21.3.3. Incoming and Outgoing Correspondence/Letters

(1) This section was updated to conform with Internal Controls information as outlined in The Heightened Awareness, Sensitivity, and Understanding of Internal Controls Memo dated September 14, 2016.

(2) The information presented in this section is only for general correspondence guidance. Employees throughout the IRS respond to taxpayer inquiries using Correspondex and Service Center (SC) letters. Correspondex (C) and Service Center (SC) letters are constantly being added, deleted, or revised.

(3) Only use Headquarters approved C letters, SC letters and local use letters not mentioned in this section. IRM 21.1.2.2.2, IRM 21 - Change Requests/Servicewide Electronic Research program (SERP) Feedback.

(1) Information about authorities delegated to Accounts Management can be found in IRM 1.2.1.13, Policy Statements for Customer Account Services Activities.

(2) The policy statement relating to taxpayer correspondence can be found in IRM 1.2.1.13.3, Policy Statement 21-3 (Formerly P-6-12), Timeliness and Quality of Taxpayer Correspondence.

(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 accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see Taxpayer Bill of Rights, for more information.

(4) These authorities take many forms: Treasury Regulations, the Internal Revenue Code (IRC), legislation, revenue rulings and revenue procedures, and advice from Counsel to name only some.

(5) Specific revenue procedures are cited in the IRM when they are applicable to the issue being covered.

(6) The IRM cites specific pieces of legislation when the information is relevant to the taxpayer correspondence or is useful for the employee’s greater understanding of the matter at hand.

(1) IRM 1.1.13.7.3, Accounts Management (AM), provides various guidance for Accounts Management employees.

(2) IRM 21.1.1, Accounts Management and Compliance Services Overview, provides guidance to employees assigned to the Accounts Management organization.

(1) IRM 1.4.16, Accounts Management Guide for Managers, provides guidance for program management and review of programs assigned to Accounts Management.

(1) Accounts Management Program Letters, Measures and Operating Guidelines.

(2) IRM 21.10.1, Embedded Quality (EQ) Program for Accounts Management, Campus Compliance, Field Assistance, Tax Exempt/Government Entities, Return Integrity and Compliance Services (RICS) and Electronic Products and Services Support.

(1) The ReferenceNet Legal and Tax Research Services page provides an Acronym Database to research acronyms found within this IRM.

(2) Acronyms used throughout the IRM subsections of this IRM are spelled out. Below are some acronyms and definitions used in this IRM:

(1) IRM 21.2.2-2, Accounts Management Mandated IAT Tools.

(2) Office of the Commissioner of Internal Revenue, IRS Correspondence Manual, the central IRM for correspondence.

(3) IRM 1.2.1.13.3, Policy Statement 21-3 (Formerly P-6-12), Timeliness and Quality of Taxpayer Correspondence.

(4) Document 6209, IDRS Processing Codes & Information.

(5) Servicewide Notice Information Program (SNIP).

(6) IRS Style Guide, Plain Language.

(1) Policy Statement P-21-3 is the result of a team formed to review Corporate Critical Success Factor 61 which dealt with existing requirements for the quality and timeliness of responses issued by the IRS. For more information see IRM 1.2.1.13.3, Policy Statement 21-3 (Formerly P-6-12), Timeliness and Quality of Taxpayer Correspondence.

(2) A quality product or response is accurate, timely, and addresses all issues based on the information provided.

(3) Responses must:

• Address all issues raised by taxpayers in their inquiries

• Request more information if needed, from the taxpayer

• Notify the taxpayer if more information is needed from outside the IRS

• Be written in language the taxpayer can understand

(4) See IRM 21.3.3.4.2, Policy Statement P-21-3 Procedures.

(1) The Internal Revenue Code (IRC) provides guidelines for the IRS which cover various issues, including taxpayer contacts.

(2) Where specific IRCs and Policy Statement P-21-3 guidelines conflict, IRC governs.

(3) Manually generated correspondence must include a contact name, telephone number, and unique employee identification number. See IRM 21.3.3.4.16.1, Preparing Outgoing Manually Generated Correspondence, for more information.

(4) Final response to taxpayer(s) must be initiated by the 30th day from the earliest IRS received date, unless the taxpayer has received an interim contact or interim contact has been initiated from the IRS by the 30th day.

(1) Public Law 104-13, Paperwork Reduction Act of 1995, requires that the Office of Management and Budget (OMB) approve forms or documents prior to being made available for use.

(2) Items that carry OMB information can be classified into two categories:

1. Information Collection Requests (ICRs) - A form, letter, notice, or other document used to request necessary information from at least 10 taxpayers. Each ICR is assigned a unique OMB number.

Example: ICRs include major tax forms and instructions, public use forms, C, (SC), and (SC/Submission Processing (SP)) letters, draft letters, and CP notices.

2. Document Perfection Requests (DPRs) - Also used to request information from at least 10 taxpayers. However, each DPR is not assigned a unique OMB number. Rather, it carries the OMB number of the document it perfects. An expiration date is not required on DPRs. DPRs include public-use forms, C - (SC), and (SC/SP) letters, draft letters, CP notices, quick notes, and Form 5260 (C-NOTES).

(3) OMB number and expiration date must be typed, or computer generated on ICRs.

(4) DPRs must carry OMB number of parent form.

1. Refer to OMB Index Listing on the Servicewide Electronic Research Program (SERP) for assigned OMB number and OMB code for each form at: OMB Index Listing

2. Use OMB code to input DPR C Letters. Refer to IRM 2.4.6, Command Codes LETER, LPAGE, LPAGD, LETUP, LETED, LLIST, and LREVW, for input procedures for OMB code.

3. A quick note can be a DPR. If it is used to request information to perfect a document, it must include the OMB number of the form to which the question refers.

4. Do Not use a C-NOTE to request information related to a form not included in OMB Clearance Index.

5. Input of OMB code will enter OMB number on C-NOTE.

6. Initiator is responsible for entering the OMB number on quick note.

(5) OMB requires that OMB number and expiration date appear in upper right corner of documents.

(6) ICRs must contain Paperwork Reduction Act Notice Language.

(1) The Office of Employee Protection (OEP) is responsible for maintaining the Employee Protection System (EPS), which identifies Potentially Dangerous Taxpayers (PDT) and Caution Upon Contact (CAU) taxpayers who may pose a threat to the safety of IRS employees, whose official duties require personal contact with taxpayers. See IRM 21.1.3.11, Potentially Dangerous Taxpayer (PDT) or Caution Upon Contact (CAU) Indicators, for current procedures for working PDT or CAU cases.

(2) The PDT or CAU indicator will appear in the upper right-hand section of the document or system display. For more information see IRM 25.4.1, Potentially Dangerous Taxpayer, or IRM 25.4.2, Caution Upon Contact Taxpayer.

(1) Initiate the appropriate letter when a request for a statement or certification of a taxpayer's account is received, or a request for a copy of a record of assessment under the provision of IRC 6203, Method of Assessment. Follow IRM 21.2.3, Transcripts.

(2) Follow disclosure provisions in IRM 21.1.3.2, General Disclosure Guidelines.

(3) Process "discovered remittances" per IRM 3.8.46, Discovered Remittance.

(4) Expedite the resolution of all disaster correspondence or claims.

(1) A quality response is accurate, issued when required, and addresses all issues based on the information the taxpayer provided. These guidelines apply to all correspondence or notices sent from the IRS whether they are in response to Policy Statement P-21-3 correspondence or any other responses needed to resolve a Non-Policy Statement P-21-3 issue other than exceptions stated below. See paragraph 7 below for what a timely response is.

(2) An accurate response must be written in plain language.

(3) When manually issuing final or interim responses, the opening paragraph must contain the date of contact or nearest date per IRM 21.3.3.4.2.3, Correspondence Date (Corr Date) guidelines. Use "dated" for answering inquiries received as correspondence. If "dated" is not available, "of" can be used instead. Use "of" for phone inquiry responses.

(4) Responses to Policy Statement P-21-3 correspondence must fully explain the action taken, even when that action is exactly what the addressee requested. See IRM 21.3.3.2(1&2), What is the Definition of Correspondence? - Policy Statement P-21-3 Exclusion List, for more information.

(5) See IRM 21.3.3.4.16.3.1, When to Respond, for when it is required to send a response.

(6) Check the following information before sending the closing letter to the taxpayer and the authorized representative:

1. The appropriate C-Letter is selected to preserve the audit trail on the taxpayer's account.

2. The appropriate and correct pre-printed paragraph(s) are selected.

3. The fill-in paragraph(s) selected address the taxpayer’s correspondence, and include pertinent, accurate, and complete information in the fill-ins.

   Reminder: To provide a complete response to a taxpayer correspondence, an open paragraph can be utilized, for example, inserting a paragraph from an existing C-Letter or a paragraph provided through IRM instruction.

4. Advise the taxpayer of the current balance due by utilizing Command Code (CC) INTST or the AMS Payoff Calculator to calculate a current balance due amount, if required per the IRM or requested by the taxpayer or their authorized representative. The current balance due will include accrued penalties and interest. When calculating the current balance due, add 21 calendar days to the issuance date of the taxpayer’s letter (30 calendar days from the IDRS letter input date) or 10 calendar days from the date of the taxpayer’s phone call. IAT balance due tool can also be used to correctly compute the balance due. If an accurate balance cannot be provided, advise the taxpayer and/or authorized representative using pre-printed paragraphs in the appropriate C-Letter (if available) that a notice of adjustment and balance due will be issued within 4 to 6 weeks. In addition, provide information that payments can be made to reduce their tax liability and interest.

   Reminder: See IRM 21.3.3.4.2.2.1, Required Information for Interim Letters and Closing Letters, about accounts with an installment agreement (status 60).

   Caution: If a balance due remains on the account after all actions have been completed, release any TC 470, or enter CC STAUP with the appropriate number of cycles to release the hold on the account, when applicable. See IRM 21.5.2.4.8.2, Suppressing Balance Due Notices, for more information.

5. The transcript of the account is included, if requested.

6. Ensure all applicable enclosures/attachments are included. If forms or publications are needed, direct the taxpayer or authorized representative to visit www.irs.gov or they can call toll-free at 800-829-3676.

(7) A final response or interim letter initiated within 30 days of the IRS received date is considered a timely response. Whenever possible, issue a response in less than 30 days. See IRM 21.3.3.4.2.2, Interim Responses, for more information.

(1) Due to the continued increase in electronic filing of returns, the need for returns processing and related functions continues to decrease.

(2) Several Taxpayer Services Submission Processing (SP) sites will cease operations, or "Rampdown". Submission Processing (SP) support functions of that SP site will be transferred to another SP support site. Some of the mail activities will be absorbed by Accounts Management (AM) at that SP site. Still other activities will be transferred to another SP site (returns processing).

(3) It is important to remember that the SP sites that rampdown will still house other functions such as Appeals, Facilities Management and Security Services (FMSS), Information & Technology Services (IT), Disclosure, Taxpayer Advocate Service (TAS), Scheme Development Center, Treasury Inspector General for Tax Administration (TIGTA), Compliance, and Accounts Management. Only SP will rampdown.

(4) When instructions direct that something be referred or routed to any function normally located at an SP Site, it is the responsibility of the person making the referral to determine the correct SP location. Use the table below to route returns to the appropriate Submission Processing campus.

(1) It is imperative that all correspondence be controlled correctly and in a timely manner. Good inventory management is a necessity. If cases are controlled correctly and timely, using the tools available, good inventory management is easier.

(2) The procedures that follow are the basic steps for controlling and working inventory for correspondence received from taxpayers. Specific IRM references are included. Consult those IRM references for the most complete instructions.

1. Determine where a case should be worked and if not, refer case to appropriate area/office using procedures in IRM 21.3.5, Taxpayer Inquiry Referrals Form 4442. Also see IRM 21.3.3.4.8, Taxpayer Inquiries and Complaints.

2. Use Command Code (CC) SUMRY to determine if there are open controls in other campuses. If so, refer case to appropriate campus and send the86C Letter, Referring Taxpayer Inquiry/Forms to Another Office. See IRM 21.3.3.4.2.1, Use of 86C Letter - Referring Taxpayer Inquiry/Forms to Another Office.

3. Determine earliest IRS received date of correspondence. See IRM 21.5.1.4.2.4, Received Date- Determination.

4. Control all correspondence by the later of 14 days from the earliest IRS received date or 3 business days (including the day of receipt) from receipt in controlling area. See IRM 21.5.1.4.2.2, Integrated Data Retrieval System (IDRS) - Control Procedures, for more information on controlling cases.

5. Control cases using the correct status code and category code (e.g., XRET or TPRQ). This is not an all-inclusive list; see Document 6209, Section 14 Part 9, for a complete listing of valid controlling category codes. Due to the 45-day aging criteria of correspondence, Do Not change the category code to a non-correspondence category code unless it is a control error and the case is not correspondence per Policy Statement P-21-3 criteria. If a correspondence category code needs to be updated to a non-correspondence category code and an interim letter for the case has been issued before the category code is changed, then a response must be sent when the case is closed. Taxpayer-initiated correspondence received from another IRS office/area must still be controlled with the correct category code.

6. Suppress all balance due notices (CC STAUPS/Transaction Code 470) while the case is in inventory. Adjust or release the hold as needed when the case is closed or routed to another area. See IRM 21.5.2.4.8.2, Suppressing Balance Due Notices.

7. Follow all Policy Statement P-21-3 guidelines on all taxpayer correspondence cases. See IRM 21.3.3.4.2, Policy Statement P-21-3 Procedures.

8. Issue an interim response when a final response cannot be issued to the taxpayer within 30 days of receipt. See IRM 21.3.3.4.2.2, Interim Responses.

9. Any action taken while the case is in inventory must be documented on IDRS and/or in CII/AMS and updated as needed. Follow procedures outlined in IRM 21.5.1.4.5, Suspense Folders, when suspending any case. Report any action taken (for example: requesting document from Files) and update the IDRS history and/or status as needed.

   Note: The received date, as reflected on IDRS, remains the same until the case is closed.

   Reminder: Non-CII users, when sending suspense letters to taxpayers, must use the IDRS control base "S" (Suspense). This is only required when the IRS sends out a letter and is waiting for a response from the taxpayer.

(3) When ready to close the case, ensure all applicable actions are taken.

• Will the taxpayer receive a notice of adjustment or credit transfer sufficient to explain all issues raised by the taxpayer?
  If not, an appropriate letter must be issued. See IRM 21.3.3.4.16 Outgoing Correspondence.

• Will an adjustment or credit transfer bring the balance to zero or debit?
  If not, release/reduce holds (CC STAUP), as needed.

• Did taxpayer request a refund?

• Did you reverse all misapplied payments and offsets?

• Did you check that there are no other open controls or that no other correspondence has been received?

(1) This subsection addresses guidelines and procedures to follow in working cases that meet Policy Statement P-21-3 criteria.

(2) Many types of correspondence are excluded from Policy Statement P-21-3 but may still require a response depending on the program being worked. The Policy Statement P-21-3 Exclusion list is not all-inclusive and other exclusions may exist. Each piece of correspondence must be evaluated on a case-by-case basis to determine if it meets Policy Statement P-21-3 criteria. See IRM 21.3.3.2, What is the Definition of Correspondence? - Policy Statement P-21-3 Exclusion List.

(3) When a particular program has correspondence guidelines, the program procedures govern. For example, a particular program may require taxpayer contact within 10 days instead of the 30 days required under Policy Statement P-21-3 guidelines.

(1) Dispose of returns using the following guidelines:

1. Refile numbered returns.

2. Route unnumbered returns for processing.

3. Destroy unsigned copies of filed returns and other material as classified waste when it is no longer needed for use in developing a case. See IRM 21.5.1.4.10, Classified Waste and IRM 10.5.1.6.10, Disposition and Destruction.

(2) Destroy illegible returns once you have determined they are unidentifiable.

(1) Use IDRS research capabilities to the fullest extent for correspondence, control, and research. Use Corporate Files On Line (CFOL) command codes and AMS Account Summary Tools, whenever possible, to obtain information before ordering a MFTRA or requesting a document from Files.

(2) Do Not request original return if sufficient information is available through CFOL. CFOL provides on-line access to current Masterfile (MF) information for users in any campus through telecommunications network. Using CFOL command codes saves time and reduces unpostable conditions. CFOL command codes are available even when IDRS is down or NOT available.

(1) Form 8596 and Form 8596-A are only processed at Kansas City. Forward all correspondence or replies received in reference to these forms to:

Kansas City Campus
IRP Group M/S 6052 Bldg S-1
333 W Pershing Rd.
Kansas City, MO 64108-4302

(1) Research IDRS to determine if Collection Case Assignment has been established. If so, forward Form 4219, Statement of Liability of Lender, Surety, or Other Person for Withholding Taxes, to controlling employee at the appropriate field office.

(2) If no Collection Case assignment is present on IDRS, forward Form 4219 to the Advisory Group that services employer’s address. For the Advisory Group’s address see Collection Advisory Group .

(3) If there is a field office stamp on Form 4219, complete the proper form to associate Form 4219 with the employer's Form 941.

(1) This section identifies various types of correspondence received at a processing campus and provides procedures for handling.

(2) The goal of routing correspondence is to deliver taxpayer inquiries to the appropriate office that has information or documents needed to respond to the taxpayer.

(3) A taxpayer inquiry may be routed to the appropriate area during the sorting process or after further analysis in Accounts Management or other Business Operating Divisions (BODs) that process taxpayer’s inquiries. In either case, route the inquiry to secure all information needed to reply to taxpayer.

(4) Route all inquiries using proper routing transmittal.

(5) Ideally, one office should assume responsibility for responding to an incoming inquiry and any related correspondence. Therefore, try to consolidate correspondence and copies into one area functionally responsible for preparing the reply. The responding office determines and initiates the needed action on the account. See IRM 21.5.2.3, Adjustments Guidelines Research.

(6) Also use IRM 3.10.72, Receiving, Extracting, and Sorting, IRM 3.13.62, Media Transport and Control, and local guidelines in conjunction with this IRM for routing correspondence to appropriate area.

(1) Taxpayer Complaints - The employee's team manager ensures that taxpayer complaints are identified and handled promptly. Handle this type of correspondence separately and expeditiously from regular workflow. See IRM 21.1.3.16, Taxpayer Complaints/Compliments about IRS Service.

(2) TAS (Taxpayer Advocate Service) - Business Operating Divisions (BODs) should not refer cases to TAS if a resolution or steps can be taken to resolve the taxpayer's issue within 24 hours (same day resolution). However, cases where the employee cannot resolve the issue within 24 hours but has taken steps within 24 hours to resolve the taxpayer's issue also meet the definition of same day. Do not refer these cases to TAS unless the taxpayer asks to be transferred to TAS. Refer taxpayers to TAS when the contact meets TAS criteria according to IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps cannot be taken to resolve the taxpayer's issue the same day.

1. Per the Taxpayer Bill of Rights (TBOR), taxpayers have the right to expect a fair and just tax system which provides taxpayers with the opportunity to have their facts and circumstances considered when it might affect their underlying liabilities, ability to pay, or ability to provide information timely.

2. Taxpayers have the right to receive help from the Taxpayer Advocate Service (TAS) if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through normal channels.

3. When making a TAS referral, use Form 911 and forward to TAS per your local procedures.

(3) Embarrassment to the IRS - When correspondence is critical or involves issues that could cause embarrassment to the IRS (e.g., reaction to notices involving levies), contact the function in the campus, area or field office, or other agency, directly (by telephone) to alert them that correspondence has been received and is being directed to their office.

(4) Field Office - Forward taxpayer replies to correspondence received in a campus to proper field office unless the case has been reassigned to a particular campus.

(5) Centralized Processing - Forward all correspondence relating to returns that receive centralized processing, to appropriate campus for processing, unless otherwise specified. These include taxpayers living in foreign countries, Form 6069, Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust Under Section 4953 and Computation of Section 192 Deduction, Form 990-BL, Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Person, International, and many other programs and issues. Document date the 86C Letter was sent and date initiated.

(6) Routing Transmittal - Use the proper transmittal to route all incoming correspondence that relates to an IDRS controlled case assigned to a function or specific examiner to that assigned area.

(7) Use Form 14219, Return of Documentation to Taxpayer, to return documents submitted by taxpayer but not required to process inquiry. Examples of such items are receipts, canceled checks, Form W-2, and original Form W-4.

(8) Signature Requirements - If taxpayer wants to know why a signature is needed, advise that IRC 6061 requires original signatures on returns and in certain other situations. Exceptions to original signature requirement apply to Form 1040NR and Form 1041 (Rev. Rul. 68-500).

(9) Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit, see IRM 21.3.3.4.8.5, Forms/Loose Forms Correspondence/Inquiry.

(10) Field Referrals - Follow the routing procedures outlined in this Section to refer the inquiry or correspondence to the appropriate office/area for further consideration/processing:

(1) Unless otherwise specified in this section, mark all late replies from taxpayer or representative "Late Reply" and route to originating area.

(2) Route Employee Plans late replies to EP Accounts Management,
EP Accounts Unit
Mail Stop 6552
1973 N Rulon White Blvd.
Ogden, UT 84201

(3) Process late replies for Exempt Organizations (EO) as follows:

• To process Form 990,Form 990-EZ, and Form 990-PF, requires the CSR to correspond twice with organization to obtain missing information.

• Use the 2694C Letter, 2695C Letter, 2697C Letter, 2698C Letter, or the 2699C Letter to obtain this information.

(4) If a late reply to the 2696C Letter, 2697C Letter, 2698C Letter, or the 2699C Letter is received, research IDRS CC ENMOD to see if a second letter (2696C Letter, 2697C Letter, 2698C Letter, or 2699C Letter) was issued.

(5) When a late reply to an inquiry is received, route to Entity Control function if a temporary Social Security Number (SSN) was assigned and taxpayer now provides the actual SSN.

(6) If the taxpayer provides the requested information, stop the notice if it has not been issued.

(7) Take necessary actions to resolve situation. This may include preparation of a request for adjustment on a late reply to correct an adjustment action that was previously input.

(8) Process "Late Replies" for letters that were initiated by Document Perfection, Unpostables, or Rejects.

1. Stamp "Late Reply" on response.

2. No research is necessary.

3. Forward all schedules, forms, and requests for missing information and signatures to Accounts Management function.

4. Route SSN, address, and name changes to Entity Control function. Make all Master File entity changes as soon as possible. Exercise caution when correcting addresses shown on copies of returns, since they may reflect an old address.

(1) Forward all correspondence that might be a "non-filer" case to the unit which handles this type of correspondence. For more information see IRM 21.5.3.4.10, Returns Prepared Under IRC 6020(b) - Substitute for Return (SFR).

(2) If the correspondence is returned , forward to the Campus Examination function.

(1) This section provides guidance when undelivered mail is received in Accounts Management.

(1) Miscellaneous elections and forms include:

• Special forms requiring exception handling and maintenance.

• Loose forms or schedules that should have been attached to a tax return when it was submitted but are detached due to incorrect processing or sent in separately by the taxpayer.

• Computer Paragraph (CP) notices are generated by the IRS to notify employees or taxpayers of a special circumstance on an account requiring action.

(2) Forward elections filed under the sections of the IRC listed below to Return Files function for association with the original income tax return. If research shows no return has been filed, return the document(s) to the taxpayer on Form 14219, Return of Documentation to Taxpayer. Request that the document(s) be resubmitted when the taxpayer files a return.

• IRC 243

• IRC 103

(3) A person who realizes a gain or other income because of an exchange to which IRC 367(b) applies must file a notice of such exchange on or before last date for filing a federal income tax return for taxable year in question. Route these notifications to Examination Classification function.

(4) Form 5213, Election to Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for Profit, is filed under IRC 183(e). Upon receipt, route to field office to attention of Planning and Special Programs Manager, Examination function. Indicate on transmittal document that Section 183(e) elections require follow-up action on subsequent returns. Send elections to field office with jurisdiction over address of taxpayer on Form 5213.

(5) Route all elections with a notation "Filed under IRC 2032A" or containing a reference to Form 706, United States Estate Tax Return, Valuation Election, to the Estate and Gift Tax Operation at the Cincinnati campus. See IRM21.7.1.4.4.3, Estate and Gift Inquiries - Accounts Management, for mailing address. If a claim is attached to election, route both claim and election to Estate and Gift Tax Operation.

(6) Taxpayers may submit letter requests to retain (or adopt) a fiscal tax year under the Subchapter S Revision Act of 1982. Route these requests to Entity Control.

(7) If a request for redemption of registered securities, input TC 930, push code, to associate the request with the "Registered Owner" corporation's income tax return for period that includes "Date Paid".

(8) Associate a request identified under IRC Section 936 for Revocation of an Election to be Treated as a Possessions Corporation, as set forth in Treasury Reg. Section 1.936-7(d), with the original return.

(9) Route Form 8546, Claim for Reimbursement of Bank Charges, per the chart below:

(10) Route election or Form 8023, Elections Under IRC 338 for Corporations Making Qualified Stock Purchases, shown below to field office with jurisdiction over purchasing corporation (or common parent of purchasing corporation if a consolidated return is filed) listed on election or Form 8023. If unable to determine correct field office, route election to SBSE Exam Classification. Use the purchasing corporation's address in box 2a of Form 8023 to determine correct field office as shown below.

1. IRC 338(h)(10) election for target corporation listed in Section B of Form 8023

2. IRC 338 election for target corporation listed in Section B of Form 8023

3. An IRC 338 Election for target corporation, in addition to one listed in Section B of Form 8023 (e.g., a combined or multiple election); or

4. Any other election on Form 8023

(11) Follow the table below forIRC 83(b) - Election to include Certain Restricted Property in Gross income or IRC 83(i)- Election to include Certain Qualified Equity Grant in Gross income.

(12) IRC 7430 allows a taxpayer who prevails before the IRS in an IRS administrative proceeding to request reimbursement of reasonable administrative costs incurred in defending the taxpayer’s position. Route all requests for IRC 7430 administrative costs awards to Appeals unless the request is addressed to a specific IRS employee or IRS office. Presently, there is no IRS form for requesting IRC 7430 administrative costs award. Taxpayers and their representatives may file such a request by mailing a letter or Form 843, Claim for Refund and Request for Abatement, to the IRS. If unsure whether the Form 843 is requesting an IRC 7430 administrative costs award, please consult with the lead or manager.

(13) Rev. Proc. 2011-34 provides guidance for qualified real estate professionals to make a late election to aggregate all interests in rental real estate as a single activity. Refer to IRM 21.5.3.4.16.12, Late Election by Real Estate Professionals - Revenue Procedures 2011–34, for processing guidance.

(14) Refer to IRM 3.10.72, Receiving, Extracting, and Sorting, for proper routing instructions for other types of elections or notification. If routing instructions are NOT in the IRM 3.10.72 and are NOT identified specifically in these instructions, route the election to Return Files function for association with the return. Underline the name-control on all items routed to Return Files function and enter MFT and tax period in top margin.

(1) A CP 575 Notice is systemically issued to the taxpayer when the Employer Identification Number (EIN) is successfully assigned. See IRM 21.7.13.7.8, Computer-Generated Notices to Taxpayers, for more information on the CP 575 notices.

(1) Correspondence that should not have come to the IRS is received from two principal sources:

• The U.S. Postal Service (USPS)

• Sender

(2) Return packages to USPS when they made the error.

(3) After determining that correspondence is a return that should have been filed in one of the locations listed below, send it to correct jurisdiction. Otherwise, return to sender.

1. A state of the U.S. or a local jurisdiction

2. District of Columbia

3. Commonwealth of Puerto Rico or a territory of the United States

(4) If it is an original return that should have been filed in a foreign country, return it to sender, if possible. If it is undeliverable, forward to State Department addressed as follows:

Consular Officer American Embassy (Name of foreign capital city only)
Department of State
Washington, DC 20520

(5) Do Not include name of foreign country in address.

(6) Whenever such misdirected mail is found to contain a remittance, follow instructions in IRM 3.8.46, Discovered Remittances, if remittance is cash. If other than cash, follow instructions in IRM 3.10.72, Receiving, Extracting, and Sorting.

(1) Transship referrals to campuses using Form e4442 / 4442, Inquiry Referral, Enterprise Electronic Fax (EEFAX or ee-Fax), Correspondence Imaging Inventory (CII) or transmit by telephone. Field offices may use messenger or mail service to transship referral cases when background material must be sent with case. Referrals can be made to a campus from the field level, from another campus, or from within the campus after research of all available data does NOT resolve inquiry.

(2) If an IDRS control base already exists on a referral case, update and reassign the case to the required function. Control routine case referrals on IDRS following guidelines in IRM 21.5.1.4.2.2, Integrated Data Retrieval System (IDRS) - Control Procedures.

(3) Designated Personnel at the campus will process referrals to completion or transfer the case to the correct area if more action is required for final resolution of inquiry.

(4) Maintain control to ensure that a written reply is made to the taxpayer on referrals within 30 calendar days of IRS received date. If a final reply cannot be issued within this timeframe, issue an interim reply in writing or by telephone to the taxpayer. Resolve the referral as soon as possible.

(5) If an interim letter was sent from a field office, there is no need to send another letter from the campus.

(6) Campus replies directly to the taxpayer in all cases except those in which a previous agreement dictates that the reply should go to referral resolution point in field office. See IRM 13.1.7.2, TAS Case Criteria, and IRM 13.1.17, TAS Case Transfer Process, for procedures for TAS referrals.

(7) When replying to a taxpayer by telephone:

1. provide your name and identifying number.

2. provide your telephone number if taxpayer must furnish more information.

3. inform the taxpayer if the telephone number is not toll-free.

4. update the case history in AMS/CII with the record of telephone conversation.

(8) If referred inquiry relates to an assigned field case (Taxpayer Delinquent Account (TDA) or TDI), forward to campus Collection Operation (CSCO); Do Not establish IDRS control.

(1) This section provides instructions for preparation and review of C letters, SC letters, special letters, and handwritten replies.

(2) The CORRESPONDEX (CRX) letter generating system is the letter writing system for the Internal Revenue Service. There are over 600 letters available for use to fit almost every tax situation. Use CRX to generate letters to taxpayers through the Integrated Data Retrieval System (IDRS). Currently, letters without attachments are printed at the two National Print Sites located in Detroit and Ogden. Letters with attachments print in your jurisdictional campus.

(3) Effective June 30, 2013, the Correspondex Expert System (CES) Letter Tool used in conjunction with LPAGE, was obsoleted as a letter tool application primarily due to compatibility issues with Windows 7. The Integrated Automation Tool (IAT) Letters Tool was mandated for use replacing the CES.

(4) A searchable database with read only versions of current letters is available through SERP and has replaced the hard copy of Document 6548(CORRESPONDEX). See Correspondex Letters, for a complete listing of letters on SERP.

(5) More information can be found in IRM 2.4.6, Command Codes LETER, LPAGE, LPAGD, LETUP, LETED, LLIST, and LREVW. Also, refer to CORRESPONDEX Job Aid on SERP under Letters/Forms/Pub tab.

(6) Preparer Guidelines - IRS sends correspondence to taxpayers to solicit information necessary to perfect returns and documents being processed. It also responds to taxpayer inquiries.

(1) For purposes of anonymity, employees have the option of using only their last names on correspondence. Employees who have contact with the public, and do not believe use of only their last names provides sufficient anonymity, may ask to use a pseudonym.

(2) Section 3706 of the IRS Restructuring and Reform Act of 1998 authorizes the use of pseudonyms for IRS employees only if adequate justification is provided by the employee and its use is approved by the employee's supervisor. Justification may include protection of the employee's personal safety, by shielding the employee from physically, financially, or emotionally threatening actions.

(3) Refer to IRM 10.5.7, Use of Pseudonyms by IRS Employees, for detailed procedures.

(1) The Typing function receives Form 3696, Correspondence Action Sheet, from various areas within the campus. These forms request preparation of a form (SC) letter, pattern letter, or special letter.

(2) Except as provided in IRM 21.3.3.4.21, Quick Notes and 3064C Letters (C-NOTES), all correspondence must be typed.

(3) See IRM 21.3.3.4, Correspondence Procedures, for specific instructions on initiating various types of correspondence.

(4) Refer to IRM 1.10.1, IRS Correspondence Manual, for general instructions and proper format for preparing special letters.

(1) Prepare Form 3696-A, IDRS Correspondence Action Sheet, when it is necessary to initiate a C Letter to a taxpayer if unable to input letter on IDRS.

(2) Clearly specify necessary "fill-in" and selective paragraph information on Form 3696-A. Failure to do so may result in incorrect information being transmitted to the taxpayer. Avoid using IRS jargon. For example, when referring to tax year 2010, use 2010 rather than 201012. Tax period fill-ins coded as 13P can be entered as YYYYMM. They will be converted and printed on letter as a complete date "e.g., 201012" becomes December 31, 2010.

(3) In most instances, prepare a separate Form 3696-A for each case and attach to document requiring correspondence. In instances where there is a high-volume item, prepare a cover Form 3996-A. Whenever possible, attach Form 3696-A so that name and address portion on document is visible.

(4) Ensure all conditions requiring correspondence have been annotated and the Form 3696-A has been properly prepared. The terminal operator may return incomplete or illegible Forms 3696-A. Send remittance returns with Form 3696-A through computer processing. Preparation of correspondence on these documents takes place after computer rejection.

(5) Non-remittance returns can be withdrawn from processing with a Form 3696-A. Route all completed Forms 3696-A for input of a "C"-Letter if the local organization provides this capability. Ensure "fill-in" numbers identified on Form 3696 coincide with items on corresponding letter in CORRESPONDEX Letters on SERP. Failure to do so may result in incorrect information being transmitted to taxpayer.

(6) Input IDRS correspondence per IRM 2.4.6, Command Codes LETER, LPAGE, LPAGD, LETUP, LETED, LLIST, and LREVW. The IDRS number of the initiator generates on all IDRS CORRESPONDEX (CRX) letters.

(7) Effective June 30, 2013, the Correspondex Expert System (CES) Letter Tool used in conjunction with LPAGE, was obsoleted. CES transitioned to the Integrated Automation Technologies (IAT) Letter Tool. The IAT Letter Tool is superior to CES and is already mandated in Accounts Management and some other business operations. See IRM 21.2.2-2, Accounts Management Mandated IAT Tools, for more information.

(8) Ensure correct signature title codes are input to generate appropriate signatures on outgoing letters. If laser signature capability is not available, the signature must be either rubber stamped or manually signed. Signatures on outgoing letters are mandatory; failure to obtain a signature is coded as an error during Quality Review process.

(9) All manually generated letters must include the name, telephone number, and employee identification number of the employee who can be contacted. When CORRESPONDEX letters are input by the terminal operator, the operator must input the IDRS number of the initiator of the letter or the employee who is to be contacted.

(1) Prepare Form 3696–A when it is necessary to initiate an SC or SC/SP letter to taxpayer. (See IRM 21.3.3.4.19 Initiation of C Letters, for more information on completing the form instructions.)

(2) SC Letters are preprinted form letters and SC/SP letters are preprinted form letters in Spanish.

(3) Only the Philadelphia Campus uses reproduced copies of SC/SP letters. Other campuses that need to initiate a Spanish language letter should use SC/SP letter as a guide, using local dialect if it differs from that on SC/SP. Include a contact number of a specific person, if appropriate. If a specific contact point is not appropriate, include a telephone number as part of the letter. Do Not include an English language telephone stuffer notice with a Spanish language letter.

(4) In most instances, prepare a separate Form 3696-A for each case and attach to document requiring correspondence. In instances where there is a high-volume item, a cover Form 3696 may need to be prepared.

(5) Whenever possible, attach Form 3696 in such a manner that name and address portion on document is visible.

(6) Notate all the conditions requiring correspondence and prepare the Form 3696 properly.

(7) Letters must contain a telephone number of a person who may be contacted. This number can be toll-free.

(8) Send remittance returns with Form 3696 through computer processing. Preparation of correspondence on these documents takes place after computer rejection.

(9) Non-remittance returns may be withdrawn with Form 3696 from processing and then routed for typing.

(1) The purpose of Form 5260, Quick Note, is to provide quicker, more personal service. Similarly, a 3064C Letter (C-NOTE) may be input on IDRS.

(2) Quick Notes (Form 5260) must:

1. Not exceed one page in length

2. Contain neat, easy-to-read handwriting

3. Not be sent in situations where a form or pattern letter or telephone call would be more informative and responsive to inquiry

4. Have a proper salutation and name and title of originator

5. Include the telephone number of a specified contact person if initiation of Quick Note DOES NOT close case. Otherwise, include the toll-free telephone number. Refer to IRM 13.1.6.4, Written Communication, for Taxpayer Advocate Service cases

6. Include organizational symbol, stop number, and employee identification number

7. Be in black or blue ink

8. Be reviewed and approved by the employee's manager or team leader

(3) Examples of a few circumstances where a brief information message would suffice are:

1. Answering inquiries that can be properly answered within lined writing space allotted on Form 5260 without crowding writing or affecting writing style (e.g., use of too concise statements that may seem abrupt to taxpayer)

2. Returning documents to taxpayer when only a brief explanation needs to accompany documents

3. Acknowledging receipt of requested forms or data

4. Making interim replies and apologies for delays

5. Sending publications to taxpayers when needed to call attention to certain paragraphs or pages

6. Returning a letter to taxpayer when it is necessary to ask for a SSN or other required information omitted in letter; sending or confirming information when the taxpayer cannot be reached on a call-back

7. Adding a personal touch to assure taxpayer that an individual representative is working on the problem

(4) Originator must sign Quick Note.

(5) Postdate Quick Notes to allow sufficient time for review, stuffing etc.

(6) If using a 3064C Letter - Except for the handwriting requirement and mandatory 100 percent review, conditions for using a 3064C Letter, formerly known as the C-NOTE, are the same as those shown in (3) above. Do Not use a 3064C Letter if there is another appropriate C or SC letter available and/or no situation in (3) applies.

(7) Select the appropriate signature code for the 3064C Letter.

(1) The following covers review of C-Letters:

1. Acknowledgment and Special Letters are ordinarily dated one to three working days after terminal input to allow for review. Other letters are dated three to five working days after terminal input to allow for reviewing, adding enclosures, signing, folding, and stuffing for mailing.

2. Sort letters by number of copies, letter number, and employee number order. Number of copies should never exceed an original and one copy to taxpayer or POA. This does not include copies printed for suspense purposes.

3. Pull and destroy error letters, e.g., an IDRS letter that is noted by the initiator to be in error and that has not been deleted via CC LPAGD (See IRM 2.4.6, Command Codes LETER, LPAGE, LPAGD, LETUP, LETED, LLIST, and LREVW). The initiator notifies the reviewer (manager/lead) of name and address of party to whom letter was to be sent, number of copies, letter number, and employee number. The initiator must forward this information to the reviewer immediately so the letter can be stopped the next morning. Area and field offices must telephone this information to the campus reviewer (manager/lead), unless CC LPAGD was used.

4. Sort letters into categories such as those needing enclosures, those going to areas that review and mail their own letters, certified letters, and other special cases for special handling. Forward these to their respective areas for action.

5. Form 5703, IDRS Letter Enclosure, is available for nationwide use to show when one or more enclosures are required with a C-Letter. The area preparing the package for mailing must receive Form 5703 within three days from date of input. Associate Form 5703 with appropriate letter to identify related enclosures. Form 5703 is not necessary for all letters prepared. Some letters have no enclosures; others contain enclosures that are readily available to the area preparing package for mailing. A Form 5703 may also be used for EPMF C letters when more than one letter could be included in same envelope. Enter all the C letters numbers to be enclosed (and at some campuses, also sequence numbers) on Form 5701, Notice of Proposed Adjustment.

6. Review letters as necessary for misspelled words, errors in capitalization and punctuation, IRS jargon (e.g., tax year 201012) and other fill-in errors. Fill-in errors may include missing alpha designations on forms. For example, Form 1040 "A" or Form 1040 "SR" for individuals or Form 1120 "S" and Form 1120 "H" for business entities. Also, check for distorted or garbled print.

7. Return campus input letters having terminal operator errors to the initiator for correction or reinput. If an error letter input from an area or field office cannot be corrected at a campus, call the initiator to explain error and advise that the letter must be re-input. Furnish necessary information from the letter to identify and help with input. Return letters that have operator errors to the applicable office and note action taken by campus. Return related Form 5703 to the originator with letter.

8. Letters that are defective because of computer problems (e.g., rejects) or other reasons not due to terminal operator errors can be typed manually or returned to initiator for re-entry via IDRS. Use computer-printed error list to determine specific content (as input through terminal) of letters rejected by computer.

9. Review for missing signatures. All outgoing correspondence must be signed by hand, laser, electronic computer signature, or rubber stamp.

(2) The following covers review of SC and SC/SP letters:

1. Review letters as necessary for misspelled words, errors in capitalization or punctuation, IRS jargon (e.g., tax year 202112) and other fill-in errors. A missing apostrophe can occur in contraction words if a user has an incorrect type of apostrophe when a letter processes in IDRS. If they type the contraction directly into the letter system, like the IAT Letter Tool, it is fine. Users should make sure any apostrophe in a contraction word has a straight point (i.e., don't). Curly apostrophes are created differently in Word docs (i.e., don’t). When a curly apostrophe is copied into a letter system which will process back through CRX system/IDRS, the apostrophe doesn’t process correctly, and it will cause the apostrophe to disappear (i.e., don t) or run all together (i.e., dont). Return letters requiring typing or minor changes to typist.

2. Bring to the originator’s attention for correction of letters that contain significant grammatical errors, display poor sentence structure, contain inaccurate fill-in information, are obviously incomplete or inaccurate, or are of poor tone.

3. Make sure that all enclosures are present or can be machine-inserted if letter is not prepared for mailing in the Typing Function. If a current year return must be used as an enclosure because needed prior year return is not available (e.g., fiscal filer), edit current year return to reflect correct tax period and up-to-date exemption and standard deduction information.

4. These letters need not be signature-stamped; they have a printed facsimile signature. If a signature is not present, signature-stamp each letter, as needed.

(3) Review rough draft letters per above procedures.

(1) Make sure all enclosures have been associated with the outgoing correspondence. If the taxpayer has an authorized representative on file (Form 2848, Power of Attorney and Declaration of Representative), to receive certain tax information about a specific tax matter, mail notices and correspondence concerning that matter, along with a generated copy of the letter, to the representative. Indicate on the taxpayer's copy of letter that enclosures were sent to the representative. Staple enclosures between original and duplicate copy of the letter, if needed.

(2) Include telephone stuffer notices with outgoing correspondence if applicable. Do Not include stuffer notice with the following:

• The 86C Letter or 86(C-SP) Letter

• Letters with Army Post Office (APO), Fleet Post Office (FPO), foreign and out-of-region addresses

• Letters that contain a contact number or contact name and number as part of heading or text

(3) Route letters identified in (2) above to Machine Services function along with a transmittal document indicating, “Telephone Number Correspondence - Do Not Include Telephone Stuffer Notice.”

(4) Some campuses may instruct employees to stamp blank schedules enclosed with correspondence sent to a taxpayer to perfect a return. The stamp must show letter number and date so schedule may be easily associated with suspense item if completed schedule is returned without a copy of transmittal letter.

(5) Route one-page letters to Machine Services function for machine folding and stuffing per IRM 3.13.62, Media Transport and Control.

(6) Hand fold all two-page letters and one-page letters with enclosures.

(1) PII is taxpayer information or any combination of information that can be used to uniquely identify, contact, or locate a person that could subsequently be used for identity theft. Examples of PII include, but are not limited to:

• Names

• Home addresses

• Taxpayer Identification Numbers

• Dates of birth

• Home telephone numbers

• Other numbers or information that alone or in combination with other data can identify an individual

(2) Breaches of PII can be caused by the manual stuffing of envelopes with other taxpayer or additional taxpayer information. These are instances such as a taxpayer receiving another taxpayer's transcript of account or receiving his amended return along with another taxpayer's return.

(3) Extreme care must be taken to ensure that only the material relative to the taxpayer(s) to which the correspondence is addressed is enclosed in the envelope. These breaches are serious and can cause a significant hardship for a taxpayer if their PII ends up in the wrong hands. See IRM 10.5.4, Incident Management Program, for how to report inadvertent unauthorized disclosures.

(1) If past tax year joint filers have changed their filing status, the IRS mails correspondence to both parties when there is activity on an account. The purpose of this procedure is to assure that both taxpayers responsible for a joint account are aware of any action on account as soon as possible. IDRS letters, notices, and MF notices generate duplicate copies to notify both filers.

(2) Notification to both affected parties at earliest possible point in process results in improved taxpayer service, reduction in taxpayer burden, accelerated collection of taxes, enhanced voluntary compliance, and a marked reduction in need for manual research.

(3) Accounts with copies of correspondence generated to both filers contain special codes on screen.

• Tax module displays a TC 971 with Action Code 055 if correspondence is a notice.

• If it is a letter, Entity module shows a "C" for primary or "X" for secondary to show to which taxpayer letter was sent. IDRS letter to secondary filer has a lower case "c" in CAF position of header.

• Notices of deficiency have an "@" sign on top of secondary taxpayer's copy.

• TC 971 AC 055 was systemically generated on accounts prior to RRA '98 based on information on the original return.

(4) Do Not send a copy of notice or letter in all cases. If a joint account is changed because of an adjustment, notify both taxpayers.

1. Calls from taxpayers may be received indicating that taxpayer does not know why a particular notice or letter has been received.

2. Research IDRS for indicators mentioned above in paragraph 3. If condition exists, explain to taxpayer that our records show that a joint return was filed.

(5) Command Code SPARQ displays most current name and address information found on National Account Profile (NAP) for both primary and secondary SSNs. Refer to IDRS Terminal Response Handbook for instructions on how to use CC SPARQ to research addresses manually and to the Command Code Job Aid on SERP under the IRM Supplements tab.

(6) Refer to IRM 21.5.2.4.22.1, IMF Blocking Series 99 Special Consideration, for instructions on processing of ex-spouse accounts.

(1) Telephone calls are routed from various locations outside taxpayer's jurisdiction using Universal IDRS. Letters automatically generated from Integrated Customer Communications Environment (ICCE) use address of taxpayer's jurisdiction regardless of where call is received.

(2) Manually input the letters which cannot be generated systemically.

1. Obtain this information from Management Action Report (MAR) at site where taxpayer's call is received.

2. Input letter using correct campus code for taxpayer's jurisdiction.

3. Set bypass indicator to "Y" using IDRS CCs LETED/LETUP at both sites to omit two-day recycle for letter review.

4. If ICCE call receipt site finds an error with an input letter, notify letter print site to manually pull letter from mailout. Reinput letter at receiving call site.

(3) If ICCE call receipt site is different from letter generation site, an on-line letter review will not be able to be performed at either location.

(4) Letter generation sites must perform periodic cursory review of letters and check for garbled copy on affected letters.

(1) Daily, associate replies to correspondence and IDRS-generated correspondence with suspense file per procedures in this section.

(2) Associate the entire correspondence with the suspense copy on file. This includes amended or corrected returns and schedules received by the Correspondence function in reply to an inquiry. Attach a Form 5706, Case History Sheet, or leave a CII case note, providing an efficient, uniform means of ready, responsive control to facilitate supervisory review and reporting or transferring of a case to a different employee before completion; an explanation will require less time.

(3) After association, route file:

1. To initiator as shown by Form 3696, Correspondence Action Sheet. This Form 3696 reflects the need to perfect previously numbered document in file.

2. To Receipt and Control function if Form 3696 was prepared by Returns Analysis, Error Correction or Unpostable functions and concerns perfection of an unnumbered document in file.

3. To Returns Analysis function, if file concerns a Non–Automated Data Processing (ADP) return and Form 3696 does not designate another requester.

4. To requesting function in all other cases, unless prescribed otherwise in specific subsections of this IRM.

(4) Process replies to CPs and inquiry letters according to instructions in this section relating to specific CP or inquiry letter involved. Letter replies to an inquiry from another office are routed to the appropriate office.

(5) When the campus receives replies with remittances, prepare Form 3244, Payment Posting Voucher, entering secondary TC 570 if payment is for an amount to be assessed.

(6) Cases held in suspense pending taxpayer response to IRS correspondence are purged 10 days after suspense period ends. Suspense period is the time taxpayer was allowed to answer. The 10-day purge date can vary per IRM 3.13.62, Media Transport and Control.

(1) Loose schedules are those that have inadvertently been detached from, or that cannot be associated with a return. These also include schedules received from taxpayers without sufficient information to show why they have been sent or to allow them to be associated with proper return.

(2) Upon receipt of a loose schedule (except for loose EP Schedules, Employment Schedules, and Form 851, Affiliations Schedule), do one of the following:

1. Research CC ERINV to determine if the return is in Suspense/Rejects (or a history item will appear on TXMOD). If return is in Suspense/Rejects, forward to Error Resolution System (ERS) for association with the open case.

2. If a loose schedule relates to an IMF return that is expected to post within 36 cycles from return due date or to a BMF return expected to post within 50 cycles (75 cycles for Estate and Gift Tax Returns) after end of tax period, input Push Code 930 and send loose schedule to Return Files function to be maintained with TC 930 suspense cases. The initiator of the TC 930 (push code) will take action on the loose schedule (returned) or the loose schedule is attached to the original return (not returned). See IRM 21.5.1.4.4.2, TC 930 Push Codes, for more information.

3. If a loose schedule relates to a return that is NOT expected to post within 36 cycles for IMF, or 50 cycles for BMF, maintain loose schedule in a suspense file until due date of return, then input push code as stated in IRM 21.3.3.5.2(2)(b) above.

4. If the loose schedule relates to a prior year return or for a return that should have already posted, research for DLN. If DLN is found, enter it on the schedule and route it to Returns Files function to associate with return. If DLN is NOT found, return the loose schedule to taxpayer. These procedures are not intended for documents scanned into Correspondence Imaging Inventory (CII). CII serves as the retention area for these documents. If the schedule is scanned on the incorrect tax period/form, correct the CII case before closing the case.

   Exception: Per IRM 21.6.6.2.25, Electronic Filing System (e-file), loose schedules cannot be associated with ELF DLN's.

   Note: Refer to IRM 21.5.1.5.7, CII Push Codes, for information on inputting push codes when using CII. Also, in certain instances, TC 930 push code procedures should not be used. Refer to IRM 21.5.1.4.4.3, Inappropriate Use of TC 930 Push Codes.

(3) For loose EP forms / schedules, refer to IRM 3.10.72, Receiving, Extracting, and Sorting.

(4) For loose Employment forms / schedules, refer to IRM 21.7.2.4.4, Loose Employment Tax Schedules.

(5) For general loose forms/schedules procedures, refer to IRM 21.5.1.4.4, Processing of Loose Forms or Schedules

(6) If a loose Form 851 is received, research for the original return, then follow procedures below: