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Part 25. Special Topics

Chapter 6. Statute Of Limitations

Section 12. Statute Unpostable and Reject Records

25.6.12  Statute Unpostable and Reject Records

25.6.12.1  (10-01-2001)
Statute Unpostable and Reject Records Overview

  1. This chapter provides general information, guidelines, and procedures regarding the Generalized Unpostable Framework (GUF) for processing Statute Unpostable cases in the Statute function.

25.6.12.2  (10-01-2001)
What are Statute Unpostable and Reject Records

  1. Statute Unpostable and Reject Records are transaction items that have not posted to Master File due to a variety of reasons and the statute of limitations for assessing, refunding and/or collecting taxes are imminent/expired.

25.6.12.3  (10-01-2001)
Statute Unpostable and Reject Records Research

  1. To handle statute unpostable and reject records, you may need to reference other Internal Revenue Manuals (IRMs) such as:

    • IRM 3.12.32, General Unpostables

    • IRM 3.12.179, Unpostable Resolution

    • IRM 3.12.166, EPMF Unpostables

    • IRM 3.12.278, EOMF Unpostables

25.6.12.4  (10-01-2001)
Statute Unpostable and Reject Records Procedures

  1. Generally, unapplied master file credits (e.g., non-refundable credits) are transferred to the Excess Collection File (XSF). Occasionally, between the time the credit condition is identified and the debit transaction code (TC) 820 addresses the module, the credit is reduced or eliminated entirely by other transfer actions. Under these conditions, the debit transactions will not post to MF and will be recorded as Unpostable Code (UPC) 175 Individual Master File (IMF) and 325 Business Master File(BMF).

  2. The Unpostable function will not nullify these unpostable records but must reassign them to the statute examiner, who initiated the credit transfer, for further consideration.

  3. Statute employees must request a transcript of the entire account and the documents which caused/absorbed the credit balance, in whole or in part.

    1. If the refund or offset action appears to be correct, no other action is required. Return the document(s) to the Files Function.

    2. If the credit was erroneously refunded, apply erroneous refund and recovery procedures.

  4. Statute unpostable cases are unique in that the record often must be deleted from processing. When the record is deleted, statute tax examiners will:

    1. Replace the document with a manual assessment;

    2. Refile the document because it was received after the Assessment Statute Expiration Date (ASED); or

    3. Delete the document and report as a barred assessment.

25.6.12.4.1  (10-01-2001)
Generalized Unpostable Framework (GUF)

  1. Each week records which fail to post at Master File (MF) are sorted into the GUF System. GUF is an automated unpostable system which sorts the weekly unpostable records generally into three categories. If the record attempting to post is for a statute period and is a return (TC 150 or TC 976/977) which is within 60 days of the ASED, the document will unpost in

    1. Category 1 (C–1), (UPC's 150, 350, 750);

    2. C–2, (UPC's 150, 350, 750 document code 54); or

    3. C-3, Potential statutes and any Unpostable (UNP).

      Note:

      A C–1 unpostable record may also include Questionable Refund Detection Team (QRDT) returns. If one is received, coordinate the resolution with Criminal Investigation (CI). If CI determines a C–1 case is a "Refund Mill" , reassign the case on IDRS "C1–QRDT" .

  2. Statute employees will use the following Unpostable Reason Codes (URC’s) for C–1 cases:

    • URC 0— Allows the record to post as prepared.

    • URC 1—Nullifies the unpostable record and places it in the control of Data Control.

    • URC A and 6—Changes a TIN, name control, tax period on the unpostable record.

    • URC 8—Nullifies the unpostable record and places it under the control of Rejects. See Exhibit 25.6.12–1.

    • URC D—Deletes an adjustment document. No further action is necessary by the preparer of the document. This URC can be used when deleting a document and preparing a Form 2859 to replace it.

  3. Statute employees will use the following URC's for C–2 cases:

    • URC 6—Changes a TIN, name control, or tax period on the unpostable record.

    • URC D—Deletes an adjustment document. Use URC D when deleting a document and preparing a Form 2859 to replace it.

  4. Statute employees will use the following URC’s for C–3 cases:

    • URC 0—Allows the record to post as prepared.

    • URC 1—Nullifies the unpostable record & places it in the control of data control.

    • URC 2—Nullifies the unpostable and opens an IDRS control base to the preparer.

    • URC 6—Changes various fields on the GUF records (TIN, name control, tax period, etc).

    • URC 8—Nullifies the record from the GUF.

    • URC D—Deletes the record from GUF. This URC is used on adjustment type documents when a quick assessment will be prepared.

  5. A document request (Form 4251) is systemically generated for each C–1 and C–2 case and is routed directly to the Files function. The Files function will fill the request and route the document/return to the Statute function. Statutes will take the following action(s) to complete the process:

    1. If the ASED is imminent and it becomes necessary to prepare a manual assessment, use URC D or 8 to remove the record from GUF.

    2. If the ASED is not imminent and the discrepancy can be determined, use URC 0, 5, 6 or A to correct the GUF record.

    3. If the ASED is not imminent and the correction cannot be made on GUF, use URC 8 and notify the Rejects function of the correction.

    4. Use Command Codes (CC) UPDIS to correct the GUF System. When CC UPDIS is input, the GUF screen displays CC UPRES. The correct URC is then entered on the screen by Statute employees assigned the case will enter the correct URC on CC UPRES.

25.6.12.4.2  (04-01-2007)
Bankruptcy Unpostables

  1. If it is discovered that the statute tax module is affected by an open bankruptcy stay of assessment (TC 520), follow procedures in IRM 25.6.5.7.4.

  2. If the expiration period is not imminent, the Master File Tax (MFT) is other than 01 (Form 941), and the TC is not 150, the Unpostable function will input a TC 560 to compute the new ASED.

    Note:

    If the "new" ASED does not allow sufficient time (less than 90 days) to post the assessment systemically using URC 0, the Unpostable function will route the case to the Statute function.

  3. If during research, it is discovered that the module is affected by a bankruptcy, and no TC 521 is posted to Master File, Statutes must reassign the case to the Unpostable Function. The Unpostable Function will coordinate with the Insolvency Function to determine if the bankruptcy freeze should be reversed. Insolvency is responsible for taking action to input a TC 521, if needed. If a TC 521 is posted to Master File, coordinate the resolution with the Unpostable function.

25.6.12.4.3  (10-01-2001)
Unpostable Report (GUF 11–40)

  1. This report is generated weekly and identifies new unpostable cases. Two copies of the report are produced.

    1. The "working copy" is broken down by category code. The Statute function will receive the "working copy" for the statute categories only.

    2. The "master copy" is retained in the Unpostable function.

25.6.12.4.3.1  (10-01-2001)
UP Employee Assignment/Aged Listing (55–40)

  1. This listing is an inventory listing produced from the GUF to all open cases for each employee assignment number (campus, unit, or individual).

  2. The Unpostable function will use this list to identify cases which did not initially meet STATUTE criteria, but the period is now approaching STATUTE criteria.

    Note:

    If an unpostable is becoming statute imminent (90 days or less to post to Master File) and the document has not been secured from Files function, the Unpostable function will immediately reassign the case to the Statute function.

  3. Contact the Unpostable function to view different unpostable listings.

25.6.12.4.4  (10-01-2001)
Category E–2 Examination Statutes

  1. Category E-2 criteria is as follows:

    • UPC 150, 350, or 750 and the document code is 47 (IMF/BMF/IRAF)

    • Master File Code "S" is present, the transaction code is 300 (additional assessment by the Examination function), the document code is 47 and UPC is 191.

  2. All records in category E–2 will be assigned to the Examination function.

Exhibit 25.6.12-1  (10-01-2007)
Form 8749 Unpostable Action & Routing Slip

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