4.19.11. Examination Classification of Work

(1) Campus Exam Classification is responsible for reviewing amended returns/refund claims submitted to the Internal Revenue Service and referred to Exam under the CAT-A process. Accounts Management (AM), Submission Processing (SP) and other areas refer claims to Campus Exam Classification when they identify CAT-A criteria. Claims are typically referred via the Account Management Services (AMS) Correspondence Imaging Inventory System (CII) using the “2CATA” suspense option, which systemically reassigns the IDRS control base to the co-located Campus Exam Classification IDRS number.

(2) The CII case (claim) is reviewed by Campus Exam Classification (Revenue Agents for BMF and Tax Compliance Officers for IMF) to determine whether the driver for the referral is allowable and whether the amended return has audit potential. Claims that are either accepted as filed, not allowable, or have insufficient information to make a determination are returned to AM/SP via CII, which reassigns the IDRS control base back to the originator. The AM/SP originator then processes the amended return according to classifier instruction and closes the CII case, which closes the IDRS control base. Claims that are considered to have audit potential are selected for examination and routed to Campus Exam Classification Support. The CII case is returned to AM/SP with notations that the claim was selected and the originator closes the CII case.

(3) When a case is selected, Campus Exam Classification Support builds the case by opening an AIMS base (which establishes a TC 420), closing IDRS control bases on CC TXMOD as necessary, requesting original paper returns when necessary, creating a Form 3210, and electronically delivering the case via shared drive to local area office Planning and Special Programs (PSP). Cases sent to co-located Campus Exam could be hand-carried, sent through interoffice mail, or emailed. See IRM 4.19.12, Classification Support.

(1) IRM 1.1.16.5.5.1.5, Campus Exam and Field Support

(2) IRM 1.1.16.5.5.3, Exam Case Selection

(3) IRM 1.2.1.2.36, Policy Statement 1-236, Fairness and Integrity in Enforcement Selection

(4) IRM 1.2.1.5.7, Policy Statement 4-9, Highest Integrity Expected

(5) IRM 1.2.1.5.10, Policy Statement 4-21, Selection of returns for examination

(6) IRM 1.2.1.5.22, Policy Statement 4-76, Disallowed claims may be reconsidered on the merits

(7) IRM 1.2.1.5.23, Policy Statement 4-77, Claims may be allowed without examination

(8) IRM 1.2.1.5.31, Policy Statement 4-103, Abatement claims considered only in exceptional circumstances

(9) IRM 4.1.5.3, Classification

(10) IRM 10.5.1, Privacy Policy

(1) Examination Field and Campus Policy (EFCP) is responsible for leading the development and delivery of policy and guidance that impacts SB/SE taxpayers and SB/SE Campus and Field examination processes.

(2) Campus Exam and Field Support (CEFS) is responsible for providing policy on compliance processes that relate to campus examination classification operations for Correspondence, Field, and Specialty Exam programs.

(3) The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accordance with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see https://www.irs.gov/taxpayer-bill-of-rights.

(1) The following reports may be used to monitor inventory assigned in Classification:

• Account Management Services (AMS) Correspondence Imaging Inventory System (CII) Category A (CAT-A) Claim referrals

• Business Objects Enterprise (BOE) Crystal Reports

• Case Control Activity (CCA) 4243/ Overage Report Compiler and Sorter (ORCAS)

• Headquarters (HQ) Campus Exam and Field Support (CEFS) Classification SharePoint Reports

• Statistical Sample Inventory Validation Listing (SSIVL)

• AIMS Centralized Information System (A-CIS)

(1) The following table lists commonly used acronyms and their definitions used throughout this IRM.

(1) IRM 4.1.5.3, Classification

(2) IRM 4.13, Audit Reconsideration

(3) IRM 4.10.11, Claims or Refund and Requests for Abatement

(4) IRM 4.19.14, Refundable Credits Strategy

(5) IRM 4.19.15, Discretionary Programs

(6) IRM 21.5.2.4.23.6, Discriminant Index Function (DIF) SCORE or Classification Send Return(s) to Examination for Review

(7) IRM 21.5.3, General Claims Procedures

(8) IRM 21.5.3-2, Examination Criteria (CAT-A) - General

(9) IRM 21.5.3-3, Examination Criteria (CAT- A) - Credits

(10) IRM 21.5.3-4, First-Time Homebuyer Credit-Additional CAT-A Criteria

(11) IRM 21.7.4.4.2.9, Form 1065 and 1065X, Amended Return, Administrative Adjustment Request (AAR) and Bipartisan Budget Act (BBA)

(12) IRM 21.8.1.2.10, Examination Criteria CAT-A International

(13) IRM 21.8.2.2.12, Examination Criteria

(14) IRM 25.6, Statute of Limitations

(15) IRM 25.23, Identity Protection and Victim Assistance

(1) Claims are received, scanned, and stored in the Account Management Services (AMS) Correspondence Imaging Inventory System (CII). When an AM or SP assistor identifies CAT-A criteria they refer the claim to Exam Classification using the “2CATA” suspense option, which systemically reassigns the IDRS control base to the co-located Campus Exam Classification IDRS team number (see Exhibit 4.19.11-2, Campus Exam Classification Unit IDRS Numbers). The original CII case is moved to the AM/SP assistor’s CII Suspense Folder and a copy of the CII case (with limited functionality enabled) is transferred to CAT-A inventory in CII.

(2) Collection refers Automated Substitute for Returns (ASFR) returns and ASFR Reconsiderations meeting SFR Screening Matrix Criteria to Classification after the return has been processed and the adjustments posted to IDRS. See IRM 4.13.7-1, ASFR - Reconsideration Returns - Centralized Processing Sites.

(3) The Dependent Database (DDB) is a rules-based selection application that is designed to identify potentially ineligible tax returns claiming Earned Income Tax credit (EITC) and other refundable credits (for example, Premium Tax Credit (PTC), Additional Child Tax Credit (ACTC) and American Opportunity Tax Credit (AOTC)). DDB selects returns using an automated process based on programmed selection criteria designed to select the most productive returns for examination. The highest scored returns are made available for audit selection.

(1) To ensure impartiality, independence, and employee privacy, subordinates, associates or co-workers of an employee will not classify or examine that employee’s return.

(2) Command Code IMFOL on IDRS shows the IRS employee indicator. A "P" indicates the primary taxpayer is an IRS employee, an "S" indicates the secondary taxpayer is an IRS employee, and a "B" indicates both the primary and the secondary taxpayers are IRS employees. See IRM 2.3.51-12, Command Code IMFOL Output Display - Index.

(3) Classification Support will send employee returns selected for examination to the PSP area office closest to where the employee lives. Classification Support will not route employee returns to Campus Correspondence Examination.

(4) For additional information reference IRM 4.1.1.6.7, Employee Audits and IRM 4.2.6, Examination of Employee Returns.

(1) IRM 25.23, Identity Protection and Victim Assistance, provides servicewide guidance on Identity Theft (IDT) issues, including documentation and actions required for general processing of IDT claims.

(2) BMF IDT indicators are not applied until required research has been completed to rule out a possible mixed entity issue. Never assume identity theft prior to completing preliminary research. Refer to IRM 25.23.9-7, BMF Identity Theft Research Requirement, and IRM 25.23.9-2, BMF ID Theft Indicators – Transaction Code (TC) 971 Action Code (AC) 522 IDTCLM - Initial Allegation or Suspicion of BMF Identity Theft, when researching BMF accounts.

(1) A "-Z" freeze or an unreversed TC 914 on a tax module indicates that return has Criminal Investigation (CI) controls.

(2) If a case is received in CAT-A Classification and there are CI controls on the tax module, return the case to AM with advise to follow IRM 21.5.6.4.52.

(1) Invariably, the definition of significant will depend on the classifier’s perception of the return as a whole and the separate items that comprise the return. However, there are several factors to consider when determining whether an item is significant:

1. Comparative size of the item: A questionable expense item of $6,000 with total expenses of $30,000 would be significant; however, if total expenses are $300,000, ordinarily the item would not be significant.

2. Inherent character of the item: Although the amount of an item may be insignificant, the nature of the item may be significant; for example, airplane expenses claimed on a plumber’s Schedule C.

3. Evidence of intent to mislead: This may include missing, misleading, or incomplete schedules or incorrectly showing an item on the return.

4. Beneficial effect of the manner in which an item is reported: Expenses claimed on a business schedule rather than claimed as an itemized deduction may be significant.

5. Relationship to/with other item(s) on a return: Business expenses with corresponding income.

6. Similarly, the lack of dividends reported when Schedule D shows sales of stocks.

7. Taxpayer location: A taxpayer based out of a high cost of living area will incur higher expenses than a taxpayer based out of a moderate or low cost of living area.

(1) This subsection includes general and background information on Classification work processes.

(2) Classification responses will not contradict IRM 21.5.3-1, Claims Processing with Examination Involvement, which is the IRM Accounts Management follows when they receive a response from CAT-A Classification.

(3) Classification will only provide one determination when responding.

(4) The table below only applies to complete cases containing the necessary returns and taxpayer documentation to make a determination. If the case is not complete and can’t be classified, it will be returned to the requestor/originator with an explanation of why it can’t be classified.

(1) If a classifier determines a claim has audit potential and selects the case, they will take appropriate actions to ensure the case is built and sent to the appropriate area.

(2) When Exam Classification selects a claim, AM/SP transfers claim resolution liability to the Exam function. Appropriate Exam functions are then responsible for establishing AIMS, and proceeding with auditing or processing the claim.

(1) Statute awareness is vital and required to minimize barred assessments and erroneous abatements.

(2) When a tax assessment is not made within the prescribed period for assessment it is considered a "barred assessment."

(3) In the event an Assessment Statute Expiration Date (ASED) expires while a tax return is under Classification control, a statute expiration report must be prepared using Form 3999, Statute Expiration Report.

(4) IRM 25.6.1.13.2.8.1, Procedures for the Submission of SB/SE Statute Expiration Reports, outlines additional SB/SE procedures that must be followed when a return has a barred statute.

(5) AM/SP will not refer an amended return to CAT-A if it results in a balance due, or increases the balance.

(6) A "bundled claim" is an amended return with both an increase and a decrease (for example, a tax decrease and a credit decrease or a credit increase and a tax increase).

(7) AM/SP will refer amended returns with bundled claims to Classification using HQ Reserved 7 unless it would be referred under referral reason HQ Reserved 3, HQ Reserved 5, HQ Reserved 10, HQ Reserved 18, or OAR-HQ Reserved XX.

(8) Each campus will ensure bundled claims within 60 days of the ASED are identified in Classification inventory and worked on a priority basis.

(1) An audit reconsideration is the process the IRS uses to reevaluate the results of a prior audit where additional tax was assessed and remains unpaid, or a tax credit was reversed.

(1) When the Service issues an erroneous refund on a BMF return that must be recovered with a Statutory Notice of Deficiency (SNOD), the case will be routed to the co-located Campus Examination function. Reference IRM 21.4.5, Erroneous Refunds.

(2) BMF Classification will provide support for these cases by completing a technical review of the case. The technical review will include:

1. confirming the erroneous refund meets criteria to be recovered with a SNOD,

2. determining the amount to be recovered, and

3. reviewing the case for any unusual issues and documenting the findings.

(3) After completing the review, BMF Classification will return the erroneous refund case to the Campus Examination operation to take the next routing or processing steps.

(1) Accounts Management (AM) and Submission Processing (SP) assistors identify Joint Committee cases by applying Category A (CAT-A) criteria outlined in IRM 21.5.3-2, Examination Criteria (CAT-A) – General. When any case results in a refund or credit greater than $2 million ($5 million for a C Corp), regardless of the issue, the case is referred to CAT-A Classification.

(2) All refunds from source years open with respect to the statute of limitations need to be considered in determining the jurisdictional amount. For example, if tentative refunds added together exceed $2 million ($5 million for C Corporations), both the source years and tentative refund years will be reported. This is true if none, one, or all, of the separate tentative refunds exceed $2 million ($5 million for C Corporations).

(3) Classifiers must be aware that refunds meeting Joint Committee criteria require special processing. Generally, IRC 6405 requires the submission of reports by the IRS to the Joint Committee on Taxation.

(4) Classifiers will select all Joint Committee cases.

(5) LB&I provides support to SB/SE, TEGE and LB&I for the Joint Committee Review (JCR) program and oversees the preparation of the report sent to the Joint Committee for all agreed, partially agreed, no-change, and surveyed cases meeting Joint Committee criteria. Reference IRM 4.36, Joint Committee Procedures.

(1) Exam will monitor for incoming Automated Underreporter (AUR) technical advice and CAT-A referrals daily. Referrals will be received physically from co-located sites and via EEFax inbox from non-co-located sites. Incoming referrals will contain: a fax cover sheet (if applicable), an AUR/Examination CAT-A Referral Form, AUR case contents (including a copy of the last CP 2000 or CP 2501 Notice), and the document the taxpayer submitted.

(2) Exam Classification will review the referral to determine if the expenses are allowable or if the case meets audit criteria within 15 calendar days of receipt.

(3) Exam Classification will work AUR referrals from the aligned SBSE Exam site(s) as outlined below.

(4) If Classification determines the referral will be selected for audit:

1. Classification will send the AUR coordinator an email stating Exam is selecting the case and AUR can close their controls (email title “Selected - Close AUR Controls”).

2. Exam Case Building will open AIMS prior to routing to the correspondence Exam area and/or Field PSP.

3. Utilize project code 1504, AUR Amended Returns/A-CIS Priority - Miscellaneous Referrals Discretionary.

(5) If Classification determines the referral will be accepted as filed:

1. Classification will send the AUR coordinator an email stating the Form 1040X can be accepted as filed (email title “Accepted as Filed”).

(6) If Classification determines the additional expense is not allowable by law:

1. Exam will send the AUR coordinator an email stating the expense is not allowable and provide a standard paragraph that can be sent to the taxpayer explaining why it is not allowable (email title "Not Allowable").

(1) The DIF system is used to evaluate the examination potential of:

1. All individual returns

2. All Form 1120 returns for those corporations with assets of less than $10 million

3. S Corporations

4. Partnership returns

(1) A Section 761(a) partnership return is an unincorporated organization which qualifies under IRC 761(a) as:

• an investing partnership, or

• is participating in the joint production, extraction, or use of property under an operating agreement.

(2) Additional processing information and Exam criteria can be found in the following:

• IRM 3.12.15.2.14.1.2, IRC 761(a) Return/Election

• IRM 3.11.15.5.6.1, IRC 761(a) Returns

• IRM 21.8.4.4.12.7.1, IRC 761 Partnerships

(3) For the first year for which it wants the exclusion, the unincorporated organization should make the election in a statement attached to the Form 1065, U.S. Partnership Return of Income.

(4) Submission Processing (SP) suspends processing 761(a) elections until a review is made by Classification .

(5) Classification will review returns that are identified as potential IRC 761(a) elections. Classification is responsible for making classifiers available to Code and Edit in SP to determine if IRC 761(a) elections will be accepted or rejected before processing is completed.

(6) If the classifier determines missing information needs to be obtained to validate the IRC 761(a) election:

• The classifier instructs Code & Edit to send Letter 1355C, Partnership Return Incomplete for Processing Form 1065 providing the applicable paragraphs, and

• Suspends the return for 45 days. If a response is not received timely the election will be rejected.

(7) Phone inquires and technical responses by taxpayers on the aforementioned letters are also directed to Classification.

(8) Classifiers of IRC Sec. 761(a) elections should have experience in tax shelters.

(9) Classifiers reject elections that are determined to be invalid. Valid elections are accepted as filed.

(10) After a determination is made on an IRC 761(a) election, SP processes the return as follows:

1. Elections accepted are handled as a short return.

2. Elections rejected are processed as regular returns.

3. Elections selected for examination will be processed with an Audit Code 1.

(11) Returns selected for examination are forwarded to their respective area offices.

(1) The taxpayer may request abatement of interest due to an error or delay in the performance of a ministerial/managerial act.

• The IRS has the authority to abate interest in cases where the additional interest was caused by IRS errors or delays, per 6404(e). See IRM 20.2.7.5, Unreasonable Error or Delay in Performing a Ministerial or Managerial Act- IRC 6404(e)(1).

• However, the IRS may act only if there was an error or delay in performing either a ministerial act or a managerial act (including loss of records by the IRS, transfers of IRS personnel, extended illness, extended personnel training or extended leave) and only if the abatement relates to a tax of the type for which a notice of deficiency is required.

• Such taxes would be those relating to income, generation-skipping transfers, estate, gift and certain excise taxes, but not abatement of interest for employment taxes or other excise taxes.

(2) The Accounts Management Operation at each campus generally receives requests for abatements of interest and determines which functional area is the source of the claimed error or delay. See IRM 21.5.2.4.10.1, Ministerial/Managerial Interest Abatement. Accounts Management will:

• Obtain the administrative file,

• Current transcripts and

• Route the file to the Interest Abatement Coordinator (IAC) in that functional area.

(3) Accounts Management will forward claims originating in Customer Account Services (CAS) to Examination as technical advice requests. Examination will review and return them with a recommendation whether to allow or disallow the claims.

(4) Interest abatement claims may also be received directly in Examination either in the processing of an examination program, or in a prior examination reconsideration request.

1. If the interest abatement claim/request is received during the examination process, it should be forwarded to the IAC before the issuance of the statutory notice of deficiency and/or closing of the case.

2. Correspondence examiners should initially screen the interest abatement claim for validity.

   Reminder: The Internal Revenue Service does not have the authority to abate interest charges due to reasonable cause, on the part of the taxpayer, for underpayment of taxes.

3. If there is any question regarding the validity of the interest abatement claim, it should be forwarded to the IAC in the Campus Examination Operation.

(5) See IRM 20.2.7.5, IRC 6404(e)(1), Unreasonable Error or Delay in Performing a Ministerial or Managerial Act, for additional information.

(1) Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts, is required for each year after February 28, 1986, when a taxpayer completes a long-term contract that was accounted for using either the percentage of completion method or the percentage of completion - capitalized cost method for Federal income tax purposes.

(2) Form 8697 is required for any tax year in which the contract price or contract costs are adjusted for one or more of these long-term contracts from a prior year. See IRM 20.2.11.12, Look-Back Interest, and IRM 20.1.3.2.6, Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts, for additional information.

(3) Refer to IRM 21.7.4.4.20, Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts and IRM 21.7.12.5.8, Form 8697 - Interest Computation Under the Look-Back Method for Completed Long-Term Contracts Overview, for additional information.

(1) Claims contending the taxpayer’s signature was forged or they were not legally married may be referred to campus classification by Accounts Management (AM). See IRM 21.6.1.5.7, Married Filing Joint or Married Filing Separate is Invalid or Filed with Incorrect Status, for exam referral criteria.

(2) Allow claims based on unlawful filings where the marriage was not valid if the following is present:

1. verification, such as court documents, showing the marriage was not valid for the tax period involved, and

2. proper allocation of all return income, credits, and payments is provided.

(3) In accordance with IRC 6064, the taxpayer must prove that they did not intend to file jointly and that the signature was forged. If the claim cannot be allowed, follow selection criteria for field and campus exam for audit referrals. Classifiers should be alert to indications of identity theft on the account. Suspected Identity Theft Category A claim referrals should be returned back to Accounts Management for research and processing as outlined in IRM 25.23, Identity Protection Program. The following subsection contains procedures on identity theft accounts. IRM 4.19.15.37, Multiple Filers, provides guidance for Correspondence exam to process the claim.

(4) Generally, AM will attempt to secure the return before referring to Classification, but there are situations where Classification may receive the case without the return. See IRM 21.6.7.4.4.1, TRNS36 - Control, for additional information.

(1) Every foreign corporation that is engaged in trade or business in the United States or is subject to tax under Subtitle A of the Internal Revenue Code must file a Form 1120-F, U.S. Income Tax Return of a Foreign Corporation. However, a foreign corporation which at no time during the taxable year is engaged in a trade or business in the United States is not required to file a return for the taxable year if its tax liability for the taxable year is fully satisfied by the withholding taxed at the source under chapter 3 of the Code.

(2) If required to file a return, a foreign corporation that has no gross income for the taxable year is not required to complete the return schedules but:

• must attach a statement to the return indicating the nature of any exclusions claimed, and

• the amount of such exclusions to the extent such amounts are readily determinable.

(3) Form 1120-F returns are filed at the Ogden Campus.

(4) See IRM 21.8.2.2.12, Examination Criteria, for claims and examination referral issues. Amendments to Form 1120-F are forwarded to Ogden and Cincinnati campuses for classification.

(1) Form 1120-IC-DISC, Interest Charge Domestic International Sales Corporation Return, is an informational return and is filed by a domestic corporation that has elected to be treated as an Interest Charge Domestic International Sales Corporation (IC–DISC) and has satisfied the requirements under IRC 992. It is also filed by a domestic corporation that is a former DISC or former IC-DISC. Generally, an IC-DISC is not taxed on its income. Shareholders of an IC-DISC are taxed on its income when the income is actually (or deemed) distributed. See IRM 21.7.4.4.4.11.6, Form 1120-IC-DISC, Interest Charge Domestic International Sales Corporation Return for additional information.

(2) A 1120-IC-DISC is required to make an election using Form 4876-A, Election To Be Treated as an IC-DISC, in order for it to be treated as an IC-DISC. Form 4876-A must be filed within 90 days after the beginning of the tax year if it is the taxpayer’s first tax year. For any tax year other than the taxpayer’s first tax year, the election must be made during the 90 days preceding the first day of that tax year. If the election is not timely filed, then the corporation must file the appropriate corporate (or other) return and pay income tax.

(3) The Form 4876-A election determination is made by Kansas City Submission Processing (SP). A data file is kept by Code and Edit during the processing of these forms. For additional information see IRM 3.11.16.41.1, Form 4876-A and Form 1120-IC-DISC "Data File."

(4) Generally 1120-IC-DISC are not subject to tax.

(5) However, the shareholders of an IC-DISC are:

• taxed on distributions from the IC-DISC, and

• pay an interest charge with respect to any such tax that is deferred.

(6) If a corporation files as an IC-DISC but does not qualify as an IC-DISC Kansas City SP initiates correspondence to notify and explain to the corporation why it does not qualify as an IC-DISC. See IRM 3.11.16.42.2, Ineligible Filers.

(1) The Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation, is filed for transfers made after August 4,1997. These forms are considered information returns, and must be filed with the U.S. Transferor’s annual tax return for the tax year that includes the date of transfer.

(2) Returns processed by Submission Processing with Form 926 attached are identified with audit codes. See IRM 3.12.2-5, Audit Codes, and IRM 3.11.3-3, Audit Codes.

(3) Claims filed with a Form 926 are considered Examination International Category A (CAT-A) criteria and are classified by an LB&I International Examiner. See IRM 21.8.1.2.10, Examination Criteria CAT-A International.

(1) From 2019 to 2022 SB/SE held Bipartisan Budget Act (BBA) cases in their Correspondence Imaging Inventory (CII) System inventory under HQ Reserved Code 15, pending review by LB&I.

(2) SB/SE CAT-A classifiers will not classify BBA returns, invalid BBA Administrative Adjustment Requests (AAR), or imputed underpayment penalty issues. These issues must be worked in LB&I.

(3) SB/SE CAT-A Classification will only classify Form 1065 when it is determined the taxpayer has followed required procedures to properly opt out of BBA.

(4) If a taxpayer has not properly elected out of BBA (based on incorrect filing or other indicators), reject the case back to AM as "Not CAT-A" and explain it is a BBA return because the taxpayer did not properly elect out of BBA and the case needs to be sent to BBA per IRM 21.7.4.4.2.9, Form 1065 and Form 1065X, Amended Return, Administrative Adjustment Request (AAR) and Bipartisan Budget Act (BBA).

(5) Related resources:

• IRM 4.31.4, TEFRA Administrative Adjustment Requests (AAR)

• IRM 4.31.9, Centralized Partnership Audit Regime (BBA) Field Examination Procedures

• IRM 21.5.3-2, Examination Criteria (CAT-A)-General

• IRM 21.7.4.4.2.9, Form 1065 and Form 1065X, Amended Return, Administrative Adjustment Request (AAR) and Bipartisan Budget Act (BBA)

(1) SB/SE holds Large Business & International (LB&I) cases in their Accounts Management System (AMS) Correspondence Imaging Inventory (CII) system inventory under referral reason "HQ Reserved 3" and "HQ Reserved 5," pending review by LB&I.

(2) SB/SE Classification will not work any of the LB&I inventory housed in CII CAT-A queues under referral reason "HQ Reserved 3" and "HQ Reserved 5."

(1) SB/SE holds Tax Exempt/Government Entities (TE/GE) cases in their Accounts Management System (AMS) Correspondence Imaging Inventory (CII) system inventory under referral reason "HQ Reserved 18", pending review by TE/GE.

(2) TE/GE claims are identified by BOD "TE" on IDRS. TE/GE claims must be referred under "HQ Reserved 18." See IRM 21.5.3-2, Examination Criteria (CAT-A)-General.

(3) SB/SE Classification will not work any of the TE/GE inventory housed in CII CAT-A queues.

(1) SB/SE holds SB/SE Employment Tax (ET) cases in their Accounts Management System (AMS) Correspondence Imaging Inventory (CII) system inventory under referral reason "HQ Reserved 10", pending review by SB/SE ET classifiers.

(2) "HQ Reserved 10" claims typically involve high dollar net tax and refundable credit changes on an amended Employment Tax return. See IRM 21.5.3-2, Examination Criteria (CAT A)-General

(3) SB/SE Classification will not work any of the SB/SE ET inventory housed in AMS CII CAT-A queues.