21.5.1. General Adjustments

(1) Employees in the Accounts Management (AM) organization respond to taxpayer inquiries by telephone in our customer service centers in addition to processing 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.

(1) The Taxpayer Services Chief oversees all policy related to this IRM, which is published on an annual basis.

(2) The Accounts Management Director oversees the instructions in this IRM.

(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.

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

(1) Program Reports: The program reports provided in this IRM are for identification purposes for the Accounts Management Contact Representatives (CRs) and Tax Examiners (TEs). For reports concerning quality, inventory and 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, are 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.

(4) Document authorized disposition, management oversight, refer to Document 12990, IRS Records Control Schedules, for retention and disposition requirements to prevent inadvertent/unlawful destruction of records.

(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 Insider - 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) The Mail Sort function must have the basic knowledge of servicing campus operations. They classify and sort adjustment work for Accounts Management and other functions.

(2) The Mail Sort function:

1. Maintains received date integrity.

2. May identify suspicious packages and letters during the mail sort process. (For additional information, see IRM 21.1.3.10.8, Suspicious Packages and Letters).

(1) The Clerical Support function provides non-technical support to the Accounts Management (AM) function. The type of support is determined by local management and includes the following:

1. Control batched cases on the Integrated Data Retrieval System (IDRS).

   Note: Control cases not closed within 14 calendar days counting the IRS received date on IDRS, except amended returns.
   

2. Input a CC STAUP or Transaction Code (TC) 470 with no closing code on balance due cases. If inputting multiple CC STAUPS, input the first TIN on the second line of the Command Code. For additional information on CC STAUP, refer to the IDRS Command Code Job Aid.

   Note: TC 470 is only used when a claim is pending or "STAUP" cannot be input.

3. Strip and dispose of classified waste from closed cases.

4. Update and maintain suspense files. Research each Taxpayer Identification Number (TIN) (e.g., Social Security Number (SSN)/ Individual Taxpayer Identification Number (ITIN), or Employer Identification Number (EIN) for each year referenced and route to the appropriate functions if necessary. See IRM 21.3.5, Taxpayer Inquiry Referrals Form 4442, to determine appropriate referrals.

5. Perform all research using IDRS.

(2) Form 3210, Document Transmittal, is a general-purpose transmittal form used by all IRS functions. When Form 3210 is prepared, monitor the form to ensure an acknowledgement is received. If no reply is received within 20 business days, follow-up with the receiving office and notate or attach the follow-up information to the suspense copy of the Form 3210. The follow-up must occur within 10 business days after the expiration of the initial 20-day suspense period. Document the acknowledgement copy of the Form 3210 with the date received. For information related to preparing the form, refer to IRM 3.13.62.8.1, Form 3210 Document Transmittal.

(1) Reject cases with any of the situations shown below and request the necessary documentation.

1. Missing payment – When the payment is not found and proof of payment is not submitted.

2. Restricted Interest Claims (RINTS) and Tentative Carryback Applications (TENTS) – When information is required by the instructions but is not submitted. See IRM 21.5.9, Carrybacks.

3. Unnumbered, incomplete (unprocessable) IMF claims or amended returns requesting tax decreases - See IRM 21.5.3.4.2, Tax Decrease or Credit Increase Processing.

(1) Whenever a form or schedule without a return is received in Accounts Management and the original return has not posted, refer to the following table:

(2) Whenever a form or schedule without a return is received in Accounts Management and the original return has posted, refer to the following table:

(3) The following forms and schedules have specific procedures:

Caution: Take extreme care when returning taxpayer information to ensure that only the material relative to the taxpayer(s) to whom the correspondence is addressed is enclosed in the envelope. Refer to IRM 21.3.3.4.24, Breaches of Personally Identifiable Information (PII) Caused by Manual Stuffing Errors, for additional information.

(1) Prepare suspense folders for cases that require additional information from the taxpayer or another document from Files. Hold the cases in a centralized suspense file.

1. Work the case when information is received.

2. Allow 21 business days for receipt of tax returns from Files. Allow 30 calendar days for receipt of out of region tax returns from Files.

3. Purge the suspense case if information requested from the taxpayer is not received within 40 days.

   Exception: Overseas taxpayers have a 70-day purge time.

4. If no reply, close the case according to available information and send the appropriate closing letter.

5. Suspended case files must have a history sheet or record attached to reflect all action taken and the date.

   Note: A history sheet is not required when the only action taken prior to closing the case is the initial request for CC IMFOL display information.
   

   
   

6. Include a notation that an apology was issued for service errors and include the date of the apology. See IRM 21.3.3.4.16.1, Preparing Outgoing Manually Generated Correspondence, and IRM 21.3.3.4.22, Review of Outgoing Correspondence.

(1) When a return not belonging to your case file is discovered:

1. Detach the return

2. Research to determine if the return should be processed, re-filed, or worked as a separate case, etc.

(2) To process the return:

1. Prepare Form 1725, Routing Slip

2. Edit the IRS received date in red if IMF or dark green if BMF

3. Send to Numbering or to the appropriate area

(1) Taxpayer Inquiry (TPI) cases referred to your function are controlled using the IRS received date.

(2) Non-TPI cases are controlled reflecting the date the case was received in your function.

(3) The computer automatically opens a control base on IDRS when a case was closed by Unpostables with Unpostable Resolution Code (URC) 2. The IRS received dates for these cases are the correspondence dates, "CORRESP-DT", or the GUF-15 closing run date.

(4) Control on IDRS all cases referred to your function by other areas, including the local campus mail function, by the later of 14 calendar days from the IRS received date or three business days (including the day of receipt) from your function’s received date.

(1) Transaction Code (TC) 971 is an identifier used to cross reference other TINs and tax periods or to identify other information about an account, including the location of a taxpayer’s claim. The Action Code (AC) associated with the TC 971 provides details as to the action on a tax module or a case. Refer to Section 8 under TC 971 Action Codes in the Document 6209, IRS Processing Codes and Information, for a complete listing of the different action codes.

(2) TC 971 AC 698 is required on Form 8938, Statement of Specified Foreign Financial Assets. The form may be received loose, with correspondence or with an amended return.

(3) When inputting a TC 971, different transaction dates are required depending on the action being taken. Common examples are:

1. If a TC 976 or 977 document is being reprocessed to another TIN or tax period (AC 002), the transaction date for the TC 971 is the posted date of the TC 976 or 977.

2. If the TC 150 document is being reprocessed to another TIN or tax period (AC 001), the transaction date for the TC 971 is the date shown in the “RET-RECD-DT” field on CC TXMOD.

3. Action Code 010 indicates an amended return/claim has been forwarded to Accounts Management. The transaction date for the TC 971 is the received date of the TC 977.

   Note: BMF: Refer to IRM 21.7.9.3.1, Amended/Corrected/Adjusted/Original Returns that Bypass Submission Processing.

4. Action codes 012-016 indicate the amended return/claim has been forwarded to another area for processing. The transaction date for the TC 971 is the posted date of the TC 976/977.

5. If the claim is being returned to the taxpayer (AC 270), the transaction date for the TC 971 is the current date.

6. If AC 017 is being used to identify a return being reprocessed from another module, the transaction date is the received date of the return being reprocessed.

(4) Input TC 971 on IDRS using Command Code REQ77. Refer to IRM 2.4.19, Command Codes REQ77, FRM77 and FRM7A, for further information.

(5) TC 971 AC 086 or AC 087 indicate non-assessment of interest and penalty due to a Presidentially Declared Disaster and are input automatically.

(1) Use the following procedures when you determine the return should be recharged to another area. There are three ways to recharge a document.

1. Input Command Code (CC) ESTABD with the definer (T).

   Note: A Form 4251, Return Charge-Out, generates in Files notifying them of the change. If IDRS is unavailable for at least three days, notify Files on Form 4251, if available. Follow (c) below to complete Form 4251.
   

2. Form 2275, Records Request, Charge and Recharge, complete Part A, Boxes 1 - 5, Part C. Check the (Recharge to) box and fill out the charge out information in Box E, and Box 18. Attach the return to the case and route both to the recharge activity and forward the original Form 2275.

   Note: The necessary charge out information is included in (c) below

3. Complete the Form 4251 and specify where the return will be recharged (operation or function). Complete the charge out information, including the address of the area office, etc. Attach the return to the case and route both to the recharge activity and forward the original Form 4251 to Files.

(2) Whenever an original return is requested from Files for an adjustment and it is determined an adjustment is unnecessary, recharge the return back to Files.

(1) Classified waste is documentation containing taxpayer entity or account information not needed for audit trail purposes.

(2) Classified waste does not include:

1. Numbered returns.

2. Unnumbered returns, amended returns, and claims requesting an adjustment to the taxpayer's account.

3. Taxpayer inquiries or background information requesting a tax, penalty, or interest adjustment, regardless if allowed or disallowed, except when the inquiry concerns misapplied payment(s) that when found and applied correctly, eliminates the penalty and interest.

4. Taxpayer inquiries or background information resulting in a hard-core payment tracer.

5. Taxpayer inquiries or background information resulting in a credit transfer between non-related accounts or related accounts and the credit is not available.

6. Any misrouted forms.

7. Documentation required for audit trail purposes that does not require any IDRS input transaction. Attach this documentation to the original return.

(3) Classified waste includes:

1. Copies of research not used for the case, such as MFTRA, TFTRA, MCC transcripts, microfilm, etc.

2. Taxpayer letters and background information when a response has previously been issued and did not result in a change to the taxpayer’s account, such as request for forms and publications.

3. Taxpayer letters not asking for research, abatement, or information, but are general information letters, such as a letter from a taxpayer asking how to file their return.

4. Taxpayer letters accompanying payments, such as "attached is my payment of $$$ for 2023 taxes", etc.

5. Extra or duplicate copies of taxpayer inquiries including copies of returns, schedules, or worksheets, if not needed as background information for adjustments.

6. Taxpayer letters or background information resulting in an entity address change.

7. Taxpayer inquiries requesting a transcript of accounts.

8. Credit transfers within the same TIN and transfers completed between related accounts, where the credit is available.

9. Copy of a notice included with the taxpayer's request.

(4) Marking and disposing of classified waste:

1. Notate any actions taken (unless actions have been previously documented i.e., AMS history)

   Example: Address change per taxpayer correspondence (TPRQ) or Form 8822, Change of Address.

   Example: Taxpayer identified the payment submitted for a tax period or type of tax (i.e., Remittance Advice)

   Example: Previous action - correction already posted

   
   

2. Place a large "X" across front of the document. If documents are stapled together, you need to place the large "X" on the first page only.

3. Enter your Employee Identification Number (e.g., IDRS number, badge number, or other identifying number provided by your operation).

4. Include the document with your closed cases, so the clerks may dispose of it in the "designated classified waste" trash can

(1) Request for adjustments to tax and interest abatements must contain the signature of the taxpayer, other than those allowed with an oral statement or valid representative. Refer to the table in IRM 21.5.3.4.2, Tax Decrease or Credit Increase Processing, for acceptance of faxed signatures. IRM 21.1.3.20, Oral Statement Authority, provides details regarding the type of adjustments that do not require a taxpayer signature.

(2) Receipt of a schedule without a return or other substantiating information may result in an informal claim and require a signature, depending on the situation.

1. Schedules submitted to support an entry on the taxpayer’s original signed return do not require a signature.

2. Schedules submitted to claim a credit or deduction not claimed on the original return must include the signature.

3. Not all address change requests require a signature. Refer to IRM 21.1.3.20.1, IMF and BMF Oral Statement Address Changes, for additional information.

4. Photocopies of facsimile transmitted signatures on Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization, are acceptable.

(1) Changes to prepaid credits:

(2) The applicable Form 94XX is required for tax decreases of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See IRM 21.7.2.4.6(9), Adjusted Employer's Federal Tax Return or Claim for Refund, for the tolerance on the new adjusted employment tax returns. These include Form 941-X, Form 943-X, Form 944-X, Form 945-X, and Form CT-1X. The adjustment cannot be made via oral statement.

(3) Accept the taxpayer’s figures when a discrepancy in the total tax for each tax period, including allowable nonrefundable and refundable employment tax credits (e.g., Employee Retention Credit, Sick and Family Leave Credit) or Earned Income Tax Credit (EITC), is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(4) Line by line verification of IMF Amended or Supplemental "G" coded returns is not required with a tax adjustment ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(5) Math verify EITC and/or the Child and Dependent Care Credit when:

• Math Error is involved

• Amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ for either credit, and

• Math verification was bypassed in original processing.

(6) Correct Item Reference Numbers (IRN) when the tax is reduced to zero, and items are over ≡ ≡ ≡ ≡ dollars.

(7) If the deposit and credit amounts posted to a module differ from the return tax liability by ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, research to resolve any discrepancies.

(8) Allow BMF claims of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, excluding unallowable items or "CAT-A" criteria.

(9) Do not forward a Math Error unsubstantiated protest ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ to Examination (excluding EITC Math Error cases).

(1) CII cases are assigned by site to a generic employee number prior to systemic reassignment and distribution to individual employees for resolution. The following numbers are used for each site:

(2) CII cases can be identified by the activity code present on the CC TXMOD control base. Each CII case has a unique 10-character alpha numeric case identifier that begins with the letters CIS, (e.g., CIS1A2BCD1), and this identifier is displayed in the control base activity field. An alert also appears on the account summary screen on Account Management Services (AMS).

(3) To meet the correspondence 30-day time frame, CII interim letters are generated on the 25th day in accordance with Policy Statement P-21-3. Refer to IRM 21.3.3.4.2, Policy Statement P-21-3 Procedures.

(4) Adjustments based on CII cases can be recognized by the CII indicator. The indicator posts as a part of the TC 29X transaction on CC TXMOD/IMFOL/BMFOL. On the CC ADJ54 screen, an entry of "1" is required in the CIS IND> field to indicate the adjustment is based on a CII digital image. This field is systemically generated on adjustments initiated through CII.

(5) Record the CII Case ID on all CII adjustments or IDRS inputs, such as credit transfers and entity changes unless a tool prohibits the input.

(6) You must enter a unique sequence number in the CC ADJ54 screen for each adjustment input. The sequence numbers used are input in increasing numerical order (e.g., 1, 2, 3 etc.).

(7) When generating a Letter 105C, Claim Disallowed, or Letter 106C, Claim Partially Disallowed, instead of capturing the “request complete” screen, save the IDRS letter preview as a PDF and attach it to the case with the Attach File button. See IRM 21.5.3.4.6.1, Disallowance and Partial Disallowance Procedures.

(8) Use the capture feature in CII to capture the "request completed" screen for:

• Command Code (CC) LETER requests. If including an enclosure/attachment with the letter, or sending manual CAF copies, capture the letter prior to transmitting it.

  Exception: Letters sent automatically through IAT tools (i.e., xMend or batch tools) are not required to be captured, unless the tool's "Write Your Own" option is used (i.e., Letter 4364C, xMend Correspondex Letter - IMF, Letter 672C, Payments Located and/or Applied, or Letter 31C, Duplicate Returns Filed; Explanation Requested).

  Exception: Letters generated by the Reasonable Cause Assistant (RCA) application no longer provide an opportunity to capture the CC LETER request completed screen on CII. For RCA generated letters (e.g., 3502C, 3503C, 852C, and 853C), attach a PDF print of the letter to the CII case. See IRM 20.1.1.3.6.6 , Attaching RCA Determination.

• Credit transfers for non-related accounts.

• Credit transfers for related accounts resulting in a debit balance after the transfer.

• Payment date changes over $100.

  Note: Additional information on credit transfers is in IRM 21.5.8.3.1, Determining Source Document Requirement for Credit Transfers.

• CC PIFTD CC FTDPN print (include additional liability pages/payment designations if applicable) – See IRM 20.1.4.23, Manual Adjustments.

• Other items as identified in subject specific IRMs.

(9) Do not close the IDRS control base of your CII case when you execute an IDRS command. For example, when completing an ADJ54 screen, leave the CASE-STS-CD> field blank. Allow CII to close the IDRS control base when you click the "close" button in CII, after completing all actions.

(10) Do not attempt to take actions on CII cases if IDRS is down. You may access and view cases, but do not attempt actions that interact with IDRS.

(11) The CII case message function can be used to leave detailed history regarding the case. A case message is not a permanent record.

(12) The CII case note function is used when you want the information to become a permanent attachment to the case. The case note feature must be used when printing the image or a portion of the image for routing to another area.

(13) Contact the Taxpayer Advocate Service (TAS) when the case has an open TAS control prior to taking any case actions. See IRM 21.1.3.18, Taxpayer Advocate Service Guidelines.

(14) Operations Assistance Request (OAR) cases routed as CAT-A criteria must have "OARs" as the primary suspense reason on CII. Use the additional suspense reasons for the type of case (e.g., EITC). Remarks can be used for further explanation.

(15) Cases routed as CAT-A are systemically controlled to Examination and placed in suspense until returned by the Examination Classifiers or by the current established expiration period (e.g., 180 days).

(16) Occasionally, two (or more) unrelated cases, or a taxpayer with forms impacting multiple years (such as multiple Forms 1040-X, 8379, or 843) are scanned as one CII image. In these instances, utilize "SPLIT-IMAGE" from the Suspend drop-down list in CII and complete the Split Image Suspense page to indicate where the image should be split and which part of the image should be associated with the existing case. Do not split correspondence cases addressing multiple tax periods (e.g., a letter requesting penalty abatement on three years) to create additional CII cases for each tax period.

(17) The "Close As MISC" button allows a user to close secondary case(s) by not counting them as a closure in CII reporting when there are multiple open CII cases on a TIN. "Close As MISC" button closes the CII case and updates the category code to MISC (in IDRS only), while closing the IDRS control base. "Closed As MISC" cases are counted as a transfer out action instead of a closed case which enables more accurate inventory and closure reporting.

(18) All employees must stop identifying any taxpayer's account as a "Tax Protestor". Do not use the term "Illegal Tax Protestor" or similar designations on IDRS, ACS, AMS, or CII. This includes any comments, narratives, and/or histories. Terms such as "frivolous argument" or "tax avoidance argument" are acceptable terms to use.

(19) Do not create CII cases for the sole purpose of attaching and routing documents.

(20) Do not reopen a case from CII archives unless immediate action can be taken. Reopening cases from CII archives may create an overage case. Instead of reopening an archived case, you may utilize the create case option in CII to create a new case based on the taxpayer's contact and link the newly opened CII case to the related archived case(s).

(1) It is extremely important that Correspondence Imaging Inventory (CII) case controls not be closed on IDRS by anyone other than the employee assigned the case. Follow procedures in IRM 21.5.2.3(5), Adjustments Guidelines - Research, and IRM 21.1.3.20, Oral Statement Authority, when handling taxpayer inquiries.

(2) When working CII cases and the incorrect category codes and/or program codes/CII controls are used, correct them on CII when identified or prior to reassignment. This includes electronically filed amended returns filed through the Modernized e-File Return (MeF) application (MEFA, MEFC, MEFI or MEFR). Some common examples (not all inclusive):

(3) Occasionally, a CII case is scanned to an incorrect TIN or tax period. Update the tax period as necessary.

If the case is scanned to an incorrect TIN and generates an interim letter to the incorrect taxpayer, send a closing (apology) letter to the incorrect taxpayer before updating the case to the correct TIN for resolution. You are not required to capture the “Request Completed” screen of the letter to the incorrect taxpayer.

If the case is controlled to a TIN of all zeroes, an incorrect TIN, and/or tax period and correct information can be located, update the CII case with the correct TIN and/or tax period. Close the IDRS base on the incorrect TIN/tax period and the CII case can be worked on the correct account. If TIN cannot be located and correspondence cannot be issued then leave a CII case note stating insufficient information to issue correspondence and close the case as No Action.

If the case is scanned as an XRET or 94XX, a TC 971 AC 010 is generated, which creates an -A freeze (or an E- freeze if no original TC 150 has posted to the module) on the incorrect account. Follow the procedures below to correct the CII account and IDRS control:

• Input a TC 971 AC 002 on the incorrect account with the cross-reference information of the correct TIN/tax period.

• Input a TC 290 .00 to release the -A freeze on the incorrect account (if applicable).

• Update the CII information with the correct TIN/tax period.

• Process the CII case following normal procedures.

(4) To ensure the accuracy of Accounts Management aged inventory, when working CII Cases, verify that the IRS Received Date (IRS-RCVD-DT) field is correct and update when necessary.  Refer to IRM 21.5.1.4.2.4, Received Date - Determination, for additional information.

(5) Due to the Bipartisan Budget Act (BBA) of 2015, the IRS's BBA unit requires a review of amended returns submitted by partners of a partnership or partnerships under examination before the next step in the partnership audit procedures can proceed. Identify these amended returns by the literal "BBA Partner Modification Amended Return" across the top of page 1. As a result of backlogs of work and time frame constraints, the dedicated BBA units may process an amended return currently assigned to an AM CR on CII. In such cases, a BBA agent notates on CII "Accepted as filed. TC 290 $$$ RC 188 - Ptr Modification, BBA Unit Closed." or something similar to indicate that the BBA unit has worked the return and that no actions are necessary. AM employees can close the case  "no action," as the BBA unit agent prepares the required documentation for their closing team to input any required adjustments. 

(6) A BMF case may occasionally be scanned as an IMF case or vice versa, a case may be assigned to an incorrect work type (domestic amended return vs. international amended return) or the case is a combination BMF/IMF. In these situations, do not reroute the case, but reassign the case using the Update Case Data function on CII to change the information from one case type to another and select the appropriate campus from the reassign drop down listing.

(7) The "Reroute" option in CII prints a hardcopy of the case image and case notes, along with a form that includes the routing information. The routing option in CII also allows the printout to be directed to different CII printers throughout the CII enabled sites. The printout is then forwarded to the area designated on the routing sheet.

If an IDRS control is required by the receiving area, you must manually open a control in IDRS to the appropriate employee number.

Your local printer is also available, if it is necessary to have access to the printed case prior to routing. In these instances, you must retrieve, assemble, and place the documents in the appropriate routing bin.

If you only need to route selected pages, print only those pages from the document viewer and manually prepare and attach a routing slip. Annotate the CII Case ID on the upper left corner of the first printed page. Utilize the "Close As Misc" case option instead of the "Reroute" option in these instances (Power of Attorney (POA) Form 2848 or Form 8821 Tax Information Authorization can now be efaxed).

(8) CII offers multiple printer options when routing cases. Selecting the appropriate printer is vital to ensuring the case document is forwarded to the correct area in a timely manner. Delays can be minimized by selecting the correct printer for any rerouted case, as well as providing clear routing instructions.

(9) In most instances, select your Campus' Central printer. Some campuses have designated printers for certain reroute types, such as Automated Underreporter (AUR) routes. Additionally, special routing procedures are needed for reroutes to Examination as discussed in the following paragraphs.

(10) The "Reroute to Examination" option is utilized for any cases closed to Examination. Examples include the following:

• Audit Reconsideration

  Note: BMF Audit Reconsideration may use the option "2 CAT A"

• Open AIMS

• Unsubstantiated Math Error referrals open on AIMS

• Substantiated Math Error referrals with an open TC 420 or TC 570/573

After entering the necessary comments on the routing form, select the Central printer for the site that input the previous audit assessment or the site with the open AIMS information as determined by the EXAM Employee Group Code (EGC) Contacts located under the "Who/Where" tab on SERP.

(11) The "Reroute to EITC" option is only used if directed by Examination classifiers or if directed by Command Code DDBCK. Refer to IRM 21.5.1.5.8, Examination Selected Inventory and Command Code DDBCK, for additional information.

(12) Some cases are printed locally and forwarded to the correct address or EEFax. Some examples (not all inclusive):

(13) Accounts Management (AM) frequently reassigns cases between different campuses and employees. The case must be active on CII prior to reassignment to prevent the case from remaining in suspense in the gaining employee’s queue. Do not reassign the case directly from the suspense inventory.

Prior to reassigning or routing any CII case:

• Ensure the case is checked for potential statute issues. If no statute issue exists, check the “statute searched” box on the CII case and reassign the case as directed. If the case reflects a tax increase/credit decrease and is within 90 days of the Assessment Statute Expiration Date (ASED), do not reassign the case. Forward the case to your local Statute Team. Refer to IRM 21.5.3.4.1, Tax Increase or Credit Decrease Processing, for additional information.

• Secure Manager/Lead approval. The Manager/Lead must review the reassignment/reroute for accuracy and leave a case note on CII showing the approval.

• Leave a case note explaining the reason for reassignment including the criteria it met for reassignment.

Caution: Do not reassign a case to IDTVA if there is a multiple control with an existing IDT case with category code i.e., IDT1, IDT3, IDT8, assigned to an IDTVA employee or assigned to an Unassigned queue (i.e., 1042000000) or IDTVA Accounts Management Centralized Distribution Site (CDS), Site Specialization Number. Refer to AM Site Specialization Temporary Holding Numbers listing to identify the IDRS numbers. Refer to IRM 21.5.2.3.1, Adjustment Guidelines – Identity Theft Research, for guidance on multiple controls with IDTVA.

(14) See IRM 21.3.3.4.8.2, Campus Collection Function Correspondence/Inquiry/Notice, for an account assigned to the Revenue Officer (RO). When routing a CII case to an RO with a fax number, use the EEfax procedures in the Exception in (7) to route the case. If no EEfax is available, input TORO in the stop number field, include a complete address in the comments field and select your campus’ central printer for reroute.

(15) Carryback cases are assigned a priority code by ICT when scanned into CII. Occasionally, a carryback case is misidentified, and/or a priority code is not included. Prior to reassigning a case as a carryback case, determine the appropriate priority code and update CII using the following table. See IRM 3.13.6-8, APPENDIX H - SCANNING OF CARRYBACK AND CARRYFORWARD APPLICATIONS/CLAIMS - IMF/IMF INTERNATIONAL, and IRM 3.13.6-9, APPENDIX I - SCANNING OF CARRYBACK AND CARRYFORWARD APPLICATIONS/CLAIMS AND FORM 1138 - BMF/BMF INTERNATIONAL AND EO, for additional information.

(1) These are general guidelines related to Correspondence Imaging Inventory (CII) case processing.

(2) Non-Source Document (NSD) adjustments is entered in the remarks section for most CII adjustments (CC REQ54, CC REQ77, CC ADD24, CC ADD34 and CC ADD48) indicating to Files that no document is required. The CII image is the source document and it remains on CII for further recall if needed. Since the image remains available on CII, Alpha File association is also not necessary.

(3) The NSD adjustments carries the appropriate blocking series as indicated in the subject specific IRM. For example (not all inclusive):

(4) Source Document (SD) adjustments are used when a subject specific IRM reference requires a paper print be sent to Files. Certain IDRS screens and letters must be printed and sent to Files in accordance with the retention period. If the case data drops from IDRS, this is the only record of the original information.

(5) CII allows attachment of files to individual cases. This functionality allows documents to be saved to a CII case for future reference, instead of associating the document with a paper case. Certain subject-specific IRMs require attachment of documents to the adjustment. The CII attachment function may be utilized in lieu of a paper attachment.
Some examples of required attachments (not all inclusive):

(1) Any Correspondence Imaging Inventory (CII) user can view any open or closed case in CII regardless of where it was scanned. Account Management Services (AMS) users also have the capability to view and print CII images.

(2) A CII case is identified by the activity code present on the CC TXMOD control base. Account adjustments based on a CII case reflects a CIS indicator >1 displayed on the CC TXMOD or a CIS-1 on the CC IMFOLA screen.

(3) Document requests from CII sites are pulled and scanned in the Files function and the image is associated with the open CII case. This includes requests from CII users of other CII campus Files functions. CR/TE’s with CII input document requests using Command Code ESTAB with document request code "S". This code is only used by those working on CII and notifies Files to scan the requested document instead of sending the paper document.

(4) Non-CII Sites use Command Code ESTAB with document request code "X" to request printed copies of a CII scanned document. When a document request is received in Files for a TC 29X document input through CII, the CII case is printed out and sent to the requestor along with Form 5147, IDRS Transaction Record. Files personnel must pull Form 5147 to identify the CII Case ID. If the adjustment contains a "1", the CII Case ID is printed in the remarks section of Form 5147. Files personnel use this number to access the case through the CII Application and complete the document request for the non-CII user. After locating the case on the CII workstation, Files personnel print out the imaged case and route to the requestor.

(5) Upon receipt of a document pulled on a CII workstation or from AMS, it appears to be a photocopy of a document, as the original documents are preserved as digital images for the required retention period. The printed images may be used just as an original paper document. Annotate returns that are printed from CII images and sent for processing with "CII IMAGE —Do not correspond for signature" below the signature line. Annotate returns printed from the MeF/RRD application and sent for processing with “MeF Return - Do not correspond for signature” below the signature line. If no adjustment or reprocessing action is taken, destroy the photocopy following normal procedures.

(1) Returns sent for initial processing (i.e., return has not posted to another year or TIN), are edited as identified below, and the return forwarded for processing. Submission Processing corresponds for any missing information on these returns.

(2) A return must be complete before it can be sent for reprocessing (i.e., return previously posted to another year or TIN). You are required to correspond for missing signatures, schedules, or forms prior to forwarding to Submission Processing. See IRM 21.5.2.4.23.7, Coding and Editing Procedures, for further information.

(3) To facilitate the processing of CII returns, the correct tax period, taxpayer identification number, IRS received date (if not stamped on the return refer to IRM 21.5.1.4.2.4, Received Date - Determination), name, and address of the taxpayer must all be clearly edited on the return as required in current procedures. See IRM 3.13.2.3.6, Sole Proprietors and Individual Taxpayers-Name Controls, FRCs, and Authorized Representatives.

(4) Corrections may be made to taxpayer entries by placing an "X" to the left of the incorrect entry and entering the correction to the left. Edits may be made on the CII image using the annotation tools provided within the CII Document Viewer. You may also print the document first and make your edits with red ink for IMF and Exempt Organization (EO) returns or dark green ink for other BMF returns.

(5) If the return is signed, use the Stamp or Text tool in the CII Document Viewer, or Adobe Acrobat Pro, to add "CII IMAGE - Do not correspond for signature" to the return below the signature field and the CII Case ID to the upper left corner on the first page of the return. This designation prevents Submission Processing from treating the signature as a copy. Remember to click the Save button.

(6) If the return is not signed by the taxpayer or authorized representative, refer to the following table:

(7) For campuses with Submission Processing (SP) – Print the complete return on your local printer and check the "Include Annotations" checkbox in the Print Document dialog box, which includes any editing on the printed copy. Underline edits with red ink (IMF) or dark green ink (BMF). For IMF reprocessable returns, attach Form 3893, Re-Entry Document Control, or other applicable form, and route the paper return to the appropriate stop. For BMF reprocessable returns, utilize Form 13596, Reprocessing Returns, and forward accordingly. See Exhibit 21.5.2-1, Preparing Form 3893, Re-Entry Document Control, or Exhibit 21.5.2-2, Preparing Form 13596, Reprocessing Returns, for instructions on preparing these forms.

(8) Returns being forwarded for initial processing are routed to SP using a Form 1725, Routing Slip, or similar local routing slip.

(9) For campuses without Submission Processing (SP) – The following procedures are necessary to help ensure the proper reprocessing of returns:

• Complete all necessary edits to the CII image of the return being reprocessed. If the required information is not included on the return to be reprocessed, the case is rejected to the sending Inventory Control Manager (ICM) within seven business days.

  Reminder: If reprocessing a return and moving a previously issued refund, enter Computer Condition Code (CCC) O (use red if an IMF return and use dark green if a BMF return) horizontally in the upper-center portion of the filing status section of the return for (Tax Year 2017 and prior) and to the blank area below “Spouse was born before January 2, 1954” for (Tax Year 2018 and later)to prevent a second refund per IRM 21.5.2.4.23.10, Moving Refunds. Enter this CCC on the return and save on CII before printing.

  Note: Returns printed/saved from the MeF/RRD application should be annotated using the Adobe Acrobat Pro software. If the Adobe Acrobat Pro software is not available to you, print the amended return documentation from the MeF/RRD application and have the document associated to your CII case via a CIS association sheet.

• Use the "Attach" feature in CII to attach a completed copy of the appropriate routing form.

  Note: Form 3893 or Form 13596 is utilized when reprocessing the return. Form 3893 requires a valid DLN that corresponds with the processing site's location code.

• Suspend the case to your work leader/manager for review, including review of any statute issues.

• After review, the work leader/manager adds a case note documenting approval.

  Note: If multiple images are attached to the CII case, clearly identify which image should be forwarded for reprocessing. Only forward images necessary for the processing of the return.

• The work leader/manager notifies the ICM that they have an initial or reprocessable return and provide the case ID.

• The ICM contacts the ICM at the partner campus with the details of the case within seven business days of the notification.

• The partner campus prints the necessary information from the case, forward the return to SP, document the actions as a CII case note, and follow up with the sending ICM within seven business days.

Reminder: Check the "Include Annotations" checkbox prior to printing to include any edits on the return and ensure that any e-file return attached as a PDF to the CII case from the MeF/RRD application contains the necessary annotations before printing and forwarding. It is not necessary to print the documents in color to capture the edits. 

(10) For all returns - Initiate any required actions (such as CC REQ54, CC REQ77, and CC FRM49) and then close the case. This is not a CII Reroute. Leave a brief case note describing the action taken (e.g., TC 150 doc reprocessed to tax period XXXX or TC 976 doc reprocessed to TIN/EIN XX-XXXXXXX).

(11) Additional information about how reprocessed images are handled in Files can be found in IRM 3.5.61.2.5, Voided, Reinput, or Canceled Documents.

(1) With CII, it is not necessary to return the entire amended return to the taxpayer when additional information is needed. For direction relating to carryback claims, refer to IRM 21.5.9.4.3, Rejecting Unprocessable Carryback Application/Claims, for additional information on carrybacks.

(2) If the issue can be resolved by having the taxpayer fax in missing information, attempt to contact the taxpayer/authorized representative by telephone (Refer to IRM 21.1.1.4, Communication Skills) and request the missing information be faxed to you within three (3) business days. This includes requesting original or duplicate returns. The following is required for all outgoing telephone calls:

1. Make two telephone attempts to call taxpayer/authorized representative within your Tour of Duty (TOD).

   Note: Conduct all outbound calls between the hours of 8 a.m. and 9 p.m. (taxpayer's time zone) except if taxpayer or their authorized representative specifically provides callback time frames.

2. When contacting a taxpayer/authorized representative for missing information and you have reached a voice mail box, do not leave confidential tax information on a voice mail message or an answering machine message unless you reasonably believe you have reached the taxpayer’s or representative’s correct answering machine or voicemail. If you reasonably believe you have reached the right number, leave your name, telephone number, any proper reference number for the inquiry, the fact that you work for the IRS (identifying your function is permissible), and the name of the person who should return the call. You may leave more information on the recording if the taxpayer or representative has given prior approval to leave such information.

3. If someone other than the taxpayer/authorized representative answers the telephone and either the taxpayer/authorized representative is unavailable, simply ask for a return call without giving the taxpayer’s name.

4. For procedures regarding outgoing calls on BMF programs, refer to specific guidance detailed throughout IRM 21.7, Business Tax Returns and Non-Master File Accounts, and IRM 21.8.2, BMF International Adjustments.

(3) Leave an AMS/CII note that includes:

• CII case ID number of the case

• Your E-Fax number

• A brief description of what is needed to resolve the case

• Give the taxpayer a reasonable amount of time to respond by fax but do not exceed more than three (3) business days

Note: If taxpayer calls back on the toll-free line, provide the taxpayer/authorized representative the following information located in the AMS/CII notes: CII ID number, E-Fax number of the controlling CR/TE, description of what is needed to resolve the case, business day time frame (not to exceed three (3) business days). Then leave an AMS/CII case note to the CR/TE with the case control so that they are aware of the taxpayer/authorized representative contact.

(4) For the case controlled CR/TE, after completing the actions in (3) above:

• Monitor the case for three (3) business days to verify a taxpayer response/resolution.

• If attempts are unsuccessful and no taxpayer callback was received, send the appropriate letter and document on AMS/CII.

(5) If you reach the taxpayer/authorized representative discuss what is needed and IF the information cannot be taken orally, ask the taxpayer if they can fax the information during the telephone call. If NOT:

• Provide the taxpayer with the E-Fax number.

• Inform the taxpayer to notate the CII case number on the fax reply.

• Allow a reasonable time for the taxpayer to fax the information but do not exceed three (3) business days.

• When fax reply is received, review the fax to ensure all missing information is provided, and adjust the account accordingly.

• Attach missing information and/or information received by the taxpayer to the CII case as an attachment. See IRM 21.5.1.5.3, CII Source Documentation.

(6) If unsuccessful in reaching taxpayer after two attempts within your TOD, see (10), and (11) below for procedures to send a "C" letter or Form 8009-A.

(7) Document all phone attempts made to contact the taxpayer. Notate the time and phone number on AMS. Include the following information:

1. The reason for the contact.

2. Who was reached, any messages left, and any contact information provided by the taxpayer.

3. Results of the call. Document CII with a case note on each outgoing or incoming call/message, as shown below:

(8) If the amended return involves a tax increase and/or decrease in credit, refer to IRM 21.5.3.4.1, Tax Increase or Credit Decrease Processing, for processing information. If the amended return involves a Tax Increase and Credit Increase, refer to IRM 21.5.3.4.1.1, Tax Increase and Credit Increase Processing. See IRM 21.5.3.4.3, Tax Decrease and Statute Consideration, for handling tax decreases/no tax change claims or amended returns received within 180 days of the RSED.

(9) Transaction Code (TC) 971 with Action Code (AC) 270 indicates a copy of an amended return is being sent back to the taxpayer. Refer to the 6209 Code Retriever. If returning a CII print of the amended return to the taxpayer, input the TC 971 AC 270. If closing the case without sending a CII print of the amended return to the taxpayer, do not input the TC 971 AC 270. Details on the different procedures are outlined in the following paragraphs.

(10) If using the "C" letter to request the missing information and not returning a CII print of the amended return and the claim involves a tax decrease or credit increase:

• Capture the LPAGE screen of the "C" letter request for the missing information.

  Reminder: If the tax decrease is comprised of additional income and additional deductions, suspend the claim after requesting the information. Refer to IRM 21.5.3.4.2, Tax Decrease or Credit Increase Processing, for additional information on handling these claims.

• Input a TC 290 .00 to release the -A freeze

Note: Do not input TC 971, AC 270.

Note: See IRM 20.2.4.8.3, 45-Day Rule, for information regarding the Amended Claims Date.

• Close the case.

  Note: Refer to the SERP Correspondex Letters Functional Index to determine the appropriate “C” letter.

(11) If using the Form 8009-A to request the missing information or including a CII print of the amended return as an attachment to a "C" letter and the claim involves a tax decrease or credit increase:

• Print pages one and two of the amended return and any other pages specific to the issue.

  Note: Annotations can be made prior to printing to highlight any needed information.

• Enter the CII ID on the upper left corner of the first page of the claim and save. Return the claim to the taxpayer.

  Reminder: Electronically received amended returns are printed from the MeF/RRD application. Any annotations are made using the Adobe Acrobat Pro software. 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 document associated with your CII case via a CIS association sheet.

  Caution: Take extreme care to ensure that only the material relative to the taxpayer(s) to whom the correspondence is addressed is enclosed in the envelope. Refer to IRM 21.3.3.4.24, Breaches of Personally Identifiable Information (PII) Caused by Manual Stuffing Errors, for additional information.

• Circle out all received date(s) on the claim or amended return.

• Input TC 971, AC 270 using the current date for the transaction date (TRANS-DT).

  Note: It is not necessary to input TC 290 .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.

• Attach a copy of the Form 8009-A to the CII case or provide complete details of the missing information in the case notes (e.g., Missing Schedule EIC, dependent TIN, missing signature, etc.). If using a "C" letter, capture the LPAGE screen.

• Close the case. See IRM 21.5.3.4.2, Tax Decrease or Credit Increase Processing, for exceptions. See IRM 21.5.9.4.3, Rejecting Unprocessable Carryback Application/Claims, for additional information on carrybacks.

(12) If the response makes the previously rejected and closed case complete, make the adjustment and create a link between the active and archived cases.

(1) Initiate the push code without printing anything from CII. Indicate in the remarks of the push code, "NSD Image retained in CII", or something similar. Ensure the CII ID is also in the remarks field of the push code.

(2) When the original return posts, a CP98/198, Push Code Condition, generates. Since the push code was input as a non-source document (NSD), the CP98/198 is scanned without the push code document. The Image Control Team (ICT) scans the CP98/198 to the specific employee number on the CP98/198 to ensure it is controlled to the previous CR. If no specific number is provided, ICT will scan the CP98/198 to the general queue. The CP98/198 case in CII can be linked to the original document and the case worked.

(3) Do not use push code procedures on CII cases if it can be determined that the CII case will not result in an adjustment to the account, such as IRC 83(b) elections. In these instances, add a case note to identify what was received and close the CII case, after addressing any other issues. The CII image remains available for future reference and is not printed for association with the original return.

(4) Additional information about push codes can be found in IRM 21.5.1.4.4.2, TC 930 Push Codes.

(1) The Exam Selected Inventory is designed to route Exam selected cases quickly and directly to Exam personnel. Employees do not select a printer for Command Code (CC) DDBCK selected cases. See IRM 21.6.3.4.2.7.14, EITC and Command Code DDBCK.

(2) CC DDBCK can be initiated through the Correspondence Imaging Inventory (CII) with an IDRS Quick Click button. Unlike other quick clicks, the DDBCK button also gives you the option of capturing the DDBCK response screen to make it a part of your case.

(3) After selecting "Reroute to EITC" on the Active Case page, the "Active Case - Reroute to EITC" page is displayed. The CR selects the appropriate campus for the reroute from a drop down selection list. Once the reroute button is clicked, the case is closed to the CR and appears in the appropriate campus Exam Selected inventory.

(4) CAT-A classifiers may send copies of cases directly to the Exam Selected inventories while returning the original cases to the CR for closure. If a CAT-A classifier selects a case for examination, in the "Response" section of the "Suspense Case – Assistance" page, they choose the "selected" radio button, along with "Correspondence Audit" from the "Audit" drop down selection list. This step activates another drop down selection list, where a campus is selected for the review. After performing these steps, the classifiers choose the "Return to CSR" button. A copy of the case is then automatically entered in the "Exam Selected Inventory" for the selected campus. The original case is returned to the CR for closure with a case note indicating the case was selected. The CR takes appropriate actions to close the case (i.e., input TC 971-013, send Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, if required, and click the Close button). See IRM 21.3.3.4.2.1, Use of 86C letter-Referring Taxpayer Inquiry/Forms to Another Office, for additional information about the Letter 86C.

(1) The Image Control Team (ICT) forwards all incoming Accounts Management (AM) correspondence to the AM screener.

(2) The AM screener sorts the correspondence prior to scanning into CII.

(3) The following subsections and related exhibits provide additional details on this correspondence screening process.

(1) Category A (CAT-A) Form 1040-X, Amended U.S. Individual Income Tax Return, claims are identified by Submission Processing (SP) prior to forwarding to the Image Control Team (ICT).

(2) These CAT-A cases are reviewed by an employee from Accounts Management (AM). The reviewers:

• Ensure the identified claims meet CAT-A criteria as outlined in IRM 21.5.3-2, Examination Criteria (CAT-A) – General, and IRM 21.5.3-3, Examination Criteria (CAT-A) – Credits.

• Verify the CAT-A reason for referral is properly identified on the cover sheet attached to each claim.

• Maintain the necessary reports documenting the accuracy of the CAT-A identification by SP.

• Provide feedback regarding any misidentification of the claims and return to the SP contact if not CAT-A.

(3) After review, the cases are forwarded to ICT for scanning to a designated IDRS number in CII.

(4) Once scanned, a designated employee(s) at each campus is assigned the cases for forwarding to the Examination Classifiers for audit determination.

(5) The designated employee(s) are profiled as a work leader in CII to enable the necessary reassignment of cases once the cases are returned from Exam. This designated employee(s):

• Pull up the CII case image to identify the "reason for referral" to CAT-A as documented on the cover sheet attached to the image.

  Note: Taxpayers have the option to electronically amend the 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) does not contain a digital CII image. Review the amended return documentation via the Modernized e-File Return Request Display (MeF/RRD) application. 

• Forward the case to CAT-A through CII and select the appropriate "reason for referral" from the drop-down listing.

• Reassign cases returned from Examination as directed by the Inventory Control Manager (ICM) to a designated team(s) for completion.

  Note: Cases returned from Examination can be identified and sorted in CII by clicking the appropriate column heading.