A taxpayer is issued a notice of adjustment when the IRS takes an action on the taxpayer's tax account. The notice, Computer Paragraph (CP) 21 or CP 22, is sent with an explanation of the action. The explanation is specified on the notice by use of one Source Code (SC) and one to three Reason Codes (RC). The SC and RC advise the taxpayer of the tax return account action taken.

Caution : For the TC 290 .00 conditions related in the previous NOTE, a CP 21/22 WILL be issued if the account was in balance due status before the adjustment was input. If the input operator chooses NOT to send a notice to the taxpayer, Hold Code 3 must be included in the adjustment.

When an amended return posts on an account with no original return present, Master File generates:

A CP 29 notice generates as follows:

CP 29 notices are forwarded to the Files function. The returns are pulled, batched, and routed to Accounts Management (AM) for assignment.

Form 1040X for which refunds are issued by Document Perfection, are received in the Accounts Management when a TC 150 is not present on the module.

Contact the Unpostable function if Form 1040X and the deleted adjustment document are not received in Customer Account Services (CAS) :Accounts Management (AM).

Review the Form 1040X and the CP 29 to determine the correct TIN or tax period. Follow CP 29 research procedures in this section.

Take the following action to resolve the case:

A duplicate filing condition (TC 976/977) occurs when a duplicate or amended return posts to an account with an original return (TC 150) posted. Consider all of the following when working duplicate filings:

When a duplicate filing occurs, master file generates:

CP 36S and CP 36B notices generate after a master file comparison of the TC 150 and the TC 976.

A multiple (DUPTIN) filing condition occurs when the same TIN (Taxpayer Identification Number) is used as a primary taxpayer on one return and a secondary taxpayer on another return for the same tax year.

When a DUPTIN filing condition occurs, Master File will post the second return and:

Telephone assistors should advise taxpayer they should respond to the 31C Letter. Once taxpayers have responded to the letter, they should hear something within 30 - 45 days.

Below are definitions for use when working CP 36F transcripts:

There are two scenarios involved when working DUPTIN Filing Conditions.

When working CP 36F cases, it may be necessary to follow procedures in other IRM sections such as IRM 21.5.1, General Adjustments, IRM 21.6.1, Filing Status and Exemption Adjustments, IRM 21.6.2, Adjusting TIN-Related Problems, IRM 3.21.263, IRS Individual Taxpayer Identification Number (ITIN) Real Time System (RTS), and IRM 25.6, Statute of Limitations.

The DUPTIN case is controlled on IDRS/Correspondence Imaging System (CIS) and assigned for review. The control base should be established on the Common Taxpayer's TIN (DUPTIN) and should remain open until:

The release of the "-R " freeze allows the computer to generate a refund or offset credits.

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If at any point the taxpayer explicitly states fraud or forgery, refer the case to Exam following instructions in IRM 21.6.1.4.7(3), Claims of Joint to Single or Head of Household Where Joint Election is Invalid . Use the "CAT-A Other" option on CIS.

If there is any indication the taxpayer is in a combat zone and the CP 36F is the only issue, release the -R freeze and take no further action. If working case through CIS, follow the current CIS Updates to reassign CIS case to designated employee per local procedures for -C/-G/-I freezes. See IRM 21.5.1.5, Correspondence Imaging System (CIS).

When there is an indication on the account of Automated Underreporter (AUR) involvement (TC 922) and the case meets ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , manually input a TC 971 AC 151 on the X-Ref account that has the TC 922 on the module, by using command code REQ77. Inputting the TC 971 AC 151 is an indication to AUR to close their case.

When the TC 922 is located on the tax module, locate the Process Code. Follow the table below for routing the case:

Input CC ESTAB to request the return posted on the DUPTIN if not received with the CP 36F.

Accounts Management will work each CP36F up to the point that it is determined that the case's category code is procedurally required to be changed to one which would move the case to another area. This means that work with TIN-related problems such as mixed entities, identity theft, scrambled SSN's or no merges should be routed to the appropriate area.

Accounts Management employees who have access to the Integrated Automation Technology (IAT) CP36F tool are required to use the tool. The tool will assist in making adjustments, combining returns, separate to joint, sending letters and inputting required transaction codes when necessary. This tool performs unpostable checks and ensures use of appropriate codes, amounts and dates to prevent unpostables.

Review the account for freeze conditions. Follow procedures in IRM 21.5.6, for Freeze Codes, and see Document 6209, Chapter 8A, Section 4, Master File Freeze Codes and IDRS Status 48, for the following items:

Use hold codes and priority codes when necessary.

Use posting delay codes when necessary. Transactions may need to post later than others when multiple transactions are input. A posting delay code can be entered for 1 to 6 cycles.

Notice Review may delete a refund and assign a case to Accounts Management because of a TC 976 or 977.

If a return is "U" coded during processing, the "U" coding does not display on the CP 36, but is displayed on CC TXMOD and MFTRA. Update the Return Processable Date (RPD) as applicable. Follow procedures in IRM 20.2.4.4, Availability Dates for Unprocessable Returns.

If the adjustment notice does not give a clear explanation and/or a notice will not be issued, provide the taxpayer with an explanation by phone or letter. Follow procedures in IRM 21.5.4.4, Math Error Procedures Processing.

A refund for ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more will not systemically generate (TC 846). Do not input TC 290 for .00 to release the refund. A manual refund is required using Form 3753, Manual Refund Posting Voucher. Follow procedures in IRM 21.4.4.4.2, Preparation of the Form 3753, Manual Refund Posting Voucher, to prepare the manual refund. If the taxpayer submitted Form 8302, Electronic Deposit of Tax Refund of $1 Million or More, include it with Form 3753. Follow procedures in IRM 3.17.79.3.10.1, Form 8302, Electronic Deposit of Tax Refund of $1 Million or More.

The computer assesses or abates Failure To File (FTF) or Failure To Pay (FTP) penalties according to interest and penalty adjustments made on the module, except when the penalties were manually assessed.

The computer generates assessments and abatements of interest on all transactions.

Review amended returns for corrections to estimated tax (ES) penalty.

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Taxpayer may submit a recomputation of the penalty; math verify.

Check for decedent refund returns.

Check for statutes; see IRM 25.6, Statute of Limitations.

Review for credit-elect requests, offsets and reversals.

Make sure the signature agrees with the entity. If the signature is a copy, missing, or does not agree with the entity, follow procedures in IRM 21.5.3.4.4, Signature Requirements for Claims.

The due date of a calendar year individual income tax return is April 15. A fiscal year individual income tax return is due the fifteenth day of the fourth month following the close of the fiscal year.

Consider the following when making a superseding adjustment:

If the taxpayer submitted a State tax return or State information on a Form 1040 series return and/or the State portion of the Form W-2.

If only a loose State W-2 is received, follow the instructions in IRM 21.2.5.4.1.1, Loose Wage Information Statements.

Congress established the Presidential Election Campaign Fund (PECF) to support financing of presidential election campaigns.

Only take action on an amended return with a PECF designation change from "No" to "Yes." A "Yes" designation may not be changed.

Research CC IMFOL to determine any change to the election. Prepare a "dummy" Form 1040X, for input whenever the taxpayer indicates an addition to the PECF.

Using a blank Page 1 Form 1040X, take the following steps:

Taxpayers may erroneously file a separate return for each Form W-2 and/or Form 1099 received. Take the following action to resolve the duplicate filing condition:

If the correct tax liability is greater than taxpayer expected:

If the taxpayer submitted original copy of Forms W-2 to substantiate entries on an original or amended return, do not return them to the taxpayer.

A true duplicate condition occurs when the taxpayer files two returns with the exact same tax information. The most common reasons for duplicate filings are:

Six common checks for resolving a true duplicate condition are:

Compare the CP 36 and/or the second return to the original return's RTVUE/IMFOL. Amounts for taxable income, adjusted gross income, total tax, self-employment tax, primary and secondary self-employment income as well as the number of exemptions should match before determining it is a true duplicate case.

A CP 93 generates when a duplicate or amended return posts to a module which contains an open TC 420 ("–L" freeze). To resolve CP 93:

Examination and Collection functions, as well as certain servicing campus functions may request an expeditious assessment (Prompt, Quick, Jeopardy) when:

The servicing campus Accounting function makes the assessment.

The information is entered into the Distributed Input System (DIS) to post to the master file.

These pre-journalized transactions are numbered with a Document Code 51.

The taxpayer may carry a Net Operating Loss (NOL) or excess business credit carried forward to the current tax year.

Net Capital Losses (NCL) can ONLY be carried forward, not back.

An election made by the due date or extended due date of the loss year return, for NOLs only, enables taxpayer to carry the loss forward. For loss year returns due on or after October 1,1992, provided taxpayer timely files the loss year return, the election may also be made on an amended return filed within six months of the due date of the return, determined without extensions. Follow procedures in IRM 21.5.9.5.2, Carryback/Carryforward Election.

Taxpayers are notified when an IRS error delays the processing of a return.

The input of an Error Delay Code (EDC) by Unpostables or Entity Control generates a CP 33. EDCs are valid only for original refund returns.

Take the following action: