8.20.6. Interim Actions

(1) In February of 2003, Appeals changed the reporting structure of the APS function within Appeals from the local office Chief, to the Director of APS. The Director of APS reports to the Director, Case and Operations Support in Appeals headquarters.

(2) The APS specific Internal Revenue Manuals (IRM) are in IRM 8.20, Account and Processing Support (APS).

(3) APS responsibilities are described in IRM 8.20.6.1.3, Responsibilities.

(1) IRM 8.20, Account and Processing Support (APS), establishes the APS program and policy framework for Appeals.

(1) The Director, Case and Operations Support (COS) is the executive responsible for designing, developing, delivering, and monitoring short- and long-range tax administration policies, programs, strategies, and objectives for the Appeals organization.

(2) The Director, Policy, is responsible for providing technical and procedural guidance to Appeals employees, establishing and maintaining policies and standard procedures for Appeals work streams.

(3) Policy is comprised of two teams of analysts: Collection Policy and Examination Policy. The analyst(s) responsible for APS programs report to the Manager for Collection Policy.

(4) The Policy analyst shown on the Product Catalog page as the originator is the assigned author of this IRM.

(5) For more information on Appeals Policy, see the About Appeals - Case and Operations Support (COS) page on the Appeals website, where you can navigate to the two Policy teams’ web pages.

(6) The Director, APS, is the senior manager responsible for the control and processing of all Appeals cases. The Director, APS, reports to the Director COS. For more information on APS, see the APS page on the Appeals website.

(7) Appeals Account and Processing Support (APS) has primary responsibility for the following:

• Receiving and processing ACDS, AIMS, IDRS and other system/account update requests from the Appeals Technical Employees (ATE) and Counsel Attorneys.

• Issuing notices to the taxpayer which convey Tax Court rights and maintaining the case in suspense until the next applicable action.

• Verifying and updating Assessment Statute Expiration Dates (ASED) for each taxpayer’s account in Appeals’ or Counsel’s jurisdiction.

• Processing partial assessments and manual refunds when required as an interim action.

• Monitoring daily, weekly, bi-weekly, monthly, and quarterly reports and taking appropriate action(s) as applicable.

(8) The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see https://www.irs.gov/taxpayer-bill-of-rights.

(1) The APS function utilizes a variety of reports from the following systems to verify, control, analyze and monitor cases under Appeals and/or Counsel jurisdiction:

• Appeals Centralized Database System (ACDS)

• Automated Information Management System (AIMS)

• Docketed Information Management System (DIMS)

• Innocent Spouse Tracking System (ISTS)

• Integrated Database Retrieval System (IDRS)

• Processing Employee Automated System (PEAS)

(2) The following IRMs provide specific information related to APS program reports:

• IRM 8.10.1, Appeals Reports and Projects - Internal Reports

• IRM 8.20.2, Account and Processing Support (APS) - IDRS Transcripts and Automated Systems

• IRM 8.20.3, Account and Processing Support (APS) - Appeals Centralized Database System (ACDS)

• IRM 8.20.10, Account and Processing Support (APS) - Appeals Processing Employee Automated System (PEAS)

(1) The APS processing IRM terms and acronyms are provided in the following Exhibits:

• Exhibit 8.20.6-2, General Acronyms and Acronym Definitions Included in APS IRMs 8.20.5, 8.20.6, and 8.20.7

• Exhibit 8.20.6-3, Appeals Centralized Database System (ACDS) Acronyms and Codes Included in IRM 8.20.5, 8.20.6, and 8.20.7

• Exhibit 8.20.6-4, Audit Information Management System (AIMS) Acronyms and Command Codes (CC) Included in IRM 8.20.5, 8.20.6 and 8.20.7

• Exhibit 8.20.6-5, Integrated Data Retrieval System (IDRS) and Corporate Files On-Line (CFOL) Acronyms and Command Codes (CC) Included in IRM 8.20.5, 8.20.6, and 8.20.7

(1) Additional APS program information and resources are available as provided below:

• The APS Web Page at Account and Processing Support (APS), Account and Processing Support (APS)

• IRM 8.20.5, Account and Processing Support (APS) - Carding New Receipts

• IRM 8.20.7, Account and Processing Support (APS) - Closing Procedures

(1) The ATE will annotate Form 5402 with information pertaining to payments or 6603 Deposits received in Appeals for the following circumstances:

1. Remittances received while the case is in Appeals

2. Information pertaining to remittances identified by the taxpayer but not found on the transcript of account

3. Amount of advanced payment(s) and tax period(s) to which the payment applies

4. Amount(s) designated to pay tax (TC 640/670), or penalty (TC 690), or interest (TC 680)

5. Amount of disputable tax and the date of the Notice, 30-Day or 90-Day Letter for IRC 6603 deposits.

   Note: APS must be provided with the information in e) above because the taxpayer can request the return/refund of an IRC 6603 Deposit at any time prior to its conversion to a payment upon the posting of an assessment, APS uses the information in e) above to correctly calculate the overpayment interest at the Federal short term rate on the portion of the IRC 6603 Deposit refunded to the taxpayer.

   Exception: If any portion of an IRC 6603 Deposit is in excess of the disputable tax amount, the amount identified as excess by the ATE is refunded without overpayment interest at the Federal short term rate. See IRM 8.20.6.2.2 (3) below for additional details.

(1) IRC 6601, Interest on Underpayment, Nonpayment, or Extension of Time for Payment, of Tax and IRC 6622, Interest Compounded Daily, provides authority for the accrual of underpayment interest and compound interest. Section 8 of Rev. Proc. 2005-18 provides procedures for the running of interest on an assessed tax liability satisfied by application of a remittance (whether the remittance initially was treated as a payment of tax or a deposit).

(2) When the taxpayer remits a payment (TC 640, TC 670, TC 680, or TC 690) for the full amount of the underlying tax deficiency, penalties (if any), and accrued interest, the account is considered full paid as of the payment received date and underpayment interest ceases to further accrue. However, if the taxpayer remits a payment that is less than the full amount of tax, penalty, and accrued interest owed on the account, additional underpayment interest continues to accrue daily on the unpaid amount until the remaining underpaid balance is full paid, or until the account balance equals $0.00. Transaction Codes for certain payments received after the tax return is filed are listed below:

• TC 640 - Advance Payment of Determined Deficiency of Underreporter Proposal

• TC 640 with a Designated Payment Code (DPC) 12 - IRC 6603 Deposit (see (3) below)

• TC 670 - Subsequent Payment

• TC 680 - Designated Payment of Interest

• TC 690 - Designated Payment of Penalty

(3) Rev. Proc. 2005-18, Deposits Made to Suspend the Running of Interest on Potential Underpayments provides procedures for interest application when an IRC 6603 Deposit is posted to the taxpayer’s account with a TC 640 and a Designated Payment Code (DPC) of 12. Underpayment interest accrual is suspended on the IRC 6603 Deposit amount as of the deposit received date.

(4) The Service retains the IRC 6603 Deposit until the final adjustments are posted to the taxpayer’s account, unless the taxpayer submits a written request for refund of all or a portion of the IRC 6603 Deposit, prior to the resolution of the taxpayer’s case. The written request for the refund of an IRC 6603 Deposit is processable for an amount less than or equal to, the collective amount of tax, penalties and interest in dispute. See IRM 8.20.6.2.2 (5) for more specific guidance on determining the disputable tax* amount. When an IRC 6603 Deposit posted to the taxpayer’s account and does not exceed the disputable tax* amount, the entire amount of the IRC 6603 Deposit is interest bearing and earns overpayment interest at the Federal Short Term rate when refunded. When an IRC 6603 deposit is posted to the taxpayer’s account for an amount greater than the disputable tax* amount, the excess 6603 Deposit is refundable, but is not interest bearing, thus overpayment interest is neither allowed nor paid on the excess amount.

(5) *Rev. Proc. 2005-18 Section 2 Background .03 Section 6603(c) and .04 Section 6603(d)(2) clarifies and defines the term disputable tax. The Appeals Technical Employee or Counsel Attorney in receipt of the taxpayer’s written request for refund of their 6603 Deposit, will verify for APS, the amount of the IRC 6603 Deposit that is attributable to disputable tax. If any portion of the IRC 6603 Deposit is in excess of the disputable tax amount, the excess amount can still be refunded but will not include accrued overpayment interest at the Federal short-term rate. See Rev. Proc. 2005-18 Section 8 Determination of Underpayment Interest for additional information.

(6) Overpayment interest allowed on an IRC 6603 Deposit returned at a taxpayer’s request must be manually computed at the Federal short-term rate and posted via a transaction code (TC) 770.

(7) For additional information on interest application related to payments and 6603 Deposits see:

• IRM 20.2.1-2 Exhibit, Definition of Terms (Cash Bond and IRC 6603 Deposit)

• IRM 20.2.4, IRC 6603 Deposits

• IRM 20.2.4, Identification and Rate of Interest for 6603 Deposits

• IRM 20.2.4, Applying an Excess 6603 Deposit Against Another Liability

• IRM 20.2.4, Request for Return of an IRC 6603 Deposit

• IRM 20.2.4, Designating a Deposit Made Under Rev. Proc. 84-58 (Cash Bond) as a Deposit Under IRC 6603

• IRM 20.2.5, Consideration of Payments for LCU

• IRM 20.2.5, Start Date for LCU Interest Rate

• IRM 20.2.6, Assessment of Interest Accruals

• IRM 20.2.6, Computer Generated Interest Computations

• IRM 20.2.6, Steps to Compute Interest

• IRM 20.2.6, Types of Interest Suspensions

• IRM 20.2.6, Payment Allocation and Reallocation

(1) ACDS must always reflect the location of the case. Anytime a case moves from one location to another or is closed, the action must be updated to reflect the move/closure of the case.

(2) When the status of a case is changed on AIMS, ACDS must also be updated to identify the location of the case. Some items that may need to be updated are:

• ACTION - code to describe action taken

• TODATE - date action started

• FROMDATE - date action ended

• LACTION - code to describe action (locally defined)

• LTODATE - date local action started

• LFROMDATE - date local action ended

(3) See the ACDS Utilities Menu for a list of current status codes.

(1) Any necessary approvals of the Appeals Area Directors or the Chief, Appeals will be secured by the ATM and documented in the file before submitting the case to APS to complete the transfer.

(2) The ATM will enter a CC 30 action through their ATM closing screen which will automatically generate a PEAS unassigned record.

(3) The sending Appeals APS Office will transmit the following items:

• Administrative File

• Form 3210, Document TransmittalDocument Transmittal, original and 1 copy or an E3210 1 print

• ACDS Transfer Form (if used)

(4) Make the following ACDS updates to transfer a case:

1. Select "Special Activities Menu"

2. Select "Closing Code 30 Update – Transfer to another Office" and search for the case

3. Select the TRANSFER AREA (The Area you are transferring the case TO)

4. Select a TRANSFER AOC from the list of valid TRANSFER AOCs for the TRANSFER AREA

5. Select the correct TRANSFER POD, if there is more than one POD for the TRANSFER AOC

6. Select DATECLSD/TODATE = date the case is mailed

7. Select "R" for a Regular Transfer or "W" for a Workload Transfer

8. Select "Submit Update"

Reminder: Do Not Update ACTION, ACDS systemically updates this field with ACTION = TR NNXXPODC (NN=Area, XX=AOC, POD=POD Initials, C=R or W)

(5) When a return is on AIMS and is transferred to another AOC, the sending office will transfer the AIMS database using command code AMSOCA. See IRM 8.20.6.3.5.4, AIMS Control Transfer to Another AOC for additional information.

(6) When the case is received, the receiving office will accept the case from the INBOX by selecting "(Y)es ACCEPT this transfer case," which will systemically enter a FROMDATE in the ACTION "TR NNXXPODC" field. Manually enter the FROMDATE in the LACTION "POD-POD" field.

(7) The receiving office will acknowledge receipt by signing and dating the appropriate boxes and returning a copy of the signed Form 3210 to the transferring Appeals Office.

(8) When APS is required to transfer the case back to the originating office, APS follow procedures in (1) - (5) above to complete the transfer process.

(9) See IRM 8.20.6.3.3, ACDS Closing Code 40 - Re-assignment of a Case Within the Same Area below for a case re-assigned to another ATE within the same area.

(1) Cases are re-assigned to another Appeals Technical Employee (ATE) after approval by the Appeals Team Manager (ATM). The ATE will print out a re-assignment sheet and the ATM will identify the new ATE.

(2) Cases are only re-assigned if both ATEs are in the same area.

(3) Make the following ACDS updates to re-assign a case:

1. Select "Special Activities Menu"

2. Select "Closing Code 40 Update – Reassign to another AO" and search for the case

3. Select the new Appeals Technical Employee. The list is alphabetical by last name

   Note: To determine proper routing, refer to Case Routing instructions for the specific work stream found on the Appeals Web site: .Appeals Only Routing Addresses and Instructions

4. Update the CORWUGRADE to correct the grade of the case, if necessary

5. Select "Submit Update"

6. If you are mailing the case to another POD, return to the "Main Cases Menu" and select "Action Fields Update" and update ACTION = SHIPPED with a TODATE = date mailed and select POD initials of the receiving office.

   Example: "RCH-BAL" means Richmond sent the case to Baltimore for reassignment to another ATE within the same area.

(4) If the case is re-assigned to an Appeals Technical Employee in another office with another Appeals Office Code within the area and the case is on AIMS, transfer the AIMS database using command code AMSOCA. See IRM 8.20.6.3.5.4, AIMS Control Transfer to Another AOC, for additional information.

(5) When the case is received from an Appeals Office within the Field area, update ACDS with a FROMDATE in ACTION SHIPPED and on LACTION POD-POD.

(6) Cases re-assigned to an Appeals Technical Employee outside your area, will be closed as a transfer. See IRM 8.20.6.3.2, ACDS Closing Code 30 - Transfer of a Case Between Areas Within Appeals.

(1) For purposes of accurately tracking the amount of direct time on Appeals cases, Appeals mediators will be assigned as a team member on the mediation case.

(2) The Appeals mediator will request that Account and Processing Support (APS):

1. Input the feature code "TL" to create the Team Leader record for the Appeals Team Case Leader (ATCL) or ATE even if there are no other team members on the case besides the Appeals mediator;

2. Input the feature code "TM" to create the Team Member record for the Appeals mediator; and

3. Input the feature code "MD" on the same case to indicate it is a mediation case. (This feature code will only be used on cases for which the taxpayer requests mediation while the case is in Appeals jurisdiction.)

(1) APS is required to update AIMS and PCS when appropriate to ensure database accuracy.

(2) APS must monitor all IDRS, AIMS, and PCS changes until the respective database reflects the correct data.

(3) Specific update actions, their respective command codes, and applicable IRM references are provided is the subsections below:

• IRM 8.20.6.3.5.1, Address or Name Change - Form 2363

• IRM 8.20.6.3.5.2, AIMS Status and ASED Updates

• IRM 8.20.6.3.5.3, AIMS Data Field Correction

• IRM 8.20.6.3.5.4, AIMS Control Transfer to Another AOC

• IRM 8.20.6.3.5.5, Partnership Control System Update

(1) Appeals uses ACDS to control and update all cases under Appeals and/or Counsel jurisdiction. The ACDS record attachment functionality provides a method by which case related forms, documents, and other pertinent information can be uploaded as an attachment to the respective WUNO.

(2) The following list provides examples of forms, documents, and case related information that may be uploaded as an attachment to the applicable ACDS record when processing an interim action on a paperless case (this list is not all inclusive):

• Form 5402, Appeals Transmittal and Case Memo Pre-ATM Approval (no ACAPDATE)

• Form 5402, Appeals Transmittal and Case Memo Approved with ATM signature (with ACAPDATE)

• Form 4549, Income Tax Examination Changes

• Form 5278, Statement - Income Tax Changes

• Form 3610, Audit Statement

• Signed Waiver(s) of Agreement (Form 870, Form 870-AD, etc...)

• Signed Consents to Extend the Time to Assess Tax (Form 872, Form 872-A, etc...)

• Signed Form 872-T, Notice of Termination of Special Consent to Extend the Time to Assess Tax

• Signed Form 866, Agreement as to Final Determination of Tax Liability (Original Form 866 must be retained for 6 years)

• Signed Form 906, Closing Agreement on Final Determination Covering Specific Matters (Original Form 906 must be retained for 6 years)

• Entered Tax Court Decision

• Entered Tax Court Order

• Signed Form 3870, Request for Adjustment

• Input Completed Form 3870, Request for Adjustment - (includes DLN)

• Input Completed Form 8485, Assessment Adjustment Case Record - (includes DLN)

• Input Completed Form 5403, Appeals Closing Record - (includes DLN)

• Signed Form 8278, Assessment and Abatement of Miscellaneous Penalties

• Input Completed Form 8278, Assessment and Abatement of Miscellaneous Penalties - (includes DLN)

• Form 2859, Request for Quick or Prompt Assessment - (includes DLN)

• Form 2285, Concurrent Determinations of Deficiencies

• 6404(g) Worksheet

• SEQUA Spreadsheet

• Form 5403 Instructions

• Input Completed Form 12249, Adjustment Document - (includes DLN)

• ACT/DMI Interest Computations (review completed only)

(3) Although ACDS programming controls the file name for the attachment, the user can input a file description to differentiate each attachment. For purposes of consistency across Appeals, the following ACDS file descriptions are recommended for APS:

(1) Some notices of deficiency, as well as Employee Plans (EP) and Exempt Organizations (EO) final adverse determination letters, will go to Counsel for concurrence before the letter is issued. The ATE will indicate when Counsel concurrence is required. The administrative file sent to Counsel will contain the following:

• Approved Form 5402 marked for Counsel concurrence and either a completed but unsigned statutory notice or a draft of paragraphs to be included in the statutory notice.

• All returns and documents which were in the case file when it was received in the Appeals Office.

• Copies of all correspondence received or sent while the case was in Appeals.

(2) Form 3210 or an E3210 must be used whenever transmitting taxpayer information.

(3) Enter action code SNDC and the current date (date case sent to Counsel) on the update case screen.

(4) Since Appeals Field Offices are not always co-located with their servicing APS Team, but may be co-located with their servicing Counsel Office, it is not mandatory that cases sent to Counsel for Concurrence be routed through APS; however it is mandatory that ACDS accurately reflect the location of the administrative file.

(5) The Appeals employee who forwards the case to Counsel for SND Concurrence must update ACDS with action code SNDC and the current date (date case sent to Counsel) to document the location of the administrative file.

(6) APS management, or its designated employees, will run the SNDC follow-up list on a monthly basis to determine if Counsel has returned the administrative file. .

(1) When the administrative file is returned through APS with Counsel’s approval, APS will:

1. Review the file to confirm all returns and other documents were returned.

2. Sign and return the acknowledged Form 3210/E3210 as appropriate.

3. Transmit the file to the Appeals Technical Employee (ATE), with Counsels’ concurrence with the unsigned SND, or Counsels’ concurrence of the draft paragraph to be included in the SND.

4. Update ACDS by entering the date the administrative file was returned by Counsel in the FROMDATE on the case update screen.

5. Use Form 3210 or E3210 whenever transmitting taxpayer information.

(2) If the case is returned from Counsel directly to the ATE and not through APS, the ATE must ensure the FROMDATE is entered on ACDS to reflect the return of the case to Appeals. If Counsel returns the case to Appeals through APS, the APS TE will update the FROMDATE on ACDS and forward the case to the ATE for their action.

(1) When the administrative file is returned through APS without Counsel’s approval APS will:

1. Confirm that all returns, documents, and other papers forwarded to Counsel were returned except those intended for Counsel’s retention.

2. Acknowledge the Form 3210/E3210 as appropriate.

3. Update ACDS by entering the date the administrative file was returned by Counsel in the FROMDATE on the update case screen.

4. Transmit the file to the ATE for further consideration.

5. Use a Form 3210 or an E3210 whenever transmitting taxpayer information.

(2) If the case is returned from Counsel directly to the ATE and not through APS, the ATE must ensure the FROMDATE is entered on ACDS to reflect the return of the case to Appeals. If Counsel returns the case to Appeals through APS, the APS TE will update the FROMDATE on ACDS and forward the case to the ATE for their action.

(1) APS mails notices of deficiency and maintains the certified mailing files. In some locations, a centralized or consolidated mail room may perform these functions. Certified mail records and files must be retained for 5 years from the issuance date to comply with Document 12990, "Records Control Schedules," "Schedule 10, Appeals - Administrative Records, Item 6 Mailing Records."

(2) The administrative file submitted by the ATE must include an approved Form 5402, a signed notice of deficiency letter and a correctly prepared "right-sized" envelope with the ATE's correct return address.

(3) If the SND is for a separate individual return, a window envelope may be used. However, use the right sized envelope to avoid disclosing any information other than the name and address.

(4) If the SND is for a joint return, each spouse must receive a notice in an envelope addressed only to them.

(5) APS will:

1. Verify the address included on the notice prepared by the ATE and approved by the ATM matches the INOLES or ENMOD print included in the administrative file submitted by the ATE

2. Compare the name and address of the taxpayer(s) shown on the SND with the name and address shown on the envelope(s) to ensure they are the same

3. Contact the ATE if there is a discrepancy to resolve prior to issuing the SND

4. Ensure there are a sufficient number of copies of the SND and identify them for distribution to the persons designated to receive them

(6) APS must also verify that the SND, and any agreement form all have the same:

• Taxpayer(s) name(s)

• TIN

• Tax period(s)

• Deficiency amount

• Penalty amount(s)

(7) ACDS will calculate the "Last Day to Petition Tax Court" and populate the SNEXPDATE field after APS enters the SNTYPE and SNDATE fields and clicks "Submit." APS must enter the SNEXPDATE on the SND letter. IRM Exhibit 8.20.6-1, Calculating the Default Date provides additional information.

1. 90 days are added to the date the SND is issued, if the taxpayer's address is within the United States.

2. 150 days are added to the date the SND is issued, if the taxpayer's address is outside the United States or the Service has knowledge that the taxpayer is out of the country when the notice of deficiency is issued.

3. Complete United States Postal Service (USPS) Form 3800, Certified Mail Receipt.

4. Notate the certified mail number on the original letter and all additional copies.

(8) Duplicate original notices are not required if both spouses are at the same address.

• One spouse will receive the original notice

• The other spouse will receive a copy of the same notice

• Both notices (original and copy) must be sent via certified mail

• Each SND (original and copy) will have its own certified mail receipt number

(9) Duplicate original notices are required if each spouse has a different address. Each notice sent to the joint taxpayer’s at a different address must each have its own certified mail receipt number.

(10) APS will date the SND and all copies. The SND (both the original and the copy) MUST be mailed on this date.

(11) Unless the Form 2848, Power of Attorney and Declaration of Representative or Form 8821, Tax Information Authorization mailing instructions state otherwise, the taxpayer receives the original letter (certified/registered mail) and the representative receives a copy (regular mail). For notices on an MFT 30 Married Filing Joint account, see IRM 8.20.6.8.4 (8) and IRM 8.20.6.8.4 (9) above.

(12) When the Form 2848, or Form 8821 includes specific mailing instructions, the ATE and APS are required to adhere to the specified mailing instructions for the respective taxpayer(s) and respective tax period(s). Several examples of alternate mailing instructions that may be authorized by the taxpayer via the Form 2848 or Form 8821 are:

• Send all original documents to the representative (use certified/registered mail) and a copy to the taxpayer (use regular mail). The letter will be addressed to the taxpayer in care of the representative.

• Send a copy of the documents to a second representative.

• Do NOT send a copy to the representative.

(13) The original notice must be mailed by certified or registered mail regardless of who is designated to receive the original notice.

• IRM 8.20.6.4, Certified and Registered Mail Procedures provides additional details and guidance for determining address categories.

• Use Certified Mail when the address is within the United States, U.S. Territories and Possessions, an APO, FPO, DPO, the United Nations, or a Freely Associated State (see IRM 8.20.6.4 (5)).

• Use Registered Mail when the address is not authorized to receiving certified mail, and thus categorized as foreign or international (see IRM 8.20.6.4 (6)).

(14) Insert the following items in the envelope containing the original SND:

1. Accompanying statements and schedules as provided by the ATE within the SND package

Reminder: The certified/registered mail number must be included on the original notice and all copies.

2. Return envelope for the taxpayer to return their signed agreement

(15) Insert the following items in the envelope containing a copy of the SND:

1. Copy of the accompanying statements and schedules as provided by the ATE within the SND package

Reminder: The certified/registered mail number must be included on the original notice and all copies.

2. Return envelope for the joint taxpayer at the same address or for the taxpayer’s representative to return their signed agreement

(16) Enter the taxpayer’s name, mailing address as it appears on the envelope (in care of representative, if appropriate), and mailing date in the mailing record.

(17) Distribute the remaining copies of the SND package as follows:

• Fasten one copy to the administrative file

• Forward one copy to Counsel if their prior concurrence was necessary

• Use a Form 3210 or E3210 whenever transmitting taxpayer information to an IRS function, Appeals personnel and Counsel personnel

• Place the administrative file in the "Letter Issued-Awaiting Taxpayer’s Action" file

(1) Once an SND is issued by Appeals, update ACDS.

(2) An entry is required in SNTYPE on all Appeals cases where an SND or a notice of determination (NOD) letter has been issued. Select the appropriate category from the following list:

• 030A - Appeals-issued notice of determination

• 090A - Appeals-issued notice of deficiency, CDP notice of determination with an innocent spouse

• 150A - Appeals-issued notice of deficiency to taxpayer residing outside the United States

• 180A - Appeals-issued notice of final determination of partial or full disallowance of an abatement of interest claim, CDP notice of determination with an interest abatement claim

• FPAA - TEFRA (Appeals-issued FPAA)

(3) Update ACDS as follows:

• SNDATE - enter the date the letter is mailed

• SNEXPDATE - this date is computer generated

• SND - enter "Y" in the update returns screen for each tax period covered by the SND

(1) Occasionally, the mail service is unable to deliver an SND or NOD, either because the taxpayer cannot be located (undeliverable) or because the taxpayer will not accept delivery (unclaimed). In these circumstances, the Post Office returns the undeliverable/unclaimed notice to the Appeals office according to the Return Address on the envelope.

(2) The following paragraphs provide instructions for the following UND/UNC types:

• Statutory Notice of Deficiency see IRM 8.20.6.8.6 (3) and IRM 8.20.6.8.6 (4)

• Notice of Determination (CDP and INNSP) see IRM 8.20.6.8.6 (5)

• Notice of Claim Disallowance see IRM 8.20.6.8.6 (6)

(3) Upon receipt of the undeliverable or unclaimed SND in the Appeals Office, the recipient* (see Note below) must provide the unopened SND to the appropriate ATE for their action and decision. When the ATE’s initials are not provided on the envelope’s return address, the recipient will research ACDS to identify the appropriate ATE.

(4) Undeliverable or Unclaimed Statutory Notice of Deficiency (SND) Procedures:

(5) Undeliverable or Unclaimed Notice of Determination (NOD) Procedures for CDP or INNSP:

• When the undeliverable/unclaimed (UND/UNC) CDP or INNSP NOD is received in Appeals, there is no additional action needed by the ATE. The recipient* (as defined in IRM 8.20.6.8.6 (3) above), will forward the unopened UND/UNC NOD to APS for association with the administrative file.

• In offices where APS is responsible for receiving the Appeals Office mail, APS will associate the UND/UNC NOD with the administrative file.

(6) Undeliverable or Unclaimed Notice of Interest Abatement Claim Disallowance procedures differ depending on if the Notice of Interest Abatement Claim Disallowance was Undeliverable, or if it was Unclaimed:

• Upon receipt of the undeliverable "Notice of Interest Abatement Claim Disallowance" in the Appeals Office, the recipient* (as defined in IRM 8.20.6.8.6 (3) above), must provide the unopened Interest Abatement Claim NOD to the appropriate ATE for their action and decision. When the ATE’s initials are not provided on the envelope’s return address, the recipient* will use ACDS to identify the ATE for their decision/action. The ATE will decide if another letter should be mailed to a different address or not. The ATE will forward the undeliverable Interest Abatement Claim NOD to APS for association with the suspended administrative file.

• Upon receipt of the unclaimed "Notice of Interest Abatement Claim Disallowance" in the Appeals office, the Recipient* (as defined in IRM 8.20.6.8.6 (3) above), will forward the unopened Interest Abatement Claim NOD to APS for association with the suspended administrative file. The ATE does not need to take any action on an unclaimed NOD.

(1) If the Appeals Team Manager (ATM) or Appeals Area Director decides to grant further consideration of a case in the suspense period, reactivate the case. When notified the case is being reconsidered APS will:

1. Prepare a "chargeout" with the name of the case, the ATE, and the date the action is taken

2. Place the "chargeout" in the "Letter Issued-Awaiting Taxpayer’s Action File" as a placeholder for the administrative file

3. Remove the administrative file from suspense and transmit the file to the ATE

4. Use a Form 3210 or an E3210 whenever transmitting taxpayer information

5. Indicate in the Note section of ACDS that the case has been returned to the ATE for reconsideration

(2) If no agreement is reached after consideration or reconsideration in the suspense period the ATE will ensure there is an approved informal memorandum and a signed closing letter for the unagreed case and return the case to APS. Upon receipt of the approved informal memorandum and signed closing letter for the unagreed case, APS will:

1. Date the memorandum

2. Date and mail the closing letter

3. Indicate in the Note section of ACDS that the case has been returned to APS for SND Suspense

4. File the original memorandum and copy of the closing letter in the administrative file

5. Return the administrative file to the "Letter Issued-Awaiting Taxpayer’s Action File" and remove the "chargeout"

(1) If the taxpayer files a petition with the Tax Court:

• Verify that both taxpayers signed the petition for an SND issued to married filing joint taxpayers.

• If both taxpayers are not included on the petition, see IRM 8.20.6.8.10.1, Appeals-Issued SND Petitioning/Non-Petitioning Spouse.

• Verify that all tax periods are included for a petition filed in response to a multi-year SND.

• If all SND tax periods are not included in the petition, see IRM 8.20.6.8.11, Non-Petitioned Year in an Appeals-Issued Statutory Notice of Deficiency for special handling and processing procedures.

• Remove the administrative file from "Letter Issued-Awaiting Taxpayers’ Action File."

(2) Update AIMS to status 82. AIMS automatically generates docketed alpha code "QQ" using the MMQQYYYY format (positions 15–20) when Appeals updates the AIMS status from 80 to 82. See IRM 8.20.6.3.5.2, AIMS Status and ASED Updates for additional information.

(3) Ensure a TC 520 cc 72 posts to all petitioned periods.

(4) Update the ACDS Record via the ACDS Special Activities> Closing Code 42/43 Update as follows:

1. DKTNO = docket number

2. CLOSINGCD = 43

3. DATECLSD = date case sent to Counsel

4. ACTION = DCJUR

5. TODATE = date case sent to Counsel

6. DC Office = Counsel Office code

7. ATTORNEY = name of attorney

8. SNDATE = do not delete entry

9. STATDATE = blank for each tax period included on the petition

10. Statute CODE = DOCKT for each tax period identified on the petition

11. DIMS TE will close the DIMS record once they notify the appropriate APS office of the petitioned SND

(5) APS prepares the Form 14758, Appeals/Counsel Routing Coversheet, printed on orange paper, attaches it to the administrative file and forwards the administrative file to Counsel for Answer.

(6) Use a Form 3210, or an E3210 whenever transmitting taxpayer information.

(7) Counsel will retain the administrative file after answer for settlement or trial preparation since Appeals already attempted settlement and issued an SND when an agreement could not be reached.

(8) If Counsel answers the petition and returns the administrative file to Appeals for a second attempt at settlement, input Closing Code 42 on ACDS to put the case/record back in Part 2 of the assigned employee’s inventory.

(9) When a non-docketed non-TEFRA flow through entity is related to a docketed case, APS will also enter the DKTNO of the related case followed by the letter N in the DKTNO field.

(1) After an SND is issued on a case, disposition occurs in one of the following ways:

(1) APS is responsible for issuing, monitoring and controlling "Appeals-issued" SNDs.

(2) APS is also responsible for ensuring "Compliance-issued" NPS SNDs are properly controlled by the originating function with the following exception:

(3) When an SND is issued on a MFT 30 Married Filing Joint (MFJ) account, the Primary TP and Secondary TP are treated individually for the purpose of:

• Legally signing a waiver of agreement, or

• Legally petitioning the United States Tax Court (USTC).

(4) When the resolution of the "Appeals-Issued" SND on a MFJ MFT 30 Account is split due to one of the scenarios listed below, APS must take additional actions to ensure protection of the ASED for both taxpayers:

1. Single Agreement - Waiver of Agreement received from one spouse but not the other (Use TC 971 AC 105 to establish MFT 31)

2. Single Petition - One Petitioning Spouse/One Non-Petitioning Spouse (Use TC 971 AC 103 to establish MFT 31)

3. Separate Petitions - Each Spouse files a separate petition (Each Spouse has a docket number associate both cases for Counsel to consider together - no split account needed)

4. Separate Agreements - Waiver of Agreement received from each spouse but with different agreement dates (Use TC 971 AC 105 to establish MFT 31)

5. Deceased Spouse - Surviving Spouse has Fiduciary authority (via Form 56) to represent the deceased spouse (agreed, defaulted, petition processed on MFT 30 MFJ acct.)

6. Deceased Spouse - Neither the Surviving Spouse, nor a Fiduciary has authority to represent the deceased (TC 971 AC 105 Agreed/Unagreed or TC 971 AC 103 PS/NPS)

7. Deceased Spouse - Fiduciary, not the surviving spouse, has legal authority to represent the deceased spouse via Form 56, Notice Concerning Fiduciary Relationship (Use MFT 30 for account disposition if Surviving Spouse and Fiduciary have same response to SND. Use MFT 31 procedures if they take separate actions.)

(5) Since the Appeals-issued SNDs on a MFJ account may require two different interim actions, one for each spouse, and then ultimately require further adjustments to each spouse’s account and/or the Joint MFT 30 account, both the interim action(s) and the closing action(s) are staged in this section for clarity and consistency.

(6) The table below provides guidance for the additional interim/closing actions required for the various instances identified in (3) a) - g) above:

(7) When one spouse agrees and the other spouse does not sign the same agreement, use TC 971 AC 105 to create an MFT 31 account for the agreeing spouse and post their assessment prior to their ASED using AMCLSS. Associate the MFT 31 agreed assessment documentation with the SND file for continued suspense. The remaining unagreed spouse can later:

• Submit a separate agreement (see a below), or

• Take no action and default (see b below), or

• File a petition for the SND (the agreed spouse’s assessment documentation remains associated with the petitioned administrative file and the case is transmitted to Counsel for Answer. See IRM 8.20.6.8.10.1, Appeals-Issued SND - Petitioning/Non-Petitioning Spouse for instructions.

1. A separate agreement on a later date requires the SND be removed from suspense and submitted for closing action.

   Caution: The spouse who submitted the second agreement must have an MFT 31 account created using TC 971 AC 105 and a TC 971 AC 110 must be posted for each MFT 31 account to allow for systemic mirroring of payments to ensure accurate balance due notices are provided to each respective spouse.

   Reminder: Taxpayers on a MFJ MFT 30 account need only pay the tax, penalty and interest amount once. For this reason, payments submitted by one spouse for a joint liability must be mirrored to the other spouse’s MFT 31 account. If the difference in agreement dates results in one spouse being liable for a larger interest amount, that spouse’s MFT 31 notices will reflect the correct interest amount owed by them based on the separate action they took when submitting their signed agreement because underpayment interest application is statutory under IRC 6601.

   Note: See IRM 21.6.8, Exam/Appeals/AUR MFT 31 Accounts (1) when both taxpayer’s are responsible for the same debt and also see IRM 21.6.8, DUPASMT Transcripts for additional information to consider and act upon when an MFT 31 account is not fully paid.

2. If the unagreed spouse defaults on a later date and the SND is removed from suspense and submitted for closing action. The defaulted SND must be assessed against the unagreed spouse’s MFT 31 account. Use TC 971 AC 105 to create the MFT 31 account for the unagreed (defaulted) spouse and also post a TC 971 AC 110 to ensure payments submitted by one spouse will be systemically mirrored to the other spouse’s MFT 31 account. Since the unagreed (defaulted) spouse’s MFT 31 assessment will not contain an Agreement Date, the IRC 6601(c) underpayment interest suspension does not apply for this taxpayer. Once all payments and credits are applied and/or mirrored to each account, the MFT 31 account processed as a default may have a remaining outstanding balance for which the unagreed (defaulted) spouse is solely liable. Underpayment interest application is statutory under IRC 6601.

(8) APS TE's must document their actions within their PEAS Case Activity Record (CAR) and effectively use PEAS Suspense and PEAS Follow-Up tools to support efficiency and accuracy.

(9) For additional guidance on Split Spousal Assessments see:

• IRM 3.17.46, Non-Petitioning and Petitioning Spouse Accounts

• IRM 21.6.8, Individual Tax Returns, Split Spousal Assessments (MFT 31 / MFT 65)

(1) Oftentimes, an SND is issued for multiple tax periods. Occasionally, one or more of the tax periods listed in the SND may be omitted from the petition (intentionally or unintentionally). These cases are considered potential "Non-Petitioned Year," (NPY) cases until Counsel confirms the intention of the taxpayer.

(2) When one or more tax periods are missing from the petition, confirm with Counsel, before taking action to separate the NPY tax return(s) from the petitioned tax return(s) and original administrative file.

(3) If Counsel confirms that the taxpayer intended to include all SND tax periods on their petition, or provided a perfected petition to include all tax periods, then remove the case from suspense and use normal procedures to update ACDS and AIMS and transmit the file to Counsel.

(4) If Counsel verifies that the petitioner intentionally omitted one or more tax periods, and the taxpayer will not submit a "perfected petition" to include all of the tax periods, take the following actions:

• Separate the non-petitioned year(s) tax return(s) and create an SND file for continued suspense awaiting agreement or default

• Confirm with Counsel whether they do or do not want the NPY(s) associated with the docketed administrative file once they are closed, and document the SND suspended file accordingly so appropriate action is taken upon their removal from SND suspense

• Update the ACDS Returns Level for each Petitioned tax period: STATDATE = Blank and Statute CODE = "DOCKT." Do not update the NPY’s until they are closed from SND suspense.

ACDS Return Level Updates for Petitioned Tax Period(s)

ACDS Code	ACDS Entry
STATDATE	Blank
Statute CODE	DOCKT

• Update AIMS Controls to Status 82 for the petitioned year(s) ONLY via CC: AMSTUB

• In ACDS NOTE field enter "Non-Petitioned Year(s) = YYYYMM in SND Suspense" (list each NPY)

• Print the updated ACDS record and affix the print to the original administrative file to alert Counsel of the NPY(s)

• Identify the NPY(s) on the Form 14758, Appeals/Counsel Routing Coversheet

• Follow normal procedures to transmit the docketed years and the original administrative file to Counsel using Form 3210 or an E3210

• Do not update the Closing Code for the ACDS record to 43 since the Non-petitioned year(s) are still in Appeals jurisdiction and their ASED(s), which are not controlled by the petition, must continue to be monitored by APS until an agreement is received for the NPY(s) or the SND defaults.

(5) When Counsel does want the (defaulted or agreed) NPY(s) for association with the docketed administrative file after they are assessed and closed on AIMS, APS will take the following steps upon agreement or default:

1. Process the agreed or defaulted tax period(s) assessment using CC: AMCLSA.

2. Input TC 971 AC 057 on each assessed tax period to identify the location of the workpapers (latest docketed year).

3. Make a copy of the completed Form 5403(s) and page one of the tax return(s).

4. Affix a copy of the Form 5403 to each return as appropriate.

5. Prepare Form 4251, Return Charge-Out to recharge the tax return(s) to the applicable Counsel Attorney. See IRM 25.5.1, Recharging and Re-fling Documents for additional guidance.

6. Prepare the "Source Document Package" for each tax period: (see table below)

Source Document Package
Original Form 5403
Form 4251, Return Charge-Out
Copy of the first page of the tax return

7. Use Form 3210 or an E3210 to transmit the "Source Document Package" to the appropriate Campus Files Function for association with the Form 5147, IDRS Transaction Record.

8. Update the AIMS Indicator to E for the assessed tax period(s) ONLY to avoid an ACDS and AIMS mismatch on the AMATCH Report during the timeframe the ACDS Docketed WUNO remains open.

9. Update the ACDS Returns Level statute date and statute code for the assessed tax period(s) ONLY:

ACDS Return Level Update for Assessed Non-Petitioned Tax Period(s) Before Assessment Posts

ACDS Code	ACDS Entry
STATDATE	Update to the numeric ASED MM-DD-YYYY
Statute CODE	Leave Blank

10. Update the ACDS Record: (see table below)

ACDS Record Update When the Non-Petitioned Tax Period(s) Adjustments are Input

ACDS Action	ACDS Entry
Update ACDS NOTE field	"NPY(s) assessed agreed/defaulted 23C date = MM-DD-YYYY"
Use ACDS Closing Code 43	Updates the ACDS record to Counsel Jurisdiction ACTION = DOCKT

11. Use Form 3210 or an E3210 to transmit the re-charged tax return(s) to the Counsel Attorney for association of the NPY returns with the Docketed administrative file.

12. Document the PEAS CAR as appropriate.

13. Suspense and monitor on PEAS until the adjustments are fully posted.

14. After assessment fully posts, update ACDS STATDATE and Statute CODE per the table below and close PEAS:

ACDS Return Level Update for Assessed Non-Petitioned Tax Period(s) After Assessment Posts

ACDS Code	ACDS Entry
STATDATE	Update to Blank
Statute CODE	Update to ASESD

(6) When Counsel does not want the (defaulted or agreed) NPY(s) for association with the docketed administrative file after they are assessed and closed on AIMS, APS will take the following steps upon agreement or default:

1. Process the agreed or defaulted tax period(s) assessment using CC: AMCLSA

2. Input TC 971 AC 057 on each assessed tax period to identify the location of the workpapers (latest docketed year)

3. Transmit the source documents and original returns to the appropriate Campus Files Function for association with the Form 5147, IDRS Transaction Record using Form 3210 or an E3210 per normal closing procedures

4. Update the AIMS Indicator to E for the assessed tax period(s) ONLY to avoid an ACDS and AIMS mismatch on the AMATCH Report.

5. Update ACDS Returns Level for the Non-Petitioned tax period(s) ONLY, following procedures in IRM 8.20.6.8.11 (5) list item i) before the assessment is fully posted.

6. Update the ACDS Record: (see table below)

ACDS Record Update When The Non-Petitioned Tax Period(s) Adjustments are Input

ACDS Action	ACDS Entry
Update ACDS NOTE field	"NPY(s) assessed agreed/defaulted 23C date = MM-DD-YYYY"
Use ACDS Closing Code 43	Updates the ACDS record to Counsel Jurisdiction ACTION = DOCKT

7. Document the PEAS CAR as appropriate

8. Suspense and monitor on PEAS until the adjustments are fully posted then update ACDS STATDATE and Statute CODE following procedures in IRM 8.20.6.8.11 (6) list item n) after the assessment is fully posted and close PEAS.

(1) If the taxpayer(s) does not sign and submit the waiver (Agreement), or does not file a timely petition with the tax court, the case is removed from SND Suspense on the Default Date.

(2) The Default Date is calculated by adding 30 days to the last day to file a petition date. For taxpayer's with a U.S. Address, the Default Date is 90+30=120 days from the SND Issuance Date. For taxpayer's with an address outside of the U.S., the Default Date is 150 + 30 =180 days from the SND Issuance Date.

(3) Check the Statutory Notice Report for any case where Appeals issued the statutory notice of deficiency. Also check for any case on which Appeals accepted jurisdiction from Compliance during the 90-day period.

(4) Refer to IRM 8.20.7, Closing the Case on ACDS for ACDS closing procedures.

(1) In the event Appeals rescinds an "Appeals-issued" SND per Form 8626, Agreement to Rescind Notice of Deficiency, update ACDS as follows:

1. Remove 090A or 150A from SNTYPE field

2. Remove date from SNDATE field

3. Enter "SND rescinded (date signed by Commissioner)" in NOTE field

4. Change Y to N in SND field

(2) If Form 872 or Form 872-A was also completed in conjunction with Form 8626, Agreement to Rescind Notice of Deficiency update the STATDATE or statute CODE as appropriate on both ACDS and AIMS.

(1) Upon receipt of the written verification and/or approval of the ATE/ATM/Counsel Attorney to authorize the abatement of a premature assessment, the APS Tax Examiner will analyze the taxpayer’s account(s) and take the appropriate action(s) to correct AIMS, IDRS, and ACDS.

(2) Follow the steps below to process the abatement of the default assessment:

1. Verify the TC 520 cc 72 is "-W" Litigation Freeze is posted to each applicable tax module.

2. Prepare and input account adjustment document(s) to reverse the premature default assessment.

3. See IRM 8.20.6.9.1 (3) if AIMS controls are not yet re-established.

4. See IRM 8.20.6.9.1 (4) if AIMS controls are re-established.

5. Use Hold Code 4 on the adjustment document to suppress the notice to the taxpayer and also hold any credit remaining on the account.

6. Use the appropriate Priority Code to bypass any unpostable condition(s).

7. Monitor the account for posting of abatement transaction(s).

8. Notify Counsel when the abatement has posted and forward the account adjustment documents for association with the docketed case file.

9. Document actions taken in the PEAS CAR and close PEAS.

(3) If AIMS controls are closed and have not yet been fully re-established (TC 424 posted but no 420), prepare Form 8485, Assessment Adjustment Case Record to abate the premature assessment.

• Enter Priority Code 1 (see (4) Reminder below).

• Use Hold Code 4.

• Annotate in the Remarks section: "Priority abatement needed - timely filed petition received MM-DD-YYYY."

• Depending on the day of the IDRS cycle on which the non-AIMS adjustment is input, full AIMS controls may or may not post prior to the adjustments transactions.

• For additional guidance on processing CC: ADJ54 adjustments see IRM 8.20.6.19.3, Partial Interim Assessment/Abatement Non-AIMS CC: REQ54/ADJ54.

(4) If AIMS controls have already been re-established (TC 420 posted), prepare Form 5403, Appeals Closing Record to abate the premature assessment via CC: AMCLSF.

• Enter the applicable Priority Code as needed to avoid an unpostable.

• Use Hold Code 4 to hold both the notice and any credit posted to the account.

• Annotate in the Remarks section: "Priority abatement needed - timely filed petition received MM-DD-YYYY."

• For additional guidance on processing CC: AMCLSF adjustments see IRM 8.20.6.19.2, Partial Interim Assessment/Abatement AIMS CC: AMCLSF.

(5) Links to references for Unpostables (UPC) caused when an input transaction is within $10.00 of a previously posted transaction are provided below:

• IMF UPC 158 Reason Code 1 IRM 3.12.179, UPC 158 Estimated Penalty/Duplicate Assessments/Abatements

• BMF UPC 328 Reason Code 2 IRM 3.12.279, UPC 328 Potential Duplicate Transaction

• Document 6209 Section 8B - Master File Codes 2

(1) Upon receipt of the administrative file from a Compliance function, where only one spouse is determined to have petitioned the USTC, APS will review the file for the following items and when TXMODA or AMDISA is not included, performs IDRS research to secure a current TXMODA and AMDISA:

• Review the TXMODA to verify that the submitting function has input TC 971 AC 103 on the MFT 30 account for the NPS TIN.

• Review the AMDISA to verify that the submitting function has requested AIMS controls for the MFT 30 account, and updated AIMS controls to Appeals Status 81.

• Verify the file includes the original return, or acceptable documentation in the absence of an original return.

• Verify that CC: ESTAB has been input by the originating function or take action to input CC: ESTAB if the administrative file has been prematurely released from SND suspense.

(2) When a Statutory Notice of Deficiency is issued by a Compliance Function (not Appeals), on an MFT 30 Married Filing Joint (MFJ) account, and only one of the spouses files a petition with the United States Tax Court (USTC), the originating function must prepare a dummy file for the Non-Petitioning Spouse (NPS) for continued suspense under their jurisdiction.

(3) The originating function retains jurisdiction of the NPS SND until one of the following occurs for the NPS SND remaining in their suspense:

• Non-Petitioning Spouse files a separate petition to the United States Tax Court (USTC)

• Non-Petitioning Spouse submits a signed waiver of agreement for the SND

• Non-Petitioning Spouse SND defaults

(4) If the NPS files a separate Petition to the USTC, the Compliance function will follow their existing procedures to transmit the NPS Dummy file to Appeals for assignment to the Counsel Attorney who has jurisdiction over the Petitioning Spouse’s docketed case.

(5) If the NPS does not file a separate Petition, upon conclusion of the NPS SND suspense, either by signed waiver, or default, the Compliance function with jurisdiction for the NPS SND, will process the NPS MFT 31 assessment and forward the NPS assessment verification along with the NPS dummy file to APS.

(6) Upon receipt of the NPS Dummy file and NPS assessment verification, APS will update ACDS per the instructions provided in IRM 8.20.6.8.10.4, ACDS and AIMS Updates on Non-Petitioning Spouse SND Cases and timely transmit the NPS Dummy file to Counsel for association with the Petitioning Spouse’s docketed case under Counsel Jurisdiction.

(7) Although Appeals has no jurisdictional authority over the NPS assessment or NPS Assessment Statute Expiration Date (ASED) on a Compliance-Issued SND, the APS PTM can authorize an MFT 31 protective assessment against the NPS for the tax and penalty amount identified on the "Compliance-Issued" SND under the following circumstances:

1. An encrypted email is sent by the APS TE (always include your PTM in the email Cc line) to the originating Compliance SND function manager to request written verification that the Compliance function is controlling the ASED for the NPS - and no reply is received within 5 business days;

2. The Counsel Attorney with jurisdiction for the Petitioning Spouse verifies in writing that the petition does not cover the NPS; and

3. The ASED for the NPS assessment is within 60 days of expiring thus justifying the protective assessment action by Appeals.

(8) Upon written approval from the PTM for APS to make a protective assessment to the NPS MFT 31 account, APS will follow the procedures in IRM 8.20.6.8.10.1, Appeals-Issued SND Petitioning/Non-Petitioning Spouse for processing the NPS MFT 31 protective assessment on the Compliance-issued SND.

(9) APS will not initiate a MFT 31 protective assessment against the NPS for a "Compliance-issued" SND under the following circumstances:

• Compliance has already established the MFT 31 account and the SND assessment is pending, or

• Compliance verifies in writing that they are controlling the ASED for the NPS and will forward the assessment verification to Appeals with the dummy file, or

• Counsel confirms that the spouse is included on the petition.

(10) If one or more tax periods included on a "Compliance-Issued" SND are not included on the petition, APS must take the appropriate actions. See the table below for applicable decision points:If And Then Chart for Petitioned/Non-Petitioned Tax Period(s) in a Multiple Year "Compliance-Issued SND"

(11) Using the guidelines provided in IRM 8.20.6.3.6, ACDS Attachments, APS TE's must associate documentation of their follow-up actions taken per (10) above with the ACDS WUNO for the petitioned tax period(s). If the APS TE also has an open PEAS record for the respective WUNO, they must also document their actions within their PEAS Case Activity Record (CAR).

(1) The Independent Office of Appeals, in partnership with the Office of Chief Counsel, developed the EZ Close process to streamline closing Appeals-settled docketed cases, both S and Regular, by transmitting electronic documents instead of case files for qualifying cases. On all Appeals-settled docketed cases where the Appeals office mails decision documents to the petitioner or counsel of record, all Appeals offices will now send Letter 5534, Decision Transmittal, to transmit those decision documents.

(2) Docketed cases settled using the Docketed EZ Closing process will include Feature Code EZ and the following attachments to ACDS:

• Decision Document (with waiver language)

• Undated Letter 5534

• Schedule of Adjustments and ACM (if applicable)

• Form 5402 and Form 5403 Instructions

• Settlement Computations

• Other files as applicable (May/Sequa worksheet; 6404(g) worksheet; Form(s) 2285)

(3) APS will:

• Receive case and acknowledge Form 3210.

• Update ACDS with STIPFF action and verify that the ATE entered Feature Code EZ.

Note: If the Feature Code EZ is not already entered, update the Feature Code to EZ using the validation tracking system (VTS) and identify the update as an Error Correction.

• Update ACDS with LACTION = "ECLOSE"

(4) Once all actions in (3) above are taken, APS will place the case in STIPFF suspense until:

• Notified that case must be sent to Counsel for trial preparation

• Notified that the decision is entered and attached to the ACDS record

Reminder: Counsel will not upload decisions that do not contain a waiver paragraph until the 100th day after the entered decision date because without the waiver paragraph, either the petitioner or the Service may file an appeal of the Tax Court Decision. The tax examiner will not include an agreement date on the assessment document when the entered decision does not contain a waiver paragraph. Due to the additional Counsel suspense time, the ASED may be within 60 days. Always verify the ASED and take all necessary processing actions to timely process the assessment.

(5) When a docketed "ECLOSE" case is ready for APS closing action, Counsel will "Green Light" the closing by uploading the following attachments to ACDS:

• Entered Decision Document

• Form 1734, Transmittal Memorandum (or equivalent)

• Update TLCATS with ACD, indicating documents are loaded to ACDS.

(6) APS management, or its designated employees, monitor and generate the following reports: :

• Work STIPFF report monthly. If a case is overage, contact Counsel to advise that if they want the administrative file for Trial Preparation, they should send their request to the APS Support Request Intake Site.

• Generate AdHoc BOE STIPFF Report and upload to the Appeals-Counsel SharePoint weekly (or as otherwise directed).

• Receive the TLCATS-CAAB report (a list of entered decisions) from Counsel weekly and input DECENT/ORDENT action.

• Monitor ACDS DECENT/ORDENT reports.

• Work DECENT/ORDENT reports monthly to identify cases with Feature Code "EZ" that are ready for closure with closing documents uploaded to ACDS. Pull and assign on PEAS for final closure.

(7) The APS Processing Team Manager (PTM) will:

• Work the STIPFF Report monthly to validate against cases in the STIPFF drawer. If notified to send the administrative file to Counsel for trial preparation, follow IRM 8.20.6.10.1.1 below.

• Upon notification that case is ready for closure, and after Counsel uploads the entered Decision Document and Form 1734 (or equivalent) to ACDS, pull the case from STIPFF drawer.

• Assign on PEAS for closure.

(8) The APS Tax Examiner (TE) will:

• Print entered decision document and Form 1734 (or equivalent) from ACDS.

• Verify that the entered decision includes the waiver paragraph. If not, verify that at least 100 days have elapsed from the decision entered date.

• Process account adjustments in accordance with the entered decision.

• Close the case using appropriate closing procedures. See IRM 8.20.7.24, Docketed Cases.

(1) On occasion when a case is in Counsel Jurisdiction based on a Tax Court petition challenging a Substitute for Return (SFR), the petitioning taxpayer(s) may submit a delinquent return to the Counsel Attorney for consideration. This may occur to allow for a change in filing status per IRC 6013(b)(3)(A)(i) or (iii).

(2) Counsel will determine whether to accept the return as a basis for settlement and send to Appeals for interim adjustment prior to entering a decision document.

(3) When Counsel accepts the return, they will take the following actions:

1. Verify that the delinquent return includes the correct name(s) and TIN(s) for the taxpayer(s).

2. Verify that the delinquent return is signed and dated by the taxpayer(s).

3. If the amount to be assessed differs from the amount or type of tax shown on the return, then for any joint taxpayer who is not also a party to the Tax Court Case, Counsel will secure signed Form 870-AD, Offer to Waive Restrictions on Assessment and Collection of Tax Deficiency and to Accept Overassessment, to reflect the specified amount. This might occur in rare situations when the petitioner’s decision document increases the deficiency beyond the return amount or includes penalties other than automatically calculated penalties (such as Failure to File, Failure to Pay, etc.). Counsel will determine if Form 870-AD is required.

4. Prepare the most recent version of Form 3608, Counsel Request For Tax Computation Work.

5. Upload the return, Form 3608, Form 870-AD (if applicable) and Statutory Notice of Deficiency (if not already attached to the petition) to the Appeals Case Support Intake list.

(4) For a Potential Overpayment delinquent return, the attorney will identify the Refund Statute Expiration Date (RSED) on the Form 3608. If the RSED is barred for refund or offset, the overpayment must be moved to the Excess Collections File and cannot be refunded to the taxpayer(s), or offset to another tax period.

(5) Upon receipt of the request from the APS TA to process the Delinquent Return using TCS computations and Form 5403 Instructions, the Processing Team Manager (PTM) assigns the interim action to an APS TE on PEAS.

(6) Upon receiving the PEAS assignment, the APS TE will access ACDS attachments listed below:

• Form 3608

• Form 5403 Instructions

• Delinquent Return (APS will associate this with Form 5403 CC: AMCLSF adjustment source document)

• Signed Form 870-AD (if applicable) to identify the "waiver date" for authority to assess the original tax for the joint taxpayers on their MFT 30 Married Filing Joint account when only one taxpayer petitioned the USTC.

(7) Using information provided in ACDS attachments, APS will:

• Verify the Assessment Statute Expiration Date (ASED) and/or Refund Statute Expiration Date (RSED).

• Perform AIMS, IDRS, and Entity research to verify the current status of the taxpayer’s account and database information.

• Input all Entity Changes as appropriate using IDRS CC: INCHG, or the IAT Address Tool.

• Update ACDSto reflect the correct Name and Address (contact your PTM and/or Counsel Attorney if you have questions about entity changes).

• Set a PEAS follow-up date = to the expected 23C date for posting entity changes and monitor for posting of the entity changes to ENMOD and filing status change to TXMODA.

  Reminder: Always verify entity and filing status changes fully post before inputting any account adjustments. This is necessary to avoid unpostables, erroneous notices and erroneous refunds.

  
  
  

• Document in the PEAS Case Activity Record (CAR). See table in the Example below:

  Example:

  PEAS Case Activity Record (CAR) Entries
  a.	CC: INCHG input 23C date = MM-DD-YYYY
  b.	ACDS updated to correct name line and address

(8) APS will prepare an AIMS CC: AMCLSF partial assessment to post tax, penalties, ASED, Item Reference Codes and Credit Reference Codes reflected on tax computations to the taxpayer’s account.

(9) APS will complete Form 5403 items listed below:Form 5403, Appeals Closing Record Entries

(10) Once the APS TE completes the adjustment document, APS will document their actions in the PEAS Case Activity Record (CAR) and place the case in PEAS Suspense until the PEAS Follow-up date set for monitoring the Entity change transaction code(s) posting date.

(11) Once the Entity change transaction codes post, the APS TE will remove the case from PEAS Suspense and input AMCLSF entries.

(12) Upon receiving a "Request Completed" response, APS will document the partial DLN in Item 15b on Form 5403*and create an electronic record for attachment to ACDS.

(13) APS will attach Form 5403, CC: AMCLSF to ACDS,.

(14) APS will notify the Counsel Attorney via encrypted email when AMCLSF has been input. Prepare the Counsel email notification as follows:

• Subject Line: "Docket # NNNNN-YY Interim Assessment Input 23C date = MM-DD-YYYY"

• Attachment: Form 5403, Appeals Closing Record, CC: AMCLSF

(15) APS will prepare the adjustment source document for shipment to files for association with Form 5147, Transaction Record, generated at the Campus Files Function and transmit the following documents assembled in the order provided below to Campus Files Function using Form 3210, or an E3210:

1. Form 5403

2. Copy of the delinquent return

3. Form 870-AD

4. TCS computations

5. Form 5403 Instructions

(16) APS will document the PEAS Case Activity Record (CAR) with the actions taken and place the case in PEAS Suspense to monitor for posting of adjustments.

(17) Once the adjustments post, remove the case from PEAS Suspense and close PEAS.

(1) The Tax Court Calendar program (TAXCAL) is a sub-system of ACDS developed and maintained by Appeals.

(2) The ACDS Tax Court Calendar (TAXCAL) program provides Appeals offices with a method to identify and monitor Tax Court Calendar cases and generate Tax Court Calendar reports within ACDS.

(3) As soon as a calendar is established, Counsel provides Appeals with an electronic file for each Tax Court Calendar to upload into TAXCAL. Fresno APS is responsible for uploading all Tax Court Calendars onto TAXCAL.

(4) The ACDS Tax Court Calendar functionality is menu based and user-friendly. Based upon the permissions of the user, the program allows appropriate functionality.

(5) The ACDS permissions levels for Tax Calendar are as follows:

1. (14000) Tax Calendar

2. (14100) Tax Calendar, User

3. (14200) Tax Calendar, Coordinator

4. (14300) Import Electronic Calendar - restricted permission

(6) ACDS web-based technology allows the program to match a docket number to any case on ACDS, in any Appeals office.

(7) A calendared case input on a Tax Court calendar created in any Appeals office will appear on the appropriate group's or ATE's report.

(8) The TAXCAL program provides the following functionality:

• Electronically import or manually create an ACDS Tax Court Calendar

• Match a calendar case to an ACDS case

• Provide a status report for Counsel

• Notify the assigned ATE when the case appears on a calendar

• Link on the TAXCAL record to e-mail the calendar coordinator or assigned ATE

• Add comments to the TAXCAL record

(9) Tax Court Calendar actions are the responsibility of both the Field Appeals and Campus Appeals ATEs for their assigned cases.

(10) A TAXCAL report listing all Dockets on the calendar in Docket Number order should be generated by the Field Appeals office and faxed to the Field Counsel responsible for the calendar within five business days of receipt of the calendar. This list shows the name of the ATE assigned to the case and if the case is unassigned or unmatched. The designated Field Appeals ATM is responsible for resolving unassigned or unmatched cases.

(11) Appeals provides Field Counsel with periodic calendar status reports. The designated Appeals ATM responsible for the calendar generates the report monthly. These calendar status reports are generated from TAXCAL and provide the following information:

• Name of the docketed case

• TIN of the docketed case

• Docket number

• Name of the ATE assigned the case, if assigned

• Attorney/paralegal assigned to the case as shown on ACDS

• Closing code and date closed, if applicable

• "Status" of the case

(12) The report is forwarded to each Field Counsel responsible for the calendar. Field Counsel updates the list with the name of the attorney/paralegal assigned to the case within two workdays from the date of receipt of the list. Field Counsel delivers or faxes the list back to the Appeals office responsible for the calendar so that the ACDS database can be updated with the corrections. Subsequent lists contain those corrections.

(13) The TAXCAL Users' Manual is posted on the Appeals web site on the ACDS page.

(1) The Tax Court can dismiss a case for lack of jurisdiction for a variety of reasons such as:

1. Petition was not filed on or before the 90th/150th day for filing a timely petition

2. Petitioner did not pay the filing fee

3. Petition was filed by an unauthorized representative of the deceased person (Estate Tax)

4. Petition was filed in violation of the Bankruptcy Code Stay Provision

5. Notice of deficiency or notice of determination was not issued for the tax period(s) identified on the petition

6. Notice of deficiency was not issued to the taxpayer (premature petition)

7. Notice of deficiency was not sent to the taxpayer's last known address (see (2) below)

(2) Generally a Tax Court dismissal for lack of jurisdiction does not favor the taxpayer, however, the dismissal can be based on circumstances that do favor the taxpayer. For example, a deficiency notice may be determined to be invalid because it was not sent to the taxpayer's last known address. The Tax Court lacks jurisdiction over a case that is based upon an invalid notice.

1. When the USTC determines that the Statutory Notice of Deficiency was not sent to the taxpayer's last known address, the Appeals Team Manager (ATM) will determine if the ASED is still open or not.

2. If the ASED is still open, the ATM may request that the ATE prepare and re-issue the statutory notice of deficiency to the correct address.

3. If the statute of limitation is not open, the ATM will follow barred statute procedures.

(3) When a taxpayer whose case is in Appeals jurisdiction submits a petition in response to an "Appeals-Issued" CDP/EH decision letter, 30 day letter, or some other Appeals letter that does not contain Tax Court rights, the Appeals administrative file may or may not be needed. APS will:

• Contact the Counsel attorney to confirm whether they plan to dismiss the case and determine if the Counsel Attorney requires the Appeals administrative file or not.

• If Appeals had the case as a non-docketed case and the original WUNO is already closed, the DIMS Team will follow the steps in the applicable Example below:

  Example: Step Action Table #1 - When the Original WUNO is Already Closed

  Step	Action
  1.	Create a New WUNO - skeletal record on ACDS
  2.	Cross-reference the original WUNO in the Note field
  3.	Add a Note "TP petitioned erroneously, original admin closed, no dummy file needed"
  4.	Leave the case on AOC 00’s database until the dismissal is entered
  5.	Upon receipt of the dismissal the case is assigned on PEAS for closing action(s)

• If there is no previous ACDS record for the taxpayer, follow the steps in the Example below:

  Example: Step Action Table #2 - When No Prior WUNO is on ACDS

  Step	Action
  1.	Create a skeletal record on ACDS
  2.	Add a Note "TP petitioned erroneously, original admin closed, no dummy file needed"
  3.	Upon receipt of the dismissal the case is assigned on PEAS for closing action(s)

(4) Each Appeals office designates an Appeals Technical Employee (ATE) who is responsible for review of dismissed cases prior to assessment.

(5) See IRM 8.20.7, Dismissed for Lack of Jurisdiction Case Closing for ACDS, AIMS and IDRS closing procedures.

(1) Appeals gives no further consideration to cases that are dismissed by the Tax Court for lack of prosecution.

(2) Upon receipt of the Tax Court Dismissal the case is assigned on PEAS to an APS TE for ACDS, AIMS, and IDRS closing actions in compliance with the Order to Dismiss.

(3) See IRM 8.20.7, Dismissed for Lack of Prosecution Case Closing for closing procedures.

(1) In the very rare circumstance when an entered decision/order is vacated by the court, the entered decision/order which was vacated is no longer in effect.

(2) When APS becomes aware of a vacated Decision/Order, APS will:

1. Verify with the Counsel Attorney that the entered Decision/Order has been vacated

2. Update ACDS from PEAS to remove the Action Code DECENT or ORDENT and replace it with DCJUR

3. Use the date the entered Decision/Order was Vacated as the TODATE

4. Add a Note: "Decision/Order Entered MM/DD/YYYY Vacated on MM/DD/YYYY"

(3) If the case is returned by Counsel for further Appeals consideration, update ACDS following the procedures in IRM 8.20.6.13 (4), Docketed Reconsideration Cases (Closing Code 42) - Jurisdiction Returned to Appeals by Counsel.

(4) If Counsel does not return the case for further Appeals consideration, but instead sends the case to APS for processing of a new Entered Decision/Order, APS will follow appropriate Docketed case closing procedures in IRM 8.20.7.

(1) If the case goes to the Court of Appeals (Appellate Court), the deficiency determined by the Tax Court can be assessed and collected unless the petitioner files an "appeal bond" (also called a review bond) with the Tax Court. The appeal bond must be in an amount fixed by the Court on or before the time the notice of appeal is filed. No assessment is made if the bond is filed.

(2) An appeal bond is not the same as an IRC 6603 Deposit. The appeal bond is an irrevocable, open-ended promise by the taxpayer to pay the tax, additions to tax, and interest determined to be due. The taxpayer will provide security for the bond, which is not posted to the taxpayer's account.

(3) The docket attorney from Counsel’s Field office has the responsibility to ensure prompt assessment of the tax, generally within 60 days after the decision of the Tax Court becomes final. Counsel will notify Appeals when the decision becomes final (after the case is finished in the Court of Appeals and/or Supreme Court).

(1) Counsel notifies APS:

• When an appeal of an entered tax court decision is filed with the Court of Appeals

• Whether or not a bond was also filed by the petitioner

(2) Upon notification from Counsel, APS will update ACDS as follows:

1. Action Code = APPEALED

2. TODATE = Date the appeal was filed

3. LACTION = (optional entry - local procedure)

4. TODATE = (optional entry - local procedure)

5. Upload the TLCATS transmittal as an attachment to the ACDS WUNO

(3) When Counsel secures a bond from the taxpayer, APS does not adjust the taxpayer’s account.

(4) When Counsel does not secure a bond from the taxpayer, APS must follow procedures in IRM 8.20.6.17.3, Appeal Filed by Petitioner, No Bond Filed below to adjust the taxpayer’s account per the Entered Decision.

(5) Once the Counsel attorney receives notification that the decision has become final, they will notify Appeals and transmit the administrative file to Appeals using Form 1734, Transmittal Memorandum, with an annotation, "Tax Court Case/Assessment must be made before [MM-DD-YYYY]."

(6) The APS PTM is responsible for assigning the case to ensure the account adjustments are processed timely.

(1) If the petitioner files a notice of appeal but does not file a bond, the tax must be assessed. The decision document will not contain an IRC 6213(a) waiver paragraph so an Agreement Date is not entered on the assessment document, nor is the waiver period considered in the deficiency interest calculation associated with the assessment. The assessment must be made even if the tax is paid.

(2) The attorney contacts the PTM and immediately delivers the administrative file using Form 1734, with an annotation "Appealed Tax Court Case/Assessment must be made by [MM-DD-YYYY]."

(3) APS will process the assessment via:

• Form 5403, CC: AMCLSF, in order to keep the AIMS controls open, or

• Form 2859, Quick Assessment if required due to dollar amount, or ASED protection.

(4) The earliest assessment statute is 60 days after the Tax Court decision becomes final. The Tax Court decision becomes final after the Appeals Court case (or Supreme Court case) decision is entered. Therefore, a quick assessment is not necessary unless notification has been received that the Tax Court decision has become final. The IRC 6213(a) paragraph will not be on this decision so there is no agreement date associated with the resulting tax assessment.

(5) The APS employee who receives the assessment notification or administrative file from Counsel must check the ACDS Category Code to identify if the interim adjustment will be processed by the local APS Team, or if it must be processed by the APS-Complex Interest Team (CIT).

(6) The APS employee must notify their PTM to request preparation of the CIT Referral Form if the ACDS Category Code is:

• CIC (Coordinated Industry Case)

• IC (Industry Case)

• EXM/TEGE (Subcategory Estate and Gift) TYPE = ES (Estate) or TYPE = G (Gift)

(7) For the cases identified in (6) above, the APS PTM will prepare and submit the completed CIT Referral Form to the *AP Complex Interest mailbox for assignment of an APS-CIT TE.

(8) Within 2 business days, the PTM will receive an email response from the *AP Complex Interest mailbox which identifies the APS-CIT TE assigned to process the interim adjustment, as well as their fax number and complete mailing address.

(9) Upon receipt of a response from the *AP Complex Interest mailbox, the PTM or designated APS TE will fax or mail the documents required to process the interim assessment to the assigned APS-CIT TE.

(10) APS will process the interim assessment of the Entered Decision under Appeal as follows:

1. Verify that the amount of deficiency and/or penalty reflected in the decision agrees with the amounts in Item 12 of Form 5403.

2. Verify that all applicable "interest-related" forms and schedules are available for accurate computation of the interest for the interim assessment action. See IRM 8.20.7, AIMS CC: AMCLSA General Processing for specific guidance covering APS verification procedures and requirements.

   Example: An MFT 30 account requires a 6404(g) worksheet so the APS TE can accurately process the interest related transactions. If the 6404(g) worksheet was either not included in the case when it was originally submitted to Counsel or if is not included in the interim assessment request submitted by Counsel, follow existing procedures to request the 6404(g) worksheet from TCS.

   Reminder: IRC 6404(g) provides for an underpayment interest suspension and applies to any MFT 30 timely filed return from 199812 through 200512 for which the IRS did not provide the taxpayer with the notice of the proposed additional liability within the required 12-18 month timeframe unless one of the exceptions listed under 6404(g)(2) applies, thus rendering the account ineligible for IRC 6404(g) interest suspension. Beginning with the 200612 tax period, the IRS has 36 months to provide a notice to the taxpayer of the liability or 6404(g) interest suspension may apply.

   Caution: It is possible for an MFT 30 tax period to be ineligible for 6404(g) interest suspension because a Substantial Understatement Penalty is proposed, which causes the 6404(g) analysis to reach one result "Does Not Apply"; but if the settlement or Tax Court Decision eliminates the penalty, then the account must be re-evaluated for IRC 6404(g) application. This "re-evaluation" requirement is of critical importance to the respective taxpayer to protect their Right to Be Informed, Right to Quality Service, Right to Pay No More than the Correct Amount of Tax, and their Right to A Fair and Just Tax System. If a timely filed 199812 - 200512 tax period’s original "6404(g) analysis" resulted in "IRC 6404(g) interest suspension does not apply because of an exclusionary feature" e.g. a "Substantial Understatement Penalty is proposed", but once the taxpayer’s case is "Settled" or "Finalized" with the exclusionary feature(s) eliminated, then the applicability of 6404(g) interest suspension must be re-evaluated and verified as applicable or not applicable. The 6404(g) re-determination must be documented on a 6404(g) Worksheet and provided to APS when the case is submitted for processing of the account adjustments, whether requesting an interim action or a closing action.

   Note: The interim assessment posting and removal of the TC 520 cc 72 instructed in c) below, will initiate collection activity so accurate computation of the interest is critical. Without the appropriate "interest-related" forms and schedules, the interest adjustment may be overstated or understated.Table of Interest-Related Features Which Require Additional Documentation for Interest Accuracy

   Interest IRC and Feature	MFT/Master File	Required Form/Schedule
   IRC 6404(g) Untimely Notice	30 - IMF	6404(g) worksheet
   IRC 6601(d) Carry-back	30 - IMF and 02 BMF	Form 2285(s)
   IRC 6621(c) LCU Interest	02 - BMF LCU	Notice Amount and Trigger Date
   IRC 7508 Combat Zone	30 - IMF	ENMOD/TXMOD/F-3198/F-5402
   IRC 7508A Disaster Area	Any	ENMOD/TXMOD/F-3198/F-5402
   Rev. Rul. 99-43 SEQUA	Any	SEQUA Spreadsheet

3. Input TC 521 Closing Code (cc) 72 to reverse the TC 520 cc 72 and initiate collection activity.

   Reminder: Manual reversal of the TC 520 cc 72 is necessary when processing the interim adjustment, unlike the closing adjustment CC: AMCLSA which automatically generates the TC 521 reversal.

   Reminder: Assessment Verification requires a complete DLN for the transaction(s) input. If and Then Table for Assessment Verification

   If	Then
   Adjustment is processed via CC: AMCLSF	APS TE monitors the account using CC: TXMODA until the transaction code(s) are fully posted. APS TE inputs TC 521 cc 72 once TCs are fully posted.
   Adjustment is processed via Quick Assessment (Q/A) which APS faxes to the appropriate Accounting function for processing	APS TE receives notification from the Accounting function which includes the complete DLN as well as a copy of the billing assembly. APS TE inputs TC 521 cc 72 once TCs are fully posted.
   Quick Assessment DLN is not provided to the APS TE by the 23C Date	APS TE will contact the Accounting function to: Identify the reason for the delay. Provide the information needed to resolve the issue. Secure the complete DLN and billing assembly. Input TC 521 cc 72 once TCs are fully posted.

   Reminder: PEAS Suspense and PEAS Follow-up features must be used to properly control inventory monitoring and set follow-up action date(s).

4. When the interim assessment is processed by APS-CIT using the necessary faxed documents, and the administrative file is being held by Counsel, or the originating APS Office, the APS-CIT TE transmits the assessment documentation via fax for association with the administrative file.

5. Upon receipt of the assessment documentation, associate the assessment verification with the administrative file and prepare Form 3210 or an E3210 to transmit the administrative file to the designated Counsel Attorney.

6. Notate the following on the Form 3210, or E3210 "Assessment is posted and assessment verification is attached."

(11) Update ACDS as follows:

• ACTION = APPEALED

• TODATE = date the case is transmitted to Counsel

• LACTION = (Local Option)

• LTODATE = (Local Option)

(12) Update ACDS Return Level for each tax period with assessment verification as follows:

• STATDATE = remove ASED date and leave blank

• Statute CODE = ASESD for each tax period with assessment verification

(13) Follow-up on Form 3210 or E3210 transmittal acknowledgement of receipt as appropriate.

(1) The Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 98) added IRC 6512(a)(6) and amended IRC 6512(b) to give the federal courts jurisdiction to order a refund or credit of certain amounts while an appeal of a Tax Court decision is pending.

1. If the Tax Court determines both an overpayment and a deficiency, the Service may refund or credit the uncontested portion of the overpayment while the appeal is pending.

2. If the Service does not refund or credit the uncontested portion of the overpayment, the taxpayer may bring an action in Tax Court, District Court, or the United States Court of Federal Claims to recover that amount.

(2) When Appeals receives a letter from Counsel directing that an uncontested overpayment on an Appealed Tax Court case is approved for refund or credit to the taxpayer, APS will process the refund using manual refund procedures or apply the designated amount of the credit to the taxpayer’s designated account, and retain the tax court litigation freeze code (TC 520 cc 72) on the taxpayer’s account.

(3) The letter from Counsel serves as the authority for initiating the manual refund and/or applying the taxpayer’s credit as directed. The TC 520 cc 72 Litigation Freeze must be retained on the taxpayer's account currently under Tax Court jurisdiction.

(1) There are several instances which require Counsel concurrence before APS can complete the requested interim action.

(2) When Counsel’s concurrence is required, the ATE will notify APS to:

• Transmit the administrative file to Counsel, and

• Update ACDS

(3) APS will update ACDS by entering action code DCOTHER and the date the case was transmitted to Counsel on the update case screen.

(4) On a monthly basis, APS management, or its designated employees, will run the DCOTHER follow-up list to determine if Counsel has returned the administrative file.

(1) Generally, the ATE will retain the administrative file and tax return when requesting that APS process a Partial (Interim) Assessment/Abatement. If a restricted interest computation is also necessary, the ATE will include a copy of page 1 of the return and applicable restricted interest worksheets along with the partial assessment authorization (signed waiver) and Form 5403 instruction worksheet. (A second Form 5403 worksheet will be prepared and processed when the return is finally closed.)

(2) An interim abatement is generally required as a result of a premature Compliance Issued SND however, that is not the only circumstance for which an ATE, ATM, or Counsel Attorney may request APS process an interim abatement of tax, penalty, or interest on an account. Each circumstance and account condition requires APS to analyze the applicable account, and process the authorized interim account adjustments in order to:

• Correct the account balance

• Correct the account condition

• Avoid an unpostable condition

• Release or Hold any refund as directed by the ATE/ATM/Counsel Attorney

• Release or Hold any billing notice as directed by the ATE/ATM/Counsel Attorney

(3) Procedures for preparing the Form 5403, Appeals Closing Record:

1. Check block "AMCLSF (Partial)" at the top of Form 5403 prepared for the interim adjustment(s).

2. Analyze the taxpayer’s account condition to determine if the adjustment will result in a credit balance or a debit balance.

   Note: The ATE will identify if the refund and/or notice should be held and not issued to the taxpayer.

3. When processing an adjustment that results in a credit balance, and the ATE/ATM/Counsel Attorney has requested that the credit balance be held and NOT refunded, use the appropriate Hold Code in Item 07 on Form 5403. See (4) - (6) below for additional guidance on controlling overpayment modules and processing credit transfers.

4. When the ATE/ATM/Counsel Attorney requests the credit balance be refunded to the taxpayer, do not use a Hold Code unless the refund must be made using Manual Refund procedures.

5. When the ATE/ATM/Counsel Attorney wants only the notice held, the APS TE must use enter the appropriate Hold Code in Item 07 on Form 5403.

6. Determine the correct use of Hold Codes by following instructions outlined below and in Document 6209, Master File Codes. Proper use of Hold Codes is important to accurately release, or prevent billing notices and/or refunds from being generated prior to final closure action.

Hold Code Usage Decision Table

Hold Code	Use This Hold Code if
1	An advance payment (TC 640), designated interest payment (TC 680), or subsequent payment (TC 670) is present on the transcript of account and you DO NOT want a refund to go to the taxpayer until final closure. Without the hold code, any amount in excess of your partial or interim assessment amount will be released for refund. See g) below for instruction on releasing or offsetting some or all of the credit as requested by the ATE or Counsel.
2	(1) Above is true and, in addition, you do not want a billing notice issued to the taxpayer until final closure.
3	You must make an assessment but do not want a billing notice issued to the taxpayer until final closure.
4	Same as HC “1” except that a notice will not be issued at any time.

7. Leave Items 16, 20, 802–811, 39, and 42 blank.

8. Complete other items following Form 5403 instructions.

(4) Tax and/or penalty abatement authorized by the ATE can result in a credit balance on the taxpayer’s account. A credit balance is resolved in the following ways when the Refund Statute Expiration Date (RSED) is open:

1. The credit is offset to the taxpayer’s earliest balance due underpayment period

2. The credit is offset to a specific tax period per the taxpayer’s or ATE’s written request

3. The credit is held pending an assessment on another Appeals/Counsel jurisdiction tax period

4. The credit is released for refund, or is manually refunded when the taxpayer has no pending assessment(s) or outstanding balance due

   Reminder: IRC 6402, Authority to Make Credits or Refunds (a) General Rule. "In the case of any overpayment, the Secretary, within the applicable period of limitations, may credit the amount of such overpayment, including any interest allowed thereon, against any liability in respect of an internal revenue tax on the part of the person who made the overpayment and shall, subject to subsections (c), (d), (e), and (f) refund any balance to such person."

(5) When a credit balance is available for offset or refund and the taxpayer has one or more balance due tax periods, APS will process a credit transfer using the appropriate hold codes on both the debit side and the credit side. For additional guidance on credit transfer procedures see:

• IRM 2.4.17, IDRS Terminal Input, Command Codes ADD24/34/48, FRM34 and DRT24/48

• IRM 3.17.21, Accounting and Data Control, Credit and Account Transfers

• IRM 4.4.3, AIMS Procedures and Processing Instructions, Credit Transfers and Reprocessing Returns

• IRM 21.5.6, Account Resolution, Freeze Codes

• IRM 21.5.8, Account Resolution, Credit Transfers

(6) When the ATE requests a credit balance on one tax period be offset to another tax period currently under Appeals or Counsel’s jurisdiction, APS will control the retention of the credit on the overpaid module until the appropriate time to offset the credit to the underpaid module. When APS performs the credit transfer process, they will use the appropriate hold code on both the losing and the gaining module to avoid an erroneous refund.

(7) Only one carrier transaction (TC 30X/29X) can post to a given tax module per cycle. Use the appropriate Posting Delay Code (PDC) "1 through 6" to input subsequent adjustment transaction within the same cycle and the PDC will cause the subsequent adjustment(s) to "re-sequence" and post in the order you determine based on the PDC.

(8) For additional information on the use of Posting Delay Codes see IRM 21.5.2, Posting Delay Code (PDC).

(9) If a quick assessment is required due to the ASED expiring within 60 days, or for an agreed and unpaid assessment over $100,000.00, prepare Form 2859, Request for Quick or Prompt Assessment to include all applicable assessment information. See IRM 4.4.25 AIMS Procedures and Processing Instructions, Quick Assessments for additional guidance.

• The APS TE must determine the appropriate action(s) to hold the notice or hold the credit, or both when requested by the ATE.

• The APS TE must update the taxpayer's account with appropriate History Item. See IRM 4.4.25, Research and Actions Required Prior to Quick Assessment, CCP or Campus Examination Procedures for additional guidance.

• The APS TE must place the PEAS record in Suspense for monitoring of the account and upon receipt of the Form 3552, Prompt Assessment Billing Assembly, document the DLN in PEAS, close PEAS inventory record and forward the assessment verification to the ATE for association with the administrative file.

(10) When processing a Partial (Interim) assessment using Form 2859, Request for Quick or Prompt Assessment APS will not input Form 5403 via Command Code AMCLSF. Instead, they will document Item A on Form 5403 as follows:

(11) Adjustments to item reference numbers from Form 5403 cannot be made as part of the quick assessment. These reference numbers will be updated as identified on the Form 5403 Instruction Worksheet which will be prepared by the ATE or TCS at the time of final determination of the case. See IRM 4.4.25, Reference Number Adjustment for additional information.

(1) Form 3870, Request for AdjustmentRequest for Adjustment is prepared and approved by the ATE/ATM and is submitted to APS for processing Non-AIMS account interim adjustments via CC: REQ54/ADJ54. The Approving Official Signature authorizes APS to process the account adjustments requested by the ATE.

(2) IRM 2.4.16, IDRS Terminal Input - Command Codes REQ54 and ADJ54 provides detailed item entry instructions and explanations for reference by APS TE's authorized to input Non-AIMS adjustments.

(3) APS must verify the following items when entered by ATE, or complete the following items on Form 3870 as follows:

• Item 15 Sequence Number, identified by APS TE.

• Item 16 Blocking Series, 05X, 15X, 18X, 96X, 97X, 98X, 99X.

• Item 17 Deficiency Interest to Date, MM-DD-YYYY when restricted interest TC 34X is adjusted.

• Item 18 Source Code, this is a required field for IMF TC 29X adjustments. The Source Code (SC) chooses the beginning explanation appearing on the taxpayer's adjustment notice with the reason code (RC) completing the statement. See Document 6209, Section 8C - Master File Codes, Source Codes, Reason Codes, Hold Codes and Priority Codes or IRM 21.6.7, Source Code (SC) to identify the appropriate Source Code for the Appeals adjustment. The most common SC used for Appeals adjustments is "2" which begins the adjustment notice with "We changed your [YYYYMM]" account to correct your [RC].

• Item 19 Reason Code, this is a required entry and up to 3 RC's may be input, position #4 is for entry of a Penalty RC when appropriate. When multiple RC's are input, enter them in numeric order from lowest number to highest number. RC 099 is used when other RC's do not apply and to complete the notice statement with "Account Information." See Document 6209, Section 8C - Master File Codes, Source Codes, Reason Codes, Hold Codes and Priority Codes or IRM 21.6.7, Reason Code (RC) to identify the appropriate Reason Code for the Appeals adjustment. If a penalty is being adjusted or suppressed, the correct Penalty Reason Code must be entered in position #4. See IRM 21.6.7 , Penalty Reason Code for additional guidance.

• Item 21 Hold Code, is entered when appropriate. See Document 6209, Section 8C - Master File Codes, Source Codes, Reason Codes, Hold Codes and Priority Codes to identify the appropriate Hold Code for the Appeals interim adjustment.

• Item 23 Priority Code, is entered by APS and must be used when certain conditions exist on the module. The most common PC used on Appeals non-AIMS adjustments is "1." See Document 6209, Section 8C - Master File Codes, Source Codes, Reason Codes, Hold Codes and Priority Codes to identify the appropriate Priority Code for the Appeals adjustment.

• Item 24 Posting Delay Code, is entered by APS when the adjustment is input in during the current cycle, but the posting of the transactions must be delayed from 1-6 cycles. A PDC is only entered when needed.

• Item 25 Source Document (SD) Attached, this is a required entry.
  "Y" means the SD will be submitted to files for association with the REQ54/ADJ54 Form 5147, IDRS Transaction Record
  "N" means no SD "NSD" will be submitted to files
  "R" means the SD is being retained by the input function

• Item 29 TC No. is where the Transaction Code(s) being adjusted are entered along with the increase or decrease dollar amount for each respective TC entered on the associated row i.e. 29X, 16X, 27X, 34X, etc.

• Item 29 Ref. No. Item Adjustment is where the IRN(s) being adjusted are entered along with the increase or decrease amount for each respective IRN i.e. 888, 886, 889, 878, 887, etc.

• Item 29 Ref. No. Credit Adjustment is where the CRN(s) being adjusted are entered along with the increase or decrease amount for each respective CRN i.e. 806/807, 764/765, 337/338, 256, 257, etc.

• Item 30 Remarks is used to identify any other specific information needed to complete the adjustment i.e. Refund Statute Control Date (RFSCDT), TCB-DT, and other information not specifically provided an item entry.

• Item 31 Complete as appropriate.

(4) A Form 8485, Assessment Adjustment Case Record can be prepared by APS, based on the Form 3870 provided by the ATE, to process the Non-AIMS account interim adjustments if additional fields are needed since the Form 3870 only allows for 4 TC Numbers to be entered.

(5) The APS TE must verify that their adjustments have posted to the account before closing the PEAS record. PEAS Suspense must be used as appropriate. See IRM 8.20.10, Account and Processing Support - Processing Employee Automated System (PEAS), for additional information.

(6) All interim/partial account adjustments AIMS and Non-AIMS must have the Adjustment Source Document associated with the administrative file as well as a copy of the Adjustment Source Document sent to Campus Files for association with the Form 5147, IDRS Transaction Register when Item 25 SD = "Y".

(7) The APS TE must close the IDRS Control Base for each account they’ve adjusted once the transactions have posted.

(1) When the ATE secures a partial agreement for more than $1 million, ACDS will be updated to allow for the agreed portion of the WUNO to be processed and closed, while the unagreed portion of the WUNO will remain assigned to the ATE. This process is necessary, to ensure the >$1 million Appeals results are timely recorded on ACDS, processed on IDRS, and not delayed for resolution of the unagreed issues/tax periods.

(2) This process requires the following steps be taken in the order identified:

1. ATE requests a new WUNO for the Agreed tax period/issues by submitting an ACDS Update Request to their servicing APS Office

2. Servicing APS Office creates a new WUNO for the Agreed tax period(s)/issue(s) and notifies the ATE upon completion of the request

3. APS alerts their PTM/Area TA to submit a Ticket to have the New WUNO ASNDATE and RECDATE corrected to same date as Original WUNO

Partial Agreement WUNO and Original WUNO ACDS Entries

New WUNO for Partial Agreement (PA)	Original WUNO for Unagreed Issues
TP Name, TIN, Address is the same as original WUNO	TP Name, TIN, Address does not change
ASNDATE - Date must be in same FY as CREATED date	ASNDATE - Does not change
REQAPPL - Same as original WUNO	REQAPPL - Does not change
RECDATE - Date must be in same FY as CREATED date	RECDATE - Does not change
CREATED - Same as original WUNO	CREATED - Does not change
FEATRCD - PA for Partial Assessment	FEATRCD - Does not change
NOTE - Enter Original WUNO for cross-reference. AIMS Partial Assessments (CC: AMCLSF) do not include Form 5403 Items 800/801/804 entries so upon final closing, the total amounts for these items will be included on the Final Form 5403.	NOTE - Enter New PA WUNO for cross-reference to alert the APS TE who completes the final case to include both the Partial Assessment and Final Assessment dollars and hours on the AMCLSA Form 5403 Items 800/801/804.
ACAPDATE - Date Form 5402 for agreed items is signed.	ACAPDATE - Is not updated until original WUNO is closed.
CLOSINGCD - Enter the Closing Code provided on the Form 5402	CLOSINGCD - Is not updated until original WUNO is closed.
Return Level Information - entered from Form 5402 for the partial agreement.	Return Level Information - adjusted to avoid duplication of PropdTax and PropdPen information and to reflect only remaining unagreed amount(s). This information will be provided by the ATE within their ACDS Update Request.
TOTHRS - 0.00 because the total case time will be reflected upon closing of the Original WUNO.	TOTHRS - Is not updated until the original WUNO is closed.

4. Upon notification that the New WUNO has been created, the ATE prepares the CIT Referral Form for the Partial Assessment using the New WUNO and submits the request to *AP Complex Interest mailbox for assignment to an APS-CIT TE.

5. APS CIT-TE receives all of the forms and documents necessary to accurately process the partial assessment from ATE, (via fax, secure email, or mail). ATE retains the administrative file during this process whenever possible to avoid unnecessary mailing costs as well as the risks associated when mailing PII.

   Reminder: When APS returns the assessment verification information to the ATE, it must be associated with the tax return, and preferably attached to the front of the first page of the return with any Form 2285 and interest computation(s) attached to the back of the first page of the return. See (4) below if APS has the return in their possession.

6. APS-CIT TE closes the New ACDS WUNO for the Partial Agreement within 2 days of receipt of the documentation and imports the New ACDS WUNO into their PEAS Inventory.

(3) APS-CIT TE takes the following actions upon processing of the Partial Agreement:

• Transmit adjustment source document(s) to Campus Files for association with the Form 5147

• Monitor IDRS to verify posting

• Notify the ATE that the assessment(s) has posted

• Forward the completed partial assessment package back to the ATE via fax, secure email, or mail

• Close the PEAS Record

(4) When the return is in the APS TE's possession, APS will attach the assessment verification to the face of the return and attach any Form 2285, Concurrent Determinations of Deficiencies and interest computations(s) to the back of the first page of the return and transmit the return and all documents, including the assessment verification to the ATE or Counsel Attorney.

(5) When the return is NOT in the APS TE’s possession, after processing the interim assessment and verifying the adjustments have posted to the account, APS will transmit all documents including assessment verification and interest computations (if applicable) associated with the adjustment to the Appeals Technical Employee or Counsel Attorney as appropriate.

(6) This procedure applies only to assessable partial agreements. Both a Form 870, Waiver of Restrictions on Assessment & Collection of Deficiency in Tax & Acceptance of Overassessment and a stipulation of agreed issues, entered by the Tax Court, must be secured on docketed cases.

(7) This procedure may also be used when Appeals settles some issues in a case and then returns the balance of the case to LB&I as a premature referral.

(1) ATEs may require an interim adjustment before closing their CDP/EH case.

(2) ATEs will generally prepare adjustment requests using one of the following forms:

1. Form 3870 – Request for Adjustment

2. Form 2424 – Account Adjustment Voucher

3. Form 4159 – Payment Tracer Request

(3) APS employees will inform the requesting employee, via EEFax or e-mail, that the interim adjustment has been processed. If there are inaccuracies with the adjustment request, APS will attempt to rectify the discrepancy with the initiator in the most time efficient manner, elevating any unresolved issues to the PTM/ATM level only if necessary.

(4) The APS TE must close any IDRS Control Base assigned to them once the input transactions post. The generic CDP control will not be closed until the final case closing.

(1) In an unagreed CDP case, the ATE will prepare one of the following Notices:

1. Letter 3193, Notice of Determination Concerning Collection Action(s) Under Section 6320 and/or 6330.

2. Letter 4389, Notice of Determination - Abatement of Interest - When abatement of interest is raised as an issue.

3. Letter 4390, Notice of Determination - Request for Relief from Joint and Several Liability - When innocent spouse is raised as an issue.

(2) A Determination Letter must be sent separately, certified or registered, to each joint filer.

(3) The steps for issuing a notice of determination letter are:

1. Verify the address using ENMOD or INOLES.

2. Send the letter via Certified Mail if the taxpayer lives within the U.S.

3. Send the letter via Registered Mail if the taxpayer lives outside the U.S.

4. Complete Postal Service (PS) Form 3800 certified mail receipt.

5. Place the certified mail number on the original letter and also include on all additional copies.

6. Enter the issuance date on the letter.

7. Calculate 30 days from the issuance date using the ACDS Target Date utility. Usage of the tool is mandatory to ensure accuracy. To locate the tool, click on Utilities in the ACDS menu bar. This will open the Utilities Menu. Scroll down the Utilities Menu to locate the Target Date link. Click on the link to open the input screen. Enter the issuance date in the Beginning Date field and use 30 as the Number of Days. Enter the resulting Target Date on the NOD in the "Last day to file petition with US tax court" field.

8. Ensure that the NOD is mailed no later than the issuance date printed on the NOD.

9. Send the appropriate copies of the letter to the authorized representative, if there is one.

10. Place a copy of the letter(s) and all attachments in the administrative file. Upload and attach the dated NOD to ACDS.

11. Enter the taxpayer’s name, mailing address (as it appears on the envelope), and the mailing date on the PS Form 3877 or Form 9814, Request for Mail/Shipping Service, mailing record.

(4) Update ACDS for CDP WUNO:

• SNTYPE = 030A

• SNDATE = date letter is mailed

  Reminder: The letter MUST be postmarked with the same date that is on the Notice of Determination.

Caution: APS must be aware of local mail room requirements regarding postmark dates to ensure that the postmark and letter dates are the same.

• SND = Y

(5) Update ACDS for CDP-related Innocent Spouse WUNO:

• SNTYPE = 090A

• SNDATE = Date Letter 4390 is mailed

  Reminder: The letter MUST be postmarked with the same date that is on the Notice of Determination.

  Caution: APS must be aware of local mail room requirements regarding postmark dates to ensure that the postmark and letter dates are the same.

• SND = Y

(6) Update ACDS for CDP-related Abatement of Interest WUNO:

• SNTYPE = 180A

• SNDATE = Date letter 4389 is mailed.

  Reminder: The letter MUST be postmarked with the same date that is on the Notice of Determination.

  Caution: APS must be aware of local mail room requirements regarding postmark dates to ensure that the postmark and letter dates are the same.

• SND = Y

(7) Suspend the administrative file until the earlier of one of the following occurs:

1. the taxpayer files a petition to the USTC

2. the time period for filing a petition expires and the additional 30 day suspense period ends without the case being assigned a docket number.

(8) See IRM Exhibit 8.20.6-1, Calculating the Default Date for additional information.

(9) APS will generate the monthly statutory notice follow-up report to ensure cases are defaulted timely. See IRM 8.10.1, Appeals Reports and Projects, Internal Reports for additional guidance.

(1) Within 14 days of assignment of a request from ATE to accept OIC transfer in AOIC, Tax Examiner (TE) will verify there is a WUNO for the subject OIC.

• If there is no WUNO for the OIC, return the request to ATE.

(2) To accept OIC transfers in AOIC,

1. Access AOIC

2. select OIC Appeals at AOIC Menu

3. select Accept Transfers at Appeals Menu

4. select Query the List by Offer or Query the List by TIN and populate the appropriate request field with Offer Number or TIN

5. click Query

6. at Accept Transfers screen,

1. select Yes from drop down arrow in Accept column

2. click Submit at bottom of screen

(1) Use "Special Activities Menu" option 5 "Closing Code 42/43 Update" to update ACDS case/returns screen:

1. DKTNO = docket number

2. CLOSINGCD = 43 (This closing code will move the case to Part 3, status E/T)

3. DATECLSD = date case sent to Counsel

4. DC OFFICE = enter the local Counsel office

5. ATTORNEY = attorney's name

6. Statute CODE = SUSP for each tax period identified on the petition

(2) Send the administrative file to the Area Counsel office that has jurisdiction. Whenever transmittal memo Form 2828, Form 3210, or E3210 are used, perform timely follow-up until Counsel acknowledges receipt of the administrative file.

(1) Occasionally, a court will remand a CDP case to Appeals for further action. When this occurs, Appeals will generally issue a Letter 3978, Supplemental Notice of Determination after reconsideration of the case.

(2) After first contacting the ATM, the remanded case will be sent by Counsel directly to the ATM who will assign the case to the appropriate ATE.

(3) Upon receiving the remand determination from Counsel, the ATE will e-mail APS with their assignment information and APS will take the following actions to update ACDS:

1. From the Special Activities Menu, input interim closing code 42 to change the case from PART 3 (Counsel jurisdiction) to PART 2 (Appeals jurisdiction) on ACDS

2. Enter "REMAND" in the LOC 3 field

3. Remove the SNTYPE*

4. Remove SNDATE*

5. Remove SNEXPDATE

6. *Enter "Original SND issued MMDDYYYY" in the NOTE field to preserve the original information on the ACDS record

7. Verify that the Statute CODE is "SUSP"

(4) When work on the remanded case has been completed, the ATE will prepare Form 3210, or E3210, or Form 2828, Transmittal Memorandum to return the case to APS through the ATM.

(5) Upon receiving the "REMAND" determination from the ATM, APS will update ACDS as follows:

1. Input interim closing code 43, Petitioned Case to return the case to PART 3 (Counsel jurisdiction) on ACDS

(6) APS will mail the Supplemental Notice of Determination Letter as follows:

1. Separately, to each joint filer

2. Via regular mail unless directed by the ATE, ATM, or Counsel to send via certified or registered mail

(7) Return the case to Area Counsel using a Form 3210 or an E3210.

(1) If the taxpayer does not agree with the Appeals determination, the ATE:

• Completes an unagreed ACM and CARATS record, and

• Requests TCS prepare a Statutory Notice of Deficiency (SND) to be included in the case file

(2) The case goes to the designated ATM reviewer Field East or West who:

1. Approves the case

2. Signs the SND

3. Inputs the ACAPDATE on ACDS

4. Routes the case to the Atlanta APS office

(3) Atlanta APS mails the letter by certified mail and suspenses the case for the 90-day period. If petitioned, Atlanta APS forwards the case to Counsel for answer. Appeals statute guidelines apply at all times.

(1) If the taxpayer does not agree with Appeals determination in a timely requested Collection Due Process (CDP) ETC Case:

• The ATE completes a Form 5402 an ACM and CARATS record

• The ATE prepares a Notice of Determination, along with envelopes and transcripts with the most recent address to the taxpayer and the power of attorney

(2) The case goes to the designated ATM reviewer who will:

1. Approve the case

2. Sign the Notice of Determination

3. Input the ACAPDATE on ACDS

4. Route the case to the Atlanta APS office

(3) Atlanta APS mails the Notice of Determination by certified mail and suspends the case for the 30 day period during which the taxpayer can file a petition with the Tax Court + the additional 30 day suspense timeframe to allow for mailing and assignment of a docket number. The total suspense timeframe is 60 days.

• If petitioned, Atlanta APS forwards the case to Counsel for answer.

• If not petitioned, Atlanta APS sends the case to Memphis Campus APS for backend processing and closing.

(4) If the taxpayer signs waiver Form 12257, Summary Notice of Determination, Waiver of Right to Judicial Review of a Collection Due Process Determination, Waiver of Suspension of Levy Action, and Waiver of Periods of Limitation in Section 6330(e)(1) indicating agreement with Appeals determination in a timely requested CDP hearing:

1. The ATE completes a Form 5402, an ACM and CARATS record.

2. The ATE prepares a Letter 4382, Form 12257 Closing Letter acknowledging receipt of the waiver, along with envelopes and transcripts with the most recent address to the taxpayer and the power of attorney.

(5) The ATE transmits the case to the designated ATM reviewer who will :

1. Approve the case

2. Sign the Form 12257 and Letter 4382

3. Input the ACAPDATE on ACDS

4. Route the case to the Atlanta APS office

Note: Atlanta APS sends the CDP case for closing to Memphis Campus APS for backend processing and closing.

(1) If the taxpayer is provided with an equivalent hearing in an ETC case (because the taxpayer did not timely request a CDP hearing):

• The ATE completes Form 5402, an ACM and CARATS record

• The ATE prepares a Decision Letter, whether the outcome is agreed or unagreed, along with envelopes to the taxpayer and the power of attorney

(2) The case goes to the designated ATM reviewer who will :

1. Approve the case

2. Sign the Decision Letter

3. Input the ACAPDATE on ACDS

4. Route the case to the Atlanta APS office

Note: Atlanta APS sends the equivalent hearing case to Memphis Campus APS for backend processing and closing.

(1) If the taxpayer files a petition, Atlanta APS forwards the case to Counsel. After the court makes a determination, the case is sent back to Atlanta APS for ACDS closing action(s).

(1) Within 5 business days of receipt of the request from the ATE, APS inputs the ID theft tracking indicator.

(2) APS uses the Command Codes (CC) and process below to input TC 971, AC 522 on the taxpayer's account:

• Enter CC: ENMOD (SSN), then press ENTER

• Enter CC: REQ77

• CC: FRM77 is displayed for the selected SSN

(3) APS completes the following fields on the CC: FRM77 screen: CC: FRM77 TC 971 AC 501 Field Entries to Input the ID Theft Indicator

(1) APS receives a Form 4844 or Form 3177 from the ATE requesting reversal of the ID theft indicator via a TC 972 AC 522.

(2) APS uses the Command Codes (CC) and process below to input TC 972 and AC 522 on the taxpayer's account:

• Enter CC: ENMOD (SSN), then press Enter

• Enter CC: REQ77

• CC: FRM77 is displayed for the selected SSN

(3) Complete the following fields on the CC: FRM77 screen. CC: FRM77 TC 972 AC 522 Field Entries to Reverse the ID Theft Indicator

(1) Docketed ID Theft cases generally require account adjustments to be completed as an interim adjustment and not at closing.

1. The ATE prepares the documents to request an interim adjustment and forwards them to their ATM for approval via secure e-mail with the subject line "Interim Adjustment-ID Theft." If Counsel submits the request to APS, go to c).

2. The ATM notes the interim adjustment is approved and forwards the secure e-mail with attachments to *AP-COS-APS-EAST-HOL ACDS Update.

3. APS notifies the ATE/Counsel when the interim adjustment has been processed and identifies the 23C date(s) for the transaction(s).

4. APS documents their action(s) in the PEAS Case Activity Record.

5. APS uses PEAS Suspense as appropriate.

6. APS monitors the adjustment(s) until fully posted, then closes the interim action case on PEAS.

(1) The acronyms most commonly used by APS for processing ID Theft cases are provided below:

• 1) BOD/Function AP = Appeals

• 2) Program Name AP = Appeals

• 3) Tax Administration Source IRSID and PNDCLM

(2) Additional ID Theft processing guidance and the complete tables of ID Theft acronyms and definitions, are located in the source IRM 25.23.2, Identity Protection and Victim Assistance - General Case Processing references listed below:

• Exhibit IRM 25.23.2-1, Acronyms and Definitions

• Exhibit IRM 25.23.2-2, IMF Only TC 971 AC 501 - Taxpayer Initiated Identity Theft Case Closure (Tax Related) - TC 971 AC 501

• Exhibit IRM 25.23.2-3, IMF Only TC 972 AC 501 - Reversal of TC 971 AC 501

• Exhibit IRM 25.23.2-10, IMF Only TC 971 AC 522 Tax-Related Identity Theft, Case Status (Initial Claim/Suspicion and Supporting Documents)

• Exhibit IRM 25.23.2-11, IMF Only TC 972 AC 522 - Reversal of TC 971 AC 522

• Exhibit IRM 25.23.2-17, IDTVA Work Matrix

(3) Holtsville APS uses IDRS CC: IDT48/IDT58 to move erroneous refunds to the ID Theft "1545" Account. For additional information on the use and input of these CC’s see: IRM 2.4.61, IDRS Terminal Input, Command Code IDT48/IDR58/RPM48/RPM58/CSO48/CSO58.

(1) When issuing an innocent spouse notice of determination, APS uses procedures similar to those for issuing a notice of deficiency:

1. Check for ATM signatures on all letters

2. Verify the addresses for both taxpayers using ENMOD or INOLES. If different, check file for newest address

3. Check TIN's on all letters

4. Send the letter by certified mail if taxpayer lives within the United States

5. Send the letter by registered mail if taxpayer lives outside the United States

6. Date the letter which must match the date the letter is actually mailed

7. Send the appropriate copies of the letter and schedules to the representative, if applicable

8. Put a copy of the letter and schedules in the administrative file

9. Enter the taxpayer's name, mailing address as it appears on the envelope, and the mailing date in the mailing record

Reminder: APS mails Letter 3289 Final Appeals Notice - to Non-Requesting Spouse to the NRS by regular mail on the same date the determination letter is sent by certified mail to the RS.

(2) Update the Innocent Spouse Tracking System (ISTS):

1. Update the ISTS to stage 16, Appeals determination issued, using the date the letter was mailed as the stage date and input the required ADP Code, IRC Code Section, and Reason Code information provided by the ATE on the Customized Form 5402.

2. See IRM 25.15.14 Innocent Spouse Tracking System for addition information.

(3) Update the following fields on ACDS on both the RS and Joint records:

• SNTYPE = 090A

• SNDATE = date letter is mailed. The letter MUST be mailed on the date on the letter

• On the return level screen, SND = Y

(4) Suspend the administrative file until the RS petitions or default the case at the end of the 90 + 30 day suspense period. The 120 day suspense period is comprised of the 90 days the RS has to petition plus an additional 30 days to allow sufficient time for Appeals to receive notification of the filing of a Tax Court petition. Use the ACDS "Target Date" Calculator from the Utilities Menu to compute the default date. See Exhibit 8.20.6-1, Calculating the Default Date for additional information.

(1) When a determination is made that the requesting spouse will receive full relief from a determined joint liability under the provisions of IRC 6015, and the NRS was notified and given an opportunity to participate in the administrative proceedings, do not issue a notice of deficiency to the requesting spouse.

(2) See the table below for the letters issued, who prepares each letter, and instructions as to the mailing requirements:

(3) APS mails the following letters:Requesting Spouse (RS) and Non-requesting Spouse (NRS) Letters When Full Relief Allowed

(1) When a determination is made that the requesting spouse will receive partial relief from the deficiency and both spouses had the opportunity to participate in the administrative proceedings, the notice of deficiency to the NRS and the RS will show the full amount of the deficiency.

(2) The TCS prepares the statutory notice of deficiency, including Letter 894. The ATE prepares Letter 3288 and Letter 3289. The Letter 894, Notice of Deficiency will be sent to the taxpayers on the same date as the Letter 3288 and Letter 3289.

(3) The ATE prepares and APS sends Letter 3288, Final Appeals Determination - to Requesting Spouse, to the RS by certified mail with Tax Court rights. The final determination letter (Letter 3288) and notice of deficiency will be mailed on the same date, but in separate envelopes.

(4) The following letters must be prepared and issued:Requesting Spouse (RS) and Non-requesting Spouse (NRS) Letters When Partial Relief Allowed to Requesting Spouse

(1) When a determination is made that the requesting spouse will not receive relief from the deficiency (i.e., both spouses are liable for the entire deficiency), the Letter 894, Notice of Deficiency to both the NRS and the RS is required.

(2) The TCS prepares the Letter 894, Notice of Deficiency. The ATE prepares Letter 3288 and Letter 3289. The notice of deficiency must be sent to the taxpayers at the same time as the Letter 3288 and Letter 3289, but in separate envelopes. See IRM 25.15.12, Notice of Determination Under IRC 6015, for additional information.

(3) The ATE prepares and APS sends Letter 3289, Final Appeals Notice - to Non-requesting Spouse, to the NRS by regular mail. The Letter 3289 and Letter 894 must be sent on the same date, but in separate envelopes.

(4) The ATE prepares and APS sends Letter 3288, Final Appeals Determination - to Requesting Spouse, to the RS by certified mail with Tax Court rights. The Letter 3288 and Letter 894 must be mailed on the same date, but in separate envelopes.

(5) The following letters must be prepared and issued:Requesting Spouse (RS) and Non-requesting Spouse (NRS) Letters When Relief is Denied to Requesting Spouse

(1) If both spouses request relief and had the opportunity to participate in the administrative proceedings the statutory notice of deficiency is prepared and issued using the following procedures.

(2) The TCS prepares the Letter 894 and the ATE prepares Letter 3288, Final Appeals Determination - to Requesting Spouse.

(3) APS sends Letter 3288, Final Appeals Determination - to Requesting Spouse, with Tax Court rights, to each RS by certified mail. The Letter 3288 and Letter 894 must be sent on the same date, but in separate envelopes.

(4) The following letters must be prepared and issued: Requesting Spouse (RS) and Non-requesting Spouse (NRS) Letters When Both Spouses Request Relief

(1) If the ASED is about to expire before consideration of the innocent spouse issue can be completed and one or both of the spouses will not extend the statute, the notice of deficiency to the NRS and the RS will show the full amount of the deficiency.

(2) The ATE will request a new WUNO for the innocent spouse case and retain copies of all pertinent documents from the notice of deficiency (income) file. Cross reference the income WUNO and add a cross-reference on the income case to the innocent spouse WUNO. The ATE will continue consideration of the innocent spouse issue while the notice of deficiency is pending.

(3) APS is responsible for "suspending" the notice of deficiency during the suspense period and if a petition to the U.S. Tax Court was filed, APS will use the table below to identify ACDS update and processing actions:If-Then Table for APS Actions When a Tax Court Petition is Filed on an Innocent Spouse Notice of Deficiency

(1) In cases where Appeals issued the notice of deficiency for a joint return, and during the 90/150-day period a spouse mails a Form 8857, Request for Innocent Spouse Relief to Appeals requesting Relief from Joint and Several Liability, APS will pull the case from suspense and return it to the Assigned ATE.

(2) The ATE will take appropriate action(s) and return the administrative file to APS for continued suspense.

(3) If no petition is filed by either taxpayer in response to the notice of deficiency, APS will:

1. Assess the deficiency reflected on the notice

2. Close the case on ACDS and AIMS, if it is controlled on AIMS

3. Recharge the administrative file and forward it and the Form 8857 to Cincinnati Centralized Innocent Spouse Operation (CCISO) for consideration of the relief issue

   Note: The RS and/or NRS have appeal rights depending on CCISO's determination.

(4) If a petition is filed in response to the notice of deficiency, APS will:

1. Close the case to Counsel for trial preparation with closing code 43 on ACDS

2. Send a copy of the Form 8857 to CCISO for consideration of the relief issue, and provide CCISO with the name and address of the Counsel attorney, if known, or the Counsel office, if the name of the attorney is not known

3. Retain a copy of the transmittal in the administrative file for Counsel's information

4. Forward the administrative file to Counsel for Answer/Trial Preparation

(1) For additional online resources see:

• Innocent Spouse Web Page

• IRM 25.15.7, Innocent Spouse Shared Processing Responsibilities

• IRM 25.15.12, Relief from Joint and Several Liability, Appeals Procedures

• IRM 25.15.14, Validating the Inventory Validation Listing (IVL) - Appeals

(1) If an OIC is received after the CDP/EH case has been carded-in, the ATE must submit a request to APS requesting a "New WUNO for the OIC".

(2) The ATE's request to create an OIC WUNO package will include the following:

1. A copy of the related CDP/EH case summary card noted at the top to "Please Create OIC Workunit"

2. Feature Code = DP

3. Cross-reference WUNO for the related CDP/EH case in the NOTE field

4. Offer Amount = NNN (provide the dollar amount of the OIC for APS to enter in the WUpropdOfrAmt ACDS field)

(3) APS will enter the following information on ACDS as provided on the Form 656:

• Taxpayer Name

• Taxpayer Address

• MFT

• Tax Periods

• Offer Amount

• Offer Number

• Received Date of Offer

(4) Upon completion of the ATE’s request, APS will return the completed ACDS Update Request to the ATE via secure email.

(5) See IRM 8.20.5, CDP/EH Offer In Compromise (OIC) Case Carding for related information.

(1) When ready to proceed with offer acceptance, the Appeals Technical Employee (ATE) will submit a request to APS for an AOIC generated Form 7249 on APS Action Request Form, re-titled “Request for AOIC Form 7249”. APS will generate the AOIC Form 7249 according to the following procedures:

(2) For any request that does not have complete information to generate an AOIC Form 7249, APS will request the necessary information in a secure email to the ATE with a five (5) business day response date. If APS does not receive the necessary information by the five (5) business day response date, APS will return the request to the ATE.

(1) Offers in Compromise (OIC) on liabilities of $50,000 or more, are subject to Counsel's review. When the ATM signs and dates the Form 7249, Offer Acceptance Report, indicating preliminary approval of the OIC, the following procedures must be followed to ensure ACDS accurately reflects the location and status of the case:OIC for Liability > $50,000 To Counsel for Review

(2) On a monthly basis, APS management, or its designated employees will run the DCOTHER follow-up list to determine if Counsel has returned the OIC case.

(3) When the OIC case is returned by Counsel, the following procedures must be followed to ensure ACDS accurately reflects the location and status of the case:OIC Returned to Appeals From Counsel - Review Complete

(1) APS will add FEATRCD "TL" to the original WUNO.

(1) After the original WUNO is updated with FEATRCD "TL", APS will select "Input one TM on case for this TL Case".

1. AOC - use the drop down menu to choose the "Current Area AOC", this is the Area AOC where the team member is located.

2. TIN - enter a separate modifier (A through J) at the end of the TIN for each team member.

3. TYPE - enter "REF" to identify this as a team member case.

4. FEATRCD - enter "TM" to identify this as a team member case.

5. KEYCASE - enter the information from the team leader case.

6. Return Information - do NOT enter any return level information for the TM REF ACDS record.

(1) Appeals may receive a TEFRA investor closing package from the CTF consisting of documents showing the resolution of the TEFRA partnership issues (decision document, defaulted FPAA or settlement agreement form), a Form 4605A, Examination Changes - Partnerships, Fiduciaries, Small Business Corps. & Domestic Intl. Sales Corp. (Unagreed and Excepted Agreed) and a Form 886Z, TEFRA Partners' Shares of Income showing the corrected amount on all issues for the investor under Appeals jurisdiction.

(2) If APS receives a TEFRA investor closing package from the CTF and the ACDS case record has a CODE = TFINV, APS will request a TSUMYI and update ACDS to reflect the one-year statute date and remove the TFINV code. APS will forward the TEFRA investor closing package and the updated case summary card, if appropriate, to the ATE or ATCL.

(3) When penalties or other affected items are applicable and the investor does not agree, the ATE may request that APS issue a statutory notice of deficiency to the investor. APS will update the related non-key case summary card on ACDS to reflect the issuance of the SND. The case will remain a reference return at this time.

(1) After the settlement is approved by the Appeals Team Manager (ATM), the case (including the partner agreement forms and transmittal letters) are transmitted to APS.

(2) APS mails the transmittal letter and two copies of the agreement form to each partner. Copies of the transmittal and agreements are included in the administrative file. The administrative file is returned to the ATE.

(1) When a Non-Docketed TEFRA case cannot be settled, several additional steps must be taken by the ATE, ATM, Appeals TEFRA Team (ATT) ATM, and APS TEFRA Team prior to entering an ACAPDATE on the Non-Docketed TEFRA ACDS Record. The:

1. Field ATM notifies the ATT ATM that an FPAA will be issued on the Non-Docketed TEFRA case and each tax period requires a separate ACDS record and a separate FPAA

2. ATT ATM notifies the Laguna Niguel APS TEFRA Team to update the Non-Docketed TEFRA WUNO keeping the earliest (oldest) ax period, remove the other unagreed tax periods and create a new WUNO for each of the other unagreed tax periods in the current WUNO

3. APS TEFRA Team follows current IRM 8.20.5, TEFRA Key Case Carding to establish a new and separate WUNO for each unagreed tax period on which a separate FPAA will be issued.

Example: An unagreed Non-Docketed TEFRA WUNO includes three tax periods:Table Showing the ACDS Updates for Each Tax Period When an Unagreed TEFRA WUNO Must be Updated and a New WUNO Must be Created for Each Additional FPAA Tax Period

Tax Periods in Non-Docketed TEFRA WUNO	APS TEFRA Team Updates ACDS	Once FPAA is Issued:
200912	Oldest tax period remains with original WUNO and all later tax periods are removed from this WUNO)	Field ATM Enters ACAPDATE APS TEFRA Team Enters Closing Code 13
201012	Creates a new Non-Docketed TEFRA WUNO for this tax period	Field ATM Enters ACAPDATE APS TEFRA Team Enters Closing Code 13
201112	Cards a new Non-Docketed TEFRA WUNO for this tax period	Field ATM Enters ACAPDATE APS TEFRA Team Enters Closing Code 13

4. APS TEFRA Team notifies the ATT ATM once all new WUNO’s are created.

5. ATT ATM notifies the Field ATM to enter the ACAPDATE on the original unagreed TEFRA WUNO and also on each of the newly created TEFRA WUNO’s The ACDS Closing Code for both the original WUNO and the NEW WUNO’s is "13"

6. ATT ATM will determine if the Centralized TEFRA Function (CTF) or Appeals will issue the FPAA

7. ATT ATE coordinates preparation of the FPAA package

8. APS updates both the Original and the NEW TEFRA ACDS WUNO’s once the FPAA’s are issued and suspenses the administrative file(s) for 150 days + 30 days = 180 days.

(2) The AIMS control for each of the tax periods in FPAA suspense remain in a Non-Docketed AIMS Status until one of the following actions occurs:

• Agreement is received, or

• FPAA Defaults, or

• Tax Matters Partner (TMP) files a petition with the United States Tax Court.

(3) On the date the TEFRA WUNO’s are suspensed due to the issuance of the FPAA, the APS TEFRA Team must ensure that each of the systems contain the correct information for each of the tax periods:

• ACDS - Each unagreed tax period has a separate WUNO with ACAPDATE, FPAA entries, and CC 13

• AIMS - Each unagreed tax period is in AIMS Status 80 Non-Docketed

• PCS - Each unagreed tax period is linked with correct information reflected in the PCS fields

(1) A petition may be filed with the Tax Court, U.S. Court of Federal Claims or a U. S. District Court. The procedures in this section apply only to cases petitioned to the United States Tax Court (USTC). If a petition is filed with either the U.S. Court of Federal Claims or a U. S. District Court, see IRM 8.20.6.32.6.

(2) When the TMP files a petition it is uploaded to the Electronic Docket Listing. The APS DIMS team notifies the Laguna APS team to retrieve the key case administrative file, check the petition for accuracy, update ACDS and AIMS as described below and forward the case file to Counsel for answer.

(3) Since a separate FPAA was issued for each tax period Laguna APS only updates the specific ACDS and AIMS record the for tax period(s) petitioned. For each petitioned tax period, Laguna APS updates the ACDS case level information as follows:

1. Docket number

2. Counsel office

3. Attorney

4. Closing code 43

5. Date Closed for trial preparation to Counsel

6. TODATE is the date the case forwarded to Counsel

Note: When Closing Code 43 is input:
✓ ACDS Action field DCJUR automatically populates
✓ STATDATE field is blank
✓ Statute CODE DOCKT automatically populates

(4) APS uses CC:AMSTUB to update the AIMS Status for each tax period to "82."

(5) When multiple petitions have been filed, see IRM 8.20.6.32.5, TEFRA Interim Processing Steps - Multiple Petitions Filed.

(1) When the Tax Matters Partner (TMP) files a separate petition for each tax period in a multi-period WUNO, the APS TEFRA Team must notify Counsel when multiple petitions are filed for the same TEFRA taxpayer to ensure the related docketed cases are assigned appropriately within Counsel. Request Counsel identify the controlling docket number.

(2) Attach the email to Counsel with Counsel’s response to the controlling WUNO.

(3) Since each TEFRA tax period has it’s own WUNO, (created at the time the FPAA(s) were issued) each WUNO will have it’s own Docket Number. Identify the controlling docket number on each related petitioned WUNO in the Note field.

(4) Laguna APS must also request that CTF add the applicable docket number to each PCS record.

(5) When Appeals is notified of the controlling docket number, all other related docket numbers will be dismissed. Upon receipt of the TLCATS Transmittal with dismissal information, APS updates ACDS as follows:

• ACTION CODE: "ORDENT"

• TODATE: The order entered date as indicated on the TLCATS transmittal

(6) When copies of the dismissals are received, APS closes the dismissed docketed cases on ACDS as follows:

1. CLOSING CODE = 11 if dismissed, Appeals-issued FPAA

2. CLOSING DATE = date closed

3. ACTION CODE = ACKCLS

4. TODATE AND FROMDATE = date closed

5. NOTE: "Dismissed-multiple petitions filed, controlling DKT#XXXX-XX"

(7) Place copies of the dismissals in the TEFRA partnership administrative file.

(1) Under the unified proceedings, the TMP may file a petition directly with either the U.S. Court of Federal Claims or a U. S. District Court and gain direct access to that court and the Department of Justice (DOJ) acquires jurisdiction of the case. Appeals neither retains, nor re-acquires jurisdiction of a case for which a petition is filed in one of these courts.

(2) If the TMP does not file a petition, any notice partner or 5-percent group may file a petition with any of the courts within 60 days after the expiration of the FPAA 120 day period. The additional 60 days results in a total number of 180 days for FPAA Suspense.

(3) The ATT ATM will provide the Laguna APS Team with instructions for updating, closing, and transmitting the administrative file when multiple petitions are filed with the USTC, or with a court under DOJ jurisdiction. See:

• IRM 8.20.6.32.6.1, Authorization to Send Administrative File

• IRM 8.20.6.32.6.2, Administrative File Routing for Closing Package Preparation