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Part 5. Collecting Process

Chapter 18. Liability Determination

Section 1. Automated Substitute for Return (ASFR) Program (Cont. 3)

5.18.1  Automated Substitute for Return (ASFR) Program (Cont. 3)

5.18.1.8 
Validation During ASFR Processing

5.18.1.8.3 
ASFR Lists

5.18.1.8.3.11  (10-01-2005)
ASFR-433 LIST: Status XXX CHECKLIST

  1. This list is printed only at management’s request. The option for printing this list is available on the manger’s menu.

  2. The program for producing this list asks for the input of the status code that is desired and the number of entities desired.

  3. The program runs in real-time, meaning the program will work for a few minutes to find the modules and format them for printing, then will immediately print the results on the local printer.

  4. The printed list will show the highest priority 1,000 entities (TINs) in Status 031; for each TIN, the program will show the requested modules from Status 031, along with all other modules for this taxpayer (including current Status and follow-up date for each module).

5.18.1.8.3.12  (10-01-2005)
ASFR 434 LIST: LISTING OF MODULES BY RECEIPT CYCLE

  1. This is a real-time list produced by management request from the manager’s menu.

  2. The program that produces this list will ask for the desired " Establish" cycle-the cycle that the module was created on ASFR. When the cycle is entered, the program will find all modules that arrived on ASFR in the stated cycle and will print them on the list.

  3. The list may be useful for diagnosing problems or gathering statistical information.

5.18.1.8.3.13  (10-01-2005)
ASFR 435 LIST: LISTING OF MODULES BY ASFR STATUS CODES

  1. This is a real-time request from the manager’s menu.

  2. When requested, ASFR will print a listing of all modules in that campus' inventory.

5.18.1.8.4  (10-01-2005)
ASFR Prints Statuses and Letter Requests

  1. The ASFR 9XX status codes represent the issuance of miscellaneous letters, ASFR print requests, an ASFR account address update, and correspondence received subsequent to the issuance of a 90-Day Letter. 9XX statuses do not change the follow-up date of the prior status of a module; they act as history codes on the Tax Module screen. Statuses 9XX will not interrupt normal ASFR module progression.

  2. The ASFR letters may be substituted with the appropriate " C" letter or ASFR Quick Note or Quick Note.

  3. Use Option 10 to input all Status 9XX request, except Status 950 and 990. Use Option 1 to update a module to Status 950. Use Option 13 to change the address. See IRM 5.18.1.7.13.

5.18.1.8.4.1  (10-01-2005)
Status 900: PRINT, TDI Account History

  1. Status 900 prints the information shown on the History screen of a module, including the literal translations on the statuses. See IRM 5.18.1.7.12.The print also provides additional module information..

5.18.1.8.4.2  (10-01-2005)
Status 902: PRINT, All Case Minors

  1. Status 902 prints a copy of all case minors, including minors NOT included when calculating the tax on the tax calculation summary.

5.18.1.8.4.3  (10-01-2005)
Status 903: PRINT, Case Major

  1. Status 903 prints the case major.

5.18.1.8.4.4  (10-01-2005)
Status 904: PRINT, 30-Day Cover Letter, Page 1

  1. Status 904 prints Letter 2566 SC/CG, the cover letter sent to taxpayer as part of 30-Day Letter.

5.18.1.8.4.5  (10-01-2005)
Status 905: PRINT, Exam Report, Pages 1 and 2

  1. Status 905 reproduces pages 2 and 3 of the 30–day letter.

  2. Page 2 is the proposed Tax Calculation Summary.

  3. Page 3 is the explanation of penalties and interest of the proposed Tax Calculation Summary.

5.18.1.8.4.6  (10-01-2005)
Status 906: PRINT, Audit Report, Consent Page

  1. Status 906 produces page 4 is the taxpayer consent form of the proposed Tax Calculation Summary.

5.18.1.8.4.7  (10-01-2005)
Status 907: PRINT, Taxpayer Copy of Case Minors

  1. Status 907 recreates the set of case minors issued to taxpayer in the 30-Day Letter.

  2. Status 907 does NOT show case minors coded for nonuse in the assessment process.

5.18.1.8.4.8  (10-01-2005)
Status 908: PRINT, Copy of Stat Notice

  1. Status 908 reproduces pages 1 and 2 of the 90–day letter (Letter 3219 and Form 5564).

  2. Use other print commands (904, 905, 907) to reproduce other parts of 90–day letter.

5.18.1.8.4.9  (10-01-2005)
Status 911: LETTER, Taxpayer Reply Acknowledged

  1. Status 911 requests a 2320C generate from the Correspondex system. Letter 2629C is an interim acknowledgement letter systemically generated when a module is updated to Status 051. The letter can be manually issued by updating the Status on ASFR to 911, or through IDRS using CC LETER. See SERP, Forms

5.18.1.8.4.10  (10-01-2005)
Status 915: LETTER, Possible Refund Due if Return Filed

  1. Status 915 requests a 2469C generate from the Correspondex system. Letter 2469C informs taxpayer a refund may be due if return is filed within three years of original due date. Generally, this letter is issued systemically during new module analysis, although it can be manually issued at any point in module processing. The letter can be manually issued by updating the Status on ASFR to 915, or through IDRS using CC LETER.

5.18.1.8.4.11  (10-01-2005)
Status 916: LETTER, Refund Hold

  1. Status 916 requests ar 2825C generate from the Correspondex system. Letter 2825C informs taxpayer that refund from current year return is being held because there are unfiled returns. The 2825C is systemically generated when the refund hold indicator is turned on. The letter can be manually issued by updating the Status on ASFR to 916, or through IDRS using CC LETER.

5.18.1.8.4.12  (10-01-2005)
Status 950: STAT NOTICE, Taxpayer Unagreed/Not Accepted

  1. Status 950 is used when correspondence is received and the module in 90-Day Letter, Status 090. Update to Status 950 using Option 2.

  2. 950 does not change the 090 follow-up date, i.e. the module will move into 104 when the Status 090 follow-up date expires.

5.18.1.8.4.13  (10-01-2005)
Status 970 :PRINT 6020b Certification

  1. Status 970 generates the 6020b Certification, Form 13496. The 6020b Certification is required to be included with all administrative files on petitioned cases sent to Appeals and Counsel. The 6020b Certification is also included in every default assessment source document. See IRM 5.18.1.10.2.1.4.

5.18.1.8.4.14  (10-01-2005)
Status 990: Address Change

  1. Status 990 generates whenever the entity section of a Tax Module screen on ASFR is updated. Status 990 serves as a permanent record of the change, the date of change, and the number of employee inputting change. However, Status Access Option 13 on ASFR to change entity information.

5.18.1.8.5  (10-01-2005)
Special Refund Hold Statuses

  1. Status 416 and 417 are Refund Hold Statuses. Statuses 416 and 417 do not change the follow-up date of the prior status of a module; they act as history codes on the Tax Module screen. Statuses 416 and 417 will not interrupt normal ASFR module progression.

    Note:

    Only the Refund Hold Coordinator should updates modules to Status 416 and 417.

5.18.1.8.5.1  (10-01-2005)
Status 416: Reversal of Refund Hold

  1. Status 416 indicates that the module was a refund hold module, but the module no longer is a refund hold module.

5.18.1.8.5.2  (10-01-2005)
Status 417: Manual Set of Refund Hold Indicator

  1. Status 417 is a manual set of the "REFUND HOLD" indicator on ASFR.

5.18.1.9  (10-01-2005)
ASFR Reports

  1. ASFR reports provide data on modules in inventory. ASFR 20X Reports are used to report on ASFR nationally. They should also be used by management to ensure that workplan goals will be realized and to determine if there are any processing issues. These are management reports, and should only be used by management, analysts and functional coordinators.

5.18.1.9.1  (10-01-2005)
ASFR 200 REPORT: WEEKLY MIS REPORT

  1. ASFR generates the ASFR 200 Report when weekly processing is completed. The list shows ASFR's receipts, closings and ending inventory. Include only TDI closures as workplan closures. Do not count transfers to ACS or the field as closures.

  2. Parts I and II provide quick overviews of ASFR's Status and points out key areas of achievement or potential problems.

  3. Part Ill, CLOSURE DETAILS, is a count of modules moved into Status 109 during the past week, and their prior Status. It is the source of ASFR workplan closures.

  4. Part IV, WORKABLE INVENTORY, is a count of modules in UNSTARTED Status codes, STARTED Status codes, and FAILED IDRS CHECKS.

  5. Part IV, NON-WORKABLE INVENTORY, is a count of modules in statuses that the system cannot process.

  6. Part VI, PRE-CLOSURE INVENTORY, provides details about modules in Statuses which, when worked, provide closures from ASFR. Modules in these categories eventually move to Status 109 and to PART Ill where ASFR provides actual closing credit.

  7. Part VII, POST-CLOSURE INVENTORY, provides details about modules in statuses that have dropped off the data base during that week's processing.

5.18.1.9.2  (10-01-2005)
ASFR 201 REPORT: INVENTORY BY PRIORITY REPORT

  1. ASFR generates the ASFR 201 Report when weekly processing is completed. This report shows the volumes of modules in the priority 0 through 9 in all status codes.

    ASFR Priority Chart
    05/29/2007
    Select Code Literal Priority
    Any Refund Hold 0
    Any FERDIs, K-1 income, cases with TDAs, and multiple module cases 1
    Any potential balance due of greater than 1,000,000 2
    Any potential balance due of 500,000 to 1,000,000 3
    Any potential balance due of 100,000 to 499,999 4
    Any potential balance due of 50,000 to 99,999 5
    Any potential balance due of 10,000 to 49,999 6
    Any potential balance due of 1,500 to 9,999 7
    Any potential balance due of 1 to 1,499 8
    Any Terminated cases (failed ASFR criteria) 9

  2. Management should review the ASFR 201 Report weekly to ensure that certain statuses that require manual intervention are being worked, and to ensure that only current viable statuses are being used.

5.18.1.9.3  (10-01-2005)
ASFR 203 REPORT: 30-DAY LETTER PROGRAM REPORT—COLLECTION

  1. ASFR generates the ASFR 203 Report when weekly processing is completed. This list shows the volume of modules that were sent for TIF check 1 during that week's processing, the volume of audit reports generated, and the volume of modules that moved into certain statuses.

5.18.1.9.4  (10-01-2005)
ASFR 204 REPORT: IDRS RESEARCH SUMMARY REPORT

  1. ASFR generates the ASFR 204 Report when weekly processing is completed. This list shows the results of the TIF checks on modules sent the prior week , and the volume of modules sent for TIF checks the current week.

  2. The count from page 3 of this report should match the " Total records sent for research" from prior week’s report.

    If Then
    Page 2 report " TOTAL records sent for research" for week 1 equals 15,544 Next week the number of "Total records processed" on page 2 should show 15,544.

  3. Management should analyze this report for unusual data. It is possible to discover processing problems. Notify HQ if any processing problems are discovered.

    Example:

    If Then
    A great volume of modules for failed a TIF check or no analysis performed, Management should try to determine the reason, and contact HQ for resolution.

5.18.1.9.5  (10-01-2005)
ASFR 211 REPORT: STATUS CODES IN USE

  1. This report is generated by the ASFR system at the request of a manager. It lists all status codes currently in use, along with the literal meaning of the status code and the follow-up date value that the system uses each time that Status code is entered on an module.

5.18.1.9.6  (10-01-2005)
ASFR 213 REPORT: IDRS TRANSACTION REPORT

  1. ASFR generates the ASFR 213 Report when weekly processing is completed. The ASFR 213 report provides a weekly volume of TC 29X, TC 49X, and TC 59X transmitted to IDRS.

5.18.1.10  (10-01-2005)
Taxpayer Responses

  1. Taxpayer responses include telephone inquiries, filed returns and written correspondence. The response may be in response to a 30-Day Letter, 90-Day Letter, or a default assessment.

5.18.1.10.1  (10-01-2005)
Taxpayer Telephone Inquiries

  1. When responding to telephone inquiries, disclose no tax return information until reasonably certain the person making the inquiry is the taxpayer or his/her authorized representative. For complete disclosure information, see IRM 21.1.3.2, General Disclosure Guidelines. See example below of dialog that includes appropriate authentication procedures:

    1. "Internal Revenue Service. Mrs./Mr./Ms. speaking. My identification number is XX-XXXX. How may I help you?"

    2. "May I have your name, Social Security Number and the tax year in question?"

    3. "In order to protect your privacy, I must ask you the following questions" :

      • "May I have your complete mailing address including city, state and zip code?"

      • "May I have your date of birth?"

      1. "How may I assist you today?"

  2. During conversation, request if necessary, based on module or account information posted to IDRS:

    • Type and Date of Notice Received

    • Amount of adjustments, refund, payment, or return

  3. Always verify the telephone number(s) posted to ENMOD with the taxpayer. Update, and/or delete telephone number(s) as appropriate using CCs: TELEC,or TELED. If no telephone number is posted to ENMOD, request the telephone phone form the taxpayer. Add secured telephone number(s) using CC: TELEA.

  4. During the telephone contact:

    If Then
    The caller cannot verify that he or she is the taxpayer, Tell the caller to call back with the necessary information.
    The caller says he or she cannot obtain the information, Tell the caller an IRS written reply will be mailed to taxpayer’s address of record.
    The taxpayer gives oral authorization for a Tax Examiner to speak to a third party, and the requirements for oral authorization are met,

    Note:

    Follow guidelines in IRM 11.3.3.2.1, Requirements for oral authorization.

    		Disclose return information limited to the information covered in the verbal consent, where the disclosure will help resolve the tax issue.

    1. Record an Oral Disclosure Consent on IDRS, using CC ACTON to input history items on each tax module (TXMOD) that the taxpayer gave authorization to. Input "ORALDISCLO" , followed by a second history item with the first, last name, and the telephone number of the party who the taxpayer gave oral authority to.

    Note:

    Oral authorization is not considered a third party contact per IRM 5.18.1.10.2.3.11.

    Note:

    Do not confuse Oral Authority with Power of Attorney. Parties with Oral Authority cannot represent the taxpayer or enter into agreements on behalf of the taxpayer.

    Note:

    Information may always be accepted from third parties. However, no information may be disclosed without the proper authority.

5.18.1.10.1.1  (01-25-2008)
Typical Telephone Inquiries

  1. The following is a list of routine telephone inquiries, and guidelines on how to respond.

    INQUIRY RESPONSE
    Need Income information Send IRP including spousal information if authority is granted by spouse
    Need More Time to File If 90-Day Letter has not been issued, allow additional time. Only allow additional time up to the current ASFR 30-day follow up date. If 90-day has been issued, grant no extension. Explain to the taxpayer that an extension cannot be granted once the 90-day has been issued.
    Filed jointly with spouse Research IDRS for fact of filing. If joint return was filed, close case per 5.18.1.10.2.3.7(2). See IRM 5.18.1.10.2.3.13.2.. If return was not filed, request a signed copy be faxed or mailed to the appropriate ASFR address. See transshipment procedures for all ASFR addresses. See IRM 5.18.1.10.2.1.5. See IRM 5.18.1.10.2.1.6.
    Doesn't understand the 90-Day Letter Explain that the 90-Day Letter is the legal requirement for assessment of tax when a taxpayer fails to file a return. Tell the taxpayer that if they are planning on filing a return and/or if they have no issues they want heard by the Court, they should file a return or submit an explanation as to why they are not required to file to the appropriate ASFR site. However, also explain that filing with the Service does not extend the period for petitioning. They may ask if they should petition to protect their rights. Do not advise the taxpayer on whether to petition or not. Educate them on the choices available. Tell them that if they petition, the ASFR function will no longer handle the case and we will not be able to answer any of their questions. If the taxpayer has petitioned and calls, research the Appeals Customer Service and Outreach Officers posted on SERP for the correct Appeals contact and number.

  2. Make every attempt to input information given by the taxpayer to IDRS, ASFR or DI, while you have the taxpayer on the phone. This will ensure that all required information is secured and updated. Explain to the taxpayer that you are updating their account and it may take a few moments. Inquire if they mind holding on while you input. If the taxpayer does not want to stay on the line, do not put them on hold.

5.18.1.10.1.2  (10-01-2005)
Third-Party Calls

  1. IRM 11.3.3.2.1 lists the requirements for oral authorization. A taxpayer may give verbal consent to disclose return information to parties assisting the taxpayer in a federal tax matter.

5.18.1.10.2  (10-01-2005)
Taxpayer Responses, Returns and Correspondence

  1. Process all taxpayer responses according to the following instructions.

5.18.1.10.2.1  (10-01-2005)
Clerical Screening of Taxpayer Responses (Incoming Mail)

  1. Before assigning a response to a tax examiner, the response must be researched and properly updated. Follow the guidelines below upon receipt of a response.

  2. Upon receipt, all incoming mail must be counted and date stamped.

  3. Sort mail into ASFR, unidentifiable and ASFR Reconsiderations. Sorting does not include any screening of IDRS or ASFR.

    • ASFR Mail is mail that can be visually identified as a response to an open ASFR module. Look for attached ASFR correspondence or any other indication that the module is still open on ASFR.

    • Unidentifiable Mail is mail that by visually scanning, cannot be identified as either an ASFR or ASFR Reconsideration response.

    • ASFR Reconsideration Mail is mail that can be visually identified as an ASFR Reconsideration. Look for attached ASFR correspondence with old dates, an attached CP36Z, a Form 3870, the year of the return or any other indication to help determine if the response is a Reconsideration.

    Follow 5.18.1.10.2.1.1 for ASFR and unidentifiable mail. And follow 5.18.1.3.10.2.1.2 for ASFR Reconsiderations. See IRM 5.18.1.10.2.1.1. See IRM 5.18.1.10.2.1.2.

  4. Each Campus is required to establish clerical procedures that ensure that all ASFR taxpayer responses are updated to ASFR and/or IDRS as soon as identified. All ASFR responses must be controlled to IDRS with the earliest IRS received date.

  5. Each Campus must establish a inventory control system that ensures the oldest responses are worked first, and that IRM 3.30.123 Guidelines are met.

5.18.1.10.2.1.1  (01-25-2008)
Clerical Screening of ASFR and Unidentifiable Mail

  1. Research all TINs on ASFR, both primary and secondary, found on any submitted return or correspondence and on any IRS correspondence attached.

  2. If any TIN is on ASFR, go to (3) below. If not, follow 5.18.1.10.2.1.2 (Clerical Procedures for Screening Reconsiderations) See IRM 5.18.1.10.2.1.2.

  3. When taxpayer correspondence is received, update the module to Status 051, if a 90-Day Letter has not been issued. Update the module to 950, if a 90-Day Letter has been issued. If the module is already in a response Status, research IDRS for the employee control and route response to the employee working the module per local guidelines.

  4. 4. When a return is received, and a 30-day letter has not been issued, update the module to status 061 if the account is for the primary taxpayer. Update status 061 accounts to status 109. If the account is for the secondary taxpayer, update to status 073. Do not update to status 109 after updating to 073. After update to ASFR, forward returns where no 30-day letters have been issued to the TDI or Receipt and Control function for processing through pipeline, as applicable.

  5. When a return is received, and a 30-day or 90-day letter has been issued, update module to Status 093. If the module is already in a response status, research IDRS for the employee control and route return to the employee working the module per local guidelines.

    Note:

    DO NOT UPDATE ANY MODULE TO STATUS 093, 051 or 950, WHEN THE CURRENT STATUS IS A CLOSURE STATUS, i.e. 10X, BRING CASE TO LEAD OR MANAGER

  6. Research ASFR for Paper Indicators. If found, retrieve any backup associated with the module.

  7. Attach ASFR prints to taxpayer responses per local guidelines.

5.18.1.10.2.1.1.1  (01-25-2008)
Refund Hold Responses

  1. If a response is received on a module with "REFUND HOLD " flashing on the Tax Module Screen, expedite processing of the return.

  2. Refund Hold returns should be worked within 3 days of receipt.

5.18.1.10.2.1.2  (01-25-2008)
Clerical Procedures for Screening Reconsiderations and Unidentifiable Receipts

  1. All ASFR Reconsiderations, and Unidentifiable receipts that are not on the ASFR system, must be researched on IDRS.

  2. To determine if the return or correspondence received is an ASFR Reconsideration, research IDRS for the following transaction codes. All must be present if the response is an ASFR Reconsideration.

    • TC Dummy150

    • TC 494

    • TC 495

    • TC 290 (tax assessment)

    • TC 599 CC 88

    IF Then
    The return is an amended return, there is a previously posted TC 29X and/or a TC 599 89, and the tax on the return does not match the tax posted to IDRS,

    Caution:

    Verify that the ASED is not expired or imminent. If expired or imminent , bring return immediately to manager or Statute Coordinator.

    		Route the return to the Adjustment Operation
    There is TC 300, 301, 420, TC 595, or a -L freeze is posted to IDRS, Route the return to the appropriate Exam Function.
    The return received is a true duplicate (the TXI, AGI, TAX and all other reference numbers posted to IDRS match the return) If numbered, give to manager or lead for input of a TC 290 for .00. If not numbered, CW.

    Note:

    Ensure that there is not correspondence attached to the return that needs to be addressed.

    The TC 150 is not an ASFR dummy return, (Note: If a joint return is received, this must apply to both TINs.) Route case to the Adjustment Operation.
    The TC 150 is not an ASFR dummy return and a TC 922 is posted to the module, Route return to the AUR Operation

  3. Collection and Enforcement must be suspended upon receipt of an ASFR Reconsideration. Input a TC 470 no closing code on all ASFR Reconsideration returns.

  4. Anytime a case or correspondence is routed out of the unit, input a history item on IDRS or DI and prepare a Form 3210 with acknowledgement copy filed.

  5. Commonly Used Transaction codes (see Document 6209 for a comprehensive list)

    • TC 140 - TDI Notice

    • TC 150 - Tax Return- An ASFR dummy can be identified by a XX210XXX DLN with the literal SFR to the right of the DLN on TXMODA. All other TC 150s posted to IDRS are actual returns.

    • TC 166 - Delinquent Penalty -

    • TC 170 - Estimated Tax Penalty

    • TC 171 - Abatement of Estimated Tax Penalty

    • TC 196 - Assessed Interest

    • TC 276 -Assessed Failure to Pay Tax Penalty

    • TC 290 - Additional tax assessment

    • TC 291 - Abatement of tax

    • TC 300 - Additional tax assessed by Exam

    • TC 301 - Abatement of exam assessed tax

    • TC 420 - Examination Indicator

    • TC 421 - Reversal of TC 420

    • TC 460 - Extension to file given

    • TC 494 - 90-Day letter issued

    • TC 495 - Reversal of TC 494

    • TC 570 - Freezes credit on a tax module

    • TC 582 - Tax Lien Indicator

    • TC 590 - Taxpayer not liable to file a return for the tax period

    • TC 591 - Taxpayer is not liable to file return for the tax period and subsequent periods

    • TC 592 - reverses any TC 59X on the module

    • TC 593 - Unable to locate taxpayer

    • TC 599 - Return secured

    • TC 610 - Payment received with return

    • TC 670 - Payments

    • TC 710 - Credit Elect

    • TC 806 - Withholding tax and/or Excess FICA

    • TC 960 - Power-of-attorney

    • TC 971 - Posted miscellaneous transaction

    • TC 976 - Posted duplicate return

    • TC 977 - Amended return posted

  6. If the response is not an ASFR Reconsideration, IDRS research must be performed to determine where to route the response:

    IF THEN
    Correspondence requests abatement or waiver of penalties, Route to the Adjustment Operation.
    If taxpayer can't pay, won't pay, wants to pay or is requesting an installment agreement, Route to CSCO Balance Due.
    If the correspondence is in reference to backup withholding or- C or CP 531, 538, or 545 Route per IRM 5.19.2.6.4.4
    If correspondence is in reference to a bankruptcy, TC 520, or -V freeze, Route to CSCO Balance Due.
    If correspondence is in reference to a Z freeze, Route to Criminal Investigation Branch using Form 3210.
    If correspondence indicates that the taxpayer is a frivolous filer, See IRM 5.18.1.10.2.3.13.10. Route to FRP, 1973 N. Rulon White Road, Ogden, Utah 84201, ATTN: Mail Stop 4450. WI route to FRP

5.18.1.10.2.1.3  (10-01-2005)
Correspondence Attached to Returns

  1. If correspondence attached to the return is not related to the return, nor any other ASFR issue, route the correspondence to the appropriate area.

  2. If the taxpayer is requesting an installment agreement, route the request to CSCO per local procedures.

  3. If there is a Form 2848 attached. Route original to CAF. Keep photocopy of Form 2848 with case.

5.18.1.10.2.1.4  (10-01-2005)
Civil Appeal Rights Cases and Cases Docketed in U.S. Tax Court

  1. If in response to a 90–day letter, a taxpayer petitions the Tax Court, the case must be adjudicated by the Court. ASFR processing must not continue. In order to identify taxpayers who have petitioned the Court, the Office of Chief Counsel generates Docket Lists.

  2. Campuses receive Docket Lists electronically via E-mail. Any transmission of these listings must be sent secured. The docket lists contain the following:

    • Docket Number

    • Name and address of petitioner (taxpayer)

    • TIN (Taxpayer Identification Number)

    • Tax year

    • Name of office issuing notice of deficiency

    • Date of notice of deficiency

  3. Each docketed case must be reviewed to determine if the 90–day letter was issued by ASFR. Each Campus is responsible for all petitioned cases that reside in their inventory. Actions must be taken within 5 days of receipt of the docket list. If the 90–day was issued by ASFR, follow the steps below:

    1. Manually update the module to Status 074 on ASFR.

    2. Prepare an Administrative File. This file must include the following ASFR prints, 902, 903, 904, 905, 906, 908 and 970, all associated backup, i.e. taxpayer responses or returns, and a current TXMODA print. Ensure that all prints are legible.

      Note:

      Print 970 is the ASFR version of Form 13496. Form 13496 ensures that FTP penalties on SFRs are sustained on petitioned cases. See IRM 20.1.2.1.4 (9) for additional information on Form 13496.

    3. Prepare Form 3210 Document Transmittal and route Administrative File to the appropriate Appeals Office. Use SERP Who/where Tab "Link to Appeals Case Routing" for current Appeal Office addresses and routing instructions.

    4. Input TC 595 CC 88 on IDRS on the petitioned module.

    5. Input a history item on IDRS.

    6. Reverse any TC 494 with a TC 495 on IDRS.

  4. Update ASFR status from Status 074 to 109, when confirmation of receipt of the Administrative File has been received from Appeals, and steps 4 through 6 have posted to IDRS. Appeals will establish an AIMS record after receipt of the administrative file and input TC 520 CC 72.

  5. Maintain suspense file of Administrative Files and Forms 3210 forwarded to Appeals for one year. If a receipt copy (Part 3) has not been received from the Appeals Office to which the file was forwarded, within 10 days from mailing date, contact Appeals to verify receipt of the file. Appeals employees have been instructed to acknowledge and return Form 3210 within five (5) days of receipt.

    Note:

    For docketed cases, contact the assigned Area Counsel immediately for instructions if an ASFR assessment has already been made. Notate on Form 3210 instructions from Counsel regarding the assessment and any action taken.

5.18.1.10.2.1.5  (01-25-2008)
ASFR Transshipment Procedures

  1. Transship responses that reside on the SBSE ASFR database to the Brookhaven Campus. Brookhaven will transship responses that reside on the WI ASFR database to the appropriate WI site. There is no transshipment of responses between the WI ASFR Campuses. When transshipping an ASFR response or return, input comments on ASFR and IDRS or DI.

    Caution:

    Do not transship returns with imminent or expired ASED. Bring returns imminent or expired ASEDs to Statute Coordinator or manager.

    Campus Address
    SBSE- Brookhaven PO Box 9013
    Holtsville, NY 11742-9013
    WI- Austin Austin Compliance Services
    PO Box 149338
    Stop 5501
    Austin, TX. 78714–9338
    WI- Fresno Fresno Compliance Services
    PO Box 24015
    Stop 81404
    Fresno, CA. 93779–4015

  2. Taxpayer responses are to be screened upon receipt, and transshipped to the appropriate site within 3 days of receipt.

  3. Use a Form 3210 to list the SSN, NC and year of all the returns that will be transshipped to the gaining site. Use separate Forms 3210s for each site.

  4. Transship the returns with the Form 3210 attached via UPS to the gaining site.

    Exception:

    For W&I sites, if a response is received and there is an existing paper indicator, indicating that the taxpayer previously responded, contact the W&I site that received the prior response to determine if the backup is needed to properly respond to the taxpayer.

5.18.1.10.2.1.6  (01-25-2008)
ASFR Reconsideration Transshipment Procedures

  1. ASFR Reconsiderations are any return or correspondence received in response to an ASFR default assessment. See IRM 5.18.1.10.2.1.2.

  2. SBSE ASFR Reconsiderations are returns with any of the following Forms or Schedules attached:

    • Schedule C

    • Schedule E

    • Schedule F

    • Form 2106

    • Form 2555

    and/or international returns. All other ASFR Reconsiderations are WI Reconsiderations.

  3. Transship SBSE ASFR Reconsiderations to:
    ASFR Operation BIRSC
    PO Box 9013
    Holtsville, NY 11742–9013

  4. Transship WI ASFR Reconsiderations to:
    Fresno Campus ASFR Unit
    Stop 81404
    PO Box 24015
    Fresno, CA 93779–4015

    Caution:

    Do not transship returns with imminent or expired ASED. Bring returns imminent or expired ASEDs to Statute Coordinator or manager.

  5. Taxpayer responses are to be screened upon receipt, and transshipped to the appropriate site within 3 days of receipt.

  6. Use a Form 3210 to list the SSN, NC and year of all the returns that will be transshipped to the gaining site. Use separate Forms 3210s for each site.

  7. Transship the returns with the Form 3210 attached via UPS to the gaining site.

5.18.1.10.2.2  (10-01-2005)
Undeliverable Mail

  1. Taxpayers have a right to receive information concerning any federal taxes assessed against them. The Service is required to exercise due diligence to find and use taxpayer's correct address.

    Note:

    A taxpayer could challenge an assessment in the appeals process or in the courts if the Service did not attempt to locate taxpayer's correct address.

  2. ASFR Undeliverables are processed through the Address Research (ADR) system. See IRM 5.18.1.7.9.2.ASFR documents research using appropriate Statuses. This ensures the assessment documents contain a complete audit trail. See IRM 5.18.1.7.11.56.

  3. On the ASFR system two files contain taxpayer address information to ensure the 90-Day Letter is always sent to the Master File address. Flexibility exists to also send the letter to alternate addresses found during address research. The two files are:

    1. The 90-day file – can only be updated/changed through a change on Master File.

    2. The identity file – can be updated by anyone using the ASFR system.

  4. There are four types of undeliverables:

    • "U" coded TDIs (delinquency notice returned undelivered)

    • Undelivered 30-Day Letters

    • Undelivered 90-Day Letters

    • Undeliverable correspondex letters

5.18.1.10.2.2.1  (10-01-2005)
ASFR Address Research

  1. During weekly ASFR processing, data on modules in Status 342 is sent to the ADR system for address research.

  2. Module moves to ASFR Status 342 to indicate that ADR research is requested.

  3. When ADR returns a new address:

    1. ASFR Address is updated.

    2. History record is updated with appropriate Status code.

    3. Module is moved to Status 030 with an expired follow-up date or to Status 031.

    Note:

    If mail is returned indicating that the TP is deceased, or any other information is written on the envelope, consider the returned mail correspondence. Follow correspondence procedures. See IRM 5.18.1.10.2.1.1.

5.18.1.10.2.2.2  (01-25-2008)
Undelivered 30-Day Letter

  1. If a 30-day Letter address correction requested envelope is returned:

    If Then
    Undeliverable has yellow label which shows a forwarding address from the U.S. Postal Service (USPS),

    1. Update address on ASFR and IDRS.

    2. Input paper indicator 3 on ASFR. See IRM 5.18.1.7.14.

    3. Update Status to 031.
    The yellow label from USPS shows a new address and a name change,

    1. Perform research using CC ENMOD or IMFOLE to verify the information is the same taxpayer.

    Verification shows it is the same taxpayer,

    1. Update address on ASFR and IDRS.

      Note:

      Only update name change if it is a typo, otherwise, leave name as is.

    2. Input paper indicator 3on ASFR. See IRM 5.18.1.7.14.

    3. Update Status to 031.
    Verification shows it is NOT the same taxpayer or you are unsure,

    1. Move module to Status 040 for ADR research. During weekly ASFR processing, Status 040 cases will be moved to Status 342 to indicate that ADR research is underway.

    2. Input paper indicator 3on ASFR. See IRM 5.18.1.7.14.

    Response from the Post Office does not show a new address and ADR has not been done, Update module to Status 040 to initiate ADR research, cases will be moved systemically to Status 342 to indicate that ADR research is underway.

    1. Input paper indicator 3on ASFR. See IRM 5.18.1.7.14.

       

  2. Destroy the undelivered 30-Day Letter after taking the appropriate actions outlined in item (1) above.

5.18.1.10.2.2.3  (01-25-2008)
Undelivered 90-Day Letter (Statutory Notice of Deficiency)

  1. Statutory notices of deficiency, 90-Day Letters, are sent by certified or registered mail. Modules are in Status 090 on ASFR.

  2. 90-Day Letters returning to the clerical unit marked unclaimed or refused indicates that the taxpayer lives at that address but did not pick up or accept our letter. In the comments section of ASFR screen, input in the comments field that the letter was refused or unclaimed. Input a paper indicator U. See IRM 5.18.1.7.14. Do not CW any returned 90-Day Letter. Do not initiate ADR once a 90-Day Letter has been sent. File and store returned 90–Day Letters per local procedures. Purge filed 90–Day Letters after the default assessments have posted. Input a TC 290 for $.00, blocking series 05 to file 90–Day Letter.

  3. If the statutory notice is undelivered at the Master File address and Post Office does not provide a new address, assess tax at the end of See LEM 5.18.1.10.2.2.3 for number of days in suspense period. ( See LEM 5.18.1.10.2.2.3 for number of days if an international taxpayer (address outside of the U.S.).

  4. If the statutory notice is undelivered and the USPS yellow label provides a new address, update the address on ASFR and IDRS. Input a paper indicator 9 for the undelivered 90-Day. Indicate the undelivered address in the ASFR and DI comments screen. Then update to Status 091 to issue another 90-Day to the new address. If you are unsure the USPS yellow label is for the same taxpayer, perform research using (CC) ENMOD or IMFOLE. If still uncertain, follow procedures in item (3) above.

5.18.1.10.2.2.4  (10-01-2005)
Undeliverable Correspondex Letters

  1. Route to the tax examiner who issued the correspondex letter.

5.18.1.10.2.3  (10-01-2005)
Tax Examiner Procedures for Processing Taxpayer Responses

  1. Process taxpayer responses according to the following guidelines. For SBSE, all actions taken by tax examiners must be recorded on a history sheet. WI must update DI. If additional information is needed to resolve the case, and the information can be given orally, and there is a telephone number available, you must make two telephone attempts. Notate telephone contact on history sheet and/or DI.

5.18.1.10.2.3.1  (10-01-2005)
Taxpayer Advocate Criteria

  1. Taxpayers meeting the Taxpayer Advocate Service (TAS) Program criteria receive priority handling.

  2. Refer to IRM 13.1.7 (Taxpayer Advocate ) for criteria.

  3. If able to resolve and close the Taxpayer Advocate issue on the same day as the taxpayer contact, input history item on IDRS (1 day/CL) and do not refer the inquiry to the Taxpayer Advocate. If not able to resolve, contact Taxpayer Advocate Coordinator.

  4. Refer all other contacts to Taxpayer Advocate Services on Form 911, Application for Taxpayer Assistance Order (TAO).

5.18.1.10.2.3.2  (01-25-2008)
IDRS Control

  1. All taxpayer responses must be controlled and assigned on IDRS using the earliest IRS received date. Responses should be assigned to a TE, batch, team or other unique controlling number.

    Caution:

    Never control a return with an imminent or expired ASED to a tax examiner. Immediately give return with an imminent or expired ASED to the Statute Coordinator. See IRM 5.18.1.10.2.3.15.2.

  2. All actions taken by the TE must be annotated in the Activity section on the control base. A follow-up date on suspended case should also be included in the Activity section on the control base. For WI, DI must also be updated.

5.18.1.10.2.3.3  (10-01-2005)
Suspended Cases

  1. Taxpayer response cases are suspended when taxpayer contact is required to resolve the case. Request that the taxpayer respond within 10 days. Suspend the case for See LEM 5.18.1.10.2.3.3 for number ofdays.

    Exception:

    If using DI to generate an interim letter, the 10 day response period is waived to 30 days.

5.18.1.10.2.3.3.1  (10-01-2005)
Suspended ASFR Cases

  1. If the taxpayer does not respond with the information necessary to close or resolve the case, and ASFR processing should continue, the module must be updated to the proper ASFR status. Per local procedures, update or close the IDRS control. The case file must be maintained and purged when the case is closed. Local management determines where and how refiled ASFR cases are stored and filed. However, taxpayer data must be properly stored and secured.

    If Then
    The module was in Status 030 before the response was received and the 30-day follow-up has not expired,

    • Update ASFR to Status 030 with the correct 30-day follow-up date.

    • Input Paper Indicator. See IRM 5.18.1.7.14.

    The module was in Status 030 before the response was received and the 30-day follow-up has expired,

    • Update ASFR to Status 091.

    • Input Paper Indicator. See IRM 5.18.1.7.14.

    the module was in Status 090 before the response was received and the 90-day follow-up date has not expired,

    • Update ASFR to Status 090 with the correct 90-Day Letter date.

    • Input Paper Indicator. See IRM 5.18.1.7.14.

    The module was in Status 090 before the response was received and the 90-day follow-up has expired,

    • Update ASFR to Status 104.

    • Input Paper Indicator. See IRM 5.18.1.7.14.

5.18.1.10.2.3.4  (01-25-2008)
Case Files

  1. Local management can determine how cases should be kept and filed. However, a filing system must be established to ensure that the earliest received cases are worked first. Management must also ensure that case files are purged when the module is closed on ASFR. And all security and disclosure procedures must be adhered to.

  2. For SBSE, a history sheet must be contained in each case file. If DI is used, a history entry delineating the actions, and the date of each action taken, should be input to document case history.

5.18.1.10.2.3.5  (01-25-2008)
Capturing Telephone Number Information

  1. If the taxpayer provides a telephone number when he/she corresponds, update ENMOD with the number using CC TELEA, TELEC, or TELED as needed.

  2. When a call is received from a taxpayer, attempt to secure, or verify the telephone number. Update ENMOD with the taxpayer's telephone number using CC TELEA, TELEC, or TELED as needed.

    Note:

    Input the taxpayer's telephone number in the "Home Tel" or "Work Tele" field on ASFR using the "Screen Change" option (#9).

5.18.1.10.2.3.6  (10-01-2005)
Updating Entity

  1. If the taxpayer supplies a new address orally, in written correspondence, or on a return, update IDRS with the new address. Use CC ENMOD, ENREQ, and INCHG. (See IRM 3.13.5.11 for additional procedures.) Update ASFR with new address unless updating ASFR to a closure status and no further correspondence will be generated from ASFR.

  2. The taxpayer's filing status must be input when completing the adjustment from the taxpayer's original return if the filing status is different than the filing status posted to TXMOD.


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