Employees in the Accounts Management (AM) organization respond to taxpayer inquiries and phone calls, as well as process inquiries and other internal adjustment requests related to math errors.

Authority for these procedures is found in the following sections of the Internal Revenue Code (IRC) and their corresponding Treasury regulations.

The Director of Accounts Management is responsible for monitoring operational performance for all the Accounts Management campuses.

The Operations Manager is responsible for monitoring operational performance.

The Team Managers and Leads are responsible for ensuring employees have the tools to perform their duties.

Employees are responsible for following the instructions contained in this IRM and maintaining updated IRM procedures.

Program Reports: The program reports provided in this IRM are for identification purposes for the Accounts Management Contact Representatives (CRs) and Tax Examiners. For reports concerning quality, inventory, and aged listings, refer to IRM 1.4.16, Accounts Management Guide for Managers. The overage report can be viewed by accessing Control Data Analysis, Project PCD, and are on the Control-D/Web Access server, which has a login program control.

Program Effectiveness: Program effectiveness is determined by Accounts Management’s employees successfully using IRM guidance to perform necessary account actions and duties. The following are used to ensure program effectiveness:

Annual Review: Review the processes included in this manual annually to ensure accuracy and promote consistent tax administration. This may be included under responsibilities for a manager.

Federal Managers Financial Integrity Act (FMFIA) of 1982 requires federal agency executives periodically review and annually report on the agency’s internal control systems.

The Government Accountability Office (GAO) sets forth the standards for an effective Internal Control in the Federal Government.

Systemic controls are embedded in the xMend Integrated Automation Technologies (IAT) tool and the Integrated Data Retrieval System (IDRS).

For a comprehensive listing of acronyms, refer to the Acronym Database. The acronyms below are some of the acronyms found in this IRM.

Refer to IRM 1.4.16.1.6, Related Resources, for information on related resources that impact internal controls.

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 Taxpayer Bill of Rights.

The following are not considered mathematical/clerical errors for purposes of the 60–day abatement request and a math error (- G freeze) should not be set:

The following sections provide research and general procedures for math errors. For more specific processing procedures, refer to IRM 21.5.4.4, Math Error Procedures Processing.

Research IDRS to identify math error codes input on a taxpayer’s account during original return processing. There are several IDRS Command Codes that display math error notice codes: CCs RTVUE, BRTVU, TXMOD, TRDBV/BRTVU and IMFOLR/BMFOLR. For a description of IMF/BMF math error notice codes refer to Document 6209, Notices and Notice Codes.

When a taxpayer requests an abatement with or without substantiation within 60 days, the IRS must abate the assessment. For abatement requests without substantiation, after abating the assessment treat the response as a protest and refer the case to Exam Classification. Exam Classification makes a determination, and if the taxpayer disagrees, the taxpayer has the opportunity to appeal the determination prior to the issuance of a notice of deficiency. If a notice of deficiency is issued, the taxpayer has the opportunity to file a petition with the United States Tax Court.

An abatement request may be written or oral.

Do not recompute Estimated Tax (ES) penalties because the ES penalty computation is based on the original tax shown on the present or preceding year tax return.

Taxpayers may file amended returns and not address the math error issue:

Determine whether the original return is required. When requesting the original return from files in response to a math error protest, include the following remarks, "Request for Math Error Protest Case" on Form 2275.

Whenever a math error is identified and there are 90 or less days left to the assessment statute expiration date (ASED), contact the Statute function.

If the taxpayer disagrees with the math error notice, determine under which category to process the protest. The two types of math error categories are:

Substantiated Protest occurs when a taxpayer provides supporting documentation either orally or in writing, which proves the IRS's math error calculation incorrect. Refer to IRM 21.5.4.4.4, Math Error Substantiated Protest Processing.

Unsubstantiated Protest occurs when a taxpayer fails to provide supporting documentation either orally or in writing to prove the IRS's math error calculation is incorrect. Refer to IRM 21.5.4.4.5, Math Error Unsubstantiated Protest Processing.

If, while processing an amended/duplicate return or a taxpayer’s response to a Letter 12C, Individual Return Incomplete for Processing, (IMF notice) or certain BMF notices, a math error is detected, follow the procedures below to set the initial math error on the module:

When you identify a math error and examination criteria (see Exhibit 21.5.3-1, Claim Processing with Examination Involvement) are present:

When the taxpayer agrees with the math error notice in writing, research Integrated Data Retrieval System (IDRS) and route the correspondence to the Examination Function shown on CC AMDISA for association with the case, refer to IRM 21.5.10-2, AIMS STATUS CODE GUIDE - CAMPUS CASES, for guidelines. For Correspondence Imaging Inventory (CII) cases, refer to IRM 21.5.1.5.2, Cases Currently Assigned in CII.

Correction of a math error on an original filed return is not an amended return or claim for which the amended claims date is required. Do not use an amended claims date when correcting a math error posted with the original return.

If written substantiation is necessary to reverse the math error, the taxpayer may be able to fax the information. You must determine if the documentation can be faxed while you are on the telephone. If the taxpayer can fax, provide them with your fax number. Refer to IRM 21.5.2.4.3, Adjustments Requiring An Amended Return or Taxpayer Documentation, for additional information on accepting faxed documentation. If the taxpayer cannot fax immediately, advise them to call back when they are able to fax or, if unable to fax, they may submit the request and supporting documentation to the address on the notice. If the taxpayer states they misplaced their notice and requests the address to submit documentation to, provide the taxpayer with the mailing address for their processing center. Refer to Where to File Individual Tax Returns.

If a taxpayer is responding to a math error and claiming an additional change to the original return, two separate adjustments are necessary regardless of whether the 45–day interest free period is met. One adjustment is made without the amended claims date (for the math error issue) and one with the amended claims date, if applicable (for the non-math error issue). See IRM 21.5.3.4, General Claims Procedures, or IRM 3.11.6.4.5.3, Amended Claims Date, for more information. Use a HC 4 on the first adjustment and the appropriate PDC on the second adjustment to ensure the first adjustment posts first. Refer to IRM 21.5.2.4.17, Posting Delay Code (PDC), for more information.

When a reply is received after 60 days (refer to IRM 21.5.4.3, General Math Error Procedures Overview) from the notice date and there is no –G freeze on the module:

Resolve math error inquiries received within the 60-day period as follows:

Take the following actions when the taxpayer agrees with the math error:

A Substantiated Protest occurs when the taxpayer provides supporting information to indicate the math error condition is not correct. For a Substantiated Protest:

If an open TC 420 (and no TC 576 or TC 570) is present on the module, regardless of the AIMS Status, and the taxpayer submits supporting information to correct the math error condition:

When an open TC 420 and the account contains a TC 576 or TC 570, and the taxpayer files supporting information to correct the math error condition:

An Unsubstantiated Protest occurs when a taxpayer does not provide supporting documentation to correct the math error condition. If, after explanation, the taxpayer does not agree with assessment, explain the taxpayer's abatement rights, and the consequences of abatement (the case may be referred to Examination and the refund may be held). Ask whether the taxpayer wishes to request abatement. An abatement request may be written or oral. The taxpayer is entitled to abatement even if they do not substantiate. After abatement, any assessment must be made pursuant to deficiency procedures, as below in para (4) and (5).

If the amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, (refer to IRM 21.5.1.4.12, Tolerances) do not follow the procedures shown below. Adjust the account. See IRM 21.6.3.4.2.14.2, RRC Taxpayer Notice Codes (TPNC), prior to addressing the Recovery Rebate Credit math error.

If the taxpayer requests abatement, the following actions below are required. Process steps below in order to input unsubstantiated math error protest for Exam to process:

Follow the steps below to input the abatement the taxpayer requested. If you reset the -G freeze, a PDC of 1 is required on this adjustment.

When the protest is unsubstantiated and the module is open on AIMS, process as follows:

If the abatement is on an Exempt Organization (EO) return, contact the EO Examination Classification Site. Refer to IRM 21.7.7.6.16, EO Claim Procedures, for the address. Inform them that a math error abatement requiring reassessment has been made. Give them the taxpayer's name, form number, master file tax (MFT), tax period, name control, employer identification number (EIN), and the amount. Classification sites input TC 424 to secure these returns.

Multiple Math Error Responses could include agreements and protests.

Refer math error inquiries where the taxpayer filed an original return with Form 8379, Injured Spouse Allocation, (TC 150, BS 92), as follows: