IRM 5.19.22 provides instructions for employees receiving written or telephonic responses to BMF RD notices, CP 259 and CP 518. It includes procedures for determining if a taxpayer is liable for the filing of a BMF tax return. The instructions and information contained in this IRM and in other applicable IRMs cannot address every possible issue that may arise. If the taxpayer’s question/problem cannot be resolved by using the available references, it may be necessary to consult your lead/manager to determine the necessary corrective action. Any issue/question that cannot be resolved at the site-level or that could have Servicewide impact must be elevated by the lead/manager to the headquarters analyst with program responsibility.

The IRS is committed to a customer service program that encourages taxpayers to comply voluntarily with the tax laws and assists them in meeting their obligations.

The SBSE CSCO Nonfiler Operation is committed to achieving excellence in the service it provides to its customers. We provide our customers with assistance in a manner that warrants the highest degree of public confidence. Representatives practice courtesy and proper communication techniques while ensuring that responses are technically and procedurally accurate and complete.

Title 26 of the United States Code (USC) or more commonly known as the Internal Revenue Code (IRC).

All Policy Statements for Collection are contained in IRM 1.2.14, Servicewide Policy Statements:

The Director, Collection Inventory Delivery & Selection (CIDS), is responsible for all policy and procedures related to nonfiler programs. They are responsible for overseeing program coordination for Campus procedures related to nonfiler programs. They work closely with Campus Collection directorships and operations in each campus as primary contact and support for nonfiler programs.

The Operations Manager is responsible for managing remote collection activities including telephone, correspondence and face-to-face transactions, following the procedures in this IRM. They oversee department, team and employee responses to taxpayer inquiries and responses concerning filing compliance inquiries. They oversee department, team and employee actions to resolve nonfiler accounts by taxpayers who did not timely file tax returns due.

The Department manager is responsible for overseeing team and employee responses to taxpayer inquires and responses concerning nonfiler inquiries, following the procedures in this IRM. They oversee team and employee actions to resolve nonfiler accounts by taxpayers who did not timely file tax returns due.

The Team manager is responsible for overseeing employee responses to taxpayer inquiries and responses concerning taxpayer delinquent return accounts and investigations, following the procedures in this IRM. They oversee employee actions to resolve nonfiler accounts of taxpayers who did not file returns timely.

Employees who process BMF RD program responses are responsible for responding to taxpayer inquiries and responses concerning missing returns, following the procedures in this IRM.

Program Reports: The following daily and weekly reports are generated by management, and can assist with evaluating the performance of the BMF RD program:

Program Effectiveness: The program results are housed on the Collection Program and Campus Reports SharePoint site in the Monthly Monitoring Report (MMR).The MMR captures NQRS results to show monthly and cumulative stats. Evaluative (EQRS) and national (NQRS) quality reviews and consistency reviews are routinely conducted, along with Headquarters reviews to ensure case actions are timely and in accordance with the procedures in this IRM.

Incoming telephone calls are distributed to telephone representatives using the Aspect systems.

Taxpayer responses are distributed to correspondence tax examiners.

The AMS system tracks employee actions and is monitored by Operation, Department, and Front-Line managers along with Collection HQ employees.

Managers are required to follow program management procedures and controls addressed in:

Lists of some of the terms with definitions as well as acronyms and their definition used in this IRM are found below. This list is not all inclusive. For details on other acronyms, use the Search feature on the IRS Home Page.

While many topics are touched upon in this IRM section, comprehensive guidance about all of them cannot always be included here. As you use this IRM section, remain alert for references to other resources, such as related IRMs and websites. Access that guidance as needed to ensure a thorough understanding of topics.

Additional resources can be found as applicable in:

Employees may also find the following information helpful:

The Taxpayer Bill of Rights is found at IRC 7803(a)(3). 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. For additional information about the TBOR, see Taxpayer Bill of Rights FAQs on IRS Source.

This section provides procedures for Business Master File (BMF) working the Return Delinquency (RD) Program in the campuses, call-sites, and Field Assistance (FA) offices to ensure timely resolution of taxpayer inquiries received via telephone, paper or face-to-face in regards to a BMF RD module.

Inventory should be worked on a first-in first-out basis to reduce or eliminate overage. See IRM 3.30.123.5.2, Response to Correspondence and Overage Criteria, for additional guidance.

For reporting purposes, the "Days to Close" for Compliance Services Collection Operations (CSCO) is determined from the CSCO received date to closing date.

When sending a letter requesting additional information from the taxpayer, allow up to 30 days for the taxpayer to respond and 15 days for mail delivery, for a total of 45 days.

If additional information is needed refer to IRM 5.19.22.2.2, Out Calls and Disclosure Procedure Overview.

All Employees must attempt to resolve each RD account on initial contact including closing modules with the appropriate Transaction Code (TC) 59X.

Written requests for RD cases received in CSCO and ACS Support Operations must be controlled within 30 days from the IRS received date, with a cycle delay of up to 15 cycles. Cases must be controlled and delayed earlier if taxpayer is potentially harmed by receiving subsequent notice and/or acceleration of entity to TDI Status 03 while the case is in campus possession. See IRM 5.19.22.5.1.1, Accelerate or Delay to TDI Status 03 and note below.

For Undeliverable (UD) mail follow IRM 5.19.16.1, Undeliverable (UD) Mail, Bad Address and Address Research (ADR) Processing.

If the case meets Policy Statement P-21-3 criteria and cannot be closed by the 30th day, an interim letter must be sent to the taxpayer. For additional guidance see IRM 21.3.3.4.2.2, Interim Responses.

When a taxpayer is asking questions or requesting a response, you must send an appropriate closing letter informing the taxpayer of actions taken to resolve their issue whether or not an interim letter was sent. Refer to IRM 21.3.3.4.2, Policy Statement P-21-3 (formerly P-6-12) Procedures, for additional information.

Any return or responses related to RD notices are excluded from P-21-3.

For information on IDRS control procedures, see IRM 21.5.1.4.2.2, Integrated Data Retrieval System (IDRS) - Control Procedures.

In all references throughout the IRM that instruct employees to address any balance due issue, it is only required for employees that have had training on Balance Due (BD) work. If the employee has not had adequate BD training, then take the necessary actions regarding the RD issue and refer the BD issue to the appropriate area within your site.

Throughout the IRM, all deadline dates, target dates or parameters are counted by calendar days not business days. You start counting with the first day you notify the taxpayer (by telephone or letter), or the first day of actions taken (i.e., IDRS, AMS, etc.…), or the first day of entering follow-up items on ACS. See the chart below for more information.

Throughout this IRM, if additional information is needed to resolve the case and a telephone number is available , attempt to call the taxpayer.

When contacting taxpayers by telephone, out calls should be placed between the hours of 8:00 a.m. and 9:00 p.m. of the taxpayers time zone.

When addressing the delinquent return via telephone contact and the taxpayer has the return already prepared, encourage the taxpayer to fax directly to you while on the telephone. If unable to fax, give taxpayer the Submission Processing address based on the State in which their business is located. See Where to File Tax Returns on www.irs.gov.

When working telephone contact, it is required to verify/secure and input all taxpayer's telephone numbers (i.e., home, work, cell phone, etc.) when working any Notice Status 02 or TDI Status 03 modules. Document IDRS, ACS and AMS accordingly.

All employees are required to follow disclosure guidelines.

For purposes of identification and to prevent unauthorized disclosures of tax information, follow the chart below:

If making out-calls and there is a valid POA on file, you must contact the POA and not the taxpayer.

You are required to document actions taken on taxpayer's accounts and/or actions promised by a taxpayer. Documentation must also include results of tools used in determining return delinquency requirements, such as Integrated Automation Technologies (IAT).

All documentation will be done via Account Management System (AMS). All documentation must be, to the extent possible, completed while the taxpayer is on the phone. When working paper, AMS documentation must support action(s) taken based on complete research.

Complete and accurate case documentation promotes quality and consistency in working cases. Documentation should contain enough information so that any person subsequently reading it can easily determine what decisions were made, why those decisions were made, what actions were taken and what further actions are required to resolve the case.

Do not use the term "Illegal Tax Protester" (ITP) or similar designations on IDRS, ACS History Codes, or AMS comments. The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98), Section 3707, prohibits the use of any tax protester designation to describe the taxpayer. If you identify any such reference, immediately inform your manager. Terms such as "frivolous argument" or "tax avoidance argument" are acceptable terms to use.

When securing an updated address via telephone or correspondence document as mailing address vs. location address, if applicable. When the taxpayer is requesting a change of address, and has moved from one state to another, you may need to document the Collection Location Code (CLC) . See IRM 5.19.1.4.2.1, Entity and Address Changes. For additional assistance for address changes, refer to:

IRS correspondence or notice errors must be identified and reported to the Office of Taxpayer Correspondence (OTC) utilizing the Request For Services button. Correspondence or notice errors include misspellings or bad grammar, incorrect IRS phone numbers, and incorrect, missing, or unreadable text.Taxpayer correspondence that results in the unauthorized disclosure of Sensitive But Unclassified (SBU) data, including Personally Identifiable Information (PII) and tax information, must be reported directly to the Office of Privacy, Governmental Liaison and Disclosure (PGLD) Incident Management Office using the PII Breach Reporting Form. See IRM 25.13.1.3, OTC Services, IRM 10.5.4, Privacy and Information Protection, Incident Management Program, and the Report Losses, Thefts or Disclosure page in the Disclosure and Privacy Knowledge Base Site, for additional information.

When requesting a delinquent return, remind the taxpayer to ensure the correct current address is on the return, whether it is a copy or original return.

If responding via correspondence to a taxpayer response (CP notice or letter), employees are required to acknowledge documentation and/or information received and take all necessary actions. See IRM 21.3.3, Incoming and Outgoing Correspondence/Letters for additional guidance.

For CSCO employees: When corresponding with taxpayers use the appropriate Accounts Management (AM) Toll Free number. Document AMS to reflect actions taken and any pertinent information for the next employee.

If taxpayer requests written confirmation that we received their tax return or correspondence, send Letter 2358-C, IMF/BMF TDI Closing Letter , or other letter that more appropriately describes the situation.

When referring a case to another office for resolution send Letter 86-C. Refer to IRM 21.3.3.4.2.1, Use of 86C Letter - Referring Taxpayer Inquiry/Forms to Another Office for additional guidance on when it is necessary to issue the letter.

When working correspondence, it is required to verify/secure and input all taxpayers telephone numbers (i.e., home, work, cell phone, etc.) when working any Notice Status 02 or Taxpayer Delinquency Investigation (TDI) Status 03 modules. Document IDRS, ACS and AMS accordingly.

The Document Upload Tool (DUT) can be used so taxpayers can upload documentation requested or required to provide. See IRM 5.19.16.8 , Document Upload Tool (DUT) Receipts.

This section provides information on mandated IAT tools for Campus Compliance Employees

IAT provides tools that simplify research, reduce keystrokes, eliminates repetitive typing, and increases the accuracy of regular work processes.

The chart below provides a list of mandated tools for SBSE ACS Call Site, ACS Support, CSCO and ASFR employees. Descriptions of each tool as well as job aids can be found on the IAT website, Instructions and Job Aids.

If an IAT tool is not available, or an employee has a problem with the IAT Task Manager, the case must be processed through IDRS, following established procedures. See the IAT Website, for how to report/fix problems with IAT tools.

Additional IAT tools will be added to the following list when one is deemed beneficial and seen as adding quality to Campus Collection work processes.

IAT tool users can visit the IAT Website, to become a subscriber to the IAT newsletter. The iNews details all ongoing IAT activity with tool retirements and rollouts.

See IAT Tool table below.

The case creation process prioritizes and identifies productive inventory using third party data for BMF nonfiler cases.

This process is known as the Business Masterfile Case Creation Nonfiler Identification Process (BMF CCNIP). Collection select codes are assigned to each module to identify and prioritize work selection and assignment. Headquarter analysts will select inventory based on Select Code (SC), Master File Tax (MFT) and inventory needs. The BMF select codes are displayed on CC TXMODA, to assist with research and indicates the last reported income for the entity.

The BMF case creation program identifies business taxpayers that have an open filing requirement for a return that is not filed. Potential BMF RD modules are identified and created 16 weeks after filing due date of each specific return type.

The following chart will provide the most common Primary Codes (PC) seen on RD modules and notice time frames:

BMF Return Delinquency notices can be verified using CC TXMOD and CC BMFOLS. The notice information is displayed on CC TXMOD in the "Notice History Section" .

A sample of notices are reviewed by the CSCO TDI function prior to mailing. See IRM 5.19.22.5.9, Return Delinquency On-Line Notice Review (OLNR) System, for procedures on working the Notice Review Register.

If UD mail is received follow IRM 5.19.16.1, Undeliverable (UD) Mail, Bad Address and Address research (ADR) Processing.

Delinquency requests may be received from other areas within the IRS on the following forms:

This section provides procedures and guidance for working referrals to the Taxpayer Advocate Service (TAS). Our goal is to address and resolve the taxpayer's issue on initial contact whenever possible and avoid unnecessary referrals to TAS. Make every attempt to assist the taxpayer prior to referring to TAS.

Refer taxpayers to the Taxpayer Advocate Service (TAS) (see IRM 13.1.7.2, TAS Case Criteria) when you can’t resolve the taxpayer’s issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer’s issue. Do not refer "same day" cases to TAS unless the taxpayer asks to be transferred to TAS and the case meets TAS criteria. Refer to IRM 13.1.7.4, Same-Day Resolution by Operations. When you refer cases to TAS, use Form 911, Request for Taxpayer Advocate Services Assistance (and Application for Taxpayer Assistance Order), and forward to TAS. See (3) below for special procedures for identity theft issues.

Follow the table below if referring the account to the Taxpayer Advocate Service:

Use Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance order), and forward to the Taxpayer Advocate Office in accordance with your local procedures.

This subsection provides guidance on the procedures for processing Business Master File (BMF) Return Delinquency (RD) notice responses and inquiries.

Document account of actions taken as stated per the specific IRM section.

For Accounts Management (AM) employees receiving telephonic responses to BMF RD notices, take the following actions on stand alone RD accounts only. For combo cases, i.e the taxpayer has both balance due and RD modules, follow procedures in IRM 5.19.1, Balance Due.

ACS, ACSS, CSCO and FA employees must follow procedures in the remainder of this subsection.

For additional information regarding BMF RD modules, see Document 6209, Chapter 11 Collection/BMF Taxpayer Delinquency Investigation (TDI) Explanation, at SERP - Status Indicators - TDI/DEL RET (Edited Values Only) - Section 11 - 6209 (irs.gov).

This section provides guidance on working all Return Delinquency (RD) Research (Taxpayer Identification Number [TIN] and Entity) issues.

Accounts Management (AM) call sites have employees trained to work RD Research cases related to TIN and Entity problems.

For AM call-site employees only, if an "RD Research" case "cannot" be closed, complete a Form 4442. If the module is in Notice Status 02, route the Form 4442 to the appropriate Compliance Services Collection Operation (CSCO). If the account is in Taxpayer Delinquency Investigation (TDI) Status 03, route the Form 4442 to the appropriate Automated Collection System (ACSS) Support site within your Business Operating Division (BOD).

For AM Call site CSR's only, if you identify a TIN & Entity problem or RD posting error and you are unable to resolve the account, take the following actions:

This section is not intended for Accounts Management (AM) employees.

For procedures to process all undeliverable RD notices and ACS LT letters, including those with yellow stickers from the post office, see IRM 5.19.16.1.2, Undelivered (UD) Mail procedures.

Credit Balances must be thoroughly researched and addressed to determine the correct disposition, especially before closing the module with a transaction code (TC) 590, 591 or 593.

For ES/FTD payment, research command code (CC) EFTPS to determine if there are additional Taxpayer Identification number(s) (TIN) associated to the taxpayer.

If research indicates the credit cannot be transferred or refunded, leave the credit on the module whether or not the credit is statute barred (not available for refund or credit offset), The credit(s) will remain on the module until it is systemically transferred to Excess Collections.

Transcripts are the form of maintenance most widely used by the IRS to ensure proper activity occurs within a module/account. The transcripts are generated systemically when certain predefined criteria is met and unresolved condition(s) remain on an account for a specific length of time. The criteria is established when its presence indicates either expected module activity has not occurred or some sort of manual intervention that may be necessary to resolve the account.

If a transcript account is six years or older from the current tax year and there is no credit(s) posted, input a Transaction Code (TC) 590 cc 077, no managerial approval is required.

If a transcript account is six years or older from the current tax year and there is credit(s) posted, IRM 5.19.22.5.6, Credit Balance Overview, before closing the module with the appropriate TC 59X.

There are three types of transcripts that are generated:

If the account has an open or unreversed TC 520 present (-V or -W freeze) with closing codes (cc) 60 - 67, 81 or 83 - 89, and your transcript module has a credit balance,

All assessment statute period transcripts must be worked on a priority basis. When requesting returns from files, review all statutes before reprocessing. Per IRM 3.11.154.3.6 , Statute Returns, and IRM 25.6.1.8, Original Delinquent Returns, statute clearance is not necessary on original secured returns by Compliance employees being forwarded for processing.

Prior to January 2022, BMF TDI Transcripts were screened and worked via the automated IAT System. Cases that needed to be manually worked were extracted and a control base was established via the Case Control Activity System (CCA Report) and assigned to the appropriate CSCO Campus. Effective January 2022, BMF TDI- are systemically controlled on AMS.

While working any BMF TDI related transcripts, if research of CC TRDBV determines a prior return was deleted due an incorrect form received from the taxpayer, it may be required to create a “dummy return” to resolve the transcript. If an employer with a Form 944 filing requirement files a Form 941, current procedures allows the IRS to create a dummy/ combined return with the available information on CC TRDBV, if there is sufficient information to do so. Follow the guidelines below to create a compiled Form 944 extracting the required data from the 4 signed Form 941 returns secured. Inform the taxpayer via letter or phone of actions taken to post the return data and prevent any further confusion. Notate AMS of all actions taken. See IRM 25.6.1.6.4, Statute of Limitations Chart for Tax Returns, for more information.

When working a TDI transcript and there is a credit available for offset or refund (not statute barred) and you are able to determine where to apply the credit for offset or refund the credit, take appropriate actions to resolve the credit, and send a Letter 672-C , Letter 2358-C or appropriate letter using the correct paragraphs to inform the taxpayer of the offset or refund.

When working a TDI transcript and the credit/payments are statute barred and the credit/payment date is at least 5 years old, you can transfer to the Excess Collection file (XSF). For specific procedures, see IRM 5.19.22.5.7.3, Accounts Maintenance (AM) 18 Transcripts.

When working an AM18 TDI transcript and the credit/payments are Levy payments, route transcript to appropriate ACSS site for resolution.

Diagnostic-Q (DIAG-Q) transcripts are generated weekly to identify potential problems on IDRS. You must review any prior actions (i.e., TC 59X, credit balances or freeze codes) to determine if the module was appropriately worked. If not worked properly, follow the appropriate procedures to resolve the issue.

DIAG-Q Transcripts are identified by a one character type code:

Document AMS comments with the following information: