25.25.7. Automated Questionable Credit Program

AC

Action Code

ACTC

Additional Child Tax Credit

AM

Accounts Management

AMS

Accounts Management Services

AOTC

American Opportunity Tax Credit

AQC

Automated Questionable Credit Program

AQCDB

Automated Questionable Credit Program Database

ASED

Assessment Statute Expiration Date

AUR

Automated Underreporter

BS

Blocking Series

CC

Command Code

CE

Contact Employer

CSR

Customer Service Representative

CTC

Child Tax Credit

DDB

Dependent Database

DLN

Document Locator Number

DUT

Documentation Upload Tool

EFDS

Electronic Fraud Detection System

EITC

Earned Income Tax Credit

FEMA

Federal Emergency Management Agency

FTC

Fuel Tax Credit

GATT

General Agreement on Tariffs and Trade

HC

Hold Code

HSH

Household Help

IA

Installment Agreement

IAT

Integrated Automation Technologies

IDOC

Income Document

IDRS

Integrated Data Retrieval System

IDT

Identity Theft

IMF

Individual Master File

IRC

Internal Revenue Code

IRM

Internal Revenue Manual

IRS

Internal Revenue Service

ITIN

Individual Taxpayer Identification Number

MeF

Modernized e-file

OAR

Operations Assistance Request

PTC

Premium Tax Credit

PUB

Publication

RC

Reason Code

RICS

Return Integrity & Compliance Services

RIVO

Return Integrity Verification Operations

RIVPM

Return Integrity Verification Program Management

RRC

Recovery Rebate Credit

SERP

Servicewide Electronic Research Project

SNOD

Statutory Notice of Deficiency

SSA_OARS

Social Security Administration Online Reporting System

SSN

Social Security Number

STARS

Scheme Tracking and Referral System

TAS

Taxpayer Advocate Service

TC

Transaction Code

TE

Tax Examiner

TIN

Taxpayer Identification Number

TS

Taxpayer Services

USPS

United States Postal Service

WOW

Withholding Only Work

XSF

Excess Collection File

AQC16
AQC17
AQC25
AQC26
AQC6X
AQC02
OCSE18
AQC55

The following documents can substantiate wages and withholding claimed:

• Copies of periodic pay statements or check stubs that clearly identify the dates of employment, the gross income received and the withholding.

• A letter from the employer, on company letterhead or stationery, showing the dates of employment, the gross amount of wages paid and the withholding.

The following documents can only substantiate wages claimed:

• Bank statements showing payroll deposits that include the taxpayer’s name, bank’s name and phone number, and a contact person or address of the bank.

• Copies of check images from the bank or deposit slips showing payroll deposits that include the taxpayer’s name and the bank’s name.

GATT11

• Letter from the Prison, parole officer or other government entity showing dates of incarceration. See IRM 25.25.2-6, IDRS COMMAND CODE FTBOL SCREEN, for more information on Prisoner incarceration and release dates.

AOTC26
AOTC27
AOTC28
AOTC29
AOTC25

• Copy of Form 1098-T, Tuition Statement, if institution completed Box 1.

• Proof of payment to the higher education institution, school transcript, etc. See IRM 4.19.15.3.1.1, Education Tax Credits - Evaluating Taxpayer Responses.

AQC7F

• Copy of documentation showing the children claimed for the ACTC meet the tests outlined in Pub 501, Dependents, Standard Deduction, and Filing Information, to be a qualifying child or qualifying relative. See IRM 4.19.14.6.5, EITC - Personal Exemptions and Dependents, for examples of possible documentation that can be submitted to substantiate the claim.

7G1

• Full year tuition statement, and

• A copy of an official school transcript (full calendar year), showing the dates and semester/quarter hours of enrollment.

7G2

• Letter from the Prison or government entity showing dates of incarceration were less than 6 months.

7H1

• Mortgage or rent documents, tax returns filed with your country of residence, utility bills, a letter from a health care provider, social service agency, placement agency official, landlord or property manager.

7H2

• Travel documents or a list of travel dates, mortgage or rent documents, utility bills, school records, and a letter on official letterhead from a health care provider, a social service agency, placement agency official, landlord or property manager.

7H3

• Travel documents or a list of travel dates, mortgage or rent documents, utility bills, school records, and a letter on official letterhead from a health care provider, a social service agency, placement agency official, landlord or property manager.

7N1

• Mortgage or rent documents, tax returns filed with your country of residence, utility bills, a letter from a health care provider, social service agency, placement agency official, landlord or property manager.

7N2

• Copies of periodic pay statements or check stubs that clearly identify the dates of employment, the gross income received and the withholding.

• A letter from the employer, on company letterhead or stationery, showing the dates of employment, the gross amount of wages paid and the withholding.

• Bank statements showing payroll deposits that include the taxpayer’s name, bank’s name and phone number, and a contact person or address of the bank.

• Copies of check images from the bank or deposit slips showing payroll deposits that include the taxpayer’s name and the bank’s name.

7Q

• Copies of periodic pay statements or check stubs that clearly identify the dates of employment, the gross income received and the withholding.

• A letter from the employer, on company letterhead or stationery, showing the dates of employment, the gross amount of wages paid and the withholding.

7R1

• Copy of an unexpired U.S. Driver’s License with the taxpayer’s name and U.S. address dated on or before 12/31/2020.

• Copy of medical records showing the taxpayer's name, U.S. address and dated after 12/31/2019 and before 01/01/2021.

• Copy of U.S. Voters Registration Card showing the taxpayer’s name, U.S. address and issued after 12/31/2019 and before 01/01/2021.

• For U.S. residents members of the U.S. Armed Forces stationed in Puerto Rico only - Documentation showing record of military service or military orders during the year in question.

7R2

• Copy of an unexpired U.S. Driver’s License with the taxpayer’s name and U.S. address dated on or before 12/31/2020.

• Copy of medical records showing the taxpayer’s name, U.S. address and dated after 12/31/2019 and before 01/01/2021.

• Copy of U.S. Voters Registration Card showing the taxpayer’s name, U.S. address and issued after 12/31/2019 and before 01/01/2021.

7R4

• A copy of the Social Security cards for the primary and secondary taxpayers, as well as Qualifying Children that does not contain a legend “Not Valid for Employment”, or evidence that the card holder became a citizen or permanent resident by the due date of the return, including extensions. See Exhibit 4.19.14-1, Examples of Acceptable Documentation for EITC Claims (not all-inclusive), for acceptable citizenship documents. See Pub 519, page 21, U.S. Tax Guide for Aliens, for other requirements or IRM 4.19.14.16, Recovery Rebate Credit (RRC).

7T1

7T2

7T3

• A copy of the Social Security card for the primary and secondary, if filing joint, that does not contain the legend “Not Valid for Employment”, or evidence that the card holder became a citizen or permanent resident by the due date of the return, including extensions. See Exhibit 4.19.14-1, Examples of Acceptable Documentation for EITC Claims (not all-inclusive), for acceptable citizenship documents.

7T4

• A copy of the Social Security card for the qualifying children listed on Schedule 8812 that does not contain the legend “Not Valid for Employment”, or evidence that the qualifying child became a citizen or permanent resident by the due date of the return, including extensions. See Exhibit 4.19.14-1, Examples of Acceptable Documentation for EITC Claims (not all-inclusive), for acceptable citizenship documents.

PTC91 (PTC191)

• Form 1095-A, Health Insurance Marketplace Statement, showing the Advanced Premium Tax Credit was received.

• Documentation proving enrollment in the marketplace and premium payments, invoices, or statements from the insurance providers that include the names of those covered by the benefits and dates of coverage, also showing the Advanced Premium Tax Credit was received.

PTC95 (PTC195)

• Form 1095-A, Health Insurance Marketplace Statement

• Documentation proving enrollment in the marketplace and premium payments, invoices, or statements from the insurance providers that include the names of those covered by the benefits and dates of coverage.

AQCHQ

• Various documents, to be specified by RIVPM Headquarters analyst upon assignment.

AQC 6X and the account has not been adjusted to the amended return

or

the amended return contains only Schedule C, HSH or K-1 income

or

there are no RIVO markers present on the account.

• Reject back to the originator by closing the "AQC2" control.

• Open a new control back to the originator using the following format
  "C#,1040XRJCT,A,XRET XXXXXXXXXX,*"
  XXXXXXXXXX= IDRS number of the ACTION-EMP from the "AQC2" control.

• Leave AMS notes explaining the reason for the rejection.

• If the return is in the Scheme Tracking and Referral System (STARS), update to CATG 5 disposition "CL".

• Ensure all RIVO control bases are closed.

• Update the AQC database as required, using "rejected" as the case status. Enter zero as the protected dollar amount.

AQC6X and the account has previous RIVO involvement and the corrected income and withholding claimed on the amended return, verifies within tolerance per IRM 25.25.3.4, Income Verification using Command Code (CC) IRPTR.

• Do not send an initial contact letter.

• Input a TC 290 for .00 with no source document, RC “085” and PC “8” to release the refund. Do not input an AMD-CLMS-DT.

• Leave AMS notes explaining the reason for the rejection.

• If the return is in the Scheme Tracking and Referral System (STARS), update to CATG 5 disposition "DL". Use the appropriate standard note as outlined in Exhibit 25.25.13-1, STARS Delete Reasons.

• Ensure all RIVO control bases are closed.

• Update the AQC database as required, using "surveyed" as the closing disposition. Enter zero as the protected dollar amount.

AQC6X and no previous AQC letters have been issued and the corrected income or withholding claimed on the amended return, does not verify within tolerance per IRM 25.25.3.4, Income Verification using Command Code (CC) IRPTR.

• See IRM 25.25.7.3, Automated Questionable Credit (AQC) Manual Case Processing, to send an initial contact letter.

Response is received via Documentation Upload Tool (DUT)

Once the taxpayer’s response is saved in the received files location, take the following actions:

• Load all digital files to: \Shared\ATL\ATL-AQC SCANNED CORRESPONDENCE INV\AQC Digital Mailroom\Received files.

• Open each digital file and update the AQC spreadsheet.

• Save the spreadsheet and email the file to the SharePoint.

• Once all files are entered into SharePoint, they must be moved into the "Files Sent to SharePoint" folder.

• Open the Downloads file folder and safe all files as a pdf. Using the procedures in IRM 25.25.7.4.1 (4), Saving Taxpayers Responses.

Response is received via eFax

• Faxes are received through the eFax mailbox and saved to the Memphis shared drive: \Shared\MEM\Employees\AQC Efax Correspondence.

• Pull a count of the faxes received for the prior day and notate on the eFax tracker document.

• The eFax mailbox has subfolders for each month. After counting the new faxes, move them to the correct folder (create a new one if needed). Each received date should be worked separately to simplify this process.

• Save new faxes using procedures in IRM 25.25.7.4.1 (4), Saving Taxpayer Responses.

Response is received via Paper Correspondence

• Count and record incoming correspondence receipts.

• Batch and scan incoming correspondence and send them to your IRS email address.

• Once the entire batch is scanned, open each file and review the copy of the AQC letter. If no letter is found, check ENMOD for the letter. If no letter was sent, use the default Letter 4800C.

• Save the scanned images using procedures in IRM 25.25.7.4.1 (4), Saving Taxpayers Responses, to the Atlanta shared drive: \Shared\ATL\ATL- AQC SCANNED CORRESPONDENCE INV\AQC Scanned Correspondence\Scanned Documents.

CorrType

• A = Agreed

• D = Disagreed

• O = Other (including ID Theft and WOW)

LetterType

• 3= Letter 3219C

• 4 = Letter 4800C

• 5 = Letter 105C

• 6 = Letter 106C

ReceivedType

• DC = DUT correspondence

• EC = eFax correspondence

• PC = paper correspondence

1
If TC 922 is present and the last Process Code is 30,34,54,55,57-60,75, 77-79,81,95,96 (with an open control to AUR employee), 97-99.

• Update the return disposition in EFDS or STARS to “CAT 5 CL” and add notes.

• Input/Update AMS notes per IRM 21.2.2.4.5, Account Management Services (AMS), to specify the AQC case has been rejected and referred to AUR.

• Ensure all RIVO control bases are closed.

• Update AQC database case status to “Rejected,” Reject Reason to “TC 922- Referred to AUR” and the Reject Date with the date of rejection. Enter zero as the protected dollar amount.

2
There is a - L freeze condition on the account.

• Review CC AMDISA to determine the status of the Examination (Exam) case. Route the response to Exam, per the AIMS Status Code and the QRP Source and Project Code. See IRM 4.19.14.9.2, QRP Source Code and Project Codes, and My SB/SE Employee Group Code for more guidance and routing information.

• Update the return disposition in EFDS or STARS to “CAT 5 CL” and add notes.

• Input/Update AMS notes per IRM 21.2.2.4.5, Account Management Services (AMS), to specify the AQC case has been rejected and referred to Exam.

• Ensure all RIVO control bases are closed.

• Update AQC database case status to “Rejected,” Reject Reason to “L freeze greater than status 08”, and the Reject Date with the date of rejection. Enter zero as the protected dollar amount.

3
There is an -A freeze, a TC 971 action code (AC) 120 or TC 971 (AC) 010, or a control base with category code XRET, TPRQ, MEFPS, MEFS, MEFA, MEFC, MEFR, MEFI, DUPF, IDT1, IDT3, XRET, MXEN, IDS1, IDT6, IDT8, IDS9, SCRM, and SSNA2 or assigned to another area.

• Research the case. The correspondence may be in response to the AQC letter.

• If the correspondence or amended return is related to the AQC issue; add notes to AMS (e.g., “amended return, ok to adjust”, “PTC amounts differ from reported amounts”, etc.).

• Update the return disposition in EFDS or STARS to “CAT 5 CL” and add notes.

• Ensure all RIVO control bases are closed.

• Update AQC database case status to “Rejected,” Reject Reason to “A- Reject code AFRZ” and the Reject Date with the date of rejection. Enter zero as the protected dollar amount.

4
If a Form 1040-X, Amended U.S. Individual Tax Return, is received; there is NO -A freeze, and the response is requesting a change other than the proposal.

• Verify the income and federal withholding reported on the amended return per IRM 25.25.3.2, Verification of Income.

Reminder: Do not send an unverifiable Form 1040-X, Amended U.S. Individual Tax Return, to SP or ICT. For unverifiable Form 1040-X, Amended U.S. Individual Tax Return, see Taxpayer Disagreed Response Procedures.

• If there is no identity theft marker (TC 971 AC 501 or TC 971 AC 506) for any tax period on CC ENMOD, route the amended return or Form 1040-X, Amended U.S. Individual Tax Return, and envelope to the Submission Processing (SP) Batching Function per Exhibit 3.10.72-11. Edit the RIVO stamp or "RIVO REV" in the upper left margin of the return prior to sending to SP. If there is an identity theft marker (TC 971 AC 501 or TC 971 AC 506) for any tax period, fax the amended return or Form 1040-X, Amended U.S. Individual Tax Return, and envelope to the Image Control Team (ICT) using the RICS IVO AR Adjustment Request Form and include the verified income/withholding information on the routing form. Edit the RIVO stamp or "IVO REV" and "IDT" in the upper left margin of the return prior to sending to ICT.

• Input/Update AMS notes per IRM 21.2.2.4.5, Account Management Services (AMS).

• Update the return disposition in EFDS or STARS to “CAT 5 CL” and add notes.

• Ensure all RIVO control bases are closed.

• Update AQC database case status to “Rejected”, Reject Reason to “Form 1040-X received-forwarded to AM”, and the Reject Date with the date of rejection. Enter zero as the protected dollar amount.

5
If a Form 1040-X, Amended U.S. Individual Tax Return is received; there is no -A freeze and addresses the proposed changes.

• Follow IRM 25.25.7.4.5, Taxpayer Agreed Response Procedures, or IRM 25.25.7.4.6, Taxpayer Disagreed Response Procedures.

6
Response is to Letter 105C, Claim Disallowed or Letter 106C, Claim Partially Disallowed.

• Follow IRM 21.5.3.4.6.2, Appeals and Responses to Letter 105C and Letter 106C

7
If response shows the taxpayer is deceased and a refund needs to be released and the return was filed by someone other than the surviving spouse. Otherwise, process following normal procedures.

• Follow IRM 25.25.13.10, Manual Refund Criteria for Return Integrity Verification Operations.

8
Correspondence received from a taxpayer that cannot be subsequently located by the Tax Examiner assigned to the AQCX control.

• Send Letter 131C, Information Insufficient or Incomplete for Processing Inquiry, to request the correspondence be resent by the taxpayer. Please see the RIVO Portal for Letter 131C information.

• Update the "AQC2" control activity code to the suspense expiration date, "SCMMDDYYYY" (SC = AQC Segment Code, see IRM 25.25.7.2, Automated Questionable Credit (AQC) Inventory Types, and MMDDYYYY = the current date plus 46 calendar days or plus 61 days if outside the U.S.).

• Close the AQCX control.

9 None of the conditions above are met.

Follow procedures in the subsections based on the response or inquiry type:

• IRM 25.25.7.4.3, Taxpayer Inquiries via e-Form 4442 or Operation Assistance Requests (OARS)

• IRM 25.25.7.4.5, Taxpayer Agreed Response Procedures

• IRM 25.25.7.4.6, Taxpayer Disagreed Response Procedures

• IRM 25.25.7.4.7, Taxpayer Claiming Identity Theft Response Procedures

1
AQC open indicators on the account and no initial contact letter has been sent and the request is an OAR and there is no documentation available to substantiate the claim for refund.

• Initiate manual start procedures per IRM 25.25.7.3, Automated Questionable Credit (AQC) Manual Case Processing, and close the OAR.

• Update EFDS notes.

• Input/Update AMS notes per IRM 21.2.2.4.5, Account Management Services (AMS).

2
AQC open indicators on the account and no initial contact letter has been issued AND documentation is not available on CC IRPTR or the “required documentation” per IRM 25.25.7.2.1, Automated Questionable Credit (AQC) Required Documentation, to substantiate the claim for refund is not provided by the taxpayer.

• If no AQC.net Tool rejection criteria are met per Exhibit 25.25.7-1, AQC.net Tool Inventory Reject Criteria, then place the required information (taxpayer identification number (TIN), tax period, name control, work type, etc.) on the "Refer to Tool" spreadsheet for initial case actions.

• If AQC.net Tool rejection criteria are met per Exhibit 25.25.7-1, AQC.net Tool Inventory Reject Criteria, or the account contains an AQC.net tool reject control (XXREJECT), then initiate manual start procedures per IRM 25.25.7.3, Automated Questionable Credit (AQC) Manual Case Processing.

• Update EFDS notes.

• Input/Update AMS notes per IRM 21.2.2.4.5, Account Management Services (AMS), to include the specific documentation received and the reason(s) it did not substantiate the credit or refund claimed (e.g. Received copy of Form W-2, cannot be used per IRM 25.25.7.2.1, Automated Questionable Credit (AQC) Required Documentation.

• Ensure all RIVO control bases are closed, if case is being placed on the "Refer to Tool" spreadsheet.

• Close the e-4442 with note: “Return not substantiated, referred to have letter 4800C issued”, or AQCX correspondence control with "UNSUBDOC".

• Review IRM 21.5.1.4.10 Classified Waste, to determine if the documentation meets classified waste criteria. If the documentation does not meet classified waste criteria and needs to be associated with the return for audit trail purposes, complete Form 9856, Attachment Alert, to send the documentation to Files.

  Exception: For E-fax responses, mark the fax with a red “X”, your Employee Identification Number and move it to your “Classified Waste” folder. Do not complete Form 9856.

• Update the AQC database as required.

3
AQC open indicators on the account and no initial contact letter has been issued AND documentation is available on CC IRPTR and/or the taxpayer has provided the required documentation per IRM 25.25.7.2.1, Automated Questionable Credit (AQC) Required Documentation, to substantiate the claim for refund.

• Input TC 290 for .00 with no source document (NSD) for claims validated only using CC IRPTR or source document (SD) for claims validated using any documentation provided by the taxpayer to release the refund. Use RC "085" and PC "8" to provide the taxpayer with confirmation of the refund release. Do not input an AMD-CLMS-DT.

• If there is an -E freeze on the module due to TC 810 with a Responsibility Code 3, input Transaction Code (TC) 811 for .00 with a Posting Delay Code ‘2’ to release the freeze and issue any remaining refund.

• Refile the return in EFDS for current year returns.

• Update the EFDS or STARS disposition to DL. Use the appropriate standard note as outlined in Exhibit 25.25.13-1, STARS Delete Reasons.

• Input/Update AMS notes per IRM 21.2.2.4.5, Account Management Services (AMS), to include the specific documentation received (e.g., Received copy of paystubs).

• Ensure all RIVO control bases are closed.

• Update the AQC database as required.

Note: Cases that are released before any letter is sent to the taxpayer are closed as "surveyed" in the AQC database.

An agreed response to Letter 4800C is received but the letter was issued with an incorrect proposal for the Inventory Type

• Disregard the agreement to the incorrect proposal.

• In your subsequent letter include an open paragraph stating: “We apologize, our previous proposal to change your tax return included an error. As a result of the error, we have disregarded your response to our previous notice. This notice includes the corrected tax computation and change to your tax.”

• Issue the subsequent letter (105C, 106C, or 3219C), follow IRM 25.25.7.6(3), No Response Received to Letter 4800C, and close the “AQCX” control.

An agreed response to letter 3219C is received but the letter was issued with an incorrect proposal for the Inventory Type

• Disregard the agreement to the incorrect proposal.

• In your subsequent letter include an open paragraph stating: “We apologize, our previous proposal to change your tax return included an error. As a result of the error, we have disregarded your response to our previous notice. This notice includes the corrected tax computation and change to your tax.”

• Reissue the 3219C letter with the correct computations. Update the "AQC2" control activity code to the suspense expiration date, "SCMMDDYYYY" (SC = AQC Segment Code, see IRM 25.25.7.2, Automated Questionable Credit (AQC) Inventory Types, and MMDDYYYY = the current date plus 106 calendar days or plus 151 days if outside the U.S.)

• Close the "AQCX" control.

An agreed response to Letter 4800C or Letter 3219C is received

• Adjust the account to the proposed changes, attaching the signed agreement as Source Document (SD). Use Hold Code “0” and source code “0”. Do not input an AMD-CLMS-DT.

• If there is an -E freeze on the module due to TC 810 with a Responsibility Code 3, input Transaction Code (TC) 811 for zero (.00) with a posting delay code of “2” to release the freeze and issue any remaining refund.

• Update the Electronic Fraud Detection System (EFDS) notes.

• Update the return in the Scheme Tracking and Referral System (STARS) to "QL".

• Input/Update Account Management Services (AMS) notes per IRM 21.2.2.4.5, Account Management Services (AMS).

• Ensure all Return Integrity Verification Operations (RIVO) control bases are closed.

• Update the Automated Questionable Credit (AQC) database as required. Include the dollar amount protected.

A substantiated response is received.

• Input a Transaction Code (TC) 290 for zero (.00) using the documents provided as the Source Document (SD) to release the refund. Use Reason Code (RC) “085” and Priority Code (PC) “8”, to provide the taxpayer with confirmation of the refund release. Do not input an AMD-CLMS-DT.

• If there is an -E freeze on the module due to TC 810 with a Responsibility Code 3, input TC 811 for zero (.00) with a posting delay code of 2 to release the freeze and issue any remaining refund.

Reminder: If there is an I- freeze on the account, attributed to missing documentation, ensure that the correct return processable date is input on the adjustment. If the original figures were correct and no documents were missing use the original received date of the return.

• For current year returns "Refile" the return in EFDS.

• If the return is in the Scheme Tracking and Referral System (STARS), update the disposition to “DL” to have the return deleted from STARS. Update STARS or EFDS notes, when a return is being deleted from STARS, see Exhibit 25.25.13-1, STARS Delete Reasons.

• Input/Update Account Management Services (AMS) notes per IRM 21.2.2.4.5, Account Management Services (AMS), to include the specific documentation received (e.g., Received copy of paystubs).

• Ensure all Return Integrity Verification Operations (RIVO) control bases are closed.

• Update the Automated Questionable Credit (AQC) database as required. Enter zero as the protected dollar amount.

The taxpayer’s response is substantiated for an inventory type with questionable wages and/or withholding, and the taxpayer was a full year prisoner.

The case must be worked as inventory type GATT11.

• Input TC 972 AC 140/122 to reverse the prior inventory type.

• Input a new TC 971 AC 140 MISC "GATT".

• Send a request to your local AQC database Administrator to update the work type to "GATT11", per local procedures.

• Add an AQC database note "Wages and withholding substantiated - TP full-time prisoner - change to GATT".

• If the response is to Letter 4800C, close the “AQCX” control and issue the subsequent letter (105C, 106C or 3219C), follow IRM 25.25.7.6, No Response Received to Letter 4800C.

• If the response is to a Letter 3219C, close the “AQCX” control and follow IRM 25.25.7.7, No Response Received to Letter 3219C (Notice of Deficiency).

Note: A new Letter 3219C is not necessary. Allow the wages and withholding, but remove the refundable credits as outlined in IRM 25.25.9.4, General Agreement on Tariffs and Trade (GATT) Returns.

An unsubstantiated response is received.

• If the response is to Letter 4800C, close the "AQCX" control using activity codes "30UNSUBDOC" and issue the subsequent letter following IRM 25.25.7.6(3), No Response Received to Letter 4800C,

• If the response is to 3219C, close the “AQCX” control using activity code “90UNSUBDOC” and follow IRM 25.25.7.7, No Response Received to Letter 3219C (Notice of Deficiency).

Caution: If the suspense time frame has not expired, monitor the account and take actions once expired.

• Input/Update Account Management Services (AMS) notes per IRM 21.2.2.4.5, Account Management Services (AMS), to include the specific documentation received (e.g., Received unsubstantiated copy of paystubs).

• Determine if the documentation meets classified waste criteria, see IRM 21.5.1.4.10, Classified Waste. If the documentation does not meet classified waste criteria and needs to be associated with the return for audit trail purposes, complete Form 9856, Attachment Alert, to send the documentation to Files.

Exception: For E-fax responses, mark the fax with a red “X”, your Employee Identification Number and move it to your “Classified Waste” folder. Do not complete Form 9856.

ERC 191

Taxpayer’s Household Income (HHI) as a percent of Federal Poverty Level (FPL) is less than 100 percent and all tax family members are U.S. citizens, but taxpayer is claiming PTC (Exchange data shows coverage with no record of Advance Premium Tax Credit (APTC) received)

ERC 195

Taxpayer claims PTC, Form 8962, Premium Tax Credit (PTC), attached but no one claimed as a dependent on the Form 1040, U.S. Individual Income Tax Return, or Form 1040-SR, U.S. Individual Income Tax Return, was enrolled in a Qualified Health Plan (QHP) through the Exchange

ERC 197

When Exchange data is available for all months, the taxpayer’s annual premium amount does not equal the annual premium reported by the Exchange

ERC 198

When Exchange data is available for all months, the taxpayer’s annual premium of Second Lowest Cost Silver Plan (SLCSP) does not equal the annual SLCSP reported by the Exchange

ERC 199

When Exchange data is available for all months, the annual APTC reported by the taxpayer does not equal the annual APTC reported by the Exchange

(PTC12) - Dependent Database (DDB)- PTC-Error-Code (CD) 900

PTC claimed, where the taxpayer is considered a full year prisoner PTC claimed, where the taxpayer is considered a full year prisoner

(PTC13) - DDB-PTC-Error-CD 900

PTC claimed on a joint return, where both taxpayers are considered full year prisoners PTC claimed on a join return, were both taxpayers are considered full year prisoners

(PTC18)- DDB-PTC-Error-CD 901

The taxpayer is under the age of 18 and there is a record of Advance Premium Tax Credit (APTC) paid that was not reported on the tax return. Caution! PTC may not have been claimed on the return.

(PTC20)-DDB-PTC-Error-CD 904

No income was reported on the tax return and there is a record of APTC paid that was not reported on the tax return. Caution! PTC may not have been claimed on the return.

(PTC65)-DDB-PTC-Error-CD-902

The taxpayer is over the age of 65 and there is a record of APTC paid that was not reported on the tax return. Caution! PTC may not have been claimed on the return.

(PTC66)-DDB-PTC-Error-CD 903

A joint return, where both taxpayers are over the age of 65, and there is a record of APTC paid that was not reported on the tax return. Caution! PTC may not have been claimed on the return.