21.5.3. General Claims Procedures

(1) Employees in the AM organization respond to phone calls as well as process amended returns, claims, duplicate filed returns, loose forms, correspondence, etc., and address all other internal adjustment requests.

(1) Refer to IRM 1.2.1.13, Policy Statements for Customer Account Services Activities, for information.

(2) 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 https://www.irs.gov/taxpayer-bill-of-rights.

(1) The Chief, Taxpayer Services oversees all policy related to this IRM which is published annually.

(2) The Accounts Management Director oversees the instructions to the employees contained in the IRM content.

(3) Accounts Management Policy and Procedures IMF (PPI) Tax Analyst(s) oversees the content in this IRM and acts as a point of contact for all Accounts Management sites.

(4) Managers and leads ensure compliance with the guidance and procedures in this IRM for general claims procedures.

(5) Employees resolve general claims procedure requests following procedures in this IRM.

(1) Program Reports: The program reports provided in this IRM are for identification purposes for the AM Contact Representatives (CRs) and Tax Examiners (TEs). For reports concerning quality, inventory aged listing, refer to IRM 1.4.16, Accounts Management Guide for Managers. Aged listings can also be viewed by accessing Control Data Analysis, Project PCD, on the Control-D/Web Access server, which has a login program control.

(2) Program Effectiveness: Program Effectiveness is measured and controlled through:

1. Managerial reviews

2. Quality reviews

(3) Program Controls: Goals, measures and operating guidelines are listed in the yearly Program Letter. Quality data and guidelines for measurement are referenced in 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) See the table below for a list of acronyms commonly used in this IRM. For a comprehensive listing of any IRS acronyms, refer to the Acronym Database.

(1) Related resources for this IRM include (list is not all inclusive):

• Taxpayer Services - Accounts Management

• Servicewide Electronic Research Project (SERP)

• IRS.gov

• Publication 17, Your Federal Income Tax

• Applicable sections of IRM 21, Customer Account Services (refer to the table of contents for a list of available sections)

• IRM 20.1, Penalty Handbook

• Internal Revenue Code (IRC)

• Correspondex Letters

(1) Submission Processing (SP) controls amended returns (Form 1040-X, Amended U.S. Individual Income Tax Return) on IDRS. Employees answering questions on the status of the taxpayer's amended return are able to provide receipt confirmation or adjustment status within 5-7 days of receipt of the form. This enables the employee to see the taxpayer’s amended return on IDRS.

(2) SP controls the Form 1040-X to a specific group’s IDRS number until the case is adjusted or routed by the SP Tax Examiner. See IRM 3.11.6.3, Controlling CII Cases on the Correspondence Imaging Inventory (CII) System, for specific group IDRS numbers and non-referral information. SP inputs a Transaction Code (TC) 971 and Action Code (AC) 120 as part of the process.

(3) If the SP Tax Examiner (TE) routes the Form 1040-X to another function, the SP TE enters TC 971 with the appropriate AC (e.g., 971(012) - forwarded to Collections, 971(013) - forwarded to Examination, 971(015) - forwarded to Underreporter/AUR). SP closes the open control using category code MISC.

(4) If the Form 1040-X is missing forms, schedules, signature or other information, the Form 1040-X is returned to the taxpayer with the appropriate "C" letter or Form 8009-A, We Need More Information to Process Your Amended Return. The account reflects a TC 971 and AC 270. The date of the AC 270 is the date the action occurred returning the Form 1040-X. If three weeks have passed from the date of the AC 270 and the taxpayer has not received the rejected form, inform the taxpayer to refile the completed amended return. A completed Form 1040-X must include all schedules, forms and signature. SP does not have access to AMS or the Correspondence Imaging Inventory (CII) and does not have the capability of leaving a case note.

(5) The activity field in the IDRS control base contains pertinent information on the status (e.g., SP batch information).

(6) On cases meeting AM criteria, SP routes the Form 1040-X to the Image Control Team (ICT) for scanning into CII. A TC 971 AC 010 is automatically added by CII when the IDRS control is established.

(7) The "Where's My Amended Return” (WMAR) application provides automated online and toll-free telephone services. Advise the taxpayer that the best way to get the most current information about their amended return for the current tax year and up to three prior tax years is by using the "Where's My Amended Return?" (WMAR) application. Access is available online from the home page on IRS.gov. If the taxpayer does not have access to the internet, WMAR can be accessed by telephone at 866-464-2050 (must use a touch-tone phone). Access is fast, accurate, and available 24 hours a day, 7 days a week from any computer with internet access, and the information provided is specific to each taxpayer who uses the tool. By entering their SSN/ITIN, Date of Birth and Zip Code into the WMAR application, the taxpayer can find out the status of their Form 1040-X Amended Return(s). WMAR is designed to track the status of amended returns as they are processed. This provides the taxpayer with a consistent message and reduces the number of amended return status calls. IDRS transaction codes (TC) (e.g., 971/AC XXX, 29X, 846) are used to update WMAR messages.

(8) WMAR does NOT provide the status of Form 843 Claims, carryback claims (which are filed on a Form 1040-X), an original Form 1040 marked as amended and worked as a CP 36, and amended returns with a foreign address.

(1) If the amended return requests a tax increase or credit decrease and:

1. It is within 90 days (from today) of the Assessment Statute Expiration Date (ASED) or the ASED has expired, forward it to the Statute function. For additional information, see IRM 25.6.1.5, Basic Guide for Processing Cases With Statute of Limitations Issues.

2. It is more than 90 days (from today) remain on the ASED, input tax increases or credit decreases upon receipt of an amended return even without all required elements (forms, schedules, signature, etc.).

   Note: If the amended return reflects a tax increase and a credit increase, refer to IRM 21.5.3.4.1.1, Tax Increase and Credit Increase Processing.

3. It is an IRC 965 case, if the account has more than 90 days (from today) remaining on the ASED, reassign the case to the applicable IRC 965 (IMF or BMF) Centralized Distribution Numbers (CDS), per the SERP - AM Site Specialization Temporary Holding Numbers - Who/Where. If the ASED has expired or is within 90 days (from today), forward the case to the Statute function. For additional information on how to identify cases with IRC 965 involvement, refer to IRM 21.5.13, IRC 965 Transition Tax Procedures – Accounts Management.

4. If the adjustment to the module, other than an employment tax module, is going to result in a deficiency AND there is a posted TC 830 or TC 836 present, AND there is a posted TC 150 on the subsequent year, the starting date for computing interest on the deficiency may need to be altered pursuant to Rev. Rul. 99-40. Refer to IRM 20.2.5.7.2, Revenue Ruling 99-40 and Credit Elects (May/Sequa), and IRM 21.5.3.4.14, May Department Store and Sequa Underpayment Interest Issue, for additional information. To ensure Rev. Rul. 99-40 is considered, contact your site’s interest coordinator, based on the table below, via Enterprise Electronic Facsimile (EEFAX), for a determination PRIOR TO inputting the tax increase and/or credit decrease. Within the EEFAX, complete and attach a Complex Interest Assistance Request Form detailing the adjustment and be sure to include the CII case ID number and the literal “Rev. Rul. 99-40” in the subject line of the EEFAX. Monitor the case, take no further actions until you receive guidance from the Interest Specialist via secured e-mail, and then attach the returned Complex Interest Assistance Request Form to your CII case and proceed with the necessary adjustment.

(2) If more than 90 days (from today) remain on the ASED and the amended return requests a net zero change (TC 290 for .00), input the adjustment even without all required elements. Advise the taxpayer of the action taken.

(3) Call or write the taxpayer requesting any missing information using the appropriate letter, such as the Letter 178C, Amended (Unnumbered) Return Incomplete for Processing, or Letter 324C, Amended (Numbered) Return Incomplete for Processing: Form 1040-X, 1120-X. Close the case after issuing the necessary correspondence.

(4) If/When the taxpayer responds, the response is treated as a new case. Review the response to ensure no further adjustments are necessary. If no additional changes are needed, associate the response with the previous adjustment document. Advise the taxpayer of the action taken.

(1) Reject incomplete claims or amended returns requesting tax decreases or credit increases, except as outlined in (2) below. Refer to IRM 21.5.1.5.6, Incomplete CII Claims, for additional information on processing incomplete CII claims.

(2) If the amended return is reporting a tax decrease or credit increase comprised of additional income and additional deductions, but does not include the necessary schedules/documentation for the deductions, process the claim as a potential tax increase as follows:

1. Correspond with the taxpayer for any missing information.

2. Suspend the case for 40 days (70 days for overseas taxpayers).

3. If no reply, compute the adjustment for the additional income and input any applicable tax increase.

   Note: The tax increase can only be input if math error procedures apply. If math error procedures do not apply, do not input the tax increase without allowing the additional deductions.

4. Do not allow the deductions shown on the amended return. Follow math error procedures as outlined in IRM 21.5.4.5, Math Error Procedures Processing.

5. Correspond with the taxpayer explaining the difference in the adjustment.

(3) Unnumbered claims or amended returns can be returned to the taxpayer with the request for missing information.

Do not return numbered claims or amended returns.

Note: If using a copy of a numbered return to respond to a taxpayer inquiry, or sending a copy back for any reason, make sure the Document Locator Number (DLN) is not visible.

(4) When rejecting a claim or amended return:
If not returning the claim to the taxpayer

• Use the appropriate "C" letter or Form 8009-A, We Need More Information To Process Your Amended Return, to request the missing forms, schedules, signatures, or other information. See the table below for additional information regarding missing signatures.

• Request all information necessary to complete the claim or amended return.

• Input a TC 290 for .00 to release the "-A" freeze, if applicable.

• Use the appropriate "C" letter or Form 8009-A, We Need More Information To Process Your Amended Return, to request the missing forms, schedules, signatures, or other information. See the table below for additional information regarding missing signatures.

• Request all information necessary to complete the claim or amended return.

• Circle out the received date on the claim or amended return, if the claim is being returned to the taxpayer.

• Input a TC 971, AC 270. Input the current date for the transaction date (TRANS-DT). It is not necessary to input TC 290 for .00 on an IMF account. Input of the TC 971, AC 270, releases the -A freeze on an IMF account. BMF accounts still require the input of a TC 290 to release the -A freeze.

  Note: If the original return has not posted, do not return the claim to the taxpayer. Follow the procedures as outlined in IRM 21.6.7.4.2, Amended Return - No Original - CP 29 (Amended Return Posts to an Account With No Original Return Present) and for BMF follow procedures in IRM 21.7.9.4.10, Transcript 190, Amended Return-No Original Posted.

  Note: Taxpayers have the option to electronically amend current tax year and two prior year Form 1040 and Form 1040-SR returns that were originally e-filed through the Modernized e-File Return (MeF) application. CII cases created by Account Management Services (AMS) does not contain a digital CII image. If a copy of the amended return is sent back to the taxpayer, you need to print the amended return documentation from the MeF Return Request Display (MeF/RRD) application. Any annotations need to be made using the Adobe Acrobat Pro software, and the updated document is saved as a PDF and attached to the CII case. If the Adobe Acrobat Pro software is not available to you, print the amended return documentation from the MeF/RRD application and have the annotated document associated with your CII case via a CIS association sheet.

(5) Missing signature information is shown in the table below:

(1) Take care when processing statute year claims to prevent erroneous abatements and to prevent the generation of RSED-STAT transcripts. Details regarding the 2 and 3-year time frames for submitting a claim are referenced in IRM 25.6.1.10.3.3.2, Limitations on the Amount of a Claim.

(2) Refer to IRM 25.6.1.10.3.1, Claims for Credit or Refund - Processing Directions, for claims or amended returns received after the RSED has expired. Special handling is required for any refund claims (tax decreases or credit increases) received for the tax years 2016 and 2017, where the period of limitation to file claims for credit or refunds were extended. 

(3) If additional information is necessary to process a tax decrease/no tax change claim or amended return; and the Refund Statute Expiration Date (RSED) on the account expires within 180 days from today or has expired, but was received prior to the RSED, follow the steps below:

1. Call or correspond with the taxpayer and enclose a blank copy of the missing form or schedule.

2. Advise the taxpayer that a response is needed within 30 days (60 days for overseas taxpayers).

3. Suspend the case for 40 days (70 days for overseas taxpayers).

(4) If the taxpayer submits the information after the RSED but within 45 days (75 days for overseas taxpayers) of the IRS request, then allow the claim as referenced in IRM 25.6.1.10.3.1.2, Submission of Additional Information Necessary to Make a Determination on the Claim After the RSED.

(5) If there is no reply or the request for additional information is not received by the requested response date and the RSED has expired, disallow the claim. See IRM 21.5.3.4.6.1, Disallowance and Partial Disallowance Procedures.

1. Send Letter 105C, include appeal rights and the right to file suit.

2. Input TC 290 for .00, blocking series 98 or 99, as appropriate and the applicable reason code.
   

   Note: Use blocking series 99 with CC TRPRT or CC IMFOLR/BMFOLR print attached if the original return was filed electronically. Do not use blocking series 98.

(6) If there is no reply and the RSED is not expired, follow the "No Consideration" procedures as outlined in IRM 21.5.3.4.6.3, No Consideration Procedures.

(1) The taxpayer must sign the claim or amended return requesting an adjustment; or include a valid Power of Attorney (POA) pursuant to Treas. Reg. 1.6012-1(a)(5) or Treas. Reg. 301.6402-2(e). An electronically signed, printed or stamped signature on a paper-filed individual amended return is not acceptable. A hand-printed (not typed) signature is acceptable. Both spouses must sign if the adjustment relates to a joint return. See IRM 21.5.3.4.4.1, Special Handling of Signature Requests, for exceptions. Refer to the table in IRM 21.5.3.4.2, Tax Decrease or Credit Increase Processing, for acceptance of faxed signatures.

(2) Signature requirements for penalty abatements are referenced in IRM 20.1, Penalty Handbook.

(3) Attempt to obtain the signature when an amended return or inquiry requesting a tax increase or a net zero change is received without one. These are not treated as claims. Refer to IRM 21.5.3.4.1, Tax Increase or Credit Decrease Processing.

(4) Internal Revenue Procedure, Rev. Proc. 2005-39, outlines the use of facsimile signatures by corporate officers or duly authorized agents when filing certain employer information returns. The facsimile signature may be in the form of a rubber stamp, mechanical device, or computer software program. The Revenue Procedure includes the following tax forms:

• Form 94X series, including Form 941X, Form 943X, Form 944X, and Form 945X.

• Form 1042, Annual Withholding Information Return for U.S. Source of Foreign Persons.

• Form 8027, Employer's Annual Information Return of Tip Income Allocated Tips.

• Form CT-1, Employer's Annual Railroad Retirement Tax Return and Form CT-1X.

• Form 941-SS, Employer's QUARTERLY Federal Tax Return.

(1) Master File verification is required on all amended returns prior to:

• Inputting an adjustment

• Initiating correspondence

(2) Master File verification requires, but is not limited to, the comparison of the Adjusted Gross Income (AGI-Line 1), Taxable Income (TXI-Line 5), and Total Tax (TC 150 -Line 11) on Form 1040-X, in Column A with CC IMFOL or CC TXMOD.

1. If Line 1, 5 and 11, Column A or any combination of these lines does not match CC TXMOD and no math error (MTH-ERR) is present, math verification is required.

2. Be sure to consider all adjustments previously made on the account. Work the duplicate or amended return without requesting the original return, if possible.

   Caution: The American Rescue Plan Act of 2021 allows the taxpayer to exclude up to $10,200 (MFJ - $10,200 for each spouse) of Unemployment Compensation from income for the tax year 2020. Taxpayers may file a Form 1040-X with an incomplete Column A or incorrect Column A due to a systemic recovery performed on these accounts. Refer to IRM 21.6.6.2.48, Unemployment Compensation Exclusion (UCE) due to American Rescue Plan Act (ARPA) of 2021, and the 2020 Unemployment Compensation Exclusion FAQs found on IRS.gov for additional information regarding the exclusion.

(3) Refer to IRM 21.5.1.4.12, Tolerances. Math verification is required when:

• The total tax change (positive or negative) is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

• Column A entries do not match CC TXMOD or CC IMFOL/BMFOL (no math error code is present)

(4) Math verification includes doing the following:

1. Verifying the math on the entire Form 1040-X, or other forms used to amend the original figures, including any additional forms, schedules, and worksheets related to the change.

2. Verifying the taxpayer modified entries using the forms, schedules, and worksheets attached to the claim, taxpayer remarks and/or IDRS research.

3. Verifying the corrected tax computation.

4. Verifying any additional taxes (self-employment tax, additional tax on Individual Retirement Account distributions, Schedule H tax etc.,) as reported by the taxpayer are calculated correctly.

(5) If math verification is required and an error is discovered, re-compute the correct amounts using the information supplied and IDRS research. After "perfecting" the total tax and:

1. The difference between the taxpayer's total tax and your recomputed total tax is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, adjust the account using the taxpayer's figures.

2. The difference between the taxpayer’s total tax and your recomputed total tax is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, adjust the account using your recomputed figures. Set a math error on the account if the total tax is greater than the taxpayer reported. Refer to IRM 21.5.4.5.1, Setting the Initial Math Error Action, for additional information.

(6) Verify all income-based items (e.g., earned income tax credit, additional child tax credit, taxable social security benefits, Schedule A deductions, etc.,) on claims involving an income change. Recalculate the items when the income changes, even if the taxpayer does not address them. Advise the taxpayer of any resulting change. This is not a Master File check or math verification. This must be done even if the tax or credit adjustment is less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

(7) Request technical assistance from the Examination Classifiers if a claim cites reliance on a court case, the Internal Revenue Code, Internal Revenue Regulation, Revenue Ruling, Revenue Procedure, or other legal issue, if needed, and written guidance is not already available for the issue. See IRM 21.5.3.4.7, Processing Claims and Amended Returns With Examination Involvement, and IRM 21.5.3-2, Examination Issues, for additional information.

(8) If discrepancies exist between the taxpayer’s reported liabilities on an overpaid/amended Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts, and the related accounts, the case is automatically eligible for Examination. Route your recontrolled case to Examination using local procedures. Close your control base on IDRS.

(1) Review claims and amended returns that are processable to determine if the taxpayer's request is allowable. Unallowable claims and amended returns are disallowed, partially disallowed, or not considered, based upon the facts and circumstances of each case.

(2) When reviewing the claim or amended return:

(3) A request for abatement is a request for reduction of tax, penalty, and interest that has not been paid. This includes penalty adjustment requests. Do not follow no consideration procedures and do not deny requests solely for nonpayment of tax. Process the claims using normal adjustment procedures. If Examination (CAT-A) criteria apply and the request for abatement contains sufficient documentation/explanation to support the adjustment, forward the request to Exam (CAT-A) for consideration.

(1) Review all claims and amended returns for Examination involvement. Exam involvement may include:

• An open Transaction Code (TC) 420 or an open "-L" freeze – see (6) below.

• Category A (CAT-A) criteria as outlined in Exhibit 21.5.3-2, Examination Criteria (CAT-A) – General.

• Both an open TC 420 and CAT-A criteria.

(2) If the claim or amended return contains CAT-A criteria and -L freeze (TC420/424) is not present, refer to CAT-A.

(3) Technical questions or assistance requests may be referred to local Exam Classification when an issue is questionable, but does not meet CAT-A criteria. Refer to Exhibit 21.5.3-2, Examination Criteria (CAT-A) – General, for additional information on requesting technical assistance.

(4) AM retains an open control in background (B) status on all cases referred to Examination. Update the activity code to "CAT-A" to identify the location of the claim and status.

If a non-CII case has been sent and fourteen (14) workdays have passed:

1. Contact the local Examination Classifiers to check the status of the case.

2. Request the case be returned and documented appropriately (allowed or disallowed).

3. If Exam Classification does not return the case, treat it as a selected claim. CII systemically reassigns the case to the co-located Examination Classification IDRS number. Input TC 971, AC 013, using the received date of the amended return for the transaction date.

4. When the case is returned from Examination, follow Examination's instructions and notify the taxpayer accordingly. See IRM 21.5.3.4.7.2, Claims Returned from Exam Classification, for additional information.

(5) If the case is being forwarded to Exam (this includes Form 8862, Information to Claim Certain Credits After Disallowance)

• Input TC 971, AC 013, using the received date of the amended return for the transaction date.

  Exception: On Command Code (CC) DDBCK "selected" cases, if the account does not contain a TC 971 AC 010, CC DDBCK systemically inputs the TC 971 AC 013. If the account contains a TC 971 AC 010, manual input of the TC 971 AC 013 is still required.

• Notify the taxpayer if required as outlined in IRM 21.3.3.4.2.1, Use of 86C Letter - Referring Taxpayer Inquiry/Forms to Another Office.

• Check the appropriate boxes when completing the "Exam Referral Data" section and the "Action" section.

(6) Research IDRS using CCs TXMOD, AMDISA, IMFOLT, and BMFOLT, to determine whether a case is established on AIMS. If the case is under audit, a -L freeze is present. See Exhibit 21.5.3-1, Claims Processing with Examination Involvement, for processing instructions. Follow these procedures even if an open IDRS control base to a CI-FDC campus is present (Do not route to CI).

(7) Refer to IRM 21.7.7, Exempt Organizations and Tax Exempt Bonds, for procedures.

(1) See IRM 21.5.9, Carrybacks, for instructions on processing carryback/carryforward claims and applications. Employees not trained on carryback cases refer to IRM 21.5.9.2.1, Identifying Carryback Applications and Claims, and IRM 21.5.9.2.2, Identifying Carryforward Claims, to determine if the case should be reassigned to Carrybacks. If the case should be reassigned, see SERP - AM Site Specialization Temporary Holding Numbers - Who/Where.

(2) A carryback is a deduction that can be applied or carried to offset tax or taxable income in a preceding taxable year. A taxpayer who has an overpayment of tax as a result of a Net Operating Loss (NOL), Net Capital Loss (NCL), Unused Credits, or a Claim-of-Right adjustment can file an application or claim, also referred to as a TENT or RINT, for adjustment or refund.

(3) Tentative carryback adjustments are filed on Form 1045, Application for Tentative Refund, and Form 1139, Corporation Application for Tentative Refund. They include restricted interest claims that may otherwise be filed on a Form 1040-X, Amended U.S. Individual Income Tax Return, Form 1120-X, Amended U.S. Corporation Income Tax Return, an amended Form 1041, U.S. Income Tax Return for Estates and Trusts, Form 1120-C, U.S. Income Tax Return for Cooperative Associations, and Form 990-T, Exempt Organization Business Income Tax Return (and proxy tax under IRC 6033(e)).

(4) Taxpayers may carry a NOL or excess business credit forward to the current tax year. Taxpayers eligible to carryback a NOL may elect to forgo the carryback period and carry the entire NOL forward. Most Carryforwards do not require special processing guidance. To determine if the Carryforward should be worked by the carryback team, refer to IRM 21.5.9.2.2, Identifying Carryforward Claims. If the case should be reassigned, reassign the case using SERP - AM Site Specialization Temporary Holding Numbers - Who/Where.

(1) Rev. Proc. 2015-40 provides the procedures which allow a U.S. taxpayer to request assistance from the U.S. Competent Authority on issues arising under a tax treaty between the U.S. and a foreign country.

(2) The Deputy Commissioner (International), LB&I acts as the U.S. competent authority charged with administering the provision of tax treaties, interpreting and applying the treaties, and reaching mutual agreements in specific cases. The U.S. competent authority conducts the competent authority process through two offices, the Advance Pricing and Mutual Agreement Program (APMA) and the Treaty Assistance and Interpretation Team (TAIT). APMA has primary responsibility for cases arising under the business profits and associated enterprises articles of U.S. tax treaties. TAIT has primary responsibility for cases arising under all other articles of U.S. tax treaties. TAIT also has primary responsibility for cases arising under U.S. tax treaties with respect to estate and gift taxes. APMA and TAIT each can consider cases arising under the permanent establishment articles of U.S. tax treaties, and both offices coordinate and collaborate on such cases and on any other cases as appropriate.

(3) Send written requests for, or any inquiries regarding, competent authority assistance for APMA or TAIT to:
For request to APMA:
Deputy Commissioner (International)
Large Business and International Division
1111 Constitution Avenue, NW
Washington, DC 20224
SE:LB:IN:ADCI:TPO:APMA:M3-370 (Attention: APMA)

For request to TAIT:
Deputy Commissioner (International)
Large Business and International Division
1111 Constitution Ave., N.W.
Washington, DC 20224
SE:LB:IN:ADCI:TAIT:M4-365 (Attention: TAIT)

(4) Direct any questions regarding Competent Authority requests to the attention of APMA or TAIT, as appropriate, at the above address.

(5) Generally, non-resident aliens or foreign corporations must contact the Competent Authority in their foreign government with their inquiries.

(1) An IRS employee prepares a return under IRC 6020(b) when a taxpayer fails to file. The taxpayer is given the opportunity to file a valid voluntary return to correct the proposed assessment, or to agree to the proposed assessment. Subsequent posting of the taxpayer's original return creates a duplicate filing condition. Route Substitute for Return (SFR) cases prepared under IRC 6020(b) to the Collection Function, unless the account reflects examination involvement.

(2) If the case reflects examination involvement (e.g., -L freeze, regardless of AIMS status), do not route to Examination. Refer to IRM 21.5.3.4.10.1, Non-Filer Returns, for procedures on how to adjust the account.

(3) If the case does not reflect examination involvement, adjust the account to the taxpayer's figures. Do not route to Examination.

(1) Taxpayers file Form 8546, Claim for Reimbursement of Bank Charges, when they have been charged for erroneous levies placed on their accounts or claim reimbursement checks.

(2) If an inquiry is received, send the taxpayer a Form 8546, Claim for Reimbursement of Bank Charges. Use the appropriate "C" letter and close your case unless there are other issues to address.

(3) For further information, refer to IRM 3.17.10.5, Reimbursement of Bank Charges Due to Service Loss or Misplacement of Taxpayer Checks, IRM 5.11.4.9, Reimbursing Bank Charges Because of Erroneous Levies, andIRM 5.19.6.12.7, Erroneous Levy, Reimbursement of Bank Charges.

(1) Category B Criteria applies to claims for the Form 1120 series (except Form 1120-IC DISC), Form 1041, Form 1041-N, and Form 1041-QFT that have a refund of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and do not meet Category A criteria. Input Category B adjustments with:

1. Blocking Series 62 (with original return) or,

2. Blocking Series 63 (without original return).

(2) Exempt Organizations (EO) and Employee Plans Master File (EPMF) claims are not subject to Category B criteria. See IRM 21.7.7.6.16, EO Claim Procedures, for other EO claim procedures. See IRM 21.5.11, Employee Plan Accounts, for Employee Plans (EP) claim procedures. These are all worked in Ogden.

(1) When an unprocessed return is received as a taxpayer inquiry and no return is posted, forward the return to be processed as an original return. If the taxpayer's figures are incorrect, a notice is generated.

(2) When the return is posted and the taxpayer submits a corrected return, input the appropriate adjustment, provided enough information is available.

(1) Give the following information to taxpayers calling or writing about the filing of a claim/request citing the May Department Stores v. U.S. or Sequa Corp. v. U.S. interest cases:

• Rev. Rul. 99-40 provides guidance as to when a credit elect is applied against an estimated tax installment.

• The date the credit elect is applied to satisfy an unpaid estimated tax installment determines when underpayment interest begins on a subsequent underpayment for the overpayment year.

• Taxpayers may file a Form 843, Claim for Refund and Request for Abatement, or submit an informal claim citing the underpayment tax year that Rev. Rul. 99-40 applies to (Rev. Rul. 99-40 supersedes Rev. Rul. 88-98).

• If the taxpayer used the annualized installment method for determining the estimated tax liability for the immediately succeeding tax year (Computer Condition Code “8” for BMF or “P” for IMF), ask the taxpayer to include with their request a copy of the Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts, or Form 2220, Underpayment of Estimated Tax by Corporations, that is applicable to the original return for that tax year.

(2) These claims/requests are processed following the information outlined in IRM 20.2.5.7.2, Rev. Rul. 99-40 and Credit Elects (May/Sequa).

(1) IRC 6621(d) allows for the netting of credit and debit interest during time periods where a taxpayer had overlapping credit and debit interest accruals between two or more tax modules.

(2) If the taxpayer has made a request for the application of the net interest rate of zero for interest accruing before October 1, 1998, then that taxpayer does not have to make a separate request for the portion of the overlapping period identified in that request that impacts interest for periods beginning after July 22, 1998 (e.g., interest accruing on or after October 1, 1998). See Rev. Proc. 2000-26.

(1) Certain items submitted by taxpayers must be referred to other functions for additional review and action.

(2) The remaining subsections provide information on various other inquiries and adjustments.

(1) To assist individuals who have no tax return filing requirement with receiving their Economic Impact Payments (EIP) timely, the "Free File Fillable Form" product was modified to capture minimal individual information designed to determine EIP eligibility and issue payment. Individuals with no tax filing requirement were encouraged to use the Non-Filers: Enter Payment Info Here Tool on IRS.gov to provide their Name, SSN, Address, Dependent and Banking information. The submission of this information through the Non-Filers Tool created a basic 2019 Form 1040 filing for the taxpayer. In some cases, individuals with a TY 2019 tax obligation erroneously used the Non-Filers Tool  to quickly provide banking information for their EIP. Because the submission of information using the Non-Filers Tool was a Form 1040 filing, the erroneous use of the Non-Filers Tool made it impossible for these individuals thereafter to e-file their accurate 2019 tax return. Taxpayers affected by this issue were instructed to file a paper Form 1040, U.S. Individual Income Tax Return, with "Amended EIP Return" noted at the top center of the return. Amended EIP Returns are processed as superseding returns following normal procedures as outlined within IRM 21.6.7.4.10, Superseding Returns, ensuring the following are addressed:

• Update the Return Processable Date (RPD) to April 15, 2020 when the amended EIP return is received in processable form on or before the postponed due date of July 15, 2020 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Otherwise, enter the date the amended EIP return is received in processable form.

  Example: If the return received date on the tax module is April 15, 2020, and the amended EIP return is received fully processable on July 15th, 2020, there is no need to input the RPD within your adjustment. If the return received date on the tax module is June 15, 2020, and the amended EIP return is received fully processable on July 15th, 2020, input 04/15/2020 as the RPD within your adjustment. If the return received date on the tax module is April 15, 2020, and the amended EIP return is received fully processable on July 25th, 2020, input 07/25/2020 as the RPD within your adjustment.

  Reminder: Refer to IRM 21.5.1.4.2.5, Received Date - Grace Periods, when determining the received date.

  Reminder: If the Amended EIP Return is unprocessable, due to a missing form or schedule, refer to IRM 21.5.3.4, General Claims Procedures.

• Input TC 290 to assess any tax.

• Input all appropriate credits.

• Input all appropriate item reference numbers.

• Do not input an "AMD-CLMS-DT" with your adjustment.

• Use a blocking series that indicates the original return is with the adjustment (e.g., 00, 77, or 99). This return is the taxpayer's original filing.

• Update the Assessment Statute Expiration Date (ASED) with TC 560 using command code REQ77, when the Non-Filer Tool return is not valid (i.e., ID Theft). Refer to IRM 25.6.1.6.14, Criteria for Establishing a Statute of Limitations Period, IRM 25.6.1.6.15, When a Document Is Treated As Filed Under the IRC, and IRM 25.6.1.9.5.3, 25% Omission, for information regarding the ASED.

Note: See IRM 21.6.7.4.2.7, Tax Period Changes, for instructions on updating the ASED.

• Use item reference number 871 when necessary, and refer to IRM 20.1.2.2.6.2, Incorrect Tax Shown Recorded, and IRM 20.1.2.2.6.3, Wrong Return Posted First, for additional information. Refer to IRM 20.1.2, Failure to File/Failure to Pay Penalties, and IRM 20.1.3, Estimated Tax Penalties, for additional information on assessing penalties.

• Refer to IRM 21.5.2.4.23.6, Discriminant Index Function (DIF) SCORE or CLASSIFICATION "Send Return(s) to Examination for Review", to determine if a DIF Score referral is needed. No other CAT-A criteria review is required. Do not update CC DDBCK.

  Note: An “Amended EIP Return” can take up to 16 weeks to process, however, timeframes may be temporarily extended. Refer to the IRS Operations: Status of Mission-Critical Functions page on IRS.gov.

  Note: Refer to IRM 21.5.6.4.2, -A Freeze, for additional information. If IDRS shows the characteristics that the original return was filed using the Non-Filer Tool (i.e. AGI of $1.00), there is no need to request the documentation to verify the presence of the literal “Amended EIP Return”.

(1) Taxpayers have the option to electronically amend current tax year and two prior year Form 1040 and Form 1040-SR returns that were originally e-filed through the Modernized e-File Return (MeF) application. The CII cases created by Account Management Services (AMS) are automatically segmented between SP and AM. Review the amended return documentation via the MeF Return Request Display (RRD) application. CR's can identify which return on RRD contains the amended return documentation by locating the document with a literal “A” in the DLN column. Refer to IRM 21.2.1.22, Modernized e-file (MeF/TRDB), and IRM 21.2.2.4.4.9, Modernized e-File Return Request Display (RRD), for additional information.

(2) These cases can be identified on IDRS by control base category codes. The following category codes are assigned to AM:

• MEFA (1040-X MeF)

• MEFC (Carryback 1040-X MeF)

• MEFI (International 1040-X MeF)

• MEFR (International Carryback 1040-X MeF)

• It is unnecessary to correspond for signatures on amended returns that were filed electronically.

• When reprocessing an amended return from the MeF/RRD application, line through "e-file GRAPHIC print - DO NOT PROCESS" prior to forwarding the document for reprocessing. See IRM 21.5.2.4.23.1, Reprocessing Electronic Returns.

• If referring an MeF amended return meeting CAT-A criteria, include in your remarks "MeF Amended 1040-X" to indicate that the amended return documentation can be reviewed via the MeF/RRD application. See Exhibit 21.5.3-2, Examination Criteria (CAT-A) General.

• If a copy of the amended return is sent back to the taxpayer, print the amended return documentation from the MeF/RRD application. Make annotations using the Adobe Acrobat Pro software, save the updated document as a PDF and attach the document to your CII case. If the Adobe Acrobat Pro software is not available to you, print the amended return documentation from the MeF/RRD application and have the annotated document associated with your CII case via a CIS association sheet. See IRM 21.5.1.5.6, Incomplete CII Claims.

(3) The CII cases created for these amended returns do not contain a digital image of the amended return. The entry of "1" is still required in the CIS IND> field on CC ADJ54 for these CII cases. See IRM 21.5.1.5.1, CII General Guidelines.

• Do not use blocking series 18 for e-filed returns. Use the applicable blocking series as indicated in the subject specific IRM. See IRM 21.6.6.2.25, Electronic Filing System (e-file).

• When adjusting an account due to an electronically filed amended return, use "NSD" in the remarks section for most adjustments. See IRM 21.5.1.5.3, CII Source Documentation.

• For information regarding electronically filed amended returns requesting direct deposit see IRM 21.5.3.4.18.1, Direct Deposit for Amended Returns.

• For information regarding electronically filed amended returns with Taxpayer Protection Program (TPP) involvement, see IRM 21.5.3.4.18.2, Electronically Filed Amended Returns with Taxpayer Protection Program (TPP) Involvement.

• When adjusting accounts refer to the specific subject IRM for that topic.