Settlement Notices inform the taxpayer of payments due, interest and/or penalties due, math errors, or adjustments made to the taxpayer’s account. There are three types of settlement notices:

Information (Associated) Notices generate when information needs to be sent to the taxpayer. The information can cover many areas, such as Earned Income Credit (EIC), credit elects, offsets of money to other balance due tax modules, or information about the taxpayer’s Taxpayer Identification Number (TIN).

IDRS Notices typically generate 5 cycles after a settlement notice if the account remains in balance due status. These notices are sometimes referred to as Collection or Tax Delinquent Account (TDA) Notices.

Submission Processing Campus Notices generate to notify the Submission Processing Campus or Area Office of a condition that needs further action to bring the taxpayer’s Master File account into current status. This category includes Refund, Refund E, and Refund S Transcripts, CP 36, etc.

Viewed on-line as the first page of each NRPS Package, this page contains the following information:

See Exhibit 3.14.1-31.

Depending on the CP selected, it may either be a duplicate of the "live" notice, or a shortened version of it. The shortened version, displays only the notice record information, such as dollar amounts and TPNC numbers, as opposed to the Taxpayer Bill of Rights language and TPNC explanations.

For CP notices, the visual representation (or "Quick Print" ) of the notice is created from its own separate file, rather than from the Notice Edit File, as in the past. This change in source data means that occasional abnormalities appearing on the "Quick Print" (which is in the old Legacy notice format), are NOT part of the Notice Edit File. Therefore, those abnormalities will not be on the printed notice.

Displays transcribed return fields for selected settlement notices and Refund E transcripts. This is also referred to as the Return Transaction File (RTF). See Exhibit 3.14.1-30.

Displays the entity information for the notice TIN, as well as for the secondary TIN, if applicable (optional).

Displays the tax module transactions for the notice TIN, as well as for the secondary TIN, if applicable (optional).

Monitor the TPNC Trend List to assist in estimating notice fallout, and to provide feedback to ERS.

Review the NRPS Notice Disposition Reports to determine TPNC error rates.

Review the latest NRP 98/ NRP 99 Reports for:

Effective in 2005, requests for notices by TIN, will also include an optional entry of tax period. These requests will remain until the specific request is met or the user removes the request from the LCF.

List the changes to be made to the LCF.

Use CC NRP97 to input the changes to the LCF. See IRM 2.4.45 for terminal input requirements of CC NRP97.

When inputting LCF request to select notices by CP, sites can now indicate if the selection should bypass notices generated from ELF returns.

Review the NRP 98 report to check input data for accuracy. Correct any errors.

The NRP 6130 report generates each week. This report lists every notice and transcript selected for review.

The OLNR system allows the user to convert from one CP notice type to another, when adjustments to the account result in the need for a different type of notice.

Virtually all appropriate field values from the original notice will be transferred into the conversion notice, where they can then be adjusted by the examiner, if necessary.

If any adjustment actions will be reflected in the converted notice, take appropriate action to prevent unnecessary adjustment notices.

When converting to or from a Non-Compute notice ( CP 51), special instructions apply with respect to the Pay-By Date field of OLNR. Follow instructions in the Reviewing Non–Compute Notices section. See IRM 3.14.1.6.16.

Description of the Notice Codes

The table explains the result of selecting each disposition code. The Notice Disposition program includes the "I" for refund intercepts so that this data can be reflected in the Notice Disposition report.

Every effort must be made to review, correct, and mail notices in the current cycle to minimize negative impact to the taxpayer.

In situations where a review of a specific notice cannot be completed before the end of the cycle, the notice should be held, and then released when the review can be completed.

Input disposition code "H" to hold the notice for processing in a subsequent cycle. Other examples that may cause the review of the notice to be delayed include:

Notices should be worked as soon as the requested information or document(s) are received to minimize any further delay to the taxpayer.

An OLNR "Held Notices Report" will be produced weekly to track the number of notices (by CP number) held beyond the cycle.

If a Balance Due notice is held beyond cycle, change the pay-by date to be consistent with the pay-by date of balance due notices generating in the cycle of the held notice's release. Recalculate the interest, penalties, and any other applicable fields.

In the event that a notice fails a validity check (OLNR Retypes), the notice is dropped from the back-end mainframe notice print processing and placed in the Notice Error File.

The Notice Error File will contain information needed by Notice Review to manually retype the notice.

The information will include:

The reports are sent via File Transfer Protocol (FTP) to the server and can be viewed and/or printed using EONS.

The first line of the report contains the batch number, which should be used to locate the quick print of the original notice.

Recreate the notice, by using the quick print and the retype data from the reports. Use the TC 971 A/C 264 method described in the Notice Recreate Transcripts (CP 67) section. See IRM 3.14.1.4.3.4. The only notice that should be retyped using the KC Paradox Program is the CP 62, as it is still under development for OLNR retype functionality.

Use normal procedures for reviewing the notice. Begin the review as soon as possible to minimize any further delay to the taxpayer.

Perform manual intervention on selected and non-selected notices.

Selected notices

Non-selected notices
Manual Intervention Notices will appear in batches in the 9000 (9xxx) series. For notices that are not selectable, a disposition code of "E" should be applied to the notice, if changes are made to any of the entity screens. Entity fields will be updated during the print process.

When another area requests that a NRPS-selected notice be stopped, Notice Review should query on the OLNR Web Page, using search disposition, to find the associated batch number. Only OLNR users with "Poweruser" , "QAreviewer" , "Reports" or "OLNRSA" permissions can access the OLNR Web Page.

An OLNR system user with either "Poweruser" , "OLNRSA" or "QAReviewer" permissions will open the batch and enter the appropriate disposition code.

The OLNR system cannot stop a non-select notice(s).

When researching a taxpayer's account that cannot be resolved during the review process, prepare adequate case documentation to allow resolution as quickly as possible upon completion of research.

Since the NRPS package only stays available on Control D/PC for 30 days, documentation should include any data from NRPS that will not be available on IDRS. Establish a control base on IDRS immediately and if necessary, input CC STAUP.

Input disposition code "P" if the notice can be printed while the research is being completed.

Input disposition code "H" if the notice cannot be printed until the research is completed.

There are some situations which would require a notice to be built or recreated:

When a notice record contains bad data as described in Item (1) above, the notice record gets "dumped" , and the Headquarters Analyst contacts the affected site to have the notice recreated. This used to be accomplished with the Paradox Retype system.

Use the following method to generate the CP 67 Notice Recreate Transcript.

When the TC971 A/C 264 posts, a CP 067 Notice Recreate Transcript will generate.

All CP 67 transcripts appear in the batch numbered with all zeroes (000000) for any given cycle, and are considered Manual Intervention cases.

The CP 067 must be converted to another notice prior to cycle closeout. If the transcript is not converted to a notice prior to cycle closeout, the opportunity is lost and another TC971 A/C 264 must be input to create another CP 067.

Create the new notice by selecting the "R" disposition, and when the Entity data appears on OLNR, use the "Change" button feature for Notice Type, to change the CP 67 to the desired CP.

Be careful to include all necessary items, such as TPNC(s), Label(s), Pay-by date, etc. Double check the Entity tab information for accuracy.

Document Charge-outs and a Batch Return Request List generate weekly. Note the following:

Route the NRPS batch sheets that do not need documents directly to the tax examiners.

Associate all necessary documents (adjustment documents and tax returns) with each batch before releasing to the tax examiners.

Error Resolution System (ERS) may request the Notice Review Function to select and correct a specific notice:

The Clerical Support staff must distribute the work in this order:

Utilize Command Code (CC) NOREF to stop/delete the refund.

Utilize the Holds Automated Listing (HAL) for those requests received after the CC NOREF cutoff.

For those refunds scheduled to be direct deposited, use CC NOREF with definer "E" . For additional instructions, See IRM 3.14.1.5.4.3.

Input refund intercept requests (using CC NOREF) no later than 10:00 a.m. (Central Time) on Wednesday.

Input HAL requests as they are received, but ensure the transmission of HAL to FMS occurs no later than 10:00 a.m. (Central Time) on Thursday. Requests from other functional areas must be received prior to the Thursday deadline for the current cycle.

Follow these procedures to ensure consistency across all Campuses. Secure the below information (via facsimile, form, or telephone) from the requester for a HAL delete:

Any notice received in the clerical unit for correction should be retyped and mailed by the Friday before the notice date.

Work 100% of the Manual Intervention notices (assigned to the Clerical Support Staff), using OLNR, prior to the cycle closeout.

Manual Intervention (MI) notices will be contained in OLNR mainly under batch numbers in the 9000-series (9xxx).

Notices received after the notice date should be corrected as they are received. These include:

With the delivery of the OLNR Retype Enhancement, the need to route notices back to the Notice Review Function is eliminated. Notices that require printing and mailing will generate and be mailed from one of the Correspondence Production Services (CPS) sites.

Do not mail notices with a Blind Trust code to the taxpayer. Send them only to the taxpayer’s representative.

Review notices to ensure representative’s address. If necessary, correct the address.

This code indicates that the ZIP code (00501, 05501, 19255, 31101, 37501, 45999, 64999, 73301, 84201, and 93888) on the notice matches that of a Submission Processing Campus. Correct these notices.

In most cases, Adjustment notices will have a DLN Doc Code of "54" or "47" . If the DLN has a different Doc Code, the notice will appear on the Manual Intervention List with Code "05" .

Assign these notices to a tax examiner for review.

If the sum of the payments shown on an ES Discrepancy notice does not match the Total ES Payment amount on the notice, the notice will appear on the Manual Intervention List with Code "06" .

Retype the notice to show the correct payments and Total ES Payment amount. Add any missing original payments that correspond to the dishonored check.

Use CC NOREF to input all refund intercept requests. See Figure 3.14.1-2. The transfer of CC NOREF files to the Financial Management Service (FMS) has been automated. This method allows for direct transfer to FMS after creation on the Unisys systems at ECC.

The input deadline for CC NOREF is Wednesday by 10:00 a.m. (Central Time). CC NOREF is the preferred method for deleting a refund, so Campuses should work to meet this deadline.

The following is a summary of CC NOREF used in Notice Review:

CC NOREF automatically creates a control base in the format, "PPyyyyccRC." See below:

After CC NOREF is input and if no adjustments are pending, take the following action:

Use the HAL system when a refund must be deleted, and the deadline for input of CC NOREF has passed. Use of HAL requires FMS to physically locate and retrieve the refund check. Therefore, attempt to meet the CC NOREF deadline.

The input deadline for HAL is Thursday, 10:00 a.m. (Central Time).

Before requesting the HAL, research CC IMFOLT, CC INOLES, and INOLEX, for TOP offset. Refer to the Treasury Offset Program (TOP) section. See IRM 3.14.1.6.4.3.

Verify the refund was not issued via direct deposit.

Use the Refund Schedule Number (RSN) to determine what SP Campus to contact to have a refund deleted using HAL. The RSN is a 14–character field that is located directly below the TC846 on TXMOD. The 8th and 9th characters of the RSN identify the SP campus where the refund is being issued. The format for RSN will be displayed as "YYYYJJJSCXAAAA" . The RSN consist of the following elements:

Create a control base, as HAL does not generate it automatically on a HAL Refund Deletion case.

If the taxpayer is expecting a refund, and will still receive one after the account is adjusted, send a refund delay letter Letter 707–C. When using HAL, the Refund Delay letter must be input manually using CC LETER or the Correspondex system, since HAL does not interface with these systems.

FMS provides a listing of refund cancellations (refund deletions) that identifies which refunds were canceled and which ones were missed.

Once HAL is input, it may take up to 6 weeks for the TC841 to post. For more information and instructions on inputting HAL, see IRM 21.4.1, Refund Inquiries.

Instead of having a refund mailed, many taxpayers request that their refund be deposited into a checking or savings account via Electronic Funds Transfer (EFT). Refunds that are electronically deposited are available approximately one week earlier than a paper check would be mailed. Often, this expeditious process minimizes the opportunity to delete a refund, if needed.

Effective in 2007, taxpayers can now have their direct deposit refunds split between multiple accounts, by attaching a Form 8888 to their return.

There are five ways to identify Direct Deposit Refunds:

To delete/stop a direct deposit refund, CC NOREF with definer "E" is required. This must be input prior to the return posting, and therefore, opportunities for Notice Review to stop a Direct Deposit refund are rare. Typically, Criminal Investigation (CI) is a function that uses CC NOREF with Definer "E" . If unable to stop the refund, see IRM 21.4.5, Erroneous Refunds.

Direct deposit refunds must be stopped no later than the Friday, one week before the scheduled date of the direct deposit. The actual scheduled date of the direct deposit is 10 days prior to the TC846 as shown on IDRS.

For more information on direct deposit refunds, see IRM 21.4.1.4.10, Refund Intercepts.

When taxpayers elect to split their direct deposit refunds into multiple accounts, they must attach Form 8888 to their return. The form will contain all the routing transit numbers (RTN) and bank account numbers necessary for the direct deposit. The percentage of the refund split is at the taxpayer's discretion.

A refund may be split among no more than three accounts. Each honored split refund request will reflect separate TC846s on CC TXMOD.

In CC IMFOBT, however, each account's information will be present.

If any issue arises from the accuracy of the RTN or bank account numbers, the refund will default to a paper check, and a CP 53 will be issued to the taxpayer.

If a refund is reduced during processing, direct deposits from the Form 8888 will still be honored, applying credit to each bank account in a 1st-2nd-3rd account priority, as credit is available.

A paragraph will automatically be inserted into the notice text to notify the taxpayer if changes were made to the direct deposit amounts. A split refund table will also accompany the text, and will show how much was requested to go into each account (taken from Form 8888), and how much was actually applied.

A Direct Deposit tab will appear on OLNR retype screens for all notices upon which a Form 8888 was attached to the return. This data will rarely be altered, but is available in the event of a notice conversion.

FMS provides a list of the refunds that were not stopped.

Input needed corrections (HAL system), as necessary, when the refund is local.

Use CC ACTON to update the control base to reflect an activity of "RM" , to indicate on IDRS that the refund was missed.

See IRM 21.4.5, Erroneous Refunds, for instructions on handling those refunds not stopped by FMS.