Information return penalties are important tools for the IRS to encourage voluntary compliance by taxpayers. See IRM 20.1.7, Information Return Penalties.

The IRP program utilizes Notice 972-CG, Proposed Civil Penalty, to inform filers of failures to comply with information reporting requirements. The notice provides filers an opportunity to establish reasonable cause for a waiver of penalties prior to assessment. The penalty is assessed when reasonable cause is not established or when a filer does not respond to the notice.

The provisions for the application of information return penalties covered in this IRM are found in IRC 6721.

IRC 6724(a) provides that the IRC 6721 penalties shall not be imposed if the failure is due to reasonable cause and not due to willful neglect. Treas. Reg. 301.6724-1 defines reasonable cause. Reasonable cause criteria must be applied in all penalty relief consideration.

The director, SB/SE, Examination Field & Campus Policy is the executive responsible for the IRP program.

Management officials are responsible for managing and leading activities per the procedures in this IRM to ensure program objectives and taxpayer expectations are met. This includes providing internal controls relating to each program, process, or activity and ensuring instructions are communicated to and carried out by the appropriate employees.

All employees must keep the following objectives in mind when handling each penalty case:

Program Reports: Once proposed penalty notices are issued, inventory management is accomplished through the use of the Control-D reporting system. The following reports are generated to assist management with evaluating the performance of the IRP program:

Program Effectiveness: Program effectiveness is determined by the following:

Management uses the following program controls to oversee the IRP program:

See Exhibit 4.19.25-6, Acronyms, for a detailed list of acronyms and definitions used in this IRM and for IRP processing.

The following resources are listed for when in-depth research is required to resolve unusual technical issues not covered in this IRM. When reference to one of the related IRMs is required for IRP program processing, the complete IRM reference will be stated in this IRM.

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. You can find additional information about the TBOR at Taxpayer Bill of Rights.

Even though the IRS strives to improve its systems and provide better service, some taxpayers still have difficulty in getting solutions to their problems or appropriate responses to their inquiries. The purpose of the Taxpayer Advocate Service (TAS) is to give taxpayers someone to speak for them within the IRS - an Advocate. TAS is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels or who believe an IRS system or procedure is not working as it should.

TAS and SB/SE have a service level agreement (SLA) between them outlining the procedures and responsibilities for the processing of TAS cases whenever the statutory or delegated authority to complete case transactions rests outside of TAS. The SB/SE SLA covers the IRP program. An addendum to the SLA lists contacts from various operations in the Philadelphia Service Center. You can view the SLA at Service Level Agreements..

Refer taxpayers to TAS, when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria), and you cannot 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 within 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issues. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.5, Same Day Resolution by Operations.

All potential TAS referrals must be approved by the IRP TAS liaison.

The IRP TAS liaison will complete Sections I, II and III of Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), and forward to TAS. The taxpayer's problem and the taxpayer's relief sought must be clear and specific in items 12a and 12b of section I. The liaison is also required to document the reason why the relief action was not taken.

Although not included on the Notice 972-CG, the IRP program also addresses the following civil penalties:

Notice 972-CG is generated from the Payer Master File (PMF). Correspondence Production Services (CPS) is responsible for mailing all notices except those requiring special handling.

Taxpayers may contact either the campus or TSO to request recreates (copies) of Notice 972-CG and/or TIN listings. These requests may be received at any time after the initial mailing of the notices.

If a request for a recreated Notice 972-CG is received at the campus:

TSO can provide Notice 972-CG recreates for 10 years of inventory. When a new tax year Notice 972-CG download is added, the oldest year will be removed from the database.

Policy Statement P-21-3 (formerly P-6-12) Guidelines (Action 61) are the result of a task force initiated to provide timely, quality responses to taxpayer correspondence. The general guidelines are:

A quality response is timely when initiated within 30 calendar days of the IRS received date.

When a quality response cannot be issued timely, an interim response must be initiated by the 30th calendar day from the IRS received date.

All interim letters should inform the taxpayer when a final response can be expected and provide a contact name and number for additional inquiries.

The digitalization of taxpayer correspondence has been implemented to eliminate paper processing, streamline case processing, and improve the taxpayer experience. A document repository was created to store taxpayer correspondence.

Beginning with TY 2022, all taxpayer replies and reconsiderations must be digitized.

All guidance provided in IRM 4.19.25, Information Return Penalty (IRP) Procedures, must continue to be followed. Any deviation/change to these procedures will be provided by SB/SE Exam Policy.

Existing inventory management tools such as IDRS Inventory Reports and/or the ORCAS reports should continue to be used to identify workload priorities as established in IRM 4.19.25.21.1.2, IDRS Inventory Report, and IRM 4.19.25.23.7.2, IDRS Overage Report.

When a TIN is assigned to a batch, but the corresponding case is missing, it is considered a "lost" case.

When a lost case is identified, provide the information to the lead tax examiner who will attempt to locate the case.

If a case is NOT on the batch TIN listing, research IDRS and determine the proper location of the case.

The Philadelphia campus receives responses requiring additional action before the case can be closed. Additional action may include (this list is not all inclusive):

Only one penalty per information return filed incorrectly can be assessed. Do not assess multiple penalties on the same information return.

The penalty for an information return with multiple failures will be determined based on the failure with the highest value.

If an information return is potentially subject to more than one penalty, consider reasonable cause to determine which penalty (or penalties) can be waived/abated. Then apply the penalty using the following criteria:

Evaluate failures in highest penalty order and assess the highest penalty that is not waived.

Third party agent (TPA) is a general term used to describe independent agencies that perform employment related services such as making required tax deposits or filing information returns on behalf of their client.

A TPA may submit a response on behalf of all of their clients that received a Notice 972-CG, rather than having their clients submit individual responses. Therefore it is important to recognize and take appropriate action when this type of response is received, to ensure all impacted taxpayers are addressed and treated in a consistent manner.

When a response indicates more than one taxpayer is impacted (or received a Notice 972-CG) refer the response to the lead tax examiner for further research and action. The lead tax examiner will update the case control to themselves.

If the response indicates multiple impacted taxpayers and does not include the names/ TINs of the other impacted taxpayers, the lead tax examiner will contact (via telephone contact if possible) the TPA and request they provide the names/ TINs of the other impacted taxpayers. Otherwise:

Once the name/TIN information for the other impacted taxpayers is obtained, determine the number of impacted taxpayers:

A case might contain other issues in addition to those raised by the TPA:

When a taxpayer contact includes clear and concise notification of an address change, including foreign address change, input the appropriate new address on IDRS CC: ENREQ. Clear and concise notification from the taxpayer, whether written or oral, must contain the following:

Contacts that are considered clear and concise notification of an address change include the following:

Information supporting clear and concise notification might be incomplete or there might be additional issues to be addressed::

Changes to the taxpayer name line due to a spelling error should also be made. However, do not change the name control. On BMF accounts, the name control is the first four characters of the business name. On IMF accounts, the name control is the first four characters of the taxpayer’s last name.

All correspondence should be sent directly to the taxpayer. No tax information can be sent to or discussed with an unauthorized third party unless a valid authorization is on file.

Accountants, attorneys, enrolled agents or other representatives from whom a taxpayer has requested assistance on tax issues submit inquiries to the IRS. The third party representative expects a reply to the inquiry so the issue can be explained to the taxpayer.

To authorize the third party reply, the representative may submit a:

Each Form 2848 or Form 8821 must be validated before being accepted. The Form 2848 or Form 8821 must be signed by the taxpayer. Immediately reject any unsigned Form 2848 or Form 8821 and return to the taxpayer.

In addition to the required signature, a valid Form 2848 (or Form 8821) contains the following information:

If a Form 2848 (or Form 8821) is determined to be invalid, return it to the taxpayer with an explanation.

When issuing correspondence to a taxpayer with a valid POA/TIA (that is authorized to receive correspondence), generate a copy of the correspondence to the POA/TIA.

If the taxpayer submits a complete Form 2848, or a Form 8821, that lists tax matters other than civil penalty issues, check to see if the authorization is on file. If not, fax the form for processing based on the state mapping table in IRM 21.3.7-1, State Mapping, Where To File, and keep the original with your case file.

To ensure valid POAs/TIAs are recognized, the POA/TIA should be merged with the digital IRP case file on the document repository.

The Notice 972-CG informs the taxpayer they have 45 days (60 days for overseas) from the notice date to provide a response.

When the taxpayer requests additional time or an extension to respond to the notice:

There are four methods for filing a request for an extension of time to file information returns:

All current year late-filing penalty cases are compared to the extensions of time to file posted to the PMF prior to the generation of penalty notices.

Taxpayers residing in a zip code located in a designated Federal Emergency Management Agency (FEMA) Declared Disaster area will have a disaster related freeze code posted to their account. There are two types of disaster freeze codes, the "–O" freeze and the "–S" freeze.

The IRP Technical Coordinator will monitor zip codes for specific declared disaster area situations as necessary based on IRS Disaster Relief Memos and will provide tax examiners with instruction for the states with declared disasters. Additional information (including special case handling requirements) can be found at the FEMA web site.

Use the following If/Then table to determine the appropriate actions:

When a taxpayer responds to the Notice 972-CGduring the disaster time frame (freeze code "-S" or "-O" ), follow normal procedures unless the following conditions apply:

When a taxpayer states a payment was submitted, but there is no indication on IDRS the payment was received and at least three weeks have passed since the IRS receive date, research the payment on IDRS:

Discovered remittance is a response and/or correspondence with an original form of payment attached such as a personal check, money order or cashier’s check. Also, a loose check(s) discovered in an envelope or attached to a blank piece of paper.

If any of the items listed in (1) are discovered, both Form 3244, Payment Posting Voucher, and Form 4287, Record of Discovered Remittances, must be completed.

Two copies of Form 3244 must be completed for each discovered remittance and contain entries in the following fields:

Form 4287, Record of Discovered Remittances, must be completed to log all discovered remittances. The following fields must have entries:

Remittance may be discovered either while working in the office or while teleworking:

IRS CHECKS - Returned IRS refund checks are handled differently than regular discovered remittance. If an IRS refund check is found, take it to the team manager/lead tax examiner to be routed to the Refund Inquiry Unit.

Voided or Blank Checks: If the response has a "VOIDED" or blank personal check attached, remove the check from the response and attach it to the installment agreement (IA) request. For voided checks, route the "VOIDED" check with the IA to Collections.

Taxpayers are required to file most information returns by:

If the filing date falls on a Saturday, Sunday or legal holiday, then the filing date becomes the next business day. A business day is any day that is not a Saturday, Sunday or legal holiday. The following is a breakdown of required filing dates for the three current IRP processing years.

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The Late Filing Penalty is tiered based on when the information returns were filed.

The maximum penalty rates break down as follows:

The penalty is reduced based on when the information returns were filed as per the tier rate in (4) above. The following is a breakdown of applicable penalty amounts ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for the three current IRP processing years:

Research IDRS CC: PMFOLS and CC: PMFOLD to confirm IRS received dates for IRs other than Form W-2.

Duplicate Filing: If IDRS research indicates a duplicate filing, take the following action:

If the taxpayer states they mailed paper IRs (other than Forms W-2) timely:

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If the taxpayer provides a copy of a postage receipt for proof of timely filing:

If the taxpayer acknowledges the IRs (other than Form W-2) were mailed late, but disagree with the penalty rate because they were mailed before the Tier level cutoff date:

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If the taxpayer states they electronically filed the IRs (other than Form W-2) timely or they acknowledge the IRs were filed late but disagree with the penalty rate because they were filed before the Tier level cutoff date, AND:

Form W-2 are filed with the Social Security Administration (SSA).

If the taxpayer states they electronically filed their Form W-2 package timely or they acknowledge the Form W-2 were filed late, but disagree with the penalty rate because they were filed before the tier level cutoff date, use ERQY to determine the received date of the Form W-2. The ERQY date is posted ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡

If the taxpayer states they mailed their paper Form W-2 package timely, use ORS to determine the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is generally stamped in the "For Official Use Only" box in the lower right-hand portion of the Form W-3.

If the taxpayer acknowledges they mailed their paperForm W-2 package late, but disagrees with the penalty rate because they were mailed before the tier level cutoff date, use ORS to determine the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is generally stamped in the "For Official Use Only" box in the lower right-hand portion of the Form W-3.

Waive (or abate previously posted) late filing penalty when the explanation for submitting the IRs late meets reasonable cause. See IRM 4.19.25.8, Request for Reasonable Cause, for more information.

Beginning with TY 2023, taxpayers who file 10 or more total information returns are required to file them electronically per IRC 6011(e) and Treas. Reg. 301.6011-2. For TY 2022 and prior, taxpayers were required to electronically file information returns for 250 or more of the same document type.

The failure to file electronically penalty applies to the number of information returns over the applicable threshold.

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Generally, taxpayers must establish reasonable cause for this penalty to be abated. See IRM 4.19.25.8, Request for Reasonable Cause, for more information. The electronic filing requirement does not apply if the taxpayer applies for and receives a hardship waiver. The taxpayer must file Form 8508 , Application for a Waiver From Electronic Filing of Information Returns. The waivers are evaluated on a case-by-case basis and are approved or denied based on Treas. Reg. 301.6011-2(c)(6).

If the taxpayer claims they would suffer undue economic hardship from filing electronically then do the following:

Beginning with TY 2023, an exemption is allowed for filers for whom using the technology required to file electronically conflicts with their religious beliefs. Although filers are not required to file a waiver or take any action to claim religious exemption, filers may notify the IRS by filing Form 8508, Application for a Waiver From Electronic Filing of Information Returns. The exemption will be permanently recorded in the Payer Master File and the filer will not need to file a waiver in subsequent years. If a filer verbally communicates religious exemption from e-filing, an indicator must be manually input into IMF or BMF. To record religious exemption from e-filing, input TC 016 and set the RLG-EX indicator value to 1. The RLG-EX indicator will display on IMFOLE, BMFOLE, and ENMOD. This indicator is separate from the PMF indicator and will also prohibit any future systemic assessment of an electronic media penalty on paper filed information returns under the IRP program.

All potential failure to file electronically penalty cases are compared to the waivers of the electronic media filing requirement posted to the PMF prior to the generation of Notice 972-CG. IDRS CC: PMFOLS contains a field "W" that indicates if the taxpayer submitted a waiver to file IRs other than on electronic media. The "W" field appears to the right of the "WITHHELD" field. Directly below the "W" , either a "Y" (for Yes) or "N" (for No) will display for each of the information return types.

If the taxpayer’s response indicates they are not subject to penalty because they were granted a waiver from filing on electronic media, check to see if the taxpayer’s TIN appears on the waiver listing provided by TSO.

If a taxpayer responds with an approval letter from TSO granting a waiver of the electronic filing requirement, waive the penalty.

If the taxpayer’s response indicates they experienced an unexpected increase in business activity during the year (for example: The taxpayer had an unexpected increase in hiring), research IDRS CC: PMFOL (or ORS/ERQY for Form W-2) in the prior year.

Duplicate Submissions: If the taxpayer's response indicates duplicate data was provided on paper and on electronic media:

If the taxpayer requests a copy of the Form 1096 submission, sanitize the page(s) of the IDRS CC: PMFOL transcript containing the record(s) relevant to the penalty and send the taxpayer a copy with an explanation.

If the taxpayer requests a copy of the Form W-3 submission, print the Form W-3 information from ORS and send it to the taxpayer.

If the taxpayer states the failure to file on electronic media penalty was unavoidable because the previous year’s notification (Notice 972-CG) was not received until after the current year IRs had already been filed, research IDRS CC: PMFOL prior year history for the same issue.

A missing or incorrect TIN generally occurs when:

A CP 2100 or CP 2100A may be issued prior to the generation of a Notice 972-CG, to alert the taxpayer they may be responsible for backup withholding when a missing or incorrect TIN is identified for certain information returns. The following IRs may be subject to backup withholding (BWH):

When a penalty is imposed for failure to include correct TINs, a taxpayer must comply with special rules for acting in a responsible manner. In general, if the taxpayer failed to include a TIN or if the taxpayer was notified of an incorrect TIN (for example: receipt of CP 2100 or CP 2100A), they will have acted in a responsible manner by making solicitations to obtain the correct TIN information as outlined under Treas. Reg. 301.6724-1(e) and Treas. Reg. 301.6724-1(f).

Initial solicitations can be made in one of the following ways:

Per Treas. Reg. 301.6724-1(e)(2), annual solicitations must be made by mail or telephone.

When the taxpayer requests a waiver/abatement of the penalty for failure to include correct TINs:

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If the taxpayer’s explanation lacks sufficient detail to determine if they acted in a responsible manner:

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When acknowledging the taxpayer's response input the correspondence date using the following priority:

When a letter is sent to a taxpayer, it must explain the process or actions being taken. A letter requesting information should have the following paragraphs, as applicable, in addition to other paragraphs sent for a specific condition:

Always print a copy of the CRX letter issued to the taxpayer and keep it with the case file. A copy of the IDRS CC: LPAGE screen indicating "REQUEST COMPLETED" is acceptable. The CRX letter case documentation must be merged with the digital case file on the document repository.

IRP reconsiderations are subject to Policy Statement P-21-3 (formerly P-6-12) guidelines. See IRM 4.19.25.2.4, Policy Statement P-21-3 (Formerly P-6-12) Guidelines (Action 61), for more information.

Use the procedures/guidelines in IRM 4.19.25.7, 972-CG Reply Procedures, (including the subsections) and IRM 4.19.25.8, Request for Reasonable Cause, (including the subsections) to evaluate requests for reconsideration.

Reconsideration responses result in one of the following:

Determine if the account is in a balance due status:

If there will still be a balance due on the account when closing a case, reduce IDRS CC: STAUP to three cycles or input a TC 472 to reverse a previously posted TC 470, if applicable.

While most requests for reconsideration can be worked from the information provided and IDRS research, there are times when it may be necessary to review the original IRP assessment.

For paper cases, do the following:

For digital cases, do the following:

Requests for relief from civil penalty assessments received after the initial request for relief has been denied through the issuance of Letter 854-C are generally considered an appeal of the previous penalty relief denial.

The appeals coordinator acts as the liaison between the Operation and Appeals.

All cases requesting penalty relief through the IRS Office of Appeals must be processed within 30 calendar days from the IRS Receive Date.

IRP penalties must be assessed within three years after the due date of the return or the date filed, whichever is later.

A claim for credit or refund must be filed within three years from the time the return was filed or two years from the time the penalty was paid, whichever is later.

Generally, taxpayers must establish reasonable cause for the penalty to be abated. Use the procedures/guidelines in IRM 4.19.25.7, 972-CG Reply Procedures, (including the subsections) and IRM 4.19.25.8, Request for Reasonable Cause, (including the subsections) to evaluate the response. If the penalty can be fully abated, see IRM 4.19.25.17.1.2, Full Abatement Determinations, for more information.

If the taxpayer submits corrected returns in response to the penalty adjustment notice (CP 15/ CP 215). Receipt and Control will notate on the CP 15/ CP 215 notice, "Processable returns submitted" , and also notate the received date and the number of returns submitted.

Review the taxpayer's response to determine if the explanation establishes reasonable cause. If the taxpayer's explanation does not establish reasonable cause and the received date indicates the penalty should be reduced, do the following:

If the taxpayer’s explanation does NOT meet reasonable cause regardless of whether they include processable returns, disallow the claim. See IRM 4.19.25.17.1.3, Full Disallowance Determinations, for more information.

If the cooperative indicates they have an approved exemption, and a copy is included, waive or abate the penalty.

If the cooperative indicates they have an approved exemption, and a copy is not included, treat correspondence as an insufficient reply.

Upon receipt of an unprocessed Form 3491, evaluate the form for completeness and validity.

The Form 3491 is considered complete when the taxpayer fills out section 1a, Name of Organization, through section 6, Gross Receipts, and must include the signature of the officer under the penalties of perjury jurat statement.

The Form 3491 is considered valid when the percentage shown on line 6a, column 4, is 85 percent or more. Verify this percentage by:

If the Form 3491 is incomplete and/or invalid, return it to the taxpayer with Letter 131-C, Information Insufficient or Incomplete for Processing Inquiry. Do NOT make any annotations on the Form 3491.

If the Form 3491 is complete and the 85 percent rule is met, the request will be approved.

Aged criteria - Notice 972-CG replies and requests for reconsideration will be considered aged at 45 days from the IRS received date.

Tax examiners track the time spent performing IRP-related activities based on the applicable Organization Function Program (OFP) code. See IRM 4.19.25.21.1.1, Organization Function Program Codes, for more information.

Tax examiners record the volume of cases worked on a daily basis using an inventory tracker (for example: Feeder Sheet).

Tax examiners use the CCA reports to monitor and manage their individual inventories.

Program Completion Date (PCD): Each year, all of the case types listed below must be resolved by midnight, March 31st following the initial Notice 972-CG notice date:

IRM guidance must be followed and cannot be modified locally to accelerate case processing in order to meet PCD. Any deviation must be formally approved by Exam Policy.

Age Criteria: IRP replies and reconsideration replies will be considered aged at 45 days from the IRS received date.

Prior to the first 972-CG mail-out date, MITS provides the campus with a database file containing the TINs of all the taxpayers that will be sent a notice, broken out by notice date. This information will be used to open a control base for each case with:

Default assessment time frames: Cases where the taxpayer has not responded to the Notice 972-CG will be purged (for example: assessed) for the proposed penalty ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

The digitalization of all IRP correspondence has been implemented to eliminate paper processing, streamline case processing, and improve the taxpayer experience. A document repository was created for IRP correspondence.

Beginning with TY 2022, all IRP replies and reconsiderations must be digitized.

All guidance provided in IRM 4.19.25, Information Return Penalty (IRP) Procedures, must continue to be followed. Any deviation/change to these procedures will be provided by Exam Policy.

Existing inventory management tools such as IDRS Inventory Reports and/or the ORCAS reports should continue to be used to identify workload priorities as established in IRM 4.19.25.21.1.2, IDRS Inventory Report, and IRM 4.19.25.23.7.2, IDRS Overage Report.

All clerical processing of current year IRP replies and reconsiderations must be completed as required in IRM 4.19.25.22.3, Controlling Incoming Mail.

All IRP replies and reconsiderations must be batched and controlled on IDRS prior to any scanning. Each batch must be controlled to the appropriate inventory wall as required by IRM 4.19.25.22.3.1, Batching and Controlling Replies, and IRM 4.19.25.22.3.2, Batching and Controlling Reconsiderations.

Once controlled to the appropriate inventory wall, each batch must be perfected prior to scanning, and reviewed after scanning, to ensure all scanned information is usable, stored, and can be retrieved.

In the document repository, each piece of correspondence will be given a standard name using the following naming convention: TINMFTTAXYEAR.

When a batch has been scanned, the paper batch will be placed in the designated document retention area. The batches should be filed in a manner so documents can be easily retrieved. The paper will be retained for at least one year. A purge date will be determined in the future.

The IRS received date for a mailed response is determined by following the priority criteria listed below:

The IRS received date for a faxed response is determined by the following priority criteria listed below:

All clerical processing of Notice 972-CG replies and reconsiderations must be completed within 14 business days of IRS receipt or three business days from receipt into the operation, whichever is later. This includes the following clerical processes:

Use the SB/SE Document Matching Batcher to:

When the SB/SE Document Matching Batcher identifies mail as an Association, do the following within five business days of identifying the Association:

Route incoming Form 3491, Consumer Cooperative Exemption Application, to the designated Specialist in the Technical Function.

Additional research may be required to ensure the mail belongs to the IRP program. Route all other mail, as appropriate.