21.2.4  Master File Accounts Maintenance (Cont. 1)

21.2.4.3 
Procedures for Accounts Maintenance

21.2.4.3.32  (10-01-2013)
Debit Balance, No Return - BMF (01 -X)

  1. Freeze is caused by a debit module with no return posted. Usually results from posting a credit reversal or a dishonored check when no credit is present. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information.

  2. If the balance is due to a dishonored check penalty only, abate the penalty. Do not attempt to secure the related tax return from the taxpayer or transfer the case to CSCO.

    • For paper checks and money orders, abate the penalty with TC 281, RC 065, and PRC 045 for IMF. For BMF, abate the penalty with TC 281 and PRC 045.

    • For electronic payments, abate the penalty with TC 281, RC 065, and PRC 015 for IMF. For BMF, abate the penalty with TC 281 and PRC 015.

  3. If the balance is the result of posting a dishonored check, TC 611 or TC 671, with no corresponding credit in the module:

    1. Request the document that created the freeze (87 doc code).

    2. Research other modules for the credit posting.

    3. Research RTR to request the original payment document (the DLN is on the document that created the freeze), if necessary.

    4. Determine which module the dishonored check or credit reversal belongs to; transfer debit. Refer to IRM 3.17.10.3, Unidentified Remittance File (URF).

    5. A valid and invalid account may require a merge. See IRM 3.13.2, BMF Account Numbers, and IRM 3.13.5, Individual Master File (IMF) Account Numbers.

  4. If the case is still not resolved, request a copy of the front and back of the check from the taxpayer.

    1. If a copy of the check is received, resolve the freeze conditions.

    2. If no response is received, input a dummy return to release the freeze condition and generate a balance due notice.

  5. If the freeze resulted from posting a manual refund (TC 840) with no corresponding credit in the module, request the document that created the debit balance.

    If Then
    The TC 840 posted to the incorrect account Move refund TC 840 to the correct account
    The credit posted to the incorrect account Transfer the credit to the correct account
    The return posted to the incorrect tax period Reprocess the return to the correct tax period
  6. If the transcripts contain a TC 360 and the module balance:

    • Is greater than ≡ ≡ ≡ ≡ ≡ , transfer the case to the appropriate Collection function. Indicate closed to appropriate Collection function on IDRS control base. See IRM 21.2.4.3.32(7) below for information on how to identify and route TC 360 transcripts.

    • Is ≡ ≡ ≡ ≡ ≡ or less and consists of the TC 360 amount, abate the TC 360 amount, causing the module balance to become zero.

      Exception:

      TC 360s for Installment Agreement User Fees on MFT 13 and 55 should not be abated.

  7. Identify and route TC 360 transcripts as follows:

    If Then
    TC 360 is for Lien fee identified by TXMOD with a TC 582 Route to Centralized Lien Unit in Cincinnati.
    TC 360 is for Installment Agreement fee identified by module going into status 60 at or about the same time Route to CSCO at appropriate campus.
    TC 360 is for Offer In Compromise (OIC) fee identified by TXMOD with a TC 480 input at or about the same time Route to Centralized OIC in Memphis.
    TC 360 is for Seizure expenses identified by TXMOD with a TC 670, DPC 06 Route to the Advisory Unit Function.

    Note:

    The TC 360 and the associated TC/status may not be on the same module. Research other modules in the account.

  8. If the freeze resulted from more than one credit reversal, check IMFOL or BMFOL for information.

    1. If it is a duplicate transfer, transfer back the erroneous amount to zero out debit balance account.

    2. See IRM 21.4.5, Erroneous Refunds, if a refund was issued despite the freeze.

    3. If no cross reference information is displayed on the transcript, check Accounts 6800 and 4620. If credit is located, transfer back to zero out debit account.

  9. IMF AM01 (-R freeze) category in use by IVO.

21.2.4.3.33  (03-12-2012)
Erroneous Credit Hold (02 K-)

  1. This freeze condition is caused when the module net balance credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but is not entirely refundable credits. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information.

  2. To resolve freeze, input TC 670 to reverse TC 606. If the credit is a TC 670, input TC 672/670. If the credit is a TC 610, input TC 612/670. The debit TC 672 or TC 612 must match the date of the original TC 670 or TC 610. The credit TC 670 must match the date and amount of the TC 606. To prevent an unpostable condition, use a posting delay code 1 on the credit side of the transfer.

  3. See IRM 21.6.3, Credits, to resolve non-refundable credits caused by a Doc Code 54 adjustment. If the non-refundable credit is caused by a TC 241 with reference code 699 and a previous TC 240 with reference code 618, route the transcript, using AMS and include a "Summary Print" in place of the transcript, to CSCO.

21.2.4.3.34  (10-06-2009)
Amended Return - No Original (03 E-)

  1. Caused when an amended return (TC 976/977) posts to a module without a TC 150. CP 29 (IMF), CP 190 (BMF– 4 cycles after posting), CP 293 (if open 420/424), initially identify this condition. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information.

  2. For a quick closure, analyze research and close the case if:

    1. The return was reinput as an original with the original DLN and posted in a later cycle; or

    2. A valid and invalid account merged, bringing a TC 150 to the module.

  3. If TC 971 Action Code 270 is on the account showing the amended return was previously returned to the taxpayer, input TC 971 Action Code 002.

21.2.4.3.34.1  (10-01-2012)
AM03 Resolution

  1. If a valid and invalid account need to be merged, route the case with documentation to the Entity Control function to merge the accounts.

  2. Determine whether the taxpayer filed an original return. View amended return document(s) on CIS. Order the TC 976 or TC 977 DLN that created the freeze if not available on CIS.

    Note:

    Do not order the TC 976 or TC 977 DLN if TC 971 Action Code 010 created the TC 976 or TC 977.

    If Then
    1040 was processed as 1040X. Reprocess as original per IRM 21.5.2.4.23, Reprocessing Returns/Documents.
    Other than processing error. Request copy of original return from the taxpayer.
    No reply. Prepare return from information on the amended return. Input as original. Retain the original DLN if valid.

  3. If an amended return (TC 976/ TC 977) posts to an incorrect TIN/tax period and the account for which it was intended does not contain a TC 150:

    1. Transfer any misapplied credits to the correct module.

    2. Reprocess the amended return to the correct module; use a new DLN.

    3. Circle out "G" code and any other "amended" indications written on the return.

    4. Circle out remittance amount, if applicable.

    5. Input TC 971 with Action Code 002 to release the "E" freeze. Identify XREF TIN/Tax period on the REQ77 input.

      Note:

      If TC 971 Action Code 010 with Doc Code 77 caused the amended return, reinput the return with a new DLN. Input TC 971, Action Code 002, to release the freeze.

  4. If an amended return (TC 976/TC 977) posts to an incorrect TIN/tax period and the account for which it was intended has a TC 150:

    1. Transfer any misapplied credits and adjust the tax to correct the module based on the amended return.

    2. Input TC 971 with Action Code 002 to release the "E" freeze and identify XREF TIN/tax period on the REQ77 input.

      Note:

      If TC 971 Action Code 010 with Doc Code 77 caused the amended return, reinput the return with a new DLN. Input TC 971, Action Code 002, to release the freeze.

    3. If a return is input to the Master File, no further action is required.

  5. If amended return (TC 976/TC 977) posts to an incorrect MFT and the taxpayer is not liable for filing the return (e.g., return posted to MFT 10 and account shows employment code W), input TC 971 with action code 002 to release the "E" freeze.

  6. Consider case resolved after taking the preceding actions. See IRM 21.5.1, General Adjustments, for additional information.

21.2.4.3.34.2  (11-24-2009)
AM03 Resolution for Other Cases

  1. If a TC 976/TC 977 DLN was not located through Files or CIS research, request a signed copy of the return and all schedules and attachments from the taxpayer. If a return is received refer to IRM 21.6.7.4.2.5 TC 150 Not Located - Duplicate or Amended Return Obtained or IRM 21.6.7.4.2.6 TC 150 Not Located - Duplicate/Amended Not Obtained.

    Note:

    If the TC 971 did not create the TC 977 input TC 971 Action Code 002 to prevent the issuance of an erroneous -A freeze.

  2. If unable to secure a copy of the return , leave credit balance on Master File and close case control "NOREPLY" .

  3. If unable to secure a copy of the return, and the module balance is zero, input TC 971 AC 002 to release freeze.

21.2.4.3.35  (10-01-2011)
Duplicate Return (04 -A)

  1. Generates after a duplicate return (TC 976) or amended return (TC 976 BMF/TC 977 IMF, IRAF) posts to a module with an original return (TC 150) posted. CP 36/CP 36A (IMF) and CP 193 (BMF) identify this condition. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information.

  2. If an adjustment was input and no further action is required, close the case.

  3. Use the following instructions to resolve this freeze condition:

    1. If the TC 976/977 return was returned to the taxpayer and there is not a credit balance on the account, input TC 290 .00 to release the freeze. No taxpayer contact is needed. You may determine if a return was sent back to the TP if Letter 178C was sent for IMF or Letter 4384C for BMF or Form 8009, We Need More Information To Process Your Amended Return, was sent for the year in question by the examiner handling CATG CODE "XRET" , "94X" "DUPF" base; and/or a posted TC 971 AC 270.

      Note:

      See IRM 21.5.3.4.2 , Tax Decrease or Credit Increase Processing and IRM 21.7.2.4.6.4, FICA Tax Adjustments, for additional information on amended returns returned to taxpayer.

    2. If the module contains an open C36F control (CP 36F), route the case, to the employee with the open control. It is not necessary to contact the employee working the case.

    3. Route all amended returns, claims, duplicate filings in Status 26 to the appropriate Revenue Officer group. See IRM 21.3.3.4.10.2.1 (4) , Amended Returns/Claims -Compliance Criteria.

    4. Before releasing any refund, determine if any Economic Stimulus Payment (ESP) amount is included in the credit causing the freeze. See IRM 21.6.3.6.13, REBATEREV Transcripts.

    5. Research account using CIS, AMS or Corporate Files On Line (CFOL) to verify whether or not the adjustment to correct the freeze condition posted to another module. Request the adjustment document only if necessary.

    6. If prior adjustment is incorrect or omitted, correct the account per the information available following applicable IRM procedures for the issues present.

    7. When an original, amended or duplicate return is posted to an incorrect TIN or tax period and should be reprocessed or backed out, input TC 971. See IRM 21.5.1.4.8, Transaction Code 971.

    8. If account reflects correct information, input TC 290 .00 to release freeze.

      Note:

      If original return and/or TC 976/TC 977 were secured, staple duplicate return behind original and use blocking series 00.

  4. If the case is still not resolved, and the returns cannot be secured, request a signed copy of the amended return and all schedules and attachments from the taxpayer. See IRM 21.5.1.5.4 , Viewing or Requesting Documents on CIS Cases, before requesting the return from the taxpayer. When reply is received, take corrective action based on response. If no reply received, resolve as follows:

    1. If a payment was submitted with the amended return, assess tax for the amount of the payment. If the account is in credit balance for more than the payment amount, reduce any refundable credit by the amount of the remaining overpayment.

    2. If a payment was not submitted with the duplicate return, input TC 290 .00 amount to release the freeze.

    Note:

    If the taxpayer submitted Form 1040X , Amended U.S. Individual Income Tax Return, with Form 8862, Information To Claim Earned Income Credit After Disallowance, route the EIC recertification case to Adjustments for consideration. See IRM 21.6.3.4.2.7.15, EITC Recertification.

21.2.4.3.36  (11-26-2008)
Examination DP Tax Hold Codes (05 -K)

  1. Caused by an unreleased Hold Code 1, 2, 4 adjustment action (TC 29X/30X) and a credit balance exists after posting. On Business Master File (BMF), it may be caused when condition code "N" (Joint Committee Case sent to Examination) posts to a Form 1120, U.S. Corporation Income Tax Return, module. See Exhibit 21.2.4-3., AMRH Freeze Table IMF/BMF, for more information.

    Note:

    If the account shows a TC 420/424, TC 421/425, and/or a TC 595, and ASFR created the TC 150, send the case to Exam.

21.2.4.3.36.1  (10-01-2013)
AM05 Resolution

  1. Research AMS, CFOL, and CIS to determine what caused the freeze, look for outstanding liabilities on the appropriate Master File.

    1. Before releasing any refund, determine if any Economic Stimulus Payment (ESP) amount is included in the credit causing the freeze. See IRM 21.6.3.6.13 (3), REBATEREV Transcripts.

    2. If the credit was held because documentary evidence required for decedent account refund was not received, obtain required documentation before releasing freeze. See IRM 21.2.4.3.40.1, Computer Condition Code (CCC) 3 or U-Coded Returns, and follow procedures to resolve the case.

    3. If the credit posted to the wrong module, transfer to the correct module before releasing freeze.

    4. If the freeze was set because of a Scrambled SSN, refer to IRM 21.2.4.3.40.1, Computer Condition Code (CCC) 3 or U- Coded Returns.

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    Note:

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  4. Consider case resolved after taking action indicated:

    1. If a liability exists in another module, release the freeze and let the credit offset. For debit balances, do not transfer a credit to a module containing a freeze or restricted condition that would prevent the computer from offsetting in, unless the credit belongs on the debit module (e.g., "—E" freeze, Master File Status 14, etc.).

    2. If a liability will be established on another module, follow the above instructions.

    3. If all liabilities are posted and satisfied, release the freeze.

    4. Forward -K freezes on carryback cases to Adjustments.

    5. Forward -K freezes from TC 30X adjustments, other than disposal codes 07, 11, or 12 to Examination.

  5. In certain cases, a TC 150 may incorrectly post to a module and a subsequent tax liability decrease results in a credit balance. Send correspondence to the taxpayer requesting the correct return for that period. If a reply is not received, see IRM 21.2.4.3.10, Applying Unresolved Credits, for procedures to transfer the credit. If a reply is received, process the return accordingly. Refer to IRM 21.5Account Resolution, if an adjustment must be input.

21.2.4.3.37  (11-26-2008)
Claim Pending (06 -W)

  1. Transcript is generated when the taxpayer makes a claim (unreversed TC 470) and an adjustment in process delays the Tax Delinquent Account (TDA) (other than Collection Closing Codes 94 or 99). See Exhibit 21.2.4-3., AMRH Freeze Table IMF/BMF, for more information.

  2. CSCO works all Claim Pending cases except 06—W cases with TC 470 cc 97; the area that handles Large Dollar cases works these. Route these transcripts, using AMS and include a "Summary Print" in place of the transcript, to CSCO; do not include in AMRH inventory.

21.2.4.3.38  (11-26-2008)
Automatic Data Processing (ADP) Credit to Non-Master File Liability (07 V-)

  1. These are IMF cases only and are generated on credit balance accounts when a TC 130 (Account Refund Freeze) is input to a Master File account because the taxpayer owes a tax liability on an account that cannot be reached by offset. CP 44 (IMF) generates when credits are available for refund. When a second credit posts, a new CP 44 will not generate if a prior CP 44 is unresolved. Certain other freezes, such as "R" , "P" , and "A," suppress the CP 44. Refer to Exhibit 21.2.4-3., AMRH Freeze Table IMF/BMF, for more information.

  2. CSCO works all of these cases. Route any transcripts received in AMRH to CSCO; do not include in AMRH inventory.

21.2.4.3.39  (10-01-2008)
Manual Refund (08 -X)

  1. Transcript is generated when one or more of the following conditions are present:

    1. TC 840 (Manual Refund) posted with no TC 150 posted.

    2. TC 150 posted with CCC O (pertains to pre-settlement refunds with(out) hardship–IMF, BMF), and no TC 840 posted.

    3. TC 840 and posted TC 150 is not coded with (CCC) Computer Condition Code O, and module balance is equal to or less than TC 840 amount with no TC 29X or 30X posted.

    4. On IMF, a manual refund for a claimed overpayment of excess Estimated Tax (ES) credits is pending. Transcripts issued for this situation show a module frozen by both J and X conditions. See IRM 21.2.4.3.25, Processing EXES-TC 840 Transcripts (J-/-X Freeze) .

    5. On IMF, a manual refund is pending on a module with CCC L (refund for first or second name line) or W (refund to second name line or to a person who is a stateside spouse of an Armed Forces member) and there is not a second name line for the refund period, or a later tax module exists. See IRM 21.2.4.3.20, Processing TRNS46 Cases.

21.2.4.3.39.1  (06-07-2013)
AM08 Resolution

  1. If both a TC 846 and a TC 840 post to the same module, determine if an erroneous refund was issued. Refer to IRM 21.2.4.3.11, Erroneous Refunds.

    Exception:

    A TC 840 with Blocking Series 6XX indicates that Refund Inquiry is waiting for notification to post a TC 841 credit. Route the case to the Refund Inquiry function.

    Note:

    When the erroneous refund involves a hardship manual refund, route these cases to the Erroneous Refund Team of the campus where the latest dated TC 84X was issued. See IRM 3.17.80 Exhibit 4, for a list or A/ER functions and their corresponding Erroneous Refund Coordinators.

  2. On remaining cases, request the document that created the freeze and any necessary account data. Close the case if:

    1. A return coded "O" (IMF or BMF) posted to the module with TC 840.

    2. A valid and invalid account merged resulting in a freeze release.

  3. Consider case resolved after taking action indicated if:

    1. A valid and invalid account merged on the TIN of the AMRH transcript, the module balance is a debit, and an erroneous refund is present. See above instructions for erroneous refunds.

    2. A valid and invalid account must be merged , route the case, using AMS and include a "Summary Print" in place of the transcript, to Entity.

    3. The TC 840 posted to the correct module and the TC 150 posted to an incorrect module. Reprocess the return; make necessary adjustments.

  4. For other conditions, use the following instructions:

    1. Ensure TC 840 was input on the correct module and TIN. Review cross reference TINs and joint accounts. If TC 840 was not input on the correct module and TIN, move TC 840 and applicable credits to the correct module and TIN. See IRM 21.5.2.4.23.10, Moving Refunds.

    2. The taxpayer is not liable for a return:

      BMF IMF
      If TC 840 was input on the correct TIN and module:
      • Input TC 590 or TC 591 CC 20 to release the -X freeze after the balance is resolved.

      • If the taxpayer filed a consolidated return (the manual refund document references Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax), input TC 590 or TC 591 CC 14 to release the -X freeze after the balance is resolved.

      Note:

      TC 59X is not valid for MFT 15. Close with no action.

      If TC 840 was input on the correct TIN and module and filing requirements were previously closed:
      • Close the case as no action.

        Note:

        -X freeze will not be released.

    3. The taxpayer is liable for a return:

      BMF and IMF
      If TC 840 was input on the correct TIN and module and the taxpayer is liable for a return to claim credit for a refund:
      • Send Letter 112C to request a signed return.

      • If the TP replies with a return, route the return to be processed.

      • If the taxpayer reply states they are not liable and they sign the affidavit statement from the 112C letter, the signed statement of non-liability can be used to prepare a zero tax "dummy return". Attach the signed affidavit statement from the 112C letter to the dummy return for processing.

      • If no reply is received after 45 days, close the case as no reply.

        Note:

        -X freeze will not be released.

    4. The TC 840 posted to incorrect module and the TC 150 posted to correct module. See IRM 21.5.2.4.23.10Moving Refunds.

    5. Freeze was created by posted TC 150 coded "O" without a TC 840 issued. Input a TC 29X with Priority Code 8 or prepare a manual refund for the credit balance. Compute interest and check for any outstanding debit balances prior to releasing the freeze.

    6. Both the TC 840 and the TC 150 without CCC "O" posted to the correct module and the case is not an erroneous refund, release the freeze. For both BMF and IMF, input TC 29X with Priority Code 8. If the module pertains to Form 1120S, U.S. Income Tax Return for an S Corporation or Form 1065, U.S. Return of Partnership Income, and there is an unreversed TC 055 in the entity, release the freeze and forward the case to Entity.

21.2.4.3.40  (10-01-2011)
Additional Liability Pending (09 -R)

  1. Caused by a credit balance module with an unreversed TC 570 with(out) a posted TC 150. On IMF modules, a TC 570 will generate and set a freeze if computer condition code 3 is present. See Exhibit 21.2.4-3., AMRH Freeze Table IMF/BMF, for more information.

  2. Based on specific postings (e.g., return with CCC "X" ; TC 291 with Priority Code 7; TC 670 with an unreversed TC 420/424; Form 1120F, U.S. Income Tax Return of a Foreign Corporation ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, in Status 14 going to credit balance). Consider the case resolved after taking the following action:

    1. Close the case if subsequent action released the freeze.

    2. Release the freeze and close the case if the credit module balance approximately equals accrued interest or the taxpayer paid twice.

    3. Request the document that created the freeze and any other documents needed. Cross reference account data and analyze research. If, after conducting CIS, AMS, CFOL and Remittance Transmittal Research (RTR) system research, you are unable to determine credit disposition, contact the taxpayer. Take appropriate action when reply is received.

  3. Refer to IRM 21.2.4.3.40.2, AM 09 Resolution, and IRM 21.2.4.3.40.1, Computer Condition Code (CCC) 3 or U-Coded Returns, when resolving AM 09 -R transcripts.

  4. Refer to IRM 21.2.4.3.40.3, AM-09 Follow-Up Transcripts, when resolving follow-up transcripts.

21.2.4.3.40.1  (10-01-2013)
Computer Condition Code (CCC) 3 or U-Coded Returns

  1. If a module is frozen because of unsubstantiated TC 806 withholding credit:

    1. Allow TC 806 withholding credit up to the amount shown on IRPTR documents. Adjust the account to allow the withholding credit using the withholding information found on IRPTR and input the Return Processable Date (RPD), with the date the information was found on IRPTR to prevent interest on the refund. If no information is reported on IRPTR, send the taxpayer Letter 12C requesting the supporting documentation needed to allow the withholding credit. Suspend for 45 days.

    2. If a reply is received, adjust TC 806 withholding credit as appropriate with the RPD of the taxpayer's response.

    3. If no reply is received after 45 days, initiate adjustment to decrease the unsubstantiated TC 806 withholding credit amount.

      Note:

      Initiating an adjustment to decrease the unsubstantiated TC 806 withholding credit may correctly create a debit balance on the taxpayer's account.

  2. If the taxpayer claimed Earned Income Tax Credit (EITC), transfer the EITC to the Excess Collection File (XSF - Account 6800). See IRM 21.2.4.3.10.1 Excess Collection File (XSF) for AMRH. This credit could be considered unprocessable until the W-2 is received. See IRM 21.6.3.4.2.7.1, EITC Eligibility Criteria.

  3. If an original return was CCC 3 or U coded due to missing signature(s), (See CC ENMOD Letter 12C paragraph information requesting missing signature), send Letter 12C or appropriate BMF letter to obtain the signed declaration. Suspend the case for 45 days.

    Note:

    Submission Processing no longer processes original returns submitted by taxpayers without signatures and will not CCC 3 or U code returns for missing signatures. CC ENMOD will no longer display the paragraph associated with missing signatures.

    1. If a reply is received with the signature after the return due date, you must correct the original ASED posted on the taxpayer's account. Input a TC 560, using FRM 77. See IRM 25.6.1.6.14 (2), Criteria for Establishing a Statute of Limitation Period. Input the new ASED (received date of the reply plus three years) in the EXTENSION-DT> field. Use the received date of the reply in the TRANS-DT> field.

      If Then
      The original unsigned return was filed on or before the RSED and the reply with signature is received. ( See IRM 25.6.1.6.15, When a Document Is Treated As Filed Under the IRC)
      • Correct the ASED.

      • Input a TC 290 .00 using the received date of the taxpayer’s reply as the RPD. See IRM 20.2.4.4.1, Updating RPD on Unprocessable Returns.

      • Attach/associate the jurat statement to the return.

      Note:

      If the signature is received after the RSED, input the received date of the original filed return in the Refund Statute Control Date (RFSCDT) field of CC ADJ54.

      The original unsigned return was filed after the RSED and the reply with signature is received
      • Correct the ASED.

      • Transfer the credits to Unidentified Remittance File (URF) or Excess Collection File (XSF). See IRM 21.2.4.3.10.1 Excess Collection File (XSF) for AMRH.

      • Input TC 290 .00 Blocking Series 98 or 99 as applicable to disallow and send Letter 105C.

      Reminder:

      Use Document Locator Number (DLN) blocking series 70 on REQ77 to avoid an unpostable condition.

    2. If no reply is received after 45 days and the RSED has not expired, research for a new address. If found, issue a new Letter 12C and suspend the case for 45 days. If no new address, close the case "NOREPLY" . Do not transfer the credit to Unidentified Remittance File (URF) or Excess Collection File (XSF). Input TC 971 AC 296 to show that credit research has been completed.

    3. If no reply is received after 45 days and the RSED has expired, transfer the credit to Unidentified Remittance File (URF) or Excess Collection File (XSF). See IRM 21.2.4.3.10.1 Excess Collection File (XSF) for AMRH.

  4. If the original return was filed jointly and one signature was missing, send a Letter 12C to obtain a signature declaration for the missing signature. Suspend the case for 45 days.

    1. If a reply is received with the missing signature, follow the instructions in 21.2.4.3.40.1 (3) (a), Computer Condition Code (CCC) 3 or U-Coded Returns, above.

    2. If the taxpayer response indicates that the second signature cannot be obtained due to divorce or inability to locate the spouse, change the filing status, and allocate income, deductions and credits using the return and information provided by the taxpayer. If an additional assessment is needed due to a change in filing status, treat these changes as examination adjustments. Route the case, using AMS and include a "Summary Print" in place of the transcript, to Exam for appropriate deficiency procedures. See IRM 21.2.4.3.22, IRS Prepared Returns.

      Note:

      If the taxpayer fails to submit sufficient information, do not attempt to compute separate liability or allocate income, deductions or credits.

    3. Follow the instructions in 21.2.4.3.40.1 (3) (b) and (c), Computer Condition Code (CCC) 3 or U-Coded Returns, above.

  5. If the taxpayer is deceased, request the return or the required documentation (e.g., Form 1310, court appointment documentation, etc.). See IRM 3.11.3.10.2. Documentary Evidence. If all required information is attached, See (5) (a) below. If the required documentation is not attached to the return, send Letter 18C to the taxpayer's estate requesting the missing information. Suspend the case for 45 days.

    1. If the required documentation is received, input a TC 290 .00 using a Hold Code 4, and an RPD of the taxpayer reply (or the date when the return should have been considered processable if all information was attached to original return). Also prepare Form 5792, Request for IDRS Generated Refund, and input a manual refund using CC RFUNDR. The account must be controlled on IDRS and monitored until the TC 840 posts.

      Note:

      If a missing Form 1310 or court document (which only involves who is able to receive the refund) is received after the return due date, you are not required to change the original ASED. If the tax return is unsigned, See (3) above.

    2. If no reply is received after 45 days, transfer the credit to the Unidentified Remittance File (URF) or Excess Collection File (XSF) and close the case "NOREPLY" . See IRM 21.2.4.3.10.1 Excess Collection File (XSF) for AMRH.

  6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  7. If the return has a Questionable Refund Program (e.g., QRP-19, QRP-23) stamp on it, close your control base through AMS. Review for existing open controls to determine if the transcript should be referred to an open control base. If there are no existing controls where the transcript issue should be sent, open a new control base using the same IRS received date to the Austin IVO IDRS number 0650199999. Use Status Code "A" enter "CLTOIVO" in the activity code field and use the 4 digit transcript type as the category code, i.e., "AM09" . IVO will utilize its inventory listing to work the cases.

  8. If it cannot be determined why original return was considered unprocessable, request return to see if all required information is attached to return.

    1. If all required information is attached, input a TC 290 .00 with an RPD using the date the original return should have been considered processable.

    2. If all required information is not attached, send the appropriate C-letter for the missing information and suspend for 45 days.

    3. If reply is received with the required information, input a TC 290 .00 with an RPD of the taxpayer reply.

      Note:

      If the missing information is a signature, follow the procedures in (3) above.

    4. If no reply is received after 45 days, transfer the credit to the Unidentified Remittance File (URF) or Excess Collection File (XSF) and close the case "NOREPLY" . See IRM 21.2.4.3.10.1 Excess Collection File (XSF) for AMRH.

    5. Add AMS narrative indicating what items are needed in order to process the return to allow for the release of the overpayment.

  9. If the entity does not have a complete address or a campus address is shown, research IDRS for a current address. See IRM 21.2.4.3.6, Undeliverable Correspondence. If a better address is not available, transfer the credit to Unidentified Remittance File (URF) or Excess Collection File (XSF) and close the case "UNDEL" . See IRM 21.2.4.3.10.1 Excess Collection File (XSF) for AMRH.

    Exception:

    Do not transfer withholding credit to XSF. See paragraph 1 above.

  10. If the freeze was set because of a Scrambled SSN (an open base with control category "SCRM" or "SSA2" , or Scrambled SSN Indicator 01, 10, 12, 13, or 20), send the transcript to be scanned via the Correspondence Imaging System (CIS) with the following information:

    • Document Type (Internal Transcript)

    • IDRS category (SCRM)

    • OFP (710–40052)

    • Scan to IDRS number (0830141335)

    • TIN

    • MFT

    • Tax Period

    • Name Control

    • Remarks: Please scan to IDRS number above. AMRH transcript is routed as: Scrambled SSN case per IRM 21.2.4.3.40.1

    • Employee Name and IDRS Number

    Exception:

    Do not refer cases with Scrambled Indicator 21, 22 or 24 (the Scrambled SSN issue has been resolved on these accounts).

  11. If the case has Scrambled SSN Indicator 21, 22, or 24 on Command Code ENMOD, transfer the credit to Unidentified Remittance File (URF) or Excess Collection File (XSF). See IRM 21.2.4.3.10.1 Excess Collection File (XSF) for AMRH.

21.2.4.3.40.2  (04-18-2013)
AM09 Resolution

  1. Consider case resolved after taking action indicated:

    1. Before releasing any refund, determine if any Economic Stimulus Payment (ESP) amount is included in the credit causing the freeze. See IRM 21.6.3.6.13, REBATEREV Transcripts and IRM 21.6.3.4.2.12Recovery Rebate Credit procedures. If a decedent account issue refer to IRM 21.6.3.6.6.10 (2) and IRM 21.6.3.6.6.10 (5)Decedent Account Issues.

    2. If the credit can be identified as an overpayment, (e.g., balance equals reversed penalty and interest amounts; taxpayer paid same amount twice), release to credit or refund.

    3. An invalid and valid account merged on the TIN of AMRH transcript, review data for possible freeze release and resolve accordingly.

    4. An invalid and valid account should be merged on either an AMRH transcript TIN or another TIN, resulting in a freeze release, route the case with documentation to Entity.

    5. The merge will not result in the module balance becoming zero or debit, release the TC 570 freeze one cycle prior to the merge. Coordinate with Entity to determine who will reverse the freeze.

  2. See IRM 21.2.4.3.29 Transcripts with Offshore Voluntary Disclosure Program (OVDP) Payments to resolve transcripts with OVDP payments.

  3. If another campus function is working the case, contact that area and request status and expedite action; determine if the case can be transferred.

  4. Refer to IRM 21.2.4.3.18, Integrity & Verification Operation (IVO) and Criminal Investigation (CI), Transcript Issues, if the module contains a TC 971 AC 052/134/199/617.

  5. If the module contains an open C36F control (CP 36F - DUPTIN Filing Condition), with TC 971 AC 151, route the case using AMS and include a "Summary Print" in place of the transcript. It is not necessary to contact the employee working the case.

  6. If the module contains a DUPTIN issue, route the case using AMS reroute function. Attach AMS "Summary Print" to Form 3210 and send to Brookhaven Accounts Management, Mail Stop 501-A, or Philadelphia Accounts Management, Mail Stop BLN 3-J23.134 for international returns.

    Exception:

    See (7) below for special procedures on joint returns with no CP 36F on secondary SSN.

    Exception:

    If the DUPTIN case (X-REF account on the TC 971 AC 151) was previously closed, route the transcript to the area that closed the case.

    Example:

    If Brookhaven or Philadelphia Accounts Management referred the CP 36F case to another area, e.g., Exam, ID Theft, etc., Do not route the transcript to Brookhaven or Philadelphia. Route the transcript to the area that the case was closed to.

    Exception:

    Do not route cases to IDRS control 0830141335 with category IDT1/IDT3. Monitor IDRS until the case has been reassigned and route to that area.

  7. When researching DUPTIN filing conditions on joint returns, additional research is needed. Take the following actions to resolve the account:

    If And Then
    TC 971 AC 151 with TC 570 on joint return.
    • No open C36F control on secondary SSN.

    • No return on CC IMFOL but return on CC TRDBV.

      Note:

      Return was deleted or voided by Submission Processing.

    • The information on the joint return is valid.

    • Release refund using CC REQ77 and with a TC 571.

      Note:

      Do not forward to Brookhaven or Philadelphia.

  8. If the TC 570 freeze was applied as a result of an adjustment (Doc Code 54), review the reason for the adjustment and determine if it was completed correctly. If necessary, complete the adjustment and release the freeze. If no action is needed, release the freeze.

  9. If a payment in the related module is more than the computer-generated write-off (TC 606), use Doc Code 24 with TC 672 (using the date of the posted TC 670 date and the amount of the write off ) and TC 670 for the write-off date and amount prior to releasing the -R freeze. This generates TC 607, which reverses the TC 606. To prevent an unpostable, use a posting delay code (1 cycle) on the credit portion of the transfer document.

  10. If the case is still unresolved, analyze credits as follows:

    1. If the taxpayer requested a credit elect on the return, transfer the overpayment to the next year's tax; use TC 830 on the debit side and TC 710 on the credit side. The transaction date is either the payment received date or the return due date (plus one month for MFT 02, Form 1120, U.S. Corporation Income Tax Return).

    2. If applicable, contact the taxpayer and correct as taxpayer intended. Refer to IRM 21.2.4.3.10., Applying Unresolved Credits, to transfer the credit if no reply is received.

21.2.4.3.40.3  (12-06-2011)
AM09 Follow-Up Transcripts

  1. A follow up transcript will generate when the condition on the original AM09 was not resolved.

  2. Follow procedures below if no signature was obtained and the RSED has not expired:

    • Research for a new address since the last Letter 12C was issued on the original AM09.

    • If no new address, close case "NOREPLY" .

    • If new address is found, issue a new Letter 12C to the new address and suspend the case for 45 days.

    • If a response is received, refer to IRM 21.2.4.3.40.1, Computer Condition Code 3 or U Coded Returns.

    • If no reply is received after 45 days, do not transfer the credit to Unidentified Remittance File (URF) or Excess Collection File (XSF). Close the case "NOREPLY" and input TC 971 AC 296 to show that credit research has been completed.

  3. Follow procedures below if no signature was obtained and the RSED has expired:

    • Research for a new address since the last Letter 12C was issued on the original AM09.

    • If no new address, transfer the credit to the Unidentified Remittance File (URF) or Excess Collection File (XSF) and close case "FORM8758" . See IRM 21.2.4.3.10.1 Excess Collection File (XSF) for AMRH.

    • If new address is found, issue a new Letter 12C to the new address and suspend the case for 45 days.

    • If a response is received, refer to IRM 21.2.4.3.40.1, Computer Condition Code 3 or U Coded Returns.

    • If no reply is received after 45 days, transfer the credit to Unidentified Remittance File (URF) or Excess Collection File (XSF) and close case, "NOREPLY" See IRM 21.2.4.3.10.1, Excess Collection File (XSF) for AMRH.

    • If no reply is received after 45 days for 3-U coded returns, see IRM 21.2.4.3.40.1, Computer Condition Code 3 or U Coded Returns.

21.2.4.3.40.4  (01-15-2010)
Unreversed TC 570, No Return

  1. If the tax module has an unreversed TC 570 credit balance and no return posted, consider the case resolved after taking the following action.

  2. Close the case if:

    1. TC 150 posted in a later cycle; the module must also be in zero or debit balance.

    2. All credits were transferred to another module.

    3. In a later cycle, IDRS indicates it is in delinquency status, Master File code 02 or 03. Input TC 571 to release the -R freeze.

  3. Determine if the credit should be transferred to another period or TIN.

  4. If some of the credits were transferred to another module, determine if remaining credits should also be transferred. Transfer credit, if appropriate.

  5. If a return incorrectly posted to another module, reprocess return to correct module and make necessary adjustments.

  6. If a return was not input, process the return. Release the freeze only if the credits in the module are claimed on the return. If the credits are not claimed, resolve the remaining credits before releasing the freeze.

  7. If a credit transfer with Doc Code 24 or 34 was input on the module, research the account via RTR and RTVUE to determine if action is correct. If credit transfer was correct contact taxpayer for return. If not correct, revise the action.

  8. If a different entity is found, research that account; transfer credit, or merge accounts, as appropriate.

  9. If, after all actions have been taken, the case is still unresolved, send 112C letter requesting return. If reply is received, process the return. If no reply, input TC 571 to release the R freeze, and allow CP 80/080 to generate when AMRH criteria is met. Leave credit on Master File and close case control,"NOREPLY."

21.2.4.3.41  (10-01-2013)
VERFPYMT Transcripts

  1. VERFPYMT transcripts generate when a payment posts to a debit balance module resulting in a credit balance over ≡ ≡ ≡ ≡ . The VERFPYMT transcripts generate on a daily basis. The purpose of the transcript is to determine if the payment(s) belong to the taxpayer, using the following steps.

  2. If there is a multiple freeze condition (i.e., -W, -V, -L) on the module, follow the procedures for the specific freeze.

  3. If a CP 86 notice was issued:

    1. and there is an open CP 86 control, close your IDRS control base to the open CP 86 control

    2. and there was a prior CP 86 issuance that was not resolved, follow procedures in IRM 21.3.1.4.51.2, Adjusting CP 86 Accounts

  4. Research Integrated Submission and Remittance Processing (ISRP) or RTR for check copies and payment documents for the payment(s) that created the credit balance to determine whether the credit posted correctly.

  5. If payment posted to the correct taxpayer or module and the module does not contain a recently posted, abated, or pending assessment, look for an open control.

    1. If module contains an open control, contact the controlling employee to determine if you should route the case to the controlling employee.

    2. If module does not contain an open control, release the -R freeze to allow refund or offset.

    3. See IRM 21.2.4.3.4, Accounts Maintenance Correspondence, when working VERFPYMT transcripts for guidance/criteria on sending a closing letter to the taxpayer.

  6. If payment posted to the incorrect taxpayer or module, and you can identify the correct taxpayer or module:

    1. Transfer the credit to correct taxpayer or module. See IRM 21.5.8 , Credit Transfers.

  7. If payment posted to the incorrect taxpayer or account and/or you cannot identify the correct taxpayer and/or account:

    1. Ensure TC 570 is posted to prevent payment from refunding.

    2. Send Letter 1687C Unidentified Payment/Credit, to taxpayer whose account has credit. Monitor the case for 45 days.

    3. When reply is received, apply credit as taxpayer requests.

    4. If taxpayer indicates payment is not theirs, or if no reply is received, transfer credit to the Unidentified Remittance File (Account 4620) or Excess Collections (Account 6800) as appropriate. See IRM 21.2.4.3.10, Applying Unresolved Credits.

  8. If payment is scheduled for release, and this will cause an erroneous refund, it may be possible to stop the refund with CC NOREF. See IRM 21.4.1.4.10, Refund Intercept CC NOREF.

    Note:

    With implementation of CADE2, CC NOREF "P" is only available for IMF if TC 846/TC 840 has not posted. NOREF may still available to BMF after TC 846/TC 840 has posted.

  9. If payment erroneously refunded, refer to IRM 21.4.5, Erroneous Refunds.

21.2.4.3.42  (10-04-2012)
Refund Repayment, Cancellation, or Deletion (10 P-)

  1. This freeze is caused by a credit balance module with an unreversed TC 720 (Repayment), TC 841 (Cancellation) or TC 842 (Deletion–BMF only). The module is frozen from offset and refund. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information. See IRM 21.4.3, Returned Refunds/Releases, for returned refund information. Refer to IRM 20.2, Interest, to determine if interest is due to the taxpayer when releasing the P- freeze.

  2. Consider these cases resolved if the account indicates:

    1. Duplicate refundable credits; initiate adjustment action.

    2. Refund is due; release freeze after evaluating research.

  3. On remaining cases, research as necessary. Check IDRS with BRTVU/RTVUE, examine both the entity at the time of the refund and the current entity; request data from cross-referenced accounts, payment vouchers involved with the credit balance, and the return, if necessary. TC 841 can be divided into four categories:

    1. Recertified: Regional Financial Center (RFC) recertifies refund for reissuance. TC 841 and duplicate TC 846 post the same cycle. Blocking series and serial number of TC 841 DLN is 88888 (no "P" freeze) or 88899 ("P" freeze).

    2. Intercepted: Campus intercepted refund check. The blocking series and serial number of TC 841 DLN is 55555, 77798 or 77799.

    3. Returned: Check is returned to RFC or the IRS (IRS returns check to RFC). Blocking series and serial number of TC 841 DLN is 99999 or 88888. Send 407C letter to the taxpayer, requesting the reason for the returned refund.

    4. Direct deposits: Returned to the RFC by financial institutions post as TC 841 with block and serial 77777. If the 77777 is erroneously missing, a "P-" freeze results. See IRM 21.4.1.4.8.1(3), Direct Deposit Reason Codes, for further information.

    Note:

    Checks returned to the RFC for reasons other than undeliverable post as TC 841 with block and serial number 99999 and set as "P" freeze. On accounts with this transaction, check with the Refund Inquiry team for any open cases before contacting the taxpayer.

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. Resolve case by taking the following action:

    1. Case is being worked by another campus function; contact that function for status and request expedite action.

    2. An outstanding balance exists on another module; transfer the credit, or release freeze, as applicable.

    3. Each spouse received a refund; start erroneous refund action.

    4. An assessment is being input to the Master File; no further action is necessary.

    5. Duplicate Federal Tax Deposits (FTDs) were credited to the module; verify and take appropriate action.

    6. An assessment is due (e.g., payment voucher is notated "941C" ), input adjustment.

  6. If case is still unresolved, send a 407C letter to the taxpayer, requesting disposition of the credit. If no reply, or if the 407C letter is returned as undeliverable and you cannot obtain a more current address, transfer the credit to either Account 6800 or 4620.

  7. Initiate adjustment action to TC 806 for invalid (unsubstantiated) withholding credits. See IRM 21.2.4.3.10, Applying Unresolved Credits, for valid (substantiated) withholding credits and residual credits (cash remittance).

21.2.4.3.43  (11-26-2008)
Advance Payment (11 -F)

  1. These transcripts generate when a TC 640 (Advance Payment) posts and one of the following conditions exist:

    1. TC 300 posted with 23c date earlier than the TC 640 date.

    2. TC 150 posted without a subsequent TC 300.

    3. No TC 240 in Civil Penalty module.

    4. The TC 150, TC 640 and TC 300 appear to have posted timely and there is no regular module balance. See Exhibit 21.2.4-3., AMRH Freeze Table IMF/BMF, for more information.

21.2.4.3.43.1  (12-14-2011)
AM11 Resolution

  1. See IRM 21.2.4.3.29, Transcripts with Offshore Voluntary Disclosure Program (OVDP) Payments, to resolve transcripts with OVDP payments.

  2. If TC 300 posted with 23c date earlier than the TC 640 and:

    1. The payment resulted in a credit balance and additional liability is to be posted, or if the case was transferred to Appeals, no further action is necessary; consider the case closed.

    2. An outstanding liability exists in another module, transfer credit (excess amount).

    3. The TC 640 was used in error, reverse the TC 640 and post correct transaction code. To release the freeze, correct all TC 640s used in error with a TC 642/670; use bypass indicator 1, and a designated payment code (DPC) 00, on the credit portion of the DRT24, when transferring a misapplied payment without a DPC. See IRM 21.5.8.4.2(5) , Credit Transfer Input on IDRS.

    Example:

    The taxpayer paid the additional assessment twice. Both payments were input as TC 640 but only one posted with a date prior to the assessment. The account is in credit status with a -F freeze. To release the freeze, correct the payment made after the assessment with a TC 642/TC 670 on a DRT24.

  3. If no subsequent TC 290/300, examine the tax module for information or request the document via RTR of the payment posted to the Master File. If the payment was:

    1. Processed with the wrong transaction code, use DRT24 to change the transaction code. Use a bypass indicator on credit portion.

    2. Misapplied, transfer the credit to the intended period; do not release it to offset.

    Note:

    If the credit cannot be resolved using the above, contact the taxpayer to determine why the payment was submitted; request the return if necessary. If no reply from the taxpayer, follow the instructions in (3) or (4) below as appropriate.

  4. If the TC 640 is valid, the related TC 290/TC 300 never posted to the tax module and AMDIS indicates there is an open module controlled to Appeals or Examination, coordinate with the responsible function.

    1. If they will accept the issue, route the case. Take no further action.

    2. If they will not accept the issue or are unable to locate the tax return, notate this with an AMS narrative. Prepare assessment using Form 2859, Request for Quick or Prompt Assessment. The module must be monitored on IDRS until the assessment posts to ensure the correct posting of tax.

  5. If the case is not controlled by Examination or Appeals on AMDIS or there is no TC 420/424 and the module contains a valid TC 640, make the proper assessment.

    1. Refer to IRM 21.2.4.3.3, Civil Penalty Modules, if the TC 240 did not post to the civil penalty module. Contact the proper area prior to making an assessment.

    2. If the TC 150, TC 640 and TC 290/TC 300 posted and there is no regular module balance, input a TC 642TC /670 with a bypass indicator on the credit portion of DRT24.

  6. If the module contains a TC 922 and an Underreporter process code posted, and transcript appears to be a result of or related to Automated Underreporter (AUR), refer to the chart below to determine if you should route to the AUR function at the campus that originated the TC 922.

    If the last process code is Then
    09, 30, 34, 54, 55, 57-60, 75-79, 81, 95, 97-99 Case is open in Underreporter. Route, using AMS and include a "Summary Print" in place of the transcript, to AUR. The first two digits of the TC 922 DLN indicate where the case is assigned.
    10,15, 18, 39, 47, 48, 51, 52, 69, 70-74, 89, 91, 92, 93 or 96 Case was worked and closed by Underreporter with no change to the tax liability and/or refundable credits. If necessary, route the case, using AMS and include a "Summary Print" in place of the transcript, back to AUR. If no corrective action is needed, release the freeze by changing the payment with a TC 642/TC 670 on a DRT24.
    20, 53, 67, 68, 87, 88, 90 or 94 Case was worked and closed by Underreporter with an adjustment to the tax liability and/or refundable credits. If necessary, route the case, using AMS and include a "Summary Print" in place of the transcript, back to AUR. If no corrective action is needed, release the freeze by changing the payment with a TC 642/TC 670 on a DRT24.

21.2.4.3.44  (11-26-2008)
Credit, No Return (12 -Y)

  1. AM12 transcripts generate on AMS for IMF and BMF credit balances ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ with no posted returns. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information.

  2. The following exceptions do not generate 12-Y transcripts or CP 80/080 notices.

    Exceptions that do not generate 12–Y transcripts or CP 80/080 notices
    Module is in Master File Taxpayer Delinquency Investigations (TDI ) Status 02, 03, or 06.
    TC 976 (Duplicate Return) posted.
    Unreversed TC 590 (Not Liable This Period)
    TC 591 (No Longer Liable)
    TC 593 (Unable to Locate Taxpayer)
    TC 594 (Return Previously Filed This Period)
    TC 595 (Account Referred to Examination)
    TC 597 (Return Surveyed)
    TC 598 (Return Shelved)
    Unreversed TC 570 (Additional Liability Pending)
    TC 140 (IRP Delinquency Inquiry)
    TC 141 (Delinquency Inquiry)
    TC 520 with Closing Code 81 or 85–89.

  3. Credit, no return, cases with TC 610 generate a "dummy" statute transcript two (2) years and six (6) months from the payment date or return due date, whichever is later.

21.2.4.3.44.1  (08-08-2011)
AM12 Transcript Resolution ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  1. When an AMRH 12 transcript is generated, a CP 80 (IMF) or CP 080 (BMF) notice will be sent automatically to the taxpayer, requesting a signed copy of a return.

  2. Whenever a CP 80/080 notice is issued, a TC 971 with Action Code 297 is automatically generated indicating the CP 80/080 issuance.

  3. Analyze the account for quick closure. Close the case if:

    • TC 150 posted in a later cycle.

    • All credits were transferred to another module.

    • Module becomes Status 02, 03, or 06, in a later cycle except TC 610/611 and TC 976/977 cases.

  4. If other account modules have an open Taxpayer Delinquency Investigation (TDI) or other modules are in TDI notice status and filing requirements are open, input a TC 474 with 01 cycle to initiate a TDI notice to CSCO. Note the following exceptions:

    • TC 610/611 cases

    • TC 976/977 cases; Form 1120s with Mail File Requirement (MFR) 19 (Professional Service Corporation) cases.

  5. Research CC SUMRY for TDA/TDI Assignment Codes (TSIGN Codes) to determine if account is assigned to a Revenue Officer or other employee (may be for another module). Coordinate with that employee. For more information on TSIGN Codes, refer to Document 6209.

  6. Suspense the transcript for 45 days (70 days for overseas taxpayers) from the applicable CP 80/080 mail-out date to allow for a reply to the CP 80/080.

21.2.4.3.45  (06-11-2012)
AM12 Transcript and CP80/080 Resolution – Taxpayer Replies to CP 80/080

  1. If the taxpayer replies with a signed copy of the return, check IDRS to verify TIN, name, and that there is no pending or posted return on the account prior to routing the return to the appropriate area for processing. See IRM 5.19.2.5.4.5.12, IMF Response with Original Return or IRM 5.19.2.5.5.4.10, BMF Response with Original Return(s). If the taxpayer submits a return and a TC 610 (with Doc Code 70 or 76) is posted on the module, use the TC 610 received date as the return received date. If the module contains a TC 460 (Extension of Time for Filing) and a TC 610 with the same DLN, change the TC 610 to TC 670. If the credits on the module are other than TC 610 (e.g., estimated tax payment(s), credit elect), use the received date of the return received with the CP 80/080.

    Note:

    CP 80/080 notices printed after January 1, 2012 will contain a 2-D barcode. IMF CP 80 notices printed after July 1, 2012 will have the SSN redacted/masked (e.g., XXX-XX-1234) to help safeguard against possible ID theft. In order to identify the account, a hand held barcode scanner must be used to read the taxpayer account information. If the scanner cannot read the barcode, Command Code (CC) TPIIP can be used. For more information on the CC, refer to IDRS Command Code Job Aid located on Servicewide Electronic Research Program (SERP) under IRM Supplements.

  2. If the taxpayer states he/she will be filing the return or sending in a copy of the return, close CP 80/080 case control "TP2FILE" . On AM12 transcript cases, close the case on AMS with "MISC" . Enter "TP2FILE" as a narrative on AMS.

  3. If the taxpayer's reply indicates an entity problem that AMRH cannot resolve, route the case to Entity.

  4. If the taxpayer states they are not liable for the return and credit remains on the module, send Letter 112C to notify the taxpayer a return must be filed to claim any refund due. Suspend the case for 45 days.

    1. If the taxpayer reply states they are not liable and they sign the affidavit statement from the 112C letter, the signed statement of non-liability can be used to prepare a zero tax "dummy return". Attach the signed affidavit statement from the 112C letter to the dummy return for processing to address the credit.

    2. If no reply is received after 45 days, close the case as no action.

  5. If the taxpayer reply states they are not liable for the return and no credit remains on the module, see IRM 21.2.4.3.17, Taxpayer No Longer Liable to File Return.

  6. If the taxpayer submits an unsigned return, send the return for processing and Submission Processing will contact the taxpayer for a signature.

  7. If the taxpayer indicates payment(s) and/or credit(s) were misapplied, input appropriate credit transfer(s). See IRM 21.5.8, Credit Transfers.

  8. If the taxpayer is deceased, but the surviving spouse indicates that he/she filed a return as the primary taxpayer, research the account and apply credit, as appropriate.

21.2.4.3.45.1  (11-17-2011)
AM12 Transcript Resolution – No Reply to CP 80/080

  1. If the taxpayer has not replied after the 45 day suspense period has expired, request and analyze all available research (e.g., credit posting voucher; RTR (Remittance Transaction Research); cross-reference TIN research; CIS information; etc.).

    Note:

    Tax examiners who work AM12 transcripts for MFT 46 should follow the procedures in IRM 21.7.7.5.4, Tax Exempt Bond Procedures, for these cases.

    Note:

    If the transcript contains TC 670 (payments) or TC 610 (payment) and TC 460 (extension request) with matching DLNs, it is not necessary to request the payment document. If a TC 610 is posted, change the payment to a TC 670 payment using the date shown on the original TC 610 payment.

  2. If a TC 59X was input after the transcript was issued and the credit was not resolved, route to CSCO.

  3. If a return correctly posted to another module, transfer the credit. See IRM 21.5.8, Credit Transfers.

  4. If the transcript consists of estimated tax credits and a joint return was filed under the spouse’s SSN, verify all TC 806s on IRPTR. If IRPTR does not have the information, request the return to verify the credit amounts. If the return was filed electronically, and IRPTR does not have the information, use the withholding shown on IMFOL as supporting documentation.

    1. If the estimated tax payments were allowed as withholding credit, adjust with TC 807 and a hold code, prior to transferring the payments.

    2. If the primary spouse is deceased, check the secondary spouse for a return (not necessarily joint) and apply credit, if warranted.

  5. If the filing requirements were deleted on the account module (e.g., 03 or 51 on Form 941, Employer’s QUARTERLY Federal Tax Return), do not forward to CSCO.

    1. Determine if a return is filed or is due for a prior period. Contact the taxpayer before reopening filing requirements on your transcript.

    2. If the taxpayer filed Form 945, Annual Return of Withheld Federal Income Tax, or claimed gambling or backup withholding payments in prior years, and there are no other employment tax (Form 941, Employer’s QUARTERLY Federal Tax Return, Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return) OBLs, transfer the credits to the MFT 16, Form 945, Annual Return of Withheld Federal Income Tax, account for the current period. If Form 945, Annual Return of Withheld Federal Income Tax, filing requirements are not in place, establish filing requirements, or send request to Entity to do so (per local procedures), before transferring payments.

    3. If the requested return is received with a late reply, process as an original. Verify any payments.

  6. If the return incorrectly posted to another module, initiate adjustments.

  7. If some of the credits were transferred to another module, determine if the remaining credits should be transferred; transfer credit, as appropriate.

  8. If a different entity is found, a secondary SSN or an EIN, research that account:

    1. Transfer credit if the accounts are not the same.

    2. If the accounts are for the same taxpayer and the accounts should be merged, send the case with documentation to Entity.

    3. If the same SSN shows as a primary SSN on one account and also as secondary on another account for the same tax period, a multiple filer case is created. Route the case to Entity.

  9. If TC 595 is posted and there is no TC 290/300 present, route to Exam.

  10. If the credit is an estimated tax payment for a minor child whose parent filed a Form 8814, Parents’ Election To Report Child’s Interest and Dividends, electing to include the minor's dividends or interest on the parent's Form 1040, U.S. Individual Income Tax Return, transfer or refund the credit, as appropriate.

  11. If no response is received after 45 days, take the following action:

    1. Input TC 971 AC 296 to show that credit has been completed.

    2. Leave credit on Master File and close case control, "NOREPLY."

21.2.4.3.45.2  (02-22-2008)
Taxpayer Contact for Unresolved AM12 Transcript Cases

  1. On unresolved AM12 transcript cases, where the taxpayer has not replied to the CP 80/080 and all possible research has been completed, initiate telephone contact to determine proper disposition of unresolved payment(s) or credit(s).

    • Research IDRS, RTR, CIS or Directory Assistance to locate a taxpayer telephone number.

    • If you cannot get a telephone number from above research, research the internet per local management guidelines to obtain a contact telephone number. Utilize websites available to the general public (e.g., Google, SEC, EDGAR, VIVISIMO, and SWITCHBOARD).

  2. Add an AMS narrative to document the research tools used to obtain telephone number. Include the telephone number, date and time of telephone call and whether or not a successful contact is made. If successful contact is made, document where taxpayer wants payment(s) and/or credit(s) applied to, if not applied properly. Input any appropriate credit transfer(s), per taxpayer’s statement. See IRM 21.5.8, Credit Transfers, for more information.

  3. If taxpayer states during phone call that credit(s) and/or payment(s) were correctly applied to account, explain we need a newly signed copy of the return, including all applicable schedules and attachments.

    Note:

    If the taxpayer is deceased, and the representative or surviving spouse states that credit(s) and/or payments(s) were correctly applied to the account, but the surviving spouse filed a return as the primary taxpayer, research the account and apply credit, as appropriate. Do not ask the representative or surviving spouse for a copy of the return.

  4. Request reply within 30 days and hold case in suspense status for 45 days. Take appropriate action when reply is received.

  5. If the taxpayer replies with a copy of the return, or indicates payment(s) and/or credit(s) were misapplied, route the return for processing, or input credit transfer(s). See IRM 21.2.4.3.45, AM12 Transcript and CP80/080 Resolution – Taxpayer Replies to CP 80/080.

  6. If no response is received after 45 days, take the following action:

    1. Input TC 971 AC 296 to show that credit research has been completed.

    2. Leave credit on Master File and close case control,"NOREPLY. "

  7. Systemic generation of Notice CP 80/080 will continue until statute criteria is met.

21.2.4.3.46  (01-11-2008)
Notice CP 80/080 Issued Without a Transcript

  1. If an AMRH 12 transcript is not generated because it does not meet the dollar amount tolerance of ≡ ≡ ≡ ≡ , a CP 80 (IMF) or CP 080 (BMF) notice will be sent automatically to the taxpayer, requesting a signed copy of a return.

  2. When a CP 80/080 notice is issued, a transaction code (TC) 971 with an action code (AC) 297 is automatically generated reflecting the CP 80/080 issuance.

  3. Another CP 80/080 will be automatically sent to the taxpayer every 26 cycles until the credit balance condition is resolved. However, six months prior to the statute date, a final notice, CP 81 (CP 081 for BMF), will be issued to the taxpayer.

  4. Receipt & Control forwards CP 80/080 responses to Accounts Maintenance, and CP 81/081 responses to Statute Function.

    Note:

    Route CP 80/080, Type AM18 responses to CSCO.

  5. The CP 80/080 responses must be controlled with the same category code (AM12) and will have the same aging criteria as transcripts. Use the IRS received date on the response to control the case.

  6. See IRM 21.2.4.3.45 AM12 Transcript and CP80/080 Resolution – Taxpayer Replies to CP 80/080, and follow procedures, when working CP 80/080 responses.

21.2.4.3.47  (01-11-2008)
Form 1120 MFR 19

  1. A delinquency analysis is not required for Form 1120, U.S. Corporation Income Tax Return, with MFR 19 (Professional Service Corporation). Do not input TC 474 with 01 cycle to initiate a TDI; do not send the case to CSCO.

    1. Follow all normal research and analysis prerequisites.

    2. Contact the taxpayer, establish filing requirements, transfer credits, or process the return, as appropriate.

    3. If no response from taxpayer or if unable to obtain a return, leave credit on Master File and close case control, "NOREPLY" .

21.2.4.3.48  (10-01-2008)
Form 8752 and Form 720, Abstract 11 Accounts

  1. Apply basic AM12 research and resolution procedures to Form 8752, Required Payment or Refund Under Section 7519, (MFT 15) and Form 720, Quarterly Federal Excise Tax Return, Abstract 11 accounts. Look for misapplied payments and/or an incorrectly filed tax return. Employees familiar with IRC Section 444 election rules and with a knowledge of the tax adjustment and credit transfer procedures in IRM 21.7, Business Tax Returns and Non-Master File Accounts, should work these cases.

    Note:

    The Entity may appear valid because the TC 055 posted. However, a valid election must have a TC 055 and the accounting period is usually 09,10 or 11. See IRM 21.2.4.3.28.1 ,Old Credit Balance (02 K-), for information on grandfathered fiscal year. For all others, contact Entity for corrective action. Research for current TC 150 posting.

  2. If a return posted and no other freeze condition exists, close the case "FRERELVER."

  3. If no TC 150 posted and the election is valid, look for existing or prior Form 1120S, 1065, or 720. Contact the taxpayer by telephone or 2585C letter. The address or telephone number on another return or existing entity information can be used.

    Note:

    The suspense period for the 2585C letter is 45 days and the returns requested via telephone is 15 days.

    Exception:

    The purge time for overseas taxpayers is 70 days.

    1. If the taxpayer replies with a signed return, verify that the applicable election year and the tax period are compatible. (i.e. if the "application election year" is 10/01/03 to 09/30/04, the Form 8752, Required Payment or Refund Under Section 7519, tax period is 200312).

    2. If the taxpayer submits a copy of a return without an original signature, send a 12C or 143C letter to obtain a signature.

    3. If no reply, leave credit on Master File and close control base, "NOREPLY."

  4. If no TC 150 posted and the election is not valid, and if the taxpayer's FYM is other than 09, 10 or 11 and there is a:

    • TC 054: Contact the taxpayer and request a final Form 8752, Required Payment or Refund Under Section 7519, to issue a refund of overpaid credits.

    • TC 055: Route the case to Entity.

  5. If no TC 150 posted and the entity terminated the election (changed to a required tax year, December, or filed a final 1120S). and the account contains a TC 052, 057 or 058, send a 2585C letter to the taxpayer, requesting a final Form 8752, Required Payment or Refund Under Section 7519. Indicate that our records show the election was terminated and that a return must be filed to receive a refund of the credits.

  6. If the correspondence is undeliverable:

    1. Research CC IRPTR and ENMOD for an updated address. If there is an updated address, reissue the letter.

    2. If no updated address on IDRS, request the latest 1120S return and look for an alternate address; if found, reissue the letter.

    3. If you cannot find a current address, leave credit on Master File and close case control,"NOREPLY."

21.2.4.3.49  (11-26-2008)
2290–Expired Installment (13 -G)

  1. This transcript generates when a Form 2290, Heavy Highway Vehicle Use Tax Return, module (MFT 60) installment payment is past due (Status 14). See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information. The Installment Billing Clerk works these cases; do not count in AMRH inventory.

21.2.4.3.50  (11-26-2008)
Barred Refund STEX (14 -0)

  1. This transcript generates when the Statute expires, and freezes credits from refunding and crediting. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information. The Statute Protection function works these cases; do not count in AMRH inventory.

21.2.4.3.51  (11-26-2008)
Erroneous Refund (15 -U)

  1. This transcript generates when an unreversed TC 844 (Erroneous Refund) posts to a credit balance module. The account is frozen from refunding and offsetting. A "TRANS-844" transcript issues in the cycle when the subsequent credit posts. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information. The Erroneous Refunds function works these cases; do not count in AMRH inventory.

21.2.4.3.52  (01-02-2013)
Excess Estimated Tax (ES) Credits (16 J-)

  1. This freeze is caused when a TC 150 posts and Estimated Tax (ES) credits claimed are less than ES credits available in the module. This freeze may be combined with a -X (Manual Refund) freeze. If both are present, the taxpayer has requested a refund of claimed overpayment for the excess ES credits. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information.

21.2.4.3.52.1  (01-02-2013)
AM16 Resolution

  1. To resolve these cases, determine where Estimated Tax (ES) credits not claimed on return belong. Use RTVUE to research IDRS for return information, and for spouse's account. Look for changes in filing status to uncover multiple spouses during a return period.

  2. If the credits belong to another module or account, transfer credit.

  3. Before releasing any refund, determine if any Economic Stimulus Payment (ESP) amount is included in the credit causing the freeze. See IRM 21.6.3.6.13, REBATEREV Transcripts.

  4. Verify TC 806, if present, to ensure ES credit was not erroneously reported on Form 1040 as withholding. Reverse erroneous withholding with TC 807 PC 8.

  5. If the credit belongs in the module where it posted, input TC 290 .00 with Priority Code 8 to release the J- freeze or the J- and -X freeze.

  6. Refer to IRM 21.2.4.3.10., Applying Unresolved Credits, if the credit does not belong to the account to which it is posted and you cannot determine the correct account.

  7. If the case involves joint estimated tax payments:

    1. Research both taxpayers accounts including RTVUE and Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, (line 5, Total payments), if any. If the taxpayer research agrees on how the total estimated tax payments should be credited between them, allocate the payments without contacting either taxpayer.

    2. If there is no return filed, no Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, or if the taxpayer research does not agree on how the total estimated tax payments should be credited between them, contact both taxpayers sending a 1505C letter to each taxpayer to determine credit disposition.

    3. If both taxpayers have filed and neither claimed the credit, send a 1505C letter to each taxpayer to determine credit disposition.

  8. Suspend the case until the response period has ended or both replies are received:

    1. See IRM 21.6.3.4.2.3.3, ES Joint Allocation, If/And/Then table for disposition of credit depending on taxpayer response.

    2. If taxpayers cannot provide an allocation of joint payment(s) AND you cannot determine allocation of payments per ratio of each spouse's separate tax, OR if neither respond, do not attempt to allocate income, deductions or credits. Release withholding, if present, with TC 290 .00 and a Posting Delay Code (PDC), and move ES credits to Excess Collection.

21.2.4.3.53  (12-01-2006)
FTD Credit Module Transcripts - BMF (16 -Y)

  1. The FTD Credit Module can include payments made through Electronic Federal Tax Payment System (EFTPS). The transfer to the FTD Credit Module occurs automatically during the Rollover analysis. If the excess credit amount equals the TC 650/660 (Doc Code 97) amount with a transaction date equal or prior to the tax period ending (minus 5 days), the TC 650/660 automatically transfers into or establishes (if the first one) the FTD Credit Module. The FTD Credit Module is identified by MFT=01 and tax period=000000. MFT=01 allows this module to be placed first on the account. During Rollback analysis, the FTD Credit Module will be analyzed for a single unreversed TC 650/660 (Doc Code 97) equal to the credit claimed in the tax module. If a satisfactory credit is found, a TC 652/662 (reversing transaction) will post to the FTD Credit Module with the following elements from the TC 650/660 transaction:

    • DLN with 99 in the 9th and 10th positions

    • Transaction Date

    • Amount

    • Micro Series Number

  2. A TC 650/660 will also post to the gaining module with the following elements from the reversed credit module:

    • DLN (with 99 in the 9th and 20th positions and the correct tax class)

    • Transaction Date

    • Amount

    • Micro Series Number of the TC 650/660 being reversed in the FTD Credit Module

21.2.4.3.53.1  (10-01-2013)
AM16 -Y Resolution

  1. AMRH 16-Y transcripts generate 26 cycles after the earliest posting cycle of an unreversed TC 650/660 in the FTD Credit Module. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information. To resolve these transcripts, check IDRS with BMFOL for account information. Use BRTVU, NAMEE, and INOLE to research:

    1. Modules corresponding with date of payment

    2. Debit balance accounts

    3. The tax period where the credit originally posted

    4. Subsequent year tax module if Form 1120, U.S. Corporation Income Tax Return, 4th quarter payment involved

    Note:

    If the taxpayer used another EIN, request BMFOL-INOLE-NAMEE for tax periods consistent with the payment date for the other EIN.

  2. Using the above research results, determine the credit disposition according to the following guidelines:

    1. Compare the FTD payment amounts claimed on the return to the FTD deposit amount in the tax module.

    2. Look for corresponding module with TC 670 payment amount that is approximately the same amount as the credit you are researching.

      Example:

      TC 650 $250.00 and a TC 670 payment is located on corresponding module for $260.00 (penalty and interest added). Taxpayer may have paid twice. This may be where the unresolved credit belongs.

    3. Look for related accounts and modules in balance due status.

    4. Check modules consistent with the date and/or payment amount of the deposit in question (within the smallest and largest deposit amount and earliest and latest date). Some deposit dates could apply to more than one quarter. For example, a payment dated 7/15 could apply to 2nd or 3rd quarter Form 941, Employer’s QUARTERLY Federal Tax Return.

    5. An 1120 4th quarter payment will attempt to post to the prior year tax module; if not needed, it rolls to the credit module.

    6. Check modules with a TC 606 for the amount of the deposit in question; use ADD34 or ADD24 to transfer payments to a module containing a TC 606 (for EFTPS payment make sure to input EFTPS indicator on ADD24).

    7. If the payment was misapplied, use CC ESTAB with definer SF.

    8. For electronic payments, research CC EFTPS.

      Note:

      Look for missing estimated tax payments with similar amounts in the subsequent tax year module. Estimated tax payments are due on the 15th day of the 4th, 6th, 9th and 12th month of the accounting period (e.g., fiscal year ending 06, payments due 15th day of October, December, March and June).

  3. If the credit is consistent with the payment dates and amounts in the taxpayer’s account, apply the credit to the account where the payment originally posted, resulting in either an offset or refund.

    Note:

    Before applying the deposit to the original posted period, check if tax was assessed on the module. If tax was not assessed and deposits previously posted, but were subsequently reversed or refunded, request the TC 150 to verify the tax liability. Research BRTVU for TC 150 and TC 976.

  4. If the credit still cannot be correctly applied, contact the taxpayer using a 1687C letter concerning the credit amount that exceeds the TC 150, regardless of whether or not BRTVU shows the taxpayer’s FTDs claimed on the return to be zero. If the tax period where the payment originally posted does not contain a TC 150, contact the taxpayer using 112C letter. If no reply, transfer the credit via Form 8758, Excess Collections File Addition, to Account 6800, Excess Collection File or Form 2424, Account Adjustment Voucher, to account 4620, Unidentified Remittance File, as appropriate. See IRM 21.2.4.3.10, Applying Unresolved Credits.

  5. Transfer the credit if possible (only the exact amount of the deposit transaction can be transferred). Credits must be transferred out of the FTD Credit Module before they can be refunded.

    1. Transfer FTD credits to the tax period intended before applying credit to another module in balance due status.

    2. If the payment is applied to a zero balance and a refund will issue, input bypass indicator 1. Otherwise, the transaction will unpost. Inform the taxpayer using 672C, 707C, 3027C or 3286C letter.

    3. Apply the credit to any outstanding liability in the taxpayer’s account. If a refund will result, use 672C, 707C, 3027C or 3286C letter to inform the taxpayer.

    4. During the period when an affected module has an imminent return due date (within two weeks), do not transfer credits from the credit module.

  6. If FTD coupon information does not match posted information or the case involves FTD magnetic tape deposits, contact Hardcore Payment Tracer.

    Note:

    FTD coupon program was decommissioned January 01, 2011. Electronic Federal Tax Payment System (FTPS) is now mandated for FTD payments.

  7. If credit disposition cannot be made, transfer the credit via Form 8758, Excess Collections File Addition, to Account 6800, Excess Collection File or Form 2424, Account Adjustment Voucher, to Account 4620, Unidentified Remittance File, as appropriate.

    Note:

    Complete case file must accompany the credit portion of the transfer document. Include the microfilm serial number of the FTD coupon or of the electronically transmitted deposit for use as an audit trail. EFTPS payments cannot be requested, research through CC EFTPS or correspond with the taxpayer.

21.2.4.3.54  (10-01-2013)
TDI Refund Freeze (17 -R)(IMF only)- Obsolete

  1. This freeze is caused when an income tax return claiming a refund is filed and there is at least one module within the past five years that has an open:

    • TDI status

    • AIMS module with an unreversed TC 420/424 without a posted TC 150

    • AIMS module with an unreversed TC 420/424 and there is a dummy TC 150 (ASFR) on the module.

    See Exhibit 21.2.4-3., AMRH Freeze Table IMF/BMF, for more information.

  2. Refunds held are identified by TC 570 with 999 in the Julian date.

  3. There is a six-month window. Route these cases to CSCO immediately; do not count in AMRH inventory.

  4. See IRM 25.12, Delinquent Return Refund Hold Program, for additional information.

  5. IMF AM17 (P- freeze) category in use by IVO.

21.2.4.3.55  (11-26-2008)
Credit Balance Module (18 -H)

  1. These transcripts generate when a module is in credit balance status with an unreversed TC 590, 591, 593, 594, 597, 598 or 599 posted and the closing code is other than 14, 17, 18, 20 or 21. See Exhibit 21.2.4-3., AMRH Freeze Table IMF/BMF, for more information. Route cases to CSCO; do not include in AMRH inventory.

21.2.4.3.56  (11-26-2008)
T-Code Transcripts (19 -Y)

  1. Route cases to CSCO; do not include in AMRH inventory. See Exhibit 21.2.4-3., AMRH Freeze Table IMF/BMF, for more information.

21.2.4.3.57  (11-26-2008)
Subsequent Payment (20 -J)

  1. These transcripts generate for BMF cases only. The transcripts generate when, after 16 weeks, a module contains a TC 150 and an unreversed TC 670 which creates a credit balance and either interest or Failure To Pay (FTP) Penalty are restricted (freezes: interest "I" ; FTP "G" ). The transaction will post, but will set a refund/offset freeze. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information. The freeze is released:

    1. By posting a TC 672, TC 29X or TC 30X.

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. When both FTP penalty and interest freezes are released.

  2. To resolve these transcripts, check IDRS with BRTVU for return information. Request the return and all adjustment documents, if necessary.

    1. Determine the date interest and/or Failure-to-Pay Penalty restriction was input ( 23c date of TC 340 or TC 270).

    2. Determine module balance (tax and penalties) as of restriction date.

    3. Compute the interest and/or FTP penalty from the 23c date to the payment date. (If payment is received within the prescribed time, do not charge additional interest or penalty.)

    4. If the credit was intended for another module or account, transfer credit.

    5. If no additional penalty/interest is due or the module balance becomes zero, input a TC 290 for zero amount to release the "J" freeze.

    6. If additional penalty and/or interest is due, assess the amount.

    If the available credit Then
    Is less than the total additional penalty/interest due Input the additional penalty/interest only to in the amount of the available credit.
    Is more than total additional penalty/interest Input the additional penalty/interest

    Note:

    Do not input TC 272 unless the TC 270 or TC 271 restriction was input erroneously (determine from source documents).

21.2.4.3.58  (11-26-2008)
Account Reactivation Freeze (21 O-)

  1. These transcripts generate when a TC 370 is input with a Doc Code 52. The TC 370 establishes a module that includes all transactions that posted to the respective Master File and recorded on the retention register. Upon posting the TC 370, Doc Code 52, the credit is frozen from refund/offset out and TDA issuance. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information.

  2. To resolve these accounts, use the following instructions and close the case if the subsequent action releases the freeze.

  3. Research IDRS and AMDIS for an open control. Contact the appropriate function to transfer the case.

    If Then
    The controlling function accepts the case Route the case and request expedite action.
    The controlling function's case is unrelated to the account reactivation and they will not accept the case Inform the controlling function your planned actions will release the freeze.
    There is no open control or the controlling function will not accept the case Review the document file and route the case to the initiator; request expedite action to release the freeze (even if no other action will be taken).
    The TC 370 has a Julian date of 999 Do not request the transfer document; release the freeze.
    Unable to locate the source documents or determine why the account was reactivated Release the freeze.

  4. If the account does not contain a TC 150 and the freeze should be released, close the control base with activity code "FRERELINP." The account will be moved back to the retention level.

  5. The AMRH case is resolved when one of the following occurs.

    1. The freeze is released. Activity Code "FRERELINP" is input.

    2. There is a pending transaction that will release the freeze.

    3. The case is routed to another function.

21.2.4.3.59  (06-07-2013)
Original, No Amended Return (22 R-)

  1. Transcripts generate if after 30 cycles from the last posted TC 610 the module is unresolved and:

    • TC 610 posted subsequent to the TC 150 and the module balance has a credit, or

    • A return processed through the Remittance Processing System (RPS) posts to a module and reflects multiple TC 610 payments (remittance with return), or

    • A credit card payment that exceeds the balance due by ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information.

  2. The freeze is released by:

    Freeze Releases
    TC 30X
    TC 29X (priority code other than 5, 6 or 7)
    Zero or debit balance
    BMF TC 612 (Doc Code 17, 18, 58, 34) to reverse TC 610
    IMF TC 612 (any doc code) to reverse all TCs 610

  3. Credit card payments:

    1. Confirm the payment was made by credit card by researching IDRS Command Code IMFOLT. Credit card payments will have a "6" in the 4th position of the EFT-Trace number field.

    2. If offsetting debt exists and there is no indicator on the account to freeze the payment pending a charge back request or other purpose, release the freeze.

    3. If no offsetting debt exists, fax the pertinent payment information to the Electronic Federal Tax Payment System (EFTPS) Accounting Technicians at (801) 620-6206. The Technicians can be reached at (801) 620-6930 or (801) 620-6087.

    4. Provide the Accounting Technician with the Electronic Funds Transfer (EFT) Trace Number, SSN, payment amount and payment date.

    5. The Accounting Technician will contact the credit card processor (identified by the 11th and 12th positions of the EFT Trace number) for further research.

    6. Upon receipt of documentation from the Accounting Technician, if there is an entity error, complete a credit transfer to move the payment to the correct entity.

    7. If the entity is correct and there is no indicator on the account to freeze the payment pending a charge back request or other purpose, release the freeze.

    8. See IRM 21.2.4.3.59.1 AM22 Resolution to resolve other types of payments.

21.2.4.3.59.1  (06-07-2013)
AM22 Resolution

  1. If there is an open IDRS data base with a pending adjustment or the freeze was released by an adjustment before the AMRH transcript was generated, close the case with the appropriate Activity Code. See Exhibit 21.2.4-4 Activity Codes Used to Work AMRH Cases.

  2. Before releasing any refund, determine if any Economic Stimulus Payment (ESP) amount is included in the credit causing the freeze. See IRM 21.6.3.6.13, REBATEREV Transcripts.

  3. Release the freeze if the account indicates refund was held in error (credit balance equals reversed penalty and interest amounts).

  4. Check IDRS with BRTVU/RTVUE for return information. Request the return if necessary. Determine correct postings i.e., penalty assessments, TC 610 equals TC 170, etc. as necessary.

    1. If the TC 610 belongs on another module, transfer the credit. For BMF, use Doc Code 24. If the TC 610 is the next period's estimated tax payment, move the credit as a TC 612/660. Do not post the credit as a TC 610 as this may cause a 22-R transcript to generate for the next tax period.

      Note:

      If the credit is a Federal Tax Deposit (FTD) on MFT 01, 10, etc., move the credit as a TC 612/650.

    2. Do not transfer the credit if both TCs 610 in the module have the same transaction date and the credit balance will be applied to a debit balance(s) within the account. Input a TC 290 for zero (priority code other than 5, 6 or 7) to release the freeze. The credit will offset to the debit balance module with the correct date.

    3. If the return belongs on another module or account, reprocess the return and make necessary adjustments.

  5. Check the Remittance Transaction Research (RTR) system for payment information.

  6. If unable to determine if the TC 610 posted correctly and a return with the corresponding DLN can’t be located:

    • If the credit balance is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , input TC 290 for zero (priority code other than 5, 6 or 7) to release the freeze. Do not correspond with the taxpayer to request payment application or missing return.

    • If the credit balance is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , send Letter 418C or Letter 1687C to the taxpayer. Suspend the case for 45-days. If no reply is received after 45 days, transfer the credit to the Unidentified Remittance File (URF) or Excess Collection File (XSF) and close the case "NOREPLY" . See IRM 21.2.4.3.10.1 Excess Collection File (XSF) for AMRH.

21.2.4.3.59.2  (02-18-2009)
AM22 Resolution - Form 944

  1. If the module is for MFT 14 ( Form 944, Employer’s ANNUAL Federal Tax Return), complete research and contact the taxpayer, if necessary, to determine the filing requirement and that the tax has been assessed on the correct module, before releasing the freeze.

  2. IRS sends taxpayers newly eligible to file Form 944, notification letters, including instructions on how to "opt out" of the program, on or around February 1st. See IRM 21.7.2.4.9.1, Form 944 Letters/Inquiries, and IRM 21.7.2.4.9.2 , Form 944 Filer Files Form 941- Letter 4148C Inquiries.

  3. The taxpayer may not have "opted out" of the Form 944 program, and may have erroneously filed Form(s) 941, Employer’s Quarterly Federal Tax Return. If a taxpayer files a Form(s) 941 in a calendar year in which they are designated as a Form 944 filer, the Form(s) 941 unposts. The TC 610 payment(s) may be transferred from the 941 module(s) to the 944 module – cross reference (x-ref) data will not necessarily be available. See IRM 21.7.2.4.9.2, Form 944 Filer Files Form 941 — Letter 4148C Inquiries.

  4. 4148C letter is sent to the taxpayer, informing them that we had changed their Employment Tax filing requirement from the quarterly Form 941 to the annual Form 944. In reply to a 4148C letter, the taxpayer may have erroneously sent in a Form 944 showing 0.00 tax liability. Determine the correct filing requirement before taking any action on the account.

    1. Use CC BMFOLE to verify the 944 cache to determine when the taxpayer was mandated to file Form 944 and when their final Form 944 will be filed. If Form 941 filing requirements appear on CC ENMOD, verify CC BMFOLE for the correct filing requirements.

    Example:

    If TP's F944 CACHE YR 2007 = 1 and F944 CACHE YR 2008 = 1, then TP would be required to file Form 944 for 2007 and 2008 and Form 941's for 2009, if applicable.

  5. Determine if the tax on the Form 944 module has been assessed and take appropriate action as follows:

    If Then
    Tax assessed (TC 150) approximately equals total of payments (TC 610s) and other credits Release R- freeze by reversing multiple TC 610(s) with TC 612(s), using Doc Code 24.
    The total TC 610s greatly exceed the tax assessed, or TC 150 shows a $0.00 tax liability Research CC TRDBV for Form 941 DLN(s) and request the originally filed return(s) from Files using the DLN(s) of the unpostable/rejected TC 150(s). See paragraph (3) above.
    You are able to secure the originally filed return(s) Increase the tax using the appropriate TC 29X (priority code other than 5, 6 or 7) and item reference numbers and properly document the history. See IRM 21.7.2.4.9.4, Form 944-X - Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund (including Form 944-X (PR) and 944-X (SP)).
    You are not able to secure the originally filed return(s) Call the taxpayer to request a corrected Form 944 and properly document the history. See IRM 21.7.2.4.9.4, Form 944-X - Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund (including Form 944-X (PR) and 944-X (SP)).
    You are unable to contact the taxpayer by phone Send a 4086C letter, selective paragraphs H, I, J, and an open paragraph instructing the taxpayer to file a corrected Form 944 showing the tax liability for the entire year.
    The taxpayer replies with a corrected Form 944 Increase the tax using the appropriate TC 29X (priority code other than 5, 6 or 7) and item reference numbers, and properly document the history. See IRM 21.7.2.4.9.4, Form 944-X - Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund (including Form 944-X (PR) and 944-X (SP)).
    The taxpayer does not reply with a corrected Form 944 Properly document the history that the credit should not be released until the tax is assessed. Leave credit on Master File and close case control, "NOREPLY" .

21.2.4.3.60  (11-26-2008)
(23 -W) Transcripts

  1. This is a Collection Statute Expiration Date (CSED) transcript. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information. If received, route to CSCO.

21.2.4.3.61  (11-26-2008)
Math Error (24 -J)

  1. These transcripts generate when there is a TC 470 and a Collection Closing Code 94 posts to the Master File, suppressing balance due notices. This indicates the taxpayer is disputing a math error and prevents TDAs from being issued. TC 472 (Closing Code 94) or TC 29X (Priority Code 7, Blocking Series 740–769) reverses this freeze. Route these transcripts to Accounts Management; do not count in AMRH inventory. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information.

21.2.4.3.62  (11-26-2008)
Additional Liability Pending (AUR) (25 -R)

  1. Route these cases, using AMS and include a "Summary Print" in place of the transcript, to the AUR function in the appropriate campus. The AUR Operation will route the case to AMRH if the TC 922 issue that caused the transcript to generate as a 25–R has been resolved See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information.

21.2.4.3.63  (11-26-2008)
Credit Balance Module TC 59X (26 -H)

  1. These transcripts generate when a module is in credit balance with an unreversed TC 590, 591, 593, 594, 597, 598, or 599. Submission Processing inputs Closing Codes 14, 17, 18, 20, or 21 to create these transcripts. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information. AMRH resolves these cases using the following instructions.

    • Code 14: Refer to IRM 3.17.220.2.7.1 , Researching Parent Subsidiary Cases. If no open liabilities on the parent EIN, and the payment is not claimed on the parent EIN, input TC 592 and close case.

      Note:

      If Form 1120, U.S. Corporation Income Tax Return, for the parent corporation was not filed when the AMRH transcript generated, close the transcript "NOPARRET" .

    • Codes 17, 18: Send 112C letter requesting return. If reply is received, process the return. If no reply, leave credit on Master File and close case control, "NOREPLY" If no reply, input TC 592.

    • Codes 20, 21: Ensure filing requirements are correct. Send 112C letter requesting return. If reply is received, process the return. If no reply, input TC 592, leave credit on Master File and close case control, "NOREPLY" .

21.2.4.3.64  (11-26-2008)
AUR Transcripts (27 -F)

  1. Route these transcripts, using AMS and include a "Summary Print" in place of the transcript, to the AUR function in the appropriate campus. AUR Operations will route the transcript to AMRH if the TC 922 issue that caused the transcript to generate as a 27–F has been resolved. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information.

21.2.4.3.65  (11-26-2008)
Unreversed TC 480 (28 -Y)

  1. Route these transcripts to CSCO; indicate reassignment on IDRS. See Exhibit 21.2.4-3., AMRH Freeze Table IMF/BMF, for more information.

21.2.4.3.66  (10-01-2011)
Tax Exempt Bond Credit Balance (AMRH 31)

  1. Route these transcripts, using AMS reroute function. Attach AMS "Summary Print" to Form 3210 and send to Ogden Accounts Management Campus, Tax Exempt (TE) (EO), MS: 6552.

  2. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information.

21.2.4.3.67  (10-01-2011)
Tax Exempt Bond Debit Balance (AMRH 32)

  1. Route these transcripts, using AMS reroute function. Attach AMS "Summary Print" to Form 3210 and send to Ogden Accounts Management Campus, Tax Exempt (TE) (EO), MS: 6552.

  2. See Exhibit 21.2.4-3, AMRH Freeze Table IMF/BMF, for more information.

Exhibit 21.2.4-1 
LETTERS USED TO RESOLVE AMRH CASES

The following letters are suggested to resolve AMRH cases.

Note:

The list below is not all inclusive and letters may be interchanged as appropriate. Select the letter that best addresses the account conditions present.

Letter AMRH Code Purpose
12C 09 -R Request additional information from taxpayer so return can be processed
18C 08 -X, 09 -R Request additional information to process decedent returns
112C 09 -R Request tax return to apply credit/payment to taxpayer's account
143C 09 -R Request information to complete action on return
167C 01 -X Trace payment
320C 16 -Y Additional information and verification of FTDs requested
407C 10 P- Request reason for returned refund check
418C 03 E-, 04 -A, 22 R- Additional information requested to adjust tax return
510C 08 -X Request for duplicate refund to be returned
672C, 707C 16 -Y Notify TP of pending refund
1505C 16 J- Joint payment not claimed on return
1687C 09 -R Remittance received with return for an amount greater than tax due
2585C 12 -Y Request return for IRC Section 444 cases
2645C All codes Interim response
2644C All codes Second interim response
CNOTE   When no preprinted C-letter is available (See IRM 21.3.3.4.23, Quicknotes and C-NOTES)
2761C CZ500AM/CZNO500AM Request for combat zone entry/exit dates
3007C Various To explain taxpayer does not have monthly 941 filing requirement
3286C All codes To explain AMRH case closing information
4086C 22 R- To explain incorrect filing of Form 941
QUICKNOTE   When a special instruction is needed and no preprinted letter is available (See IRM 21.3.3.4.23, Quicknotes and C-NOTES)

Exhibit 21.2.4-2 
AMRH FREEZE TABLE IRAF

Freeze or Unsettled Condition AMRH STAT Code Number of Cycles from Freeze or Unsettled Condition to Transcript
Debit Balance, No Return

Criteria:
1. Debit balance module ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
2. Current history status is less than 06.
3. More than 26 cycles from RDD excluding extensions.
4. Manual refund freeze (TC 840) not on.
Released by:
1. Module becomes zero or credit.
2. TC 150 or 840.
01 -X 40
Old Credit Balance

Criteria:
1. Module is in credit balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
2. No transaction has posted for 26 cycles to same tax module.
Released by:
1. Module reaches zero or debit balance.
02 K- 26
Amended Return, No Original

Criteria:
1. TC 977 posted.
2. No TC 150 posted.
Released by:
1. TC 150 new DLN.
2. TC 150 same DLN.
03 E- 42
Duplicate Return

Criteria:
1. TC 150 posted.
2. TC 976 posted.
3. No TC 29X or 30X subsequent to TC 150 and latest 976.
Released by:
1. TC 290 or 300 with Priority Code 1.
04 -A 26
Audit/DP Tax Hold Codes

Criteria:
1. Credit balance module ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
2. TC 29X or 30X with Hold Codes 1, 2, or 4.
Released by:
1. Module balance becomes zero or debit.
2. TC 290 or 300 Doc Code 24.
05 -K 16
Claims Pending

Criteria:
1. Debit balance module ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
2. TC 470 posted.
3. Do not select if TC 29X, 30X, or 472 has posted since the last posted TC 470.
Released by:
1. TC 29X/30X with exceptions or TC 472.
2. Zero or credit.
3. TDA.
06 -W 15
Manual Refund

Criteria:
1. Debit balance module ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
2. Unreversed TC 840.
Released by:
1. Module balance becomes zero or credit.
2. TC 720, 740, or 841.
08 -X 17
Refund Repayment or Cancellation

Criteria:
1. Credit balance module ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
2. Unreversed TC 720 or 841.
Released by:
1. TC 721, 722, or 843.
2. Module balance becomes zero or debit.
10 P- 16
Erroneous Refund Freezes

Criteria:
1. TC 844.
2. Credit module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
Released by:
1. TC 845.
2. Credit module balance.
15 -U 16
Offer in Compromise

Criteria:
1. Debit module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
2. Unreversed TC 480 (consider the TC 480 unreversed if no subsequent TC 481, 482, or 780 posted to the module).
Note:
(1) "Module Balance" means the true module balance (tax plus assessed interest, plus interest paid).
(2) "Freeze Cycle" is the posting cycle of the transaction which created a freeze or unsettled condition.
28 -Y 26

Exhibit 21.2.4-3 
AMRH FREEZE TABLE IMF/BMF

Refer to Document 6209, IRS Processing Codes and Information, for additional freeze code and reversal information. The action that set the frozen condition determines the correct reversal action; actions that set or release freezes often carry exceptions. Report any procedural or systemic deficiencies to Headquarters. See IRM 21.2.4.3, Procedures for Accounts Maintenance.
Freeze or Unsettled Condition AMRH STAT Code Number of Cycles from Freeze or Unsettled Condition to Transcript
Debit Balance, No Return - BMF

Note:

IMF AM01 (-R freeze) category in use by IVO.



Criteria:
1. Debit module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ with current Status 06 or less.
2. More than 26 cycles from RDD excluding extensions.
3. Manual Refund Freeze not on (TC 840 in Primary Hold Codes).
4. No TC 150 posted.

Released by:
1. TC 150.
2. Zero Balance.
01 -X 40
Erroneous Credit Hold

Criteria:
1. Erroneous Credit Indicator in the Secondary Hold Codes is significant.
2. Credit Module Balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Released by:
1. When the module balance becomes zero or debit, or when credit balance becomes refundable cash credits.
02 K- 0
Amended Return, No Original

Criteria:

1. TC 976 (BMF) or TC 977 (IMF) with no TC 150 posted.

Released by:
1. TC 150 with new DLN (sets duplicate filing freeze).
2. TC 150 with same DLN (releasing TC 470 freeze).
3. TC 971 with Action Code 002 after TC 976/977.
Note: MFTs 51, 52, 58 – 64 is 42 cycles.
03 E- B/30/42 I/42
Duplicate Return

Criteria:
1. Subsequent return with unequal DLN posting to a module where a return has already posted or vice versa. Duplicate Return Indicator is significant.

Released by:
IMF
Any Doc Code 51 transaction; TC 30X with Priority Code 1, or 29X with priority code other than 5–7; or TC 291 with Priority Code 7 and Blocking Series 740–769.
BMF
TC 29X/30X posting in a subsequent cycle.
04 -A 26
Exam/DP Tax Hold Code or Joint Committee

Criteria:
IMF
1. TC 29X or 30X posted.
2. Audit/DP Hold Indicator is significant.
3. Credit balance≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

BMF
1. Computer Condition Code "N" present.
2. ASED will expire within six months.
3. Credit balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Released by:
IMF
Any Doc Code 24 or 34 transaction; TC 30X, 820, 830; TC 29X with priority code other than 5–7; or if module balance becomes zero or debit.
BMF
1. TC 300 (Doc Code 51).
2. TC 29X/30X with hold code other than 1, 2, 4, 6, 7, or 9.
3. TC 820 (doc code other than 58), TC 830, or any Doc Code 24/34 transaction.
4. Module balance becomes zero or debit.
05 -K 16
Claims Pending

Criteria:
1. Unreversed TC 470 (excluding cc 94).
2. The "1" or "4" bit of 47 hold is on.
3. Module Balance is a debit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Released by:
IMF
1. A TC 472, or by a TC 29X (except Blocking Series 200–299) with priority code other than 5–7, or TC 30X. TC 470 with CC 95/96 is only reversed by TC 472 with the same cc.
2. When module balance becomes zero or credit (including accruals).
BMF
1. TC 472 with a closing code other than 91, 94 or 99.
2. TC 29X (except Blocking Series 200–299)/30X with priority code other than 5–7.
3. When DA 29 expires.
4. When module balance becomes zero or credit (including accruals).
5. Systemic release 52 cycles after latest unreversed TC 470 (cc 97 only).
06 -W IMF
28 cycles (cc 00, 90, 93)
53 cycles (cc 95)
0 cycles (cc 99)

BMF
28 cycles (cc 00, 90, 93)
53 cycles (cc 95)
0 cycles (cc 99)
ADP Credit to Non-Master File

Criteria:
1. The 130 switch in the Entity is significant.
2. Credit module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
3. TC 130 posted.
4. TC 150 posted.

Released by:
TC 131 or 824 (may be for zero amount).
07 V- 16
Manual Refund

Criteria:
1. Manual Refund Indicator (840 hold code is significant).
2. In excess of module balance tolerance,≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Released by:
IMF
1. TC 30X, 841 or 29X — priority code other than 5–7.
2. TC 150 posted.
3. TC 29X with Priority Code 8.
BMF
1. Posting of TC 150, 841 (Doc Code 48) or TC 590/591 to zero balance account.
2. At end of 20 cycles, when module balance becomes zero or credit, or posting of Audit/DP Adjustment.
3. TC 840 posting.
4. At end of 20 cycles, when module balance becomes zero or credit, or subsequent posting of a DP adjustment (TC 241).
08 -X 17
30 if 6XX block 30 if TC 460
Additional Liability Pending

Criteria:
IMF
1. Unreversed TC 570 and 57 Secondary Hold Code is on.
2. Credit module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
3. TC 150 may be posted; must be posted if an unreversed TC 590, 591, 593, 594 or 599 is posted.
4. Do not select if status is 02 and an unreversed TC 474 is present.
5. Do not select if status is 03.
BMF
1. Unreversed TC 570 and 57 hold code indicator.
2. TC 150 may or may not be posted in the module.
3. Credit module balance (See IMF).
4. Do not select if status is 02 and unreversed TC 474 is posted.
5. Do not select if status is 03.
6. Do not select modules without a posted return if an unreversed TC 590, 593, 594, or 599 is present in the module.
Released by:
IMF
TC 571, 572, 30X, 29X with priority code other than 5–7; or if module balance becomes zero or debit. TC 294/5 blocked 900 – 999 will not release if TC 570 is Doc Code 54.
BMF
TC 571, 572, Audit/DP Adjustment (except TC 300 with Disposal Code 7 or 11) posting or when module balance becomes zero or debit
09 -R 4 if TC 832
(25 otherwise)
Refund Repayment

Criteria:
1. TC 841/42, 720 indicator on.
2. Module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Released by:
IMF
Any Doc Code 24, 34 transaction; TC 30X, 721, 722, 820, 830, 843, 29X — priority code other than 5–7 and/or blocked other than 200–289 or 299; or if the module balance becomes zero or debit.
BMF
Cancellation/Deletion — posting of TC 571 or 572 if TC 570 is posted, Audit/DP Adjustment, Doc Code 24 or 34 transaction, TC 820, 830 posting, or module balance becomes zero or debit. (TC 841 freeze is released by TC 843 posting.)
Repayment — TC 290, 300, 721, 722, 820, 830, Doc Code 24 or 34 transaction posting; or when module balance becomes zero or debit.
10 P- 25
Advance Payment

Criteria:
1. 640 hold indicator is on.
2. TC 150 posted.
3. Credit module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Note:

If TC 640 in 300–399 blocking series, do not generate as 11 -F; See criteria for 25 -R.


Released by:
IMF
Released when all TCs 640 are reversed by TC 641 or 642; TC 30X, or when the module balance becomes zero or debit. TC 29X blocked 500 – 519, 540 – 549, 550 – 589, 600 – 619, 640 – 649, or 650 – 679.
BMF
Form MFTs other than 13, TC 30X (without Disposal Code 7 or 11) posting if the 23c date is equal to or later than the TC 640 transaction date; TC 641 or 642 posting which reverses all TC 640 credits in the module; module going to zero or debit balance and module status is other than 14, 18, or 20. For MFT 13, TC 641/642 posting which reverses all TC 640 credits in the module; module going to zero or debit balance.
11 -F 26
Credit, No Return

Criteria:
IMF
1. Credit module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Note:

Actual AMS transcripts only generate when the balance is greater or equal to $100,000.00


2. A TC 610 is posted, or any credit posted.
3. Do not select if TC 150, 977 or unreversed TC 140, 570, 590, 591, 593, 594, 597, 598, or 599 is posted to the module.
4. Do not select if the current status is 02, 03, or 06.
5. Do not select if the cc 81 or cc 86 – 89 indicator is on (bankruptcy case).
BMF
1. Credit module balance (same as IMF).
2. Do not select if TC 150, 976 or unreversed TC 570, 590, 591, 593, 594, 597, 598, or 599 is posted to the module.
3. Do not select for AMRH if the current status is 02, 03 or 06.

Exception:

Do select for STAT.


4. Do not select if Bankruptcy Freeze cc 81 or 85 – 89 is on.
Released by:
1. TC 150.
2. Module balance becomes zero or debit.
12 -Y IMF
35 cycles from last TC 610, if posted. Otherwise, 82 cycles from RDD or the earliest posted unreversed TC 430, 620, 650, 660, 670, 700, 710, or 716, whichever is later.

BMF
25 cycles from last TC 610, if posted. Otherwise, 40 cycles from RDD or 30 cycles from the earliest posted unreversed TC 340, 620, 650, 660, 670, 700, 710 or 716, whichever is later.
Expired Installment (BMF only)

Criteria:
1. MFT 05 or 60.
2. Debit module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
3. Current status is 14.
Released by:
1. Subsequent payment.
2. TDA issued.
13 -G 62
Barred Refund STEX

Criteria:
1. STEX indicator is significant.
2. Module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
Released by:
1. TC 820 or when module balance becomes zero or debit if there is no TC 576 (unallowable freeze).
14 -O 16
Erroneous Refund

Criteria:
1. 84 hold indicates TC 844 posted.
2. Credit module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
Released by:
1. TC 845.
15 -U 16
Excess ES Credits (IMF only)

Criteria:
1. Excess ES credits hold code is significant.
2. TC 150 posted.
3. Credit module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Released by:
TC 662, 667, or 712 (TC 662 may be zero amount).
16 J- 30
FTD Credit Module (BMF only)

Criteria:
1. MFT 01.
2. Tax period 0000.
3. Unreversed 650/660.
16 -Y 26
TDI Refund Freeze (IMF only) -Obsolete

Note:

IMF AM17 (P- freeze) category in use by IVO.



Criteria:
1. Credit module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
2. TDI or ASFR and current refund due.
Released by:
1. TC 290 or TC 300 with Priority Code 8.
2. Module balance becomes zero or debit.
17 -R 16 cycles from TC 590 or RDD, whichever is later.
Credit Balance Module 59X

Criteria:
1. Excess ES credits hold code is significant.
2. TC 150 posted.
3. Credit module balance
Released by:
TC 662, 667, or 712 (TC 662 may be zero amount).
18 -H 20 for TC 590, 591 and 593.
40 for TC 594 or 599
Offer in Compromise (BMF)

Criteria:
1. Tax Module 48 hold indicator reflects unreversed TC 480 posted.
2. Module balance is zero.
Released by:
1. TC 780, 481, 482 or 483 posting.
2. TC 781, 782 posting.
19 -Y 0
Subsequent Payment (BMF)

Criteria:
1. 67 Hold Indicator reflects TC 670 posted and computer is restricted from computing either interest charges or failure-to-pay penalty.
2. TC 150 posted.
3. Credit module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
Released by:
1. TC 29X, 30X, 672.
2. Module becomes zero or debit.
20 -J 16
Account Reactivation

Criteria:
1. TC 370 Doc Code 52 is posted (reactivation indicator is on).
2. No TC 150 posted after the TC 370 Doc Code 52.
3. No TC 150, 29X, 30X, 370 Doc Code 51, TC 421 or 550 is posted after the TC 370 Doc Code 52 (IMF).
4. Module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Note:

Follow-up transcripts will not be generated if there is no TC 150 in the account.


Released by:
If any of the above transactions post.
21 O- 15
Original/No Amended Return (RPS)

Criteria:
1. RPS indicator has the "1" bit on (indicates TC 610 posted, but DLN not equal to TC 150 DLN).
2. No TC 976/977 posted. For IMF, no TC 977 posted.
3. Module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
Released by:
1. TC 29X priority code other than 5, 6, or 7.
2. TC 30X.
3. Module balance becomes zero or debit.
4. BMF: TC 612 (doc code other than 17, 18, 58, 34) to reverse TC 610 not matching the return DLN).
IMF: TC 612 as long as no other RPS unreversed TC 610 in account (effective 01/90).
22 R- 30
CSED TC 470

Criteria:
1. Unreversed TC 470 with cc 90, 93, or 97.
2. CSED will expire within six months.
3. Module balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
Released by:
1. TC 472 with same cc.
2. TC 30X
3. TC 29X (priority code other than 5, 6, or 7) except Blocking Series 200–299.
4. Module balance becomes zero or credit (including accruals).
23 -W 0
Math Error

Criteria:
1. Unreversed TC 470 cc 94 is posted.
2. Exceeds debit module balance ≡ ≡ ≡ ≡ ≡ ≡ .
Released by:
1. TC 472 cc 94.
2. TC 29X with Priority Code 7.
24 -J 15
Additional Liability Pending (AUR) (IMF only)

Criteria 1:
Module qualifies for 09 -R or 11 -F, but there is a TC 922 with one of the following process codes in the last position: 67, 68, 87, 88, 90, 94, or 96.
Released by:
1. TC 290 with Blocking Series 500-519, 550-589, 600-619, or 650-679.
2. TC 571 or TC 572.
Criteria 2:
1. Module qualifies for 09 -R or 11 -F, but there is a TC 922 with one of the following process codes in the last position: 39, 47-53, 58, 69, 70, 71, 73, 74, 89, 91-93, or 96.
2. There is no TC 290/TC 291 in the AUR Blocking Series 500-519, 550-589, 600-619, or 650-679.
3. If open TC 420 on module, do not generate STAT 25 transcript.
4. Follow-ups generate in 16 cycles instead of 26.
Released by:
1. TC 29X in AUR blocking series.
2. TC 571 or TC 572.
3. Module balance becomes zero or credit.
Criteria 3:
1. Module qualifies for 09 -R or 11 -F, but there is a TC 922 with process code 20 in the last position.
Released by:
1. TC 29X with TC 806/TC 807 or TC 766/TC 767 with Credit Reference Number 252.
25 -R 25
TC 59X with no TC 150

Criteria:
1. Module qualifies for 18 -H, but the TC 59X has cc 14, 17, 18, 20, or 21.
2. Credit nodule balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
Released by:
Same as 18 -H.
26 -H Same as 18 -H
AUR (Debit/Zero Balance)

Criteria 1:
1. TC 922 with Process Code 67, 68, 87, 88, 90, 94 or 96 in the last position posted.
2. No TC 290 with Blocking Series 500-519, 550- 589, 600-619, or 650-679.
Released by:
1. TC 290 with Blocking Series 500-519, 550- 589, 600-619, or 650-679.
Criteria 2:
1. TC 922 with any of the following process codes in the last position: 39, 47-53, 58, 69, 70, 71, 73, 74, 89, 91-93, or 96.
2. No TC 290 or 291 in the AUR Blocking Series 500-519, 550-589, 600-619 or 650-679.
3. If open TC 420 on module, do not generate STAT 27 transcripts.
4. Follow-ups generate in 16 cycles instead of 26.
Released by:
1. TC 29X in AUR blocking series.
Criteria 3:
1. Module qualifies for 09 -R or 11 -F, but there is a TC 922 with process code 20 in the last position.
Released by:
1. TC 29X with TC 806/TC 807 or TC 766/TC 767 with Credit Reference Number 252.
27 -F 25
Offer in Compromise

Criteria:
1. The 48 hold = 1.
2. Debit balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
Released by:
1. TC 481, TC 482 or TC 780.
28 -Y 0

Exhibit 21.2.4-4 
ACTIVITY CODES USED TO WORK AMRH CASES

Activity Code Activity Performed
CASTOCN Related case closed for association with Common Number (CN) case.
CIAM09TRAN Case closed to Fraud Detection Center (FDC).
CLSTAT02/03 Closed to Collection — open TDI status.
CLTOFOxx Closed case to Field Office — Bankruptcy or Form 941M, Employer’s Monthly Federal Tax Return.
CLTOCSCO Closed case to Compliance Services Collection Operations— ,
CLTOEXAM Closed to Examination.
CLTOSFR Closed case to ASFR team in Compliance Services Collection Operations.
CREDTRANS Credit transferred by DRT24 or DRT48 input; generated when case control was not previously established.
CRFRnnvvvvvv (MFT and Tax Period) Credit applied from another module.
CRTOnnvvvvvv (MFT and Tax Period) Credit transferred to another module/campus General Ledger accounts (e.g., Account 6800).
CRTOSPnnnn Credit transferred to spouse's tax period.
CNERRCLSD Control base number N was closed prematurely. Current control base is a continuation of CN.
DOCNTAVAIL Document not available.
DOCREQ Document requested.
ERRORCASE Case established in error, closed.
FOLLOWUP Follow-up or second inquiry correspondence associated with established cases.
FRERELINP Freeze release input.
FRERELVER Freeze release verified.
ICORRTOTP International correspondence (or 2761C letter, Request for Combat Zone Service Dates) to taxpayer.
IDRSREFUND IDRS Generated Refund requested by CC RFUND.
INCRADDLW2 To increase tax due to additional W–2 filed.
LETERvvvv (Letter number) C or other letter sent.
MANREF Manual Refund issued.
MRSREQ IDRS Microfilm requested.
NOADDRESS Undeliverable with no new address found through research.
NOFOLUP–CI Cases closed to Criminal Investigation; CI does not want freeze released.
NOREPLY No reply to suspense letter.
NOFOLUP–ST Case reassigned to Statute team — no follow-up required.
PENTCnnnn Pending Transaction which will release freeze(s).
PREVADJ Adjustment action previously taken.
QCKNOTE Quick Note sent.
RETOERREF Reassigned to Erroneous Refund function.
RETOREFIQ Reassigned case to Refund Inquiry.
OPENTC420/424 Closed no action per TC 420/424.
SPSEARCH Special search for needed document.
STAUPnnvvv Module status changed by STAUP to status requested.
TC520POSTD Closed no action per TC 520.
TELREPLY Telephone reply to taxpayer.
TNSFRCASE Transferring an open control base from one employee to another.
TRTOvvvv Case transferred to any other function.
UNDEL Correspondence returned as undeliverable.
XREF Cross reference TIN, period, name control.
ZEROSPACCT Spouse's account backed out in full.

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