21.5.6  Freeze Codes

Manual Transmittal

September 10, 2013

Purpose

(1) This transmits revised IRM 21.5.6, Account Resolution, Freeze Codes.

Material Changes

(1) Miscellaneous editorial changes throughout.

(2) IRM 21.5.6.4.2 (3) 2nd THEN box eliminated the notes in (2).

(3) IRM 21.5.6.4.10 (2) 3rd THEN box added information on TC 810-1.

(4) IPU 12U1657 issued 10-03-2012 IRM 21.5.6.4.10 (3) Last THEN box corrected address for Frivolous Filer Mailing Address in Ogden.

(5) IPU 13U0439 issued 03-01-2013 IRM 21.5.6.4.12 (2) Second IF box changes the word "after" to "before" and eliminated AUR and blocking series.

(6) IPU 13U1058 issued 06-06-2013 IRM 21.5.6.4.12 (2) Second IF Box changed "before" to "after" the assessment.

(7) IPU 13U1104 issued 06-17-2013 IRM 21.5.6.4.22 (4) Added (4) -TOP Offset that was reversed through the External Lead process and has an open IDRS control.

(8) IRM 21.5.6.4.23 (1) In the 6th THEN box added the information to inform the taxpayer to use the web to obtain the form needed.

(9) IPU 13U0439 issued 03-01-2013 IRM 21.5.6.4.31 Added new information concerning the new CP 53A and updated all references from AMTAP to IVO.

(10) IPU 13U0858 issued 05-02-2013 IRM 21.5.6.4.31 (4) In the 10th AND box added note concerning the appearance of the CP 53A on TXMOD.

(11) IRM 21.5.6.4.31 (4) In the 6th THEN box added the information to inform the taxpayer to use the web to obtain the form needed.

(12) IPU 13U1058 issued 06-06-2013 IRM 21.5.6.4.31 (4) Revised the 8th THEN (2) box to remove "it could take up to 60 days" .

(13) IRM 21.5.6.4.31 (4) In the 8th THEN box revised the (2) paragraph.

(14) IRM 21.5.6.4.31 (4) In the 9th THEN box changed all references from AMTAP to IVO and added the information to inform the taxpayer use the web to obtain the form needed.

(15) IRM 21.5.6.4.31 (5) Added new paragraph concerning TAS procedures.

(16) IPU 13U0439 issued 03-01-2013 IRM 21.5.6.4.35 Updated all references from AMTAP to IVO and in the last THEN box added IRM reference for telephone assistors.

(17) IPU 13U0439 issued 03-01-2013 IRM 21.5.6.4.35.1 (6) (b-d) Updated the procedure to fax the information on EFTPS Technician.

(18) IPU 13U0439 issued 03-01-2013 IRM 21.5.6.4.35.2 Updated all references from AMTAP to IVO.

(19) IPU 12U1657 issued 10-03-2012 IRM 21.5.6.4.35.2 (1) 6th IF added to instruct the taxpayer to write "Copy" on the return they are faxing or sending and the 6th THEN box added IRM reference to the Campuses.

(20) IPU 12U1657 issued 10-03-2012 IRM 21.5.6.4.35.2 (1) Added an additional IF and THEN box concerning Tax Modules that contain DDb ARAP Rule 7 information.

(21) IPU 13U0439 issued 03-01-2013 IRM 21.5.6.4.35.2 (1) 7th THEN Box added a reference for if no Form 1310 is received.

(22) IPU 13U0858 issued 05-02-2013 IRM 21.5.6.4.35.2 (1) Last IF and THEN box updated the IF box with new action code and letters and updated the THEN box with new fax number for DDb ARAP Rule 7.

(23) IPU 13U0858 issued 05-02-2013 IRM 21.5.6.4.35.2 (1) Added new IF and THEN box for DDb ARAP 1-6,8,A/B rule and procedures on where to fax correspondence.

(24) IRM 21.5.6.4.35.2 (1) In the 10th THEN box added the information to inform the taxpayer to use the web to obtain the form needed.

(25) IPU 13U1058 issued 06-06-2013 IRM 21.5.6.4.35.2 (1) in the 12th THEN box added a note concerning TC 971 AC 134 posted.

(26) IPU 13U1058 issued 06-06-2013 IRM 21.5.6.4.35.2 (1) Last THEN box added the Form 4442 inquiries need to be faxed.

(27) IPU 13U0439 issued 03-01-2013 IRM 21.5.6.4.35.3 Updated all references from AMTAP to IVO.

(28) IRM 21.5.6.4.35.3 (1) Added information concerning the MISC fields on TXMOD REFEFDS and no entry in the MISC field.

(29) IRM 21.5.6.4.35.3 (2) In the 2nd THEN box added the information to inform the taxpayer to use the web to obtain the form needed.

(30) IRM 21.5.6.4.35.3 (2) In the 3rd THEN box added the stop number to Atlanta address.

(31) IRM 21.5.6.4.35.3 (2) In the 4th THEN box added the information to inform the taxpayer to use the web to obtain the form needed.

(32) IPU 12U1657 issued 10-03-2012 IRM 21.5.6.4.35.3 Added new (3) with information if a inquiry is receiving with a category code of NSCN and activity code of C&E/2VER.

(33) IPU 12U1657 issued 10-03-2012 IRM 21.5.6.4.35.3 (4) Throughout the table changed all references from Austin Directorate to Austin IVO.

(34) IPU 12U1657 issued 10-03-2012 IRM 21.5.6.4.35.3 (4) Table under CP 05A corrected the address and stop number for Atlanta.

(35) IPU 12U1657 issued 10-03-2012 IRM 21.5.6.4.35.3 (4) Table under Letter 4115C added information concerning if the correspondence the taxpayer provided was returned as undeliverable to re-send the information to the address in (2).

(36) IPU 13U1058 issued 06-06-2013 IRM 21.5.6.4.35.3 (4) Added a new boxes concerning the Letter 4883C and Letter 5071C.

(37) IPU 13U1104 issued 06-17-2013 IRM 21.5.6.4.35.3 (4) Revised the Caution in box 6 of the table and added a Note.

(38) IPU 13U1104 issued 06-17-2013 IRM 21.5.6.4.35.3 (4) Deleted the last row in the table.

(39) IRM 21.5.6.4.35.3 (5) Changed all references concerning AMTAP to IVO.

(40) IPU 13U0087 issued 01-08-2013 IRM 21.5.6.4.35.3 (5) Note corrected the fax number for Ogden.

(41) IRM 21.5.6.4.35.3 (9) Added the information to inform the taxpayer to use the web to obtain the form needed.

(42) IRM 21.5.6.4.35.4 Deleted entire section; previous section IRM 21.5.6.4.35.5, Refund Holds, is now IRM 21.5.6.4.35.4

(43) IPU 12U1657 issued 10-03-2012 IRM 21.5.6.4.35.4 Added a caution not to input a TC 290 .00 to release the freeze and added (4) information concerning an adjustment resulting in a refund. (Superseded by IPU 13U0439 issued 03-01-2013.)

(44) IPU 13U0439 issued 03-01-2013 IRM 21.5.6.4.35.4 The entire section re-written for the refund holds.

(45) IPU 13U0439 issued 03-01-2013 IRM 21.5.6.4.37 Corrected all IRM references to the IRM 25.16.1.

(46) IRM 21.5.6.4.38 (2) Added additional IRM reference in the last THEN box.

(47) IPU 13U0087 issued 01-08-2013 IRM 21.5.6.4.43 Added an additional IF and THEN box referring to injured spouse claims.

(48) IRM 21.5.6.4.44 Entire section has been revised.

(49) IPU 13U0087 issued 01-08-2013 IRM 21.5.6.4.44 (4) Correct IRM reference to Status 72 Accounts.

(50) IPU 13U0657 issued 04-01-2013 IRM 21.5.6.4.44 (5) New toll free number for CSR to contact CIO before making an adjustment.

(51) IPU 13U0439 issued 03-01-2013 IRM 21.5.6.4.44 (6) In the note unrestricted the toll free number that is given to taxpayers.

(52) IPU 13U0087 issued 01-08-2013 IRM 21.6.5.4.45 Added TC 977 and a referral to the Document 6209 for the procedures on TC 470.

(53) IRM 21.5.6.4.46 Entire section has been revised.

(54) IPU 13U0087 issued 01-08-2013 IRM 21.5.6.4.48 (2) Revised the instruction in the 3rd THEN box in preparing a Form 4442

(55) IRM 21.5.6.4.48 (3) Added IRM reference for refunds in the last THEN box.

(56) IPU 13U0087 issued 01-08-2013 IRM 21.5.6.4.48 (4) Added a 3rd IF and THEN box if payments are taxpayers instructions on releasing the freeze code.

(57) IPU 13U0439 issued 03-01-2013 IRM 21.5.6.4.50 (4) Revised from questions and answers to the OIC Decision tool, (5) added link to the Campus locations for OIC.

(58) IPU 13U0439 issued 03-01-2013 IRM 21.5.6.4.52 Updated all references from AMTAP to IVO.

(59) IPU 12U1657 issued 10-03-2012 IRM 21.5.6.4.52 Added new (7) if 1040X is received from CI with a TC 914 on account, input the adjustment.

(60) IPU 13U0439 issued 03-01-2013 IRM 21.5.6.4.52.1 Updated all references from AMTAP to IVO.

Effect on Other Documents

IRM 21.5.6, dated August 24, 2012 (effective 10-01-2012), is superseded. The following IRM Procedural Updates (IPUs), issued between October 2nd, 2012 and June 17, 2013, have been incorporated into this IRM: 12U1657, 13U0087, 13U0439, 13U0657, 13U0858, 13U1058, and 13U1104.

Audience

All employees performing account/tax law work

Effective Date

(10-01-2013)

Ivy S. McChesney
Director, Accounts Management
Wage and Investment Division

21.5.6.1  (10-01-2009)
Freeze Codes Overview

  1. Freeze conditions prevent the issuance of refunds, credit offsets, or the assessment of accrued interest and/or penalties. This chapter covers the identification and resolution of freeze conditions. Refer to Document 6209, Master File Freeze Codes, Section 8A.4, for additional information.

  2. Follow procedures in IRM 13.1.7.2, TAS Case Criteria, to determine if taxpayers or cases should be referred to the Taxpayer Advocate Service (TAS), when you can not resolve the taxpayers issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayers issue. Refer to IRM 13.1.7.4, Same Day Resolution by Operations. Do not refer these cases to TAS unless they meet TAS criteria or the taxpayer asks to be transferred to TAS. When referring cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), and forward to TAS in accordance with your local procedures.

  3. Before disclosing any tax information:

    1. Be sure you are speaking with the taxpayer or an authorized representative. Refer to IRM 21.1.3.2, General Disclosure Guidelines, for more information.

    2. Review procedures in IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail, before leaving a message on a taxpayers answering machine or voice mail.

    3. Review procedures in IRM 11.3.1.11, Facsimile Transmission of Tax Information, before faxing confidential information to the taxpayer.

21.5.6.2  (10-01-2002)
What is a Freeze Condition?

  1. There are three types of freeze condition codes:

    • Those identifying conditions existing in the module/account that freeze refunds and prevent offsets in or out of the module, but do not stop balance due notices

    • Those which freeze IDRS balance due notices, refunds, offsets, and tax delinquent account (TDA) issuances

    • Those indicating that certain conditions exist on the module. Activity on the account is not frozen

21.5.6.3  (06-02-2011)
Researching Freeze Codes

  1. Combination freeze codes such as "-LQ" , "P-L" , and "-EL" result when a combination of freeze conditions affect one module. Refer to the appropriate area of this IRM for instructions. ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

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  2. Do not take action on any freeze condition without complete IDRS research.

21.5.6.4  (10-01-2012)
Freeze Code Procedures

  1. Select and follow the procedures for the appropriate freeze. Refer to Document 6209, Master File Freeze Codes, Section 8A.4, for a complete listing of freeze codes.

  2. This IRM covers the most common freeze codes that require follow-up procedures worked by Accounts Management (AM). For causes and release information on freeze codes not contained in this IRM, refer to freeze code information in Document 6209, Master File Freeze Codes, Section 8A.4.

  3. Request a manual lien release transaction code (TC) 582, (lien indicator) in the following situations

    • The lien will not systemically release

    • The action you are taking will fully satisfy all outstanding liabilities and will not post within 30 days

    • It has been more than 30 days since the account was fully satisfied

    Refer to IRM 21.3.12.6.7, Lien Release Request, regarding manual lien releases. Employees with access to the Automated Lien System (ALS) should input the lien release. Employees without access to ALS should submit Form 13794, Request for Release or Partial Release of Notice of Federal Tax Lien, to the Centralized Lien Unit. The fax numbers can be found by selecting ″Lien Payoff/Release Contact Numbers″ under the Who/Where tab on the Servicewide Electronic Research Program (SERP) Home Page.

21.5.6.4.1  (10-01-2003)
A- Freeze

  1. The A- Freeze is set when all of the following are true:

    • There is a credit available for offset

    • A module has a balance due of $25 or more

    • The earliest collection statute expiration date (CSED) has expired on a balance due module

  2. A CSED transcript generates and is worked in the Collection function. The account is frozen and is released when a TC 534 is input. Refer to IRM 5.19.10.5.5, CSED Transcript, for more information on the A– Freeze.

21.5.6.4.2  (10-01-2013)
-A Freeze

  1. The -A Freeze is set when a duplicate return (TC 976), subsequent return (TC 977) or a TC 971 with action code (AC) 010 or AC 012-015 (amended return), posts to an account. A CP 36, Individual Master File (IMF) Duplicate Filing Notice, or Transcript (TRNS) 193 Business Master File (BMF) Duplicate Filing Condition (created by a frozen account), is generated and forwarded to the campus AM paper function.

    Exception:

    TC 971 with AC 010 or AC 012-015 does not generate a CP 36. TC 971 AC 010 will only generate a TRNS 193 in certain situations.
    Refer to IRM 21.6.7.4.4, Duplicate or Amended Returns — CP 36 (Duplicate Filing Condition) and IRM 21.7.9.4, Duplicate Filing Conditions Procedures, for more information.

  2. Refer to IRM 21.6.7.4, Adjusting Individual Tax Accounts Procedures, for Individual Master File (IMF) and IRM 21.7.9, BMF Duplicate Filing Conditions, for Business Master File (BMF) for instructions when working a -A Freeze case.

  3. Take the following action during a telephone inquiry:

    IF AND THEN
    Normal processing time of 8 - 12 weeks has not elapsed TC 976/ TC 977 has posted to the module but an adjustment has not been made Advise taxpayer to allow 8 -12 weeks for normal processing.
    Normal processing time of 8-12 weeks has elapsed,
    or
    the taxpayer furnishes additional information

    Note:

    Processing times for Form 1040 and/or Form 1040X may be temporarily extended. Refer to any SERP Alerts regarding these extended time frames.

    TC 976/ TC 977 has posted to the module, adjustment has not been made, and there is an open control to an employee
    1. Prepare Form 4442/e-4442, Inquiry Referral. Select "IRM" referral type and category "Open Control" . Print and fax IRM directed referrals to any area that does not have Account Management Services (AMS) access.

      Note:

      If the referral is to an open Correspondence Imaging System (CIS) case and you have access to CIS, input the taxpayer telephone inquiry information as comments on CIS. A Form 4442/e-4442 can be converted to a Portable Document Format (PDF) file and attached to the CIS case instead of printing and faxing.

    2. Advise taxpayer to allow 30 days for a response.

    Normal processing time of 8 -12 weeks has elapsed

    Note:

    Processing times for Form 1040 and/or Form 1040X may be temporarily extended. Refer to any SERP Alerts regarding these extended time frames.

    TC 976/ TC 977 has posted to the module, adjustment has not been made, and the open control is to a clerical function or a team number DO NOT initiate contact with a clerical team.
    • Put the control in "B" status if you have sufficient information to work the case and close the control if appropriate.

      Note:

      CATA criteria must be considered before adjusting an account. Refer to Exhibit 21.5.3-2Examination Criteria (CAT-A) - General.

      Exception:

      If the taxpayer is calling in regards to a carryback claim, refer to IRM 21.5.9.3.2 Status of a Carryback Application/Claim. If the taxpayer is calling in regards to an Injured Spouse claim, refer to IRM 21.4.6.5.3, Injured Spouse Inquiries.

    • If you do not have sufficient information to work the case, apologize for the delay in the processing of the return or amended return and advise the taxpayer to allow an additional 30 days.

    Normal processing time of 8 -12 weeks has elapsed

    Note:

    Processing times for Form 1040 and/or Form 1040X may be temporarily extended. Refer to any SERP Alerts regarding these extended time frames.

    TC 976/ TC 977 has posted to the module, adjustment has not been made, and there is no open IDRS control
    1. Prepare Form 4442/e-4442, Inquiry Referral. Select "IRM" referral type and category "A Freeze" . Route to the Campus AM paper function where the TC 976/ TC 977 posted.

    2. Advise taxpayer to allow 30 days for a response.

    3. If module shows a TC 971 with AC 12, 13 or 15, do as follows:

      • Select "IRM" referral type, category "Other write-in" .

      • Input "Unresolved amendment in Collection, Exam, Automated Underreporter (AUR), (as applicable), please work" .

      • Follow established procedures to route the referral to: AC 12 - Collections, AC 13 – Exam, AC 15 - AUR.

      • Advise taxpayer to allow 30 days for a response.

    Normal processing time of 8 -12 weeks has elapsed plus 30 additional days

    Note:

    Processing times for Form 1040 and/or Form 1040X may be temporarily extended. Refer to any SERP Alerts regarding these extended time frames.

    TC 976/ TC 977 has posted to the account and an adjustment has not been made Refer to the procedures in IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines
    Research and probing establish that the return is a true duplicate Research shows an open control to an employee Any adjustment or freeze release action must be coordinated. If the employee with the open control agrees, either
    • Close the control or put in "B" Status (as directed by the employee).

    • Release the freeze by inputting a TC 290 for .00 if appropriate.

    Research and probing establish that the return is a true duplicate Research shows no open control or a team control Take action as indicated in box 4 (no open control) or box 3 (open control to a clerical team) directly above.
    History item "REPRXA150" is present   Release -A Freeze by inputting a TC 290 for .00. Refer to IRM 21.6.7.4.4.1, CP 36 — Control, for more information.

21.5.6.4.3  (10-01-2002)
B- Freeze

  1. The B- Freeze is set when:

    • A payment erroneously posts to a wrong period which is fully paid

    • An offset from another period pays off an account prior to the payment posting

    • A subsequent payment posts to an account that appears to be full paid but contains penalty and interest restrictions

  2. To resolve a B- Freeze take the following actions:

    IF THEN
    Payment posted to the wrong period Input a credit transfer to move the payment to the appropriate module. Refer to IRM 21.5.8, Credit Transfers.
    An offset from another period has already paid off the account
    1. Research additional liability.

    2. If none exists, input TC 290 for .00 to release any overpayment.

    Taxpayer states the payment belongs to the tax period in question
    1. Compute applicable penalty and/or interest, or

    2. Refer to the interest specialist

21.5.6.4.4  (10-01-2003)
-B Freeze

  1. The -B Freeze is set when the Statute of Limitations for refund has expired. Tax modules with a -B Freeze generally have a TC 820 to transfer the overpayment to Excess Collection when the overpayment is on a delinquent original return.

    Note:

    Refer to the discussion on statute of limitations in IRM 25.6.1.10.2.7, Claims for Credit or Refund - General Time Period for Submitting a Claim, for information on suspension of the statute of limitations on refunds in certain cases. The Statute Unit works these cases when they receive a transcript.

  2. Resolve the -B Freeze:

    IF THEN
    Return is received more than 3 years after the extended due date Prepaid credits are no longer refundable.
    Return was timely filed Release the freeze.
    Return was not timely filed Explain why credit cannot be refunded.
    Taxpayer contends the return was timely filed
    1. Have taxpayer submit proof of timely filing.

    2. If taxpayer is unable to provide required documentation, request the return from files and verify the received date.

    3. Release the refund if appropriate.

    Note:

    Refer to the discussion on statute of limitations in IRM 25.6.1.10.2.9, Claims for Credit or Refund - Taxpayers in Special Situations, for statute suspension during periods of disability.

21.5.6.4.5  (03-30-2011)
C- Freeze

  1. The C- Freeze is set when there is:

    • Offset overflow - The offset storage within IDRS is not large enough to hold all generated transactions.

    • A credit balance has been completely offset and two or more debit modules still exist. Refer to IRM 3.14.1.6.11.3, Offset Overflow Freeze (C-).


    Refer to Document 6209 Section 8A.4.

21.5.6.4.6  (10-01-2010)
-C Freeze

  1. The -C Freeze, Combat Zone Indicator, is set when a TC 150 posts with Computer Condition Code (CCC) "K" or a TC 500 is input with cc 52, 54, or 56 to any module on the account. Refer to IRM 5.19.10.6, Combat Zone Accounts, and/or Document 6209 Section 8A.4.

21.5.6.4.7  (06-11-2007)
D- Freeze

  1. The D- Freeze is set when:

    • Taxpayer claims more estimated tax credits than are available. The D- Freeze may also result in a TC 667 resequencing to the spouse’s account on joint returns. The module is frozen.

    • Taxpayer with an outstanding liability on a previous joint return files a return showing a married filing separate or single filing status.

    • Taxpayer with an outstanding liability on a previous single or separate return files a return showing a married filing joint filing status.

    • The primary social security number (SSN) on a joint return was the secondary SSN on a prior year return that has an outstanding liability.

    • A TC 470 cc 97 posts; freezes entire account (all modules) from offset in or out (Large Corporation Offset Freeze). The posting of TC 470 cc 97 will not freeze designated overpayments from refunding.

  2. No action is needed to release a D- Freeze and credit transfers should not be input:

    IF THEN
    A return is filed claiming more estimated tax credits than are available
    1. The computer automatically checks for additional credit under the spouse’s SSN, and releases the freeze 3 cycles from the TC 150 posting cycle.

    2. A CP 23, Estimated Tax Discrepancy, Balance Due, CP 24, Estimated Tax Discrepancy, Overpayment, or CP 25, Estimated Tax Discrepancy, generates when the freeze is released if no credits are located.

    3. If the taxpayer is calling in response to a notice, refer to IRM 21.3.1.4, Notice Descriptions, for more information.

    A return showing a married filing separate or single filing status is filed by a taxpayer who has an outstanding liability on some previous year’s joint return (This can also happen in reverse, see (1) above) or the primary SSN on a joint return was the secondary SSN on a prior year return that has an outstanding liability.
    1. The freeze automatically releases after the offset to the joint balance due occurs, usually 2 to 3 cycles after the TC 150 posting cycle.

    2. If the original refund was requested as a direct deposit and denied because of the module freeze, any remaining credit, after the freeze resolution, will be issued via direct deposit.

    Note:

    The return must be a current year return and the posting and freeze release must all occur in the same processing year for the direct deposit to occur. For more information, refer to IRM 21.4.1.4.7, Direct Deposits — General Information.

    A TC 470 cc 97 posts; freezes entire account (all modules) from offset in or out. (Large Corporation Offset Freeze). The posting of TC 470 cc 97 will not freeze designated overpayments from refunding.
    1. The freeze is released by manual input of TC 472 cc 97 (input by BMF Adjustment employees designated to work Large Corporate Accounts), or

    2. After the expiration of the 52 cycle systemic hold.

21.5.6.4.8  (04-17-2006)
-D Freeze

  1. The -D (Refund Statute Expiration Date (RSED) Freeze is set when:

    • An expired RSED is present

    • An IMF/Business Master File (BMF) adjustment (TC 29X/TC 30X) posts to the account

    • A return posts to a Substitute For Return (SFR) tax module and the IRS received date of the source document/SFR return is more than three years after the due date or extended due date, whichever is later

  2. All or part of the credit must be made up of prepaid credits (prepaid credits are credits posted by the due date of the return). The credit is frozen, and an RSED-STAT transcript is generated and distributed to the Statute function for resolution 4 cycles after the -D Freeze is set.

  3. If 45 days have passed since the cycle of the -D Freeze, prepare Form 4442, Inquiry Referral, and forward to the Statute function where the RSED-STAT transcript generated, along with any documentation the taxpayer furnishes. Advise the taxpayer to expect a response within 30 days. Do not send Form 4442, Inquiry Referral, prior to 45 days.

21.5.6.4.9  (10-01-2012)
E- Freeze

  1. The E- Freeze is set when no original return (TC 150) has posted and:

    • A duplicate (BMF TC 976) or amended (IMF TC 977) return posts to the tax module

    • A TC 971 AC 010 or AC 012−015 is input

  2. Amended return freeze is set and CP 29, Amended Return Posted, No Original, (IMF) or CP 190, Amended Return Posted, No Original, (BMF) is issued, unless the freeze is initiated by the TC 971 AC 01X. The module is frozen from offset or refund until the freeze is released by the posting of the TC 150.

    1. E- Freeze cases are assigned to the Campus AM Paper function. You must coordinate actions with the controlling employee. If the case is not controlled, AM toll free telephone staff should prepare Form 4442, Inquiry Referral, and route it to the Campus AM paper function within your directorate.

      Note:

      Follow procedures in IRM 21.4.1.3.1, Locating the Taxpayer’s Return, for suggested research command codes that will provide information on paper and electronic returns. Follow procedures in IRM 21.4.1.3.1.1, Return Not Found, for paper and electronic filed returns not found and the actions needed for resolution.

    2. Resolution of an E- Freeze depends on whether or not the taxpayer filed a duplicate or amended return.

    IF AND THEN
    Taxpayer filed an original return under an incorrect/invalid Taxpayer Identification Number (TIN) or spouse's SSN Filed a subsequent amended return under the correct TIN
    1. Research IDRS to locate the original return.

    2. If the return is located, request the document.

    3. Process to the correct account.

    4. Input TC 971 AC 002 on the incorrect TIN or spouse's SSN module to cross reference the correct TIN.

    Taxpayer filed a duplicate return or amended return You cannot find original on IDRS
    1. IMF − Follow procedures in IRM 21.6.7.4.2.5, TC 150 Not Located − Duplicate or Amended Return Obtained.

    2. BMF − Follow procedures in IRM 21.7.9.4.10, TRNS 190, Amended Return − No Original Posted.

    Taxpayer filed a duplicate return or amended return You cannot find original on IDRS and taxpayer wants to go to a Taxpayer Assistance Center.
    1. Advise taxpayer that the walk in office cannot release the freeze.

    2. Return will be accepted and forwarded to the appropriate campus for action.

    3. IMF − Refer to procedures in IRM 21.6.7.4.2.5, TC 150 Not Located − Duplicate or Amended Return Obtained.

    4. BMF − Refer to procedures in IRM 21.7.9.4.10, TRNS 190, Amended Return − No Original Posted.

    Taxpayer did NOT file a duplicate or amended return There is an open control on IDRS
    1. Prepare Form 4442/e-4442, Inquiry Referral, and send to the open control.

    2. Advise taxpayer of the normal time period for processing the return.

    Taxpayer did NOT file a duplicate or amended return Normal time period for processing the return has elapsed and there is no open control on IDRS
    1. Request return causing the E- Freeze (TC 976/ TC 977 Document Locator Number (DLN)).

      Exception:

      Do not request the return if the TC 976 generated from the input of TC 971 AC 01X. There is no return associated with the DLN.

    2. Review return for completeness.

    3. Request missing documents and/or information from the taxpayer.

    4. IMF - Reprocess as the original using the original DLN.

      Exception:

      If the TC 976 DLN generated from the input of TC 971 AC 01X you cannot use the TC 976 DLN (Document Code 77) to reprocess the return. Send through Submission Processing to be processed requesting a new DLN. Input TC 971 AC 002.


      Follow procedures in IRM 21.5.2.4.23, Reprocessing Returns/Documents, and Exhibit 21.5.2–1, Preparing Form 3893, Re-Entry Document Control, for more information.

    5. BMF - Reprocess as the original using Form 13596, Reprocessing Returns, and request a new DLN. Refer to Exhibit 21.5.2–2,Preparing Form 13596 Reprocessing Returns, for more information. Input TC 971 AC 002 to suppress the generation of CP 193, Duplicate Filing Condition.

    6. Advise taxpayer of the processing time frame. Refer to IRM 21.4.1.3(2), Refund Inquiry Response Procedures for information on processing time frames.

    E– Freeze was created by a TC 971   Follow procedures in IRM 21.6.7.4.2.5, TC 150 Not Located - Duplicate or Amended Return Obtained, for IMF information and IRM 21.7.9.4.10, TRNS 190, Amended Return - No Original Posted for BMF.

    Note:

    If an amended return was processed to an incorrect module and a TC 971 AC 01X was placed on the account to create the E- Freeze, input a TC 971 AC 002 to cross-reference the other tax period and to release the E- Freeze.

21.5.6.4.10  (10-01-2013)
-E Freeze

  1. The -E Freeze (Federal Tax Deposit (FTD) Discrepancy freeze) on BMF is set when:

    • A BMF return or subsequent transaction posts with a balance due (any module debit) and there is a discrepancy in the amount of FTDs claimed

    • TC 810 is placed on an IMF account by the Examination function

  2. A -E Freeze prevents generated offsets into the module.

  3. Resolve a -E Freeze in one of the following ways:

    IF THEN
    There is a discrepancy with FTD credits on a BMF account
    1. Verify deposits with taxpayer.

    2. Transfer any deposit(s) found during research to correct module.

    You cannot find deposit(s)
    1. Advise taxpayer to submit a copy of the canceled check, money order, etc., and other pertinent information/correspondence to help find payment.

    2. Refer to IRM 21.5.7, Payment Tracers, for procedures.

    Master File account contains a TC 810
    1. You cannot resolve it.

    2. Research IDRS to determine why the TC 810 was placed on the account.

      • TC 810-1 indicates pre-filing notification. Refer IRM 21.5.10.4.1.2, Examination Refund Hold Projects

      • TC 810-2 indicates an Abusive Tax Shelter Detection (ATSDT) freeze. Refer to IRM 21.5.10.4.1.2, Examination Refund Hold Projects

      • TC 810-3 indicates an Earned Income Tax Credit (EITC) freeze
        Refer to IRM 21.5.10.3.1, IDRS Research Exam Issues, and IRM 21.5.10.4.1.2, Examination Refund Hold Projects, for more information

      • TC 810-4 indicates a Frivolous Return. If you receive a call with TC 810-4 on the module, determine if the taxpayer has received a Letter 3176C. Encourage the taxpayer to respond to the Letter 3176C and file a corrected return within the 30 day time frame provided. Refer to IRM 21.5.3.4.16.7, Identifying Frivolous Returns/Correspondence and Responding to Frivolous Arguments. If the taxpayer has not received a Letter 3176C, prepare and fax a Form 4442/e-4442 to the Ogden Frivolous team at 801–620–3947. Do not give this number to taxpayers. Route paper cases to
        Ogden Compliance
        1973 N Rulon White Blvd
        M/S 4450
        Ogden, UT 84404

21.5.6.4.11  (10-01-2011)
F- Freeze

  1. The F- Freeze is a Frivolous Return Program freeze set by posting a TC 971-089. Refer to IRM 21.5.3.4.16.7, Identifying Frivolous Returns/Correspondence and Responding to Frivolous Arguments and/or Document 6209, Master File Freeze Codes, Section 8A.4.

21.5.6.4.12  (06-06-2013)
-F Freeze

  1. The -F Freeze is an advance payment freeze set when a taxpayer submits a payment on a determined deficiency prior to assessment (TC 640).

  2. To resolve the -F Freeze:

    IF THEN
    Taxpayer’s payment posts to wrong period Transfer the misapplied payment to the correct module. Refer to IRM 21.5.8, Credit Transfers.
    Taxpayer’s payment posted as a TC 640 after the assessment
    1. Input a credit transfer to reverse the TC 640 with TC 642.

    2. Reinput with a TC 670 with bypass indicator (BPI) "1" and designated payment code (DPC) "99" to release the freeze.

    3. Input credit transfers to reverse each TC 640, if multiple TC 640 are on the account.

21.5.6.4.13  (10-01-2012)
G- Freeze

  1. The G- (Restricted Failure to Pay Penalty) Freeze is set by:

    • A TC 270 generated by the posting of TC 150 with condition code "Z" or computer condition code (CCC) "K" , refer to Document 6209, Section 3.5 Computer Condition Codes, or

    • A TC 270 or TC 271 input with an adjustment action

  2. To resolve the G- Freeze:

    IF THEN
    Taxpayer inquires about payoff balance
    1. Follow procedures in IRM 21.7.11.4.5, CP 186 - Notice of Potential Manual Interest/Penalty Adjustment, for BMF accounts, and IRM 21.3.1.4.51, CP 86 Restricted Interest/Penalty Conditions, for IMF accounts.

    2. If you identify a G- freeze case while staffing the AM toll free telephone line, and the inquiry requires manual computation of penalty, prepare Form 4442, Inquiry Referral, and route it to the Campus AM paper function within your directorate.

      Exception:

      If there is an open control on the account, refer Form 4442 to the employee who has the open control.

      Note:

      Do not prepare a referral if the maximum FTP penalty has been assessed. A TC 971 AC 262 will be on the account if the maximum FTP Penalty has been assessed.

    3. Advise the taxpayer to expect a response within 30 days.

    Taxpayer was in a recognized combat zone
    1. Follow the Telephone Transfer Guide instructions located under the Who/Where tab on the SERP Home Page, for combat zone inquiries received on the toll free line.

    2. Follow procedures in IRM 5.19.10.7.2.2, Combat Zone Research, for combat zone correspondence.

21.5.6.4.14  (10-01-2011)
-G Freeze

  1. The -G (Math Error) Freeze is set when a taxpayers return is changed or corrected during processing, or by a TC 290, Block 77/78, adjustment.

    IF THEN
    Taxpayer does not understand the math error notice
    1. . Refer to Document 6209, Taxpayer Notice Codes, Section 9.

    2. Research Command Code (CC) RTVUE/BRTVU, and TRDBV to determine how the error(s) occurred.

    3. Furnish an explanation.

    4. Refer to IRM 21.5.4, General Math Error Procedures.

    5. If there is a balance due. Refer to IRM 5.19.1, Balance Due, or for Individual Master File (IMF) accounts refer to IRM 21.3.12, Accounts Management IMF Balance Due Telephone Contacts.

    Taxpayer is protesting the Math Error Regardless of TC 150 date, refer to IRM 21.5.4, General Math Error Procedures, for further instructions.

21.5.6.4.15  (11-28-2008)
H- Freeze

  1. The H- Freeze is set when a taxpayer overpays on an individual return while owing a balance on a BMF account. The freeze is automatically released in 2 cycles (from date the H- Freeze is set) by a TC 896 on the IMF module.

  2. If the freeze does not release in two cycles, release it manually, and transfer the required funds to satisfy the outstanding liability (including accrued penalties and interest) using CC ADD24/ADD34. Refer to IRM 21.5.8, Credit Transfers, or input a correcting adjustment using CC REQ54/ADJ54.

  3. A CP 185, Frozen Designated Penalty Payment Transcript, is generated on a BMF module when all of the following conditions are met:

    • TC 690 posts to a module

    • There is no posted unreversed penalty on the module

    • The payment puts the module in credit balance

    An H– Freeze is set in the same cycle the CP 185 is generated. It prevents any computer-generated refunds or offsets from the module until the freeze is resolved. The freeze will release automatically 8 cycles later, if other actions which release the freeze do not occur. The freeze is released by:

    1. Reversal of the credit

    2. Posting of a penalty

    3. Input of TC 290 or TC 300 with a penalty

    4. Automatic 8 cycle release

21.5.6.4.16  (10-01-2006)
–H Freeze

  1. The -H (Credit Balance on a BMF Module) Freeze is set when a payment posts to a tax period for which there is no filing requirement (Status code is 06 and TC 59X on module).

  2. To resolve the -H Freeze:

    IF THEN
    Taxpayer indicates there is no liability for the return period Input a credit transfer if the payment belongs to another period. Refer to IRM 21.5.8, Credit Transfers.
    Taxpayer wants a refund Advise taxpayer that a signed return/claim for refund must be filed 3 years from the time the original return was filed or 2 years from the time the tax was paid, whichever is later. See the note below regarding the limitation on the amount that may be refunded.

    Note:

    If the claim for refund is filed within the 3 year period, the amount to be credited or refunded is limited to the tax paid during the 3 years immediately preceding the filing of the claim (plus the period of any extension of time to file). If the claim for refund is not filed within the 3 year period, the amount is limited to the portion of the tax paid during the 2 years immediately preceding the filing of the claim.

21.5.6.4.17  (10-01-2012)
I- Freeze

  1. The I- Freeze is set when a taxpayer files a return that posts to an invalid IMF segment or when a taxpayer fails to provide requested information resulting in an unprocessable code. A Computer Condition Code (CCC) U appears on CC TXMOD and RTVUE. Credit Interest has been restricted. Refer to IRM 21.5.4, General Math Error Procedures, when SSN is invalid or missing to resolve math error issues created by the invalid SSN.

    Caution:

    Do not release a refund from an invalid SSN without sufficient documentation (marriage certificate, divorce, etc.) and thoroughly researching for any outstanding IRS or Treasury Offset Program (TOP) obligations on the valid SSN.

    Reminder:

    Remember to make use of all command codes especially CC INOLE/NAMES when researching for additional SSN information. Also, probe the taxpayer for any additional TINs they may have used in addition to the valid TIN.

  2. Most I- Freeze issues can be resolved by one of the following actions:

    IF AND THEN
    Freeze is due to an invalid SSN Taxpayer provides a name change Refer to IRM 3.13.5.118.4, Correcting Taxpayer Names without Documentation, for further information.
    Freeze is due to an invalid SSN Taxpayer provides a valid different TIN Refer to IRM 21.6.2.4.1, Resequencing Accounts, for further information.
    Freeze is due to an invalid SSN If more than one individual is posted to invalid TIN Refer to IRM 21.6.2.4.3, Mixed Entity Procedures, or IRM 21.6.3.4.2.7.13.4, CP 54 Notices With Math Error Involvement.
    Freeze is due to an invalid SSN   Refer to IRM 3.13.5.61, Processing Undeliverable CP Notices/Correspondence/Correspondex Letters, for further information. Refer to the relevant portion of this IRM to resolve other freezes.
    Taxpayer’s return is not processable due to an invalid TIN Taxpayer does not qualify for an SSN Refer to IRM 3.21.263, IRS Individual Taxpayer Identification Number (ITIN) Real Time System (RTS), for further information. Refer to the relevant portion of this IRM to resolve other freezes.
    Return is not processable due to missing information (i.e., missing IMF Schedule A, missing BMF Schedule K-1, etc.). If the only item missing is the signature, see procedures below.  
    1. Obtain a copy of the missing documentation from the taxpayer.

    2. Verify all tax amounts and credits claimed with CC TXMOD and CC RTVUE.

    3. Adjust the account, using the date the missing information was furnished as the Return Processable Date (RPD).

    4. Refer to IRM 21.5.1, General Adjustments, for further information. The RPD must be included to correct the "U" condition code.

    Missing signature ONLY and IRS has processed the return The taxpayer is willing to provide a faxed signature
    NOTE: Refer to IRM 11.3.1.11, Facsimile Transmission of Tax Information, for additional information regarding faxes.
    1. Validate that you are speaking to the taxpayer or the taxpayer's authorized representative. Follow the normal disclosure procedures as discussed in IRM 21.1.3.2, General Disclosure Guidelines, and in IRM 21.1.3.3, Third Party (POA)/(TIA)/F706) Authentication.

    2. Specifically advise the taxpayer "the faxed signature will be treated as the taxpayer's original signature, and will become a permanent part of the tax return" .

    3. Fax a print of the IDRS Letter 12C, Individual Return Incomplete for Processing: Form 1040, Form 1040A and 1040EZ, selective paragraph 9 (jurat) to the number provided by the taxpayer.
      Notate on the print above paragraph 8, the form number, tax period, taxpayer's name from the return, and the TIN. Refer to IRM 11.3.1.11, Facsimile Transmission of Tax Information.

    4. Give the taxpayer your fax number.

    5. Once you receive the faxed signature, determine if the received date is after the return due date. If it is, you must correct the original Assessment Statute Expiration Date (ASED) posted on the taxpayer's account per IRM 25.6.1.6.14(2), Criteria for Establishing a Statute of Limitation Period, by inputting TC 560, using CC FRM77. Use the received date of the signature in the TRANS- DT> field.

    6. Refer to instructions in IRM 20.2.4.4.1, Updating RPD on Unprocessable Returns, for instructions to update the RPD and release the refund.

    7. Prepare Form 9856, Attachment Alert, or similar document (Form 10023, Form 10054) to attach the jurat statement to the return.

    Missing signature ONLY and IRS has processed the return The taxpayer does not have access to a fax machine Tell the taxpayer to send a signed copy of his return to the return address shown on their notice. Advise them to write "Copy" on the top of the return.
    When the signature is received, follow directions 5–7 above.
    Freeze on an IMF or BMF account is due to the posting of TC 770  
    1. Release is not necessary because taxpayer has already received credit interest.

    2. Any subsequent refundable credit requires manual computation of interest.

  3. If a scrambled SSN indicator "20" is present on ENMOD or an open control with category "SCRM" or "SSA2" , prepare Form 4442, Inquiry Referral, and forward to the Campus AM paper function that scrambled the SSN. If there is an open control, route Form 4442 to the employee with the open control. For additional information, refer to IRM 21.6.2.4.2, Multiple Individuals Using the Same TIN.

  4. For other reasons an I– Freeze would generate, and the related release actions, refer to Document 6209 Section 8A.4.

21.5.6.4.18  (04-17-2006)
-I Freeze

  1. The -I (Debit Interest) Freeze sets when a manual abatement or assessment requirement is placed on an account. The -I Freeze is generated when a TC 340/ TC 341 posts or when CCC "Z" is placed on an account identifying combat zone taxpayers entitled to an automatic postponement of a deadline. You must manually compute interest on adjustments input on an account with the -I Freeze.

  2. Do not take any action to release the freeze.

    IF THEN
    Taxpayer inquires about payoff balance
    1. Initiate a referral to the interest specialist to have interest recomputed manually.

    2. If you identify a –I Freeze case while staffing the AM toll free telephone line, and the inquiry requires manual computation of interest, prepare Form 4442, Inquiry Referral, and route it to the Campus AM paper function within your directorate.

      Exception:

      If there is an open control on the account, refer Form 4442 to the employee who has the open control.

    3. Advise the taxpayer to expect a response within 30 days.

    Taxpayer was in a recognized combat zone
    1. Follow the Telephone Transfer Guide, located under the Who/Where tab on the SERP Home Page, for combat zone inquiries received on the toll free line.

    2. Follow procedures in IRM 5.19.10.6, Combat Zone Accounts, for combat zone correspondence.

21.5.6.4.19  (10-01-2012)
J- Freeze

  1. The J- Freeze on IMF is set when a taxpayer claims fewer credits on the return than are available on Master File. Determine who the excess credits belong to. Verify the estimated tax payments were not included with the withholding claimed on the return. Refer to IRM 21.6.3.4.2.2.1, W/H Adjusting the Account.

    Note:

    Refer to Document 6209 Section 8A.4, for conditions which set/release J- Freezes on BMF modules.

  2. Information from the taxpayer determines whether and how you can resolve inquiries concerning discrepancies in estimated tax credits.

  3. Release the J– Freeze by using one of these methods:

    IF AND THEN
    Taxpayer verifies payment(s) Furnishes logical reason for not claiming the credit Input TC 290 for .00 with priority code (PC) 8 to refund the overpayment.
    Taxpayer verifies payment(s) Taxpayer’s responses are questionable Refund must be requested in writing.
    Credits are for spouse’s or ex-spouse’s account Taxpayer can provide information for normal disclosure and credit transfer
    1. Transfer payments to correct account.

    2. Refer to IRM 21.5.8, Credit Transfers.

    Taxpayer states payments are not theirs After research you can determine where credits belong
    1. Transfer payments to correct account.

    2. Refer to IRM 21.5.8, Credit Transfers.

    Taxpayer states payments are not theirs After research, you cannot determine where credits belong
    1. Transfer excess credits to Excess Collections File (XSF) if more than one year old using Form 8758, Excess Collection File Addition. Refer to IRM 3.17.220.2.1.1, Preparation of Form 8758, for more information.
      If less than one year old, move to Unidentified Remittance File (URF) using Form 2424, Account Adjustment Voucher. Refer to Exhibit 3.11.10–19, Form 2424, Account Adjustment Voucher, for more information.

    2. Forward to the appropriate campus Accounting function.

    Reminder:

    If moving the credit to XSF or URF, input TC 971 AC 296 on the module payment/credit posted to. This indicates all research of the primary and related Taxpayer Identification Numbers (TIN) was completed prior to the transfer to XSF or URF.

21.5.6.4.20  (11-28-2008)
-J Freeze

  1. The -J (Math Error) Freeze is set when a taxpayer disagrees, without substantiation, with the notice of a math error that increased his or her tax and the Service abates the change at the taxpayers request per IRM 21.5.4.4.5, Math Error Unsubstantiated Protest Processing. Credit on the account is frozen and the case is set up on the Audit Information Management System (AIMS) data base for review.

  2. The -J Freeze is set by TC 470 with cc 94, converting a previously set -G Freeze. The -J Freeze prevents issuance of balance due notices or transition into TDA status prior to the adjustment posting. The -J Freeze should only be on the module until the adjustment posts.

  3. No adjustment action may be taken on these accounts.

    1. Prepare Form 4442, Inquiry Referral, and refer to the appropriate Examination function.

    2. Enter a history item in IDRS.

    3. Advise the taxpayer to expect a response within 30 days.

    4. Refer to IRM 21.5.3, General Claims Procedures, and IRM 21.5.4.4.5, Math Error Unsubstantiated Protest Processing, for additional information.

21.5.6.4.21  (10-01-2007)
K- Freeze

  1. The K- (Erroneous Credits) Freeze is set when the module balance is a credit, but the credit is not entirely refundable. A debit clearance (TC 606) that posted prior to an additional credit frequently causes a K- Freeze.

  2. Release the K- Freeze by one of the following actions:

    IF THEN
    Credit should have posted to another module
    1. Transfer the payment to the correct module.

      Note:

      Be sure to consider penalty adjustments if the transfer involves estimated tax or FTD payments.

    2. Refer to IRM 20.1, Penalty Handbook, if you need further information about penalty adjustments.

    TC 670 subsequent payment created the freeze and should be refunded
    1. Input TC 672 for the date of the payment and TC 670 for the amount of the payment and date of the TC 606. This action will generate a TC 607, which will release the freeze.

    2. Refer to IRM 21.5.8, Credit Transfers, for credit transfer information.

21.5.6.4.22  (06-17-2013)
-K Freeze

  1. The -K Freeze is set by including a specified hold code (HC) in a Data Processing (DP) or Examination adjustment. Credit module balances are frozen from refund or offset when a TC 29X/TC 30X posts with HC 1, 2 or 4.

  2. Question the taxpayer, then research IDRS/Corporate Files On Line (CFOL) to ensure:

    • There are no open control bases

    • The return is not missing essential forms or schedules

    • Research indicates no manual refund is being issued

    • Credit is not being transferred to Excess Collections or the Unidentified File

    • Account does not need a credit elect

    • TC 150 has not been moved to another tax year, but prepaid credits were left on the account. Request a copy of the correct return for the account from the TP and adjust the account

    • No other liabilities or open Examination cases exist, and taxpayer is entitled to the credit

    • If a scrambled SSN indicator "20" is present on ENMOD, or an open IDRS control category "SCRM" or "SSA2" is present, follow procedures in IRM 21.6.2.4.2, Multiple Individuals Using the Same TIN

  3. If the freeze should be released, input TC 290 for .00. Refer to Document 6209 Section 8A.4, for additional ways to release a -K Freeze.

  4. For a TOP Offset that was reversed through the External Lead process and has an open IDRS control to 0926000314 and activity "FRAUD CASE" , refer the case to IVO on a Form 4442, using IVO Activity "Unresolved Module Freeze" . See IRM 21.5.6.4.35.3, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for additional information.

21.5.6.4.23  (10-01-2013)
L- Freeze

  1. This freeze is set on BMF when a Master File Tax (MFT) 60 module (Form 2290, Heavy Highway Vehicle Use Tax Return), has a credit balance of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • The freeze was created to prevent erroneous refunds

    • The credits are recorded on the Form 2290 Credit Report which is worked by the Centralized Excise Tax Group at the Cincinnati campus

    • The module is frozen from refund and offset


    Route all MFT 60 L- freeze issues to the Excise Operation for resolution. Refer to IRM 21.7.8.3, Excise Tax Centralization, for additional information.

  2. An L- Freeze is also generated for IMF from input of a TC 971 AC 065 when Form 8857, Request for Innocent Spouse Relief, is received.

  3. For resolution of this freeze refer to IRM 25.15, Relief from Joint and Several Liability, for Innocent Spouse procedures. Refer to IRM 21.7.8, Excise Taxes, for Form 2290 instructions. Also refer to IRM 21.5.8, Credit Transfers, for credit transfer instructions.

21.5.6.4.24  (11-04-2011)
-L Freeze

  1. The -L (Open Examination Indicator) Freeze is set when a TC 420 or TC 424 posts to an account that has been referred to Examination. It does not freeze the account. Before making adjustments to the account, research the following IRMs for specific procedures:

    • IRM 21.5.3.4.7, Processing Claims and Amended Returns With Examination Involvement

    • IRM 21.5.4.4.4, Math Error Substantiated Protest Processing

    • IRM 21.5.4.4.5, Math Error Unsubstantiated Protest Processing

    • IRM 21.5.10.3.1, IDRS Research Exam Issues


    Refer to IRM 21.5.10, Examination Issues, before making an adjustment to the account.

  2. If this is a duplicate return, an IMF internal notice CP 93, Duplicate Filing Condition on Module Under Investigation, is issued. A CP 293, Duplicate Filing Condition on Module Under Audit Investigation, is generated when a duplicate return posts to a BMF account with an open TC 420 present.

  3. No action is required to release a -L Freeze.

    Note:

    Refer to Document 6209, Priority Codes, Section 8C.2, for PC 1 guidelines.

  4. Initiate the necessary actions to correct entity information and input credit transfers even though a -L Freeze is present.

21.5.6.4.25  (10-01-2010)
M- Freeze

  1. The M- Freeze is an account transfer freeze set by posting a TC 400. Refer to Document 6209, Master File Freeze Codes, Section 8A.4.

21.5.6.4.26  (10-01-2010)
-M Freeze

  1. The -M Freeze indicates a Maritime Industry Filer. Refer to Document 6209, Master File Freeze Codes, Section 8A.4.

21.5.6.4.27  (04-17-2006)
N- Freeze

  1. The N- Freeze is set if a module is in notice status. This freeze is on the IMF and the Automated Non-Master File (ANMF) until the balance becomes zero or a TDA.

  2. Refer to IRM 21.2.1.5, Non-Master File, for information on non-master file accounts.

  3. Refer to IRM 21.3.1, Taxpayer Contacts Resulting From Notice Issuance, for additional information on notices. Refer to Document 6209, Section 9, Notices and Notice Codes, for a listing of notices and notice codes.


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