Resequencing on the Individual Master File (IMF) is often involved with the validity of a TIN.

Resequencing accounts is accomplished by one of two methods:

When resequencing an Individual Taxpayer Identification Number (ITIN), see IRM 3.21.263.7.4, Merges Involving ITIN, for information on the revocation of an ITIN and for processing steps. If the revocation of the ITIN is necessary AND the only remaining action is the complete posting of the resequence, in addition to the steps listed in IRM 3.21.263.7.4 take the following steps prior to routing or faxing the Form 4442 to the Submission Processing Center (SPC) ITIN Unit:

If the primary TIN and name control (NC) do not match (invalid), they are identified by an asterisk after the TIN. On joint returns, the spouse's TIN is preceded by a "1" if the TIN is invalid.

On IMF Retention Register Microfilm transcripts, the computer assigns a validity digit of "0" when TIN and NC match (valid). A validity digit of "1" is assigned when TIN and NC do not match.

When the DM-1 data tape file is received, it is systemically compared to the invalid segment of MF.

Resequencing created by entity transactions is accomplished by a name change (TC 013) or a TIN change (TC 011) to MF.

Resequenced accounts which fail to merge, return to their original validity slots.

Action required:

DO NOT MERGE accounts if:

Cases involving merge issues are worked by the designated specialized sites. This applies to cases identified as such after close of business March 7, 2010. Cases identified prior to close of business March 7, 2010, should not be reassigned to the holding number, 0830105044, but should be worked by the campus where the cases are currently assigned. There are two types of cases involving merge issues:

The reassignment to the holding number, 0830105044, is performed systemically for cases that generate a NOMRG or REVAL transcript.

The reassignment of potential NOMRG cases to the holding number, 0830105044, is performed manually. As indicated above, this reassignment applies only to cases identified after close of business March 7, 2010, as potential NOMRG cases.

Customer Service Representatives (CSRs) should prepare a Form 4442 to refer taxpayer inquiries regarding identity theft and Scrambled SSN cases. Do not prepare a referral (4442) if the taxpayer is calling only to check on the status of their refund/claim and does not provide additional information to assist in resolving the case.

A mixed entity case controlled on IDRS can be identified by control categories "MXEN" or "IDT3" .

A mixed entity case can also be identified by an "IDT1" controlled case that was previously controlled as a "DUPF" case.

A potential mixed entity case may be indicated by a "DUPF" control and an "IDT1" control. For the purposes of preparing a referral, treat this situation as a mixed entity. The referral should be sent to the employee who has the "IDT1" control.

A potential mixed entity case may be indicated by a "DUPF" control and a "TPRQ" control. In this case, the "TPRQ" case would be a Form 14039, Identity Theft Affidavit, or some other type of notification of identity theft, e.g., a police report. Exercise the same caution as described in the note above. The referral should be sent to the employee who has the "TPRQ" control.

An account that has been scrambled, or is in the process of being scrambled, can be identified by control category "SCRM" or by control category "SSA2" . An account that has been scrambled will also have identifying information on CC ENMOD or IMFOLE:

Include any information which would assist in resolving the identify theft or scrambled SSN case.

Caution: If you identify a mixed entity case while staffing the AM toll-free telephone line or are located in a Taxpayer Assistance Center (TAC), prepare Form 4442, Inquiry Referral as follows:

Refer Scrambled SSN Forms 4442 as follows:

CSRs must not take action on mixed entity or Scrambled SSN accounts. This includes but is not limited to the following:

If the taxpayer has not satisfied the disclosure verification process, do not terminate the call. Do not give out account information on the common number. Complete Form 4442, including all information obtained from the taxpayer. Include the address, phone number and all possible return information on the Form 4442 to help identify which taxpayer called. Route Form 4442 per the above guidelines in this subsection.

If a 239C letter has been sent, and the taxpayer has not responded, advise the taxpayer to complete the 239C letter questionnaire and return it with all of the documentation requested. See IRM 21.6.2.4.4.5,Determining if the Refund Should be Released, for documentation requested in the 239C letter. Refunds will be held until a complete 239C letter response is received.

If the taxpayer is calling in regard to any 239C letter, complete Form 4442 including all information obtained from the taxpayer. If available, include on the Form 4442 a telephone number where the taxpayer can be reached, and the best time to call the taxpayer. Route Form 4442 per the above guidelines in this subsection. Inform the taxpayer that this matter can best be addressed by telephone contact from the area that issued the letter. If appropriate, notify the taxpayer that the representative making this contact may speak only English.

Low Income Taxpayer Clinics (LITCs) can assist low income taxpayers in resolving issues with the IRS involving a mixed entity or scrambled SSN case. LITCs also help educate taxpayers who speak English as a second language about their taxpayer rights and responsibilities. If appropriate, notify the taxpayer about the availability of LITCs. Refer the taxpayer to Publication 4134, Low Income Taxpayer Clinic List.

Examine taxpayer inquiries for any indication of identity theft involving mixed entity criteria.

Follow procedures in IRM 21.6.2.4.2.3, Preliminary Research, for tax-related identity theft issues involving questionable ownership of a primary TIN on a filed return (mixed entity criteria).

Provide guidance for non-tax-related identity theft using an appropriate letter. Examples would include references to a lost or stolen purse/wallet, questionable credit card activity, or a questionable credit report. If there are no indications the tax return involved tax-related identity theft, refer to resources provided in IRM 21.9.2.3, Identity Theft - Telephone Overview

All cases involving identity theft will receive priority treatment. This includes, but is not limited to, cases with identity theft documentation attached and cases referred via Form 14027B, Identity Theft Case Referral. Follow procedures in IRM 10.5.3.2.11.1.1, Functional Responsibilities Regarding Referrals from the IPSU, when a Form 14027B or a Form 14103 is received.

Make every effort to locate the correct TIN for each taxpayer before contacting the taxpayer(s).

Research IMFOL, RTVUE, NAMES, INOLE, DUPOL, FFINQ, REINF, and IRPTR, etc.

For ITIN cases, use EUP/RTS to locate DLNs to request any relevant original Form W-7 application documents.

Search returns, schedules, and forms for a different TIN, if applicable. Research spouse and dependent information whenever available.

Compare all documents and return information for:

Research the TIN (valid and invalid) to determine if there was a mixed entity, identity theft, or scrambled case in prior years and subsequent years to locate any possible cross-reference TIN.

If a valid TIN can be located for each taxpayer and the CN is an SSN, change the category code to a MXEN and retain the case.

If the case shows prior AMTAP involvement, before taking any preliminary research actions, see IRM 21.6.2.4.2.3.2, TIN-Related Problems Cases with Previous AMTAP Involvement.

If the case shows a deceased taxpayer indicator on cc INOLET, before taking any preliminary research actions, see IRM 21.6.2.4.2.3.3, TIN Related Problem Cases with Deceased Taxpayer Indicators.

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If a valid TIN cannot be located for each taxpayer and the CN is an SSN, or if the case does not meet the criteria in paragraphs (8), (9) or (10) above, refer to paragraphs (15) and (16) to determine how the case should be categorized (i.e, IDT1, or IDT3), before reassignment to the Andover holding number.

Record all significant research actions and information on the appropriate sheet according to the instructions in IRM 21.6.2.4.2.4, Case History Sheet. Also include a CIS Case Note when a determination is made ( i.e., CP05A, DECD TP, etc.). Refer to paragraph (16) below for additional information on how to categorize and reassign the case.

The CSR/TE's resolving the identity theft case will utilize Command Code (CC) ESTAB to request all paper returns that arenecessary to process their case. A return will be necessary, if any of the following conditions are met:

If the return is required and is not already attached to the case, CSR/TE's resolving the identity theft case should utilize cc ESTAB using "DV" as the definer. In the remarks section of the ESTAB request, annotate the following remarks, "AM-ID Theft" . This annotation will notify Files to send the request to the Image Control Team (ICT) team to scan, and also pull the returns as a priority.

If NUMIDENT information is needed the CSR/TE resolving the identity theft case will order the MFTRA "U" , if applicable. If the NUMIDENT shows multiple issuances of the social security card and the names are the same or similar, continue your research to determine if this is a scrambled SSN case.

Search returns and entity modules for indications of identity theft such as identity theft documentation attached to the return, or a previously posted TC 971 with Action Code (AC) 501, or a TC 971 with Action Code 522. If there are indications of identity theft, update the control category to "IDT1" .

After completing the applicable steps in paragraphs 1-15 above, the case should be categorized as "IDT1" , "IDT3" , or "IDT9" , as appropriate per IRM 21.6.2.4.2,Multiple Individuals Using the Same TIN.

For "IDT1" , "IDT3" , "IDT8" "and IDT9" "" cases perform the following actions:

A case history sheet is required for a case that is to be sent to SSA for resolution. The history sheet must include all information and actions taken to resolve the case. Include the following:

Forms 13708, 13708A, 13708B, and/or 13708C,Mixed Entity/Scrambled SSN Case History Sheet, are required when working a case to be sent to SSA for resolution. All account actions, taxpayer contact and SSA contact must be included on the history sheet. Retain a copy of the completed Case History Sheet with the case. Scan/attach for CIS inclusion only the pages of the Sheet that notate actions taken.

For all cases not sent to SSA for resolution, pertinent research information must be recorded on either the Form 13708 series of forms or the electronic research sheet entitled, "TIN-Related Problem Research Sheet." This sheet is found on SERP under the "IRM Supplements" tab.

Every effort will be made to determine ownership prior to contacting the taxpayer. The 239C letter requesting information from the taxpayer will not be sent if neither return was filed by the Common Number (CN) owner. See (2) and (3) below for researching possible identity theft.

Research both returns. Compare them with any "good" prior year returns. Look for situations that may indicate identity theft, such as a return with wages and withholding for a taxpayer who had only retirement or disability income in prior years. Identity theft returns filed in an attempt to generate a fraudulent refund may also show the following characteristics:

See IRM 21.9.1.3.2, Operation Mass Mailing Criteria (OMM) for the characteristics of the most common identity theft scheme, Operation Mass Mailing (OMM).

If NUMIDENT or, for ITIN cases, the Form W-7, Application for IRS Individual Taxpayer Identification Number, clearly shows the owner of the SSN or ITIN, follow mixed entity procedures in IRM 21.6.2.4.3,Mixed Entity Procedures

If the case is a True Scrambled SSN, apply the following procedures only for research purposes. Keep in mind that all True Scrambled SSN cases will go through the scramble process and will be sent to SSA for resolution. Do not make a determination of ownership for a True Scrambled SSN case.

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TAS will route Expedite Economic Burden Criteria 1-4 OARs (including Spanish) with an unprocessed original return (No TC976) that was sent directly to TAS and the TC150 is the non-SSN owner, to the Austin AM Adjustments TAS Liaison.

This procedure is limited to cases requiring expedite processing due to economic burden. All other identity theft cases will be routed using established procedures.

TAS will continue to complete the preliminary research on these cases before they are routed and will ensure ALL the following criteria are met:

For incomplete cases, AUSC will reject the case back to TAS per the Service Level Agreement SLA.

Before processing the case, employees will follow normal procedures to determine CN ownership.

If the case does not meet identity theft criteria per IRM 21.6.2, Adjusting TIN-Related Problems, the employee will reject the OAR back to the assigned TAS caseworker and complete page 2 explaining why the OAR is being rejected.

If the case is complete and CN ownership has been validated, employees should adjust the account per procedures in IRM 21.6.2. Update ASED as required

The Austin Directorate will work these cases and follow specific guidance provided by SP Accounting to process the manual refund as follows:

Analyze the case and identify the correct and incorrect taxpayer for the CN as follows:

If either account contains an offset (TC 896 or TC 898) to a state or federal agency, take no action before referring to IRM 21.4.6.5.19, Mixed Entity Cases.

Consider possible changes to the Return Processable Date. See IRM 21.5.6.4.17, I- Freeze.

For mixed entity cases involving identity theft, see IRM 21.6.2.4.2.5.2.1, Identity Theft - More Than One Return Present.

Route cases with a Z freeze, to the Scheme Development Center (SDC). For cases with a P- Freeze with category code PFRZ, refer to IRM 21.5.6.4.31, P- Freeze for additional guidance, take no action unless the Z freeze is released. If the Z freeze is released, follow established mixed entity procedures.

Refer to the SDC any "leads" related to alleged stolen identity accounts, data that may lead to a fraudulent filing of tax returns for the purpose of gaining false or inflated refunds, or potential ERO schemes, etc. Do not refer the case. Continue to work the case. Use Form 4442 to provide the following information:

The following procedures must be used when a valid different TIN is found for Taxpayer B and Taxpayer A posted first:

Consider the following when processing Taxpayer B's tax information to the correct TIN:

The following procedures must be used when a valid different TIN is found for Taxpayer B and Taxpayer B posted first:

The following should be taken into consideration when processing Taxpayer B's tax information to the correct TIN:

If Taxpayer A is due a refund, issue a manual refund if a refund cannot be systemically released. On all IDT cases, do not issue the manual refund until after the return has been DIF Scored. If a manual refund is needed, refer to IRM 21.4.4.2, Why Would A Manual Refund Be Needed and IRM 21.4.4.4, Preparation of Manual Refund Form for additional guidance on issuing a manual refund and to determine if the refund should be issued systemically.

If the case does not involve an ITIN and a different valid TIN is not located for Taxpayer B through research/correspondence, obtain an Internal Revenue Service Number (IRSN) for Taxpayer B and take the following action:

If the case involves ITINs and a different valid TIN is not located for Taxpayer B through research/correspondence, obtain an Internal Revenue Service Number (IRSN) for Taxpayer B and take the following action:

When a mixed entity situation occurs on an invalid SSN, take the following actions:

Use the following procedures when a TC 576 is present and Taxpayer A posted first.

When a valid SSN is located, Taxpayer B's return posted first and Taxpayer A's return contains no UA condition, take the following action:

When a valid SSN is located, Taxpayer B's return posted first and there is an UA condition on Taxpayer A's return, take the following action:

When a mixed entity occurs on an invalid SSN, use procedures in IRM 21.6.2.4.3.5,Invalid SSN - Mixed Entity.

Use the following procedures to identify scrambled cases involving taxpayer inquiries or NOMRG transcripts.

Analyze the case to identify the taxpayers involved:

Analyze the case to determine which condition exists:

Use local procedures to obtain an IRSN for each taxpayer. IRSN 1 is issued for Taxpayer 1. IRSN 2 is issued for Taxpayer 2. When establishing IRSN 2 set the appropriate scrambled SSN indicator (SCI). Exhibit 21.6.2-2. Scrambled SSN Indicators.

Research to determine if there is a closed or existing scrambled SSN case for the same taxpayer.

If substantiation of identity theft is received from one taxpayer after the 239C letter 40 day suspense period, 70 days for overseas taxpayers, has expired, follow procedures in IRM 21.6.2.4.2.5.2.1, Identity Theft - More Than One Return Present. Change the control category to "IDT1."

If substantiation of identity theft is received from both taxpayers, follow procedures in IRM 21.6.2.4.2.5.2.1, Identity Theft - More Than One Return Present. Change the control category to "IDT1" .

If at any time a completed 239C questionnaire is received after the 40 day suspense period has expired, 70 days for overseas taxpayers, follow the procedures in IRM 21.6.2.4.2.5, Determining Ownership of the Common Number (CN), and, if necessary, in IRM 21.6.2.4.2.6, Pre-239C Common Number (CN) Ownership Determinations Cannot be Made.

Follow Condition 1 or Condition 2 procedures as appropriate. Do not perform any steps that involve the Form 3857 and the sending of the case to SSA. These steps will be identified as pertaining only to True/Default True Scrambled cases. Input a Scramble Indicator (SCI) of "10" .

Follow the if/then table below when scrambling a True/Default True Scrambled SSN Case: