4.63.3. Offshore Voluntary Disclosure Program

(1) The Offshore Voluntary Disclosure Program (OVDP) offers U.S. taxpayers with undisclosed income from offshore assets and undisclosed income from offshore assets a compliance avenue to resolve income tax liabilities, various tax information reporting obligations relating to foreign financial assets, and FBAR reporting requirements. OVDP provides protection from criminal prosecution and a uniform civil penalty structure for taxpayers who come forward voluntarily and report their noncompliance. OVDP is a program approved by the Commissioner which may be changed or terminated at any time.

(2) To date, three separate OVDP programs have been offered and are now closed. The three programs are:

• 2009 Offshore Voluntary Disclosure Program (OVDP)

• 2011 Offshore Voluntary Disclosure Initiative (OVDI)

• 2012 Offshore Voluntary Disclosure Program (OVDP)

(3) The current OVDP is the latest iteration and is generally referred to as the 2014 OVDP although it is technically a continuation of the 2012 OVDP with significant modifications. The 2014 OVDP became effective July 1, 2014 and serves the same policy objectives of earlier OVDPs. Subsequent sections of this IRM discuss key aspects of the 2014 OVDP.

(4) Audience: The primary users of this IRM are IIC examiners.

(5) Policy Owner: Director, Withholding and International Individual Compliance (WIIC)

(6) Program Owner: WIIC is responsible for administering this program.

(7) Stakeholders: The primary stakeholders are OVDP employees.

(1) U.S. citizens, resident aliens and certain nonresident aliens are required to report worldwide income from all sources including foreign accounts and pay taxes on income from those accounts at their individual rates. There are many legitimate reasons for holding offshore accounts, including convenience, investing and to facilitate international transactions.

(2) The OVDP provides a penalty structure that offers clear benefits to encourage taxpayers to disclose previously unreported foreign accounts or assets now rather than risk detection by the IRS and possible criminal prosecution.

(3) Taxpayers with foreign financial accounts with an aggregate value exceeding $10,000 any time during the year must file a Form 114, Report of Foreign Bank and Financial Accounts (FBAR) electronically through FinCEN’s BSA E-Filing System.

(4) The FBAR is not filed with a federal tax return. It must be filed electronically with the United States Treasury.

• FBARs reporting information for calendar years 2015 and earlier were due by June 30 of the year following the year for which information was reported and there were no extensions of time to file.

• Beginning with FBARs reporting information for calendar years 2016 or later are due April 15 of the year following the year for which information is reported. However, FinCEN grants taxpayers an automatic six month extension for filing FBARs. The six month extension requires that FBARs be filed by October 15. If a filer fails to file by October 15, the FBAR violation date is effective as of the April 15 due date of the FBAR.

• Failure to report the existence of offshore accounts or assets or pay taxes on these accounts can lead to civil and criminal penalties.

(1) Depending on the taxpayer’s facts and circumstances, various international information returns may be required. Such international information returns include reporting of foreign financial accounts, foreign corporations, foreign partnerships, transactions with foreign trusts, receipt of gifts or inheritances from foreign persons, and more. The failure to timely file international information returns may result in substantial civil penalties. 2014 OVDP FAQ 5 lists some of the most common international information returns and related civil penalties which may apply to a non-compliant taxpayer.

(1) Taxpayers who decide not to participate in the OVDP may face certain criminal penalties along with the civil penalties as presented in FAQ 5 upon an examination of their returns. FAQ 6 discusses potential criminal penalties a taxpayer may face outside of the OVDP.

(1) Under the terms of the OVDP, taxpayers must fulfill several requirements in order to remain in the program. FAQ 7 for the necessary requirements for taxpayers participating in the OVDP.

(1) Beginning on August 4, 2014, any taxpayer who has an undisclosed foreign financial account will be subject to a 50-percent miscellaneous offshore penalty if, at the time of submitting the preclearance letter to IRS Criminal Investigation an event has already occurred that constitutes a public disclosure that the institution or facilitator is or has been under IRS or Department of Justice investigation. A list of foreign financial institutions or facilitators meeting these criteria is available. See FAQ 7.2 for full details.

(1) The OVDP miscellaneous offshore penalty is imposed on the value of "OVDP assets" as defined in 2014 OVDP FAQ 35. 2014 OVDP FAQ 8 provides a comprehensive example of how the penalty framework works.

(1) The OVDP disclosure period has changed during the different voluntary disclosure programs. The disclosure period for the 2014 OVDP is the most recent eight tax years for which the due date has already passed; it does not include fully compliant years. See 2014 OVDP FAQ 9.

(1) Many OVDP cases involve passive foreign investment companies (PFIC) issues. The most common situation involves foreign mutual funds which must be reported as PFICs. Often individual taxpayers lack historical information on the cost basis and holding period of PFIC investments, making it difficult for taxpayers to prepare statutory PFIC computations and for the Service to verify them. 2014 OVDP FAQ 10 provides an optional, non-statutory method for taxpayers to compute PFIC gain/loss.

(2) There are many tools available on the OVDP SharePoint to assist examiners in certifying cases with PFIC issues.

(1) 2014 OVDP FAQs 12, 13, 14, 15, 20, and 21 discuss various eligibility issues relating to which taxpayers may participate in the OVDP.

(1) 2014 OVDP FAQs 22 through 24 provide instructions to taxpayers and tax practitioners on making offshore voluntary disclosures.

(1) 2014 OVDP FAQ 25 lists documents taxpayers must submit to the OVDP unit in Austin.

(1) The miscellaneous offshore penalty (MOP) is a central provision of the 2014 OVDP. See 2014 OVDP FAQs 31 through 41 for specific guidance, especially 2014 OVDP FAQ 35 which defines what assets are subject to the MOP; this FAQ defines the term "OVDP assets".

(1) Taxpayers must file delinquent or amended FBARs for the disclosure period according to current FinCEN procedures. See 2014 OVDP FAQs 44 through 46.

(1) Taxpayer representatives must complete Form 2848 with specific information for OVDP. The OVDP website on IRS.gov has a pro forma Form 2848 with necessary language for income tax, civil penalties, and FBAR issues.

(1) Taxpayers must accept the terms of the 2014 OVDP to resolve their cases through this program, 2014 OVDP FAQs 49 and 50. FAQ 51 provides specific procedures for taxpayers that wish to opt out of OVDP or that the IRS may remove from OVDP.

(1) The OVDP Hotline phone number is (267) 466-0020. The hotline phone number is included in the 2014 OVDP FAQs on www.irs.gov.

(2) Taxpayers or representatives may call the OVDP Hotline for information on case status and to answer procedural questions. The OVDP Hotline does not provide legal advice or case-specific guidance.

(3) The OVDP Hotline is not manned by live operators. Rather, it is a voice mailbox on which messages may be left. OVDP personnel in Austin have the responsibility of returning messages received on the OVDP Hotline.

(4) Each Hotline call is logged in the OVDP Hotline Call Log. The log includes the time and date of the call, the caller’s name, the caller’s phone number, the subject of the call, the OVDP employee returning the call, the date that the call was returned and the answer given to the caller by the OVDP employee returning the call.

(5) The OVDP Hotline also handles calls related to the Streamlined Filing Compliance Procedures.

(1) OVDP case file development consists of four stages. We address these stages from the IRS’ perspective as relating to case files.

1. Taxpayers submit documents and information to IRS’ Criminal Investigation Global Financial Crimes Unit in Philadelphia. See 2014 OVDP FAQ 24.

2. Once preliminarily accepted by CI to OVDP, CI forwards the taxpayer’s voluntary disclosure to the OVDP Unit in Austin for case establishment.

3. Once the case file has been established, case building begins which consists of associating required documents with the case file. See OVDP FAQ 25.

4. Once the case file is built or substantially built, the case is sent to a field exam group for certification. See IRM 4.63.3.19.8.1, Domestic Cases.

(1) The case building process for taxpayers participating in OVDP continues after the initial set-up by the OVDP team. Once the physical folder is created and initial controls for these cases are finalized through AIMS, these cases are transferred to the case building group. The case building process begins with receipt of documents from the taxpayer as required for participation in the program as discussed in the 2014 OVDP FAQs 7 and 25. The process is divided into the following categories:

1. Mail processing and DHL procedures

2. Identification and IDRS update of statute extensions

3. Identification of domestic vs international cases

4. Controlling multiple years for international cases

5. ASED determination

6. YY memos

7. Statute sweeps/continuous monitoring for quick assessments

8. Case building and correspondence for missing documents

9. Case shipments to the field

(1) A quiet disclosure is made when a taxpayer files a series of amended tax returns to report previously unreported income from previously undisclosed foreign financial assets outside of the formal voluntary disclosure process with the IRS provided for by IRM 9.5.11.9.6. In most quiet disclosure cases, taxpayers also file delinquent FBARs to report previously undisclosed foreign accounts.

(2) IRM 3.11.6.4.5.3, Offshore Voluntary Disclosure Program - Quiet Disclosure Cases, requires the campuses that receive amended tax returns reporting foreign attributes to forward them to the Quiet Disclosure Coordinator in OVDP for review.

(3) See Exhibit 4.63.3-8, Quiet Disclosure Review Process.

(1) 2014 OVDP FAQ 51 provides a procedure for a taxpayer participating in OVDP to opt-out of the program and procedures for the Service to remove a taxpayer from OVDP. Once a taxpayer opts out of OVDP or the Service removes a taxpayer from OVDP, full scope income tax, penalty, and FBAR examinations will commence. See 2014 OVDP FAQ 51 for opt-out and removal criteria.

(1) When an IIC revenue agent needs access to the BSA FinCEN database, the agent makes a request, approved by the agent’s manager, to the FinCEN Coordinator in Philadelphia. The FinCEN Coordinator forwards the request to the FinCEN gatekeeper in OVDP. This procedure was established to limit the number of people in IIC who have access to the FinCEN database because of the sensitive data contained in this database.

(2) The FinCEN research process consists of the following steps:

1. Agents requesting FinCEN data send a Form 10509 or 10509-A (FinCEN Query (FCQ) Request or FinCEN Query SAR Request) to the FinCEN coordinator in Philadelphia. The FinCEN coordinator forwards the Form 10509 or 10509-A request to the FinCEN gatekeeper in OVDP in an encrypted e-mail to the OVDP Team Mailbox in Outlook.

2. When the OVDP gatekeeper receives the Form 10509 or Form 10509-A FinCEN request from the FinCEN coordinator in Philadelphia, certain information from the request is entered into a control log.

3. The gatekeeper researches the FinCEN database and downloads the results of the search. The agent may request FBARs and other information reports on Form 10509 or Form 10509-A, as appropriate. When an agent makes a request using a Form 10509 and the search identifies SARs for the taxpayer, the gatekeeper notes on the copy of the Form 10509 that is returned to the agent that "additional information for the taxpayer is available in FinCEN but a Form 10509-A is required to request the information."

4. If the agent is requesting SAR reports, the request is made on a Form 10905-A and must be approved by the FinCEN coordinator in Philadelphia. In order to receive SARs, the agent and the agent’s manager must have completed the FinCEN SAR training.

5. Once the results of the FinCEN research are obtained, they are sent back to the requesting agent by means of an encrypted e-mail from the OVDP Team Mailbox.

(1) The following table summarizes letters and forms specific to the Offshore Voluntary Disclosure Program and the Streamlined Filing Compliance Procedures.

(1) An earlier version of the Streamlined Filing Compliance Procedures was made available beginning September 2012. However, the IRS significantly expanded the procedures effective July 1, 2014 to accommodate taxpayers that did not need the protection from criminal prosecution offered by the Offshore Voluntary Disclosure Program and that acted non-willfully. The governing documents for the Streamlined Filing Compliance Procedures consist of the websites on IRS.gov outlining the Streamlined Filing Compliance Procedures and interpretative FAQs. The discussion in this IRM section (4.63.3.24 et seq) in no way supersedes, changes, or alters the Streamlined Filing Compliance Procedures published on IRS.gov and related FAQs. Any inconsistency between the IRM and the Streamlined Filing Compliance Procedures published on IRS.gov and related FAQs must be resolved in favor of the Streamlined Filing Compliance Procedures published on IRS.gov and related FAQs.

(2) The Streamlined Filing Compliance Procedures consists of two procedures: Streamlined Foreign Offshore Procedures (SFO) and Streamlined Domestic Offshore Procedures (SDO). See IRS.gov for complete information on SFO and SDO. See IRM 21.8.2.17.1 for basic information summarizing SFO and IRM 21.8.2.17.2 for basic information summarizing SDO.

(1) Transitional treatment under OVDP allows taxpayers participating in OVDP, prior to July 1, 2014, who meet the eligibility requirements for the expanded Streamlined Filing Compliance Procedures, an opportunity to remain in the OVDP while taking advantage of the favorable penalty structure of the expanded Streamlined Filing Compliance Procedures. Transitional treatment is governed by the Transition Rules Frequently Asked Questions (FAQs) found on IRS.gov.

(1) (1) Indexing is the process of building the taxpayer’s OVDP submission in the e-Trak database.

(2) (2) Indexing requires that the following steps be completed:

1. Copying the Submission Folders from CI Foreign Asset Disclosure Initiative (FADI) Date Folder:

   1. Access the CI FADI Date Folder that contains the next set of Submission folders to be indexed. The CI FADI Date Folder is available in the FADI Shared folder. Copy the entire CI FADI Date Folder to the Indexer’s hard drive; never work from or alter the CI FADI Date Folder.

   2. Each FADI Date Folder includes a Submission folder for each taxpayer coming into OVDP. Within each Submission folder there will be several PDF scans of the documents that the taxpayer sent to CI, plus documents and correspondence created by CI related to the submission.

2. Indexing Research:

   1. It is the responsibility of the Indexer to assign each OVDP submission an e-Trak Submission Index number (SI number). The Indexer is also responsible for determining the taxpayer’s correct name, correct TIN, correct filing status - i.e. Single or Married Filing Joint, etc., determining whether the taxpayer is a filer, non-filer, or stop filer, and determining the taxpayer’s most current address. It is critical that the data entered into the e-Trak database be current and correct.

   2. No TIN: When a submission is received but the taxpayer’s application does not include a TIN, the Indexer will first determine whether the taxpayer has an SSN. If the taxpayer has an SSN but has not filed a tax return under the SSN and, therefore, there is no record of the taxpayer in the IMF database, the taxpayer’s case file will be established as a non-filer. If the taxpayer has an SSN and there is a record of the taxpayer in the IMF database, the case file will be established using the taxpayer’s SSN.

      Note: If an IRS number (IRSN) needs to be issued to the taxpayer to establish the case file, follow the appropriate procedures for requesting an IRSN.

3. Research Tools: To meet the requirements stated above, the indexer will research the following sources:

   • Form 14457: Offshore Voluntary Disclosure Letter: Review the Offshore Voluntary Disclosure Letter to determine the Primary Taxpayer’s correct name, TIN, address, the existence of possible related submissions, and other pertinent information.

   • CI Formal Acceptance letter: Confirm that the taxpayer has been accepted into OVDP. Also, note the date on the formal Acceptance letter.

   • CI List Database: From the CI List, verify that the submission is for an International disclosure rather than for a Domestic disclosure. Both are on the CI list and, on occasion, a Domestic disclosure is sent to OVDP by mistake.

   • e-Trak: Check the e-Trak database to determine whether the case has already been established. In some cases, the Submission folder from CI is either additional documentation for an established taxpayer or was already sent to OVDP and is for an already established case.

   • AMDISA: Verify that the taxpayer is not under examination in another exam group.

   • IMFOLI: Verify whether the taxpayer has filed tax returns.

   • IMFOLT: Review the IMFOLT for the tax years covered by the taxpayer’s submission to determine the taxpayer’s filing status.

   • INOLES: Verify the taxpayer’s correct name and address.

4. Related Submissions and Related Index Numbers: Related submissions refer to submissions that should be certified together. For OVDP submissions, this is normally because the taxpayers are reporting the same OVDP assets , i.e. a married couple, siblings or families with joint offshore accounts. It is the indexer’s responsibility to determine whether there are related submissions and, if so, to determine the controlling submission and the primary taxpayer’s TIN for each submission. It is extremely important that the correct primary TIN is identified because this is the TIN that is built in AIMS. Each group of related submissions must be assigned its own, unique, Related Index (RI) number in addition to an e-Trak SI number.

5. Identifying the Primary TIN: Every submission will have a primary TIN. When a tax return(s) includes both a primary and secondary TIN, even if the OVDP submission was only filed on behalf of the secondary taxpayer, the primary TIN will be the first TIN listed on the tax return. If there are multiple related taxpayers for a submission, review IDRS and determine how the taxpayers filed and under what TIN.

6. Assigning an e-Trak Submission Index Number: It is the indexer’s responsibility to assign the e-Trak Submission Index (SI) numbers. The e-Trak report "Submission Index VDP Last Input Rept." shows the last e-Trak SI number that was assigned. Using this report, assign each submission the next sequential Submission Index Number.

7. Recording the Submission in e-Trak: All OVDP cases must be recorded in the e-Trak database. It is the indexer’s responsibility to establish the case in the e-Trak database by completing the "Taxpayer" tab and part 1 of the "Controls" tab; part 2 of the "Controls" tab is completed during the AIMS establishment step. The e-Trak recordation process begins once an e-Trak SI number is assigned. The "Taxpayer" tab and both parts of the "Controls" tabs in e-Trak must be completely filled out before the cases are given to Team 1 for case building.

   1. "Taxpayer" Tab: Enter the following data on the "Taxpayer" tab:

      • Submission Index Number - record the e-Trak SI number assigned to the case.

      • OVDP Submission TIN - This is the TIN that is shown on the CI List. The TIN is usually, but not always, the same as the primary TIN. The purpose of this field is to be able to reconcile the indexed TINs with those that have been provided by CI.

      • Related Index Number - record the Related Index Number, if applicable. Each group of related cases must be assigned its own, unique Related Index Number. Additionally, every case within a group of related cases must have the same, identical Related Index Number.

      • Controlling – Enter "Yes" or "No" in this field, using the drop-down feature, only when there are related submissions. When there are related submissions, only one case is designated as the controlling case and is thus marked "Yes". The other cases can be marked "No". If related cases have addresses in different parts of the country, the controlling case is where all the related cases should be sent for certification by the field.

      • Disclosure Filed Timely - This was used when there were late submissions under OVDP 2009. There are no late OVDI 2011, OVDP 2012, or OVDP 2014 submissions. Therefore, for OVDI 2011, OVDP 2012, or OVDP 2014 this should be marked "Yes".

      • Case Type - Choose the appropriate case type, 2011 Initiative, 2012 Program or 2014 Program.

      • TIN - The TIN for only the PRIMARY taxpayer information is entered. It is extremely important that the correct Primary TIN is entered.

      • Last Name/Business - If this is a business (EIN), record the entire name in the Last Name/Business field. Do not enter anything in the first name field. NOTE: Add Title/suffix or "DECD" following the first name.

      • Spouse Information - Self-explanatory

      • Address Information – Use the address found in INOLES

   2. "Controls "Tab: Enter the following data in part 1 of the Controls tab:

      • Office – Use the dropdown feature to enter “AUS” for Austin.

      • CI Memo Date - Use the date of the formal Acceptance Letter from CI.

      • Disclosure Received Date – Enter the date that CI assigned to the Date Folder holding the submission that is being entered into e-Trak.

      • Filer Indicator – both filers and stop filers are entered as "filers", only non-filers are entered as "non-filer".

8. Transferring the Submissions to the VDP2-3 Shared Folder: Once the appropriate information has been entered in the e-Trak database by the Indexer, the Indexer will rename and move the renamed Submission folders from the Indexer’s hard drive to the “VDP2-3 Scans folder” located in the "VDP Shared folder". The submission is renamed by indicating the e-Trak SI number plus the CIMIS number assigned by CI, for example "81114-1750154630".

9. Creating the Blue Folder that is used to maintain the CI documents: The Indexer will print out four sets of documents from each Submission folder, now on the Indexer’s hard drive, and place the paper copies of the documents in a Blue folder for the File Completion step. Record the e-Trak SI number on the tab on the Blue folder. The Blue folder will contain:

   • Offshore Voluntary Disclosure Letter – The Blue folder will contain the earliest perfected Form 14457, Offshore Voluntary Disclosure Letter, that the taxpayer submitted to CI requesting admission to OVDP. On occasion, there will be multiple Offshore Voluntary Disclosure Letters that the taxpayer submitted to CI; the earlier versions usually had to be perfected by the taxpayer before CI would accept them into OVDP.

   • CI Check Sheet(s) showing the various background checks that CI performed

   • CI Acceptance letter to the taxpayer, stamped with the date that the CI folder was received by OVDP

   • Form 2848 Power of Attorney, if applicable

   • Form 56 Notice Concerning Fiduciary Relationship, if applicable

   • Form 9984, Examining Officer's Activity Record is used to communicate notes to other people involved in the OVDP process. The Form 9984 might include the following information:

     • If an -L Freeze is present but the submission was accepted by CI.

     • Any other information that would be helpful for File Completion step, the AIMS/ERCS Establishment step, or information that may be useful for the case builders.

10. Updating the FADI Control Log: If a Submission folder has not been indexed, the exception must be noted on the FADI Control Log. For example, if a Date Folder includes a Domestic submission and, thus, the submission has not been indexed, this should be noted on the FADI Control Log. If all the Submission folders have been indexed, this should also be noted on the FADI Control Log.

(1) The File Completion step is the process of creating the physical case folders that will contain the OVDP submission documents.

1. Burning the PDF Scans to a CD: All the electronic documents received from CI should be burned onto a CD using the Symantec CD Burn process. All PDF scans for submission folders with an "addl" suffix, i.e. documents received for an already established case, must also be burned to a CD. Each CD is encrypted with a pre-set password.

2. Determining Whether the Submission is Domestic or International: Determine whether the submission is domestic or international based on the address of the taxpayer in INOLES and the address of the POA. If either address is international, the submission is international.

3. Creating a Manila Folder to store the CD:
   Outside Front Cover - Top, Left

   • Put the Case Type: VDP 2011, VDP 2012 or VDP 2014

   • Related cases associated with the Primary case file should have a Related Case Cover Sheet attached to the front of the manila folder.

   
   Outside Front Cover - Top Center

   • Put the Primary TIN, & underline it in red

   • Put the Primary name below it

   • Put the Secondary TIN (if any)

   • Put the Secondary Name below it

   
   Outside Front Cover - Top Right

   • Put the Submission Index Number (SI number).

   • Below the SI number, next to "Year" on the folder:

     • Write "Filer" if the taxpayer has filed in the past, even if the taxpayer is a stop-filer.

     • Write "Non-Filer" if the taxpayer is a non-filer. Special procedures are required to establish a non-filer case in AIMS.

     • In the "Date Assigned Tax Auditor" section, write the file completer’s initials (first & last) and the date that the manila folder was created.

   
   Outside Front Cover - Bottom Right

   • In the related taxpayer name section, write pertinent comments. Include:

     • If the secondary TIN is the account holder

     • If any other -L Freezes are present, indicate the year & the project code

   
   Inside Front Cover

   • Staple the CD and encrypted media instructions sheet to the inside front cover of the manila folder.

   • Include any Form 9984 in the manila folder.

4. Creating a Brown Folder for each submission entered into the E-Trak database:

   • Each manila folder will have a brown folder even if the related submissions have the same e-Trak number.

   • The blue folder(s) and the Manila folder(s) go into the brown folder.

   • Write the e-Trak number on the spine of each brown folder.

   • Write "INTL" in the upper right corner of the brown folder for all international submissions. If the submission is a domestic submission, write in the state abbreviation in the upper right corner of the brown folder.

   • If there are related submissions, rubber band the brown folders for all the related submissions together; place the controlling submission’s brown folder on top.

1. Inputting e-Trak submissions in AIMS: Determine if the taxpayer is a "filer" or "non-filer" using the IMFOLT of the year to be controlled. (If there is a TC 150 without a substitute for return (SFR) indicator posted to the account they are "filers".) If there is not a TC 150, use IMFOLI to determine if they have filed previously and stopped.

2. Use IDRS Command Code "AM424" to add the control to AIMS: The submissions will process one at a time using the following information:

   • Source Code: 73 filer & stop-filer or 24 non-filer

   • Primary Business Code: 330

   • Secondary Business Code: 87700

   • Master File Tax Code: 30 for individuals with an SSN, EIN’s will vary

   • Status Code: 6

   • Return Request Indicator: 3 (no return)

   • Project Code: 1123 (2012 Program) or 1153 (2014 Program)

   • Tax Identification Number: SSN, EIN or IRSN

   • Name Control

   • Year to be controlled

   • Activity Code: 272 for SSN’s, EIN’s will vary

   • Push Code: 36 (used for non-filers and stop-filers)

   • Statute Day: EE (used for non-filers and stop-filers)

3. Establishing a Case in IMF: When INOLES shows that the taxpayer is not established in the IMF database (no account on Master File) because the taxpayer has not filed a tax return, the case must be opened in IMF.

4. Reviewing IDRS to Verify that Submissions were Fully Established in AIMS: Once a submission is established in AIMS, the AIMS/ERCS establisher will complete part 2 of the e-Trak Controls Tab (disposition section). The steps to perform this task are:

   1. Date to AIMS: This is the date that the case is fully established in AIMS.

   2. Ready to Ship – "Yes" when the case is ready to transfer to the OVDP Case Building team.

   3. Disposal – "Ship"

   4. Disposal Date: This is the date that the Submission was given to the OVDP Case Building team

   5. Comments: Use this field to record all pertinent case comments.

      Note: Because there is a 256-character limit in this section, it is important to keep these comments brief and succinct. Do not format the comments by inserting carriage returns or any other formatting methods. Separate thoughts with a period. Use abbreviations when possible.

5. Transferring the Cases to the OVDP Case Builders: Each week, the AIMS establisher will check the AIMS database to determine which of the submissions that have been input in AIMS through AM424 have been fully established on AIMS. When a submission is fully established on AIMS, the submission is ready to move to the OVDP case building team. When the submission case files are physically moved to the OVDP case building team, a list of the submissions being moved will be given to the OVDP case building team.

6. Updating the AOIU Status Report on OVDP SharePoint: When all the cases in a CI Date folder are moved to the Case Building team, the AOIU Status Report maintained on SharePoint is updated to reflect the completion of the Date folder. The information in this control log allows management to monitor the status of the Case Establishment work stream. Each time that cases are moved to the Case Builders, the "Monthly" tab should be updated to reflect the number of cases that are being moved.

7. Sending the Letters 5089: When OVDP cases are ready to transfer to the Case Builders, Letter 5089 is sent to the taxpayer and to the taxpayer’s representative. This letter informs the taxpayer and the representative of the 90-day deadline for submitting the documents required for their OVDP submission. The letter also gives the 180-day final deadline for submitting documents and informs the taxpayer and representative of the process for requesting a 90-day extension beyond the initial 90-day deadline.

8. Add Cases to the OVDP Active Cases Management Report: See IRM 4.63.3.1.4, Program Management and Review.

9. Associating OVDP unassociated documents with the case file: Taxpayers will on occasion send documents related to their OVDP submission to the OVDP Unit before they are accepted by CI into the program. When the documents are received, they are placed in a suspense file and recorded on a control log. Each time new cases are ready to transfer to the case builders, the log is checked by the AIMS establisher to determine whether or not the documents associated with a particular case have already been received. If the documents have already been received by OVDP, they are retrieved from the suspense file and associated with the OVDP case file before the case file is given to the case builders.

1. Mail is received in the campus mailroom.

2. Mailroom clerk will open the mail and any checks received will be deposited and processed by the mailroom clerk.

3. Mail is also delivered to the OVDP Team by internal mail or from Receipt and Control function. When possible, mail should be checked and processed daily .

4. Some mail is not opened and delivered to the OVDP Team. The mailroom will call the team to have it picked up. These are usually flat packages and boxes (primarily internal mail). The tax examiner will go to the mailroom for those items. These packages will be located inside the mailroom, which is a restricted area.

5. All employees are to review the documents to see if there are any checks that need to be processed. No one is to accept mail that includes remittances. If there are checks, the employee is to give the mail back to the mailroom clerk for deposit and processing.

6. All mail is date stamped with Receipt and Control stamp given to tax examiner by mailroom clerk per IRS procedures (IRM 3.10.72.3) (e.g. first page of tax returns and correspondence.) Taxpayer original documents such as bank statements are not stamped.

7. When mail is received in OVDP Team, it is stamped using OVDP stamp as "received in OVDP".

8. Using the taxpayer’s SSN, the tax examiner will research all incoming mail by first checking IDRS, and reviewing AMDIS. If there is an AMDIS, tax examiner will look for a Project Code (see list of OVDP Project Codes) and an employee group code (EGC) to determine where the mail should be routed.

9. If it is in OVDP, (OVDP EGC) the tax examiner will check e-Trak for the e-Trak number. Tax examiner will pull the case file to associate the documents.

10. If the AMDIS shows an EGC not in OVDP and the examination has not been closed, the mail is routed to the Exam Group controlling that case. When possible, mail should be routed daily and not be allowed to stack up or accumulate. Routing instructions are provided by the tax examiner or employee performing the research.

11. If there is no control on AMDIS, the tax examiner will research e-Trak to determine if an e-Trak number is assigned.

12. If there are Forms 1040X with foreign sourced income and/or foreign information returns (5471, 5472, 886, etc.) these may be Quiet Disclosures and will go to the Quiet Disclosure Coordinator. Quiet Disclosures will never be on the CI listing, nor will they have an e-Trak number.

13. If there is an e-Trak number, the case is an OVDP case and the tax examiner will associate mail with the case file.

    1. A letter in the file with or without an original signed 906 requesting penalty reconsiderations, reductions, and/or removal will be given to the RA working penalty reconsiderations.

       Note: Penalty reconsideration was provided for certain taxpayers that participated in the 2009 OVDP after new lower penalty categories were introduced in the 2011 OVDI. See 2011 OVDI FAQs 52 and 53. Penalty reconsiderations, reductions, and removal requests are now extremely rare.

    2. A letter in the file indicating the taxpayer wants to opt-out of OVDP goes to the RA working opt-out cases.

14. If there is no e-Trak number, the tax examiner is to research the CI List. If on the CI list, the tax examiner is to determine what CI did with the disclosure. The list should tell the tax examiner what CI has done with the voluntary disclosure. (these are considered "unassociated documents")

    1. Accepted/Direct Referral – we will eventually get an e-Trak number. Documents will be considered Taxpayer’s information is entered on the spreadsheet "Unassociated Documents OVDP with no e-Trak number" by the TE or RA involved in that work stream.

    2. Declined/ Ineligible to Participate or Closed Incomplete – Documents for CI Declined taxpayers are currently handled through the unassociated documents work stream.

    3. Withdrawn – These are considered non-OVDP documents and are given to the Declined & Withdrawals campaign librarian for consideration in the risking process. RA to determine next processing.

    4. Pending – If there is no information on the disposition of the case, this is considered pending. Documents are given to the responsible Sr. RA in the same manner as the Accepted/Direct Referral cases.

15. If the file is not on the CI List, the tax examiner will research the file for any indication of why we received the documents. If the tax examiner cannot determine where the documents should go, give them to an RA or the Manager for review.

    1. The file may have documents indicating the taxpayer wanted to go into OVDP.

    2. The file may have a letter requesting information on their case.

16. Tax examiner is to review all documents for amended returns and Forms 872.

    1. Amended returns with a balance due are to be reviewed. Tax examiner will print an IMFOLT for that year and give to the manager.

    2. All Forms 872 and FBAR extensions that are received need to be pulled and go to the manager along with the case file for review and signature. If the taxpayer did not sign and there is no Form 2848 for the POA, then it needs to go to the manager or designated examiner to contact the POA for the proper documentation. Forms 872 that need perfection go to designated person.

17. All incoming Forms 3210 need to be acknowledged after verifying we have received everything listed. An acknowledgement copy will be returned to the person shipping the documents. Our copy needs to be filed in our OVDP Incoming Form 3210 binder.

    Note: Forms 3210 will be received from internal sources only.

1. Outgoing mail that needs to be processed will be given to the tax examiner.

2. Verification of each address and contact person is made prior to shipping and shipping label prepared. Use the Who/Where tab in SERP to look up the address of the EGC to mail the documents

3. A Form 3210 is prepared with the listing of cases, documents, etc. Information on the Form 3210 will include: e-Trak number (if there is one), SSN (last 4 digits per guidance), Name Control, and description of documents being mailed.

4. If more than one box, Form 3210 is prepared for each box of documents with the # of boxes in the shipment noted on the shipping label. Confirm SSN/e-Trak for each case in the box is correct.

5. Part 4 of the Form 3210 is filed in the "Unacknowledged" section of the OVDP Outgoing binder for our records. The Outgoing Binder is divided into two sections: Unacknowledged 3210s and Acknowledged 3210s. The unacknowledged Form 3210 will be pulled and shredded when the acknowledged 3210 is received and filed. The acknowledged copy will then be filed in that section of the binder.

6. A follow-up will be made in 10 days if Form 3210 is not acknowledged by the person receiving the mail/documents and will continue to follow-up through email and/or phone calls until acknowledged copy is received.

7. Files to be shipped are double wrapped, as required per IRM 10.2.13.4.4.1, Shipping Personally Identifiable Information (PII). Also seeDocument 13056, Employee Toolkit on Shipping Procedures for Personally Identifiable Information (PII).

8. Electronic transfer of database, if required is made on ERCS by tax examiner or initiated by PSP if the transfer is to SBSE.

9. Mail needs to be in the mailroom by 2 p.m. to be shipped that day. If after 2 p.m., it will be shipped the next day.

10. Boxes are taken to the mailroom for shipping.

    1. Form 9814 is used to ship documents via UPS, write on top "Tracking Information Please" to receive the tracking information. Form 9814 will be returned from mailroom with tracking number on it. OVDP mailing address should be included on the Form 9814.

    2. Attach a copy of the Form 9814 to the "to be retained copy" of the Form 3210 (part 4 of Form 3210). The Form 9814 will be removed when the acknowledged copy of the Form 3210 is received.

    3. A copy of the Form 9814 will be sent to the OVDP manager from the mailroom and will be filed in OVDP.

       Note: Only use DHL when sending to a physical business address as DHL requires a signature.

11. All outgoing correspondence to an international business address is to be sent via DHL.

1. OVDP cases which are identified as International must have all participating years controlled on AIMS/ERCS prior to sending to the field. The cases are opened under the exam freeze –L. OVDP exam group codes (EGC) currently are:

PBC	SBC	EGC
330	87700	1940

2. Current project codes which are most widely used are:

   1. 1008 – timely filed 2011 OVDI ( Identified by e-Trak number in the 4XXXX series)

   2. 1123 – timely filed 2012 OVDP. Identified by e-Trak number in the 6XXXX series

   3. 1153 – timely filed 2014 OVDP. Identified by e-Trak number in the 8XXXX series

3. Taxpayer Name, Name Control and Address: To ensure no error message is received when the Form 5345-D is being input, the taxpayer’s name, name control and address should be taken from the INOLES. Enter the taxpayer’s name (LAST, FIRST, MI), street address, city, state, and zip exactly as it appears on the INOLES. On business returns, be sure to check the name control on INOLES, e.g., Tom Jones Company – name control could be TOMJ or JONE.

4. PBC/SBC/EGC – See above. For domestic cases, use EGC 1942; International cases use 1943

5. TIN – Use the primary taxpayer’s social security number or ITIN. The penalty module will be opened for the either the primary or, if the voluntary disclosure is only for the secondary spouse for that spouse.

   Note: A separate form must be made when TIN or MFT is different, therefore the penalty module will also have its own Form 5345-D due to the civil penalties MFT 55.

6. MFT – For individuals tax account MFT is 30; for corporations tax account MFT is 02; for partnerships tax account MFT is 06; for trusts tax account MFT is 05; for penalty module MFT is 55/P9.

   Note: A separate form must be made when TIN or MFT is different, therefore the penalty module will also have its own Form 5345-D due to the civil penalties MFT 55.

7. Tax Period: Input YYYYMM (e.g. 201212) for each year and month ending that needs to be controlled. The penalty module tax year is determined by the particular OVDP the taxpayer is participating in.

8. Activity Code: Use the activity code from the key year for all related years. For the penalty module, activity code is always 506.

9. Source Code: Refer to the Source Code Job Aid Document 6036.

10. Status Code: The Status code should be 08 for domestic and 06 for international cases.

11. Statute Date: Use alpha code if applicable when the statute is within 90 days, for Non-Filed returns in OVDP it will be EE with a Push Code of 036. If a YY memo is necessary due to a barred statute, the statute date will be in the form 04/YY/2014. For the penalty module, the statute date will in the form 04/XX/2015. If you are using a YY statute, you will need to attach a copy of the YY Memo to the Form 5345-D.

12. Tracking Code: Generally not used by OVDP

13. Project Code: The key case has a project code. The same code is required on all prior, subsequent returns and the penalty module as well. In most cases, you will use the same project as the currently open control (check AMDISA).

14. Claim amount: Not used by OVDP POD. AIMS will post the correct POD.

15. Related Return Indicator: K – key case Y – related year. OVDP forms will normally indicate that these are all related cases by using Y in this box.

16. Aging Reason Code: Not used by OVDP

17. Input on ERCS: This section will be initialed by the person who input the request on ERCS. A copy of the Form 5345-D will be returned to the agent for their case file with the IDRS prints.

18. Related Return Information: The examiner will complete this section to show the key case. This is the authority for opening the related cases.

19. Reason for Request: A reason must be given. When opening all additional tax years for international cases this should be noted; when opening the penalty module a short sentence indicating this is sufficient.

20. TEFRA/ Original Return Requested / Labels / Joint Committee/ Foreign Control/ etc.: Enter N in these box(es) for OVDP purposes.

21. LB&I/CIC: Not used by OVDP

22. Examiner’s Signature / Manager’s Signature: The examiner is required to sign Form 5345-D before forwarding to the manager for approval. Once approved it is given to the assigned tax examiner for input on ERCS.

23. If the taxpayer’s filing status has changed, you will need separate forms for each filing status.

24. International cases require all pertinent tax years to be opened and controlled, including the penalty module (MFT 55). The disclosure period for the current program is 8 years. In addition, it is possible that the taxpayer’s particular situation allows for a different number of years to be opened. You will need to review the case file documents to determine the correct number of years.

(1) To complete Form 2859, Request for Quick or Prompt Assessment:

1. Top Section

   1. Reason for request – Check box by Quick

   2. Check box by 130-132 Exam Agreed

2. Part A - Taxpayer Information

   1. TIN: Enter first Social Security Number entered on Form 1040X

   2. Name Control: Use first four letters of primary taxpayer’s last name from IDRS. IMFOLT, IMFOLI, and AMDISA – all show the taxpayer’s name control

   3. Name: Enter taxpayer names as found on Form 1040X; First, MI, Last

   4. Address: Enter address as found on Form 1040X

   5. 23C Date: Check the Specify box. Using the space right next to Specify enter appropriate 23C date.

      Note: This date changes. Check the posting in office for correct 23C date to use.

3. Part B – Requester Information

   1. Statute Expiration Date: Use ASED from the IMFOLT print

   2. Requester name/address/phone number: Enter your Name, Unit, Mail Stop and Phone number – Use Ext 8707

   3. Employee assignment number/function: Enter your 10 digit IDRS number. You can find this number by using command code SFDISP in IDRS.

   4. Date: Enter today’s date

4. Part C – Assessment Information

   1. Section 1. Form No. – Enter 1040

   2. Section 2a. Period ended – Enter tax year (e.g. 200912; 201012, etc.)

   3. Section 4a. Tax Adjustment –

      1. If you have a Form 1040X that contains only one column of numbers (Rev. 01-2010), use figure from Amount You Owe, Line 19

      2. If you have a Form 1040X that contains three columns of numbers, look at figures on Total Tax – Net Change, Line 10, Column B or Amount You Owe Line 21 (or Line 19, depending on form revision) WHICHEVER IS GREATER between Total Tax – Net Change and Amount You Owe

   4. Section 18. Total Assessments – Use same figure as Line 4a, above

   5. Section 22. Total Lines – Use same figure as Line 4a

   6. Section 23. Payment on Tax Module – Use same figure as Line 4a

   7. Section 24. Balance of Tax Due – Enter 0.00 (zero)

5. Remarks: At the very bottom of the form in Remarks – Enter: "OVDI Per Form 1040X – DO NOT BILL"

(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
   
   ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   
   ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
   
   ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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(1) All tax examiners (TEs) will maintain their individual Streamlined Correspondence Log. When applicable, each step should be input as the TE performs the task using the standard descriptions described below. All TEs will upload their individual Streamlined Correspondence Log to the OVDP SharePoint daily before the end of their tour of duty.

(2) Step 1 – Process Form 2848 Power of Attorney and Declaration of Representative
The Form 2848 must be verified and submitted to CAF within 5 days of receipt. After the review of Form 2848 is complete, the TE will complete the "IRS Only" box; write "Faxed to CAF" with the date on top of form; and fax the Form 2848 to the appropriate CAF unit.

1. Check CFINK to verify that the Form 2848 you received has not already been submitted to CAF. If CFINK shows a POA for the taxpayer you must confirm that the information matches the Form 2848 that you received.

   • Use the CFINK IDRS Command Per CFOL Express. This command code provides information on the taxpayer's Powers of Attorney nationwide.

     • Format: CFINK 000-11-2222

     • Comment: The periods shown will be the only modules covered by the Power of Attorney. The output will look like this: 30 200912. In this instance the fiscal year ended in the 12th month.

   • Next, input:

     • Format: CFINK 000-11-2222
       30 200912

     • Comment: This will provide the name of the representative and his/her representative ID number.

   • To obtain the address and phone, input:

     • Format: CFINK 4000-12345R

     • Comment: Number is representative ID number.

     CFINK can also be researched using the IAT tool.

2. Verify - Per 4.11.55.1.7.1, the F-2848 must contain:

   • The taxpayer’s identity

   • The Power of Attorney/representative’s identity

   • The type of tax or tax form number

   • The applicable tax periods

   • The taxpayer’s dated signature

   • The representative’s designation, jurisdiction, and dated signature

   Specific instructions

   • Per OVDP’s 2014 FAQ 48, Form 2848, Line 3 "Description of Matter" should list "Income, Civil Penalties, and Report of Foreign Bank and Financial Accounts (FBAR) Matters". (A sample is provided through a link in the FAQ.) The use of terms such as "all taxes" is not acceptable.

   • The tax forms for the respective matters are 1040, N/A (for civil penalties), and TD F 90-22.1/FinCEN Form 114.

   • The years should name the specific years covered by the Form 2848; the use of terms such as "all years" is not acceptable.

   • The representative must be an individual; a firm or corporation cannot be designated a representative.

   • Make sure the Form 2848 is the current form.

   • Verify that both the taxpayer and the representative(s) signed the Form 2848.

   • Joint filers must complete and submit separate Form 2848s.

   • Verify that the representative’s designation is valid. Most of the representatives for OVDP are attorneys (designation "a") or CPAs – both are required to hold a valid license in the state that they list for their licensing jurisdiction or authority.

     Example: To research an attorney licensed in California, Google "State Bar of California". Click on attorney search and enter the bar number listed on the Form 2848. The results will indicate if the attorney is active and currently allowed to practice law in California.

     Example: To research the license of a Texas CPA, Google "Texas State Board of Public Accountancy" and click on "License Lookup". Click on "Individual Licensee – Lookup" and search by the license number listed on the Form 2848

   • If the license number is incorrect, search using the representative’s name and address. If you can’t find anything, bring it to the RA.

   • Form 2848 may be a fax or a copy.

3. Process - Per IRM 4.11.55.1.8.2

   • Upon receipt of a POA (Form 2848), the employee must ensure that all required elements are properly completed and the form must be date stamped.

   • Once it’s determined that the POA is valid and can be submitted to CAF, the employee should take the following actions:

     • Enter the name, telephone number, function of the person reviewing the POA and date of the review in the space provided on the first page.

     • Note across the top of page 1 "Faxed to (Appropriate Campus) on (Date)".

     • Domestic Form 2848s should be faxed to the Ogden CAF unit at 855-214-7522

     • Foreign Form 2848s should be faxed to the Philadelphia CAF unit at 855-772-3156

     • Receipt, review and forwarding of the POA to the CAF unit must be completed within five workdays of IRS receipt.

     • Retain the Form 2848 and fax sheet with the correspondence

(3) Step 2 – Input & Verify the Taxpayer Name(s) and TIN(s)

• Input the taxpayer’s name and TIN into the correspondence log. If the correspondence is for a married couple, input the primary name and TIN first, the spouse name and TIN second.

• Use INOLES to verify that both the primary and the secondary taxpayers’ names and TINs are correct on the correspondence.

• If the TIN is not on the correspondence or attached documents use the command code NAMES to research the TIN. See CFOL Express or use the IAT tool if you are not familiar with the IDRS command code NAMES.

• If you are unable to locate the taxpayer using NAMES, then document that fact in the correspondence log.

(4) Step 3: Determine if the taxpayer’s case is an OVDP case.

(5) Step 4 – Determine what the Non-OVDP Taxpayer letter says: