Accessibility Skip to Top Navigation Skip to Main Content Home  |  Change Text Size  |  Contact IRS  |  About IRS  |  Site Map  |  Español  |  Help  

Part 4. Examining Process

Chapter 4. AIMS Processing

Section 9. Delinquent and Substitute for Return Processing (Cont. 1)

4.4.9  Delinquent and Substitute for Return Processing (Cont. 1)

4.4.9.5 
Delinquent Return Secured - No TC 150 Posted

4.4.9.5.15  (02-01-2006)
Forward Case to Centralized Case Processing or Technical Services if Unagreed.

  1. Send case to CCP with a Form 3198, Special Handling Notice for Examination Case Processing, enter the following in the comments section: "Secured Delinquent Return, Accepted as Filed - DC 01" or "Secured Delinquent Return, additional adjustments."

  2. Follow normal unagreed procedures and forward case to Technical Services if unagreed.

4.4.9.5.16  (02-01-2006)
Centralized Case Processing Closing Procedures

  1. Follow normal closing procedures for changed or no-change with adjustments cases. Pay special attention to the following.

    • For changed cases, ensure the RAR started with the amounts from the original return.

    • For no-changed cases, ensure DC 01 is entered in Item 13.

    • For all cases, ensure Item 37 and 414 are present.

4.4.9.6  (02-01-2006)
Substitute for Return

  1. Substitute for Return procedures are applicable when all efforts have been exhausted to secure a return from a taxpayer. An SFRwill not be generated if there is a CI freeze on the account.

    • If an SFR has not posted, See IRM 4.4.9.6.2.

    • If an SFR has already posted to Master File, See IRM 4.4.9.6.3.

4.4.9.6.1  (02-01-2006)
Statutes

  1. The posting of the SFR does not set the ASED, CSED or RSED dates at Master File.

  2. The statute date on the opening record sent from Master File to AIMS will reflect the ASED as if the return was timely filed.

  3. AIMS will populate the ASED with the ASED received from Master File but an "EE" will be substituted in the " DD" portion of the ASED.

4.4.9.6.1.1  (02-01-2006)
Refund Allowed

  1. If the date the TC 30X posts to Master File, is greater than 3 years from the SFR TC 150 date, the refund will be automatically frozen and a D Freeze generated. The group must determine whether the refund should be released and if so, the group should enter in the comments section of the Form 3198, Special Handling Notice for Examination Case Processing , "Refund should be released - Enter a TC 290 for $0.00 with a Priority Code of 4 and Cycle the TC 290 so it posts after the TC 30X."

4.4.9.6.1.2  (02-01-2006)
Refund Barred

  1. If an SFR posted and the Refund Statute Expiration Date has expired and the TC 30X will result in a refund, the credits must be moved to the Excess Collection File. The group must enter the following in the comments section of 3 Form 3198, Special Handling Notice for Examination Case Processing, "Move Credits to Excess Collection File" .

4.4.9.6.2  (02-01-2006)
Generating an SFR

  1. If there is no TC 150 on the module, a substitute for return can be computer generated for all MFT'S that are valid on AIMS (01-07, 10-12, 16, 30, 33, 40, 51, 52, 58, 60, 63, 64, 77 or 78) by using a Push Code 036 on ERCS, or inputting a TC 424 with a Push Code 036 for non-ERCS users.

  2. Before a TC 424 with a Push Code 036 is input, several steps must be taken to ensure the successful generation of the SFR.

4.4.9.6.2.1  (02-01-2006)
Research

  1. Check Master File to ensure there is no TC 150 posted. You cannot request an SFR if there is a TC 150.

  2. BMF - Check ENMOD or INOLES.

    • Does the entity already exist? If it does not, complete a Form 2363. To create an account, enter an "X" in box to the right of the Trans Code 000 and fax to Centralized Case Processing (CCP). If input successfully, the account will establish the Monday after the 2nd weekend from the input date.

    • If the name at Master File is not correct, prepare Form 2363. To initiate a CC BNCHG, enter an "X" in the box to the right of the Trans Code 013 to change the name and fax to CCP.

    • If any other items on the entity need to be added/corrected, prepare Form 2363and fax to CCP.

    • Master File does not have to contain a Filing Requirement but if one exists, ensure that it is consistent with the return being submitted. If the filing requirement is for a Form 1065, the filing requirement must be changed before a Form 1120is submitted. If the filing requirement is for a Form 1120,the filing requirement must be changed before a Form 1120Sis submitted. The election to be treated as a sub-chapter S also must be on file before an 1120S is submitted.

  3. IMF - Check ENMOD, IMFOLE, or INOLES.

    • Does the entity already exist? If it does not, complete a Form 2363and fax to CCP. To create an account, enter an "X" in box to the right of the Trans Code 000. If input successfully, the account will establish the Monday after the 2nd weekend from the input date.

    • Is the name line year equal or prior to the tax period being examined? Example: If the name line year is 2003 and you are generating an SFR for 200212, complete a Form 2363, enter an " X" in the box to the right of the Trans Code 013 and fax to CCP. Enter the appropriate tax period in the Years digits field. If input successfully, the tax period will establish the Monday after the 2nd weekend from the input date. The year reflected with each name line will only change when the entity information changes. Example: If the taxpayer has not changed their name or filing status since 2000, the name line year will reflect 2000 therefore you may not see a name line for the tax period you are working.

      Note:

      EFFECTIVE 1/1/2006, if the filing status on Master File is married filing jointly, you will not have to change the name line year. Master File will update the name line year when the SFR is generated on the primary SSN.

    • Is the filing status for a joint return? If yes, prepare a Form 2363, enter an "X" in the box to the right of the Trans Code 013 to initiate a filing status change to non-joint for the earliest tax period you are establishing and fax to CCP.

      Note:

      EFFECTIVE 1/1/2006, you will no longer have to do this. Master File will generate an SFR for the Primary SSN and generate a filing status of married filing separately.

    • Do any corrections need to be made to the name control? For example, if the name control at Master File is incorrect, a Form 2363must be prepared and faxed to CCP for input.

  4. Posting of an SFR TC 150 for any MFT will not set the filing requirement for future periods.

4.4.9.6.2.2  (02-01-2006)
Generating the SFR using Form 5345, Examination Request (All Versions)

  1. Generate the SFR as follows:

    • For ERCS users, enter the month and year with "EE" in the statute field as if the return was timely filed. (Example: The ASED for a non-filed 200412 Form 1040return would be entered as 04/EE/2008).

      Note:

      Only the "EE" portion of the ASED will appear on the AIMS skeletal record. Use Push Code 036 on the requisition screen. If the case is already on AIMS, wait until the Opening Creation Date on AIMS is more than 30 days from current date, then update the Push Code on ERCS to 036. Both of these processes will send a CC AM424 with a Push Code 036 to AIMS.

    • For non-ERCS users, input CC AM424 with a Push Code 036 using " EE" in alpha code field when requisitioning the return on AIMS. If case is already on AIMS, wait until the Opening Creation Date on AIMS is more than 30 days from current date, then input another AM424 using the same PBC, SBC, EGC and status code.

  2. Before you get a request completed the request will go through validations:

    1. If a name line does not exist for a tax period equal to or earlier than the tax period input, you will get a reject message "NAME LINE YEAR AT MF IS LATER THAN TAX PERIOD INPUT (AM424 REJECT CODE 1880)" .

      Note:

      EFFECTIVE 1/1/2006, if the filing status is married filing jointly, you will not have to change the name line year. Master File will update the name line year when the SFR is generated on the primary SSN.

    2. If a TC 150 has posted, you will get a reject message " TC 150 Present" .

  3. If the input passes AIMS checks, AIMS will send the TC 424 to Master File and additional validations will be performed.

    1. IMF - MF will look at the name line and if it's a joint name line, MF will unpost the TC 424 UPC 160 RC 7 and the SFR will not be generated. You must correct the name line and reinput the requisition using Push Code 036.

      Note:

      EFFECTIVE 1/1/2006, you will no longer have to do this. Master File will generate an SFR for the Primary SSN and generate a filing status of married filing jointly.

    2. IMF/BMF - If a TC 150 has posted, MF will unpost the TC 424 with a UPC 173 RC 4 for IMF and UPC 314 RC 2 for BMF.

    3. BMF - Unpost a TC 424 Push Code 036 (UPC 314-1) for MFT's other than : 01, 02, 03, 04, 05, 06, 07, 10, 11, 12, 16, 33, 51, 52, 58, 60, 63, 64, 77 and 78.

  4. There will be NO Return Transaction File (RTF) data on computer generated SFR's.

  5. AM424 with Push Code 036 will generate a TC 595 if the IDRS Status Code is 03.

  6. If the input passes the AIMS and MF checks, TC 424's with Push Code 036 input before COB on Thursday, will generate a TC 150 over the weekend. For IMF, you will see a TC 150 with a DLN of XX210-888-000-XX-X. For BMF the DLN will be XX-999-999-999-X-XX. A full record will be created on AIMS on Thursday, and a full record on ERCS on the following Monday.

4.4.9.6.3  (02-01-2006)
SFR Posted - Prepare Case for Closing

  1. Close the case using normal procedures for agreed or unagreed closures paying special attention to the following:

    • The starting figures on the RAR must be zero.

    • Include Form 5344, Examination Closing Recordin case file. Enter "SFR/Original Return" in the top margin. DO NOT complete Items 37 and 414 for SFR cases.

    • A Form 13496is required if the case does not have a signed 4549 before the 90-day letter is issued. See IRM 20.1.2.1.4, Penalty - Failure to File/Failure to Pay Penalties, for more information.

    • Include a transcript in the case file showing a posted TC 150.

    • Identify the case as an original return.

4.4.9.6.4  (02-01-2006)
Forward Case File to Centralized Case Processing or Technical Services if Unagreed

  1. Send case to CCP with a Form 3198, Special Handling Notice for Examination Case Processing, enter the following in the comments section: "SFR Case"

  2. Since only the filing of a tax return starts the Statute of Limitations, do not update the statute date. It should remain as "EE" .

  3. Follow normal unagreed procedures and send to Technical Services if unagreed.

4.4.9.6.5  (02-01-2006)
Centralized Case Processing Closing Procedures

  1. Use normal closing procedures.

  2. Priority Code 9 - See IRM 4.4.12.4.19.6.1, Examined Closings, Surveyed Claims and Partial Assessments,for more information.

    • IMF - Use Priority Code 9. Priority Code 9 allows Master File to compute FTP from the RDD which eliminates the need to use a TC 270 which restricts the module. If there is an amended return freeze on the account due to the receipt of a return, and the return has been addressed in the RAR, you must close the case in a 2 step process. First input a TC 290 for zero to release the amended return freeze. After the amended return freeze is released, input the TC 300 and use a Priority Code 9.

    • BMF - Priority Code 9 is systemically generated on the first TC 30X that is input to a module with an SFR. If a subsequent TC 300 needs to be input and the FTP should be computed from the RDD, you must input Priority Code 9 on any adjustments after the first TC 30X.

  3. Use an original return blocking series in Position 38-40 on the Form 5344, Examination Closing Record.

  4. Item 14 - enter 3 years from the 23C date.

4.4.9.7  (02-01-2006) TC 971 Action Code (AC) 013
Delinquent Return Received After SFR TC 150 Posted at Master File

  1. If a return is received after an SFR TC 150 has posted, the amounts on the secured return must be incorporated into a report (RAR or any other type of Examination Report) and assessed as a TC 300. Do not forward the delinquent return to Submissions Processing or Centralized Case Processing for posting of a TC 150.

  2. Request the input of a TC 971 AC 013 using the Return Received Date in the Trans Date field. This updates Master File to show that Examination secured a delinquent return.

4.4.9.7.1  (02-01-2006)
TC 971 Action Code 013

  1. This step must be done by the group as soon as a return is secured. The examining officer must prepare a Form 3177. Enter an "X" in the box on the bottom of the form marked "Other" . Enter "TC 971 AC 013 Return Received Date XX/XX/XXXX" . Fax the Form 3177 to your Centralized Case Processing office. The fax number can be found in the Contact Listing posted to the AIMS web site. Posting of a TC 971 AC 013 at Master File does the following:

    1. For IMF and BMF, updates Master File to show that Examination secured a delinquent return.

    2. For IMF, causes Master File to set the ASED based on the IRS received date.

    3. Sets the duplicate return freeze at Master File if it is NOT input the same cycle as the final closing.

    4. Produces an AIMS weekly update (since TC 976) posts if not input the same cycle as the final closing.

4.4.9.7.2  (02-01-2006)
Statute Concerns

  1. The correct ASED and RSED must be determined.

4.4.9.7.2.1  (02-01-2006)
Establish ASED at Master File

  1. The input of a TC 971 Action Code (AC) 013 using the Return Received Date in the Trans Date field, establishes the ASED at Master File for IMF cases.

  2. This process is scheduled to be modified effective January 1, 2007. A new action code will be assigned to be used when the group secures a delinquent return. The new action code will cause a TC 976/977 to post to Master File which generates the ASED at Master File. The new action code will not set the duplicate return freeze at Master File and an AIMS weekly update will not be generated. This will eliminate the need to address the amended return freeze at closing unless another amended return posts.

4.4.9.7.2.2  (02-01-2006)
Establish ASED on AIMS/ERCS

  1. Prepare/input a Form 5348to request the statute date be updated on AIMS and ERCS. Managerial approval is required for statute updates.

4.4.9.7.2.3  (02-01-2006)
Expired Refund Statute Expiration Dates

  1. This procedure relates to the processing of a delinquent return if an SFR TC 150 posted.

  2. When processing any delinquent return where the examining officer has determined that a refund is due the taxpayer, ensure that the Refund Statute Expiration Date (RSED) has not expired. If the RSED has expired, the refund cannot be issued to the taxpayer. Notate RSED expired on Form 3198, Special Handling Notice for Examination Case Processing.

  3. Prepare a Letter 2877 and include it in the case file. Centralized Case Processing will mail the letter at closing.

4.4.9.7.3  (02-01-2006)
Delinquent Return Secured after SFR TC 150 Posted - Accepted as Filed Procedures

  1. If there will be no further examination of the return, since there is already a TC 150 posted at Master File, the secured return must be processed as a TC 300 and the case closed as an agreed closure. The closed case must be sent to Centralized Case Processing within 7 days of receipt of the return.

4.4.9.7.3.1  (02-01-2006)
Prepare RAR and Form 5344, Examination Closing Record

  1. Prepare RAR starting with zero per return, to reflect tax, credits, etc. per return. See IRM 4.10.8, Report Writing,for additional instructions

  2. Complete the Form 5344, Examination Closing Record as follows. See IRM 4.4.12, Examined Closings, Surveyed Claims and Partial Assessments,for additional instructions for Form 5344, Examination Closing Recordentries:

    • Do not make an entry in Item 06, "Interest to Date" or "Item 08, Agreement Date" . Entering an agreement date allows the taxpayer the interest free period 30 days from the agreement date which is only allowable on the additional assessment, not the original return.

    • For Income Tax Returns (MFT 02, 05, 30, 33, 51, 52, 77 or 78), enter Disposal Code 08 in Item 13 even if a statutory notice of deficiency was issued. Use DC 08 as it is the only "agreed" disposal code that does not require an agreement date. If an agreement date is used, the TP will be granted the interest free period 30 days from the agreement date which is only allowable on the additional assessment.

    • For Non-Income Tax Returns (MFT other than 02, 05, 30, 33, 51, 52, 77 or 78) enter the applicable agreed disposal code.

    • Enter in Item 12 and/or 15, the following line items taken from the return using the appropriate reference/transaction codes.

    1. Adjusted Gross Income

    2. Taxable Income

    3. Self Employment Income (including TIP Income, Medicare, etc.).

    4. Withholding Credit (estimated tax payments must not be included since payments are already posted to Master File.)

    5. Excess FICA

    6. Tax Liability

    7. Self Employment Tax

    8. Earned Income Credit

    9. Exemptions

    10. All other applicable items

    • Item 37, Delinquent Return. Do not make an entry in Item 37. This field is only used for secured delinquent returns if there is NO TC 150 posted.

    • DO NOT enter anything in Item 414. The Exam Results will be calculated on the Exam adjustment.

4.4.9.7.3.2  (02-01-2006)
Forward to Centralized Case Processing (CCP)

  1. Send case to CCP with a Form 3198, Special Handling Notice for Examination Case Processing, enter the following in the comments section: "SFR TC 150 Posted - Process delinquent return as final closures"

  2. If multiple returns were secured, instruct Centralized Case Processing to process the balance due years first and cycle in the refund years (if the RSED is not expired) to ensure the refunds are applied to the balance due years.

4.4.9.7.3.3  (02-01-2006)
Centralized Case Processing (CCP) - Closing Procedures

  1. Upon receipt of the case file, CCP will perform the following checks.

4.4.9.7.3.3.1  (02-01-2006)
Transcript

  1. Review the transcript attached to the delinquent. Verify the transcript matches the return. If the name and SSN on the delinquent/SFR does not match the transcript then reject the package back to the Fort Unit. If the return is annotated "Taxpayer unwilling to obtain SSN/EIN" , see IRM 4.4.1, Introduction - Exhibit 31, Taxpayer Identification Number.

4.4.9.7.3.3.2  (02-01-2006)
TC 150

  1. Verify that there is an SFR TC 150 posting on the transcript. If there is no TC 150 on the module, forward the package to the FORT Unit explaining that there is no TC 150 posted for the taxpayer. See IRM 4.4.9.5.for Secured Delinquent Return Procedures.

4.4.9.7.3.3.3  (02-01-2006)
Payments/Credits

  1. If payments/credits were transferred from the taxpayer’s account to the Excess Collections File, complete Form 8765 and forward it to Campus Accounting Function to have the credits transferred back.

  2. Process the Form 5344, Examination Closing Record using a Hold Code 4 to freeze the expired refund. Determine whether the taxpayer owes a balance due on the tax period being processed. The refund may be used to pay off any balance due on the module being processed, but it CANNOT be used to offset any outstanding balance due on any other tax periods. The refund is to be sent to the Excess Collections File via Form 8758, Excess Collections File Addition. Additional requirements can be found in Figure IRM 3.17.220.2.11, Excess Collections File.

4.4.9.7.3.3.4  (02-01-2006)
Closing Case

  1. Verify entries on the Form 5344, Examination Closing Recordmatch the secured delinquent return.

  2. Verify Form 5344, Examination Closing Record was completed in accordance with IRM 4.4.9.7.3.1.

  3. Request input of CC AMCLSE to close the case to Status Code 90.

4.4.9.7.4  (02-01-2006)
Delinquent Return Secured after TC 150 SFR Posted, With Audit Potential - Process Partial Assessment Procedures

  1. If the return is not accepted as filed, since there is already a TC 150 posted at Master File, the secured return must be processed as a partial assessment within 7 days of receipt of return. Prepare RAR starting, with zero per return, to reflect tax, credits, etc. per return. If tax per return is zero, do not request a partial assessment; prepare final RAR starting with per return figures of zero. See IRM 4.10.8, Report Writing, for detailed instructions.

4.4.9.7.4.1  (02-01-2006)
Prepare RAR and Form 5344, Examination Closing Record

  1. Complete the Form 5344, Examination Closing Record as follows. See IRM 4.4.12, Examined Closings, Surveyed Claims and Partial Assessments, for additional instructions on Form 5344, Examination Closing Recordentries:

    • Enter TIN, MFT, Tax Period, Name Control and Name.

    • Do not make an entry in Item 06, "Interest to Date" or "Item 08, Agreement Date" . Entering an agreement date allows the taxpayer the interest free period 30 days from the agreement date which is only allowable on the additional assessment, not the original return.

    • For Income Tax Cases (MFT 02, 05, 30, 33, 51, 52, 77 or 78) enter Disposal Code 08 in Item 13. Use DC 08 as it is the only "agreed" disposal code that does not require an agreement date. If an agreement date is used, the TP will be granted the interest free period 30 days from the agreement date which is only allowable on the additional assessment.

    • For Non-Income Tax Cases (MFT other than 02, 05, 30, 33, 51, 52, 77 or 78) enter the applicable agreed Disposal Code in Item 13.

    • Enter in Item 12 and/or 15, the following line items taken from the return using the appropriate reference/transaction codes.

    1. Adjusted Gross Income

    2. Taxable Income

    3. Self Employment Income (including TIP Income, Medicare, etc.)

    4. Withholding Credit (estimated tax payments must not be included since payments are already posted to Master File.)

    5. Excess FICA

    6. Tax Liability

    7. Self Employment Tax

    8. Earned Income Credit

    9. Exemptions

    10. All other applicable items

    • Do not make any entries in Item 37 or Item 414.

4.4.9.7.4.2  (02-01-2006)
FAX to Centralized Case Processing (CCP)

  1. The group will fax the partial assessment request to CCP and include the following: First 2 pages of the return, RAR, Form 5344, Examination Closing Recordand Form 3198, Special Handling Notice for Examination Case Processing and enter the following in the comments section: "SFR TC 150 Posted - Process delinquent return as partial assessment" . After CCP makes the assessment, maintain the Form 5344 stamped "Request Completed " in the case file. See IRM 4.4.9.7.4.3.4. .

4.4.9.7.4.3  (02-01-2006)
Centralized Case Processing (CCP) Procedures

  1. Ensure Form 5344, Examination Closing Record was prepared in accordance with IRM 4.4.9.7.3.1.

  2. Perform the following checks.

4.4.9.7.4.3.1  (02-01-2006)
Transcript

  1. Pull a transcript and verify the transcript matches the return. If the name and SSN on the delinquent return does not match the transcript then forward the package to the Fort Unit. If the return is annotated "Taxpayer unwilling to obtain SSN/EIN" , see IRM 4.4.1, Introduction - Exhibit 31, Taxpayer Identification Number.

4.4.9.7.4.3.2  (02-01-2006)
TC 150

  1. Verify that there is an SFR TC 150 posting on the transcript. If there is no TC 150 on the module, send the package to the FORT. Procedures in IRM 4.4.9.5.must be followed.

4.4.9.7.4.3.3  (02-01-2006)
Payments/Credits

  1. If payments/credits were transferred from the taxpayer’s account to the Excess Collections File and the Refund Statute Expiration Date has not expired, complete Form 8765and forward it to Campus Accounting Function to have the credits transferred back. Attach a transcript of the account showing the payment/credit.

4.4.9.7.4.3.4  (02-01-2006)
Make Assessment

  1. Request input of CC AMCLSF or manual assessment if required, to assess the partial assessment. Stamp Form 5344, Examination Closing Record"Request Completed" and fax copy back to the field group for association with the original return in the case file.

4.4.9.7.5  (02-01-2006)
Delinquent Return Secured after TC 150 SFR, With Audit Potential - Final Closing Package (Partial Assessment Processed)

  1. Update RGS to reflect the Partial Assessment unless the original delinquent return was for zero. If zero, a partial assessment was not made, therefore, the RGS starting figures will be zero.

  2. The final closing process depends on whether there are additional adjustments or no additional adjustments.

4.4.9.7.5.1  (02-01-2006)
No Additional Adjustments Required/Prepare RAR and Form 5344, Examination Closing Record

  1. Prepare a no change RAR. See IRM 4.10.8, Report Writing,for detailed instructions

  2. Complete the Form 5344, Examination Closing Record paying special attention to the following fields. See IRM 4.4.12, Examined Closings, Surveyed Claims and Partial Assessments, for additional instructions for Form 5344, Examination Closing Recordentries:

    • Do not make an entry in Item 06, "Interest to Date" or "Item 08, Agreement Date" . Entering an agreement date allows the taxpayer the interest free period 30 days from the agreement date which is only allowable on the additional assessment, not the original return.

    • Item 12 will be zero.

    • Item 13, Disposal Code
      For Non-Income Tax Returns (MFT's other than 02, 05, 30, 33, 51, 52, 77 or 78), use the applicable Agreed Disposal Code.

      Note:

      If using RGS, the Form 5344, Examination Closing Record Disposal Code must be 01. On the Form 3198, Special Handling Notice of Examination Case Processing state "Manual Closing Required - Correct Disposal. Code is __" . If NOT using RGS, use the applicable disposal code.


      For Income Tax Returns (MFT's 02, 05, 30, 33, 51, 52, 77 or 78):

      Note:

      If using RGS, the Form 5344, Examination Closing RecordDisposal Code must be 01. On the Form 3198, Special Handling Notice for Examination Case Processing, state "Manual Closing Required - Correct Disposal Code is 08." . If NOT using RGS, use DC 08 as it is the only "agreed" disposal code that does not require an agreement date. If an agreement date is used, the TP will be granted the interest free period 30 days from the agreement date which is only allowable on the additional assessment.

      .

    • Item 15 will be zero unless the original delinquent return was for zero tax. Since no partial assessments are made for zero tax return, Item 15 must reflect the AGI, TI, etc. figures from the delinquent return.

    • Item 37, Delinquent Return. Do not make an entry in Item 37. This field is only used for secured delinquent returns if there is NO TC 150 posted.

    • DO NOT enter anything in Item 414. The Exam Results will be calculated on the partial assessment made previously.

  3. If multiple returns were secured, instruct Centralized Case Processing to process the balance due years first and cycle in the refund years to ensure the refunds are applied to the balance due years.

4.4.9.7.5.1.1  (02-01-2006)
Forward to Centralized Case Processing (CCP)

  1. Forward the case file along with a Form 3210, to the appropriate CCP campus. See the Contact List posted under the document section on the AIMS web site: http://sbse.web.irs.gov/AIMS for the address.

4.4.9.7.5.1.2  (02-01-2006)
Centralized Case Processing Procedures

  1. Close the case using normal procedures for agreed closures.

  2. Ensure Form 5344, Examination Closing Record was prepared in accordance with See IRM 4.4.9.7.4.1.

4.4.9.7.5.2  (02-01-2006)
Additional Adjustments Required/Prepare RAR and Form 5344, Examination Closing Record

  1. The group will prepare the RAR using the partial assessment amounts as the starting figures. See IRM 4.10.8, Report Writing, for detailed instructions

  2. Complete the Form 5344, Examination Closing Record paying special attention to the following fields. See IRM 4.4.12, Examined Closings, Surveyed Claims and Partial Assessments, for additional instructions for Form 5344, Examination Closing Recordentries:

    • Item 12 and 15 as applicable.

    • Item 13, Disposal Code. Use the applicable changed disposal code

    • Item 37, Delinquent Return. Do not make an entry in Item 37. This field is only used for secured delinquent returns if there is NO TC 150 posted.

    • Item 414, Delinquent Return Amount. DO NOT enter anything in Item 414. The Exam Results will be calculated on the partial assessment made previously and the final assessment.

4.4.9.7.5.2.1  (02-01-2006)
Forward to Centralized Case Processing (CCP) or Technical Services if Unagreed

  1. Forward the case file along with a Form 3210 , to the appropriate CCP campus. See the Contact List posted under the document section on the AIMS web site: http://sbse.web.irs.gov/AIMS for the address.

  2. Follow normal unagreed procedures and forward to Technical Services if unagreed.

4.4.9.7.5.2.2  (02-01-2006)
Centralized Case Processing Procedures

  1. Close the case using normal procedures.

  2. Ensure Form 5344, Examination Closing Record was prepared in accordance with IRM 4.4.9.7.4.1.


More Internal Revenue Manual