Employees in the AM organization respond to phone calls as well as process amended returns, claims, duplicate filed returns, loose forms, correspondence, etc., and address all other internal adjustment requests.

Refer to IRM 1.2.1.13, Policy Statements for Customer Account Services Activities, for information.

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.

The Chief, Taxpayer Services oversees all policy related to this IRM which is published annually.

The Accounts Management Director oversees the instructions to the employees contained in the IRM content.

Accounts Management Policy and Procedures IMF (PPI) Tax Analyst(s) oversees the content in this IRM and acts as a point of contact for all Accounts Management sites.

Managers and leads ensure compliance with the guidance and procedures in this IRM for general claims procedures.

Employees resolve general claims procedure requests following procedures in this IRM.

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

Program Effectiveness: Program Effectiveness is measured and controlled through:

Program Controls: Goals, measures and operating guidelines are listed in the yearly Program Letter. Quality data and guidelines for measurement are referenced in IRM 21.10.1, Embedded Quality (EQ) Program for Accounts Management, Campus Compliance, Field Assistance, Tax/Exempt/Government Entities, Return Integrity and Compliance Services (RICS) and Electronic Products and Services Support.

See the table below for a list of acronyms commonly used in this IRM. For a comprehensive listing of any IRS acronyms, refer to the Acronym Database.

Related resources for this IRM include (list is not all inclusive):

Submission Processing (SP) controls amended returns (Form 1040-X, Amended U.S. Individual Income Tax Return) on IDRS. Employees answering questions on the status of the taxpayer's amended return are able to provide receipt confirmation or adjustment status within 5-7 days of receipt of the form. This enables the employee to see the taxpayer’s amended return on IDRS.

SP controls the Form 1040-X to a specific group’s IDRS number until the case is adjusted or routed by the SP Tax Examiner. See IRM 3.11.6.3, Controlling CII Cases on the Correspondence Imaging Inventory (CII) System, for specific group IDRS numbers and non-referral information. SP inputs a Transaction Code (TC) 971 and Action Code (AC) 120 as part of the process.

If the SP Tax Examiner (TE) routes the Form 1040-X to another function, the SP TE enters TC 971 with the appropriate AC (e.g., 971(012) - forwarded to Collections, 971(013) - forwarded to Examination, 971(015) - forwarded to Underreporter/AUR). SP closes the open control using category code MISC.

If the Form 1040-X is missing forms, schedules, signature or other information, the Form 1040-X is returned to the taxpayer with the appropriate "C" letter or Form 8009-A, We Need More Information to Process Your Amended Return. The account reflects a TC 971 and AC 270. The date of the AC 270 is the date the action occurred returning the Form 1040-X. If three weeks have passed from the date of the AC 270 and the taxpayer has not received the rejected form, inform the taxpayer to refile the completed amended return. A completed Form 1040-X must include all schedules, forms and signature. SP does not have access to AMS or the Correspondence Imaging Inventory (CII) and does not have the capability of leaving a case note.

The activity field in the IDRS control base contains pertinent information on the status (e.g., SP batch information).

On cases meeting AM criteria, SP routes the Form 1040-X to the Image Control Team (ICT) for scanning into CII. A TC 971 AC 010 is automatically added by CII when the IDRS control is established.

The "Where's My Amended Return” (WMAR) application provides automated online and toll-free telephone services. Advise the taxpayer that the best way to get the most current information about their amended return for the current tax year and up to three prior tax years is by using the "Where's My Amended Return?" (WMAR) application. Access is available online from the home page on IRS.gov. If the taxpayer does not have access to the internet, WMAR can be accessed by telephone at 866-464-2050 (must use a touch-tone phone). Access is fast, accurate, and available 24 hours a day, 7 days a week from any computer with internet access, and the information provided is specific to each taxpayer who uses the tool. By entering their SSN/ITIN, Date of Birth and Zip Code into the WMAR application, the taxpayer can find out the status of their Form 1040-X Amended Return(s). WMAR is designed to track the status of amended returns as they are processed. This provides the taxpayer with a consistent message and reduces the number of amended return status calls. IDRS transaction codes (TC) (e.g., 971/AC XXX, 29X, 846) are used to update WMAR messages.

WMAR does NOT provide the status of Form 843 Claims, carryback claims (which are filed on a Form 1040-X), an original Form 1040 marked as amended and worked as a CP 36, and amended returns with a foreign address.

If the amended return requests a tax increase or credit decrease and:

If more than 90 days (from today) remain on the ASED and the amended return requests a net zero change (TC 290 for .00), input the adjustment even without all required elements. Advise the taxpayer of the action taken.

Call or write the taxpayer requesting any missing information using the appropriate letter, such as the Letter 178C, Amended (Unnumbered) Return Incomplete for Processing, or Letter 324C, Amended (Numbered) Return Incomplete for Processing: Form 1040-X, 1120-X. Close the case after issuing the necessary correspondence.

If/When the taxpayer responds, the response is treated as a new case. Review the response to ensure no further adjustments are necessary. If no additional changes are needed, associate the response with the previous adjustment document. Advise the taxpayer of the action taken.

Reject incomplete claims or amended returns requesting tax decreases or credit increases, except as outlined in (2) below. Refer to IRM 21.5.1.5.6, Incomplete CII Claims, for additional information on processing incomplete CII claims.

If the amended return is reporting a tax decrease or credit increase comprised of additional income and additional deductions, but does not include the necessary schedules/documentation for the deductions, process the claim as a potential tax increase as follows:

Unnumbered claims or amended returns can be returned to the taxpayer with the request for missing information.

When rejecting a claim or amended return:
If not returning the claim to the taxpayer

Missing signature information is shown in the table below:

Take care when processing statute year claims to prevent erroneous abatements and to prevent the generation of RSED-STAT transcripts. Details regarding the 2 and 3-year time frames for submitting a claim are referenced in IRM 25.6.1.10.3.3.2, Limitations on the Amount of a Claim.

Refer to IRM 25.6.1.10.3.1, Claims for Credit or Refund - Processing Directions, for claims or amended returns received after the RSED has expired. Special handling is required for any refund claims (tax decreases or credit increases) received for the tax years 2016 and 2017, where the period of limitation to file claims for credit or refunds were extended.

If additional information is necessary to process a tax decrease/no tax change claim or amended return; and the Refund Statute Expiration Date (RSED) on the account expires within 180 days from today or has expired, but was received prior to the RSED, follow the steps below:

If the taxpayer submits the information after the RSED but within 45 days (75 days for overseas taxpayers) of the IRS request, then allow the claim as referenced in IRM 25.6.1.10.3.1.2, Submission of Additional Information Necessary to Make a Determination on the Claim After the RSED.

If there is no reply or the request for additional information is not received by the requested response date and the RSED has expired, disallow the claim. See IRM 21.5.3.4.6.1, Disallowance and Partial Disallowance Procedures.

If there is no reply and the RSED is not expired, follow the "No Consideration" procedures as outlined in IRM 21.5.3.4.6.3, No Consideration Procedures.

The taxpayer must sign the claim or amended return requesting an adjustment; or include a valid Power of Attorney (POA) pursuant to Treas. Reg. 1.6012-1(a)(5) or Treas. Reg. 301.6402-2(e). An electronically signed, printed or stamped signature on a paper-filed individual amended return is not acceptable. A hand-printed (not typed) signature is acceptable. Both spouses must sign if the adjustment relates to a joint return. See IRM 21.5.3.4.4.1, Special Handling of Signature Requests, for exceptions. Refer to the table in IRM 21.5.3.4.2, Tax Decrease or Credit Increase Processing, for acceptance of faxed signatures.

Signature requirements for penalty abatements are referenced in IRM 20.1, Penalty Handbook.

Attempt to obtain the signature when an amended return or inquiry requesting a tax increase or a net zero change is received without one. These are not treated as claims. Refer to IRM 21.5.3.4.1, Tax Increase or Credit Decrease Processing.

Internal Revenue Procedure, Rev. Proc. 2005-39, outlines the use of facsimile signatures by corporate officers or duly authorized agents when filing certain employer information returns. The facsimile signature may be in the form of a rubber stamp, mechanical device, or computer software program. The Revenue Procedure includes the following tax forms:

Master File verification is required on all amended returns prior to:

Master File verification requires, but is not limited to, the comparison of the Adjusted Gross Income (AGI-Line 1), Taxable Income (TXI-Line 5), and Total Tax (TC 150 -Line 11) on Form 1040-X, in Column A with CC IMFOL or CC TXMOD.

Refer to IRM 21.5.1.4.12, Tolerances. Math verification is required when:

Math verification includes doing the following:

If math verification is required and an error is discovered, re-compute the correct amounts using the information supplied and IDRS research. After "perfecting" the total tax and:

Verify all income-based items (e.g., earned income tax credit, additional child tax credit, taxable social security benefits, Schedule A deductions, etc.,) on claims involving an income change. Recalculate the items when the income changes, even if the taxpayer does not address them. Advise the taxpayer of any resulting change. This is not a Master File check or math verification. This must be done even if the tax or credit adjustment is less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Request technical assistance from the Examination Classifiers if a claim cites reliance on a court case, the Internal Revenue Code, Internal Revenue Regulation, Revenue Ruling, Revenue Procedure, or other legal issue, if needed, and written guidance is not already available for the issue. See IRM 21.5.3.4.7, Processing Claims and Amended Returns With Examination Involvement, and IRM 21.5.3-2, Examination Issues, for additional information.

If discrepancies exist between the taxpayer’s reported liabilities on an overpaid/amended Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts, and the related accounts, the case is automatically eligible for Examination. Route your recontrolled case to Examination using local procedures. Close your control base on IDRS.

Review claims and amended returns that are processable to determine if the taxpayer's request is allowable. Unallowable claims and amended returns are disallowed, partially disallowed, or not considered, based upon the facts and circumstances of each case.

When reviewing the claim or amended return:

A request for abatement is a request for reduction of tax, penalty, and interest that has not been paid. This includes penalty adjustment requests. Do not follow no consideration procedures and do not deny requests solely for nonpayment of tax. Process the claims using normal adjustment procedures. If Examination (CAT-A) criteria apply and the request for abatement contains sufficient documentation/explanation to support the adjustment, forward the request to Exam (CAT-A) for consideration.

Review all claims and amended returns for Examination involvement. Exam involvement may include:

If the claim or amended return contains CAT-A criteria and -L freeze (TC420/424) is not present, refer to CAT-A.

Technical questions or assistance requests may be referred to local Exam Classification when an issue is questionable, but does not meet CAT-A criteria. Refer to Exhibit 21.5.3-2, Examination Criteria (CAT-A) – General, for additional information on requesting technical assistance.

AM retains an open control in background (B) status on all cases referred to Examination. Update the activity code to "CAT-A" to identify the location of the claim and status.

If the case is being forwarded to Exam (this includes Form 8862, Information to Claim Certain Credits After Disallowance)

Research IDRS using CCs TXMOD, AMDISA, IMFOLT, and BMFOLT, to determine whether a case is established on AIMS. If the case is under audit, a -L freeze is present. See Exhibit 21.5.3-1, Claims Processing with Examination Involvement, for processing instructions. Follow these procedures even if an open IDRS control base to a CI-FDC campus is present (Do not route to CI).

Refer to IRM 21.7.7, Exempt Organizations and Tax Exempt Bonds, for procedures.

See IRM 21.5.9, Carrybacks, for instructions on processing carryback/carryforward claims and applications. Employees not trained on carryback cases refer to IRM 21.5.9.2.1, Identifying Carryback Applications and Claims, and IRM 21.5.9.2.2, Identifying Carryforward Claims, to determine if the case should be reassigned to Carrybacks. If the case should be reassigned, see SERP - AM Site Specialization Temporary Holding Numbers - Who/Where.

A carryback is a deduction that can be applied or carried to offset tax or taxable income in a preceding taxable year. A taxpayer who has an overpayment of tax as a result of a Net Operating Loss (NOL), Net Capital Loss (NCL), Unused Credits, or a Claim-of-Right adjustment can file an application or claim, also referred to as a TENT or RINT, for adjustment or refund.

Tentative carryback adjustments are filed on Form 1045, Application for Tentative Refund, and Form 1139, Corporation Application for Tentative Refund. They include restricted interest claims that may otherwise be filed on a Form 1040-X, Amended U.S. Individual Income Tax Return, Form 1120-X, Amended U.S. Corporation Income Tax Return, an amended Form 1041, U.S. Income Tax Return for Estates and Trusts, Form 1120-C, U.S. Income Tax Return for Cooperative Associations, and Form 990-T, Exempt Organization Business Income Tax Return (and proxy tax under IRC 6033(e)).

Taxpayers may carry a NOL or excess business credit forward to the current tax year. Taxpayers eligible to carryback a NOL may elect to forgo the carryback period and carry the entire NOL forward. Most Carryforwards do not require special processing guidance. To determine if the Carryforward should be worked by the carryback team, refer to IRM 21.5.9.2.2, Identifying Carryforward Claims. If the case should be reassigned, reassign the case using SERP - AM Site Specialization Temporary Holding Numbers - Who/Where.

Rev. Proc. 2015-40 provides the procedures which allow a U.S. taxpayer to request assistance from the U.S. Competent Authority on issues arising under a tax treaty between the U.S. and a foreign country.

The Deputy Commissioner (International), LB&I acts as the U.S. competent authority charged with administering the provision of tax treaties, interpreting and applying the treaties, and reaching mutual agreements in specific cases. The U.S. competent authority conducts the competent authority process through two offices, the Advance Pricing and Mutual Agreement Program (APMA) and the Treaty Assistance and Interpretation Team (TAIT). APMA has primary responsibility for cases arising under the business profits and associated enterprises articles of U.S. tax treaties. TAIT has primary responsibility for cases arising under all other articles of U.S. tax treaties. TAIT also has primary responsibility for cases arising under U.S. tax treaties with respect to estate and gift taxes. APMA and TAIT each can consider cases arising under the permanent establishment articles of U.S. tax treaties, and both offices coordinate and collaborate on such cases and on any other cases as appropriate.

Send written requests for, or any inquiries regarding, competent authority assistance for APMA or TAIT to:
For request to APMA:
Deputy Commissioner (International)
Large Business and International Division
1111 Constitution Avenue, NW
Washington, DC 20224
SE:LB:IN:ADCI:TPO:APMA:M3-370 (Attention: APMA)

For request to TAIT:
Deputy Commissioner (International)
Large Business and International Division
1111 Constitution Ave., N.W.
Washington, DC 20224
SE:LB:IN:ADCI:TAIT:M4-365 (Attention: TAIT)

Direct any questions regarding Competent Authority requests to the attention of APMA or TAIT, as appropriate, at the above address.

Generally, non-resident aliens or foreign corporations must contact the Competent Authority in their foreign government with their inquiries.

An IRS employee prepares a return under IRC 6020(b) when a taxpayer fails to file. The taxpayer is given the opportunity to file a valid voluntary return to correct the proposed assessment, or to agree to the proposed assessment. Subsequent posting of the taxpayer's original return creates a duplicate filing condition. Route Substitute for Return (SFR) cases prepared under IRC 6020(b) to the Collection Function, unless the account reflects examination involvement.

If the case reflects examination involvement (e.g., -L freeze, regardless of AIMS status), do not route to Examination. Refer to IRM 21.5.3.4.10.1, Non-Filer Returns, for procedures on how to adjust the account.

If the case does not reflect examination involvement, adjust the account to the taxpayer's figures. Do not route to Examination.

Taxpayers file Form 8546, Claim for Reimbursement of Bank Charges, when they have been charged for erroneous levies placed on their accounts or claim reimbursement checks.

If an inquiry is received, send the taxpayer a Form 8546, Claim for Reimbursement of Bank Charges. Use the appropriate "C" letter and close your case unless there are other issues to address.

For further information, refer to IRM 3.17.10.5, Reimbursement of Bank Charges Due to Service Loss or Misplacement of Taxpayer Checks, IRM 5.11.4.9, Reimbursing Bank Charges Because of Erroneous Levies, and IRM 5.19.6.12.7, Erroneous Levy, Reimbursement of Bank Charges.

Category B Criteria applies to claims for the Form 1120 series (except Form 1120-IC DISC), Form 1041, Form 1041-N, and Form 1041-QFT that have a refund of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and do not meet Category A criteria. Input Category B adjustments with:

Exempt Organizations (EO) and Employee Plans Master File (EPMF) claims are not subject to Category B criteria. See IRM 21.7.7.6.16, EO Claim Procedures, for other EO claim procedures. See IRM 21.5.11, Employee Plan Accounts, for Employee Plans (EP) claim procedures. These are all worked in Ogden.

When an unprocessed return is received as a taxpayer inquiry and no return is posted, forward the return to be processed as an original return. If the taxpayer's figures are incorrect, a notice is generated.

When the return is posted and the taxpayer submits a corrected return, input the appropriate adjustment, provided enough information is available.

Give the following information to taxpayers calling or writing about the filing of a claim/request citing the May Department Stores v. U.S. or Sequa Corp. v. U.S. interest cases:

These claims/requests are processed following the information outlined in IRM 20.2.5.7.2, Rev. Rul. 99-40 and Credit Elects (May/Sequa).

IRC 6621(d) allows for the netting of credit and debit interest during time periods where a taxpayer had overlapping credit and debit interest accruals between two or more tax modules.

If the taxpayer has made a request for the application of the net interest rate of zero for interest accruing before October 1, 1998, then that taxpayer does not have to make a separate request for the portion of the overlapping period identified in that request that impacts interest for periods beginning after July 22, 1998 (e.g., interest accruing on or after October 1, 1998). See Rev. Proc. 2000-26.

Certain items submitted by taxpayers must be referred to other functions for additional review and action.

The remaining subsections provide information on various other inquiries and adjustments.

To assist individuals who have no tax return filing requirement with receiving their Economic Impact Payments (EIP) timely, the "Free File Fillable Form" product was modified to capture minimal individual information designed to determine EIP eligibility and issue payment. Individuals with no tax filing requirement were encouraged to use the Non-Filers: Enter Payment Info Here Tool on IRS.gov to provide their Name, SSN, Address, Dependent and Banking information. The submission of this information through the Non-Filers Tool created a basic 2019 Form 1040 filing for the taxpayer. In some cases, individuals with a TY 2019 tax obligation erroneously used the Non-Filers Tool to quickly provide banking information for their EIP. Because the submission of information using the Non-Filers Tool was a Form 1040 filing, the erroneous use of the Non-Filers Tool made it impossible for these individuals thereafter to e-file their accurate 2019 tax return. Taxpayers affected by this issue were instructed to file a paper Form 1040, U.S. Individual Income Tax Return, with "Amended EIP Return" noted at the top center of the return. Amended EIP Returns are processed as superseding returns following normal procedures as outlined within IRM 21.6.7.4.10, Superseding Returns, ensuring the following are addressed:

Taxpayers have the option to electronically amend current tax year and two prior year Form 1040 and Form 1040-SR returns that were originally e-filed through the Modernized e-File Return (MeF) application. The CII cases created by Account Management Services (AMS) are automatically segmented between SP and AM. Review the amended return documentation via the MeF Return Request Display (RRD) application. CR's can identify which return on RRD contains the amended return documentation by locating the document with a literal “A” in the DLN column. Refer to IRM 21.2.1.22, Modernized e-file (MeF/TRDB), and IRM 21.2.2.4.4.9, Modernized e-File Return Request Display (RRD), for additional information.

These cases can be identified on IDRS by control base category codes. The following category codes are assigned to AM:

The CII cases created for these amended returns do not contain a digital image of the amended return. The entry of "1" is still required in the CIS IND> field on CC ADJ54 for these CII cases. See IRM 21.5.1.5.1, CII General Guidelines.