25.25.9 Revenue Protection Prisoner Lead Procedures 25.25.9.1 Program Scope and Objectives 25.25.9.1.1 Background 25.25.9.1.2 Program Management and Review 25.25.9.1.3 Authority 25.25.9.1.4 Responsibilities 25.25.9.1.5 Acronyms 25.25.9.1.6 Related Resources 25.25.9.2 Prisoner Lead Processing Overview 25.25.9.2.1 Prisoner Lead Mailbox Procedures 25.25.9.3 Prisoner Lead Clerical Sort and Routing of Initial Receipts 25.25.9.4 General Agreement on Tariffs and Trade (GATT) Returns 25.25.9.5 Prisoner Lead Processing Returns (Kansas City) 25.25.9.6 Prison Leads Involving Refund Checks 25.25.9.6.1 Processing Prisoner Leads Involving Refund Checks Part 25. Special Topics Chapter 25. Revenue Protection Section 9. Revenue Protection Prisoner Lead Procedures 25.25.9 Revenue Protection Prisoner Lead Procedures Manual Transmittal November 22, 2024 Purpose (1) This transmits revised IRM 25.25.9, Revenue Protection, Revenue Protection Prisoner Lead Procedures. Material Changes (1) IRM 25.25.9.2, Prisoner Lead Processing Overview - Updated routing instructions for tax returns and refund checks. IPU 24U0056 issued 01-05-2024 (2) IRM 25.25.9.3, Prisoner Lead Clerical Sort and Routing of Initial Receipts - Updated routing instructions for Brookhaven RIVO. IPU 24U0056 issued 01-05-2024 (3) IRM 25.25.9.5, Prisoner Lead Processing Returns (Kansas City) - Updated IRM numbers. IPU 24U0056 issued 01-05-2024 (4) IRM 25.25.9.5, Prisoner Lead Processing Returns (Kansas City) - Updated IRM numbers. IPU 24U0203 issued 02-02-2024 (5) IRM 25.25.9.6.1, Processing Prisoner Leads Involving Refund Checks - Updated IRM numbers. IPU 24U0056 issued 01-05-2024 (6) IRM 25.25.9.6.1, Processing Prisoner Leads Involving Refund Checks - Updated IRM numbers. IPU 24U0203 issued 02-02-2024 (7) IRM 25.25.9.6.1, Processing Prisoner Leads Involving Refund Checks - Updated the processing of refund checks. IPU 24U0394 issued 03-13-2024 (8) IRM 25.25.9.2.1, Prisoner Lead Mailbox Procedures - Updated mailbox guidance for Prisoner Leads. IPU 24U0946 issued 08-29-2024 (9) IRM 25.25.9.3, Prisoner Lead Clerical Sort and Routing of Initial Receipts - Updated IRM reference number. IPU 24U0946 issued 08-29-2024 (10) IRM 25.25.9.5, Prisoner Lead Processing Returns (Kansas City) - Updated processing guidance for returns filed by prisoners. IPU 24U0946 issued 08-29-2024 (11) IRM 25.25.9.6.1, Processing Prisoner Leads Involving Refund Checks - Updated processing guidance for refund checks. IPU 24U0946 issued 08-29-2024 (12) Editorial changes made throughout the IRM section. Effect on Other Documents IRM 25.25.9 effective 12-12-2023 is superseded. This includes IPU 24U0056, IPU 24U0203, IPU 24U394, IPU 24U946, dated 01-05-2024 through 08-29-2024. Audience Campus employees in Return Integrity Verification Operations Effective Date (12-12-2024) Related Resources The following IRMs must be used in conjunction with one another: IRM 25.25.1, Return Integrity and Verification Operation Business Master File Procedures IRM 25.25.2, Revenue Protection Screening Procedures for Individual Master File Returns IRM 25.25.3, Revenue Protection Verification Procedures for Individual Master File Returns IRM 25.25.4, Integrity and Verification Identity Theft Return Procedures IRM 25.25.5, General Correspondence Procedures IRM 25.25.6, Taxpayer Protection Program IRM 25.25.7, Automated Questionable Credit Program IRM 25.25.8, Revenue Protection External Leads Procedures IRM 25.25.10, Frivolous Return Program IRM 25.25.11, Withholding Only Work (WOW) (Notice CP05A) Procedures IRM 25.25.12, Fraud Evaluation and Referral Procedures for Return Integrity Verification Operations (RIVO) IRM 25.25.13, Account Resolution for Return Integrity and Verification Operations (RIVO) Denise D. Davis Director, Return Integrity Verification Program Management Taxpayer Services 25.25.9.1 (11-22-2019) Program Scope and Objectives Purpose and Program Goals: This IRM section provides guidance for Return Integrity Verification Operations (RIVO) employees when in receipt of prisoner correspondence/returns/checks received through the Blue Bag Program from participating institutions. Audience: The audience intended in this IRM is RIVO employees. Policy Owner: The Return Integrity Verification Program Management (RIVPM) is the policy owner of this program. Program Owner: RIVPM is the program office responsible for oversight over this program. Primary Stakeholders: The primary stakeholders are RIVO, and organizations that collaborate with RIVO, such as: Submission Processing, Account Management, and Field Assistance. Program Goals: Program goals for the program are in the Operation Guidelines as well as IRM 1.4.10, Return Integrity & Verification Operation Managers Guide. 25.25.9.1.1 (11-21-2022) Background Return Integrity Verification Program Management (RIVPM) strengthens the integrity of the tax system by: Protecting the public interest by improving IRS’s ability to detect and prevent improper refunds Serving the public interest by taking actions fairly and appropriately to identify, evaluate and prevent the issuance of improper refunds Helping taxpayers understand the refundable tax credits for which they are eligible Recovering Improper Payments 25.25.9.1.2 (09-08-2022) Program Management and Review The program has reports such as: the RIVO Monthly Performance Comparison Report, to track the inventory, including receipts and closures. Additional report guidance is found in IRM 1.4.10, Return Integrity & Verification Operation Managers Guide. The Embedded Quality review program is in place to review all processes to ensure accuracy and effectiveness of the program. Goals, measures, and operating guidelines are listed in the yearly Operation Guidelines and 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. 25.25.9.1.3 (09-08-2022) Authority Refer to the following: IRM 1.2.2, Servicewide Policies and Authorities, Servicewide Delegations of Authority IRM 1.1.13, Organization and Staffing, Taxpayer Services. Various Internal Revenue Codes (IRC) including but not limited to: IRC 6402(a), Authority to make credits or refunds IRC 6401, Amounts treated as overpayments IRC 6404, Abatements of tax IRC 6213, Restrictions on assessments and math error authority Refer to IRC GATT for more information on General Agreement of Tariffs and Trade (GATT) rule of disqualifying a prisoner’s income earned during incarceration for Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC). 25.25.9.1.4 (11-22-2019) Responsibilities Return Integrity Verification Program Management (RIVPM) has responsibility for information in this IRM. Information is published in the IRM on a yearly basis. The Director of RIVPM is responsible for the policy related to this IRM. The Chief of the RIVPM Policy & Analysis is responsible for ensuring this IRM is timely submitted to Media and Publications each year. More information can be found in IRM 1.1.13.5, Return Integrity and Compliance Services (RICS). 25.25.9.1.5 (09-08-2022) Acronyms For a list of Acronyms used throughout Return Integrity Verification Operations (RIVO), see IRM 25.25.12.1.5, Acronyms. 25.25.9.1.6 (11-21-2022) Related Resources The related resources listed below need to be utilized for account research and issue resolution. These related resources are accessed through the IRS Intranet-Servicewide Electronic Research Program (SERP) site. IRM 25.25, Revenue Protection IRM 25.23, Identity Protection and Victim Assistance IRM 21, Customer Account Services IRM 2, Information Technology IRM 3, Submission Processing IRM 4, Examining Process IDRS restricted access accounts are accounts where a user must request special permissions to access the account through IDRS. Follow IRM 21.2.1.3.2, Authorized IDRS Access. The IRS adopted the Taxpayer Bill of Rights (TBOR) in June 2014. Employees are responsible for being familiar with and acting in accordance with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. 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 The IRS outlines the Taxpayer Bill of Rights. 25.25.9.2 (01-05-2024) Prisoner Lead Processing Overview Non-RIVO functions will route all items as appropriate based on existing IRM guidance and procedures. Non-RIVO functions must not route to the address below, unless specifically instructed to by another IRM. Items received in RIVO through the Blue Bag Program from participating institutions will be date stamped by the receiving office, sorted into the following categories and routed as appropriate: Brookhaven RIVO only - Tax returns - any Form 1040, U.S. Individual Income Tax Return, series (including copies and unsigned returns), received from participating correctional institutions, - route returns to MS 6575 Prisoner Return KCSC, 333 Pershing Rd., Kansas City, MO 64108. Exception: Route Tax returns claiming Economic Impact Payments (EIP)/Recovery Rebate Credits (RRC) only to Austin . These returns do not meet Blue Bag criteria. Amended tax returns - Any Form 1040X, Amended U.S. Individual Income Tax Return, received, does not meet Blue Bag criteria. Route all amended returns to your local Imaging Control Team (ICT). Checks IRS refund checks with an open control base, C#,PRSLEAD,A,MISC- route to MS 6575 Prisoner Return KCSC, 333 Pershing Rd., Kansas City, MO 64108. Exception: Do not route EIP/RRC refund checks to Kansas City, instead route them to Submission Processing for posting. EIP can usually be identified in the memo section of the check. All Non- IRS Treasury checks are to be returned to sender. All Third-Party checks - see IRM 25.25.8.11, Centralized Check Process (CCP), for routing procedures. Reminder: Correspondence and loose forms are not worked in the Blue Bag Program. E-mails received in RIVO through the Blue Bag Program (BBP) from participating institutions will receive one of the following responses from the designated point of contact (POC): BBP Lead Acknowledgement E-mail which informs the sender that the BBP received their email inquiry and/or a BBP General Acknowledgement Referral E-mail which informs the sender that the BBP does not handle that inquiry and provides them with the Customer Service telephone number and IRS website. The designated POC will create and populate all required lead folders and add the case record to the Lead Management - Blue Bag (LMBB) system, IRM 25.25.9.2.1, Prisoner Lead Mailbox Procedures. 25.25.9.2.1 (08-29-2024) Prisoner Lead Mailbox Procedures Employees assigned to the mailbox process will review E-mails received and identify leads and/or inquiries by flag. Follow local procedures for flag determinations. Note: If the E-mail inquiry indicates that the correctional facility is new to the Blue Bag Program (BBP), send them the Blue Bag Fact Sheet, if requested. Note: If the inquiry requires elevation to Headquarters, forward to the RIVO Planning & Analysis BBP POC. Leads will receive a lead number based on the date of receipt (MMDDYY), the sequence number (XX) indicating the order in which the lead was received during the day, and the state abbreviation (XX). Example: Lead received date is August 26, 2022, and it was the fourth lead received based on the time of receipt from the state of Kentucky. The lead number would be 082622 04 KY. All leads and/or inquiries will receive an acknowledgement E-mail, see the RIVO Blue Bag SERP Portal, sent to the Correctional Facility Official within 10 days upon receipt. Note: If the E-mail is not a lead or inquiry pertaining to the BBP but is for another IRS business unit, issue the BBP General Acknowledgement Referral E-mail . Caution:DO NOT disclose internal research guidance in E-mail referrals. Also remove all internal information from correspondence received before sending the feedback script. Create a lead folder and save to the designated site folder on the bank working dir shared drive. The following items must be saved to the lead folder: Original E-mail in Outlook format Acknowledgement E-Mail Completion Response All spreadsheets and/or attachments received with the E-mail (e.g., Blue Bag Lead spreadsheet) Note: Do not edit or modify any original documents received. Import all lead information into the LMBB database, including the check number, check amount, and lead number. Take the following IDRS actions: Input the control base - C#,PRSLEAD,A,MISC,1481622222,MMDDYYYY (to show the received date of the inquiry or the refund check) Input Transaction Code (TC) 971, Action Code (AC) 134 Exception: E-mails received from a prison official requesting social security number (SSN) verification or regarding inmates receiving a 4883C or 5071C letter, are not to be saved in the BBP lead folder. Please forward email to BPL via email Prisoner_file@irs.gov. 25.25.9.3 (08-29-2024) Prisoner Lead Clerical Sort and Routing of Initial Receipts The Unit Control Clerk (UC) will date stamp and bundle all items received into the Operation, including undeliverable and non-delivered mail. Each bundle must contain a cover sheet. Returns received must be re-routed as shown below. Brookhaven RIVO only -Tax returns - any Form 1040, U.S. Individual Income Tax Return, series (including copies and unsigned returns) received from the participating correctional institutions- route to MS 6575 Prisoner Return KCSC, 333 Pershing Rd., Kansas City, MO 64108. Exception: Route Tax returns claiming EIP/RRC only to Austin . These returns do not meet Blue Bag criteria. Exception: Form 1040-X , Amended U.S. Individual Income Tax Return, filings currently under Examination (including copies and unsigned returns) are routed to the appropriate exam campus using IRM 3.10.72-1, Routing Guide/Local Maildex. . IRS refund checks with an open control base, C#,PRSLEAD,A,MISC - route to MS 6575 Prisoner Return KCSC, 333 Pershing Rd., Kansas City, MO 64108. Exception: Do not route EIP/RRC only refund checks to Kansas City, instead route them to Submission Processing for posting. EIP checks can usually be identified in the memo section of the check. EIP Debit cards received from Prison facility, prepare Form 3210, Document Transmittal, and mail EIP debit cards to Fiserv, Attn: RAPID, 7007 North 97th Circle, Omaha, NE 68122. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If a live personal check is received take the following actions: Complete Form 4287, Record of Discovered Remittance. Attach a photocopy of the personal check and any pertinent information to the Form 4287. Notate any essential information on the check such as the taxpayer’s Social Security number (SSN), tax period, and form number for correct processing. Route the check to Campus Support to be processed, see IRM 3.8.46.4, Remittance Discovered at a Campus Support Site. 25.25.9.4 (09-08-2022) General Agreement on Tariffs and Trade (GATT) Returns Legislation in 1994 implementing part of the General Agreement on Tariffs and Trade (GATT) , excluded amounts received for services provided by an inmate at a penal institution from the definition of earned income for the earned income tax credit (EITC) and credits which utilize the EITC definition of earned income. GATT returns are identified when a filer claims EITC (or a refundable credit that uses the EITC definition of earned income) based on valid income and withholding earned while an inmate. Tax Return filed with schedule C income are not eligible for EITC or ACTC while an inmate. Generally, most prisoners who file returns containing income earned while incarcerated, regardless of filing status, are not entitled to the following refundable credits: Earned Income Tax Credit (EITC) Additional Child Tax Credit (ACTC) If the BBP team receive prisoner returns from the correctional facility meeting the above criteria, please see IRM 25.25.9.5(3), boxes 3 or 4, for additional guidance. 25.25.9.5 (08-29-2024) Prisoner Lead Processing Returns (Kansas City) Log the receipt of all Prisoner Returns in LMBB database. Note: Income documents (IDOCs) on all returns must be captured in the LMBB database. Tax examiners will research the account to determine if the case meets identity theft (IDT) scheme characteristics or RIVO interest. Examples of some IDT scheme characteristics can be found in IRM 25.25.2.11, Identity Theft Scheme Criteria. When researching/reviewing paper returns to be sent to processing, follow the If/And/Then chart below for the appropriate action. If ... And ... Then ... 1Identity Theft Returns- Examples of some IDT characteristics can be found in IRM 25.25.2.11, Identity Theft Scheme Criteria Add all return information into the LMBB database under the “Returns” tab. Stamp “RIVO REV” Edit the return with a special project code (SPC) ‘M’ Add IDOCS to the LMBB database. Send the return for processing 2Income and withholding returns are questionable, see IRM 25.25.2.2, Data Mining Screening and IRM 25.25.2.13, Prisoner Returns Wages/withholding are not supported by command code (CC) IRPTR data (see IRM 25.25.2.3, Command Code (CC) IRPTR Return Verification During Screening Process) or appropriate lookback Add all return information into the LMBB database under the “Returns” tab. Stamp “RIVO REV” Edit the return with a computer condition code (CCC) ‘1’ Establish a monitor control base on IDRS using the activity, status, and category of - “BBMONITOR,M,MISC” Add IDOCS to the LMBB database. Send the return for processing After the return posts to the Electronic Fraud Detection System (EFDS), load all IDOCs, notate, and disposition as appropriate Close the monitor control base 3General Agreement on Tariffs and Trade (GATT) return issues, see IRM 25.25.9.4, General Agreement on Tariffs and Trade (GATT) Returns. CC FTBOL does not indicate full year prisoner (FYP) but the incarcerated dates provided with the BBP referral differ from IRS records and indicate a FYP. Note: Only refer to GATT if income verifies The return claimed ACTC or EITC and the income claimed on the return verifies within RIVO thresholds, see IRM 25.25.2-4, Tolerance Chart Add all return information into the LMBB database under the “Returns” tab. Stamp “RIVO REV” Edit the return with a CCC ‘1’ Establish a monitor control base on IDRS using the activity, status, and category - “AQCMONITOR,M,MISC” Add IDOCS to the LMBB database. Send the return for processing After the return posts to EFDS, load all IDOCs and input the return note “Possible GATT Refund Hold” Push return to Refile (PS 28), if the return is not already in PS 28. Input a CC TXMODA history item “GATTTOAQC” on IDRS and close the RIVO control base If the return indicates a date of incarceration (DOI)/date of release (DOR) that differs from CC FTBOL, update the FTBOL Masterfile listing with the dates provided by the prison with the tax return. Update EFDS and AMS notes with the corrected DOI/DOR dates. 4General Agreement on Tariffs and Trade (GATT) return issues, see IRM 25.25.9.4, General Agreement on Tariffs and Trade (GATT) Returns If the incarceration dates provided with the BBP referral match IRS records Stamp “RIVO REV” Send the return to processing 5Frivolous Claims, see the Frivolous Return Program (FRP) screening IRM 25.25.2.18, Frivolous Returns Stamp “RIVO REV” Edit the return with a CCC ‘1’ Establish a monitor control base on IDRS using the activity, status, and control category - “FRPMONITOR,M,MISC” Add all return information into the LMBB database, under the “Returns” tab. Send the return to processing After the return posts to EFDS, load all IDOCs and add the note “PRS RETURN - FRP CRITERIA”, and disposition the return in EFDS to process status (PS) 77/”RIVO Holding-FRP Selected” Close the monitor control base Entity Fabricated IDOCs Note: Send to the lead/SME for review, if agreed take the appropriate actions. Stamp “RIVO REV” Edit the return with a CCC ‘1’ Establish a monitor control base on IDRS using the activity, status, and category - “EFMONITOR,M,MISC” Add all return information into the LMBB database, under the “Returns” tab. Send the return for processing After the return posts to EFDS load all IDOCs If the IDOC Employer Identification Number (EIN) is on mode of contact (MOC) 231/‘Suspicious’ disposition the return to PS 33/Verify. If the EIN is not dispositioned to MOC ‘Suspicious’ disposition the return to PS31/Ace Collections and input the note “Potential Fabricated Entity” Forward to the BBP lead/SME to send the referral to the Entity Fabrication team at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Close the monitor control base Returns not meeting RIVO interest Stamp “RIVO REV” Add all return information into the LMBB database under the “Returns” tab. Input a TC972 AC134 on account. Update case control to ”completed” and close control base. Send the return to processing. 25.25.9.6 (09-06-2023) Prison Leads Involving Refund Checks Leads are received in Kansas City from prisons regarding tax refund checks issued by the Department of Treasury. The assigned team is to research the taxpayer’s account to determine if the refund check is valid. A Blue Bag Acknowledgement e-mail (see the RIVO BB SERP Portal) will be sent to the Correctional Facility Official within 10 days upon receipt of the prison lead inquiry. Note: RIVO teams receiving a prison lead regarding prisoner refund checks must route the lead to Kansas City, fax number ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Non-RIVO teams must follow existing procedures. All prisoner checks received in RIVO will be sent to Kansas City. Mailing Address is, Internal Revenue Service, MS 6575 Prisoner Check KCSC, 333 W Pershing Rd., Kansas City, MO 64108. The BBP Unit Clerk (UC) will log receipt of all prisoner checks in LMBB. Note: Route other payment types (money orders or checks payable to the Department of Treasury, etc.) to the appropriate campus Submissions Processing (SP) Payment Processing Unit (PPU) function. 25.25.9.6.1 (08-29-2024) Processing Prisoner Leads Involving Refund Checks Kansas City (Only) Tax Examiners (TEs), when an inquiry (copy of check or telephonic/fax/email/written inquiry) regarding the validity of a check in a correctional facility’s possession or a returned Prisoner tax refund check from a correctional facility is received, the TE will ensure the following research is completed and actions are taken on all accounts meeting RIVO interest. a. Research the associated return for RIVO interest as described below in the IF/and/Then chart. All cases must have a copy of the email and any documentation saved into the lead folder. Open a control base on IDRS containing the following information: C#,PRSLEAD,A,MISC 1481622222,MMDDYYYY (indicating the received data of the inquiry or the refund check) Input a TC 971 AC 134 (if one is not present on IDRS) Input a history item: H,DONOTRFUND Document the case and actions on the Account Management Services (AMS), see IRM 21.2.2.4.5, Account Management Services (AMS) for invalid checks only. The documentation must be input for the tax year of the inquiry or the refund check with the following note: Refund check serial number XXXX-XXXXXXXXX, Tax year YYYY, and Refund amount. RIVO requested the return of funds. Note: If return is valid, no AMS note is required. If refund is held on IDRS, close control base and release the refund. See IRM 25.25.13.9, Releasing the Refund, for additional guidance. Note: If the account contains a TC 971 AC 123 with MISC field “TPP Recovery,” do not research further. Instruct the correctional facility to return the check. b. Review command code (CC) FTBOLP on IDRS against the facility’s Date of Incarceration/Date of Release (DOI/DOR) provided on the referral. If the DOI/DOR differ on the referral from the IRS records, you are required to update the FTBOL-FY20XX Master File listing. c. If the physical tax refund check has not been returned, and was determined to be invalid, advise the correctional facility to return the tax refund check by issuing the Memorandum for Return of Erroneously Issued Income Tax Refund Check. Note: Be cautious not to disclose details regarding the taxpayer’s account. IF AND THEN 1 Identity Theft - Examples of some IDT scheme characteristics can be found in IRM 25.25.2.11, Identity Theft Scheme Criteria Request funds and generate memo in LMBB database. Update the “PRSLEAD” control base to a monitor control base on IDRS using the activity, status, and category code - “REQFUNDS,M,MISC” assigned to IDRS # 1481600002 Reassign Case to assigned Tax Examiner’s IDRS number Monitor the weekly Automated Age Listing (AAL) for the posted funds When funds post - Current year (CY) processed returns - disposition the return in EFDS to Ace Adjustments and input the return note “RIVO RSV IDT” Prior year (PY) returns already in STARS, update the STARS return information to the appropriate category per IRM 25.25.4.3, Identity Theft Return Categories PY returns not already in STARS, place on the Mass Push spreadsheet inputting a ‘7’ in column J, “STARS Category” Update and close the control base with activity “841POSTED”. 2 Income and withholding are questionable, see IRM 25.25.2.2, Data Mining Screening and IRM 25.25.2.13, Prisoner Returns Wages/Withholding are not supported by CC IRPTR data ( see IRM 25.25.2.3, Command Code (CC) IRPTR Return Verification During Screening Process) or appropriate look back Request funds and Generate the memo in LMBB database. Update the “PRSLEAD” control base to a monitor control base on IDRS using the activity, status, and category code - “REQFUNDS,M,MISC” assigned to IDRS # 1481600002 Reassign case to assigned tax examiner’s IDRS number. Monitor the weekly Automated Age Listing (AAL) for the posted funds When the funds post- update the control base to “CK RECD- Current Year (CY) processed returns - disposition the return in EFDS Add notes in EFDS and AMS. 3 General Agreement on Tariffs and Trade (GATT) issues, see IRM 25.25.9.4, General Agreement on Tariffs and Trade (GATT) Returns. If the incarceration dates provided with the BBP referral differ from IRS records and indicate FYP Note: Only refer to GATT if income verifies Request funds and generate memo in the LMBB database. Update the “PRSLEAD” control base to a monitor control base on IDRS using the activity, status, and category code - “REQFUNDS,M,MISC” assigned to IDRS # 1481600002 Reassign case to assigned tax examiner’s IDRS number. Monitor the weekly AAL for the posted funds When the funds post, update control base to “CK RECD”. Current Year (CY) processed returns - input a return note “POSSIBLE GATT” and update EFDS disposition to “ADD TO SCHEME”. Prior Year (PY) processed returns - place on the Mash Push spreadsheet inputting a ‘1’ in column J, “STARS Category”, to add the return to STARS After the return is in STARS update the STARS Return Status Disposition to ‘TT’ and the Referral Category to ‘8’ Place on the Automated Questionable Credits (AQC) Manual Referral spreadsheet for treatment, see IRM 25.25.13.5, Manual Referrals, for additional instructions. 4 Frivolous Claims (see the FRP screening IRM 25.25.2.18, Frivolous Returns Request funds and generate memo in LMBB database. Update the “PRSLEAD” control base to a monitor control base on IDRS using the activity, status, and category code - “REQFUNDS,M,MISC” assigned to IDRS # 1481600002 Reassign case to assigned tax examiner’s IDRS number. Monitor the weekly AAL for the posted funds Add note “PRS RETURN FRP CRITERIA" Current Year (CY) Returns - When funds post, disposition the return in EFDS to PS77/”Frivolous Filer” Prior Year (PY) Returns - When funds post, Disposition to PS70/“RIVO Holding - FRP Selected” Update IDRS control to C##,MR_SCHEME,A,FRP3 1486900001 Update the control base “841POSTED” and assign to the originating TE After all BBP actions have been taken update the control base on IDRS using the activity, status, and category - “MON2FRP,M,MISC” 5 Entity Fabricated IDOCS Note: Send to lead/SME for review, if agreed take appropriate actions Request funds and generate memo in LMBB database. Update the “PRSLEAD” control base to a monitor control base on IDRS using the activity, status, and category code - “REQFUNDS,M,MISC” assigned to IDRS # 1481600002 Reassign case to assigned tax examiner’s IDRS number. Monitor the weekly AAL for the posted funds When funds post, follow IRM 25.25.2.3, Command Code (CC) IRPTR Return Verification During the Screening Process Update and close the control base with activity “841POSTED” . 6 Returns not meeting RIVO interest Do not request funds and close control base If the tax refund has not been returned, monitor the lead for 45 days. If 45 days have passed and no tax refund check is received, issue the BBP 45 Day Follow Up E-mail letter and a copy of the check request memorandum. If after 15 days no funds are received, close the lead as no funds returned. Update the open BBP control base to: Update control base to ,”NOFNDSRTND,,C” and close the case in LMBB stating no funds were returned. More Internal Revenue Manual
