IRS Audits - Part 4 Examining Process

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IRS Audits

Chapter 19. Liability Determination

Section 2. IMF Automated Underreporter (AUR) Control (Cont. 4)

4.19.2  IMF Automated Underreporter (AUR) Control (Cont. 4)

4.19.2.9 
Reports

4.19.2.9.15  (09-01-2003)
Miscellaneous Letter Listing

  1. This is a listing of cases where a letter was issued to the taxpayer, and another action was taken on the case(s) at the same time. These cases have process codes other than 3L, 3S, 6L, 6S, or 8L.

  2. The list is generated and printed when a response batch type is updated to RB batch status. The Miscellaneous Letter Listing shows the Sequence Number and SSN in three columns. The listing also displays the total volume of cases.

  3. Use the list to pull the manual letters (prepared by the tax examiner) from the identified cases. Mail the letters to the taxpayer following Campus directions. See Exhibit 4.19.2-25 for an example of the Miscellaneous Letter Listing.

4.19.2.9.16  (11-10-2004)
Notice Review List

  1. The listing is a statistically valid sample of cases for notice review. The list is system generated, by CP 2000 Mail Date, for each week that notices are generated.

    Caution:

    See IRM 4.19.2.5.60 for instructions on sampling TY 2003 CP 2000 notices.

     

  2. Use the list to pull the cases and build them into Review Batch Type 95.

  3. The listing is formatted in two columns (CSN and SSN). The Notice Review List contains the following information:

    • Notice Date, as part of the header

    • Tax Year, as part of the header

    • CSN

    • SSN

    • Total Samples, as a summary

     

  4. See Exhibit 4.19.2-26 for an example of the Notice Review List.

4.19.2.9.17  (09-01-2003)
Over Eight Reference Codes Report

  1. This report provides information regarding cases that have more than eight Credit Reference Numbers associated with an assessment made on the case.

  2. When Partial Agreed Batch Types 67 and 87 are updated to RB status, the system checks for cases with the condition described above. If there are cases in the batch with this condition, the report MUST be printed to identify the cases.

  3. Pull the cases listed on the report and transfer them back to the tax examiner who worked the case or to a designated UID. The batch cannot be updated until the cases are pulled from the batch.

  4. The report displays in two columns of Sequence Numbers and SSNs. The report contains the following information:

    • Batch Number, as part of the header information

    • Sequence Number

    • SSN

    • Total Volume, as a summary

     

  5. See Exhibit 4.19.2-27 for an example of the Over Eight Reference Codes Report, for additional information.

4.19.2.9.18  (09-01-2003)
Partially Agreed Aging

  1. This report provides a list of Partial Agreed Batches (Batch Types 67 and 87) that have been in AB batch status for two or more processing cycles.

  2. The Partially Agreed Aging Report displays the Batch Number and the date the batch status was updated.

  3. This report is used to determine which Partial Agreed Batch Types 67 and 87 batches require updating to RB batch status. See Exhibit 4.19.2-29 for an example of the report.

4.19.2.9.19  (09-01-2003)
Produce Notice/Letter Suspense List

  1. The listing displays data by Notice Date and Letter Date.

  2. The Notice Date section provides data concerning the Suspense Batches for CP 2000, CP 2501, Recomputed CP 2000, and Statutory Notices. The following data is displayed for each of the notice suspense batches:

    • Notice Date (in order)

    • Original Mail volume for each Notice Date

    • Current volume for each Notice Date

    • Purge Date for each Notice Date

    • Suspense Batch Number

    • Total Original Mail volume and Total Current volume for each Notice suspense type

     

  3. The Letter Date section provides similar information for the Letter Suspense Batches for the CP 2000 and the CP 2501. The following data is displayed for each of the Letter Suspense Batches:

    • Letter Date

    • Current volume for each Letter Date

    • Purge Date for each Letter Date

    • Suspense Batch number for each Letter Date

    • Total Current volume for each Letter Suspense type (CP 2000 and CP 2501)

     

  4. The summary page of the report lists:

    • Each Notice and Letter type and the volume for each

    • Subtotals for CP 2000 and CP 2501 Letters

    • Total volume

     

  5. The system generates the report weekly. The report may be viewed or printed. The report is used to monitor the timely and complete purging of each Notice and Letter Date. See Exhibit 4.19.2-30 for an example of the Produce Notice/Letter Suspense List.

4.19.2.9.20  (11-10-2004)
Reject Listing

  1. The Reject Listing identifies CP Notices with reject conditions and displays them in CSN order. The listing is generated weekly by the system and can be printed by the AUR Coordinator, Clerical Manager and the Lead Clerk. Beginning with TY 2003, the Reject Listing for prior weeks will be available upon request.

    Caution:

    It is still important to work the Reject Listing each week. For TY 2002 and prior, the listing still needs to be printed each week.

     

  2. The information displayed on the list is as follows:

    • CSN

    • SSN

    • Reject Code

    • Total volume for each Reject Code

    • Total Reject Volume

     

  3. Use this listing to pull cases from the suspense file and rebatch them. See Exhibit 4.19.2-31 for an example of the Reject Listing.

4.19.2.9.21  (09-01-2003)
Reworked Case Listing

  1. This listing displays the cases in Review Batch Type 95 which have been reworked by the tax examiner.

  2. The Reworked Case Listing displays three columns of Sequence Number and SSN, and the Total Volume of cases in the batch.

  3. The listing is used to identify the cases which must go through the Batch Disassembly Process. The cases in Batch Type 95 that do not appear on the list are refiled to the appropriate suspense batch after the batch status is updated to RB. See Exhibit 4.19.2-32 for an example of the Reworked Case Listing.

4.19.2.9.22  (09-01-2003)
Sequence Number/Notice Date Pull Listing

  1. Clerks use this listing to locate and pull cases, and to associate taxpayer correspondence or undeliverable correspondence identified with better address. Pull Listings can also be used to pull and verify cases from suspense batches.

  2. This listing is user generated by specific batch number, which shows in the header information. The Pull Listing is printed on demand by the user from a menu selection. The user must provide a batch number and the sort order. Sort order is determined by user selection of either the Notice Date or Sequence Number Order.

  3. The Pull Listing data fields are:

    • Notice Date,

    • Suspense Sequence Number,

    • SSN,

    • Response Sequence Number,

    • Routing Unit,

    • Routing UID, and

    • Total volume.

     

  4. See Exhibit 4.19.2-33 for an example of the Sequence Number/Notice Date Pull Listing.

4.19.2.9.23  (09-01-2003)
Spousal Address Listing

  1. This listing displays cases that require address research for the Secondary SSN (Spouse). The research is done using CC IMFOLE on IDRS. The report is generated weekly by the system and can be printed by AUR Coordinators, Clerical Managers and Lead Clerks.

  2. The information displayed on the report is as follows:

    • CSN

    • Primary SSN

    • Secondary SSN

    • SPAC (Spousal Address Code Type) Response Code

    • Total volume of cases listed

     

  3. See Exhibit 4.19.2-36 for an example of the Spousal Address Listing.

4.19.2.9.24  (09-01-2003)
Statute Listing

  1. This report provides a list of all open cases within 120 days of the Statute Expiration Date.

  2. The Statute Listing displays:

    • Statute Date

    • CSN

    • SSN

    • Total number of cases

     

  3. The report is used to monitor cases to ensure resolution before the Statute expires. See Exhibit 4.19.2-37 for an example of the Statute Listing.

4.19.2.9.25  (09-01-2003)
Stop CP Mailout List

  1. This listing displays data for cases that have had a request to stop CP 2000 notices from being mailed. This listing is generated in CSN order. The Stop CP Mailout List displays the following data:

    • CSN

    • Old CSN

    • SSN

    • UID Number

    • Name Control

    • Zip Code

    • Spousal and POA indicators

     

  2. The listing also provides Total Volume, Total Spousal Volume and Total POA Volume.

  3. The Stop CP Mailout List can be viewed or printed. See Exhibit 4.19.2-38 for an example of the Stop CP Mail Out List.

4.19.2.9.26  (09-01-2003)
Suspense Aged Batch Report

  1. This report indicates which suspense batches have met the appropriate suspense time frames. The system has checked for the required conditions (i.e., foreign addresses, new transactions, and new addresses) before updating each case with a code indicating the batch number for the cases next batch assignment.

  2. The Suspense Aged Batch Report displays the following in two columns:

    • Suspense Batch

    • Notice Date of the Suspense Batch

     

  3. This report is used to monitor suspense batches which have met the appropriate suspense time frames. Suspense batches listed on the report are pulled. Cases are rebatched to the next appropriate batch for processing.

  4. The report is system generated weekly and can be viewed or printed. See Exhibit 4.19.2-39 for an example of the Suspense Aged Batch Report.

4.19.2.9.27  (09-01-2003)
Suspense Summary Report

  1. This report displays information from the Suspense Summary Screen. The displayed information is:

    • Suspense Batch Description

    • Batch Number

    • Projected Notice Date

    • Begin Sequence Number

    • End Sequence Number

    • Volume

     

  2. The report is user generated and printed after each batch status is updated to RB.

  3. Attach the report to the batch to aid in placing cases in the appropriate suspense file after the batch has been disassembled. See Exhibit 4.19.2-40 for an example of the Suspense Summary Report.

4.19.2.9.28  (09-01-2003)
Unassociated Response Report (Batch Type 99)

  1. The information displayed on this report represents all cases currently assigned to IPC UR. The data is sorted and displayed by either Batch Assignment Date or CSN.

  2. The following information is displayed:

    • SSN

    • Previous Process Code

    • Process Code Date

    • Old Batch Number

    • Old Batch Location

    • Old CSN

    • Notice Type

    • Notice Date

    • Received Date

    • Total Volume of cases in the batch

     

  3. This report is used to monitor IPC UR volumes and the workflow of the program. The information can be displayed in Batch Assignment Date or CSN order.

  4. The Unassociated Response Report is updated continuously and is generated upon demand. It may be viewed or printed by the AUR Coordinator and the Clerical Manager. See Exhibit 4.19.2-41 for an example of the Unassociated Response Report.

4.19.2.9.29  (09-01-2003)
Unavailable Return Report

  1. This report displays information on cases in Research Batch Types 30 and 34 when the research has not been received within 60 days and the system has closed the cases with either PC 28 or 29.

  2. The system does NOT automatically close Married Filing Separate (filing status 3) cases. These cases display at the end of the Closed Unavailable Return Case Report.

  3. The Closed Unavailable Return Case Report displays the following information in SSN and the CSN, shown in two columns. The Total Volume is shown at the end of the report.

  4. This report is used to pull the cases from the suspense file and refile the cases to the appropriate Federal Record Center.

  5. This report is system generated weekly and can be viewed or printed. See Exhibit 4.19.2-42 for an example of the Unavailable Return Report.

4.19.2.9.30  (09-01-2003)
Undeliverable New Action Listing

  1. This listing displays undeliverable cases in Aged CP 2000 Stat Prep Batch Type 59 with new actions for the case since the notice was mailed. The listing is generated after the undeliverable cases are built into Batch Type 59, and before the batch status is updated to AB. The listing has two columns of the following data:

    • Sequence Number

    • SSN

    • Action

     

  2. The listing is used to pull cases with new actions and build them into Cases With New Actions Batch Type 84500–799. See Exhibit 4.19.2-43 for an example of the Undeliverable New Action Listing.

4.19.2.9.31  (09-01-2004)
Undeliverable Report

  1. This is a new report that tracks the volume of undelivereds and those with better addresses by notice type.

  2. See Exhibit 4.19.2-44 for an example of the Undeliverable Report.

4.19.2.9.32  (09-01-2004)
Universal View Case Action Listing

  1. This report is new for TY 2003 and subsequent. Specifics about the report (when to access and how to work the listing) will be provided when development has been completed.

  2. At this writing, the report consists of five columns for the following:

    • CSN

    • Batch Status

    • SSN

    • Contact Date

    • Number of Days from Contact Date

     

  3. See Exhibit 4.19.2-45 for an example of the report.

Exhibit 4.19.2-1  (09-01-2005)
Glossary

AGN - Auto- Generated Notice - cases systemically screened and the CP 2000 Notice issued with no tax examiner or clerical handling

AIMS - Audit Information Management System - Examination control system on IDRS

AO – Area Office

APO/FPO– used to address correspondence to overseas military personnel.

AUR – Automated Underreporter – inventory control system used in Underreporter

Agreed Case – a response from the taxpayer with signature(s) agreeing to our changes with no disputing comments, OR full payment of tax and penalties received before the issuance of a Statutory Notice of Deficiency, with no comments, OR a completed Installment Agreement with signature(s) and no comments.

Assessments (TC 290) – a change to the amount of tax on the taxpayer’s account, this transaction code will generate a bill or a refund, a new DLN, and/or release a payment or freeze code.

AUR Received Date – a system generated date reflecting when the IRS Received Date is input on the case record.

BMF – Business Master File

Bar Code – contains the SSN and the tax year and is used for scanning information into the control computer, using a laser gun. It is found on the lower right corner of the Form 4251 and on several pages of notices.

Batch – a collection of returns, correspondence, or cases that have been grouped together.

Batch Number – a five-digit number used to describe/define the type of batch and the sequential number of the batch or the physical location of the batch.

Batch Runs – automatic updates to the entire AUR system, currently scheduled for weekends only.

Batch Status Codes – two-digit alpha codes that define the status of a batch at any given time during processing.

Batch Type (BT) – the first two-digits of a Batch Number that describe the type of work within the batch.

CAF – Centralized Authorization File – houses Power of Attorneys (POA) and other authorized disclosure contacts for taxpayer accounts.

CC – Command Code – used to make changes to IDRS accounts.

CP 2501 – an initial notice sent to the taxpayer requesting an explanation to resolve a discrepancy between items reported by the taxpayer on the tax return and the information provided by third parties regarding those items. If the taxpayer fails to respond or if the response is insufficient, the Service sends a CP 2000 notice proposing an adjustment.

CP 2000– a notice sent to the taxpayer proposing an adjustment to an item of income, deductions, and/or credit that includes an explanation of the adjustment and a tax computation reflecting the adjustment. If the taxpayer fails to respond or if the response is insufficient, the Service sends a Statutory Notice of Deficiency.

CSN – Case Sequence Number

Case Analysis – The technical review of computer identified discrepancies compared to the tax return. The Screening phase of the Underreporter Program is referred to as either Screening or Analyzation.

Case Sequence Number (CSN) – a nine-digit number which indicates the exact physical location of a case.

DLN – Document Locator Number – the number assigned to all returns and documents input to the IRS computer system.

Disagreed Case – a response from the taxpayer that does not agree to our proposed changes OR has disputing comments attached. (Full payment received after issuance of the Statutory Notice of Deficiency must be considered disagreed until signature(s) are obtained.)

EIN – Employer Identification Number – nine-digit number formatted xx-xxxxxxx used to identify businesses/payers.

EUR – Employee Underreporter – IRS (government) employee cases in the Underreporter Program.

Extract – a group of SSNs selected from the inventory of cases identified with possible discrepancies.

FRC – Federal Record Center

FTP - File Transfer Protocol - the method used to move information from AUR to Masterfile

Federal Record Center (FRC) – a place where tax returns are stored outside the campuses.

Form 4251 – Return Chargeout – the form generated from IDRS tape and to Files/FRC to pull the requested returns.

IDRS– Integrated Data Retrieval System

IMF – Individual Master File

IND – Indicator

IPC – Internal Process Code

IRC – Internal Revenue Code

IRM – Internal Revenue Manual

IRMF – Information Return Master File

ISRP – Integrated Submission and Remittance Processing - the automated system that converts all paper documents to electronic form, including payments.

Internal Process Code (IPC) – a two-digit numeric/alpha code used for tracking cases on the AUR system (does not upload to IDRS).

IRS Received Date – date the IRS received the taxpayer correspondence or notice in the campus. It can usually be found on the first page of the receipt and is a stamp (round or square) containing the campus name and date the IRS received the correspondence in the campus.

KITA – Killed In Terrorist Action

Location Code – a three-digit character code that can be alpha or numeric. It identifies the place where batches and/or cases can be found.

Lost Case (LC) – a case that cannot be located where the system indicates it should be.

Lost Response (LR) – a case is assigned to a response batch, but the response is not physically in the batch or case file.

MCC – Martinsburg Computing Center

NPS – National Print Site. AUR notices are printed and mailed from one of two National Print Sites. National Print Site-East is in Detroit and prints/mails for Atlanta, Brookhaven and Philadelphia. National Print Site-West is in Ogden and prints/mails for Austin, Fresno and Ogden.

PC – Process Code

POA – Power of Attorney

Priority Responses – responses which that are aged beyond recommended time frames, also referred to as Expedites or Early Received Date Responses.

Process Codes (PC) – two-digit numbers used to identify the action taken on a case. Process Codes reside in AUR and are uploaded to IDRS. When posted to IDRS, they update the TC 922.

RPS – the Remittance Processing System within ISRP.

Recomputed Notice (Recomp) – notice in which the original CP 2000 figures were changed due to a taxpayer response.

Reconsideration Cases – responses received after the case has been closed (assessment or no change) on the AUR system, also referred to as first read, late response or audit reconsideration cases.

Referral – a case sent to another area for technical determination (for example: Examination, Criminal Investigation, etc.)

Refile Case (RF) – Internal Process Code used to return a case to a suspense batch before further assignment.

Research – request for additional information (returns, IDRS research, information return files, etc.) needed to continue case processing.

Response – all correspondence received from or on behalf of the taxpayer.

Review Sampling – cases to be reviewed by Management or quality reviewers.

SCAMPS – Service Center Automated Mail Processing System

SCRS – Service Center Replacement System

SSN – Social Security Number – nine-digit number formatted xxx-xx-xxxx used to identify individual taxpayers.

SST – Social Security Tax

Screening – technical review of computer identified discrepancies compared against the tax return. The Screening phase of the Underreporter Program is also referred to as Case Analysis and Analyzation.

Sequence Order – order in which cases are key entered or scanned into AUR.

Statutory Notice – Legal notification sent to taxpayers by Certified mail, which explains the taxpayers right to file a petition with Tax Court and the IRS right to change tax without taxpayer consent. An Underreporter Statutory Notice consists of a Banner Page (if system generated), the Statutory Notice of Deficiency includes a 3219 Letter, Waiver Form 5564 and reprint of the CP 2000 notice.

TC – Transaction Code

TCC – Tennessee Computing Center

TDA – Taxpayer Delinquent Account – a Collection status

TIF – Taxpayer Information File – Individual Master File data from MCC (Martinsburg Computing Center) containing tax account and tax transaction information.

TIN – Taxpayer Identification Number – used to identify taxpayer accounts

TY – Tax Year

UID – User Identification Number- three-digit number assigned to an employee in order to access AUR.

U/R – Underreporter

UVC – Universal View Case - the capability to view all case data by all