Purpose: To provide processing guidelines for the case building of cases involving Requests for Prompt Assessment under IRC 6501(d) (Form 4810) and Requests for Discharge from Personal Liability under IRC 2204 or IRC 6905 (Form 5495).

Audience: The primary users of this IRM are IRS employees in SB/SE Exam Classification Support who process Form 4810, Request for Prompt Assessment, and Form 5495, Request for Discharge from Personal Liability under Internal Revenue Code Section 2204 or 6905.

Form 4810, Request for Prompt Assessment, and Form 5495, Request for Discharge from Personal Liability under Internal Revenue Code Section 2204 or 6905, are routed at intake per IRM 3.10.72-1, Routing Guide/Local Maildex. If Classification Support receives a Form 4810 or Form 5495 that does not align with the routing guide, Classification Support will treat as a misroute and send to an appropriate campus.

Complete the initial review of the Form 4810 and/or Form 5495. Use the chart below if you determine the form is a duplicate request.

Review the boxes on the Form 4810 and Form 5495 that indicate if the requestor attached related documents. Review case contents for applicable forms, copies of the returns, letters of administration, letters of testamentary, or other related documents.

The request must specify the period(s) and type of tax covered. Verify the type of tax and tax periods involved, ensure the form is filed for an acceptable return. If the return is not an acceptable return, refer to IRM 4.19.12.10.1.7, Rejecting the Case.

Confirm the following information is present:

A valid Letter of Administration, Letter of Testamentary, etc. is required to verify authority to act on behalf of the taxpayer. Authorization may be granted by a court document signed by a court official with a state or county seal. Consider the following information when deciding if an authorization is valid:

Thoroughly review all other case documents.

Reject the request if it is made by a corporation, a dissolving corporation, or a corporation contemplating dissolution currently in a bankruptcy status. Bankruptcy status may be identified by a -V freeze code, a TC 520 with a bankruptcy closing code, for example 83/85/88, or it may be stated in the Letters of Testamentary or other court documents sent by the taxpayer. Under the US Bankruptcy IRC 505b, prompt assessment is not available for chapter 13, chapter 7, or chapter 11. Refer to IRM 4.19.12.10.1.7, Rejecting the Case.

If any of the required information is missing or incomplete, refer to IRM 4.19.12.10.1.6, Missing or Incomplete Information.

Research IDRS CCs: SUMRY, ENMOD, INOLES, BMFOL/IMFOL, TXMOD, and any other applicable CCs.

Confirm the IDRS control was opened correctly when assigned. For example, the activity code accurately reflects the form(s) received, the received date indicates the oldest IRS received date, etc. Make corrections as needed.

Research entity information on CC ENMOD/ INOLES.

Verify all returns referenced have been filed and the TC 150 (original return) is posted.

Determine if a TC 976/977 (duplicate return) is present on TXMOD.

Identify balance due accounts.

Review the ASED.

Research Freeze Codes.

Research other Transaction Codes (TC’s).

Resolve Multiple IDRS Control Bases.

If the TC 150 posted to the account but the taxpayer did not include a copy of their return with their prompt assessment request, access the Employee User Portal (EUP) to locate the return using Modernized e-File (MeF).

If the return is not available on EUP/ MeF research AMS/ CII to locate the return.

If the return is not available electronically, request the TC 150 from files using CC ESTAB.

Document all actions taken in the case documentation section of the database.

If a TC 976/977 (duplicate return) is present on IDRS refer to IRM 4.19.12.10.1.3, IDRS Research.

If a Form 4810 and/or Form 5495 is received and there is no TC 150 on IDRS, refer to the table below.

Use a Letter 621C when corresponding for a Form 4810 and a Letter 738C when corresponding for a Form 5495.

When the original return is secured:

Summarize actions taken and letters sent in the case documentation section of the database.

If the request is incomplete or invalid for any reason and a determination could not be made through research, use the IAT Letters Tool, to send a Letter 621C, (Form 4810) or Letter 738C (Form 5495) to request the missing or incomplete information.

Suspend the case for 60 days.

Update the IDRS control base activity to SUSPNDMMDD.

When all required contents are received, review for accuracy, notate in case documentation and continue processing. Refer to IRM 4.19.12.10.1.8, Classification Referrals.

If the taxpayer does not respond reject the case. Refer to IRM 4.19.12.10.1.7, Rejecting the Case.

If the taxpayer responds to the inquiry after the suspense has expired and the case has been closed, work the case as a new request. Refer to IRM 4.19.12.10.1.2, Initial Review of Incoming Requests.

Send a Letter 621C (Form 4810) or Letter 738C (Form 5495) to reject the case back to the taxpayer. Provide an explanation of why the form is being rejected.

Circle out the received date and any other IRS notations in red and attach a copy of the Form 4810 and/or Form 5495 to the letter.

Detach copies of envelopes, duplicate IRS letters, copies of electronic returns and/or IDRS prints. Identify they can be destroyed by writing a large “X” on the top page of the prints and placing them in a classified waste bin.

Update the IDRS control base activity to RJECT for each affected tax period.

Enter case notes in the case documentation section of the database summarizing case actions, identify/mark which letter was sent, and press the close button for each tax form and period addressed.

Ensure any original returns included with the request or previously requested from files are sent to processing or refiled.

Ensure the case is completely built before sending to Classification to be classified as Accept/Reject/Select.

Update the IDRS control base activity to FULLPKG.

Follow local routing procedures to route to Classification.

Classification will classify the case and return it to Classification Support with a determination.

Classification Support will take the following actions based on the Classifier’s determination:

Purpose: The instructions in this subsection are used to process Form 8282, Donee Information Return, as part of the Form 8282 /Form 8283 , Non-cash Charitable Contribution match program. The program screens for potential selection for audit. Cases are selected when non-cash contribution deductions do not meet the criteria established for substantiation. Cases may be selected for Area Office or Campus Exam.

Audience: CEFS Classification Support executes the Form 8282 / Form 8283 Match Program under direction from Exam Quality and Technical Support (EQTS). CEFS Policy HQ analyst has oversight for the program and coordinates technical issues with EQTS.

Reporting: Process cases under Organization Function Program (OFP) 91717, Form 8282 Cases.

Process new receipts of Form 8282, Donee Information Return, as follows:

If a Form 8283 is received by itself, associate it with the original return.

In accordance with IRC 6050L(a), if a charitable organization sells, exchanges, or otherwise disposes of charitable deduction property within 3 years after its receipt, the organization must file a Form 8282, Donee Information Return, containing the following information:

If the TIN is missing or incomplete take the following actions:

If the Form 8282 is incomplete or invalid for any reason and a determination could not be made through research, send a letter to request the missing or incomplete information.

Create an IDRS Control Base with an activity code of FORM8282.

Suspend the case for 30 days by updating the IDRS control base activity code to SUSPNDMMDD (MMDD = 30 days from the date the letter was generated).

If response to the letter is not received within 30 days, send a second letter requesting the information and update the IDRS control base activity code to SUSPNDMMDD (MMDD = 30 days from the date the letter was generated).

If no response is received, close the IDRS control base with activity code NORESPONSE.

If all required contents are received, review for accuracy and continue processing.

Enter Forms 8282 that have been verified as accurate and complete into the Form 8282 database.

Form 8282 database entry must include the following information:

The Form 8282 database is a local database maintained by the Ogden Campus Exam. Access is approved through Ogden Campus Exam Planning and Analysis staff.

Classification is completed in EQTS. If EQTS contacts Classification Support to build selected cases, take the actions outlined in this IRM.

The EQTS classifier will provide Classification Support with a completed Form 6754, Examination Classification Checksheet.

Research IDRS to identify if an AIMS base is open.

Verify completeness of the Form 6754, Examination Classification Checksheet, by ensuring the following notations are present:

After verifying the completeness of the Form 6754, Examination Classification Checksheet, take the following actions:

When the retention period expires, complete Form 11671, Certificate of Records Disposal for Paper or Electronic Records, to obtain approval to destroy or delete the data, form, etc.

State agencies file Form 8610, Annual Low-Income Housing Credit Agencies Report, to

Form 8610 Schedule A, Carryover Allocation of Low-Income Housing Credit, is used by state agencies to report carryover allocation of LIHC. It is reviewed for accuracy, completeness and timeliness.

Form 8609, Low-Income Housing Credit Allocation and Certification, Part I, Allocation of Credit is completed by the state agency to document allocations of credit. It is reviewed for accuracy, completeness, and timeliness.

Form 8610 is reviewed to:

The state agency must file Form 8610 and attachments by February 28th of the year following the end of the calendar year for which the form is filed.

Forms 8610 are to be made available to Statistics of Income and IRS Chief Counsel upon request.

Information from Form 8610, 8610 Schedule A, and Form 8609 Part I is maintained in a database.

Form 8609, Low-Income Housing Credit Allocation and Certification, Part II, First-Year Certification, is completed by taxpayers and filed with the LIHC Compliance Unit to comply with the one-time certification requirement under IRC 42(I).

Form 8609 is reviewed to ensure:

If Part II is incomplete or otherwise flawed, the form should be returned to the taxpayer for correction.

If the taxpayer has submitted a Form 8609 without Part I completed or signed by the state agency, the forms should be reviewed for audit potential.

Information from Form 8609, Part II is maintained in a database.

State agencies file Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition, to notify the IRS of noncompliance with IRC 42 or to report a low-income building disposition. The forms are analyzed upon receipt.

Follow-up communication with state agencies or taxpayers (or their representatives) may occur.

Forms 8823 are evaluated for audit potential. See IRM 4.19.11.2.19.5, Evaluations for Audit Potential.

Form 8823 information is maintained in a database.

For dispositions before July 31, 2008, taxpayers could file Form 8693, Low-Income Housing Credit Disposition Bond, to place surety bonds or Treasury Direct accounts upon disposition of a low-income building (or interest therein) to avoid the credit recapture provisions under IRC 42(j). The taxpayer qualified for a disposition bond if it was reasonably expected the building would continue to be operated as a qualified low income building for the remainder of the 15-year compliance period.

For dispositions after July 30, 2008, taxpayers are not required to recapture the accelerated portion of the credit if it is reasonably expected that the building will continue to be operated as a qualified low-income building for the remaining compliance period and therefore, are not required to place a bond or pledge collateral at the time of the disposition.

Form 8693 bonds or Treasury Direct Accounts timely posted for dispositions before July 31, 2008, are maintained until:

The LIHC Unit supports the classification of returns for audit by evaluating the information submitted on forms and documents submitted to the unit by state agencies and taxpayers.

The evaluation will include consideration of:

Large, unusual and questionable items are defined as:

The following instances always require evaluation of audit potential:

Once it is determined further consideration of audit potential is needed, a classification package will be prepared. The file will include

The information in the classification package is reviewed for audit potential.

IRS personnel may contact the LIHC Compliance Unit for database research by calling 215-941-4496, faxing request to 215-516-1293, or writing to:
Internal Revenue Service
Attn: LIHC Compliance Unit, Mail Stop 4-E08.142
2970 Market St.
Philadelphia, PA 19104

Files selected for audit potential will be forwarded to SB/SE’s IRC 42 Program Analyst and Technical Advisor for classification.

Information about the LIHC program is also available on the Examination Knowledge Management page for Low-Income Housing Credit.

Technicians within the LIHC Compliance Unit are assigned specific states; the agencies are provided contact information.

Taxpayers and other external customers are provided contact information on correspondence as needed.