Review and attempt to locate all "Aged" reject cases.

When items are located, determine reason for the delay in processing. Notate on the Aged Listing where items are held. (for example, correspondence suspense file, in-process, Entity, etc.)

Items on listing which cannot be located must be researched and action notated.

Three ERS listings will be used to identify and resolve aged cases.

ERS 31-40, Unworkable Suspense Aged Report is available on Control D.

The ERS 31-41, Error Resolution Workable Suspense Report is received daily when records have been in the Workable Suspense Inventory for zero working days, and will appear on this listing in intervals of 5 days there after until the case is removed from the inventory or placed in unworkable status.

Review the error and reject inventories at least on a bi-monthly basis by reviewing the SCCF Aged Report (SCF 07-50 and SCF 07-51) using Control D. Reports are generated on the first processing day of each new cycle and are available on the first workday of the new week (usually Monday). Reports will be worked at the beginning of the month and in the middle of the month.

Aged error items are on the same list and will also be resolved by Rejects with the assistance from Error Resolution.

SCCF aging is based on variable criteria. The following reject and error items are considered aged:

Data Control Deletes are removed from ERS with Action Code 660. SCRS with Action Code 2-R

These are records that have been selected by Data Control in Accounting for deletion.

Compare the DLNs with Action Code 660 on the Rejected Records List with the list of deletes received from Data Control to ensure that the correct records were deleted.

If Data Control has deleted the records by accessing the ERS file, no verification is necessary.

The Document Locator Number is used in ERS to control every record on the file.

Items in the error inventory are controlled by block DLN, while suspense records are controlled by 14 digit DLN.

If a DLN attempts to establish on the ERS inventory for a DLN that is already on the file, the record is passed to the Suspense Inventory.

Identical 14 digit DLNs are not permitted in the same ERS inventory at the same time.

If a second record attempts to establish on either the Workable or Unworkable Suspense Inventory, one is purged from ERS and creates ERS 17-42.

All purged ERS records are listed on the Duplicate Document DLN Register.

The Action Code indicates the previous status of the record being purged. The codes are as follows:

No SCCF control records are produced for documents purged from ERS.

If not prepared by Data Control, use Form 4028 to correct the SCCF for deleted and/or renumbered documents.

Most duplicate DLN cases will have already been identified by the Data Control function in Accounting.

A 2 part charge-out is generated for each item on the duplicate listing

Detach and route the original copy of the charge-out to Files for insertion into the block.

The documents are already charged to ERS Suspense, route the original copy of the charge-out to files for insertion into the block next to the previous charge-out for Action Code 714.

Regardless of Action Code, the documents may have already been charged to Data Control.

Insert the original copy of the charge-out into the block where the document had been previously filed.

The second and third copies of the "Duplicate" charge-out may be destroyed when the case is resolved, or the second or third copy may be attached to the back of the return to provide an audit trail.

All duplicate DLN cases raise questions regarding the validity of any record still on the ERS file for the block DLN.

The guidelines for resolving Missing Document Records are basically the same for Reject records and ERS records.

Your instructions will specify ERS or Reject record where different actions must be taken.

Every attempt to locate missing aged items will be made until the Rejects Supervisor determines that continued research is unwarranted.

Unpostables will have already attempted to locate the missing document for records received from the Generalized Unpostables File (GUF). Do a special search (Green Flag) as soon as documentation comes into Rejects Inventory.

All research documentation will be attached to the file before being sent to Rejects.

The records should be reviewed to determine whether the case can be worked without the document before continuing the research or reconstruct as needed.

Before attempting reconstruction or write-off of a statute period document, be sure the document has current clearance by the Statute Control function.

After two weeks from the reject date of the register or the control day on the Form 8161, initiate a request for a Files search for the document.

The first search for a missing document should be inputting CC ESTAB or the appropriate CCs on the terminal. This action generates Form 4251 to Files, where the search is performed. The result of the search, or the requested document is returned to you with this form.

If Form 4251 is sent back indicating no document found, initiate request for a special search one month from the date of the first search request.

Submission Processing Campus management may reduce or eliminate the waiting period for requesting the special search.

Send Form 4251 back to files with instructions to perform a special search.

Be sure to keep a history as each attempt is made to resolve the case.

Use Form 6752, copy 3 of Form 8161, or a locally developed form to maintain the history information.

If two negative responses are received from files, (document not in block etc.), ESTAB for entire block.

When the block is received, thoroughly search the block for a related charge-out before deciding the required document is missing.

For EPMF missing documents, see IRM 3.12.22 (Error Resolution Employee Plan Excise Tax Return).

If the document is missing, research the TIN using IDRS, including all the appropriate CCs available for name and address or for the possibility that the return may have been assigned to another area of the campus or has posted with a different DLN.

For Document Codes 17, 18, 20, 24, 45, 48, or 58, 70 or 76 credits or debits, research IDRS to determine the proper application.

Nullified Unpostables will be subject to a special search as soon as the documentation comes into Rejects Inventory.

All BMF refund returns, including Black Liquor returns, falling out to ERS/Rejects for manual refunds ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , will go in the Funny Box for Exam to review. The $10 Million and Over BMF Manual Refund Checksheet will be stapled to the front of the return with the following information from the return:

Prepare a separate F3210 for each refund with the above information and place entire package into the Exam Funny Box in ERS/Rejects for review and SSPND 336. After the areas have reviewed the return and cleared it, ERS/Rejects can prepare the manual refund. If the return comes back and is stamped "SELECT" , issue the manual refund unless otherwise indicated and continue processing the return. Route the return to Exam and re-charge the document to Exam.

All Form 1042 returns (MFT 12) having EINs which begin 98-023XXXX through and including 98-034XXXX claiming refunds ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ will be processed as follows:

All other 1042 returns (MFT 12) with refunds ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ will follow the same procedures as above.

1120-F returns requesting a refund or credit elect≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ are being reviewed by LB&I prior to processing. C&E will place returns meeting this criteria, in their "Funny Box." Returns that LB&I select will be edited in purple, with CCC O to stop any refunds from being issued manually or systemically. All returns, selected or not, will be edited "LB&I reviewed" in the top left margin of the return.

Prior Year Only 1120-F returns requesting a refund or credit elect ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ will be reviewed by LB&I prior to the preparation of any manual refund. Ensure that the top left hand margin has LB&I's notation on all returns meeting this criteria.

Any 1120-F return ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ that falls out to ERS and does not have an indication of being reviewed, will be SSPND 440 to Rejects.

MeF 1120-F returns do not go through C&E, so anytime a MeF return ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ falls out to ERS, it will be printed (only the return and withholding documents e.g., 1099, 1042-S) and suspended with AC 440, for review by LB&I. LB&I will return the 8161 charge-out to ERS/Rejects indicating either:

Returns edited in purple by LB&I with a CCC O, will not be suspended to ERS/Rejects for a manual refund. There will be an indication of LB&I's review.

Only 1120-F returns with indications of review by LB&I will be allowed to have manual refunds issued. Follow normal manual refund procedures.

Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, refunds for $10 million or more will be processed as manual refunds via Form 3753. Refunds under $10 million will not be issued as Manual Refunds unless the 45-day interest jeopardy period will not be met.

Tax and non-tax obligation offsets do not apply if the refund is being issued to a trustee. If Line 24 has an entry, or if the entities on Line 1 and Line 7 are different, do not offset. Use a BPI of 3 to prevent offsets.

Use a BPI of 0 (allowing offsets) only if a Form 8038-CP, MFT 46, Doc Code of 88 and the following apply:

After preparing a manual refund, establish a new control on IDRS. Use the ERS/Reject's team number followed by the five digits designated for manual refunds.

Use the Weekly CCA 42/43 Overage Report, which will show all manual refunds assigned to the unique IDRS number. This portion of the report will be used as a Manual Refund Inventory Listing.

Ensure accounts are monitored weekly and the listings are properly documented and maintained in the area.

If a generated refund TC 846, appears after preparation of the manual refund and it appears to be a duplicate or erroneous refund:

When the TC 840 posts, take the following actions:

Managerial review of the monitoring and documentation is required:

IAT must be used for credit transfers. If IAT is not available, then IDRS will be used.

If the module where the payment is posted is present on IDRS use CC ADD24 / ADD34 / ADD48 to request DRT24 / FRM34 / DRT48 format screen.

If the module is not present, it can be created using CC MFREQ or ACTON. CC TXMOD or ACTON must precede CC ADD24 / ADD34 / ADD48 and will generate the tax module into the top half of the DRT24 / FRM34 / DRT48 screen.

Use CC ADC24 / ADC34 / ADC48 in place of CC ADD24 / ADD34 / ADD48 when the debit module is not present, but where you are moving the money to is present.

Any document that cannot be corrected or processed without being re-transcribed can be purged from Reject/Suspense Inventory.

This type of document generally falls into three categories.

All deleted documents, except ERS data control deletes, will generate an adjustment to the SCCF.

In most cases, no further manual adjustment is necessary.

See the exceptions which require preparation of Form 4028 or 4028A.

Be sure to preserve an audit trail of deleted documents.

ERS documents are deleted with CC RJECT or NWDLN.

A record is generated for the SCCF whenever CC RJECT or NWDLN is used, except for Action Code 660.

Use CC NWDLN, to remove the old DLN from SCCF and establish the new DLN for the same money amount.

If a DLN cannot be assigned to a remittance document, enter one of the following literal with CC NWDLN:

Use CC RJECT for non-remittance documents to remove the DLN from the SCCF with Action Code:

Use CC RJECT with Action Code 630 (with or without remittance) to place the record in re-entry status on the SCCF.

Subsidiary returns are defined as documents that have been detached from the parent return and have been numbered for processing in error.

Research CC INOLE to see if there is a filing requirement 1120-14 for that EIN.

If FR 1120-14 appears, the EIN number is for a subsidiary filing.

Research for the parent EIN.

If the parent return has posted, cancel the DLN of the subsidiary from the Reject inventory (also line through the DLN in red) and follow local procedures to attach it to the parent return.

If the parent return has not posted have the DLN cancelled off the Reject inventory to be filed under the cancelled DLN (do not line through the DLN in red.)

If the filing requirement code 14 is not present, process the return according to IRM 3.12.251 (Error Resolution Corporation Income Tax Returns) procedures.

Whenever a record format is changed for SPC or Master File processing, all open records for that type of document must be prevented from being sent to the Master File with the incorrect format.

Expedite processing before the end of the calendar year to reduce the number of manual refunds required. The expedite processing should start in November.

The following instructions apply only to records that are purged during end of the year processing.

Records that have been reformatted will be corrected using normal procedures for the new processing year.

Purged register items will print on a special Reject Disposition List.

ERS records are not removed from the system in the end of year purge.

The ERS end of year program provides the following:

The Purge Indicator will appear as follows:

As purged ERS records are resolved, enter CC RJECT or NWDLN using normal procedures.

Generally, purged items that will be processed with the same DLN should be perfected by following normal procedures for re-entry documents.

Be sure to mark each Form 3893 with "End of Year" .

All documents should be edited with red pencil following current-year procedures.

Overlay with current-year forms or change line numbers in red so that all transcribed lines reflect current-year programs.

Edited section numbers must also reflect current-year procedures.

At campus option, documents may be routed to Code and Edit for current year editing.

Missing documents are processed according to IRM 3.12.38.5.3.1 except items that have already been removed from the rejects file. ERS records are still on the file.

Items in correspondence should be held until a reply is received, then re-entered.

If no reply is received after appropriate time, annotate "No Reply" and re-enter.

The SCCF is automatically updated by the correction made on the reject register or ERS records in most cases.

Prepare Form 4028 whenever the SCCF has not been properly updated by the action on the reject register or ERS record.

Prepare Form 4028-A whenever the SCCF has not been properly updated for a document that is being renumbered.

Check SCCF and ERS 05-40, Error Resolution Rejected Records List or SCF 11-46, CRL Renumbered Transactions to determine the correct SCCF adjustment to be made.

When Form 1040/1040A/1040EZ is filed for a deceased taxpayer and information on the return indicates that Form 1041 should be filed,

If form 1040, 1040A, or 1040EZ is to be converted to Form 1041, verify that:

To convert the Form 1040 and applicable Schedules to Form 1041 See IRM 3.11.14.39 for complete instructions.

Form 1040-NR with Estate, Fiduciary or Trust in the name line or with an EIN will be transhipped to CSPC for ANMF processing.

Rejects will be instructed to convert various BMF documents to other tax classes, doc codes and MFTs.

Refer to IRM 3.10.72 for routing Form 5330.

As of January 1, 2008, all payments are assigned a Trace Identification (ID) Number for tracking purposes. Every Deposit is assigned a Trace ID, which is also assigned to each payment within that deposit. This data is entered into the Custodial Detail Data Base (CDDB). The CDDB is used for balancing receipts by IRS and FMS. It is used for payment tracers.

Each Deposit Ticket is assigned a Trace ID Number is the following format:

The last six digits are the Transaction Sequence Number for each payment.

If the original document is not available, use the Remittance Transaction Research (RTR) system to locate the correct Trace ID for each payment being renumbered for re-entry.

Every remittance must have a Trace ID, which must be transcribed. When creating a new document (or recreating a document) containing credit money, the Trace ID must be annotated at the bottom of the new form.

Different Trace IDs can now be put on the same 813. Input the 20 digit Trace ID next to each amount and leave the Trace ID box at the bottom of the form blank.

Documents require renumbering whenever the tax class, document code, or blocking series must be changed.

Documents must be renumbered whenever they have been processed to the wrong Master File or require processing to the Non Master File.

The original document can be renumbered and processed in most cases. However a new document may be required, or money transferred to a new document and/or the document reinput as a non-remittance.

Modernized e-file (MeF) returns will need a dummy return for processing. Generate a print of the return from the Employee User Portal (EUP) or TRDBV and ensure all attached forms and schedules are printed from the screen. As the return is now a paper document, it will not be numbered as electronic. The new DLN will be for a paper return.

Sort documents by refund and non-refund status.

Make sure all corrections and editorial marks are red (non-SCRIPS) or green (SCRIPS).

Be sure the correct transaction date (received date) is properly edited.

Renumber non-revenue receipt documents to current year revenue receipt document codes using Form 4028.

If necessary, a current year non-revenue receipt document may be renumbered to a prior fiscal year date revenue receipt document code.

In addition, never renumber a current fiscal year revenue receipt document to a non-revenue receipt document code.

Entity Unpostables will route Unpostable Code (UPC) 310, Reason Code (RC) 3 to the Rejects area.

Edit international returns with the Foreign Country Codes. See Document 7475.

Line through the DLN and assign a new DLN by using CC NWDLN.

The SCCF must be changed to remove the old DLN and establish the NEW DLN anytime a document is renumbered.

Documents can be renumbered without a manually prepared SCCF adjustment.

A manual SCCF adjustment is required if the renumber action is not a straight one-for-one transaction. Some examples which require an adjustment are:

The Rejects (or ERS) function will assign all new DLNs for the following documents:

When renumbering revenue receipt documents, be sure that the received date and Trace ID are present on the document.

If the received date is not stamped on the face of the document, if it is illegible, or if it is invalid, follow the instructions below, in the order listed, to determine the received date:

Any non-remittance document that was prepared in the campus should be voided and returned to the originator. The originator will determine if a new DLN should be assigned.

Enter the new DLN on the record as follows:

Positions 1 and 2 — File Location Code. Use the assigned Submission Processing Campus codes unless all available block numbers have been utilized.

The File Location Codes restricted to Electronic filing above should not be used when assigning DLNs in ERS/Rejects. See Document 6209, Section 4.03.

Position 3 - Tax Class – Identifies the type of tax (also see the following):

Positions 4 and 5 - Document Code -The document codes frequently used are as follows:

Positions 6, 7, and 8 - Julian Date. Renumber DLNs will contain the Julian date from the first Sunday in January, the last Sunday in September, or the first Sunday in October, depending on the current date and the fiscal year of the DLN.

Positions 9, 10, and 11 - Blocking Series - the blocking series is assigned sequentially beginning with 000 for each document code and continuing with the Julian date, except for the following:

If all available blocks have been used, number with a different File Location Code and start again with the lowest block number.

Positions 12 and 13 - Serial Number:

Position 14 - Year Digit - Enter the year for all prior year DLNs or if the designated DLN color is not available.

A split remittance is one payment received with for more than one return and/or document and/or for more than one tax period.

If part of the payment must be processed to a different module or with a new document (multiple period return):

Assign a DLN to the new return(s) or Form 3244.

2-R the register or use Action Code "630" on the ERS record and attach Form 3893 to reinput the original return, showing the new "green rocker" money amount in the credit box.

If the entire remittance amount must be removed from the original return, prepare a Form 3244 or a new document(s) to post the money to the correct account.

Assign a DLN to the newly prepared return or Form 3244.

Multiple returns filed for the same tax period by the same taxpayer may be consolidated by combining all the liability on one return.

Notate on all returns the DLN of the consolidated returns.

Prepare Form 4338, Information or Certified Transcript Request, to request a ANMF transcript and route to Accounting Activity (AA) or Compliance (Criminal Investigation (CI)) dependent on local or national agreement. Be sure to indicate the Area office, not the SPC code.

Note reject register or ERS charge-out to indicate Form 4338 prepared and date. File register and document in suspense file.

Receive Form 4338 back from AA or CI and pull suspense. Form 4338 with a ANMF transcript attached indicates ANMF account accessible. Destroy the Form 4338. Attach the ANMF transcript to reject case and transfer to ANMF.

Form 4338 with a "No Record" ANMF transcript indicates ANMF account non-assessable and must be noted on the form by AA or CI. Process as follows:

Re-enter all documents in which the record cannot be corrected due to limitations in existing computer programs. These uncorrectable conditions include:

Enter Action Code 2-R on the register or CC RJECT 630.

Ensure that the received date is present for each document to be re-entered. If the received date is not stamped on the face of the document, if it is illegible or if it is invalid, follow the instructions below, in the listed priority, to determine the received date:

Special handling might be required if the received date of the return indicates that the statute is about to expire.

Research IDRS for the valid entity data before reconstructing the documents.

If the message on the MCC transcript is "NO TIN ON TIN CHG FILE. ENTITY NOT ON ACTIVE MF" , do not reconstruct the document.

Cancel the DLN. Prepare Form 6752.

If the document contains money, route to Unidentified.

Missing documents with valid entity data will be reconstructed using dummy documents.

Prepare the dummy document with all the valid entity data that is present, including the TIN, fiscal month ending, and filing requirements.

Correct the reject register, using Action Code 6, to show only the data entered on the dummy return.

Access the ERS record with CC GTREC.

Use CCs CRECT, GTSEC and/or DLSEC to enter information as shown on the dummy document.

No SCCF action is needed, but Form 6752, Return Non-Refile Flag, must be prepared.

If the return is a Form 990, 990EZ or 990-PF the campus Aperture Card Unit should have a record on file of the filmed return.