Internal Revenue Manual
IRM 4.19.12 — Classification Support
Part 4. Examining Process
Chapter 19. Liability DeterminationSection 12. Classification Support 4.19.12 Classification Support Manual Transmittal May 29, 2026 Purpose (1) This transmits revised IRM 4.19.12, Examining Process, Liability Determination, Classification Support. Material Changes (1) The following changes were made: Reference Change Details Various Updated IRM links and references throughout IRM. IRM 4.19.12.1 Expanded audience and clarified program goals. IRM 4.19.12.1.4 Updated to modify and remove reports. IRM 4.19.12.1.5 Updated table to add and remove acronyms. IRM 4.19.12.2 Updated guidance to include more detailed information regarding barred statutes. IRM 4.19.12.4 Clarified language throughout and deleted paragraph 5 and the table in paragraph 6. IRM 4.19.12.6 (3) Table Added applicable Source Codes for Classification Support. IRM 4.19.12.7.2 Updated BMF Audit Reconsideration procedures. IRM 4.19.12.8 (2) Removed all DC 34 guidance. Classification support will ensure claim is processed. IRM 4.19.12.10.1.4 Added research methods when TC 150 is missing. IRM 4.19.12.10.2 Updated title to remove indication of a matching program and specify this is an intake program. IRM 4.19.12.10.2.1 (3) Deleted OFP guidance in paragraph 3. Updated title to remove indication of a matching program and specify this is an intake program. IRM 4.19.12.10.2.1.1.1 (2) Updated "CCP" to "CCU" . IRM 4.19.12.10.2.3 Updated to specify required information per Form 8282 instructions. IRM 4.19.12.10.2.4 Updated to specify correspondence is only sent when needed and to reference form instructions. IRM 4.19.12.10.2.5 Updated to specify required Form 8282 database entries. IRM 4.19.12.10.2.6 (5) Updated letter guidance to advise the form should only be attached when necessary. IRM 4.19.12.10.3 Added guidance on electronic delivery and case processing. IRM 4.19.12.11 (2) Update HQ Reserved 15 reference. IRM 4.19.12.11 (3) Removed HQ Reserved 3 reference, clarified IMF & BMF International business unit, added HQ Reserved 9. IRM 4.19.12.11.3 and (1) through (6) Changed section Title to include Campus Intake Clarified, moved and/or deleted outdated guidance for IRS and State Agency Housing Finance Agencies (HFA) administration, LIHTC tax examiner role and forms applicable to the LIHTC intake process IRM 4.19.12.11.3.1 (1) through (5) New section providing an explanation of each form worked in the LIHTC Intake team and includes forms received using DMAF. IRM 4.19.12.11.3.2 (1) through (6) Removed outdated Form 8610 package instructions. Provided detailed guidance for Form 8610 intake. IRM 4.19.12.11.3.3 New section providing detailed guidance for Form 8610 Schedule A intake. IRM 4.19.12.11.3.4 (1) through (7) Removed outdated guidance for Form 8609 Part I. Clarified, moved and/or deleted detailed guidance for Form 8609 Part 1 intake. IRM 4.19.12.11.3.4 (8) Updated percentage from 50 to 25 to incorporate new tax law. IRM 4.19.12.11.3.5 Removed outdated guidance for Form 8609 Part I. Clarified, moved and/or deleted detailed guidance for Form 8609 Part 1 intake. IRM 4.19.12.11.3.5 New section providing detailed guidance for Form 8610 Reconciliation Process. IRM 4.19.12.11.3.6 New section providing detailed guidance for Form 8609 Part II intake. IRM 4.19.12.11.3.7 (1) Removed outdated Form 8823 Instructions. Clarified, moved and/or deleted detailed guidance for Form 8823 intake. IRM 4.19.12.11.3.8 New section providing instructions for Form 8823 2D Bar Code Scanning procedures. IRM 4.19.12.11.3.9 New section providing detailed guidance for classification selected Forms 8823. IRM 4.19.12.11.3.10 Removed all instruction pertaining to Form 8693. Tax law change effective 7/31/2008 is now past 15 year compliance period. IRM 4.19.12.11.3.11 Removed instructions to Evaluations for audit potential. Obsolete for intake process. IRM 4.19.12.12 Added content from Interim Guidance Memorandum SBSE-04-0126-0012, Interim Guidance on Offering Digital Communication Tools to Taxpayers and Third Parties, dated 01-26-2026, and incorporated IRM Procedural Update (IPU) 26U0129 issued 01-26-2026 to added subsection "Use of Digital Communication Tools in Taxpayer and Third-Party Interactions," which includes guidance that employee must offer the use of IT-approved digital communication tools. IRM 4.19.12.12.1 Added content from Interim Guidance Memorandum SBSE-04-0126-0012, Interim Guidance on Offering Digital Communication Tools to Taxpayers and Third Parties, dated 01-26-2026, and incorporated IRM Procedural Update (IPU) 26U0129 issued 01-26-2026 to added subsection "Document Upload Tool for Taxpayer Facing Employees (DUT-TPFE) in Taxpayer and Third-party Submissions," which provides guidance on DUT-TPFE. (2) The IRM was revised to review and clarify language throughout. All references and websites were also updated. Effect on Other DocumentsThis revision supersedes IRM 4.19.12 dated December 6, 2023 and incorporates Interim Guidance Memorandum SBSE-04-0126-0012, Interim Guidance on Offering Digital Communication Tools to Taxpayers and Third Parties, dated 01-26-2026, and IRM Procedural Update (IPU) 26U0129, Use of Digital Communication Tools in Taxpayer and Third-Party Interactions issued 01-26-2026. AudienceSmall Business/Self Employed (SB/SE), Taxpayer Services (TS), Large Business & International (LB&I), and Tax Exempt/Government Entities (TE/GE) Campus Examination Operations. Effective Date(05-29-2026)Heather J. YocumDirector, Examination - Field and Campus Policy Small Business/Self- Employed
Program Scope and Objectives
4.19.12.1 (05-29-2026) Program Scope and Objectives Purpose: This IRM section contains guidelines for campus personnel who assist in the identification of possible compliance issues by providing case building and selection support to Campus Classification and Field Exam. Audience: These guidelines and procedures apply to SB/SE, Taxpayer Services (TS), and other Business Operating Division (BOD) Exam employees who support Campus and Field Exam in the identification, selection, and delivery of campus examination classification workload. Policy Owner: Small Business/Self-Employed (SB/SE) Campus Examination and Field Support (CEFS) Policy. Program Owner: Small Business/Self-Employed (SB/SE) Campus Examination and Automated Underreporter (CEA) Primary Stakeholders: Small Business/Self-Employed Division (SB/SE), Taxpayer Services (TS), Large Business & International (LB&I), and Tax Exempt/Government Entities (TE/GE).
Background
4.19.12.1.1 (12-06-2023) Background Classification Support compiles case building data that helps determine whether a case should be selected for audit, what issues should be audited, and how the audit should be conducted. Case building data can also be used to corroborate items on the return, so they don't have to be raised with the taxpayer. Classification Support assists classifiers with identifying CAT-A referrals with audit potential. When Classification determines a case has audit potential and selects the case, Classification Support compiles case data and routes it to Correspondence or Field Exam. Classification Support also compiles taxpayer information for some specialty programs that classifiers use to identify possible compliance issues and determine if the case should be selected. Note: These cases are not typically housed in Account Management Services (AMS)/Correspondence Imaging Inventory (CII). Most Classification inventory is received through and housed in AMS/CII until it is selected. Typically, Classification Support only assists with CII Classification inventory once it is selected in Classification. When a case is received outside of AMS/CII, it should be accompanied by a Form 3210, Document Transmittal, to ensure proper inventory control. The Centralized Files and Scheduling (CFS) program is now obsolete. CFS was created to physically store Office Exam returns ordered and classified through the Compliance Data Environment (CDE) system. Returns identified as "Specials" via Audit Codes were placed on the return during processing based on special features on the return and automatically sent to CFS for Exam. CFS gathered all the necessary components for the examination case files.
Authority
4.19.12.1.2 (05-29-2026) Authority IRM 1.1.16.5.5.1, Examination Field and Campus Policy IRM 1.1.16.5.5.3, Exam Case Selection IRM 1.2.1.2.36, Policy Statement 1-236, Fairness and Integrity in Enforcement Selection IRM 1.2.1.5.7, Policy Statement 4-9, Highest Integrity Expected IRM 1.2.1.5.10, Policy Statement 4-21, Selection of returns for examination IRM 1.2.1.13.3, Policy Statement 21-3 (Formerly P-6-12), Timeliness and Quality of Taxpayer Correspondence IRM 4.1.5.3, Classification IRM 10.5.1, Privacy Policy
Responsibilities
4.19.12.1.3 (06-19-2020) Responsibilities Examination Field and Campus Policy (EFCP) is responsible for leading the development and delivery of policy and guidance that impacts SB/SE taxpayers and SB/SE Campus and Field examination processes. Campus Exam and Field Support (CEFS) is responsible for providing policy on compliance processes that relate to campus examination classification support operations for Correspondence, Field, and Specialty Exam programs. The IRS formally adopted a Taxpayer Bill of Rights in June 2014, which provides the nation's taxpayers with a better understanding of their rights and helps reinforce the fairness of the tax system. In 2015, Congress charged the Commissioner with ensuring IRS employees are familiar with and act in accord with the taxpayer rights as afforded by the IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights.
Program Controls
4.19.12.1.4 (05-29-2026) Program Controls Program Reports: The following reports may be used to monitor inventory assigned in Classification: Account Management Services (AMS) Correspondence Imaging Inventory (CII) Category A (CAT-A) Inventory Report Business Objects Enterprise (BOE) Crystal Reports Case Control Activity (CCA) 4243/ Overage Report Compiler and Sorter (ORCAS) AIMS Centralized Information System (A-CIS)
Acronyms
4.19.12.1.5 (05-29-2026) Acronyms The following table lists commonly used acronyms and their definitions used throughout this IRM. Acronym Definition A-CIS AIMS Centralized Information System AAR Administrative Adjustment Request ACTC Additional Child Tax Credit ADCCI Assistant Deputy Commissioner Compliance Integration AIMS Audit Information Management System AM Account Management AMS Account Management Services AOTC American Opportunity Tax Credit ASFR Automated Substitute for Return AUR Automated Under Reporter BMF Business Master File BOD Business Operating Division BOE Business Objects Enterprise CAT-A Category A (Examination Criteria) CC Command Code CCA Case Control Activity CDE Compliance Data Environment CEA Campus Examination and Automated Underreporter CF&S Centralized Files and Scheduling Corr Correspondence Exam CII Correspondence Imaging Inventory CWA Contemporaneous Written Acknowledgment DBA Doing Business As DDB Dependent Data Base DIF Discriminant Function DLN Document Locator Number EBE Employee Business Expense EFCP Examination Field and Campus Policy EFTPS Electronic Federal Tax Payment System EGC Examination Group Code EIN Employer Identification Number EITC Earned Income Tax Credit EQTS Exam Quality and Technical Support ET Employment Tax EUP Employee User Portal FCS Field Case Selection FRP Frivolous Return Program GII Generalized IDRS Interface HQ Headquarters IAC Interest Abatement Coordinator IDRS Integrated Data Retrieval System IMF Individual Master File IRA Individual Retirement Account IRDM Information Reporting Document Matching IRMF Information Return Master File IRP Information Reporting Program IRSS Information Return Selection System IRP Information Reporting Program IVL Individual Validation Listing (of accounts on AIMS) LBI Large Business & International LIHC Low Income Housing Credit MeF Modernized E-File MF Master File MFT Master File Tax MOU Memo of Understanding OFP Organization Function Program OUO Official Use Only PBC Preliminary Business Code PDT Potentially Dangerous Taxpayer POA Power of Attorney POD Post of Duty PSP Planning and Special Programs PTC Premium Tax Credit QRDT Questionable Refund Detection Team RA Revenue Agent RGS Report Generating Software SARP State Audit Report Program SBC Secondary Business Code SB/SE Small Business Self-Employed SEP Simplified Employee Pension SFR Substitute for Return SP Submission Processing SSIVL Statistical Sample Inventory Validation Listing SSN Social Security Number TC Transaction Code TCO Tax Compliance Officer TE Tax Examiner TE/GE Tax Exempt/Government Entities TIN Taxpayer Identification Number TPI Total Positive Income TS Taxpayer Services WEIIC Withholding Exchange and International Individual Compliance
Related Resources
4.19.12.1.6 (05-29-2026) Related Resources IRM 2.8, Audit Information Management System (AIMS) IRM 3.10.72-1, Routing Guide/Local Maildex IRM 3.11.3.5.2.1, Correspondence When Sending Return Back to the Taxpayer IRM 4.1.1.7.3, Automatics, Specials and Campus Identified Work. IRM 4.1.2, Workload Identification and Survey Procedures IRM 4.1.5, Case Building, Classification, Storage and Delivery IRM 4.1.5.3.1, Classification Overview IRM 4.4, Audit Information Management Systems (AIMS)-Validity and Consistency IRM 4.13, Audit Reconsideration IRM 4.19.14, Liability Determination, Refundable Credits Strategy IRM 4.19.15, Discretionary Programs IRM 4.103, Compliance Data Environment (CDE) IRM 21.3.3, Taxpayer Contacts IRM 21.5.1.4.2.4, Received Date – Determination IRM 21.5.2.4.23.6, Discriminant Function (DIF) SCORE or Classification Send Return(s) to Examination for Review IRM 21.5.3, General Claims Procedures Exhibit 21.5.3-2, Examination Criteria (CAT-A)- General Exhibit 21.5.3-3, Examination Criteria (CAT-A)- Credits IRM 21.5.6.4, Freeze Code Procedures IRM 21.7.4.4.2.9, Form 1065 and Form 1065X, Amended Return, Administrative Adjustment Request (AAR) and Bipartisan Budget Act (BBA) IRM 21.8.1.2.10, Examination Criteria CAT-A International IRM 21.8.2.2.12, Examination Criteria IRM 25.6, Statute of Limitations Exhibit 25.6.23-3, Instructions for Updating the Statute on AIMS IRM 25.23, Identity Protection and Victim Assistance
Statute Considerations
4.19.12.2 (05-29-2026) Statute Considerations Statute awareness is vital and required to minimize barred assessments and erroneous abatements. The Assessment Statute Expiration Date (ASED) in general, the ASED expires three years from the time the return was filed or two years from the time the tax was paid, whichever is later (see IRC 6511, Limitations on Credit or Refund). The ASED may be extended for specific reasons however, the expiration of the statute prohibits further assessment unless a valid extension is in place or exception to IRC 6501, Limitations on Assessment and Collection, applies. When a tax assessment is not made within the prescribed period for assessment it is considered a barred assessment. In the event an ASED expires while a tax return is under Classification Support control, a statute expiration report must be prepared using Form 3999, Statute Expiration Report. IRM 25.6.1.13.2.8.1, Procedures for the Submission of SB/SE Statute Expiration Reports, outlines additional SB/SE procedures that must be followed when a return has a barred statute. Statute information, including conditions which may extend the Assessment Statute Expiration Date (ASED), Refund Statute Expiration Date (RSED), or Collection Statute Expiration Date (CSED), can be found in IRM 25.6, Statute of Limitations.
Cases with Less than 13 Months to ASED
4.19.12.2.1 (12-06-2023) Cases with Less than 13 Months to ASED Refer to IRM 4.4.33.2.5, Statute of Limitations, for AIMS base transfer information. Classification Support will update AIMS bases and communicate with the Area PSP Claims Coordinators and Campus Correspondence Exam as needed. See IRM 25.6, Statute of Limitations, for additional information about Assessment Statutes, and IRM 25.6.23-3, Instructions for Updating the Statute on AIMS, for information on statute alpha codes. Caution: Bundled claims include an assessment and therefore, they must not be updated to an Alpha Code "AA" on AIMS, per IRM 4.10.11.5.1, Assessment Statute Expiration Date (ASED) - Considerations and Examiner's Responsibilities. Alpha Code "AA" indicates there are no other issues on the return which warrant an assessment, which is not the case for bundled claims. When Classification determines a claim for refund or request for abatement should be selected, and there are less than 13 months on the ASED, special handling is required. Note: If the claim for refund or request for abatement has been paid/processed, it is no longer a "claim" and normal statute procedures apply. Exam Classification may need to use Alpha Code "ZZ" to transfer a case to PSP when there are more than 180 days, but less than 13 months left on the ASED. See IRM 4.4.33.2.5, Statute of Limitations, for additional information. See the table below for appropriate actions to take when there are less than 13 months on the ASED. Note: Alpha Code ZZ is a transfer statute that requires the receiving party to update the statute back to a numeric statute upon receipt (see IRM 25.6.23-3, Instructions for Updating the Statute on AIMS). If And Then ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Caution: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Caution: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Caution: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Caution: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Caution: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Caution: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Caution: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correspondence
4.19.12.3 (12-06-2023) Correspondence Follow the guidelines in IRM 21.3.3.4.2, Policy Statement P-21-3 Procedures, when working taxpayer correspondence cases that meet Policy Statement P-21-3 criteria to ensure timely and quality responses to taxpayer correspondence. A quality response is an accurate and professional communication which, based on information provided, resolves the taxpayer's issues, requests additional information from the taxpayer, or notifies the taxpayer we have requested information from outside the IRS. A quality response is timely when initiated within 30 calendar days of the IRS received date. When a quality response can't be issued timely, an interim response must be sent by the 30th calendar day from the IRS received date. All interim letters must inform the taxpayer when a final response can be expected and will include a name and telephone number to contact to resolve additional inquiries.
Accepts, Disallows, Rejects
4.19.12.4 (05-29-2026) Accepts, Disallows, Rejects This section includes general and background information on Classification work processes that may affect Classification Support case decisions. IRM 4.19.11.4, CAT-A Claim Determinations, provides more detailed information regarding classification responses. When a CII case meets CAT-A criteria and is referred to Exam Classification, a determination will be returned to Accounts Management (AM) or Submission Processing (SP) indicating if the issue is allowable or if the amended return was selected for potential audit. Cases referred to Exam Classification remain under AM/SP adjustment function control until a determination is made. If a case is selected, Exam assumes control of the case and responsibility for ensuring the case/claim is worked. Claims that are accepted, disallowed or rejected are returned to AM/SP via CII, which reassigns the IDRS control base activity back to the AM/SP originator and returns the CII case back to their active inventory for resolution.
Correspondence Exam Referral Selects
4.19.12.5 (12-06-2023) Correspondence Exam Referral Selects This IRM section provides procedures for the delivery of IMF and BMF Category A cases selected in Exam Classification to Correspondence Exam. Classifiers forward a completed classification sheet to Classification Support to initiate the case assembly process. Classification Support will use the table below to process cases selected for Correspondence Exam. If Classification Determines Accounts Management Will Classification Support Will The amended return/claim has audit potential, and the case has been Selected in Exam for potential audit. Note: When Exam Classification "selects" a claim, Exam assumes responsibility for the claim. Exam will establish AIMS and proceed with auditing or processing the claim . Input the necessary audit trail with a TC 971 and Action Code (AC) 013 (use the received date of the amended return for the transaction date) Input any required letters to the taxpayer. Refer to IRM 21.3.3.4.2.1, Use of 86-C Letter - Referring Taxpayer Inquiry/Forms to Another Office. Route the case if necessary. Close the CII case. Build the selected case by assembling all needed documents (for example, the classification sheet, original return, amended return, etc.). Open an AIMS base (which establishes a TC 420) with the following information: Source Code: 30 Status Code: 08 Project Code: 0126 Employee Group Code: 5000 Create a Form 3210. Deliver the case to the colocated Correspondence Exam via interoffice mail, email, or other locally approved delivery method.
Field Referral Selects
4.19.12.6 (12-06-2023) Field Referral Selects This IRM section provides procedures for the electronic delivery of IMF and BMF Category A cases selected in Exam Classification to Field Case Selection (FCS) via local area Planning and Special Programs (PSP). Classifiers forward a completed classification sheet to campus Classification Support to initiate the case assembly process. Classification Support will use the table below to process cases selected for Field Exam. If Classification Determines Accounts Management Will Classification Support Will The amended return/claim has audit potential, and the case has been Selected in Exam for potential audit. Note: When Exam Classification "selects" a claim, AM transfers claim resolution liability to the Exam function. Appropriate Exam functions are then responsible for establishing AIMS, and proceeding with auditing or processing the claim. Input the necessary audit trail with a TC 971 and Action Code (AC) 013 (use the received date of the amended return for the transaction date) Input any required letters to the taxpayer. Refer to IRM 21.3.3.4.2.1, Use of 86C Letter - Referring Taxpayer Inquiry/Forms to Another Office. Route the case if necessary. Close the CII case. Build the selected case by assembling all needed documents (for example, the classification sheet, original return, amended return, etc.). Open an AIMS base (which establishes a TC 420) with the following information: Source Code: 20, 30 (claims), 32, and 24, or appropriate source code Status Code: 06 Note: Once the AIMS base is fully established, update to 07. Project Code: 0000 (Exception: Open Joint Committee Cases in 0077) Create a Form 3210. Deliver the case electronically to the correct Area PSP office. Use CC AMSOC to transfer the case to the correct AIMS Assignee Code (AAC) using Employee Group Codes 1998 for RA cases and 2998 for TCO cases.
Shared Drive
4.19.12.6.1 (12-06-2023) Shared Drive In March 2018, the President's Management Agenda established multiple goals to transition federal agencies' business processes and record keeping to a fully electronic environment. The PSP shared drive was created to establish an electronic case delivery process and is available to stakeholders involved in Field case delivery. Whenever possible, Classification Support will transfer cases to PSP electronically via the designated PSP shared drive.
Electronic Delivery
4.19.12.6.2 (12-06-2023) Electronic Delivery Each site will establish and follow local procedures for sending selected cases from Exam Classification to Classification Support. Note: The Classification folder in the shared drive is designated for Classifiers. It can be used by sites for pre-referral coordination between classifiers and Classification Support. Classification Support will combine the case documents from the Classifier into one PDF document and save it with the following naming convention: 1234 = Last 4 Digits of TIN, NMCL = Name Control, FFFF = Original Return Form Number, ST = State of Taxpayer, EGC = 1998 or 2998 (for example, 1234NMCL1040CA1998). Original returns will only be included in the case if they are filed on paper and not available in MeF. If the original return was filed on paper, input Command Code (CC) ESTAB to order the return. When the original return is received, scan it to create a PDF document and add the scanned document to the previously created PDF document. If the return can't be secured, include the Form 4251, Return Charge Out, in the previously created PDF document. Note: If a response is not received from FRC, the Form 2275, Records Request, Charge and Recharge, can be used in place of the Form 4251, Request Charge Out. Open on AIMS using CC AM424. When AIMS is fully established and the case is ready for delivery to PSP, Classification Support will transfer the final file to the appropriate Area Office PSP folder. There are seven PSP area folders on the shared drive. Each area consists of a group of states/areas. Identify the Area folder that corresponds with the state the taxpayer resides in. Create a folder with today's date in the appropriate Area folder on the shared drive. Copy the PDF document consisting of all the combined case documents and paste it into the appropriate Area folder. Verify the PDF document transfer to the Area folder was successful. Complete a Form 3210 and save it in the dated folder. Send an email to the appropriate Areas contact with the Form 3210 and request receipt confirmation. Retain Form 3210 for one year as required in Document 12990, IRS Records Control Schedule (RCS) 23, Item 36. Destroy or dispose of SBU data when it is no longer required for business use.
Audit Reconsiderations
4.19.12.7 (12-06-2023) Audit Reconsiderations An audit reconsideration is the process the IRS uses to reevaluate the results of a prior audit where additional tax was assessed and remains unpaid, or a tax credit was reversed. See IRM 4.13.1.5.3.6, Statute of Limitations, for information on statute considerations specific to audit reconsiderations.
IMF Audit Reconsideration Routing
4.19.12.7.1 (05-29-2026) IMF Audit Reconsideration Routing Area Office (AO) Exam Audit Reconsiderations are routed to the Central Reconsideration Unit (CRU) at each Campus per Exhibit 4.13.1-1, Routing of Campus and Area Office Reconsideration Requests. Campus Exam Audit Reconsiderations are routed to the campus that conducted the original audit per IRM 4.13.1.3.2, Function Responsible & Routing Instructions and IRM 4.13.1-1, Routing of Campus and Area Office Reconsideration Requests. The appropriate SB/SE campus can be identified based on the alignment to AIMS Principal Business Code (PBC) in the TC 420.
BMF Audit Reconsideration Routing
4.19.12.7.2 (05-29-2026) BMF Audit Reconsideration Routing Both Area Office (AO) Exam Audit Reconsiderations and Campus Exam Audit Reconsiderations are routed per IRM 4.13.1.3.2, Function Responsible & Routing Instructions. Both Cincinnati and Ogden classifiers review BMF audit reconsiderations. If Classification determines criteria in IRM 4.13.1.2.1, Criteria for Reconsideration, has been met, select the claim to be routed to the Field. Per IRM 21.5.10.4.3, Audit Reconsiderations; BMF Audit Reconsiderations are worked by Accounts Management if they are not selected. If a BMF Audit Reconsideration in IDRS Status 26 (assigned to an RO) is received outside of the Account Management Services (AMS) Correspondence Imaging Inventory System (CII) system, the classifier will classify the case and return the determination to the originator for case processing/resolution.
Carryback Audit Reconsideration Routing
4.19.12.7.3 (12-06-2023) Carryback Audit Reconsideration Routing Per IRM 5.1.15.5.3, Amended Return/Claim - Carrybacks (including Audit Reconsiderations for IMF and BMF) are routed to CCP for processing to AM.
Rejected Referrals
4.19.12.8 (05-29-2026) Rejected Referrals PSP will communicate when a case must be returned because it was sent in error. Example: An invalid claim (missing signature, not timely filed, etc.) was sent to PSP. Classification Support will ensure the claim is addressed. Caution: Classifiers will not take these case closing actions. Campus will not accept a case from PSP if it has already been surveyed.
Employee Returns
4.19.12.9 (12-06-2023) Employee Returns To ensure impartiality, independence, and employee privacy, subordinates, associates or co-workers of an employee will not classify or examine that employee's return. IDRS CC IMFOL with definer "E" shows the IRS Employee Indicator. Send all employee returns selected for examination to the PSP area office closest to where the employee lives. Caution: Do not route employee returns to Campus Correspondence Examination. Secure the original return from Files and ship the case file electronically or in a confidential envelope. Note: If a Form 3198, Special Handling Notice for Examination Case Processing, is included with the case file notate Employee Return on the Other Instructions line in the Special Features box. For additional information reference IRM 4.1.1.6.7, Employee Audits and IRM 4.2.6, Examination of Employee Returns.
Classification Support Programs
4.19.12.10 (12-06-2023) Classification Support Programs Classification support programs assist in the identification of possible compliance issues by providing selection support to various Exam functions.
Form 4810 and Form 5495 Intake
4.19.12.10.1 (12-06-2023) Form 4810 and Form 5495 Intake IRM 4.19.12.10.1.1, Form 4810 and Form 5495 Program Scope and Objectives IRM 4.19.12.10.1.2, Initial Review IRM 4.19.12.10.1.3, IDRS Research IRM 4.19.12.10.1.4, TC 150 Posted, Return Missing from Case IRM 4.19.12.10.1.5, Missing TC 150 IRM 4.19.12.10.1.6, Missing or Incomplete Information IRM 4.19.12.10.1.7, Rejecting the Case IRM 4.19.12.10.1.8, Classification Referrals IRM 4.19.12.10.1.9, Classification Responses
Form 4810 and Form 5495 Intake Program Scope and Objectives
4.19.12.10.1.1 (12-06-2023) Form 4810 and Form 5495 Intake Program Scope and Objectives Purpose: To provide processing guidelines for the case building of cases involving Requests for Prompt Assessment under IRC 6501(d) (Form 4810) and Requests for Discharge from Personal Liability under IRC 2204 or IRC 6905 (Form 5495). Audience: The primary users of this IRM are IRS employees in SB/SE Exam Classification Support who process Form 4810, Request for Prompt Assessment, and Form 5495, Request for Discharge from Personal Liability under Internal Revenue Code Section 2204 or 6905.
Prompt Assessment Authority
4.19.12.10.1.1.1 (12-06-2023) Prompt Assessment Authority Ordinarily, the Internal Revenue Service has 3 years after an income tax return is filed to assess additional tax or to begin a court action to collect the tax. A decedent's estate, or a corporation which has dissolved, is contemplating dissolution, or is in the process of dissolution, can file a written request for a prompt assessment to shorten the assessment statute. The assessment period is decreased to eighteen months from the date of the written request, but not beyond three years from the time the return at issue was filed. There are specific requirements for making such request which are found in Treas. Reg. 301.6501(d)-1. This 18-month statute does not apply to the exceptions of IRC 6501(c), IRC 6501(e), or IRC 6501(f). A prompt assessment is requested by filing Form 4810, Request for Prompt Assessment, under IRC 6501(d), with the Service Center where the return was filed for which they are requesting prompt assessment. The Form 4810 must be filed separately from any other return and should not be filed until after the tax return listed on the form has been filed. A Prompt Assessment may also be submitted in letter format but must include all the information listed on the Form 4810. A Letter 621C, Prompt Assessment Request; Acknowledgement/Reply/Additional Information Requested, is mandatory in the processing of the prompt assessment requests, as it is used to obtain missing or incomplete information and to close the case by providing a closing/release date.
Discharge from Personal Liability Authority
4.19.12.10.1.1.2 (12-06-2023) Discharge from Personal Liability Authority A Personal Representative may also request a discharge of personal liability under IRC 6905. This application is made on Form 5495, Request for Discharge from Personal Liability under Internal Revenue Code Section 2204 or 6905. A Discharge from Personal Liability may also be submitted in letter format but must include all the information listed on the Form 5495. If Form 5495 is properly filed, the IRS has nine months in which to notify the Personal Representative of any deficiency for the decedent's applicable income or gift tax returns. If the Personal Representative pays the additional tax, or if no notice is received from the IRS within nine months from the date of filing Form 5495, the Personal Representative is then discharged from personal liability. If the Personal Representative is released from personal liability for any such income or gift tax, the IRS may still assess deficiencies against the Personal Representative in his or her fiduciary (not individual) capacity and may collect the taxes due from assets of the estate (provided the limitations period for assessment and collection has not expired). A Letter 738C, Decedent Income/Gift Tax Return; Personal Liability Discharge Request, is mandatory in the processing of the prompt assessment requests, as it is used when resolving Discharge from Personal Liability cases to obtain missing or incomplete information and to close the case by providing a closing/release date.
Statute Considerations
4.19.12.10.1.1.3 (12-06-2023) Statute Considerations The ASED normally expires three years from the date the original return was filed, or three years from the due date of the return, whichever is later. A prompt assessment is requested by filing Form 4810, Request for Prompt Assessment under Internal Revenue Code 6501(d). When written request for a prompt assessment is approved the assessment period is decreased to eighteen months from the received date of the written request, but not beyond three years from the time the return at issue was filed.
Related Resources
4.19.12.10.1.1.4 (05-29-2026) Related Resources IRM 3.10.72-1, Routing Guide/Local Maildex IRM 3.11.3.5.2.1, Correspondence When Sending Return Back to the Taxpayer IRM 4.25.2.5.7, Form 5495 IRM 21.3.3.3.4, Quality and Timely Responses IRM 21.3.3.4.2.2, Interim Responses IRM 21.3.3.4.2.2.1, Required Information for Interim Letters and Closing Letters IRM 21.3.3.4.2.3, Correspondence Date (Corr. Date) IRM 21.3.3.4.16.1, Preparing Outgoing Manually Generated Correspondence IRM 21.3.3.4.16.3, Issuing Outgoing Correspondence IRM 21.5.1.4.2.4, Received Date – Determination IRM 21.5.6.4, Freeze Code Procedures IRM 21.7.1.4.9, Fiduciary Name/Address Change IRM 25.6.1.9.6.1, Request for Prompt Assessment
Initial Review
4.19.12.10.1.2 (05-29-2026) Initial Review Form 4810, Request for Prompt Assessment, and Form 5495, Request for Discharge from Personal Liability under Internal Revenue Code Section 2204 or 6905, are routed at intake per IRM 3.10.72-1, Routing Guide/Local Maildex. If Classification Support receives a Form 4810 or Form 5495 that does not align with the routing guide, Classification Support will treat as a misroute and send to an appropriate campus. Complete the initial review of the Form 4810 and/or Form 5495. Use the chart below if you determine the form is a duplicate request. If Then The form is a duplicate request and does not contain any new or additional information Issue a Letter 621C, Prompt Assessment Request; Acknowledgement/Reply/Additional Information Requested, for Form 4810 or Letter 738C, Decedent Income/Gift Tax Return; Personal Liability Discharge Request, for Form 5495. Enclose all documents sent by the taxpayer with the letter. The form is a duplicate request and contains new or additional information Continue processing to determine if changes to the original closing date are needed. Review the boxes on the Form 4810 and Form 5495 that indicate if the requestor attached related documents. Review case contents for applicable forms, copies of the returns, letters of administration, letters of testamentary, or other related documents. If the tax period ended on the Form 5495 or Form 4810 is for the "current year or immediately preceding the current year" and the tax period ended shown on the form is the same as the current calendar year (e.g. 202103 current calendar year is 2021) or the tax period ended shown on the form is the immediately preceding calendar year. (e.g. tax period ended 202103, current calendar year is 2022), reject the request. Refer to IRM 4.19.12.10, Rejecting the Case. The request must specify the period(s) and type of tax covered. Verify the type of tax and tax periods involved, ensure the form is filed for an acceptable return. If the return is not an acceptable return, refer to IRM 4.19.12.10.1.7, Rejecting the Case. Note: If the taxpayer did not indicate or input the incorrect tax period on the form and you can clearly identify the correct tax period, update the form with the correct tax period, in red. Form 4810 acceptable returns include: Form 709, Form 1040, Form 1041, and Form 1120 (all series, excluding 1120S). Forms 94X (Form 940, Form 941, Form 943, Form 944, and Form 945) are acceptable returns if they are required returns filed in relation to a corporation (Form 1120) contemplating dissolution, in the process of dissolving, or has already been dissolved. Note: Email Form 990-T to *Manager EO Classification with "Please Expedite – Form 990-T Prompt Assessment Request" in the subject line. Note: If a Form 706 is attached to a Form 1041, process the Form 1041 portion of the request. Send a Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, and route the case with a Form 3210 to CSC (7940 Kentucky Dr., Florence, KY 41042) Form 5495 acceptable returns include: Form 1040 and Form 1041. Refer to IRM 3.10.72-1, Routing Guide/Local Maildex, when addressing mis-routed forms. Confirm the following information is present: The request must be in writing and clearly show that it is a request for prompt assessment under IRC 6501(d). The name and social security number (SSN) or employer identification number (EIN) are shown on the return. The date and location of the IRS office where the returns are filed. The Dissolution check box is required if corporate income tax returns are included. Date of Death (Form 5495 only) A valid Letter of Administration (LOA), Letter of Testamentary, etc. A valid Letter of Administration, Letter of Testamentary, etc. is required to verify authority to act on behalf of the taxpayer. Authorization may be granted by a court document signed by a court official with a state or county seal. Consider the following information when deciding if an authorization is valid: The request is made by an executor, administrator, or other fiduciary representing the estate of the decedent or a fiduciary representing a dissolved corporation or one contemplating dissolution. DO NOT accept Form 2848 or Form 8821 as valid Letters of Administration/Testamentary. A Form 56 is acceptable for a Trust/Estate (Form 1041). A Schedule K-1 is acceptable for a Corporation. Form 5495 request MUST list a Decedent and SSN. The name of the Trust or Estate can't be listed in place of the Decedent. Thoroughly review all other case documents. Reject the request if it is made by a corporation, a dissolving corporation, or a corporation contemplating dissolution currently in a bankruptcy status. Bankruptcy status may be identified by a -V freeze code, a TC 520 with a bankruptcy closing code, for example 83/85/88, or it may be stated in the Letters of Testamentary or other court documents sent by the taxpayer. Under the US Bankruptcy IRC 505(b), prompt assessment is not available for chapter 13, chapter 7, or chapter 11. Refer to IRM 4.19.12.10.1.7, Rejecting the Case. If any of the required information is missing or incomplete, refer to IRM 4.19.12.10.1.6, Missing or Incomplete Information.
IDRS Research
4.19.12.10.1.3 (12-06-2023) IDRS Research Research IDRS CCs: SUMRY, ENMOD, INOLES, BMFOL/IMFOL, TXMOD, and any other applicable CCs. Confirm the IDRS control was opened correctly when assigned. For example, the activity code accurately reflects the form(s) received, the received date indicates the oldest IRS received date, etc. Make corrections as needed. Research entity information on CC ENMOD/ INOLES. If the taxpayer's entity information has been modified, update case documentation to reflect the new information. Leave notes in the case documentation outlining the change(s) made. DO NOT update entity information in IDRS. If the entity information does not match at all, refer to IRM 4.19.12.10.1.7, Rejecting the Case. Verify all returns referenced have been filed and the TC 150 (original return) is posted. Note: The request must be filed after the return(s) at issue have been filed. If the TC 150 is not present, research ENMOD and/or TXMOD to determine if an extension was filed (TC 460) and the new due date of the return. Refer to IRM 4.19.12.10.1.5, Missing TC 150, if it is past the applicable due date. If the TC 150 unposted, research the unpostable code to identify why the return unposted and the appropriate actions to take. Note: The UP Histories IAT Tool can be used to update. If the TC 150 posted but is missing from the case file, refer to IRM 4.19.12.10.1.4, TC 150 Posted, Return Missing from Case. Determine if a TC 976/977 (duplicate return) is present on TXMOD. Research to determine if an unresolved TC 976/977 (duplicate return) has posted to any tax forms/periods. The TC 976/ 977 may be the original return posted to an incorrect form/period. A duplicate return condition will often occur when a return is filed on the wrong years tax form or filed late. If TXMOD shows a TC 976/ 977, research CC BMFOLI/ IMFOLI for missing returns and use the information on the Form 4810 /Form 5495 to determine where the TC 976/977 should have posted. If it is determined the TC 976/977 belongs to the tax period in question, see lead or manager for further instructions. Note: If the TC 976/977 belongs to the tax period in question and has unposted, correct the unpostable situation (the UP Histories IAT Tool may be used). Identify balance due accounts. Form 4810: If there is a balance due on the account, continue processing the case as usual. When issuing taxpayer correspondence, ensure the balance is included in the letter. Use CC INTST (with a 30-day payoff) to obtain the accurate balance. Form 5495: If there is a balance due on the account, research CC ENMOD/ INOLES for the most recent balance due notice date. If the most recent balance due notice was issued within the last 30 days, allow additional time for the taxpayer to respond. Suspend the case for 45 days from the date the last balance due notice was issued. Notate "balance due" in the case documentation and update the IDRS control base activity to SUSPNDMMDD. Hold case in designated location. If the most recent balance due notice was issued more than 30 days ago, notate "balance due" on the Form 5495, and reject the case back to the taxpayer. Refer to IRM 4.19.12.10.1.7, Rejecting the Case. Review the ASED. If the ASED on CC TXMOD has expired or will expire within 9 months (Form 5495) or 18 months (Form 4810) refer to IRM 4.19.12.10.1.9.1, Accept. Research Freeze Codes. Refer to IRM 21.5.6.4, Freeze Code Procedures, to research freeze code conditions that may need to be resolved prior to referral. Caution: If there is a -L or a -Z freeze on the account, do not disclose to the taxpayer they may be under investigation or have an open audit. Research other Transaction Codes (TC's). Research the Document 6209 Code Retriever to identify unknown TCs and determine if additional research is necessary. Note: The CSI IAT Tool can be used. Resolve Multiple IDRS Control Bases. Identify if contact is required prior to referring the case. If placing a control into "B" status prior to inputting an adjustment, ensure the control is placed back into "A" status after actions have been taken. If a multiple control contacts you, ensure a timely response to their inquiry is provided. Consult the lead or manager if unsure of what actions can be taken on the case.
TC 150 Posted, Return Missing from Case
4.19.12.10.1.4 (05-29-2026) TC 150 Posted, Return Missing from Case If the TC 150 posted to the account but the taxpayer did not include a copy of their return with their prompt assessment request, access the following to locate the missing return:. Employee User Portal (EUP) to locate the return using Modernized e-File (MeF) Account Management System (AMS)/Correspondence Imaging Inventory System (CII) IDRS Command Code TRDBV IDRS Command Code BRTVU Note: Both paper and electronically filed BMF returns are reflected on TRDBV and BRTVU. If the return is not available electronically through research conducted on EUP/MeF, CII, TRDBV or BRTVU, request the TC 150 from files using CC ESTAB. Note: The eClerical IAT Tool can be used. Update the IDRS control base activity to ESTABMMDD (MMDD is 60 days from the date ESTAB request was made). Note: The ACTON IAT Tool can be used. Place the case on the suspense wall according to the month the case was received. If the original return is not received from files within 60 days, print CC BRTVU, include it with the case file and continue processing. Document all actions taken in the case documentation section of the database.
Missing TC 150
4.19.12.10.1.5 (12-06-2023) Missing TC 150 If a TC 976/977 (duplicate return) is present on IDRS refer to IRM 4.19.12.10.1.3, IDRS Research. If a Form 4810 and/or Form 5495 is received and there is no TC 150 on IDRS, refer to the table below. Use a Letter 621C, Prompt Assessment Request; Acknowledgement/Reply/Additional Information Requested, when corresponding for a Form 4810 and a Letter 738C, Decedent Income/Gift Tax Return; Personal Liability Discharge Request, when corresponding for a Form 5495. Note: If both forms were filed, either letter can be sent if both forms are referenced in the letter, but do not send both letters. If And Then The taxpayer provided the date they filed their original return on the form It has been less than 45 days since that date Send a letter to acknowledge receipt of the request. Note: The Letters IAT Tool can be used. Suspend the case for 45 days from the date provided by the taxpayer. Update the IDRS Control Base activity to SUSPNDMMDD. Note: The ACTON IAT Tool can be used. Keep a copy of the letter and place in the designated location. If the return hasn't posted within the 45-day suspense period, reject the case back to the taxpayer. Refer to IRM 4.19.12.10.1.7, Rejecting the Case. The taxpayer provided the date they filed their original return on the form It has been more than 45 days since that date, or it has been more than 45 days since that date and the TC 460 extension has expired Reject the case back to the taxpayer. Send a letter. Note: The Letters IAT Tool can be used. Attach a new Form 4810 and/or Form 5495 with instructions and a copy of applicable records. Refer to IRM 4.19.12.10.1.7, Rejecting the Case. If the taxpayer did NOT provide the date they filed their original return on the form It has been more than 45 days since the due date of the return or the due date of the TC 460 extension date Reject the case back to the taxpayer. Send a letter. Note: The Letters IAT Tool can be used. 3. Attach a new Form 4810 with instructions and a copy of applicable records. Refer to IRM 4.19.12.10.1.7, Rejecting the Case. If the taxpayer included a copy of the original return with their form It has been more than 45 days since the date their form was received and the return has not posted to IDRS If your site doesn't have a Submission Processing (SP) center, route the return to an SP center with Form 3210. Write "Process as Original" on the top of the return. If your site does have a Submission Processing center, use local routing forms, such as the Form 12634, OSC Campus Document Transmittal, to route the return to Receipt & Control, Batching. Write "Process as Original" on the top of the return. Keep a copy of Form 3210 and a copy of the return with the case and suspend for 60 days in the designated location. Access CC REQ77 to input TC 599 with Closing Code (CC) 094 (taxable return secured) or CC 096 (non-taxable return secured). Send a letter to acknowledge receipt of the request. Note: The Letters IAT Tool can be used. Update the IDRS control base activity to RTN2PROCSS. Note: The ACTON IAT Tool can be used. Review the account weekly and leave notes in the case documentation until the TC 150 posts. Refer to IRM 4.19.12.10.1.2, Initial Review. Note: If FRC function turnaround timeframes are systemically delayed, the suspense period may need to be longer than 60 days. When the original return is secured: If other missing or incomplete information was also requested and has not been received, refer to IRM 4.19.12.10.1.6, Missing or Incomplete Information. If all required case contents are present, refer to IRM 4.19.12.10.1.8, Classification Referrals. Leave case notes in the case documentation to indicate the return has been secured. Summarize actions taken and letters sent in the case documentation section of the database.
Missing or Incomplete Information
4.19.12.10.1.6 (12-06-2023) Missing or Incomplete Information If the request is incomplete or invalid for any reason and a determination could not be made through research, use the IAT Letters Tool, to send a Letter 621C, Prompt Assessment Request; Acknowledgement/Reply/Additional Information Requested for Form 4810 or Letter 738C, Decedent Income/Gift Tax Return; Personal Liability Discharge Request, for Form 5495, to request the missing or incomplete information. Note: The Letters IAT Tool can be used. Suspend the case for 60 days. Update the IDRS control base activity to SUSPNDMMDD. Note: The ACTON IAT Tool can be used. When all required contents are received, review for accuracy, notate in case documentation and continue processing. Refer to IRM 4.19.12.10.1.8, Classification Referrals. If the taxpayer does not respond, reject the case. Refer to IRM 4.19.12.10.1.7, Rejecting the Case. If the taxpayer responds to the inquiry after the suspense has expired and the case has been closed, work the case as a new request. Refer to IRM 4.19.12.10.1.2, Initial Review.
Rejecting the Case
4.19.12.10.1.7 (12-06-2023) Rejecting the Case Send a Letter 621C, Prompt Assessment Request; Acknowledgement/Reply/Additional Information Requested, for Form 4810 or Letter 738C, Decedent Income/Gift Tax Return; Personal Liability Discharge Request, for Form 5495, to reject the case back to the taxpayer. Provide an explanation of why the form is being rejected. Circle out the received date and any other IRS notations in red and attach a copy of the Form 4810 and/or Form 5495 to the letter. Detach copies of envelopes, duplicate IRS letters, copies of electronic returns and/or IDRS prints. Identify they can be destroyed by writing a large "X" on the top page of the prints and placing them in a classified waste bin. Note: Classified waste is documentation containing taxpayer entity or account information that is not part of the case and is not needed for audit trail purposes. Refer to IRM 21.5.1, General Adjustments, for guidance on handling classified waste to prevent inadvertent/unlawful destruction of records. Update the IDRS control base activity to RJECT for each affected tax period. Note: The ACTON IAT Tool can be used. Enter case notes in the case documentation section of the database summarizing case actions, identify/mark which letter was sent, and press the close button for each tax form and period addressed. Ensure any original returns included with the request or previously requested from files are sent to processing or refiled.
Classification Referrals
4.19.12.10.1.8 (12-06-2023) Classification Referrals Ensure the case is completely built before sending to Classification to be classified as Accept/Reject/Select. Update the IDRS control base activity to FULLPKG. Note: The ACTON IAT Tool can be used. Follow local routing procedures to route to Classification.
Classification Responses
4.19.12.10.1.9 (12-06-2023) Classification Responses Classification will classify the case and return it to Classification Support with a determination. Classification Support will take the following actions based on the Classifier's determination: Accept: Accept the form as filed. Reject: Reject the form back to the taxpayer. Select: Open AIMS and build the case.
Accept
4.19.12.10.1.9.1 (12-06-2023) Accept Use the Form 4810 received date and the chart(s) below to determine the closing/release date for the closing letter. If the Form 4810 is received in: (For example: If received on 01/15/2023) Provide a closing date 18 months from that date in: (provide the date of 07/15/2024) January July February August March September April October May November June December July January August February September March October April November May December June Exception: If the ASED on CC TXMOD has expired or will expire within 18 months, enter the ASED for each tax period in your closing letter. For example, if the Form 4810 was received on 05/15/2023 for tax period ended December 31, 2019 and the ASED expired on 04/15/2023, provide a closing date of 04/15/2023. Use the Form 5495 received date and the chart(s) below to determine the closing/release date for the closing letter. If the Form 5495 is received in: (For example: If received on 01/15/2023) Provide a closing date 9 months from that date in: (provide the date of 10/15/2024) January October February November March December April January May February June March July April August May September June October July November August December September Exception: If the ASED on CC TXMOD has expired or will expire within 9 months, enter the ASED for each tax period in your closing letter. For Form 4810, input CC REQ77 to input a TC 560 to shorten the ASED. Input the closing date in the EXTENSION-DT> field, today's date in the TRANS-DT> field and enter "Shorten Statute" in the remarks field. Note: DO NOT input a TC 560 for Form 5495. This is only done when the taxpayer submits a request for a prompt assessment under IRC section 6501(d) with a Form 4810. Caution: An unpostable condition will be created if an ASED date is input that is earlier than the masterfile ASED date. To bypass this, input blocking series 99 in the DLN field. Send a Letter 621C, Prompt Assessment Request; Acknowledgement/Reply/Additional Information Requested for Form 4810 or Letter 738C, Decedent Income/Gift Tax Return; Personal Liability Discharge Request, for Form 5495. Note: The Letters IAT Tool can be used. Note: Send a separate letter for each return filed (for example, if both Form 1120 and 941 are listed on the Form 4810). A letter can include multiple tax periods for the same return type. Reminder: Keep two copies of the letter; one for Classification Support records and the other to attach to the case that goes to files. Update the database by inputting the letter that was sent (identify the closing date provided to the taxpayer in the case notes) and closing all open tax years and forms. Update the control base activity to ACCEPT and close all open controls. Note: The ACTON IAT Tool can be used. If the return was filed on paper take the following actions: Print CC TXMOD and highlight the DLN of the TC 150 on the second line of the CC TXMOD print. Assemble all relevant documents (for example, the original return, Form 4810/ 5495, all documents sent with the original request, and a copy of all letters.) Attach the CC TXMOD print to top of the documents and place the package in the teams designated location to be refiled. If the return was filed electronically take the following actions: Detach copies of electronic returns and/or IDRS prints. Identify they can be destroyed by writing a big X on the top page of the prints and placing them in a classified waste bin. Input a TC 290 for .00, Hold Code 3 (Hold Code 2 if there are credits on the account), with the remarks "SD ATTACH TO DLN," using CC REQ54. Ensure the Source Doc box is populated with a "Y" before transmitting the adjustment. Attach the adjustment transmittal print to the copies of the Form 4810/5495, all documents sent with the original request and all letters sent. Place the package in the team's designated location to be refiled.
Reject
4.19.12.10.1.9.2 (12-06-2023) Reject Reject the case back to the taxpayer by sending a Letter 621C, Prompt Assessment Request; Acknowledgement/Reply/Additional Information Requested, for Form 4810 or Letter 738C, Decedent Income/Gift Tax Return; Personal Liability Discharge Request, for Form 5495. Provide an explanation of the reason the form is being rejected. The selecting classifier may provide an open paragraph to be used in the closing letter. Circle out the received date and any other IRS notations in red and attach a copy of the Form 4810 or Letter 5495 and all other documents sent with the request to the letter. If any of the case documents need to be sent to files take the following actions: Detach copies of envelopes, duplicate IRS letters, electronic returns and/or IDRS prints. Identify they can be destroyed by writing a large "X" on the top page of the prints and placing them in a classified waste bin. Print CC TXMOD and highlight the DLN on the second line of the CC TXMOD print. Attach the CC TXMOD print to the original return, copies of the Form 4810/5495, and all letters sent. Place the package in your area's designated location to be refiled. If any of the case documents need to be sent to files and the return was filed electronically take the following actions: Detach copies of electronic returns and/or IDRS prints. Identify they can be destroyed by writing a big X on the top page of the prints and placing them in a classified waste bin. Input a TC 290 for .00, Hold Code 3 (Hold Code 2 if there are credits on the account), with the remarks "SD ATTACH TO DLN," using CC REQ54. Ensure the Source Doc box is populated with a "Y" before transmitting the adjustment. Attach the adjustment transmittal print to the copies of the Form 4810 or Form 5495, all documents sent with the original request and all letters sent. Update the IDRS control base activity to REJECT and close all open IDRS control bases. Note: The ACTON IAT Tool can be used.
Select
4.19.12.10.1.9.3 (12-06-2023) Select A Classifier will provide a Form 6754, Examination Classification Checksheet (IMF) or a Form 10264, Revenue Agent – Classification Checksheet (BMF) if they determine the case should be selected for an issue such as unreported income. Review the classification checksheet and Form 895, Notice of Statute Expiration for direction from the Classifier on if and how to address the ASED. If directed to shorten the statute, use CC REQ77 to input a TC 560. For detailed instructions, refer to IRM 14.1. Caution: An unpostable condition will be created if an ASED date is input that is earlier than the masterfile ASED date. To bypass this, input a blocking series of 99 into the DLN field. Send a Letter 621C, Prompt Assessment Request; Acknowledgement/Reply/Additional Information Requested for Form 4810 or Letter 738C, Decedent Income/Gift Tax Return; Personal Liability Discharge Request, for Form 5495. The selecting classifier may provide an open paragraph to be used in the closing letter. Caution: DO NOT inform the taxpayer that their return was selected for examination. Note: The Letters IAT Tool can be used. Control AIMS to the appropriate area office. Build the case to include the following case contents: Request for Prompt Assessment (Form 4810) and/or Request for Discharge from Personal Liability (Form 5495) Letter of Administration Relevant tax returns Form 6754, Examination Classification Check Sheet (IMF) or Form 10264, Revenue Agent – Classification Checksheet (BMF) Form 895, Notice of Statute Expiration Update the IDRS control base to SELECTED and close all open controls. Note: The ACTON IAT Tool can be used. Update the database by inputting the letter that was sent, documenting the case was selected for examination, and closing all open tax years and forms. Route the case.
Form 8282 Intake
4.19.12.10.2 (05-29-2026) Form 8282 Intake IRM 4.19.12.10.2.1, Form 8282/8283 Match Program Scope and Objectives IRM 4.19.12.10.2.2, Intake IRM 4.19.12.10.2.3, Initial Review IRM 4.19.12.10.2.4, Missing or Incomplete Information IRM 4.19.12.10.2.5, Form 8282 Database IRM 4.19.12.10.2.6, Case Closure
Form 8282 Intake Scope and Objectives
4.19.12.10.2.1 (05-29-2026) Form 8282 Intake Scope and Objectives Purpose: The instructions in this subsection are used to process Form 8282, Donee Information Return, as part of the Form 8282 /Form 8283, Non-cash Charitable Contribution match program. The program screens for potential selection for audit. Cases are selected when non-cash contribution deductions do not meet the criteria established for substantiation. Cases may be selected for Area Office or Campus Exam. Audience: CEFS Classification Support executes the Form 8282 / Form 8283 Match Program under direction from Exam Quality and Technical Support (EQTS). CEFS Policy HQ analyst has oversight for the program and coordinates technical issues with EQTS.
Authority
4.19.12.10.2.1.1 (12-06-2023) Authority IRC 170, Charitable Contributions and Gifts, IRC 6050L, Returns Relating to Certain Donated Property; and Treasury Regulation 1.170A-16, Substantiation and Reporting Requirements for Noncash Charitable Contributions; and Deficit Reduction Act of 1984 (DEFRA), sec. 155, Pub. L. No. 98-369, provide authority for processing non-cash charitable contributions.
Filing Requirements
4.19.12.10.2.1.1.1 (12-06-2023) Filing Requirements Original and successor donee organizations must file Form 8282, Donee Information Return, with the Ogden IRS Campus for dispositions of certain charitable deduction property if the donee sells, exchanges, consumes, or otherwise disposes of the contribution within three years after the date the original donee received the property. Taxpayers mail Form 8282 to Internal Revenue Service, Ogden, UT 84201-0027 CCU at M/S 4140(SCOW). Form 8283, Non-Cash Charitable Contribution, is filed by individuals, partnerships, and corporations. Individual taxpayers are required to file Form 8283 when non-cash charitable contributions reported on Form 1040 Schedule A exceed $500. C corporations, other than personal service corporations and closely held corporations, must file Form 8283 only if the amount claimed as a deduction is more than $5,000. Partnerships and S corporations that claim deductions for non-cash gifts of more than $500 must file Form 8283 with Form 1065, or Form 1120S. Note: The partnership or S corporation must give a completed copy of Form 8283 to each partner or shareholder receiving an allocation of the contribution deduction. The partnership or S corporation Form 8283 should be attached to the partner's or shareholder's tax return. The Form 8282 / Form 8283 Match Program compares information from both Form 8282 and Form 8283 to ensure that appropriate deductions are being allowed on both IMF and BMF filings. Note: Items valued at $500 or less and items consumed or distributed for charitable purpose without consideration do not require completion of the Form 8282. See Instructions to Form 8282 for additional information. Donees are instructed to file Form 8282 within 125 days after the date donated property is disposed. Note: Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, is used to report charitable contributions of motor vehicles, boats, and airplanes after December 31, 2004 as required by Section 884 of the American Jobs Creation Act of 2004 (Public Law 108-357) which added new IRC 170(f)(12). A donee organization may use Form 1098-C to provide a contemporaneous written acknowledgment to the donor and must use it when reporting the same information to the IRS. Form 1098-C are filed in accordance with the instructions for Form 1096 which is a transmittal document.
Deduction Criteria
4.19.12.10.2.1.1.2 (12-06-2023) Deduction Criteria Non-cash contributions larger than $250 made to an organization eligible to receive tax deductible contributions are not tax deductible unless the donee organization supplied the donor with a Contemporaneous Written Acknowledgment (CWA). The contribution acknowledgements must include a description (but not value) of any property other than cash contributed, a statement as to whether the donee organization provided any goods or services in consideration, in whole or in part, for any property, a description and good faith estimate of the value of any goods or services donee provided, and, if such goods or services donee provided consist solely of intangible religious benefits, a statement to that effect. An acknowledgment shall be considered contemporaneous if the taxpayer obtains the acknowledgment on or before the earlier of the date on which the taxpayer files the original return for the taxable year in which the contribution was made, or the due date (including extensions) for filing such return.: Note: Form 8282 or Form 8283 is often supplied as the acknowledgment but is not a substitute for a CWA. For noncash charitable contributions more than $5,000 but not more than $500,000, the donor must provide a qualified written appraisal of the property upon request and a complete Form 8283 must be attached to the return. For noncash charitable contributions of more than $500,000, the donor must attach a qualified written appraisal of the property and a completed Form 8283 must be attached to the return. Generally, a contribution of clothing or a household item must be in good used condition or better at the time of the contribution and the donor must meet the substantiation requirements of Treas. Reg. 1.170A-16. If the noncash charitable deduction is a single item of clothing or household item, the item is not in good used condition or better at the time of the donation, and the claimed value is more than $500, then a qualified appraisal and a Form 8283 must be attached to the return. Household goods include furniture, furnishings, electronics, appliances, linens and similar items. They do not include food, paintings, antiques, and other objects of art, jewelry, gems, and collections. The donee organization must sign the Form 8283, Non cash Charitable Contribution Part IV, Donee Acknowledgement, acknowledging receipt of the property and awareness of the subsequent filing requirement, in the event they dispose of the asset within three years or the donor submits a detailed explanation of why it was impossible to get the donee's signature.
Related Resources
4.19.12.10.2.1.2 (05-29-2026) Related Resources Form 8282, Donee Information Return and Instructions Form 8283, Non cash Charitable Contribution and Instructions IRM 3.11.3.19.1.7, Lines 11, 12, 13, and 14 - Gifts to Charity IRM 4.19.15.21.3, Cash and Non-Cash Contributions IRM 21.6.4.4.1.6, Gifts to Charity Pub 526, Charitable Contributions
Intake
4.19.12.10.2.2 (12-06-2023) Intake Process new receipts of Form 8282, Donee Information Return, as follows: Remove staple and envelopes from Form 8282 ensuring any correspondence remains with the form. Stamp the bottom of the form with current date. Scan the form and save it to an SBU folder. Upload the form to the Share Point database and create a case in the appropriate year's folder. Delete the form document(s) out of the folder on your computer after verifying they successfully saved to the database. See IRM 10.5.1, Privacy Policy, for privacy policies and practices. If a Form 8283 is received by itself, associate it with the original return.
Initial Review of Incoming Requests
4.19.12.10.2.3 (12-06-2023) Initial Review of Incoming Requests In accordance with IRC 6050L(a), if a charitable organization sells, exchanges, or otherwise disposes of charitable deduction property within 3 years after its receipt, the organization must file a Form 8282, Donee Information Return, containing the following information: The name, address, and Employer Identification Number (EIN) of the donee filing the return The name, address, and Taxpayer Identification Number (TIN) of the donor (if available) A description of the property The date of the contribution The amount received on the disposition The date of such disposition A description of the donee's use of the property A statement indicating whether the use of the property was related to the purpose or function constituting the basis for the donee's exemption under IRC 501
Missing or Incomplete Information
4.19.12.10.2.4 (05-29-2026) Missing or Incomplete Information If the TIN is missing or incomplete, take the following actions: Research IDRS command codes NAMES and NAMEI for IMF or NAMEE or NAMEB for BMF to locate missing TINs. If you are unable to locate the missing TIN on IDRS, research the Form 8282 database. If the TIN is not found in the 8282 database, research using web-based public record tools. If the Form 8282 is incomplete or invalid, based on the form instructions, and a determination could not be made through research, send a letter to request the missing or incomplete information when needed. Ensure the letter is reviewed and approved prior to sending. To ensure timely and quality responses to taxpayer correspondence refer to IRM 4.19.12.3, Correspondence. Create an IDRS Control Base with an activity code of FORM8282. Note: The ACTON IAT Tool can be used. Suspend the case for 30 days by updating the IDRS control base activity code to SUSPNDMMDD (MMDD = 30 days from the date the letter was generated). If response to the letter is not received within 30 days, send a second letter requesting the information and update the IDRS control base activity code to SUSPNDMMDD (MMDD = 30 days from the date the letter was generated). If no response is received, close the IDRS control base with activity code NORESPONSE. If all required contents are received, review for accuracy and continue processing. If the missing or incomplete information cannot be obtained, input the Form 8282 into the database as received.
Form 8282 Database
4.19.12.10.2.5 (05-29-2026) Form 8282 Database Once verified as accurate and complete, enter the Form 8282 into the Form 8282 database. Form 8282 database entry must include the following information: Charitable Organization (Donee) TIN Charitable Organization (Donee) Name Charitable Organization (Donee) Address Donor TIN (if available) Description of Property Donated Year Received (if available) Date Disposed (if available) Disposition Amount (if available) The Form 8282 database is a local database maintained by the Ogden Campus Exam. Access is approved through Ogden Campus Exam Planning and Analysis staff.
Case Closure
4.19.12.10.2.6 (12-06-2023) Case Closure Classification is completed in EQTS. If EQTS contacts Classification Support to build selected cases, take the actions outlined in this IRM. The EQTS classifier will provide Classification Support with a completed Form 6754, Examination Classification Checksheet. Research IDRS to identify if an AIMS base is open. If there is an open AIMS base, use the AIMS data to route the Form 8282 case file to the Area Office or Campus Exam. If the case is NOT open on AIMS, use CC AM424 to open an AIMS base. Verify completeness of the Form 6754, Examination Classification Checksheet, by ensuring the following notations are present: PC 0075 and SC 85 at top of the form Cases selected for office audit (Campus Exam) should have Box 3 checked in Section B Cases selected for field audit (Area Office) should have Box 4 checked in Section B Check Box 18, Contributions Remarks should state "See 8282 and stuffer" After verifying the completeness of the Form 6754, Examination Classification Checksheet, take the following actions: Enclose Stuffer 0075, Non-Cash Contributions, with Form 8282 Filed by Donee when necessary, with the built case. Prepare Form 3210, Document Transmittal Route to the appropriate area When the retention period expires, complete Form 11671, Certificate of Records Disposal for Paper or Electronic Records, to obtain approval to destroy or delete the data, form, etc. Note: When you scan a form into a system the scanned form on the system then becomes the original. The paper document then becomes a copy and can be destroyed.
Collection Centralized Case Processing (CCP)
4.19.12.10.3 (05-29-2026) Collection Centralized Case Processing (CCP) SB/SE Exam Classification teams provide support to Collection CCP when claims meeting Category A criteria are received in the field (refer to IRM 5.1.15.5, Adjustments - General Procedures Form 3870). Philadelphia assists with the processing of IMF claims meeting Category A criteria received in Collection CCP. Ogden assists with the processing of 1040X IMFX K-1 claims meeting Category A criteria received in Collection CCP. Cases in IDRS Status 26 (assigned to a Revenue Officer) often need to be worked outside of the AMS/CII system. Collections attaches a Form 3210 to the Form 3870 and electronically delivers the claim to Philadelphia or Ogden CAT-A Classification. When Exam Classification determines the claim should be selected, they notify Classification Support to build and refer the case. Any determination other than "select" is returned to Collection CCP, who will ensure proper case processing/disposition. Classification Support ensures AIMS is opened and appropriate case actions are taken to refer the selected claim to the corresponding Exam area or Field PSP.
Cross-functional Support
4.19.12.11 (05-29-2026) Cross-functional Support Systemic limitations within the AMS/CII system require SB/SE Exam Classification to receive and house CAT-A inventory for other Business Operating Divisions (BODs) and SB/SE functions. SB/SE Exam CAT-A Classification does not assume responsibility for monitoring and/or managing inventory held in CII for other BODs/functions, including statute repercussions. The following HQ Reserved numbers (AM identifies and refers to CAT-A with the appropriate HQ Reserved number) are housed in SB/SE Classification IDRS numbers/CII inventory, but they are NOT worked by SB/SE CAT-A classifiers: HQ Reserved 5 (BMF cases only worked by LB&I Assistant Deputy Commissioner Compliance Integration (ADCCI)) HQ Reserved 9 (certain ET cases only worked by SB/SE Employment Tax (ET)) HQ Reserved 10 (certain ET cases only worked by SB/SE Employment Tax (ET)) HQ Reserved 15 (IMF International cases only worked by LB&I Withholding Exchange and International Individual Compliance (WEIIC)) HQ Reserved 18 (all Tax Exempt/Government Entities (TE/GE) cases only worked by TE/GE) Classification ensures cases referred under the incorrect CII referral reason are returned to AM to be referred under the correct referral reason. Follow IRM 4.1.26.3.5.1.1, Process to Create/Modify CAT-A criteria to coordinate with stakeholders when modifying referral criteria in Exhibit 21.5.3-2, Examination Criteria (CAT-A) - General.
Work Opportunity Credit (WOTC) Support
4.19.12.11.1 (12-06-2023) Work Opportunity Credit (WOTC) Support Related Resources IRM 21.5.3-3, Examination Criteria (CAT-A) – Credits IRM 21.7.4.4.8.3.2, Form 5884, Work Opportunity Credit Background: An employee can request their employer complete a Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, and send it to the state workforce agency within 28 days of the beginning of work. The agency verifies the form sends certification to the employer advising they can claim the WOTC. When a revocation is made, the State Workforce Agency (SWA) sends a Notice of Revocation (NOR) letter to the employer and one to the IRS. The WOTC Coordinator sends NOR letters (received from state agencies) to the campus via EFax to complete general research. Classification Support researches IDRS to identify the Business Operating Division (BOD) for each NOR and sorts the NORs by BOD. Classification Support saves the NOR PDF documents based on the BOD and state on a shared drive. If the taxpayer has BOD code SB, Classification Support sends a notification email to the designated SB/SE WOTC coordinator. If the taxpayer has BOD code LM, Classification Support sends a notification email to the designated LBI WOTC coordinator.
State Audit Report Program (SARP) Support
4.19.12.11.2 (12-06-2023) State Audit Report Program (SARP) Support Under the State Audit Report Program (SARP) state agencies submit electronic referrals to the campus to complete general research. Classification Support researches taxpayer TINs using IDRS Command Codes NAMES, NAMEE, and INOLES and populates a SARP spreadsheet with basic entity information. If the taxpayer has BOD code "SB," Classification Support emails the spreadsheet to the Area contact and the designated SB/SE PSP SARP analyst contact. If the taxpayer has BOD code "LM," Classification Support emails the spreadsheet to the designated LBI PSP SARP analyst contact. If the submitting state agency is Massachusetts or California, Classification Support saves the spreadsheet to the SARP shared drive and emails the designated SB/SE PSP SARP analyst contacts that the spreadsheet has been completed for Massachusetts or California.
Low-Income Housing Credit (LIHC)-Campus Intake
4.19.12.11.3 (05-29-2026) Low-Income Housing Credit (LIHC)-Campus Intake The Low-Income Housing Credit (commonly referred to as Low-Income Housing Tax Credit (LIHTC)) under IRC 42 provides an incentive for taxpayers to invest in affordable low-income rental properties and is administered by the IRS and State Housing Finance Agencies (HFA's). The taxpayer receives tax credits for ten years (credit period). To keep the credit, the taxpayer must provide affordable housing for fifteen years (compliance period). After IRS jurisdiction ends, the taxpayer must continue to provide affordable housing under the terms of the extended use agreement, which is at least another fifteen years. Altogether, the taxpayer is obligated to provide affordable housing for at least thirty years. The LIHTC team located in the Philadelphia Examination Operation is responsible for receiving and processing the various forms submitted by HFA's and taxpayers as required. These include: Form 8610, Annual Low-Income Housing Credit Agencies Report Form 8610 Schedule A, Carryover Allocation of Low-Income Housing Credit Form 8609, Low-Income Housing Credit Allocation and Certification, and Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition The LIHTC examiners also resolve errors on the forms, provide customer service to the HFA's and taxpayers, transcribe data from the submitted forms into the LIHTC database, and support Examination's classification process. The Form 8610 is used to transmit Form 8609, Part I and Form 8610, Schedule A to the Internal Revenue Service (IRS) by the due date each year of February 28th. All LIHTC examiners use the Compliance Data Environment (CDE) Database to input form data and research form information, as needed. The CDE application is used by Small Business/Self Employed (SB/SE) Examination for workload identification, planning, delivery, and monitoring. The CDE application modernizes the SB/SE workload interface with online access from the IRS workstation. The CDE application is used by the centralized LIHTC team to transcribe data from submitted LIHTC information forms.
Forms Processed by the LIHTC Unit
4.19.12.11.3.1 (05-29-2026) Forms Processed by the LIHTC Unit LIHTC forms can be received via the Digital Mobile Adaptive Form (DMAF) platform or via a paper form. If the form is received through DMAF, follow the DMAF User Guide to download the form for processing. Below is an explanation of each form processed by the LIHTC unit. Form 8610, is filed by HFA's to transmit Form 8609 Part 1 and Form 8610 Schedule A. It is used to report the credit dollar amount allocated during the year under IRC 42 and projects financed by tax-exempt bonds subject to the volume caps under IRC 146. It also provides a reconciliation of the HFA's credit ceiling allocations and reports all properties subject to the compliance monitoring requirements. Form 8610, Schedule A, is completed and filed by the housing credit agency to report a carryover allocation of a low-income housing credit. A Schedule A is completed for each carryover allocation. Form 8609 Part I, Low-Income Housing Credit Allocation, is used by the housing credit agency to allocate credits within their jurisdiction to specific projects. A separate Form 8609 is issued by the housing credit agency for each building in a multiple building project. Form 8609, Part II First Year Certification, is filed by owners of residential low-income rental buildings to obtain a housing credit allocation from the housing credit agency. In addition, the form contains the first-year certification completed by building owners with respect to the first year of the credit period as required under IRC 42(I). Form 8823, is filed by HFA's to notify the IRS of noncompliance with IRC 42 compliance monitoring requirements or to report a low-income building disposition.
Form 8610 Package Instructions
4.19.12.11.3.2 (05-29-2026) Form 8610 Package Instructions Upon receiving a Form 8610 package from the HFA, follow the procedures listed below: Separate the Form(s) 8610 Schedule A and the Form(s) 8609 Part 1, then refer to the instructions below for the specific form. Separate the Amended Form(s) 8609 Part I for prior tax years. Amended Form(s) 8609 Part I for a prior year will have the amended box checked and the placed in-service year will be prior to the current Form 8610 year. The HFA's were asked to file amended forms related to a prior year Form(s) 8610 separate from the current year Form(s) 8610 package. (See processing instructions below for Form 8609, Part I). All amended Form(s) 8609 Part I received with the current year Form 8610 package and a placed in-service year corresponding to the Form 8610 tax year should be researched to ensure they belong with the current year before entering them into the database. Note: Tableau can be used for research to determine if the original was already submitted. If the original Form 8609 Part I is in the database for a prior year, then contact the Program Analyst for guidance. (See instructions for Form 8609 Part I below for processing instructions). Create the Form 8610 for the current tax year in the LIHTC database before creating any Form 8610 Schedule A, or Form 8609 Part I. Input the Form 8610 Part I items into the database ensuring the current tax year version of the form is being used by the HFA. Enter the agency name, address, and Employer Identification Number (EIN). Review the filed form to determine if the amended box is checked. Ensure the form counts match the physical forms received. Reconcile any form count differences and verify all forms are input for the current tax year. Contact the HFA for an amended Form 8610 if the form count is inaccurate Input the Form 8610, Part II into the database ensuring the current tax year version of the form is being used by the HFA. Enter the line 7b amount as reported by the HFA. If this amount is correct, the database has a validity check related to the population figure multiplied by the amount per capita or the annual minimum credit ceiling amount to ensure there is a credit ceiling reconciliation difference. Enter the line 7c amount for the credit ceiling returned in current year from allocations in a prior year as reported by the HFA. Enter the line 7d National Pool Credit amount as reported by the HFA. The database has a validity check to ensure there is a reconciliation difference if the amount is incorrect. The annual National Pool amount for each HFA that receives an allocation is reported in a Revenue Procedure issued by Counsel related to the subsequent calendar year. Enter the line 7f unused state housing credit ceiling amount (if any) reported by the HFA from the prior year Form 8610. Enter the total state housing credit ceiling for applicable taxable year on line 7g by adding lines 7e and 7f. Enter the line 8a total dollar amount of credits from Form(s) 8609, identified on line 1 of Form 8610, used to allocate credit in the current year where the year of allocation and the placed-in-service year are the same. Enter the line 8b total dollar amount of credits from line 5 of the Schedule A (Form 8610) reported by the HFA. The database has a validity check to ensure there is a reconciliation difference if the amount does not match the carryover credit amount from all Schedule A (Form 8610) filings. Enter the line 8c total credits allocated during the current year reported by the HFA. Add lines 8a and 8b. (Total can't exceed line 7g). Enter the line 9 through 12 information as reported by the HFA. Input the Form 8610 Part III items into the database ensuring the current tax year version of the form is being used by the HFA. Enter the responses to the line 13 through 15 questions as reported by the HFA. If line 13, 14, 15 has the "NO" box checked there should be an explanation attached which needs to be provided to the SB/SE LIHTC Program Analyst. After all appropriate information is entered into the database, run a reconciliation report. If discrepancies are identified, double check your input. If there are still discrepancies, attempt to determine the specific forms causing the issue. If the discrepancy is not easily identifiable, use a Tableau report of all the related inputs to attempt to identify inconsistent, or inaccurate information. Then work with the HFA to resolve any form corrections. Form 8610 follow-up with the HFA Any discussions, or meetings scheduled with the LIHTC Program Analyst regarding a Form 8610 reconciliation, must include the LIHTC Team Manager on the email, or calendar invite. If the reconciliation issue cannot be resolved after discussion with the LIHTC Program Analyst, then contact the HFA with the corrections needed, or reconciliation discrepancies that need to be resolved. If the HFA does not respond to your initial request for form corrections, or additional information after 30 days, then involve the LIHTC manager in your follow up action, or contact. If there is still no response for corrections after the second 30 day follow up timeframe, then involve the LIHTC Team manager, or acting manager and the LIHTC Program Analyst in setting up a follow up meeting with the HFA. After the reconciliation is completed for each HFA, then arrange the package in Building Identification Number (BIN) order before providing it back to the clerical staff for filing on the shelves.
Form 8610 Schedule A Instructions
4.19.12.11.3.3 (05-29-2026) Form 8610 Schedule A Instructions LIHTC tax examiners will review Forms 8610 Schedule A for accuracy, completeness, and that the allocation was made in year that corresponds to the Form 8610 year. Forms 8610 Schedule A is to be filled out completely by the HFA. All amended Forms 8610 Schedule A received with the current year Form 8610 package should be researched to verify the year of the allocation matches the Form 8610 year, either the current year, or a prior year, before entering them into the database. If a Form 8610 Schedule A has an allocation date in a prior year, but it is not in the database for the appropriate calendar year, then contact the LIHTC Program Analyst for guidance. Input all Forms 8610 Schedule A into the database associated with the current year Form 8610. Enter the agency name, address and Employer Identification Number (EIN). Enter the building owner name on line 1a, address on line 1b, and EIN on line 2. Review the filed form to determine if the amended box is checked. Review the filed form to determine if the HFA is granting carryover relief under Rev. Proc. 2014-49 by having the box checked. In most cases, the Form 8610 Schedule A should generally not be included with the current year Form 8610 package; but instead it should be associated with a prior year Form 8610. When the box is checked indicating the project is receiving HFA approved Presidentially Declared Major Disaster Relief per Rev. Proc. 2014-49, then the Form 8610 Schedule A database input should be revised to reflect the checked box. The amended box should not be checked in the circumstance where the Form 8610 Schedule A reflects that the relief was provided under the disaster relief circumstances. Contact the LIHTC Program Analyst for assistance, as needed. Line 3a - a box must be checked for input to identify if the carryover allocation is building based, or project based. Line 3b - the "Yes" , or "No" , box must be checked for input to identify if the project is subject to the nonprofit set-aside under IRC 42(h)(5). Line 4 - a date of carryover allocation of credit must be present for input. Line 6 - if a binding agreement was entered into, enter the percent shown on each line, if any, and accept the maximum applicable credit percentage as reported, in the Form 8610 Schedule A. Contact the Program Analyst with questions. Note: When there are two Forms 8610 Schedule A for the same project in the same tax year, input a combined Form 8610 Schedule A into the database. The HFA's were advised to count each form and dollar amount on the Form 8610. However, the database will not be updated to allow two Forms 8610 Schedule A for the same taxpayer to be input for the same tax year, so you will have to use a workaround process. You should combine the credit amount for the multiple Forms 8610 Schedule A and use the other line-item information for the combined Forms 8610 Schedule A from the highest dollar amount carryover allocation on Forms 8610 Schedule A for input into the database. The two or more Forms 8610 Schedule A will be counted by the HFA on the Form 8610, so your reconciliation will be off by one form for each instance. If the form count of Forms 8610 Schedule A is unreconciled based on the workaround of combining related Forms 8610 Schedule A line information, then document an explanation in the comment section and choose "reconciled" from the drop-down menu on the Form 8610 input screen.
Form 8609, Part I Instructions
4.19.12.11.3.4 (05-29-2026) Form 8609, Part I Instructions Form 8609, Low-Income Housing Credit Allocation and Certification, Part I, is to be entered separately from Form 8609 Part II When an original and amended Form 8609 Part 1 for the same building are received with the current year Form 8610 package, verify the form count included only the amended Form 8609 Part 1 that pertains to the current year Form 8610. In addition, attach the original Form 8609 Part I to the back of the amended Form 8609 Part I for information only. In this situation, it is not necessary to input the original Form 8609 Part I because the amended will overwrite the information anyway. Review Form 8609 Part I to ensure the Amended box or Addition to Qualified basis box are input based on the filed form. If the addition to Qualified Basis box is checked, the Form 8609 Part I information will not overwrite a previously input Form 8609 Part I for the same building that has been entered into the database. The Form 8609 with the Addition to Qualified Basis box checked is an additional allocation of credit to the same building for costs incurred after the first year of the credit period. Note: When an amended Form 8609 Part I is received related to a prior year Form 8610 filing, then input the amended form information to overwrite the previously filed form. If you receive only an amended Form 8609 Part I for a building with the current year Form 8610 package and you verify by conducting a search on the CDE database that an original Form 8609 Part I was not previously filed, then only input the amended Form 8609 Part I and verify the form count on the Form 8610 includes it. When an HFA amends a current year Form 8609 Part I prior to the Form 8610 filing due date, they should include the amended form with the Form 8610 package, attach the original to the amended, and only count the amended form in the form count and dollar amounts, not both forms. (Exception: When both the Amended Form and the Addition to Qualified Basis boxes are checked, then both forms need to be input if they belong with the current year Form 8610 package. Input the original first, then the amended. The database in this instance knows to not override the original form information.) If an original Form 8609 Part I related to a specific building was already submitted for a prior year based on your search of the LIHTC CDE Database, contact the HFA to amend the current Form 8610 to exclude the Form 8609 Part I from the count. In addition, verify the information on the newly filed form matches the Form 8609 Part I data in the LIHTC CDE Database. Once the correct Form(s) 8609 Part I have been identified for input associated with the current year Form 8610, LIHTC examiners should take the following actions: Action Number Form 8609 Part I Actions 1 Determine if the amended form box, or addition to qualified basis box is checked, then input the check, if applicable. 2 Verify that a building address is shown in Box A and input the information as reported. 3 Verify the HFA's name and address is shown in Box B and input the information as reported. 4 Verify the owner's name, address and Taxpayer Identification Number (TIN) are shown in Box C and input the information as reported. 5 Verify the HFA's EIN is shown in Box D and input the information as reported. 6 Verify the BIN is shown in Box E and input the information as reported. 7 Check to ensure Form 8609 Part I has been completed and signed by the HFA official. If incomplete, incorrect, or not signed, the HFA must be contacted to submit corrected or signed forms. Input the corrected form information. 8 Line 1a - If no date of allocation is shown on the form, then line 4 must have 25%* or more listed and either line 6a or 6d must be checked. If not, then the form needs to be corrected. There is no allocation date if the building is 25%* or more financed with tax-exempt bonds. If line 1a has a date, but line 4 has 25%* or more, then the form needs to be corrected. Contact the HFA to resolve incorrectly filed forms. Input the corrected form information. Note: IRC 42(h)(4)(B)(i) provides that an allocation of credit by a housing credit agency is not required if 50% or more of the aggregate basis of the building and the land on which the building is located is financed by one or more obligations exempt from tax under IRC 103. Section 70422 of the One Big Beautiful Bill Act (P.L. 119-21) added new IRC 42(h)(4)(B)(ii) for buildings that are placed in service in taxable years beginning after December 31, 2025. Under IRC 42(h)(4)(B)(ii), an allocation of credit by a housing credit agency is not required if 25% or more of the aggregate basis of the building and the land on which the building is located is financed by one or more obligations exempt from tax under IRC 103. One or more of the obligations must be part of an issue with an issue date after December 31, 2025, and must provide the financing for not less than 5% of the aggregate basis of the building and land. 9 Line 1b - Input the maximum housing credit dollar amount allowable as reported. 10 Line 2 - Input the maximum applicable credit percentage allowable providing the percentage is greater than or equal to 4% for allocation types with Box 6a, 6c, or 6d checked, or greater than or equal to 9% for allocation types with Box 6b or 6e checked. If not correct, contact the HFA for corrected information and input the corrected percentage. 11 Line 3a - Input the maximum qualified basis where the amount being reported by the HFA is only the amount of eligible basis necessary to result in a qualified basis which, when multiplied by the percentage on line 2, equals the credit amount on line 1b. 12 Line 3b - Input the box checked if the eligible basis used in the computation of line 3a was increased under the high-cost area provisions of section 42(d)(5)(B). Enter the percentage that eligible basis was increased which must be greater than 100% up to 130%. Note: If blank, the database will default this percentage to 100%. If the entered percentage is greater than 100%, input as if the box is checked. 13 Line 4 - Input the percentage of the aggregate basis financed by tax-exempt bonds as entered on the form, but if the percentage is greater than zero, the box associated with either line 6a or 6d must be checked. Contact the HFA to resolve any discrepancies. 14 Line 5a - Input the placed-in-service date as reported. Note: The placed-in-service date for an existing building is determined separately from the placed-in-service date of rehabilitation expenditures treated as a separate new building, so for the same building there may be a different placed-in-service date. 15 Line 6 - The allocation type should be identified by a box being checked on lines 6a through 6e. If not, contact the HFA. Box 6f may or may not be checked depending on whether it is a non-profit set aside allocation of credit. 16 Signature must be present, and the form dated. If not signed and/or dated, then contact the HFA. A wet signature is not required, but if it is electronically generated then it must be unique to the person whose name is identified.
Form 8610 Reconciliation Process
4.19.12.11.3.5 (05-29-2026) Form 8610 Reconciliation Process The CDE system will provide a Reconciliation worksheet for the Form 8610, the attached Form 8610 Schedule A and Form 8609 Part 1 information returns filed with Form 8610. Reconciliation of the Form 8610 and the associated forms can be computed after the Form 8610 has been entered by the user. The Form 8610 list will show the number of Form(s) 8610 Schedule A and Form(s) 8609 Part 1 "Entered" and "Expected" . The Entered number is the count of the forms the user enters using "Create" (Schedule A or Part 1). The Expected number is based in the Form 8610 line entries. Discrepancies between the Entered and Expected numbers are reflected on the Reconciliation worksheet. The user will need to determine where updates need to be made to address any discrepancies on the form count, if any. The Form 8610 List screen column "Rec Status" indicates if the Form 8610 and associated forms have been reconciled. Form 8610, Schedule A and Form 8609 Part 1 records with a "Y" Rec Status cannot be updated. User must select "Reconcile" drop down arrow and change status to "Unreconciled" and select "OK" to process the status update. User can then update a Form 8610, Schedule A or Form 8609 Part 1 record. Reconciliation (Worksheet) "Screen Description of Column Data" : Form 8610 Entry Column. Based on the user's entry of the Form 8610: Reconciliation Column. System calculations based on user's entry of Schedule A and Form 8609, Part 1: Difference Column. Difference between Form 8610 Entry Column and Reconciliation Column. The reconciliation worksheet can be printed by using the Print Screen icon located next to the "Home" icon on the menu bar (top left-hand corner). Prints to a local printer or can be saved as a PDF file. Before saving to PDF, size the CDE screen so there is a no Horizontal scroll bar on the bottom of the screen. If you have a Horizontal scroll bar, the right most column of information may get cut off on your PDF file. PDF file can be saved to a location on your computer. (PDF shown below). The reconciliation worksheet can be downloaded to the user's computer by selecting the Download icon. Formatting Tips: add borders, expand width of Columns B, C, D and format column B to "Wrap Text" .
Form 8609 Part II Instructions
4.19.12.11.3.6 (05-29-2026) Form 8609 Part II Instructions Follow the Steps below to review Form 8609 Part II, for correctness, completeness (including appropriate attachments when required), and the taxpayer's signature. If the TIN in Part I Box C does not match the TIN at the bottom of the form, then enter the form into the database and no letter to the taxpayer is required. Enter the reported information related to the TIN. Review Line 7 to ensure the Eligible Basis amount is shown, it is not zero, and it is not less than the amount on Line 8a. If the amount shown on Line 7 is blank, zero, or less than the amount on Line 8a, then send the Letter 6391, Form 8609 Part II Incomplete or Inconsistent Submission, to the taxpayer for correction of the Form 8609. Review Line 8a to ensure the original qualified basis of the building at the close of the first year of the credit period information is shown. If Line 8a amount is greater than Line 7 amount, zero, or blank, then send a Letter 6391, Form 8609 Part II Incomplete or Inconsistent Submission, to the taxpayer for correction. If Line 8b is checked "Yes" then ensure the list of all buildings is included as part of the Multiple Building Project attachment. If no attachment, or incomplete, then send a Letter 6386,Taxpayer Made a 'Yes" Election on Line 8b. but Failed to Provide Attachment Listing Buildings, to the taxpayer requesting the list of buildings. If Line 8b is checked "No" but there is an attachment with a list of buildings that may be part of a multiple building project, then send a Letter 6387, Taxpayer Made an Inconsistent Election on Line 8b, to the taxpayer. Send the letter for a determination if they intended that the list of buildings was attached, and they should have checked the Box 8b "Yes" . If Line 8b "Yes" and "No" boxes are not checked, then send a Letter 6385, Taxpayer Failed to Make an Election on Line 8b, to the taxpayer for correction. If Line 6a or 6d box is checked and there is no box checked for Line 9a, then send a Letter 6389, Taxpayer Failed to Make an Election on Line 9a, to the taxpayer for correction. If neither Line 6a or Line 6d box is checked by the HFA to identify credit allocations to federally subsidized buildings, and Line 4 is zero, then the taxpayer may either (1) check neither box, or (2) check the "no" box on Line 9a. Either choice is acceptable. If neither Line 6a or Line 6d box is checked and Line 4 is zero, then there is no consequence if a taxpayer checked "yes" on Line 9a, and no contact with the taxpayer is required. However, the selection is inconsistent with the information in Part I when Line 6a, or 6d box is not checked. The HFA should be contacted to confirm that the filing of Form 8609, Part I, is correct as not federally subsidized. The HFA can be contacted by telephone or letter. If written documentation is desirable, the request for confirmation can be made in writing. See Letter 6388, Confirmation of Federal Financing, requesting confirmation that the property was federally subsidized, or not. An amended Form 8609, Part I should be filed by the HFA if the property was actually federally subsidized and the Line 6a, or 6d box should have been checked. If the property is not federally subsidized per the HFA, but the Line 9a "Yes" box was checked, then contact the LIHTC Program Analyst for assistance. If the taxpayer attempts to change an election on line 8b, 9a, or 9b, send them the Letter 6390, Attempt to Revoke Election, and notify the SB/SE LIHTC Program Analyst. If Line 9b, box "Yes" is checked, input the check box as reported and contact the SB/SE LIHTC Program Analyst. If Line 10a is not checked, then send the Letter 6391, Form 8609 Part II Incomplete or Inconsistent Submission, to the taxpayer for them to make an election. The election is irrevocable once made, so the taxpayer cannot change it. If the taxpayer attempts to change an election on line 10a, notify the SB/SE LIHTC Program Analyst. If Line 10c does not have a box checked then send a Letter 6391, Form 8609 Part II Incomplete or Inconsistent Submission, to the taxpayer for them to make an election. If the checked box is inconsistent with the building location (i.e. 25-60 box checked, but building is not located in NYC) then contact the SB/SE LIHTC Program Analyst. The election is irrevocable once made, so the taxpayer cannot change it. If the taxpayer attempts to change an election on line 10c, contact the SB/SE LIHTC Program Analyst. If the form has no signature, then send a Letter 6391, Form 8609 Part II Incomplete or Inconsistent Submission, to the taxpayer for correction. If the printed name is unreadable, then send a Letter 6391, Form 8609 Part II Incomplete or Inconsistent Submission, to the taxpayer for correction. If no TIN is identified in Part II, then use the TIN for the taxpayer shown in Form 8609 Part I for correction and no letter is required. If no date is listed in Part II, then use the date one week before the envelope postmark date or "Received" date stamp. If the First Year of Credit Period is blank send a Letter 6391, Form 8609 Part II Incomplete or Inconsistent Submission, for correction. If the First Year of Credit Period is not the same as the Placed in Service (PIS) Year, Line 5, then Box 10a must be checked "Yes" and the year should be the year following the PIS Year. If checked "No" or the year is incorrect then send a Letter 6391, Form 8609 Part II Incomplete or Inconsistent Submission, to the taxpayer for correction unless the "Exception" applies. If the First Year of Credit Period is the same as the Placed In-Service Year, Line 5, then Box 10a must be checked "No" . If checked "Yes" or not checked, send a Letter 6391, Form 8609 Part II Incomplete or Inconsistent Submission, to the taxpayer for correction unless the "Exception" applies. All initial letters related to corrections of the Form 8609 Part II by a taxpayer have a 60 day follow up date. A calendar reminder should be input for 60 days after the letter is sent with the original Form 8609 Part II enclosed for correction. If there is no response from the taxpayer to the initial 60 day letter, then make one more attempt to contact them for the Form 8609 Part II correction with another 60 day follow up response date. If there is no response after the second correction letter attempt, then refer the taxpayer to the LIHTC Senior Program Analyst for a final demand letter. When inputting Form 8609 Part II, the applicable percentage on Line 2 of the Form 8609 should correspond with the election on Line 6, the credit allocation type. For a 9% applicable percentage on Line 2, the credit allocation type will always be 6b. New Building, Not Federally Subsidized, or 6e. Rehabilitation, Not Federally Subsidized. When the applicable percentage on Line 2 of Form 8609 is any percentage other than 9%, then the credit allocation type could be 6a, New Construction, Federally Subsidized, 6c Existing Building, or 6d Rehabilitation, Federally Subsidized. If the applicable percentage and Line 6 credit allocation type do not match, the CDE database Form 8609 Part II error report will pick up the mistake with either the input, or the HFA completion error. If there is a discrepancy as a result of a Form 8609 Part I completion error, then contact the HFA to amend the Form 8609 Part I and send to the owner-taxpayer. Exception: The first year of the credit period and line 5, PIS Date, being different is not always inaccurate. If there is an acquisition of an existing building and rehabilitation on the same building, then the first year of the credit period for the acquisition credits is determined by the rehabilitation placed in service year. Therefore, the first year of the credit period for both the existing building (acquisition) and rehabilitation credit forms should correspond to the rehabilitation credit placed in service year, even though the acquisition may have been in a prior year. Line 10a, for the acquisition credit, can be marked 'yes' or 'no', as long as the first year of the credit period for the acquisition credit is the same year as the rehabilitation credit placed in service year, or the following year. You do not need to send a letter if that is the case. Contact the SB/SE LIHTC Program Analyst if you have questions. If you find an error on one of the Form(s) 8609 Part II where the building is part of a multiple building project, only send the form that needs to be corrected back to the taxpayer with the applicable letter. You should not send the related correct Form 8609 Part II back to the owner-taxpayer, if only one, or a few forms have errors. Instead, input the correct forms and schedule a follow-up date on your calendar for the return of the forms that were sent to the owner-taxpayer for correction. If the Form 8609 submitted with the Form 8610 has Part II fully, or partially filled out and signed you should request the State correct it and submit a Form 8609 Part I only. Wait to input the Form 8609 Part I information until you receive the copy from the HFA with only Part I information. If you receive a Form 8609 Part I with Part II already in the system showing the Part I information, then compare the Form 8609 in the system to the one you are reviewing to ensure the information is the same. If the information is the same, then update the date to the HFA signature date to ensure the Form 8610 reconciliation includes that Part I. If it's not the same, then contact the SB/SE LIHTC Program Analyst to assist with resolving the issues.
Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition Instructions
4.19.12.11.3.7 (05-29-2026) Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition Instructions When a Form 8823 is received with, or without the 2D barcode, the form should be reviewed for the following specific actions taken: Action Number Form 8823 Actions 1 Confirm if the amended box is checked. If yes, reconcile with the original filed copy and input the form, or scan the 2D barcodes into the LIHTC database. 2 If line 1 is checked, compare the building name to the Form 8609 to ensure it has the same BIN, owner, and TIN, then input the form information. 3 The CDE database validation checks require a building address including street, city or town, state, and zip code, if not complete contact the HFA for a corrected form. Confirm Line 2 has a valid BIN that starts with two letters identifying the State or Territory, two numbers identifying the year of allocation, and five additional numbers assigned by the HFA, then input the information, or scan the 2D barcodes. If the BIN is incorrect, or invalid, then contact the HFA to correct the Form 8823. If line 3 is checked, compare the owner's name to the Form 8609. If it has the same name and address, then input the information, or scan the 2D barcodes. 4 Line 4 requires the Owner's TIN to be input and one of the boxes, either EIN (most of the time), or SSN is checked. 5 If Line 5 is zero and the year of non-compliance is a prior year, input the form information. However, the CDE database validation checks require a dollar amount, including zero, to be input, or included in the scanned information. Line 5 cannot be blank. If Line 5 is blank, then contact the HFA for a corrected Form 8823. 6 Line 6 should show the number of buildings for a multiple building project, but it could be zero, one, or left blank per the LIHTC CDE database validation codes and no error would be generated. 7 Input, or scan the 2D barcode for the number of residential units shown on Line 7a. Line 7a cannot be blank, null, zero, or less than the Line 7b value. 8 Input, or scan the 2D barcode for the number of low-income units shown on Line 7b. Line 7b cannot be blank, null, zero, or more than Line 7a (number of residential units). If there is an error on the Form 8823, then contact the HFA to have them correct the form. 9 Input, or scan the 2D barcode for the number of residential units in the building with noncompliance issues shown on Line 7c. Line 7c cannot be blank, or more than Line 7b (number of low-income units). Line 7c can be zero if the noncompliance issue is not related to specific units, but rather a portion of the eligible basis allocated to the building. If there is an error on the Form 8823, then contact the HFA to have them correct it. 10 Input, or scan the 2D barcode for the total number of residential units shown on Line 7d. Line 7d cannot be blank, or more than the Line 7a value. Line 7d can be zero. If there is an error on the Form 8823, then contact the HFA to have them correct it. 11 Input, or scan the 2D barcode for the date that the building ceased to comply with the low-income housing credit provisions, as shown on Line 8. Line 8 cannot be a future date, a date after the Line 9 date, or blank. If there is an error on the Form 8823, then contact the HFA to have them correct it. 12 The date when the building ceased to comply with the low-income housing credit provisions reported on Line 8 is the earliest date of any noncompliance issues reported on Line 11a through Line 11q. 13 Input, or scan the 2D barcode for the date that the noncompliance was corrected, as shown on Line 9. Line 9 cannot be a future date or a date prior to the Line 8 date, but can be blank. If there is an error on the Form 8823, then contact the HFA to have them correct it. 14 Generally, HFA's should not file a Form 8823 reporting the noncompliance issues corrected until all noncompliance reported for Line 11a through 11q has been resolved and the date when the last issue was corrected is the date shown on Line 9. 15 For noncompliance issue 11g. Gross Rent Exceeds the Limit, the noncompliance corrected date on Line 9 cannot be prior to January 1 of the year after the noncompliance issue was resolved. 16 If no noncompliance boxes are checked, then contact the HFA for a corrected form. Otherwise input, or scan the 2D barcode for the noncompliance issues as reported by the HFA on Line 11a through 11q. When Line 11p Building is No Longer in Compliance Nor Participating in the Section 42 Program, is the reported noncompliance issue, then there is no noncompliance corrected option available on the Form 8823. If the HFA attempts to report a correction to 11p by reflecting it in the attachment to Line 11q, or other place, then contact the Senior Program Analyst for instructions. 17 If Lines 11, 12, and 13 indicate explanations need to be attached (11c, 11h, 11o, 11p, 11q, 12, and 13a Other) then confirm the explanations are attached. Make a note in the Comment section of the database briefly describing the attachment information. If an explanation is not attached as expected, then contact the HFA to secure the explanations, or attachments. 18 If Line 13a has an entry, then Line 13b, Date of Disposition, must be completed. If not, contact the HFA for the date of disposition. 19 If Line 13a is a Disposition by Sale, then lines 13c, New owner name, address including street, city or town, state, and zip code, 13d, New Owner TIN, 14, Name of contact person, and 15, Telephone number of contact person, should be completed. If not contact the HFA to submit a completed form. 20 If Line 13a is a disposition by Other, then review the attached explanations to determine if there is a new owner. If there is, then lines 13c, 13d, 14, and 15 should be completed. If not, then contact the HFA to submit a completed form. 21 Input the printed name and title shown in the signature section of the Form 8823. However, Form 8823 2D barcode scanning page should now allow you to continue even if the agency signed date is empty. When the Form 8823 needs to be corrected per the above instructions, contact the HFA by phone and give them 30 days to respond with an amended form. Make sure you identify the follow up date on your calendar and complete the next appropriate action as soon as possible after the follow up date. If the HFA does not respond with corrected forms after 30 days, then make one more attempt by calling the HFA with the LIHTC Team manager on the phone. During the call request the submission of the corrected Form 8823 giving them an additional 30 days to respond. If after the second follow-up date no corrected forms are received, then contact the SB/SE LIHTC Program Analyst for the next appropriate actions. Once you have a correct Form 8823 then verify there is no back-in-compliance Form 8823 that has been input into the LIHTC database or received from the HFA awaiting your review and input. In other words, look through the forms that you have not input to ensure that the back-in-compliance Form 8823 for the same BIN is input at the same time as the original Form 8823 reporting the building as out of compliance. The goal is to avoid sending out a noncompliance Letter 3464, (non-Compliance) Taxpayer Correspondence Letter for Low Income Housing Credit program, when we are already in possession of a correction to the noncompliance issue. Send the taxpayer Letter 3464, (non-Compliance) Taxpayer Correspondence Letter for Low Income Housing Credit program, when the Form 8823 is reporting a non-compliance issue 11a through 11q, or 12 and the back in compliance date is in a subsequent tax year, or there is no back in compliance date on any Form 8823 received in the group. In other words, if the non-compliance that the HFA is reporting has not been corrected by the end of the same tax year, then Letter 3464, (non-Compliance) Taxpayer Correspondence Letter for Low Income Housing Credit program, must be sent to the taxpayer. You will choose all the "Insertable Paragraphs" on the Letter 3464, (non-Compliance) Taxpayer Correspondence Letter for Low Income Housing Credit program, that correspond to the "Out of Compliance" issues reported on Form 8823 by the HFA. The taxpayer is advised to contact their HFA to resolve the non-compliance issues. Send the taxpayer Letter 3467, (Disposition) Taxpayer Correspondence Letter for Low Income Housing Credit program, when the HFA reports a Disposition under Line 13 of Form 8823. The Field Case Selection (FCS) Program Analyst will generally use the LIHTC Database to determine the cases with the most audit potential, so screeners need to ensure the database input is correct and the forms have explanations as required.
Form 8823 2D Bar Code Scanning Instructions
4.19.12.11.3.8 (05-29-2026) Form 8823 2D Bar Code Scanning Instructions INSTALLING SCANNER: Topic Steps Installation Make sure your computer is OFF before installing the scanner. Plug the USB cable of your scanner into one of the USB ports on your computer. Then, turn ON your computer. The scanner will automatically be recognized by your computer. STEP BY STEP SCANNING AND E-FAX INSTRUCTIONS: Topic Steps Creation Access CDE (see step-by-step instructions in LIHTC New Hire Helps guide) and click Create. Pop up box will appear with Revision and Bar Code Entry as choices. Click Revision drop down arrow. Note: Select the correct Revision that matches the form for scanning. (June 2024 revision only). Barcode Entry Click Yes for Barcode Entry. Click OK. You will see four Barcode Boxes on the screen. Move your cursor into Barcode Box 1 (make sure it's flashing). Go to the page on the faxed Form 8823 with the four Barcodes. Point the scanner at the screen (about 3-5 inches away, either straight, or tilted slightly down—sometimes it takes a little maneuvering for the scanner to identify the barcode), and then pull the trigger (click). Note: Be sure to only click ONCE. Check the screen to see if the text is loading in the CDE Barcode Box. If not, keep trying, but only one click at a time (checking the Barcode Box each time), otherwise you may have double text (or more) in the Barcode Box, and it will show an error. Barcode Matching Once you have the first box loaded, repeat the process/steps for subsequent boxes on the form matching the Barcode Box Numbers on CDE. Note: You must scan barcodes in numerical order - 1, 2, 3, 4 and the cursor must be on the corresponding Barcode Box in CDE. When all the Barcode Boxes are filled on CDE, click the green process button on the top right side of CDE. This should take you to another screen with the Form 8823 filled out. If so, check that the information matches the e-Fax or paper form. Then add the received date (either fax stamp on faxes, or black stamp of paper), and add attachment or explanation in Box 13a. Click Save. A pop-up message will be generated stating completed. If there is an error box, try again to make sure it was scanned correctly. If it still does not work, it may be the form or input error from the HFA. Inform your manager. PAPER FORMS: Topic Steps Paper Forms Same as above, place the document on a flat surface with nothing blocking the barcodes. Note: Only the June 2023 Form 8823 revision is available for scanning.
Form 8823 Selected for Classification
4.19.12.11.3.9 (05-29-2026) Form 8823 Selected for Classification The FCS Program Analyst will notify the examiner when a Form 8823 package is needed for building the examination case which includes the forms and attachments. Scan the Form 8823, Form(s) 8609, and any correspondence with the taxpayer and upload it to the For Classification Folder on the LIHTC SharePoint. Directions for scanning can be found in the attached document. Requirements for a complete LIHTC case sent to classification: Copies of the original Form(s) 8823 with the attachments. Query/search to see if "back-in-compliance" Form(s) 8823 have been filed by the HFA. Copies of the Form 8609 Part I and II for each BIN. Taxpayer Correspondence by examiner. BRTVU print showing the credit was taken (SK view) in the year of the violation. Note: If you see particularly egregious non-compliance please refer that case to the FCS Program Analyst. DELETING RECORDS Only the LIHTC Manager and LIHTC Program Analyst can delete records in rare circumstances when significant errors have occurred. Below are the only types of records that can be deleted: Form 8823 Form 8610 Schedule A Form 8609 Part I Form 8609 Part II Records in a reconciled status cannot be deleted. The user must first un-reconcile the Form 8610 package before a Form 8610 Schedule A or Form 8609 Part I, record can be deleted. Note: If a Form 8610 Schedule A or Form 8609 Part I record is in a reconciled status, the delete icon will be disabled. WHEN DOES A RECORD NEED TO BE DELETED? Before deleting a record, a thorough review should be performed by the tax examiner to determine if the record needs to be deleted. The CDE application includes system protections against users entering duplicate records. If a user attempts to enter a duplicate record, the system will provide a warning message about a duplicate record based on the duplicate fields for each record type. The record the user has entered cannot be saved unless one of the duplicate fields are changed. However, if a user changes one of the duplicate fields, a new record is saved, and this record may now be an erroneous record since the user may have forced the system to save the record instead of the user making an update to a previously saved record. Below are some examples of when a record may need to be deleted from the database: AMENDED RETURNS: If the user does not search for the record and enters the amended record, then the CDE database may allow the record to be saved since key fields may be different and thus, not be considered a duplicate record. To help avoid this situation, a user should always search the system for the original record before entering an amended return. INCORRECT BIN AND ERRONEOUS FORMS ENTERED: A user entered two Form(s) 8609 with the incorrect Building BIN. It was not realized the BIN entered on these 2 records were incorrect, so the user entered 2 additional Form(s) 8609 with the correct BIN. If the user would have realized the incorrect Building BIN was entered, those records could have been updated for the correct Building BIN. Note: To help avoid this situation, the user could have physically marked the paper form to indicate it was entered into the system. The user should have been able to search for the record entered, by Owner TIN or another identifying field, and then updated the fields on the erroneous record. INCORRECT YEAR ASSOCIATED WITH THE FORM 8610 SCHEDULE A, OR FORM 8609 PART 1: If a user selects the incorrect Form 8610 year when creating a Form 8610 Schedule. A, or Form 8609 Part I, the user may not realize this until after the record is created. The user will need to select the correct Form 8610 year and create the record with the correct year. The record associated with the incorrect Form 8610 year should be deleted. Note: To help avoid this situation, the user should be sure to select the correct Form 8610 year. The Form 8610 year will show up on the bottom left-hand footer of the application when creating a record. SENDING DELETION REQUEST TO LIHTC MANAGER: All deletion requests need to be submitted with a secure e-mail sent to LIHTC Manager, along with a scanned copy of the form. The e-mail needs to include a detailed explanation for the record deletion along with the BIN number or EIN. If the manager is not available for a significant number of days, the deletion request may be sent to the LIHTC Program Analyst, as needed.
Use of Digital Communication Tools in Taxpayer and Third-Party Interactions
4.19.12.12 (05-29-2026) Use of Digital Communication Tools in Taxpayer and Third-Party Interactions Taxpayers may submit documentation or information related to compliance inquiries and interactions via IT-approved digital communication tools (e.g., DUT-TPFE, etc.) unless there is a specific prohibition. The use of IT-approved digital communication tools is voluntary for taxpayers. Employees are required to offer and encourage the use of IT-approved digital communication tools to taxpayers and representatives during compliance interactions. Note: Most tools require BEARS entitlements. However, access to specific digital communication tools depends on whether the examiner's business unit or function is approved to utilize the tool. As a result, examiners may not have access to every digital communication tool. For more information on tool availability, visit Emerging Technologies - Home. Taxpayers are not required to submit any documentation or information via IT-approved digital communication tools and may continue to submit information by mail or other allowable means of transmission. Correspondence and documents received via IT-approved digital communication tools generally must be saved to an encrypted folder on the employee's hard drive or OneDrive upon receipt. IRM 4.31.1.4(2), Accessing Electronic Records, and IRM 1.15.6.8(3)(d), Creation, Use and Maintenance of Unstructured Electronic Data, (related to the use of OneDrive for the temporary storage of Federal records). Note: Documents received from the taxpayer and temporarily saved on the employee's hard drive or OneDrive must be associated with the case file when appropriate. See IRM 4.33.1.8, Closing Cases with Electronic Records, for guidance on preserving all appropriate documents in the electronic case file. See IRM 10.10.1.6.1, Accepting Images of Signature and Digital Signatures in Certain Taxpayer Interactions, for guidance on accepting signed documents via digital communication tools.
Document Upload Tool for Taxpayer Facing Employees (DUT-TPFE) in Taxpayer and Third-party Submissions
4.19.12.12.1 (05-29-2026) Document Upload Tool for Taxpayer Facing Employees (DUT-TPFE) in Taxpayer and Third-party Submissions The DUT-TPFE is an IT-approved, one-way (taxpayer to employee), digital communication tool that taxpayers and third parties can use to submit documents and information related to compliance interactions If the taxpayer chooses to transmit documents via DUT-TPFE, employees must generate an access code in DUT-TPFE and provide the taxpayer with the DUT-TPFE URL and access code. See Document Upload Tool for Taxpayer-Facing Employees (DUT-TPFE) FAQs for information on accessing and using DUT-TPFE.
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