In February of 2003, Appeals changed the reporting structure of the APS function within Appeals from the local office Chief, to the Director of APS. The Director of APS reports to the Director, Case and Operations Support in Appeals headquarters.

The APS specific Internal Revenue Manuals (IRM) are in IRM 8.20, Account and Processing Support (APS).

APS responsibilities are described in IRM 8.20.6.1.3, Responsibilities.

IRM 8.20, Account and Processing Support (APS), establishes the APS program and policy framework for Appeals.

The Director, Case and Operations Support (COS) is the executive responsible for designing, developing, delivering, and monitoring short- and long-range tax administration policies, programs, strategies, and objectives for the Appeals organization.

The Director, Policy, is responsible for providing technical and procedural guidance to Appeals employees, establishing and maintaining policies and standard procedures for Appeals work streams.

Policy is comprised of two teams of analysts: Collection Policy and Examination Policy. The analyst(s) responsible for APS programs report to the Manager for Collection Policy.

The Policy analyst shown on the Product Catalog page as the originator is the assigned author of this IRM.

For more information on Appeals Policy, see the About Appeals - Case and Operations Support (COS) page on the Appeals website, where you can navigate to the two Policy teams’ web pages.

The Director, APS, is the senior manager responsible for the control and processing of all Appeals cases. The Director, APS, reports to the Director COS. For more information on APS, see the APS page on the Appeals website.

Appeals Account and Processing Support (APS) has primary responsibility for the following:

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 APS function utilizes a variety of reports from the following systems to verify, control, analyze and monitor cases under Appeals and/or Counsel jurisdiction:

The following IRMs provide specific information related to APS program reports:

The APS processing IRM terms and acronyms are provided in the following Exhibits:

Additional APS program information and resources are available as provided below:

The ATE will annotate Form 5402 with information pertaining to payments or 6603 Deposits received in Appeals for the following circumstances:

IRC 6601, Interest on Underpayment, Nonpayment, or Extension of Time for Payment, of Tax and IRC 6622, Interest Compounded Daily, provides authority for the accrual of underpayment interest and compound interest. Section 8 of Rev. Proc. 2005-18 provides procedures for the running of interest on an assessed tax liability satisfied by application of a remittance (whether the remittance initially was treated as a payment of tax or a deposit).

When the taxpayer remits a payment (TC 640, TC 670, TC 680, or TC 690) for the full amount of the underlying tax deficiency, penalties (if any), and accrued interest, the account is considered full paid as of the payment received date and underpayment interest ceases to further accrue. However, if the taxpayer remits a payment that is less than the full amount of tax, penalty, and accrued interest owed on the account, additional underpayment interest continues to accrue daily on the unpaid amount until the remaining underpaid balance is full paid, or until the account balance equals $0.00. Transaction Codes for certain payments received after the tax return is filed are listed below:

Rev. Proc. 2005-18, Deposits Made to Suspend the Running of Interest on Potential Underpayments provides procedures for interest application when an IRC 6603 Deposit is posted to the taxpayer’s account with a TC 640 and a Designated Payment Code (DPC) of 12. Underpayment interest accrual is suspended on the IRC 6603 Deposit amount as of the deposit received date.

The Service retains the IRC 6603 Deposit until the final adjustments are posted to the taxpayer’s account, unless the taxpayer submits a written request for refund of all or a portion of the IRC 6603 Deposit, prior to the resolution of the taxpayer’s case. The written request for the refund of an IRC 6603 Deposit is processable for an amount less than or equal to, the collective amount of tax, penalties and interest in dispute. See IRM 8.20.6.2.2 (5) for more specific guidance on determining the disputable tax* amount. When an IRC 6603 Deposit posted to the taxpayer’s account and does not exceed the disputable tax* amount, the entire amount of the IRC 6603 Deposit is interest bearing and earns overpayment interest at the Federal Short Term rate when refunded. When an IRC 6603 deposit is posted to the taxpayer’s account for an amount greater than the disputable tax* amount, the excess 6603 Deposit is refundable, but is not interest bearing, thus overpayment interest is neither allowed nor paid on the excess amount.

*Rev. Proc. 2005-18 Section 2 Background .03 Section 6603(c) and .04 Section 6603(d)(2) clarifies and defines the term disputable tax. The Appeals Technical Employee or Counsel Attorney in receipt of the taxpayer’s written request for refund of their 6603 Deposit, will verify for APS, the amount of the IRC 6603 Deposit that is attributable to disputable tax. If any portion of the IRC 6603 Deposit is in excess of the disputable tax amount, the excess amount can still be refunded but will not include accrued overpayment interest at the Federal short-term rate. See Rev. Proc. 2005-18 Section 8 Determination of Underpayment Interest for additional information.

Overpayment interest allowed on an IRC 6603 Deposit returned at a taxpayer’s request must be manually computed at the Federal short-term rate and posted via a transaction code (TC) 770.

For additional information on interest application related to payments and 6603 Deposits see:

ACDS must always reflect the location of the case. Anytime a case moves from one location to another or is closed, the action must be updated to reflect the move/closure of the case.

When the status of a case is changed on AIMS, ACDS must also be updated to identify the location of the case. Some items that may need to be updated are:

See the ACDS Utilities Menu for a list of current status codes.

Any necessary approvals of the Appeals Area Directors or the Chief, Appeals will be secured by the ATM and documented in the file before submitting the case to APS to complete the transfer.

The ATM will enter a CC 30 action through their ATM closing screen which will automatically generate a PEAS unassigned record.

The sending Appeals APS Office will transmit the following items:

Make the following ACDS updates to transfer a case:

When a return is on AIMS and is transferred to another AOC, the sending office will transfer the AIMS database using command code AMSOCA. See IRM 8.20.6.3.5.4, AIMS Control Transfer to Another AOC for additional information.

When the case is received, the receiving office will accept the case from the INBOX by selecting "(Y)es ACCEPT this transfer case," which will systemically enter a FROMDATE in the ACTION "TR NNXXPODC" field. Manually enter the FROMDATE in the LACTION "POD-POD" field.

The receiving office will acknowledge receipt by signing and dating the appropriate boxes and returning a copy of the signed Form 3210 to the transferring Appeals Office.

When APS is required to transfer the case back to the originating office, APS follow procedures in (1) - (5) above to complete the transfer process.

See IRM 8.20.6.3.3, ACDS Closing Code 40 - Re-assignment of a Case Within the Same Area below for a case re-assigned to another ATE within the same area.

Cases are re-assigned to another Appeals Technical Employee (ATE) after approval by the Appeals Team Manager (ATM). The ATE will print out a re-assignment sheet and the ATM will identify the new ATE.

Cases are only re-assigned if both ATEs are in the same area.

Make the following ACDS updates to re-assign a case:

If the case is re-assigned to an Appeals Technical Employee in another office with another Appeals Office Code within the area and the case is on AIMS, transfer the AIMS database using command code AMSOCA. See IRM 8.20.6.3.5.4, AIMS Control Transfer to Another AOC, for additional information.

When the case is received from an Appeals Office within the Field area, update ACDS with a FROMDATE in ACTION SHIPPED and on LACTION POD-POD.

Cases re-assigned to an Appeals Technical Employee outside your area, will be closed as a transfer. See IRM 8.20.6.3.2, ACDS Closing Code 30 - Transfer of a Case Between Areas Within Appeals.

For purposes of accurately tracking the amount of direct time on Appeals cases, Appeals mediators will be assigned as a team member on the mediation case.

The Appeals mediator will request that Account and Processing Support (APS):

APS is required to update AIMS and PCS when appropriate to ensure database accuracy.

APS must monitor all IDRS, AIMS, and PCS changes until the respective database reflects the correct data.

Specific update actions, their respective command codes, and applicable IRM references are provided is the subsections below:

Appeals uses ACDS to control and update all cases under Appeals and/or Counsel jurisdiction. The ACDS record attachment functionality provides a method by which case related forms, documents, and other pertinent information can be uploaded as an attachment to the respective WUNO.

The following list provides examples of forms, documents, and case related information that may be uploaded as an attachment to the applicable ACDS record when processing an interim action on a paperless case (this list is not all inclusive):

Although ACDS programming controls the file name for the attachment, the user can input a file description to differentiate each attachment. For purposes of consistency across Appeals, the following ACDS file descriptions are recommended for APS:

Some notices of deficiency, as well as Employee Plans (EP) and Exempt Organizations (EO) final adverse determination letters, will go to Counsel for concurrence before the letter is issued. The ATE will indicate when Counsel concurrence is required. The administrative file sent to Counsel will contain the following:

Form 3210 or an E3210 must be used whenever transmitting taxpayer information.

Enter action code SNDC and the current date (date case sent to Counsel) on the update case screen.

Since Appeals Field Offices are not always co-located with their servicing APS Team, but may be co-located with their servicing Counsel Office, it is not mandatory that cases sent to Counsel for Concurrence be routed through APS; however it is mandatory that ACDS accurately reflect the location of the administrative file.

The Appeals employee who forwards the case to Counsel for SND Concurrence must update ACDS with action code SNDC and the current date (date case sent to Counsel) to document the location of the administrative file.

APS management, or its designated employees, will run the SNDC follow-up list on a monthly basis to determine if Counsel has returned the administrative file. .

When the administrative file is returned through APS with Counsel’s approval, APS will:

If the case is returned from Counsel directly to the ATE and not through APS, the ATE must ensure the FROMDATE is entered on ACDS to reflect the return of the case to Appeals. If Counsel returns the case to Appeals through APS, the APS TE will update the FROMDATE on ACDS and forward the case to the ATE for their action.

When the administrative file is returned through APS without Counsel’s approval APS will:

If the case is returned from Counsel directly to the ATE and not through APS, the ATE must ensure the FROMDATE is entered on ACDS to reflect the return of the case to Appeals. If Counsel returns the case to Appeals through APS, the APS TE will update the FROMDATE on ACDS and forward the case to the ATE for their action.

APS mails notices of deficiency and maintains the certified mailing files. In some locations, a centralized or consolidated mail room may perform these functions. Certified mail records and files must be retained for 5 years from the issuance date to comply with Document 12990, "Records Control Schedules," "Schedule 10, Appeals - Administrative Records, Item 6 Mailing Records."

The administrative file submitted by the ATE must include an approved Form 5402, a signed notice of deficiency letter and a correctly prepared "right-sized" envelope with the ATE's correct return address.

If the SND is for a separate individual return, a window envelope may be used. However, use the right sized envelope to avoid disclosing any information other than the name and address.

If the SND is for a joint return, each spouse must receive a notice in an envelope addressed only to them.

APS will:

APS must also verify that the SND, and any agreement form all have the same:

ACDS will calculate the "Last Day to Petition Tax Court" and populate the SNEXPDATE field after APS enters the SNTYPE and SNDATE fields and clicks "Submit." APS must enter the SNEXPDATE on the SND letter. IRM Exhibit 8.20.6-1, Calculating the Default Date provides additional information.

Duplicate original notices are not required if both spouses are at the same address.

Duplicate original notices are required if each spouse has a different address. Each notice sent to the joint taxpayer’s at a different address must each have its own certified mail receipt number.

APS will date the SND and all copies. The SND (both the original and the copy) MUST be mailed on this date.

Unless the Form 2848, Power of Attorney and Declaration of Representative or Form 8821, Tax Information Authorization mailing instructions state otherwise, the taxpayer receives the original letter (certified/registered mail) and the representative receives a copy (regular mail). For notices on an MFT 30 Married Filing Joint account, see IRM 8.20.6.8.4 (8) and IRM 8.20.6.8.4 (9) above.

When the Form 2848, or Form 8821 includes specific mailing instructions, the ATE and APS are required to adhere to the specified mailing instructions for the respective taxpayer(s) and respective tax period(s). Several examples of alternate mailing instructions that may be authorized by the taxpayer via the Form 2848 or Form 8821 are:

The original notice must be mailed by certified or registered mail regardless of who is designated to receive the original notice.

Insert the following items in the envelope containing the original SND:

Insert the following items in the envelope containing a copy of the SND:

Enter the taxpayer’s name, mailing address as it appears on the envelope (in care of representative, if appropriate), and mailing date in the mailing record.

Distribute the remaining copies of the SND package as follows:

Once an SND is issued by Appeals, update ACDS.

An entry is required in SNTYPE on all Appeals cases where an SND or a notice of determination (NOD) letter has been issued. Select the appropriate category from the following list:

Update ACDS as follows:

Occasionally, the mail service is unable to deliver an SND or NOD, either because the taxpayer cannot be located (undeliverable) or because the taxpayer will not accept delivery (unclaimed). In these circumstances, the Post Office returns the undeliverable/unclaimed notice to the Appeals office according to the Return Address on the envelope.

The following paragraphs provide instructions for the following UND/UNC types:

Upon receipt of the undeliverable or unclaimed SND in the Appeals Office, the recipient* (see Note below) must provide the unopened SND to the appropriate ATE for their action and decision. When the ATE’s initials are not provided on the envelope’s return address, the recipient will research ACDS to identify the appropriate ATE.

Undeliverable or Unclaimed Statutory Notice of Deficiency (SND) Procedures:

Undeliverable or Unclaimed Notice of Determination (NOD) Procedures for CDP or INNSP:

Undeliverable or Unclaimed Notice of Interest Abatement Claim Disallowance procedures differ depending on if the Notice of Interest Abatement Claim Disallowance was Undeliverable, or if it was Unclaimed:

If the Appeals Team Manager (ATM) or Appeals Area Director decides to grant further consideration of a case in the suspense period, reactivate the case. When notified the case is being reconsidered APS will:

If no agreement is reached after consideration or reconsideration in the suspense period the ATE will ensure there is an approved informal memorandum and a signed closing letter for the unagreed case and return the case to APS. Upon receipt of the approved informal memorandum and signed closing letter for the unagreed case, APS will:

If the taxpayer files a petition with the Tax Court:

Update AIMS to status 82. AIMS automatically generates docketed alpha code "QQ" using the MMQQYYYY format (positions 15–20) when Appeals updates the AIMS status from 80 to 82. See IRM 8.20.6.3.5.2, AIMS Status and ASED Updates for additional information.

Ensure a TC 520 cc 72 posts to all petitioned periods.

Update the ACDS Record via the ACDS Special Activities> Closing Code 42/43 Update as follows:

APS prepares the Form 14758, Appeals/Counsel Routing Coversheet, printed on orange paper, attaches it to the administrative file and forwards the administrative file to Counsel for Answer.

Use a Form 3210, or an E3210 whenever transmitting taxpayer information.

Counsel will retain the administrative file after answer for settlement or trial preparation since Appeals already attempted settlement and issued an SND when an agreement could not be reached.

If Counsel answers the petition and returns the administrative file to Appeals for a second attempt at settlement, input Closing Code 42 on ACDS to put the case/record back in Part 2 of the assigned employee’s inventory.

When a non-docketed non-TEFRA flow through entity is related to a docketed case, APS will also enter the DKTNO of the related case followed by the letter N in the DKTNO field.

After an SND is issued on a case, disposition occurs in one of the following ways:

APS is responsible for issuing, monitoring and controlling "Appeals-issued" SNDs.

APS is also responsible for ensuring "Compliance-issued" NPS SNDs are properly controlled by the originating function with the following exception:

When an SND is issued on a MFT 30 Married Filing Joint (MFJ) account, the Primary TP and Secondary TP are treated individually for the purpose of:

When the resolution of the "Appeals-Issued" SND on a MFJ MFT 30 Account is split due to one of the scenarios listed below, APS must take additional actions to ensure protection of the ASED for both taxpayers:

Since the Appeals-issued SNDs on a MFJ account may require two different interim actions, one for each spouse, and then ultimately require further adjustments to each spouse’s account and/or the Joint MFT 30 account, both the interim action(s) and the closing action(s) are staged in this section for clarity and consistency.

The table below provides guidance for the additional interim/closing actions required for the various instances identified in (3) a) - g) above:

When one spouse agrees and the other spouse does not sign the same agreement, use TC 971 AC 105 to create an MFT 31 account for the agreeing spouse and post their assessment prior to their ASED using AMCLSS. Associate the MFT 31 agreed assessment documentation with the SND file for continued suspense. The remaining unagreed spouse can later:

APS TE's must document their actions within their PEAS Case Activity Record (CAR) and effectively use PEAS Suspense and PEAS Follow-Up tools to support efficiency and accuracy.

For additional guidance on Split Spousal Assessments see:

Oftentimes, an SND is issued for multiple tax periods. Occasionally, one or more of the tax periods listed in the SND may be omitted from the petition (intentionally or unintentionally). These cases are considered potential "Non-Petitioned Year," (NPY) cases until Counsel confirms the intention of the taxpayer.

When one or more tax periods are missing from the petition, confirm with Counsel, before taking action to separate the NPY tax return(s) from the petitioned tax return(s) and original administrative file.

If Counsel confirms that the taxpayer intended to include all SND tax periods on their petition, or provided a perfected petition to include all tax periods, then remove the case from suspense and use normal procedures to update ACDS and AIMS and transmit the file to Counsel.

If Counsel verifies that the petitioner intentionally omitted one or more tax periods, and the taxpayer will not submit a "perfected petition" to include all of the tax periods, take the following actions:

When Counsel does want the (defaulted or agreed) NPY(s) for association with the docketed administrative file after they are assessed and closed on AIMS, APS will take the following steps upon agreement or default:

When Counsel does not want the (defaulted or agreed) NPY(s) for association with the docketed administrative file after they are assessed and closed on AIMS, APS will take the following steps upon agreement or default:

If the taxpayer(s) does not sign and submit the waiver (Agreement), or does not file a timely petition with the tax court, the case is removed from SND Suspense on the Default Date.

The Default Date is calculated by adding 30 days to the last day to file a petition date. For taxpayer's with a U.S. Address, the Default Date is 90+30=120 days from the SND Issuance Date. For taxpayer's with an address outside of the U.S., the Default Date is 150 + 30 =180 days from the SND Issuance Date.

Check the Statutory Notice Report for any case where Appeals issued the statutory notice of deficiency. Also check for any case on which Appeals accepted jurisdiction from Compliance during the 90-day period.

Refer to IRM 8.20.7, Closing the Case on ACDS for ACDS closing procedures.

In the event Appeals rescinds an "Appeals-issued" SND per Form 8626, Agreement to Rescind Notice of Deficiency, update ACDS as follows:

If Form 872 or Form 872-A was also completed in conjunction with Form 8626, Agreement to Rescind Notice of Deficiency update the STATDATE or statute CODE as appropriate on both ACDS and AIMS.

Upon receipt of the written verification and/or approval of the ATE/ATM/Counsel Attorney to authorize the abatement of a premature assessment, the APS Tax Examiner will analyze the taxpayer’s account(s) and take the appropriate action(s) to correct AIMS, IDRS, and ACDS.

Follow the steps below to process the abatement of the default assessment:

If AIMS controls are closed and have not yet been fully re-established (TC 424 posted but no 420), prepare Form 8485, Assessment Adjustment Case Record to abate the premature assessment.

If AIMS controls have already been re-established (TC 420 posted), prepare Form 5403, Appeals Closing Record to abate the premature assessment via CC: AMCLSF.

Links to references for Unpostables (UPC) caused when an input transaction is within $10.00 of a previously posted transaction are provided below:

Upon receipt of the administrative file from a Compliance function, where only one spouse is determined to have petitioned the USTC, APS will review the file for the following items and when TXMODA or AMDISA is not included, performs IDRS research to secure a current TXMODA and AMDISA:

When a Statutory Notice of Deficiency is issued by a Compliance Function (not Appeals), on an MFT 30 Married Filing Joint (MFJ) account, and only one of the spouses files a petition with the United States Tax Court (USTC), the originating function must prepare a dummy file for the Non-Petitioning Spouse (NPS) for continued suspense under their jurisdiction.

The originating function retains jurisdiction of the NPS SND until one of the following occurs for the NPS SND remaining in their suspense:

If the NPS files a separate Petition to the USTC, the Compliance function will follow their existing procedures to transmit the NPS Dummy file to Appeals for assignment to the Counsel Attorney who has jurisdiction over the Petitioning Spouse’s docketed case.

If the NPS does not file a separate Petition, upon conclusion of the NPS SND suspense, either by signed waiver, or default, the Compliance function with jurisdiction for the NPS SND, will process the NPS MFT 31 assessment and forward the NPS assessment verification along with the NPS dummy file to APS.

Upon receipt of the NPS Dummy file and NPS assessment verification, APS will update ACDS per the instructions provided in IRM 8.20.6.8.10.4, ACDS and AIMS Updates on Non-Petitioning Spouse SND Cases and timely transmit the NPS Dummy file to Counsel for association with the Petitioning Spouse’s docketed case under Counsel Jurisdiction.

Although Appeals has no jurisdictional authority over the NPS assessment or NPS Assessment Statute Expiration Date (ASED) on a Compliance-Issued SND, the APS PTM can authorize an MFT 31 protective assessment against the NPS for the tax and penalty amount identified on the "Compliance-Issued" SND under the following circumstances:

Upon written approval from the PTM for APS to make a protective assessment to the NPS MFT 31 account, APS will follow the procedures in IRM 8.20.6.8.10.1, Appeals-Issued SND Petitioning/Non-Petitioning Spouse for processing the NPS MFT 31 protective assessment on the Compliance-issued SND.

APS will not initiate a MFT 31 protective assessment against the NPS for a "Compliance-issued" SND under the following circumstances:

If one or more tax periods included on a "Compliance-Issued" SND are not included on the petition, APS must take the appropriate actions. See the table below for applicable decision points:

Using the guidelines provided in IRM 8.20.6.3.6, ACDS Attachments, APS TE's must associate documentation of their follow-up actions taken per (10) above with the ACDS WUNO for the petitioned tax period(s). If the APS TE also has an open PEAS record for the respective WUNO, they must also document their actions within their PEAS Case Activity Record (CAR).

The Independent Office of Appeals, in partnership with the Office of Chief Counsel, developed the EZ Close process to streamline closing Appeals-settled docketed cases, both S and Regular, by transmitting electronic documents instead of case files for qualifying cases. On all Appeals-settled docketed cases where the Appeals office mails decision documents to the petitioner or counsel of record, all Appeals offices will now send Letter 5534, Decision Transmittal, to transmit those decision documents.

Docketed cases settled using the Docketed EZ Closing process will include Feature Code EZ and the following attachments to ACDS:

APS will:

Once all actions in (3) above are taken, APS will place the case in STIPFF suspense until:

When a docketed "ECLOSE" case is ready for APS closing action, Counsel will "Green Light" the closing by uploading the following attachments to ACDS:

APS management, or its designated employees, monitor and generate the following reports: :

The APS Processing Team Manager (PTM) will:

The APS Tax Examiner (TE) will:

On occasion when a case is in Counsel Jurisdiction based on a Tax Court petition challenging a Substitute for Return (SFR), the petitioning taxpayer(s) may submit a delinquent return to the Counsel Attorney for consideration. This may occur to allow for a change in filing status per IRC 6013(b)(3)(A)(i) or (iii).

Counsel will determine whether to accept the return as a basis for settlement and send to Appeals for interim adjustment prior to entering a decision document.

When Counsel accepts the return, they will take the following actions:

For a Potential Overpayment delinquent return, the attorney will identify the Refund Statute Expiration Date (RSED) on the Form 3608. If the RSED is barred for refund or offset, the overpayment must be moved to the Excess Collections File and cannot be refunded to the taxpayer(s), or offset to another tax period.

Upon receipt of the request from the APS TA to process the Delinquent Return using TCS computations and Form 5403 Instructions, the Processing Team Manager (PTM) assigns the interim action to an APS TE on PEAS.

Upon receiving the PEAS assignment, the APS TE will access ACDS attachments listed below:

Using information provided in ACDS attachments, APS will:

APS will prepare an AIMS CC: AMCLSF partial assessment to post tax, penalties, ASED, Item Reference Codes and Credit Reference Codes reflected on tax computations to the taxpayer’s account.

APS will complete Form 5403 items listed below:

Once the APS TE completes the adjustment document, APS will document their actions in the PEAS Case Activity Record (CAR) and place the case in PEAS Suspense until the PEAS Follow-up date set for monitoring the Entity change transaction code(s) posting date.

Once the Entity change transaction codes post, the APS TE will remove the case from PEAS Suspense and input AMCLSF entries.

Upon receiving a "Request Completed" response, APS will document the partial DLN in Item 15b on Form 5403*and create an electronic record for attachment to ACDS.

APS will attach Form 5403, CC: AMCLSF to ACDS,.

APS will notify the Counsel Attorney via encrypted email when AMCLSF has been input. Prepare the Counsel email notification as follows:

APS will prepare the adjustment source document for shipment to files for association with Form 5147, Transaction Record, generated at the Campus Files Function and transmit the following documents assembled in the order provided below to Campus Files Function using Form 3210, or an E3210:

APS will document the PEAS Case Activity Record (CAR) with the actions taken and place the case in PEAS Suspense to monitor for posting of adjustments.

Once the adjustments post, remove the case from PEAS Suspense and close PEAS.

The Tax Court Calendar program (TAXCAL) is a sub-system of ACDS developed and maintained by Appeals.

The ACDS Tax Court Calendar (TAXCAL) program provides Appeals offices with a method to identify and monitor Tax Court Calendar cases and generate Tax Court Calendar reports within ACDS.

As soon as a calendar is established, Counsel provides Appeals with an electronic file for each Tax Court Calendar to upload into TAXCAL. Fresno APS is responsible for uploading all Tax Court Calendars onto TAXCAL.

The ACDS Tax Court Calendar functionality is menu based and user-friendly. Based upon the permissions of the user, the program allows appropriate functionality.

The ACDS permissions levels for Tax Calendar are as follows:

ACDS web-based technology allows the program to match a docket number to any case on ACDS, in any Appeals office.

A calendared case input on a Tax Court calendar created in any Appeals office will appear on the appropriate group's or ATE's report.

The TAXCAL program provides the following functionality:

Tax Court Calendar actions are the responsibility of both the Field Appeals and Campus Appeals ATEs for their assigned cases.

A TAXCAL report listing all Dockets on the calendar in Docket Number order should be generated by the Field Appeals office and faxed to the Field Counsel responsible for the calendar within five business days of receipt of the calendar. This list shows the name of the ATE assigned to the case and if the case is unassigned or unmatched. The designated Field Appeals ATM is responsible for resolving unassigned or unmatched cases.

Appeals provides Field Counsel with periodic calendar status reports. The designated Appeals ATM responsible for the calendar generates the report monthly. These calendar status reports are generated from TAXCAL and provide the following information:

The report is forwarded to each Field Counsel responsible for the calendar. Field Counsel updates the list with the name of the attorney/paralegal assigned to the case within two workdays from the date of receipt of the list. Field Counsel delivers or faxes the list back to the Appeals office responsible for the calendar so that the ACDS database can be updated with the corrections. Subsequent lists contain those corrections.

The TAXCAL Users' Manual is posted on the Appeals web site on the ACDS page.

The Tax Court can dismiss a case for lack of jurisdiction for a variety of reasons such as:

Generally a Tax Court dismissal for lack of jurisdiction does not favor the taxpayer, however, the dismissal can be based on circumstances that do favor the taxpayer. For example, a deficiency notice may be determined to be invalid because it was not sent to the taxpayer's last known address. The Tax Court lacks jurisdiction over a case that is based upon an invalid notice.

When a taxpayer whose case is in Appeals jurisdiction submits a petition in response to an "Appeals-Issued" CDP/EH decision letter, 30 day letter, or some other Appeals letter that does not contain Tax Court rights, the Appeals administrative file may or may not be needed. APS will:

Each Appeals office designates an Appeals Technical Employee (ATE) who is responsible for review of dismissed cases prior to assessment.

See IRM 8.20.7, Dismissed for Lack of Jurisdiction Case Closing for ACDS, AIMS and IDRS closing procedures.

Appeals gives no further consideration to cases that are dismissed by the Tax Court for lack of prosecution.

Upon receipt of the Tax Court Dismissal the case is assigned on PEAS to an APS TE for ACDS, AIMS, and IDRS closing actions in compliance with the Order to Dismiss.

See IRM 8.20.7, Dismissed for Lack of Prosecution Case Closing for closing procedures.

In the very rare circumstance when an entered decision/order is vacated by the court, the entered decision/order which was vacated is no longer in effect.

When APS becomes aware of a vacated Decision/Order, APS will:

If the case is returned by Counsel for further Appeals consideration, update ACDS following the procedures in IRM 8.20.6.13 (4), Docketed Reconsideration Cases (Closing Code 42) - Jurisdiction Returned to Appeals by Counsel.

If Counsel does not return the case for further Appeals consideration, but instead sends the case to APS for processing of a new Entered Decision/Order, APS will follow appropriate Docketed case closing procedures in IRM 8.20.7.

If the case goes to the Court of Appeals (Appellate Court), the deficiency determined by the Tax Court can be assessed and collected unless the petitioner files an "appeal bond" (also called a review bond) with the Tax Court. The appeal bond must be in an amount fixed by the Court on or before the time the notice of appeal is filed. No assessment is made if the bond is filed.

An appeal bond is not the same as an IRC 6603 Deposit. The appeal bond is an irrevocable, open-ended promise by the taxpayer to pay the tax, additions to tax, and interest determined to be due. The taxpayer will provide security for the bond, which is not posted to the taxpayer's account.

The docket attorney from Counsel’s Field office has the responsibility to ensure prompt assessment of the tax, generally within 60 days after the decision of the Tax Court becomes final. Counsel will notify Appeals when the decision becomes final (after the case is finished in the Court of Appeals and/or Supreme Court).

Counsel notifies APS:

Upon notification from Counsel, APS will update ACDS as follows:

When Counsel secures a bond from the taxpayer, APS does not adjust the taxpayer’s account.

When Counsel does not secure a bond from the taxpayer, APS must follow procedures in IRM 8.20.6.17.3, Appeal Filed by Petitioner, No Bond Filed below to adjust the taxpayer’s account per the Entered Decision.

Once the Counsel attorney receives notification that the decision has become final, they will notify Appeals and transmit the administrative file to Appeals using Form 1734, Transmittal Memorandum, with an annotation, "Tax Court Case/Assessment must be made before [MM-DD-YYYY]."

The APS PTM is responsible for assigning the case to ensure the account adjustments are processed timely.

If the petitioner files a notice of appeal but does not file a bond, the tax must be assessed. The decision document will not contain an IRC 6213(a) waiver paragraph so an Agreement Date is not entered on the assessment document, nor is the waiver period considered in the deficiency interest calculation associated with the assessment. The assessment must be made even if the tax is paid.

The attorney contacts the PTM and immediately delivers the administrative file using Form 1734, with an annotation "Appealed Tax Court Case/Assessment must be made by [MM-DD-YYYY]."

APS will process the assessment via:

The earliest assessment statute is 60 days after the Tax Court decision becomes final. The Tax Court decision becomes final after the Appeals Court case (or Supreme Court case) decision is entered. Therefore, a quick assessment is not necessary unless notification has been received that the Tax Court decision has become final. The IRC 6213(a) paragraph will not be on this decision so there is no agreement date associated with the resulting tax assessment.

The APS employee who receives the assessment notification or administrative file from Counsel must check the ACDS Category Code to identify if the interim adjustment will be processed by the local APS Team, or if it must be processed by the APS-Complex Interest Team (CIT).

The APS employee must notify their PTM to request preparation of the CIT Referral Form if the ACDS Category Code is:

For the cases identified in (6) above, the APS PTM will prepare and submit the completed CIT Referral Form to the *AP Complex Interest mailbox for assignment of an APS-CIT TE.

Within 2 business days, the PTM will receive an email response from the *AP Complex Interest mailbox which identifies the APS-CIT TE assigned to process the interim adjustment, as well as their fax number and complete mailing address.

Upon receipt of a response from the *AP Complex Interest mailbox, the PTM or designated APS TE will fax or mail the documents required to process the interim assessment to the assigned APS-CIT TE.

APS will process the interim assessment of the Entered Decision under Appeal as follows:

Update ACDS as follows:

Update ACDS Return Level for each tax period with assessment verification as follows:

Follow-up on Form 3210 or E3210 transmittal acknowledgement of receipt as appropriate.

The Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 98) added IRC 6512(a)(6) and amended IRC 6512(b) to give the federal courts jurisdiction to order a refund or credit of certain amounts while an appeal of a Tax Court decision is pending.

When Appeals receives a letter from Counsel directing that an uncontested overpayment on an Appealed Tax Court case is approved for refund or credit to the taxpayer, APS will process the refund using manual refund procedures or apply the designated amount of the credit to the taxpayer’s designated account, and retain the tax court litigation freeze code (TC 520 cc 72) on the taxpayer’s account.

The letter from Counsel serves as the authority for initiating the manual refund and/or applying the taxpayer’s credit as directed. The TC 520 cc 72 Litigation Freeze must be retained on the taxpayer's account currently under Tax Court jurisdiction.

There are several instances which require Counsel concurrence before APS can complete the requested interim action.

When Counsel’s concurrence is required, the ATE will notify APS to:

APS will update ACDS by entering action code DCOTHER and the date the case was transmitted to Counsel on the update case screen.

On a monthly basis, APS management, or its designated employees, will run the DCOTHER follow-up list to determine if Counsel has returned the administrative file.

Generally, the ATE will retain the administrative file and tax return when requesting that APS process a Partial (Interim) Assessment/Abatement. If a restricted interest computation is also necessary, the ATE will include a copy of page 1 of the return and applicable restricted interest worksheets along with the partial assessment authorization (signed waiver) and Form 5403 instruction worksheet. (A second Form 5403 worksheet will be prepared and processed when the return is finally closed.)

An interim abatement is generally required as a result of a premature Compliance Issued SND however, that is not the only circumstance for which an ATE, ATM, or Counsel Attorney may request APS process an interim abatement of tax, penalty, or interest on an account. Each circumstance and account condition requires APS to analyze the applicable account, and process the authorized interim account adjustments in order to:

Procedures for preparing the Form 5403, Appeals Closing Record:

Tax and/or penalty abatement authorized by the ATE can result in a credit balance on the taxpayer’s account. A credit balance is resolved in the following ways when the Refund Statute Expiration Date (RSED) is open:

When a credit balance is available for offset or refund and the taxpayer has one or more balance due tax periods, APS will process a credit transfer using the appropriate hold codes on both the debit side and the credit side. For additional guidance on credit transfer procedures see:

When the ATE requests a credit balance on one tax period be offset to another tax period currently under Appeals or Counsel’s jurisdiction, APS will control the retention of the credit on the overpaid module until the appropriate time to offset the credit to the underpaid module. When APS performs the credit transfer process, they will use the appropriate hold code on both the losing and the gaining module to avoid an erroneous refund.

Only one carrier transaction (TC 30X/29X) can post to a given tax module per cycle. Use the appropriate Posting Delay Code (PDC) "1 through 6" to input subsequent adjustment transaction within the same cycle and the PDC will cause the subsequent adjustment(s) to "re-sequence" and post in the order you determine based on the PDC.

For additional information on the use of Posting Delay Codes see IRM 21.5.2, Posting Delay Code (PDC).

If a quick assessment is required due to the ASED expiring within 60 days, or for an agreed and unpaid assessment over $100,000.00, prepare Form 2859, Request for Quick or Prompt Assessment to include all applicable assessment information. See IRM 4.4.25 AIMS Procedures and Processing Instructions, Quick Assessments for additional guidance.

When processing a Partial (Interim) assessment using Form 2859, Request for Quick or Prompt Assessment APS will not input Form 5403 via Command Code AMCLSF. Instead, they will document Item A on Form 5403 as follows:

Adjustments to item reference numbers from Form 5403 cannot be made as part of the quick assessment. These reference numbers will be updated as identified on the Form 5403 Instruction Worksheet which will be prepared by the ATE or TCS at the time of final determination of the case. See IRM 4.4.25, Reference Number Adjustment for additional information.

Form 3870, Request for AdjustmentRequest for Adjustment is prepared and approved by the ATE/ATM and is submitted to APS for processing Non-AIMS account interim adjustments via CC: REQ54/ADJ54. The Approving Official Signature authorizes APS to process the account adjustments requested by the ATE.

IRM 2.4.16, IDRS Terminal Input - Command Codes REQ54 and ADJ54 provides detailed item entry instructions and explanations for reference by APS TE's authorized to input Non-AIMS adjustments.

APS must verify the following items when entered by ATE, or complete the following items on Form 3870 as follows:

A Form 8485, Assessment Adjustment Case Record can be prepared by APS, based on the Form 3870 provided by the ATE, to process the Non-AIMS account interim adjustments if additional fields are needed since the Form 3870 only allows for 4 TC Numbers to be entered.

The APS TE must verify that their adjustments have posted to the account before closing the PEAS record. PEAS Suspense must be used as appropriate. See IRM 8.20.10, Account and Processing Support - Processing Employee Automated System (PEAS), for additional information.

All interim/partial account adjustments AIMS and Non-AIMS must have the Adjustment Source Document associated with the administrative file as well as a copy of the Adjustment Source Document sent to Campus Files for association with the Form 5147, IDRS Transaction Register when Item 25 SD = "Y" .

The APS TE must close the IDRS Control Base for each account they’ve adjusted once the transactions have posted.

When the ATE secures a partial agreement for more than $1 million, ACDS will be updated to allow for the agreed portion of the WUNO to be processed and closed, while the unagreed portion of the WUNO will remain assigned to the ATE. This process is necessary, to ensure the >$1 million Appeals results are timely recorded on ACDS, processed on IDRS, and not delayed for resolution of the unagreed issues/tax periods.

This process requires the following steps be taken in the order identified:

APS-CIT TE takes the following actions upon processing of the Partial Agreement:

When the return is in the APS TE's possession, APS will attach the assessment verification to the face of the return and attach any Form 2285, Concurrent Determinations of Deficiencies and interest computations(s) to the back of the first page of the return and transmit the return and all documents, including the assessment verification to the ATE or Counsel Attorney.

When the return is NOT in the APS TE’s possession, after processing the interim assessment and verifying the adjustments have posted to the account, APS will transmit all documents including assessment verification and interest computations (if applicable) associated with the adjustment to the Appeals Technical Employee or Counsel Attorney as appropriate.

This procedure applies only to assessable partial agreements. Both a Form 870, Waiver of Restrictions on Assessment & Collection of Deficiency in Tax & Acceptance of Overassessment and a stipulation of agreed issues, entered by the Tax Court, must be secured on docketed cases.

This procedure may also be used when Appeals settles some issues in a case and then returns the balance of the case to LB&I as a premature referral.

ATEs may require an interim adjustment before closing their CDP/EH case.

ATEs will generally prepare adjustment requests using one of the following forms:

APS employees will inform the requesting employee, via EEFax or e-mail, that the interim adjustment has been processed. If there are inaccuracies with the adjustment request, APS will attempt to rectify the discrepancy with the initiator in the most time efficient manner, elevating any unresolved issues to the PTM/ATM level only if necessary.

The APS TE must close any IDRS Control Base assigned to them once the input transactions post. The generic CDP control will not be closed until the final case closing.

In an unagreed CDP case, the ATE will prepare one of the following Notices:

A Determination Letter must be sent separately, certified or registered, to each joint filer.

The steps for issuing a notice of determination letter are:

Update ACDS for CDP WUNO:

Update ACDS for CDP-related Innocent Spouse WUNO:

Update ACDS for CDP-related Abatement of Interest WUNO:

Suspend the administrative file until the earlier of one of the following occurs:

See IRM Exhibit 8.20.6-1, Calculating the Default Date for additional information.

APS will generate the monthly statutory notice follow-up report to ensure cases are defaulted timely. See IRM 8.10.1, Appeals Reports and Projects, Internal Reports for additional guidance.

Within 14 days of assignment of a request from ATE to accept OIC transfer in AOIC, Tax Examiner (TE) will verify there is a WUNO for the subject OIC.

To accept OIC transfers in AOIC,

Use "Special Activities Menu" option 5 "Closing Code 42/43 Update" to update ACDS case/returns screen:

Send the administrative file to the Area Counsel office that has jurisdiction. Whenever transmittal memo Form 2828, Form 3210, or E3210 are used, perform timely follow-up until Counsel acknowledges receipt of the administrative file.

Occasionally, a court will remand a CDP case to Appeals for further action. When this occurs, Appeals will generally issue a Letter 3978, Supplemental Notice of Determination after reconsideration of the case.

After first contacting the ATM, the remanded case will be sent by Counsel directly to the ATM who will assign the case to the appropriate ATE.

Upon receiving the remand determination from Counsel, the ATE will e-mail APS with their assignment information and APS will take the following actions to update ACDS:

When work on the remanded case has been completed, the ATE will prepare Form 3210, or E3210, or Form 2828, Transmittal Memorandum to return the case to APS through the ATM.

Upon receiving the "REMAND" determination from the ATM, APS will update ACDS as follows:

APS will mail the Supplemental Notice of Determination Letter as follows:

Return the case to Area Counsel using a Form 3210 or an E3210.

If the taxpayer does not agree with the Appeals determination, the ATE:

The case goes to the designated ATM reviewer Field East or West who:

Atlanta APS mails the letter by certified mail and suspenses the case for the 90-day period. If petitioned, Atlanta APS forwards the case to Counsel for answer. Appeals statute guidelines apply at all times.

If the taxpayer does not agree with Appeals determination in a timely requested Collection Due Process (CDP) ETC Case:

The case goes to the designated ATM reviewer who will:

Atlanta APS mails the Notice of Determination by certified mail and suspends the case for the 30 day period during which the taxpayer can file a petition with the Tax Court + the additional 30 day suspense timeframe to allow for mailing and assignment of a docket number. The total suspense timeframe is 60 days.

If the taxpayer signs waiver Form 12257, Summary Notice of Determination, Waiver of Right to Judicial Review of a Collection Due Process Determination, Waiver of Suspension of Levy Action, and Waiver of Periods of Limitation in Section 6330(e)(1) indicating agreement with Appeals determination in a timely requested CDP hearing:

The ATE transmits the case to the designated ATM reviewer who will :

If the taxpayer is provided with an equivalent hearing in an ETC case (because the taxpayer did not timely request a CDP hearing):

The case goes to the designated ATM reviewer who will :

If the taxpayer files a petition, Atlanta APS forwards the case to Counsel. After the court makes a determination, the case is sent back to Atlanta APS for ACDS closing action(s).

Within 5 business days of receipt of the request from the ATE, APS inputs the ID theft tracking indicator.

APS uses the Command Codes (CC) and process below to input TC 971, AC 522 on the taxpayer's account:

APS completes the following fields on the CC: FRM77 screen:

APS receives a Form 4844 or Form 3177 from the ATE requesting reversal of the ID theft indicator via a TC 972 AC 522.

APS uses the Command Codes (CC) and process below to input TC 972 and AC 522 on the taxpayer's account:

Complete the following fields on the CC: FRM77 screen.

Docketed ID Theft cases generally require account adjustments to be completed as an interim adjustment and not at closing.

The acronyms most commonly used by APS for processing ID Theft cases are provided below:

Additional ID Theft processing guidance and the complete tables of ID Theft acronyms and definitions, are located in the source IRM 25.23.2, Identity Protection and Victim Assistance - General Case Processing references listed below:

Holtsville APS uses IDRS CC: IDT48/IDT58 to move erroneous refunds to the ID Theft "1545" Account. For additional information on the use and input of these CC’s see: IRM 2.4.61, IDRS Terminal Input, Command Code IDT48/IDR58/RPM48/RPM58/CSO48/CSO58.

When issuing an innocent spouse notice of determination, APS uses procedures similar to those for issuing a notice of deficiency:

Update the Innocent Spouse Tracking System (ISTS):

Update the following fields on ACDS on both the RS and Joint records:

Suspend the administrative file until the RS petitions or default the case at the end of the 90 + 30 day suspense period. The 120 day suspense period is comprised of the 90 days the RS has to petition plus an additional 30 days to allow sufficient time for Appeals to receive notification of the filing of a Tax Court petition. Use the ACDS "Target Date" Calculator from the Utilities Menu to compute the default date. See Exhibit 8.20.6-1, Calculating the Default Date for additional information.

When a determination is made that the requesting spouse will receive full relief from a determined joint liability under the provisions of IRC 6015, and the NRS was notified and given an opportunity to participate in the administrative proceedings, do not issue a notice of deficiency to the requesting spouse.

See the table below for the letters issued, who prepares each letter, and instructions as to the mailing requirements:

APS mails the following letters:

When a determination is made that the requesting spouse will receive partial relief from the deficiency and both spouses had the opportunity to participate in the administrative proceedings, the notice of deficiency to the NRS and the RS will show the full amount of the deficiency.

The TCS prepares the statutory notice of deficiency, including Letter 894. The ATE prepares Letter 3288 and Letter 3289. The Letter 894, Notice of Deficiency will be sent to the taxpayers on the same date as the Letter 3288 and Letter 3289.

The ATE prepares and APS sends Letter 3288, Final Appeals Determination - to Requesting Spouse, to the RS by certified mail with Tax Court rights. The final determination letter (Letter 3288) and notice of deficiency will be mailed on the same date, but in separate envelopes.

The following letters must be prepared and issued:

When a determination is made that the requesting spouse will not receive relief from the deficiency (i.e., both spouses are liable for the entire deficiency), the Letter 894, Notice of Deficiency to both the NRS and the RS is required.

The TCS prepares the Letter 894, Notice of Deficiency. The ATE prepares Letter 3288 and Letter 3289. The notice of deficiency must be sent to the taxpayers at the same time as the Letter 3288 and Letter 3289, but in separate envelopes. See IRM 25.15.12, Notice of Determination Under IRC 6015, for additional information.

The ATE prepares and APS sends Letter 3289, Final Appeals Notice - to Non-requesting Spouse, to the NRS by regular mail. The Letter 3289 and Letter 894 must be sent on the same date, but in separate envelopes.

The ATE prepares and APS sends Letter 3288, Final Appeals Determination - to Requesting Spouse, to the RS by certified mail with Tax Court rights. The Letter 3288 and Letter 894 must be mailed on the same date, but in separate envelopes.

The following letters must be prepared and issued:

If both spouses request relief and had the opportunity to participate in the administrative proceedings the statutory notice of deficiency is prepared and issued using the following procedures.

The TCS prepares the Letter 894 and the ATE prepares Letter 3288, Final Appeals Determination - to Requesting Spouse.

APS sends Letter 3288, Final Appeals Determination - to Requesting Spouse, with Tax Court rights, to each RS by certified mail. The Letter 3288 and Letter 894 must be sent on the same date, but in separate envelopes.

The following letters must be prepared and issued:

If the ASED is about to expire before consideration of the innocent spouse issue can be completed and one or both of the spouses will not extend the statute, the notice of deficiency to the NRS and the RS will show the full amount of the deficiency.

The ATE will request a new WUNO for the innocent spouse case and retain copies of all pertinent documents from the notice of deficiency (income) file. Cross reference the income WUNO and add a cross-reference on the income case to the innocent spouse WUNO. The ATE will continue consideration of the innocent spouse issue while the notice of deficiency is pending.

APS is responsible for "suspending" the notice of deficiency during the suspense period and if a petition to the U.S. Tax Court was filed, APS will use the table below to identify ACDS update and processing actions: