4.19.22. CAWR Control

(1) This section is designed to assist the clerical employees in the Small Business/Self-Employed (SB/SE) Document Matching Combined Annual Wage Reporting (CAWR) operations with their responsibilities.

(2) Purpose: To provide procedures for the clerical staff in the CAWR Operation.

(3) Audience: The primary users of this IRM are SB/SE clerical employees in the CAWR operation.

(4) Policy Owner: Director, Exam Field and Campus Policy.

(5) Program Owner: SB/SE BMF Document Matching.

(6) Primary Stakeholder: Small Business/Self Employed (SB/SE).

(7) Program Goals: Program goals for this type of work can be found in IRM 1.4.22, CAWR Manager and Coordinator Guide.

(1) IRS-CAWR issues the Letter 99-C and SSA-CAWR issues the Letter 98-C .

(2) The bulk of CAWR receipts will be responses:

1. Letter 98C - Separate and control as an SSA-CAWR case. The current year for SSA-CAWR is the statute year.

2. Letter 99C - The current year for IRS-CAWR is statute year plus one year and should be controlled as a current reply.

(3) In addition, taxpayers may also respond to Letter 2057-C closing letters, adjustment notices, notices of intent to levy, or balance due notices. Further research may be needed to identify and process these cases IRM 4.19.22.2.2, Researching on IDRS.

(4) Correspondence may be received by mail, fax and/or referrals.

(5) CAWR cases can be defined as Reply, Reconsideration (Recon)(previously called Late Reply), or Prior Recon (previously called Late Reply).

1. A Reply is any case with a current notice as listed above. This case will not be accompanied by any other notices and will not have an assessment or penalty applied. The cases are typically in "M" status in IDRS and do not have a closing date on CAP if applicable.

2. A Recon (previously called Late Reply): May have a current notice but it will be accompanied by another notice. It will have tax and/or penalty assessment. The status in IDRS is most likely closed or in suspense and if applicable it will have a closing date on CAP.

3. A Prior Recon (previously called Late Reply) is any case no longer on CAP. It will have the same characteristics as a Recon (previously called Late Reply). It will have tax or a penalty assessment and the correspondence may include a bill. You may have to do extensive research for this case type in IDRS utilizing command codes such as BMFOLI, BMFOLU, BMFOLT, etc.

(1) This section is to be used for all Letter 98C and Letter 99C that are returned undeliverable. Undeliverable mail received from the mail room can be identified one of two ways:

1. Unopened original CAWR correspondence.

2. An opened original CAWR correspondence with the envelope affixed to the back.

(2) All letters 98C or 99C undeliverable mail is to be researched for a better address within 14 calendar days of receipt. If a better address isn't found the case must be controlled within those same 14 days to stop the suspense time frame from expiring.

(3) Check the envelope for a yellow Post Office (P.O.) forwarding sticker. If a yellow sticker is present, compare the entity on the yellow sticker to the name and address using CC ENMOD to verify it is the same taxpayer. If so, then determine if the address on the USPS yellow sticker is more current than the address on ENMOD. If the USPS sticker is more current use the address to reissue the letter.

(4) When there is not a PO forwarding sticker present, research IDRS for a new/better address. A new/better address may be found using Command Codes ENMOD, INOLES, NAMEE, and BRTVUE.

(5) If CC ENMOD shows an SSN that is responsible for the entity, use CC INOLE definer "S" for the SSN to research for a new/better address. If CC ENMOD shows a Mr. and Mrs. listed, address the notice to only the taxpayer that owns the SSN found on ENMOD for disclosure purposes.

(6) Undeliverable batches will be numbered as follows:

• AA = the last two digits of the tax year of the cases.

• BBB = Program Type. IRS-CAWR-Undeliverable will be notated as UNI or UNS.

• CCCCC = Next Sequential Number available in log.

Example: 22UNI00001=first batch created for
IRS-CAWR Undeliverables
for 2022 cases.

Example: 21UNS00001=first batch created for
SSA-CAWR Undeliverables
for 2021 cases.

(7) Retrieve cases previously sorted (no more than 30 cases) of the same program and IRS received date and assign the next available batch number from the appropriate logbook.

(8) When updating IDRS controls manually, follow procedures below to update IDRS control:

1. Access CC TXMOD.

2. Access CC ACTON.

3. Create a new "A" Status control labeled UNDL and reassign it to the number designated for the program you are working.

   Example: C#,22UNI00001,A,UNDL
   10 digit IDRS TE#, IRS Rec'd date

(9) Create a cover sheet listing each EIN/TIN of the batch, IRS Received Date, and Batch Number. See Exhibit 4.19.22-1 for a sample cover sheet. Place cover sheet on top of the batch.

(10) File completed batch in inventory staging area separated by program in batch number order.

(1) A statute of limitation is a time established by law to review, analyze and resolve taxpayer and/or IRS related issues. The Internal Revenue Code (IRC) requires that the Internal Revenue Service (IRS) will assess, refund, credit, and collect taxes within specific time limits. These limits are known as the Statutes of Limitations. When they expire, the IRS can no longer assess additional tax, allow a claim for refund or credit by the taxpayer, or take collection action. The determination of Statute expiration differs for Assessment, Refund, and Collection.

(2) Failure to protect an assessment statute can result in disciplinary action against the responsible employee. The responsible area/employee is identified as the area/employee that had the case when the case was within 90 days of the ASED and either took no action to protect the statute or allowed the statute to expire (barred statute).

(3) For CAWR clerical a Statute imminent case is identified by the Assessment Statute Expiration Date (ASED) which is 3 years from the due date of the return. (Example 202112 tax year returns were due by 04/15/2022: therefore, the ASED for 202112 cases will be 04/15/2025). The ASED can be found on IDRS command code TXMOD or command code BMFOLT.

(4) The CAWR Batcher Tool will assist you in identifying a statute tax year case. The tool will not batch the case and it will print it out on the error listing with ASED in the remarks section. These cases will be manually batched and controlled on IDRS to a designated management official who will be responsible for making sure the case is reviewed and/or worked immediately to protect the statute.

(5) To manually batch these cases, use the following procedures:

(1) Clerical function is responsible for all outgoing mail. This mail may consist of internal mail, misdirected mail, or external mail.

(2) Internal mail is routed to other areas using a Form 3210, Document Transmittal. The receiving area will acknowledge the receipt of the cases by sending a signed copy of the Form 3210 back to the originating area. These forms must be maintained in a log in the CAWR unit for 30 days.

(3) At times misdirected mail may be received. Mail not related to the CAWR program will be routed back to the mail room for proper routing if the mail room was in error routing it to Clerical. If the letter was addressed to CAWR and did not fit CAWR criteria, forward to the proper area and issue a Letter 86-C to the taxpayer. For additional information on issuing 86C letters see IRM 21.3.3.4.2.1, Referring Taxpayer Inquiries/Forms to Another Office. Also see http://serp.enterprise.irs.gov/content/who-where/who-where.html for instructions in routing misrouted.

(4) When the Tax Examiners complete their daily casework, clerks forward to Files/Extraction. Follow local procedures for routing these folders to the Files Function.

(5) Form 9338, Closed Case Result Sheet for Returned SSA Cases and Form 6494, Correction of W-3 Transmittals are filled out by the TEs and sent to SSA at least monthly. Send each tax year to SSA with a separate Form 3210 as a batch cover. All Form 3210 and Form 9338, (with attached paper Forms W-3/W-2) should be sent to the following address:

Social Security Administration Division of Business Services 2-B-02 NT Wabash Building 6100 Wabash Avenue Baltimore, MD 21215

(6) At times Forms W-2/W-3 or Forms W-2C/W-3C are received prior to SSA Processing: These Forms will be notated with "URI" across the top.

(7) Taxpayers may request assistance from the Taxpayer Advocate Service (TAS). TAS is an independent organization within the IRS created by Congress to help taxpayers resolve problems with the IRS and recommend changes to prevent the problems. Form 12412, Operations Assistance Requests (OARs), are received from TAS in the Clerical Function by both mail and fax. When a Form 12412 is received in CAWR, it must be treated in an expeditious manner. Clerical should take the following actions for all OARs received:

1. Date Stamp each Form 12412.

2. Hand carry these cases to the TAS Liaison in your Unit or Functional Area.

(1) Cash and non-cash remittances found outside of the Receipt and Control secured/restricted area are "discovered remittances".

(2) When a Remittance is discovered, you must:

1. Immediately notify your manager/lead.

2. Access CC INOLES to verify the name.

3. At the bottom of the CC INOLES screen type the MFT, YEAR/Quarter, 670/ 570, Rec'd date, and money amount.

4. Print three copies of the CC INOLES screen. One attached to the case and two attached to the Remittance.

5. Complete a Form 4287 "Payment Posting Voucher".

6. Hand carry both the remittance, Form 4287 and INOLES prints to your Manager.

(3) If remittance is found attached to a case while working in the office, take the following steps:

1. Attach one copy (original) to the remittance and give it to the manager/Lead Tax Examiner who will give to the Clerical Manager/Lead Clerk to place in a locked box (lock box).

2. Attach the second copy of Form 3244 to the response.

(4) If the remittance is found attached to a case while teleworking, immediately take the following steps:

1. Notify your manager immediately.

2. E-mail completed Form 3244 and 4287 to your Manager and Coordinator/ Assistant Coordinator.

3. Place remittance in a sealed envelope and store in a secure place (locked desk or cabinet).

4. Document remittance details (i.e., leave a case note or history item).

5. Make an appointment to bring Discovered Remittance into the operation and deliver it to the technical Manager/Lead Tax Examiner within 2 business days.

6. Technical Manager/Lead Tax Examiner will accept the discovered remittance, print Form 4287 and Form 3244.

7. Manager/Lead Tax Examiner will deliver the discovered remittance to the Clerical Manager/Lead Clerk.

(1) Any loose Form W-2 or Form 8922 received into the department need to be researched on CAP:

(1) Schedule D "Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations" information is now stored in the CAP system for all tax years. Loose paper Forms 941 Schedule D are routed to Philadelphia Service Center (PSC) CAWR. These Forms will be entered into the CAP system by a designated employee by following these procedures:

1. Click "edit". Select TE Miscellaneous and then "CAWR SCHD".

2. Click on "Plus Sign".

3. Enter the EIN.

4. Enter the tax period.

5. Enter the other party EIN.

6. Enter the transaction date.

7. Click "YES" when prompted to apply the record.

8. Destroy the paper Schedule D.

(1) Below is an example of the Batch Cover Sheet used by the IAT Document Batcher tool. The header will show the IRS Received Date, Batch number, and Case type.