21.7.9  BMF Duplicate Filing Conditions

Manual Transmittal

September 06, 2013

Purpose

(1) This transmits revised IRM 21.7.9, Business Tax Returns and Non-Master File Accounts, BMF Duplicate Filing Conditions.

Material Changes

(1) This IRM was revised to reflect the following changes:

IRM SUBSECTION DESCRIPTION
IRM 21.7.9 Editorial and grammatical changes made throughout.
IRM 21.7.9.2 Removed reference to Form 941C, Supporting Statement to Correct Information.
IPU 13U0444 issued 03-01-2013 IRM 21.7.9.4.1 Updated TDI 59X closing code expansion from 2 to 3 digits throughout this IRM.
IRM 21.7.9.4.1.1.1.2 Added a note to input a TC 290 .00 on True duplicates.
IRM 21.7.9.4.1.2(1) Updated "then" chart and moved the exception to better clarify.
IPU 12U1779 issued 10-29-2012 IRM 21.7.9.4.1.2(1). Added "missing returns" to the IF/THEN chart.
IRM 21.7.9.4.1.2.2(4) Added a link to CAT-A information.
IRM 21.7.9.4.1.6(4) Added a link to Tolerances and corrected blocking series information.

Effect on Other Documents

IRM 21.7.9 dated August 14, 2012 (effective October 1, 2012), is superseded. IRM Procedural Update (IPU) # 12U1779 issued on 10-29-2012 and IPU 13U0444 issued 03–01–2013 are incorporated into this IRM.

Audience

This IRM is intended for Customer Account Services employees working Business Master File Duplicate Filing Conditions.

Effective Date

(10-01-2013)

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

21.7.9.1  (01-01-2006)
Business Master File (BMF) Duplicate Filing Conditions Overview

  1. This section contains information and procedures related to BMF duplicate filing conditions. Topics include:

    • Analysis and resolution of TRNS 193s

    • True duplicate returns

    • Increases and decreases involving TRNS 193s

    • TRNS 193s with IRC 6020(b) involvement

    • Re-input of returns involving TRNS 193s

    • FTD discrepancies

    • Doc code 51 assessments

    • CP 170, and CP 170A

    • TRNS 293s

    • Section 338 corporate filers

    • TRNS 190s

21.7.9.2  (10-01-2013)
What Are BMF Duplicate Filing Conditions?

  1. A duplicate filing condition occurs when a return (TC 976) posts to a module already containing a return (TC 150). IDRS generates a -A freeze which prevents any refund or offset from the module until an adjustment (TC 29X) is made. IDRS also generates a TRNS 193 or TRNS 293 (when there is an open (unreversed) TC 420) which is associated with the TC 976 return and forwarded to Accounts Management, Excise, or Estate and Gift, based on the category code in (3) below.

  2. Since TRNS 190s, 193s, and 293s are generated at the site which processes the TC 976 return, the vast majority of BMF DUPF cases are generated in Ogden and Cincinnati.

  3. All duplicate filing conditions are systemically controlled on IDRS as follows:

    CATG TRNS 193's generating on:
    DUPE Estate and Gift Tax Returns: Form 706, U.S. Estate Tax Return and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
    DUPF BMF returns (except Excise and Estate and Gift)
    DUPX Excise Tax Returns (Form 720, Quarterly Federal Excise Tax Return, Form 730, Monthly Tax Return for Wagers, Form 2290, Heavy Highway Vehicle Use Tax Return, etc.)

  4. All duplicate filing conditions age in 45 days and are not considered correspondence. If correspondence is attached to the duplicate return, the case must be re-controlled as "TPRQ" . The case then needs to be acknowledged. In this instance, the received date of the case must be changed to the original received date on the return. If additional correspondence is received after the date of the duplicate return, do not change the received date. However, the Category Code must be changed to TPRQ.

    Note:

    Do not forget to resolve the -A freeze before closing the case.

  5. Taxpayers file Form 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund,Form 943-X, Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund,Form 944-X, Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund,Form 945-X, Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund, or Form CT-1 X , Adjusted Employer's Annual Railroad Retirement Tax Return or Claim for Refund, to correct information previously reported on Form 941, Employer's QUARTERLY Federal Tax Return, Form 943, Employer's ANNUAL Tax Return for Agricultural Employees, Form 944, Employer's ANNUAL Federal Tax Return, Form 945, Annual Return of Withheld Federal Income Tax, and/or Form CT-1, Employer's Annual Railroad Retirement Tax Return. See IRM 21.7.2.4.6.7, Exception Processing - Incorrect Filing, Including Forms Routed to AM from SP, for more information.

21.7.9.3  (03-26-2012)
Duplicate Filing Conditions Research

  1. When working duplicate filing cases, always refer to the information and procedures for the specific form involved; e.g., Form 941, 1120, 1065, etc. Use this information for input of appropriate TCs, CRNs, IRNs, etc.

  2. C&E inputs CCC "G" on returns marked "amended" , "corrected" , "supplemental" , or "superseding" (amended returns filed on or before the return due date or extended due date). IDRS does not record any information on G coded returns, except the amount paid with the return.

    Exception:

    Some returns by-pass processing and are forwarded directly to the appropriate area for resolution. See IRM 21.7.9.3.1, Amended/Corrected/Adjusted Returns that By-Pass Submission Processing, for more information.

  3. All duplicate filing cases must be controlled on IDRS and not closed until action has been taken to resolve the -A or E- freeze, or the case has been referred to another appropriate area; e.g., Criminal Investigation.

  4. See IRM 21.3.3.4.10.2.1, Amended Return/Claims - Compliance Criteria, for information on working amended returns on accounts in Collection Status 22, 24, 26, or involving other collection criteria/status (status 72). Forward any correspondence received indicating taxpayer wishes to file a delinquent return to Collection after all other adjustment issues have been resolved.

  5. Statute must be considered before sending to Submission Processing for input. Original delinquent returns which are 2 years and 9 months old or older (based on the return due date) must be cleared by the Statute function. See IRM 25.6.1.8, Original Delinquent Returns, for more Statute information.

  6. The following category codes are used with Duplicate Filing Conditions (TRNS 193/293/190) and amended/corrected/adjusted returns that by-pass processing:

    CATG Description
    941X Form 941-X or Form 941-X (PR)
    943X Form 943-X or Form 943-X (PR)
    944X Form 944-X, 944-X (PR) or Form 944-X (SP)
    945X Form 945-X
    BDUP BMF Form 706, Form 709, and Form 94X series returns identified as amended, revised, or corrected that by-pass processing
    BMFO BMF Form 1041, Form 1065, and Form 1120 series returns identified as amended, revised, or corrected that by-pass processing
    C190 TRNS 190 on all BMF returns where there is an amended return (TC 976) and no original return (TC 150)
    CT1X Form CT-1X
    DAUD TRNS 293 on all BMF Forms with TC 420 present
    DUPE TRNS 193 on Estate and Gift Tax Returns (Form 706 and Form 709 series) that are systemically processed
    DUPF TRNS 193 on all BMF returns (except Excise and E&G) that are systemically processed
    DUPX TRNS 193 on all Excise Tax Returns (Form 720, Form 730, Form 2290, etc.) that are systemically processed
    XRET Form 1065X and Form 1120X that bypass processing and do not generate a TRNS 193

21.7.9.3.1  (10-01-2012)
Amended/Corrected/Adjusted Returns that By-Pass Submission Processing

  1. Returns that by-pass Submission Processing are NOT numbered and DO NOT create a TRNS 193 package. They are routed as follows:

    Form Routed to
    Forms 94X-X, Employment Tax Returns - Stand Alone forms Accounts Management.

    Note:

    Follow procedures in IRM 21.7.2.5, Specific Claims and Other Issues, for processing procedures.

    Non-remit Forms 94X series returns marked "amended" or "corrected" . Accounts Management.

    Reminder:

    If taxpayer filed Form 94X instead of the applicable Form 94X-X, see IRM 21.7.2.4.6.7, Exception Processing - Incorrect Filing, Including Forms Routed to AM from SP, for processing procedures.

    Non-remitForm 706, United States Estate (and Generation-Skipping Transfer) Tax Return Estate and Gift (E&G) Tax Operation in Cincinnati.
    Form 1041, U.S. Income Tax Return for Estates and Trusts, Form 1120 Series, U.S. Corporation Income Tax Return, Form 1065, U.S. Return of Partnership Income, marked amended or corrected. Accounts Management.
    Form 1065X, Amended Return or Administrative Adjustment Request (AAR) Accounts Management.
    Form 1120X, Amended U.S. Corporation Income Tax Return Accounts Management.

  2. The following items are mandatory on returns that by-pass processing:

    • Control on IDRS within 14 days from receipt, using the appropriate category code,

    • Input TC 971 AC 010 on modules with a posted TC 150 to set the -A freeze.

      Note:

      If the case is scanned in CIS as an XRET or 94XX, a TC 971 AC 010 is generated, which creates a -A freeze on the account.

    • Input the appropriate adjustment or TC 290 $.00 to release the -A freeze (which will set when the TC 971 AC 010 posts).

      Reminder:

      AM employees MUST use the Integrated Automation Technologies (IAT) tool, REQ54, as mandated in IRM 21.2.2-2, ACCOUNTS MANAGEMENT MANDATED IAT TOOLS, to input adjustments of tax, penalty, interest, and the release of freezes. See IRM 21.2.2.4.4.14, Integrated Automation Technologies, for more information.

  3. In some instances, the returns cannot be worked and must be handled as follows:

    If And Then
    Return is marked "amended" or "corrected" module does not contain a TC 150 Route to R & C on Form 1725 (or other locally designated form) with instructions to process as original. The words "amended" or "corrected" must be circled out.

    Reminder:

    Input TC 599 with the appropriate closing code. See IRM 5.19.2.5.5.4.10 , BMF Response with Original Return(s)

    , for more information.
    Return is marked "amended" or "corrected" TC 150 is a 6020b return. Route to R & C on Form 1725 (or other locally designated form) with instructions to process as original. The words "amended" or "corrected" must be circled out. This is to allow the ASED to be systemically set.

21.7.9.4  (05-19-2010)
Duplicate Filing Conditions Procedures

  1. Apply the following procedures for working BMF duplicate filing conditions and amended returns.

21.7.9.4.1  (03-01-2013)
Resolving TRNS 193s and Amended/Corrected/Supplemental Returns

  1. Some of the most common reasons for filing duplicate or amended returns include:

    • Taxpayer received a delinquency notice due to a delay in processing return

    • Taxpayer sent a duplicate return and indicated it was a final return

    • Taxpayer filed a second return to correct erroneous information on first return

    • Taxpayer filed a second return providing information not included with the original return. (Missing form/schedule)

    • Taxpayer filed an original return but underpaid the tax liability; second return filed with payment of remaining tax liability

    • Taxpayer received a penalty notice for failure to provide a tax liability breakdown; second return filed to provide missing information (forms where FTD penalty is applicable)

    • Taxpayer filed a second return, with deposits specifically addressed, in response to a balance due notice regarding missing payments and a failure to deposit penalty (forms where FTD penalty is applicable)

    • Taxpayer is responding to a notice requesting additional information such as CP 267, etc.

  2. Determine and resolve duplicate filing conditions by examining and comparing information. Use the TRNS 193, duplicate return, CFOL command codes, and original return (secure only if absolutely necessary) to resolve case. Compare the items listed below:

    • Difference in entities (names, addresses, TINs, etc.)

    • Tax periods

    • DLNs

    • Correct form used

    • Received dates

    • Signature, title, and signature date

    • TCs

    • Deposits (compare dates and amounts)

    • Payment received with return(s)

    • Module balance

  3. Check CCs ENMOD, NAMEB, INOLE when the TIN is circled out and a new TIN written in.

  4. Check for indication of "final" on returns and delete filing requirements, if necessary. Input TC 591 closing code 075 using command code FRM49.

  5. Per Rev. Proc. 2010-16, if you discover a new address on an amended return/DUPF that is different than what is on ENMOD, update the address. If your case involves a Fiduciary Name Change or an Address Change on Form 1041, see IRM 21.7.1.4.9, Fiduciary Name/Address Change. Also, see IRM 21.3.4.11.2(7), Taxpayer Requests for Address Change, when an account has an address change and a Z or -Z freeze.

21.7.9.4.1.1  (03-01-2013)
TRNS 193s Involving Reprocessing Returns

  1. When a return must be reprocessed via Form 13596, Reprocessing Returns, refer to the following:

    • IRM 21.5.2-2, Preparing Form 13596 - Reprocessing Returns, for instructions on preparing Form 13596

    • IRM 21.5.2.4.23.7(3), Coding and Editing Procedures for specific information on editing the tax return

    • IRM 21.5.2.4.23.1, Reprocessing Electronic Returns for reprocessing electronic returns

  2. When a dummy return is reprocessed in place of an original or duplicate return, use the same received date as the original or duplicate, respectively.

  3. When an original or amended/duplicate return posts to an incorrect TIN/tax period and is being reprocessed to the correct TIN/tax period, TC 971 must be input to identify cross reference data. Using CC REQ 77, input TC 971 using the appropriate action code (ac) and transaction date (TRANS-DT).

  4. On the TIN/tax period you are moving the return from, input TC 971 as shown in the table below:

    If Then
    The TC 150 return is being reprocessed. Input TC 971 AC 001. Use the return received date (RRD) as the transaction date. (The RRD is located on TXMOD in the RET_RECVD_DT_ field)
    The TC 976 return is being reprocessed. Input TC 971 AC 002. Use the posted TC 976 date as the transaction date.

  5. Input TC 971 AC 017 on the TIN/tax period you are reprocessing the return to. Use the actual stamped received date of the return being reprocessed as the transaction date.

    Note:

    If the received date is unclear or missing, refer to IRM 21.5.1.4.2.4(3), Received Date - Determination, for assistance.

    Reminder:

    TC 971 AC 017 is also used by CAWR to cross reference EINs for Reconciliation Balancing. See IRM 4.19.4.3.5(3), Working Replies – Cross Reference (X-Ref) Cases/Filed With Another EIN, for more information.

  6. Do not input a TC 971 AC 017 on a period with a fiscal year month that differs from the one on ENMOD.

    Example:

    A fiscal year taxpayer files a short period final income tax return. It posts as a TC 976 on tax period ending 2001012, but needs to be reprocessed to tax period 201103. Do not input a TC 971 AC 017 on tax period 201103. This causes an unpostable condition since the FYM on ENMOD indicates 12. Do not change the FYM on ENMOD.

  7. If a TC 971 is incorrectly input on an account with action code 001/002/017, reverse with a TC 972 with the same action code.

  8. Input TC 599 closing code (cc) 018 using CC FRM49 when the return is being reprocessed to a module in MF Status of 02/03.

21.7.9.4.1.1.1  (10-01-2009)
Two Returns Posted to Same Account, Correct Return Posted First, TC 976 Belongs on Different Period/TIN

  1. If TC 976 return is posted to an incorrect account, use IDRS and CFOL command codes to determine where the return belongs.

  2. Once correct account is determined, see IRM 21.7.9.4.1.1.1.1, Reprocessing TC 976 Return to Module With No TC 150, or IRM 21.7.9.4.1.1.1.2, Reprocessing TC 976 Return to Module With TC 150, for instructions.

21.7.9.4.1.1.1.1  (03-01-2013)
Reprocessing TC 976 Return to Module With No TC 150

  1. Use Form 13596, Reprocessing Returns, to reprocess return to correct TIN/tax period. See IRM 21.5.2.4.23, Reprocessing Returns/Documents, for reprocessing procedures.

  2. On module which TC 976 return is being reprocessed to:

    • Input TC 971 AC 017 indicating where the return originally posted. See IRM 21.7.9.4.1.1 (3), TRNS 193s Involving Reprocessing Returns, for proper input.

    • Input TC 599 cc 018 if this account is in MF status 02/03.

  3. On module which TC 976 return is being reprocessed from:

    • Input 290 $.00 (use appropriate HC) to release -A freeze.

    • Transfer any credit which does not belong on this module (use TC 570 if necessary).

    • Input TC 971 AC 002 using REQ77. See IRM 21.7.9.4.1.1 (3), TRNS 193s Involving Reprocessing Returns, for proper input.

21.7.9.4.1.1.1.2  (10-01-2013)
Reprocessing TC 976 Return to Module With TC 150

  1. On module which TC 976 return is being reprocessed to:

    • Input TC 29X to increase or decrease tax using appropriate reference numbers.

      Note:

      Input TC 290 .00 when the TC 976 is a true duplicate of the TC 150.

    • Input TC 971 AC 017 using REQ77.

    • Attach TC 976 return to adjustment document if working a "non-CIS" (Correspondence Imaging System) case.

      Exception:

      If taxpayer filed Form 94X instead of the applicable Form 94X-X, Adjusted Employer's Return or Claim for Refund, follow procedures in IRM 21.7.9.4.1.4, Amended/Supplemental Return - Increase, for tax increases, and IRM 21.7.9.4.1.5, Amended Return - Decrease, for tax decreases.

      Caution:

      It is not uncommon for there to be additional misapplied tax returns which need to be addressed, particularly when a number of delinquent tax returns have been filed at the same time. Before adjusting the account, consider whether the posted TC 150 on this module was intended for another tax period and would also need to be reprocessed.

  2. On module which TC 976 return is being reprocessed from:

    • Input TC 290 $.00 (use appropriate hold code) to release -A freeze.

    • Transfer any credits which do not belong on module. See IRM 21.5.8.4.1, IDRS Guidelines for Credit Transfers . (Input TC 570, if necessary.)

    • Input TC 971 AC 002 using REQ77. See IRM 21.7.9.4.1.1 (3), TRNS 193s Involving Reprocessing Returns, for proper input.

21.7.9.4.1.1.2  (05-19-2010)
Two Returns Posted to Same Account, Incorrect Return Posted First, TC 976 Return is Correct Return

  1. Use IDRS and CFOL command codes to determine where the TC 150 belongs.

  2. Once the correct account/period is determined, it may be necessary to correct the ASED to reflect the correct return received date. If it is determined the ASED needs to be corrected, input the following using CC REQ77:

    1. EIN

    2. MFT and Tax Period

    3. TC 560

    4. Return received date plus 3 years (in the Extension-Dt field)

    5. "70" (in the DLN-CD field) to extend the ASED and "99" (in the DLN-CD field) to back date/back down the ASED.

    6. NSD, Correct ASED (in the Remarks field)

      Note:

      If the ASED is open, you do not need a transaction date. If ASED has expired and you are correcting it, you must input a transaction date that is one day prior to the ASED expiration date on the account to avoid an unpostable.

21.7.9.4.1.1.2.1  (03-01-2013)
Reprocessing TC 150 Return to Module With No TC 150

  1. Use Form 13596, Reprocessing Returns, to reprocess return to correct TIN/tax period. See IRM 21.5.2.4.23, Reprocessing Returns/Documents, for reprocessing procedures.

  2. On module which TC 150 return is being reprocessed to:

    • Input TC 971 AC 017 indicating where return originally posted. See IRM 21.7.9.4.1.1 (3), TRNS 193s Involving Reprocessing Returns, for proper input.

    • Input TC 599 cc 018 if account is in MF status 02/03.

  3. On module which TC 150 is being reprocessed from:

    • Input TC 29X with appropriate reference numbers to adjust tax to the amount reflected on TC 976 return. Use BS 00-09 since the TC 976 is now the original return on the module.

    • Adjust penalties if necessary.

    • Transfer any credits which do not belong on module. (Use appropriate HC with TC 29X in the first bullet above, if transferring credits.)

    • Attach TC 976 return to adjustment document if working a "non-CIS" case.

    • Input TC 971 AC 001 using REQ77. See IRM 21.7.9.4.1.1 (3), TRNS 193s Involving Reprocessing Returns, for proper input.

    • Correct ASED, if necessary. See IRM 21.7.9.4.1.1.2, Two Returns Posted to Same Account, Incorrect Return Posted First, TC 976 Return is Correct Return, for input information.)

21.7.9.4.1.1.2.2  (05-19-2010)
Reprocessing TC 150 Return to Module With TC 150

  1. On module which TC 150 return is being reprocessed to:

    1. Input TC 29X to increase or decrease tax using appropriate reference numbers.

    2. Circle out incorrect TIN/tax period on TC 150 return being moved and enter correct TIN/tax period. (It is not necessary to enter anything else on return.)

    3. Input TC 971 AC 017 using REQ77.

    4. Attach TC 150 return you are moving to adjustment document if working a "non-CIS" case.

    5. Correct ASED, if necessary. See IRM 21.7.9.4.1.1.2, Two Returns Posted to Same Account, Incorrect Return Posted First, TC 976 Return is Correct Return, for input information.

    Caution:

    It is not uncommon for there to be additional misapplied tax returns which need to be addressed, particularly when a number of delinquent tax returns have been filed at the same time. Before adjusting the account, consider whether the posted TC 150 on this module was intended for another tax period and would also need to be reprocessed.

  2. On module which TC 150 return is being reprocessed from:

    1. Input TC 29X to increase or decrease tax using appropriate reference numbers, (BS 00–09 since the TC 976 is now considered the original return on the module), and HC to adjust tax for difference between the TC 150 and TC 976 returns.

    2. Adjust penalties, if necessary.

    3. Transfer credits, if necessary. See IRM 21.5.8.4.1, IDRS Guidelines for Credit Transfers. (Input TC 570 if necessary.)

    4. Input TC 971 AC 001. See IRM 21.7.9.4.1.1 (3), TRNS 193s Involving Reprocessing Returns, for proper input.

    5. Attach TC 976 return to adjustment document if working a "non-CIS" case.

    6. Correct ASED, if necessary. See IRM 21.7.9.4.1.1.2, Two Returns Posted to Same Account, Incorrect Return Posted First, TC 976 Return is Correct Return, for input information.

21.7.9.4.1.1.3  (10-01-2009)
Reprocessing Returns With FTD Penalty Computation Other Than Current MF Computation

  1. If a return being reprocessed contains an FTD penalty computed differently from that which would be computed under current processing:

    1. Verify correct penalty amount and enter near the top of return.

    2. See IRM 20.1.4, Failure to Deposit Penalty, for more information.

    3. Edit a CCC "J" if taxpayer has provided a valid explanation for non assertion of the FTD penalty based on reasonable cause.

21.7.9.4.1.2  (10-01-2013)
TRNS 193 Received Without Duplicate Return

  1. When a TRNS 193 is received without the duplicate return, attempt to determine if it is a true duplicate (True DUPF) using CC BRTVU or CC TRDBV.

    If CC BRTVU/TRDBV Then
    Proves the duplicate return to be a True DUPF. Input TC 290 $.00 in BS 15/17 (if original return is attached use BS 00) and in the remarks portion of the adjustment document input "NSD - True DUPF per BRTVU/TRDBV" .
    Proves the duplicate return to be a True DUPF of another period, and there are no open TDI's or missing returns for this MFT. On the TC 976 module, do the following:
    • Input a TC 290 $.00 in BS 15/17 to release the -A freeze.

    • Input TC 971 AC 002 with appropriate cross reference information. See IRM 21.7.9.4.1.1 (3), TRNS 193s Involving Reprocessing Returns, for proper input of TC 971.

    On the module to which the return is a true duplicate :
    • Input a TC 290 $.00 in BS 15/17 using a print of BRTVU/TRDBV as documentation. If working cases thru CIS, capture the BRTVU/TRDBV screen as required in IRM 21.5.1.5.1,CIS General Guidelines.

    Example:

    Form 941, TC 976, generates on tax period 201206 and was received on October 31, 2012. The TRNS 193 is received without the TC 976 return attached. BRTVU clearly indicates the return is a true duplicate of the TC 150 posted to tax period 201209. There are no open TDI's on any other Form 941 accounts. Input a TC 290 $.00 and TC 971 AC 002, on the 201206 tax period. Input a TC 290 $.00 on the 201209 tax period and attach a print of BRTVU if working "non CIS" cases.

    Does not prove the duplicate return is a True DUPF. For example:
    • figures differ

    • G coded

    • open TDI's or missing returns for this MFT.

    Make one attempt (if possible) to contact the taxpayer by telephone for a copy of the duplicate return.

    Exception:

    If the TC 976 is a MeF return, do not contact the Taxpayer or request the document from Files. See IRM 21.7.9.4.1.2.2, Modernized e-file (MeF) Amended Returns for more information.

    • If the taxpayer can provide a copy of the return today, See IRM 21.7.9.4.1, Resolving TRNS 193s and Amended/Corrected/Supplemental Returns, for procedures.

    • If you are unable to reach the taxpayer or if the taxpayer is not able to provide a copy of the return today, request the document from files using CC ESTABD, definer S. (definer F if working non-CIS case) Notate in the remarks field "second request" .

      Reminder:

      The TRNS 193 is considered the first request for the return.

  2. If Files is unable to secure the return after the two previous requests, input another request as "Special Search" using Form 2275, Records Request, Charge and Recharge.

  3. If Files is unable to secure the return after the "Special Search" request, send correspondence ( Letter 418C) to taxpayer to request a signed copy and suspend the case for 40 days.

  4. If the return is received from Files, or from the taxpayer in response to your correspondence, see IRM 21.7.9.4.1, Resolving TRNS 193s and Amended/Corrected/Supplemental Returns, for processing procedures.

  5. If the return has not been secured, and the suspense period has ended, follow the table below:

    If Then
    A payment was received with the duplicate return
    • Assess tax equal to payment amount.

    • If module credit balance is in excess of payment submitted with return, determine reason for additional excess credit.

    • Resolve any misapplied payments or other module freeze conditions before making assessment.

    • If TC 976 return is an employment tax return, follow instructions in IRM 21.7.2.4.6.3.2, Withholding Tax Adjustment When Unable to Determine Proper Tax Correction, and input TC 29X using the applicable item reference number (IRN). Also, send Letter 4384C , Employment Tax Return-Form 94X, explaining the adjustment indicated on the amended/supplemental return has been made and in the future they must file the appropriate "X" form (specify the specific form to use) to make the adjustment.

    Information is not available to determine adjustment needed and no payment was received with duplicate return Input TC 290 $.00 to release the -A freeze.
    Sufficient information is available to recreate the return and it needs to be reprocessed Follow procedures in IRM 21.5.2.4.23.11, Reprocessing "Dummy" Returns.

21.7.9.4.1.2.1  (10-01-2009)
Multiple Returns Posting to a Module, One (1) or More Returns Were Electronically Filed

  1. Multiple returns are posting to some Form 941 and 940 accounts where one or more of the returns were electronically filed. DUPF's have generated on some accounts where one return was filed via XML format and another return was filed on paper. We also have DUPF's generating when one return is filed in XML format and a second return is filed electronically via the legacy e-file system (EDI/Proprietary formats). There is no interaction between the legacy and XML systems. Because the returns were not submitted using the same system for the first and second return, they were not recognized as duplicates and were allowed to post.

  2. Some of these DUPFs are the result of the taxpayer having difficulties with one system and then converting to another system. They also are generating because the taxpayer has changed payroll companies. One payroll company submits a return for the entire quarter and the other company submits a partial return, with both companies using different formats.

  3. Use CC BRTVU to view the second (TC 976) return. See IRM 21.7.9.4.1.4, Amended/Supplemental Return – Increase, and treat as a supplemental return, unless something indicates otherwise. If there is a credit balance on the account and you do not treat as a supplemental return, do not release the refund without contacting the taxpayer.

21.7.9.4.1.2.2  (10-01-2013)
Modernized e-file (MeF) Amended Returns

  1. MeF amended Form 1065 and 1120 are identified by a TC 976 with CCC (Computer Condition Code) "G" and a unique FLC (File location code) that generally begins with 93.

    Note:

    The FLC is the first two digits of the DLN. See IRM 3.42.4.4.2.1, Researching e-file BMF Identification Codes, for additional information regarding FLCs.

  2. The TC 976 document is not available on CIS and will be notated "No Documents were found for this case" in the document images section of the CIS case. The document is accessed through the Employee User Portal (EUP), using the MeF Bus Tax Return & Ack PRD application. A guide , MeF Return Request and Display User Guide, is available on SERP under the Local/Sites/Other tab to assist IRS employees who need to view and print tax returns, extensions, and/or transmissions.

  3. Process amended MeF returns using existing procedures in this IRM.

  4. Route carrybacks to the appropriate carryback unit. Also, route claims to Examination and send Cat-A as required. See IRM 21.5.3-2, Examination Criteria (CAT-A) - General, and IRM 21.5.3-3, Examination Criteria (CAT-A) - Credits for more information.

21.7.9.4.1.2.3  (10-01-2009)
TRNS 193 Erroneously Generated from Input of TC 971 AC 010

  1. Forms 94X-X scanned via CIS, systemically generate TC 971 AC 010. If the TC 150 is not posted, an erroneous TRNS 193 generates. This results in an additional control base on CIS/IDRS. Master File programming was implemented in July, 2011 to prevent these erroneous notices.

  2. The following identify these DUPF cases:

    • DLN of the TC 971 AC 010 and TC 976 are identical with a doc code of "77" . Do not attempt to order the TC 976 document from Files.

    • No CIS image is available for the TRNS 193 chargeout. Do not work these cases from BRTVU.

    • The TC 150 posting cycle is later than the TC 976 (971 ac 010) posting cycle.

  3. After determining your DUPF case is erroneous:

    1. Ensure correct actions were taken on the 94X-X case. If not, see IRM 21.7.2.5, Specific Claims and Other Issues, for additional information.

    2. Update the IDRS control base to category MISC and close your IDRS base. The control category must be updated and closed on IDRS prior to closing the CIS case or it will be systemically changed back to DUPF.

    3. Close the CIS case as "No Action" .

      Note:

      If the -A freeze was not released from the 94X-X case action, take appropriate action to release freeze.

21.7.9.4.1.3  (10-01-2011)
True Duplicate

  1. A true duplicate condition occurs when the taxpayer files two returns for the same tax period with the same information on both returns and no tax change is required.

  2. Do the following:

    1. Analyze account data and both returns (if original was needed to resolve case) to verify they are true duplicates.

    2. Input TC 290 $.00 in BS 15/17 (unless original return is attached) to release -A freeze. Use duplicate return for source document if working a "non CIS" case.

      Caution:

      If the module is in zero balance, input hold code "0" . If the true duplicate return was received with payment, do not treat as a true duplicate. See IRM 21.7.9.4.1.4, Amended/Supplemental Return-Increase, and treat as a supplemental return.

  3. Staple TRNS 193 to duplicate return when appropriate.

    Note:

    If original return was secured, staple duplicate return behind original ("non-CIS" environment) and use appropriate BS (00-09).

21.7.9.4.1.4  (10-01-2012)
Amended/Supplemental Return - Increase

  1. Returns reporting tax increases are sometimes marked as "amended" returns. They can also be marked as "corrected" or "supplemental" . Additional tax is usually paid with these returns. Follow (4) below if the return is an amended/corrected/supplemental return.

  2. Taxpayers do not always explain why a second return was submitted. Entities with more than one business location are supposed to be combined and reported on one return. Many times taxpayers file separate returns for each location. Thoroughly research account on IDRS/CFOL using all available tools to determine whether to assess liability on second return. Consider such items as the following:

    1. Do the filing/signature dates, liability periods, credits claimed or payments made, relate to any other tax period?

    2. Is there any change to the entity information which could indicate a different taxpayer?

    3. Are there any open modules (for example, no TC 150) for which the second return is intended?

    4. Is there an indication the second return is in response to previous Campus correspondence?

  3. If the reason for filing the second return is not clear, additional information is needed. Action required:

    1. Request TC 150/976 documents, if necessary.

    2. Attempt to contact the taxpayer for additional information.

    3. Document call attempts and any conversations with the taxpayer.

    4. Correspond (generally Letter 31 C, Duplicate Returns Filed; Explanation Requested), with the taxpayer if unable to contact by phone.

    5. If corresponding, suspend for 40 days.

  4. Take the following action after completing research and a proper determination can be made on the correct resolution of the case, or if you are unable to determine because you receive "no reply" from the taxpayer:

    1. Re-compute tax liability. A tax increase on a supplemental return is increased for the amount of the supplemental return. A tax increase on an amended return is increased for the difference between the original and amended returns.

    2. For math verification procedures, see IRM 21.5.1.4.12, Tolerances.

    3. Compare information on TRNS 193 with IDRS data. Consider any action which has taken place since TRNS 193 generated, before adjusting account.

    4. Increase tax with TC 29X and adjust any appropriate IRNs, abstract numbers etc. Use appropriate BS (00-–09) if the TC 150 document has been secured. Use BS 18 on superseding returns only if working a "non-CIS" case. See IRM 21.5.1.5.3, CIS Source Documentation, for CIS blocking information.

    5. Adjust penalty and interest if necessary. See IRM 20.1.4.21.3, Amended or Supplemental Return (Tax Decrease or Non-Interest Free Tax Increase), before adjusting the FTD penalty and IRM 20.2, Interest, respectively.

    6. If taxpayer filed Form 94X instead of the applicable 94X-X form, send the appropriate "C" letter (e.g., Letter 4384C , Employment Tax Return - Form 94X ), explaining that the adjustment indicated on amended/supplemental return has been made and in the future they must file one of the new "X" forms (specify the specific form to use) to make the adjustment. If the Form 94X was for a different business/location, advise the taxpayer only one return is necessary even though several businesses are involved.

    7. Allow adjustment notice (CP 210/220) to generate. If the adjustment is different than what the taxpayer expected, correspond with the appropriate "C" letter and explain the changes to the taxpayer.

    8. If taxpayer filed separate returns (other than Form 941/943/944/945/CT-1) for several businesses/locations, send Letter 673C and advise taxpayer to file only one tax return per tax period (in the future), even though several businesses are involved.

      Note:

      If adjusting Form 1041 and 1120, an increase in income may meet the criteria for an Examination initiative. See IRM 21.5.3.4.7.4, Taxable Amended Return Program, for more information.

21.7.9.4.1.5  (10-20-2010)
Amended Return - Decrease

  1. Amended returns filed to decrease tax are required to have backup information (required forms, schedules, etc.) attached, unless return is correcting a reporting error. Refer to the appropriate section of this IRM for required documentation for each form.

  2. If the TP is attempting to reduce their employment tax to zero, see IRM 21.7.2.5.1, Frivolous Employment Tax Claims, for more information.

  3. If the TP filed a Form 94X Employment Tax return, instead of the applicable 94X-X form, follow the table below:

    If Then
    The adjustment is ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. Decrease tax with TC 291 and appropriate IRNs, BS, and HC.

    2. Send Letter 4384C informing the TP the adjustment indicated on the amended/supplemental return has been made and the applicable X form must be filed in the future.

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Reject the return (claim) by following the steps below:
    1. Send Letter 4384C informing the taxpayer the adjustment indicated on the amended/supplemental return has not been made and the applicable X form must be filed.

    2. Input TC 290 $.00 to release the -A freeze.

  4. For BMF returns, other than employment tax, take the following action:

    1. Compare information on TRNS 193 with IDRS data. Consider any action which has taken place since TRNS 193 generated, before adjusting account.

    2. Recompute tax liability.

    3. Decrease tax with TC 29X and appropriate IRNs, CRNs, etc. using appropriate BS and HC.

      Note:

      If the adjustment results in a refund of $10 Million or more, follow procedures in IRM 21.5.2.4.11, Assessments or Refunds over $10 Million.

    4. Adjust penalty and interest, if necessary. (See IRM 20.1, Penalty, and IRM 20.2, Interest, respectively.)

  5. For additional information on processing claims, see IRM 21.5.3, General Claim Procedures.

21.7.9.4.1.6  (10-01-2013)
Duplicate Filing Conditions Involving Returns Prepared Under IRC Section 6020(b)

  1. Pursuant to IRC 6020(b), a substitute-for-return (SFR) is prepared by the Service when it is determined a taxpayer is liable to file, but failed to do so after notification from the Service.

  2. A 6020(b) return is identified on TXMOD by Computer Condition Code (CCC) 4 and the literal "6020b" at the end of the TC 150 assessment DLN. TXMOD may also contain TC 59X and a closing code. Some of the most common closing codes are 08, 09, 38, 39, 63, and 64.

    1. Closing codes 08, 38 and 63 indicate a return prepared by IRS (un-agreed case), for example, from prior quarters liabilities. Statutory period begins when taxpayer files a signed return.

    2. Closing codes 09, 39 and 64 indicate taxpayer agreed to proposed assessment. (See IRM 25.6.1.9,Assessments, for more information on statute considerations.)

  3. When the TC 150 is the taxpayer's return and the TC 976 is the 6020(b) return, no tax adjustment is necessary. Input TC 290 $.00 with the appropriate blocking series (BS) to release the -A freeze.

  4. When the TC 150 is the 6020(b) return and the TC 976 is the taxpayer's return reflecting a tax decrease, do the following:

    • Math verify tax liability on taxpayer’s return, if over tolerance. See IRM 21.5.1.4.12, Tolerances, for more information.

    • Input TC 291 using appropriate IRNs, CRNs, etc. using appropriate BS.

      Note:

      Only use BS 00/09 when you have the TC 150 document.

      Reminder:

      On Form 940, certification must be requested from the appropriate state prior to adjusting the account. For more information, see IRM 21.7.3.4.3,Manual Certification Required (FUTA).

    • Manually compute FTF/FTP penalties if previously restricted (TC 160, 161, 270, 271). See IRM 20.1.2.2 , Failure to File a Tax Return or to Pay Tax - IRC 6651, for adjusting penalties. If not previously restricted, IRS's computers will automatically adjust.

  5. When the TC 150 is the 6020(b) return and the TC 976 is the taxpayer's return reflecting a tax increase, do the following:

    • Math verify tax liability on taxpayer’s return, if over tolerance.

    • Input TC 290 using appropriate IRNs, CRNs, etc. using appropriate BS.

    • Manually compute FTF/FTP penalties if previously restricted (TC 160, 161, 270, 271). See IRM 20.1.2.2 , Failure to File a Tax Return or to Pay Tax - IRC 6651, for adjusting penalties. If not previously restricted, input Priority Code (PC) 2 with TC 290, or PC 3 or 9 with TC 300 to allow IRS's computers to automatically adjust these penalties.

      Note:

      Input of the appropriate PC on tax increases allows MF to adjust the FTP penalty from the RDD.

  6. Always consider manual computation of ES Penalty and FTD Penalty when decreasing or increasing tax. Manual abatement is not necessary if these penalties were not previously manually assessed, and tax is being reduced to zero.

21.7.9.4.1.6.1  (05-19-2010)
Form 94X-X Return Filed Instead of Form 94X - TC 150 is 6020(b) Return

  1. If the Service prepares a return under the authority of IRC Section 6020(b), the Service has a policy against abating any portion of the tax assessed unless the taxpayer files an original signed tax return.

  2. Some taxpayers may respond to these assessments with Form 94X-X, instead of an original signed Form 94X. To resolve these issues, follow procedures below:

    1. Contact taxpayer, preferably by phone, to obtain a signed copy of the return (including the corrected information) along with any required schedules.

    2. If unable to reach the taxpayer by phone, correspond for the return and suspend the case for 40 days.

  3. If taxpayer provides a copy of the return, process accordingly.

  4. If taxpayer does not reply, and the suspense period has ended, follow the steps below:

    1. Prepare a “dummy” return using the corrected information from the “X” form.

    2. Attach applicable 94X-X form to the back of the “dummy” return.

    3. Process “dummy” return as the original.

    4. Ensure all applicable deposits are correctly applied.

21.7.9.4.1.7  (10-01-2009)
FTD Discrepancies on Duplicate Filing Cases

  1. When resolving duplicate filing conditions involving returns subject to FTD penalty, compare "Record of Federal Tax Liability" (ROFTL) section of return against deposits and payments posted to modules involved. This applies to returns posted to correct modules as well as those being reprocessed to other modules.

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

  3. Before closing the case, check IDRS to see if a TRNS 194 or CP 207 was issued. If so, coordinate with FTD Penalty Function to prevent erroneous FTD Penalty Assessments. (The amended return could be taxpayer’s response to CP notice.)

21.7.9.4.1.7.1  (10-01-2009)
In-House Research Procedures

  1. Verify return tax computation to ensure FTD information was correctly entered. If an error is found due to addition, subtraction, transposition of numbers, or misapplied entries:

    1. Correct deposit amount claimed on return.

    2. Reprocess return to correct module, if necessary.

  2. If FTD payments are missing or misapplied, research the FTD Credit Module (MFT 01, tax period 000000), the Unidentified Remittance File, and prior and subsequent tax periods to locate payments.

  3. Transfer any erroneously posted payments to correct modules. (See IRM 21.5.8, Credit Transfers.)

21.7.9.4.2  (02-29-2008)
Incorrect Use of Preprinted Label/Form

  1. Duplicate filing conditions are sometimes caused by the incorrect use of a tax form or preprinted label. To resolve these issues, see the information below:

    If caused by Then advise via Letter 673C
    Pre-printed label Use only for the intended form/period
    Wrong tax year form Use correct tax year in future
    Correct year/wrong checkbox Ensure correct period is marked

  2. The taxpayer does not need to be notified if the return was a final return, or if the taxpayer indicated on the duplicate return the correct period and C&E did not properly code the return.

21.7.9.4.3  (01-01-2005)
Multiple TINs

  1. On cases involving multiple TINs, determine if either account needs to be deleted.

  2. If necessary, contact taxpayer and/or Entity Control for purpose of deleting accounts, filing requirements, and/or input of appropriate TC 59X.

21.7.9.4.4  (10-01-2013)
Transferring Accounts Which Cannot Be Transferred Using MF Procedures

  1. An Account Transfer is a means of transferring an account between Master File accounts or between Master File and Non-Master File when limitations within the system will not allow resolution of the case. An Account Transfer is necessary when a Master File account is posted incorrectly and the Assessment Statute Expiration Date (ASED) is expired. See IRM 25.6.1.9.9.3, Correct Records on Expired Statute Periods, for procedures

21.7.9.4.5  (03-26-2012)
TEFRA/AARs on Flow-through Entities

  1. Form 1065 TRNS 193s may involve an Administrative Adjustment Request (AAR) allowed under the Tax Equity and Fiscal Responsibility Act (TEFRA), and must be sent to the Examination function before processing. IRM 21.7.4.4.2.9,Duplicate Filing Conditions on Form 1065 and Form 1065X, Amended Return or Administrative Adjustment Request (AAR), provides the specific criteria for this situation.

  2. For a general listing of CAT-A criteria, See IRM 21.5.3-2, Examination Criteria (CAT-A) – General.

21.7.9.4.6  (10-01-2010)
Document Code 51 Assessments - Employment Code Discrepancies

  1. Document code 51 assessments unpost when entity employment code (EC) indicates taxpayer is not liable for type of tax assessed. Since document code 51 transactions are manually assessed in the Accounting Function and a bill issued to taxpayer, assessment must be posted at MF before taking corrective action. Entity verifies correct EC.

    If Then
    EC is incorrect Entity corrects EC and posts assessment.
    EC is correct Entity changes EC to allow assessment to post, cycles correct EC, and forwards case to Accounts Management on Form 3210.

  2. Each case sent by Entity has Form 8749, Unpostable Action and Routing Slip, attached. Input appropriate adjustment action specified on Form 8749; e.g., abatement of erroneous assessment.

21.7.9.4.7  (10-01-2010)
CP 170 or CP 170A Duplicate Filing Condition

  1. Prompt, Quick, and Jeopardy Assessments are expeditious assessments made by area office Exam, Collection, or Campus functions when a statute is imminent or collection of taxes is in jeopardy. Tax data necessary for these assessments is transmitted to Accounting Function by telephone, mail, facsimile, or IDRS letter. The Accounting Function:

    1. Manually assesses tax, penalty, and interest

    2. Prepares a balance due notice to taxpayer

    3. Enters information in ISRP to post to MF

  2. These pre-itemized transactions are numbered with a document code 51. They are identified by TC 370.

  3. Prompt assessment billings attempting to establish a tax module (TC 150) when a TC 150 is already present result in:

    1. Posting of a TC 290.

    2. Establishment of -A freeze.

    3. Generation of a CP 170 or CP 170A instead of TRNS 193/193A.

  4. To resolve -A freeze:

    1. Follow normal duplicate filing adjustment procedures.

    2. Determine reason for prompt assessment.

    If Then
    Additional assessment is valid Input TC 290 $.00 to release -A freeze.
    Additional assessment is erroneous/duplicate 1. Input TC 291 to abate additional assessment.
    2. Address penalty and interest, if necessary.

    Note:

    Most Prompt, Quick, and Jeopardy Assessments are statute periods and need to be reviewed and/or cleared by the Statute Area before adjusting the tax.

21.7.9.4.8  (10-01-2010)
TRNS 293, Duplicate Return With TC 420 Present

  1. A TRNS 293 is generated when a duplicate return posts to an account with open TC 420 present.

  2. Use procedures for duplicate filing conditions. Be sure to consider the open TC 420 when adjusting account. (See IRM 21.5.3, General Claims Procedures, when working claims.)

21.7.9.4.9  (10-01-2010)
Section 338 Filers

  1. Corporations making an election under IRC Section 338 can file two Forms 1120, thus creating a duplicate filing condition. Both returns are short period returns covering different periods.

  2. Determine proper period for each return, and:

    1. If both periods end in the same month, input first return with an FY ending for that month and subsequent return with an FY ending for following month.

    2. Since re-inputting return creates an unpostable due to a mismatch on the FY ending, attach instructions for Unpostables to force return to post.

    3. To work case, See IRM 21.7.9.4.1.1.2, Two Returns Posted to Same Account, Incorrect Return Posted First, TC 976 Return is Correct Return, or IRM 21.7.9.4.1.1.1.1, Reprocessing TC 976 Return to Module with No TC 150, as applicable.

21.7.9.4.10  (10-01-2010)
TRNS 190, Amended Return - No Original Posted

  1. TRNS 190 is generated within four cycles after a "G" coded TC 976 return posts to a module which does not contain an original return (TC 150).

  2. TRNS 190 is associated with TC 976 return and forwarded to Accounts Management for resolution.

  3. E- freeze is generated along with TRNS 190. E- freeze must be released before TRNS 190 case is closed by either posting:

    • TC 971 AC 002

    • TC 150

  4. Accounts Management must determine disposition of TC 976 return.

    1. Check IDRS for an unpostable or rejected TC 150. (Follow local procedures for working these cases.)

    2. Analyze return and any attached schedules for possible re-input to another tax period or TIN.

    3. If TC 150 has posted to account since TRNS 190 was generated, close the base for the TRNS 190 to the DUPF control after it has been assigned to an employee. Resolve duplicate filing condition.

    4. If further information is needed, call or send taxpayer a copy of the return using the appropriate C Letter. (Suspend case for 40 days if corresponding.)

21.7.9.4.10.1  (03-01-2013)
TC 976 Return Intended as Original

  1. If TC 976 return needs to be re-input to the same module, to post as the original (TC 150), the return must be edited and reprocessed using Form 13596, Reprocessing Returns. Input TC 971 AC 002 to prevent the generation of TRNS 193. If the module is in MF Status 02/03, input TC 599 closing code (cc) 018 using FRM 49.

  2. Follow instructions in IRM 21.5.2.4.23, Reprocessing Returns/Documents, when reprocessing documents.

21.7.9.4.10.2  (11-04-2010)
TC 976 Return Posted to Incorrect TIN/Tax Period, Account for Which It Was Intended Contains the Original Return (TC 150)

  1. When it is determined TC 976 return was intended for another module which contains the original return, action must be taken on both accounts.

  2. On module which the TC 976 is being moved to:

    1. Input TC 29X with appropriate reference numbers to adjust tax to the amount reflected on TC 976 return.

    2. Adjust penalty and interest if necessary.

    3. Input TC 971 AC 017 using REQ 77.

    4. Attach TC 976 return to adjustment document.

      Exception:

      If taxpayer filed Form 94X instead of the applicable Form 94X-X, Adjusted Employer's Return or Claim for Refund, follow procedures in IRM 21.7.9.4.1.4, Amended/Supplemental Return - Increase, for tax increases, or IRM 21.7.9.4.1.5, Amended Return - Decrease, for tax decreases.

  3. On module which TC 976 return is being moved from:

    1. Transfer any credits which do not belong on module. See IRM 21.5.8.4.1, IDRS Guidelines for Credit Transfers. (Input TC 570 if necessary.)

    2. Input TC 971 AC 002 to release E- freeze.

21.7.9.4.10.3  (03-01-2013)
TC 976 Return Posted to Incorrect TIN/Tax Period, Account for Which It Was Intended Does Not Contain an Original Return (TC 150)

  1. If TC 976 return was intended for another module which does not contain an original return, action must be taken on both accounts.

  2. On module which TC 976 return is being moved to:

    1. Use Form 13596, Reprocessing Returns, to reprocess return to correct TIN/tax period. See IRM 21.5.2.4.23, Reprocessing Returns/Documents, for reprocessing instructions.

    2. Input TC 599 cc 018 (if module is in MF Status 02/03).

    3. Input TC 971 AC 017. See IRM 21.7.9.4.1.1 (3), for proper input.

  3. On module which TC 976 return is being moved from:

    1. Transfer any credits which do not belong on module. See IRM 21.5.8.4.1, IDRS Guidelines for Credit Transfers. (Input TC 570, if necessary.)

    2. Input TC 971 AC 002 to release E- freeze. See IRM 21.7.9.4.1.1 (3) for proper input.

21.7.9.4.10.4  (10-01-2010)
TC 976 Return Posted to Correct Module, Original Return Posted to Incorrect Module

  1. When TC 976 return posts to correct module, but original return intended for that module incorrectly posts to another module, the original return on the incorrect module must be secured.

  2. On module containing the incorrect original return:

    1. Abate tax assessed on incorrect module using appropriate HC. (Also abate penalty and interest if restricted.)

    2. Transfer credits to correct module. See IRM 21.5.8.4.1, IDRS Guidelines for Credit Transfers . Input TC 570, if necessary.

    3. Input TC 971 AC 001. See IRM 21.7.9.4.1.1 (3), TRNS 193s Involving Reprocessing Returns, for proper input.

    4. Reprocess the TC 150 document to the correct period. However, if the return belongs on the module where the TRNS 190 generated, and the TC 976 amended return on that period is reporting the correct amount of tax, reprocess the TC 976 as the original. Edit an "X" on the TC 150 document and attach it behind the TC 976 return. Edit, on the return: "Do Not Detach" . Also, edit the earliest received date from either document onto the document you are sending to be reprocessed.

  3. On module where the TRNS 190 generated which contains the TC 976 return:

    1. Reprocess either the original or amended return as the TC 150. (Follow (2)(d) directly above if reprocessing the TC 976.)

    2. If the TC 150 from the incorrect module contains the most current tax reporting information, reprocess it as the original to the module. Only reprocess the TC 150 if it contains more current information than the TC 976, otherwise reprocess the TC 976. Edit an "X" on the TC 976 document and attach it behind the TC 150. Edit, on the return: "Do Not Detach. " Also, edit the earliest received date from either document onto the document you are sending to be reprocessed.

    3. Input TC 971 AC 002 to prevent generation of TRNS 193.

21.7.9.4.10.5  (10-01-2010)
TC 976 Return Cannot Be Obtained From Files

  1. When working TRNS 190, and TC 976 return cannot be obtained from Files, follow procedures below:

    1. Correspond (use Letter 418C) or call taxpayer to obtain a copy of original and amended returns. Request a "special search" from Files, using Form 2275, Records Request, Charge and Recharge.

    2. Put case in "M" Status and suspend for 40 days.

  2. If taxpayer does not reply and TC 976 return still cannot be located, follow the chart below:

    If Then
    There are no credits on module Input TC 971 AC 002 to release E- freeze.
    There are credits on module which do not belong on any other module (appropriate research must be performed) Prepare a dummy return using DLN of TC 976 return, with a tax liability equal to credits.

    Note:

    Use this procedure only if sufficient information is not available to process a return as original.


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