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Part 25. Special Topics

Chapter 12. Delinquent Return Refund Hold Program

Section 1. Processing Refund Hold Program Inventory

25.12.1  Processing Refund Hold Program Inventory

25.12.1.1  (09-25-2008)
Program Overview

  1. Purpose: This section of the IRM contains processing guidance for working Refund Hold inventory. Refund Hold (RH) inventory occurs when the Service holds individual income tax refunds and credit elects when a current year refund return is filed and the taxpayer's account has at least one unfiled tax return within the five years prior to the RH tax year. This includes modules where no Transaction Code (TC) 140 is present. This section of the IRM contains the delinquency criteria for holding a taxpayer's refund while the Service investigates the delinquent return(s) and the functional procedures for screening, working and monitoring these cases.

  2. Scope: The RH Program is under the direction of Wage and Investment (W&I) Filing and Payment Compliance. The program is consolidated at the Austin site for Compliance Services Collection Operation (CSCO) and is worked in collaboration with (W&I) and Small Business/Self Employed (SB/SE) Compliance Services Examination Operation (CSEO). The refund is used to offset any balance due on the delinquent return(s). If there is no balance due, or an amount remains after offsetting, the refund is released to the taxpayer.

  3. The Refund Hold Program is based on IRC Section 6402 (a) which provides that the Secretary may, within the applicable period of limitations, credit the amount of any overpayment against any tax liability of the person who made the overpayment. IRC Section 6402 (b), Authority to make credits or refunds - Credits against estimated tax,states, "The Secretary is authorized to prescribe regulations providing for the crediting against the estimated income tax for any taxable year of the amount determined by the taxpayer or the Secretary to be an overpayment of the income tax for a preceding taxable year."

  4. If after initial contact, the delinquent return(s) are not filed, a Statutory Notice of Deficiency may be issued. Once issued, the refund is applied to the tax year of the proposed deficiency(ies). It will remain there until a return is filed or the Service imposes the proposed assessment after the appropriate suspense period. See IRM 5.18.1.7.11.38 (5) for Automated Substitute for Return (ASFR) Statutory Notice of Deficiency time frames.

  5. A refund will be released if:

    1. The delinquent return(s) being filed reflect a refund or even balance and results in all delinquencies being resolved and there are no balances due related to this taxpayer.

      Note:

      Unless there is a Compliance select code present see LEM 25.12.1.2 (1), Refund Hold Case Criteria.

    2. There is no filing requirement for the delinquent year(s).

    3. The taxpayer establishes that an economic hardship exists. See IRM 25.12.1.9, Taxpayer Advocate Service (TAS) Consideration for guidelines on handling cases where the taxpayer has established that an economic hardship exists, or

    4. The taxpayer is in a declared disaster/emergency area and releasing the refund is appropriate at that time. See IRM 21.12.1.10, Guidelines for Taxpayers in Disaster and Emergency Areas.

  6. The following functions will have RH cases assigned in their inventory:

    • CSCO; this portion of the program is consolidated at the Austin Service Center (AUSC) site.

    • Compliance Field Functions.

    • W&I and SB/SE CSEO.

  7. Each functional area that is assigned a RH case is responsible for monitoring its cases and ensuring disposition of the case is expeditious and timely. IRC Section 6611(e) provides that there is no interest if an overpayment is refunded within 45 days after the due date of the return, or in the case of a late filed return, within 45 days after the return is filed. If, however, the refund is not made within the 45 day period, interest must be paid from the date of overpayment. Thus, it is imperative RH cases be processed expeditiously and monitored for the most expeditious resolution possible to prevent additional cost to the Service while processing these cases.

25.12.1.2  (09-25-2008)
How to Identify Delinquent Return Refund Hold

  1. The Service holds individual income tax refunds and credit elects when a current year return is filed with the established refund amount in LEM 25.12.1.2 (1), Refund Hold Case Criteria, and the account has at least one module within five years prior to the RH where IRPTR information exists and no return has been filed.

  2. Refunds held by this program contain all of the following codes on IDRS:

    1. TC 570 with 999 in the Julian date field of the document locator number (DLN) (digits 6, 7 and 8).

    2. Reason code (RC) "RF" displayed on the Integrated Data Retrieval System (IDRS) on the module of the refund year.

    3. Freeze Code "-R" on IDRS module for the year of the refund being held.

  3. Refund Hold modules allow for offset during the designated hold period see LEM 25.12.1.2(2), Refund Hold Case Criteria, Refund freezes will be released per LEM 25.12.1.14.1, Release of the Refund Hold Freeze only.

25.12.1.3  (09-25-2008)
Refund Hold Research

  1. Research tools that will assist in resolving RH cases include, but are not limited to, the following systems, IRMs, LEMs and documents:

    • Integrated Data Retrieval System (IDRS)

    • Various IDRS Command Codes

    • Desktop Integration (DI)

    • Computer Files On Line (CFOL) Command Codes

    • Document 6209

    • Automated Substitute for Return system (ASFR)

    • Transcript Delivery System (TDS)

    • IRM 21.1, Accounts Management and Compliance Services Operations

    • IRM 21.3, Taxpayer Contacts

    • IRM 5.18.1, Automated Substitute for Return (ASFR) Program

    • IRM 5.19.2, Return Delinquency

    • LEM 25.12.1, Delinquent Return Refund Hold Program

    • LEM 5.19.2, Return Delinquency

    • IRM 2.3, IDRS Terminal Responses

    • IRM 2.4, IDRS Terminal Input

  2. When dealing with joint filing, research both spouse's accounts.

  3. The Transcript Delivery System (TDS) can be used to send Wage and Income Information Documents to the taxpayer, in lieu of any procedures throughout this IRM that state to send IRPTR or SUPOL supplements with the appropriate IRS letter.

    Note:

    See IRM 21.2.3.4, Transcript Procedures, for procedures on using the Transcript Delivery System (TDS) for researching tax account and return information. TDS delivers tax account and return information to the user instantly along with an appropriate cover letter (when applicable). The IRM has been updated to include procedures for IRS employees using TDS.

25.12.1.4  (09-25-2008)
Refund Hold Coordinator (RHC) Roles And Responsibilities

  1. A Refund Hold Coordinator (RHC) must be established in the functional areas responsible for RH cases. The functional areas are Compliance Services Collection Operation (CSCO), Automated Substitute For Return (ASFR), Compliance Services Examination Operation (CSEO), and Compliance Field Operations.

  2. The Directors of Compliance within W&I and SB/SE are responsible for the cases assigned to each Business Operating Division (BOD) respectively. Each BOD has Program and Policy Analysts who coordinate and oversee the program.

  3. CSCO and CSEO must designate a RHC(s) who will:

    1. Communicate to Headquarters Policy/Program Analysts any systemic or technical problems or issues identified during case processing.

    2. Review and take action on all cases listed on the LE62741 CSCO and LE62740 CSEO weekly listings.

    3. Ensure timely implementation and oversight in their area.

  4. All other functional areas must designate RHCs who will:

    1. Establish an inventory control system to identify the location and status of active RH accounts.

  5. The Examination RHC is responsible for contacting the Office of Appeals or Area Counsel to determine the status and history of a RH case in Appeals or Litigation. In coordination with these offices, make a decision immediately whether to release the freeze.

  6. All RHCs must process the RH program cases within their assigned area of responsibility and will:

    1. Ensure timely movement of cases between functions with assigned refund hold Taxpayer Delinquency Investigation (TDI).

    2. Act as a liaison between functions within and between area offices.

    3. Review accounts when approval has been given to continue the RH beyond the designated hold period, CSEO only, see LEM 25.12.1.4, Holding a Refund Beyond the Designated Hold Period.

      Note:

      Cases assigned to ASFR cannot be held beyond the designated hold period.

25.12.1.5  (09-25-2008)
LE627 Refund Hold Listings

  1. During weekly analysis, all modules meeting RH criteria are extracted from Master File and created on IDRS. Refund Hold modules are identified on IDRS See IRM 25.12.1.2, How to Identify Delinquent Return Refund Hold. A program is run weekly that identifies all RH modules currently on IDRS and generates the LE6274XZ listings. The LE62741Z (CSCO) and LE62740Z (CSEO) are the tools the RHC uses to identify and if necessary, move the delinquency into the correct functional area's inventory.

  2. An electronic version of the LE6274XZ listings is accessible on Control D. All RHC should have access to Control D. A 5081 is required for access to Control D. The Control D website is located at http://172.27.36.136/bmc-ctd-wa-isapi.dll?0=LoginWindow&. The RHC may print the LE6274XZ from Control D.

    The CSEO LE62740Z contains the following information:

    • IRS Received Date

    • 420 DLN

    • Taxpayer Identification Number (TIN)

    • Name Control

    • RH Tax Period

    • Collection Assignment

    • Action Date

    • Category Code

    • Assignee

    • Freeze Codes

    • Return Cycle

    • Module Balance

  3. The CSCO LE62741Z is divided into three sections; ASFR 8000 assignments, CFf 1000-6900, and all other assignments.

    Each section of the LE62741Z contains the following information:

    • Return Cycle of Refund Hold Year

    • TIN

    • Name Control

    • Tax Period

    • Collection Assignment

    • Category Code

    • Assignee

    • Module Balance

25.12.1.6  (09-25-2008)
Taxpayer Notification of Refund Hold

  1. When a return is filed which meets the RH criteria, the taxpayer is notified by:

    • CP (Computer Paragraph) Letter CP 63, Refund Hold(Field, and CSCO) which contains the toll-free number 18668973315, or

    • CP 88, Taxpayer Delinquent Investigation (TDI) Refund Hold(CSEO) . For toll-free numbers, See IRM 21.3.3.4.2.4 (3) for programs or functions that don't have their own specific toll-free number.

  2. These letters inform the taxpayer the refund is being held because there are delinquent return(s). The letters direct the taxpayer to file the delinquent return(s) or tell us why there is no filing requirement on his/her account. In addition, the letters advise the taxpayer that if the taxpayer does not file, the Service will file the delinquent return(s) for the taxpayer.

25.12.1.6.1  (09-25-2008)
Undeliverable Notification Letters

  1. If systemically generated CP 63 and CP 88 are returned as undeliverable, they are returned to the function that generated the letter for research on both primary and secondary Social Security Numbers (SSN) for a current address.

    IF THEN
    A new address is found, Readdress and issue Correspondex Letter 2825C.
    No new address is found, Initiate Address Research (ADR) on the case.

    Note:

    DO NOT release the freeze if the notification letter is undeliverable.

  2. Utilize IDRS to generate new 2825C letters.

    Note:

    Do Not attempt to generate the 2825C letter via the ASFR system.

25.12.1.7  (09-25-2008)
Functional Processing

  1. This section provides instructions for functional processing of RH cases. When an account is selected for RH, the functional area to which the account is assigned will be responsible for working the RH case.

  2. Modules not assigned to ASFR, Collection Field function (CFf), or Examination are reviewed and the modules are either referred to ASFR or Examination or closed.

  3. While RH accounts must be worked quickly, guard against asserting potential liabilities without adequate case development and always consider information taxpayers wish to provide.

  4. This section explains the urgency of working RH cases quickly and with sensitivity. While it is important to ensure filing and payment compliance, it is also important to exercise good judgment and reasonableness in special situations.

  5. The RH program only applies to delinquent return modules which are already assigned to Collection or Examination. The assigned function is notified of the RH freeze being set within one week through generation of the LE627XZ listings which ensures the case is quickly identified and receives priority attention.

  6. There may be instances when a refund meets the RH criteria but the case requires special consideration. If a special situation applies, be sensitive to the facts and decide if releasing the freeze is appropriate.

  7. This IRM also includes information for:

    • RH cases with prior years in Appeals.

    • TAS Consideration.

    • Guidelines for Taxpayers in Disaster and Emergency Areas.

    • Situations when Injured Spouse allocations are filed.

    • How to process RH accounts which are also in the Earned Income Tax Credit (EITC) Unallowable program.

  8. The assigned function or employee must work RH accounts expeditiously to:

    • Minimize taxpayer burden while ensuring they comply with filing requirements;

    • Limit credit interest paid to the taxpayer; and

    • Satisfy the intent of Congress that refunds be made as expeditiously as possible.

  9. Within the designated hold period from the filing of the claim for refund, these refunds must be:

    1. Offset to liabilities, or

    2. Applied to the tax year(s) of the proposed deficiency(ies) when the Statutory Notice of Deficiency is issued, or

    3. Authorized to be held beyond the designated hold period while completing case actions, or

    4. Released to the taxpayer.

25.12.1.8  (09-25-2008)
CSCO Incoming Cases

  1. Each week review all new RH cases included on the LE62740Z and LE62741Z. The RHC will notify Field Collection of new cases assigned to those inventories. Each function is responsible for reviewing the LE6274XZ list cases assigned to their functional area and determining whether the freeze should be released or the refund applied to the tax year of a proposed liability.

  2. All cases not assigned to CSCO, Field Compliance functions or CSEO will be reviewed by the ASFR/RHC and either transferred to the appropriate inventory or closed by releasing the freeze.

25.12.1.8.1  (09-25-2008)
CSCO RH Case Screening/List Processing

  1. The RHC(s) will use the LE62740Z for CSEO and LE62741Z for CSCO Listing to screen new RH accounts.

  2. Review new receipts to determine where the account is assigned.

    IF THEN
    An -L Freeze is present on the TDI module,

    1. Input a TC 595 88 on the TDI module.

    2. Refer to Examination function using local procedures.

    Note:

    DO NOT release the freeze.
    The TDI module is assigned to a revenue officer, If available, update Integrated Collection System (ICS) with information that the account is a RH case. If not available, notify the revenue officer by telephone or by sending a Form 4442.
    The TDI or RH module has a control base other than ASFR, Contact the employee with the control to determine if there is information needed to resolve the case.
    The TDI is assigned to 8000, Verify that the module is on ASFR. If not, Notice Code T the module: ASIGN with T in the column marked CCD.
    The account is not assigned to 8000, Examination or the Field,

    1. Ensure that the module fully exists on TDINQ. If not, TDIRQ the module.

    2. If the TDI is closed but the RH is not satisfied, re-open the TDI.

    3. Assign the account to 8000 by inputting Notice Code T.
    Account is in status 02, 03 or 04, Follow LEM 5.19.2.6.4.3, IMF Automated Substitute for Return Program (ASFR) Referrals.
    If not liable, refund or even balance is determined, Release the freeze per LEM 25.12.1.14.1, Release of the Refund Hold Freeze.

  3. The goal of LE62741Z CSCO list processing is to ensure RH modules are analyzed to determine liability, closed or accelerated to ASFR. The LE62741Z CSCO List should be reviewed weekly and the following actions taken:

    1. Delinquencies that have 8000 as the Collection Assignment Code, should be on the ASFR database. The ASFR RHC should verify that all cases assigned to 8000 are on the ASFR database. If the delinquency is not on the ASFR database, the ASFR RHC must Notice Code T the module. The following week the ASFR RHC must verify the module is now on the ASFR database.

    2. Utilize IMFOLI to determine which delinquencies need to be addressed. Research IMFOLI and review for modules in statuses 02, 03 ,04 , 06, or never created (Missing TY in module list).

    3. Utilizing Command Code (CC) TDINQ verify the TDI Status code is equal to 1. Look for assignment number (last four digits). If the TDI Status code is not equal to one (1) this indicates the account is not complete on IDRS or nothing is open in TDI Status.

    4. Research module on IDRS for pending transactions. Determine if pending transactions are going to satisfy any Refund Hold delinquencies. If TC 599 or TC 590 is present, no action is required. If TC 594 is on the module and all delinquencies are resolved, release the freeze per LEM 25.12.1.14.1, Release of the Refund Hold Freeze .

    5. If no satisfying conditions are present using command code (CC) TDINQ verify TIF32 data is present. If present accelerate to TDI Status 03. If TIF32 data is not present utilize CC TDIRQC to pull TIF32 data onto the account. This action will initiate TDI processing.

    6. Accelerate Status 02 and 04 cases by inputting TC 590 with closing code (cc) 19 via FRM49 and TC 592. Both actions can be completed in the same cycle. Two cycles later the case should go into Status 02. Accelerate to Status 03 if the module has not progressed to Status 03 automatically.

    7. For Status 03 modules not assigned 8000 and the assignment on TDINQ is less than 1000 or equal to 7000 ASIGN 8000.

25.12.1.8.1.1  (09-25-2008)
ASFR Case Processing

  1. ASFR may already be assigned on a delinquent return account prior to the RH.

  2. A weekly file of all RH cases assigned to 8000 is run. The file is run against the existing inventory and the RH indicator is turned on for modules on the system. Additionally, new TDI modules assigned to 8000 are loaded. Modules in 8000 that are not on the system are also identified. The RHC is responsible for taking actions to ensure those accounts listed are moved onto the ASFR system.

  3. ASFR systemically:

    1. Places a special indicator "REFUND FREEZE" on the TDI and on the identity record.

    2. Generates ASFR 40X Refund Hold Lists.

  4. The ASFR system analyzes where the module is in the process and:

    If Then
    The module(s) is unstarted and is in workable status, ASFR systemically moves the module into 031, 035 and then 030.
    The module(s) is in unworkable status, ASFR will generate the ASFR 408 list that includes a list of modules in error status needing manual update or resolution.

  5. For any module in a status where the ASFR system cannot determine the next correct action take the following actions:

    If Then
    ASFR can work the modules and the designated hold period has not expired, Ensure the CP 63 letter has been issued and move the module(s) into the next appropriate ASFR status.
    ASFR cannot resolve the module, but IRP exists that shows a potential liability, or if a Statutory Notice of Deficiency cannot be issued within the designated hold period, If a return or response is received, process the return or response and determine if the freeze should be released. If no response is received, let the refund systemically release at the end of the designated hold period.

  6. ASFR employees working RH cases are notified of the status of the account by various reports and listings.

  7. Austin RHC should process ASFR 40X listings at the site weekly.

  8. ASFR generates 3 lists to facilitate prompt resolution of RH cases.

    1. ASFR 405 List, Refund Hold Research List, generates for new Refund Holds accounts assigned to 8000 where the ASFR module is in the following statuses: 015, 016, 089, 762, 107, 109, 062, 010, 011, or 055 and modules not on the ASFR database. This list must be researched on ASFR and IDRS prior to next week processing.

      Do the following:

    If And Then
    No modules are found on ASFR, there is an open TDI(s) on IDRS, Notice Code T the module(s) onto ASFR.
    The missing module(s) is in an unworkable status, TSIGNed to 8000 and not being worked in CSEO, Follow IRM 5.18.1 to resolve modules in the unworkable statuses. If possible, move into workable status. Do not release the freeze.

  9. The ASFR 407 List generates when a RH case moves into status 090. The ASFR 407 list, Refund Hold Money Transfer List, is systemically processed by the ASFR system. If it is noticed that refunds are not systemically offset as appropriate, complete manual offset transactions on the case and notify HQ analyst immediately.

    1. Manually move the entire refund to the earliest 90-day statutory module or the first module in status 090.

    2. Input a TC 570 with the credit transfer.

  10. The ASFR 408 List, Refund Hold-Expiration Alert,generates weekly. This list identifies all RH cases currently on the system by SSN, tax year, and ASFR status. Use this list to determine where the module is in ASFR processing and if the module will reach status 090 before the designated hold period expires.

    1. Resolve all failed conditions on this list per IRM 5.18.1.8.3, ASFR Lists.

    2. Research the module and resolve any other condition(s) which may subsequently cause the module to error out.

25.12.1.8.1.2  (09-25-2008)
Taxpayer Responses

  1. Employees in area offices, toll-free sites, and campuses may be contacted by taxpayers regarding their Return Delinquency Refund Hold cases. DO NOT RELEASE FREEZES - CONTACT THE APPROPRIATE ASSIGNED FUNCTION.

    Note:

    Taxpayers may make contact by visiting an IRS Field Assistance site or call the IRS toll-free lines regarding a RH prior to receiving CP 63 or CP 88. If the taxpayer filed electronically, they may receive notification their request for direct deposit is denied. Employees must first determine the reason for the RH. See IRM 25.12.1.2. How to Identify Delinquent Return Refund Hold , for information to identify refunds held by this program.

  2. Address all situations requiring special handling.

    IF THEN
    If the taxpayer claims the RH meets TAS referral criteria, See IRM 25.12.1.9., Taxpayer Advocate Service (TAS) Consideration
    If the taxpayer lives in a disaster or emergency area, See IRM 25.12.1.10., Guidelines for Taxpayers in Disaster and Emergency Areas.

  3. Check IDRS to determine if the case is assigned to ASFR, Examination, or AO Collection.

    IF THEN
    Account is assigned to ASFR (TSIGN 8000), Toll-Free: Provide the RH toll-free number 18668973315. Field Assistance: See IRM 25.12.1.8.1.4., Taxpayer Files Return(s) Forward ASFR returns to the appropriate ASFR site.
    Account is assigned to Examination (-L Freeze or TC 424), Toll-Free and Field Assistance: Complete Form 4442 and route to Examination per organization code on the Audit Inventory Management System (AIMS). Route to Examination.
    Account is assigned to Area Office Collection, Toll-Free and Field Assistance: Complete Form 4442 and route to Area Office.

    Note:

    Update ICS, if available.
    There is no assignment, Toll-free: Refer the taxpayer to the toll-free number 18668973315. Field Assistance: Follow IRM 25.12.1.8.1.4, Taxpayer Files Return(s).

25.12.1.8.1.3  (09-25-2008)
Taxpayer Written Responses

  1. When responding to taxpayers in RH ensure you Warn Of Enforcement Action (WOEA) as follows:

    • The IRS has the authority to prepare the taxpayers return (IRC Section 6020 (a) and (b); however, a return under IRC Section 6020(b) is prepared using a marital status of single or married filing separately and only one personal exemption with no business expenses or itemized deductions, potentially resulting in a greater balance due than if the taxpayer was to file the return.

  2. For taxpayer correspondence inquiry, utilize the appropriate IDRS letter and do the following:

    IF THEN
    Taxpayer states the return(s) was previously filed under a different name or SSN and filing is verified, Close delinquency appropriately per Document 6209, Section 11, TDI Closing Codes and follow LEM 25.12.1.14.1, Release of the Refund Hold Freeze.
    Taxpayer states filed with spouse and filing is verified and there are no other balance dues related to this taxpayer, Close delinquency appropriately per Document 6209, Section 11, TDI Closing Codes and follow LEM 25.12.1.14.1, Release of the Refund Hold Freeze.
    Taxpayer indicates the need for income information for the delinquency(ies) causing the RH, Provide the information via Transcript Delivery System if available or send IRPTRW for the tax period(s).
    Taxpayer needs forms, Provide them with: www.irs.gov for Internet access to forms or with the forms toll-free number: 1-800-829-3676.
    The taxpayer does not understand the notice, Advise the taxpayer the refund will not be released until the delinquent return(s) are filed. If they have modules on ASFR WOEA.
    The taxpayer states not liable, Verify via SUPOL and IRPTR if income warrants filing. Advise the taxpayer accordingly and take appropriate IDRS actions.
    The taxpayer deceased, Follow IRM 5.19.2.6.4.5.6, IMF Response Taxpayer Deceased.
    Taxpayer not at this address, Research for correct address and issue 2825C letter if found. If no new address is found, initiate ADR on the account.
    Requests additional time to file, Advise the taxpayer the refund will not be released until the delinquency(ies) is resolved. WOEA for possible ASFR.
    States not their income or they have no knowledge of income, Many times payor information is not specific to the employee's specific place of employment. Have the taxpayer verify his/her employment for the delinquent year in question. If the income appears to be in question follow Third Party Contact procedures. See IRM 5.18.1.10.2.3.11, Third Party Contact. Contact payor to verify income. Send 1901C letter.
    Identity Theft - Do not confuse with no knowledge of income, Assist taxpayer with reporting the identity theft to the proper authorities by advising the taxpayer to: Notify the Federal Trade Commission (FTC) Identity Theft Hotline at 1877-438-4338 or Identity Theft at www.consumer.gov/idtheft/con_about.htm. File a report with taxpayer's local police, notify any one of the three major credit bureaus and contact the local Social Security Administration Office to obtain SSA Form 191. Refer to www.irs.gov (key words "identity theft" ) for additional information.
    1901C Response from payer, Determine correct action based upon employer verification of taxpayer income. Advise the taxpayer of actions taken with appropriate IDRS letter.
    Identity Theft already reported and verifiable, Assist taxpayer in responding to the notice, and provide items to be included with the response which include the following two types of authentication:

    • Authentication of Identity - a copy of a valid U.S. federal or state government issued form of identification (example, driver's license, state identification card, social security card, passport, etc.).

    • Evidence of Identity Theft - a copy of a police report or Affidavit of Identity Theft filed with the Federal Trade Commission.

    • Forward the requested information to the AUSC RHC per the listing of RHCs on Servicewide Electronic Research Program (SERP) Who/Where.

    Identity Theft verification documents received,

    • Conduct liability determination excluding Identity Theft amount. Close if appropriate per Document 6209, Section 11, TDI Closing Codes.

    • Follow LEM 25.12.1.14.1, Release of the Refund Hold Freeze if release of the refund is appropriate.

    • Update CC ENMOD with TC 971, Action Code 501 using CC REQ77.

    • Correct the taxpayer's records by preparing Form 9409, IRS/SSA Wage Worksheet for any income that doesn't below to the taxpayer. Mail Form 9409 to the Social Security Administration (SSA) at the following address: Social Security Administration, 300 N. Greene Street, Baltimore, MD 21201 ATTN: DCC

    Note:

    Document DI history to show that Form 9409 was mailed to SSA.

25.12.1.8.1.4  (09-15-2008)
Taxpayer Files Return(s)

  1. Process RH Returns received as follows:

    1. Date stamp all returns received and ensure they are maintained in a First In/ First Out basis in order to ensure timely processing. Timely processing is three (3) business days from receipt at the site.

      Note:

      Field Assistance only will follow b) below, then immediately forward returns for screening and input of the return to the Refund Hold Coordinator at PO Box 149338, Stop 5501 AUSC, Austin, TX 78714-9338

    2. If all delinquencies are resolved and no balance due exists for the taxpayer, release the freeze per LEM 25.12.1.14.1, Release of the Refund Hold Freeze.

    3. Research all returns received on the ASFR system to determine if the RH return is an ASFR case. If ASFR returns indicate Even or Refund and there are no other obligations, release the freeze per (b). If there is an account on ASFR or there has been an ASFR 30 or 90 day letter issued on the tax year of the return, forward to ASFR for processing. Research of RH returns on ASFR and appropriate module update will reduce CP 36 and default generation. ASFR will input the return and research account for resolution of all delinquencies. ASFR returns received with the RH alert on the ASFR module must be processed within seven (7) days of receipt at the CSCO site or at TC dummy 150 posting if not present and a 30 day letter has been issued. See IRM 5.18.1.10.2.1.1.1 , Refund Hold Responses.

    4. Forward ASFR cases on the Brookhaven Service Center (BSC) database immediately to PO BOX 9013 Holtsville, NY 11742-9013

    5. W&I ASFR cases will remain in and be processed at the ASFR site where received.

    IF AND THEN
    The case is not on ASFR, is a Refund or Even Balance return, Verify via IDRS if this resolves all delinquencies and no other balance due is present Input appropriate TDI Closing Transaction per Document 6209, Section 11,TDI Closing Codes.Release the freeze per LEM 25.12.1.14.1, Release of the Refund Hold Freeze Verify Entity information is correct. Forward the return to Submission Processing.
    If the case is not on ASFR and, is a Balance Due Return, Input appropriate TDI Closing Transaction per the Document 6209, Section 11, TDI Closing Codes. Verify Entity information is correct. Forward the return to Submission Processing.

  2. Expeditious processing of balance due returns and subsequent posting of the TC 150 will resolve the delinquency condition and systemically release the RH freeze resulting in refund issuance.

    Note:

    DO NOT release the freeze on balance due returns.

25.12.1.8.1.5  (09-25-2008)
CSCO Refund Hold Taxpayer Toll-free Contact

  1. Incoming calls to the RH toll-free number, 1-866-897-3315, should be based on the RH account identification per IRM 25.12.1.2, How to Identify Delinquent Return Refund Hold .

  2. This section addresses specific taxpayer issues which may be encountered while taking toll free calls in addition to issues listed in IRM 25.12.1.8.1.3, Taxpayer Written Responses .

  3. Follow established procedures in IRM 21.1, Accounts Management and Compliance Services Operations and IRM 21.3, Taxpayer Contacts while talking to the taxpayer.

  4. Make every attempt to update the taxpayer's account while you have the taxpayer on the phone. Make the taxpayer aware of your actions by stating I would like to take a few minutes to complete the actions on your account. Do you mind holding? If the taxpayer says yes, do not put the taxpayer on hold.

  5. There are specific standards to which ASFR/RH toll-free employees must adhere. The first is to be knowledgeable about the case on which you are speaking with the taxpayer. Appropriately research the account, determine the objectives of the call, and prepare to listen and control the course of the conversation. While protecting the rights of the taxpayer, you must not be intimidating, but respond to the taxpayer's issues calmly and politely. Surnames must be used when identifying yourself and when addressing the taxpayer. To prevent misunderstandings, IRS jargon must be avoided when communicating with the public. Finally, the conversations must be clear, concise, and controlled. Ensure all the taxpayer's questions have been resolved prior to ending the call.

  6. Do not disclose RH criteria provided in LEM 25.12.1 Delinquent Return Refund Hold Program, when explaining required actions to resolve the account to the taxpayer.

  7. In addition to direction provided in IRM 25.12.1.8.1.3, Taxpayer Written Responses,for taxpayer inquiry, do the following:

    IF THEN
    The taxpayer is in RH and has a module on ASFR, Advise the taxpayer to file the delinquent returns in order to resolve the RH and ASFR issue. Refer to IRM 5.18.1.10.1, Taxpayer Telephone Inquires, to address specific ASFR call issues. WOEA per IRM 25.12.8.1.3, Taxpayer Written Inquiries.
    Third Party Contact, Follow guidelines provided in IRM 21.1.3.3, Third Party POA/TIA/F706 Authentication and IRM 21.1.3.4, Other Third Party Inquiries. If the third party cannot provide the required documents and the taxpayer is not present to provide third party authorization, do not access the a