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Part 25. Special Topics

Chapter 6. Statute Of Limitations

Section 13. Transcripts

25.6.13  Transcripts

25.6.13.1  (10-01-2001)
Statute Transcripts Overview

  1. This section provides guidance in identifying and resolving statute transcripts where the Assessment Statute Expiration Date (ASED) is imminent/expired or the Refund Statute Expiration Date (RSED) has expired.

25.6.13.2  (04-05-2006)
What Are Statute Transcripts

  1. A Statute transcript is an internally generated correspondence by the Computer Services function in service campuses.

25.6.13.3  (04-05-2006)
Statute Transcript Research

  1. To resolve statute transcripts, you need to refer to the following Internal Revenue Manual (IRM) and Internal Revenue Codes (IRC) Sections.

    • IRM 3.12.21, Credit & Account Transfers

    • IRM 3.17.79, Accounting Refund Transactions

    • IRM 3.2.3, IDRS Terminal Responses

    • IRM 21.2.4, Master File Accounts Maintenance

    • IRM 21.4.5, Erroneous Refunds

    • IRM 21.5.1, General Adjustments

    • IRC Section 6501, Limitations on Assessment/Collection

    • IRC Section 6502, Collection After Assessment

    • IRC Section 6503, Suspension for Assessment and Collection

    • IRC Section 6511, Limitations On Credit/Refund

25.6.13.3.1  (10-01-2001)
IMF/BMF Accounts Maintenance/Statute Expiration Reports

  1. The IMF/BMF Accounts Maintenance/Statute Expiration Transmittal and Analysis Data Reports are produced to inform management on the number of accounts on the master files meeting pre-determined extraction criteria. The counts "Statute Selected Count" , " Follow-up Statute Selected Count" , "Current Expired ASED Count" and "Follow-Up Expired ASED Count" columns indicate the number of cases that are statute related.

  2. A separate IMF and BMF report is generated monthly. Contact Modernization Information Technology Services (MITS) Enterprise Service Desk and ask for File Number 712–07–15 (IMF) and/or 712–06–11 (BMF) if the reports are not received.

  3. If the transcripts are not received, contact MITS enterprise service desk and have them research file numbers 460–29–11(IMF) and/or 701–04–11(BMF).

25.6.13.3.2  (10-01-2001)
Case Control Activity (CCA)

  1. The Case Control Activity (CCA) is designed for personnel to assign, close, and update cases on IDRS. All statute transcript cases are identified on IDRS with Category Codes STEX, ST-nn (number of transcript), X—nn, BARD, RSED, and ERAB. Cases can be systemically or manually controlled.

25.6.13.3.3  (10-01-2001)
Overage Listing

  1. The overage listing is a computer generated list of cases assigned to individual employees which have met an established age. All statute transcripts become overage at 99 days.

25.6.13.4  (10-01-2001)
Statute Transcript Procedures

  1. The following subsections provide procedures for handling statute transcripts.

  2. Refer to Document 6209, Automatic Data Processing/IDRS Information, for Master File freeze codes.

25.6.13.4.1  (10-01-2001)
Diagnostic (DIAG) Transcripts

  1. DIAG Transcripts are similar to the AM/STAT transcripts and are issued to identify systemic programming or computer operations problems. In addition, they may disclose operational problems in other functional areas.

  2. The Statute function will work only DIAG transcripts for tax periods which are within 90 days of expiration or expired. Use general statute procedures to resolve these transcripts.

25.6.13.4.2  (11-01-2004)
Resolving STAT Transcripts

  1. You must analyze each statute transcript to determine:

    1. The ASED.

    2. The RSED.

    3. What action caused the module to be frozen.

    4. The action to take to clear the module of all freeze conditions.

  2. Due to the adverse impact on the Accounts Receivable, the Service must strive to minimize the volume of unresolved Large Dollar Debit And Credit Modules in the Statute inventory. All tax modules/issues involving a balance of (See LEM 25.6.13.4.2) and over must be expeditiously resolved.

  3. The Statute function "does not" work ST-24 (Math Error Protest) transcripts. These transcripts are generated to the Accounts Management/ Adjustment function. The procedures for resolving these types of cases is found in IRM 21.5.4, Math Error Unsubstantiated Protest Processing.

25.6.13.4.2.1  (10-01-2001)
AM–X (Statute Expired) Transcripts

  1. AM-X transcripts are generated on credit balance tax modules and the ASED has expired.

  2. Use general statute procedures to resolve these transcripts.

25.6.13.4.2.2  (04-01-2007)
ST-02 (Erroneous Credit Hold)

  1. An ST–02 transcript is generated when the module net balance is a credit exceeding $1.00, but is not composed entirely of refundable cash credits.

  2. Resolve the case by reversing the TC 606 on Doc Code 24 with TC 672 and TC 670 for the write-off date and amount. This action will generate a TC 607, which will release the freeze.

25.6.13.4.2.3  (04-05-2006)
ST-03 (Amended Return, No Original)

  1. If an amended return is posted to a master file module which does not contain an original return, then process as follows:

    If And Then
    The limitation period for assessment HAS NOT expired It is the original return but was coded in error Clear the return and reinput it as the original if the statute is not imminent.
    The limitation period for assessment HAS NOT expired The amended return is determined to be the original return and was timely filed causing the statute to be imminent (Received date is within 60 days of ASED) Create a TC 150 by manually assessing tax and, if applicable, penalty and interest. Input a TC 560 with blocking series 990-999 to correct the ASED.

  2. Input TC 290 for zero after the assessment posts. This will result in a refund or the issuance of a bill.

    If And Then
    The original return cannot be located   Contact the taxpayer for copies of the signed original with all schedules and attachments and copies of canceled checks if the return was a balance due.
    The copies of the signed original cannot be secured from the taxpayer The amended return was received with remittance and the statute is imminent Create a TC 150 by manually assessing the credit balance as tax. Assess applicable penalties and interest.
    All efforts to secure the original return are exhausted You cannot determine the amount of assessment Process as a dummy return with zero liability complete with name, address, SSN or EIN and tax period. Use the same document locator number (DLN) on the dummy return as on TC 977 to release the "E" freeze.

25.6.13.4.2.4  (04-01-2007)
ST-04 ( Duplicate Return)

  1. An ST-04 is caused by a duplicate return (TC 976/977) posting to a module which already contains an original return (TC 150). If the transcript generate with an unreversed TC 420/424, see IRM 21.5.3.4.7 paragraph (5), Processing Claims and Amended Returns With Examination Involvement for resolution of this type of case.

  2. Consider the case resolved if:

    • An adjustment previously posted and released the freeze, or

    • An adjustment is pending.

  3. To resolve an ST-04 Transcript, you should request a copy of the TC 976/977 return document from Files. You should also request a newly signed copy of the return document from the taxpayer if the correspondence time frame will allow a response (usually 45 days) to be received before the Assessment Statute Expiration Date passes.

  4. If unable to secure the amended return, and

    1. A payment was submitted, assess tax in the amount of the payment.

    2. No payment was submitted, but the account is in credit balance, and you are unable to determine where the credit belongs, apply the credit to the Excess Collection File (XSF). See IRM 25.6.3.5(3), Excess Collection File (XSF) And Unidentified Remittance (URF) information before transferring any credit or payment. Input TC 290 for zero amount to release the freeze.

    3. No payment was submitted and module is in zero balance, input TC 290 to release freeze.

    4. Earned Income Credit (EIC) is on the module, follow the procedures in IRM 21.5.2.4.23.9, Moving Refunds before taking actions in (a), (b), and (c) above.

    5. See Exhibit 25.6.13–1.

  5. If the TC 150 was created by an Substitute for Return (SFR) and the original return subsequently posts as a duplicate filing condition, then route the case to Examination before assessing additional tax.

  6. If research reveals that the TC 976/977 return was filed by a different taxpayer or intended for a different tax year, reprocess the return or re-input the return to the correct taxpayer's account or tax year. Bear in mind that you may have to manually assess the return and correct the ASED with TC 560 Blocking Series 990-999.

25.6.13.4.2.5  (04-01-2007)
ST-05 (Examination/Data Processing (DP)) Tax Hold Codes

  1. An ST–05 is caused by unreleased hold codes (1, 2, or 4) on Examination/DP actions (TC 29X/30X) and a tax module credit balance exists. On BMF account, it may be caused when Condition Code "N" (Joint Committee Case is sent to Examination) posts to a Form 1120 module.

  2. Release the -K freeze if the transcript indicates a refund was held in error.

  3. If a liability exists or will be established on another module, initiate credit transfer. If the RSED has passed, apply the credit to the XSF using Form 8758, input a TC 290 for zero, and send a disallowance letter (105C). See IRM 25.6.3.5(3), Excess Collection File (XSF) And Unidentified Remittance (URF) information before transferring any credit or payment.

  4. If the ST-05 was caused by SFR, route the case back to the SFR tax examiner for resolution.

  5. Request the document that caused the freeze on an as needed basis.

25.6.13.4.2.6  (04-01-2007)
ST-08 (Manual Refund)

  1. ST–08 transcripts are generated when one or more of the following conditions are present:

    • TC 150 posted with Condition Code " O" and no TC 840,

    • TC 150 with Condition Code "O" and the account is in zero balance, or

    • TC 150 and 840 posted but return is not coded with Condition Code "O" and module balance is equal or less than TC 840 amount with no TC 29X/30X posted to Master File.

  2. If freeze was created by TC 840 and the return was not "O" coded, and the net module is debit:

    • Check for unpostable tax decrease; if found, forward to the Accounts Management/Adjustment function

    • If no unpostable is present, release the freeze with TC 290 for zero and Priority Code 8.

  3. If both a TC 846 and 840 are posted to the same module, and one appears to be in error and it is a rebate error, refer to IRM 21.4.5.

  4. If both a TC 846 and 840 are posted to the same module, and it is a non-rebate error, refer to IRM 21.4.5 for resolution.

  5. If freeze was created by TC 150 code " O" and a TC 840 or TC 846 was not generated, prepare a manual refund unless the RSED has passed. You must compute interest and check for any outstanding debit balances prior to releasing the freeze.

  6. If a TC 150 is "O" coded and the module is in zero balance, input a TC 290 for zero with Priority Code 8 to release the freeze.

  7. If a TC 840 posts with blocking series 6XX which indicates that the Refund Inquiry unit is waiting notification to post a TC 841 credit, close your case to refund inquiry.

25.6.13.4.2.7  (04-01-2007)
ST-09 (Additional Liability Pending)

  1. A ST–09 transcript is generated when a payment posts (with TC 570) and the tax module is in credit balance. See Exhibit 25.6.13–2.

  2. Request the return or TC 570 document if needed. If necessary, initiate correspondence to the taxpayer for clarification of the payment.

    If Then
    The taxpayer submits the requested information Take necessary action to resolve the freeze.
    The taxpayer does not submit the requested information Transfer the credit(s) to the XSF and close the case. See IRM 25.6.3.5(3), Excess Collection File (XSF) And Unidentified Remittance (URF) information before transferring any credit or payment.

  3. If the TC 570 freeze was applied as a result of a credit transfer, request the document and review the reason for the transfer.

  4. If the freeze condition on the transcript was set because of a Scrambled Social Security Number (SSN) (Scrambled Indicator "1" is present), move the credit to the Excess Collection File. No additional research or taxpayer contact is necessary per IRM 21.2.4.4.43.1(8), Three (3) Coded Returns.

25.6.13.4.2.8  (04-01-2007)
ST-10 (Refund Cancellation, Deletion or Repayment)

  1. An ST–10 is caused by a returned refund, cancelled refund or deleted refund.

  2. Request the original posting document to determine the required adjustment.

  3. Contact the Output Review function to verify why a refund was deleted (TC 842). Upon contacting Output Review, if it is determined that they should work the case, close your transcript to them.

  4. Contact the Erroneous Refund unit if a TC 720 has posted. Upon contacting the Erroneous Refund unit, if it is determined that they should work the case, close your transcript to them.

  5. Contact the taxpayer if unable to determine why the refund was returned.

  6. If the taxpayer response indicates or you can determine through research, that the credit belongs on another account, transfer the credit to the correct account.

  7. If the refund was returned because the taxpayer is deceased and you have secured the proper document timely, you must issue a manual refund to the name stated on the document received.

  8. If you are unable to identify the correct recipient with the proper authority to receive the refund, transfer the credit to the XSF. See IRM 25.6.3.5(3), Excess Collection File (XSF) And Unidentified Remittance (URF) information before transferring any credit or payment.

25.6.13.4.2.9  (04-01-2007)
ST-11 (Advance Payment)

  1. An ST-11 is generated by a posted TC 640 and the account is in a credit balance. All advance payments will post as a TC 640. Advance payments will contain Blocking Series 900-999, Tax Class 0-8, and Doc Code 17. Advance payments are generally intended for anticipated or pending tax increase. The start date for interest on overpayment of tax is the date of the overpayment. For the purpose of overpayment interest, advance payments are generally deemed to be paid on the due date of the return, if the return was filed timely. Thus, no interest is paid on refunds or credits of overpaid tax caused by advance payments before the due date of the return, if the return is filed timely. For late filed returns, here is no interest paid before the date the return is filed. See IRC §§ 6513 and 6611(b) and (d). No interest will be allowed or paid to the taxpayer upon refund or offset to other tax liabilities before or after an assessment.

    Note:

    After an assessment is made and the funds are applied as a payment against the assessed liability, the normal rules regarding interest on overpayments would apply. See IRM 3.17.79, Accounting Refund Transactions.

    IF AND THEN
    The transcript indicates that a TC 300 posted with the 23C date earlier than the TC 640 date The payment resulted in a credit balance status and the account has an open AIMS and it is determined that additional liability is to be posted Contact Examination.
    The transcript indicates that a TC 300 posted with the 23C date earlier than the TC 640 date The payment resulted in a credit balance and an outstanding liability exists in another module for the same taxpayer Input credit transfer of the excess amount following instructions in IRM 3.12.21.
    The transcript indicates that a TC 300 posted with the 23C date earlier than the TC 640 date The TC 640 was used in error Reverse the TC 640 and post correct transaction code.

    IF THEN
    The transcript has a TC 150 without a subsequent TC 300 Examine the information in the tax module to determine whether posting errors or computer input timing problems have created incorrect freeze conditions. Prepare input documents necessary to correct any identified errors.
    The transcript has a TC 150 without a subsequent TC 300 If necessary, request the document which caused the payment to post to the master file. Examine the document for any leads to incorrect processing. Correct any errors.

  2. If it is determined that the TC 640 is valid, but a TC 300 never posted to the tax module, use CC AMDISA to determine if the Examination function has an open control. If so, you must determine the ASED provided on AMDISA. If the statute of limitation period for making an assessment will not expire within 30 days, route the transcript and a copy of the AMDISA print to the Examination Office via Form 3210, Document Transmittal. You must notify Examination that no action has been taken by the Statute function and you must expedite these cases as STATUTE IMMINENT with the number of days before expiration.

    IF THEN
    The statute period will expire in less than 30 days Coordinate the resolution with the Examination Office with open control on AMDISA (Make sure that EXAM has every opportunity to make the assessment before Statute assesses it).
    Unable to coordinate the outstanding issue with EXAM Make the proper assessment. Route a complete Exam referral Slip indicating the amount and date of assessment, along with a copy of the transcript as well as a print of AMDISA.

    IF THEN
    The case is not controlled by Examination or Appeals on AMDISA or there is no TC 420/424 and the account contains a valid TC 640 Make the proper assessment.
    Unable to determine if an assessment is in order Transfer credit to XSF. See IRM 25.6.3.5(3), Excess Collection File (XSF) And Unidentified Remittance (URF) information before transferring any credit or payment.

  3. If there is a TC 421 on the tax module or the return was refiled but Examination did not input the adjustment TC 300-0 to reverse and release the respective TC 640, request the Exam documents to determine resolution. Check TXMOD for a history item. Examination may be in the process of making a manual assessment. Always check for a possible Non Master File (NMF) assessment. If assessment is required but never executed, assess tax with TC 290 and applicable penalty and interest. If the Examination document states that Exam determined "no change" , release credit for refund.

    IF THEN
    There is no record of the return ever being assigned or charged to Examination/Appeals Follow the instructions provided below since we cannot make an assessment without back-up documentation.

    IF AND THEN
    The ASED has not passed You cannot resolve the freeze using instruction above Transfer the credit to XSF. See IRM 25.6.3.5(3), Excess Collection File (XSF) And Unidentified Remittance (URF) information before transferring any credit or payment.
    The ASED has passed The payment was/ appears to have been received on a defined tax liability before the ASED passed Transfer the credit to the XSF. Report credit as a barred credit assessment. See information above.
    The ASED has passed The payment was received after the ASED Transfer the credit to the XSF (Un-assessable Credit-Barred Advance Payment). See the information in the first block of this table.

  4. The receipt of an advance payment stops the running of interest on the anticipated or pending liability. Also, the Service will notify the taxpayer regarding the facts relating to an advance payment with a certified Letter 0316C, Payment in Advance of Exam Assessment. This letter gives the taxpayer the opportunity to request a refund of the advance payment if the conditions are not satisfactory. The second page of the 0316C Letter can be used for this request.

  5. If the tax module contains a "-Z" or " Z-" freeze, you must refer the transcript to CI for resolution.

    IF AND THEN
    There is no record on AIMS The advance payment(s) were received within the last 18 months Treat the transcript as classified waste
    There is no record on AIMS The advance payment(s) has a received date of more than 18 months and all research fails to reveal the reason for the payment Compute the ASED and follow the instruction in (7) below for making an assessment

  6. If the ASED is within 90 days, prepare Form 2859 Request for Quick or a Prompt Manual Assessment (PMA). Indicate in red across the top of Form 2859 "PMA" . Send a letter to the taxpayer asking for reason for the advance payment. Request copies of any correspondence, notices, etc., that the taxpayer may have received from the IRS relating to the advance payment. In addition, ask the taxpayer to forward his/her reply within 30 days from the date of our inquiry.

    1. Upon receipt of the reply, take the appropriate action based on the taxpayer’s reply. If the taxpayer is requesting a refund, and there is no record of an open Examination, CI, or any other control, you must notify Accounting to abate the assessment (PMA) if one has been made already and release the refund. If the payment is valid, you must notify Accounting to make the assessment as prepared on Form 2859.

    2. If the above instructions fail to resolve the issue, and the ASED has passred, apply the advance payment to XSF. See IRM 25.6.3.5(3), Excess Collection File (XSF) And Unidentified Remittance (URF) information before transferring any credit or payment. Because the identity of an advance payment is lost when transferred from one account to another, clearly annotate on the Form 8758, the DLN of the TC 640 and mark "ADVANCE PAYMENT" . Include a complete and current IDRS transcript of the module containing the advance payment.

    3. You must make every effort to ensure that these cases are resolved before the statute of limitation expires.

25.6.13.4.2.10  (10-01-2007)
ST-12 (Credit No Return)

  1. ST–12 transcripts generate for IMF/BMF tax modules where a TC 610 has posted with no TC 150 and the credit balance is over $1.00 unless one of the following conditions exist:

    • TC 976, or

    • Unreversed TC 570.

  2. Request the return using the TC 610 DLN without the 400 Julian date. Research all related TINs to determine if the return was processed under another TIN. If the return was processed under another TIN, transfer the credit (TC 610) to that TIN.

    Note:

    If the TC 610 is a payment voucher (Doc Code 70 or 76), you will not be able to use the DLN to request the return; contact the taxpayer and request a signed copy of the return.

  3. Research the Service Center Control File (SCCF) to determine the status of the return.

    If Then
    The SCCF indicates that the block of returns have not been processed Request the entire block of returns from Files.
    You are unable to obtain the returns Request a photocopy of the RPS Form 813 from Files.

  4. Close the case if research shows:

    1. A TC 150 posted in a later cycle,

    2. All credits have been transferred to another module,

    3. A TC 59X was input subsequent to the issuance of the transcript and the credit was not resolved, or

    4. The return correctly posted to another tax module.

  5. Initiate correspondence with the taxpayer if the instructions above did not produce a tax return.

    1. If taxpayer's reply indicates that the return will have to be reconstructed from records, hold the case open in suspense status. Confirm receipt of taxpayer’s letter and advise the taxpayer to provide it within 30 days.

    2. If a return is received, verify that no pending or posted return exists in the system before input.

    3. If the return is received more than 60 days before the ASED expires, send to normal processing. If it is less than 60 days, prepare Form 2859 to manually assess tax as stated in paragraph (8) below.

  6. If the taxpayer's account contains a TC 610 payment along with a TC 460 (extension of time to file) on it, you can change the TC 610 payment to a TC 670 payment using the same transaction date as shown on the original TC 610 payment. You must send a 112 C letter to the taxpayer requesting a return and suspend your case for 45 days. If the taxpayer sends in the return, you need to clear it for processing as stated in IRM 25.6.4.4, Original Delinquent Return Procedures and close your control base. If no response is received from your letter, close your control base as no reply. No further action is required on this account.

  7. If it is determined from research that the original ELF filed return was rejected, do not manually assess the account. Request a signed copy of the return from the taxpayer. If you are unable to secure a return, change the TC 610 payment to a TC 670 payment and close your case.

  8. If unable to secure a copy of the return after all possible action has been taken and a TC 610 is posted on the account regardless of the document code, take the following action(s):

    1. Check CC IRPOL and determine if there is any Federal Withholding Tax (FWT) available. Add all FWT from IRPOL documents and input that amount as a TC 800 on Form 2859.

    2. Prepare a Form 2859, Request for Quick or Prompt Assessment, to assess tax. Use a TC 150 for zero amount and TC 290 equal to all credits in the module for BMF; and for IMF, enter TC 150 for zero amount and TC 290 equal to all credits in the module including TC 800 from FWT shown on IRPOL.

    3. Complete Parts A and B and lines 3a, 3b, 4a, 20 and 21 on Form 2859. If the received date of the TC 610 is later than the Return Due Date (RDD), include TC 340, 270 and 160 for zero amounts. In the "Remarks" section, include the following statements:
       
      Credit module balance total $ (Enter on line 20)
      Do Not Bill The Taxpayer (write this in " RED" )
      "TC 610 posted Return Lost in Service Campus "
      "Agreed Assessment-Other"

    4. Attach the transcript and any other documents to Form 2859. Close the IDRS Control Base using Activity Code."2859 PREP" . Route the case to Accounting .

  9. If the taxpayer sends in a return after the TC 610 payment is assessed with a note stating that they did not file a previous return, input adjustment to reflect the taxpayer's return and update the ASED with TC 560 on REQ 77 with DLN Code 990-999, based on the received date of the return. If taxpayer sends in a return without a note stating that they previously filed and the ASED has not passed based on the TC 610 payment date assessment, input the adjustment to reflect the tax on the taxpayer's return. Do not adjust the ASED on this type of case. If the ASED has passed, do not input tax increase on the taxpayer's account. This is considered a missed assessment. Also, if you allow the ASED to pass without assessing the TC 610 payment and it should have been assessed, report as a barred case on Form 9355. You are required to transfer the payment to XSF. See IRM 25.6.3.5(3), Excess Collection File (XSF) And Unidentified Remittance (URF) information before transferring any credit or payment.

25.6.13.4.2.11  (10-01-2001)
ST-14 (Barred Refund)

  1. An ST-14 is caused by a return posting to Master File (MF) more than 3 years after the RDD or extended RDD.

  2. The transcript is a follow-up to the STEX transcript.

  3. See IRM 25.6.13.4.2.19 for resolution.

25.6.13.4.2.12  (04-05-2006)
ST-16 (Excess Estimated Tax (ES) Credits)

  1. An ST-16 is caused when a TC 150 posts and ES credits claimed are less than ES credits available in the module.

  2. See IRM 21.2.4.4.55, Excess ES Credit (16-J) and IRM 21.6.7, Adjusting Individual Tax Account for resolution.

25.6.13.4.2.13  (04-01-2007)
ST-20 (Subsequent Payment)

  1. An ST-20 (BMF only) is caused when a tax module contains a TC 150, an unreversed TC 670 which creates a credit balance, and there is an interest ("I" ) or FTP penalty (" G" ) computation restriction present in the module.

  2. Take the following actions to resolve the case:

    1. Request the return, payment and/or adjustment documents.

    2. Analyze the transcript to determine date of interest and/or FTP penalty computation.

    3. Analyze transcripts to determine module balance as of restriction date.

    4. Compute the interest and/or FTP penalty from the 23C date to the date of payment(s). If timely payments were received, no additional interest or penalty will be charged.

    IF THEN
    Payments are received timely No interest or penalty will be charged. Input a TC 290 for zero to release the freeze.
    Additional penalty and/or interest is due Input adjustment action to assess additional amount due.
    The available credit is less than total additional penalty/interest due Input total additional amount due.
    The available credit is less than the recomputed penalty/interest amount Input the penalty/interest assessment ONLY in the amount of the available credit.
    The available credit is more than total penalty/interest Input total penalty/interest.

  3. A BMF FTP penalty restriction is indicated by a TC 270, 271 without reason code 62, or a "G–" freeze on the module.

    IF THEN
    The penalty should not be assessed Input TC 271 with reason code 62 following instruction in IRM 20.1.1.5.1, Master File Reason Codes.
    Reasonable cause does not apply Assess FTP penalty if applicable.

    Note:

    Do not input TC 272 unless it can be determined from source documents that the TC 270 or 271 restriction was input erroneously. Improper use of TC 272 can result in incorrect FTP penalty computations.

    IF THEN
    No additional penalty/interest is due Input a TC 290 for zero to release the freeze.
    The credit was intended for another module or account Initiate credit transfer.