Form 4506-C deviation impact to upcoming IVES automation

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Dear IVES participants,

As you may have heard, IVES is implementing a processing modernization. This will bring much needed automation advances to our current manual process, greatly improving our efficiency in response to the industry’s transcript needs.

The first step in this Modernization effort will be the inclusion of Optical Character Recognition (OCR) software. OCR programming will read the Form 4506-C  as the form was intended. In order for the clean version of the form to be accepted by the Optical reader, it should:

• Be clear of any editing marks
• Only identify the transcripts, tax years, and/or taxpayers that need to be processed
• List the data on the assigned lines

It is vital that all participants adhere to this clean version in the completion of Form 4506-C  for a successful integration of OCR in the IVES Modernization. Please refer to the Form 4506-C’s general instructions to ensure correct form completion.

The IRS is aware time is needed to update technology and communication within each participant’s organization. The OCR software is expected to go live in October of 2021 and the automation process will work side-by-side with our previous manual processing to start. Submissions received from IVES participants that have not made the adjustment to submitting a clean version of the Form 4506-C requests to integrate with the OCR software by October of 2021, will be routed to the manual processing and will follow that processing timeframe.

Effective January 1, 2022, all participants must have updated their Form 4506-C submissions to match this clean version. This will permit all submissions to be incorporated into the modernization software and phase out the previous manual process. Failure to submit a clean version of the Form 4506-C at this point may result in increased rejections or additional authorized transcript receipts which will be chargeable to the IVES participant.

Thank you,

IRS IVES Team

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