IRS-Fresno Processing Center
Author
Myra J. Thompson EA
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3/14/2016
Agenda
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Did you know?
AUR (Automated Under Reporter) Unit
Receipt & Control Unit
Notice Review Unit
More on Receipt & Control Unit
Data Conversion Unit
Code & Edit Unit
Error Resolution System
Questions
3/14/2016
Did you know…?
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This was the first public tour since 9/11
In 1972 the Fresno campus was opened without computers, handled
CA & AZ only
Nine states will move to a different Submission Processing site in
2010. Only 4 sites will remain Atlanta, Austin, Fresno, and Kansas
City. Then in 2012 these will be reduced to 3 processing centers in
US, Fresno, Austin and Kansas City.
Fresno is currently receiving mail from 24 states
Dogs specially trained to sniff out drugs and explosives go over mail
twice before it enters the building
5,000 employees during peak season
October 2008 thru June 2009 Fresno campus received $91.7 billion in
revenue; they refunded or abated $70 billion
3/14/2016
Did you know…? (cont.)
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IRS is currently looking at paid preparers more aggressively
In 2009 more than 60% of the returns were prepared by paid preparers
63-64% electronically filed for 2008
To obtain a photocopy of an entire original return the cost is $57 per
return, order on form 4506T, originals are stored in TN
Request for transmittal, income and wage or line by line is free
When available always use mailing labels
Approximately 9 million gallons of water is used each year
14 million watts electricity used monthly, bill over $200,000 per mo
3/14/2016
Did you know…? (cont.)
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Café is open for breakfast, lunch and dinner, 17 hrs per day
Full time credit union and nursing staff on site
Bank and PO available in main facility
29 bathrooms
Several bombs were launched onto the roof from outside the parking lot
of facility in 1991, one exploded
The main building covers 540,000 square ft, there are 9 total buildings
located on the 47 acre campus
Buildings located on 13 of these acres, 10 free acres and 2698 parking
spaces
Many other buildings are separated by walls, side by side as one
building. They use zone numbers to identify where a problem is within
the 540,000 sq ft building
3/14/2016
AUR Unit (Automation Underreported)
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If need larger envelop than one supplied by IRS cut area with
name/address/bar code and scotch tape to our envelope to speed
process
Always place notice on top of explanations revised forms or supporting
documentation
If you miss Notice of Deficiency date ask for reconsideration
3/14/2016
Receipt and Control Unit
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Has 1500 seasonal employees
Payment goes on top of return, correspondence or voucher
Automation – matches each form 1099 (do not lump different
institution together) if lumped it is looked at very quickly) but if you
have say 2 or 3 form 1099’s from same institution you can lump
(combine) on one line. Do not combine interest with Dividends, use
separate lines
Schedule D transactions, can use form DI or attachment, either one
including brokers statement to match 1099B’s
ASFR – Automated substitute for Tax Return – once a return is filed
the statute of limitations begins, collection starts when Substitute for
return is issued. (No statute of limitation (no matter how many years
have passed) if only a substitute return was established and no actual
return was filed by taxpayer.
3/14/2016
Receipt and Control Unit (cont.)
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Any extremely thick tax returns over 1 ½ inches are handled manually
All correspondence to IRS needs taxpayer’s name, SSN, year, etc
Checks stay with document, tax return or correspondence until applied
to taxpayer’s account
All mail received on 4/16 and after - the envelope also stays attached
and is date stamped
Imperfect checks need research (no SSN, tax year, etc.)
Returns mailed with Return Receipt (RR) are delivered last by PO, the
RR’s are stamped by PO, other part of cards delivered to IRS in
stacks, not with each return or letter –Green cards are sent back by
PO, waste of time for us to use - correspondence or return is last to be
delivered to IRS by PO. (Suggestion: write receipt number on check
and at the top of page of tax return or notice if insist on using RR’s)
Extremely important for quick processing to mail before 4/15 when
possible, clearly identify all payments and correspondence and use
correct IRS address with all 9 digits, when available
3/14/2016
Receipt and Control Unit (cont.)
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One can request an acknowledgement of receipt – need to supply an
envelope with our return address and include postage, IRS will comply
IRS centers will not accept photocopy of taxpayer signature but OK for
photocopy of preparer signature
“Write in Amts” must have statement attached, write amounts on line
rather than “S/A” but leave the statement in, this helps to process the
return much faster
In 2008 approximately 360,000 EIC cases worked
Exam initiated a new universal toll free telephone number January
2006 (866)897-0177, calls go to one of 5 W&I call sites. Call for
information regarding Notice of Deficiency, wait 3 days to call for
confirmation of information faxed
Information requested on a CP2000 can be e-faxed to IRS, this began
5/09 - Next year we will also be able to fax information needed directly
to examiners desks.
3/14/2016
Receipt and Control Unit (cont.)
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CP2000 inquiries, best to call between 7 and 8pm PST
IRS working on My Account website – input shared secrets to
get information and transcripts
Audit Reconsideration 1(866)897-3370 if a Notice of Deficiency
has been issued because failed to respond to 90 day letter, call
and ask for reconsideration and submit return, etc. Send return
to automated substitute for tax return, ASFR.
If Schedule A, line 21, is over $2,000 (amount on line) always
send in form 2106 for unreimbursed EE expense
Starting 2012 IRS will be using the XML system – this will
enable us to e-file old returns (prior years)
Write telephone number on signature line or for 3rd party for
examiner to call if needed
3/14/2016
Notice Review Unit
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All correspondence review completed in 1 week
90 EE’s peak of season
Notices, tax adjustments, transferred to other units
They research misapplied funds
3/14/2016
Receipt and Control Unit
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581 examiners open mail during peak season
(2) 15 min breaks and ½ hr for lunch if work 8 hrs
Stay in seat except for bathroom trips, breaks, and lunch
(2) 11hr shifts during peak season
If any EE’s goals are not met they are termed
After mail is slit open on one side by machines, very noisy room, it
goes to another unit for sorting of contents
They have received in the mail: guns, coins, handbags, etc. for
payment, all are sent back to taxpayer
After contents of envelope removed the envelopes are scanned to
ensure nothing left in envelope
No books, purses, CD’s, headphones, lunch bags, only see through
pouch with few items
Each badge has clearance for elective units
3/14/2016
Additional information
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If a return is signed by us on behalf of taxpayer they do look for the
POA
25 returns are manually transcribed an hour
No bulky clothing, if take off sweater cannot throw over their arm
All mail is sorted using what is named a Tinkle table to sort and bundle
all incoming entity requests
Need to place pages of return in sequence order otherwise return is
unstapled, big delays and pages may be lost
All dual status returns need Dual Status written on top of return, if not
causes big delays, Dual Status returns are sent to another processing
campus (Ogden)
Checks – if FTB written as payee and caught IRS crosses out wording
FTB and writes or stamps in IRS if the amount matches balance due,
they are cashed. The FTB cannot do the same if they receive a check
payable to IRS
3/14/2016
Additional information (cont.)
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303,000 tons of paper goes through the campus each day
during peak season
POA’s for collection communication – they will accept POA with
only one signature when married, but for installment sale
arrangements IRS will only set up payments for T/P have
signature of
Practitioner Priority service unit cannot see vouchers
Checks submitted with a voucher or with a return (meaning if
perfect) are posted the day they are received even though
Practitioner Priority Representatives tell you differently
Payment checks cashed but we are told the bill is still
outstanding because IRS did not credit to the taxpayers
account, have to be found by the service center, IRS never
stops searching for payment as the FTB does
3/14/2016
Data Conversion Unit
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Data transcribers
Full time 400 EE’s in Fresno
Each year they hire 800 new employees in this unit alone
Use white paper with black ink, even forms from IRS mailed to T/P in
booklet form have white right hand side column to use black ink in this
area
2 sided tax return pages are accepted to save paper
3/14/2016
Code and Edit Unit
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1040X - 1.1 million 1040X’s were received from Jan thru June and
manually entered
Processing goal is 20 an hour by new people and Jeeda (a new
program implemented to reduce research which will improve
productivity (Jee/da it works)
Allowed 12 days to be completed, if all OK the taxpayer’s account is
updated, adjustments are entered into computer within 21 days or sent
to accounts management to work
16 week time frame ideally to receive refund, can take up to 9 months
if return needs to be shipped to another site, dependent upon issues
Amended returns are processed all year
1040X needs forms to support changes, changes to page 1&2 unless
an involved position is taken then a wordy explanation may be
necessary:
3/14/2016
Code and Edit Unit (cont.)
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Line 21 change on Schedule A, attach Schedule A and if SS tax only
send SE form not entire return, (forms to support changes) computer
will change schedule A for medical, unreimbursed employee business
expenses, AMT, etc. (can send page 1&2 of original, labeled
“Originally Filed” and pages 1&2 “As Amended” but other than that just
attach forms that start the change. Write brief explanation except
when explanation for position taken, ex: following paragraph used for
some amended returns for FTC carry backs:.
the taxpayers’ foreign source income was earned in calendar year
____ but the taxes, which accrued on this same income, were fixed
and determinable in calendar year ____. We filed the original _____
return with a form 1116 to calculate excess limitation. The amount
accrued was $0 since the taxes were accrued in the subsequent year,
____. We then carried the tax back to ____, the year with the income
that related to the tax.
Attach page 1&2 of 1040X
3/14/2016
Code and Edit Unit (cont.)
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Attach page 1&2 of “Originally Filed”, and clearly marked as such, red
is good color for stamp
Attach page 1&2 of “As Amended”, clearly marked as such, red is
good color for stamp
Form to support change, such as; if a change to Schedule A attach
Schedule A, if change to Schedule B attach Schedule B, if change to
Schedule C attach Schedule C, and if change to form 2106 attach form
2106, etc.
3/14/2016
ERS (Error Resolution System)
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Error Resolution System/Rejects/ Unpostables/Notice
Review/Document Retention
868 employees
Each shift of 325 employees corrected 98,000 returns each day which
included e-file errors (fall 0ut)
Fresno – 430,000 returns were returned to sender for missing info out
of 13 million filed, of these 261,000 were prepared by professional
preparers
Others Errors – cannot read the name or SSN on check voucher
and/or return (or notice may have gone somewhere else after
separated from the check
3/14/2016