Part 25. Special Topics
Chapter 25. Revenue Protection
Section 5. General Correspondence Procedures
25.25.5 General Correspondence Procedures
Manual Transmittal
October 10, 2024
Purpose
(1) This transmits revised IRM 25.25.5, Revenue Protection, General Correspondence Procedures.
Material Changes
(1) IRM 25.25.5.2, General Correspondence Letters/Notices - Updated documentation required for verification -IPU 24U0854 issued 07-18-2024..
(2) Exhibit 25.25.5-1, Triage Procedures - Updated -E freeze cases process with high withholding- IPU 24U0854 issued 07-18-2024.
(3) Editorial changes made changing W&I to TS.
(4) Editorial changes made throughout the IRM section.
Effect on Other Documents
IRM 25.25.5 dated October 26, 2023 is superseded. This includes IPU’s 24U0854 dated 07-18-2024.
Audience
Campus employees in Return Integrity Verification Operations
Effective Date
(11-07-2024)
Denise D. Davis
Director, Return Integrity Verification Program Management
Taxpayer Services
Program Scope and Objectives
(1) Purpose and Program Goals: This IRM section provides guidance for Return Integrity Verification Operations (RIVO) employees when screening individual master file returns in the Electronic Fraud Detection System (EFDS) for possible identity theft and false income and withholding. Individual master file returns are scored through the Dependent Database (DDb) or through the Return Review Program (RRP) system. These scoring processes identify suspicious returns meeting the scoring criteria for screening by RIVO employees.
(2) Audience; The audience intended in this IRM is RIVO employees.
(3) Policy Owner; The Return Integrity Verification Program Management (RIVPM) is the policy owner of this program.
(4) Program Owner; RIVPM is the program office responsible for oversight over this program.
(5) Primary Stakeholders; The primary stakeholders are RIVO, and organization that collaborate with RIVO.
(6) Program Goals; Program goals for the program are in the Operation Guidelines as well as IRM 1.4.10, Return Integrity & Verification Operation Managers Guide.
(7) This section provides guidelines for the following RIVO processes:
General Correspondence Letters/Notices issued by RIVO
Background
(1) Return Integrity Verification Program Management (RIVPM) strengthens the integrity of the tax system by:
Protecting the public interest by improving IRS’s ability to detect and prevent improper refunds
Serving the public interest by taking actions fairly and appropriately to identify, evaluate and prevent the issuance of improper refunds
Helping taxpayers understand the refundable tax credits for which they are eligible
Program Management and Review
(1) The program has reports to track the inventory, including receipts and closures such as; the Return Integrity Verification Operations (RIVO) Monthly Performance Comparison Report. More report guidance is found in IRM 1.4.10, Return Integrity & Verification Operation Managers Guide.
(2) The Embedded Quality review program is in place to review all processes to ensure accuracy and effectiveness of the program. Goals, measures, and operating guidelines are listed in the yearly Operation Guidelines and in IRM 21.10.1, Embedded Quality (EQ) Program for Accounts Management, Campus Collection, Campus Examination, Field Assistance, Tax Exempt/Government Entities, Return Integrity and Compliance Services (RICS), and Electronic Products and Services Support.
Authority
(1) Refer to the following:
IRM 1.2.2, Servicewide Policies and Authorities.
IRM 1.2.61, Division Delegations of Authority for Taxpayer Services.IRM 1.2.1.5.10, Policy Statement 4-21, Selection of Returns for Examination.
IRM 1.1.13.5, Return Integrity & Compliance Services (RICS).
Various Internal Revenue Codes (IRC) including but not limited to:
IRC 6402(a), Authority to make credits or refunds.
IRC 6401, Amounts treated as overpayments.
IRC 6404, Abatements.
IRC 6213, Restrictions applicable to deficiencies; petition to Tax Court.
Responsibilities
(1) Return Integrity Verification Program Management (RIVPM) has responsibility for information in this IRM. Information is published in the IRM on a yearly basis.
(2) The Director of RIVPM is responsible for the policy related to this IRM.
(3) The Chief of the RIVPM Policy & Analysis is responsible for ensuring this IRM is timely submitted to publishing each year.
(4) More information can be found in IRM 1.1.13.5, Return Integrity and Compliance Services.
Acronyms
(1) For a list of Acronyms used throughout Return Integrity Verification Operations (RIVO) see IRM 25.25.1.1.6, Acronyms.
Related Resources
(1) The related resources listed below may be utilized for account research and issue resolution. These related resources may be accessed through the IRS Intranet-Servicewide Electronic Research Program (SERP) site.
IRM 25.25, Revenue Protection
IRM 25.23, Identity Protection and Victim Assistance
IRM 21, Customer Account Services
IRM 2, Information Technology
IRM 3, Submission Processing
(2) IDRS restricted access accounts are accounts where a user must request special permissions to access the account through IDRS. Follow IRM 21.2.1.3.2, Authorized IDRS Access.
(3) The Internal Revenue Code (IRC) provides taxpayers specific rights. The Taxpayer Bill of Rights groups these rights into ten fundamental rights. See IRC 7803(a)(3). IRS employees are responsible for being familiar with and following these rights. For additional information about your taxpayer rights, please see Publication 1, Your Rights as a Taxpayer or visit irs.gov/taxpayer-bill-of-rights. For more information about the TBOR, see Taxpayer Bill of Rights.
General Correspondence Letters/Notices
(1) Responses to Return Integrity Verification Operations (RIVO) letters will be received from the taxpayer or their representative via mail, fax, Documentation Upload Tool (DUT), Form 4442, Inquiry Referral, or Operation Assistance Request (OAR). RIVO letter responses will include responses to any of the following letters or notices:
Letter 18C, Decedent Refund (Form 1310 Requested)
Letter 105C, Claim Disallowed
Letter 106C, Claim Partially Disallowed
Letter 239C, TIN-Related Problem Resolution
Letter 2644C, Second Interim Response
Letter 2645C, Interim Letter
Letter 3219C, Statutory Notice of Deficiency
Letter 4310C, IRS Identified ID Theft Post-Adjustment Letter
Letter 4464C, Questionable Refund Hold
Letter 4674C,Identity Theft Post-Adjustment Victim Notification Letter
Letter 4800C, Questionable Credit 30 Day Contact Letter
Letter 4883C, Potential Identity Theft during Original Processing
Letter 5071C, Potential Identity Theft during Original Processing with Online Option
Letter 5447C, Potential Identity Theft during Original Processing; Foreign Address
Letter 5747C, Potential Identity Theft during Original Processing - TAC AUTH ONLY
Letter 6167C, Identity Authentication Incomplete (IMF)
Notice CP 05, Information Regarding Your Refund
Notice CP 05A, Information Regarding Your Refund
Notice CP 53A, We are researching your request for direct deposit
Notice CP 53B, Refund Direct Deposit Rejected by Financial Institution
Notice CP 53C, Refund Direct Deposit rejected by Financial Institution
Notice CP 53D, We can’t direct deposit as too many requests to the same account
(2) If a third-party, such as the taxpayer’s employer, who is not the taxpayer’s authorized representative, contacts the IRS and requests wage substantiation information or other information about the taxpayer’s return or account, the IRS cannot provide that information or any other specific information about the taxpayer or their tax return. The IRS can advise the third party that, in general, the IRS needs the following documentation to substantiate a taxpayer’s reported wages and withholding:
copies of at least 3 pay statements or check stubs, including the end of the year statement/check stub. (Don't send a copy of Form W-2, Wage and Tax Statement.)
A letter from the employer on the company letter head. Letters must include your employer’s name, address, telephone and fax number, income and withholding amounts.
Similar statements such as pay stubs must show employer information including Employer Identification Number (EIN) and a contact name and telephone number. Pay stubs also must show the taxpayer information, including taxpayer identification number (TIN). Bank statements may be submitted to substantiate the pay check deposits. A statement of benefits on retirement income.
(3) If correspondence or a referral is received stating the return filed by the taxpayer was backed out in error under the Identity Theft Procedures, follow the procedures in IRM 25.25.13.3.1, Previously Identified as Identity Theft, to verify and reinstate the return with the IAT x-Mend tool.
Note: x-Mend tool replaced the x-Claim tool. Per IRM 21.2.2-2, Accounts Management Mandated IAT Tools, As of July 5, 2022, x-Mend tool is adjusting tax year 2021 tax returns.
(4) Beginning in July 2011, the "2 - D Bar Code" program was implemented. Some of the notices will still display the entire TIN while others will have the TIN redacted/masked (e.g.XXX-XX-1234). In order to identify the account, a "hand held" bar code scanner must be used to read the taxpayer account information. If the scanner cannot read the bar code, Command Code (CC) TPIIP must be used. For more information on the CC, refer to IDRS Command Code Job Aid located on SERP under IRM Supplements. Additional CP notices utilizing this configuration requiring the bar code scanner will be rolled out periodically in the future. Notices CP 05/CP 05A rolled out in early 2012.
General Replies to Letters/Notices and Undeliverable Mail
(1) All Return Integrity Verification Operations (RIVO) incoming correspondence and referrals will be sorted or resolved per the charts below:
Note: If the taxpayer has only provided a telephone number, document it in EFDS notes and/or Account Management Services (AMS.) Destroy the notice or letter as classified waste, see IRM 21.5.1.4.10, Classified Waste.
Note: Form 12305, Routing Code Slip must be used when sending back misroutes or forwarding correspondence.
IF | THEN |
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1 | Destroy the notice or letter as classified waste, see IRM 21.5.1.4.10, Classified Waste. Exception: Letter 105C, Claim Disallowed and Letter 106C, Claim Partially Disallowed, are certified letters and are NOT to be destroyed as classified waste. Complete Form 9856, Attachment Alert, to send the correspondence to Files and use the DLN of the TC 29X adjustment. |
2 | Research the account for a better address and reissue the letter, see IRM 25.25.5.2.1.1, Undeliverable Correspondence Research. |
3 | Return the mail to the Image Control Team (ICT). See your local document routing guide (DRG) for other forwarding information. |
4 | Return the mail to the Image Control Team (ICT). See your local document routing guide (DRG) for other forwarding information. (Do not return mail directed to an RIVO stop number to Submission Processing (SP) Mail Class.) |
5 Exception: TC 971 AC 122 with Rule 7W is not an AQC specific indicators. If posted and refund is held by a RIVO hold, follow IRM 25.25.2.2, Data Mining Screening Tree to screen and disposition the return. | Upload Letter 4800C, Letter 3219C, or AQC correspondence to the RIVO AQC Share Point Site. Exception: Destroy as classified waste any undeliverable Letter 4800C, see IRM 21.5.1.4.10, Classified Waste. |
6 | Forward the correspondence orNotice CP 05A to Stop M1004 FSC. |
7 |
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8 |
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9 | Forward request to RAVIS. See IRM 21.3.6.4.3.1, Return Copy Procedures. |
10 | See IRM 25.23.3.2.7.1, Intake - Accepting Form 4506-F or Written Requests for copies of Fraudulent Return(s), for more guidance and procedures. |
(2) If the response requests information under the Freedom of Information Act (FOIA), immediately refer the case to the RIVO Disclosure Coordinator for your site. Attach a CC SUMRY print prior to forwarding. For more information regarding FOIA request, see IRM 21.1.3.17.1, Freedom of Information Act (FOIA).
(3) All remaining correspondence to be resolved by RIVO will be controlled per IRM 21.5.1.4.2.2, Integrated Data Retrieval System (IDRS) - Control Procedures.
Note: All correspondence that is not classified needs to be stamped with RIVO received date. This also include Return Charge Outs (RCO), received from files.
(4) If an open IDRS control base is present on the module to a specific employee, contact the controlling employee prior to resolution to coordinate efforts in order to prevent erroneous or duplicate adjustments or actions. Refer to IDRS - Unit and USR Database, to locate the employee. A link is located on the SERP Home Page under the Who/Where tab.
(5) Review the correspondence reply using the chart below:
IF | THEN |
---|---|
1 | IRM 25.25.5.2.1.2, General Correspondence Identity Theft Response. |
2 | IRM 25.25.5.2.1.3, General Correspondence Non-Identity Theft Response. |
Undeliverable Correspondence Research
(1) More research may be needed to correct incomplete or incorrect addresses on undelivered letters.
(2) If the undelivered mail has a yellow address sticker provided by the U.S. Postal Service (USPS) on the original envelope, compare the yellow label entity to the name and address using the following Command Codes (CC) ENMOD, BMFOLE, or IMFOLE, to verify it is the same taxpayer.
(3) Research Accounts Management Services (AMS) history and images, Remittance Tracking Register (RTR), and IDRS CC’s ENMOD, IMFOLE, INOLE, NAMES/E, RTVUE, TRDBV, and IRPTRL (most current tax period data). Research open IDRS modules for any pending (PN TC 150/TC 976) returns. If found, research for updated address/entity information.
(4) Compare the cycle of the current Masterfile address to see which address is the most current. For example, if the yellow label shows James Q. Pelican, review of CC ENMOD/IMFOLE shows James Pelican and the address cycle is prior to the address on the yellow label, this indicates this is the same taxpayer with a more current address.
(5) If a more current filed tax return is present on the account, check it for more complete or correct information. (Do not order the return just to check the address).
(6) If you find more complete or correct information, or if you find a more current address, reissue or re-mail the correspondence.
Note: If the letter indicates it was issued to a third party, then you can reissue the letter to a third party only if that party is identified in the Centralized Authorization File (CAF), which maintains data for Authorized Representatives (e.g., Form 2848, Power of Attorney and Declaration of Representative, and Letter 8821, Tax Information Authorization.
(7) Update the address of record if the address on Masterfile was in error due to IRS procedures.
(8) Do not update the address on Masterfile based on a yellow sticker address provided by the Post Office. Use the address on the yellow label to only reissue the letter after research is conducted and it is determined that the address label is the most current. Include a Form 8822, Change of Address, for the taxpayer when reissuing the correspondence.
(9) If a better address cannot be found or confirmed, destroy the correspondence as classified waste, see IRM 21.5.1.4.10, Classified Waste.
General Correspondence Identity Theft Response
(1) The reply indicates the taxpayer is a victim of identity theft, has a Form 14039, Identity Theft Affidavit attached, or contains a statement that the recipient does not live at the address on the letter, then follow the chart below:
IF | AND | THEN |
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1 | No return for the taxpayer is attached to the response. |
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2 | An original unprocessed return for the taxpayer is attached to the response. |
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3 |
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General Correspondence Non-Identity Theft Response
(1) The reply indicates the taxpayer filed the return. Follow the chart below for resolving non-identity theft replies:
IF | THEN |
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1 |
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2 |
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3 Reminder: If the taxpayer has only provided a telephone number, document it in EFDS notes and/or Account Management Services (AMS). Destroy the notice or letter as classified waste, see IRM 21.5.1.4.10, Classified Waste. |
Note: See IRM 25.25.3.9, Manual Verification Procedures for more guidance. |
4 |
Note: If a verified bad return is unable to be pushed to STARS, follow Mass Push Instructions. Refer to RIVO portal. If a return is in STARS, and is unable to be referred systemically to STARS, use manual referral process See IRM 25.25.13.5. |
5 |
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Triage Procedures
Scenario | EFDS Disposition | Additional Instructions |
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1 | CAT 5 CL | Screen any additional returns for the same tax year and take the following actions:
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2 Exception: Cases with -E freezes, high withholding, identified as part of the social media scheme, refer to WOW | CAT 5 CL | Screen any additional returns for the same tax year and take the following actions:
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3 | CAT 5 CL | Screen any additional returns for the same tax year and take the following actions:
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4 | CAT 7 ZF for the TC 150 |
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5 | CAT 7 01 |
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6 | CAT 7 SB |
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7 | CAT 7 S1 | If multiple IDT returns are filed for the same tax year, only update the TC 150 to "CAT 7 S1." Update all other IDT returns to "CAT 7 CL" |
8 | CAT 7 S2 |
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9 | CAT 7 MR | If multiple IDT returns are filed for the same tax year, only update the TC 150 to "CAT 7 MR." Update all other IDT returns to "CAT 7 CL". |
10 | CAT 7 BG |
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11 | CAT 7 AF |
Note: If there is a closed control to 148777777 and the account has been resolved, disposition all IDT returns for the same tax year to "CAT 7 CL." |
12 | CAT 7 CL |
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14 | CAT 7 GB |
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Transaction Code (TC) 971 Action Code (AC) 199 Miscellaneous (MISC) Field Literals for RIVO
(1) Transaction code (TC) 971 action code (AC) 199 is used by several organizations within IRS to identify specific activity on an account. RIVO uses the TC 971 AC 199 to place a hard freeze on a module when the return has been deemed questionable or false. The TC 971 AC 199 may have a literal in the Miscellaneous (MISC) field indicating the inventory type for proper case referral and resolution.
MISC field literal | Definition |
---|---|
1 | Return was previously determined to meet OMM criteria. |
2 | Return has been determined to be fraud. |
3 | TP has been identified as a "full year" prisoner and the return is claiming refundable credits that the TP may not be qualified for. |
4 | Return is being reviewed by RIVO and additional time is needed to complete the review. |
5 | Return has been determined to be fraud. |
6 | Return is being reviewed for suspicious IRP and may be claiming false income and/or withholding from a potential fabricated entity or an abused EIN. |