13.1.21. Closing TAS Cases

(1) Relief Codes are based on the relief requested by the taxpayer. The Relief Requested Field on Taxpayer Screen 2 of TAMIS is the main source of this information, although the TAS employee may clarify the relief requested during the initial/first taxpayer contact. The relief requested is distinct from the problem that caused the taxpayer to meet TAS case acceptance criteria. For cases involving multiple issues, TAS will code the case based upon the total case resolution, not only the relief initially requested by the taxpayer. TAS employees will use Relief Codes to indicate the type of relief provided to the taxpayer when TAS determines the case meets IRC 7811. See Exhibit13.1.7-4, Case Criteria Crosswalk to 7811 and Regulations.

(2) When a TAO has been issued, TAS employees will enter Relief Codes 07, 08, 09, or 10 based upon the disposition of the TAO. TAO Relief Codes are not required on the TAMIS Closing Screen but must be entered on the TAMIS TAO Screen (Taxpayer Screen 6). The resolution of a TAO will always take precedence over all other Relief Codes. When TAS issues multiple TAOs to resolve a case, the Relief Code will be based upon the resolution of the first TAO issued.

(3) When TAS has resolved all the issues the taxpayer agreed to work with TAS to resolve, and has not issued a TAO, TAS will use Relief Code 60 when closing the case.

(4) There are times when TAS is unable to relieve all the taxpayer’s issue(s) but is able to resolve a portion of the taxpayer’s issue(s). A portion of the relief requested by the taxpayer may include but is not limited to:

• A partial levy release of the amount requested.

• Abatement on some, but not all, tax periods requested.

• A refund of only a portion of the requested or expected amount.

• A partial claim allowance.

• Full relief on one or more issues, but no relief on other issues.

  Note: Merely educating the taxpayer about why they are not entitled to relief, does not in and of itself constitute relief when selecting the appropriate Relief/No Relief Code.

(5) When TAS is able to resolve a portion of the taxpayer’s issue(s) and TAS has not issued a TAO, TAS will use Relief Code 70 when closing the case.

(6) When TAS is unable to grant the taxpayer the relief requested or is unable to resolve any of the taxpayer’s issues and has not issued a TAO, TAS will close the case using Relief Codes 50, 52, 53, 54, 55, or 56.

(7) When making a relief determination, it does not matter whether the relief was provided by TAS directly (within our statutory or delegated authority) or provided by the BOD/Function via an Operations Assistance Request (OAR).

(1) The Relief Date is a required field for all cases when the 7811 determination equals “Y” AND if the Relief Code is:

• 07 - TAO Issued - BOD/Function Complied.

• 08 - TAO Issued - BOD/Function Appealed; TAO Sustained.

• 09 - TAO Issued - BOD/Function Appealed; TAO Modified.

• 60 - Full Relief.

• 70 - Partial Relief.

(2) The Relief Date is the later of the closing contact date or the date TAS advised the taxpayer of the relief action.

(1) The TAS case is closed when the corrective input is posted on IDRS and the taxpayer is informed of the amount of the adjustment.

(2) When moving money (including from Excess Collection) close the TAS case when all transfers are fully posted.

(3) See IRM 13.1.21.2.2.6, Balance Due, if a balance due remains.

(1) Close cases involving Appeals issues in the following situations, being mindful of processing and remaining statute timeframes for IRC 6532, regardless of whether the taxpayer and the IRS signed Form 907, Agreement to Extend the Time to Bring Suit. These examples represent only a handful of situations involving Appeals issues that come to TAS:

1. If the issue is solely to get an appointment, close the TAS case once the appointment is set and the taxpayer or representative is informed of the appointment time.

   Note: In situations where the taxpayer is facing economic burden, the case can remain open to ensure Appeals expedites the case through their process.

   Exception: If the appointment relates to the appeal of a claim disallowance, keep your case open until the IRS or Appeals makes its determination (and issues any applicable refund plus interest) about the appeal of the claim disallowance, regardless of whether the taxpayer and the IRS signed a Form 907. TAS keeps these cases open to ensure Appeals protects the IRC 6532 statute.

2. If the TAS case arises because the taxpayer’s problem is that they were not afforded appeal rights due to a determination by an Operating Division (OD), close the TAS case when Appeals makes a determination whether or not to grant such appeal rights and the taxpayer or representative is advised of the Appeals’ determination.

   Exception: If the appeal relates to a claim disallowance, keep your case open until the IRS or Appeals makes its determination (and issues any applicable refund) about the appeal of the claim disallowance, even if no Form 907 was signed. TAS keeps these cases open to ensure Appeals protects the IRC 6532 statute.

3. TAS will close the case when in agreement with Appeals’ determination and satisfied that all appropriate options have been considered.

4. If TAS disagrees with Appeals’ final determination or finds Appeals has not considered all the taxpayer’s documentation and the taxpayer is facing significant hardship as defined by IRC 7811, TAS should consider issuing a TAO. Refer to IRM 13.1.20, TAS Taxpayer Assistance Orders (TAOs).

5. If the issue is a delay or non-responsiveness of Appeals, the TAS case must remain open until the issue is resolved. TAS must ensure that the taxpayer or representative is informed of Appeals’ decisions, etc.

6. If the outcome involves an adjustment, the account must reflect the posted adjustment on IDRS and the taxpayer or representative must be informed about the adjustment before the case is closed.

(2) Penalty Appeal cases should follow the same closing guidelines as in paragraph (1) above.

(1) If the sole issue of a TAS case is the taxpayer’s or representative’s inability to obtain an appointment with an Operating Division, close the TAS case when the appointment date is confirmed with the taxpayer or representative.

(1) Close the TAS case when the following three steps have been completed:

• Step 1 - the reopened examination has been completed.

• Step 2 - the taxpayer or representative has been notified of the results.

• Step 3 - the adjustments (including any TC 971s) are posted on IDRS.

(2) At the time of closing, transactions not related to the TAS case, are also required to be fully posted IF they will impact tax, credits, or other adjustments to an account balance. Generally, if the taxpayer will be adversely impacted (e.g., experience delays or receive a decreased refund or a balance due notice) if the adjustment were to go unpostable, TAS should hold the case open until that adjustment posts to prevent the taxpayer from having to contact TAS again to resolve a new issue.

(3) In campus audit reconsiderations, close the case once ALL the following have occurred:

• The IRS issues Letter 3340C, per IRM 4.13.3.8.2, Closing Procedures - Partial Disallowance, or IRM 4.13.3.8.3, Closing Procedures - Full Disallowance.

• The partial or full disallowance adjustment (e.g., TC 29X) posts on the taxpayer’s account.

• TC 971 with AC 5XX posts on the taxpayer’s account.

(4) In field audit reconsiderations, close the case once ALL three steps in paragraph (1) have been completed. Steps 1 and 2 happen concurrently. However, when the taxpayer requests a timely appeal, Step 3 happens much later after Appeals has heard the appeal and a back-end function inputs the Appeal determination. See IRM 4.10.11.4.9(7), Audit Reconsiderations - Partially Disallowed.

(1) Close the TAS case when the BWH has been lifted (i.e., indicator is updated) and the payers have been notified, or an explanation of why the BWH is correct has been provided to the taxpayer or representative.

(1) For cases which have a balance due at the completion of case processing, TAS must address the following before closing the case:

1. Advocate for the taxpayer by investigating and determining the cause of a taxpayer’s balance due and working with the taxpayer to address the cause(s) of the balance due, when applicable. For example, the underlying balance maybe the result of an EITC audit that the taxpayer never participated in or an adjustment for a cancellation of debt issue where the taxpayer was indigent. It could be advocating for help with penalty relief. Document the cause and actions taken to address any balance due in TAMIS. See IRM 13.1.21.2.1, Closing Actions.

2. Inform the taxpayer or representative about the balance owed with accruals as of a specific date. Offer a breakdown of tax, penalties, and interest. If applicable, provide adjustment and offset amounts. Inform the taxpayer that a notice will be forthcoming with the balance due amount. Interest will continue to accrue until the account has been satisfied. The penalty(ies) will accrue until the maximum penalty, by law, has been assessed.

   Note: If the taxpayer requests a breakdown of the balance due, compute the balance due. Be aware of situations that may require manual computations and use IDRS Command Code INTST. Do not use the balance due provided by Accounts Management System (AMS) as the AMS calculations do not include a breakdown of both assessed and accrued failure to pay penalty and interest.

   Example: A Case Advocate is getting ready to close a case as “no response”. The taxpayer has not resolved the balance due. If the unpaid assessed balance is $56,800 but the balance with accruals was $58,400, the second request letter would include a caution to the taxpayer that they are very close to meeting the passport revocation threshold of an unpaid assessed balance of over $59,000 for tax year 2023. Providing the CC INTST payoff amount, which includes a breakdown of assessed versus accrued failure to pay penalties and interest, would have added value to the taxpayer as opposed to providing the AMS calculation which would not show a breakdown and would only show the balance of $58,400. Providing the AMS calculation may lead to confusion as to whether the taxpayer is or is not subject to passport revocation.

3. Solicit payment and provide payment instructions.

4. Discuss payment alternatives such as Installment Agreements (IA) and Offer in Compromise (OIC). See IRM 5.19.1, Balance Due, for additional payment alternative information.

5. If the taxpayer has indicated they cannot pay, discuss whether they meet a non-collectible hardship status and the necessity of completing a collection information statement to determine eligibility. See IRM 5.19.17.2.1.4, CNC Unable to Pay - Hardship, IRM 5.19.13.3, Securing Financial Information, IRM 5.16.1.2.9, Hardship, or IRM 5.15.1, Financial Analysis Handbook, for additional information.

6. If the taxpayer does not want further assistance from TAS, refer the taxpayer to the appropriate Operating Division for assistance and document TAMIS accordingly.

7. Inform the taxpayer or representative that normal collection procedures may resume unless the taxpayer takes steps to address the balance due.

(1) When a refund check being traced is over 14 months and 15 days old, the case must remain open until the determination is made whether to reissue the check and, if reissued, the reissued refund posts to the account and the account is in zero balance. See IRM 13.1.21.2.2.18, Lost, Stolen or Not Received Refund Checks for more information.

(1) There are four processes involved with claims - Acceptance, Denial, Examination, and Delay. The closing criteria will depend on which process is involved in the TAS case.

1. Acceptance of Claim - Close the TAS case when the adjustment is posted and the taxpayer or representative has been notified of the change.

2. Denial of Claim - Close the TAS case when the taxpayer or representative has been notified of the denial, given appeal rights, was issued one of the appropriate claim disallowance letters such as a Letter 105C or 106C, and TC 290 for .00 has posted.

3. Selected for Examination - Close the TAS case when the taxpayer or representative has been notified that the claim has been selected for examination. If the claim is subject to a field examination, provide the examiner’s name, address, telephone number, and confirmed appointment date and time. If the claim is subject to a campus correspondence examination, provide the correspondence examination toll-free number, mailing address and expected next contact date. See the SERP references for correspondence examination toll-free numbers. Whether the TAS case remains open once the appointment is scheduled will depend on the facts and circumstances of the case.

   Example: A taxpayer submits a Form 1040X, Amended U.S. Individual Income Tax Return, meeting Category A (CAT A) criteria. The taxpayer came into TAS to obtain help in processing the Form 1040X. The amended return is selected for field examination. Close the TAS case once the taxpayer is notified of the examination appointment date and time, and provide the taxpayer with the examiner’s name, address and telephone number.

4. Delay in Processing - If the TAS case involves a problem with the examiner’s work on the claim, the TAS case must be kept open until the taxpayer’s problem has been resolved.

   Example: A taxpayer contacts TAS regarding the Form 1040X the taxpayer filed to claim a refund. The taxpayer has not received any response from the IRS. TAS researches IDRS and determines Examination has an open AIMS control on the Form 1040X. Close the TAS case when a determination is made, applicable adjustments post, or if the claim was denied, a TC 290 for .00 posts and the taxpayer is notified of the determination and appeal rights.

(2) If a determination was made on a TAS case and the taxpayer or representative subsequently disagrees with the decision and wishes to exercise appeal rights, TAS should exercise judgment as to whether the case should remain in TAS or be closed. TAS cases involving Appeals do not have to be held open unless the taxpayer requests that TAS assist with the Appeals process. In deciding whether to close such a case, TAS should use common sense and good judgment as to the likelihood that there will be a continuing dispute that warrants TAS’s ongoing assistance. If the case is closed, remind the taxpayer that if they find the Appeals process is not working, they can re-contact TAS.

(3) Consider Refund Statute Expiration Date (RSED) issues and the taxpayers’ Right to Pay No More than the Correct Amount of Tax. Note whether the claim/return was timely filed based on IRC 6511. IRC 6511 provides the RSED is the date by which a taxpayer must file their claim with the IRS to obtain a credit or refund of an overpayment. Generally, the claim for credit or refund must be filed within three years from the date the return was filed, or two years from the date the tax was paid, whichever is later. But remember that there are many exceptions to the general rule. Look for instances where there is no record of the IRS receiving the return(s). Consider advising the taxpayer to file the original or amended return again to the proper IRS filing location in a way that gives the taxpayer proof of timely mailing. Do not advise the taxpayer to file their return with TAS. See IRM 13.1.18.8.3, Taxpayers Delivering Returns to TAS and TAS Date Stamp. The IRS can issue a refund after the RSED as long as the claim is timely filed with the proper filing location.

(1) A collection case in which the taxpayer has substantiated an inability to full pay the outstanding tax delinquencies generally requires the application of a collection alternative prior to closing the case. These alternatives can take the form of a traditional Installment Agreement (IA), Partial Payment Installment Agreement (PPIA), Offer in Compromise (OIC), or Non-Collectible status (CNC hardship, Defunct Corporation, etc.). TAS has an advocacy role to ensure when cases involve situations where the taxpayers have substantiated the inability to full pay, case closure should not be considered closed until after TAS has provided the taxpayer with collection alternatives. See IRM 5.19.1, Balance Due, or IRM 5.19.17, Campus Procedures for Currently Not Collectible and Offers in Compromise, for additional collection alternative information. Advocate by determining and addressing with the taxpayer the cause of the balance due and preventative measures, when applicable.

(1) Within this subsection, when a taxpayer’s return has been included in a potential “refund scheme,” and a determination is made that the taxpayer has filed a legitimate return, then that taxpayer is determined to have filed a “true return.” If the case involves a “true return,” the case remains open until a resolution is reached.

(2) Following the guidance provided in IRM 25.30.4, Service Level Agreement between the Criminal Investigation Division and the Taxpayer Advocate Service, CI must be notified via Operations Assistance Request (OAR) that the taxpayer has contacted TAS. Case closure becomes contingent on CI’s advice to TAS on case actions, which differs from case to case. See IRM 13.1.10.9, Inquiries on Open Cases with Criminal Investigation Involvement and Case Assistance by Issue Code (CABIC) 950, Criminal Investigation, for OAR routing guidance.

(3) For balance due inquiries, follow procedures in IRM 5.19.1.5.13, Criminal Investigation Division Indicators (CID) on Balance Due Cases, and IRM 5.19.1.3.5(4), For Other Account Issues, where CI “Z” freezes exist.

(1) Close the TAS case when the merge is processed, and the TC 011 is fully posted on IDRS.

(1) Erroneous Refunds (Unassessable, Category B or D) - In cases involving a refund resulting from mistakes (usually clerical or ministerial) and not involving a redetermination of the tax liability, the TAS case will remain open until:

1. The taxpayer repays the erroneous refund and the payment has posted to IDRS; or

2. The erroneous refund package is sent to the campus Accounting Office and an IDRS control category “ERRF” is reflected on IDRS.

(2) Erroneous Refunds (Assessable - Category A1, A2 or C) - In cases requiring a recalculation of the tax liability, the case will remain open until:

1. The taxpayer either repays the erroneous refund within the demand period and the payment has posted to IDRS or the TC 845 has posted to IDRS; or

2. The adjustment to correct the account has posted to IDRS, if the taxpayer does not repay; or

3. The taxpayer has entered into an installment agreement (IA) to repay the erroneous refund and it has been input for systemic or manual monitoring.

(1) Take all steps necessary to perfect the account as outlined in IRM 25.23.1, Identity Protection and Victim Assistance - Policy Guidance. This includes verifying that the TC 971 AC 501/506 posted to CC ENMOD for each tax year impacted by identity theft and for which the taxpayer provided identity theft substantiation. Verify the address on CC ENMOD is correct.

(1) An Innocent Spouse TAS case can be closed when:

1. The OD/Function makes a determination and completes any necessary adjustments including TC 972 AC 065, and all adjustments are posted.

2. The Innocent Spouse issue is in litigation. See IRM 13.1.10.10.1, Request for Assistance in Which Counsel or the Department of Justice has Jurisdiction.

3. Cases going to Appeals will not be closed until Appeals makes a determination on the appeal and the taxpayer or representative is informed. If the outcome involves an adjustment, the adjustment must be posted (not pending) on IDRS or NMF.

4. Cases requiring NMF action will not be closed until the required transactions are posted (not pending) on the NMF system (MARS) or under MFT 31.

5. Cases regarding only the status or receipt of the Innocent Spouse claim can be closed when the information is provided to the taxpayer.

(1) When a TAS case involves a taxpayer, who had been unable to secure an IA but TAS secures an acceptable IA, the case will remain open until the IA is input for systemic or manual monitoring and applicable TC 971 action codes posted.

(2) If the IA request is rejected, the case is referred to Operations using OAR procedures. Refer to IRM 5.19.1.6.4.10.1, Independent Reviewer Responsibility. If the independent reviewer upholds the rejection, the taxpayer is entitled to appeal the decision. The case will remain open until the independent review is completed and the taxpayer has been given appeal rights (via an IDRS generated Letter 2272C, Installment Agreement Cannot be Considered/Extension to Pay Cannot be Considered).

(3) Upon closing, taxpayers should be educated on other methods to address their balances, such as the Offer in Compromise (OIC) program.

(1) Close the TAS case after a decision is made, the adjustment is completed and posts, or a TC 290 for .00 posts and the taxpayer or representative has been notified. If a determination was made on a TAS case and the taxpayer or representative subsequently disagrees with the decision and wishes to exercise appeal rights, TAS should exercise judgment as to whether the case should remain in TAS or be closed. TAS cases involving Appeals do not have to be held open unless the taxpayer requests that TAS assist with the Appeals process. In deciding whether to close such a case, TAS should use common sense and good judgment as to the likelihood that there will be a continuing dispute that warrants TAS's ongoing assistance. If the case is to be closed, remind the taxpayer that if they find the Appeals process is not working, they can re-contact TAS.

(1) When a TAS case involves an international taxpayer, expecting a refund, close the TAS case after the taxpayer has confirmed receipt of the refund.

(2) If the taxpayer is not available by telephone to confirm receipt of the refund, a letter must be sent to verify the taxpayer received the refund check. The TAS letter will advise the taxpayer to contact TAS by a specific date if the refund is not received by that date. Grant a minimum of 30 days to taxpayers or their representatives outside of the continental United States. Include the exact amount of refund with interest stated separately, and if indicated on IDRS, warn of possible offset. Close the TAS case if no response from the taxpayer or their representative by the date stated on the letter.

(1) Lost or stolen refund check inquiries will be handled in accordance with IRM 21.4.2, Refund Trace and Limited Payability, and IRM 21.4.1.4.4, Refund Issued But Lost, Stolen, Destroyed or Not Received, unless economic burden exists, and can generally be closed once the IRS has no further influence and the taxpayer must communicate with BFS. These include, but are not limited to, the following situations:

1. Refund Inquiry - No Form 3911, Taxpayer Statement Regarding Refund, Filed by Taxpayer - Close this case when either the Form 3911 has been sent to the taxpayer or the IDRS CC CHKCL has been input per oral statement criteria and the IDRS control has been opened with the appropriate campus’s Refund Inquiry Unit IDRS number. Oral statement criteria applies to all filing statuses. For Married Filing Joint (MFJ) taxpayers, the caller must verify that neither spouse cashed the refund check. This verification must be notated as a history item on AMS.

2. Refund Inquiry - Form 3911 Previously filed by Taxpayer or Taken by Oral Testimony from Taxpayer (CC CHKCL previously input or TC 971 with appropriate AC present) - TAS must obtain information regarding the disposition of the refund from BFS. Based on procedures in IRM 21.4.2, Refund Trace and Limited Payability, take appropriate action to resolve the taxpayer’s refund trace inquiry, including advising the taxpayer to contact BFS.

(2) If the check has been cashed, close the TAS case when either the IRS or BFS has sent a copy of the cancelled check and Form FS 1133, Claim Against the United States for the Proceeds of a U.S. Treasury Check (Letter 206C, Refund Inquiry; Copy of Check Requested/Check Being Traced (Form FS 1133)), to the taxpayer (status code 11 or 14). If a print of the cashed refund check has been provided to the taxpayer from Payments, Claims and Enhanced Reconciliation (PACER) on-line and a Form 3911 has been provided, the case can be closed.

(3) Once the Form FS 1133 has been sent out, the taxpayer will be advised to direct all further inquiries regarding the status of the refund trace through the BFS Check Claims Branch at 1-855-868-0151. See IRM 21.4.2.4.12(2), Bureau of the Fiscal Service (BFS) Claims.

1. IRM 21.4.2.4.12.1, Undeliverable Form FS 1133, should be followed when the taxpayer states a copy of the Form FS 1133 was not received from BFS.

2. Provide the taxpayer with the check symbol and number. Use CC IMFOL# to find the check symbol and number.

(4) If the check has not been cashed, there are two options:

1. Wait until the money comes back to the IRS from BFS, an action which automatically reissues the check, closing the case when the TC 846 has posted, and the account shows a zero balance; or

2. Verify the credit is on the module then issue a manual refund, closing the case when the TC 840 has posted, the module shows a zero balance, and the taxpayer has received the check.

(5) Refund Inquiry - Non-Receipt of Direct Deposited Refunds - take appropriate action based on IRM 21.4.1.5.7.5, Non-Receipt of Direct Deposited Refunds - “Refund Inquiry Employees”.

1. If issuing a manual refund, close the case when the TC 840 has posted, the module shows a zero balance, and the taxpayer has received the check (plus any applicable interest).

2. If taxpayer or their representative caused the error and the financial institution will not return the credit, close the case once the taxpayer is notified that the IRS does not have the authority to demand the return of the refund from the designated financial institution because the refund deposit went into the account listed on the tax return; or

3. If a direct deposit was diverted as a means of theft by an IRS employee or someone impersonating an IRS employee, close the case after making a referral to Treasury Inspector General for Tax Administration (TIGTA) following IRM 21.4.1.5.7.1, Direct Deposit of Refunds, IRM 21.4.1.5.7.5, Non-Receipt of Direct Deposited Refunds - “Refund Inquiry Employees”, and IRM 21.4.2.3, Refund Trace Process.

(6) Taxpayer filed Form 13818, Limited Payability Claim - When a refund check being traced is over 14 months and 15 days old, the case must remain open until the determination is made whether to reissue the check and, if reissued, the reissued refund check posts to the account and the account is in zero balance.

(1) Close the TAS case after the taxpayer has been notified, the TC 840 has posted, the account has a zero balance and TAS verifies the taxpayer received the refund (except in cases that would not be expected to go to zero balance such as bankruptcy, Social Security Administration (SSA) tax for foreign students, third party claims, etc.)

(2) If the taxpayer is not available by telephone, a letter must be sent to verify the taxpayer received the refund check. The TAS letter will advise the taxpayer to contact TAS by a specific date if the refund is not received by that date. Include the exact amount of refund with interest stated separately, and if indicated on IDRS, warn of possible offset. Close the TAS case after a reasonable time frame for receipt after the time stated on the letter. Take into consideration the location of the taxpayer, foreign, local or cross country, in determining what is a reasonable time frame. Generally, two weeks or less is reasonable, but grant a minimum of 30 days to taxpayers or their representatives outside of the continental United States.

(3) When a TAS case results in the issuance of a manual refund by TAS, document the issuance on TAMIS by selecting the Manual Refund button on the TAMIS Closing Action Screen. Check the Manual Refund box whether the manual refund was provided by TAS directly (within our statutory or delegated authority) or was provided by the IRS Operating Division or Functional Unit via an OAR.

(4) Refer to IRM 21.4.4, Manual Refunds, and IRM 3.17.79, Accounting Refund Transactions, for additional information on TAS manual refund procedures.

(1) When additional information from the taxpayer or representative is required because the information is not available through internal sources, two attempts must be made (the second must be in writing) to obtain the information or documents. The second request must provide:

• a specific date the response is due;

• the consequences of no response or a partial response;

• the balance due on the accounts, including accruals computed through a specific date; and

• list the specific document(s) needed to assist in case resolution.

(2) If there is no response to the second request by the date requested in the letter, close the TAS case. Document an explanation if longer or shorter time frames are agreed upon with the taxpayer or representative, and reasons for requesting information from the taxpayer or representative that could not be obtained from the IRS. Grant a minimum of 30 days to taxpayer or representative outside of the continental United States.

1. If TAS must contact a third party (e.g., bank, employer, etc.) for information and does not receive a reply, tell the taxpayer of the lack of response, and give them a reasonable amount of time to furnish the information before closing the case.

(3) Allow sufficient time for taxpayer or representative responses. Consider the following factors when setting response dates:

• Type of information requested;

• Source of the documents;

• Volume of documentation requested;

• Taxpayer’s ability to obtain the documentation;

• Taxpayer is not represented and reliant upon their own resources in securing documentation;

• Statutory of OD/Function deadlines; and

• Taxpayer’s specific circumstances.

(1) Payments and adjustments fully satisfying NMF accounts must post to the taxpayer’s account. A current NMF transcript reflecting the posted transactions must be obtained prior to closing the case for documentation purposes.

(2) Payments and adjustments fully satisfying MFT 31 accounts must post prior to the taxpayer’s account. An IDRS print of the MFT 31 account reflecting the posted transactions must be obtained prior to closing the case for documentation purposes.

(3) There are other situations that involve more than one MFT. In multiple MFT situations, TAS must verify posting of the credit transfer on both MFT modules before closing the case. It doesn’t matter which issue brought the taxpayer to TAS.

(1) There are three main processes involved with OICs:

1. Processability determination;

2. Offer investigation; and

3. Appeals Review.

(2) The general case closing criteria listed below applies to OICs where there is doubt as to collectibility or doubt as to liability. If the sole issue is whether to stay collection while the offer investigation is pending (or during a subsequent Appeals Office review), close the TAS case when the appropriate collection stay determination has been made. TAS should ensure adherence to IRM 1.2.1.6.16, Policy Statement 5-97, IRM 5.8.4.6, Initial Compliance Screening, and IRM 5.8.4.7, Initial Offer Actions. The collection stay will generally be evident by IDRS Master File Status Code (SC) 71 (MF) and SC 89 (NMF).

(3) If an OIC determination was made on a TAS case and the taxpayer or representative disagrees with the decision and wishes to exercise appeal rights, TAS should exercise judgment as to whether the case should remain open in TAS or be closed. TAS should consider the request and the benefit to the taxpayer. The case does not have to be held open unless the taxpayer requests that TAS provide assistance with the Appeals process. In deciding whether to close such a case, TAS should use common sense and good judgment as to the likelihood that there will be a continuing dispute that warrants TAS’s ongoing assistance. If the case is to be closed, remind the taxpayer they can re-contact TAS if they find the Appeals process is not working.

(1) When the issue in the TAS case is the processing of a return, close the TAS case when TAS verifies there is a TC 150 showing on CC IMFOL or BMFOL and the taxpayer has been advised of any refund or balance due.

(1) Examination RPS cases include open examinations, requests to reopen examinations, and prior-year revenue protection projects. Open RPS cases may be identified by an “L” freeze indicator and a RPS Project Code like the 600 or 099 series project codes on CC AMDISA.

(2) Close a TAS Examination RPS case when either the documentation has been received from the taxpayer that validates the Fuel Tax Credit, the EITC or the dependency eligibility, or the taxpayer agreed with the assessment; and

1. IDRS and AIMS research indicates that the L, P, or R freezes have been released; and

2. The taxpayer has been notified that the information has been accepted, and the date the refund can be expected (if applicable).

(3) If the taxpayer submits the information after the first request from TAS but the information is not sufficient to validate the Fuel Tax Credit, the EITC or the dependency eligibility, TAS must advise the taxpayer that additional information is needed. This required second request must be in writing and must specifically indicate to the taxpayer what information is missing and the consequences if there is no reply. TAS may determine that a telephone call to the taxpayer explaining what specifically is needed would assist in clarifying the documents needed to resolve the taxpayer’s problems. After the telephone call, the written second request would memorialize the telephone conversation by stating “Per our conversation today, I need the following information to move forward on your case.” If the information requested in the second contact is not received by the specified time frame, forward the information previously submitted by the taxpayer to the Correspondence Examination Unit on Form 4442, Inquiry Referral, then close the TAS case.

(4) If the taxpayer submits no information after two TAS requests (second request must be in writing), close the TAS case.

(5) If the OD/Function determines the taxpayer's information submitted does not merit an allowance, and TAS agrees with the OD/Function’s decision, close the TAS case when the taxpayer or representative has been notified of the denial and given appeal rights. Prior to closing the TAS case, TAS will ensure the taxpayer received a 30-day letter as well as Pub 5, Your Appeal Rights and How To Prepare a Protest If You Don’t Agree. The 30-day letter will afford the taxpayer an opportunity to request an Appeals conference. If the taxpayer decides to go to Appeals, the TAS case should remain open at least until the taxpayer is provided an appointment date and time. Whether the TAS case remains open once the appointment is scheduled will depend on the facts and circumstances of the case. For example, if the taxpayer is facing economic harm, the TAS case will remain open to ensure Appeals expedites the case. See IRM 13.1.21.2.2.2, Appeals.

(6) If a manual refund is issued, TAS must verify:

1. the L, P, or R freezes have been released;

2. closing criteria for manual refunds have been followed (e.g., TC 840 is posted to the MF, the account has a zero balance, and verification that the taxpayer has received the refund check).

(1) Close a TAS scrambled SSN case when all affected modules are correctly posted to the temporary number, the taxpayers have been issued letters regarding their account and their temporary TINs, and Form 3857, Request for SSN Clarification, has been sent to the Social Security Administration (SSA) by the Scrambled SSN Coordinator in Operations. Non-TAS taxpayers must be addressed as a related issue.

(2) If the case resulted in a mixed entity, refer to IRM 21.6.2.2, What Are TIN-Related Problems?

(1) If the taxpayer or representative requests their case be withdrawn, closed with no further action by TAS, or indicates they only want to work with the Operating Division employee, close the TAS case after a letter is issued to the taxpayer or representative stating that TAS is closing the TAS case by their request. The closing letter must state that the taxpayer may recontact TAS if any further assistance is necessary.