Internal Revenue Manual - 4.71.8 EP Claims

Part 4. Examining Process
Chapter 71. Employee Plans Examination of Returns
Section 8. EP Claims

4.71.8.1 (10-31-2002)
Claims and Miscellaneous Procedures for Case Processing

The following section provides guidance and miscellaneous procedures covering the following topics:
1. Claims, including surveyed claims, claims allowed in full, and partial or full claim disallowance.
2. Collection of deficiencies and installment agreements.
3. Interest abatement of claims.

4.71.8.2 (10-31-2002)
Claim for Refund

A claim is a request for a refund or abatement of tax and/or penalties previously assessed. A claim can be filed in various forms, such as:
1. Forms 843, 1040X, 1045, 1120X, 1139, or amended Forms 5330 or 990-T showing a decrease in tax liability. See Exhibit 1 for a completed example of Form 843 and instructions.
2. A letter or other document that contains all facts necessary to decide that a reduction in tax liability is involved. This is referred to as an informal claim. An informal claim must be in writing.
In EP, claims are generally filed for:
- Form 5330, Return of Excise Taxes Related to Employee Benefit Plans.
- Form 990-T, Exempt Organization Business Tax Return.
- Form 1040, Individual Income Tax Return, on discrepancy adjustment cases.
- Form 1120, Corporate Tax Return, on discrepancy adjustment cases.

4.71.8.3 (10-31-2002)
Statute of Limitations for Claims

According to IRC section 6511(a), a claim must be filed before the later of:
1. Three years from the date on which the return was filed,
2. Or two years from the date on which the tax was paid.
The filing of a claim for refund keeps the statute open only with respect to the claim. If other issues exist or if the statute on the original return is about to expire, a statute extension should be secured for the return on which the claim is based. If the statute of limitations has expired, adjustments to the return may be made only up to the amount of the claim.
The statute of limitations for filing a claim is suspended under certain circumstances, as provided by IRC 6511(h), enacted into law under section 3202 of the RRA.
1. If a taxpayer makes a credible claim that he/she is unable to manage his/her financial affairs by reason of a medically determinable physical or mental impairment (i.e. "financially disabled" ) as defined in IRC 6511(h)(2), additional time may be allowed to file a claim.
2. The statute of limitations will be suspended for the period of time the taxpayer is "financially disabled" , if the statute has not expired before July 22, 1998.

4.71.8.4 (10-31-2002)
Working a Claim

In general, a claim should be worked as a limited scope correspondence exam. Special processing instructions are noted herein.
Research should be conducted at the group level to ensure that all claim years being worked are properly established on AIMS and EPIC.
1. An AMDISA print should be secured to ensure that all years for which a claim has been filed, have been properly established on AIMS.
  - For Forms 5330, AMDISA prints should be secured both with and without an "N" after the EIN/SSN using an MFT of 76. This will verify whether the return was established on Master File or Non-Master File.
2. If it is determined that a claim has not been established:
  1. Form 5597 should be used to establish claims related to Form 5330 posted by the Service Center on Master File, Form 1040, Form 1120, and Form 990-T.
  2. Form 5648 should be used to establish a claim related to a Form 5330 that was posted by the Service Center on Non-Master File.
3. Claims should be established on AIMS with:
  1. A source code of 30.
  2. A project code of 070.
  3. A statute of limitations alpha code of "AA" (i.e. 12AA2003).
  4. The claim amount reflected.
Form 6490 (the monthly ETS time sheet) should reflect each year to which claim applies with the applicable activity code for the return being worked and the project code for claims. The project code for claims is 070.
A current transcript of the taxpayer’s account should be secured on all claims so that account activity can be carefully analyzed.
1. See IRM sections 4.71.2.2 and 4.71.2.3 for information on obtaining transcripts for both returns posted to Master File and Non-Master File.
2. See Document 6209, Section 7 for a description of Non-Master File transaction codes and Section 8 for a description of Master File transaction codes.
3. Contact the EP AIMS Coordinator if assistance is needed on reading the transcript.
If the amount claimed has already been refunded to the taxpayer by the Service Center, and the examiner agrees that the claim should be allowed, the examiner will close the case as a regular "no change" case.

4.71.8.5 (10-31-2002)
Claims Allowed in Full, No Taxpayer Contact

Claims may be closed after assignment without contacting the taxpayer or POA if the agent determines that the claim issue is clearly allowable in full and that the return does not otherwise warrant examination. Claims closed in this manner are hereinafter referred to as "surveyed" claims.
Generally, when there is no indication that the case was selected because of the contents of the return, the decision to "survey" can be reached by considering the claim issue only.
The only claims that may not be "surveyed" are those that require Appeals consideration, or which, if allowed would produce overpayments or credits requiring Joint Committee Review. IRC 6405 provides that Joint Committee Review covers refunds over $2,000,000.
When recommending allowance of a claim for refund without examination (the claim is being surveyed), prepare Form 1900 to explain the reasons. Form 1900 should also explain claim carry backs if carry backs are involved. See Exhibit 2 for an example of a completed Form 1900.
Letter 570(DO) should be used to inform the taxpayer of the allowance of the claim. See Exhibit 3 for an example of Letter 570. The letter should be prepared and left in the file for the closing unit to mail.
The case should be closed disposal code 34, Claims Allowed in Full (Surveyed).
Form 5650 is required to be completed if the claim being allowed relates to any Form 5330 return posted and established on AIMS as Non-Master File (NMF).
1. The following line items on Form 5650 should be completed: P7-18, P20-22, P24-29, P31-34, C, 13, 14, 21, 30, 31, 40, 50, 600, 601, 602, 603, 604, 609 and Remarks.
2. The following comments should be noted when completing these required line items on Form 5650:
1. P20-22: Enter the three digit plan number of the related plan.
2. Item 14: If the statute of limitations has been extended, enter the statute expiration date.
3. Item 40: Enter the project code of 070.
4. Item 50: Enter the examiner’s group number.
5. Item 600: Enter 512.
6. Item 601: Enter the examiner’s number.
  1. The first three digits are the Primary Business Code (PBC), also referred to as BOD code.
    
    401 for Northeast.
    
    402 for Mid-Atlantic.
    
    403 for Great Lakes.
    
    404 for Gulf Coast.
    
    405 for Central Mountain.
    
    406 for Pacific Coast.
    
    410 for Classification.
  2. The fourth and fifth digits are the last two digits of the agent’s group number.
  3. The sixth digit is always 0.
  4. The seventh and eighth digits are the two digit specialist number assigned to the agent.
  Example:
  
  An agent in group 7653 in Dallas, TX with specialist number 25 would have an examiner number of 40453025.
7. Item 602: Enter the amount of the claim allowed as a negative to tax.
8. Item 604: Enter any adjustment to refund penalties as a negative.
9. Item 609: Enter plan type of the related plan.
10. Remarks: Enter "Claim allowed; Issue refund of tax with applicable penalties and interest" .
Form 5599 is required to be completed if the claim being allowed relates to a Form 5330 established on Master File, Form 990-T, Form 1040, or Form 1120.
1. The following line items on Form 5599 should be completed: P7-18, P20-22, P24-29, P31-34, P52-54, C, 12, 13, 14, 21, 40, and 50.
2. The following comments should be noted when completing these required line items on Form 5599:
  1. P52-54: Enter the three digit plan number of the related plan if the claim is for a 5330 return on Master File.
  2. Item 12: Enter the amount of the claim allowed as a "Tax Liability Adjustment Decrease in Tax Dollars" with a Transaction Code of 301.
  3. Item 12: If penalties had previously been assessed, enter the amount to be abated as a negative (-). See Section 8 of Document 6209 for applicable transaction codes.
  4. Item 14: If the statute of limitations has been extended, enter the statute expiration date.
  5. Item 40: Enter the project code of 070.
  6. Item 50: Enter the examiner’s group number.
Form 3198, Special Handling Notice, should be completed and attached to the outside of the case file with the following information:
1. Name of the taxpayer.
2. Employer ID number.
3. Form number.
4. Plan year and plan number.
5. Special instructions/information pertaining to the case.
  - Indicate if the case contains a Power of Attorney.
  - Include these words: "Amended Return Has Been Considered" .
  - Indicate if there are other related years; if so, list the years.
  - Indicate if the case (or any related case) has less than six months remaining on the statute of limitations date.
  - An explanation of special circumstances involved such as carry backs.
  Note:
  
  This information helps alert reviewers and ESS for special processing.

4.71.8.6 (10-31-2002)
Processing a Claim when Taxpayer Contact Is Made

If it is determined that it is necessary to contact the taxpayer (or POA) to obtain additional information, update the status code on AIMS to status 12 using Form 5595.
Verify that the statute date alpha codes on AIMS are "AA" or "BB" (as applicable), using the month and year of the statute expiration (i.e. 12AA2003).
Requests for additional information from the taxpayer may be made by telephone or by an individually designed letter. See Exhibit 5 for an example of a letter to obtain additional information.
Forms 5772 and 5773 should be utilized along with any supplemental workpapers necessary to properly document the issue.
Form 3198, Special Handling Notice, should be attached to the outside of all case file indicating the following:
1. Name of the taxpayer.
2. Employer ID number.
3. Form number.
4. Plan year and plan number.
5. Special instructions/information pertaining to the case.
  - Indicate if the case is subject to mandatory review.
  - Indicate if the case contains a Power of Attorney.
  - Indicate that the case involves a claim for refund.
  - Indicate if there are other related years; if so, list the years.
  - Indicate if the case (or any related case) is unagreed with less than one year remaining on the statute of limitations date. Follow the Statute Control Procedures found in IRM 4.71.9.
  - Indicate if the case (or any related case) is agreed or a "no change" case with less than six months remaining on the statute of limitations date.
  - Indicate if there is a partial agreement.
  - Provide any special instructions involved.

4.71.8.6.1 (10-31-2002)
Taxpayer Contact Made, Claim Allowed in Full

If, after receiving additional information from the taxpayer (or POA), it is determined that the claim should be allowed in full, the case should be processed as follows:
1. If the claim relates to a Form 5330 return, Form 5438 will be prepared in duplicate. A statement must be included regarding the allowance of the claim in the "Other Information" section. "Other Information" will include the statement: "Claim Allowed in Full. On ___(date) you filed a claim for a refund of $___ (amount) for ___(year). As the result of our examination, we allowed your claim in full, as shown in this report." A copy of the completed Form 5438 will be included in the workpapers and a copy mailed to the taxpayer with the closing letter.
2. It is not necessary to secure agreement on Form 870 unless other agreed adjustments in addition to the issue in the claims are involved.
3. Claims allowed in full are closed to the EP closing unit in Baltimore.
4. Letter 570(DO) should be used to inform the taxpayer of the allowance of the claim. See Exhibit 3 for an example of Letter 570. The letter should be prepared and left in the file for the closing unit to mail.
5. Form 5650 is required to be completed if the claim being allowed relates to any Form 5330 return posted and established on AIMS as Non-Master File (NMF).
  1. The following line items on Form 5650 should be completed: P7-18, P20-22, P24-29, P31-34, C, 13, 14, 21, 28, 30, 31, 32, 33, 40, 50, 600, 601, 602, 603, 604, 606, 607, 608, 609, 610 and Remarks.
  2. The following comments should be noted when completing the required line items on Form 5650:
    
    Item 13: Enter a disposal code of 03.
    
    Items 606, 607 and 608: Enter 1.
    
    See paragraph 7 of section 4.71.8.4 for additional comments.
6. Form 5599 is required to be completed if the claim being allowed relates to a Form 5330 established on Master File, Form 990-T, Form 1040, or Form 1120.
1. The following line items on Form 5599 should be completed: P7-18, P20- 22, P24-29, P31-34, P52-54, C, 12, 13, 14, 21, 23, 30, 31, 32, 33, 40, and 50.
2. The following comments should be noted when completing the required line items on Form 5599:
  
  Item 13: Enter a disposal code of 03.
  
  Item 32: Applicable codes are as follows:
  
  Grade 9:391R.
  
  Grade 11:311R.
  
  Grade 12: 321R.
  
  Grade 13: 331R
  
  See paragraph 8 of section 4.71.8.5 for additional comments.
  
  See Exhibit 4 for an example of a completed Form 5599 closed status 03.

4.71.8.6.2 (10-31-2002)
Claims Disallowed in Full or in Part

An individually designed letter (see Exhibit 6) should be prepared to notify the taxpayer of the disallowance or partial disallowance of the claim.
1. IRC 6402(l), added to the Code by RRA section 3505, entitIes taxpayers to an explanation of the specific reason for the disallowance or partial disallowance of a claim for refund. This information will enable the taxpayer to respond appropriately to the IRS. A Revenue Agent’s Report (RAR) should be prepared and attached to the letter. The RAR should include:
  1. A description of the facts surrounding the issue,
  2. An explanation of the law pertaining to the issue,
  3. An explanation of the government’s position, and
  4. Calculations clearly showing how the partial disallowance was determined if the claim involves a partial disallowance.
Form 2297, Waiver of Statutory Notification of Claim Disallowance, is applicable in all cases in which there is a full or partial disallowance of a claim. See IRM 4.71.8.7. See Exhibit 7 for an example of a completed Form 2297.
Form 3363, Acceptance of Proposed Disallowance of Claim for Refund or Credit, is used in all cases where a claim is disallowed in full or in part and no other adjustments to the tax liability are necessary. See IRM 4.71.8.8. See Exhibit 8 for an example of a completed Form 3363.
Where the claim is disallowed in full and additional tax assessments are also proposed, use Form 2504 (see Exhibit 9) when the claim involves excise taxes and Form 870 (see Exhibit 10) or Form 4549-E for all other taxes.
If a claim is received on an open Form 1040 or Form 1120 discrepancy adjustment, Form 4549-E should be utilized to address the claim. See IRM 4.71 .4.10.
The individually designed letter, the explanation of the disallowance, Form 2297, a copy of the claim, and Form 3363 should be mailed to the taxpayer, giving the taxpayer 15 days to respond.
If there is no response after 15 days, an attempt should be made to contact the taxpayer by telephone.
If the taxpayer fails to sign and return Forms 3363 and 2297 within a reasonable time, the following steps should be taken:
1. Prepare the Claims 30-Day Letter (see Exhibit 11) with the following attachments:
  1. A Revenue Agent Report (RAR) in a facts, law, government position format,
  2. Form 2297,
  3. Form 3363,
  4. Pub 1,
  5. Pub 594,
  6. Notice 1214
  7. Pub 1020.
    
    Note:
    
    The letter and attachments should be placed in the case file. EP Mandatory Review Staff will mail the letter to the taxpayer.
2. Complete Form 5650 or Form 5599 (whichever is applicable) as specified in paragraphs 1 e and f in section 4.71.8.6.1 above, with these exceptions:
  1. Item 12 of Form 5599 would be blank if the claim is disallowed in full and there is no additional assessment.
  2. The disposal code on item 13 will be 07 or 10 as applicable.
  3. The claim amount disallowed will be listed on item 22 of Form 5599.
  4. The claim hours will be listed on item 23 of Form 5599.
  5. The claim type code will be listed on item 24 of Form 5599. Common codes:
    
    C for carry back or carry forward claims.
    
    E for claims involving excise tax.
    
    O for other claims.
  6. The comments in the Remarks section of the 5650 would also differ.
3. Close the case to EP Mandatory Review Staff
  1. Update the status code on AIMS to 52, "In transit between groups and review function"
  2. Attach Form 3198 to the outside of the case file, identifying the case as "Mandatory Review" , and notate: "Unagreed Claim" .
  3. If less than one year remains on the statute of limitations, see IRM 4.71.9, Statute Controls, for special instructions.
If the taxpayer signs and returns Form 2297 and Form 3363, the following steps should be taken:
1. Complete Form 5650 or Form 5599 (whichever is applicable) as specified in paragraph 8b of section 4.71.8.6.2 above, with these exceptions:
  1. Disposal code 01, Regulatory/Revenue Protection, should be used.
  2. The Remarks section of the 5650 would also differ.
2. Prepare Letter 2087 if the claim applies to Form 5330 or Letter 2511 (see Exhibit 12) if the claim applies to Form 990-T, with a copy of Forms 3363 and 2297 attached.
3. Close the case to the EP ESS unit in Baltimore.
  1. Update the status code on AIMS to 53.

4.71.8.7 (10-31-2002)
Form 2297

Form 2297, Waiver of Statutory Notification of Claim Disallowance, is applicable in all cases in which there is a complete or partial disallowance of a claim. See Exhibit 7 for Form 2297.
Attach to the applicable claim or amended return.

Note:

Where claims for multiple years are disallowed, attach Form 2297 covering all years to the claim or amended return covering the most recent year.
When completing Form 2297:
1. Enter the name, EIN or SSN, and address of taxpayer where indicated.
2. Taxable Period Ended — List each year for which a claim has been filed and disallowed in part or in full on separate lines as follows:
  - For a short period, reflect the beginning and ending date (i.e. 01/01/1999– 09/30/1999).
  - In all other cases, list the period ending date (i.e. 12/31/1999).
3. Kind of tax — Enter the type of tax covered by the return under examination, such as income or excise. It is not necessary to show the form number of the return under examination or to identify the type of income.
4. Enter the amount of the claim and the amount of the claim disallowed where indicated.
5. See instructions at the bottom of the form for taxpayer’s signature.

4.71.8.8 (10-31-2002)
Form 3363

Form 3363, Acceptance of Proposed Disallowance of Claim for Refund or Credit, is used in all cases where a claim is disallowed in full or in part and no other adjustments to the tax liability are necessary. See Exhibit 8 for Form 3363.

When completing Form 3363:

Enter the name, EIN or SSN, and address of taxpayer where indicated.
Year or period — List each year for which a claim has been filed on separate lines as follows:
- For a short period, reflect the beginning and ending date (i.e. 01/01/1999– 09/30/1999).
- In all other cases, list the period ending date (i.e. 12/31/1999).
Date claim filed — Enter date Form 843 or amended return was filed.
Kind of tax — Enter the type of tax covered by the return under examination, such as income or excise. It is not necessary to show the form number of the return under examination or to identify the type of income.
Amount of claim — Enter the amount of refund requested in the claim filed by the taxpayer. The rules for determining the amounts to be entered as claims under particular circumstances are as follows:
Amount of claim disallowed — Enter the amount of claim disallowed per Revenue Agent’s Report (RAR).
Amount of claim allowed — Enter the amount of claim allowed per RAR.
Signature — See instructions on form.

IF...		THEN...
a.	A claim states a definite amount as being claimed,	Enter this amount in the "amount of claim" space.
b.	An amended return shows the computation of the corrected amount as computed by the taxpayer,	Enter the tax as shown on the original return in the "amount of claim" space.
c.	A claim is filed for "$1 or more" and no details are shown as to the amount of reduction in income,	Enter $1 as "amount of claim" .
d.	A claim is filed for "$1 or more" and details are provided as to the amount of reduction in income but computation of amount of tax refund is not shown on the claim,	Compute the amount of the claim based upon reduction of income shown by the taxpayer and enter this figure as "amount of claim" .
e.	A claim is filed for "entire amount of tax paid" ,	Enter the entire amount of tax shown on the return.
f.	A claim is filed for "such amount as may be due" and details are shown as to the reduction in income and computation of the tax refund can be made,	Enter the computed figure in "amount of claim" space.

4.71.8.9 (10-31-2002)
Effect of Claim on IRC 4971 or 4975 Tax

IRC 4961 prohibits any levy or court proceeding for the collection of the 100% tax under IRC 4971 or 4975 pending the final resolution of court proceedings concerning the first tier tax under those sections if the taxpayer timely pays the first tier tax and files a claim for refund.
If it is determined that the first tier tax under IRC 4971 or 4975 should be imposed, solicit a delinquent return (Form 5330) and request payment of the tax.
If correction has not occurred at that time, advise the taxpayer that, if correction does not occur in a timely manner, any levy or court proceeding for the collection of the 100% tax will be prohibited pending the final resolution of court proceedings concerning the first tier tax if the taxpayer—
1. Pays the first tier tax, and
2. Files a claim for refund of the first tier tax within 90 days after the date when the 100% tax is assessed.

4.71.8.10 (10-31-2002)
Collection of Deficiencies and Installment Agreements

Procedures for processing payments received by TE/GE personnel and multifunctional installment agreements are contained in IRM 5.14, Installment Agreement. These procedures have been updated to include the applicable provisions enacted under the IRS Restructuring and Reform Act of 1998 (RRA).

4.71.8.11 (10-31-2002)
Abatement of Interest Due to IRS Delay or Error

IRC 6404(e)(1) was added by the Tax Reform Act of 1986 to provide for abatement of interest on deficiencies or payments when the IRS makes an error or delay in the performance of a ministerial act, as noted below.

Note:

This provision has been amended by RRA section 3305 See also, IRM 8.5 for additional information on this provision.
The IRS has discretionary authority to allow claims for abatement of interest when all of the following conditions are met:
1. The statutory period of limitations under IRC 6511 on filing a claim has not expired;
2. The claim relates to interest on taxes described in IRC 6212(a), such as income, estate, gift and excise taxes under Chapters 41, 42, 43, and 44. IRC 6404(e)(1) does not allow abatement of interest on employment tax deficiencies or payments)
3. Error or delay occurred;
4. Error or delay occurred in relation to the performance of a ministerial act, i.e., a procedural mechanical, processing-type act that does not involve making decisions or exercising judgment;
5. Error or delay occurred after the taxpayer was contacted in writing with respect to the examination, deficiency, or payment;
6. No significant aspect of the error or delay can be attributed to the taxpayer.

4.71.8.11.1 (10-31-2002)
Claims for Abatement of Interest

Requests for abatement of interest should be made by the taxpayer on Form 843, Claim for Refund.
1. The claim should be filed with the Service Center where the tax return was filed, or, if the identity of that Service Center is unknown, with the Service Center where the taxpayer’s most recent tax return was filed.
2. The claim should clearly state across the top "Request for Abatement of Interest under Rev. Proc. 87-42."
If the interest assessed resulted from the IRS’s error or delay in performing a single ministerial act that affected a tax assessment for multiple tax years or types of tax (e.g., where two or more tax years were under examination) only one Form 843 is required. Otherwise, a separate Form 843 should be filed for each tax period for each type of tax. It is not necessary to compute the dollar amount of interest for which abatement is requested. Rev. Proc. 87-42 provides taxpayers with instructions on completing Form 843.

4.71.8.11.2 (10-31-2002)
Processing Claims for Abatement of Interest

The Interest Adjustment Coordinator ( "IAC" ) at the appropriate Service Center is responsible for expeditiously processing and controlling IRC 6404(e)(1) claims. The IAC will:
1. Consolidate relevant information, forwarding cases to the group/function of origin for input when it appears the case file alone cannot clearly support a determination;
2. Establish the amount of interest to be abated (if recommending partial or full allowance) by referral to the EP ESS Unit;
3. Ensure that all required reports on interest abatement activities are completed and transmitted as may be required.
Except for when a claim for abatement is raised during an examination as discussed in paragraph (3) below, Forms 843 relating to tax assessments resulting from a EP examination will be forwarded to the Area with a current transcript.
1. The time period for the delay or error in performing the alleged ministerial act specified on the claim may be attributable to another function, such as Appeals, Division Counsel or Criminal Investigation activity.
2. Assessments originating from EP Examinations will be handled by the EP ESS Unit Interest Abatement Coordinator (IAC) with any necessary input from EP.
If the taxpayer raises the issue in the course of an examination and there is sufficient time remaining on the statutory period for assessment:
1. Secure a completed Form 843, Claim (or equivalent informal statement). In your workpapers, record this action as well as the relevant facts and circumstances;
2. Forward the claim and the case file (when the examination closes from the group and without regard to the closing determination) using Form 3210, Document Transmittal, to the IAC with Form 3198, Special Handling Notice, to identify the abatement of interest issue pending on the case.
When the taxpayer raises the issue during the course of an examination and there is not sufficient time on the statutory period for assessment, the agent may secure an extension or notify the taxpayer to file a claim once the liability is assessed.
Generally, interviews and informal conferences should not be necessary to resolve abatement of interest issues.

4.71.8.11.3 (10-31-2002)
Additional Interest Abatement Procedures

The IAC will bring the claim, administrative file and transcript to the EP ESS Unit if an abatement is recommended. The EP ESS Unit will be responsible for all interest calculations and closings. The IAC will inform the taxpayer of the claim disposition.

IF the account is...	And if the claim is...	THEN issue...
paid in full	Disallowed in full	L-2289(DO), wait 30 days, and, if the taxpayer does not request Appeals, send the case to the EP ESS Unit for closure. Do not issue L-906.
paid in full	Partially disallowed	L-2290(DO), wait 30 days, and, if the taxpayer does not request Appeals, send the case to EP ESS Unit for closure. Do not issue L-905.
paid in full	Fully allowed	L-2290.
Unassessed or assessed but not paid in full		Letters 2289 and 2290 to reflect the determination. Any additional explanatory information may be entered on these letters.

If a claim for abatement is denied, the taxpayer has the right to appeal that decision to the appropriate Appeals office. Taxpayers have full appeal rights on these claims whether the account is paid, assessed (and unpaid), or unassessed.
1. Forward taxpayer appeals to the IAC who will forward them to Appeals.
2. Taxpayers must provide a brief written request for reconsideration of the claim.
When shipping returns or return information from one IRS office to another, follow the provisions of IRM 1.20, Physical Security Program.