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Part 4. Examining Process

Chapter 19. Liability Determination

Section 21. Clerical

4.19.21  Clerical

4.19.21.1  (10-01-2003)
Clerical Duties Overview

  1. The success of the Exam Operation depends directly on the work performed by the clerical staff. Exam clerks are called upon to multi- task in order for the Exam units to function. They are a vital element in successfully achieving service wide program goals.

  2. A typical clerical support staff has a work leader, whose responsibility is to ensure that the clerical function is running smoothly as they assist the unit members in doing their assigned tasks. Each clerk performs those assigned tasks and on occasion will be directed to other phases of similar but not familiar activities. For that reason cross training is essential. Examination units may not be identical, but the clerical support activity is uniform in nature. This clerical section has been written as guide regarding most of the common duties and assignments of a clerk. It is not all-inclusive.

  3. The following is to be considered as a guide for the clerical support function of the Exam units.

4.19.21.1.1  (01-01-2007)
General Overview

  1. Exam clerks perform multi tasks; below is a general listing of those tasks performed by the Correspondence Examination Clerks:

    1. Receiving and processing incoming correspondence including researching, updating RGS/CEAS , AIMS and assigning and routing the correspondence.

    2. Creating Statutory Notices of Deficiency

    3. Perform Mail-outs

    4. Maintaining Files

    5. Researching accounts as requested

    6. Address changes

    7. Statute awareness

4.19.21.2  (01-01-2008)
Processing Incoming Correspondence

  1. Correspondence may be received by mail, fax, and /or referrals from other areas.

  2. Correspondence will be date stamped within two days of the IRS Receive date.

  3. Correspondence will be researched to determined the location of the case.

    • AIMS inventory is tracked via AIMS Status Codes. These Status Codes identify the location of the cases as it proceeds through the examination Process, e.g. starting at status 06 and ending with a closed case status 90. AIMS Status Codes are listed in Document 6209 Section 12, Examination, TE/GE, Appeals Section.

    • Updating an AIMS status is accomplished when running the GII after updating the RGS status. Follow GII procedures.

    • Some case work may require an update or history item be placed on IDRS tax module. The command code ACTON is used for placing a history on IDRS. Record layouts for all command codes can be found on SERP under IRM Supplement - Command Code Job.

  4. If the case is a manual case or a batch case with prior correspondence associate the correspondence with the case file and route the cases as stated below. If the case is a batch case without prior correspondence, route the correspondence.

  5. Route the case/correspondence as follows:

    If Then
    Misrouted or Rerouted Route to the proper areas within one day
    Undeliverable Aims Status 24. Perform IDRS research on ENMOD

    • If new address is found, check the cycle in which the address change was made and match against the 90 day letter date. If the date of the new address change is:

    • Before the 90 day was issued: re-issue the 90 day letter to the correct address

    • After the 90 day was issued: re-mail the current 90 day letter to the correct address.

    • After the 90 letter defaults: no other action is needed. If paper is received associate to case file.

    • If no new address was found, Associate with case file no other action is necessary.

    Undeliverable Aims Status 90 Associate with case file, no other action is necessary.
    Undeliverable all other Aims Statutes

    • If new address is found, mail a copy of the last letter to the taxpayer and change the suspense date for an additional 30 days.

    • If no new address was found, associate with case file, no other action is necessary. Case should be updated to a status 2499.

    Unclaimed mail from the post office (certified mail is sent to the correct address but was not claimed, by the taxpayer). Place unclaimed mail into the case file and update RGS/CEAS to status 2497.
    Miscellaneous transcripts, reports and or charge outs Route to the proper unit/ team within exam based on the campus policy.
    Agreed mail
    No other comments     		Associate with paper file if paper file exists and send to the proper unit/team. Mark the case as priority work
    Agreed mail
    With comments     		Associate with paper file if paper file exists and send to the proper unit/team within exam to be worked within 1 day. Mark the case as priority work
    All other mail Research IDRS/RGS/CEAS to determine if the case has been previously assigned.

    • If the case was previously assigned route to assigned examiner or team within 5 days of the mail receive date.

    • If the case is unassigned batch and route mail within 5 days of the mail receive date, based on local management procedure.

    Closed Case and if audit reconsideration criteria is met (TC 300 is unpaid or an un-reversed credit) Send to Centralized Reconsideration Unit (CRU)
    Closed Case and it does not meet audit reconsideration criteria as stated above Send to First Read

4.19.21.3  (01-01-2007)
Statutory Notices

  1. Statutory Notice of Deficiencies are created through RGS. The Statutory Notice of Deficiency (SNOD) will be run through the AMSTUS/STN02 program and those accepted will be printed and mailed by the CPS site

    • The two consolidated sites are CPS East in Detroit and CPS West in Ogden

    • For cases that are accepted into the STN02 process the Statutory Notice and the mail out package including the report will be dated the 3rd Monday after the aging program

    • For cases that fail the validity checks for CPS processing, the Statutory Notice will be printed and mailed locally and have the following Friday’s date after the aging program is run.

    • Those that fail the STN02 process, will be generated by the AMSTUS/STN01 process in machine services at the site level, and then shipped to Exam for association with the copy of the report and mailing. The Batch Aging copy of the report will be generated and printed within the Exam area.

    • Verify that the correct penalty code (if any) has been cited and the Form 886A computation matches the amount of the report.

    • A copy of the Statutory Notice of Deficiency will be maintained in the 90-day files until closing/default.

    • Stat notices will be kept bundled in mail out date, then SSN order.

  2. Only in very rare situations will a case reject from B1and need a manual Form 5600 input to IDRS. If this occurs, input the Form 5600 to IDRS and when the statutory notice arrives, check figures for accuracy and ensure the proper number of copies were printed (two stat notices for the taxpayer, one for file, and one for third party if one is listed on CAF - check CFINQ). In the vast majority of the work, Batch will give you a listing of all cases going into the 90-day process. The Statutory Notice of Deficiency and the certified listing will generate in machine services. The report will generate in Batch. Check filing status with IDRS entity.

  3. Verify that the correct penalty code (if any) has been cited and the Form 886A computation matches the amount of the report.

  4. Associate the report and the 90-day letter and mail to the taxpayer using current procedures (fold and stuff into envelope two copies of stat notice, one copy of Form 886A, applicable letter, and any attachments).

  5. Reject Listings: You will get weekly status 24 listings with weekly mail dates present. If the correspondence has been addressed, remove the date on IDRS and enter new date.

  6. Replies Received in Status 24 STN01, B0 Manual:

    • Pull the Stat Notice

    • If no Correspondence Received Date is on RGS/CEAS, input one

    • If it is assigned to a group, deliver the reply, to the appropriate group. Update on RGS/CEAS with the correct type code, 98 in the 3rd and 4th digits, and assign the case to the RGS/CEAS group

    • Do not update the status. Leave all 90 – day cases in status 24.

    • If it is not assigned to a correspondence group, assign it to one based on guidelines set by the Management

  7. STN02 and prior Status 23 or 25

    • Pull the case file

    • Return case to the controlling unit

  8. Defaulting STN02 With No Replies

    • A listing, in SSN order, of the cases that have defaulted will be provided by the Batch Coordinator. Your case will consist of the following when it is forwarded to files:

    • A Closing Information Cover Sheet (CICS), Form 13181 will be generated in the Print Manager Program and provided by the Batch Coordinator. An electronic record of both the Statutory Notice and the report are maintained with RGS/CEAS therefore, there will not be a copy of the report sent to files.

  9. Defaulting STN02 Cases With Replies Your case will consist of the following when it is forwarded to files:

    • The reply,

    • The revised report, if one was prepared and mailed out,

    • Any attachments,

    • The Closing Information Cover Sheet.

  10. Defaulting Cases STN01 / BO Manual With No Replies Cases will consist of the following when it is forwarded to files:

    • The Closing Information Cover Sheet

    • Statutory Notice of Deficiency

    • Any attachments

4.19.21.4  (01-01-2007)
Preforming Mail Outs

  1. The clerical function will assemble the notice package and prepare the envelope for mailout. The package will contain the following:

    1. Two (2) copies of the initial contact letter (ICL)

    2. Two (2) copies of the exam report

    3. One (1) copy of the Form 886

    4. One (1) copy of the stuffers -- Pub. 3498-A

    5. One (1) return envelope.

  2. Place package in envelope E44B.

4.19.21.5  (01-01-2007)
Maintaining Files

  1. The following procedures are standard in Campus Examination Operations when utilizing the RGS/CEAS system to maintain examination cases:

    • Update all cases coming into unit on AIMS/RGS/CEAS/IDRS. Update to your EGC and RGS group number. Cases in Batch are maintained in the Batch inventory, not in a unit inventory, but you track by the organization code (to find location). When cases are reassigned, either within the unit or to another area, update name of examiner and date on RGS/CEAS. This is often the best trail for which to find a case, so it is very important to do it timely and correctly. Annotate electronic history sheet on RGS/CEAS. Ensure all pertinent information is included in update.

    • When correspondence comes in, input correspondence date immediately (no longer than 5 business days of receipt). The correspondence date needs to be input any time correspondence is received. Document the automated history sheet when you update cases – to status 54, when you move them from unit to unit, etc.

    • Before the correspondence is worked, follow local (campus) procedures for storage. A centralized storage by the T.E. is most probable, stored by earliest IRS received date, then SSN order.

    • Once it is worked by the T.E. the unit clerk will store correspondence by date, then SSN order (a unit centralized file).

    • Monitor dates to ensure work is moved to next status promptly.

    • In most cases, inventory is purged 45 days from the letter date sent by the T.E. There may be other time frames – if so, your manager will inform you of these.

    • The correspondence should be purged and sent to 90-day. If the case is in Status 24. never change the AIMS status. Prepare transmittal form 3210 and send with the correspondence to the 90-day unit.

    • The file will remain in your unit organization code.

    • Update all B0/B1 cases going to another unit (such as 90-day). Update on AIMS/RGS/CEAS/IDRS. Follow procedures in the RGS/CEAS Batch Processing Guidelines to update. The work must be removed from B0, updated, and returned to B0.

    • You will receive weekly listings such as status workloads, ARP 340, etc. Your job will be to research RGS/CEAS, AIMS, IDRS, and paper, to account for the case or determine if the case was forwarded elsewhere. Work per instructions from your team leader or work leader. Once the cases age from report status, they should be electronically sent to the 90-day unit. Print list for manager/work leader. Check for any unassociated mail for any file you are moving – to another unit or to 90-day.

    • You will assist local management in the preparation and review of reports.

4.19.21.6  (01-01-2007)
Routing Closed Cases

  1. All closed cases that have a Statutory Notice of Deficiency, a Reply, or Agreed Report will be forwarded to files.

    • Forward the Closing Information Cover Sheet and attachments, to the Document Retention Unit for association with Form 5147 transmittals.

    • Any attachments or miscellaneous document that need association with a previously closed file will be forwarded using a Form 9856 cover sheet.

4.19.21.7  (01-01-2007)
Researching Accounts as Requested

  1. There are numerous command codes for case research. The service wide inventory control system is the AIMS. Prior to most case activity, research should be performed.

  2. See IRM 4.19.13.3 Researching Cases. This section contains the most commonly used command codes for research.

  3. Record layouts can be located on SERP - IRM Supplements - Command Code Job Aide.

4.19.21.8  (01-01-2007)
Address Change-IDRS

  1. Address changes will be obtained from; undelivered mail, telephone contact forms, taxpayer replies and from the Tax Examiners. It is imperative that all address changes be input into the IDRS system. The RGS/CEAS Batch Processing Systems will update itself from IDRS at the Statutory Notice stage.

    ENREQ is the Command Code for initiating an address change
    Record Layout can be located on SERP - IRM Supplements - Command Code Job Aide.

4.19.21.9  (01-01-2007)
Statute Awareness

  1. The potential for missing a statute assessment date always exists. Follow established guidelines in identifying possible statute cases. Complete Form 895 if statute date is within 180 days. If in doubt when or if a case meets STATUTE criteria, refer case to your manager.


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