- 21.5.6.1 Freeze Codes Overview
- 21.5.6.2 What is a Freeze Condition?
- 21.5.6.3 Researching Freeze Codes
- 21.5.6.4 Freeze Code Procedures
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Freeze conditions prevent the issuance of refunds, credit offsets, or the assessment of accrued interest and/or penalty. This chapter covers the identification and resolution of freeze conditions. See Document 6209, IRS Processing Codes and Information and IDRS (Integrated Data Retrieval System) Information, for additional information.
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During a taxpayer contact when:
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It appears that there may be a hardship situation,
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The taxpayer asks to be referred to the Taxpayer Advocate Service (TAS), or
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The contact meets TAS criteria, and
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You can’t resolve the taxpayer’s issue within 24 hours,
Prepare and forward Form 911, Request for Taxpayer Advocate Service Assistance and (Application for Taxpayer Assistance order), to the local TAS office. If you have taken steps within 24 hours to resolve the taxpayer's issue, do not transfer the case to TAS unless the taxpayer asks to be transferred. See IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, for more information.
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Before disclosing any tax information:
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Be sure you are speaking with the taxpayer or an authorized representative. See IRM 21.1.3.2, General Disclosure Guidelines, for more information.
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Review procedures in IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail, before leaving a message on a taxpayer’s answering machine or voice mail.
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Review procedures in IRM 11.3.1.10, Facsimile Transmission of Tax Information, before faxing confidential information to the taxpayer.
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There are three types of freeze condition codes:
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Those identifying conditions existing in the module/account that freeze refunds and prevent offsets in or out of the module, but do not stop balance due notices.
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Those which freeze IDRS balance due notices, refunds, offsets, and Tax Delinquent Account (TDA) issuances.
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Those indicating that certain conditions exist on the module. Activity on the account is not frozen.
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Combination freeze codes such as --LQ, P--L, and --EL result when a combination of freeze conditions affect one module. Refer to the appropriate area of this IRM for instructions. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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Do not take action on any freeze condition without complete IDRS research.
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Select and follow the procedures for the appropriate freeze. See Document 6209, IRS Processing Codes and Information, for a complete listing of freeze codes.
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Request a manual lien release (TC 582, lien indicator) in the following situations
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The lien will not systemically release
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The action you are taking will fully satisfy all outstanding liabilities and will not post within 30 days
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It has been more than 30 days since the account was fully satisfied
See IRM 5.12.3.2.1(5), Liability is Satisfied, regarding manual lien releases. Employees with access to the Automated Lien System (ALS) should input the lien release. Employees without access to ALS should submit Form 13794, Request for Release, Partial Release, or Withdrawal of Notice of Federal Tax Lien, to the Centralized Lien Unit. The fax numbers can be found by selecting ″Lien Payoff/Release Contact Numbers″ under the Who/Where tab on the SERP Home Page.
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The A-- freeze is set when all of the following are true:
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There is a credit available for offset.
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A module has a balance due of $25 or more.
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The Collection Statute Expiration Date (CSED) has expired on the balance due.
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A CSED transcript generates and is worked in the Collection function. The account is frozen for eight cycles or is released when a TC 534 is input, whichever is earlier. See IRM 5.19.10.5.1, General Procedures For All Transcripts, for more information on the A-- freeze.
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The -A Freeze is set when a duplicate return (TC 976), subsequent return (TC 977) or a TC 971 with Action Code (AC) 010 or 012-015 amended return posts to an account. A CP 36, Duplicate Filing Notice, or CP 193, Duplicate Filing Condition, (created by a frozen account) is generated and forwarded to the Campus AM paper function.
Exception:
TC 971 with AC 010 or 012-015 does not generate CP 36. TC 971 AC 010 will only generate a CP 193 in certain situations.
See IRM 21.6.7.4.4, Duplicate or Amended Returns -- CP 36 (Duplicate Filing Conditions) and IRM 21.7.9.4, Duplicate Filing Conditions Procedures for more information. -
Take the following action:
If And Then Less than 60 days have passed after filing the return TC 976/977 has posted to the module but an adjustment has not been made Advise taxpayer to allow 8 -12 weeks for normal processing. Normal processing time has elapsed, or the taxpayer furnishes additional information TC 976/977 has posted to the module but adjustment has not been made and there is an open control 1. Prepare Form 4442, Inquiry Referral, and route it to the employee/unit with the open case control.
2. Advise taxpayer to allow 30 days for a response.60 days have passed after filing TC 976/977 has posted to the module, there is no open IDRS control, and adjustment has not been made 1. Prepare Form 4442, Inquiry Referral, and route it to the Campus AM paper function where the TC 976/977 posted.
2. Advise taxpayer to allow 30 days for a response.≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡More than 40 days have passed since the IDRS control base was opened ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡Identical returns were filed (the return is a true duplicate) Research shows a tax examiner/unit has an open control 1. Any adjustment or freeze release action must be coordinated. If the employee/unit with control agrees, either
2. Close the control or put in B Status (as directed by the employee/unit).
3. Release the freeze if appropriate.Research and probing establish that the return is a true duplicate There is no control or only a unit control Take action as indicated in 2. and/or 3. box directly above. History item "REPRXA150" is present Release -A freeze. See IRM 21.6.7.4.4.1, CP 36 -- Control, for more information. -
For additional information when working -A freeze refer to IRM 21.6.7.4, Adjusting Individual Tax Accounts Procedures, for IMF and IRM 21.7.9, BMF Duplicate Filing Conditions, for BMF.
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The B-- Freeze is set when:
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A payment erroneously posts to a wrong period which is fully paid.
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An offset from another period pays off an account prior to the payment posting.
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A subsequent payment posts to an account that appears to be full paid but contains penalty and interest restrictions.
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To resolve a B-- Freeze take the following actions:
If Then Payment posted to the wrong period Input a credit transfer to move the payment to the appropriate module. See IRM 21.5.8, Credit Transfers. An offset from another period has already paid off the account 1. Research additional liability.
2. If none exist, input TC 290 for .00 to release any overpayment.Taxpayer states the payment belongs to the tax period in question 1. Compute applicable penalty and/or interest or
2. Refer to the interest specialist.
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The --B Freeze is set when the Statute of Limitations for refund has expired. Tax modules with a --B Freeze generally have a TC 820 to transfer the overpayment to Excess Collection when the over payment is on a delinquent original return.
Note:
See the discussion on statute of limitations in IRM 25.6.6.6, Claims for Credit or Refund - General Time Period for Submitting a Claim, for information on suspension of the statute of limitations on refunds in certain cases. The Statute Unit works these cases when they receive a transcript.
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Resolve the --B Freeze:
If Then Return is received more than 3 years after the extended due date Prepaid credits are no longer refundable. Return was timely filed Release the freeze. Return was not timely filed Explain why credit cannot be refunded. Taxpayer contends the return was timely filed 1. Have taxpayer submit proof of timely filing.
2. If taxpayer is unable to provide required documentation, request the return from files and verify the received date.
3. Release the refund if appropriate.Note:
See the discussion on statute of limitations in IRM 25.6.6.8, Claims for Credit or Refund - Taxpayers in Special Situations, for statute suspension during periods of disability.
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The D-- Freeze is set when:
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Taxpayer claims more estimated tax credits than are available. The D-- Freeze may also result in a TC 667 resequencing to the spouse’s account on joint returns. The module is frozen.
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Taxpayer with an outstanding liability on a previous joint return files a return showing a married filing separate or single filing status.
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Taxpayer with an outstanding liability on a previous single or separate return files a return showing a married filing joint filing status.
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The primary SSN on a joint return was the secondary SSN on a prior year return that has an outstanding liability.
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A TC 470 CC 97 posts; freezes entire account (all modules) from offset in or out. (Large Corporation Offset Freeze). The posting of TC 470 CC 97 will not freeze designated overpayments from refunding.
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No action is needed to release a D-- Freeze.
If Then A return is filed claiming more estimated tax credits than are available 1. The computer automatically checks for additional credit under the spouse’s SSN, and releases the freeze 3 cycles from the TC 150 posting cycle.
2. A CP 23, Estimated Tax Discrepancy, Balance Due, CP 24, Estimated Tax Discrepancy, Overpayment, or CP 25, Estimated Tax Discrepancy, generates when the freeze is released if no credits are located.
3. If the taxpayer is calling in response to a notice, see IRM 21.3.1.4, Notice Descriptions, for more information.A return showing a married filing separate or single filing status is filed by a taxpayer who has an outstanding liability on some previous year’s joint return (This can also happen in reverse, see (1) above) or the primary SSN on a joint return was the secondary SSN on a prior year return that has an outstanding liability.
1. The freeze automatically releases after the offset to the joint balance due occurs, usually 2 to 3 cycles after the TC 150 posting cycle.
2. If the original refund was requested as a direct deposit and denied because of the module freeze, any remaining credit, after the freeze resolution, will be issued via direct deposit.Note:
The return must be a current year return and the posting and freeze release must all occur in the same processing year for the direct deposit to occur. For more information, see IRM 21.4.1.4.7, Direct Deposits - General Information.
A TC 470 CC 97 posts; freezes entire account (all modules) from offset in or out. (Large Corporation Offset Freeze). The posting of TC 470 CC 97 will not freeze designated overpayments from refunding. 1. The freeze is released by manual input of TC 472 CC 97 (input by BMF Adjustment employees designated to work Large Corporate Accounts), or
2. After the expiration of the 52 cycle systemic hold.
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The --D (RSED-STAT) Freeze is set when:
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An expired RSED is present.
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An IMF/BMF adjustment (TC 29X/30X) posts to the account.
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A return posts to a SFR tax module and the IRS received date of the source document/SFR return is more than three years after the due date or extended due date, whichever is later.
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All or part of the credit must be made up of prepaid credits (prepaid credits are credits posted by the due date of the return.). The credit is frozen, and an RSED-STAT transcript is generated and distributed to the Statute function for resolution 4 cycles after the --D Freeze is set.
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If 45 days have passed since the cycle of the --D freeze, prepare Form 4442, Inquiry Referral, and forward to the Statute function, where the RSED-STAT transcript generated, along with any documentation the taxpayer furnishes. Advise the taxpayer to expect a response within 30 days. Do not send Form 4442, Inquiry Referral, prior to 45 days.
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The E-- Freeze is set when no original return (TC 150) has posted and:
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A duplicate (BMF TC 976) or amended (IMF TC 977) return posts to the tax module.
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A TC 971 Action Code 010 or 012−015 is input.
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Amended return freeze is set and CP 29, Amended Return -No Original, (IMF) or CP 190, Amended Return -No Original Posted, (BMF) is issued, unless the freeze is initiated by the TC 971 AC 01X. The module is frozen from offset or refund until the freeze is released by the posting of the TC 150.
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E-- Freeze cases are assigned to the Campus AM Paper function. You must coordinate actions with the controlling employee. If the case is not controlled, AM toll free telephone staff should prepare Form 4442, Inquiry Referral, and route it to the Campus AM paper function within your Directorate.
Note:
See IRM 21.4.1.3.1, Locating the Taxpayer’s Return, for suggested research command codes that will provide information on paper and electronic returns. See IRM 21.4.1.3.1.1, Return Not Found, for information on electronic filed returns not found and the actions needed for resolution.
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Resolution of an E-- Freeze depends on whether or not the taxpayer filed a duplicate or amended return.
If And Then Taxpayer filed an original return under an incorrect/invalid Taxpayer Identification Number (TIN) or spouse's SSN Filed a subsequent amended return under the correct (TIN) 1. Research IDRS/to locate the original return.
2. If the return is located, request the document.
3. Process to the correct account.
4. Input TC 971 AC 002 on the incorrect TIN or spouse's SSN module to cross reference the correct TIN.Taxpayer filed a duplicate return or amended return You cannot find original on IDRS 1. IMF − See procedures in IRM 21.6.7.4.2.5, TC 150 Not Located − Duplicate or Amended Return Obtained.
2. BMF − See procedures in IRM 21.7.9.4.14, Amended Return − No Original.Taxpayer filed a duplicate return or amended return You cannot find original on IDRS and taxpayer wants to go to a Taxpayer Assistance Center. 1. Advise taxpayer that the walk in office cannot release the freeze.
2. Return will be accepted and forwarded to the appropriate campus for action.
3. IMF − See procedures in IRM 21.6.7.4.2.5, TC 150 Not Located − Duplicate or Amended Return Obtained.
4. BMF − See procedures in IRM 21.7.9.4.14, Amended Return − No Original.Taxpayer did NOT file a duplicate or amended return There is an open control on IDRS 1. Prepare Form 4442, Inquiry Referral, and send to the controlling employee/unit.
2. Advise taxpayer of the normal response time (6 weeks from the control date).Taxpayer did NOT file a duplicate or amended return Normal time period for processing the return has elapsed and there is no open control on IDRS 1. Request return causing the E-- Freeze (TC 976/977 DLN). Exception:
Do not request the return if the TC 976 generated from the input of TC 971 AC 01X. There is no return associated with the DLN.
2. Review return for completeness.
3. Request missing documents and/or information from the taxpayer.
4. IMF — reprocessed as the original using the original DLN.Exception:
If the TC 976 DLN generated from the input of TC 971 AC 01X you cannot use the TC 976 DLN (Document Code 77) to reprocess the return. Send through Submission Processing to be processed/reprocessed requesting a new DLN. Input TC 971 AC 004.
See IRM 21.5.2.4.23, Reprocessing Returns/Documents, and Exhibit 21.5.2–1, Preparing Form 3893, Re-Entry Document Control, for more information.
5. BMF — Reprocess as the original using Form 13596, Reprocessing Returns, and request a new DLN. See Exhibit 21.5.2–2,Preparing Form 13596 Reprocessing Returns, for more information. Input TC 971 AC 004 to suppress the generation of CP 193.
6. Advise taxpayer of the processing time frame.E-- Freeze was created by a TC 971 See IRM 21.6.7.4.2.5, TC 150 Not Located - Duplicate or Amended Return Obtained, for IMF information and IRM 21.7.9.4.14CP 190, Amended Return - No Original Posted for BMF information. -
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The --E Freeze (FTD Discrepancy freeze) on BMF is set when:
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A BMF return or subsequent transaction posts with a balance due (any module debit) and there is a discrepancy in the amount of FTDs claimed.
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TC 810 is placed on an IMF account by the Examination function.
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A –E freeze prevents generated offsets into the module.
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Resolve a --E Freeze in one of the following ways:
If Then There is a discrepancy with FTD credits on a BMF account 1. Verify deposits with taxpayer.
2. Transfer any deposit(s) found during research to correct module.You cannot find deposit(s) 1. Advise taxpayer to submit a copy of the canceled check, money order, etc., and other pertinent information/correspondence to help find payment.
2. Refer to IRM 21.5.7, Payment Tracers, for procedures.MF account contains a TC 810
1. You cannot resolve it.
2. Research IDRS to determine why the TC 810 was placed on the account. TC 810-2 indicates an Abusive Tax Shelter Detection (ATSDT) freeze. TC 810-3 indicates an EITC freeze.
3. See IRM 21.5.10.3.1, IDRS Research Exam Issues, and IRM 21.5.10.4.3, Examination Refund Hold Projects, for more information.
4. Follow instructions in the above IRMs.
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The Advance Payment Freeze is set when taxpayer submits a payment on a determined deficiency prior to assessment (TC 640).
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To resolve the --F freeze:
If Then Taxpayer’s payment posts to wrong period Transfer the misapplied payment to the correct module. See IRM 21.5.8, Credit Transfers. Taxpayer’s payment posted with a TC 640 after assessment 1. Input a credit transfer to reverse the TC 640 with TC 642.
2. Reinput with a TC 670 and By Pass Indicator (BPI "1" ) and Designated Payment Code (DPC) "99" to release the freeze.
3. Input credit transfers to reverse each TC 640, if multiple TC 640s are on the account.
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The --G (Math Error) Freeze is set when a taxpayer’s return is changed or corrected during processing, or by a TC 290, Block 77/78, adjustment.
If Then Taxpayer does not understand the math error notice 1. Review math error codes on the notice. See Document 6209, IRS Processing Codes and Information, Section 10.
2. Research CC RTVUE/BRTVU, to determine how the error(s) occurred.
3. Furnish an explanation.
4. See IRM 21.5.4, General Math Error Procedures.
5. If there is a balance due. See IRM 5.19.1, Balance Due.Taxpayer is protesting the Math Error Regardless of TC 150 date, refer to IRM 21.5.4, General Math Error Procedures, for further instructions.
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The H-- Freeze is set when a taxpayer overpays on an individual return while owing a balance on a BMF account. The freeze is automatically released in 2 cycles (from date the H-- Freeze is set) by a TC 896 on the IMF module.
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If the freeze does not release in two cycles, release it manually, and transfer the required funds to satisfy the outstanding liability (including accrued penalties and interest) using CC ADD24/ADD34. See IRM 21.5.8, Credit Transfers, or input a correcting adjustment using CC REQ54/ADJ54.
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The -- H (Credit Balance on a BMF Module) Freeze is set when a payment posts to a tax period for which there is no filing requirement (Status code is 06 and TC 59X on module).
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To resolve a -- H freeze:
If Then Taxpayer indicates there is no liability for the return period Input a credit transfer if the payment belongs to another period. See IRM 21.5.8, Credit Transfers. Taxpayer wants a refund Advise taxpayer that a signed return/claim for refund must be filed 3 years from the time the original return was filed or 2 years from the time the tax was paid, whichever is later. See the note below regarding the limitation on the amount that may be refunded. Note:
If the claim for refund is filed within the 3 year period, the amount to be credited or refunded is limited to the tax paid during the 3 years immediately preceding the filing of the claim (plus the period of any extension of time to file). If the claim for refund is not filed within the 3 year period, the amount is limited to the portion of the tax paid during the 2 years immediately preceding the filing of the claim.
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The I-- Freeze is set when taxpayer files a return that posts to an invalid IMF segment or when taxpayer fails to provide requested information, resulting in an unprocessable code. A Computer Condition Code (CCC) U appears on CC TXMOD and RTVUE. Credit Interest has been restricted. See IRM 21.5.4, General Math Error Procedures, when SSN is invalid or missing to resolve math error issues created by the invalid SSN.
Caution:
Do not release a refund from an invalid SSN without sufficient documentation (marriage certificate, divorce, etc.) and thoroughly researching for any outstanding IRS or TOP obligations on the valid SSN. Use of CC INOLE/NAMES may help locate valid SSN information.
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Most I-- Freeze issues can be resolved by one of the following actions:
If And Then Freeze is due to an invalid SSN Taxpayer provides a name change Refer to IRM 3.13.5.32.2, Determining Whether to Change Taxpayer Name, for further information. Freeze is due to an invalid SSN Taxpayer provides a valid different TIN Refer to IRM 21.6.2.4.1, Resequencing Accounts, for further information. Freeze is due to an invalid SSN If more than one individual is posted to invalid TIN Refer to IRM 21.6.2.4.3, Mixed Entity Procedures or IRM 21.6.3.4.2.7.13.4, Resolving CP 54 Notices With Math Error InvolvementProcedures. Freeze is due to an invalid SSN Refer to IRM 3.13.5.42, Taxpayer Notice Processing, for further information. Refer to the relevant portion of this IRM to resolve other freezes. Taxpayer’s return is not processable due to an invalid TIN Taxpayer does not qualify for an SSN Refer to IRM 3.21.263, IRS Individual Taxpayer Identification Number (ITIN), for further information. Refer to the relevant portion of this IRM to resolve other freezes. Return is not processable due to missing information (i.e., missing Schedule A, etc.) 1. Obtain a copy of the missing documentation from the taxpayer.
2. Verify all tax amounts and credits claimed with CC TXMOD and CC RTVUE.
3. Adjust the account, using the date the missing information was furnished as the return processable date (RPD).
4. Refer to IRM 21.5.1, General Adjustments, for further information. The RPD must be included to correct the "U" condition code.Freeze on an IMF or BMF account is due to the posting of TC 770 1. Release is not necessary because taxpayer has already received credit interest.
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If a scrambled SSN indicator "20" is present on ENMOD or an open control with category "SCRM" or "SSA2" , prepare Form 4442, Inquiry Referral, and forward to the Campus AM paper function that scrambled the SSN. If there is an open control, route Form 4442 to the employee with the open control. For additional information, see IRM 21.6.2.4.2, Multiple Individuals Using the Same TIN.
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For other reasons an I-- Freeze would generate, and the related release actions, refer to Document 6209, IRS Processing Codes and Information.
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The --I (Debit Interest) Freeze sets when a manual abatement or assessment requirement is placed on an account. The --I Freeze is generated when a TC 340/341 posts or when CCC "Z" is placed on an account identifying combat zone taxpayers entitled to an automatic postponement of a deadline. You must manually compute interest on adjustments input on an account with the --I Freeze.
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Do not take any action to release the freeze.
If Then Taxpayer inquires about payoff balance
1. Initiate a referral to the interest specialist to have interest recomputed manually.
2. If you identify a --I freeze case while staffing the AM toll free telephone line, and the inquiry requires manual computation of interest, prepare Form 4442, Inquiry Referral, and route it to the Campus AM paper function within your Directorate.Exception:
If there is an open control on the account, refer Form 4442 to the employee who has the open control.
3. Advise the taxpayer to expect a response within 30 days.Taxpayer was in a recognized combat zone 1. Follow the Telephone Transfer Guide, located under the Who/Where tab on the SERP Home Page, for combat zone inquiries received on the toll free line.
2. Follow procedures in IRM 5.19.1.7.10, Combat Zone Accounts, for combat zone correspondence.
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The J-- Freeze on IMF is set when taxpayer claims fewer credits on the return than are available on MF. Determine who the excess credits belong to.
Note:
See Document 6209, IRS Processing Codes and Information, Section 8, for conditions which set/release J - freezes on BMF modules.
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Information from the taxpayer determines whether and how you can resolve inquiries concerning discrepancies in estimated tax credits.
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Release the J-- Freeze by using one of these methods:
If And Then Taxpayer verifies payment(s) Furnishes logical reason for not claiming the credit Input TC 290 for .00 with Priority Code 8 to refund the overpayment. Taxpayer verifies the payment(s) Taxpayer’s responses are questionable Refund must be requested in writing. Credits are for spouse’s or ex-spouse’s account Taxpayer can provide information for normal disclosure and credit transfer 1. Transfer payments to correct account.
2. Refer to IRM 21.5.8, Credit Transfers.Taxpayer states payments are not theirs Request copy of payment in question to identify the owner Follow items 1 and 2 above. Taxpayer states payments are not theirs After research, you cannot determine where credits belong 1. Transfer excess credits to Excess Collections File(XSF) if more than one year old using Form 8758, Excess Collection File Addition. If less than one year old, move to Unidentified Remittance File (URF) using Form 2424. Reminder:
If moving the credit to XSF or URF, input TC 971 AC 296 on the module payment/credit posted to. This indicates all research of the primary and related Taxpayer Identification Numbers (TIN) was completed prior to the transfer to XSF or URF.
2. Forward to the appropriate campus Accounting function.
See IRM 21.2.4.4.15, Applying Unresolved Credits,for more information.
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The --J Math Error Freeze is set when a taxpayer disagrees, without substantiation, with the notice of a math error that increased his or her tax and the Service abates the change at the taxpayer’s request.
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The --J Freeze is set by TC 470 with closing code 94, converting a previously set --G freeze. The --J Freeze abates the tax and freezes credit on the account. The case is set up on the AIMS data base for review.
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No adjustment action may be taken on these accounts.
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Prepare Form 4442, Inquiry Referral, and refer to the appropriate Examination function.
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Enter a history item in IDRS.
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Advise the taxpayer to expect a response within 30 days.
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See IRM 21.5.3, General Claims Procedures, and IRM 21.5.4.4.5, Math Error Unsubstantiated Protest Processing, for additional information.
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The Erroneous Credits Freeze is set when the module balance is a credit, but the credit is not entirely refundable. A debit clearance (TC 606) that posted prior to an additional credit frequently causes a K-- freeze.
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Release the K-- Freeze by one of the following actions:
If Then Credit should have posted to another module 1. Transfer the payment to the correct module. Note:
Be sure to consider penalty adjustments if the transfer involves estimated tax or FTD payments.
2. Refer to IRM 20.1, Penalty Handbook, if you need further information about penalty adjustments.TC 670 subsequent payment created the freeze and should be refunded 1. Input TC 672 for the date of the payment and TC 670 for the amount of the payment and date of the TC 606. This action will generate a TC 607, which will release the freeze.
2. See IRM 21.5.8, Credit Transfers, for credit transfer information.
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The --K Freeze is set by including a specified hold code in a Data Processing (DP) or Examination adjustment. Credit module balances are frozen from refund or offset when a TC 29X/30X posts with Hold Code 1, 2 or 4.
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Question the taxpayer, then Research IDRS/CFOL to ensure:
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There are no open control bases.
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The return is not missing essential forms or schedules.
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Research indicates no manual refund is being issued.
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Credit is not being transferred to Excess Collections or the Unidentified File.
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No other liabilities or open Examination cases exist, and taxpayer is entitled to the credit.
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If a scrambled SSN indicator "20" is present on ENMOD, or an open IDRS control category "SCRM" or "SSA2" is present, follow procedures in IRM 21.6.2.4.2, Multiple Individuals Using the Same TIN.
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If the freeze should be released, input TC 290 for .00.
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The 1997 Canadian Protocol amended the U.S. Canada Income Tax Treaty and returned taxation of cross-border Social Security Benefits to a residency based system. Canadian residents who received U.S. Social Security Benefits during 1996 and 1997 were eligible for refunds of the U.S. tax withheld. Per the 1997 Protocol these refunds were available to Revenue Canada ONLY. Individual Canadian residents were not permitted to apply directly to the IRS for refunds. The project has been completed and specific procedures deleted from this IRM.
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Taxpayers who file a claim or inquire about refunds from this project on tax years 1996 and 1997 should have the claim denied and be instructed to contact Revenue Canada.
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See IRM 3.15.128.11.17, The 1997 Canadian Protocol, and IRM 3.15.128.11.17.1, Completion of Canadian Protocol Claim Project, for more information.
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This freeze is set on BMF when an MFT 60 module ( Form 2290, Heavy Highway Vehicle Use Tax Return), has a credit balance of ≡ ≡ ≡ ≡ ≡ ≡ ≡
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The freeze was created to prevent erroneous refunds.
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The credits are recorded on the Form 2290 Credit Report which is worked by the Centralized Excise Tax Group at the Cincinnati campus.
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The module is frozen from refund and offset.
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Always coordinate with the Centralized Excise Tax Group in Cincinnati before transferring any credit or inputting a TC 290 for .00.
Note:
The phone numbers below are for internal IRS use only. These numbers are not staffed for public contact. All taxpayer calls received are directed to toll-free numbers for assistance.