This IRM provides uniform guidelines for the handling of incoming correspondence from taxpayers in reply to IRS issued correspondence. Also addressed are the generalized methods and set time frames that cases are held open at each step in the examination process.

This subsection provides information on specific programs worked in Taxpayer Services (TS) Examination and Small Business/Self Employed (SB/SE) Campus Examination Operations.

Congress has delegated the responsibility of administering the tax laws to the IRS. This responsibility is found in Title 26 of the Internal Revenue Code. Congress enacts tax laws, and the IRS enforces them.

Policy Statement P-1-236: Fairness and Integrity in Enforcement Selection.

The Director, Refundable Credits Program Management is the executive responsible for the policies and procedures of this work.

The Return Integrity & Compliance Services (RICS), Refundable Credits Program Management (RCPM), Exam Policy & Coordination (EPC) group establishes the policy for work performed in the TS sites.

Each frontline manager ensures timely completion of the work performed in the unit, addresses issues, and notifies the Department Manager of issues requiring elevation.

Local issues are resolved at the local level. Issues that cannot be resolved at the frontline level, are reported to the Planning and Analysis (P&A) Staff. If the work issue or stoppage is determined to affect Examination nationwide, P&A will report the issue to the Headquarters analyst for resolution.

The following table shows some of the most common acronyms used in Examination.

Additional listings can be found at https://rnet.web.irs.gov/Resources/AcronymSearch.aspx.

Liability Determination - Examination IRM structure is as follows:

The Taxpayer Bill of Rights (TBOR) lists the rights already existing in the tax code, explaining them in plain language and grouping them into ten fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. For additional information about TBOR, see IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights, Pub 5170, Taxpayer Bill of Rights (Brochure), and Taxpayer Bill of Rights.

The EMP streamlines the processing of incoming exam correspondence using a centralized workstation.

The EMP applies to incoming correspondence received on paper, by fax and received digitally. However, it is recommended that the different types of mail be processed separately through EMP (paper, fax, DUT).

The process uses a U-shaped workstation configuration that allows for all mail processing to be visible and performed in one central location, which promotes flexibility of planning and staffing. Digitized mail must be monitored differently, through application reports and electronic means, but still contributes greatly to increased flexibility of planning and staffing.

Each desk on the two arms of the workstation operates independently. One arm may be shut down when the work volume is low. Duties can be specialized or rotated to allow flexibility.

User tools that systemically research and update incoming mail are CDI, EMT, and the URT. These tools must be used to process taxpayer correspondence and undeliverable/unclaimed mail. See the CDI User Guide. The EMT Guide is located at CAT Tools - EMT.Net. The URT User Guide can be found on the Knowledge Management Database, under Report Generation Software (RGS) and CEAS - Campus Training (irsnet.gov).

Correspondence filtered during the Preliminary Sort and Secondary Sort requires clerical action outside of the EMP.

Complete the following actions on correspondence filtered from the Preliminary Sort as shown in the following table:

The table below describes how to complete the following actions on correspondence filtered from the Secondary Sort:

Taxpayers have a right to receive information concerning any federal taxes assessed against them. The Service is required to exercise due diligence to find and use taxpayer’s last known address. Treas. Reg. Section 301.6212-2(a) defines “last known address” as the address on the most recently filed and properly processed tax return unless the taxpayer has clearly and concisely notified the IRS of a change of address. In addition, the IRS also updates the taxpayer’s address of record by using the United States Postal Service’s (USPS) National Change of Address database (NCOA) in accordance with Treas. Reg. 301.6212-2. Undeliverable mail is given priority to ensure that letters are timely sent to the taxpayer’s correct address.

Instruction for closed case undeliverable letters and unclaimed mail can be found in the table in IRM 4.19.21.2 (9).

Sort undeliverable letters by initial contact/30 day and certified/registered letters. Scan the first page of the certified/registered letters and the envelopes to be inserted into RGS using CDI. Undeliverables should be researched through URT, and while research is the same for all undeliverable letters, the resulting actions are different.

Use the URT for researching and updating undeliverable and unclaimed mail.

Review CC ENMOD or IMFOLE and AIMS for an Identity Theft (IDT) indicator. If an IDT indicator is present, take no further action and route the undeliverable to the ID Theft Liaison for technical review/action.

If no new address is found and the return is not married filing joint (MFJ), check CC INOLES to see if the taxpayer is deceased.

Check CC CFINK for an active Power of Attorney (POA) or Fiduciary for cases where the taxpayer is not deceased, no other address was found, and no POA or Fiduciary is included on original mailing.
The table below lists the actions to take after research is completed.

Assign/forward any certified/registered mail that needs to be re-issued to the appropriate team.

Assign/forward any other undeliverable letters requiring further technical review (e.g., validation of POA/ fiduciary) to an RGS team.

For SB/SE only. Campus Correspondence Exam will process undeliverables received on Letter 2269C.
The table below lists the actions to take:

For undeliverables received with a USPS yellow label follow table “Determining a new address with a USPS yellow label” located in IRM 4.19.21.2.3(4), (5), and (6), Open Case Undeliverable Mail.

The Self-Assign function in CEAS is commonly used by examiners working phone calls to reassign a case from another campus or within their campus inventory for case closures. The Self-Assign function is also used to complete the following:

Refer to IRM 4.19.19.6, Self-Assign General, and IRM 4.19.19.6.1, Self-Assign Procedures, for information on Self-Assign reject codes and other conditions when self-assign is not allowed.

It is the responsibility of the gaining site to close self-assigned cases within 48 hours. The losing site will identify all paper files by researching the monthly self-assign reports, identifying the TC 300 Document Locator Number (DLN) and sending the case documents to files. See IRM 4.19.13.19, RGS Case File Assembly, to determine the required case documents.

It is the responsibility of the gaining site to contact the losing site to secure case correspondence if the self-assigned case is not closed within 48 business hours. If not contacted, the losing site can send case documents to the gaining site when they identify cases not closed in 48 hours.

Headquarters Correspondence Examination System Support (CESS) provides a monthly Self-Assign report. This report should be used to identify cases in the losing site that need to be pulled and paper documents sent to Files.

Cases with an AIMS tracking code 6746 have been converted to electronic case files. Incoming correspondence, E-Faxes and all paper documents have been uploaded to the case in the Office Documents section on RGS. Cases that have been partially converted to digital/virtual, but also contain paper correspondence will need tracking code 6697 to identify the case as a hybrid case.

After being uploaded to RGS, the documents for digitized (virtualized) cases are housed in the clerical area by the IRS Correspondence Received Date (CRD) in TIN order.

SB/SE and TS RICS RCEO will retain the paper correspondence for an electronic case for 60 days from the IRS CRD. SB/SE and TS will destroy the paper correspondence 60 days from the CRD following the procedures in IRM 10.5.1.6.10, Disposition and Destruction, unless there is a business need to retain the correspondence for a longer period.

A Form 13181 with a blocking series 30X must be sent to Files if a paper case. Document 6209 contains the instructions for contacting the RGS Coordinator.