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

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

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

IRM 4.51.4.2.1, Policy Statement P-1-236: Fairness and Integrity in Enforcement Selection.

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

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

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

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

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

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

Liability Determination - Examination IRM structure is as follows:

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

Process all incoming correspondence through an initial mail sort as shown in the following If and Then table.

Paper documents that have been batched are scanned and processed through Ephesoft.

Clerks may need to perform additional IDRS research on correspondence that is missing the social security number of the primary taxpayer, missing tax period, etc. If extensive research is required, refer the unresolved correspondence to the work leader.

Any paper correspondence that is not scannable will need to process manually. The following table details the update process:

Download and then process Document Upload Tool Campus Correspondence Examination (DUT CCE) receipts as shown in the following IF and THEN table.

Download receipt zip file from Document Upload Tool Digital and Mobile Adaptive Forms (DUT DMAF). Extract the contents of zip file, convert to PDF and combine documents into one PDF. Once combined, name the document to the Standard Naming Convention. Cut and paste the resulting document into the Correspondence Digitalization Initiative (CDI) Intake folder.

Tax Examiners and Tax Compliance Officers may receive Document Upload Tool Taxpayer Facing Employee (DUT TPFE) correspondence. When routed for clerical processing, name to the Standard Naming Convention. Cut and paste the document into the Correspondence Digitalization Initiative (CDI) Intake folder.

Process fax or e-Fax receipts by naming the received PDF document to the Standard Naming Convention. Cut and paste to Correspondence Digitalization Initiative (CDI) Intake folder. Optional: Use the Document Processing Assistant (DPA) to efficiently and accurately name and sort documents.

The Zero Paper Initiative (ZPI) process will route vender scanned paper documents through Digital Inventory Management (DIM) application. Download PDF documents from DIM and name them to the Standard Naming Convention. Cut and paste to Correspondence Digitalization Initiative (CDI) Intake folder.

Successfully CDI processed undeliverable and unclaimed Letter 3219 should then be processed in Undeliverable Research Tool.

Document processing in CDI will reject based on the following conditions:

All rejects, except for Case Not Found, will be available for clerks to download in CDI based on Campus. All rejects will need to be downloaded, corrected and processed timely to meet processing timeframe requirements. See the CDI User Guide for instructions on how to query and download rejects.

Case Not Found rejects can be found on the No Campus inventory. A round-robin schedule is maintained to show which TS or SB/SE Campus is responsible for resolving rejects in No Campus inventory each week. See the CDI User Guide for the No Campus schedule.

In addition to CDI processing rejects, AIMS update rejects may occur. Each Campus is responsible for running CDI reports for AIMS update failures and resolve with manual updates to AIMS on IDRS. See the CDI User Guide on running the AIMS reject report.

Successful processing of new correspondence and Agreeds will update RGS/CEAS and IDRS when applicable. All successful updates will have the documents inserted into Case File Documents and have the case moved in RGS to RGS Group DP.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Cases with an AIMS tracking code 6746 have been converted to electronic case files. Incoming correspondence, E-Faxes and all paper documents have been uploaded to the case in the Office Documents section on RGS. Cases with an AIMS tracking code 6697 are hybrid cases. These cases have correspondence that has been partially converted to digital/virtual correspondence and also have paper correspondence.

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

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

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