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Part 4. Examining Process

Chapter 4. AIMS Processing

Section 5. Closings to Appeals

4.4.5  Closings to Appeals

4.4.5.1  (02-08-1999)
Overview

  1. This chapter provides instruction on closing various types of cases to the Appeals function.

4.4.5.2  (02-08-1999)
Form 5344

  1. Form 5344 is prepared in the normal manner and closed through the terminal except nothing is forwarded to the Campus in the source document folder. The original F5344 is retained in the case file.

  2. See the Examined Closings Chapter for instructions on the completion of the F5344.

  3. The terminal will accept closings to Appeals even though a partial assessment has been made and assessment verification is still pending on AIMS.

4.4.5.3  (03-01-2003)
Docketed Cases

  1. See IRM 4.14.1, STATUTORY NOTICES OF DEFICIENCY.

4.4.5.4  (07-11-2005)
Non-Docketed Cases

  1. For 30-day letters, if the taxpayer submits a written protest (and the case file and protest have been accepted by Technical Services Staff) and/or requests Appeals consideration, the case file and written protest will be transferred to the local Appeals Office. If only one protest is received, the entire case file, including the duplicate original preliminary notice of which no response was received, will be transmitted to Appeals.

  2. Taxpayer’s requests for Appeals consideration will be acknowledged at the Examination group level via Form Letter 2280. The case file will be identified as an "Appeals Case/Priority Case" . The Exam field group secretary will update ERCS to status 21, In-Transit to Technical Services, and forward the case file to the local Technical Services office for closure to Appeals. The group will document the case file as to the date the case was forwarded to Technical Services and the date the Letter 2280 was sent to the taxpayer. Technical Services will be responsible for forwarding cases directly to Appeals within 10 calendar days of receipt via Form 3210.

4.4.5.5  (02-08-1999)
Copies of Returns

  1. A copy of a return, RTVUE, BRTVU or MACS print can be used when closing non-docketed cases to Appeals. All docketed cases and some non-docketed cases must contain the original return as the Tax Court requires "exactly what the taxpayer filed" . If the case is ready for closing to Appeals and the original return has not been received, the examination will be closed based on the taxpayer’s retained copy. When the original return is received, it must be forwarded for association with the case file.

4.4.5.5.1  (02-08-1999)
Docketed Cases

  1. The following steps are required on docketed cases:

    1. A transcript of account must be attached to the duplicate copy of the return. If there is any difference between the tax shown on the retained copy and the transcript, the difference must be reconciled on a workpaper attached to the transcript.

    2. The examiner is required to initiate a request for the original return. A CC ESTAB/ELFREQprint requesting the original return must be in the case file. If the original is not obtainable, certified transcript along with the copy is required.

4.4.5.5.2  (02-08-1999)
Non-Docketed Cases

  1. Appeals will accept copies except in the following cases:

    1. For unagreed civil fraud, jeopardy assessments, Joint Committee cases, or when a delinquency penalty is the issue, follow the same procedures as for docketed cases.

4.4.5.6  (02-08-1999)
Skeletal Records

  1. When a case is urgently needed by Appeals but the account is not yet a full record on AIMS:

    1. Place an CC AM424 or AMDIS print in the case file to indicate that an opening was requested.

    2. Monitor until the full account is established on AIMS, then forward a print of CC AMCLSE or AMDISA to the Appeals Office to which the case was closed.

    3. If the appropriate AIMS print is not received timely, Appeals will initiate follow-up action or may return the file to the processing function.

4.4.5.7  (02-08-1999)
NMF Returns

  1. NMF returns closed to Appeals are processed in the same manner as Master File cases.

4.4.5.8  (02-08-1999)
Closing Related Cases to Appeals

  1. Following are procedures that must be followed when sending agreed or no-change returns to Appeals because they are related to unagreed cases being closed to Appeals.

    1. Close the agreed or no-changed return off of AIMS (Status Code 90) using the same procedures as any regular closure.

    2. Do not send the return to the Campus in the source document folder. Instead, put a completed Form 2275, Records Request, Charge and Recharge, in the source document folder recharging the return to Appeals. Attach a copy of the Form 2275 to the face of the return and send to Appeals. This will alert the Appeals Office that the account has been closed and examination action processed.

  2. The above procedures result in the normal closing off of AIMS (Status Code 90) and posting to Master File. When these returns have served their purpose in Appeals, they will be sent to the Campus for re-filing under the new control DLN that was generated when Examination input the closure.

4.4.5.9  (02-08-1999)
Unagreed But No Tax Consequence (Taxable Returns Only)

  1. In some instances, such as a loss year return, the examination results in an adjustment to income but no tax. When closing these unagreed returns to Appeals;

    1. Use the appropriate disposal code (07 or 11),

    2. Since there is no tax consequence, enter $1 in Item 18. Usually the previous or subsequent tax periods (carry-back/carry-forward) are also being closed to Appeals and they will contain the amount of the unagreed tax adjustment. If a carry-forward return has not been filed yet, but the taxpayer is appealing the adjustment to the loss year, the examination results will be $1.

4.4.5.10  (03-01-2003)
Overassessments

  1. Complete Form 5344 in the normal manner, with the following exceptions:

    1. make no entries in Items 12 or 15

    2. enter Disposal Code 12 in Item 13

    3. enter the non-docketed Appeals Office Code in Item 16

    4. enter $1 in Item 18

  2. Number in the appropriate blocking series.

  3. Appeals will subsequently close these as examined cases, processing the overassessment on Form 5403, Appeals Closing Record.

4.4.5.11  (07-11-2005)
Closing Cases to Other Appeals Offices

  1. Occasionally a taxpayer requests their case be forwarded to an Appeals office that is not your regular designated Appeals office. The Appeals web site contains a "Case Routing By State" guide to help you determine where to forward the case. The web site can be found at http://appeals.web.irs.gov/APS/caserouting.htm

4.4.5.11.1  (07-11-2005)
LMSB, International, Campus Cases

  1. LMSB cases, International (PBC 215) cases, and EGC 5XXX cases that become docketed may be closed directly to the Appeals Office that has jurisdiction over the docketed case.

4.4.5.12  (03-01-2003)
Forward Case File to Appeals

  1. The AIMS labels must remain in the case file going to Appeals.

  2. See the Case Assembly Exhibit.

  3. Attach print of CC AMCLSE or AMDISA and original F5344.

  4. All cases referred to Appeals will be sent (hand-carried, if possible) to the Appeals Office within ten (10) calendar days, via a Form 3210.

    1. At the end of each month, the tickler file of Forms 3210 will be checked and follow-up action taken on any for which Part 4 has been outstanding for 30 days or longer to determine whether the cases were received by Appeals or why Part 4 was not returned.

    2. When the Appeals Acknowledgment copy is received from Appeals, destroy the suspensed copy and replace it with the Appeals Acknowledgment copy. The Appeals Acknowledgment copy, will be kept for one year from date of receipt.

  5. Do not send a source document folder to the Campus. Retain the original F5344 in the case file.


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