Unless otherwise specified in this section, mark all late replies from taxpayer or representative "Late Reply" and route to originating area.

Route EP late replies to EP Accounts Management, MS:6270, Ogden Campus.

Process late replies for exempt organizations (EO) as follows:

If you receive a late reply to Letter 2696C, Letter 2697C, Letter 2698C, or Letter 2699C, research IDRS CC ENMOD to see if a second Letter 2696C,Letter 2697C,Letter 2698C, or Letter 2699C was issued.

When letter is a late reply to an inquiry, route to Entity Control function if a temporary Social Security Number (SSN) was assigned and taxpayer now provides actual SSN.

Stop notice if it has not been issued and taxpayer information indicates that it should not be.

Take necessary actions to resolve situation. This may include preparation of a request for adjustment on a late reply to correct an adjustment action that was previously input.

Process "Late Replies" for letters that were initiated by Document Perfection, Unpostables, or Rejects.

Forward all correspondence that might be a "non-filer " case, to the unit which handles this type of correspondence.

If item is returned by the unit, indicate Category A on document and forward to Campus Examination function.

This section outlines actions to be taken upon receipt of undelivered items. Undelivered mail is received in and from Campus Mail Operation.

Refer to IRM 3.30.123.15.2 IRM Undelivered and Limited Payability Refund Checks, for certain processing timeframes.

Forward elections filed under the sections of IRC listed below to Return Files function for association with the original income tax return. If research indicates no return has been filed, return the document(s) to the taxpayer on Form 3699, Return of Documents to Taxpayer. Request that the document(s) be resubmitted when the taxpayer files a return.

A person, who realizes a gain or other income because of an exchange to which IRC Section 367(b) applies, must file a notice of such exchange on or before last date for filing a Federal income tax return for taxable year in question. Route these notifications to Examination Classification function.

Form 5213, Election to Post taxpayer one Determination as to whether Presumption that an Activity is Engaged in for Profit Applies, is filed under IRC Section 183(e) . Upon receipt, route to territory office to attention of Planning and Special Programs Manager, Examination function. Indicate on transmittal document that Section 183(e) elections require follow-up action on subsequent returns. Send elections to territory office with jurisdiction over address of taxpayer on Form 5213.

Route all elections with a notation "Filed under IRC Section 2032A" or containing a reference to Form 706, United States Estate Tax Return, Valuation Election, to Exam Support function. If a claim is attached to election, route both claim and election to Exam Support function.

Taxpayers' may submit letter requests to retain (or adopt) a fiscal tax year under the Subchapter S Revision Act of 1982. Route these requests to Entity Control.

For Form PD 1668, Request for Redemption of Registered Securities, input TC 930 Push Code to associate Form PD 1668 with " Registered Owner" corporation's income tax return for period that includes "Date Paid" date.

Process requests identified under IRC Section 936 for Revocation of an Election to be Treated as a Possessions Corporation, as set forth in Treasury Reg. Section 1.936–7(c).

Route Form 8546, Claim for Reimbursement of Bank Charges Due to Erroneous Service Levy, to campus Collection Operation.

Route election or Form 8023, Elections Under IRC Section 338 for Corporations Making Qualified Stock Purchases, shown below to territory office with jurisdiction over purchasing corporation (or common parent of purchasing corporation if a consolidated return is filed) listed on election or Form 8023. If you cannot determine correct territory office, route election to Exam Classification. You can use purchasing corporation's address in box 2a of Form 8023 to determine correct territory office as shown below.

IRC Section 83(b) - Election to include Certain Restricted Property in Gross income.

Refer to IRM 3.10.72, Extracting, Sorting, and Numbering, for proper routing instructions for other types of elections or notification. If routing instructions are NOT in IRM 3.10.72 and NOT identified specifically in these instructions, route to Return Files function for association with return. Underline name-control on all items routed to Return Files function and enter MFT and tax period in top margin.

Correspondence that should not have come to IRS is received from two principal sources:

Return packages to USPS when they made the error.

If you determine that correspondence is a return that should have been filed in one of the locations listed below, send it to appropriate jurisdiction. Otherwise, return to sender.

If it is an original return that should have been filed in a foreign country, return it to sender, if possible. If it is undeliverable, forward to State Department, addressed as follows:

Do NOT include name of foreign country in address.

Whenever such misdirected mail is found to contain a remittance, follow instructions in IRM 3.8.46, Discovered Remittances, if remittance is cash. If other than cash, follow instructions in IRM 3.10.72, Extracting, Sorting, and Numbering.

Transship referrals to campuses using Form 4442 or transmit by telephone. Territory offices may use messenger or mail service to transship referral cases when background material must be sent with case. Referrals can be made to a campus from the territory level, from another campus, or from within the campus after research of all available data does NOT resolve inquiry.

If an IDRS control base already exists on a referral case, update and reassign case to appropriate function. Control routine case referrals on IDRS following guidelines in IRM 21.5.1.4.2.2, Integrated Data Retrieval System (IDRS) - Control Procedures.

Personnel in a designated area in a campus process referrals to completion or transfer case to appropriate area if additional action is required for final resolution of inquiry.

Maintain control to ensure that a written reply is made to taxpayer on referrals within 30 calendar days of IRS-received date. If you cannot issue a final reply within this time, issue an interim reply, in writing or by telephone, to taxpayer. Resolve referral as soon as possible.

If an interim reply was sent from a territory office, you do not need to send another from a campus.

Campus replies directly to taxpayer in all cases except those in which a previous agreement dictates that reply should go to referral resolution point in territory office. See IRM 13.1.7.2, TAS Case Criteria and IRM 13.1.7.3.2, Receipt of Potential TAS Cases, for procedures for TAS referrals.

When replying to taxpayer by telephone:

If referred inquiry relates to an assigned field case (Taxpayer Delinquent Account (TDA) or TDI), forward to campus Collection Operation; do NOT establish IDRS control.

This section provides instructions for preparation and review of (C) letters, (SC) letters, dictated and special letters, and handwritten replies.

The CORRESPONDEX (CRX) letter generating system is the letter writing system for the Internal Revenue Service. There are over 600 letters available for use to fit almost every tax situation. Use CRX to generate letters to taxpayers' through the Integrated Data Retrieval System (IDRS). Currently, letters without attachments are printed at the two National Print Sites, located in Detroit and Ogden. Letters with attachments print in your jurisdictional campus.

The Correspondence Expert System (CES) is "smart" software that is used in conjunction with CRX to assist the user with proper sentence structure and grammar. See CES Job Aid on SERP.

A searchable database with read only versions of current letters is available through SERP and has replaced the hard copy of Document 6548(CORRESPONDEX). See CORRESPONDEX Letters on SERP.

Additional information can be found in IRM 2.4.6, Command Codes LETER, LPAGE, LPAGD, LETUP, LETED, LLIST, and LREVW, Also, refer to CORRESPONDEX Job Aid on SERP under Letters/Forms/Pub tab.

Preparer Guidelines – IRS sends correspondence to taxpayers' to solicit information necessary to perfect returns and documents being processed. It also responds to taxpayer inquiries.

For purposes of anonymity, employees have the option of using only their last names on correspondence. Employees who have contact with the public, and do not believe use of only their last names provides sufficient anonymity, may ask to use a pseudonym.

IRC Section 3706authorizes the use of pseudonyms for IRS employees only if adequate justification is provided by the employee and its use is approved by the employee's supervisor. Justification must include the protection of the employee's personal safety.

Refer to IRM 1.2.4, Use of Pseudonyms by IRS Employees, for detailed procedures.

Employees who have a request for a pseudonym approved are given a new ID card with a new ID number.

A designated coordinator must immediately notify Treasury Inspector General for Tax Administration (TIGTA), by memorandum, as pseudonyms are issued. Managers issue pseudonyms from a predetermined list established and maintained within the site.

Local procedures are developed so managers and employees can readily identify each employee.

Typing function receives Form 3696, Correspondence Action Sheet, from various areas within the campus. These forms request preparation of a form (SC) letter, pattern letter, or special letter.

Except as provided in IRM 21.3.3.4.23, Quick Notes and C-NOTES, all correspondence must be typed. See IRM 21.3.3.4.23.

See IRM 21.3.3.4, Correspondence Procedures, for specific instructions on initiating various types of correspondence.

Refer to IRM 1.10.1, The Internal Revenue Service Correspondence Manual, for general instructions and proper format for preparing special letters.

Prepare Form 3696-A, IDRS Correspondence Action Sheet, when it is necessary to initiate a C letter to a taxpayer. If you are able to input letter on IDRS, you may not need to prepare Form 3696-A.

Clearly specify necessary "fill-in" and selective paragraph information on Form 3696-A. Failure to do so may result in incorrect information being transmitted to taxpayer. Avoid using IRS jargon. For example, when referring to tax year 2006, use 2006 rather than 200612. Tax period fill-ins coded as 13P can be entered as YYMM. They will be converted and printed on letter as a complete date; e.g., 200612 becomes December 31, 2006.

In most instances, prepare a separate Form 3696-A for each case and attach to document requiring correspondence. In instances where there is a high-volume item, you may prepare a cover Form 3696-A. Whenever possible, attach Form 3696-A so that name and address portion on document is visible.

Make sure that you have annotated all conditions requiring correspondence and prepared Form 3696-A properly. The terminal operator may return incomplete or illegible Forms 3696-A. Send remittance returns with Form 3696-A through computer processing. Preparation of correspondence on these documents takes place after computer rejection.

You may withdraw non-remittance returns from processing with Form 3696-A. Route them for input of a " C" letter if the local organization provides this capability. Be sure that "fill-in" numbers identified on Form 3696 coincide with items on corresponding letter in CORRESPONDEX Letters on SERP. Failure to do so may result in incorrect information being transmitted to taxpayer.

Input IDRS correspondence in accordance with IRM 2.4.6, Command Codes LETER, LPAGE, etc. The IDRS number of the initiator generates on all manually generated IDRS CORRESPONDEX (CRX) letters.

You may also use Correspondence Expert System (CES) to generate letters. The CES offers features not available in the CRX system.

Make sure that signature title codes are input to generate appropriate signatures on outgoing letters. If you do not have laser signature capability, make sure letter is rubber-stamped or signed by hand. Signatures on outgoing letters are mandatory; failure to obtain a signature is coded as an error during Quality Review process.

All manually generated letters must include the name, telephone number and employee identification number of the employee who can be contacted. When CORRESPONDEX letters are input by the terminal operator, the operator must input the IDRS number of the initiator of the letter or the employee who is to be contacted.

Prepare Form 3696-A when it is necessary to initiate an SC or SC/SP letter to taxpayer. ( See IRM 21.3.3.4.20, Initiation of C Letters, for more information on completing the form instructions.)

SC Letters are preprinted form letters and SC/SP letters are preprinted form letters printed in Spanish.

Only Philadelphia Campus uses reproduced copies of SC/SP letters. Other campuses that need to initiate a Spanish language letter should use SC/SP letter as a guide, using local dialect if it differs from that on SC/SP. Include a contact number of a specific person, if appropriate. If a specific contact point is not appropriate, include the Toll-Free number as part of the letter. Do NOT include an English language Toll-Free telephone stuffer notice with a Spanish language letter.

In most instances, prepare a separate Form 3696-A for each case and attach to document requiring correspondence. In instances where there is a high volume item, you may need to prepare a cover Form 3696.

Whenever possible, attach Form 3696 in such a manner that name and address portion on document is visible.

Make sure you have noted all conditions requiring correspondence and prepared Form 3696 properly.

Letters must contain a telephone number of a person who may be contacted. This number can be Toll-Free.

Send remittance returns with Form 3696 through computer processing. Preparation of correspondence on these documents takes place after computer rejection.

You may withdraw non-remittance returns with Form 3696 from processing and then route for typing.

Before or after perfection or adjustment of a return or declaration, you may need to correspond with a taxpayer but find that there is no approved letter covering the exact situation.

In this case, the person examining or adjusting return composes an original letter on Form 3696-A. When a programming error, policy change, etc. results in a large volume of similar inquiries, you may develop a "dictated pattern letter" for one-time use only. Purpose of this type of letter is to expedite and provide a uniform response to existing problem.

Use dictating equipment, if available, to convey correspondence requests to typing function.

Initiation of a special letter is limited to those instances where, after thorough research, you have concluded that a letter does not exist that fits the situation.

Whenever possible, print special letters in "Normal" C-Letter Font or in Laser Notice standard print font "IRS Gothic 12" at 8 lines, 12 characters per inch to save on postage.

Letters must contain a contact name, telephone number (Toll-Free or non-Toll-Free) and a unique employee identification card number of a person who can be reached in regard to his/her inquiry.

The purpose of Form 5260, Quick Note, is to provide quicker, more personal service. Similarly, a C-NOTE may be input on IDRS.

Quick Notes must:

Examples of a few circumstances where a brief information message would suffice are:

With the exception of the handwriting requirement and mandatory 100% review, conditions for using a Letter 3064C, formerly C-NOTE, are the same as those shown in (3) above. DO NOT use a Quick Note or 3064C if there is another appropriate C or SC letter available and/or no situation in (3) above is met. See IRM 21.3.3.4.23 (3).

Originator must sign Quick Note.

Select the appropriate signature code for the 3064C.

Postdate Quick Notes to allow sufficient time for review, stuffing,etc.

The following covers review of C Letters:

The following covers review of SC and SC/SP letters:

Review rough draft and dictated letters in accordance with above procedures.

Make sure all enclosures have been associated with outgoing correspondence. If taxpayer has authorized a representative on file (Form 2848) to receive certain tax information about a specific tax matter, mail notices and correspondence concerning that matter, along with a generated copy of letter, to the representative. Indicate on taxpayer's copy of letter that enclosures were sent to representative. Staple enclosures between original and duplicate copy of letter, if appropriate.

Include telephone stuffer notices (e.g., Notices 356 through 465, depending on taxpayer's address) with most outgoing correspondence. Do NOT include stuffer notice with the following:

Route letters identified in (2) above to Machine Services function along with a transmittal document indicating, "Telephone Number Correspondence - Do Not Include Telephone Stuffer Notice."

Some campuses may instruct employees to stamp blank schedules enclosed with correspondence sent to a taxpayer to perfect a return. Stamp must show letter number and date so schedule may be easily associated with suspense item if completed schedule is returned without a copy of transmittal letter.

Route one-page letters to Machine Services function for machine-folding and stuffing in accordance with IRM 3.13.62, Media Transport and Control.

Hand-fold all two page letters and one page letters with enclosures.

If past tax year joint filers have changed their filing status, the Service mails correspondence to both parties when there is activity on an account. The purpose of this procedure is to assure that both taxpayers' responsible for a joint account are aware of any action on account as soon as possible. IDRS letters, notices, and MF notices generate duplicate copies to notify both filers.

Notification to both affected parties at earliest possible point in process results in improved taxpayer service; reduction in taxpayer burden; accelerated collection of taxes; enhanced voluntary compliance and a marked reduction in need for manual research.

Accounts with copies of correspondence generated to both filers contain special codes on screen.

Do NOT send a copy of notice or letter in all cases. If a joint account is changed because of an adjustment, notify both taxpayers'.

Command Code SPARQ displays most current name and address information found on National Account Profile (NAP) for both primary and secondary SSNs. Refer to IDRS Terminal Response Handbook for instructions on how to use Command Code SPARQ to research addresses manually, and the Command Code Job Aid on SERP under the IRM Supplements tab.

Refer to IRM 21.5.2.4.22.1, IMF Blocking Series 99 Special Consideration, for instructions on processing of ex-spouse accounts.

Telephone calls are routed from various locations outside taxpayer's jurisdiction using Universal IDRS. Letters automatically generated from Integrated Customer Communications Environment (ICCE) use address of taxpayer's jurisdiction regardless of where call is received.

Manually input letters which cannot be generated systemically.

If ICCE call receipt site is different from letter generation site, you will not be able to perform on-line letter review at either location.

Letter generation sites must perform periodic cursory review of letters and check for garbled copy on affected letters.

On a daily basis, associate replies to manually prepared and IDRS-generated correspondence with suspense file in accordance with procedures in this section.

Associate all correspondence with suspense copy on file. This includes amended or corrected returns and schedules received by Correspondence function in reply to an inquiry. Attach a Form 5706, Case History Sheet, or leave a CIS note providing an efficient, uniform means of ready, responsive control to facilitate supervisory review and reporting. If you need to transfer a case to a new employee before completion, explanation will require less time.

After association, route file:

Process replies to CPs and inquiry letters according to instructions in this section relating to specific CP or inquiry letter involved. When letter replies to an inquiry of another office, route response to appropriate office.

When campus receives replies with remittances, prepare Form 3244, Payment Posting Voucher, entering secondary (TC)570 if payment is for an amount to be assessed.

Purge cases held in suspense pending taxpayer response to Service correspondence 10 days after suspense period ends. Suspense period is the time taxpayer was allowed to answer. The 10-day purge date can vary per IRM 3.13.62, Media Transport and Control.

Loose schedules are those that have inadvertently been detached from, or that cannot be associated with, a return. These also include schedules received from taxpayers' without sufficient information to indicate why they have been sent or to allow them to be associated with proper return.

Upon receipt of a loose schedule (except for loose EP Schedules, Employment Schedules, and Form 851, Affiliations Schedule), do one of the following:

For loose EP schedules, refer to IRM 3.10.72, Extracting, Sorting, and Numbering.

For loose Employment schedules, refer to IRM 21.7.2.4.11.7 , Loose Employment Schedules.

If a loose Form 851 is received, research for the original return, then follow procedures below: