This section focuses on these operations in the Submission Processing Centers:

Effective October 1, 2008, all Submission Processing File Functions operations revert to IRS handling and control from the service provider, IAP Worldwide Services, Incorporated.

The general administrative rules for the File Functions cover these topics:

The table below contains the definitions for the terms used in this manual.

The following are the files IDRS request codes:

Cycle Control Unit The prescribed cycle for retention of returns must not be more than one week from the cut-off day for raw data shipment to Enterprise Computing Center-Martinsburg (ECC-MTB). Work source document association within 3 days (72 hours) of receipt of the documents to be associated. During peak periods, this may be extended to 4 days.

Sort and Sequence Unit - Work requests and re-files within 3 days (72 hours). During peak periods this may be extended to 4 days.

Document Retention Unit Pulls - Pull returns within 1 day (24 hours). During peak periods this may be extended 2 days (48 hours).

Document Retention Unit Re-files:

If the original blocks to which the documents belong have been retired, retain the documents in the SPC temporarily so that they are available for requests generated by ECC-MTB output. Flag re-input documents when pulled so that they are not automatically sent to the FRC for filing.

The Correspondence Imaging System (CIS) is a system that allows for the scanning of Form 1040X, internal transcripts, notices and correspondence for the Accounts Management Function.

The Files Function will pull, complete document preparation (refers to those set of tasks that are required to prepare documents for imaging into a production scanner) for scanning, scan and re-file returns and/or documents requested by the Accounts Management Adjustments Function. The File Functions will also provide a print/paper copy of CIS cases for non-CIS users.

Sorting/Preparing Documents for Scanning - Before scanning, sort documents (including Forms 4251 (received with or without a return), CP notices, etc.) by document type and category code.

After sorting is completed, prepare documents for scanning by following these guidelines:

When preparing the work for scanning, position the envelope to avoid scanner jams using the following guidelines:

Accessing CIS and Printing a Case for Non-CIS Users- To fill document requests (Form 4251) initiated by non-CIS users (other areas outside of the Adjustment Function) requires File Function personnel to access the CIS application. Document request (Form 4251) requiring a print of the return will indicate "CIS PRINT REQUEST" immediately below the DLN. After locating the case on the CIS workstation, print the case and route to the requester. The printed case consists of the Case Page, Case Notes, Images of the Document, "Request Completed Screen" and copies of any "Linked" cases.

For more information on CIS, see the CIS web page at: http://apss.web.irs.gov/projects/imaging/cis.htm.

Process undeliverable notices within 5 days of receipt in the File Functions.

Compare the address on the notice with the address on the tax return.

If the return is charged-out (even to a duplicate filing condition), put a flag in the block to attach the notice and envelope to the return when it is re-filed.

If the notice and envelope are received in the File Functions with a yellow Post Office (P.O.) change of address sticker, route the notice and envelope to the appropriate area in accordance with local procedures.

If the return has already been retired to the FRC/NARA, the notice should be attached to the return. Utilize local procedures for routing attachments for returns housed at the FRC.

If the envelope and the notice are returned to the File Functions indicating that the taxpayer is deceased, associate the envelope and notice with the return.

If the notice is for an electronically filed return or a magnetic tape filed document, annotate the notice "Undeliverable Notice - No paper document, magnetic tape filed" or "Undeliverable Notice - No paper document, E-file return" and route to Notice Review.

Receive documents on batch carts after the raw input and first error loop have been completed. The documents will be in labeled folders or W-2 boxes. Some documents will be received from the NMF Accounting Function. Five (5) days' receipts (segments) constitute a cycle.

After receipt, prepare documents for filing as follows: (See appropriate subsection for detailed instructions.)

Place documents in boxes utilizing Block Divide Cards, Form 4210, or small-sized folders. Add, repair, or replace folders and labels on W-2 boxes if necessary.

Arrange documents in proper filing sequence. Maintain all documents in DLN order except as indicated elsewhere in this section. See IRM 3.5.61.15, Document Files Exception.

After the weekly cycle is accumulated (daily where space limitations or other local requirements dictate), inter-file the cycle on permanent shelving for retention.See IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates for time limits.

Prior to receipt, stamp blocks of assessable NMF documents with the legend:

If a block of assessable NMF documents is received without one of these two statements on the folder, pull and charge-out the block and send it to the NMF Accounting Function.

Forms CT-2, 2438, 8404, and 8831 are NMF returns that are processed at the Cincinnati Submission Processing Campus only.

The Cycle Proof Listing (CPL) and Automated Cycle Proof Listing (ACPL) are used as check-off lists to prevent unprocessed blocks of documents from being inadvertently filed in permanent storage with processed blocks.

Cycle Proof List (CPL)

Automated Cycle Proof Listing (ACPL)

Cycle Control Function (CCF)

Maintain a staging area (Cycle Control) for Document Perfection Branch. Prepare an "ABC List/Road Map" Control for the work set-up.

Missing Blocks:

The following search procedures have proven to be the most productive in locating missing blocks:

When two blocks have identical DLNs, forward to Accounting Function for a determination as to which block should have the DLN and which should not so that appropriate action can be taken. If duplicate DLN blocks post to good tape, it will be necessary to distinguish the blocks.

Blocks Not On the CPL/ACPL

Research missing and overage blocks on the SCCF using Command Code SCFTR, if IDRS is available.

After verification of cycle completion and release from the Cycle Control Unit, pull any Form 990 Series that has a protruding blue tag and route to the appropriate unit for imaging.

Annotate the Block Control Sheet (BCS) and make a photocopy to use as a transmittal document.

Documents with voided or canceled DLNs are returned to the taxpayer or SC preparer when they are re-input or reprocessed by the function resolving the problem.

When the document is reprocessed or re-input with the same DLN, check Item 1 on Form 3893 for an Alpha Block Control (ABC). Next, take one of the following actions:

When renumbered, shelve following normal procedures.

If the document cannot be returned to the taxpayer or preparer, it should be annotated by the area resolving the problem and re-filed in the original block.

Process/work Correspondence Imaging System (CIS) images of original numbered returns/documents from Accounts Management as Special Attachments.

Copies of CIS reprocessed returns/documents received in the Cycle Control Unit (CCU) should be separated from other re-input/reprocessed documents.

Forward CIS reprocessed returns to the Sort and Sequence Function with a flag identifying them as CIS documents and state "Attach to front of the original return" .

Sort and Sequence Function will batch CIS documents as Special Attachments to returns rather than as re-files. If a document is discovered that is not a CIS print, inter-file it with other documents for re-filing.

Perform two sorts:

To ensure that the CIS reprocessed returns being sent to the DRU are processed correctly, do the following:

Batches received in DRU identified as special attachments will be stapled to the front of the original return.

To ensure that the CIS reprocessed returns shipment to the FRC/NARA are processed correctly, follow these instructions:

Process remittances discovered during the filing or retrieval of returns according to the procedures in IRM 3.8.46, Discovered Remittance.

Process Form 5650, EP Examined Closing Record, and Form 5881, EP Non-Examined Closings as follows:

Process Form 5596 (EO Non-Examined Closings) and Form 5599 (EO Examined Closing Record) as follows:

Charge out all Forms 1120-FSC and Forms 1120-IC-DISC initially received by the File Functions and route to the Campus Examination Function.

Forms 8855 are processed at the Cincinnati and Ogden Submission Processing Campuses. Process in EIN order by year of receipt.

Associate Form 8855 with Form 1041. If Form 1041 is not present, associate with Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.

File by individual taxpayers electing the exception provided by Internal Revenue Code (IRC) Section 613A(c)(10).

Time stamp election Statements (titled as above) and then file in alphabetical order.

File Form 709 in alphabetical order.

Associate each Form 709 with the prior period Forms 709 for the same donor in a single lifetime file.

Prepare a donor file jacket for new filers.

Route Form 709 to the Consolidated Site (C-Site) as directed by the shipping schedule.

Per NARA SF-115, Job Number N1-058–04–2, Item 3, destroy immediately Form 709 from tax periods 1966-1975 that do not require association with an estate tax return.

Form 990-BL, Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons, and Form 6069, Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust Under Section 4935 and Computation of Section 192 Deduction, are processed at the Ogden Submission Processing Center only.

Returns are processed using general NMF procedures. File in DLN sequence by year.

See IRM 1.15.29, Records Control Schedule for Submission Processing Campus Records, Item 66.

Annotate folders with the following:

File folders in date, then employee number sequence by type of input.

Service requests for these documents by following instructions for IDRS Source Document Requests. See IRM 3.5.61.5.12, IDRS Source Document Request.

Do not consider these folders as IDRS Source Document Folders as they have a separate and unique retention period. See IRM 1.15.29, Records Control Schedule for Submission Processing Campus Records.

Forms 1040EZ processed through Service Center Recognition/Image Processing System (SCRIPS) have Form W-2 detached and stored in an envelope accompanying the block. This envelope will be numbered with the block DLN of the related documents.

File the envelopes of Form W-2 separately from the Forms 1040EZ.

Treat Form W-2 as a separate document group for retirement to and retrieval from the FRCs.

Requests for the Forms 1040EZ must also include a separate request for the related Form W-2.

Beginning in July 1990, sequence number labels began generating for the Reporting Agent Authorizations (RAA) previously maintained in TIN sequence. At that time, sequence numbers were generated for all existing RAAs. Maintain all RAAs, except those for FTDs only, in sequence number order.

Authorizations, except those for FTDs only, are received in Files Function with the sequence number label or a hand written sequence number. If the sequence number is not present, return the document to the Entity Function.

Maintain the FTD only authorizations in Agent and EIN sequence.

Two new listings are generated for RAF:

File Form 1042 and 1042S in DLN sequence.

File Form 1042 and 1042S as a unit when they are received attached together, unless the Form 1042S are numbered differently from the Form 1042. If the Form 1042S are numbered with their own distinct DLN, detach and file in DLN sequence.

If a copy of Page 1 of Form 1042 and Form 5344, Examination Closing Record, is annotated "Processed for Examination Results Only" maintain in DLN order of Form 5344.

When Annual Statements are received, obtain the DLN of the related Forms 1120-L or 1120-PC.

Staple the Annual Statements to the related returns.

When a loose Annual Statement is received, determine if related Form 1120-L or 1120-PC has been charged out.

If return is charged-out to the Examination or SOI Function, route to appropriate function. If charged out to any other function, flag and attach to return when re-filing.

Form 8875, Taxable REIT Subsidiary Election, is used by an eligible corporation and a REIT to jointly elect to treat the corporation as a taxable REIT subsidiary under Section 856(1) election available for tax years beginning after December 31, 2000.

Form 8875 is processed at the Ogden Submission Processing Center.

Maintain Form 2553 in DLN sequence.

File rejected Form(s) 2553, processed prior to 1-1-89, in alphabetical order by year.

Form 1096 began processing on the Service Center Recognition/Image Processing System (SCRIPS) beginning 01/01/1995.

Some Form(s) 1096 are processed through ISRP. For those received in the Files Function and processed through ISRP, locate disposition authority for these forms in IRM 1.15.29, Records Control Schedule for Submission Processing Campus Records, Item 98.

Process returns with a tax class/document code 559 DLN.

Coordinate with the Examination Function prior to the purge process.

Manually purge and route returns to the Examination Classification Function at the end of each processing year.

Quality Review audits adjustments including case file assembly. The File Functions personnel must be alert to errors in this area.

Route case files with erroneous data attached to the responsible area.

Process Residual Master File (RMF) Adjustments as follows:

Form 709 Adjustments - After BMF output processing is completed, pull Form 709 and related documents and file them in the alphabetical sequence.

Other RMF Adjustments - Block separately to facilitate retirement and destruction in accordance with IRM 1.15.29, Records Control Schedule for Submission Processing Campus Records.

See IRM 3.5.61.3.17, IDRS Source Documents, for special procedures for adjustments input via IDRS.

The File Functions receives folders of source documents supporting transactions input through IDRS. Ensure that outside of the folders reflects the:

For Campus Originated Transactions

For Area Office Originated Transactions

Each on-line transaction input through IDRS causes the output of CF 5147. The File Functions receives corresponding transaction records and IDRS Block List daily.

Check each block of documents (CFs 5147) against the IDRS Block List to verify receipt of all blocks. Document Code 54 with TC 534, blocking series 199, generates for both IMF and BMF.

If a folder of source documents or document(s) within a folder has no generated transactions, hold it and check the following day's output. If no Transaction Record is received, return the folder to the originating function.

If a Document Code 47 or 54 re-file DLN blocking series transaction record is received without a source document or the source document appears invalid, route a copy of the transaction record to the initiators's manager. Do not route copies of document code 47 transaction records that indicate Examination disposal codes 28, 29, 33, or 36-41 or Blocking Series 130-179, 190-199, 280-299 and 400-479.

Transaction records for document code 47, blocking series 100–199, indicating Examination disposal codes 07,11, or 12 can be filed without Form 5344 as the source document. Do not route copies of the transaction record to the initiator.

Do not route copies of transaction records that indicate Examination disposal codes 29 or 99 when the Document Code is 47 on Employee Plans (EP) or Exempt Organizations (EO) returns. These will not have source documents.

Do not route Document Code 54 transaction records that have reference code 616. These will not have source documents. Certain Document Code 54 source documents may be deliberately retained by Accounts Management Function for further action. These items will be identified by annotation of the TR "SDR" (Source Document Retained) in the "Remarks" field. See IRM 3.5.61.18, Special Handling for 5147, for Blocking Series Charts.

If a Document Code 64 transaction record is received without a source document, contact the originator to secure the source document unless this input was caused by an oral statement documentation. The remarks area of the Transaction Record will annotate that this action was caused by an oral statement. No source document needs to be attached. Follow the appropriate time frames. See IRM 3.5.61.3.17 (2) and (3), IDRS Source Documents above. If source documents are not received within these time frames, notify SC Inspection/Internal Security Representative.

Route a copy of any CF 5147, for which a Tax Equity and Fiscal responsibility Act of 1982 (TEFRA) penalty case file has not been received with reference numbers 628, 630 and 665 to the appropriate Area Office Quality Review. Associate the original CF 5147 with the Form 8278, Assessment and Abatement of Miscellaneous Penalties, received from the area office. Route reference numbers 666-673 to the Frivolous Filer Function at each campus.

Route a copy of any CF 5147 with reference number 634 to the appropriate Area Office Quality Review. Associate the original Form 5147 with the Form 8278 received from the Area Office.

Do not route any CFs 5147 with a reference number of 616 to the Examination's W-4 Function. They do not have the source document.

Where Area Office input is concerned, mail time delays association of the source document with the transaction record.

After association of appropriate source documents with their corresponding transaction record, sort all CFs 5147 into DLN sequence except Form 709 adjustments. See IRM 3.5.61.3.16, Adjustment Documents.

File Payment Source Documents (Doc Codes 18 and 28) by payment sequence number. The payment sequence number is found on each individual input document.

File source document folders for all other inputs by input date and Employee Number sequence.

Certain Tax Delinquency Investigations (TDIs) used as source documents for IDRS input by the campus TDI Function are held temporarily for subsequent action. These documents are sent to the File Functions as re-files. The documents are labeled appropriately with the input date and employee number. Re-file source documents in the appropriate source document folder.

If source documents are still not received after allowing the appropriate time and contacting the originating function, notate "No Source Document Received" and file by input date and Employee Number sequence.

Under current NMF processing, index cards are not generated or sent to the File Functions. Data is maintained on an automated data base in the Accounting Function.

Maintain Index Cards in alphabetical order by tax year except the following:

Index Cards will be received from Files Management Unit (FMU). Inter-file these index cards into the Index files.

Process Form 8278, Assessment and Abatement of Miscellaneous Penalties as follows:

Maintain the index cards for the following forms in the Campus listed below. These forms are centrally processed. Form 1042 (at PSPC only prior to FY84):

Each SP Campus File Function retention area has a different capacity for storage. The major concern is the accountability of all paper under DLN control whether it be at the Campus or retired to a Federal Records Center.

In certain instances, documents received by the File Functions may be too bulky (schedules, audit reports and/or other documents may be contained) to be filed in the normal block of documents. Determine the filing system for all oversized files based on local space availability.

Stamp the upper right hand portion of the return "Administrative File" without stamping over any other information.

Write the following on any cartons/folders prepared for storage:

Update all administrative files to show the new control DLN for the taxpayer when a return is renumbered.

Fill requests for returns having administrative files with the complete file. If it appears to be overly large, contact the requester to determine if portions of the file will satisfy the request.

The Consolidated Site (C-Site) has been established for the storage and maintenance of certain tax returns/documents that are typically infrequently requested.

Form 709 and Form 2848 are now stored at the C-Site.

Process requests for Form 709 and Form 2848 using normal procedures.

The Consolidated Site (C-Site) is located in a storage facility near the Kansas City Submission Processing Campus (KCSPC).

If an Election Under IRC Section 243 is received without a return:

Process Elections Under IRC Section 103 as follows:

Receive and process Elections with Respect to Net Leases of Real Property as follows:

See IRM 3.5.61.3.13, Form 2553, Election by a Small Business Corporation, for processing instructions for Form 2553.

Process Notice of Inconsistent Treatment Under Section 6222(b) as follows:

Process Other Elections (including IRC Section 83(b) and Consents as follows:

Elections With No Record of a Return - Exhaust all research measures and if no TC 150 is found, follow the procedures in (6) above.

Return to the originator all Elections and Consents received without the following information edited on the document:

Receive Citizenship Status Statements from the Correspondence Function identified in three categories:

File these statements within category, by year, as received, for retirement as outlined in IRM 1.15.29, Records Control Schedule for Submission Processing Campus Records.