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Part 4. Examining Process

Chapter 19. Liability Determination

Section 22. CAWR Control

4.19.22  CAWR Control

4.19.22.1  (04-02-2008)
Clerical Duties Overview

  1. Combined Annual Wage Reporting (CAWR) is a program that permits employers to file a single statement to report Employee Earnings. Both the Internal Revenue Service (IRS) and Social Security Administration (SSA) use the information reported by employers.

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

  3. Each clerk performs assigned tasks and on occasion will be directed to other phases of similar but not familiar activities. For that reason cross training is essential. CAWR units may not be identical, but the clerical support activity is uniform in nature. This clerical section has been written as a guide regarding most of the common duties and assignments of a clerk. It is not all-inclusive.

  4. The CAWR Automated Program (CAP) is a computer application that houses the CAWR programs (inventory, correspondence, reporting, document preparation, and updated to Master File). CAWR clerks will update CAP during the CAWR process.

  5. The following tridocs outline specific tasks to be performed by the clerical staff.

4.19.22.2  (04-02-2008)
CAWR Correspondence

  1. The bulk of CAWR receipts will be responses:

    1. CP 251 - http:://gatekeeper.web.irs.gov/viewerCPText.asp?ddcp=391 separate and control as an IRS-CAWR case.

    2. CP 253 - http://gatekeeper.web.irs.gov/viewer.asp?pCP=253BT&pPages=2&pNum=CP 253 separate and control as an SSA-CAWR case.

    3. 99C letter - http://serp.enterprise.irs.gov/databases/forms-ltrs-pubs.dr/crxltrs.dr/c.dr/0099c.htmPerform research to determine if the case is an IRS-CAWR or SSA-CAWR case by following the research procedures See IRM 4.19.22.2.1.2.

  2. In addition, taxpayers may also respond to 2057C closing letters http://serp.enterprise.irs.gov/databases/forms-ltrs-pubs.dr/crxltrs.dr/c.dr/2057c.htm, adjustment notices, notices of intent to levy, or balance due notices. Further research may be needed to identify and process these cases See IRM 4.19.22.2.2.

  3. Correspondence may be received by mail, fax and/or referrals.

  4. CAWR cases can be defined as Reply, Late Reply, or Prior Late Reply.

    1. A Reply is any case without a closing date on CAP.

    2. A Late Reply is any case that has had a closing date input on CAP.

    3. A Prior Late Reply is any case no longer on CAP.

4.19.22.2.1  (04-02-2008)
Processing Incoming Receipts

  1. Upon receipt of all correspondence:

    1. Stamp correspondence with the date received in the CAWR area.

    2. Determine if the correspondence is in response to a CAWR discrepancy case.

      Example:

      CP251, CP253, or 99C

    3. Sort correspondence by IRS-CAWR or SSA-CAWR case type.

4.19.22.2.1.1  (04-02-2008)
CP251/CP253 Controlling Procedures

  1. All receipts must be controlled by the later of 14 days from the earliest IRS received date or 3 business days from receipt into the department.

    1. On CAP, click on "EDIT"

    2. Choose "Reply/Undeliverable Rcvd"

    3. Click "Reply"

    4. Enter earliest IRS received date

    5. Enter EIN and Tax Period

    6. Click "QUERY"

    When you are prompted... Then ...
    "Update the reply date on this CP251/CP253 issued"

    1. click"OK ."

    2. choose Cancel when prompted to add a case to a batch.

    3. keep cases sorted by program and received date in groups of no more than 20.

    4. See IRM 4.19.22.2.3.1"Batching and Controlling Replies."

    No matching correspondence records are found
    AND
    you have double checked the EIN and the tax period for accuracy and it is correct

    1. you have an additional reply which needs to be associated with the existing case file.
    The "case is already closed in CAP"

    1. click "OK" to add to the Late Reply Table.

    2. keep cases sorted by program and received date in groups of no more than 20.

    3. See IRM 4.19.22.2.3.2"Building and Controlling Late Replies."

    The "case does not exist in CAP"

    1. additional IDRS research is required to determine if this is a Late Reply case belonging to your site.

    2. and it is determined it belongs to your site, add to the Late Reply Table.

    3. keep cases sorted by program and received date in groups of no more than 20.

    4. and it is determined the case Does Not belong to your site, route the case to the appropriate site http.//wc.web.irs.gov/CAWR-SSA/Address%20and%20stophtm.

    Note:

    This may be a prior year late reply (no longer on CAP).
    The case belongs to a different site
    AND
    the correspondence is a Reply

    1. click "OK" to input the reply date on CAP.

    2. route the case to the appropriate site http://wc.web.irs.gov/CAWR-SSA/Address%20and%20mail%20stop.htm.

    The case belongs to a different site
    AND
    the correspondence is a Late Reply

    1. click "Cancel" when prompted to add to the late reply table.

    2. route the case to the appropriate site http://wc.web.irs.gov/CAWR-SSA/Address%20and%20mail%20stop.htm.

4.19.22.2.1.2  (04-02-2008)
99C and Miscellaneous Correspondence Controlling Procedures

  1. All receipts must be controlled by the later of 14 days from the earliest IRS received date or 3 business days from receipt into the department.

  2. Access the case on CAP to determine if it is an IRS-CAWR or SSA-CAWR case.

    1. SSA-CAWR cases will state "SSA Case" in the center of the header section.

    2. IRS-CAWR case will not have the "SSA Case" indicator in the header.

  3. For cases that are not on CAP, See IRM 4.19.22.2.2.

  4. Once research is completed, See IRM 4.19.22.2.1.1,IF and THEN chart.

4.19.22.2.2  (04-02-2008)
Researching on IDRS

  1. Research to determine whether the correspondence is an IRS-CAWR or SSA-CAWR case by following the steps below.

    1. IRS-CAWR: research CC TXMOD on MFT 01 for a TC 290 adjustment with blocking series 55 on the Form 94X.

    2. SSA-CAWR: research CC TXMOD on MFT 13 for a TC 240 adjustment with a Penalty Reference Number (PRN) 549 or (PRN) 550.

    3. When the taxpayer responds with the SSN used for their Schedule H, research the second page of CC IMFOLR to obtain the X-REF TIN/EIN.

      If ... Then ...
      You have an SSN
      AND there is a TC 290 on MFT 30 with blocking series 05       		this is identified as a IRS-CAWR case.
      You have an SSN
      AND
      there is no adjustment on the SSN research the EIN for TC 240 adjustment with a PRN 549 or PRN 550       		this is identified as an SSA-CAWR case.

  2. When it is determined the case is a CAWR case check the first two digits of the DLN and see http://serp.enterprise.irs.gov/databases/irm.dr/current/6209ch04.4.htm to route to the appropriate campus. When the case belongs to your campus, See IRM 4.19.22.2.3"Controlling on IDRS."

4.19.22.2.3  (04-02-2008)
Controlling on IDRS

  1. All replies and late replies must be controlled accurately and timely. Efficient inventory management is essential to meeting your program objectives.

  2. Clerical management must set up and maintain an Inventory Management process to ensure:

    1. A batch consists of no more than 20 cases of the same program and received date.

    2. Each batch will be recorded and tracked utilizing a separate log for each program.

    3. Each batch must be assigned to a tax examiner in received date order.

    4. Each batch number is build according to the program type as outlined in
      See IRM 4.19.22.2.3.1, IRM 4.19.22.2.3.2, and IRM 4.19.22.2.3.3.

    5. Designate specific IDRS numbers to maintain your reply, late reply and prior late reply inventory .

4.19.22.2.3.1  (04-02-2008)
Batching and Controlling Replies

  1. Once CAP updates during the overnight process, you can continue to the batching stage.

  2. A 2645C "Interim Letter" will be issued automatically by CAP when the case is open and aged to 25 days.

    Note:

    Management will monitor the CCA listing for any cases assigned to the staging area that are not closed within 60 days and request that a 2644C "Second Interim Response" be issued.

  3. CAWR batches will be numbered as follows:

    Tax year Program Sequence Number
    AA BBB CCCCC

    • AA= the last two digits of the tax year of the cases

    • BBB= Program type. IRS-CAWR Replies will be notated as IRS. SSA-CAWR Replies will be notated as SSA.

    • CCCCC= Next Sequential Number available in log.

      Example:

      06IRS00001= first batch created for IRS-CAWR Replies for 2006 cases.

      Example:

      05SSA00001= first batch created for SSA-CAWR Replies for 2005 cases.

  4. Retrieve cases already previously sorted (no more than 20 cases), of the same program and IRS received date and assign the next available batch number from the appropriate log book.

  5. Follow procedures below to update IDRS control.

    1. Access TXMOD

    2. Find C# control

    3. Access CC ACTON

    4. Assign the batch to the appropriate Status "A" control labeled TPRR and reassign it to the number designated for the program you are working.

    Example:

    CXX,06IRS00001. The "XX" will stand for the "C#" and will overlay the existing CAWR control number.

  6. Create a cover sheet listing each EIN/TIN of the batch, IRS Received Date, Batch Number. See Exhibit 4.19.22-1 for a sample cover sheet. Place cover sheet on top of the batch.

  7. File completed batch in inventory staging area separated by program in batch number order.

4.19.22.2.3.2  (04-02-2008)
Batching and Controlling Late Replies

  1. When the late replies are sorted, you can proceed to the batching stage.

  2. Suppress all balance due notices by inputting STAUPS or inputting TC 470 with CC 90.

  3. Issue a 2645C interim letter http://serp.enterprise.irs.gov/databases/forms-ltrs-pubs.dr/crxltrs.dr/c.dr/2645c.htmusing paragraphs A,B,G,U and c with a time frame of 60 days. Interim letters must be issued within 30 days of the IRS Received date to adhere to Action 61 guidelines.

    Note:

    Management will monitor the CCA listing for any cases assigned to the staging area that are not closed within 60 days and request that a 2644C "Second Interim Response" be issued. http://serp.enterprise.irs.gov/databases/forms-ltrs-pubs.dr/crxltrs.dr/c.dr/2644c.htm

  4. CAWR Late Reply batches will be numbered as follows:

    Tax Year Program/Late Reply Sequence Number
    AA BBB CCCCC

    • AA= the last two digits of the tax year of the cases

    • BBB= Program type. IRS-CAWR Late Replies will be notated as ILR. SSA-CAWR Late Replies will be notated as SLR.

    • CCCCC= Next Sequential Number available in log.

      Example:

      06ILR00001= first batch created for IRS-CAWR Late Replies for 2006 cases.

      Example:

      05SLR00001= first batch created for SSA-CAWR Late Replies for 2005 cases.

  5. Retrieve cases already previously sorted (no more than 20 cases), of the same program and IRS received date and assign the next available batch number from the appropriate log book.

  6. Follow procedures below to create IDRS control.

    1. Access TXMOD

    2. Access CC ACTON

    3. Create a new "A" Status control labeled TPLR and reassign it to the number designated for the program you are working.

    Example:

    C#,06IRS00001,A,TPLR
    IDRS Unit # and TE#,Rec'd Date.

  7. Create a cover sheet listing each EIN/TIN of the batch, IRS Received Dateand the Batch Number. Place the cover sheet on top of the batch. See Exhibit 4.19.22-1 for a sample cover sheet.

  8. File completed batch in inventory staging area separated by program in batch number order.

4.19.22.2.3.3  (04-02-2008)
Batching and Controlling Prior Late Replies

  1. When prior late replies are sorted, you can proceed to the batching stage.

  2. Suppress all balance due notices by inputting STAUPS or inputting TC 470 with CC 90.

  3. Issue a 2645C using paragraphs A,B,G,U and c with a time frame of 60 days. Interim letters must be issued within 30 days of the IRS Received date to adhere to Action 61 guidelines.

    Note:

    Management will monitor the CCA listing for any cases assigned to the staging area that are not closed within 60 days and request that a 2644C "Second Interim Response" be issued.

  4. Program/Prior Late Reply Sequence Number
    BBB CCCCC

    • AA= is not applicable due to multiple tax years being combined in one batch

    • BBB= Program type. IRS-CAWR Prior Late Replies will be notated as PRI. SSA-CAWR Prior Late Replies will be notated as PRS

    • CCCCC= Next Sequential Number available in log.

      Example:

      PRI00001= first batch created for IRS-CAWR Prior Late Replies.

      Example:

      PRS00001= first batch created for SSA-CAWR Prior Late Replies.

  5. Retrieve cases already previously sorted (no more than 20 cases), of the same program and IRS received date and assign the next available batch number from the appropriate log book.

  6. Follow procedures below to create IDRS control.

    1. Access TXMOD

    2. Access CC ACTON

    3. Create a new "A" Status control labeled TPLR and reassign it to the number designated for the program you are working.

    Example:

    C#,PRS00001,A,TPLR
    IDRS Unit # and TE#,Rec'd Date

  7. Create a cover sheet listing each EIN/TIN of the batch, IRS Received Date, and the Batch Number. Place the cover sheet on top of the batch. See Exhibit 4.19.22-1 for a sample cover sheet.

  8. File completed batch in inventory staging area separated by program in batch number order.

4.19.22.2.3.4  (04-02-2008)
Assigning Work to Tax Examiners

  1. The procedures below must be followed when assigning work to a Tax Examiner:

    1. Pull the batch with the earliest received date from the staging area.

    2. Access CC TXMOD on IDRS and using CC Acton, reassign the cases in the batch to the Tax Examiner's IDRS number.

      Example:

      Batch 06IRS00001 is assigned to 0123412345. To reassign the cases to 0123455555 enter:
      CXX
      0123455555

      The "XX" represents the appropriate Control number on IDRS to be reassigned.

    Note:

    When assigning a case directly to a Tax Examiner after the sorting phase assign the case on IDRS directly to the specific T/E number.

4.19.22.3  (04-02-2008)
Wage Information Retrieval System (WIRS)

  1. WIRs are copies of Forms W-3/W-2 filed by the taxpayer. They are ordered by the Tax Examiners during the screening phase.

  2. WIRs will be received via a local designated printer.

    Note:

    WIRs could also be received by mail and are processed by following the same sorting process below.

  3. Clerks will retrieve the WIRs from the printer. Each WIR request should have a cover sheet. The cover sheet will display needed information for sorting as follows:

    • EIN

    • IDRS number of requesting TE

    • MSN Number

  4. After the WIRS are retrieved follow the sorting process below:

    1. Match the EIN on the cover sheet to the Forms W-3/W-2. When all Forms W-3/W-2 are matched to the cover sheet distribute the WIRs to the TE who requested the information.

    2. If a cover sheet is not received, match the EIN on the Form W-3 to the EIN on each of the Forms W-2. Use CAP to research for the TE who requested the WIRs. The information will show in the"header section" of the screen. Distribute the WIRs to the requesting TEs.

4.19.22.4  (04-02-2008)
Undeliverables

  1. This section is to be used for all CP 251, CP 253, or 99C letters that are returned undeliverable. Undeliverable mail received from the mail room can be identified one of two ways:

    1. Unopened original CAWR correspondence.

    2. An opened original CAWR correspondence with the envelope affixed to the back.

  2. All undeliverable mail is to be reviewed within 7 calender days of the IRS received date.

  3. Check the envelope for a yellow Post Office (P.O.) forwarding sticker.

  4. When no P.O. sticker is present, research IDRS for a new/better address. A new/better address may be found using Command Codes ENMOD, INOLES, and NAMEE, and BRTVUE.

    Note:

    Use the Research Address IDAP when available.

  5. If CC ENMOD shows an SSN that is responsible for the entity, use CC INOLE definer "S" for the SSN to research for a new/better address. If CC ENMOD shows a Mr. and Mrs. listed, address the notice to only the taxpayer that owns the SSN found on ENMOD for disclosure purposes.

    If ... Then ...
    A new address is found
    AND
    it is within 30 days of the mail out date     		the clerks will re-mail all information, including the original envelope to the new/better address.
    A new address is found
    AND
    it is after 30 days of the mail out date

    1. print the IDRS CC screen containing the new/better address.

    2. attach the print to the Undeliverable mail.

    3. input Undeliverable date onto CAP and batch the Undeliverable to a T/E.
    A new address is NOT found input Undeliverable date and batch for a T/E to work.

    Exception:

    SSA-CAWR Undeliverables received after cycle 33 are not to be worked or updated on CAP. Hand carry to your lead or manager.

4.19.22.4.1  (04-02-2008)
Undeliverable Mail for Returned SSA (CP 215 PRN 549 or PRN 550)

  1. Research undelivered correspondence with operational errors, incomplete or incorrect name and erroneous or extraneous data. Make corrections and re-mail all information, including the original envelope to the new/better address.

  2. Research the undeliverable and IDRS for a better address. See IRM 4.19.22.4. If a better address is found, re-mail all information, including the original envelope to this (new/better) address.

    Note:

    Do not update CAP.

  3. When a new/better address is not found,give to a Tax Examiner to file the correspondence.

4.19.22.5  (04-02-2008)
Routing Documents

  1. Clerical function is responsible for all outgoing mail. This mail may consist of internal mail, misdirected mail, or external mail.

  2. Internal mail is routed to other areas using a Form 3210 "Document Transmittal" . The receiving area will acknowledge the receipt of the cases by sending a signed copy of the Form 3210 back to the originating area. These forms must be maintained in a log in the CAWR unit.

  3. At times misdirected mail may be received. This is mail not related to the CAWR or FUTA programs. This mail will be routed back to the mail room for proper routing.

  4. When the Tax Examiners complete their daily work it is filed in brown folders. Follow local procedures for routing these folders to the Files Function.

  5. Form 9338 "Closed Case Result Sheet for Returned SSA Cases" are filled out by the Tax Examiners and sent to SSA at least monthly. Send each tax year to SSA with a separate Form 3210 as a batch cover. All Forms 3210 and Forms 9338 (with attached paper Forms W-3/W-2) should be sent to the following address.
    Social Security Administration
    Division of Employer Services
    3 F 20 N.B. Metro West Building
    300 N. Greene St.
    Baltimore, MD 21290–0300

  6. Form 6494 "Correction of W-3 Transmittals" are filled out by the Tax Examiners and sent to SSA at least monthly. Attach a Form 3210 as a batch cover sheet. All Forms 3210 and Forms 6494 should be sent to SSA at the following address:
    Social Security Administration
    Data Operations Center, ATTN: IRS Reconciliation
    1150 E Mountain Drive
    Wilkes-Barre, PA 18702–7997

  7. At times Forms W-2/W-3 or Forms W-2C/W-3C are received prior to SSA Processing: These Forms will be notated with "URI" across the top. These will be sent to SSA at the following addresses:
    If sent via United States Postal Service use:
    SSA
    Data Operations Center
    P.O. Box 3333
    Wilkes-Barre, PA 18767–3333
    OR
    If mailed by other postal service ie. UPS, Federal Express, etc.
    SSA
    Data Operation Center
    ATTN: W-2c Process
    1150 E. Mountain Drive
    Wilkes-Barre, PA 18702–7997

4.19.22.6  (04-02-2008)
Discovered Remittance

  1. Cash and non-cash remittances found outside of the Receipt and Control secured/restricted area are "discovered remittances."

  2. When a Remittance is discovered you must:

    1. Immediately notify your manager/lead.

    2. Access CC INOLES to verify the name.

    3. At the bottom of the CC INOLES screen type the MFT, YEAR/Quarter, 670/570, Rec'd date, and money amount.

    4. Print three copies of the CC INOLES screen. One attached to the case and two attached to the Remittance.

    5. Complete a Form 4287 "Payment Posting Voucher."

    6. Hand carry both the remittance, Form 4287 and INOLES prints to your Manager.

4.19.22.7  (04-02-2008)
Loose Forms W-2

  1. Any loose Forms W-2 received into the department need to be researched on CAP:

    If ... Then ...
    There is a case on CAP
    AND
    it is assigned to a Tax Examiner     		give the Forms W-2 to the examiner assigned to the case.
    There is a case on CAP
    AND
    it is not assigned to Tax Examiner     		give the Forms W-2 to your lead for further research.
    If there is not a case on CAP give the Forms W-2 to your lead for further research.

4.19.22.8  (04-02-2008)
Loose Schedule D

  1. Any loose Forms 941 Schedule D received into the department need to be researched on CAP:

    If ... Then ...
    There is a case on CAP
    AND
    it is assigned to a Tax Examiner     		give the Schedule D to the examiner assigned to the case.
    There is a case on CAP
    AND
    it is not assigned to Tax Examiner     		give the Schedule D to your lead for further research.
    There is not a case on CAP

    1. Give the Schedule D to your lead for further research.

    2. Once the lead researches the case they may instruct you to file it by tax year and EIN order for future downloads.

4.19.22.9  (04-02-2008)
Retrieving Phone Messages

  1. At times taxpayers or internal IRS areas may call to inquire about a CAWR issue. The clerical team will be responsible for retrieving and recording the information left on voice mail.

  2. On a telephone message slip record the following information:

    1. Date and time of call

    2. Name of individual calling and company name

    3. Phone number and extension

    4. Best time to reach caller

    5. EIN and tax period

    6. A brief explanation of issue

    7. The name of the clerk retrieving the message

  3. When the case has an open "A" control on IDRS place the message slip in the Tax Examiner's designated mail box.

  4. When the case is not controlled give the message slip to your lead for further research.

Exhibit 4.19.22-1  (04-02-2008)
Batch Control Sheet

Batching Cover Sheet
 
Program_____________
IRS Received Date______________
Batch #_________
TE #_________
 
1 EIN#  
2 EIN#  
3 EIN#  
4 EIN#  
5 EIN#  
6 EIN#  
7 EIN#  
8 EIN#  
9 EIN#  
10 EIN#  
11 EIN#  
12 EIN#  
13 EIN#  
14 EIN#  
15 EIN#  
16 EIN#  
17 EIN#  
18 EIN#  
19 EIN#  
20 EIN#  

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