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Part 21. Customer Account Services

Chapter 6. Individual Tax Returns

Section 2. Adjusting TIN-Related Problems (Cont. 1)

21.6.2  Adjusting TIN-Related Problems (Cont. 1)

21.6.2.4 
TIN-Related Problems Procedures

21.6.2.4.4 
Scrambled SSN Case Procedures

21.6.2.4.4.12  (01-26-2006)
Unpostable 177

  1. An unpostable 177 condition occurs when a module creating transaction attempts to post to an account on the valid segment of an account that has been scrambled. Scrambled indicator 01, 10, 12, or 13 and MFR 08 will be present.

  2. The Unpostable Function will contact AM for assistance in resolving the unpostable condition. If there is an open control the employee who has control will be contacted. If there is no open control, the local Scrambled SSN Coordinator will be contacted. If the SSN was scrambled at another site, the local Scrambled SSN Coordinator will contact the coordinator at the other site.

  3. AM must make every effort to supply the Unpostable function with information to resolve the unpostable condition the same day contacted.

    1. Review the case file to locate the correct IRSN. This must be done the same day AM is contacted. If the taxpayer is a new filer on the SSN, AM must obtain an IRSN for the new taxpayer. If it will take longer than 2 business days, advise Unpostables of the timeframe necessary to obtain the information.

    2. Input TC 000 with the appropriate scrambled SSN indicator to establish the IRSN, if needed. See Exhibit 21.6.2-2, Scrambled SSN Indicators.

    3. If taxpayer is a new filer on the SSN, send a 239C letter. See Exhibit 21.6.2-1, Paragraphs for 239C Letter.

    4. Unpostables will forward copies of the unpostable case, including the return, Form(s) W-2, 1099, etc. to AM.

    5. Update history sheet and case file. Retain photocopies of the return and Form(s) W-2 in the case file.

    6. Send a follow-up Form 3857 to SSA with any new information that will assist in resolving the scrambled condition. Include copies of Form(s) W-2, with all money amounts deleted except Social Security and Medicare amounts.

21.6.2.4.5  (10-01-2005)
No Merge (NOMRG) Procedures

  1. General procedures for resolving most common types of No Merge (NOMRG) cases are listed below. The required action may vary based on statute information.

  2. If you identify a NOMRG case while staffing the AM toll-free telephone line, prepare Form 4442, Inquiry Referral, and route 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. No merge transcripts generate from both the correct and incorrect accounts when resequencing fails as a result of an entity transaction changing the TIN. The incorrect account may be either a valid or invalid TIN.

    Caution:

    Individual accounts, such as husband and wife, parent and child, or brother and sister are separate entities and are never merged.

  4. The transcript type is an abbreviated reason for failed merge. The following is a list of transcripts types worked by Adjustments:

    • NOMRG–DUP

    • NOMRG–VEST

    • NOMRG–576

    • NOMRG–400

    • NOMRG–424

    • NOMRG–896/898

    • NOMRG–930

    • NOMRG–RPS

    • NOMRG–XXSSN

  5. If other NOMRG transcripts are received, follow local procedures.

  6. Some posting delay code cycling noted in resolution of NOMRG transcripts infer "ideal" posting conditions. You may wish to suspend the case to verify actions have occurred before taking the next step.

21.6.2.4.5.1  (10-01-2005)
NOMRG-DUP

  1. A NOMRG–DUP transcript generates when:

    • An entire account (entity and all tax modules, except modules on Retention Register) is resequenced from one TIN to another TIN.

    • Both TINs contain a TC 150 for the same period.

    • One or two taxpayers may be involved.

  2. Other computer checks determine if the TIN is correct for the resequenced accounts. These checks may cause the resequencing action to reject.

21.6.2.4.5.2  (01-16-2007)
NOMRG-DUP One Taxpayer Involved

  1. Research the correct and incorrect accounts. If only 1 taxpayer is involved, process as follows:

    If Then
    Both TINs are valid

    1. Combine all returns belonging to the taxpayer under the correct account.

    2. Input TC 040 or 041 to resequence the incorrect account to an IRSN.
    Tax data is identical on both accounts but the name control or TIN is different

    1. Input TC 040/041 to resequence the incorrect account to an IRSN.

    2. After the merge to the IRSN has been completed, zero out the IRSN account, using the appropriate hold code 4. Input TC 170 .00 when zeroing out the account if TC 807 or transfer of a timely credit is required.

    3. Input TC 971 action code 001 on the IRSN to cross reference the valid TIN.

    4. Input TC 020 to the IRSN. Use posting delay code for 6 cycles, if inputting in the same cycle as TC 29X.
      Note             : It is not necessary to request returns.

    There is a discrepancy in the tax data

    1. Request returns.

    2. Determine if returns should be consolidated (e.g., additional Forms W-2, etc.).

    3. Input adjustment action on the correct account. If a math error is identified, resolve per IRM 21.5.4, General Math Error Procedures.

    4. Attach both returns to the adjustment document.

    5. Input TC 040/041 to resequence the incorrect account to an IRSN. Follow procedures in 2 through 4 above in prior IF/THEN statement.

    6. Send a 673C letter to the taxpayer.
    Return is for another tax period, or taxpayer

    1. Reprocess to the correct tax period or taxpayer.

    2. Refile the return if no adjustment is necessary on the valid account.
    Taxpayer received a refund under both the correct and incorrect account Follow procedures in IRM 21.4.5,Erroneous Refunds.

21.6.2.4.5.3  (01-16-2007)
NOMRG-DUP Two Taxpayers Involved

  1. When research shows two taxpayers are involved:

    1. Research INOLE and NAMES for a different TIN.

    2. Search INOLE/MFTRA on any TIN found to determine if a valid TIN can be located for the taxpayer posted on the incorrect segment.

    If And Then
    A valid TIN is determined TC 150 is not posted to the module Input TC 041 to resequence the incorrect account. No further action is necessary.
    A valid TIN is determined TC 150 is present on both modules

    1. Resequence the incorrect account to the IRSN.

    2. Back the data off the incorrect account.

    3. Zero out the IRSN account. Input TC 170 .00 if TC 807 or transfer out of a timely credit is required.

    4. Input TC 971 action code 001 on the IRSN account to cross reference valid TINs.

    5. Input TC 020 to the IRSN account with a posting delay code for 6 cycles.
    The valid TIN cannot be determined  

    1. Correspond with the taxpayer using the 239C letter.

    2. Suspend for 40 days, 70 days for overseas taxpayers.

    3. Follow mixed entity/scrambled procedures as appropriate.

21.6.2.4.5.4  (10-01-2005)
NOMRG-DUP Processed as Scrambled SSN

  1. Process the NOMRG as a scrambled SSN case if:

    1. Both taxpayers claim the same SSN and/or name.

    2. One or both taxpayers do not respond to 239C letter.

    3. Both taxpayers used the CN, and only 1 taxpayer replies to the 239C letter.

    4. Only 1 taxpayer replies to the 239C letter and the SSN was not valid in past.

    5. Both taxpayers used the SSN for first time.

21.6.2.4.5.5  (10-01-2005)
NOMRG-VEST

  1. NOMRG–VEST transcripts generate when one or both accounts contain a Retention Register (vestigial) record for the same tax period. When one taxpayer is involved, determine which years are on the Retention Register File and obtain MFTRA for those years.

    If And Then
    There is a TC 150 on only one account The accounts can be merged

    1. Prepare Form 5248,Transfer Request, to reactivate the retention years in question, i.e. if there is a vestigial record for 1999 on both accounts, then reactive the 1999 tax period for both accounts. Refer to IRM 21.5.1,General Adjustments.

    2. Input TC 040/041 to resequence the accounts to the correct TIN when the TC 370 is posted.
    There is a TC 150 on both accounts for the same year The taxpayer filed two returns using two TINs, the accounts cannot be merged

    1. Request and review returns, if necessary.

    2. Input TC 040/041 to resequence the incorrect account to an IRSN. DO NOT DELETE.

    3. Cross reference with TC 971 action code 001 on the active account.

    4. Back out account if necessary (See (2) below).
    Statute is expired or within 60 days The combined income is 25% or more of the original income Hand carry the case to the Statute Function for review.
    Statute is expired or within 60 days The combined income is NOT 25% or more of the original income

    1. Resequence the account to an IRSN. DO NOT DELETE.

    2. Cross reference with TC 971 action code 001 on the active account.

  2. In some cases it may be necessary to back out the account.

    Caution:

    DO NOT adjust statute expired years. DO NOTreprocess statute period returns or a return within 180 days of the ASED. See IRM 25.6.5.10.3,Correct Records on Expired Statute Periods.

    1. Input TC 040/041 to resequence the incorrect account to an IRSN.

    2. Zero out the IRSN account. Input TC 170.00 if TC 807 or transfer of a timely credit is required. If TC 170/176 is present, input TC 171. Use blocking series 05 with the appropriate hold code. Input a posting delay code for 2 cycles.

    3. Input TC 971 action code 001 on the IRSN to cross reference the valid TIN.

    4. Input TC 020 to the IRSN account with a posting delay code of 3.

    5. Close both control bases.

    6. Refile the return under the original return if no adjustment is necessary on the correct account.

    7. Recharge the return for the incorrect account to the correct account, if necessary.

21.6.2.4.5.6  (10-01-2005)
NOMRG-VEST Two Taxpayers Involved

  1. Determine if the returns are for separate entities.

    Caution:

    Individual accounts (e.g., husband and wife, parent and child, brother and sister) are separate entities and should never be merged.

  2. Do not request returns if filed by two entities. The returns are not related.

  3. Close the control bases as "no action" . The modules require no adjustment action.

21.6.2.4.5.7  (10-01-2005)
NOMRG-576

  1. A NOMRG-576 transcript is issued when a debit module or module with a TC 570 attempts to merge with a module containing a TC 576.

  2. Contact Examination for input of TC 577 to release TC 576. After TC 577 posts, continue adjustment action.

21.6.2.4.5.8  (10-01-2002)
NOMRG-576 One Taxpayer Involved

  1. When one taxpayer is involved:

    If Then
    Only one account contains a TC 150 Input TC 040/041 to resequence the account.
    There is a TC 150 on both accounts

    1. Input TC 041 to resequence the incorrect account to an IRSN using posting delay code for 2 cycles.

    2. Zero out the IRSN account. Input TC 170 .00 if TC 807 or transfer out of a timely credit is required. If TC 170/176 is posted input TC 171. Use blocking series 05, with the appropriate hold code.

    3. Input TC 971 action code 001 on the IRSN account to cross-reference the valid TIN.

    4. Input TC 020 to the IRSN account with posting delay code for 3 cycles.

21.6.2.4.5.9  (10-01-2002)
NOMRG-576 Two Taxpayers Involved

  1. Research for a valid TIN for the taxpayer posted to the incorrect account.

    If a valid TIN is determined and Then
    TC 150 has not posted to the module Input TC 040/041 to the incorrect account to resequence the account.
    TC 150 is present on both modules The data must be backed off the incorrect account. Follow procedures in IRM 21.6.2.4.5.3, NOMRG — DUP Two Taxpayers Involved, second IF/THEN statement, steps 1 through 5.
    TC 150 is posted on the correct valid TIN Combine the tax data.
    No TC 150 is posted on the correct valid TIN Reprocess the return.
    The return being processed is delinquent with a TC 140 present in the module Input TC 599 cc 18 and TC 971 action code 017.

  2. If you cannot determine a valid TIN, correspond with both taxpayers. Work as a scrambled SSN case, if applicable.

21.6.2.4.5.10  (10-01-2005)
NOMRG-400

  1. NOMRG-400 transcripts generate when:

    • A resequence fails because one or both accounts contain a tax module with a TC 400 freeze (account transfer out).

    • There is a tax module present for the same period in the other account.

    Note:

    A TC 400 is also generated when an attempt is made to post to a tax module with maximum transactions.

  2. Examine the accounts to determine if an account consolidation is required. If so, take the following action:

    1. Prepare Form 12810 requesting reversal of the TC 400.

    2. Attach a copy of the transcript to the memo and forward to the Accounting function.

    3. Suspend the case (follow local procedures) until you receive a reply indicating the TC 400 is reversed.

    4. Input TC 040/041 to consolidate the accounts, after reply is received.

21.6.2.4.5.11  (10-01-2005)
NOMRG-424

  1. NOMRG-424 transcripts generate when a resequence fails because one or both accounts contain a module with an unreversed TC 424.

  2. Contact Examination for instructions. After TC 424 is reversed, follow normal NOMRG-DUP procedures.

21.6.2.4.5.12  (10-01-2005)
NOMRG-896/898

  1. NOMRG-896/898 transcripts generate when a resequence fails because the "from" account contains a TC 896 or TC 898 within 6 years of the current date.

  2. Reverse the TC 896/898 per instructions in IRM 21.4.6, Refund Offset, and follow NOMRG—DUP procedures.

21.6.2.4.5.13  (10-01-2005)
NOMRG-930

  1. NOMRG-930 transcripts generate when:

    • Two accounts attempt to merge as a result of an entity transaction changing TIN

    • Both accounts contain a TC 930 posted for the same tax period

  2. Reverse TC 930 on the invalid segment and follow the procedures for NOMRG-DUP.

21.6.2.4.5.14  (10-01-2005)
NOMRG-RPS

  1. NOMRG-RPS transcripts generate when:

    • Two accounts attempt to merge

    • Both accounts contain modules for the same period

    • Both modules contain a TC 150 with multiple TCs 610 (one is an RPS)

    • The TC 610 and TC 150 DLNs do not match

    • The payment DLN carries the return DLN plus 400 in the Julian date and is read by the computer as a return

21.6.2.4.5.15  (10-01-2005)
NOMRG-RPS One Taxpayer Involved

  1. When one taxpayer is involved:

    If Then
    A TC 150 is on both the accounts or only on the incorrect account

    1. Resequence the incorrect account to an IRSN, using TC 040/041.

    2. Transfer TC 610 to the correct TIN.

    3. Zero out IRSN. Input TC 170 .00 if TC 807 or transfer out of a timely credit is required. If a TC 170/176 is present, input TC 171. Use blocking series 05 and Hold Code 4.

    4. Input posting delay code for 2 cycles for the credit transfer and adjustment.

    5. Input TC 971 action code 001 on the IRSN account to cross reference correct account.

    6. Input TC 020 to the IRSN with a posting delay code for 3 cycles.

    7. Consolidate data on the correct account, if necessary.
    A TC 150 is not posted on the correct account Reprocess the return.
    The return being input is delinquent and a TC 140 is present on the module Input TC 599 cc 18 and TC 971 action code 017.
    A TC 150 is only on the correct account

    1. Resequence the incorrect account to an IRSN using TC 040/041.

    2. Transfer TC 610 to the correct account. Use posting delay code for 2 cycles.

    3. Input TC 020 to the IRSN account with posting delay code for 3 cycles.

21.6.2.4.5.16  (10-01-2005)
NOMRG-RPS Two Taxpayers Involved

  1. Research for a valid TIN for the taxpayer posted to the incorrect account.

    If a valid TIN is determined AND Then
    TC 150 is not posted to the module Input TC 040/041 to incorrect account to resequence account.
    A TC 150 is present on both modules The data must be backed off the incorrect account.
    A TC 150 is posted on the correct valid TIN Combine the tax data.
    TC 150 is not posted on the correct valid TIN Reprocess the return per IRM 21.5.1,General Adjustments.
    The return being reprocessed is delinquent and a TC 140 is on the module Input TC 599 cc 18 and TC 971 action code 017.

  2. If a valid TIN cannot be determined, correspond with both taxpayers. Work as a scrambled SSN case, if applicable. Refer to IRM 21.6.2.4.2,Multiple Individuals Using the Same TIN.

21.6.2.4.5.17  (10-01-2006)
NOMRG-Scrambled SSN Transcripts

  1. NOMRG-SCRAMBLED SSN (NOMRG-XXSSN) transcripts are issued when a resequencing account fails to merge with the "To" account because the "To" account has an SCI 01, 10, 12, 13, 20, or 23 and MFR 08 in the module.

  2. Request the resequencing document and analyze intent and source of the information to determine if the open scrambled SSN case can be resolved. If information is sufficient, follow scrambled SSN procedures.

  3. Determine from the campus number, in the second name line of the scrambled account, which campus controls the scrambled SSN account.

    If Then
    The case is scrambled in another campus Forward the transcripts to that campus for resolution.
    The case is scrambled in your campus Request Form 3857 to determine the action taken.
    The scrambled SSN condition was resolved but the SCI was not updated Input the appropriate closing SCI.

21.6.2.4.6  (10-01-2005)
Reverse Validity (REVAL) Transcript

  1. REVAL means reversed TIN validity. REVAL transcripts generate from the invalid TIN of a failed merge. Apply the following procedures for REVAL cases.

  2. The transcript type is the abbreviated reason for the failed merge. Adjustments works the following transcripts:

    • REVAL-DUP

    • REVAL-VEST

    • REVAL-576

    • REVAL-400

    • REVAL-424

    • REVAL-RPS

    • REVALXXSSN

    • REVAL-RECR

  3. Consider erroneous refund and moving refund procedures when working no merge transcripts.

  4. Consider erroneous abatement and barred assessment procedures when working no merge transcripts.

21.6.2.4.6.1  (10-01-2005)
REVAL-One Taxpayer (One Sided)

  1. A one-sided REVAL is a successful merge posted to the invalid side of the TIN. Only one taxpayer is involved.

    If the resequence attempt Then
    Resulted from a revalidation The sort DLN is generated from SSA data.
    Resulted from input of an entity transaction (not a CP 54) The sort DLN block number is zero (IDRS).
    Resulted from a CP 54 The sort DLN block number begins with "8."

    Note:

    The DLN consists of the service center code, tax class 2, a zero, and the 9 digit TIN of the CN, and the list year digit.

  2. Input TC 041 with the taxpayer's correct first name line, using the year digit of the most recent module account. This forces the account to the proper segment.

21.6.2.4.6.2  (10-01-2005)
REVAL-DUP One Taxpayer Involved

  1. REVAL-DUP transcripts generate when:

    1. The SSA Data tape changes the validity of a Name Control (NC) and causes an attempted merge of two accounts.

    2. Each account contains a TC 150 for the same period(s).

  2. These transcripts generate automatically with the quarterly update of the SSA Data tape.

    1. Transcripts contain data on both the "to" and "from" accounts.

    2. REVAL-DUP transcripts may involve one or more taxpayers.

  3. Research the correct and incorrect accounts. If only one taxpayer is involved, take the following action on the incorrect account:

    1. Input TC 041 to resequence the account to an IRSN.

    2. Zero out the IRSN account after the merge to the IRSN has been completed.

    3. Input TC 170 .00, when zeroing the account, if TC 807 or transfer of a timely credit is required. If a TC 170/176 is present, input TC 171. Use blocking series 05, with hold code 4.

    4. Input TC 971 action code 001 on the IRSN to cross reference the valid TIN.

    5. Input TC 020 to the IRSN, with a posting delay code for 3 cycles.

  4. Take the following action on the correct account:

    1. Input an entity change in the same cycle as the back out of the IRSN account, for the latest period name line to correct the name and address.

      Note:

      A NOMRG-DUP case is created if the name is changed on the correct account before the resequence posts. DO NOT input an entity change if the NC is accurate.

    2. Analyze the returns to determine if adjustment action is necessary.

    If Then
    An adjustment is necessary Consolidate the returns on the correct account.
    No adjustment is necessary

    1. Input a TC 290 .00 two cycles after the action taken in (4) above.

    2. Use the appropriate refile blocking series.

    3. Attach both returns to the adjustment document.

  5. If the taxpayer received a refund under both the correct and incorrect accounts, follow erroneous refund procedures in IRM 21.4.5,Erroneous Refunds.

21.6.2.4.6.3  (10-01-2005)
REVAL-DUP Two Taxpayers Involved

  1. If a REVAL-DUP transcript generates with two taxpayers involved, follow instructions in "NOMRG-DUP," Two Taxpayers Involved.

21.6.2.4.6.4  (10-01-2005)
REVAL-VEST

  1. A REVAL-VEST transcript generates when a resequence fails and both of the following conditions exist:

    • A retention record is on one account and the same module is on the other account (either on retention or MF)

    • The SSA Data tape changes the validity of name control causing it to post to the invalid side

  2. Request retention MFTRA (valid and invalid same TIN).

    If Then
    Consolidation is unnecessary or impossible after the resequence attempt Destroy the transcripts.
    Consolidation is necessary (consider statute of limitations)

    1. Obtain an IRSN.

    2. Prepare Form 5248,Transfer Request, to transfer the incorrect account on the retention register to MF under the IRSN. See IRM 21.5.1,General Adjustments.

    3. Input TC 041 to resequence the invalid TIN to the IRSN.

21.6.2.4.6.5  (10-01-2005)
TC 370 Posts-One Account Has a TC 150

  1. When the TC 370 posts and for the same module, only one account has a TC 150:

    If Then
    The NC is not accurate on the account Input an entity change to correct the name for the latest period name line.
    An entity change was made on the correct account

    1. Input TC 041 to merge the incorrect account on the IRSN to the correct account.

    2. Use posting delay code 1.

21.6.2.4.6.6  (10-01-2005)
TC 370 Posts - Both Accounts Have TC 150

  1. When TC 370 posts and there is a TC 150 on both the correct and IRSN accounts for the same module, analyze them to determine if an adjustment action is necessary.

    If Then
    The correct account, same module, will not be adjusted Input TC 020 to the IRSN.
    The NC is not accurate on the correct account Input an entity change to correct the name for the latest period name line.
    The correct account's same module will be adjusted (e.g., 25% omission of income)

    1. Zero out the IRSN's same module. Input TC 170 .00 if TC 807 or transfer of a timely credit is required. If TC 170/176 is present, input TC 171.

    2. Use blocking series 05, with appropriate hold code.

    3. Input TC 971 action code 001 on the IRSN account to cross-reference the valid SSN.

    4. Input TC 020 to IRSN account with a posting delay code for 1 cycle.

    5. Adjust correct account's same module.

    6. Correct the name for the latest period name line in the same cycle as the back out of the IRSN.

  2. Adjust the correct account if the adjustment action is necessary for any other module.