21.7.1  BMF/NMF Miscellaneous Information

Manual Transmittal

August 28, 2014

Purpose

(1) This transmits revised IRM 21.7.1, Business Tax Returns and Non-Master File Accounts, BMF/NMF Miscellaneous Information.

Material Changes

(1) This IRM was revised to reflect various editorial and grammatical changes.

Effect on Other Documents

This material supersedes IRM 21.7.1 dated 9/20/2013 (effective 10/1/2013).

Audience

The primary users of this IRM are customer service representatives who answer BMF questions. The IRM is intended for Customer Account Services issues involving Business Master File (BMF) returns.

Effective Date

(10-01-2014)

James P. Clifford
Director, Accounts Management
Wage and Investment Division

21.7.1.1  (01-01-2005)
Business Tax Returns and Non-Master File (NMF) Accounts Overview

  1. This section is designed to assist you in resolving Business and Non-Master File accounts. It provides:

    1. Procedures for addressing/resolving telephone, paper, and Taxpayer Assistance Centers (Walk-In sites) issues.

    2. Procedures for issues relating to tax adjustments.

21.7.1.2  (10-01-2014)
What Are Business Tax Returns and Non-Master File (NMF) Accounts?

  1. The types of tax and related forms in this section are:

    • Employment Tax Returns (Form 941, Form 943, Form 944, Form 945, Form 94X-X)

    • Unemployment Tax Return (Form 940)

    • Corporate Income Tax Returns (Form 1120 series, except International Tax Returns)

    • Fiduciary Tax Returns (Form 1041, Form 1041-A, Form 5227)

    • Partnership Tax Returns (Form 1065, Form 1065-B)

    • Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return (Form 1066)

    • Required Payment or Refund Under Section 7519 (Form 8752)

    • Railroad Tax Returns (Form CT-1, Form CT-2)

    • Estate and Gift Tax Returns (Form 706 and Form 709 series)

    • Exempt organizations (Form 990, Form 990-EZ, Form 990-T, Form 990-PF, Form 990-BL, Form 4720)

    • Excise Tax Returns (Form 11-C, Form 720, Form 730, Form 2290)

    • Various NMF returns

21.7.1.3  (10-01-2914)
Business Research

  1. Research procedures and adjustment actions are contained throughout this chapter within each type of form/tax.

  2. Refer to the appropriate reference material to research technical issues, e.g., Publication 15 (Circular E), Employer's Tax Guide , Publication 334, Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) and Document 6209.

  3. In addition to IRM 21.7.1, also see the following Internal Revenue Manuals or documents for additional instructions:

    • Document 6209, IRS Processing Codes and Information,

    • IRM 2.3, IDRS Terminal Responses,

    • IRM 2.4, IDRS Terminal Input

    • IRM 13.1,Taxpayer Advocate Case Procedures, etc.

    • IRM 20.2, Interest,

    • IRM 20.1, Penalty Handbook,

    • IRM 25.6, Statute of Limitations, etc.

    , ,

21.7.1.3.1  (10-01-2009)
Taxpayer Advocate Service (TAS)

  1. Refer taxpayers to the Taxpayer Advocate Service (TAS) (see IRM Part 13, Taxpayer Advocate Service) when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria) and you can’t resolve the taxpayer’s 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 taxpayer's issue. Do not refer these cases to TAS, unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4, Same Day Resolution by Operations. 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.

21.7.1.3.1.1  (09-07-2006)
Congressional Correspondence

  1. All congressional correspondence account cases are worked by TAS. Route all congressional correspondence account cases per IRM 13.1.8.4.1, Congressional Office Inquiries Received By TAS.

21.7.1.3.2  (10-01-2008)
Small Business Internet Site

  1. Refer taxpayers who want to use the internet and are interested in resources and services for businesses to www.irs.gov/businesses/index.html.

21.7.1.4  (10-01-2010)
Business Master File (BMF) /Non-Master File (NMF) Adjustment Procedures

  1. The following actions can be taken with oral statement on BMF accounts:

    1. Payment/credit transfers (see IRM 21.5.8.1, Credit Transfers Overview).

    2. Changes to item reference codes/numbers (not tax).

    3. Certain penalty abatement requests. See IRM 20.1.1.3.1,Unsigned or Oral Requests for Penalty Relief.

      Exception:

      An exempt organization incomplete return penalty abatement request is worked at the Ogden Campus only, and failure by large partnerships to file Form 1065 electronically and penalty abatement requests are worked by the Ogden Submission Processing Center (OSPC).

    4. Entity corrections including the primary name line. Some examples of entity corrections include spelling errors, incomplete names, missing or incorrect suffixes.

    5. Address changes. See IRM 21.1.3.20, Oral Statement Authority, for additional information.

    6. Decimal point errors (increase or decrease) for tax or credits to restore figures as shown on the return.

    7. Missing schedule (information shown on original or amended return but schedule was not attached). Taxpayer can fax copy.

    8. Verification that a return is a true duplicate return (except Form 1065).

    9. Math errors/IRS errors (see IRM 21.5.4.4.4, Math Error Substantiated Protest Processing).

    10. Certain administrative errors, as noted throughout this chapter.

    Note:

    For the definition of Administrative Errors, see IRM 21.7.2.4.6.3.1, Administrative Errors, and IRM 21.1.3.20, Oral Statement Authority, for complete information on Oral Authority.

  2. Enter any adjustment remarks in the "Remarks" section of Command Code (CC) ADJ54 on Integrated Data Retrieval System (IDRS). See IRM 21.1.3.20.1, Oral Statement Documentation Requirements, for information on remarks, oral statement, and source document requirements.

  3. IRM 21.7.1.4, BMF/NMF Adjustment Procedures, and its subsections contain general procedures and information to bear in mind when inputting adjustments.

21.7.1.4.1  (01-01-2005)
Transaction Codes (TCs)

  1. TCs are used to make adjustments to the Master File (MF) through IDRS.

  2. The primary TCs to adjust tax are:

    • TC 290 to increase tax

    • TC 291 to decrease tax

21.7.1.4.2  (03-24-2006)
Notice Suppression Indicator (NSI)

  1. NSI 1 prevents small balances from being printed on adjustment notices CP 210, CP 220, CP 910, or CP 920.

    1. NSI 1 suppresses adjustment data on the notice. It does not suppress the notice.

    2. The notice is issued with the following modified wording: "This is in response to your request for an adjustment to your tax account for the period indicated above. The adjustment was made for the exact amount you requested."

  2. Use NSI 1 when the adjustment is for the exact amount the taxpayer requested and the adjustment will result in one of the following:

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    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Based on an analysis of the case issues, do not use NSI 1 if the taxpayer would be better served by using the normal unabbreviated notice.

21.7.1.4.3  (10-01-2009)
Miscellaneous Codes

  1. Listed below are references for other codes:

    • Hold Codes - IRM 21.5.2.4.15, Rules on Hold Codes (HC) and Document 6209, IRS Processing Codes and Information

    • Penalty Reason Codes - IRM 20.1.1-2, Penalty Reason Code (PRC) Chart and Document 6209

    • Posting Delay Codes - IRM 21.5.2.4.17, Posting Delay Code (PDC)

    • Freeze Codes - IRM 21.5.6, Freeze Codes and Document 6209

    • Priority Codes - IRM 21.5.2.4.16, Priority Codes (PC) and Document 6209

21.7.1.4.4  (10-01-2012)
Miscellaneous Adjustment Situations (BMF)

  1. Case is assigned to Accounts Management by Output Review. TC 841 must be posted (P–Freeze) before making an adjustment if a case is assigned to Accounts Management by Output Review as a result of a TC 976 on the module.

  2. Refund deletions. To avoid incorrect notices being generated, do not input any necessary credit transfers until after the TC 841 has posted.

  3. Computer condition code (CCC) G. When Code and Edit enters CCC G on an amended return:

    1. The return posts to the module as a TC 976.

    2. To prevent the return from posting as an original, no tax data is entered.

    3. Money submitted with the return is frozen from refunding until the case is resolved.

  4. Failure to File (FTF)/Failure to Pay (FTP) penalties and computer generated interest. .

    1. The computer assesses or abates FTF and FTP penalties based on adjustments made to the module, except when these penalties are assessed manually or other restrictions to the penalties are present on the module. See IRM 20.1.2, Failure To File/Failure To Pay Penalties, for additional information.

    2. In most cases, adjustments to interest are not necessary.

    3. The computer generates assessments and abatements of interest on all transactions except when interest has been restricted. (See IRM 20.2.8, Restricted Interest.)

  5. Difference between taxpayer's computation and yours. When your computation is different from the taxpayer's, provide a complete explanation by letter or phone if the reason for adjustment would not be sufficiently clear from the generated adjustment notice.

  6. Ensure correct adjustments. If posted data does not match data provided by the taxpayer, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ use Corporate Files On-Line (CFOL) command codes or secure the original return before contacting the taxpayer for additional information.

    If Then
    Amended return can be verified with posted data or with CFOL CCs Do not request the original return.
    Return has not been received within 40 days, or after two requests Contact the taxpayer to secure a copy. (Faxed copies of the original return are acceptable.)
    Original return is requested and it is determined no adjustment is necessary Forward the return to Files using local procedures.
    Document code 54 refile document locator number (DLN) is required Input TC 290 $.00 using a document code 54 refile DLN.
    Document code 54 refile DLN is not required Each campus should determine whether to refile under an old or new control DLN. The method should be uniform in each campus.
  7. Adjustments creating a refile DLN. These adjustments must have the original return attached. If not, prepare Form 2275 Records Request, Change and Recharge to associate the original return with the adjustment document. See IRM 21.5.1.5.3, Correspondence Imaging System (CIS) Source Documentation, for information on CIS procedures and blocking series.

    1. Blocking series (BS) 18 can be used instead of Form 2275.

      Note:

      Use the appropriate non-refile BS if the original return was filed electronically. Do not use BS 18. See IRM 3.42.4.4.2.1,Researching e-file BMF Identification Codes.

    2. BS 18 updates the control DLN.

    3. BS 18 generates CP 155 which notifies Files to refile the return/case under the new control DLN.

    4. BS 18 is valid for all Master File Tax (MFT) codes except 04 and 13.

  8. 45 day interest-free period. See IRM 20.2.4.7.5, 45-Day Rule, for more information on interest-free period involving original returns, claims, and refunds.

    Note:

    In 2010, Public Law 111–147 (HIRE Act), added IRC 6611(e)(4) to increase the interest-free period from 45 days to 180 days on any overpayment resulting from tax deducted and withheld under Chapter 3 or Chapter 4 of the IRC. See IRM 20.2.4.7.6, 180-Day Rule.

  9. $10 million assessments. Assessments over $10 million must be analyzed by the Office of Unpaid Assessments (Accounts Receivable) to determine if they have been classified correctly for required financial statements. Forward documentation (photocopies) of assessments over $10 million (when the account has not been full paid) to:

    Caution:

    This contact number and address are for official use only. The office is not staffed for public contact. Do not give out to taxpayers.

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21.7.1.4.4.1  (02-01-2012)
Toll-free Calls When Return Needed

  1. In cases where a one or two page return (Form 940, Form 941, Form 943, Form 944 or Form 945 etc.) is the issue, the CSR should attempt to have the taxpayer fax a signed copy of the return first and work the case themselves. If the needed return is a more complicated (Form 706, Form 709, Form 1065 or Form 1120), do not request a faxed copy.

  2. If analysis of the case results in requiring a return pulled from Files, complete a Form 4442/e-4442 and forward the completed form to your Campus AM paper function. Oakland will send the completed form to Ogden.

  3. The site receiving the Form 4442 ore-4442 requests the return from Files and completes the case.

    Reminder:

    Do not request an e-filed or magnetically filed return. See IRM 3.42.4.4.2.1, Researching e-file BMF Identification Codes, for more information.

21.7.1.4.5  (10-01-2008)
Federal Agencies

  1. The following sections refer to information on claims filed by federal agencies and payments. FED TAX is no longer available and Federal Agencies have been instructed to use EFTPS. The Federal Agency Program is centralized in the Brookhaven Campus (BSC). All inquiries, either correspondence or telephone, related to Federal Agencies should be routed to the Brookhaven Campus - Compliance Operation (CSCO). Contact or route phone calls to 631-654-6398 (Team Manager Desk) or fax number: 855-284-9601 ATTN: FAD or mail to: Brookhaven Campus, PO BOX 480-Collection, Stop 662-A, Special Case/FAD Unit, Holtsville, NY 11742.

21.7.1.4.5.1  (10-01-2009)
FEDTAX II Payments and Form 941

  1. Effective September 24, 2009 FEDTAX II functionality was incorporated into the Electronic Federal Tax Payment System (EFTPS) Federal Agencies section of the www.eftps.gov website. See IRM 3.17.277, Electronic Payments, for more information. See IRM 21.7.1.4.8.1.3,EFTPS Deposit Requirements, for more information on EFTPS deposit requirements. Federal Agencies are encouraged to use EFTPS to make payments for Form 941, Form 945, Form CT-1, Form 720 and Form 1042 taxes. Agencies can also create and archive Form 941, Form 945 and Form CT-1 returns. If additional information is needed by the Federal Agency, refer the Agency to EFTPS for the Federal Agencies Quick Reference Guide or by calling he EFTPS for Federal Agencies Dedicated Customer Service line, 877-333-8292, available Monday to Friday, 8am to 9pm Eastern Time (ET).

  2. Compliance is not built into the EFTPS application for Federal agencies.

21.7.1.4.5.1.1  (10-01-2014)
Federal Agencies - Forms 941-X

  1. If a Federal Agency needs aForm 941-X,Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund,, the Federal Agency must download the form at: http://www.irs.gov.

  2. When processing is completed, Form 941-X is routed to Accounts Management for normal Form 941-X processing.

21.7.1.4.5.2  (10-01-2009)
Abatement of Penalty and Interest Involving Federal Agencies

  1. Policy Statement 20-2 eliminated the assessment of penalty/interest against federal agencies. See IRM 3.13.2.5.3, Employment Code (EC) "F", for additional information.

  2. Allow claims for refund involving penalty/interest incorrectly assessed on Federal agencies.

21.7.1.4.6  (10-01-2007)
BMF Offset Program

  1. This section contains background information on the BMF Offset Program, information on the various freeze conditions, and a synopsis of offsets of BMF overpayments to past due federal agency debts.

  2. The BMF Offset Program allows application of an overpayment from one business type of tax or tax period to satisfy an unpaid balance on another type of tax or tax period for the same taxpayer. It also allows offset to past due federal agency debts in some situations. See IRM 20.2.4.6.1, Interest on Offsets, for information on when interest is allowable to the taxpayer on credit offsets. See IRM 21.7.1.4.6.4, BMF Offset Program for Past Due Federal Agency Debt, for more information on past due federal agency debts.

  3. The goal is to identify and resolve potentially incorrect balance due or credit balance situations before offset is made.

    1. No offsets involving Federal tax deposit (FTD) payment discrepancies should occur until the taxpayer has been notified of a balance due or overpayment on the account.

    2. This allows the taxpayer time to provide information to assist in locating and transferring missing payments, or properly applying any excess credits.

  4. CP 267 or CP 268 is generated when there is a discrepancy in the FTD credits claimed by the taxpayer and those credited to the taxpayer's account. See IRM 21.7.11.4.9, CPs 267/268 - Notice of Excess Credit, for information on working responses to CP 267 or CP 268.

    1. CP 267 is for returns which have no math error but a difference in FTD credits.

    2. CP 268 is for returns with math errors in addition to a difference in FTD credits.

    3. The notices list payment dates and amounts, math error explanation (CP 268), and a summary of the penalty and interest charges.

    4. The taxpayer is requested to indicate any payments erroneously credited or missing from the account and respond within 30 days.

    5. If the taxpayer does not respond within 15 weeks, any overpayment is applied to other balance due accounts or refunded to taxpayer, if no other taxes are owed.

21.7.1.4.6.1  (01-01-2005)
-E Freeze/Debit Offset In

  1. The "-E" freeze (which is released after 10 cycles) indicates an FTD discrepancy in the BMF debit module which generates a balance-due notice. The "-E" freeze module can contain debit balance modules resulting from posting of transactions subsequent to original return processing.

  2. Subsequent transactions can be any combination or separate posting of tax, penalty, interest, or credit reversals which result in the module going from zero or a credit balance to a debit balance, or from a debit balance to a greater debit balance.

    1. The module balance prior to posting of the subsequent transaction can be zero, debit, or credit.

    2. The module balance after posting of the subsequent transaction must be a debit.

    3. The account cannot have a module currently in tax delinquency account (TDA) Status 22, 23, 24, or 26 or have had a module closed from TDA Status in the prior 12 months.

  3. The "-E" freeze, under the subsequent transaction criteria, is released if:

    1. The 10 cycle freeze expires. (If all other criteria is met, the 10 cycle freeze is reset based on the most current subsequent transaction posting.)

    2. The module reaches zero or credit status.

    3. The account/module reaches TDA status.

  4. The appropriate notice is issued based on posting of the subsequent transaction(s) if a notice otherwise would have been issued.

21.7.1.4.6.2  (10-01-2007)
Q- Freeze/Offset

  1. A "Q-" freeze (which is released after 15 weeks) is initiated when there is an FTD overpayment discrepancy (more credits present than claimed on the return).

    1. If a discrepancy cannot be resolved within five workdays, CP 267 or CP 268 is released.

    2. To manually release the "Q-" freeze, use TC 290 $.00 with priority code (PC) 4. (Use hold code (HC) 3, if the refund will be for the amount requested by the taxpayer.)

    3. See IRM 21.7.11.4.9, CPs 267/268 - Notice of Excess Credit, for more information on the "Q-" freeze and procedures for working CP 267/CP 268 cases.

21.7.1.4.6.3  (01-01-2005)
D- Freeze, TC 470 cc 97 Restricted to Examiners Working Large Corporate Accounts

  1. Use of TC 470 closing code (cc) 97 is restricted to employees specifically designated to work Large Corporate Accounts, e.g., Technical Unit employees in Taxpayer Relations.

  2. All actions to these accounts must be coordinated with employees in the area designated to work Large Corporate Accounts.

21.7.1.4.6.4  (01-01-2005)
BMF Offset Program for Past Due Federal Agency Debt

  1. The Cash Management Improvement Act Amendments of 1992 mandates offset of "business association" refunds payable on or after January 1,1995 to past due Federal agency non-tax debts.

  2. As of January 11, 1999, Bureau of the Fiscal Service (BFS) offsets eligible tax refunds for non-tax debts involving federal agencies and child support. This type of offset is referred to as a Treasury Offset Program (TOP) offset.

  3. See IRM 21.4.6, Refund Offset, for information on TOP offsets.

21.7.1.4.7  (01-01-2005)
Employer Identification Numbers (EINs)

  1. All information on assignment of EINs is located in IRM 21.7.13, Assigning Employer Identification Numbers (EINs).

21.7.1.4.8  (01-03-2011)
Federal Tax Deposits (FTDs)

  1. Generally, taxpayers who file Form 940, Form 941, Form 943, Form 944, Form 945, Form 720, Form 990-PF, Form 990-T, Form 1042, Form 1120, Form 1120-C, and Form CT-1 must deposit taxes using an authorized deposit method when the tax liability reaches certain dollar amounts. See IRM 20.1.4.6, De Minimis Exception to Deposit Requirements, De Minimus Exception to Deposit requirements for Form 720 and IRM 20.1.4.11, Form 1042 Deposit Requirements For All Periods, for additional information.

    Reminder:

    Beginning January 1, 2011, Forms 8109 and 8109-B, Federal Tax Deposit Coupon, can no longer be used as an authorized deposit method. See IRM 20.1.4.2, Authorized Deposit Methods, for additional information.

21.7.1.4.8.1  (01-03-2011)
Electronic Federal Tax Payment System (EFTPS)

  1. EFTPS is a tax payment system offered free by the U.S. Department of the Treasury. EFTPS enables taxpayers to pay their federal taxes electronically using the internet or telephone. Both business and individual taxpayers can use EFTPS.

  2. EFTPS uses ACH, the Automated Clearing House, financial network, which transfers funds and tracks tax payment information to IRS.

  3. See IRM 21.5.7.4.7.15, EFTPS Payment Tracers, for payment tracer cases involving EFTPS payments.

  4. See IRM 21.7.11.4.1, CP 108 — Error on FTD Coupon/EFTPS Payment, for information on CP 108 inquiries involving EFTPS payments and for more information on how the Voice Response System (VRS) works.

  5. See IRM 3.17.277, Accounting and Data Control, Electronic Payments, for additional information on all electronic payments, including additional information on EFTPS payments.

  6. For more information, see Publication 966, Electronic Federal Tax Payment System, A Guide to Getting Started. It is for businesses and individuals and can be found on the Electronic Tax Administration site located on Servicewide Electronic Research Program (SERP) http://serp.enterprise.irs.gov/homepage.html, under the Local/Sites/Others tab.

21.7.1.4.8.1.1  (10-01-2012)
EFTPS Enrollment

  1. Taxpayers can enroll at https://www.eftps.gov or by completing Form 9779 (Business Enrollment Form) or Form 9783 (Individual Enrollment Form) and mailing it to the EFTPS Enrollment Center listed on the form.

    Note:

    Enrollment via the web is more convenient.

  2. Taxpayers can call EFTPS Customer Service for an enrollment form or order the form online at http://www.irs.gov. For additional enrollment information, taxpayers should call one of the customer service numbers listed for either BMF or Individual Master File (IMF) taxpayers as noted above.

    Type of Caller Toll-free Telephone Number
    Voice 1-800-555-4477
    (EFTPS Customer Service)
    Spanish 1-800-244-4829
    TDD (Telecommunications Deaf Device) 1-800-733-4829
    (8 a.m. to 8 p.m. ET Mon-Fri)
    Financial Institutions 1-800-605-9876
    Batch Providers 1-800-945-0966
    (8 a.m. to 8 p.m. ET Mon-Fri)
    Bulk Providers 1-866-684-6556
    (8 a.m. to 8 p.m. ET Mon-Fri)
  3. Enrollment information is validated by IRS. Enrollments generally take 5–7 days to process.

  4. Taxpayers who use a third party payroll processor or service bureau can have them enroll the taxpayer. However, if the third party does only payroll; e.g., employment taxes, and the taxpayer must make other deposits; e.g., Forms 720, 1120, etc., the taxpayer must also enroll in order to deposit non-payroll taxes.

  5. Taxpayers must submit an enrollment form for each EIN or bank account.

  6. Refer taxpayers with entity related questions, that the financial agent cannot resolve, to the IRS EFTPS hot-line in Ogden, at 1-866-255-0654 with option number 3.

21.7.1.4.8.1.2  (10-03-2007)
EFTPS - Website

  1. EFTPS website ( https://www.eftps.gov) offers the following features over a Secure Sockets Layer (SSL) connection:

    • General information about EFTPS

    • EFTPS enrollment

    • ACH debit payments

    • Payment cancellation

    • Payment history research

    • Payment history for a 16-month period of time

    • Search, print or download payment history by date, tax type, amount, form, etc.

    • Scheduling of all four estimated tax payments, Form 1040ES, in one session

    • Installment agreement payments. EFTPS now has the ability to schedule payments up to 365 days in advance for individuals and up to 120 days for business taxpayers. (See IRM 5.19.1.5(12),Methods of Payment, for more information on EFTPS installment agreement payments and IRM 3.17.277, Accounting and Data Control, Electronic Payments, for more information on electronic payments.)

21.7.1.4.8.1.3  (10-01-2014)
EFTPS Deposit Requirements

  1. Prior to January 1, 2011 taxpayers were required to use EFTPS if their "aggregate deposits" for the second preceding calendar year exceeded $200,000, but any taxpayer could voluntarily participate. If you need the archived information regarding EFTPS deposit requirements, see the October 1, 2010 revision of this IRM.

  2. Effective January 1, 2011 EFTPS Regulation Change mandates FTDs, such as payroll tax payments, be paid electronically. Some businesses paying a minimal amount of tax may make payment with the related tax return instead of paying electronically. See IRM 20.1.4.6, De Minimis Exception to Deposit Requirements, IRM 20.1.4.10.5, De Minimis Exception to Deposit Requirements Form 720, and IRM 20.1.4.11, Form 1042 Deposit Requirements For All Periods, for additional information.

21.7.1.4.8.1.4  (01-01-2006)
EFTPS Payment Methods

  1. EFTPS uses ACH to transfer funds electronically from the taxpayer's account to the Treasury's account. ACH is a system used by the banking industry to transfer funds electronically. The Bureau of Fiscal Services (BFS), formerly FMS, contracts with a Treasury Financial Agent (TFA) to process ACH payments for IRS.

  2. After the taxpayer enrolls, a personal identification number (PIN) is mailed to the IRS address of record. The PIN is used to make payments and to obtain information from EFTPS.

  3. There are two primary payment methods to transfer funds with EFTPS (regardless of the payment option selected, the tax due date remains the same):

    • EFTPS Direct (ACH Debit)

    • EFTPS - ACH Credit

  4. Taxpayer may also select same-day wire method offered by some financial institutions. See IRM 21.7.1.4.8.1.8, Federal Tax Application (FTA) - Same-day Wire - BMF Taxpayer, or IRM 21.7.1.4.8.1.7, Federal Tax Application (FTA) - Same-day Wire - IMF Taxpayer, for additional information

  5. After the taxpayer has initiated payment, the financial agent assigns a 15-digit number to the transaction. The payment method can be identified by the second position in the electronic funds transfer (EFT) number. See IRM 3.17.277.5.3, EFT Number, for breakdown of EFT number.

21.7.1.4.8.1.5  (03-28-2013)
EFTPS Direct (ACH Debit)

  1. ACH Debit, also known as EFTPS Direct, represents the majority of payments processed by EFTPS. The taxpayer instructs the TFA to originate a debit against the taxpayer's account and transfer the funds to the Treasury's account. If a taxpayer chooses EFTPS Direct, the taxpayer can also use the EFTPS - ACH Credit payment option without enrolling again.

  2. There are two reporting methods:

    1. Voice Response System (VRS) - taxpayer uses a touch tone phone to enter payment information. The information is entered in response to prompts into the VRS. The EFTPS phone can be accessed 24 hours a day, 7 days a week.

    2. Online - taxpayer uses the Internet to enter payment information. The website address is https://www.eftps.gov. See IRM 21.7.1.4.8.1, Electronic Federal Tax Payment System (EFTPS), for more information. IRM 3.17.277.5.3, EFTPS Transmission Files, also has information on the EFT number.

  3. To make an EFTPS Direct payment, at least one calendar day prior to the tax due date before 8:00 p.m. ET (Eastern Time), the taxpayer must access EFTPS by telephone or the Internet, and input the necessary information when prompted. However, the payment does not move until the date specified by the taxpayer.

  4. After a taxpayer enters the information, EFTPS generates an EFT Confirmation Number. Taxpayers should write down and keep this number for future reference. If there is any problem with the payment, this number allows the TFA and IRS to trace the payment quickly by reconstructing the EFT number. (See IRM 21.5.7.4.7.15, Electronic Federal Tax Payment System (EFTPS), for information on how to reconstruct the EFT number.)

  5. ACH Debit payments are identified by payment code 2 in the second position of the EFT number.

21.7.1.4.8.1.6  (10-01-2009)
EFTPS (ACH Credit)

  1. ACH Credit payments are initiated by taxpayers contacting their financial institutions (banks) to send payments via EFTPS. Taxpayers instruct the financial institutions to electronically move funds from their accounts to the Treasury's account in accordance with its policies, on the date specified by the taxpayer. Taxpayers should check with the financial institutions to see if they offer this service, how much it costs, and if they are eligible to use it, because not all financial institutions offer this service.

  2. ACH Credit payments are originated in the Cash Concentration or Disbursement (CCD) and Tax Payment Banking Convention (TXP) format. This is a standard ACH format. (Specific information on this format may be downloaded from EFTPS website, https://www.eftps.gov.) Select Help and Information, downloads, then download the Financial Institution Record layouts. If a taxpayer's bank requires further assistance, financial institution employees can call the Financial Institution Help-line, "1-800-605-9876" , the TFA has established and request the information.

  3. The credit transaction must be initiated at least one banking day before the due date. When making an "EFTPS - ACH Credit" transaction, advise the taxpayer that since banks have different ACH deadlines, the taxpayer should check with their bank to ascertain their deadline. The taxpayer's bank assigns a reference number which remains part of the record and becomes the reference number on EFTPS. The bank should provide this reference number to the taxpayer for audit trail purposes.

  4. ACH Credit payments are identified by payment method 1 in the second position of the EFT number.

21.7.1.4.8.1.7  (01-03-2011)
Federal Tax Application (FTA) - Same-day Wire - IMF Taxpayer

  1. Procedures for allowing an IMF taxpayer to use the same-day wire system differ from BMF. If the taxpayer is currently enrolled in EFTPS and makes recurring payments, their EFTPS Payment Instruction Booklet provides the instructions about making the payment.

  2. If a non-enrolled individual taxpayer needs to make an emergency same-day wire for a unique situation, such as to settle a litigation/bankruptcy case, settle an estate, prevent a lien/levy from being placed on the account or any other unique situation, the taxpayer needs to first contact their financial institution to determine:

    • If their financial institution offers this service, and

    • What fees their financial institution charges for this service

  3. Fees generally range from $10 to $60 for each same-day payment. Therefore, only consider this option for a large dollar payment.

21.7.1.4.8.1.8  (10-01-2014)
Federal Tax Application (FTA) - Same-day Wire - BMF Taxpayer

  1. Business taxpayers who require same-day settlement may use the EFTPS system even if they are not currently enrolled in the system. The instructions are located in their EFTPS Payment Instruction Booklet. All same-day wires are sent by the business taxpayer's financial institution.

  2. If a taxpayer is not enrolled, the taxpayer may require assistance in directing its financial institution to the proper format for making the payment. Financial institutions have two Fedwire options for making a same-day wire. It is very important that their bank use the proper format. The taxpayer's financial institution needs to follow the most current guidelines found at http://fms.treas.gov/eftps/transition_materials.html.

  3. Federal Tax Collection Service (FTCS) Funds Transfer begins daily operations at 12:30 a.m. Eastern Time (ET). The current hours for FTCS are 8:30 a.m. to 5:00 p.m. ET. Same-day wire transactions sent after 12:30 a.m. and before 8:30 a.m. ET are queued for processing when FTA opens for the day. Same-day wires sent AFTER the 5:00 p.m. ET cutoff time, are rejected and ARE NOT processed the next day. It is recommended that financial institutions transmit the transaction well in advance of the cutoff time. Taxpayers should make arrangements to have their financial institution notify them immediately if a payment is rejected and returned, so that the transaction can be corrected and resubmitted before the 5:00 p.m. ET cutoff time.

  4. Prior to 2004, FTA payments were identified by payment method 3 or 4 in the second position of the EFT number. Currently, it is only payment method 3 identifying the FTA payments. The taxpayer's bank may call the FTA toll-free Customer Service number at 1-800-382-0045 for assistance in making their payment, or in resolving problems with their FTA payments.

21.7.1.4.8.1.9  (10-01-2014)
FTD Penalties and Penalty Relief on EFTPS Payments

  1. EFTPS depositors are subject to FTD penalties if a deposit is not received with the correct amount, within the prescribed time period, and/or in the required manner. See IRM 20.1.4.2.1, Electronic Funds Transfer (EFT), and IRM 20.1.4.7.1, Time Sensitive Four Tier Penalty System.

  2. Various forms of penalty relief, if established, are available to taxpayers. See IRM 20.1.1, Introduction and Penalty Relief, for information on penalty relief.

21.7.1.4.8.2  (01-03-2011)
Form 8109/Form 8109-B, FTD Coupons

  1. Treasury Decision (TD) 9507 (REG-153340-09) ended the use of paper FTD coupons, beyond December 31, 2010. If you need the archived information regarding FTD coupons see the October 1, 2010 revision of this IRM.

21.7.1.4.8.2.1  (01-03-2011)
Resolving Inquiries Involving FTD Coupons Including Inquiries Received In Taxpayer Assistance Centers

  1. If a taxpayer requests Form 8109 and Form 8109-B, Federal Tax Deposit Coupon, inform the taxpayer FTD coupons can no longer be used to make a deposit.

    Note:

    Businesses that have a deposit requirement (such as employment tax, excise tax, and corporate income tax) are mandated to pay electronically through EFT. Generally, EFT are made using the EFTPS. If the taxpayer does not wish to use EFTPS, he/she may arrange for a tax professional, financial institution, payroll service, or other trusted third party to make deposits on his/her behalf. See IRM 20.1.4.6, De Minimis Exception to Deposit Requirements, and IRM 20.1.4.11, Form 1042 Deposit Requirements For All Periods, for additional information.

  2. If a taxpayer needs to make a deposit today, explain to the taxpayer he/she can make a same-day deposit using a wire transfer from his/her financial institution. See IRM 21.7.1.4.8.1.8, Federal Tax Application (FTA) - Same-day - BMF Taxpayer for additional information.

    Reminder:

    Payments sent directly to the IRS or paid with the tax return may be subject to a 10 percent avoidance penalty.

21.7.1.4.8.3  (10-01-2009)
Agent Prepared FTDs

  1. Designated reporting agents (payroll services, banks, etc.) make FTDs for their clients. (See Rev. Proc. 2012–33 or Publication 1474, Technical Specifications Guide For Reporting Agent Authorization and Federal Tax Depositors, for requirements.) FTDs for Form 941, Form 943, Form 944, and Form 945 can be made by reporting agents after Form 8655, Reporting Agent Authorization, is submitted and approved. (See IRM 21.7.2.3.6, Reporting Agents File (RAF).)

  2. Process payment-tracer requests or other inquiries regarding agent- prepared FTDs normally. Taxpayers sign reporting agent authorizations allowing the Service to disclose deposit-related information to reporting agents. Use CC RFINK to verify.

  3. Rev. Proc. 2012–33 provides procedures for agent prepared electronic deposit reporting.

21.7.1.4.9  (04-22-2011)
Fiduciary Name/Address Change

  1. There are instances where you can make a fiduciary/address change.

    If you receive... Then...
    An amended fiduciary return (with a jurat signature) where the fiduciary name/address are different than Master File Change fiduciary name/address, per Form 1041 U.S. Income Tax Return for Estates and Trusts.
    A telephone contact where the caller can fax a copy of the court documentation or Form 56
    1. Change name/address per court documentation or Form 56 Notice Concerning Fiduciary Relationship.

    2. Attach to the last paper filed Form 1041 or send Form 56 directly to Files for retention purposes.

    Name/address change requests in correspondence without Form 56
    1. Contact the fiduciary for Form 56 or court documentation by telephone.

    2. Send letter if unable to reach by telephone.

    Fiduciary name change with Form 56
    1. Make fiduciary name/address change.

    2. Attach Form 56 to last paper filed Form 1041 or send Form 56 directly to Files for retention purposes.

  2. Attach court documentation to a Form 56 and send to Files for electronically filed returns, per IRM 3.5.61.23.1, Forms List.

21.7.1.4.10  (01-01-2007)
Technical Unit

  1. Technical Unit is a function set up in a campus that works cases identified as "priority" or "special." See IRM 21.7.1.4.10.1,Identification of Priority or Special Cases, for criteria. These cases are given special emphasis to ensure timely, accurate responses to troublesome or complex situations that could adversely affect taxpayer service and damage public relations if not properly handled.

  2. When criteria fits both special case and TAS criteria (for criteria, see IRM 13.1, Taxpayer Advocate Case Procedures), TAS criteria prevails and procedures in IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, are followed.

21.7.1.4.10.1  (10-01-2014)
Identification of Priority or Special Cases

  1. Categorize cases based more on complexity of action required than on tone of inquiry. The following cases are designated as "Priority" or "Special Cases" :

    1. Cases specifically designated as "Special" by Headquarters, area/territory office, or Field Directors.

    2. Combat zone decedent cases.

    3. All inquiries or adjustments relating to an exchange of information with an U. S. possession. (All questions related to who is authorized in the possessions to receive federal tax information, refer to Disclosure Help Desk on 1-866-591-0860. This number is for internal use only).

    4. Cases that you or your immediate manager believe you cannot resolve through normal channels.

    5. Follow-up inquiries that do not meet TAS criteria such as cases involving both MF and non-MF or Pre-Automated Data Processing (ADP) returns; cases involving returns or other documents filed with more than one campus (campus servicing area in which taxpayer resides should work cases).

    6. Cases previously handled by Technical Function, if it involves same tax type and same tax period.

    7. Cases involving large, complex corporate accounts.

    8. Form CT-1 (Cincinnati Campus only). See IRM 21.7.2.6, CT-1, CT-2 Railroad Tax Returns, for more information on Form CT-1 and how to transfer the forms to Cincinnati.

    9. Potential Combined Annual Wage Reporting (CAWR) tax/penalty assessments over $1 million.

  2. Use Organization Function Program (OFP) Code 710-0101X and category TECT for technical issues not related to an account with the Large Corporation Indicator (LCI). See IRM 21.7.1.4.11 (3), Large Corp Unit, if LCI present.

21.7.1.4.10.2  (01-01-2006)
Area Office Initiated Cases

  1. Special cases identified in an area office are worked in that area office. If the area office cannot resolve the case due to insufficient or unavailable information, refer the case to Accounts Management by telephone. See IRM 21.7.1.4.10.1, Identification of Priority or Special Cases, for the criteria the case must meet.

  2. Process area office initiated cases as follows:

    1. Complete Control Log/History Sheet. If not using Integrated Adjustment Tool (IAT), can use Form 9860, Adjustment Input Document/Case History Sheet. Record name and telephone number of caller.

    2. Record facts of case. If additional space is necessary, use Form 1725, Routing Slip, and staple it to the Control Log.

    3. Send Control Log to Technical Function control clerk daily.

    4. Acknowledge receipt of inquiry within seven calendar days of the IRS receipt of a telephonic special case. Campuses reply directly to the taxpayer, unless it is previously agreed that the reply should go to referral resolution point in an area office.

21.7.1.4.10.3  (01-01-2006)
Accounts Management Campus Initiated Cases

  1. Prepare a Control Log/History Sheet, Form 5704, and process inquiries identified as meeting special case. See IRM 21.7.1.4.10.1, Identification of Priority or Special Cases, criteria as follows:

    If Then
    Inquiry is received by mail Complete Control Log/History Sheet, form 5704, and attach inquiry.
    A telephone referral is received from an Accounts Management representative Prepare a control Log/History Sheet. Record all pertinent facts and taxpayer information on a memo or appropriate form.
  2. Transmit all special case referrals daily to the Technical Function control clerk.

21.7.1.4.10.4  (01-01-2005)
Unpostable Code 305, Reason Code 4 and 5

  1. Unpostable Function refers cases it cannot resolve to Technical Function (or locally designated function). Technical Function (or locally designated function) takes the following action:

    1. Follow normal research procedures, including taxpayer contact, to resolve credit discrepancies.

    2. Processing time-frame is two weeks. If conditions warrant more time to resolve (e.g., waiting for taxpayer information to verify credits claimed), notify Unpostable function of delay.

    3. Document all case actions on history sheet.

    4. Move credits located under a different type tax, tax period, or taxpayer identification number (TIN) using standard credit transfer procedures.

    5. If a notice is sent to the taxpayer because of credits not being located, input a history item on IDRS to avoid duplication of research and unnecessary taxpayer contact (ex: U305BILLTP).

21.7.1.4.10.5  (01-01-2006)
Form 5704 - Special Case History Sheet

  1. Use Form 5704 to record the particular history of a special case.

  2. Form 5704 helps other examiners ascertain what was done on the case.

  3. Attach the Form 5704 to the inside of the case to facilitate case reviews by examiners as well as managers.

21.7.1.4.10.6  (01-01-2006)
Initial Case Review

  1. Check the Weekly Adjustment Control Inventory List/Case Control Activity (CCA) Report 4242 or IDRS to determine if follow-up inquiries are needed. For specific criteria, see IRM 21.7.1.4.10.1,Identification of Priority or Special Cases, then:

    If Then
    Open items are listed Send inquiry to appropriate unit to expedite action.
    Items are not in open status 1. Review to determine if action requested by the taxpayer has taken place.
    2. Initiate an appropriate reply or forward case file to designated function to initiate reply.
    3. If no action has been taken and inquiry meets criteria, see IRM 21.7.1.4.10.1, Identification of Priority or Special Cases, route inquiry to Technical Function for "Special Case" processing.
    Case is resolved by Technical Function Technical Function holds in "other" status until results of actions are verified, then closes case.
    Case does not meet special case criteria Refer to appropriate function for resolution.
  2. See IRM 21.7.1.4.10.1, Identification of Priority or Special Cases. Do not apply criteria to original inquiries or to multiple inquiries if each is on a different subject. For these situations, use normal pipeline procedures.

  3. Technical Function has the option of rejecting any case that does not meet criteria to the point of origin. See IRM 21.7.1.4.10.1, Identification of Priority or Special Cases.

21.7.1.4.10.7  (01-01-2006)
ADP Technical Section

  1. Clerical support in Technical Function should refer to IRM 2.3, IDRS Terminal Responses, IRM 2.8, Audit Information Management System (AIMS) Handbook, and IRM 2.4, IDRS Terminal Input, for terminal input sequence of IDRS research and IDRS control. Use Document 6209 for quick reference, but not as the authority:

    If Then
    Special case criteria are not met
    (See IRM 21.7.1.4.10.1,Identification of Priority or Special Cases)
    1. Reassign case to the appropriate function.
    2. CC ACTON to record reassignment and change status, if necessary.
    An inquiry is received directly from the taxpayer or area office Establish controls on IDRS with assignment to an examiner in "A" (Assigned) status.
    Case is not accepted 1. Establish control with assignment to the appropriate function.
    2. Forward all available information to the assignee.
    A case is received with a notation that another case for the same taxpayer is assigned to another functional area 1. Contact the original case assignee to determine proper disposition of first case.
    2. When controlling a case, if IDRS already indicates the case is established, follow the same procedures.
  2. Process special cases using the following guidelines:

    1. See IRM 5.19.2, Return Delinquency, to process cases related to installment agreements.

    2. Record significant actions with a history item via CC ACTON using appropriate activity code.

    3. Process special case to completion.

    4. Use BS 79 for adjustments input on special cases.

      Note:

      Only use this blocking series when the original documents are in Technical Function's possession. Continue to follow local procedures for adjustments where no refile DLN is created.

    5. If input of a MF transaction resolves case, do not change status of case on IDRS to "C" (closed). Route case file to control clerk to suspense for follow-up action.

    6. Respond to all special cases within 14 days from the IRS received date. If unable to meet this date, prepare an interim reply within seven calendar days, explaining the reason for the delay, and the expected completion date. Maximum time for a final reply is 30 calendar days.

21.7.1.4.11  (10-03-2007)
Large Corp Unit

  1. Each year various sources identify large, complex corporate accounts or state agencies with potential for creating complex processing problems. To identify these cases quickly, a"Large Corp" Indicator (LCI) appears on IDRS, MF transcripts and CC BMFOL.

  2. All controlled cases worked in Large Corp are identified by category codes:

    • LGCP Large Businesses and International (LB&I),

    • LGSB Small Business and Self Employment (SBSE), or

    • LGGE Tax Exempt and Government Entities (TEGE)

  3. Use OFP Code 710-0140X when processing large, complex corporate and Coordinated Industry Cases (CIC) cases. See Document 5995a for 5th digit specific OFP code.

  4. All cases worked in these categories age in 45 days.

  5. All Large Corp cases are worked in Cincinnati and Ogden.

  6. The state mapping for Large Corp cases is:

    Large Corp State Mapping
    Cincinnati Ogden
    Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee, Texas, West Virginia, Wisconsin Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Maine, Maryland, Massachusetts, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont, Virginia, Washington, Wyoming

21.7.1.4.11.1  (10-01-2009)
Coordinated Industry Cases (CIC), Formerly Coordinated Examination Program (CEP) Accounts

  1. CIC examines cases that have more intricate and diversified business practices and transactions on many accounts. CIC cases are worked in Exam field offices.

21.7.1.4.11.2  (10-01-2010)
Working Large Corp Cases (LCI Designated)

  1. Large Corp technicians must take actions or make adjustments/recommendations on accounts with an LCI by:

    • Determining whether to send notices to taxpayer,

    • Addressing all current account issues, or

    • Coordinating with other functions regarding certain adjustments (CAWR, Excise, etc.) See IRM 4.19.4.2.1.1, Large Corporation/Large Dollar Screening.

  2. Large Corp technicians follow instructions in various IRM references to resolve accounts with an LCI. Some of the most common references are:

    • IRM 5.19.1.4.2, Insolvency Issues

    • IRM 20.1.4.21, Taxpayer Responses

    • IRM 21.7.2.5.19.3, Adjusting the Account — COBRA

    • IRM 21.7.4.4.4.4, Consolidated Returns

    • IRM 21.7.11.4.8, CP 234 - Processing Potential ES Penalty Notices

    • IRM 21.7.13.5.2.1, Definition: Corporation

  3. Large Corp technicians must communicate with the taxpayer, LB&I, SB/SE, TE/GE, and field personnel by:

    • Establishing and maintaining a professional relationship with the taxpayer,

    • Coordinating with all relevant personnel in regard to assigned cases, and

    • Outreach activities.

21.7.1.4.11.3  (10-01-2014)
Routing Large Corp Cases and Inquiries

  1. Route all cases with a LCI to the appropriate Large Corp Unit and/or site shown. This includes any request for a change of address, whether received on Form 8822/Form 8822B, Change of Address, in person at a Taxpayer Assistance Center (TAC) office or via telephone call or correspondence. If a request for address change is received during a telephone call or during an in person contact, provide the taxpayer with the appropriate Large Corp campus contact. See IRM 21.7.1.4.11.4 , Campus Contacts for Large Corp Cases.

    Exception:

    Do not route:
    •CAWR,
    •Federal Unemployment Tax Act (FUTA),
    •Excise,
    •Form CT-1 (see IRM 21.7.2.6.4.1, Forms CT-1 Are Processed at Cincinnati Submission Processing Campus),
    •Net Rate Interest Netting Claims (see IRM 21.5.3.4.15,Net Rate Interest Netting Claims, and IRM 20.2.14.6,Net Rate Interest Netting, for additional information on these claims),
    •Form 1042, or
    •Form 1139 cases.

    Caution:

    If the claim for refund exceeds $5,000, also call the appropriate Large Corp contact to ensure the 45 day processing can be met. See IRM 21.7.1.4.11.4 (1), Campus Contacts for Large Corp Cases.

  2. When a call is received from a taxpayer, CSRs must:

    1. Offer the contact name and telephone number of the appropriate LC Unit. See IRM 21.7.1.4.11.4 (1), Campus Contacts for Large Corp Cases, or

    2. Prepare a Form 4442, Inquiry Referral on all LCI inquiries and route them to the appropriate Large Corp campus, if the taxpayer chooses not to call the contact.

      Note:

      Reassign CIS cases following local procedures.

  3. If the case is routed to the incorrect Large Corp Unit, the incorrect Large Corp Unit receiving the case must coordinate with the correct site for resolution.

  4. Submission Processing (SP) Entity routes any address changes for Large Corp clients with a LCI shown on various IDRS screens, for example, ENMOD, SUMRY, TXMODA, or BMFOLI, to the appropriate Large Corp Units. They forward the address changes requests on Form 8822 or Form 8822B on a routing slip with the comment “Large Corp Address Change”. The LC Unit will research/verify if the address change should be updated and will then input the requested change of address.

    Note:

    If an IMF Entity site has an address change for a business with a LCI, they will fax the request to either Cincinnati Large Corp 859-669-5018 or 859-669-4776 or Ogden Large Corp at 801-620-4455 (do not release these fax numbers to taxpayers. The fax should also include the comment “Large Corp Address Change”.

21.7.1.4.11.4  (03-28-2013)
Campus Contacts for Large Corp Cases

  1. The following campus contacts assist field personnel and any taxpayer who has a LCI to help resolve account related problems. Research the account before giving out the telephone number. Only give the campus contact telephone number to a taxpayer whose account actually has the LCI set on it.

    Note:

    A business operating division (BOD) code of LM (Large and Mid-Size) does not necessarily indicate that they are in the "Large Corporation Program" .

    Campus Contact Name Telephone number Best Time to Call
    Cincinnati Large Corp. Team 401
    Large Corp. Team 402
    859-669-5769
    859-669-5771
    6:00 AM - 2:30 PM
    6:30 AM - 3:00 PM
    EST
    Ogden Large Corp. Team 1
    Large Corp. Team 2
    801-620-4442
    801-620-4406
    7:00 AM - 3:30 PM
    7:30 AM - 4:00 PM
    MST
  2. Large Corp Team addresses are:

    Cincinnati
    PO Box 12267
    Stop 537G
    Covington, KY 41012

    Ogden Express Mail
    1973 N. Rulon White Blvd.
    Mail Stop 6061 (Attn: Large Corp. MS 6732)
    Ogden, UT 84404

    Ogden Regular Mail
    Mail Stop 6732
    Ogden, UT 84201

  3. To find the LCI indicator on IDRS screens, follow the chart below. Once the organization has been assigned to one of the Large Corp Units, the indicator (which is one of the following numbers) shows which campus to contact:

    • Cincinnati (17)

    • Ogden (29)

    ON IDRS SCREEN: LARGE CORPORATION INDICATOR:
    ENMOD LARGE-CORP-CD> directly under ENMOD
    SUMRY LARGE CORPORATION> ON 3rd line of SUMRY
    TXMODA LRG-CORP> on 2nd line of TXMODA
    BMFOLI LGE CORP: on 4th line of BMFOLI

21.7.1.4.11.5  (03-28-2013)
Requesting Large Corp Participation

  1. The "LCI" requests are generally made by the taxpayer or field personnel through the Large Corp Teams or Industry personnel for the BODs.

  2. Determine the taxpayer's BOD.

    If Then
    LB&I or affiliate Complete LCI Request Form.
    SB/SE Refer to your Large Corp manager to contact the appropriate (Collection or Examination) SB/SE Area Director.
    TE/GE entity Refer to your Large Corp manager to contact the appropriate TE/GE liaison as listed below:
    1. Michael Durland for Federal, State and Local Governments (FSLG)

    2. Hector Serrano for Employment Plans (EP)

    3. Jason Kall for Exempt Organizations (EO)

  3. All cases must have multiple/complex issues.

  4. The individual or designee receiving the LCI request must complete the following sections of the LCI request form:

    • Taxpayer Information

    • Taxpayer contact information

    • Requester Information

    • Reason(s) for LCI Request

  5. Identify the LB&I Industry for LB&I taxpayer. The industry is based on the location of the taxpayer.

    If
    the case is
    Then
    On (Audit Information Management System (AIMS) The third number on the primary business code is the Industry code (30X with "X" being the Industry Code).
    Not on AIMS Use the PSP Analyst State Assignment List to identify the Industry that is responsible for the taxpayer's state.
  6. Forward the LCI request form electronically using secure messaging to your manager.

  7. Team managers and Large Corp managers or designees must forward the completed LB&I LCI request form to Industry PSP analysts (listed under "L" Code Request Instructions for a list of industry PSP analysts) using secure messaging.

  8. The PSP analyst will complete the "Approval or Reject information" for LB&I requests. The "L" Code request form will be e-mailed to the responsible Large Corp Technical Team(LCTT) based on the ENMOD address of the taxpayer and LB&I requester, if applicable.

    • If the request has been approved, the LCTT will "L" Code the taxpayer.

    • If the request has been rejected, the Industry PSP analyst will contact the taxpayer and provide the reason why the request was rejected.

21.7.1.4.11.6  (01-01-2005)
Removing Large Corp Participants

  1. Large Corp teams must review the quarterly listings provided by LB&I to eliminate taxpayers currently enrolled in their programs with the following characteristics:

    • No activity for more than 16 months

    • Not currently under examination

    • No balance due or outstanding Taxpayer Delinquency Investigation (TDI), and

    • No recent TE activity, e.g., transcripts

  2. Send a letter to any taxpayer that meets these criteria informing him/her of the intention to eliminate him/her from the program.

  3. If the taxpayer does not reply to the letter within 45 days, consider the taxpayer agreeing that Large Corp. service is no longer required.

21.7.1.4.11.7  (01-01-2005)
Inputting/Removing the LCI and CEP Indicator

  1. Designated employees in the Large Corp Team can add or delete LCI or CEP indicators using IDRS CC BNCHG as follows:

    If Then
    Adding LCI Input campus jurisdiction code in "Large Corp Code" field.
    Removing LCI Input "99" in "Large Corp Code" field.
    Adding CEP indicator Input "01" in CEP field.
    Removing CEP indicator Input "99" in CEP field.

21.7.1.4.11.8  (01-01-2005)
Reviewing Large Corp Notices

  1. Review large corp notices to determine if they are correct.

  2. Research all accounts using available tools to see if there are:

    1. Misapplied payments (including other TINs on file),

    2. Unresolved pending transactions (e.g., payments, subsequent assessments, tax, penalty, interest adjustments, etc.) on IDRS,

    3. Unresolved balance due accounts, or

    4. Erroneous refunds being issued

  3. Take necessary action to resolve any identified issue(s).

  4. If necessary, contact taxpayer by telephone to determine validity of any notice prior to issuance.

  5. Void any notice or release it for issuance per IRM 3.14.2, BMF Notice Review.

21.7.1.4.11.9  (01-01-2005)
Federal and State Agencies Accounts Receivables (Form 941)

  1. Currently, these accounts are worked by TE/GE.

    Exception:

    All State agencies requesting account related assistance are worked by the Large Corp Team in Ogden. Contact Ogden Large Corp Team if you have any questions on these accounts.

21.7.1.4.11.10  (01-01-2005)
Failed Savings and Loans

  1. Employees in Accounts Management or Examination Branch can make assessments on accounts identified as failed savings and loan institutions. These accounts are coded with the "LCI" . The following actions are taken by Output Review:

    1. Enter EINs of these accounts on local control file.

    2. Pull all adjustment notices generated as a result of assessment.

    3. Void notices and input a history item "VOIDEDEXAM " .

  2. Refer all notices identified under NRPS key 06 (Large Complex Corporations) to Exam for proper notice disposition. If these notices are received in other functions that work large complex corporation and CIC accounts, forward to Exam for proper disposition.

  3. See IRM 21.7.4.4.4.13,Insolvent Financial Institutions/Failed Savings and Loans, and Failed Banks for information on these accounts.

21.7.1.4.11.11  (01-01-2005)
D- Freeze/Large Corp Offset

  1. TC 470 cc 97, puts a freeze on all offset-in operations within an account or on a specific module on accounts containing the Large Corporation Literal.

  2. TC 470 cc 97 creates a "D-" freeze and a 52-cycle systemic hold.

    1. It involves accounts containing complex processing issues which require multiple adjustment actions outside the scope of normal processing.

    2. TC 470 cc 97 does not freeze designated overpayments from refunding.

    Caution:

    Do not allow overpayments to refund when the application of such overpayments are part of the case resolution.

21.7.1.4.11.11.1  (10-01-2009)
Use and Posting of TC 470 cc 97 by Examiners Working Large Corp Accounts

  1. Use TC 470 cc 97 when debit balances are known to be erroneous or when the legitimate collection of taxes due the government will not be placed in jeopardy.

  2. TC 470 cc 97 posts under the following conditions. Otherwise, the input document is voided to the originator.

    • Large Corp Account Indicator on the account

    • Debit, credit, or zero balance module

    • No bankruptcy or litigation freezes on the account

    Note:

    The module of input cannot contain any unreversed TC 470 non-closing code 97 (nor can any TC 470 non-closing code 97 be input on a module containing an unreversed TC 470 cc 97).

  3. Input of TC 472 cc 97 or expiration of the 52 cycle systemic hold releases the freeze.

  4. Use a second TC 470 cc 97, if warranted, to properly resolve a taxpayer's account.

  5. Use of TC 470 cc 97 generates Account Maintenance type transcripts as a validation check against any unreversed TC 470 cc 97. These transcripts will generate the 28th cycle after input of the TC 470 cc 97.


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