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Part 4. Examining Process

Chapter 19. Liability Determination

Section 2. IMF Automated Underreporter (AUR) Control (Cont. 2)

4.19.2  IMF Automated Underreporter (AUR) Control (Cont. 2)

4.19.2.5 
Specific Batch Type Definition

4.19.2.5.43  (09-01-2008)
Batch Type 68 (STN90 PREP) - General

  1. STN90 Prep Batch Type 68 contains cases that require input of an STN90 Statutory Notice which is generated via IDRS input. Undeliverable statutory notices with a new address on the system and cases the tax examiner has identified as requiring an STN90 Statutory Notice (PC 77) are set aside and built into Batch Type 68.

    1. Undeliverable Stat Notices for Batch Type 68 are usually fallout from targeted Batch Type 85, Remail Statutory Notice.

      Note:

      Undeliverable Spousal (Indicator 2) and/or POA (Indicator 3 or 4) Notices cannot be assigned to a batch and MUST be associated with the case.

    2. PC 77 cases are identified and set aside during normal batch disassembly.

  2. If a response is received after the SSN has been assigned to Batch Type 68, and the batch status has not been updated to RB, pull the case and assign it to the appropriate Response Batch Type 51, 52, 53, or 56 (for TY 2005 and prior).

  3. If a case file has been closed on AUR:

    1. Access the Case History Screen to display the Closing Process Code information for the case.

    2. See IRM 4.19.2.5.54 for building closed responses. See IRM 4.19.2.5.66 for additional information on Batch Type 96.

4.19.2.5.43.1  (09-01-2006)
Batch Type 68 - PC 77

  1. As directed, get the PC 77 cases designated for Batch Type 68 and ensure:

    1. A completed STN90 input worksheet is attached to the front of the cases.

    2. The CP 2000 or 1151C and the input worksheet show the same money amount.

    3. If all of the above are NOT met, make a note for the TE who assigned PC 77 and transfer the case to that UID.

  2. To build Batch Type 68:

    1. Select CONTROL - BATCH - BATCH BUILDING - CREATE.

    2. Input batch type 68.

    3. When the system prompts for Undeliverables, input "N" and <ENTER>.

    4. Scan the bar code or input the SSN for each case.

    5. The system alerts when a work unit is complete Keep work units separate and in strict order.

    6. When the maximum volume for the batch has been reached, there are no more cases to be built to the batch or on the designated day, select the CLOSE option.

    7. Select BATCH - STATUS/LOCATION - STATUS/LOCATION.

    8. Input the 5 digit Batch Number.

    9. Input "RB" in the New Status Code Box.

      Note:

      At status update to RB, the system posts PC 77 for each case and moves the cases to Statutory Notice Suspense Batch Type 70.

    10. Select REPORTS - BATCH LISTING - and the appropriate batch listing.

    11. Type in the 5 digit Batch Number.

    12. Select "P" to print and enter the number of copies needed.

    13. Select REPORTS - BATCH LISTING - SUSPENSE SUMMARY.

    14. Type in the 5 digit Batch Number.

    15. Select "P" to print and enter the number of copies needed.

    16. Deliver the listings and batch to the designated person or area.

  3. STN90 Statutory Notices require reprints of the CP 2000 or a copy of the 1151-C.

  4. Take appropriate action to ensure input of Command Code (CC) STN90 on IDRS per the tax examiner's instructions to generate the notices. THE STATUTORY NOTICE MUST BE INPUT USING IDRS COMMAND CODE (CC) STN90 ONE TO TWO WEEKS PRIOR TO THE SYSTEM NOTICE DATE.

    Note:

    Cases with "Temp Add" on the folder must have a Statutory Notice issued to the temporary address and to the address displayed on the STN90.

4.19.2.5.43.2  (09-01-2007)
Batch Type 68 - Undeliverables

  1. All Undeliverable Statutory Notices are checked by the system for a new address when building to Batch Type 85.

  2. The envelope for the original Statutory Notice and the original Notice should be securely stapled to the taxpayer return. The envelope and the Statutory Notice are evidence that the service complied with the law and mailed the Notice by Certified or Registered Mail to the taxpayer's last known address.

  3. Follow the instructions in See IRM 4.19.2.5.43.1 (2) above to process Undeliverable Batch Type 68.

    Exception:

    See IRM 4.19.2.5.43.1(2) Step 3 - When the system prompts for Undeliverables, input "Y" and <ENTER> AND see (4) below.

  4. Once the maximum volume has been reached, or the volume of Batch Type 68 is at the point where the user does not want to add additional SSNs:

    1. Print the Pull Listing by Sequence Number or Notice Date.

    2. Use the listing to pull the cases.

    3. Take appropriate action to ensure input of Command Code (CC) STN90 on IDRS to generate the notices, per the tax examiners instructions.

    4. Update the batch status to RB, and immediately print the Suspense Summary Report and the appropriate batch listing. The system updates the cases with PC 77 and moves the cases to Statutory Notice Suspense Batch Type 70.

      Note:

      THE STATUTORY NOTICE MUST BE INPUT USING IDRS COMMAND CODE (CC) STN90 ONE TO TWO WEEKS PRIOR TO THE SYSTEM NOTICE DATE.

4.19.2.5.44  (09-01-2006)
Batch Type 70 (Statutory Notice Suspense)

  1. The system automatically moves cases assigned a PC/IPC 75, 77, 95, 8L, 8S, or 8M into Statutory Notice Suspense Batch Type 70.

  2. When all the PCs have been verified for Aged CP 2000 Stat Prep Batch Type 59 and STN90 Prep Batch Type 68, and the batch status is updated to RB, the system moves the cases to Batch Type 70.

  3. The cases are filed by Stat Date/CSN order. The Statutory Notices are received in CSN order by date. The cases remain in the suspense batch until a response is received, the statutory notice is returned as undeliverable, or the suspense time frame expires.

  4. The suspense time frames for Batch Type 70 are:

    • 105 days for domestic addresses.

    • 165 days for foreign addresses.

4.19.2.5.45  (09-01-2008)
Batch Type 71 (Statutory Notice Agreed Responses)

  1. Fully agreed Statutory Notice responses are built into Batch Type 71. The current PC/IPC must be 75, 95, or 8L. When Batch Type 71 is updated to batch status RB, the system automatically creates an assessment record for these cases.

  2. An Agreed Statutory Notice Response indicates agreement by meeting one of the following conditions:

    1. An unaltered CP 2000 (attached or not attached to a Statutory Notice) that contains a signature (under the Consent to Tax Increase statement on the Notice) that has no comments. A jointly filed return must have both taxpayers' signatures unless one of the spouses is deceased.

      Note:

      A response is considered "agreed" if the taxpayer only signs under the third party authorization (both signatures on a jointly filed return, unless one of the spouses is deceased) AND checks the Option 1 box (Agree with all Changes).

    2. A signature (under the Consent to Tax Increase jurat) on an unaltered Statutory Notice of Deficiency Form 5564 that has no comments. A jointly filed return must have both taxpayers' signatures, unless one of the spouses is deceased. See (3) and (4) below for additional information on a faxed consent to tax increase.

    3. A signed Form 9465, Installment Agreement Request, with no comments. A jointly filed return must have both taxpayers' signatures, unless one of the spouses is deceased.

      Caution:

      Full payment received after a Notice of Deficiency was issued, without the necessary signature(s), cannot be considered an agreement with the tax increase. Build these responses to the appropriate disagreed response batch type.

      Note:

      If one of the disagreement boxes on the response page has been checked, consider the response a disagreed response. Failure to do so could result in an incorrect assessment, which creates additional cost for the IRS and causes an unnecessary burden for the taxpayer.

  3. A faxed consent to assess additional tax (CP 2000, 2626C Letter, For 5564 (Stat Notice) or Form 9465 of $25,000 or less can be accepted. Build these responses into Batch Type 51.

  4. If the tax increase is in excess of $25,000, original signatures are required. If a faxed consent to assess additional tax is received, treat this response as disagreed.

  5. While sorting or building responses that meet agreed criteria, remove all Forms 9465 (Installment Agreement Requests) and send to Collection. If the Form 9465:

    1. is the signature document used to agree to the tax increase , make a copy to send to Collection. Use red ink to annotate the copy of the Form 9465 with: "9465 w/AUR Assess" . Annotate the original Form 9465 that a copy was sent to Collection and use the original to build Batch Type 71.

    2. is not the signature documentused to agree to the tax increase, remove and route to Collection. Mark the response " IA to Coll" , as a record that an Installment Agreement was submitted.

  6. If a permanent change of address is indicated, input the address change before building to Batch Type 71.

    1. Select CASE - UPDATE ADDRESS.

    2. Input the address change.

    3. Press <COMMIT> .

    or

    1. Select BATCH BUILDING - UPDATE ADDRESS

    2. Input the address change.

    3. Press <COMMIT> .

  7. See IRM 4.19.2.4.3.2 for instructions to build Batch Type 71.

    Note:

    There are other batch assignment options for agreed Statutory responses. Agreed Statutory responses with an IRS received date of 10 days or older could be built to Priority Batch Type 74. Agreed Statutory 2nd Responses, could be built to Batch Type 76 (for tax year 2005 and prior). It is recommended that Batch Type 71 be used for agreed responses so that automatic assessments can be made.

  8. Batch Type 71 may be built up to a locally determined date but no later than:

    Date For Tax Year
    May 6, 2011 2007
    May 7, 2010 2006
    May 8, 2009 2005
    May 9, 2008 2004

    After the dates above, cases should be batched into Stat Response Batch Types 72, 74, or 76. The assessments are input via IDRS.

  9. As Batch Type 71 is being built, the system identifies certain case conditions that won't allow automatic assessment processing. These cases must be worked by the tax examiners. Build cases with the following identified conditions into Statutory Priority Response Batch Type 74 or Stat Notice 2nd Response Unit Suspense Batch Type 76 (for tax years 2005 and prior):

    1. New Transactions: Indicate "NT" on the case folder.

    2. Transaction Code 520: Indicate "TC 520" on the case folder.

    3. Transaction Code 604: Indicate "TC 604" on the case folder.

    4. Partial Assessment on a case: Indicate " Part Assess" on the case folder.

    5. CP 2000 data is incomplete: Indicate " CP 2000" on the case folder.

    6. More than Eight Credit Reference Codes: Indicate "Ref Cd" on the case folder.

  10. ARDI Cases: Indicate "ARDI" on the case folder. Transfer the case to a locally designated UID.

  11. If the case file is assigned to an existing batch, the system won't allow the SSN to be assigned to the batch being built. Access the Case History Screen to display the current batch assignment information. This information is used to associate the response to the appropriate batch.

  12. Disaster ZIP and Manual Interest: Indicate: "DDMI" on the case folder. Batch the case into Manual Interest Batch Type 61.

  13. If the system displays current Batch Type 9600X, the case has been closed with an AUR Process Code. Place the response in the designated area for closed cases, Batch Type 81.

    1. Correspondence for closed cases for tax years 2005 and subsequent can be built into Batch Type 81.

    2. Follow Campus directions to process responses or closed cases that do not build to Batch Type 81. See IRM 4.19.2.5.66 for additional information on Batch Type 96.

  14. As directed, get a built batch to pull/associate. Use the pull listing to pull the case(s), keeping them in strict pulled order.

    Note:

    Recommendation - after a thorough search fails to locate the case, leave the response in the Batch Type 71 to continue the case closure.

  15. Associate the responses, verifying that the response is associated with the correct case file. As the cases are pulled in CSN order, the responses should also be sequenced in CSN order to make association easier.

    Note:

    Recommendation - after a thorough search fails to locate a missing agreed response, note the case folder " Agreed LR" . Input IPC "RF" and follow Campus direction to expedite handling.

  16. To Resequence the batch on AUR:

    1. Select CONTROL - BATCH - BATCH BUILDING - ADD.

    2. Type in the 5 digit batch number. Press <ENTER>.

    3. Click on RESEQUENCE and press <ENTER>.

  17. To close the batch:

    1. Select CLOSE, the batch status updates to AB.

    2. Select REPORT - BATCH LISTING - and the appropriate batch listing.

    3. Enter "P" to print and the number of copies needed.

    4. Complete batch labeling and batch logging.

  18. Update the batch status to RB. The system updates the PCs and creates automatic assessments.

    1. Select BATCH - STATUS/LOCATION - STATUS/LOCATION.

    2. Input the 5 digit Batch Number.

    3. Input "RB" in the New Status Code Box.

  19. Print a final batch listing.

    1. Select REPORTS - BATCH LISTING - and the appropriate batch listing.

    2. Type in the 5 digit Batch Number.

    3. Select "P" to print and enter the number of copies needed.

  20. Assemble the cases, label the batch and route to the File Operation.

4.19.2.5.46  (09-01-2008)
Batch Type 72 (Statutory Notice Disagreed Response)

  1. When a Disagreed Response is received for a Statutory notice, the SSN is assigned to Batch Type 72. These batches are ordered and worked by the technical units.

  2. A disagreed Statutory Notice response does not meet the conditions in See IRM 4.19.2.5.45 and is identified by:

    1. Disagreement with at least some part of the notice.

    2. The Waiver (or CP 2000 response page) is unsigned or there are any comments.

    3. An unsigned Form 9465, Installment Agreement Request, with or without taxpayer comments.

    Reminder:

    See (3) below when Stat responses contain A Form 9465, Installment Agreement Request.

  3. While building/sorting Stat responses that meet disagree criteria take the following steps:

    1. Remove all Forms 9465, Installment Agreement Requests,

    2. Mark the response with "IA to Coll" or similar language to let the tax examiner know that the response contained an Installment Agreement, AND

    3. Route the IAs to Collection.

    Note:

    If the Form 9465, Installment Agreement Request, contains comments OR is the only piece of correspondence, make a copy to send to Collection. Using red ink annotate the copy of the Form 9465 with "9465 w/AUR Assess" . Use the original to build into the Disagree Batch Type 72, being sure to annotate that a copy of the IA was sent to Collection.

  4. See IRM 4.19.2.4.3.2 for instructions on building Batch Type 72.

    Caution:

    Do not build multiple received dates into Batch Types 72. These batches must contain responses with the same received date.

  5. As directed, get a built batch to pull/associate. Use the pull listing to pull the case(s), keeping them in strict pulled order.

    Note:

    Recommendation - after a thorough search fails to locate the case, note the response "LC" and leave it in the response batch for the TE to determine whether or not processing can continue.

  6. Associate the responses, verifying that the response is associated with the correct case file. As the cases are pulled in CSN order, the responses should also be sequenced in CSN order to make association easier.

    Note:

    Recommendation - after a thorough search fails to locate a missing response, note the case folder "LR " and leave it in the response batch for the TE to take appropriate action.

  7. Resequence the batch on AUR:

    1. Select CONTROL - BATCH - BATCH BUILDING - ADD.

    2. Type in the 5 digit batch number. Press <ENTER>.

    3. Click on RESEQUENCE and press <ENTER>.

  8. Close the batch and print the batch listing on AUR:

    1. Select CLOSE, the batch status updates to AB.

    2. Select REPORT - BATCH LISTING - and the appropriate batch listing.

    3. Enter "P" to print and the number of copies needed.

  9. Complete batch labeling and batch logging.

  10. Deliver the batch to the designated area.

4.19.2.5.47  (09-01-2003)
Batch Type 73 (Statutory Notice Miscellaneous Referral)

  1. This batch consists of Statutory Notice Response Cases which require technical assistance before case processing can continue. These cases are usually identified when disassembling other batches.

  2. Cases built to Batch Type 73 must have an IPC 8D.

  3. These batches are ordered and worked by the designated technical unit(s).

4.19.2.5.48  (09-01-2007)
Batch Type 74 (Statutory Priority Response)

  1. Statutory Notice responses that are 10 DAYS OR OLDER (from the IRS received date) are classified as Priority Responses and are built to Batch Type 74.

    Note:

    It is recommended that Stat Notice agreed responses be built to Batch Type 71, regardless of age for automatic assessment. Cases with conditions which cannot be automatically assessed are built to Batch Type 74.

    Reminder:

    See (4) below when Stat priority responses contain Form 9465 (Installment Agreement Request).

  2. Statutory Priority Response Batch Type 74 can have different IRS received dates. Batch Type 74 may be built by SSN (received date entered for each case) or by using the RECD DATE option on the system (only one received date which applies to all SSNs). The system ages the batch based on the oldest received date assigned to the batch.

  3. Batch Type 74 can also be used to build responses with different received dates that are not over 20 days.

  4. While sorting/building responses that meet Stat priority disagree criteria take the following steps:

    1. Remove all Forms 9465 (Installment Agreement Request),

    2. Mark the response with "9465 to Coll" or similar language to let the tax examiner know that the response contained a Form 9465, AND

    3. Route the Forms 9465 to Collection.

    Note:

    If the Form 9465 contains comments OR is the only piece of correspondence, make a copy to send to Collection. Using red ink annotate the copy of Form 9465 with "9465 w/AUR Assess" . Use the original to build into the Disagree Batch Type 74, being sure to annotate that a copy of Form 9465 was sent to Collection.

  5. See IRM 4.19.2.4.3.2 for instructions on building Batch Type 74.

  6. As directed, get a built batch to pull/associate. Use the pull listing to pull the case(s), keeping them in strict pulled order.

    Note:

    Recommendation - after a thorough search fails to locate the case, note the response "LC" and leave it in the response Batch Type 74 for the TE to determine whether or not processing can continue.

  7. Associate the responses, verifying that the response is associated with the correct case file. As the cases are pulled in CSN order, the responses should also be sequenced in CSN order to make association easier.

    Note:

    Recommendation - after a thorough search fails to locate a missing response, note the case folder "LR " and leave it in the response batch for the TE to take appropriate action.

  8. Resequence the batch on AUR:

    1. Select CONTROL - BATCH - BATCH BUILDING - ADD.

    2. Type in the 5 digit batch number. Press <ENTER>.

    3. Click on RESEQUENCE and press <ENTER>.

  9. Close the batch and print the batch listing on AUR:

    1. Select CLOSE, the batch status updates to AB.

    2. Select REPORTS - BATCH LISTING - and the appropriate batch listing.

    3. Enter "P" to print and the number of copies needed.

  10. Complete and batch labeling and batch logging.

  11. Deliver the batch to the designated area.

4.19.2.5.49  (09-01-2005)
Batch Type 75 (Statutory Unit Suspense)

  1. Statutory notice cases that need special handling are assigned to Statutory Unit Suspense Batch Type 75. Cases are moved to Batch Type 75 when:

    1. A tax examiner requires a technical determination from a manager or a work leader on a Statutory Notice case. The tax examiner refers the case to the manager or work leader for assistance by transferring the case. The system updates the case with an IPC 8E and moves the case to Batch Type 75.

    2. A case requires a change due to a Taxpayer Advocate or Telephone inquiry and is requested by a tax examiner.

  2. The system creates a charge out document which clerical function prints and uses to pull the case(s) from files.

  3. The clerk uses the TRANSFER menu option on the system to transfer the case(s) back to the tax examiner.

  4. The system moves the case(s) to Batch Type 75.

  5. The clerk routes the case(s) to the requesting tax examiner.

    Note:

    The last three digits of Unit Suspense Batch numbers are the Unit Location Number.

4.19.2.5.50  (09-01-2008)
Batch Type 76 (Statutory Notice 2nd Response Unit Suspense) For TY 2005 and prior

  1. A Statutory Response assigned a PC 77, 95 or an IPC 8L, 8S or 8M is worked by the tax examiner who issued the notice/letter and is built into Statutory Notice 2nd Response Unit Suspense Batch Type 76. During batch building, the system transfers the cases to the tax examiner who sent the letter.

    Note:

    It is recommended that Batch 71 be used for all Stat Notice agreed responses. Assignment to Batch Type 71 ensures automatic assessment.

    Note:

    Use of Batch Type 84 has been approved as an alternative to Batch Type 76 for TY 2005 and prior to avoid the unnecessary handling required with Batch Type 76.

    Exception:

    Batch Type 76 has been set to "Reserved" for tax years 2006 and subsequent cases. Build responses for tax years 2006 and subsequent cases with PC 77, 95 or an IPC 8L, 8M or 8S to Stat Response Batch Types 72 or 74, depending on the IRS received date. IPC 8F cases for tax years 2006 and subsequent are transferred to TE that assigned the IPC.

  2. While building/sorting responses that meet Batch Type 76 criteria, take the following steps:

    1. Remove all Forms 9465 (Installment Agreement Request),

    2. Mark the response with "9465 to Coll" or similar language to let the tax examiner know that the response contained a Form 9465 AND

    3. Route the Forms 9465 to Collection.

    Note:

    If the Form 9465 contains comments OR is the only piece of correspondence, make a copy to send to Collection. Use red ink to annotate the copy of the Form 9465 with "9465 w/AUR Assess" . Use the original to build into the Disagree Batch Type 76, being sure to annotate that a copy of Form 9465 was sent to Collection.

  3. See IRM 4.19.2.4.3.2 for instructions to build Batch Type 76.

  4. As directed, get a built batch to pull/associate. Use the pull listing to pull the case(s), keeping them in strict pulled order.

    Note:

    Recommendation - after a thorough search fails to locate the case, note the response "LC" and leave it in the response batch for the TE to determine whether or not processing can continue.

  5. Associate the responses, verifying that the response is associated with the correct case file. As the cases are pulled in CSN order, the responses should also be sequenced in CSN order to make association easier.

    Note:

    Recommendation - after a thorough search fails to locate a missing response, note the case folder "LR " and leave it in the response batch for the TE to take appropriate action.

  6. To close the batch which updates the batch status to AB and the system transfers the cases to the tax examiner who sent the letter:

    Note:

    Do not resequence this batch type.

    1. Select BATCH - BATCH BUILDING - ADD.

    2. Input the 5 digit batch number.

      Note:

      If using the pull listing as a transmittal, click on Pull Listing - press <ENTER> - input "D" for date order - press <ENTER> - input "P" for print - input a sufficient number to use the listing as a transmittal for each location or enter 1 and photocopy the list.

    3. Select CLOSE, press <ENTER> (twice if not using the pull listing).

      Note:

      Cases cannot be added to Batch Type 76 after closing the batch.

      Note:

      It is not necessary to resequence this batch type.

    4. Acknowledge the message: "Cases transferred to previous tax examiner" . The batch won't close until this message is acknowledged.

    5. Exit.

      Caution:

      Verify the batch is closed by checking the batch or case history screens.

  7. Separate the cases by location.

  8. Prepare designated transmittal.

  9. Route to the appropriate unit.

4.19.2.5.51  (09-01-2003)
Batch Type 77 (Statutory Notice Unit Research Suspense)

  1. The system automatically moves cases assigned IPC 8A to the appropriate Unit Research Suspense based on the UID of the tax examiner who input IPC 8A. Statutory Notice Unit Research Suspense Batch Type 77 is the suspense file used while the tax examiner waits for the additional research ordered to continue working the case.

  2. The research that the tax examiner requests is ordered daily by the system.

  3. When the requested research is received, route the information to the unit shown in the Remarks Field of the Research Document. The tax examiner works and releases these cases.

    Note:

    Local management determines whether these cases are stored in the individual tax examining units or in the clerical area.

4.19.2.5.52  (09-01-2008)
Batch Type 79 (Statutory Notice Defaults) TY 2006 and Prior

  1. When the suspense time frame for Batch Type 70 Statutory Notice cases has expired, the cases are built to Statutory Notice Default Batch Type 79. When Batch Type 79 is updated to RB status, the system updates all cases to PC 90, Default Closure, and creates automatic assessment records.

    Note:

    There are two AUR reports that identify the suspense batch(es) that have met the suspense time frame; the Produce Notice/Letter Suspense Listing and the Suspense Aged Batch Report. Both are accessed and printed by a manager or the AUR coordinator.

  2. Batch Type 79 may be built up to a locally determined date but no later than:

    Date For Tax Year
    May 6, 2011 2007
    May 7, 2010 2006
    May 8, 2009 2005
    May 9, 2008 2004

    After the dates above, cases should be batched into Stat Priority Batch Type 74 or transferred to a designated TE. The assessments need to be input via IDRS after the dates shown above.

  3. To build Batch Type 79, use the case files (from designated Batch Type 70) as the input documents.

    1. Select CONTROL - BATCH - BATCH BUILDING - CREATE.

    2. Input Batch Type 79.

    3. Scan the bar code or enter each SSN, place entered returns face down to keep in strict order.

      Note:

      Write the system message on cases that won't build to Batch Type 79. See (4) and (5) below for handling system identified "fallouts" .

    4. The system alerts when a work unit is complete, label the work units. Keep work units separate and in strict order.

    5. When the maximum volume for the batch has been reached, there are no more cases to be built to the batch or on the designated day, select the CHECK DATE option.

    6. Input the Notice Date used to build the batch.

    7. Attempt to locate the cases the system identifies as missing from the batch.

      Note:

      If the case cannot be located, prepare a substitute for the case and build to the batch in order to continue AUR processing.

    8. Close the batch using the CLOSE option; the system updates the batch status to AB. DO NOT RESEQUENCE Batch Type 79. Commit and Exit.

    9. Select REPORTS - BATCH LISTING - and the appropriate batch listing.

    10. Input "P" to print and place the report with the batch.

    11. Select CONTROL - BATCH - STATUS/LOCATION - STATUS/LOCATION.

    12. Input the 5 digit batch number and <ENTER>.

    13. Input "RB" .

    14. Press <ENTER> and then <commit> ().

    15. Prepare all batch and work unit labels and logs.

    16. EXIT.

  4. After all No Response cases have been built into Batch Type 79, assemble the cases for shipment to the Files Function.

  5. As Batch Type 79 is being built, the system identifies conditions that prevent the case from being built to Batch Type 79.

    1. Time frame has not expired: These cases are kept in CSN order and placed back in Statutory Suspense Batch Type 70.

    2. New Transactions: Indicate "New Trans " on the case folder and build to Batch Type 84.

    3. TC 520 present: Indicate "TC 520" on the case folder and build to Batch Type 84.

    4. TC 604 present: Indicate "TC 604" on the case folder and build to Batch Type 84.

    5. PC 77 or an IPC 8M is present: Indicate " PC 77" or "IPC 8M" on the case folder and build to Batch Type 84.

    6. The case is a Partial Assessment: Indicate "Part Assess" on the case folder and build to Batch Type 84.

    7. New Payer/Agent information present: Indicate "PA" on the case folder and build to Batch Type 84.

    8. The CP 2000 data is incomplete: Indicate " CP 2000" on the case folder and build to Batch Type 84.

    9. Letter 2625C is present: Indicate " 2625" on the case folder and build to Batch Type 84.

    10. An IPC 8L with a PC 77 present: Indicate " PC 77" on the case folder and build to Batch Type 84.

    11. More than Eight Credit Reference Codes present: Indicate "Ref CD" on the case folder. Access the Over Eight Reference Code Report and remove the listed cases from the batch being assigned batch status code RB. Follow Campus direction to build to Batch Type 84 or transfer the cases. See IRM 4.19.2.9.17 for additional information about the report.

    12. ARDI case(s): Indicate "ARDI" on the case folder. Transfer the case to a locally designated UID.

    13. Disaster ZIP and Manual Interest: Indicate "DDMI" on the case folder. Batch the cases to Manual Interest Batch Type 61.

    14. Disaster Types 3 and 4: The system displays a message to refile in Batch Type 70 Suspense (until after the disaster end date).

  6. If a response is received after the SSN has been assigned to Batch Type 79 and the batch status has not been updated to RB, pull the case and assign it to the appropriate Response Batch Type 71, 72, 74, or 76.

4.19.2.5.53  (09-01-2008)
Batch Type 79 (Statutory Notice Defaults) TY 2007 and Subsequent

  1. When the suspense time frame for Batch Type 70 Statutory Notice cases has expired, the cases are SYSTEMICALLYbuilt to Statutory Notice Default Batch Type 79. When Batch Type 79 is updated to RB status, the system updates all cases to PC 90, Default Closure, and creates automatic assessment records.

  2. Batch Type 79 may be built up to a locally determined date but no later than:

    Date For Tax Year
    May 6, 2011 2007
    May 7, 2010 2006
    May 8, 2009 2005
    May 9, 2008 2004

    After the dates above, cases should be batched into Stat Priority Batch Type 74 or transferred to a designated TE. The assessments need to be input via IDRS after the dates shown above.

  3. As Batch Type 79 is being built, the system identifies case conditions requiring tax examiner review. When No Response cases are being systemically batched the system will check for Fallout conditions. See (5) below.After WEEK END processing clerks will print the Auto-Purge Pull Listing. The listing will display:

    1. Notice Date

    2. Suspense Sequence Number.

    3. Virtual Indicator.

    4. SSN.

    5. Target Batch.

    6. Fallout condition.

  4. Use the Auto-Purge Pull Listing to pull the cases and indicate on the case folder the Fallout condition. Build into the designated target batch.

  5. Fallout conditions: Build cases using the following information.

    1. New Transactions: Indicate "New Trans " on the case folder and build to Batch Type 84.

    2. TC 520 present: Indicate "TC 520" on the case folder and build to Batch Type 84.

    3. TC 540 present: Indicate "TC 540" on the case folder and build to Batch Type 84.

    4. TC 780 present: Indicate "TC 780" on the case folder and build to Batch Type 84.

    5. TC 604 present: Indicate "TC 604" on the case folder and build to Batch Type 84.

    6. PC 77 or an IPC 8M is present: Indicate " PC 77" or "IPC 8M" on the case folder and build to Batch Type 84.

    7. The case is a Partial Assessment: Indicate "Part Assess" on the case folder and build to Batch Type 84.

    8. New Payer/Agent information present: Indicate "PA" on the case folder and build to Batch Type 84.

    9. The CP 2000 data is incomplete: Indicate " CP 2000" on the case folder and build to Batch Type 84.

    10. Letter 2625C is present: Indicate " 2625" on the case folder and build to Batch Type 84.

    11. IPC 8L with a PC 77 present: Indicate " PC 77" on the case folder and build to Batch Type 84.

    12. More than Eight Credit Reference Codes present: Indicate "Ref CD" on the case folder. Access the Over Eight Reference Code Report and remove the listed cases from the batch being assigned batch status code RB. Follow Campus direction to build to Batch Type 84 or transfer the cases. See IRM 4.19.2.9.17 for additional information about the report.

    13. ARDI case(s): Indicate "ARDI" on the case folder. Transfer the case to a locally designated UID.

    14. Disaster ZIP and Manual Interest: Indicate "DDMI" on the case folder. Batch the cases to Manual Interest Batch Type 61.

    15. Disaster Types 3 and 4: The system displays a message to refile in Batch Type 70 Suspense (until after the disaster end date).

    16. Time frame has not expired: These cases are kept in CSN order and placed back in Statutory Suspense Batch Type 70.

  6. The clerk will update the batch to RB status once all Fallout conditions have been built

  7. Once the batch is in RB status assemble the cases for shipment to the Files Function.

  8. If a response is received after the SSN has been assigned to Batch Type 79 and the batch status has not been updated to RB, the system will allow the case to be batched to Response Batch Type 71, 72, or 74.

4.19.2.5.54  (05-29-2007)
Batch Type 81 (Reconsiderations)

  1. Correspondence for closed cases from Batch Type 9600X for tax years 2005 and subsequent can be built to Batch Type 81. Batch Type 81 is used to control, monitor and track correspondence for closed cases received in AUR for reconsideration of the assessment.

  2. Batch Type 81 is worked in the technical units. Tax examiners assign IPCs 9x to record actions taken on these cases.

    Note:

    Report time spent to sort (first read, copies of CP, rerouting correspondence, etc.) and build closed correspondence to 790-40000.

  3. See IRM 4.19.2.4.3.2 to build Batch Type 81.

4.19.2.5.55  (09-01-2008)
Batch Type 82 (Reconsideration Suspense) TY 2005 and subsequent

  1. Reconsideration cases that the tax examiner determines needs additional action are systemically moved to suspense Batch Type 82 at assignment of IPC 9B, 9E and 9L.

  2. When the requested research or a taxpayer response is received, route the information to the appropriate unit. The location of the unit is shown in the Remarks Field on the Research Document.

  3. Local management determines whether Reconsideration Suspense Batch Type 82 is located in the individual tax examining units or in the clerical area.

4.19.2.5.56  (05-29-2008)
Batch Type 84 (Cases With New Action)

  1. The system identifies cases with "New Actions" that have taken place since the batches and cases were released by the tax examining units.

    Note:

    Use of Batch Type 84 has been approved as an alternative to second response batches 54, 56 and 76 (for TY 2005 and prior) to avoid the unnecessary handling required with these batches.

  2. Cases with "New Actions" are built into Batch Type 84 as follows:

    • 84001–299 Case Analysis

    • 84300–499 CP 2501

    • 84500–799 CP 2000

    • 84800–999 Statutory Notice

    Note:

    Rather than sorting the cases by previous Process Code to determine which part of Batch Type 84 to target, when building select CP 2000 RESPONSES. If the case won't build, note the folder with the correct Batch Type 84 segment and set aside.

  3. As directed, get the cases targeted for Batch Type 84 building.

    1. Select CONTROL - BATCH - BATCH BUILDING - CREATE.

    2. Input batch type 84.

    3. When the New Actions prompt displays, select the specific segment if your cases are pre-sorted OR select CP 2000 RESPONSES and see the Note in (2) above.

    4. Scan the bar code or enter the SSN of each case. Place cases face down to keep in strict order.

    5. The system alerts when a work unit is complete, label the work units. Keep work units separate and in strict order.

    6. When the maximum volume for the batch has been reached or there are no more cases to be built to the batch or on the designated day, use the CLOSE menu option to close the batch which updates the batch status to AB.

    7. <COMMIT> and <EXIT>. DO NOT RESEQUENCE the batch.

    8. Select REPORTS - BATCH LISTING - and the appropriate batch listing.

    9. Type in the batch number and <ENTER>.

    10. Select "P" for print and enter the designated number of copies to be printed.

    11. Place one copy of the listing with the batch and follow Campus direction for other copies.

    12. Complete batch sheets and required log entries.

    13. Deliver the batch to the designated area for the technical units to work.

4.19.2.5.57  (05-29-2007)
Batch Type 85 (Remail Statutory Notice)

  1. Statutory Notices returned by the Post Office as undeliverable are targeted to Batch Type 85. To be accepted in Batch Type 85, the case must have a PC 75 and a system identified new address present since the Statutory Notice was mailed to the taxpayer. When Batch Type 85 is RB'd, the AUR system automatically generates a request for a new Statutory Notice to the new address.

    Note:

    At the option of local management, undeliverable Statutory Notices may be sorted per Post Office stamps indicating UNCLAIMED or REFUSED. These do not require batch building to Batch Type 85 and are associated with the cases.

  2. When the cases are entered to Batch Type 85, the system marks each case with the appropriate Undeliverable Indicator The Undeliverable Indicators are:

    1. "T" : True Undeliverable, no new address present. The "T" indicator displays in the Action Code field on the Case History Screen.

    2. "M" : Remail Statutory Notice, a new address has been identified.

  3. Undeliverable Spousal and/or POA Notices cannot be assigned to Batch Type 85. When batching undeliverable notices, the indicator " 1" (Primary), "2" (Spouse), or "3 or 4" (POA), must be entered after the SSN. Associate undeliverable Spousal and POA Notices with the case files.

  4. Undeliverable Statutory Notices for cases that have already been closed must also be associated with the return.

    1. Research IDRS for the controlling DLN and

    2. Prepare a Form 9856, Attachment Alert.

  5. To build Batch Type 85:

    1. Select BATCH - BATCH BUILDING - CREATE

    2. Input Batch Type 85 and <ENTER>.

    3. Scan the bar code or enter the SSN of each undeliverable Stat notice.

    4. Set aside the undeliverable Stats that do not build to Batch Type 85.

    5. When the batch is full, or when there are no more undeliverable Stat notices to build or on the designated day, <COMMIT> .

    6. Click on PULL LISTING. DO NOT CLOSE or RESEQUENCE the batch.

    7. Input "D" for date order. <ENTER>.

    8. Input "P" for print. <ENTER> twice.

    9. Exit.

  6. Use the listing to pull the cases - keeping the cases in strict order.

  7. Associate the undeliverable Stat Notice with the case.

  8. To finish Batch Type 85 for Undeliverables:

    1. Select BATCH - BATCH BUILDING - ADD.

    2. Input the five digit batch number.

    3. Resequence the batch. Select CONTROL - BATCH - BATCH - ADD. Input the batch number. Click on RESEQUENCE.

    4. Click on CLOSE twice.

    5. Exit.

    6. Update the batch status to RB. Select BATCH - BATCH STATUS/LOCATION. Enter the batch 85 number. Input RB.

    7. Select REPORTS - SUSPENSE SUMMARY.

    8. Select "P" to print.

    9. Label and place in the appropriate suspense area based on the CSNs assigned to the cases.

  9. As Batch 85 is being built, the system identifies "Disaster ZIP and Expiration Date" . Indicate " DD and Expiration Date" on the folder and batch into Disaster Batch Type 93800–999.

  10. True undeliverables: The returned (undeliverable) original envelope and the Statutory Notice MUST be associated with the case file. The envelope is evidence that the IRS complied with the law and mailed the notice by certified or registered mail to the taxpayer's last known address.

4.19.2.5.58  (09-01-2006)
Batch Type 86 (Statutory Notice Response Release)

  1. Completed cases from Batch Types 64, 75, 76 (TY 2005 and prior) and 77 are worked by the tax examiner and released in a designated area. As directed, get the cases from each unit and build to Unit Release Batch Type 86.

  2. See IRM 4.19.2.4.3.3 for instructions to build and process Batch Type 86.

4.19.2.5.59  (09-01-2008)
Batch Type 87 (Partial Agreed Statutory Notice)

  1. This batch consists of partially agreed statutory cases closed by the tax examiner with an IPC SR.

    1. When Batch Type 87 is updated to AB status, the IPC SR is converted and posts to IDRS as PC 95.

    2. When Batch Type 87 is updated to RB status, the AUR system updates PC 95 to PC 87 and creates automatic assessment records.

  2. Batch Type 87 is built using the case files set aside during the disassembly of worked batches.

  3. To build Batch Type 87:

    1. Select CONTROL - BATCH - BATCH BUILDING - CREATE.

    2. Type in Batch Type 87.

    3. Prepare batch sheets and/or make log entries.

    4. Scan the bar code or enter the SSN of each case. Place entered cases face down to keep in strict order.

    5. The system alerts when a work unit is complete. Keep work units separate and in strict order.

    6. When the maximum volume for the batch has been reached, there are no more cases to be built or as directed, select CLOSE but DO NOT RESEQUENCE the batch.

    7. Exit.

    8. Select REPORTS - BATCH LISTING - and the appropriate listing.

    9. Input the 5 digit batch number.

    10. Input "P" for print and the number of prints needed.

    11. Complete the batch sheets and deliver to the designated area.

  4. As Batch Type 87 is being built, the system identifies " Disaster Zip and Manual Interest" . Indicate "DDMI" on the case folder and build the case(s) into Manual Interest Batch Type 61.

  5. When Batch Type 87 is closed, the AUR system updates the batch status to AB and creates the Notices/Letters.

  6. To ensure the notice information and process codes post before the automatic assessment is made, Batch Type 87 is held:

    1. Tax Year 2004 and prior - a minimum of 21 days after the batch was updated to AB before updating to RB.

    2. Tax years 2005 and subsequent - a minimum of 7 days after the batch was updated to AB before updating to RB.

  7. When the batch status is being updated to RB, the system checks for cases with more than eight credit reference codes associated with the case assessment. The batch status cannot be updated until the cases with more than eight credit reference codes have been removed from the batch. If the system identifies the Over Eight condition,

    1. Print the Over Eight Credit Reference Code Report to identify the cases.

    2. Pull the cases.

    3. Build or transfer the cases.

    See IRM 4.19.2.9.17 for additional information about the Over Eight Credit Reference Code Report.

  8. When the system accepts Batch Type 87 update to batch status RB, the systems posts a PC 87 and creates automatic assessment records.

    Note:

    If a response is received for cases in Batch Type 87, pull the case, associate the response and transfer the case to the tax examiner who assigned IPC SR.

  9. If a batch has not been updated to RB after two cycles have passed, the system generates a Partially Agreed Aging Report indicating which batch(es) have not been updated to RB status. See IRM 4.19.2.9.18 for more information about the Partially Agreed Aging Report.

4.19.2.5.60  (09-01-2005)
Batch Type 89001 (Bankruptcy Suspense Cases)

  1. Cases are automatically assigned to Bankruptcy Suspense Batch 89001 when PC 98 is assigned. The system moves cases into this batch when the tax examiner commits the PC.

  2. The cases in Batch Type 89001 are monitored by tax examiners.

  3. Cases are transferred from Batch Type 89001 (transferred) when tax examiners request the cases to complete processing.

4.19.2.5.61  (09-01-2005)
Batch Type 89002 (Innocent Spouse Suspense Cases)

  1. Cases are automatically assigned to Innocent Spouse Suspense Batch 89002 when PC 99 is assigned. The system moves cases into this batch when the tax examiner commits the PC.

  2. The cases in Batch Type 89002 are monitored by tax examiners.

  3. Cases are transferred from Batch Type 89002 (transferred) when tax examiners request the cases to complete processing.

4.19.2.5.62  (09-01-2003)
Batch Types 90, 91 and 92 (Employee Cases)

  1. Employee cases are suspensed and worked from Batch Types 90, 91, and 92 by designated employees.

4.19.2.5.63  (09-01-2008)
Batch Type 93 (Declared Disaster)

  1. Cases identified, usually by the system, as meeting disaster criteria are built into Batch Type 93. These cases remain in Batch Type 93 until the system expiration date is met and the next action can be taken on the case.

  2. Batch Type 93 requires an expiration date. After the clerk enters the first SSN to the batch, the system assigns the appropriate date.

  3. Only one expiration date can be assigned to a batch.

  4. Cases meeting disaster criteria are built into Batch Type 93 as follows:

    • 93001–299 Screening Disaster Suspense

    • 93300–399 CP 2501 Disaster Suspense

    • 93400–699 CP 2000 Disaster Suspense

    • 93700–799 CP 2000 Statutory Prep Disaster Suspense

    • 93800–899 Stat Disaster Suspense

    • 93900-999 Stat Default Suspense

      Note:

      Disaster batches cannot be closed until after the expiration date. These batches need to be held and monitored until the date has expired.

      Note:

      Auto generated notices and Virtual cases may or may not have a physical case file.

  5. If a response is received for a tax year 2004 case in Batch Type 93, route the case and response to the designated tax examiner.

    Note:

    Tax year 2005 and subsequent cases can be built to a response batch from Batch Type 93.

  6. After the expiration date has expired, close the batch using the CLOSED menu option. The system updates the batch status to AB, check for New Actions and generate an Undeliverable New Action Listing for Batch Type 93700–799. See IRM 4.19.2.9.31 for additional information about the listing.

  7. Print the Undeliverable New Action Listing, pull the cases displayed and batch to Cases With New Actions Batch Type 84500–799.

  8. After the cases have been batched, close the batch by using the Close Batch option.

    Note:

    When Disaster batch 93900-999 is closed, the system transfers the cases to the last TE that handled the case; separate these cases by location and route to the appropriate unit.

  9. After the batch has been CLOSED, update the batch status to BF. All Batch Types 93 must be verified to continue processing. See IRM 4.19.2.6.1 for more information about the Verification of Process Codes.

4.19.2.5.64  (09-01-2008)
Batch Type 94 (Fraud Referral Suspense)

  1. When the tax examiner determines a case meets potential fraud criteria, IPC 3F, 6F, or 8F is assigned. The AUR System automatically moves cases with these IPCs to Fraud Referral Suspense Batch Type 94 during systemic batch disassembly.

    Note:

    Auto generated notices and virtual cases may or may not have a physical case file.

  2. New labeled case folders are not generated for cases in this batch.

  3. Batch Type 94 is made available for the Examination Function to review.

  4. The Examination Operation should provide directions for handling those cases reviewed and selected for Examination.

  5. Cases that have been reviewed and not selected by the Examination Function are batched to 2nd Response Unit Suspense Batch Type 54 (IPC 3F), 56 (IPC 6F), or 76 (IPC 8F).

    Exception:

    Batch Types 54, 56 and 76 have been set to Reserved for tax years 2006 and subsequent processing. TY 2006 and subsequent cases reviewed and not selected by Examination are transferred to the TE that assigned the IPC 3F, 6F or 8F.

4.19.2.5.65  (09-01-2008)
Batch Type 95 (Review)

  1. Use the Notice Letter Weekly Report to select the 500xx batch(es) for the CP 2000 Notice Review.

    Note:

    The batch(es) should be the last listed on the report, i.e. the batch(es) containing those cases updated to RB status the previous week.

  2. Use the chart below to determine the sample size and " skip" interval to use in pulling the cases. Counting every case to identify the sample is not necessary as long as the sampled cases are pulled at regular approximated intervals. Start pulling each weeks sample at a different point in the notice date, i.e. at approximately the 10th case, then the 5th, then the 15th, etc.

    Note:

    Virtual and AGN cases will not have a physical file to pull.

    If the Notice volume is between these two numbers: Sample this many cases:
    7,501 or greater   270
    2,001 7,500 261
    1,001 2,000 238
    501 1,000 213
    301 500 176
    201 300 142
    151 200 115
    115 150 96
    1 114 100% or 96, whichever is less

  3. Cases are assigned to Batch Type 95 by scanning or key entry. There are six types of review batches. They are:

    • Batch Type 95001–199: Reserved

    • Batch Type 95200–399: CP 2000 Notice Review

    • Batch Type 95400–499: CP 2501 Reserved

    • Batch Type 95500–599: CP 2000 Sort Code Review

    • Batch Type 95600–799: Pre Statutory Notice Review

    • Batch Type 95800–999: Stat Recomp/Sort Code Review

  4. Once the maximum volume has been reached, or the volume of the batch is at a point where the user does not want to add additional SSNs:

    1. Close the batch using the CLOSE menu option. The batch status updates to AB.

    2. The batch is ordered and worked by the designated technical unit(s).

4.19.2.5.66  (09-01-2003)
Batch Type 96 (Closure)

  1. The system automatically moves cases with closing process codes to Batch Type 96 during system disassembly.

    Note:

    Take appropriate action for cases with no new correspondence that are identified as Batch Type 9600X.

  2. Correspondence received for closed cases assigned to Batch Type 9600X for tax years 2005 and subsequent can be built to Batch Type 81, Reconsiderations.

  3. Batch Type 96 has been segmented to identify cases that have been through the reconsideration process:

    1. Batch Type 96001 - designates a closed case.

    2. Batch Type 96002 - designates a reconsideration case, returned to the AUR closed file.

      Note:

      Cases in Batch Type 96002 can be built to Batch Type 81.

4.19.2.5.67  (09-01-2008)
Batch Type 97 (Lost Response Suspense)

  1. Cases with a systemic indication that a response has been received but cannot be located to associate with the correct case can be assigned to Lost Response Suspense Batch Type 97. It is recommended that after searching for the response, mark the case folder "LR" and leave it in the disagreed response batch.

    Exception:

    When lost responses are identified in Batch Type 51 and 71, write "LR" on the case folder, input IPC "RF" and build to the appropriate disagreed response batch or transfer to the designated tax examiner.

    Note:

    Auto generated notices and virtual cases may or may not have a physical case file.

  2. When IPC LR (Lost Response) is input, the system moves the case to Batch Type 97. If the case was previously in a suspense batch (e.g., Batch Type 40 or Batch Type 50), the case should be updated to IPC RF before inputting IPC LR.

  3. When the response is located, batch to the appropriate response batch or transfer to the designated TE.

    Note:

    Local management makes the determination when and how to use IPC LR.

4.19.2.5.68  (09-01-2008)
Batch Type 98 (Lost Case Suspense)

  1. These are SSNs/cases where the physical case file cannot be located. When the IPC LC (Lost Case) is input, the system moves the SSNs to Lost Case Suspense, Batch Type 98.

  2. If the case was previously in a suspense batch (e.g., Batch Type 40 or Batch Type 50), the case should be updated to IPC RF before inputting IPC LC.

    Caution:

    Ensure that the case is not an AGN or Virtual case prior to input of IPC LC.

  3. When the case is located, transfer the case to a designated UID. If the case was previously in a suspense batch (e.g., Batch Type 40 or Batch Type 50), the case should be updated to IPC RF and then built to the appropriate batch for processing.

4.19.2.5.69  (09-01-2007)
Batch Type 99 (Unassociated Response Suspense)

  1. Responses where the case file cannot be located and associated with the response are assigned to Unassociated Response Suspense Batch Type 99. When the IPC UR (Unassociated Response) is input, the system moves the case to Batch Type 99.

    Exception:

    Batch Type 99 and IPC UR are not valid (have been set to "Reserved" ) for tax years 2006 and subsequent cases. The information below is for tax years prior to 2006.

  2. If the case was previously in a suspense batch (e.g., Batch Type 40 or Batch Type 50), the case should be updated to IPC RF before updated to IPC UR.

  3. When the response is located, transfer the case to a designated UID. If the case was previously in a suspense batch (e.g., Batch Type 40 or Batch Type 50), the case should be updated to IPC RF and then built to the appropriate batch for processing.

    Note:

    Local management determines when and how to use IPC UR.

4.19.2.6  (09-01-2008)
Batch Disassembly

  1. Disassembly is the function of verifying process codes and distributing cases to their appropriate destinations based on those process codes. Clerks have the option of separating the cases by process code before, during or after verification.

  2. There are nine types of releases from a completed screening batch.

    • CP 2501 (PC 30)

    • CP 2000 (PC 55)

    • Rejected CP 2000s, Amended CP 2000s, PC 57, Recomps (PC 59 and PC 95 cases)

    • Research (IPCs 0A and 0E)

    • Miscellaneous Referrals (IPC 0D)

    • Transfers to Examination (PC 11–14) and Criminal Investigation (PC 25)

    • Manual Interest Cases (IPC MI)

    • Manual Cases (IPC MC)

    • Closures

  3. There are nine types of releases from CP 2501 Response Batches.

    • CP 2000s: PC 57

    • No Changes: PCs 47, 51 and 52

    • Adjustments: PC 53

    • Transfers to Examination (PC 35–45) and Criminal Investigation (PC 46)

    • Miscellaneous Referrals: IPC 3D

    • Letters: IPCs 3L and 3S

    • Manual Interest: IPC MI

    • Manual Case: IPC MC

    • Fraud Referrals: IPC 3F

  4. There are ten types of releases from completed CP 2000 Response batches.

    • No Change (PCs 70–74)

    • Adjustments (PCs 67–68)

    • Letters (IPC 6L and 6S)

    • Systemic Extensions (IPC 6X)

    • Recomputed Notices (PC 59)

    • Transfers to Examination (PC 62–64 and 66) and Criminal Investigation (PC 65)

    • Miscellaneous Referrals (IPC 6D)

    • Manual Case (IPC MC)

    • Manual Interest (IPC MI)

    • Fraud Referral (IPC 6F)

  5. There are nine types of releases from completed Statutory Notice Response Batches.

    • No Changes (PCs 91–93 and 96)

    • Adjustments (PCs 87–88)

    • Letters (IPC 8L)

    • Recomputed Notices (IPC 8M and PC 95)

    • Transfers to Appeals (PC 80) and Examination (PC 82–86)

    • Miscellaneous Referrals (IPC 8D)

    • Defaults (PC 90 and PC 94)

    • Manual Case (IPC MC)

    • Fraud Referral (IPC 8F)

    Note:

    Transfers (closures) to areas outside AUR are routed and documents are recharged.

4.19.2.6.1  (09-01-2008)
Verification of Process Codes

  1. The process codes input must adhere to systemic consistency checks. A process code in this context includes both Process Codes and Internal Process Codes. See Exhibit 4.19.2-4 for a list of the Process Codes. See Exhibit 4.19.2-3 which lists Internal Process Codes.

  2. The batch status must be BF (Batch Finished).

  3. Use the Verify PC Screen to verify the process code indicated on the folder, Form 4251 or work unit listing (Virtual batches). Verification can be done in sequence order or by process code. When verifying Disaster Batch Type 93, the most current PC may not be indicated on the folder or Form 4251. Use the SHOW PC's option in the Verification process.

    Note:

    If the clerk chooses the verify by Process Code option, the following process codes can be grouped together:

    • PCs 21-22, 24 and 26-29 (Pre-Notice Closures)

    • PCs 47, 51 and 52 (CP 2501 Closures)

    • PCs 55A (Amended), 57 and 59 (CP 2000)

    • PCs 70-74 (CP 2000 Closures).

  4. The system identifies seven error conditions during the verification of process codes. They are:

    1. New Transactions: Indicate "New Trans " on the case folder. Batch the case(s) to Cases With New Actions Batch Type 84 or transfer them to a designated UID.

    2. Payer/Agent: Indicate "PA" on the case folder. Batch the case(s) to Cases With New Actions Batch Type 84 or transfer them to a designated UID.

    3. Case Requested: Work these cases according to the Request Code W instructions. See IRM 4.19.2.2.21.

    4. Statute Imminent: Indicate"Statute " on the case folder. THESE CASES REQUIRE PRIORITY HANDLING. Transfer these cases back to the tax examiner.

    5. Disaster ZIP and Manual Interest: Indicate "DDMI" on the case folder. Batch the cases to Manual Interest Batch Type 61.

    6. Disaster ZIP and Expiration Date: Indicate "DD and Expiration Date" on the folder. Batch the cases into the appropriate Disaster Batch Type 93.

  5. Process codes may or may not have an associated assessment. If there is an auto assessment associated with the case, a warning message displays to assist in the physical sort of the cases. An assessment document prints if the tax examiner input a manual assessment.

    Note:

    When the COMPLETE option is selected, the system automatically prints the Auto Assessment Report and/or the Manual Assessment Documents.

  6. If the PC indicated on the Form 4251, case folder, or work unit listing (virtual batches) is different than the PC shown on the screen, change the PC on the Form 4251, case folder, or work unit listing (virtual batches) to match the PC on the screen.

  7. If a PC is not indicated on the Form 4251, case folder, or work unit listing (virtual batches) input any PC and the system displays the correct PC on the screen. If using the SHOW PC option, the system automatically displays the correct Process Code. Write the PC displayed on the screen on the Form 4251, case folder, or work unit listing (virtual batches) .

  8. If a case folder cannot be located for an SSN:

    Caution:

    Ensure that the case is not an AGN or Virtual case before following a - c below.

    1. Transfer the SSN/case to the applicable TE.

    2. Complete a Case Transfer Sheet indicating "Case not in batch " and designate which batch.

    3. Route to the technical unit.

  9. If an extra case is identified during the process code verification process:

    1. Access the Case History Screen to identify the correct Case Status/Batch Location.

    2. Route the case based on the AUR research.

4.19.2.6.2  (09-01-2007)
Cases in Error

  1. After the PCs for all SSNs in a batch have been verified, the batch status is updated to RB. The system displays the Cases in Error Screen if error conditions are present. The Cases In Error Report can be printed from either the Main Reports menu or the Batch Status/Location menu. See IRM 4.19.2.9.8 for additional information about the report.

  2. An (*) indicates which error conditions are present. An SSN can have one or more error conditions present.

  3. The following conditions prevent the system from updating the batch status to RB. They are:

    1. New Transactions: Indicate "New Trans " on the case folder. Batch the case(s) to Cases With New Actions Batch Type 84 or transfer them to a designated UID.

    2. Payer/Agent: Indicate "PA" on the case folder. Batch the case(s) to Cases With New Actions Batch Type 84 or transfer them to a designated UID.

    3. Request Case: Work these cases according to the Request Code "W" instructions in See IRM 4.19.2.2.21., Request Case.

    4. Process Codes Not Verified: Work these cases using the VERIFY PC menu option to verify the PCs on the SSNs listed. See IRM 4.19.2.6.1, Verification of Process Codes, for additional instructions.

    5. Action Required: Indicate "AR" on the case folder. Batch the case(s) to Cases With New Actions Batch Type 84 or transfer them to a designated UID.

  4. After the error conditions have been resolved, update the batch status to RB. See IRM 4.19.2.6.3, Release Batch.

4.19.2.6.3  (09-01-2006)
Release Batch

  1. After all the PCs have been verified on all SSNs within the batch, the batch status must be updated to RB.

    Caution:

    Ensure that once begun, all actions to complete the update to RB are completed - through <COMMIT>. Failure to do so prevents other users from using the Update Status to RB.

  2. Use the STATUS/LOCATION option to update the batch status to RB.

  3. The system assigns the date for the Notices/Letters being released.

    Note:

    The system regulates and monitors the number of notices/letters released each week based on the weekly mailout volume input by the AUR Coordinator.

  4. Print the Suspense Summary Report and the PC-Sequence-SSN Batch Listing after updating the batch status to RB.

    1. Attach the Suspense Summary Report to the batch. The summary is used to place the cases in the appropriate suspense file. See IRM 4.19.2.9.28 for more information about the report.

    2. The PC-Sequence-SSN Batch Listing can be used to verify the contents of the batch. See IRM 4.19.2.9.7.1 for additional information about the listing.

    3. Refile PC 95 and IPCs 8L, 8M, and PHCALL cases in the original Stat Date/CSN order.

4.19.2.6.4  (09-01-2008)
Printing of Case Information by Batch

  1. Based on the Process Code (11-14, 18, 25, 35, 36, 38, 44, 46, 62-66, 80, 82-86 and MC) the system generates the following case contents for printing:

    • Tax Account

    • Information Returns

    • Case Notes

    • Case History

    • CP 2000 Notice

    • CP 2501 Notice

  2. The system indicates if there are manual assessment documents in the batch to print.

  3. After verification of the process codes and before the batch status is updated to RB:

    1. Select the PRINT menu option to print the above information.

    2. Associate the printed information with the applicable case.

  4. Substitute charge outs for AGN cases can be printed.

    1. Select Reports.

    2. Select return charge out.

    3. Enter the batch number (the system displays a message if the batch number won't generate the substitute charge) or

    4. Enter individual SSNs.

4.19.2.6.5  (09-01-2003)
Sort Codes

  1. Sort Indicators may be used by the tax examiner to indicate to the clerk that the associated case requires special handling.

    • Sort Indicator 1: used for enclosures

    • Local Sort Indicators: process per Campus directions

  2. The Sort Code process is worked by clerical. Tax examiners identify cases requiring special handling (prior to mailout) during the screening or response phase of case analysis. The tax examiner may input up to five sort codes.

  3. The CP 2000 or CP 2000 Recomp Notice generates with the applicable Sort Codes printed in the upper right corner of the notice. The Sort Codes display in Numerical/Alpha Sequence.

    1. The mail copies of the CP 2000s generated with Sort Codes are routed to the AUR Function. The mail copies are sorted by the CSN.

    2. Retrieve the case from the current suspense batch.

      Note:

      There may be more than one mail copy of the notice for the same taxpayer. The bar code on the notice displays an indicator to identify which copy of the notice was generated for the Primary (1), Spouse (2), and POA (3). The Primary, Spouse, and POA MUST receive exactly the same information.

    3. Ensure the enclosures are sent with the CP 2000.

    4. Prepare and release envelopes for mailout.

      Note:

      If a notice is not to be mailed, use the STOP NOTICE option to update the Case History Screen to indicate the notice was not mailed.

    5. Return the case to AUR suspense.

4.19.2.7  (09-01-2003)
Process Code Definition

  1. Process Codes (PC) consist of two numeric characters. Process codes reflecting program selection, notice and amended notice issuance, assessments, and closures are uploaded to IDRS. The AUR system provides an automatic upload of process code updates to IDRS when the batch is in DC (Disassembly Complete) status. Process codes are associated with the Transaction Code (TC) 922 on IDRS. Each process code posted to IDRS updates the TC 922 date.

4.19.2.7.1  (09-01-2003)
Process Codes 01-10

  1. Most of the Process Codes in this group are "Reserved " . See Exhibit 4.19.2-4 for brief explanations of Process Codes 01-10.

4.19.2.7.2  (09-01-2007)
Process Codes 11-13 (Campus Examination Transfer/Closure)

  1. Cases identified by the tax examiner to be transferred to Campus Examination are closed with PCs 11, 12, and 13.

  2. Based on the PC assignment, the system generates case contents which are printed and assembled with the case for routing to Examination.

  3. When the batch has been disassembled, route the cases and recharge the documents to the Examination Operation.

4.19.2.7.3  (09-01-2007)
Process Code 14 (Fraud Transfer/Closure)

  1. Tax examiners assign PC 14 when the Examination Operation has determined that potential Fraud exists. Process Code 14 is an AUR closure.

  2. Based on the PC assignment, the system generates case contents which printed and are assembled with the case for routing to Fraud.

  3. When the batch has been disassembled, route the cases and recharge the documents to the Campus Fraud Coordinator.

4.19.2.7.4  (09-01-2003)
Process Code 15 (Military Action and Disaster)

  1. This closing process code is assigned by the tax examiner for Military Action and Disaster cases.

  2. If the tax examiner inputs an assessment, the system creates either an automatic or manual assessment record.

  3. Cases with manual assessments are routed to the designated area for IDRS input.

  4. If there is no assessment, route the case(s) to the appropriate Federal Records Center (FRC).

  5. Clerks verify where to send the Forms 4442 discovered in these cases.

4.19.2.7.5  (09-01-2008)
Process Code 16 (Survey Excess Inventory)

  1. Cases assigned this closing process code are cases that Headquarters has identified as cases not to be worked.

    Note:

    TY 2007 cases closed with a Process Code 16 are designated as Soft Notice (CP 2057). Special handling is required to forward all responses and undeliverables to the designated AUR tax examiners in either Atlanta or Philadelphia, based on the return address of the CP 2057.

  2. This process code is only used at the direction of Headquarters. Refile the case(s) to the appropriate FRC by routing to the Files Operation.

4.19.2.7.6  (09-01-2003)
Process Code 17 (Headquarters Identified Program Problems)

  1. Headquarters assigns the use of this closing process code for cases identified as having some type of associated program problem. The cases are not worked.

  2. This process code is only used at the direction of Headquarters. Refile the case(s) to the appropriate FRC by routing to the Files Operation.

4.19.2.7.7  (09-01-2004)
Process Code 18 (Killed in Terrorist Actions (KITA), Hostage (HSTG) and Killed in Action (KIA) Cases)

  1. Process Code 18 is a closing code. Route the case(s) to the appropriate FRC through the Files Operation.

  2. Clerks verify where to send Forms 4442 discovered in these cases with the tax examiner.

4.19.2.7.8  (09-01-2003)
Process Code 20 (Adjustment to Withholding/Excess Social Security Tax)

  1. Tax Examiners close cases with PC 20 when it has been determined that an adjustment to withholding and/or excess social security is appropriate. These cases can be processed without issuing an AUR notice (no tax increase above tolerance involved).

  2. The system creates either an automatic assessment record or a manual assessment record and prompts the clerk to print an auto assessment list if there are PC 20 cases in the batch.

  3. Cases with manual assessments are routed to the designated area for IDRS input.

  4. Cases with assessments must be routed to the Campus Document Retention, Files Function, for association of the Form CF 5147.

4.19.2.7.9  (09-01-2008)
Process Codes 21-24 and 2629 (Pre-Notice Closures)

  1. The tax examiner assigns this closing process code when the discrepancy has been resolved before a notice is issued.

  2. The clerk refiles the case(s) to the appropriate FRC by routing to the Files Operation.

4.19.2.7.10  (09-01-2007)
Process Code 25 (Criminal Investigation Transfers)

  1. Tax examiners assign closing PC 25 when it has been determined the screening case should be transferred to Criminal Investigation (CI). This is an AUR closing process code.

  2. Based on the PC assignment, the system generates case contents which are printed and assembled with the case for routing to CI.

  3. When the batch has been disassembled, route these cases and recharge the documents to Criminal Investigation.

4.19.2.7.11  (09-01-2003)
Process Code 30/30A (CP 2501/Amended CP 2501)

  1. Cases are assigned PC 30/30A when the tax examiner has determined that a CP 2501/Amended CP 2501 Notice should be issued.

  2. The system automatically moves cases to CP 2501 Suspense Batch Type 40.

  3. These cases receive folders and are filed in CSN order.

4.19.2.7.12  (09-01-2003)
Process Code 34 (CP 2000 Not Mailed After CP 2501)

  1. The tax examiner assigns PC 34 when it has been determined that a CP 2000 Notice should NOT be mailed after a CP 2501. The tax examiner enters a PC 34 and then may continue case processing.

  2. This process code is not part of the verification process.

4.19.2.7.13  (09-01-2007)
Process Codes 35, 36 and 38 (Campus Examination Transfer/Closure)

  1. Cases identified by a tax examiner as requiring transfer to Campus Examination are closed with PCs 35, 36 and 38 . These are AUR closing process codes.

  2. If the tax examiner inputs an assessment, the system creates either an automatic or manual assessment record.

  3. Based on the PC assignment, the system generates case contents which are printed and assembled with the case for routing to Examination.

  4. Cases with manual assessments are routed to the designated area for IDRS input.

  5. After the batch has been disassembled, route the cases and recharge the documents to the Examination Operation.

4.19.2.7.14  (09-01-2007)
Process Code 39 (Stolen Identity-No Change Closure)

  1. This no change closing process code is assigned by tax examiners when they determine that the underreporter issues are a result of identity theft.

  2. If there is no assessment, refile the case to the appropriate Federal Records Center.

    Caution:

    If there is no manual or automatic assessment record for an ELF return, transfer the case to the TE who assigned the PC for input of a TC 290-0.

  3. If the tax examiner inputs an assessment (TC 290-0), the system creates an automatic or manual assessment record to refund any payment received from the taxpayer.

  4. Cases with manual assessments are routed to the designated area for IDRS input.

  5. Cases with assessments must be routed to the File Function for association of the Form CF 5147.

4.19.2.7.15  (09-01-2007)
Process Code 44 (Fraud Transfer/Closure)

  1. Tax examiners assign PC 44 when the Examination Operation has determined that potential Fraud exists. Process Code 44 is an AUR closure.

  2. Based on the PC assignment, the system generates case contents which are printed and assembled with the case for routing to Fraud.

  3. When the batch has been disassembled, route the cases and recharge the documents to the Campus Fraud Coordinator.

4.19.2.7.16  (09-01-2007)
Process Code 46 (Criminal Investigation Transfers)

  1. Cases are assigned PC 46 when the tax examiner has determined the CP 2501 case should be transferred to the Criminal Investigation Function. This is an AUR closing process code.

  2. If the tax examiner inputs an assessment, the system creates an automatic or manual assessment record.

  3. Based on the PC assignment, the system generates case contents which are printed and assembled with the case for routing to CI.

  4. Cases with manual assessments are routed to the designated area for IDRS input.

  5. When the batch has been disassembled, route these cases and recharge the documents to the Criminal Investigation Function.

4.19.2.7.17  (09-01-2007)
Process Codes 47, 51, and 52 (CP 2501 Closures)

  1. These process codes are used by the tax examiner to close cases when the taxpayer response to a CP 2501 resolves the discrepancy.

  2. If there is no assessment, the clerk refiles the cases to the appropriate FRC by routing to the Files Operation.

    Caution:

    If there is no manual or automatic assessment record for an ELF/EZ return, transfer the case to the TE who assigned the PC for input of a TC 290-0.

  3. If the tax examiner inputs an assessment, the system creates an automatic or manual assessment record.

  4. Cases with manual assessments are routed to the designated area for IDRS input.

  5. Cases with assessments are routed to the Files Function for association of the Form CF 5147.

4.19.2.7.18  (09-01-2004)
Process Code 48 (HQ Identified-No Change Closure)

  1. Headquarters assigns the use of this closing process code for cases identified as having some type of associated program problem. AUR case processing stops.

  2. This process code is only used at the direction of Headquarters. Refile the case(s) to the appropriate FRC.

4.19.2.7.19  (09-01-2003)
Process Code 53 (1040X Closures)

  1. This closing process code is used when the tax examiner has accepted the taxpayer's amended return in response to a CP 2501.

  2. The system creates an automatic or manual assessment record on cases closed with PC 53.

  3. Cases with manual assessments are routed to the designated area for IDRS input.

  4. Cases with assessments must be routed to the Files Function for association of the Form CF 5147.

4.19.2.7.20  (09-01-2003)
Process Code 54 (CP 2501 Notice Not Mailed)

  1. This process code is assigned when it has been determined that the CP 2501 Notice should not be mailed. The tax examiner enters PC 54 and then may enter PCs 11-15, 18, 20-22, 24-29, 30, or 55 as appropriate.

  2. This process code is not part of the verification process.

4.19.2.7.21  (09-01-2007)
Process Code 55 (CP 2000)

  1. The tax examiner assigns this process code when it has been determined that the case requires a CP 2000 Notice.

  2. The system automatically moves cases to CP 2000 Suspense Batch Type 50 after process code verification and the batch is updated to status RB.

  3. These cases are filed in CSN order.

  4. Auto-Generated Notice PC 55 cases are systemically moved into CP 2000 Auto-Generated Notice Suspense Batch Type 505xx.

4.19.2.7.22  (09-01-2003)
Process Code 55A (Amended CP 2000)

  1. The tax examiner assigns this process code when it has been determined that the case requires an Amended CP 2000 Notice.

  2. The AUR System automatically moves these cases to Recomputed CP 2000 Suspense Batch Type 55.

  3. The cases are filed in CSN order.

4.19.2.7.23  (09-01-2003)
Process Code 57 (CP 2000 After a CP 2501)

  1. When the tax examiner determines from the taxpayer's CP 2501 response that a CP 2000 Notice is now required, a PC 57 is input.

  2. The system automatically moves cases to Recomputed CP 2000 Suspense Batch Type 55 when the tax examiner assigns a PC 57 to the case(s).

  3. These cases are filed in CSN order.


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