- 25.15.14.1 Overview:Purpose of Manual
- 25.15.14.2 Introduction:
- 25.15.14.3 ISTS Command Codes
- 25.15.14.4 Processing Stages
- 25.15.14.5 Validating the Inventory Validation Listing (IVL) - Area Offices (See Exhibit 25.15.14–9)
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This section provides guidance to IRS employees charged with the responsibility of updating and ensuring the Innocent Spouse Tracking System (ISTS) is current and accurate.
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ISTS was established as a means for Area Offices and Centralized Cincinnati Innocent Spouse Operations (CCISO) to provide claim status information to taxpayers and for Headquarters to retrieve program management data. This data is used to generate inventory reports. The information generated from the reports is used to plan, do reviews, and brief management concerning program accomplishments.
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The system was designed as a means to track the claim from receipt to closing.
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An employee with access to the Integrated Data Retrieval System (IDRS) command code (CC) ISTS series can access an IDRS terminal, and retrieve current claim status information.
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If the tracking system is not updated timely, the data retrieved will not reflect the true status of the claim. This is why it is extremely important the system be updated timely and validated for accuracy.
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As a relief case reaches various stages, the employee with control over the request shall immediately update the account on IDRS to reflect the case progress using the command codes. The controls should be updated within three business days of the case reaching the next processing stage. It is imperative the stages are input accurately and timely. See IRM 25.15.14.4 for an explanation of each processing stage. See IRM 25.15.14.5 for Area office information. See IRM 25.15.14.6 for Appeals information. See IRM 25.15.14.7 for CCISO information.
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When ISTS had been opened in error and later deleted, ensure mirroring has been stopped or reversed, as applicable. Close IDRS control base for 9999X, if applicable.
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There are nine command codes for ISTS. TAS employees should refer to IRM 25.15.11.5
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ISTSR - This command code generates an ISTSE screen to allow input to ISTS. See Exhibit 25.15.14-1 for input information.
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ISTSE - This command code is generated by the ISTSR command code. This is where you input the current information or make a correction or delete an entry/entries. See Exhibit 25.15.14-2 for input information.
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ISTSD - This command code is used to delete an entire record from ISTS. Command code ISTSR is not a prerequisite. This command code should be restricted to the Innocent Spouse coordinator use only in the Area Offices and managers for CCISO. See Exhibit 25.15.14-3 for input information.
Note:
Do not use this if you only want to delete a stage entry. If you only want to delete a stage entry, use command code ISTSR, enter a D and the stage number you want to delete.
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ISTSRT - This command code will be used by Customer Service to assist taxpayers requesting information about their claim(s). It shows the current status only. This command code will produce a list of all the modules for which a taxpayer has requested relief. No prerequisite command code is required. See Exhibit 25.15.14-4 for input information.
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ISTSRA — This command code displays all the entries for a database record. This includes all the current stage information, a before look of all the stages that have changed or all the stages deleted and the history entries. No prerequisite command code is required. See Exhibit 25.15.14-5 for input information.
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ISTSRB — This command code displays a module with all its data fields, stages and history comments. The purpose is to give a quick snapshot of the current module data for easy review. No prerequisite command code is required. See Exhibit 25.15.14-6 for input information.
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ISTSRS — This command code is a summary of all the active and/or inactive modules for an account. It also allows the user to select a case to work with, and to identify the Command Code and Definer to be used to do the work. From this screen you will be able to move to any of the other command codes. Below is a table that shows what screen will appear when you input a particular definer. See Exhibit 25.15.14-7 for input information.
If you input Then your screen will change to A ISTSRA B ISTSRB D ISTSD E ISTSE U ISTSDU -
ISTSDU — This command code will restore a module previously deleted. No prerequisite command code is required. This command code should be restricted to the Innocent Spouse coordinator use only in the Area Offices and to managers for CCISO. See Exhibit 25.15.14-8 for input information.
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ISTSEI— This command code is intended to be used only by the Desktop Integration Processing System interface with the ISTS. No prerequisite command code is required. There is no exhibit for this command code.
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There are 33 stages in the tracking system, some are reserved. Below are the stage numbers and their description. See IRM 25.15.14.4.1 below for an explanation of each stage.
Stage Description 01 Receipt of Form 8857 02 Transferred to office # /received from office # 03 Screen/First Read 04 Administrative file requested 05 Assigned 06 Suspense awaiting an action 07 Open case transferred to other function / received from other function # 08 Local Review 09 Quality Review 10 Rework/Reconsideration 11 First/preliminary determination issued 12 Final determination issued 13 Amount allowed in Stage 12 14 Amount disallowed in Stage 12 15 Appeals 16 Appeals determination issued 17 Amount allowed in Stage 16 18 Amount disallowed in Stage 16 19 Tax Court 20 Tax Court decision issued 21 Amount allowed in Stage 20 22 Amount disallowed in Stage 20 23 Small Business/Self-Employed (SB/SE) post assessment transfer to CCISO 24 Reserved as of July 2006 25 Reconsideration of previously issued determination 26 Determination that cannot be processed 27 Case Processing 28 Master File Tax (MFT) Code 31 processing 29 Non-qualified claim 30 Closed claim 31 Letter to requesting spouse (RS) on closed case 32 Claims closed as untimely but letter sent to taxpayer to invite him/her to file a new claim 99 Archived module -
Stage 99 is for Archived modules. Modules are archived after they have been closed on the system for more than two years. Archived modules only show Stages 01, 12, 16, 20, 29, 30, and 99. The other stages are dropped before being archived. When reviewing the archived ISTS you will not see the date of the preliminary determination letter. However, if a Stage 12 is shown you will know a preliminary determination letter was issued (when required) prior to the final determination letter as reflected by Stage 12.
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When cases progress from stage to stage or from office to office, the action must be recorded on ISTS using command code ISTSR. This should be done within 3 processing days of the date the case reached that stage. These stages are required to track and monitor the progress and age of the inventory. It is imperative that the stages are input timely and accurately.
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ISTS should be set up under the primary taxpayer identification number (TIN) where the liability generated, e.g., if there is an account on NMF 20 but the liability generated from MFT 30, the account should be set-up under MFT 30. This will eliminate inconsistencies in the set-up.
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This section explains the definition of each of the ISTS stages.
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A valid Form 8857 has been received. The received date should reflect the earliest IRS received date. The date should agree with the TC 971 AC 065 date. You must enter the RS’s two-digit state abbreviation, the Secondary TIN (without hyphens), Name Control and an "O" if Form 8857 has a revision date prior to 2007 and a " 1" if Form 8857 has a revision date in 2007.
Note:
When Form 8857 has been detached from the Form 1040 and there is no received date on Form 8857, use the TC 150 Julian date of the Form 1040.
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If both taxpayers file a request for relief, the tracking system will keep separate records according to the primary/secondary P/S indicator.
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See Exhibit 25.15.14-9 to determine the three digit Area field. The first digit is the Business Operating Division (BOD): 1 for W/I (Wage & Investment), 2 for SB/SE. The next two digits are the area number.
Example: you have a claim in Arkansas, the BOD is 2 and the area number is 08, so you enter 208 in the area field.
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If this is a second claim filed, enter as claim # 02. An Activity Description is required to explain why the second claim was filed. The acceptable codes and explanation are:
MSC Marital Status Change CD Court decision ARC Reopened claim previously archived or a reconsidered claim PRUN Previously unprocessable PRNQ Previously non-qualified or prior claim was for a different assessment Example:
prior claim was for an underpayment and new claim is for an understatement.
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Prerequisite stage: none
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Form 8857 has been transferred or receipt acknowledged by another office. If Form 8857 has some indication it was detached from Form 1040, research to determine if Form 8857 was received in CCISO or another office. If unsure, research the document locator number (DLN) of the TC 150 to determine which campus processed the original return. Document 6209, chapter four, lists the File Location Codes (FLC) for the DLN. If received from another office you must enter Stage 02 per the instructions below. This transfer stage is usually completed at screening, e.g., research shows an open TC 420.
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The receiving office should acknowledge receipt within three business days by inputting another Stage 02 with the received date and then update to Stage 03.
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Do not use when transferring the case from a group to Technical Services (TS) or Quality Review for review of the case.
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Required entry of the office number under TOAREA or FROMAREA.
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The date for TOAREA is the date the case was transferred. Exception: Desktop Integration (DI) is programmed for 7 days prior to CSC's received date.
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The date for FROMAREA is the date the case was received in that office.
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A Stage 02 with a TOAREA entry changes the controlling Area for that case. The Area number in the TOAREA becomes the controlling Area.
Activity Description is optional, but when entered, must be APPLBXX Both taxpayers appealed. XX is for the Appeals office location number. APPLPXX Primary taxpayer appealed. XX is for the Appeals office location number. APPLSXX Secondary taxpayer appealed. XX is for the Appeals office location number. BKCY Bankruptcy COL Collection COMM Community Property FGY Forgery MISC Miscellaneous OIC Offer in Compromise SELT Select TAS Taxpayer Advocate Service TFRA TEFRA 420 Open Examination -
Prerequisite stage: 01
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Form 8857 needs to be screened. This is prior to requesting the administrative file and contacting the taxpayers for additional information and/or for acknowledgement of claim.
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Activity description SCREEN will automatically generate.
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Prerequisite stage: 01
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The administrative file and returns have been requested from Files.
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Activity description ESTAB will automatically generate.
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Prerequisite stage: 01
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Case has been assigned to a group or an employee.
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Activity description ASSIGN will automatically generate.
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Prerequisite stage: 01
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Case is being held in suspense for reasons beyond the examiner’s control. Do not use if awaiting a reply from the RS or non-requesting spouse (NRS).
Note:
CCISO will use if a case is going to be sent to the Field Office and is awaiting the administrative file or reply from the RS/NRS.
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Enter one of the acceptable activities as listed below.
Activity Description AIMS Waiting AIMS release to mirror AUR Claim has an AUR issue FIELD Building claim to send to field LIT Claim is a litigation case MIRROR Mirror problem PANES Abuse issue OTHER Other, can be used for disaster cases, add history item RESENDLTR Resent a letter WTG1040 Waiting for 1040 to post WTGCRPOST Waiting for credit to post WTGSSNVAL Waiting for SSN to validate -
Prerequisite stage: 01 and 03 or 05
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The transfer or receipt of a case where the RS or NRS has protested the determination or another office has requested the case.
Note:
Do not use when transferring a case from the group to TS or Quality Review.
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Required entry of the office number under TOAREA or FROMAREA
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The date for TOAREA is the date the case was transferred.
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The date for FROMAREA is the date the case was received in that office.
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If a case is going to Appeals, enter one of the activity descriptions listed in the table below in the ACTIVITY field.
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APPLPXX if the primary taxpayer appealed
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APPLSXX if the secondary taxpayer appealed
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APPLBXX if both taxpayers appealed
Note:
XX is for the Appeals office location number.
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A Stage 07 with a TOAREA entry changes the controlling Area for that case. The area number in the TOAREA field becomes the controlling Area.
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Prerequisite stage: 01
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This stage has a dual tracking purpose and should only be used by the Area Offices. The first update is when the case has been sent to local review and the second update is after it has been reviewed by the reviewer.
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When a case is sent to review, the Activity field must have the activity TOREVU. After the reviewer has reviewed the case, they will enter one of the following activities:
APPR Approved RNSF Returned, determination not supported by facts RNSL Returned, determination not supported by law ROTH Returned for other reasons RPRD Returned for account problem resolution MSRT Mis-routed -
Prerequisite stage: 01 and 03 or 05.
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This stage has a dual tracking purpose and should only be used by CCISO. The first update is when the case has been sent to Quality Review and the second update is after it has been reviewed by the reviewer.
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When a case is sent to review, the Activity field must have the activity TOREVU. After the reviewer has reviewed the case, they will enter one of the following activities:
APPR Approved RNSF Returned, determination not supported by facts RNSL Returned, determination not supported by law ROTH Returned for other reasons RPRD Returned for account problem resolution MSRT Mis-routed -
Update ISTS to Stage 30 when case is corrected.
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Prerequisite stage: 01, 03 or 05.
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Case is being reworked or reconsidered.
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Activity description REWORK will automatically generate.
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Prerequisite stage: 01, 03 or 05, 11, 12, 13 or 30. It will also be valid if stage 08 or 09 has Activity RNSF, RNSL, ROTH, or RPRD. This stage is required if stage 08 or 09 has one of these activities.
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Preliminary determination letter has been issued.
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Required entry in the Allowed/Partially Allowed/Disallowed (APD) field is one of the following:
A Allowed in Full D Disallowed in Full P Partially Allowed -
Required entry in Code Section:
6015b IRC 6015(b) 6015c IRC 6015(c) 6015fd IRC 6015(f) understatement/deficiency 6015fo IRC 6015(f) underpayment/original liability 66ceqr IRC 66(c) equitable relief — community property 66cins IRC 66(c) innocent spouse — community property Collection Due Process (CDP) For CCISO use only. Input prior to Stage 07. Do not enter Automated Data Processing (ADP) code, reason code or dollar amounts for Stage 13 and/or 14. Used for partially allowed and disallowed cases only. -
DO NOT use "6015f" when entering the code section unless the taxpayer only requested IRC 6015(f) and you did not consider IRC 6015(b) or IRC 6015(c). It is a given you considered IRC 6015(f) in addition to IRC 6015(b) and IRC 6015(c). Use "6015b" or " 6015c" as appropriate.
Example:
RS is seeking relief from a $1,000 understatement,
$500 is allowed under IRC 6015(b),
$250 is allowed under IRC 6015(f) and
$250 is disallowed under IRC 6015(f),
Enter activity code P6015B, with the appropriate reason code for the partial disallowance under IRC 6015(b) .Note:
The relevant information is why you did not grant full relief.
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If the request for relief is for an understatement with an underpayment and you allow full relief for the understatement but not the underpayment, the code section entered should be "6015f" for the underpayment. This is true even if the understatement is the highest dollar amount. The relevant information is why you did not grant full relief.
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If the request for relief is for an understatement and an underpayment and you allow only partial relief for the understatement and/or the underpayment, the code section will be determined by the highest dollar amount for the disallowed portion. The relevant information is why you did not grant relief.
Example:
RS seeking relief for $300 understatement and $800 underpayment;
$200 relief is allowed for the understatement and $100 allowed for the underpayment.
Enter "P6015(f)" with the reason code full relief was not granted under IRC 6015(f). This is because you have disallowed $700 for the underpayment.
Another example is:
RS seeking relief for $3,000 understatement and $500 underpayment.
$2,800 relief is granted for the understatement and $100 underpayment.
Enter "P6015(f)" because the disallowed $400 for the underpayment is the larger disallowed portion. -
If the request for relief is for an understatement and an underpayment and you disallow or allow both, the code section will be determined by the highest dollar amount for the disallowed or allowed portion.
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Required entry under Reason Code if the APD code isP or D:
A liability attributable to the RS B RS received significant benefit from the unpaid/unreported liability BT at the time the return was signed, the RS had no reason to believe the tax would be paid C Collection Statute Expiration Date (CSED) expired after claim filed DA disqualified assets transferred to avoid paying tax E it is equitable to hold the RS liable FT fraud/fraudulent transfers of assets between the spouses K knowledge of item giving rise to deficiency MS marital status not met for IRC 6015(c) NB no basis in law for a disallowed deduction or credit O other (should only be used with managerial approval) OC offer in compromise was previously accepted for the RS P paid in full after claim was received RB refund barred by IRC RJ res judicata S statute barred for filing Form 8857 T $ threshold not met for IRC 6013(e) only V verification missing -
Prerequisite stage: 01, 03 or 05.
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Final determination has been issued.
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Required entry under ADP:
A Allowed P Partially allowed D Disallowed -
Required entry under Code Section:
6015b IRC 6015(b) 6015c IRC 6015(b) 6015fd IRC 6015(f) understatement/deficiency 6015fo IRC 6015(f) underpayment/original liability 66ceqr IRC 66(c) equitable relief —community property 66cins IRC 66(c) innocent spouse — community property Note:
On disallowed deficiency cases, Do Not use "(f)" when entering the code section. Use "(b)" or "(c)" as appropriate.
Note:
In any other combination of partial allowance/disallowance, the activity code input will be the one which reflects the highest dollar amount allowed. For example, if the total amount of a claim is $1,000 and $500 is allowed under IRC 6015(b), $250 is allowed under IRC 6015(f) and $250 is disallowed, then the activity code input will be "P6015B" , with the appropriate reason code for partial disallowance under (b).
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On disallowed deficiency cases, DO NOT use "6015(f)" when entering the code section. It is a given you considered IRC 6015(f) in addition to IRC 6015(b) and IRC 6015(c). Use "6015(b)" or "6015(c)" as appropriate.
Example:
RS is seeking relief from a $1,000 understatement;
$500 is allowed under IRC 6015(b);
$250 is allowed under IRC 6015(f) and
$250 is disallowed under IRC 6015(f);
Enter activity code "P6015B," with the appropriate reason code for the partial disallowance under 6015(b).
Note:
The relevant information is why you did not grant full relief.
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If the request for relief is for an understatement with an underpayment and you allow full relief for the understatement but not the underpayment, the code section entered should be "6015(f)" for the underpayment. This is true even if the understatement is the highest dollar amount. The relevant information is why you did not grant full relief.
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If the request for relief is for an understatement and an underpayment and you allow only partial relief for the understatement and/or the underpayment, the code section will be determined by the highest dollar amount for the disallowed portion. The relevant information is why you did not grant relief.
Example:
RS seeking relief for $300 understatement and $800 underpayment;
$200 relief is allowed for the understatement and $100 allowed for the underpayment.
Enter "P6015(f)" with the reason code full relief was not granted under IRC 6015(f). This is because you have disallowed $700 for the underpayment.
Another example is:
RS seeking relief for $3,000 understatement and $500 underpayment.
$2,800 relief is granted for the understatement and $100 underpayment.
Enter " P6015(f)" because the disallowed $400 for the underpayment is the larger disallowed portion.
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If you work a RECON and issue letter 4277C enter a new Stage 12 with the applicable code section and reason code with the date the 4277C is issued. This stage should be later than the Stage 25 date.
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Required entries under Reason Code if the ADP code is P or D are listed below:
A liability attributable to the RS B RS received significant benefit from the unpaid/unreported liability BT at the time the return was signed, the RS had no reason to believe the tax would be paid C Collection Statute Expiration Date (CSED) expired after claim filed DA disqualified assets transferred to avoid paying tax E it is equitable to hold the RS liable FT fraud/fraudulent transfers of assets between the spouses K knowledge of item giving rise to deficiency MS marital status not met for IRC 6015(c) NB no basis in law for a disallowed deduction or credit O other (should only be used with managerial approval) OC offer in compromise was previously accepted for the RS P paid in full after claim was received RB refund barred by IRC RJ res judicata S statute barred for filing Form 8857 T $ threshold not met for IRC 6013(e) V verification missing -
Prerequisite Stage: 01, 03, or 05.
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This stage identifies the amount of relief (tax, penalties, and interest) allowed.
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For open AUR or open AIMS cases use the total balance owed shown on CP 2000 or Form 4549 .
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If both an open AUR or open AIMS and the account also has a balance owed due to underpayment use the balance on master file using command code INTST to the Stage 11 date and add the balance owed shown on CP 2000 or Form 4549.
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On a full allowance, the amount is the balance on master file using IDRS CC INTST to the Stage 11 date. If the RS is going to get a refund, add the amount of payment(s)/credit(s) to be refunded to the INTST amount. Place a copy of the INTST print in the case file.
Example:
TXMOD shows
TC 150 230.00
TC 806 52.00
TC 706 100.00
INTST indicates a $113.00 balance due and the TC 706 is to be refunded to the RS. The relief amount allowed is $213 ($113.00 INTST balance, plus the $100.00 to be refunded). -
See IRM 25.15.14.4.1.14 to determine the amount to enter on partials.
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An entry is required for every claim allowed in Stage 12.
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Enter dollars only.
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Prerequisite stage: 01, 03 or 05, and 12.
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This stage identifies the amount of relief (tax, penalties, and interest) disallowed.
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For open AUR or open AIMS cases use the total balance owed shown on CP 2000 or Form 4549 .
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If both an open AUR or open AIMS and the account also has a balance owed due to underpayment use the balance on master file using command code INTST to the Stage 11 date and add the balance owed shown on CP 2000 or Form 4549.
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Do not include any portion the RS did not seek relief from.
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Use IDRS CC INTST to the Stage 11 date. Place a copy of the INTST print in the case file.
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Do not include any payment(s) made by the RS that RS specifically states that he or she doesn't want back. See the situations listed in the table below to determine the amount disallowed.
Full Disallowance Balance Due Balance on the master file account using IDRS CC INTST plus any payments/credits (TC 706, 670 & 640) clearly made by the RS not refunded. Full Paid when claim received Payments/credits (TC 706, 670 & 640) clearly made by the RS not refunded. Full Paid by NRS after claim received Balance due at the time claim filed plus any payment clearly made by the RS before the received date of the claim. CSED expired and TC 608 posted prior to receipt of claim Payments/credits (TC 706, 670 & 640) clearly made by the RS not refunded. CSED expired and TC 608 posted after receipt of claim Use the TC 608 amount plus any payments/credits (TC 706, 670 & 640) clearly made by the RS not refunded. Partial Disallowance For open AUR or open AIMS cases use the total balance owed shown on the CP 2000 or Form 4549. If both an open AUR or open AIMS and the account has a balance owed because of an underpayment use the balance on master file using IDRS CC INTST to the Stage 11 date and add the balance owed shown on the CP 2000 or Form 4549. Then follow the instructions below. The amount is the balance on master file account using IDRS CC INTST to the Stage 11 date multiplied by disallowed percentage per allocation worksheet. Add to that amount any payments/credits clearly made by RS not refunded, unless the RS specifically states he or she doesn't want the payment(s) back. Balance Due -
Use IDRS CC INTST to the Stage 11 date multiplied by disallowed percentage. To determine the percentage, take each taxpayer’s tax and divide by the total tax.
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Add to that amount any payments/credits clearly made by the RS not refunded.
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Use the INTST amount and the disallowed percentage to compute the allowed and disallowed amounts.
Example:
Allocation shows NRS liable for 65% (after Withholding (W/H), Earned Income Tax Credit (EITC), etc.) and the joint liability is 35%. INTST is $32,610.00. The allowed amount is $21,196.00 ($32,610.00 x 65%). The disallowed amount is $11,414.00 ($32,610.00 x 35%).
Note:
The allocation sheet must contain all tax TC 806, EITC, etc. included even if the taxpayer is not being relieved of part of it.
Full Paid The disallowed amount is payments/credits clearly made by the RS not refunded. Partial due to refund barred The disallowed amount is the amount of barred payments/credits. The allowed amount is the INTST amount plus any payments being refunded. Example:
TXMOD shows
TC 290 $2,500.00
TC 806 $1,093.00
TC 706 $ 325.00 (Refund barred).
The INTST amount shows $1,453.00. The allowed amount is $1,453.00 and the disallowed amount is $325.00.Partial due to recaptured EITC The disallowed amount is the amount of EITC that remains a joint liability. The allowed amount is the INTST plus any payments being refunded minus EITC. Example:
TXMOD shows
TC 290 $1,500.00
TC 765 $1,480.00
INTST shows $3,125.00
The allowed amount is $1,645.00 ($3,125.00 - $1,480.00). The disallowed amount is $1,480.00. -
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An entry is required for every claim disallowed in Stage 12. If it is a partial, the amount allowed must be entered in Stage 13 and the disallowed amount entered in Stage 14.
Note:
You can have an amount of zero on partials.
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Enter dollars only.
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Prerequisite stage: 01, 03 or 05 and 11/12.
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Case has been received in the Appeals Office. This is input after Stage 07 FROMAREA has been entered. The activity date should equal the ACDS received date and should not be earlier than the date in Stage 07.
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Prerequisite stage: 01.
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Appeals has issued a determination letter or signed Form 870–IS on behalf of the Commissioner.
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Activity entries are the same requirements as Stage 12. The activity date should equal the date the determination letter was issued or the date the Form 870–IS was signed on behalf of the Commissioner and the activity entry is the same requirement as Stage 12.
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Prerequisite stage: 01 and 15.
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This identifies the amount of relief (tax, penalties and interest) allowed for appealed cases. This should include accruals to the Stage 11 date.
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An entry is required for every claim allowed in Stage 16.
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Enter dollars only.
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Prerequisite stage: 01, 03 or 05, and 16.
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This identifies the amount of relief (tax, penalties, and interest) disallowed for appealed cases. This should include accruals to the Stage 11 date.
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An entry is required for every claim disallowed in Stage 16.
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Enter dollars only.
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Prerequisite stage: 01, 03 or 05, and 16.
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The RS has petitioned Tax Court.
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Activity description TAXCOURT will automatically generate.
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Prerequisite stage: 01, 12, 15, and 16.
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Tax Court has entered a decision. The activity date should equal the date the decision was entered and the activity entry is the same requirements as Stage 12.
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Prerequisite stage: 01, 12, 15, 16, and 17.
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This identifies the amount of relief (tax, penalties and interest) allowed for tax court cases. This should include accruals to the Stage 11 date .
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Enter dollars only.
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An entry is required for every claim allowed in Stage 20.
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Prerequisite stage: 01, 12, 14, or 20.
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This identifies the amount of relief (tax, penalties and interest) disallowed for tax court cases. This should include accruals to the Stage 11 date.
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Enter dollars only.
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An entry is required for every claim disallowed in Stage 20.
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Prerequisite stage: 01, 12, 14, or 20.
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This stage will be used when SB/SE transfers a post assessment case to CCISO for account processing on allowed and partially allowed cases. See IRM 25.15.10.5 for additional instructions.
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Prerequisite stage: 01, 03 or 05, 11, or 12.
Note:
Do not input this stage until Form 3210 has been prepared and case ready to ship.
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Prior to July 2006 this stage was used to update an AUR claim once the 90–day period for the Innocent Spouse issue had expired and the assessment had not been made. Effective July 2006, this is now a reserved stage.
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This stage should be used only when it is necessary to re-issue a Preliminary or Final Determination or issue a Reconsideration letter. The activity must be one of the codes listed below:
APNC All 6015 provisions not considered IRSE IRS Error ORT Original return not processed when claims received ADDI Additional information Prerequisite stage: 11, 12, or 29.
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This stage should be used when situations occur that prevent the processing of an account from MFT 30 to MFT 31, e.g., when NRS is in Chapter 13 bankruptcy making monthly payments or when the collection statute is too short for a transfer to MFT 31. It should also be used for claims when either taxpayer is overseas preventing the claim to be completed (Combat Zone) or if either taxpayer is being investigated by Criminal Investigation.
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Acceptable activity codes are:
BKCY Bankruptcy CSED Collection Statute expires in less than 10 months CINV Criminal Investigation COMB Combat Zone LEVY Levy pending for NRS -
Prerequisite stage: 01, 03, 12, 16, or 20.
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This stage will be used while the case is in the Processing unit, during the time period while they are determining the amounts and codes for Form 12810. Stage date may be entered. If it is, it must not be prior to the previous stage. If it is not entered, Today’s Date will be assumed. Only one Stage 27 is permitted.
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Prerequisite stage: 01, 12, 14, or 15.
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This stage will be used when waiting for the transfer process to MFT 31. Stage date may be entered. If it is, it must not be prior to the previous stage. If it is not, today’s date will be assumed. Only one Stage 28 is permitted.
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Prerequisite stage: 01, 03 or 05,12, 23, or 27.
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Form 8857 is nonqualifying. Stage 30 should be input immediately following Stage 29.
Example:
If case has account problems and the case needs to be updated to Stage 27.
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Prerequisite stage: 01, 03 or 05.
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The acceptable activities are:
ACTP Account problems needs correction, no innocent spouse issue BSOS Barred Statute One Signature CSED Collection Statute Date Expired FP Full paid and the taxpayer did not request a refund FS Filing Status INJS Injured Spouse Claim INVA Invalid Joint Election NORF No return filed for the year T/P is requesting relief OT Other Tax PAND Pre-assessment no deficiency SREQ 2nd request filed for a period and original request is in Stage 99 UNPR Unprocessable Form 8857 WITH Withdrawal - can’t be used after a preliminary determination letter has been issued -
Prerequisite stage: 01
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Case is closed.
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CCISO only – Enter total time spent on case using Time on Case label. This must include the time from First Read to Closing, not just the time spent to make a determination .
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The acceptable activities are:
ACCTCORR Account Correction required and appropriate action or referral completed. NOACCTP No Account Problem. NOREPLY No reply from taxpayer for requested information. -
Prerequisite stage: 01, 03 or 05, 12, and the appropriate relief allowed or disallowed stage. Otherwise 01 and 29 if the case is non-qualifying.
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This stage should only be used when letters are sent to RS whose claim was closed. No activity code will generate.
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Prerequisite stage: 01 and 30.
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This stage is being used for claims that were closed with the activity "S" for statute. Because of McGee v. Commissioner, letters were sent to taxpayers whose claim was closed as being untimely. When the letter was issued, ISTS was updated to Stage 32 to indicate an invitation was sent to the taxpayer to file a second claim.
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Prerequisite stage: 30
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This stage is used for archived modules. Once a year modules will be archived and those that have been in Stage 30 for over two years will be archived. Modules can be accessed in this stage but no changes can be made in this stage. Archived modules only show Stages 01, 12, 16, 20, 29, 30, and 99. The other stages are dropped before being archived. When reviewing the archived ISTS you will not see the date of the preliminary determination letter. However, if a Stage 12 is shown you will know a preliminary determination letter (when required) was issued prior to the final determination letter as reflected by Stage 12.
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When an inventory listing is received and you must validate, See IRM 25.15.14.5.1. through 5.4 for procedures. See Exhibit 25.15.14-13. for the ISTS Stage to AIMS Status Listing.
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One of the best tools available to Area Coordinators is the Examination Records Control System (ERCS). This system controls all records put on AIMS. It tracks the case from start-to-finish and provides a history of processing of the case. It also gives the date changes of the AIMS statuses, assigned group, etc. The following provides an explanation of the items listed on ECRS screens shown in Exhibit 25.15.14-10 ( See Exhibit 25.15.14-10.):
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TIN - the TIN used to establish the tax year. Primary TIN on the account
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Master File Tax Account code (MFT)
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Tax period
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Primary Bus - is the BOD code
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Employee ID Number - is the number of the employee assigned to the claim. ERCS will also tell you the name of the employee. This information can be accessed through a different screen
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Source Code - Source code 73 indicates a taxpayer request. Source code 65 is used for collection referrals. These are the only two source codes used for Innocent Spouse Claims
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Status Code - current AIMS status
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Prior Status Code - is the prior AIMS status
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Project code - should be 0014 for innocent spouse
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Tracking Code - used by some offices in conjunction with their Innocent Spouse claims
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Statute - generally the Innocent Spouse claims will have AA as the statute date unless it is an open examination. Some offices will list an open statute for the current years
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AIMS Creation - this date indicates when the office established the case on AIMS
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Status - this is the date AIMS was updated to the status listed in Number 7
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Notification - date of the Final Determination Letter or Statutory Notice of Deficiency. This date should correspond with the stage 12 date on ISTS
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Type Suspense - check with the AIMS coordinator in your Area for a list of definitions
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Action Date- date used by all functions, e.g. if a claim is in 90–day AIMS status 24, this date is the default date from 90 day Statutory Notice of Deficiency
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Date in ESP - date Case Processing received the claim
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ESP Empl ID - this is the employee number of the tax examiner (TE) assigned to the claim. Contact your Case Processing chief for this list
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Date in Review - this is the date that the case was received in Review. It should be close to the ISTS stage 08 date
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Review Type - Your local AIMS coordinator will have a complete list of review types for your Area
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The ERCS Project Code 0014 Report is another resource tool to aid in the validation process. It is important this report be run on the SETTS cutoff date since this is the date the ISTS report is also run. See Exhibit 25.15.14-11; it is an excerpt of a report. Its format is similar to the ISTS Form 5130. It lists the AIMS status first then the TIN in numerical order. Next is the name control, tax period, and status date. The date the case went in that AIMS status. For those Offices using tracking codes, it is listed next followed by the group organizational code. The statute date is listed and then the AIMS creation date.
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The last resource tool is ISTS. If a case is not on ERCS, check the tracking system to determine the case’s location.
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These resource tools should be all you need to validate the ISTS report.
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Claims in ISTS Stages 01 through 04 may not be on AIMS but if they are, they should have an AIMS Status of 08.
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If the AIMS status is higher than 08, ISTS will need to be updated to reflect the correct stage.
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If the claim has not yet been established on AIMS, check the unit where the cases are built to ensure the claim is there and its current status is accurate before making any necessary corrections.
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If the case building unit does not have the case and the ISTS Stage is 02, check the date the module was input into Stage 02. If this date is recent, it is possible the case is still in transit.
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If over two weeks have passed, check with your mail clerk to see if there is a signed Form 3210, Document Transmittal, for the case and if not, contact the sending office to see if they have an acknowledged Form 3210.
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You may also need to check ISTS to determine if another office has acknowledged receipt of the case. Sometimes the ISTS will get updated to one office but the case was mailed to another.
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If the ISTS IVL shows a case in Stage 03 but as of the date of the report, the ESTAB has been ordered, correct ISTS to Stage 04.
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It is also possible that AIMS will show a Status of 10 or 12 and the ISTS will show Stage 03 or 04. This means when the case was sent to the group, ISTS was not updated. AIMS/ERCS will give you the date of transfer in order to update ISTS.
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Claims in ISTS Stage 05 should have an AIMS status of 10 or 12.
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If the status is not 10 or 12, determine why and update ISTS if necessary.
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If the groups do not update ISTS to Stage 08 when they send the case for review, it is possible to have a case in AIMS Status 20 or 21 and the ISTS show Stage 05 until review updates ISTS to Stage 08 and the AIMS Status to 20.
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The clerk in review should ensure ISTS is updated when cases are received. If the Coordinator does not have the case, check with the clerk to see when it was received and update ISTS if necessary.
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A starting point for validating Stage 05 should be the Project Code 0014 Report (0014) or ERCS. If ERCS is used, enter each TIN listed on the report in Stage 05 to see if ERCS has it in Status 10 or 12. The Project 014 report, lists AIMS statuses, therefore by comparing AIMS Statuses 10 & 12 to the ISTS Inventory Report Stage 05, one can identify those claims needing to be updated. Since the 014 Report is listed in TIN order, this makes the claims easy to locate.
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Claims in ISTS Stage 06 could have an AIMS status of 30, 32, 36 or 38. These are suspense statuses. Status 30 is Form 1254, Status 32 is General Fraud, Status 36 is Grand Jury and Status 38 is all others, including bankruptcy.
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These suspended cases could be with the innocent spouse coordinator or the program coordinator for that AIMS status, depending on office policy.
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If you have a case in ISTS Stage 06, determine the AIMS status and check with the coordinator of that program to see if the case has been resolved or it is still being suspended. If the case has been resolved, the ISTS will need to be updated to reflect the correct stage.
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Use ERCS to validate. Based on the AIMS status, it could be 31, 32, 36, or 39, the appropriate coordinator should be contacted to verify the ERCS status and the ISTS stage agree.
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Claims in ISTS Stage 07 typically will have an AIMS status of 80. This stage is used to transfer the database to Appeals or another office that has requested the case.
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This stage is also a clearing stage similar to Stage 02. The claim is sent to Appeals in Stage 07 and they acknowledge receipt with another Stage 07, then update ISTS to Stage 15.
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If the case is in AIMS Status 81 or 90, contact Appeals and have them update ISTS to reflect the correct stage.
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This stage is an Appeals stage and Appeals is responsible for validating. See IRM 25.15.14.6 for Appeals information.
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Claims in ISTS Stage 08 will have an AIMS status of 20 or 21 and should be in Technical Support. Most Technical Support groups can provide a report of their AIMS Status 20 and 21 inventory.
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Cases should remain in ISTS Stage 08 until the review is complete. Once the review is complete, ISTS will be updated in Stage 08 to indicate the outcome of the review and then to Stage 11 or 12 if a determination letter is mailed.
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If the groups do not update ISTS to Stage 08 when they send the case to review, it is possible to have a case in AIMS Status 20 or 21 and ISTS Stage 05 until review updates ISTS to Stage 08.
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If AIMS shows a higher status than 20, and ISTS stills shows Stage 08, determine where the case is located and update ISTS to reflect the status of the case.
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If the AIMS status is 22 or 23, used by some offices to identify their 30 day, a preliminary letter should have been sent and the case should be in 30 day suspense in review and ISTS should be updated to reflect Stage 11.
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If the AIMS status is higher than 51, it indicates a Final Determination letter (FDL) was issued and the case was closed to Case Processing. Check with the clerk for the Form 3210 to verify the case was sent to Case Processing. Examination Records Control System (ERCS) will have the date Case Processing received the case and identify the Tax Examiner (TE) assigned the case. ERCS will also have the notification date. These dates will allow you to update ISTS for Stage 12 then 27.
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The Area Offices should not use this stage. Centralized Innocent Spouse Case Review (CISCR) is responsible for validating this stage. See IRM 25.15.14.7 for CCISO information.
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Claims in ISTS Stage 10 will have an AIMS Status of 12. This stage is used when a case has been reviewed by local review and determined to need additional work.
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If AIMS shows Status 12 but ISTS shows Stage 08, check ERCS for the transfer date to the group and update ISTS accordingly.
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If AIMS shows Status 20 but ISTS shows Stage 10, check with the clerk to see if there is a Form 3210 returning the case back to the group. If this has happened, the clerk should update ERCS to the group and AIMS to Status 12.
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Claims in ISTS Stage 11 could have an AIMS status of 20 or 22 depending on how the Area handles their 30 day cases. This stage is input when a preliminary letter has been issued requiring the case to be suspensed for 30 days. Nonqualifying cases will be suspensed as well.
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If a case is in AIMS Status 20 or 22 but still in ISTS Stage 08, locate the case in review to determine the date of the letter and then update ISTS accordingly.
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If the case is in ISTS Stage 11 but in a status higher than 20, 22, or 23, check ERCS for the notification date in order to update ISTS.
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If the case is in AIMS Status 30, 32, 36, or 38, check with that program coordinator to see if they have the case and if so, ISTS will need to be updated to Stage 06 as of the date the Form 3210 was issued. This should be the date ERCS was updated to that status.
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If the claim is an open examination case, ISTS Stage 11 should be input the same date the Revenue Agent Report (RAR) is issued which includes the determination in the other information section. The AIMS status should be 12 in this instance. If the case defaults with no response to a 30 day letter in the group, it should be sent to 90 day and ISTS will be updated to Stage 12 upon issuance of the Statutory Notice of Deficiency (SND). If the taxpayers agree to the RAR, update ISTS to Stage 12 as of the date the RAR was signed. When the case is ready to be closed, update AIMS to Status 21, send the case to TS. They will send to Case Processing and update ISTS to Stage 27.
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If the Areas use AIMS status 22 or 23, then the 014 Report could be tied to the ISTS report using ERCS as a back up if something does not match.