENTEF

Placed on the module if the BMF account shows characteristics of a fabricated entity.

(7) BKLD OFFSET

Placed on the module when a RICS account review may result in an offset reversal.

(8) BKLD COMINGLED

Funds (refunds) are received/returned but, the dollar amount applied cannot be determined or the account was previously adjusted (TC 29X) and TC 841 posted. These funds (refunds) are applied to the general ledger account.

Proceed to IRM 25.23.4.8, Identity Theft (IDT) Common Number (CN) Ownership and Case Processing Determinations, for additional processing guidance.

For instructions related to research, verification, and requests, see the table below:

If

And

Then

(1) The TC 976/977 was not processed,

Refer to IRM 25.23.4.6.5.2, Unprocessed Documents.

(2) The SSN owner’s return posted as TC 976,

An election was made for the Presidential Election Campaign Fund (PECF),

Prepare a dummy Form 1040-X. Refer to procedures in IRM 21.6.7.4.12, Presidential Election Campaign Fund (PECF).

(3) The SSN owner’s return posted as TC 976/977 bypassed DIF scoring,

Research for DIF scoring criteria per IRM 21.5.2.4.23.6, Discriminant Index Function (DIF) SCORE or CLASSIFICATION “Send Return(s) to Examination for Review”. DO NOT refer Form 1040-EZ, Income Tax Return for Single and Joint Filers With No Dependents.

Cases routed for DIF score are controlled to Examination and placed in suspense until it is returned by the Examination Classifiers or by the current established expiration period (e.g., 180 days). See IRM 21.5.1.5.1, CII General Guidelines, for additional information.

All adjustment actions must be input prior to referring to Exam.

(4) The return is a statute year,

Action is required to prevent a barred assessment/statute,

Refer to IRM 25.23.2.5, Statute Protection, IRM 25.6.1.13, Barred Assessments/Barred Statute Cases, and IRM 25.6.1.5, Basic Guide for Processing Cases with Statute of Limitations Issues, for additional guidance.

A return must be considered valid for the ASED to apply. Refer to IRM 25.6.1.6.14, Criteria for Establishing a Statute of Limitations Period.

(5) You discover any errors when you math verify the valid return,

See IRM 25.23.4.6.5.3, Missing Information, to determine the appropriate actions to take.

(6) The valid taxpayer may have a filing requirement for the impacted year,

The valid taxpayer has not filed a return,

See IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions.

(7) If the impacted year is tax year 2018, 2019, or 2020,

Any Economic Impact Payment (EIP) was issued,

See IRM 25.23.4.20, Economic Impact Payment (EIP) and Recovery Rebate Credit (RRC) - General.

(8) The CN entity reflects an incorrect (or invalid) address,

Conduct research using information available on CII, AMS, and IDRS to determine an appropriate address for the CN owner.

The address included on the most recent return received may not be the most current even if determined to be a valid return. Thorough research is necessary to determine the appropriate address to prevent issuance of correspondence to an incorrect address. IDT skilled employees are encouraged to use their best judgment in identifying the correct address and must clearly document their research and reasoning when it is determined the most appropriate address is not the address on the valid taxpayer’s correspondence or most recent return.

If you are unable to identify the appropriate address through internal research, follow procedures in IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written), to attempt to contact the taxpayer by phone. If the taxpayer confirms the correct address, document the information in a CII case note. Do not send a letter requesting confirmation of the correct address if attempts to contact the taxpayer by phone are unsuccessful. Document attempts to contact the taxpayer and proceed to step (3). If a phone number is not available, proceed to step (3).

If you were unable to determine the appropriate address through internal research and were unsuccessful in your attempts to contact the taxpayer by telephone, update the CN entity using the address from the following (to be applied in the order listed):

Form 14039, Police Report, or Correspondence, unless a current year tax return determined to be valid has been received more recently. If a valid current year tax return has been received more recently, use the address on the valid return.

Address found on CC IRPTR for the current year associated with income determined to belong to the valid taxpayer.

Address found on the most recent prior year return determined to be valid.

(9) Form 4547, Trump Account Election(s), is included with the valid return,

Follow local procedures to contact the IDTVA P&A Trump Accounts coordinator via secure email using the subject line: Forwarded for Processing (or similar). Attach Form 4547 as a .pdf.

Document Form 4547 was forwarded for processing in a CII case note.

(10) The taxpayer has questions about Trump Accounts,

Refer to Exhibit 25.23.4-25, Closing Letter Paragraph Selections, for specific guidance.

(11) The taxpayer reports an unknown individual established a Trump Account for their dependent ORForm 4547, Trump Account Election(s), is included with the invalid return,

Prepare and email Form 4442 using the subject line: Trump Account (or similar) to ITVA HQ. Document the scenario in a CII case note and/or on Form 4442. Attach Form 4442 to your CII case. Suspend the case awaiting a response from ITVA HQ. Upon receipt, the account will be researched. A response on how to address the account will be received within 7 business days.

To ensure all identity theft issues have been identified, complete case analysis (CCA) is required on all identity theft cases potentially impacting tax administration, including:

Refund related,

Income related, and

Dependent related

CCA includes but is not limited to the following:

Research

Description

Tax Years

Conduct a cursory review for apparent evidence of unresolved IDT issues.

Prior Years - A minimum of three prior years. Continue in one-year increments until no indications of identity theft are found.

Subsequent Years - All years after the year identified for the case.

The SSN owner filed for the first time in 2023. A review of the account indicates returns were filed for tax years 2021 and 2022. While the taxpayer did not include the tax years 2021 and 2022 on the Form 14039, these years must be fully researched for potential IDT issues.

The SSN owner claimed identity theft for tax year 2022. A review of the account indicates there is also identity theft for tax year 2019. The look back rule applies again by reviewing tax year 2018. If tax year 2018 is not impacted, no further look back is required.

Documents

Do not assume the individual filing the identity theft claim is the true owner of the Common Number (CN). Consider:

All information received,

Account research conducted, and

Additional information available

An invalid return could include information that is consistent with the taxpayer’s filing history. Refer to IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, for additional items to review to prevent the mishandling of an IDT case.

Compliance

If there is Compliance involvement and a determination of IDT for the same year:

Reassign all years.

Do not issue a letter to request additional information.

Do not perform any account adjustments, credit transfers, etc.

Dependent

Dependent related IDT issues may be IRS identified when:

Misuse of a TIN occurs on a return determined to be invalid.

Refer to IRM 25.23.4.8.4, Dependent Related Identity Theft (IDT) - General, for additional information.

IP PIN

Determine if the taxpayer is already enrolled in the IP PIN program to identify information that may need to be provided to the taxpayer, such as:

Opt in methods

Issuance of the IP PIN

Opt out

When resolving accounts identified through completion of required research for the look back period, work:

Tax years where IRPTR data is still available, and the module is not in retention.

Tax years where IRPTR data is not available, but the module is not in retention due to current account activity (i.e., balance due, etc.)

Tax years impacted by income related IDT with or without a filed return, TDI, ASFR, or Exam SFR issue.

Do not adjust modules in retention, including tax years listed on Form 14039, unless:

Reversing a tax offset will create a balance due, or

It is necessary to resolve the taxpayer’s issue.

Include a CII case note indicating CCA was performed and the results of that research.

Invalid/Valid per IRPTR Data, lost refund. CCA completed - No additional impacted years.

Invalid/Valid per MFJ Refund Scheme. No lost refund. Completed required account research - Additional years impacted - refer to linked CII case(s).

Invalid/Valid per IRP Data. Lost refund. Account research completed as required - No additional years impacted.

Any tax year identified through the CCA process must be addressed using the appropriate indicator for the case type. Refer to the table below:

When the taxpayer does not list or otherwise identify the tax year(s) in their claim, impacted tax years will be marked using the CCA literal that best matches the circumstances.

Case Type

Indicator

Details

(1) Taxpayer Identified - Affecting tax administration

TC 971 AC 501

Each impacted year identified by the taxpayer on the claim, police report, or correspondence will be marked with TC 971 AC 501 using an appropriate MISC field literal.

Refund Related (invalid return): Additional impacted years identified through CCA will be marked with TC 971 AC 501 using MISC field: REFCCA

Invalid returns reflecting a balance due will also be marked with TC 971 AC 501 using MISC field: REFCCA.

Income Related: Additional impacted years identified through CCA will be marked with TC 971 AC 501 using MISC field: ICMCCA.

IRM 25.23.2-2, IMF Only TC 971 AC 501 — Taxpayer Initiated Identity Theft Case Closure (Tax-Related) - TC 971 AC 501.

(2) Taxpayer Identified - Not affecting tax administration

TC 971 AC 504

Income Related: Each impacted year identified by the taxpayer on the claim, police report, or correspondence will be marked with TC 971 AC 504 using an appropriate MISC field literal.

Income Related: Additional impacted years identified through CCA will be marked with TC 971 AC 504 using MISC field: ICMCCA.

Non-Tax-Related: The account will be marked with TC 971 AC 504 using an appropriate MISC field literal. Only one indicator will be placed on the account. Refer to IRM 25.23.2.8.1.1, TC 971 AC 504 with Miscellaneous Field Codes ACCT, ACCT-M, BOTH, BOTH-M, EMPL, EMPL-M, ICMCCA, NKI or NKI-M.

See Exhibit 25.23.2-4, IMF Only TC 971 AC 504.

(3) IRS Identified

TC 971 AC 506

Each impacted year will be marked with TC 971 AC 506 using an appropriate MISC field literal.

See Exhibit 25.23.2-8, IMF Only TC 971 AC 506 — IRS Determined Tax-Related Identity Theft Case Closure.

(4) Dependent Related IDT

TC 971 AC 528

The account (ENMOD) will be marked with TC 971 AC 528 using MISC Field: WI IP DEPND. Use January 1st of the current year for the Secondary Date to signify the processing year.

Form 14039 is filed to report the taxpayer suspects someone may be using their name and SSN to work and file taxes. The taxpayer says they were unable to file their TY 2019 return, because a return is already on file. The taxpayer explains that they began working in 2019 and this is their first time filing. Completion of CCA results in the discovery of returns meeting streamline criteria filed for TY 2017 and 2018. Further research results in the identification of income earned under the taxpayer’s SSN for TY 2014-2016. The taxpayer was not of age to work during those years. There are no returns on file or Compliance issues for TY 2014-2016. TY 2019 will be closed with TC 971 AC 501, because the taxpayer was determined to be a victim of identity theft affecting tax administration and listed this year on Form 14039. TY 2017 and 2018 will be closed with TC 971 AC 501 REFCCA, because the taxpayer filed Form 14039 and was determined to be a victim of identity theft impacting tax administration for these years through CCA. TY 2014-2016 will be closed with TC 971 AC 504 ICMCCA input for each year, because the income related identity theft issue does not affect tax administration, and the tax years were not provided by the taxpayer.

Cases created as a result of identification through CCA are to be worked, regardless of age, to ensure the taxpayer’s identity theft issue is fully resolved without unnecessary delays.

Before you can proceed with resolving a case, there may be instances when you will need to take the following actions:

Submit unprocessed returns to SP for processing

Refer to guidance under IRM 25.23.4.13.1, Identity Theft (IDT) Expedite Operations Assistance Requests (OARs) - (Cases that Meet Economic Burden Criteria 1-4 and Contain Unprocessed Original Returns; TC 976 Documents) - Austin IDTVA-A ONLY, if cases meet TAS economic burden criteria 1-4.

Order returns/documents only when it is necessary for case resolution

For IDT1 cases originally established as IDT3 cases, all internal research must be completed in an effort to make an IDT determination prior to ordering documents. To prevent delays in resolution, only order the document when it is necessary to make a determination of IDT.

Request missing schedules/forms and/or signatures from the TP

IRM 25.23.4.6.5.1, Ordering Documents

IRM 25.23.4.6.5.2, Unprocessed Documents

IRM 25.23.4.6.5.3, Missing Information

Requesting documents from files may result in significant delays in case resolution. To prevent unnecessary delays, verify the document you are requesting is needed to make a determination and/or correct the account. Complete all required account research prior to ordering the document. You may find the information available in CII images, AMS history items, and IDRS Command Codes (TRDBV, EUP/MEF, IRPTR, IMFOLR, NAMES, etc.) is sufficient to make a CN ownership determination, verify nullity criteria is met, or determine the case is a MXEN or IJE issue.

Starting in processing year 2026, paper filed tax returns, referred to as Scanned Paper Returns (SPR), may be scanned and retrieved using EUP/MeF. See IRM 3.14.2.6.1.1.2, Document Locator Numbers (DLN), for additional information.

If the return and/or other documentation is not attached to your case and is not available in another CII case, order the document only if it is necessary to resolve the case. The CSR/TE resolving the IDT case will order the document. A document may be necessary, if any of the following conditions are met, unless an exception applies:

No information exists on CC TRDBV for the duplicate return and/or schedules filed

No income information is available on CC IRPTR

The case requires routing to Automated Underreporter (AUR) or Exam

The case is a true "MXEN" case

Returns meeting No Move criteria or account move conditions requiring use of Form 12810, Account Transfer Request Checklist, do not need to be ordered to resolve the account. Refer to IRM 25.23.4.11.2, Tax Year Account Move Conditions, for additional information.

The case is a Default True Scrambled SSN Case

A non-streamline case

Returns meeting No Move criteria or account move conditions requiring use of Form 12810, Account Transfer Request Checklist, do not need to be ordered to resolve the account. Refer to IRM 25.23.4.11.2, Tax Year Account Move Conditions, for additional information.

A CP 36I was generated, but the Form 14039 was not scanned to the CII case

Some CP 36I cases may not have the documents scanned to the case by the time you are ready to work your case. If you have a CP 36I case that is less than 30 days old, hold the case in your inventory to allow adequate time for the return to appear on CII, unless your research determines the return and any additional information/documentation are not necessary. Also leave a case note on CII/AMS "Awaiting CP 36I scanned docs" , or similar remarks. The decision to order the documents should be made on a case by case basis depending on other research and analysis conducted that assists you in making a correct CN determination. Having the return and Form 14039 available may provide additional information pertinent to your case.

Because an external data breach return could have identical or similar information, you may need to order missing documents to determine if the TP has indicated they were the victim of a breach. This information may have been included on the Form 14039. Also refer to IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview and IRM 25.23.4.8.2.4, Identity Theft (IDT) with External Business/Preparer Data Breach Involvement.

The Form W-2, Wage and Tax Statement, is missing and wages and withholding needs to be verified per paragraph (11) of IRM 21.6.3.4.2.2, Withholding (W/H) Tax Credit

The return is missing schedules and/or required forms

The return is filed under an ITIN and reports wages

The taxpayer is deceased and you need Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, or court documents to issue a refund

You suspect that the return is for another taxpayer with a valid SSN, but cannot locate the other SSN on NAMEI/NAMES

You suspect that the return is for another tax year based on your research, but cannot validate this without the return

CSRs performing the resolving actions on a case should determine if additional information (which includes the Form 14039) is needed to make a determination of CN ownership. If enough information has been received or is available through internal research, work to resolve the case to completion. Requesting unnecessary information will delay the processing of the case.

If the case meets CAT A or Discriminant Index Function (DIF) scoring criteria, per IRM 21.5.2.4.23.6, Discriminant Index Function (DIF) SCORE or CLASSIFICATION "Send Return(s) to Examination for Review", the return must be ordered.

When a refund is due, do not order the return only to verify the signature. If the information has been transcribed on TRDBV, the signature should have been validated during processing. Assume the return had a valid signature and continue processing. In addition, do not order the return if the entity information is not present on TRDBV. If it was not transcribed, the address and name matched the information on MF. If you determine through additional research the signature is needed for other purposes and/or the entity information is incorrect, order the return.

If reprocessing a return and research indicates prior filing by the spouse, see IRM 21.6.7.4.5, Multiple Uses of Taxpayer Identification Numbers - TRNS36F (DUPTIN Filing Condition), for additional information.

If you do not receive the return within 30 days of the first request, submit a second CC ESTAB request. Refer to IRM 21.6.7.4.4.1(5), CP 36 (DUPF) - Control, for information about charge outs and Special Search requests if you have not received the return within 30 days of your second request.

While working IDT cases, you may identify unprocessed returns that must be addressed. For purposes of IDT resolution, a return posted with a TC 977 that has been scanned as a CII image will be considered unprocessed. IDTVA screeners will receive unprocessed returns from Submission Processing (SP) and/or Statutes that have indications of IDT (i.e., Form 14039, similar statements or “Identity Theft” is notated on the return, etc.). See IRM 25.23.4.6.5.2.1, Unprocessed Statute Returns or Transcripts (IDTVA Screeners Only), for specific procedures. For Compliance IDT cases, an original return with no TC 976/977 posted may be received from the referring Compliance Function.

Research to determine if the return has been processed. See the chart below for additional guidance.

If

And

Then

(1) There is a TC 976 present on the account,

The TC 976 is for the return in the case,

The return does not need to be sent to SP for processing.

(2) There is a TC 976 present on the account,

The TC 976 is not for the return in the case,

Search CII for the return associated with the posted TC 976, and link any related cases.

For any return that does not have a posted TC 976, follow the procedures throughout the remainder of this IRM, beginning with paragraph (3).

(3) There is no TC 976 present on the account,

The return is present on CII or is an original return from a referring Compliance Function,

Follow the procedures throughout the remainder of this IRM, beginning with paragraph (3).

Priority treatment must be given to Operations Assistance Requests (OARs) and statute imminent circumstances. Screen all statute year returns to determine if the ASED is expiring or imminent. See the chart below for additional guidance.

If

Then

(1) The current account ASED and the valid return ASED are both greater than 180 days,

The account does not require statute protection actions.

(2) The current account ASED and the valid return ASED are both 180 days or less,

Do not abate tax.

Input TC 560 before you send the case to SP for processing.

The ASED must post before sending to SP.

Refer to IRM 25.23.2.5, Statute Protection, for quick assessment procedures.

Reference IRM 3.12.179.75.3, UPC 178 Reason Code 2 Assessment Statute Expiration Date (ASED), to prevent an unpostable 178-2.

(3)The ASED for a valid return is expired,

Do not abate tax.

See IRM 25.23.4.9.2, Addressing Barred Assessments on Identity Theft (IDT) Cases, to determine if there is a barred assessment and identify the applicable initial case actions required to correct the account.

(4)The ASED for an invalid return that will be moved to an IRSN is 180 days or less but has not expired,

Do not abate tax.

Research to determine if an IRSN was previously assigned to the taxpayer.

Assign a new IRSN if one was not located through research.

For Compliance IDT cases, contact the DITA team lead to request assignment of a new IRSN if one was not located through research.

Refer to IRM 25.23.2.5, Statute Protection, to complete a quick assessment on the IRSN account.

A return will be considered signed if the correspondence includes any form that contains a signed Jurat (e.g., Form 14039, Letter 3219C).

Both taxpayers’ signatures must be present on jointly filed returns. See IRM 21.5.3.4.4.1, Special Handling of Signature Requests, for exceptions.

Unprocessed returns deemed a nullity must never be sent to SP for processing as a TC 976. Follow procedures in IRM 25.23.4.8.2, Streamline Identity Theft (IDT) Case Identification and Processing, to make a nullity determination.

If

And

Then

(1) The TC 150 return has been determined to be a nullity through the Refund Scheme Listing, IRP Data or Schedule C Case Processing, or through verification of an RIVO determination,

The unprocessed return has been validated as filed by the CN owner,

Edit the unprocessed return per paragraph (11) below.

If there is an open CII case related to the unprocessed return, leave a CII case note documenting all actions taken.

(2) There is no TC 150 posted,

The unprocessed return has been validated as filed by the CN owner,

Edit the unprocessed return per paragraph (11) below. Do not post TC 976.

If there is an open CII case related to the unprocessed return, leave a CII case note documenting all actions taken.

(3) If the unprocessed return has been deemed invalid but does not meet nullity criteria,

The TC 150 return has been validated as filed by the CN owner,

For Compliance IDT cases, see paragraph (6) below.

For all other cases, edit the unprocessed return per paragraph (11) below.

If there is an open CII case related to the unprocessed return, leave a CII case note documenting all actions taken.

(4) If the unprocessed return has been deemed invalid but does not meet nullity criteria,

There is no TC 150 posted,

For Compliance IDT cases, see paragraph (6) below.

For all other cases, follow the procedures detailed below:

Research to determine if an IRSN was previously assigned to the taxpayer.

Assign a new IRSN if one was not located through research.

Edit the unprocessed return per paragraph (11) below. Do not post TC 976. Replace the TIN on the return with the IRSN assigned to that taxpayer.

If there is an open CII case related to the unprocessed return, leave a CII case note documenting all actions taken.

For Compliance IDT cases that are not currently assigned to DITA but require an IRSN, do not route the return to SP. Follow procedures in IRM 25.23.10.5, Post Function Referral Procedures, to refer the case to DITA.

Valid returns not processed as an original return have bypassed DIF scoring. Valid returns must be screened for DIF score criteria after the TC 976 has posted to the account. See Exhibit 25.23.4-21(2), Input, Annotations and Action Requirements for Streamline/Non-streamline Case Processing, If/Then scenario (3) for additional information.

Review the chart below to determine if an account condition exists which must be addressed prior to forwarding a return to be processed.

If

And

Then

(1) IDRS CC TXMOD reflects a Master File (MF) status of 02 or 03,

Refer to IRM 25.23.2.6.5, Closing Identity Theft Cases with Tax Delinquency Inquiries (TDI).

Note the appropriate TC 59X code in the left margin of the return.

(2) IDRS CC TXMOD reflects an unreversed TC 971 AC 121/124/129,

Input TC 972 AC 121/124/129 to reverse it.

(3) The return being processed is Married Filing Jointly (MFJ),

The current filing status is not MFJ,

Input TC 594 CC 084 on the secondary TIN to prevent separate TDI activity. Cross reference the primary TIN.

(4) The return being processed is Married Filing Jointly (MFJ),

The current filing status is MFJ with someone other than the spouse on the return,

Input TC 592 to reverse the TC 594 CC 084 for the invalid return previously processed.

Input TC 594 CC 084 on the secondary TIN to prevent separate TDI activity. Cross reference the primary TIN.

TC 592 will reverse all TCs 59X on the module. Input of a TC 594 CC 084 cannot be post delayed. If the valid taxpayer is the secondary on a valid MFJ return, monitor the account for one week. After one week, input TC 594 CC 084 to cross reference the correct spouse.

(5) The return is part of a Compliance IDT case,

The case is being worked by a function that addresses unreported income,

Verify all income belonging to the taxpayer(s) is included on the return to be processed.

Follow your functional IRM for specific guidelines to address incomplete returns, if necessary.

Corrective actions to resolve the identity theft issue will be taken prior to forwarding the unprocessed return to post the TC 976.

Follow applicable streamline/non-streamline procedures to correct the account.

In situations where the aMend tool will not perform the necessary account adjustment, another IAT adjustment tool must be used.

If the case meets previous action criteria, proceed to paragraph (13) below.

Create an IDRS control base to monitor for posting of the TC 976. See IRM 25.23.4.3.1.1, Monitoring Case Controls, to determine if your CII case needs to remain open.

After completing the necessary actions to resolve the case, continue to paragraph (11) below.

When updating the entity, refer to the table below for additional considerations:

If

And

Then

(1) There is a name line change from any filing status to MFJ,

Update ENMOD prior to sending the return to SP for processing to prevent UPC 166. See IRM 3.12.179.68, UPC 166 Reason Code 0 Filing Status Code (FSC) Mismatch, for additional information.

(2) There is a name line change from MFJ to any other filing status,

The module does include Self-Employment income for the secondary taxpayer,

Update ENMOD prior to sending the return to SP for processing to prevent UPC 166. See IRM 3.12.179.68, UPC 166 Reason Code 0 Filing Status Code (FSC) Mismatch, for additional information.

(3) There is a name line change from MFJ to any other filing status,

The module does include Self-Employment income for the secondary taxpayer,

Address the invalid return.

If the invalid return meets nullity criteria, input a full back out of the return figures, unless that action will cause a barred statute.

If the return does not meet nullity criteria, follow procedures in, IRM 25.23.4.7, Non-Streamline Identity Theft (IDT) Case Processing, and move the return to an IRSN. For Compliance IDT cases, see paragraph (6) above.

Update ENMOD to remove the secondary taxpayer information after the actions taken to nullify or remove the invalid return from the account have posted.

Valid unprocessed returns must be edited prior to sending for processing:

To prevent the valid return from unposting, edit the return with SPC ‘B’ in the right margin between the secondary TIN and the Presidential Election Campaign Fund (PECF) designation per the instructions in Exhibit 3.12.2-4, Special Processing Codes. This allows the return to bypass UPC 126 and all UPC 147 Reason Codes, except RC 4.

Notate ‘ITVA’ and the CII Case ID in the upper left-hand corner. Refer to IRM 21.5.2.4.23.7, Coding and Editing Procedures, for additional guidance that may be applicable.

All edits must be made in ‘Red’ pen/pencil only. It is also acceptable to notate all edits on CII images using the annotation tools then underline the changes in ‘Red’.

Send unprocessed valid returns to Submission Processing. Monitor the account for the posting of TC 976. Upon posting, the resulting -A Freeze must be released. Input TC 290 .00 with the appropriate Hold Code depending on the facts and circumstances of the case. Use the table below to determine the appropriate Submission Processing Site:

If

Then

For campuses with Submission Processing (SP),

Route the return to your local SP using a Form 1725 or similar local routing slip.

Include, “Post TC 976 - Do not send to ICT to be imaged”, or similar instructions in the remarks field.

If a paper return is received in response to a Letter 5064C, only input, “Post TC 976”, as the remarks.

Unprocessed Forms 1040-NR, 1040-SS, and 1040-PR will be sent to Austin Service Center.

If 45 days have passed, and the TC 976 has not posted, see IRM 25.23.4.6.5.2.2, Unprocessed Returns - 45 Day Suspense Time Frame Expired.

For campuses without Submission Processing (SP),

Using a Form 3210, route the return to Kansas City SP at: Internal Revenue ServiceStop 6052333 W Pershing RoadKansas City, MO 64108

Include, “Post TC 976 - Do not send to ICT to be imaged”, or similar instructions in the remarks field.

If a paper return is received in response to a Letter 5064C, only input, “Post TC 976”, as the remarks.

Unprocessed Forms 1040-NR, 1040-SS, and 1040-PR will be sent to Austin Service Center.

If 45 days have passed, and the TC 976 has not posted, see IRM 25.23.4.6.5.2.2, Unprocessed Returns - 45 Day Suspense Time Frame Expired.

If it is determined the case meets previous action criteria per IRM 25.23.4.10.6, Identity Theft (IDT) Previous Action, refer to the table below:

If

Then

(1) A TC 150 is present and the ASED is greater than 90 days,

Send the return to ICT as an XRET using Form 13503. Refer to the Form 13503 ICT XRET Cover Sheet Sample located on the IDTVA Hub.

(2) A TC 150 is present and the ASED is 90 days or less ,

Create a CII case.

Send the return for exception scanning.

Input a TC 971 AC 010 to generate TC 977.

Once scanned to the case, work following applicable procedures per IRM 21.5.3.4, General Claims Procedures.

(3). No TC 150 is present (i.e., IDT was on secondary TIN, IDT return was Voided/Deleted,

Follow the procedures beginning at paragraph (2) above.

IDTVA screeners receive unprocessed returns from Submission Processing (SP) and/or statutes that have indications of IDT (i.e., Form 14039, similar statements, "identity theft" is notated on the return, etc.). It is the responsibility of the IDTVA screeners to quickly determine if IDT has occurred, if the unprocessed return is "valid" or "invalid" , and the applicable actions to take.

When the Form 14039 included with a tax return does not indicate the taxpayer’s information was used to file taxes, consider the claim as reporting non-tax-related IDT, and take the following actions:

Detach Form 14039.

Notate in the left-hand margin of the Form 1040/A/EZ/SR what is being detached.

Notate on the Form 14039 the current date and what is being detached.

Route Form 14039 to ICT as an IDT4 using the IDTVA-A ICT Batch Sheet located on the IDT Hub.

Continue screening the tax return.

Form 14039 is included with the taxpayer’s 2019 return filed on Form 1040. Section A Option 1, indicating the form is being submitted for the taxpayer, and Section B Option 1, indicating the taxpayer suspects their information has been used for tax purposes, are both marked. The taxpayer provides an explanation indicating their Social Security Card and ID were in their wallet when it was lost. Detach Form 14039 from the return. Notate on the Form 1040 "detached Form 14039 sent to ICT" . Notate on Form 14039 the current date and "detached from Form 1040 TY 2019" .

Research the account and unprocessed return to determine if any of the returns may be considered a nullity.

The screening process should be completed even if it appears the return was previously screened (SPC "B" and "ITVA" are present on the unprocessed return).

When the return being screened has a stamped Document Locator Number (DLN), refer to the table below to determine where the return originated and the appropriate actions to take:

If

And

Then

(1) The DLN matches the return posted to MF,

There is an open IDT(X) CII case or assigned RIVO/NCAT control (not a generic number),

Send the return to files per IRM 21.5.1.4.9, Re-Charging and Re-Filing Documents, or follow IRM 21.5.1.4.10, Classified Waste, as applicable.

Determine why the return was sent to process (i.e., AMS, CII, history, etc.) prior to taking any actions.

(2) The DLN matches a return NOT posted to MF (i.e., Voided/Deleted or Identity Theft found on TRDBV),

Regardless of whether or not there is an open IDT(X) CII case or assigned RIVO/NCAT control (not a generic number),

Continue the screening process. See paragraph (5).

If during the screening process it is determined tax-related IDT did not occur, perform the following actions:

Circle out any incorrect edits (SPC "B" and "ITVA" ).

If any TC 971 AC 501/506 is present on CC ENMOD/IMFOLE that is not being reversed, edit the return per paragraph (7).

Reverse any incorrect IDT indicators (i.e., TC 971 AC 501/506/522).

Forward the return to SP, ICT or your local statute unit, as applicable.

Use IRM 25.23.4.8.1, Identity Theft (IDT) Determinations - Schemes, and IRM 25.23.4.8.2, Streamline Identity Theft (IDT) Case Identification and Processing, along with the chart below:

If

And

Then

(1) The TC 150 return has been determined to be a nullity utilizing streamline processing,

The unprocessed return has been validated as filed by the CN owner utilizing IRP data for the year of the screened return.

For streamline criteria and determinations see IRM 25.23.4.8.1, Identity Theft (IDT) Determinations - Schemes, and IRM 25.23.4.8.2, Streamline Identity Theft (IDT) Case Identification and Processing.

Edit the unprocessed return per paragraph (8) below and continue to paragraph (9).

(2) Extended research is needed to make a determination of invalid and/or valid return (i.e., less than 3 years IRP data, more than one TC 976/977, TC 610 payment, MFT 32 issues, transcript non-streamline procedures or meets criteria in IRM 25.6.1.13, Barred Assessments/Barred Statute Cases, etc.).

The current account ASED has not expired and is not within 180 days.

Edit the unprocessed return per paragraph (8) and send the return to SP for processing.

(3) Extended research is needed to make a determination of invalid and/or valid return (i.e., less than 3 years IRP data, more than one TC 976/977, TC 610 payment, MFT 32 issues, transcript non-streamline procedures or meets criteria in IRM 25.6.1.13, Barred Assessments/Barred Statute Cases, etc.).

Current account ASED has expired or within 180 days.

Refer to paragraph (9).

If there is an open CII case related to the return you are screening, input a case note indicating the action being taken (i.e., valid return sent to SP to post TC 976, ASED updated and return being held by IDTVA screener until TC 976 posts, etc.).

If it is determined the IDT issue was previously resolved and there is a valid return that needs to be addressed, follow the chart below.

If

And

Then

(1) A TC 150 is present.

The ASED is greater than 90 days.

Send the return to ICT as an XRET using Form 13503.

Refer to the Form 13503 ICT XRET Cover Sheet Sample located on the IDTVA HUB.

(2) A TC 150 is present.

The ASED is 90 days or less.

Create a new CII case. Use Category Code XRET and Program Code 40051.

If TC 977 is not present, input a TC 971 AC 010.

Reassign the case using the IDTVA-A CII Reassignment Guide or IDTVA Specialty CII Reassignment for Non-IDT Cases located on the IDTVA Hub.

Contact IDTVA P&A to advise there is a statute return. Provide the CII case ID.

(3) No TC 150 is present (i.e., IDT was on secondary TIN, IDT return was Voided/Deleted, or moved to MFT 32).

The ASED is at least 180 days.

Edit the return per paragraph (5) and forward to SP.

(4) No TC 150 is present (i.e., IDT was on secondary TIN, IDT return was Voided/Deleted, or moved to MFT 32).

The ASED is 180 days or less.

Create a new CII case. Use Category Code XRET and Program Code 40051.

If TC 977 is not present, input a TC 971 AC 010.

Reassign the case using the IDTVA-A CII Reassignment Guide or IDTVA Specialty CII Reassignment for Non-IDT Cases located on the IDTVA Hub.

Contact IDTVA P&A to advise there is a statute return. Provide this CII case ID.

An unprocessed return from the TIN owner must be edited before it is sent to SP for processing. Refer to IRM 21.5.2.4.23.7, Coding and Editing Procedures, and IRM 21.5.1.5.5, Processing/Reprocessing CII Tax Returns, for additional guidance that may be applicable when sending a return for processing. Perform the following actions:

Notate "ITVA" and the CII Case ID in the upper left-hand corner of the return.

Edit the return SPC "B" (in the right-hand margin between the secondary TIN and PECF designation). This will allow the return to bypass all the UPC 147 Reason Codes except RC 4. See IRM 3.11.3.3.7.6, Special Processing Code (SPC).

If there is a name line change, update ENMOD prior to sending the return to SP for processing (e.g., single to joint).This will allow the return to bypass the UPC 166. See IRM 3.12.179.68, UPC 166 Reason Code 0 Filing Status Code (FSC) Mismatch.

When the unprocessed return is Married Filing Jointly (MFJ), input TC 594 CC 084 to satisfy the secondary TIN's filing requirement, if one is not present. Make sure there is a name line for the secondary TP’s TIN on the Master File (MF) for the same tax year or earlier. If not, update ENMOD with a name line for the secondary TP’s TIN for the same year.

If CC TXMODA reflects a MF status of "02" or "03" , see IRM 25.23.2.6.5, Closing Identity Theft Cases with Tax Delinquency Inquiries (TDI), for additional information.

To ensure the unprocessed return will post as a TC 976, consideration of the current and "valid return" ASED must be made prior to sending the return to SP for processing.

If

Then

(1) Current account ASED is greater than 180 days,

Edit the return per (8). Then send the unprocessed return to SP or your local statute, as applicable.

(2) Current account ASED is within 90 days or has expired and the valid return ASED will be greater than 180 days.

Ensure the correct received date is being used prior to updating the ASED. Research CC TRDBV for a previously Voided/Deleted or Identity Theft return that matches the "valid return" , and/or CC TXMOD/IMFOL for a TC 610 payment.

Interest penalty date in TRDBV, access code IA, is equal to the received date of the return.

Updating the ASED

Input a TC 560 on the account to update the ASED to 3 years from the received date of the valid return.

To prevent an unpostable (UPC 178-2), see IRM 3.12.179.75.3, UPC 178 Reason Code 2 Assessment Expiration Date (ASED).

Input TC 971 AC 522 following IRM 25.23.2.4.4, Initial Allegation or Suspicion of Tax-Related Identity Theft - IMF Identity Theft Indicators, as applicable.

Open a MISC control base to your IDRS number using Category Code "MISC," activity "PNASEDDATE" (DATE = purge date), status "B" and current date.

Hold the return until the ASED has posted (2-3 weeks).

Per IRM 3.11.3.73.2, Statutory Protection Cases. A statute clearance stamp is not required when SPC “B” is present.

Once the ASED has posted, complete edits on the valid return, as applicable. Update the activity to SNT2PROCES and close the MISC base.

Corrective actions to resolve the identity theft issue will be taken prior to forwarding the unprocessed return to post the TC 976.

Create a new IDRS control base to monitor the posting of the TC 976.

Input a TC 290 .00 with RC 139 using the appropriate hold code to release the -A freeze. See IRM 25.23.4.3.1.1, Monitoring Case Controls, for additional information.

(3) Valid return ASED will be within 180 days of expiration.

180-day time frame allows for the ASED and TC 976 to post.

Set aside to create a CII case. Take the following actions, once the case has been created.

If the ASED is within 90 days, prepare and submit Form 2859, for a quick assessment following IRM 25.23.2.5, Statute Protection, as applicable.

Use the AMA2859 tool to prepare Form 2859, Request for Quick or Prompt Assessment, when the ASED is less than 60 days. See the AMA SharePoint for additional information and User Guides.

AM IDT skilled employees are required to use AMA2859 to prepare Form 2859.

If the ASED is within 91-180 days, continue remaining actions.

Input a TC 560 on the account to update the ASED to 3 years from the received date of the "valid return" and suspend until posted.

To prevent an unpostable (UPC 178-2), see IRM 3.12.179.75.3, UPC 178 Reason Code 2 Assessment Expiration Date (ASED).

Follow applicable streamline/non-streamline procedures to correct the account. Refer to IRM 25.23.4, IDTVA Paper Process, for guidance on adjusting the account.

Corrective actions to resolve the identity theft issue will be taken prior to forwarding the unprocessed return to post the TC 976.

Create an IDRS control base to monitor the posting of the TC 976. Input a TC 290 .00 with RC 139 using the appropriate hold code to release the -A freeze. See IRM 25.23.4.3.1.1, Monitoring Case Controls, for additional information.

Complete "valid return" edits, per paragraph (7).

Input TC 971 AC 522, per paragraph (10).

Send the return to designated SP area for processing.

Input TC 971 AC 522 following IRM 25.23.2.4.4, Initial Allegation or Suspicion of Tax-Related Identity Theft - IMF Identity Theft Indicators, as applicable. This includes other years of unresolved IDT that may be found during the screening process, or have been identified by the taxpayer (via Form 14039 or similar statement).

If an unprocessed return is sent to SP and the TC 976 has not posted after the forty-five (45) day monitor time frame has expired, use the following table to determine how to continue processing the case.

The instructions in this table are only for the handling of a taxpayer’s return as submitted. You must still review the account to determine if the submitted return resolves any outstanding Compliance issues.

If

Then

(1) TXMOD Reflects a rejected (RJ) TC 150 with an ERS status code,

ERS has corresponded with the taxpayer to obtain required information/documentation. Monitor the account until the rejected TC 150 has converted into a TC 976.

(2) The ASED for the new valid return was not updated, as required,

Update the ASED to the correct date based on the earliest IRS Received Date. After the new ASED has posted resubmit the valid return to SP.

Failure to update the ASED prior to sending the return to be processed will result in an Unpostable Code 150-0 or 150-1.

(3) Unpostable Code 126-0,

See IRM 25.23.4.10.2, Identity Theft (IDT) Cases/Transcripts with RIVO and/or TPP Involvement Resolution Tables, paragraph (2) for additional instructions.

(4). The TC 976 unposted (other than UPC 126-0),

Monitor the case on IDRS for an additional 45 days to allow the Unpostables unit time to resolve the unpostable.

If the additional 45-day suspense time frame elapses and the TC 976 still has not posted, take the necessary actions, to correct the account using the applicable procedures, outlined in IRM 25.23.4, IDTVA Paper Process.

(5) There is no indication that a TC 976 will be input (such as an unpostable, etc.),

Monitor the case on IDRS for additional 45 days. If the additional 45-day time frame elapses and the TC 976 still has not posted, close the IDRS control base.

If you have made a Common Number (CN) ownership determination and the valid taxpayer’s return is missing information (e.g., signatures, schedules, forms) needed to adjust the account to the return figures, determine if it is necessary to request the missing information.

Use the table below to identify appropriate research for various sections of the tax return.

Section

Comments and References

(1) TIN requirements

TIN requirements vary depending on the deduction and/or credits claimed on the return.

Refer to the instructions for the form (tax year specific) Find a product.

See Table Scenarios (4) and (6) for credits.

(2) Income

Refer to the instructions for the form (tax year specific). Find a product.

(3) Deductions and Tax computation

See IRM 21.6.4.4, Working Tax Computation / Accounting Period Changes, and its subsections for deductions, other taxes (i.e., self-employment tax, etc.), and various methods of tax computation.

(4) Non-refundable credits

These credits reduce tax liability and are generally not refundable.

Certain credits may become refundable after the tax liability has been brought to zero.

See IRM 21.6.3.4.1, Nonrefundable Credits Procedures, and its subsections to determine if a form or schedule is required to be provided with the return to claim a specific credit.

(5) Refundable credits

These credits are refundable.

For CARES and ARPA credits, see IRM 25.23.4.20, Economic Impact Payment (EIP) and Recovery Rebate Credit (RRC) - General, IRM 25.23.4.21.2, ARPA - Advanced Child Tax Credit (AdvCTC) - General, and/or IRM 25.23.4.21.3, ARPA - Excess Advance Premium Tax Credit (APTC) Repayment Relief.

For all other refundable credits, see IRM 21.6.3.4.2, Refundable Credits, and its subsections to determine if a form or schedule is required to be provided with the return to claim a specific credit.

(6) Signature

Proceed to paragraph (3) below.

If the return is missing a form or schedule required to be attached or is not signed, see IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written).

Credit Transcripts generate under the following circumstances:

A credit remains on the module after the RSED has expired.

A credit is held due to RIVO involvement.

Credit transcripts are referred to IDTVA as IDT6/IDS6 cases. These cases may include a TC 976 return that has not been addressed (-A Freeze).

IDTVA screeners determine if the referral is appropriate. Any referral that was received in error will be returned to the originating employee/function.

Use the following table to identify the type of transcript received:

Transcript Type

Identifying Factors

(1) Unresolved Credit (IDTVA-A)

The case was closed on IDRS with Category Code IDT1, IDS1, IDT3, IDS3, IDT4, IDT5, IDT6, IDS6, IDT8, or IDS8, but all actions were not taken to fully resolve the account.

IDTX is now used by IDTVA when a Form 15227, Application for an IP PIN, is received and is also used by other functions. IDT cases previously resolved under the Category Code IDTX will be received when all actions were not taken to fully resolve the account.

If you cannot identify the original Category Code with which the case was closed, review CC IMFOLA to locate the identity theft adjustment. The first 5 digits of the employee’s IDRS number can be used to determine if the referral was appropriate. Use the IDRS - Unit and USR Database found on SERP Who/Where to determine if the adjustment was input by an IDTVA employee.

(2) Unresolved Credit (Specialty Functions)

The case was closed on IDRS with Category Code IDI1, IDI2, IDI3, IDI4, IDI5, IDI6, IDI9, or IDII, but all actions were not taken to fully resolve the account.

If you cannot identify the original Category Code with which the case was closed, review CC IMFOLA to locate the identity theft adjustment. The first 5 digits of the employee’s IDRS number can be used to determine if the referral was appropriate. Use the IDRS - Unit and USR Database found on SERP Who/Where to determine if the adjustment was input by an IDTVA employee.

(3) RIVO Involvement

AM01 (-R Freeze)

AM17 (P- Freeze)

TC 971 with AC 052, AC 121, AC 122, AC 123, AC 124, AC 129, AC 134, AC 140, AC 199, AC 617

A Computer Condition Code (CCC) "1"

A CCC "3" and another RIVO marker

A CC NOREF history with an IDRS control base (open or closed) containing an IDRS assignment number 148XXXXXXX

TC 971 AC 128 with MISC field "AQCPTC191" or "AQCPTC195"

Unreversed Taxpayer Protection Program (TPP) indicators; refer to IRM 25.25.6.1.7, Taxpayer Protection Program Overview, for a list of indicators

Letter 4464C and/or CP 05 notice

Letter 4415C, TC 971 with AC 044 MISC>CP05A, or Examination correspondence

The presence of TC 971 AC 199 does not automatically indicate RIVO involvement. See Exhibit 25.25.5-2, Transaction Code (TC) 971 Action Code (AC) 199 Miscellaneous (MISC) Field Literals for RIVO, for additional information.

Only certain transcripts with RIVO involvement should be received in IDTVA. Refer to the table below for descriptions of Credit Transcripts with RIVO involvement IDTVA will resolve:

If the Account Reflects

And

(1)

No open RIVO IDRS control, or an IDRS control was opened by AMRH, with subsequent adjustment action to reverse the return information by RIVO, Memphis QRP, Brookhaven Pre-Refund Team, or Exam, and

An unresolved credit remains on the module from a TC 610 or TC 670 payment, and the taxpayer’s valid return is not on MFT 32 or TRDBV does not show GUF Void/Deleted, and

A Letter 112C requesting a return was sent.

The taxpayer submits a return in response to the Letter 112C.

(2)

There is an open IDRS control to RIVO 148NNNNNNN or 065NNNNNNN, or

There is an open IDRS control to Return Integrity & Compliance Services (RICS), Earned Income Tax Credit (EITC), Refund Tax Compliance (RTC), or Questionable Refund Program (QRPA) 1381NNNNNN.

An unresolved credit remains on the module with no subsequent adjustment action or activity by RIVO, Memphis QRP, Brookhaven Pre-Refund Team, or Exam, and

There is a freeze condition that involves a -A Freeze, or there is an IDT issue that was not fully resolved.

(3)

There is no open RIVO IDRS control and the freeze is due to an External/Bank Lead issue, identified by TC 720.

The TC 720 amount may be less than the TC 846 if bank fees were deducted.

An unresolved credit remains on the module, and

There is a freeze condition that involves a -A Freeze, or there is an IDT issue that was not fully resolved.

(4)

There is no open RIVO IDRS control and the module contains a TC 971 with AC 134, AC 199, or AC 617.

TC 971 with AC 199 with MISC>DPC is not RIVO related.

If the module contains an unreversed TC 971 with AC 124, see (6) below in this table.

An unresolved credit remains on the module with no subsequent adjustment action or activity by RIVO, Memphis QRP, Brookhaven Pre-Refund Team, or Exam, and

There is a freeze condition that involves a -A Freeze, or there is an IDT issue that was not fully resolved.

(5)

There is no open RIVO IDRS control with no subsequent adjustment action or activity by RIVO, Memphis QRP, Brookhaven Pre-Refund Team, or Exam,

An unresolved credit remains on the module and CC ENMOD shows TC 971 with AC 506 with any MISC field that contains the literal RICS, RIVO, AMTAP, or PRP, and

There is a freeze condition that involves a -A Freeze.

(6)

There is no open RIVO IDRS control and the module contains TC 971 AC 121 or AC 124.

An unresolved credit remains on the module, and

There is a freeze condition that involves a -A Freeze.

(7)

There is no open RIVO IDRS control, the module contains TC 972 AC 121, and AMS does not show that the taxpayer authenticated.

An unresolved credit remains on the module, and

The freeze condition does not involve a -A Freeze.

(8)

There is no open RIVO IDRS control and the module contains TC 971 AC 123 or AC 129.

An unresolved credit remains on the module.

(9)

There is no open RIVO IDRS control and Memphis QRP, or Brookhaven Pre-Refund has made an adjustment, or

The module is in zero or debit balance.

There is a freeze condition that involves a -A Freeze, or there is an IDT issue that was not fully resolved.

(10) There is no open RIVO IDRS control and the module contains TC 971 AC 152,

An unresolved credit remains on the module, the freeze condition does not involve a -A Freeze, and the return includes income/withholding that is not verifiable per IRPTR data.

Returns with only self-employment income and returns with minimal discrepancies in income and/or withholding should not be referred.

Refer to the table below for Credit Transcript assignment procedures:

If

Then

(1) The Credit Transcript referral does not meet IDTVA criteria,

Return to the originating employee/function. Include the specific reason IDTVA criteria is not met.

(2) The Credit Transcript referral is the result of an unresolved credit due to an IDT issue that was not fully resolved.

Assign the case to the employee who worked the original case. Include a CII case note that indicates the case is being assigned due to an unresolved credit.

If the employee who worked the case is no longer in IDTVA, assign the case to the IDT skilled employee assigned to work a case for the same taxpayer, when possible.

Assign the case to the general holding number when the employee who worked the original case is no longer in IDTVA and there is no other existing case.

When assigning the case to an IDTVA Specialty Function, the Category Code will remain IDT6/IDS6. Update the CII case Priority Code to 2.

(3) The Credit Transcript referral with RIVO involvement meets IDTVA criteria.

If there is an open case for the same taxpayer, assign the Credit Transcript to the IDT skilled employee assigned to work that case.

When assigning the case to an IDTVA Specialty Function, the Category code will remain IDT6/IDS6. Update the CII case Priority Code to 2.

Assign the case to the general holding number if there is no other existing case.

Refer to Exhibit 25.23.4-8, Order of Priority Listing - IDTVA-A and IDTVA Specialty Functions, for prioritization of IDT6/IDS6 cases. When resolving IDT6/IDS6 cases, do not update the category code based on the original case category code (for unresolved credits) or to IDT8/IDS8 (for RIVO involvement).

Prior to taking action to resolve a credit transcript, ensure IDTVA criteria is met. If the case does not meet IDTVA criteria, return the transcript to the originating employee/function. Refer to IRM 25.23.4.6.6.1, Credit Transcripts - IDT6/IDS6 (IDTVA Screeners Only), for additional information.

For Statute Year Credit Transcripts that do not have a -A Freeze on the module:

Follow normal procedures to resolve an IDT issue, if necessary.

Determine if the credit(s) are available for refund or offset. Refer to IRM 25.6.1.5, Basic Guide for Processing Cases with Statute of Limitations Issues, and IRM 25.6.1.10.3.3.2, Limitations on the Amount of a Claim.

Apply credits available for refund or offset to outstanding liabilities, if applicable.

Manually refund any allowable amount remaining. Refer to IRM 21.4.4.3(3), Why Would a Manual Refund Be Needed?, and IRM 21.4.4.5, Preparation of Manual Refund Forms, for additional information.

Move any credits not available for refund or offset to the Excess Collection File. See IRM 25.6.1.7.3, Excess Collection File (XSF) and Unidentified Remittance File (URF).

For transcripts received that do not include a -A Freeze on the module and are not for a statute year, research the account to determine if there are any indications of IDT.

If

Then

(1) You determine the account is impacted by IDT,

Work the case following normal procedures.

(2) You determine the account is not impacted by IDT,

Follow normal freeze code procedures. Refer to IRM 21.5.6.4, Freeze Code Procedures.

For Credit Transcripts with a -A Freeze on the module, determine if the -A Freeze is the result of an unresolved IDT issue or if an additional return was received after the IDT case was closed.

If

Then

(1) The -A Freeze is the result of an unresolved IDT issue,

Work the case following normal procedures.

(2) The module reflects a credit that was not addressed during the resolution of an IDT case, a -A Freeze from an additional return received after the IDT case was closed is present, and there is another CII case for that return.

Link the cases, and contact the other control to determine ownership of the case.

If the additional return is an IDT return or the IDT skilled employee is trained to work the other program (i.e., DUPF, XRET), the IDT skilled employee will take ownership of both cases.

If the additional return is not an IDT return and the IDT skilled employee is not trained to work the other program, the IDT skilled employee will resolve the credit, close the IDT6/IDS6 case, and advise the other control of the actions taken.

(3) The -A Freeze is the result of an additional return received after the IDT case was closed, and there is not another CII case for that return,

Determine if the additional return is an IDT return.

If the additional return is an IDT return, follow normal procedures to resolve the case.

If the additional return is not an IDT return, resolve the credit using the procedures outlined in (2) above. Do not address the additional return.

(4) If there is a -A Freeze on a module with RIVO involvement,

Follow normal procedures to resolve. See IRM 25.23.4.8.2.1, Identity Theft with RIVO Involvement, for additional information.

This section provides details for processing IMF fraudulent claims that do not have an existing treatment stream when processing IDT case types only.

A process has been created that enables potential tax fraud or non-compliance leads to be disseminated and subsequently acted upon. The process does not replace any existing referral methods.

Generally, cases meeting fraud referral criteria possess any of the following characteristics:

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

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

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

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

When you discover a potential fraud case, complete a Form 4442 and provide the case to your lead or manager for review and approval. Document all research completed in a CII case note and/or on Form 4442. Attach the Form 4442 to your CII case. Maintain an open control base and suspend the case while waiting for a response. Update the IDRS activity to "REF2ITVA" after suspending the case to the manager or lead.

The lead or manager will review the case to ensure fraud referral criteria is met as shown in paragraph (3) above and there is not an existing treatment stream.

If the lead or manager determines criteria is not met or there is an existing treatment stream, the case will be returned to the employee with a message advising why the case does not meet fraud referral criteria.

If criteria is met, the lead or manager will refer the case information to the Fraud Coordinator via email using the subject line: Fraud Referral (or similar).

The case will remain in suspense in the employee’s inventory awaiting a response from ITVA HQ. Upon receipt, the account will be researched. A response on how to address the account will be received within 7 business days. Do not take action on the case until appropriate guidance has been provided.

The HQ analyst will review the case to ensure fraud referral criteria is met.

If not met, the HQ analyst will send an email to the lead/manager advising why the criteria was not met.

If met, the HQ analyst will provide specific instructions to resolve the IDT issue on Form 4442 and will respond to the referring lead or manager. The HQ analyst will also address the suspected fraud.

Non-streamline case processing applies when IDT has been determined and the IDT return cannot be nullified. Any lost refunds on the IDT return should be moved to the IRSN where the related IDT return will reside. Document in a CII case note the IRSN used.

For all non-streamline case processing, the TIN-Related Problem Research Sheet is required. See paragraph (8) of IRM 25.23.4.6.2, IDTVA - Additional Research and Required Actions, for additional information.

Each return/case must be considered separately for each tax year. If one or more returns cannot be nullified, the case will be worked as a non-streamline case. If one or more of the IDT returns can be nullified, they should be worked as a streamline IDT case following guidance in IRM 25.23.4.8.2, Streamline Identity Theft (IDT) Case Identification and Processing.

When the only income reported on an invalid return was earned by the valid taxpayer, nullify the return.

Every effort will be made to determine CN ownership based on the information provided and directly available prior to contacting the taxpayer(s).

The "Social Security Administration Social Security Number Verification" printout is NOT acceptable proof of ownership of the CN. CN ownership determinations previously made due to receipt of the printout are not affected by this change. If a printout is or has been received for an unresolved case, the printout will be retained with the case but it will not determine ownership.

See IRM 25.25.2.11, Identity Theft Scheme Criteria, for the characteristics of common IDT schemes.

If NUMIDENT or, for ITIN cases, EUP/ITIN RTS, clearly shows the owner of the SSN or ITIN, proceed to guidance in IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, to determine the appropriate scenario to resolve the case.

See IRM 25.23.4.8.3, Non-Streamline Identity Theft (IDT) Determinations, for additional information on making Common Number (CN) ownership determinations.

Thorough account research must be completed following procedures in IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, prior to taking any actions to resolve the identity theft case.

Careful consideration of all available information is necessary to ensure the correct taxpayer is identified as the CN owner and the correct case processing procedures are followed.

Statute year returns require additional research prior to taking action on an account. Review IRM 25.23.4.9, Statute Processing Considerations, to ensure all applicable statutes are protected.

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

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

CN ownership/IDT determinations must be documented in a CII case note prior to taking action to resolve the account.

When lead/manager concurrence or approval is required, the concurrence or approval must be documented by the lead/manager prior to taking action to resolve the account.

The following subsections are intended to be considered in the order in which they are listed:

IRM 25.23.4.8.1, Identity Theft (IDT) Determinations - Schemes

IRM 25.23.4.8.2, Streamline Identity Theft (IDT) Case Identification and Processing

IRM 25.23.4.8.3, Non-Streamline Identity Theft (IDT) Determinations

IRM 25.23.4.8.4, Dependent Related Identity Theft (IDT) - General

IRM 25.23.4.8.5 , Identity Theft with Non-Filer Returns

IRM 25.23.4.8.6, Identity Theft (IDT) with Incarcerated Taxpayer (Prisoner) Involvement – General

Refer to IRM 25.23.13, Income Related Identity Theft, for determinations and case processing guidelines related to questionable income.

When the case involves a questionable return, refer to IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, for additional considerations.

Before making a No IDT determination, consider the taxpayer’s statement. If the statement:

Includes

Then

(1) Loss of personally identifying information (i.e., driver’s license or Social Security Card), fraudulent activity on their credit report, etc., they are a victim of non-tax-related identity theft.

Resolve the case as an IDT4 following procedures in IRM 25.23.3.2.3, Self-Identified - Non-Tax-Related Identity Theft - IDT4 Overview.

If the account reflects TC 971 AC 527, the taxpayer will not be able to use online self-help methods. Options available to the taxpayer should be provided in an open paragraph.

If the taxpayer has a balance due after the IDT issue is determined not to affect tax administration, include language indicating collection activities will continue.

(2) A request for an IP PIN and the account reflects a TC 971 AC 527 on CC ENMOD/IMFOLE.

For more information about this indicator, see IRM 25.23.2.8.6, Disabled Online Accounts TC 971 AC 527.

Resolve the case as an IDTX following procedures in IRM 25.23.3.2.7 , Application for an Identity Protection Personal Identification Number (IP PIN) Overview - Form 15227.

Do not update the category code for IDTVA Specialty cases.

(3) There are allegations of Return Preparer Misconduct (RPM),

Follow procedures in IRM 25.23.4.4, Taxpayer Inquiries Involving Identity Theft (IDT), paragraph (5) to determine if the case will be reassigned to RPM or closed with instructions to file an RPM claim.

Due to the complexity of some cases, there may be instances where multiple treatment streams are required to fully resolve the account. Refer to Exhibit 25.23.4-23 , Complex Case Scenarios, for examples of cases that would require resolution with more than one treatment stream.

For any complex case that requires multiple treatment streams not listed in Exhibit 25.23.4-23 , Complex Case Scenarios, or does not have an existing treatment stream, prepare and email Form 4442 using the subject line: Complex Case (or similar) to ITVA HQ. Document all research completed in a CII case note and/or on Form 4442. Attach Form 4442 to your CII case. Suspend the case awaiting a response from ITVA HQ. Upon receipt, the account will be researched. A response on how to address the account will be received within 7 business days.

Generally, the identification of a scheme is the result of a number of returns filed with similar characteristics determined to be identity theft.

Cases meeting scheme criteria require completion of Complete Case Analysis (CCA) to determine if there are additional years impacted by identity theft.

An individual return may be determined invalid based on characteristics of a specific scheme. In most instances, this determination does not require identification of consistencies or inconsistencies in the filing history.

Returns determined to be invalid based on a scheme are resolved following applicable streamline procedures.

Each return must be considered separately and may impact credits related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and American Rescue Plan Act (ARPA). Refer to IRM 25.23.4.20, Economic Impact Payment (EIP) and Recovery Rebate Credit (RRC) - General, and IRM 25.23.4.21, American Rescue Plan Act (ARPA) - General, and their subsections for additional information.

The following subsections are intended to be considered in the order in which they are listed:

IRM 25.23.4.8.1.1, Known Fraud-Scheme Cases

IRM 25.23.4.8.1.2, Refund Schemes

IRM 25.23.4.8.1.3, Married Filing Joint Scheme Involvement

Identity theft cases resulting from a known fraud-scheme may include one or more returns received for the tax year in question.

Cases for taxpayers previously identified as potentially being impacted by a known fraud-scheme will be updated to Priority Code (PC) 6. If, while working an unidentified case, it is determined the return in question meets known fraud-scheme criteria, update the Correspondence Imaging Inventory (CII) case information to PC 6.

Cases in PC 7 or PC 8 will not be updated to PC 6.

The scheme in paragraph (4) table scenario (7) will only be identified by Research, Applied Analytics & Statistics (RAAS). These cases involve tax returns that fall into clusters of 50 or more returns with the same wages and withholding. These cases will already be assigned as PC 6.

To be determined an invalid return per a known fraud-scheme, the return in question must meet all requirements for the specific known fraud-scheme. Refer to paragraph (4) below for a list of known fraud-schemes and characteristics of each.

All return characteristics plus the applicable number of additional commonalities for the fraud-scheme must be present. Each return must be considered separately for each tax year. Refer to the table below for a listing of each known fraud-scheme and its characteristics.

Fraud-Scheme Name

Return Characteristics

Additional Commonalities

(1) $50,100 W-2 Scheme

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

A minimum of two additional commonalities must be present.

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

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

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

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

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

(2) $63,500 W-2 Scheme

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

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

A minimum of one additional commonality must be present.

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

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

(3) Form 1099-R Scheme

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

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

A minimum of two additional commonalities must be present.

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

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

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

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

(4) Recovery Rebate Credit (RRC) Velocity

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

A minimum of two additional commonalities must be present.

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(5) Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, Scheme

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A minimum of two additional characteristics must be present.

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(6) Line 25c Other Withholding Scheme

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(7) Repeating Wages and Withholding Scheme

These cannot be employee identified. See the second exception in paragraph (2) above.

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The schemes listed above are separate from the Fraud Refund Scheme Listing job aid on SERP.

When Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, is present, the return in question is excluded from known fraud-scheme consideration if at least one of the following is true:

History of self-employment

Cross reference EIN

-E freeze condition with an unreversed TC 810 (may include -L freeze)

Scenario

Actions

(1) History of self-employment or cross-reference EIN:

A CN ownership determination must be made following existing procedures. See IRM 25.23.4.8, Identity Theft (IDT) Common Number (CN) Ownership and Case Processing Determinations. Resolve the account following applicable streamline/non-streamline procedures based on the determination made.

(2) -E freeze condition with an unreversed TC 810 (may include -L freeze):

Refer to IRM 25.23.4.10.12, Identity Theft (IDT) Cases with -E Freeze, for additional information.

Document the determination in a CII case note. Include the name of the known fraud-scheme and the determination.

Invalid/Valid per Form 1099-R Scheme, lost refund. Complete account research conducted - no additional impacted years.

For cases determined to meet known fraud-scheme criteria, follow applicable streamline procedures in IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases.

Each return must be considered separately and may impact credits related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and American Rescue Plan Act (ARPA). Refer to IRM 25.23.4.20, Economic Impact Payment (EIP) and Recovery Rebate Credit (RRC) - General, and IRM 25.23.4.21, American Rescue Plan Act (ARPA) - General, and their subsections for additional information.

For additional account conditions that may need to be addressed, refer to IRM 25.23.4.6.2, IDTVA - Additional Research and Required Actions, and Exhibit 25.23.4-21, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing.

RICS, Integrity & Verification Operation (IVO) identifies refund schemes related to identity theft.

Identity theft cases involving refund schemes may include one or more returns received for the tax year in question.

Refer to the Fraud Refund Scheme Listing to determine if the return in question meets refund scheme criteria.

Document the determination in a CII case note. Include the name of the refund scheme and the determination.

Invalid/Valid per AOTC Scheme, lost refund. CCA - no additional impacted years.

For cases determined to meet refund scheme criteria, follow applicable streamline procedures in IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases.

Each return must be considered separately and may impact credits related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and American Rescue Plan Act (ARPA). Refer to IRM 25.23.4.20, Economic Impact Payment (EIP) and Recovery Rebate Credit (RRC) - General, and IRM 25.23.4.21, American Rescue Plan Act (ARPA) - General, and their subsections for additional information.

For additional account conditions that may need to be addressed, refer to IRM 25.23.4.6.2, IDTVA - Additional Research and Required Actions, and Exhibit 25.23.4-21, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing.

In the MFJ Scheme, the IDT return has a married filing joint filing status. The thief takes two victims who are not married to one another and files a joint return or files a joint return for a couple who are married to one another. Since there is more than one IDT victim, additional research and actions are necessary.

The thief sometimes lists the same victim as a primary taxpayer on one return and a secondary taxpayer with a different spouse on another return. This can create a chain of SSNs that need to be researched. However, it does not have to be a multiple chain of SSNs used on a return to be considered a Married Filing Joint scheme. It can be one return with two unrelated victims.

Research the primary and secondary TINs on the assigned case to determine if the TINs have been used on any type of return (valid or invalid), or any type of correspondence (e.g., Form 14039) indicating IDT.

The primary TIN may have been used as a secondary TIN on another IDT return.

The secondary TIN may have been used more than once.

John (primary) and Mary (secondary) file a joint return. Mary has another joint return under their TIN listed (as a primary) and Nancy (as a secondary). This return with Mary and Nancy meets Married Filing Joint Scheme Criteria. You must also research Nancy’s SSN to see if they are listed as a primary or secondary taxpayer on another return.

Mary (primary) and Lucy (secondary) are filed on the return that meets Married Filing Joint scheme criteria. Lucy has not filed yet so a TC 594 CC 084 is under their TIN but nothing else.

Ex girlfriend/boyfriend (not married/living together) files without TP's knowledge/consent.

Mary (primary) and Lucy (secondary) are filed on the return that meets Married Filing Joint scheme criteria. Lucy has filed as a secondary on a return with Matt (as a primary). Lucy has two TC 594 CC 084 transactions under their TIN and nothing else.

During the course of research, if a TIN was used on any return that meets the Married Filing Joint Refund Scheme Criteria, as found on the Refund Scheme Listing, you must address the affected TINs following the procedures in the If/Then chart below.

If

Then

(1) The primary on the assigned case is a secondary on an invalid return OR the secondary is a primary on an invalid return.

Create a new case on the XREF TIN, if a case does not already exist. Refer to IRM 25.23.4.3.1, CII and IDRS Case Controls, for additional information on guidance for the IRS Received Date field when opening a CII case control.

Assign the new or existing case to yourself.

Link the new or existing case to your assigned case, if not already linked.

Update the Category Code as needed.

Address the IDT impacted modules for both TINs utilizing the applicable streamline procedures. See IRM 25.23.4.10, Resolving Identity theft Cases for specific instructions.

(2) The primary on the assigned case is a secondary on a valid return AND the account under the XREF SSN does not reflect an indication of further IDT (e.g., 971-151, 594-084) OR The secondary is a primary on a valid return AND the account under the XREF SSN does not reflect an indication of further IDT.

Proceed to IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, to correct the account.

(3) The primary on the assigned case is a secondary on a valid return AND the account under the XREF SSN does reflect an indication of further IDT (e.g., 971-151, 594-084) OR The secondary is a primary on a valid return AND the account under the XREF SSN does reflect an indication of further IDT.

Create a new case on the XREF TIN if a case does not already exist. Refer to IRM 25.23.4.3.1, CII and IDRS Case Controls, for additional information on guidance for the IRS Received Date field when opening a CII case control.

Assign the new or existing case to yourself

Link the new or existing case to your assigned case, if not already linked.

Update the Category Code as needed.

Address the IDT impacted modules for both TINs utilizing the applicable streamline procedures. See IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, for specific instructions.

Resolve the new or existing case on the XREF TIN utilizing the applicable procedures in IRM 25.23.4, IDTVA Paper Process.

(4) The secondary has not filed or informed the IRS of IDT (e.g., Form 14039) and there is NO indication of further IDT.

Proceed to IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, to correct the account.

(5) The secondary has not filed or informed the IRS of IDT (e.g., Form 14039) and there is indication of further IDT.

Create a new case on the XREF TIN if a case does not already exist. Refer to IRM 25.23.4.3.1, CII and IDRS Case Controls, for additional information on guidance for the IRS Received Date field when opening a CII case control.

Assign the new or existing case to yourself

Link the new or existing case to your assigned case, if not already linked.

Update the Category Code as needed.

Address the IDT impacted modules for both TINs utilizing the applicable streamline procedures. See IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, for specific instructions.

(6) The secondary TIN is used on another return as a secondary taxpayer on a valid return and there is NO indication on the XREF TIN of further IDT.

Proceed to IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, to correct the account.

(7) The secondary TIN is used on another return as a secondary taxpayer on a valid return and there is indication on the XREF TIN of further IDT.

Create a new case for the further IDT Issue on the XREF TIN. Refer to IRM 25.23.4.3.1, CII and IDRS Case Controls, for additional information on guidance for the IRS Received Date field when opening a CII case control.

Assign the new or existing case to yourself

Link the new or existing case to your assigned case, if not already linked.

Address the IDT impacted modules for both TINs utilizing the applicable streamline procedures. See IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, for specific instructions.

Resolve the new or existing case on the XREF TIN utilizing the applicable procedures in IRM 25.23.4, IDTVA Paper Process.

TC 592 must be input to reverse TC 594 CC 084 cross referencing the unrelated secondary taxpayer. The TC 592 will reverse all TCs 59X on the module. Input of a TC 594 CC 084 cannot be post delayed. If the valid taxpayer is the secondary on a valid MFJ return, monitor the account for one week. After one week, input TC 594 CC 084 to cross reference the correct spouse.

When a MFJ tax return does not meet MFJ Scheme criteria, you must determine if the case is an Invalid Joint Election (IJE). Taxpayers must know each other for an IJE determination to be made. Refer to IRM 25.23.4.8.1.3.1, Invalid Joint Election Consideration, and the example below for additional information.

The Form 14039 states the taxpayer’s boyfriend filed a MFJ return without their knowledge or permission. They have never been married, and the reporting taxpayer could not file their return electronically. Invalid Joint Election (IJE) must be considered in this case.

There are three situations where a joint return is invalid:

Unlawful - The taxpayers had no legal right to file jointly.

Forgery - One spouse did not sign the return.

Invalid election - One of the individuals on the joint return did not elect to file a joint return.

Tacit consent is a factor to consider for invalid elections and forgery allegations.

Do not confuse MFJ Schemes with invalid joint elections.

If an invalid joint election (IJE) is determined, the IDT claim would be invalid. See IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations, for additional instructions.

When a determination of No IDT has been made because there is an Invalid Joint Election (IJE) issue, and a 2nd return is notpresent (e.g., XRET, DUPF), do not follow procedures in IRM 25.23.4.10.5.4, Amended or Duplicate Returns and Identity Theft (IDT) - No IDT Determinations, to create a separate case.

Filing a joint return is an election. A joint return must be signed under penalty of perjury by both taxpayers to be a valid election for joint filing status.

Substitute for Return (SFR) and Automated Substitute for Return (ASFR) filed by the IRS are never a joint return; however, a joint return can be filed after the assessment (associated with the SFR or ASFR) has posted.

Many returns will not have signatures since returns are now filed electronically. Tacit consent must be considered in determining the validity of the joint filing status shown on the return. See IRM 25.15.19.2.4.1, Tacit Consent Factors, for additional information.

A joint return may contain an invalid joint filing status election if:

An original or amended joint return was filed and processed with only one signature on a paper filed return.

The return was signed; however, it is established that the signature was forged and there is no tacit consent.

The return was signed under duress.

One of the individuals filed a timely original return using Single, Married Filing Separate (MFS), or Head of Household (HOH) and the joint return is not a valid amended return.

Complete IDRS research on both taxpayers’ TINs.

To determine if the taxpayers resided in a state that recognizes common law marriage, see IRM 5.19.11.7.1.2.2, Common Law Marriage.

The marriage may not be legal for Federal tax purposes (even if the claim is received after the due date) and the claim allowed if the following verification is present:

Court documents showing the marriage was not valid for the tax period involved: Copy of divorce decree or separate maintenance,

Documents verifying that the taxpayers did not live together during the last six months of the tax year, such as a lease agreement, utility bills, etc., or

An affidavit, signed and sworn under penalty of perjury, stating the marriage does not exist.

Follow IRM 21.6.1.5.7, Married Filing Joint or Married Filing Separate is Invalid or Filed with Incorrect Status. An allocation of all return income, credits, and payments is required. If the taxpayer does not provide an allocation, use internal research resources to complete the allocation. Refer to IRM 21.6.1.5.8, Allocating Married Filing Joint Cases, for additional information. Refer to IRM 25.23.4.20, Economic Impact Payment (EIP) and Recovery Rebate Credit (RRC) - General, IRM 25.23.4.21, American Rescue Plan Act (ARPA) - General, and their subsections to determine if the IJE return affected issuance of Economic Impact Payments, advance payments of ACTC, or application of any other tax provision intended to provide taxpayers with relief during the COVID-19 pandemic.

If the taxpayers involved are considered legally married, determine if a case meets the invalid joint election criteria by considering all available information. Tacit consent factors will be considered and are found in IRM 25.15.19.2.4.1, Tacit Consent Factors.

Close the case as no consideration for both the IJE and IDT claim, after reviewing the account for tacit consent factors when:

There is not enough information to either rule out or prove tacit consent was implied, and

The taxpayer has submitted no further documentation supporting their invalid joint election or identity theft claim.

Research supports determining the taxpayer who filed the return could logically believe they were filing an accurate return with the reporting person’s consent based on the tacit consent factors considered.

Research supports determining the joint election was not appropriate after consideration of the reporting person’s statement and documentation and tacit consent is not implied.

Follow the instructions in IRM 21.6.1.5.7, Married Filing Joint or Married Filing Separately is Invalid or Filed with Incorrect Status. Do not remove any Compliance assessments or income associated with the taxpayer being removed from the joint return. If TC 470 CC 90 was input, TC 472 must also be input when the taxpayer will have a balance owed.

Determine if the taxpayer claiming fraud has a filing requirement. See IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions, for more information. If the taxpayer has not filed or submitted a valid return with their claim, take the following action:

Issue a Letter 5064C advising the taxpayer to submit a completed return including the required signatures or a statement indicating they did not have a filing requirement with a copy of our letter. Suspend the case for 45 days to allow the taxpayer time to respond.

Do not request a new return if the return is six years or more overdue.

If the taxpayer does not respond to the request for a return or the response does not include a valid return, follow the instructions below:

Prepare Form 2209, Courtesy Investigation, as instructed by IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions.

Issue a Letter 4674C as a closure letter. Include paragraph (a) reminding the taxpayer of their obligation to file a federal tax return.IDTVA-Exam Only - If AIMS is open, close the claim as "NOIDT" and notify Exam to work the case as an invalid joint election.

Streamline identity theft (IDT) case processing allows for the correction of accounts without assigning an Internal Revenue Service Number (IRSN) to the individual who filed the tax return determined to be invalid.

Common streamline case processing terms for removing the invalid return information from the Common Number (CN) account include:

Nullify: The process of adjusting the account to fully back out the invalid return figures or correct to the valid return figures.

Nullity: The invalid tax return meeting streamline criteria.

When the only income reported on an invalid return was earned by the valid taxpayer, the return can be nullified. These cases usually result from an identity theft claim stating the CN owner did not file the tax return and:

May include multiple returns reporting the same exact income.

May include a single return reporting income the CN owner earned.

May reflect different addresses, dependents, credits, preparer, and direct deposit information with no indication of a preparer data breach.

Although the income may be verifiable or consistent with the CN owner’s filing history, the identity theft claim will be accepted based on the taxpayer’s statement, unless there is clear and convincing evidence to support a No IDT determination.

Form 14039 is received stating the taxpayer’s W-2 was stolen from their mailbox, and their return was rejected because someone else already filed a tax return in their name. Research of the account shows the TC 150 return is reporting the same exact income as the TC 976 return but has different direct deposit and tax preparer information. The determination is invalid/valid. The invalid return can be nullified following streamline procedures.

Form 14039 is received stating they suspect someone else filed a tax return in their name because they didn’t receive their refund. Research of the account shows the TC 150 and TC 976 returns match exactly. The address, return figures, credits, refund amount, and direct deposit information are all consistent. It appears the taxpayer filed electronically and also submitted a paper return which posted before the refund could be issued. This is not identity theft.

Each return must be considered separately for each tax year. If all invalid returns on an account meet nullity criteria, follow streamline procedures to resolve the case.

You must determine the case type and make a CN ownership determination based on one or more of the following:

IDT with RIVO Involvement

IDT with Decedent Taxpayer Involvement

IDT with IRP Data, Refund Scheme or Schedule C Involvement

IDT with Preparer Data Breach Involvement

IDT with Tax Preparation Software Misuse

Bullets 1-5 above are listed in the order in which the streamline process criteria is intended to be considered. In some instances, a case may have characteristics of more than one streamline process. Review the guidance for each process to determine which method will allow you to work your case effectively and efficiently.

If, after applying streamline process criteria as described above, the return in question cannot be determined invalid, assignment of an IRSN may be required. See IRM 25.23.4.7, Non-Streamline Identity Theft (IDT) Case Processing, for additional information. Then continue to IRM 25.23.4.8.3, Non-Streamline Identity Theft (IDT) Determinations, to make a CN ownership determination.

Return Integrity & Verification Operation (RIVO) is a pre-refund revenue protection program focused on identifying and stopping fraudulent refunds primarily generated from wage and withholding type of income. Much of this activity occurs very early in the tax year prior to normal processing time frames and involves only originally filed returns. Normal research and determination procedures should be followed when deciding whether an account with RIVO involvement can be worked as a streamlined case.

Accounts with RIVO involvement may show any of the following: a TC 971 with Action Codes 121, 124, 129, 134, 199 (see Exhibit 25.25.5-2, Transaction Code (TC) 971 Action Code (AC) 199 Miscellaneous (MISC) Field Literals for RIVO. Refer to IRM 25.23.4.6.2.2, RICS-RIVO Involvement General Information and Research, for additional information.

If RIVO indicators are reversed, the account should be reviewed for any subsequent account actions/conditions to determine whether the RIVO issue is resolved and whether it impacts your determination.

If the TC 971 AC 121/124 has been reversed by a TC 972 AC 121/124, the RIVO Taxpayer Protection Program (TPP) process has been completed.

If the TC 971 AC 129 has been reversed by a TC 972 AC 129 and the MISC field is populated with Last 6 DLN_IDT, the RIVO TPP process has been completed.

If the TC 971 AC 134 has been reversed with a TC 972 AC 134 and the refund from the TC 150 has been issued, then RIVO has determined it is no longer interested in the return.

Cases where RIVO determined the return to be fraudulent show one of the following:

The account may be completely reversed.

The account will be completely reversed except for a refundable credit.

The account won’t be reversed but TXMOD shows that a CP 05A notice was issued.

The account won’t be reversed but TXMOD shows a MISC field "AMWEX60033 NOCP05A" .

The account may show a TC 971 AC 199 with the MISC field "AMWEX60033 REFEFDS or other similar miscellaneous literals" per Exhibit 25.25.5-2, Transaction Code (TC) 971/Action Code (AC) 199 Miscellaneous (MISC) Field Literals for RIVO. For cases with other MISC literals, the CSR must verify the return is "invalid" .

Schedule C cases with RIVO involvement cannot be nullified, unless it has been determined to be a case on the "Refund Scheme Listing" , or meets the criteria inIRM 25.23.4.8.2.3, Identity Theft (IDT) with IRP Data, Refund Scheme or Schedule C Involvement.

If there is no -A freeze and the taxpayer indicates that the TC 150 was backed out in error by RIVO, refer the case for resolution:

Send an e4442 to RIVO stating that the return that was backed out in error needs to be reinstated. Employees that do not have e4442 capabilities should follow guidance in paragraph (2) of IRM 21.5.6.4.35.3.1.1, -R Freeze with RIVO Involvement and the Taxpayer is Claiming Identity Theft.

Place the e4442 in the "RICS RIVO Complex Issue" , Not ID Theft Queue.

On cases with a P- freeze and either of the following is present on the account, only RIVO can release the overpayment with these account conditions. If the account also contains a -A Freeze, work the case using normal procedures, but also refer the case to RIVO to release the freeze. Send an e4442 to RIVO requesting release of the P- Freeze. Use Referral type IRM and select category RICS IVO – CP 53X (TC 841 DLN 77711/77712/77713/77714) from drop-down.

TC 841 DLN Blocking Series 77711, 77712, 77713, or 77714OR

TC 971 AC 123 MISC>TPP RECOVERY and TC 971 AC 805 MISC>REFCANCL18

The account may have been reversed by RIVO, before all the IRP data was made available. CP 36N and CP 36P transcripts generate when specific RIVO indicators are on CC TXMOD/ENMOD. If there is an -A freeze and your research supports a different determination (e.g., DUPF, IDT1, IDT3, 1040X, etc.), refer to IRM 25.23.4.10.8 , No Identity Theft (NOIDT) Determinations, for additional information.

Do not attempt to contact RIVO units or route cases to the following controls. Continue to follow established IRM procedures for your case type (examples: DUPF, XRET, IDT(X)/IDS(X), TPRQ, etc.).

Open Control

Explanation

14875XXXXX

Generic number for closed CI prior year Transcripts. Taxpayer Relations has forwarded the transcript to the generic number

14876XXXXX

Generic holding number used to input CC NOREF/NOREFE. RIVO is not actively working the case

148XX

Generic number, if the case is not assigned to a specific TE or under the NCAT control

A return is eligible to be referred to RIVO for verification if it meets all of the following criteria:

The taxpayer has an SSN, not an ITIN

The return was filed by the SSN owner

The case is not a CP 36F

The return is a current year return

IRPTR is not available or does not match the income reported on the "current" year return

IRPTR is not "fully loaded" for the "current" tax year

If

And

Then

(1) The 2nd return does not match IRPTR, or IRPTR information is not available, and the 2nd return is eligible to be referred to RIVO,

RIVO determined the 1st return to be fraudulent per paragraph (4) above andmeets all the requirements in paragraph (7),

Perform the following actions:

Accept the RIVO determination that the original return is fraudulent

Open a control base to RIVO 1487777777, C# AMTOVERIFY, A using Category Code MXEN

(2) Unresolved credits remain on the module with no subsequent adjustment action or activity by RIVO, Memphis QRP, Brookhaven Pre-Refund Team or Exam,

Freeze condition involves an -A freeze,

Do not open a new control base.Close all previous erroneous open control bases for 1487500000, 1487599998, 0650199999, and 0654599998.Also update the activity to" CLSTOIDTVA" This way RIVO will know IDTVA is resolving the case.

Proceed to IRM 25.23.4.10.2, Identity Theft (IDT) Cases/Transcripts with RIVO and/or TPP Involvement - Resolution Tables, for additional processing guidance.

Fraudulent activity on a deceased taxpayer’s account usually occurs very early in the tax year, prior to normal processing time frames. It typically involves filing a tax return but is not limited to those case types.

Cases with deceased indicators can be identified on the following IDRS Command Codes.

INOLET or IMFOLE: With the actual date of death (DOD) displayed.

TXMOD or IMFOLT: TC 540 posted on the module. For more information on this indicator, see IRM 25.23.2.8.4.2, Locking Individual Accounts - Decedent Accounts.

Decedent accounts may reflect fiduciary information as provided on Form 56, Notice Concerning Fiduciary Relationship, or with other legal documentation establishing the court appointed fiduciary relationship.

This documentation may also be included with the submission of the identity theft claim. If fiduciary information is available on IDRS, compare IDRS with the Form 56 in the case documents. If it does not match, determine which is the most current. When Form 56, Notice Concerning Fiduciary Relationship, is received and IDRS does not reflect matching fiduciary information, route the form to Entity for processing. Refer to Exhibit 21.1.7-17, Forms – Routing Guide.

Thoroughly research and consider all information available in documentation submitted and/or internal systems when making an identity theft determination for a decedent account.

When the taxpayer (or surviving spouse) submitted the claim and the alleged victim is now deceased, the date of death (DOD) will not be a factor in making an identity theft determination. Refer to paragraph (8) below for additional considerations specific to decedent accounts. Then proceed to IRM 25.23.4.8.2, Streamline Identity Theft (IDT) Case Identification and Processing.

When the fiduciary or another individual files the claim on behalf of a deceased taxpayer after the date of death (DOD), or the case is IRS identified IDT, refer to the table below:

If additional information is needed to make an IDT determination, refer to paragraph (8) below.

If

And

Then

(1) The claim indicates someone filed a tax return using the deceased individual’s informationORThe case is IRS identified,

The return in question is not verifiable and has an IRS received date after the DOD,

Consider the return in question invalid meeting streamline criteria. Document your research and determination in a CII case note. Then, follow procedures in IRM 25.23.4.10.1, Identity Theft (IDT) with Invalid Returns, to resolve the case.

(2) The claim indicates someone filed a tax return using the deceased individual’s informationORThe case is IRS identified,

The return in question is reporting verifiable income and has an IRS received date after the DOD,

Consider the return in question invalid meeting streamline criteria when at least two (2) of the following are true:

IRPTR indicates the income reported is invalid.

IRPTR reflects a name that is not the taxpayer’s.

This does not include typographical errors or names that may be interchangeable (i.e., Christopher vs. Chris, etc.).

IRPTR indicates the EIN may be fabricated.

Income reflected on IRPTR is not consistent with the taxpayer’s income history (i.e., high wages after years of only Social Security or Retirement benefits, etc.).

A scheme is met. See IRM 25.23.4.8.1, Identity Theft (IDT) Determinations – Schemes, and its subsections for additional information.

Significant differences when compared to prior year returns are identified and meet requirements for a determination to be made. See Exhibit 25.23.4-1, 25.23.4-1, IRPTR/IDRS Data Decision Tree.

If criteria in (1) above are not met, follow non-streamline procedures in IRM 25.23.4.10.1, Identity Theft (IDT) with Invalid Returns, to resolve the case.

(3) The claim indicates someone filed a tax return using the deceased individual’s informationORThe case is IRS identified,

A return has not been received,

The taxpayer is not a victim of identity theft. Follow procedures in IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations.

(4) The claim indicates someone filed a tax return using the deceased individual’s informationORThe case is IRS identified,

A return was GUF VOIDED/DELETED.ORA return was moved to MFT 32ANDThe MFT 30 module does not reflect a return,

The identity theft issue was previously resolved. Follow procedures in IRM 25.23.4.10.6, Identity Theft (IDT) – Previous Action.

(5) The claim indicates an individual opened a line of credit, applied for or received benefits, or otherwise utilized the deceased individual’s information,

Research shows there is no impact to tax administration and no income related issue to address,

The taxpayer’s Personally Identifying Information (PII) is compromised. Follow procedures in IRM 25.23.4.8, Identity Theft (IDT) Common Number (CN) Ownership and Case Processing Determinations, paragraph (8) Table Scenario (1).

(6) The claim indicates someone received or earned income using the deceased individual’s information,

IRPTR reflects income reported for a tax year after the taxpayer’s DOD,

Follow procedures in IRM 25.23.13, Income Related Identity Theft, to make a determination and resolve the case.

An individual who submitted the claim on behalf of the taxpayer prior to the DOD will be treated as an unauthorized third party when it is not a covered relationship and proof of a fiduciary relationship or legal guardianship is not provided. See IRM 25.23.4.18, Communicating with Taxpayers, for more information about covered relationships. IDTVA will not request this documentation for claims, unless it is a dependent related IDT issue. See IRM 25.23.4.8.4, Dependent Related Identity Theft (IDT) – General, and its subsections for additional information.

Additional considerations for decedent accounts are listed below:

Decedent cases usually require the filing of a Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. Check for evidence that is required when processing a deceased taxpayer’s return. See IRM 21.6.6.2.21.2, Processing Decedent Account Refunds, for additional information.

Refer to IRM 3.13.5.120.9, Inputting Name Changes for Deceased Taxpayers, to determine if it is appropriate to update the entity to reflect DECD.

When conducting research on cases, you should determine the type of case you are working, such as invalid/valid, valid/invalid, or invalid/invalid, etc. Before proceeding with case processing, complete and thorough research must be conducted. To aid you in resolving the case, you will use various IRM guidance throughout this section and other IRM sections, in addition to resources listed below.

IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview

IRP Data - Research CC IRPTR/TRDBV to review case for W-2’s, 1099’s etc.

IRPTR/IDRS Data Decision Tree - The decision tree in Exhibit 25.23.4-1 was created to assist employees in reviewing cases with specific characteristics of fraud

IRM 25.23.4.10.1 , Identity Theft (IDT) with Invalid Returns, an IRSN should be created as a last resort when employees are not able to make a CN determination on one or both returns

IRM 25.23.2.6.6.3, Identity Theft Claims Submitted by Individuals Who Do Not Appear to be the Victims

Because an external business data breach return can be identical or similar, also refer to IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, for additional items to review to prevent the mishandling of an actual IDT case.

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For returns with Schedule C income, complete research must be performed. A determination must be made whether the original return can be nullified or if it must be moved to an IRSN. This is regardless of whether the refund was lost, offset or falls under the no lost refund process.

To treat a return with Schedule C income as a nullity, there must be a high probability that the Schedule C return was not filed by the TIN owner.

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

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

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

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

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

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

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

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

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

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

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

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

In situations where it cannot be easily determined whether a return with Schedule C income should be treated as a nullity, move the return to an IRSN. Also refer to IRM 25.23.4.7, Non-Streamline Identity Theft (IDT) Case Processing.

If the refund is "not lost" or only partially lost, the lead or manager must review the case and concur with the nullity determination to ensure the return is not nullified in error. Accurate and complete research must be performed, in order to avoid a potential missed assessment. CSR/TE should include a case message of Schedule C determination and suspend to the work leader/manager for approval. Prior to requesting approval, CSR/TE must input a case note with their determination. If a work leader/manager concurs with the findings and the return(s) are nullified, a CII case note will be placed on CII indicating "Manager or Lead concurs with determination" , or similar remarks.

Lead or manager concurrence is not required if research indicates the valid taxpayer does not have a filing requirement and/or the invalid return meets any scheme identified in IRM 25.23.4.8.1, Identity Theft (IDT) Determination - Schemes, and its applicable subsections.

In situations where a Schedule C return with a "no lost refund" was treated as a nullity and the taxpayer submits another claim or makes an inquiry about the refund, refer the case to ITVA HQ via secure email. Prepare and email Form 4442 using the subject line: “Schedule C nullity – refund inquiry” to ITVA HQ or similar remarks. Document all research completed in a CII case note and/or on Form 4442. Attach Form 4442 to your CII case. Suspend the case awaiting a response from ITVA HQ. Upon receipt, the account will be researched. A response on how to address the account will be received within 7 business days.

Proceed to IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, for additional processing guidance.

You can identify taxpayers known to be impacted by a preparer data breach by a TC 971 AC 123 MISC "PREPARER CONTACT" with no secondary date on CC ENMOD/IMFOLE. The indicator is placed on the accounts of taxpayers whose tax return preparer has notified the IRS of compromised PII due to a data breach.

A taxpayer may submit a Form 14039, police report, or correspondence indicating their preparer advised them of their personal information potentially being compromised due to a data breach incident. A TC 971 AC 123 MISC "PREPARER CONTACT" may or may not be present in these instances. Conduct research as described below to determine if the taxpayer is impacted by identity theft.

Taxpayers are not always aware they are impacted by a data breach. Caution must be used when speaking with the taxpayer to avoid inadvertent disclosure of this account information even after verifying the taxpayer’s identity. The external business/preparer is responsible for advising the taxpayer of the incident.

Identity theft returns resulting from an external business/preparer data breach may appear to be duplicate or amended returns. These fraudulent returns may include:

Duplicate or similar information to previously filed returns.

Income information that is consistent with filing history and/or matches IRPTR data.

The same or similar tax return preparer information.

Different refund/direct deposit information.

If it appears the valid taxpayer received a refund related to a fraudulent return filed due to a data breach incident, refer to IRM 25.23.4.8.2.4.1, TIN Owners Receiving Fraudulent Refunds in Preparer Data Breach Scheme.

The presence of a TC 971 AC 123 MISC "PREPARER CONTACT" on a taxpayer’s entity does not confirm identity theft. Complete research must be conducted to verify the taxpayer’s claim. Returns determined to be invalid can be resolved following streamline procedures. Account research and the determination must be documented in a CII case note. Use the table below to assist in making Common Number (CN) ownership determinations when an external business/preparer data breach indicator is present.

When the taxpayer is reporting income related IDT for any tax year, the presence of a TC 971 AC 123 will not be considered when conducting research. Normal procedures will be followed to make a determination and resolve the account.

If

And

Then

(1) Form 14039, police report, or correspondence indicating identity theft is received, there is a TC 971 AC 123 MISC "PREPARER CONTACT" present,

The only difference between the posted return and duplicate return is the refund/direct deposit information,

Consider the taxpayer submitting the identity theft claim to be the valid taxpayer. Refer to paragraph (7) below.

(2) Form 14039, police report, or correspondence indicating identity theft is received, there is a TC 971 AC 123 MISC "PREPARER CONTACT" present,

There is no difference between the posted return and duplicate return; this is a true duplicate,

When the name/address, dependents, income/credits, tax preparer/3rd party contact authorization, and refund/direct deposit/balance due information are all consistent with the filing history of the valid taxpayer, or if after researching the account, you cannot find evidence of tax related identity theft, refer to paragraph (6) below.

When the name/address, dependents, income/credits, tax preparer/3rd party contact authorization, and/or refund/direct deposit/balance due information are not consistent with the filing history of the valid taxpayer, there is a high probability the valid taxpayer has not filed a return. Consider the taxpayer submitting the identity theft claim to be the valid taxpayer. Refer to paragraph (7) below.

(3) Form 14039, police report, or correspondence indicating identity theft is received, there is a TC 971 AC 123 MISC "PREPARER CONTACT" present,

There is only one return present,

When the name/address, dependents, income/credits, tax preparer/3rd party contact authorization, and refund/direct deposit/balance due information are all consistent with the filing history of the valid taxpayer, refer to paragraph (6) below.

When the name/address, dependents, income/credits, tax preparer/3rd party contact authorization, and/or refund/direct deposit/balance due information are not consistent with the filing history of the valid taxpayer, there is a high probability the valid taxpayer has not filed a return. Consider the taxpayer submitting the identity theft claim to be the valid taxpayer. Refer to paragraph (7) below.

(4) Form 14039, police report, or correspondence indicating identity theft due to an external business/preparer data breach is received,

TC 971 AC 123 MISC “PREPARER CONTACT” is not present,

Document your research and determination in a CII case note. Lead/Manager concurrence with the determination must be received and documented in a CII case note prior to taking action on the account.

Once concurrence is received, follow procedures in the applicable table scenario (above).

Returns filed using information obtained from a preparer data breach have a higher likelihood of being processed as valid returns. When a taxpayer is known to have been affected by a preparer data breach incident but has not yet been impacted by tax related identity theft, the IRS will take additional precautions to protect the taxpayer’s account. Take the following actions to resolve accounts with the TC 971 AC 123 "PREPARER CONTACT" indicator when an invalid return has not been filed:

Update the CII Category Code to IDT4.

Input TC 971 AC 506 with MISC "WI AM OTHER" . For the secondary date, use the current filing year or the year of breach, if known. Do Not input a TC 971 AC 504.

Issue Letter 4674C. Include paragraphs F, R, I, and o. For international taxpayers, use r in place of o.We reviewed your identity theft claim (identity theft affidavit or police report) dated MM/DD/YYYY and found no indication identity theft affected the tax periods above.

Do not include the quotation marks when using the special paragraph provided above.

If the TC 971 AC 506 is not input prior to cycle 47 of the processing year, an IP PIN/CP01A may be delayed for the upcoming filing season. Use the appropriate special paragraphs in Exhibit 25.23.4-25, Closing Letter Paragraph Selections, in addition to the paragraphs selected for your closing Letter 4674C.

Follow procedures in IRM 25.23.4.8.2.4.2, External Business/Preparer Data Breach Streamline Identity Theft (IDT) - One Return Present, or IRM 25.23.4.8.2.4.3, External Business/Preparer Data Breach Streamline Identity Theft (IDT) - More Than One Return Present, to correct the account.

The Internal Revenue Service is aware of a scheme where criminals, after stealing client data from tax professionals, file fraudulent tax returns which include the taxpayers’ real bank accounts for the refund deposit. When the fraudulent return is processed, the refund is deposited into the real taxpayer’s account. The criminal subsequently contacts the taxpayer requesting/demanding the funds be returned and gives instructions telling the taxpayer how to return the funds.

Accounts that have been identified by IRS as being part of the scheme will show a "TC 971 AC 123 – MISC CODE: TPP RECOVERY" or will contain an open control as shown in (3) below.

If you receive a call from a taxpayer who meets the scheme criteria (taxpayer can self-identify) and needs to return the fraudulent tax refund take the following actions:

Identify the tax period the refund was issued (e.g., TY 2017)

Review the account for the following TC 971 marker or control base. Accounts already identified as part of the scheme will have: •TC 971 AC 123 - MISC Code: TPP Recovery• Open control on TXMOD assigned to 1487388888 with the activity RECOVERY and a category MISC

If the account has no marker and no open control, open a control base on CC TXMOD with the following information: •ACTON •C#, RECOVERY, M, MISC •1487388888,*

The open control will result in RICS creating a TC 971 AC 123 marker, via a batch process and will ensure the account is worked through the TPP process.

If there is an existing "RECOVERY MISC" control or if the account already has the TC 971 AC 123 - MISC TPP RECOVERY marker, DO NOT open a control.

Provide instructions to the taxpayer on how to return the refund to the IRS.

If

Then

(1) The refund remains in the taxpayer’s bank account (not transferred or withdrawn).

Follow instructions in IRM 21.4.5.12(6), How to Repay an Erroneous Refund or Return an Erroneous Refund Check or Direct Deposit, to advise taxpayer how to submit an IDT claim and repay the refund.

Warn the taxpayer that the criminal who filed the return may contact them by phone or email to request transfer of the refund. The criminal may claim to work at the IRS or for a collection agency hired by the IRS.

(2) The refund was withdrawn from the taxpayer’s account using Treasury Direct. The withdrawal can be identified on the taxpayer’s statement as Treasury Direct followed by an account number that starts with a letter followed by 9 numbers (e.g., Z123456789).

Explain that Treasury Direct and IRS are not the same agency.

Advise the taxpayer to contact the Treasury Direct - Customer Service at 1-844-284-2676 to discuss reimbursement/recovery of funds, or ask their bank to contact Treasury Direct.

Follow instructions in IRM 21.4.5.12(6), How to Repay an Erroneous Refund or Return an Erroneous Refund Check or Direct Deposit, to advise taxpayer how to submit an IDT claim and repay the refund when Treasury Direct has reimbursed or recovered the funds.

(3) The taxpayer transferred the refund amount to the criminal, mistakenly believing they were repaying the refund to the IRS.

Ask the taxpayer to complete Form 14039, Identity Theft Affidavit, and attach a copy of a bank statement or document showing the transfer. The Form 14039 should also include any description or documentation of the criminal’s phone call/email that the taxpayer can provide.

If taxpayer needs to file their tax return, advise them to follow the steps outlined in the Taxpayer Guide to Identity Theft. Taxpayers unable to file electronically should mail a paper return along with Form 14039, Identity Theft Affidavit, stating they were victims of a tax return preparer data breach.

If the taxpayer transferred the refund amount to the criminal, mistakenly believing they were repaying the refund to the IRS, and provides the written documentation described in (4) above, treat the refund as a lost refund. Take the following action:

If

Then

(1) The taxpayer did not file a return.

Follow the lost refund procedures in paragraph (2) of IRM 25.23.4.8.2, Streamline Identity Theft (IDT) Case Identification and Processing, to correct the taxpayer’s account.

Email a copy of the taxpayer’s documentation (or the CII number if the documentation is on CII) to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Ensure to address the return, as appropriate. See IRM 25.23.4.8.2.4.2, External Business/Preparer Data Breach Streamline Identity Theft (IDT) - One Return Present, for additional information.

(2) The taxpayer did file a return.

Follow the procedures in IRM 25.23.4.10.1 , Identity Theft (IDT) with Invalid Returns.

Email a copy of the taxpayer’s documentation (or CII number if the documentation is on CII) to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Ensure to address the return, as appropriate. See IRM 25.23.4.8.2.4.3, External Business/Preparer Data Breach Streamline Identity Theft (IDT) - More Than One Return Present, for additional information.

If the taxpayer says they transferred the refund amount to the criminal, mistakenly believing they were repaying the refund to the IRS, but does not provide the written documentation described in (4) above, the refund will be treated as if the taxpayer had full access and use of it. Take the following action:

If

Then

(1) The taxpayer did not file a return,

Follow the "no lost" refund procedures in paragraph (2) of IRM 25.23.4.8.2, Streamline Identity Theft (IDT) Case Identification and Processing, to correct the taxpayer’s account.

Follow the procedures in IRM 21.4.5.6.1, Account Actions For Category D Erroneous Refunds, to request repayment of the refund.

(2) The taxpayer did file a return,

Follow the procedures in IRM 25.23.4.10.1 Identity Theft (IDT) with Invalid Returns, to correct the taxpayer’s account.

If the refund issued on the IDT return is greater that the refund on the taxpayer’s return, follow the procedures in IRM 21.4.5.6.1, Account Actions For Category D Erroneous Refunds, to request repayment of the difference.

Consider the case to meet One Return IDT when any of the following account conditions exist. Take the necessary actions to resolve the account as described.

If TC 470 CC 90 was input, TC 472 must also be input when the valid taxpayer will have a balance owed.

If

And

Then

(1) Only one return meeting nullity criteria has posted (TC 150):

For the year in question, the taxpayer:

Was not of age to work,

Is deceased,

Does not have a filing requirement, or

Has not yet filed a return.

Ensure CII case notes include your research, determination, and lead/managerial approval to nullify the invalid return.

Update the taxpayer’s entity information to reflect the CN owner’s name, current address, and phone number, if provided.

Input an adjustment to fully back out the return. Use BS 05 and RC 139. Use HC 3 if the adjustment will not result in a credit remaining on the module. Use HC 4 to prevent a refund of any remaining credits, when necessary.

Input TC 971 AC 850 when the invalid return includes direct deposit information.

If the valid taxpayer received the refund from the invalid return, see IRM 25.23.4.8.2.4.1, TIN Owners Receiving Fraudulent Refunds in Preparer Data Breach Scheme.

If any portion of the refund is lost, see IRM 25.25.4.6, Reversing Identity Theft Lost Refunds.

Input TC 971 AC 501/506, as appropriate.

Refer to IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions, to determine if the taxpayer has a filing requirement, and take appropriate actions.

Refer to Exhibit 25.23.4-21, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, for additional account actions that may be required.

(2) Only one return filed by the valid taxpayer has posted (TC 150):

A second, unprocessed return meeting nullity criteria has been received.

Input TC 290 .00 with BS 05 and RC 139. Use HC 3 if the adjustment will not result in a credit remaining on the module. Use HC 4 to prevent a refund of any remaining credits, when necessary.

Input TC 971 AC 501/506, as appropriate.

Refer to Exhibit 25.23.4-21, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, for additional account actions that may be required.

Follow the procedures below when multiple returns are present.

If TC 470 CC 90 was input, TC 472 must also be input when the valid taxpayer will have a balance owed.

Statute year returns require additional research prior to taking action on an account. Review IRM 25.23.4.9, Statute Processing Considerations, to ensure all applicable statutes are protected.

If

And

Then

(1) Multiple invalid returns are present,

For the year in question, the taxpayer:

Was not of age to work,

Is deceased,

Does not have a filing requirement, or

Has not yet filed a return.

Ensure CII case notes include your research, determination, and lead/managerial approval to nullify the invalid returns.

Update the taxpayer’s entity information to reflect the CN owner’s name, current address, and phone number, if provided.

Input TC 971 AC 850 when the invalid return includes direct deposit information.

Input an adjustment to fully back out the return(s). Use BS 05 and RC 139. Use HC 3 if the adjustment will not result in a credit remaining on the module. Use HC 4 to prevent a refund of any remaining credits, when necessary.

If the valid taxpayer received the refund from the invalid return, see IRM 25.23.4.8.2.4.1, TIN Owners Receiving Fraudulent Refunds in Preparer Data Breach Scheme.

If any portion of the refund is lost, see IRM 25.25.4.6, Reversing Identity Theft Lost Refunds.

Input TC 971 AC 501/506, as appropriate.

Refer to IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions, to determine if the taxpayer has a filing requirement, and take appropriate actions.

Refer to Exhibit 25.23.4-21, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, for additional account actions that may be required.

(2) The valid taxpayer’s return has posted as the TC 150,

At least one invalid return meeting nullity criteria has been received.

Ensure CII case notes include your research, determination, and lead/managerial approval to nullify the invalid return(s).

Input TC 290 .00 with BS 05 and RC 139. Use HC 3 if the adjustment will not result in a credit remaining on the module. Use HC 4 to prevent a refund of any remaining credits, when necessary.

Input TC 971 AC 501/506, as appropriate.

Refer to Exhibit 25.23.4-21, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, for additional account actions that may be required.

(3) An invalid return has posted as the TC 150,

The valid taxpayer’s return has been received.

This scenario will be followed when more than one invalid return is received, the valid taxpayer has filed a return, and the TC 150 has been determined to be invalid.

Ensure CII case notes include your research, determination, and lead/managerial approval to nullify the invalid return(s).

Update the taxpayer’s entity information to reflect the CN owner’s name, current address, and phone number, if provided.

If the valid taxpayer’s return does not have a posted TC 976, see IRM 25.23.4.6.5.2, Unprocessed Documents, for applicable procedures.

Input TC 971 AC 850 when the invalid return includes direct deposit information.

Input an adjustment to the valid return figures, as allowable. Use BS 00 and RC 139. Use HC 3 or HC 4 when a credit remaining on the module must be held.

If the valid taxpayer received the refund from the invalid return, see IRM 25.23.4.8.2.4.1, TIN Owners Receiving Fraudulent Refunds in Preparer Data Breach Scheme.

If any portion of the refund is lost, see IRM 25.25.4.6, Reversing Identity Theft Lost Refunds.

Input TC 971 AC 501/506, as appropriate.

Refer to Exhibit 25.23.4-21, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, for additional account actions that may be required.

You can identify taxpayers known to be impacted by tax preparation software misuse by a TC 971 AC 123 with specific MISC fields on CC ENMOD/IMFOLE. An indicator is placed on the accounts of taxpayers when the IRS is notified of compromised loss of personally identifying information (PII) due to tax preparation software misuse. Refer to the following list of the MISC fields for incidents that have been reported to the IRS.

"TTAX LIST" - Intuit/TurboTax has reported an attempt to misuse the taxpayer’s PII.

This indicator is only used to mark accounts that have the potential to be impacted by tax related identity theft. Thorough research must be conducted to make a determination prior to taking any actions on the account.

A taxpayer may submit a Form 14039, police report, or correspondence indicating their tax preparation software company advised them of their personal information being compromised. A TC 971 AC 123 with a MISC field listed above may or may not be present in these instances. Conduct research as described below to determine if the taxpayer is impacted by identity theft.

Taxpayers are not always aware their PII was used to create a new account or attempt to file a tax return with the tax preparation software they have used in the past. Caution must be used when speaking with the taxpayer to avoid inadvertent disclosure of this account information even after verifying the taxpayer’s identity. The tax preparation software company is responsible for advising the taxpayer of the incident.

Identity theft returns resulting from tax preparation software misuse may appear to be duplicate or amended returns. These fraudulent returns may include:

Duplicate or similar information to previously filed returns.

Income information that is consistent with filing history and/or matches IRPTR data.

The same or similar tax return preparer information.

Different refund/direct deposit information.

The presence of a TC 971 AC 123 with a MISC field listed in paragraph (1) above on a taxpayer’s entity does not confirm identity theft. Complete research must be conducted to verify the taxpayer’s claim. Returns determined to be invalid can be resolved following streamline procedures. Use the table below to assist in making Common Number (CN) ownership determinations when misuse of tax preparation software is suspected.

When the taxpayer is reporting income related IDT for any tax year, the presence of a TC 971 AC 123 will not be considered when conducting research. Normal procedures will be followed to make a determination and resolve the account.

If

And

Then

(1) Form 14039, police report, or correspondence reporting identity theft is received, there is a TC 971 AC 123 MISC field indicating misuse of tax preparation software present,

The only difference between the posted return and duplicate return is the refund/direct deposit information,

Consider the taxpayer submitting the identity theft claim to be the valid taxpayer. Refer to paragraph (6) below.

(2) Form 14039, police report, or correspondence reporting identity theft is received, there is a TC 971 AC 123 MISC field indicating misuse of tax preparation software present,

There is no difference between the posted return and duplicate return; this is a true duplicate,

When the name/address, dependents, income/credits, tax preparer/3rd party contact authorization, and refund/direct deposit/balance due information are all consistent with the filing history of the valid taxpayer, or if after researching the account, you cannot find evidence of tax related identity theft, refer to paragraph (5) below.

When the name/address, dependents, income/credits, tax preparer/3rd party contact authorization, and/or refund/direct deposit/balance due information are not consistent with the filing history of the valid taxpayer, there is a high probability the valid taxpayer has not filed a return. Consider the taxpayer submitting the identity theft claim to be the valid taxpayer. Refer to paragraph (6) below.

(3) Form 14039, police report, or correspondence reporting identity theft is received, there is a TC 971 AC 123 MISC field indicating misuse of tax preparation software present,

There is only one return present,

When the name/address, dependents, income/credits, tax preparer/3rd party contact authorization, and refund/direct deposit/balance due information are all consistent with the filing history of the valid taxpayer, refer to paragraph (5) below.

When the name/address, dependents, income/credits, tax preparer/3rd party contact authorization, and/or refund/direct deposit/balance due information are not consistent with the filing history of the valid taxpayer, there is a high probability the valid taxpayer has not filed a return. Consider the taxpayer submitting the identity theft claim to be the valid taxpayer. Refer to paragraph (6) below.

(4) Form 14039, police report, or correspondence reporting identity theft is received, there is a TC 971 AC 123 MISC field indicating misuse of tax preparation software present,

The are multiple differences between the posted return and duplicate return,

Follow normal procedures to make an identity theft CN ownership determination without consideration of the TC 971 AC 123 present.

(5) Form 14039, police report, or correspondence indicating identity theft due to tax preparation software misuse is received,

TC 971 AC 123 MISC “PREPARER CONTACT” is not present,

Document your research and determination in a CII case note.

Lead/Manager concurrence with the determination must be received and documented in a CII case note prior to taking action on the account.

Tax related: Follow the applicable streamline procedures to resolve the case. See IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases.

If a NOIDT determination is made, the taxpayer’s issue will be resolved as non-tax-related due to the known loss of PII. See IRM 25.23.4.8, Identity Theft (IDT) Common Number (CN) Ownership and Case Processing Determinations, paragraph (9) table scenario (1) for additional information.

Non-Tax-Related: Follow the applicable procedures in IRM 25.23.3.2.3, Self-Identified - Non-Tax-Related Identity Theft - IDT4 Overview, to resolve the case.

When a taxpayer is known to have been affected by misuse of tax preparation software but has not yet been impacted by tax related identity theft (i.e., invalid return received), the IRS will take additional precautions to protect the taxpayer’s account. Take the following actions to resolve accounts identified by a TC 971 AC 123 with a MISC field listed in paragraph (1) above when an invalid return has not been filed:

Update the CII Category Code to IDT4. Refer to IRM 25.23.3.2.3, Self-Identified - Non-Tax-Related Identity Theft - IDT4 Overview.

Input TC 971 AC 504 with MISC NKI-M.

Issue Letter 4402C. Include two selectable open paragraph selections. Include the following suggested wording (or similar):"We received your identity theft claim regarding the fraudulent account and possible fraudulent filing of a tax return by your private tax program. We have processed your claim and placed an indicator on your account. We don’t need any additional information from you." AND"We highly recommend obtaining an Identity Protection Personal Identification Number (IP PIN) to protect your account. Additional information can be found below."

Do not include the quotation marks when using the special paragraphs provided above.

See Exhibit 25.23.4-25, Closing Letter Paragraph Selections, for additional information for use of special paragraphs with IP PIN scenarios.

When you have determined the taxpayer is a victim of tax related identity theft (i.e., invalid return received) as a result of tax preparation software misuse, follow the applicable procedures in IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, depending on the facts and circumstances of your case.

When refund related identity theft (IDT) is suspected, the return in question must first be reviewed to determine if it meets streamline criteria, per IRM 25.23.4.8.2, Streamline Identity Theft (IDT) Case Identification and Processing.

When the return in question does not meet streamline criteria, refer to the applicable scenario below:

Form 14039 or police report was received: IRM 25.23.4.8.3.1, Taxpayer Identified Identity Theft (IDT) Determinations

IRS Identified: IRS Identified Identity Theft (IDT) Determinations: IRM 25.23.4.8.3.2, IRS Identified Identity Theft (IDT) Determinations

Follow the procedures below when a Form 14039 or police report has been received, there is only one return on the module, and the reporting taxpayer is stating they did not file the return in question. Ensure all required research has been completed prior to making a determination of Common Number (CN) ownership. See IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, and its subsections for detailed instructions. Document your research and determination in a CII case note.

If

And

Then

(1) A Form 14039, police report, or correspondence has been received,

The claim and posted return contain different addresses,

If supported by your research, treat the identity theft inquiry as belonging to the valid taxpayer.

If your research does not support determining in favor of the taxpayer who submitted the inquiry, correspond with both taxpayers to secure necessary documentation to make a determination. Refer to IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written). Include the questionnaire. Refer to IRM 25.23.4.18.2.3, Actions Based on No Response or Taxpayer Responses to Letter 5064C and/or Supplementary Questions Sent to Determine Common Number Ownership, and IRM 25.23.4.18.2.4, Final Stage Review (Associated with Letter 5064C Sent for Common Number Ownership), when the suspense timeframe has passed.

(2) A Form 14039, police report, or correspondence has been received and the return on file also includes an IDT claim,

The claim and posted return contain different addresses,

Correspond with both taxpayers to secure necessary documentation to make a determination. Refer to IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written). Include the questionnaire. Refer to IRM 25.23.4.18.2.3, Actions Based on No Response or Taxpayer Responses to Letter 5064C and/or Supplementary Questions Sent to Determine Common Number Ownership, and IRM 25.23.4.18.2.4, Final Stage Review (Associated with Letter 5064C Sent for Common Number Ownership), when the suspense timeframe has passed.

(3) A Form 14039, police report, or correspondence has been received,

The claim and posted return contain the same address,

If supported by your research, treat the identity theft inquiry as belonging to the valid taxpayer.

If your research does not support a determination of identity theft, see IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations.

(4) A Form 14039, police report, or correspondence has been received and the return on file also includes an IDT claim,

The claim and posted return contain the same address,

Correspond to secure necessary documentation to make a determination.

If a Form 14039, police report, or correspondence is received and the same address is included on the questionable return(s), send only one Letter 5064C when corresponding to request additional information.

Refer to IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written). Include the questionnaire.

Refer to IRM 25.23.4.18.2.3, Actions Based on No Response or Taxpayer Responses to Letter 5064C and/or Supplementary Questions Sent to Determine Common Number Ownership, and IRM 25.23.4.18.2.4, Final Stage Review (Associated with Letter 5064C Sent for Common Number Ownership), when the suspense timeframe has passed.

Follow the procedures below when a Form 14039 or police report has been received, there are multiple returns, and the reporting taxpayer is stating they did not file the return in question. Ensure all required research has been completed prior to making a determination of CN ownership. See IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, and its subsections for detailed instructions.

If

And

Then

(1) A Form 14039, police report, or correspondence is included with only one return,

The returns contain different addresses,

If supported by your research, treat the identity theft inquiry as belonging to the valid taxpayer.

If your research does not support determining in favor of the taxpayer who submitted the inquiry, correspond with both taxpayers to secure necessary documentation to make a determination. Refer to IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written). Include the questionnaire. Refer to IRM 25.23.4.18.2.3, Actions Based on No Response or Taxpayer Responses to Letter 5064C and/or Supplementary Questions Sent to Determine Common Number Ownership, and IRM 25.23.4.18.2.4, Final Stage Review (Associated with Letter 5064C Sent for Common Number Ownership), when the suspense timeframe has passed.

(2) A Form 14039, police report, or correspondence is included with only one return,

The returns contain the same address,

If supported by your research, treat the identity theft inquiry as belonging to the valid taxpayer.

If your research does not support a determination of identity theft, see IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations.

(3) A Form 14039, police report, or correspondence is included with multiple returns,

The returns contain the same address,

Correspond to secure necessary documentation to make a determination.

If a Form 14039, police report, or correspondence is received and the same address is included on the questionable return(s), send only one Letter 5064C when corresponding to request additional information.

Refer to IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written). Include the questionnaire.

Refer to IRM 25.23.4.18.2.3, Actions Based on No Response or Taxpayer Responses to Letter 5064C and/or Supplementary Questions Sent to Determine Common Number Ownership, and IRM 25.23.4.18.2.4, Final Stage Review (Associated with Letter 5064C Sent for Common Number Ownership), when the suspense timeframe has passed.

(4) A Form 14039, police report, or correspondence is received separate from any return, andMultiple returns have been filed under the common number,

None of the returns contain the same address as the current or previous address provided on the identity theft inquiry,

If supported by your research, treat the identity theft inquiry as belonging to the valid taxpayer.

If your research does not support determining in favor of the taxpayer who submitted the inquiry, correspond with all taxpayers to secure necessary documentation to make a determination. Refer to IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written). Include the questionnaire. Refer to IRM 25.23.4.18.2.3, Actions Based on No Response or Taxpayer Responses to Letter 5064C and/or Supplementary Questions Sent to Determine Common Number Ownership, and IRM 25.23.4.18.2.4, Final Stage Review (Associated with Letter 5064C Sent for Common Number Ownership), when the suspense timeframe has passed.

(5) A Form 14039, police report, or correspondence is received separate from any return, andMultiple returns have been filed under the common number,

At least one (but not all) of the returns contains the same address as the current or previous address provided on the identity theft inquiry,

If all returns contain the same address as the current or previous address provided on the identity theft inquiry, continue to table scenario (6) below.

If supported by your research, treat the identity theft inquiry and return(s) containing the same address as belonging to the valid taxpayer.

If your research does not support determining in favor of the taxpayer who submitted the inquiry, correspond with all taxpayers to secure necessary documentation to make a determination. Refer to IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written). Include the questionnaire. Refer to IRM 25.23.4.18.2.3, Actions Based on No Response or Taxpayer Responses to Letter 5064C and/or Supplementary Questions Sent to Determine Common Number Ownership, and IRM 25.23.4.18.2.4, Final Stage Review (Associated with Letter 5064C Sent for Common Number Ownership), when the suspense timeframe has passed.

(6) A Form 14039, police report, or correspondence is received separate from any return, andMultiple returns have been filed under the common number,

All of the returns contain the same address as the current or previous address provided on the identity theft inquiry,

Correspond with all taxpayers to secure necessary documentation to make a determination.

If a Form 14039, police report, or correspondence is received and the same address is included on the questionable return(s), send only one Letter 5064C when corresponding to request additional information.

Refer to IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written). Include the questionnaire.

Refer to IRM 25.23.4.18.2.3, Actions Based on No Response or Taxpayer Responses to Letter 5064C and/or Supplementary Questions Sent to Determine Common Number Ownership, and IRM 25.23.4.18.2.4, Final Stage Review (Associated with Letter 5064C Sent for Common Number Ownership), when the suspense timeframe has passed.

(7) More than one Form 14039, police report, or correspondence indicating an identity theft issue under the same TIN have been received,

The reporting taxpayers have different addresses,

Research the case as a possible Scrambled SSN. See IRM 25.23.4.6.1, Required Research, for additional information.

Correspond with all taxpayers to secure necessary documentation to make a determination. Refer to IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written). Include the questionnaire. Refer to IRM 25.23.4.18.2.3, Actions Based on No Response or Taxpayer Responses to Letter 5064C and/or Supplementary Questions Sent to Determine Common Number Ownership, and IRM 25.23.4.18.2.4, Final Stage Review (Associated with Letter 5064C Sent for Common Number Ownership), when the suspense timeframe has passed.

Follow the procedures below when a Form 14039 or police report has not been received and identity theft is suspected. Ensure all required research has been completed prior to making a determination of Common Number (CN) ownership. See IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, and its subsections for detailed instructions.

If

And

Then

(1) Identity theft is suspected, and a claim has not been received (IRSID),

All of the following conditions are met:

This is the first time one of the taxpayers has used the CN AND the other taxpayer has used the CN for more than one year.

The filing history is appropriate for the DOB associated with the CN.

Consider the taxpayer who has used the CN for more than one year to be the valid taxpayer.

Add a CII case note documenting your research and stating "1st Year Rule" to identify the scenario used to make the determination.

(2) Identity theft is suspected, and a claim has not been received (IRSID),

All of the following conditions are met:

One of the taxpayers has used the CN for 3 or more years AND the other taxpayer has used the CN for less than 3 years.

The filing history is appropriate for the DOB associated with the CN.

Consider the taxpayer who has used the CN for 3 or more years to be the valid taxpayer.

Add a CII case note documenting your research and stating "3 Year Rule" to identify the scenario used to make the determination.

(3) Identity theft is suspected, and a claim has not been received (IRSID),

All of the following conditions are met:

Complete and careful research provides reasonable evidence of CN ownership.

A CN ownership determination cannot be made using scenario (1) or (2).

Leave a CII case note documenting all research completed, including the evidence that supports your determinations.

Refer the case for managerial/lead concurrence with the determination made. A CII case note documenting concurrence with the determination must be input prior to taking action to resolve the account.

(4) Identity theft is suspected, and a claim has not been received (IRSID),

All of the following conditions are met:

Complete and careful research does not result in reasonable evidence of CN ownership.

A CN ownership determination cannot be made using scenarios (1), (2), or (3).

Your research does not support a determination of identity theft. Follow procedures in IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations

Dependent related identity theft (IDT) claims are received when misuse of a dependent’s TIN is suspected. Refer to the list below for examples of tax related dependent IDT scenarios:

A taxpayer’s dependent is listed as a primary taxpayer, secondary taxpayer, or dependent on an invalid return.

An individual is listed as a dependent on the return of a taxpayer who is not their parent/legal guardian (whose identity may or may not be known by the reporting person).

A taxpayer is not a dependent of anyone but is listed as a dependent on a return filed by an individual they do not know or an individual (who is not their parent/legal guardian) they do know who does so without their knowledge or consent.

For cases where the taxpayer self-identified potential dependent related identity theft, update the Category Code to IDT2 (including Spanish) if it has not already been done.

Do not reject an incomplete Form 14039.

An individual may report dependent related IDT for themselves or on behalf of another individual using Form 14039, a police report, or correspondence. Refer to the table below for additional information:

When following the table below, consider a third party that has not identified themselves as the parent, regardless of relationship, to be acting as a legal guardian.

Who filed the Dependent IDT Claim?

Overview

(1) Parent/legal guardian on behalf of their dependent under age 18.

Form 14039, second page, is designated to provide information in these instances.

If the dependent is now age 18 or older, follow Table Scenario (2) below.

When a Form 14039 is signed by a parent/legal guardian on behalf of their dependent child (under age 18), and the parental relationship can be verified through internal research, documentary evidence is not required to be submitted.

If the claim is for a tax year not available on CC DDBKD, or parent/legal guardian information is not available through review of the case documentation, account history, or research of CC DDBKD, proceed to IRM 25.23.4.8.4.2, Dependent Related Identity Theft (IDT) - Non-Streamline Research, to request proof of parent relationship/legal guardianship.

When the parent/legal guardian relationship cannot be confirmed, the reporting person will be treated as an unauthorized third party. Refer to paragraph (13) below and IRM 25.23.4.18.1, General IDTVA Letter Procedures, for additional letter requirements.

If there is an identity theft issue and the parent/legal guardianship cannot be confirmed, the identity theft issue may still be resolved.

The reporting person submitted Form 14039 on behalf of an individual they state is their child. The parent/legal guardian relationship cannot be confirmed through internal research, and documentation is not provided by the reporting person. The dependent has been claimed on a tax return determined to be invalid. The identity theft issue will be resolved, and the reporting person will be treated as an unauthorized third party.

(2) Parent/legal guardian on behalf of their dependent age 18 or older,

A legal guardian relationship or authorization to receive tax account information must be researched prior to taking any action on an account and verified before providing information to the reporting person.

When the dependent is age 18 or older, proof of the parental relationship alone is not sufficient.

Regardless of the reporting person’s filing history, the dependent’s status of enrollment in school, or the dependent residing at the same address as the reporting person, proof of legal guardianship or authorization to receive tax account information is required.

Once an individual is age 18, their tax account information is protected. An individual is not entitled to receive tax account information based on a confirmed parental relationship or history of dependency.

The confirmed parent files Form 14039 on behalf of their child who is age 19, enrolled in college, residing in the parent’s home, and claimed as a dependent by the reporting parent. There is no supporting documentation or authorization to receive tax account information. The reporting person is not authorized to receive tax account information.

The reporting person is considered an unauthorized third party until legal guardian relationship or authorization to receive tax account information is verified.

Current proof of legal guardianship (i.e., court order), Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization, must be received or reflected on the account for the reporting person to be considered an authorized third party.

If proof of legal guardianship or authorization to receive tax account information cannot be verified through review of the case documentation and internal research, proceed to IRM 25.23.4.8.4.2, Dependent Related Identity Theft (IDT) - Non-Streamline Research, to request proof of legal guardianship.

When the parent/legal guardian relationship cannot be confirmed, the reporting person will be treated as an unauthorized third party. Refer to paragraph (13) below and IRM 25.23.4.18.1, General IDTVA Letter Procedures, for additional letter requirements.

If there is an identity theft issue and the parent/legal guardianship cannot be confirmed, the identity theft issue may still be resolved.

An unauthorized third party submitted Form 14039 on behalf of an individual listed as the primary taxpayer on a return determined to be invalid per IRPTR Data Decision Tree criteria. The identity theft issue will be resolved following streamline procedures.

An unauthorized third party submitted Form 14039 on behalf of an individual listed as the secondary taxpayer on a return determined to meet Married Filing Joint Scheme criteria. The identity theft issue will be resolved following streamline procedures.

(3) Individual taxpayer reporting dependent IDT for themselves.

Consider these claims when the individual is self-reporting IDT and at least age 16 as of the signature date on the claim.

You can consider an IDT claim if the individual is now age 18 or older at the time of working the case.

A Form 14039 with IRS received date August 3, 2022, was submitted by an individual self-reporting to be a victim of dependent IDT. The dependent’s date of birth is July 1, 2007. You are working the case today. Because the reporting person is now age 18 or older, you may consider the IDT claim.

If the claim is not signed, use the postmark date on the envelope. If neither is present, use the IRS received date for purposes of considering the claimant’s age at the time of filing the claim.

(4) Individual taxpayer reporting dependent IDT for themselves is under age 16 as of the signature dateANDNot currently age 18 or older

The claim will not be considered. Refer to IRM 25.23.4.8.4.1, Dependent Related Identity Theft (IDT) - Streamline Determinations, for additional information to resolve the case.

(5) Individual taxpayer reporting dependent IDT for themselvesANDParent/legal guardian reporting IDT on behalf of their dependent

Self-reporting dependent’s claim is acceptable:

Link the related cases.

Issue an appropriate closing letter to the parent/legal guardian advising the dependent will be contacted directly, and close the CII case. If the dependent is age 18 or older and proof of legal guardianship has not been provided, treat the reporting person as an unauthorized third party.

Work the self-reporting dependent’s case following normal procedures.

Link the related cases.

Resolve the self-reporting dependent’s case as No Consideration, and close the case. See IRM 25.23.4.8.4.1, Dependent Related Identity Theft (IDT) - Streamline Determinations.

Work the parent/legal guardian reported case following normal procedures.

Dependent IDT claims may mention additional account issues that need to be addressed. Read the table below for some examples:

This table is not all inclusive.

If

Then

(1) Claim includes a statement regarding non-receipt of the Economic Impact Payment (EIP) or Recovery Rebate Credit (RRC):

Refer to IRM 25.23.4.20, Economic Impact Payment (EIP) and Recovery Rebate Credit (RRC) – General, and the related subsections after deciding to respond to the inquiry.

(2) Claim includes a statement regarding non-receipt of Advanced Child Tax Credit (AdvCTC):

Refer to IRM 25.23.4.21.2, Advanced Child Tax Credit (AdvCTC) – General.

Through the course of research, additional impacted individuals and/or tax years may be identified. There should be a clear path of research leading to the identification. Refer to the table below for examples:

IDT skilled employees are not to research preparer information on a return to identify other tax returns they have filed on behalf of other clients to determine if there are additional potential victims of identity theft.

How was the related case identified?

Example

(1) Complete Case Analysis (CCA) identified additional impacted tax years.

A 20-year-old taxpayer self identifies as a victim of dependent related identity theft. Form 14039 includes a statement indicating they are not a dependent of anyone and have not been since they turned age 18. Tax year 2023 is the only year listed on the claim. Research of CC DDBKD indicates they were claimed by the same unknown individual for tax years 2023 and 2022. You have identified 2022 as an additional impacted tax year.

Each impacted tax year must have a separate CII case. See IRM 25.23.4.3.1, CII and IDRS Case Controls, for additional information.

(2) Form 14039 submitted for multiple individuals or including a general statement.

A parent files Form 14039 for themselves explaining they couldn’t e-file and had to mail in their tax return because someone claimed their child, but they don’t know which one. Research determines the parent’s valid return claims three dependents. A review of each dependent reveals the verified parent and an unknown individual are claiming all three dependents. You have now determined there are three individuals impacted by IDT.

Each impacted individual must have a separate CII case. See IRM 25.23.4.3.1, CII and IDRS Case Controls, for additional information.

(3) CCA identified additional victims on an invalid tax return.

Form 14039 is submitted stating they are not a dependent of anyone. Research shows they were claimed as a dependent on a tax return that is determined to be invalid per IRPTR/IDRS data. All dependents on this invalid return are victims and must be addressed.

Additional victims may or may not have a familial relationship.

Each impacted individual must have a separate CII case. See IRM 25.23.4.3.1, CII and IDRS Case Controls, for additional information.

Dependent related IDT may be IRS identified when misuse of a TIN occurs on a tax return determined to be invalid. Each dependent on the invalid tax return must be addressed. See paragraph (5) Table Scenario (3) above for an example of IRS identified dependent related IDT.

When performing research for dependent related identity theft claims, employees will not determine the following:

Which parent/legal guardian is entitled to claim and/or represent the dependent.

Whether the person claiming the dependent is eligible for dependency or dependent-related credits included on a valid tax return.

It is possible for misuse of a dependent’s TIN to occur on a valid tax return. Modules where this occurs will not be adjusted to remove the dependent or dependent related credits. This will not prevent resolution of the dependent’s IDT issue.

Case assignment for dependent related IDT will follow the below guidance:

Assign dependent related IDT cases under the dependent’s TIN. See IRM 25.23.4.3.1, CII and IDRS Case Controls, for additional information.

Create a separate case for each individual for whom a claim is received and/or any impacted individual located through research completed based on a general statement. This may be identified by multiple TINs provided on a single claim or a statement describing the identity theft issue which results in recognition of multiple impacted individuals through the course of research.

A mother files a Form 14039 explaining her e-file was rejected because someone else claimed her children. Account research identifies the taxpayer usually claims two dependents. Both dependents are victims of dependent related IDT. Two separate cases are created, one for each dependent.

Create a separate case for each individual meeting IRS identified dependent IDT as described in paragraph (6) above.

Create a separate case for each impacted tax year.

The confirmed custodial parent explains their e-file was rejected. The rejection code indicated their daughter’s TIN was previously used on another filed tax return for the same year, 2023. Research of the dependent’s TIN identifies the daughter’s TIN was also used on a 2022 return that was previously confirmed as IDT and moved to MFT32. In addition to the 2023 case, a case for 2022 will be created.

Dependent related IDT cases will only be referred to IDTVA Specialty Functions when the claim is also related to a Compliance assessment made. Refer to Exhibit 25.23.4-5, ITVA Routing Matrix, for additional information regarding roles and responsibilities within IDTVA.

Case notes must clearly indicate the determination being made. Notes should provide sufficient details of the research path leading to identification of additional impacted individuals, when applicable. It is appropriate to notate a case ID, when available. Refer to IRM 25.23.2.3.4, Required Case and History Notes, for additional information on required case documentation.

Entity establishment may be necessary for dependent related IDT claims. If parent/legal guardianship is in question, do not establish or update the dependent’s entity with the reporting person’s address or telephone number until acceptable documentation is provided. When establishing or updating the entity of the dependent, refer to IRM 3.13.5.117, Establishing a New Account (TC 000), and Exhibit 25.23.4-22, Establishing or Updating Entities for Dependents. In addition to the guidance provided in these references, other actions may be necessary when establishing or updating the entity.

Do not include the word "minor" unless the correspondence includes the word "minor" in the Form 14039 Section B explanation or correspondence from the taxpayer.

The dependent’s age will not be used to identify them as a "minor" due to extenuating circumstances which may exist.

Do not include the reporting person’s information in the "Continuation of Primary Name" field. If the entity reflects an individual other than the confirmed parent/legal guardian in the Continuation of Primary Name field, update the entity to remove the name.

Include the telephone number from the case documents when establishing or updating the entity when it has been determined the correspondence was submitted by or on behalf of the dependent (not an unauthorized third party). See IRM 25.23.2.3.7, When to Update the Victim’s Address, for additional information.

Dependent related IDT requires the use of specific account indicators. The chart below provides further information on closing codes that may be necessary.

Account Indicator

Explanation

TC 971 AC 528

MISC Field Code: "WI IP DEPND"

Secondary Date: January 1st of the current calendar year to signify the processing year

Input after a tax-related identity theft issue is identified for a dependent to enroll individuals into the IP PIN program.

Additional tax-related IDT indicators are necessary to protect the account (i.e., 501 or 506).

If a new identity theft issue occurs after a previous case was resolved, the input of an additional TC 971 AC 528 is not necessary.

If the "IP PIN" field shows "0" on CC ENMOD/IMFOLE or a TC 971 AC 523 posted after the input of the TC 971 AC 528, an additional TC 971 AC 528 is required.

TC 971 AC 501

Input upon resolution of a taxpayer identified IDT issue affecting tax administration. See IRM 25.23.2.6.1, Closing Taxpayer Initiated Identity Theft Affecting Tax Administration - TC 971 AC 501, for more information.

TC 971 AC 506

Input upon resolution of an IRS identified IDT issue affecting tax administration. See IRM 25.23.2.6.3, Closing IRS Determined Identity Theft Affecting Tax Administration - TC 971 AC 506, for more information.

TC 971 AC 504

Input upon resolution of an IDT issue that has no impact to tax administration. See IRM 25.23.3.2.3, Self-Identified - Non-Tax-Related Identity Theft - IDT4, for more information.

The dependent’s TIN was used to get a credit card or ID and there were no tax related account issues.

Follow the guidance below when issuing correspondence to the reported victim for dependent related identity theft.

Use caution to ensure you do not inadvertently provide tax account information to an unauthorized individual.

All required correspondence will be issued under the dependent’s TIN. This includes sending correspondence to the individual submitting an identity theft claim on behalf of their dependent when the parent/legal guardian relationship has been verified.

Correspondence will be addressed to the dependent and their representative if there is information in the Continuation of Primary Name (i.e., POA, etc.).

Separate correspondence will be sent to everyone for whom a claim is received and for each IRS identified individual.

For individuals under the age of 18, Letter 4674C must be sent. Do not include the paragraph that directs them to request an IP PIN using Online Services. See IRM 25.23.2.9.1.2, Opting into the IP PIN Program through the Individual Online Account, for additional information. Taxpayers can be directed to irs.gov.ippin and/or irs.gov.ippinfaqs to obtain general information.

The taxpayer files a Form 14039 for themselves explaining someone filed a tax return under their TIN. Research determines an invalid HOH return with one dependent was moved to MFT32. The dependent is the taxpayer’s dependent based on a 3-year look back. All necessary actions are taken to resolve the taxpayer and dependent’s account. One closing letter will be sent to the taxpayer, and one closing letter will be sent to the dependent.

When a TC 971 AC 501/506 will not be input, advise the individual they may be able to obtain an IP PIN through the opt in process to protect their identity in the future.

For individuals under the age of 18, Letter 4674C must be sent. Do not include the paragraph that directs them to request an IP PIN using Online Services. See IRM 25.23.2.9.1.2, Opting into the IP PIN Program through the Individual Online Account, for additional information. Taxpayers can be directed to irs.gov.ippin and/or irs.gov.ippinfaqs to obtain general information.

Follow the guidance below when corresponding with a reporting person who has been determined to be an unauthorized third party or when third party authority is in question. Refer to IRM 25.23.4.18.1, General IDTVA Letter Procedures, for additional letter requirements.

Use caution to ensure you do not inadvertently provide tax account information to an unauthorized individual.

Third party correspondence will be issued under the reporting person’s TIN using their address of record unless there is a valid address update pending on the account or reason to believe their address has changed (i.e., an amended return has been received with a different address, there is a statement in the case documentation clearly stating the reporting person’s address, etc.).

DO NOT issue correspondence using the dependent’s TIN when following procedures for corresponding with a person who is not an authorized third party.

The following streamline determination procedures will apply to only the current and two (2) immediately preceding tax years.

There is no limit to the years when the individual is identified as a victim of IDT when they are claimed as a dependent on invalid returns (IRS identified Dependent IDT).

Prior to making a streamline determination, conduct basic research.

IDRS CC DDBKD: Used to confirm the parent/legal guardian relationship through internal research and identify the TIN(s) claiming the dependent by tax year.

CC DDBKD only lists the primary TIN on the tax return listing the dependent. When that TIN is not confirmed as the parent/legal guardian, it is appropriate to research the account information to determine if the return includes a secondary taxpayer who can be confirmed as the parent/legal guardian.

ITIN RTS: Used to research the ITIN application to confirm the parent/legal guardian relationship.

When the parent/legal guardian relationship cannot be easily confirmed using information provided and internal research, a streamline determination will not be made.

Refer to the table below for case scenarios meeting streamline determination criteria:

All scenarios below, except scenario (7), assume the parent/legal guardian relationship has been confirmed for cases where the dependent is under age 18 as of the signature date.

If

And

Then

(1) The Form 14039, police report, or correspondence indicates the individual was claimed by someone else.

Research shows the individual was claimed by a parent/legal guardian.

The individual is not a victim of identity theft. Follow procedures in IRM 25.23.4.8.4.3, Dependent Related Identity Theft (IDT) – Determinations, paragraph (1) table scenario (7).

(2) The Form 14039, police report, or correspondence indicates the individual was claimed by someone else.

Research shows the individual was not claimed by anyone (including themselves).

See IRM 25.23.4.8.4.2, Dependent Related Identity Theft (IDT) – Non-Streamline Research, paragraph (7) table scenario (4).

(3) The Form 14039, police report, or correspondence indicates the individual was claimed by someone else.

Research shows they were claimed by someone who is not a parent/legal guardian.

The individual is a victim of identity theft. See IRM 25.23.4.8.4.3, Dependent Related Identity Theft (IDT) – Determinations, paragraph (1) table scenario (9).

(4) The Form 14039, police report, or correspondence indicates the individual was claimed by someone else.

Research shows they were listed as the primary or secondary taxpayer on a Married Filing Joint (MFJ) return.

Refer to IRM 25.23.4.8.4.3, Dependent Related Identity Theft (IDT) – Determinations, paragraph (1) table scenario (6).

(5) The TIN is listed on a questionable return.

The return is determined to be invalid.

The individual is a victim of identity theft. See IRM 25.23.4.8.4.3, Dependent Related Identity Theft (IDT) – Determinations, paragraph (1) table scenario (9). If a claim has not been received for this individual, this is an IRS identified dependent related IDT case.

(6) The Form 14039, police report, or correspondence indicates the loss of personally identifiable information (PII) or an individual’s TIN was used to obtain a credit card, identification, loan, etc.

Research shows there is no impact to tax administration.

This is a non-tax-related IDT issue. See IRM 25.23.4.8.4.3, Dependent Related Identity Theft (IDT) – Determinations, paragraph (1) table scenario (1).

(7) The Form 14039, police report, or correspondence indicates the individual was claimed by someone else.

The individual is self-reporting and under age 16.

The claim will not be considered. Send a closing Letter 916C to the address provided on the claim. Include paragraphs: F, T, and 1. In paragraph T, explain that a signed statement from their parent or legal guardian must be received before we can consider their identity theft claim.

You can consider an IDT claim if the individual is now age of 18 or older at the time of working the case. See IRM 25.23.4.8.4, Dependent Related Identity Theft (IDT) - General, for additional information on reporting dependent related IDT.

Cases not meeting the scenarios above or requiring significant research must be thoroughly reviewed to make an identity theft determination. Follow procedures in IRM 25.23.4.8.4.2, Dependent Related Identity Theft (IDT) – Non-Streamline Research, to conduct necessary research related to suspected dependent IDT.

When a dependent related streamline determination cannot be made, the account must be thoroughly researched to verify the relationship of the reporting person and correctly identify the account issue. Do not assume the individual is a victim of identity theft.

When the identity theft claim is submitted on behalf of a dependent, review all documentation provided, and consider all information available through research of internal systems before requesting additional information. The table below provides examples of information you may locate while conducting this research and what action to take.

Entity information in the "Continuation of Primary Name" field is not confirmation of legal guardianship for the reporting person.

If

Then

(1) The claim includes supporting documentation listing someone other than the reporting person as the legal guardian.

The documentation is unacceptable.

Contact the reporting person to request documentation showing they are the legal guardian. Proceed to paragraph (3) below.

(2) The claim includes court documentation that is:Incomplete:

Does not identify the individual appointed custody

Is not signed/dated by a judge or representative of the court (i.e., clerk, etc.)

Appears to have hand written edits after the order was signed

Appears to have been edited electronically (i.e., different or misaligned font, etc.)

Indicates the order is only valid through a specific date, and that date has passed

The documentation is unacceptable.

Contact the reporting person to request documentation that is complete, unaltered, and current. Proceed to paragraph (3) below.

(3) The claim includes foster care placement documentation that is:Incomplete:

Does not identify the individual appointed custody

Appears to have hand written edits after the document was signed

Appears to have been edited electronically (i.e., different or misaligned font, etc.)

Dated 2 years or more from the current date

If the foster care paperwork is a court order for permanent appointment of the reporting person as the legal guardian for the dependent, the date of the order is not limited to the 2 years.

Appears to be fictitious (i.e., appears to be self-created)

The documentation is unacceptable.

Contact the reporting person to request documentation that is complete, unaltered, and current. Proceed to paragraph (3) below.

(4) AMS history items indicate the reporting person is the legal guardian:

An AMS history item dated September 30, 2024, indicates the reporting person visited a Taxpayer Assistance Center (TAC) office to request an Identity Protection Personal Identification Number (IP PIN) for their dependent. They provide two forms of identification for themselves, the birth certificate for the dependent, and court documentation showing they are the legal guardian for that dependent.

Do not request additional documentation.

Accept the AMS history item as supporting proof of the reporting person being the legal guardian.

For parent/legal guardianship considerations, refer to the table below.

If

Then

(1) If parent/legal guardianship cannot be confirmed using the information provided and internal research, third party authority is in question,

Request proof of the relationship/legal guardianship (i.e., court order, adoption certificate, or other legal documentation) from the reporting person. See IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written).

Do not establish or update the dependent’s entity with the reporting person’s address or telephone number until acceptable documentation is provided.

(2) If the claim was submitted on behalf of an individual who is currently age 18 or older, verification of the relationship alone is not sufficient,

Request proof of legal guardianship (i.e., court order). See IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written).

(3) If a response to the request is received,

Refer to paragraph (4) below to determine if it is acceptable.

(4) The suspense timeframe has passed and a response to the request was not received,

Refer to paragraph (5) below to determine if it is acceptable.

When proof of relationship and/or legal guardianship has been requested, and the taxpayer submits information in response, refer to the table below:

When the documentation provided appears to be acceptable based on the table below, refer to paragraph (2) above to verify it identifies the reporting person, is complete, has not been altered, and is not questionable.

Acceptable Documentation

Unacceptable Documentation

Court Order

Written statement from the parent or another individual (even if notarized)

Birth Certificate

Adoption Documentation

Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent

Foster Care Placement Documentation

Request the reporting person provide additional documentation from the agency indicating the child is still in their care when the foster care placement documentation is not for permanent guardianship and is dated 2 years or older from the current date. See IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written).

Refer questionable foster care placement documentation to ITVA HQ as described in the note below.

School records

Proof of medical insurance

Durable Power of Attorney

For any documentation provided that is not listed in the table above, prepare and email Form 4442 using the subject line: Dependent - Proof of Guardianship (or similar) to ITVA HQ. Document all research completed in a CII case note and/or on Form 4442. Attach Form 4442 to your CII case. Suspend the case awaiting a response from ITVA HQ. Upon receipt, the account will be researched. A response on how to address the account will be received within 7 business days.

After determining if the documentation is acceptable or unacceptable, refer to the table below:

If

Then

(1) The documentation received is acceptable,

Make a determination, and resolve the case following applicable procedures.

(2) The documentation submitted as proof of relationship/legal guardianship (under 18) received is unacceptable,ORThe documentation submitted as proof of legal guardianship (adult dependent over 18) is unacceptable,ORThe suspense timeframe was expired and a response was not received,

Issue a closing letter to the reporting person following procedures for corresponding with a person who is not an authorized third party.

Do not include a paragraph requesting a Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization.

If there is enough information, make a determination and resolve the case following applicable procedures.

When a valid address can be found for the dependent, the reporting person and dependent will each receive a separate letter. For additional letter requirements, see IRM 25.23.4.18.1, General IDTVA Letter Procedures.

Dependent related IDT may lead to the discovery of additional impacted individuals. Exercise caution when determining if any individual included on the tax return (primary, secondary, or dependent) is a victim of identity theft. It is possible for identity theft and misuse of the TIN to both exist from the same filing. Refer to the table below to assist with making this determination.

Scenario

Description

(1) Identity Theft

All individuals included on the tax return in question will be considered impacted by identity theft when the tax return can be determined to be invalid (IDT).

If an IDT claim has not been received, it will be an IRS identified case.

The invalid tax return will be addressed as part of resolving the identity theft issue for the primary and/or secondary taxpayer(s) in this instance.

(2) Misuse of a TIN

When the tax return in question cannot be determined to be invalid (i.e., verifiable income, consistent with the filing history), an individual cannot be IRS identified as a victim of dependent related IDT.

Only individuals an IDT claim has been received for will be considered potential victims.

The account of the tax return listing the dependent(s) will not be adjusted to remove the victim(s) and/or dependent-related credits.

IDT skilled employees are not making a determination regarding which parent/legal guardian is entitled to claim and/or represent the dependent. IDT skilled employees are not confirming if the person claiming the dependent is eligible for dependency or dependent-related credits included on a tax return not determined to be IDT.

Conduct a review of prior years (a minimum of three prior years, if available) and all subsequent years. The prior year review will continue in one-year increments until no indications of dependent TIN use are found. Refer to the table below for research paths appropriate for the facts and circumstances of the case. After completing the required research, continue to IRM 25.23.4.8.4.3, Dependent Related Identity Theft (IDT) - Determinations, to make a determination.

Use of the TIN-Related Worksheet may be beneficial for identifying any consistencies and/or inconsistencies in the filing history.

There are various IAT tools available to aid in completing the research described in the table below.

For purposes of research only, the asserted victim of identity theft will be referred to as the "victim" in the table below, and the asserted thief will be referred to as the "individual in question" . The validity of the claim will be determined after completion of all necessary research.

If

Then

(1) The reporting person provides the TIN of the individual they believe committed identity theft,

Research the TIN of the individual in question. Use any combination of the following systems and/or IDRS Command Codes (CC) to review the filing history:

MeFile

ITIN RTS

CII

AMS

TRDBV

RTVUE

DDBKD/DDBKDN

Your research is not limited to use of the systems and Command Codes listed above and may extend to other resources available, as applicable.

While reviewing the filing history, consider the following:

Was the victim claimed as a dependent for the tax year in question?

How many years has the victim been claimed as a dependent of the individual in question?

What is the relationship between the victim and individual in question?

Has the victim filed tax returns as a primary or secondary taxpayer for any of the tax years included in the research period?

If the victim has filed returns, did they claim the self-exemption?

If researching AMS and CII for an individual claiming the dependent whose relationship cannot be confirmed, is proof of legal guardianship present?

Refer to the acceptable documentation described above. Additionally, you may determine legal guardianship if an AMS history item indicates the reporting person is the legal guardian (i.e., CSR or TAC employee notes receiving acceptable documentation).

(2) The reporting person provides only the name and address of the individual they believe committed identity theft,ORThe reporting person provides the last four (4) digits of the TIN belonging to the individual they believe committed identity theft,

Use IDRS CC NAMES/NAMEI to locate the TIN of the individual in question when the name and address are provided.

Use IDRS CC TPIIP to locate the TIN of the individual in question when the last name and last 4 digits of the TIN are provided.

If a TIN is located, follow procedures in table scenario (1) above to conduct the necessary research.

If a TIN is not located, follow procedures in table scenario (3) below.

(3) The reporting person does not provide the name, address, or TIN of the individual they believe committed identity theft and the claim is for the current or two immediately preceding years,

Use IDRS CC DDBKD to determine if the victim has been listed as a dependent of anyone for the current or two immediately preceding years.

Use of IDRS CC TRDBV may provide the validation of the dependent’s TIN on the "MEFILE MEF REJECTED" and/or MEFILE MF POSTED for the year(s) in question of the reporting person. Select the applicable access code for the "SSN-VALDN" field. The "DUP Check Priority Access Code" field will show "2" when there is a duplicate use of the TIN. It will also provide the different TIN on the "ORIG DUP CHECK" field. This different TIN will belong to the other taxpayer who claimed the dependent(s) on their return.

If a TIN is located, follow procedures in table scenario (1) above to conduct the necessary research.

If a TIN is not located, the dependent is not a victim of identity theft. Document your research and No IDT determination in a CII case note. See IRM 25.23.4.8.4.3, Dependent Related Identity Theft (IDT) – Determinations, paragraph (1) table scenario (2).

(4) After consideration of the information available, you are unable to identify a taxpayer claiming the victim as a dependent,

Refer to scenario (3) above for TRDBV research.

Claim is for a year that is not available on CC DDBKD and/or CC TRDBV did not provide a different TIN: See IRM 25.23.4.8.4.3, Dependent Related Identity Theft (IDT) – Determinations, paragraph (1) table scenario (1).

Claim is for a year that is available on CC DDBKD and/or research of CC TRDBV did not provide a different TIN: See IRM 25.23.4.8.4.3, Dependent Related Identity Theft (IDT) – Determinations, paragraph (1) table scenario (2).

After you have identified a streamline dependent IDT case or completed the necessary research described in IRM 25.23.4.8.4.2, Dependent Related Identity Theft (IDT) Non-Streamline Research, refer to the table below to make an identity theft determination:

If the reporting person provides their own TIN instead of the TIN of the dependent in question, update the TIN on the CII case. Add a CII case note documenting the reason for the change (i.e., dependent’s TIN included in statement on Form 14039, dependent’s TIN located through research of the reporting person’s filing history, etc.).

If

Then

(1) The issue is taxpayer identified and your research indicates tax administration is not affected,

The CII case will remain controlled on IDRS CC TXMOD.

Update the CII Category Code to IDT4.

The account will be marked with TC 971 AC 504 using an appropriate MISC field literal. Only one indicator will be placed on the account. See IRM 25.23.2.8.1.1, TC 971 AC 504 with Miscellaneous Field Codes ACCT, ACCT-M, BOTH, BOTH-M, EMPL, EMPL-M, ICMCCA, NKI or NKI-M.

Refer to IRM 25.23.3.2.3, Self-Identified – Non-Tax-Related Identity Theft – IDT4.

If directed to this scenario from IRM 25.23.4.8.4.2, Dependent Related Identity Theft (IDT) – Non-Streamline Research, paragraph (7) table scenario 4, input the appropriate TC 971 AC 504 indicating a manual letter will be issued. Send Letter 4402C. Use paragraph "L" , and include an open paragraph to provide the following information. You may use the special paragraph below or similar verbiage:"We have reviewed your account and don’t see that your federal income taxes were affected." Include appropriate IP PIN information, depending on the facts and circumstances of your case.

(2) Your research indicates the dependent was not claimed by anyone.

Follow procedures in IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations.

(3) Your research indicates use of the dependent’s TIN is the result of a typo or finger error,

This generally results in a math error related to a name control mismatch on the return the TIN was inadvertently included on.

The dependent is not a victim of identity theft. Document your research and No IDT determination in a CII case note.

Follow procedures in IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations.

Issue a closing Letter 4674C to the dependent to inform them of the determination. Include paragraph "I" when the reporting person is not an authorized third party.

If the reporting person is not an authorized third party, refer to IRM 25.23.4.18.1, General IDTVA Letter Procedures, for additional letter requirements.

At the time the letter is being issued, for taxpayers under the age of 18, refer to Exhibit 25.23.4-25, Closing Letter Paragraph Selections, for use of a special paragraph when providing the taxpayer with supplemental information regarding IP PINs, as appropriate.

In some instances, the dependent will be allowed during original processing, and the taxpayer who incorrectly used the TIN will not be made aware of the misuse through normal math error procedures. When a math error was not set and you can identify the correct address for the individual using the TIN incorrectly, send a Letter 3064C. Include paragraphs L, M, and X. Use the following special paragraphs to inform the individual of the misuse of the TIN:Paragraph L:"We reviewed your tax account for the tax periods listed above and found that your tax return includes incorrect information that did not affect the processing of your return." Paragraph M (TIN is an SSN):"Our records show you are using an incorrect Social Security Number (SSN) for your dependent(s). Please contact the Social Security Administration (SSA) to verify the correct SSN for your dependent(s)." Paragraph M (TIN is an ITIN):"Our records show you are using an incorrect Individual Taxpayer Identification Number (ITIN) for your dependent(s). Please refer to the notice you received informing you of the ITIN assigned to your dependent(s). If you do not have this notice, you may contact the IRS at 800-829-1040 to request a copy."

(4) Your research indicates the case is a Mixed Entity due to the filing of a return with the common number (CN) listed as the primary or secondary taxpayer,

When the Mixed Entity is identified as a TIN being used for a dependent, refer to the table above scenario (3) above. These situations will be treated as a typo or finger error.

The dependent is not a victim of identity theft. Document your research and NOIDT determination in a CII case note.

Follow procedures in IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations.

(5) Your research indicates the case is a Scrambled SSN issue,

Add a CII case note documenting your research and determination.

Order the NUMIDENT and complete all necessary actions per IRM 25.23.4.6.1, Required Research.

IDTVA-A: Reassign the case using the IDTVA-A CII Reassignment Guide.

IDTVA-Specialty: Reassign the case using the IDTVA Specialty CII Reassignment Guide for Non-IDT Cases. Refer to your functional IRM for additional guidance.

(6) Your research indicates the case may be a Married Filing Joint Scheme or an Invalid Joint Election (IJE) issue,

Add a CII case note documenting your research and determination.

Refer to IRM 25.23.4.8.1.3, Married Filing Joint Scheme Involvement, to determine if they are a victim of identity theft or if the case is an Invalid Joint Election.

(7) Your research indicates the individual in question is the dependent’s parent/legal guardian,

The dependent is not a victim of identity theft. Document your research and No IDT determination in a CII case note.

Follow procedures in IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations.

If submitted on a Form 3949-A, the case will be routed to Exam. Refer to IRM 25.23.4.6.2, IDTVA – Additional Research and Required Actions. Review the case for reroute criteria prior to resolving as dependent related IDT. If it is determined it will be routed to Exam, DO NOT open additional cases on CII.

DO NOT advise the taxpayer they cannot opt out of the IP PIN program. See Exhibit 25.23.4-25, Closing Letter Paragraph Selections, for more information on special paragraphs you may use.

In place of (TIN), use Social Security Number or Individual Taxpayer Identification Number, as appropriate.

Include information about the taxpayer’s option to request an IP PIN to protect their identity in the future.

(8) Your research indicates the IRS allowed a self-exemption in error while processing a return for the dependent,

The dependent is not a victim of identity theft. Document your research and No IDT determination in a CII case note.

When telephone information is available, attempt to contact the reporting person no less than two times. Document each attempt in a CII case note.

There must be a reasonable amount of time between the two attempts. For example, another call on a subsequent day constitutes a valid second attempt. If you are able to leave a phone message, allow the reporting person five (5) business days to return your call. The second attempt should not be made immediately after a first unsuccessful attempt.

If the reporting person is an authorized third party, verify their identity by completing outgoing disclosure. See paragraphs (25) through (27) in IRM 21.1.1.4, Communication Skills, for specific guidance. Take one of the following actions:• If disclosure is passed, explain that the IRS allowed the dependent’s self-exemption in error. Apologize for the mistake, and advise them the individual who is entitled to claim the dependent will need to file a paper return, including all income, exemptions, dependents, tax, and any credits they are entitled to. Document your conversation in a CII case note.• If disclosure is not passed, follow procedures in step (4) below.

If the reporting person is not an authorized third party and you are able to reach them by phone, advise them you are working the identity theft case. Explain that you are unable to provide information regarding the dependent in question. Inform them the dependent may authorize you to provide the information verbally after verification of their identity.

If the dependent in question is available, verify their identity by completing outgoing disclosure. See paragraphs (25) through (27) in IRM 21.1.1.4, Communication Skills, for specific guidance. Refer to IRM 21.2.1.12, Third-Party Authorization, and IRM 21.3.10.3.5, Oral Disclosure Consent (ODC), for additional information.• If Oral Disclosure Consent is received, when speaking to the reporting person, explain that the IRS allowed the dependent’s self-exemption in error. Apologize for the mistake, and advise them the individual who is entitled to claim the dependent will need to file a paper return, including all income, exemptions, dependents, tax, and any credits they are entitled to. Document your conversation in a CII case note.• If the dependent does not give consent, do not provide information to the reporting person. While speaking with the dependent in question, explain that the IRS allowed their self-exemption in error. Apologize for the mistake, and advise them the individual who is entitled to claim them as a dependent will need to file a paper return, including all income, exemptions, dependents, tax, and any credits they are entitled to. Document your conversation in a CII case note.

If the dependent is not available, confirm an appropriate time to call back. Attempt contact at the agreed upon date and time. If you are unable to reach the reporting taxpayer or dependent at that time, another contact is not required.

After contacting the reporting person (or making the necessary attempts), follow procedures in IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations.• Issue a closing Letter 4674C to the dependent. Select paragraph "L" if the reporting person is not an authorized third party. Include an open paragraph with the following special paragraph: "We made a mistake when processing your return. We included the self-exemption which you did not request. If someone is entitled to claim you as a dependent, they may file a paper return or obtain an Identity Protection Personal Identification Number (IP PIN) to do so. We apologize for our error." • If the reporting person is not an authorized third party, refer to IRM 25.23.4.18.1, General IDTVA Letter Procedures, for additional letter requirements.• At the time the letter is being issued, for taxpayers under the age of 18, refer to Exhibit 25.23.4-25, Closing Letter Paragraph Selections, for use of a special paragraph when providing the taxpayer with supplemental information regarding IP PINs, as appropriate.

(9) Your research indicates any of the following:

The victim is listed as the primary or secondary taxpayer on an invalid return.

The victim is a dependent of their parent/legal guardian and is listed as a dependent on the return of a taxpayer who is not their parent/legal guardian (even when there is a history of being listed as a dependent of that person, the parent/legal guardian has not filed with them for years, or the other person claiming the dependent is also a relative).

The victim is a dependent of their parent/legal guardian and is listed on an invalid return. When the invalid return was filed using their parent/legal guardian’s personal information, the parent/legal guardian is also a victim of IDT. (This scenario may be a TP identified or IRS identified IDT case.)

The victim is not a dependent of anyone but is listed as a dependent on a return filed by an individual who is not their parent/legal guardian (including taxpayers listed as dependents by their adult children).

Add a CII case note documenting your research and determination.

Follow procedures in IRM 25.23.4.10.7, Dependent Related Identity Theft (IDT).

For any questionable dependent case received that does not meet one of the scenarios described above, prepare and email Form 4442 using the subject line: Questionable Dependent (or similar) to ITVA HQ. Document all research completed in a CII case note and/or on Form 4442. Attach Form 4442 to your CII case. Suspend the case awaiting a response from ITVA HQ. Upon receipt, the account will be researched. A response on how to address the account will be received within 7 business days.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), H.R. 133, Consolidated Appropriations Act, 2021, and the American Rescue Plan Act of 2021 (ARPA) provided eligible individuals with recovery rebate credits (RRC) for tax years 2020 and 2021 that the IRS paid to each eligible individual as an advance payment referred to as Economic Impact Payments (EIP). The IRS issued three EIPs: EIP 1 and EIP 2 (advance payments of the RRC for TY 2020) and EIP 3 (advance payment of the RRC for TY 2021). The IRS was authorized to use certain information included on the taxpayer’s recently filed tax return to determine the taxpayer’s eligibility for each EIP as follows:

EIP 1 - eligibility determined from TY 2019 return (2018 when there is no 2019 return), if filed

EIP 2 - eligibility determined from TY 2019 return, if filed

EIP 3 - eligibility determined from TY 2020 return (2019 when there is no 2020 return), if filed

The IRS created a Non-Filers Tool and made it available for use on irs.gov to allow individuals who had not previously filed returns (because they did not have a filing requirement) to file a tax return to show their eligibility for the RRC and to receive EIP payments.

Returns filed using the Non-Filers Tool can be identified with $1 of taxable interest income, $1 total income, and $1 AGI.

Although the Non-Filers Tool required verification of the individual’s identity, it was not always used as intended. Examples of misuse include but are not limited to:

Tax returns filed by identity thieves using a taxpayer’s information without their knowledge or consent

Tax returns filed by someone the individual trusted to assist them that intentionally included incorrect direct deposit information

Research must be completed to determine if there is a high probability the return was not filed by the common number (CN) owner. Research may include, but is not limited to:

Comparing filing history for address, filing status, dependents, and direct deposit information

Reviewing IDRS CC IRPTR to confirm the taxpayer does not have a filing requirement

AMS history items

Refer to the table below to determine if the taxpayer is a victim of identity theft related to use of the Non-Filers Tool:

If

And

Then

(1) Form 14039, police report, or correspondence is received stating:

They did not file the tax return,

Someone helped them but added direct deposit information that does not belong to them, or

They expected to receive the EIP in the mail and did not,

If supported by your research, accept the taxpayer’s claim,

Case resolution will follow streamline processes.

Refer to IRM 25.23.4.20, Economic Impact Payment (EIP) and Recovery Rebate Credit (RRC) - General, and its subsections, and IRM 25.23.4.21, American Rescue Plan Act (ARPA) - General, and its subsections, to identify and address account issues resulting from use of the Non-Filers Tool.

(2) Form 14039, police report, or correspondence is received stating:

They did not file the tax return,

Someone helped them but added direct deposit information that does not belong to them, or

They expected to receive the EIP in the mail and did not,

Your research does not support accepting the taxpayer’s claim.

Follow procedures in IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations.

(3) Form 14039, police report, or correspondence is received stating:

They did not file the tax return,

Someone helped them but added direct deposit information that does not belong to them, or

They expected to receive the EIP in the mail and did not,

The claim does not provide enough information to make a determination.

Follow procedures in IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written), to request clarification of the identity theft issue.

(4) The case is IRS identified,

If supported by your research, consider the CN owner a victim of identity theft,

Case resolution will follow streamline processes.

Refer to IRM 25.23.4.20, Economic Impact Payment (EIP) and Recovery Rebate Credit (RRC) - General, and its subsections, and IRM 25.23.4.21, American Rescue Plan Act (ARPA) - General, and its subsections, to identify and address account issues resulting from use of the Non-Filers Tool.

(5) The case is IRS identified,

Your research does not support a determination of identity theft,

Follow procedures in IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations.

Incarcerated taxpayers (prisoners) may experience identity theft in any of the following ways:

This list is not all inclusive.

A trusted individual intentionally directed a refund to themselves without the taxpayer’s knowledge or consent.

An invalid return was filed listing them as the primary or secondary taxpayer.

They were claimed as a dependent.

Their personal information was used to obtain employment, claim gambling winnings, receive unemployment benefits, or report any other type of income the TIN owner is unaware of (i.e., sale of assets, cancellation of debt, etc.).

Another individual impersonated them, using their identity to open accounts or otherwise represent themselves as the TIN owner in a way that is not affecting tax administration (i.e., open a line of credit, enroll in school, etc.).

Cases involving incarcerated taxpayers may present unique challenges. Refer to the table below for actions and applicable comments:

Actions

Comments

(1) Confirming Incarceration

When a history of incarceration cannot be confirmed after conducting research and reviewing case images, it may be necessary to request documentation from the taxpayer.

(2) Identifying dates of incarceration

When incarceration can be confirmed but the dates of incarceration are not available through research and cannot be located in case images, it may be necessary to request documentation from the taxpayer.

(3) Verifying current address

Additional research of public records may be required to determine the taxpayer’s current address.

Use caution when corresponding with the taxpayer to ensure you do not inadvertently provide tax account information to an unauthorized individual. Be aware of additional considerations for correspondence with incarcerated individuals:

Generally, it can be assumed facilities housing prisoners open and review all incoming mail.

Prisoners are sometimes transferred between facilities.

It is necessary to verify the prisoner’s current address. When the current address cannot be confirmed, an IRS Service Center address will be used, and correspondence normally sent regarding the IDT claim will not be issued.

Issuing a letter to a facility the incarcerated taxpayer is no longer assigned to may result in unauthorized disclosure of personal and tax account information.

If incarceration dates are available through research or provided in documentation submitted with the claim, proceed to IRM 25.23.4.8.6.1, Identity Theft (IDT) with Incarcerated Taxpayer (Prisoner) Involvement – Streamline Determinations.

If incarceration dates are not available, proceed to IRM 25.23.4.8.6.2, Identity Theft (IDT) with Incarcerated Taxpayer (Prisoner) Involvement – Non-Streamline Determinations.

The following streamline determination procedures will apply to only the current and three (3) immediately preceding tax years.

When case documentation includes evidence of incarceration (i.e., release documents from the facility, etc.), a streamline determination may be made only when acceptable dates are provided. To be accepted, the documentation must include:•Released Individuals: Month and year for the incarceration and release dates.•Current Incarceration: Month and year for the incarceration and planned release dates. Planned release dates will be future dates.•Continuous Incarceration: Month and year for the incarceration date. A release date is not required if the taxpayer is serving a life sentence.

Prior to making a streamline determination, conduct basic research. See IRM 25.23.4.6.1.1, Researching Accounts for Incarcerated Individuals (Prisoners), for additional information.

When incarceration cannot be easily confirmed using information provided and internal research, a streamline determination will not be made.

Conduct a review of prior years (a minimum of three prior years, if available) and all subsequent years. The prior year review will continue in one-year increments until no indications of identity theft are found.

Refer to the table below for case scenarios meeting streamline determination criteria:

It is possible for a case to meet more than one scenario in the table below. When you encounter this, refer to all applicable scenarios below to determine the appropriate case actions.

Each return must be considered separately and may impact credits related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and American Rescue Plan Act (ARPA). Refer to IRM 25.23.4.20, Economic Impact Payment (EIP) and Recovery Rebate Credit, and IRM 25.23.4.21, American Rescue Plan Act (ARPA) – General.

If

And

Then

(1) The Form 14039, police report, or correspondence indicates the individual is incarcerated and reporting someone filed a tax return using their personal information without their permission,

They are listed as the primary taxpayer on the tax return in question with no secondary taxpayer,ANDIncome included on the tax return is not verifiable,

Accept the taxpayer’s claim.

Follow the applicable streamline procedures in IRM 25.23.4.10, Resolving Identity Theft (IDT).

(2) The Form 14039, police report, or correspondence indicates the individual is incarcerated and reporting income related IDT.

The taxpayer was incarcerated for the entire year,ORIt is unlikely the taxpayer could have earned the amount reported within the time they were not incarcerated,

The taxpayer was not incarcerated for two (2) months of the year, and the income reported is $60,000.

Accept the taxpayer’s claim.

Follow procedures in IRM 25.23.13.3, Closing Income Related Identity Theft Accounts.

(3) The Form 14039, police report, or correspondence indicates the individual is incarcerated and reporting non-receipt of their Economic Impact Payment (EIP),

It has been determined the incarcerated taxpayer did not receive EIP per IRM 25.23.4.20.2, Economic Impact Payment (EIP) – Additional Research for Identity Theft (IDT) Cases,

EIP issued as direct deposit:

Accept the taxpayer’s claim.

Follow the applicable procedures in IRM 25.23.4.20.3, Economic Impact Payment (EIP) – Adjustments.

The taxpayer’s claim cannot be verified.

The case will be worked as non-tax-related IDT. Refund trace procedures will be followed to verify the taxpayer did not receive the refund. Refer to IRM 25.23.3.2.3, Self-Identified Non-Tax-Related Identity Theft – IDT4.

(4) The Form 14039, police report, or correspondence indicates the individual is incarcerated and reporting non-tax-related IDT (e.g., healthcare coverage, credit card, loan, etc.),

There is no indication tax administration is impacted (i.e., invalid return, etc.),

The individual is not a victim of identity theft.

Follow the applicable procedures in IRM 25.23.3.2.3, Self-Identified Non-Tax-Related Identity Theft – IDT4.

(5) The Form 14039, police report, or correspondence indicates the individual is incarcerated and reporting:Non-receipt of EIP,ORInvalid return(s) filed,ORIncome related IDT

Research does not support their claim of IDT,

The individual is not a victim of identity theft.

Refer to IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations.

Cases not meeting the scenarios in the table above or requiring significant research must be thoroughly reviewed to make an identity theft determination. Follow procedures in IRM 25.23.4.8.6.2, Identity Theft (IDT) with Incarcerated Taxpayer (Prisoner) Involvement – Non-Streamline Determinations.

For additional account conditions that may need to be addressed, refer to IRM 25.23.4.6.2, IDTVA – Additional Research and Required Actions, and Exhibit 25.23.4-21, Input, annotations and Action Requirements for Streamline/Non-Streamline Case Processing.

When a streamline determination cannot be made, further research and additional considerations will be used to make a non-streamline determination.

Verify the taxpayer’s current address. For claims received more than 30 days before the current date, research public inmate information to confirm the taxpayer’s current address.

If

Then

(1) If the claim includes the address of the facility and research indicates the taxpayer has been released,

Attempt to contact the taxpayer by telephone if a telephone number is available. See IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written), paragraphs (6)-(9).

If the phone number isn’t available or attempts are unsuccessful, use an IRS Service Center address.

(2) If there is any indication the taxpayer is moving facilities and the address of the new facility is not available,

Suspend the case for 30 calendar days.

If, after the suspense timeframe has passed, the address of the new facility is not available, use an IRS Service Center address.

(3) If research shows the taxpayer is now deceased,

If the taxpayer was included as the primary or secondary taxpayer on a valid Married Filing Joint (MFJ) return for the current tax year, use the address on the MFJ return.

If the taxpayer was not included on a MFJ return for the current tax year, use an IRS Service Center address.

(4) If there is no indication the taxpayer is moving facilities and the current address cannot be verified,

Use an IRS Service Center address.

Verify the dates of incarceration:

If

Then

(1) IDRS CC FTBOLP does not reflect any dates, and it appears the taxpayer is not incarcerated,

The taxpayer may be in a local or state facility.

Review the correspondence for acceptable dates.

If documentation does not include acceptable dates, follow table scenario (3).

(2) IDRS CC FTBOLP does not provide complete information, and research shows the taxpayer is now deceased,

Proceed to paragraph (5).

(3) IDRS CC FTBOLP reflects N/A in the incarceration and release date fields,

Prisoner data is incomplete and cannot be perfected.

Use the latest incarceration and release dates available on CC FTBOLP.

If none of the information available on CC FTBOLP is complete, follow table scenario (4).

(4) IDRS CC FTBOLP does not provide enough information to verify the dates, and the taxpayer included supporting documentation,

When acceptable dates are not provided, request documentation from the taxpayer. See IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written).

When incarceration dates are conflicting between internal research, external sources, and documentation provided by the taxpayer, prepare and email Form 4442 using the subject line: Prisoner - Conflicting Information (or similar) to ITVA HQ. Document all research completed in a CII case note and/or on Form 4442. Attach Form 4442 to your CII case. Suspend the case awaiting a response from ITVA HQ. Upon receipt, the account will be researched. A response on how to address the account will be received within 7 business days.

After verifying the taxpayer’s current address and dates of incarceration, review the taxpayer’s statement. Details they provide may be pertinent to making an IDT determination.

Refer to the table below to make an identity theft determination:

If

And

Then

(1) The taxpayer states someone claimed them as a dependent,

Incarceration was confirmed or not confirmed,

See IRM 25.23.4.8.4, Dependent Related Identity Theft (IDT) – General, and its subsections to make an IDT determination.

(2) The taxpayer is reporting income related IDT,

The taxpayer was incarcerated for the entire year,ORIt is unlikely the taxpayer could have earned the amount reported within the time they were not incarcerated.

The taxpayer was not incarcerated for two (2) months of the year, and the income reported is $60,000.

Accept the taxpayer’s claim.

Follow procedures in IRM 25.23.13.3, Closing Income Related Identity Theft Accounts.

(3) The taxpayer is reporting income related IDT,

Incarceration dates for the tax year in question cannot be confirmed,ORIt is reasonable to believe the taxpayer could have earned the amount reported within the time they were not incarcerated.

The taxpayer was not incarcerated for eight (8) months of the year, and the income reported is $12,000.

The taxpayer’s potential incarceration will not be a factor in making an identity theft determination.

Follow procedures in IRM 25.23.13, Income Related Identity Theft, and its applicable subsections to make an IDT determination and resolve the case.

(4) The taxpayer states someone filed a tax return using their personal information without their permission,

Incarceration was confirmed or not confirmed,ANDThe return was filed Married Filing Joint (MFJ),

Follow procedures in IRM 25.23.4.8.1.3, Married Filing Joint Scheme Involvement, and its applicable subsections.

(5) The taxpayer states someone filed a tax return using their personal information without their permission,

Incarceration can be confirmed,ANDThe income is not verifiable (including self-employment income),ANDThe return was not filed Married Filing Joint (MFJ),

Accept the taxpayer’s claim.

Follow the applicable procedures in IRM 25.23.4.10, Resolving Identity Theft (IDT).

(6) The taxpayer states someone filed a tax return using their personal information without their permission,

Incarceration can be confirmed,ANDThe income is verifiable (including self-employment income),ANDThe return was not filed Married Filing Joint (MFJ),

Accept the taxpayer’s claim.

Follow the applicable procedures in IRM 25.23.4.10, Resolving Identity Theft (IDT).

(7) The taxpayer states someone filed a tax return using their personal information without their permission,

Incarceration dates for the tax year in question cannot be confirmed,

The taxpayer’s potential incarceration will not be a factor in making an identity theft determination.

Refer to IRM 25.23.4.8, Identity Theft (IDT) Common Number (CN) Ownership and Case Processing Determinations, and its subsections, to make an identity theft determination.

(8) The taxpayer states they did not receive their Economic Impact Payment (EIP) and it has been determined the taxpayer did not receive EIP per IRM 25.23.4.20.2, Economic Impact Payment (EIP) – Additional Research for Identity Theft (IDT) Cases,

Incarceration can be confirmed,

Accept the taxpayer’s claim.

Follow applicable procedures in IRM 25.23.4.20.3, Economic Impact Payment (EIP) – Adjustments.

The case will be worked as non-tax-related IDT. Refer to IRM 25.23.3.2.3, Self-Identified Non-Tax-Related Identity Theft – IDT4.

(9) The taxpayer states they did not receive their Economic Impact Payment (EIP) and it has been determined the taxpayer did not receive EIP per IRM 25.23.4.20.2, Economic Impact Payment (EIP) – Additional Research for Identity Theft (IDT) Cases

Incarceration dates for the tax year in question cannot be confirmed,

The taxpayer’s potential incarceration will not be a factor in making an identity theft determination.

Refer to IRM 25.23.4.8, Identity Theft (IDT) Common Number (CN) Ownership and Case Processing Determinations, and its subsections, to make an identity theft determination.

(10) The taxpayer states they did not file the tax return in question,Someone helped them but added direct deposit information that does not belong to them, orThey expected to receive the EIP in the mail and did not,ANDThe tax return was filed using the Non-Filers Tool,

Incarceration can be confirmed,

Accept the taxpayer’s claim.

Case resolution will follow streamline processes.

Refer to IRM 25.23.4.20, Economic Impact Payment (EIP) and Recovery Rebate Credit (RRC) – General, and its subsections, to identify and address account issues resulting from use of the Non-Filers Tool.

(11) The taxpayer states they did not file the tax return in question,Someone helped them but added direct deposit information that does not belong to them, orThey expected to receive the EIP in the mail and did not,ANDThe tax return was filed using the Non-Filers Tool,

Incarceration dates for the tax year in question cannot be confirmed,

The taxpayer’s potential incarceration will not be a factor in making an identity theft determination.

Refer to IRM 25.23.4.8.5, Identity Theft with Non-Filer Returns, to make an identity theft determination.

(12) The taxpayer is reporting non-tax-related identity theft (e.g., healthcare coverage, credit card, loan, etc.),

Incarceration was confirmed or not confirmed,ANDThere is no indication tax administration is impacted (i.e., invalid return, etc.),

Accept the taxpayer’s claim.

Follow the applicable procedures in IRM 25.23.3.2.3, Self-Identified – Non-Tax-Related Identity Theft – IDT4.

(13) The taxpayer’s statement reports:Non-receipt of EIP,ORInvalid return(s) filed.ANDResearch does not support their claim of identity theft,

Incarceration was confirmed or not confirmed,

The taxpayer is not a victim of identity theft.

Refer to IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations.

(14) The taxpayer indicates they were incarcerated but does not provide a statement explaining the identity theft issue,

Incarceration was confirmed or not confirmed,

The taxpayer’s potential incarceration will not be a factor in making an identity theft determination.

Refer to IRM 25.23.4.8, Identity Theft (IDT) Common Number (CN) Ownership and Case Processing Determinations, and its subsections, to make an identity theft determination.

The following subsections provide guidance to process identity theft cases when there are statute related issues to be considered.

This section provides instruction for protecting the account when the Assessment Statute Expiration Date (ASED) is imminent (within 180 days of expiration) for Common Number (CN) and Internal Revenue Service Number (IRSN) cases.

Refer to the table below for imminent assessments on the CN module:

Determination

ASED Expiration

Actions

(1) Invalid/Valid

91 - 180 days remain

The adjustment may be input following normal IDRS adjustment procedures.

(2) Invalid/Valid

DO NOT back out the invalid return prior to assessing the valid tax.

90 days or less remain

Refer to IRM 25.23.2.5, Statute Protection, and its subsections to protect the account.

Use the AMA2859 tool to prepare Form 2859, Request for Quick or Prompt Assessment, when the ASED is less than 60 days. See the AMA SharePoint for additional information and User Guides.

AM IDTVA skilled employees are required to use AMA2859 to prepare Form 2859.

Once the assessment is pending, complete all remaining actions to resolve the IDT issue.

(3) TC 150 SFR/Valid

91 - 180 days remain

The adjustment may be input following normal IDRS adjustment procedures.

(4) TC 150 SFR/Valid

90 days or less remain

Refer to IRM 25.23.2.5, Statute Protection, and its subsections to protect the account.

Use the AMA2859 tool to prepare Form 2859, Request for Quick or Prompt Assessment, when the ASED is less than 60 days. See the AMA SharePoint for additional information and User Guides.

AM IDTVA skilled employees are required to use AMA2859 to prepare Form 2859.

Once the assessment is pending, complete all remaining actions to resolve the IDT issue.

(5) Valid return moved to MFT 32 in Error

Regardless of ASED

Follow procedures in paragraph (3) of IRM 25.23.4.15, MFT 32 Cases - Moved in Error, to determine the appropriate actions to take.

(6) Invalid return moved to MFT 32 and valid return is unprocessed

Less than 180 days

Refer to IRM 25.23.2.5, Statute Protection, and its subsections to protect the account.

Use the AMA2859 tool to prepare Form 2859, Request for Quick or Prompt Assessment, when the ASED is less than 60 days. See the AMA SharePoint for additional information and User Guides.

AM IDTVA skilled employees are required to use AMA2859 to prepare Form 2859.

Once the assessment is pending, complete all remaining actions to resolve the IDT issue.

(7) No TC 150 present - valid return may be posted as TC 976/977 (E- Freeze) or unprocessed in CII case images

Less than 180 days

Refer to IRM 25.23.2.5, Statute Protection, and its subsections to protect the account.

Use the AMA2859 tool to prepare Form 2859, Request for Quick or Prompt Assessment, when the ASED is less than 60 days. See the AMA SharePoint for additional information and User Guides.

AM IDTVA skilled employees are required to use AMA2859 to prepare Form 2859.

Once the assessment is pending, complete all remaining actions to resolve the IDT issue.

(8) No IDT (with additional actions required)

Regardless of ASED

Follow applicable statute procedures for the program type (i.e., DUPF, XRET, MXEN, etc.). See IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations, for additional information.

Refer to the table below for imminent assessments on the IRSN module:

Determination

ASED Expiration

Actions

(1) Invalid return must be moved to an IRSN

180 days or more

Reprocess the return.

(2) Invalid return must be moved to an IRSN

Less than 180 days

Refer to IRM 25.23.2.5, Statute Protection, and its subsections to protect the account.

Use the AMA2859 tool to prepare Form 2859, Request for Quick or Prompt Assessment, when the ASED is less than 60 days. See the AMA SharePoint for additional information and User Guides.

AM IDTVA skilled employees are required to use AMA2859 to prepare Form 2859.

Once the assessment is pending, complete all remaining actions to resolve the IDT issue.

This section provides information on the identification of a barred assessment and initial case actions to be taken prior to adjusting the account when there is IDT involvement.

A "barred assessment" occurs when a legal tax assessment is not made within the prescribed period for assessment. The prescribed period for assessment can be identified by calculating the Assessment Statute Expiration Date (ASED) as three years from the IRS received date of the return in question. The ASED of each return on the module must be considered separately. A barred assessment is not determined by a refund or balance due, but the inability to assess tax prior to the expiration of the ASED for the return being considered.Complete thorough research to ensure there is no alternative means of assessing the tax (e.g., extension to file, extended ASED, Form 12810) before determining the assessment is barred. Refer to IRM 25.6.1.13.2.4, Identifying Barred Statute Cases, for examples of "barred assessments" and tolerance amounts.

Compare the total tax currently on the module to the amount of tax reported on the return being considered. If the total tax currently on the module is more than the tax reported on the return being considered, the assessment is not barred. Refer to the following options:

Invalid/Valid Nullity Case - When the ASED for the valid return has not expired, there is no barred assessment. Follow normal streamline procedures. See IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases.

Invalid/Valid Nullity Case - When the ASED for the valid return has expired, following normal streamline procedures will create a barred assessment if the valid return reports an amount of tax greater than zero. Continue with barred statute procedures.

Invalid/Valid IRSN Case - When the ASED for the valid return has not expired and the ASED for the invalid return reporting verifiable income has expired, there is no barred assessment. Follow procedures in IRM 25.23.4.11, Non-Streamline - Determining When Specific Year Account Information Must Be Moved, to address the invalid return.

Invalid/Valid IRSN Case - When the ASEDs for both returns have expired, the tax on the valid return cannot be assessed. Follow procedures in IRM 25.23.4.11, Non-Streamline - Determining When Specific Year Account Information Must Be Moved, to address the invalid return. Continue with barred statute procedures to process the valid return.

One Return IRSN Case - When the ASED has expired and the tax module has not been abated, follow procedures in IRM 25.23.4.11, Non-Streamline - Determining When Specific Year Account Information Must Be Moved, to address the invalid return. If the tax has been abated, this is a barred assessment due to the erroneous abatement. Continue with barred statute procedures.

The following procedures should only be used for cases identified as a barred assessment or erroneous abatement. For detailed case examples, see the IDTVA Barred Checklist Referral job aid on the IDTVA Hub. Before proceeding, perform the following actions:

Scan or attach the valid return to the CII case if the return is not in the images of that case or a linked case. If in a linked case, input a CII case note identifying which case includes the valid return.

Utilize the IDTVA Barred Checklist Referral located on the IDTVA Hub under "Statute" to assist in verifying all appropriate actions have been taken.

Print and retain a copy of any forms and/or worksheets (e.g., Form 1040, Form 5792, Form 8765, Form 12356, penalty calculator, or COMPA) used in the account adjustment(s). The documents will be included with the packet routed to statute.

Attach any forms and/or worksheets used to the CII case.

Use the chart below to identify applicable initial case actions:

Input a TC 560 with DLN CD of 70 or 99 to prevent Unpostable Code 178-2. Use DLN CD 70 when correcting the ASED to a later date than the posted ASED. Use DLN CD 99 when correcting the ASED to an earlier date than the posted ASED.

Ensure the ASED on the account is adjusted to reflect the appropriate date based on the new valid return. When the ASED on the impacted module is expired, a transaction date one day prior to the expiration must be used when inputting the TC 560 to prevent Unpostable Code 178-2.

If the valid return has not been processed follow procedures in IRM 25.23.4.6.5.2, Unprocessed Documents, and its applicable subsections to post the TC 976.

If

And

Then

(1) One return IDT – Erroneous Abatement (No valid return),

There is a TC 610 payment,

Address the payment:

Follow procedures in IRM 25.6.1.11.2.2.10 , ST-12 (Credit No Return), to identify misapplied payments.

Misapplied: Follow procedures in IRM 25.6.1.11.2.2.10.1, ST-12 Preliminary Actions, to address misapplied payments.

Not Misapplied: If made by the valid taxpayer, follow IRM 25.6.1.11.2.2.10.7, ST-12 Processing Received Returns, to convert the TC 610 to TC 670.

Follow procedures in IRM 25.23.4.10.1, Identity Theft (IDT) with Invalid Returns, resolve the IDT issue.

When the valid taxpayer has not filed a tax return, you must determine if they have a filing requirement that needs to be addressed.

(2) The posted TC 150 return meets non-streamline criteria,

The valid return has posted as TC 976,

Update the ASED even though valid return ASED has expired.

If a TC 610 payment is present, follow procedures in Table Scenario (1) above to research and address the payment.

Continue to paragraph (6).

(3) The posted TC 150 return meets non-streamline criteria,

A valid return has been received, and resolution of the case requires use of Form 12810, Account Transfer Request Checklist, to move the invalid return,

If a TC 610 payment is present, follow procedures in Table Scenario (1) above to research and address the payment.

Follow procedures in IRM 25.23.4.11.4.1, Manual Account Transfers – Form 12810, to move the invalid return and update the ASED.

At the point of adjustment, continue to paragraph (6) below.

(4) The posted TC 150 return meets streamline criteria, the TC 976 return was filed by the valid taxpayer, and the module does not reflect the valid return figures, as allowable,

The adjustment input went unpostable,ORThe account was backed out in error,ORThe adjustment input was incorrect (i.e., incorrect amount of tax, credits, etc.),

Do not refer the case back to the person who previously worked the case.

Update the ASED even though valid return ASED has expired.

If a TC 610 payment is present, follow procedures in Table Scenario (1) above to research and address the payment.

Continue to paragraph (6).

(5) There is no TC 150 posted,AND/ORA GUF Voided/Deleted return meeting streamline criteria is present,

GUF Voided/Deleted return (different DLN) is valid,

If the valid return ASED has expired:

Determine if the module reflects a Credit Elect (TC 716/TC 710), Estimated Tax (ES) payments (TC 660), and/or a payment with the return (TC 610).

Prepare a dummy return with zero tax liability complete with entity and exemption information. Send to SP for processing.

Form 1040 must be used when processing a dummy return. Forms 1040-A and 1040-EZ will unpost.

Edit the return in red::° Across the top of Form 1040 write "Dummy return prepared by IDTVA to post TC 150 for $.00" and "Use long entity" (or similar).° Below the entity section write "Do NOT "G" Code" (or similar).° Use original return received date.° If applicable, edit the "Payments" section of Form 1040 to include the total of any Credit Elect, ES payments, and payments with the return.

Suspend the case until the TC 150 has posted.

Continue to paragraph (6).

There is no barred assessment. Follow procedures in IRM 25.23.4.11.4, Moving Specific Year Account Information, to determine the appropriate actions to move the valid return to the correct TIN/module as a TC 150.

(6) The valid return was moved to MFT 32 in error,

There is no TC 150 on MFT 30,ORThe TC 150 amount on MFT 30 is less than the tax liability on the return moved to MFT 32 in error,ANDA valid return moved to MFT 32 has a tax liability greater than zero,

Follow procedures in IRM 25.23.4.15, Moved in Error, paragraph (3) Table Scenario (4).

When the valid taxpayer’s return is reporting a balance due, determine the amount of penalty and/or interest that cannot be assessed. This applies whether the return was timely filed or late, regardless of whether the balance was paid in full, partially paid, or remains unpaid. The amount of the barred assessment includes penalties and interest when determining the total amount lost to the IRS. Applicable penalties including Estimated Tax (ES) penalty, Failure to File (FTF) penalty, and Failure to Pay (FTP) penalty as well as interest are calculated to the ASED of the return being considered when determining the total amount of the barred assessment.

The (IRN) 871 procedures will not be followed when the ASED has expired.

FTF assessed for a maximum of 5 months

FTP calculated from the return due date to the ASED

Interest calculated on the unpaid balance, plus applicable penalties, to the ASED

A 2012 valid return was received 09262013 with a balance due. No extension or history of an extension was present, and no payments were made on the account. Penalties should be calculated as follows:• FTF assessed for 5 months (maximum)• FTP calculated from 04152013 to 09262016• Interest computed for the balance, plus applicable penalties to 09262016

After all initial case actions have been taken, continue to IRM 25.23.4.9.2.1, Adjusting Accounts with Barred Assessments, for adjustment and closing actions.