3.12.179  Individual Master File (IMF) Unpostable Resolution (Cont. 2)

3.12.179.17 
IMF Data Master One (DM–1) Valid/Invalid Segments

3.12.179.17.8  (01-01-2015)
IMF Name Changes (TC 013)

  1. When entering a name change (TC 013) to update/correct a joint return filer, it is important to ensure the joint names are in the proper format for the issuance of notices and overpayments.

    Note:

    When inputting TC 013 for a joint return filer, enter the spouse SSN on the INCHG screen.

  2. If joint filers require a notice, two notices are issued (one to the taxpayer and another to the secondary taxpayer).

  3. Although the Form 1040 consist of two lines for entering joint names, Master File is limited to ONLY one line for the "Primary Name Line" .

  4. Master File's Name Line field must never exceed 35 characters/spaces. It is imperative the name line information is contained in the FIRST NAME LINE ONLY. When space allows, all available information, including middle initial(s), should be entered.

    Note:

    DO NOT use the second line as a continuation of the name line. CC INCHG's second name line is used to enter taxpayer information and titles such as Guardian, Custodian, In Care Of, etc.

    Note:

    The absence of TWO BRACKETS around the PRIMARY taxpayer's last name when the SECONDARY taxpayer's name is different will create unnecessary Unpostable conditions.

  5. Examples of properly input name changes are shown below. Bold print indicates the primary name control.

    Tax Return Input format for joint filers
    John Doe
    Mary Doe
    John & Mary]Doe
    John Doe
    Mary Smith
    John]Doe]& Mary Smith
    John Doe
    Mary Smith-Doe
    John]Doe]& Mary Smith-Doe
    John D Doe
    Mary Ann Smith-Doe
    John D]Doe]& Mary Ann Smith-Doe
    John D Doe III
    MaryAnn L Smith
    John D]Doe]III & MaryAnn L Smith
  6. The above information CORRECTLY entered will display on CC ENMOD and generate two separate notices:

    1. John & Mary Doe (John Doe & Mary Doe)

    2. John Doe & Mary Smith

    3. John Doe & Mary Smith-Doe

    4. John D. Doe & Mary Ann Smith-Doe

    5. John D. Doe III & MaryAnn L Smith

    The ampersand (&) indicates to Master File that the information following is the Secondary taxpayer's name.
    The brackets (]]) indicate to Master File that the information contained within is the Primary taxpayer's surname on the account when a joint name line is entered.

    Note:

    Use the same name line formatting rules when entering name lines on CC UPRES, but use the less than sign (<) when primary surname are used for CC UPRES.

    No blank spaces should be typed between the brackets when entering name line information for a taxpayer filing SINGLE/Head of Household.
    However, a blank space is always required immediately following the ampersand when entering JOINT filer information.
  7. If the primary and secondary names exceed 35 characters/spaces, see IRM 3.13.5, Individual Master File (IMF) Account Numbers, or the Name Control Job Aid, Document 7071, for additional information.

3.12.179.17.9  (01-01-2015)
IMF Name Changes TC 040 and TC 041

  1. Generally TC 040 is used when a taxpayer has a name change due to marriage, but has not updated with SSA to display the new name control.

  2. TC 040 is used to change the name and/or TIN of the taxpayer's account that resides on the valid segment of IMF. If the name control input does not match the DM-1, TC 040 will move the account to the invalid side.

  3. TC 041 is used to change the name and/or TIN of the taxpayer's account that resides on the invalid segment of IMF. Often used to move new ITINs to the valid segment before the DM-1 quarterly merge.

  4. TC 040 and TC 041 do not go through DM-1 validation processes. These TCs should not be used unless IMF established the taxpayer incorrectly; or the taxpayer provides "proof" of their identity through copies of marriage certificates, divorce decrees, legal documents showing a name change, etc.

  5. Before entering a TC 040 or TC 041, thoroughly research the taxpayer's account using CC INOLES. If necessary, request a NUMIDENT for the taxpayer using MFTRA U to determine the most recent and all the SSA name controls reported by the taxpayer.

  6. Information needed to complete a TC 040 or TC 041 is listed below:

    1. New Name Control

    2. Primary Name Line (All Name Lines for TC 040)

    3. Year Name Line

    4. Filing Status Code

    5. New TIN, if necessary

    6. Description of change in the REMARKS field.

    Refer to IRM 3.12.179.17.7 for additional information on Name Changes.

  7. When inputting TC 041, for the YEAR-NM-LINE> field in CC INCHG, use a later year where nothing is posted.

  8. If the unpostable case is addressing the invalid side and a TC 041 is being input to the unpostable TIN, close with URC 6 and add name control and name line.

3.12.179.17.10  (01-01-2014)
IMF Automated Establishment of Taxpayers

  1. Individual Master File (IMF) completes a special process to establish the secondary taxpayer on Master File for all Married Filing Joint (FSC 2) accounts. With this automated process, IMF separates the secondary taxpayer from the primary taxpayer account and systemically establishes a separate account on Master File.

    Note:

    IMF will not establish secondary taxpayer's accounts when: the Secondary SSN (S-SSN) is invalid or not available; DECD is present in the Secondary Name Line; Primary SSN is the same as the S-SSN; or Spouse name in the FSC 2 or 7 name line is missing.

  2. The accounts systemically established by IMF will display transaction codes with a unique DLN of XX263-001-88888-X. The transaction code(s) may be a combination of TC 000, 01X, or 971 with Action Code (AC) 050 (to change the BOD code).

  3. Unpostables 151, 152, 153, or 156 created by this systemic process require input of TC 040 (valid side) or TC 041 (invalid side) to bypass the NAP and correct the secondary taxpayer's name.

  4. See IRM 3.13.5, Individual Master File (IMF) Account Numbers, for additional information.

3.12.179.18  (01-01-2015)
Decedent Returns

  1. Sensitive nature of these returns requires special procedures to ensure that the proper person receives the refund check.

  2. If the return is intended as a Form 1041 for an estate, URC 8 to have Rejects renumber the return. Include a copy of the first page of Form 1041 with the Entity section filled in.

  3. Decedent returns must have a Date of Death (DOD). If there is no Form 1310 or court certificate attached, correspond with 12C letter and suspend case ("UPCASSC" ).

    Note:

    Form 1310 is not required for the surviving spouse when the Filing Status is 2.

    1. If reply has requested information, input CCC F to indicate a deceased taxpayer, and close case accordingly. Cycle delay the case as appropriate. Make sure "DECD" is entered in taxpayer's entity. Attach 12C letter to return when the reply is received with a Form 1310 or court certificate attached. Examples of properly input decedent name changes are shown below. Bold print indicates the primary name control.

      Status Input Format for Deceased Filers
      Single Name JOHN<DOE<DECD
      Single Name with suffix JOHN<DOE<JR DECD
      Joint Name Line, Same Last Name, Primary Deceased JOHN DECD & MARY<DOE
      Joint Name Line, Different Last Name, Primary Deceased JOHN<DOE< DECD & MARY SMITH
      Joint Name Line, Same Last Name, Secondary Deceased JOHN & MARY DECD<DOE
      Joint Name Line, Different Last Name, Both Deceased JOHN<DOE<DECD & MARY SMITH DECD
      Joint Name Line, Same Last Name, Both Deceased JOHN DECD & MARY DECD<DOE
    2. If there is no reply or incomplete (i.e., not present or signed, date of death missing, or proper payee cannot be determined), for refund returns close with URC 8. Route to Rejects indicating that CCC "3" and CCC "U" should be input. Enter "No Reply from Letter" or "Incomplete Information Received Letter" in "Remarks" . Attach a copy of 12C letter to return.

    3. If there is no reply or incomplete (i.e., not present or signed, date of death missing, or proper payee cannot be determined), for Balance Due returns close with URC 6 adding CCC "U" (line 7 of CC UPRES screen in the CC field).

  4. The Office of Privacy, Governmental Liaison and Disclosure (PGLD), has developed Action Codes (AC) for use with Transaction Code (TC) 971 to mark the entity modules of accounts on which identity theft is a factor and/or suspected and documented. The TC 971 AC 524 are posted to IDRS on CC ENMOD. Do NOT update the date of death on a decedent account with TC 971 and AC 524 - Locking of a deceased taxpayer's account. The TC 971 AC 524 indicator is applied systemically to the account and prevents a return from posting in a year subsequent to the year of death. For example: Date of death 3/15/2012, a return for TY 2012 will post but a return for 2013 will not be allowed to post. The TC 971 AC 524 prevents an original TC 150 tax return from posting. When a tax return is rejected a CP 01H, Identity Theft Lock notice is mailed to the taxpayer. The Identity Protection Specialized Unit (IPSU) toll-free number 1-800-908-4490 is on this notice. Refer to IRM 21.6.6.3.22.3, CP 01H Decedent Account Responses.

3.12.179.18.1  (01-01-2015)
Joint Returns

  1. If the return has filing status 5 checked, and the spouse's date of death is more than two years prior to tax year of return and

    1. There is a dependent child, URC 8 to change the filing status to 4.

    2. There are no dependent children, URC 8 to change the filing status to 1.

  2. If the return has a filing status other than 2, has two names on name line and decedent's date of death is within tax period, (children not a factor), URC 8 to change the filing status to 2.

  3. If the return has filing status 5 checked, and there is only one name on the name line and spouse's date of death is within the tax period covered by the return, URC 8 to change to FSC 2, and include deceased in the name line.

3.12.179.18.2  (01-01-2015)
Other than Joint Returns

  1. "DECD" must be entered after the taxpayer's last name (after any existing suffix).

  2. Always enter a second name line, if available. On overpaid returns, a second name line is mandatory. The refund is issued to the person(s) whose name(s) is shown on the second name line. If the proper payee cannot be determined, correspond using a 12C letter to the "Estate of ..." .

  3. Include the suffix for any name indicating a court-appointed personal representative, such as: Administrator, Executor, Administrative Exec., Trustee, etc.

  4. The second name line should not include any suffixes such as "surviving spouse" , "mother" , "father " , "daughter" , "son " , etc.

  5. For more specific procedures, refer to IRM 3.11.3, Individual Income Tax Returns; and IRM 3.12.3, Individual Income Tax Returns.

3.12.179.19  (01-01-2014)
Individual Retirement Account (IRA) MFT 29

  1. The purpose of this subsection is to provide instructions for the correction of transactions that are unpostable to the Individual Retirement Account (IRA) - MFT 29.

    Note:

    Effective January 1, 2005, the Individual Retirement Account File (IRAF) Master File was merged into the Individual Master File (IMF). All unpostable conditions related to IRAs (Form 5329) will unpost as an IMF unpostable, but will remain as MFT 29.

3.12.179.19.1  (01-01-2014)
Source and Sequence of IRA Accounts

  1. IRA MFT 29 accounts will be established when Form 5329 is received with Form 1040.

  2. In addition, IRA transactions may be input to post to established MFT 29 accounts. These transactions include entity changes, adjustments, audit transactions, etc. IRA transactions will carry a Tax Class (3rd digit of the DLN) of zero.

  3. IRA Filing History Codes

    1. 0 = No IRA

    2. 1 = Primary spouse has IRA

    3. 2 = Secondary spouse has IRA

    4. 3 = Both have IRA

    5. 4 = IRA notice issued

    6. 5 = IRA notice issued to primary

    7. 6 = IRA notice issued to secondary

    8. 7 = IRA notice issued to both

3.12.179.19.2  (01-01-2014)
Processing Form 5329 to create a MFT 29 account

  1. Effective January 2006, the input of a TC 971 AC 144 on a MFT 30 module generates a corresponding MFT 29 module for Form 5329.

  2. See IRM 21.6.5, Individual Retirement Arrangements (IRA), Coverdell Education Savings Accounts (ESA), Archer Medical Savings Accounts (MSA) and Health Savings Accounts (HSA), within IRM 21.6.5.4.11.4, Processing Form 5329 With TC 971 AC 144, for further instructions.

    Note:

    It is no longer necessary to prepare a Dummy Form 1040 in order to process Form 5329.

3.12.179.20  (01-01-2015)
Electronic Federal Tax Payment System (EFTPS) and Credit Card and Electronic Funds Withdrawal Payments

  1. This subsection contains procedures for resolving EFTPS Credit Card and Electronic Funds Withdrawal (EFW) Payments.

  2. Identify the EFTPS payment(s) by researching IDRS CC IMFOLT.

    1. Credit card payments will contain "6" in the 4th position of the EFT-Trace Number field.

    2. Electronic Funds Withdrawal (EFW) payments will contain "0" in the 4th position of the EFT-Trace Number field.

      Note:

      Use CC TRBDV and/or MeFile and the associated payment record for the return to verify that the taxpayer requested the payment.

  3. If credit card payments, EFW payments, or ISRP/Lockbox payments attempting to post will result in an overpayment (refund), and they do not "match" the TC 150 information, research thoroughly before allowing the TC 150 to post.

    Example:

    Form 1040 shows taxpayer should receive a $700 refund, but taxpayer's TIN has an $1,000 credit card payment.

    1. If necessary, contact the EFTPS Accounting Technicians at 801-620-6930 or 801-620-6087, or coordinate faxing the necessary information to 801-620-6206.

    2. Provide the EFTPS Accounting Technician with the Electronic Funds Transfer (EFT) Trace number(s) of the payments in question and any additional background information (copy of CC TXMOD showing payment), as requested.

    3. Request the EFTPS Accounting Technician contact the credit card processor (identified by the 10th and 11th positions of the EFT Trace number) for resolution of possible duplicate or misapplied payment(s).

    4. Credit card processor numbers 31, 59 or 70 are worked by different technicians. Fax these separately.

    • EFT-TRACE-NUM>xxxxxxxxx31xxxxxx

    • EFT-TRACE-NUM>xxxxxxxxx59xxxxxx

    • EFT-TRACE-NUM>xxxxxxxxx70xxxxxx

  4. If faxing the information, the EFTPS Technician will confirm receipt of the cases.

  5. After two weeks from confirmation of receipt, if you have not received the information necessary to complete the case, re-fax as a second request.

  6. If the unreversed excess credit(s) in the current tax module has a prior year in the TRANS-DATE field:

    1. Research IDRS using CC TRDBV or MeF for the Form Payment Record of the prior year electronic tax return.

    2. Verify that the payments received belong to the taxpayer. If the prior year tax payment amount is equal to the amount of the current tax year overpayment, correct the module. Any legitimate overpayments should be refunded after verifying with the taxpayer.

  7. If research indicates the payment is intended for another module or account, input a credit transfer. If the taxpayer indicates the credit does not belong to him/her and you are unable to determine where it should post, if the payment is less than 1 year old, transfer to Unidentified Remittance by sending Form 2424, Account Adjustment Voucher, to Accounting. If the payment is one year old or more, use Form 8758, Excess Collections File Addition, to transfer to Excess Collections. Close these cases with URC 6 to add CCC 3.

  8. EFTPS and RS-PCC processes unidentified remittances. If EFTPS cannot locate the correct taxpayer, the payment will unpost with SSN 000-00-0002 as UPC 151 RC 1. Refer to UPC 151 RC 1 instructions for resolution.

3.12.179.21  (01-01-2014)
International (INTL) Returns (AUSPC only)

  1. The basic requirements and procedures in IRM 3.12.179 for processing unpostables also apply to the processing of INTL returns. Any specific procedures for correcting INTL unpostables can be found at the end of each Unpostable Code and Reason Code.

  2. If an unpostable Form 1065 or Form 1041 shows a foreign address for a partnership, estate or trust, route the case to OSC as an INTL return.

  3. GUF Category L1 is specifically used for INTL. However, INTL cases may unpost under other conditions and categories.

3.12.179.21.1  (01-01-2014)
International Returns (Filing Location Codes 20 and 21)

  1. International returns are assigned either Filing Location Code (FLC) 20 or 21 for AUSPC.

  2. FLC 20 returns include:

    1. Form 1040 with foreign addresses in the entity, and

    2. Form 1040 with a valid Form 2555-EZ regardless of entity information (Domestic Address)

    3. Form 1040NR/1040NR-EZ

    4. Dual Status (a taxpayer who is a U.S. resident for part of the year and a Non-resident Alien (NRA) for part of the year)

    Note:

    If invalid Form 2555 or Form 2555-EZ and the return has no other foreign aspect, rebatch to domestic program.

  3. File Location Code 21 returns include:

    1. Form 1040 with addresses in U.S. possessions

    2. Form 1040 with addresses in U.S. territories

    3. Form 1040PR

    4. Form 1040SS

    5. Form 1040 with Form 5074 or Form 4563 attached

    6. Form 1040 with Form 8689 Form 8689 attached
      If Virgin Islands address on Form 1040 - D.O. 21.
      If stateside address on Form 1040 - rebatch to domestic program FLC 28.

3.12.179.21.2  (01-01-2014)
International Returns Transshipping to AUSPC

  1. INTL IMF cases should be worked in AUSPC only.

  2. All International returns received at IRS offices other than AUSPC will be transshipped to AUSPC on Form 3210, Document Transmittal. Related payments are to be deposited at point of receipt. All transshipped returns received by AUSPC should have a received date stamp.

  3. The following is a list of International returns requiring transshipment to AUSPC for processing:

    1. Any Form 1040, Form 1040A or Form 1040EZ with an address outside the 50 United States and the District of Columbia (This does not include APO/FPO addresses.)

    2. Form 1042S, Form SSA-1042S, Form RRB-1042S, Foreign Person's U.S. Source Income Subject to Withholding

    3. Form 2555, Form 2555EZ, Foreign Earned Income

    4. Form 8288A, Statement of Withholding Under Section 1445

    5. Form 8288B, Application for Withholding Certificate

    6. Form 8804, Form 8805 or Form 8813 Statement of Withholding under Section 1446

    7. Form 8833, Treaty-Based Return Position Disclosure

    8. Form 8843, Statement for Exempt Individuals and Individuals With a Medical Condition

    9. Taxpayer indicates an exemption of income or exclusion from tax due to an international tax treaty. Do not forward "American Indian Treaty" returns

    10. "Treaty Trader" or Fulbright Grantee

    11. Section 911, 913, or 931 of the Internal Revenue Code (IRC) is notated

    12. Form 1040 from Guam

    13. Form W-2 from Guam

    14. Form 1040NR or Form 1040NREZ (If Form 1040NR or Form 1040NREZ is attached to Form 1040, leave the Form 1040 attached)

    15. Form 1040PR

    16. Form 1040SS or Form 1040SS (NMI)

    17. Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa

    18. Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands

    19. Dual Status (i.e., a taxpayer who is a U.S. resident for part of the year and a Non-resident Alien (NRA) for part of the year)

    20. Primary or both taxpayers are Nonresident Aliens

      Exception:

      Primary taxpayer is NRA with no SSN; however, secondary taxpayer has an SSN and W-2 income. In this case, edit the secondary taxpayer as the primary taxpayer and continue processing the return.

    21. Income paid in foreign currency, when it has not been converted to U.S. currency

    22. Any return with both Virgin Island Form W-2 and U.S. income regardless of the address

    23. Section 933 of the Internal Revenue Code (IRC) is notated

3.12.179.21.3  (01-01-2014)
Status of an International Filer

  1. Examine Form 1040, Form 1040NR, Form 1040NE-EZ, Form 2555, Form 2555EZ, Form W-2 or other documents to determine the taxpayer's status. A taxpayer's status may be U.S. Citizen, U.S. Resident Alien or Nonresident Alien.

    1. U.S. citizens living or traveling outside of the United States are required to file a Form 1040, U.S. Income Tax Return on which they must report their worldwide income.

    2. U.S. Resident Aliens are generally Non-U.S. citizen taxpayers who are treated as U.S. citizens for tax purposes and are required to file a Form 1040, U.S. Income Tax Return, because they meet either the Green Card or Substantial Presence tests for the tax year in question. Like U.S. citizens, U.S. Resident Aliens are also required to report their worldwide income on a Form 1040.

    3. Nonresident Aliens are generally Non-U.S. citizens who do not meet either the Green Card or the Substantial Presence tests for the tax year in question. Nonresident Aliens are taxed on their U.S. source income and on certain foreign source income that is effectively connected with a U.S. trade or business.

  2. For more information on determining the status of an international filer, refer to Pub. 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad and Pub. 519, U.S. Tax Guide for Aliens.

3.12.179.21.4  (01-01-2014)
Guam Address or Income From Guam

  1. Amended returns must be filed with the jurisdiction which processed the original return.

  2. Estimated Tax Payments should be made to the jurisdiction which will process the tax return.

3.12.179.21.5  (01-01-2014)
Virgin Islands Address or Income From Virgin Islands

  1. U.S. citizens who have income from the Virgin Islands but are not bona fide residents of the Virgin Islands file their income tax returns with both the U.S. and the Virgin Islands government.

3.12.179.21.6  (01-01-2014)
Dual Status Tax Returns

  1. A dual status tax return is filed by a taxpayer who is a resident alien and a nonresident alien within the same tax year. This usually occurs in the year the alien arrives in or departs from the United States. However, a resident alien who leaves the U.S. temporarily and does not abandon his or her lawful permanent residence (green card), retains resident alien status while abroad. The taxpayer is not considered dual status and must report worldwide income.

  2. The taxpayer is permitted to use Form 1040NR as a work sheet to compute tax for the period of non-residence or Form 1040 as a work sheet to compute tax for the period of residence. If necessary, enter data from work sheet to perfect the return.

3.12.179.21.7  (01-01-2014)
Form 1040PR and Form 1040SS

  1. Self-employed persons residing in Puerto Rico compute and report their Social Security Self Employment tax on Form 1040PR.

  2. Self-employed persons residing in the Virgin Islands, American Samoa, Northern Mariana Islands and Guam compute and report their Social Security Self-Employment Tax on Form 1040SS.

  3. A signature is required on all Form 1040PR and Form 1040SS.

3.12.179.21.8  (01-01-2015)
Form 1040NR and Form 1040 NR-EZ (AUSPC Only)

  1. Form 1040NR and Form 1040NR-EZ are filed by:

    1. Nonresident aliens who have U.S. sourced income;

    2. Nonresident aliens who are engaged or considered to be engaged in a trade or business in the U.S. whether or not they have income from U.S. sources;

      Note:

      If the taxpayer states that he or she was present in the U.S. 183 days or more, review the complete return and attachments for additional information explaining the taxpayer's claim continuing Nonresident Alien status. If attachments do not verify continuing non residency, correspond. If no reply, process Form 1040NR and Form 1040NR-EZ. DO NOT allow standard deduction or treaty benefits.

    3. Dual status taxpayers in the year of entry into or departure from the U.S.

      Note:

      If there is an indication that the taxpayer is a Dual Status filer, follow instructions for Dual Status Returns, IRM 3.12.179.21.6.


  2. All Form 1040NR and Form 1040NR-EZ are processed only in AUSPC under FLC 20.

  3. Income to be reported on Form 1040NR is classified as either effectively connected with a U.S. trade or business or not effectively connected with a U.S. trade or business.

  4. Income Effectively Connected with a U.S. Trade or Business is reported on Form 1040NR, Page 1, Lines 8-23.

    1. Returns with an entry on Line 8 ("wage income" for batching purposes) are assigned Doc Code 73. Doc Code 73 returns (wage income) are due the fifteenth day of the fourth month (0415XXXX) following the close of the tax period. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. Returns on which other types of "effectively-connected income" is reported Form 1040NR (page 1, Lines 9a - 23), but which do not include WAGE (line 8) income are assigned Doc Code 72.

  5. Income Not Effectively Connected With a U.S. Trade or Business is reported on Form 1040NR, Page 4.

    1. Returns with only non-wage, effectively connected income (Form 1040NR, Page 1, Lines 9a - 23) and/or Income Not Effectively Connected With a U.S. Trade or Business (page 4) are assigned Doc Code "72" .

    2. Doc Code 72 (Non-Wage, Effectively-Connected Income and/or Not Effectively Connected Income) returns are due the fifteenth day of the sixth month (0615XXXX) following the close of the tax period. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Caution:

      All returns processed after June 3 (including Form 1040NR Doc Code 72), or the Julian Date in the DLN is 155 or later, require a received date. URC 8 if it is necessary to change the received date to and earlier date.

  6. Income reported on Form 1040NR-EZ is classified as effectively connected income ONLY:

    1. All Form 1040NR-EZ are assigned Doc Code 73.

    2. Form 1040NR-EZ are due the fifteenth day of the fourth month (04/15/XXXX) following the close of the tax period. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    For reference to special processing instructions for certain Form 1040NR and Form 1040NR-EZ filers, see IRM 3.21.3, Individual Income Tax Returns; or IRM 3.22.3, International Error Resolution - Individual Income Tax Returns.

3.12.179.22  (01-01-2015)
Individual Master File (IMF) Unpostable Resolution

  1. The following provides the individual unpostable resolution procedures and guidelines for all IMF cases with Unpostable Codes (UPCs) in the 127 through 299 range.

    Note:

    Unused IMF UPCs are "reserved" .

  2. Unless an Unpostable condition is caused by an obvious error such as a transcription or coding error, research is required. The most common research tools available are Command Codes, IDRS Computer (ECC-MTB) Transcripts, the Closed Register, Unpostable Reports, Remittance Transaction Research (RTR) system, the ITIN system, and MeF.

  3. Before releasing an Unpostable condition, review the account to ensure the name control, TIN, and Year/Month are correct.

  4. Occasionally cases that are identified as "Auto-Closed (URC 2)" do not get closed by the system. This occurs when the record does not contain a significant IDRS employee number. These will have to be manually closed with URC 2 or D as appropriate.

3.12.179.23  (01-01-2015)
UPC 126 RICS Identity Theft Filter

  1. CONDITION RC 0 This condition occurs when a TC 150 is input to a module containing TC 971 AC 121. TC 971 AC 121 is generated by the RICS now known as Integrity and Verification Operations (IVO), DDB filter criteria.

    Note:

    On January 13, 2013 RICS realigned. AMTAP became Integrity and Verification Operation (IVO)

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

  3. CONDITION RC 1 TC 150 transferred from MFT 32 to MFT 30.

  4. RESOLUTION RC 1 GUF Auto Close URC 0 to post the return to MFT 30.

3.12.179.24  (01-01-2014)
UPC 127 Invalid Universal Location Code

  1. CONDITION RC 0 This condition occurs when a TC 150/430 (entity code 1 or 3) or 01X contains an address that has a zero or invalid ULC in the location code field.

  2. RESOLUTION RC 0: GUF Auto-Close URC 8 to Rejects.

3.12.179.25  (01-01-2014)
UPC 128 IDRS Notice Status Mismatch

  1. CONDITION RC 0 This condition occurs when a TC 920 is input to a module not containing at least one of the following statuses: 12, 20, 21, 22, 23, 24, 26, 54, 56, 58, or 60.

  2. RESOLUTION RC 0: GUF Auto-Close URC D.

3.12.179.26  (01-01-2014)
UPC 129 Political Check-Off

  1. CONDITION RC 0 This condition occurs when a TC 150 with DLN XX211XXX99XXXX contains CCC G without an original return posted. Current year records are resequenced up to 16 cycles prior to becoming Unpostable.

  2. RESOLUTION RC 0: GUF Auto-Close URC D.

3.12.179.27  (01-01-2015)
UPC 130 Unprocessable Transactions

  1. CONDITION RC 0 This unpostable occurs when an input transaction contains information that causes a halt in the posting run.

  2. RESOLUTION RC 0: URC 2 to the Originator.

  3. Exception: If the debit module is $1,000,000,000 or greater, URC 8 to Rejects, stating to follow instructions for handling IMF accounts over 1 billion dollars in IRM 3.12.14.6.2.1, Correction Procedures UPC 130 RC 0, and IRM 3.12.37.24.5.2 IMF Accounts Over 999 Million Dollars.

    Note:

    Debit module balances over $1,000,000,000 cannot be processed to Master File. These cases are processed to Non-Master File, consolidated in Cincinnati.

3.12.179.28  (01-01-2014)
UPC 131 Refund Scheme Reversal

  1. CONDITION RC 0 This condition occurs when a TC 915 is input to a tax module ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. RESOLUTION RC 0: GUF Auto-Close URC 2 to Scheme Development.

3.12.179.29  (01-01-2014)
UPC 132 Invalid IMF Merge

  1. CONDITION RC 0 This condition occurs when a TC 011, TC 040, or TC 041 is input with an SSN equal to the account SSN.

  2. RESOLUTION RC 0: GUF Auto-Close URC 2 to Originator.

3.12.179.30  (01-01-2014)
UPC 133 Examination Request Indicator and Military Deferment RC 0

  1. CONDITION RC 0 This condition occurs when a TC 424 (except with block and serial of 88888) is input to an account containing Entity Combat Zone indicator set to 1.

  2. RESOLUTION RC 0: GUF Auto-Close URC 2 to Exam.

3.12.179.30.1  (01-01-2014)
UPC 133 RC 1

  1. CONDITION RC 1 Unpost TC 500 with a cc 53, 55, or 57 for any of the following conditions:

    Note:

    References to TC 500 cc 53 relate to TC 500 cc 52. References to TC 500 cc 55 relate to TC 500 cc 54. References to TC 500 cc 57 relate to TC 500 cc 56.

    1. TC 500 cc 53, 55, or 57 input to a module that does not contain a prior posted TC 500 cc 52, 54, or 56 respectively with a matching CSED indicator.

    2. TC 500 with cc 53 or 55 containing a transaction date prior to a Combat Entry Date or transaction date of TC 500 cc 52 or 54.

  2. RESOLUTION RC 1 GUF Auto-Close URC 2 to Originator.

3.12.179.31  (01-01-2014)
UPC 134 Debtor Master File (DMF)

  1. CONDITION RC 2 This condition occurs when a TC 131 type 01 has a negative state repayment amount that would cause the net state repayment amount of all type 01 TC 131's with matching agency, subagency, and year or original offset to be less than zero.

  2. RESOLUTION RC 2 GUF Auto-Close URC 2 to Originator.

  3. CONDITION RC 3 This condition occurs when any TC 011, 013 (with reverse validity), 040, or 041 attempts to post to an account containing an unreversed TC 898 with a transaction date that is within six years of the current 23C date. Master File will bypass this unpostable if the Scrambled SSN Indicator is set to 10 or 12.

    Note:

    TC 898 is considered reversed if the net of TC 898, 899, 76X all with matching OTN net to 0. Include memo money in the netting. These transactions will resequence one week prior to unposting.

  4. RESOLUTION RC 3 GUF Auto-Close URC 2 to Originator.

  5. CONDITION RC 4 This condition occurs when a TC 290 containing reference number 897 attempts to post to a module containing a DMF offset (TC 896) with a transaction date greater than six years from the current date.

  6. CONDITION RC 5 This condition occurs when a TC 290 containing a TC 766 and OTN attempts to post to a module containing a TC 898 with a transaction date greater than six years from the current date.

  7. RESOLUTION RC 4 and RC 5: GUF Auto-Close URC 2 to Originator.

3.12.179.32  (01-01-2014)
UPC 135 Disaster Claims

  1. CONDITION RC 0 This condition occurs when a TC 29X blocked 290–299 for a debit or zero amount is input to a module that does not contain a TC 150.

  2. RESOLUTION RC 0: GUF Auto-Close URC 2 to Accounts Management.

3.12.179.33  (01-01-2014)
UPC 136 Decedent Returns

  1. This subsection contains conditions and resolutions for UPC 136.

3.12.179.33.1  (01-01-2015)
UPC 136 RC 0 Computer Condition Codes (CCCs)

  1. CONDITION RC 0 This condition occurs when a TC 150 contains CCC A, F, or 9, FSC 2, and the literal DECD is not present in the name line.

  2. RESOLUTION RC 0: Research using return, CC UPRES, INOLE and TRDBV to determine if CCC 9 or F is correct.

    1. If CCC 9 or F is correct, use the following instructions:

      Note:

      The second name line appears above the entity information on Form 4251. This should be present for a refund return, to indicate that the refund will be paid to the surviving spouse (CCC W) or to the legal representative (CCC L), as indicated on the return. CC UPRES shows which CCCs are present on the account.

      If ... And ... Then ...
      A.. No refund is due   URC 6 to add literal “DECD” to name line. If return contains CCC F, proceed to instruction 3.
      B.A refund is due, or return is non-compute CCC W or L is present and a second name line is present, URC 6 to add literal “DECD” to name line. If return contains CCC F, proceed to instruction 3.
      Second name line is missing and/or CCC W or L is missing Input TC 013 if necessary to add second name line, using Posting Delay Code. URC 6 to add CCC W or L as needed and to add literal “DECD” to name line. If return contains CCC F, proceed to instruction 3.
      C.Credits for a subsequent tax period are posted to the deceased taxpayer’s account The spouse’s account is established and no name change is needed, Transfer the credits to the spouse’s account.
      The spouse’s account is not established, Monitor the spouse’s account until it is automatically established (two cycles after the return posts). Then transfer the credits.
      The spouse’s account is established, but a name change is needed, Transfer the credits first under the current IMF name control. Then input TC 013 with Posting Delay Code 4.
  3. If the return should not contain a CCC A, 9 or F, URC 8 and request removal of CCC.

    UPC 136 - Related Computer Condition Codes
    CCC A Both taxpayers deceased
    CCC F Primary taxpayer deceased
    CCC 9 Secondary taxpayer deceased
    CCC L Deceased Second Name Line (Legal)
    CCC W Deceased Second Name Line (Spouse)

3.12.179.33.2  (01-01-2015)
UPC 136 RC 0 Establishing Spouse's Account

  1. RESOLUTION RC 0: Research to ensure the spouse's account is established.

    1. If spouse's account is not established, Master File will generate a TC 000 to establish spouse's account two cycles after the return posts. If credits for a subsequent tax period are posted to the deceased taxpayer's account, monitor the account until the spouse's account is established. Once established, transfer the credits to the spouse's account.

    2. If spouse's account is established, compare name line of established account with spouse's name on unpostable document.

    3. If names are different, input a TC 013 to update the established account. If transferring credits, use Posting Delay Code (PDC)N 4 when inputting the TC 013.

    4. If the names are the same, transfer any credits or payment as needed, cycling as appropriate. TC 430 or 660 payments for the tax period of the joint return will be automatically transferred by the computer.

      Note:

      Be sure TC 000 has posted before initiating credit transfer.

3.12.179.33.3  (01-14-2014)
UPC 136 RC 1 Temporary SSN with Unallowable Claims

  1. CONDITION RC 1 This unpostable occurs when a TC 150 attempts to post with a Primary SSN starting with 9 and claims for Earned Income Credit (EIC) and/or a Personal Exemption.

    Note:

    Master File will bypass this check if the SSN is in the ITIN range (middle two digits are 70-88, 90–99). Master File will bypass the exemption portion of the unpostable if the Exemption Positions Verified field contains a 0 in position 1 or if the return contains RPC O.

  2. RESOLUTION RC 1 GUF Auto-Close URC 8 to Rejects.

3.12.179.34  (01-01-2015)
UPC 137 Bureau of Fiscal Services (BFS) (Formerly Financial Management Services [FMS])

  1. This subsection contains conditions/resolutions for UPC 137.

    Caution:

    Do NOT delete TC 898 until contact has been made with the TOP/DMF Liaison. The TOP/DMF Liaison will coordinate the correction of the transaction with BFS.

    Caution:

    Do NOT delete TC 899 unless specifically instructed to do so per this IRM or contact has been made with the TOP/DMF Liaison.

    Note:

    When closing cases based on the determination made by the TOP/DMF Liaison, include remarks showing the case was closed per the TOP/DMF Liaison.

  2. The TOP/DMF Liaison can be reached at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.179.34.1  (01-01-2015)
UPC 137 RC 1

  1. CONDITION RC 1 This condition occurs when a TC 898 with Doc Code 45 has resequenced for ten cycles and the module does not contain a TC 840 with a matching DLN.

  2. RESOLUTION RC 1 Use the following IF and THEN chart for case resolution.

    If ... Then ...
    A. If TC 840 with matching DLN is found Close the case with URC 6.
    B. If TC 840 with matching DLN is not found Contact the TOP/DMF Liaison for resolution.

    Note:

    When closing cases based on the determination made by the TOP/DMF Liaison, include remarks showing the case was closed per the TOP/DMF Liaison.

3.12.179.34.2  (01-01-2015)
UPC 137 RC 2

  1. CONDITION RC 2 This condition occurs when:

    1. TC 898 with Doc Code 45 does not match the DLN of a prior posted TC 840 or

    2. The Doc Code of the TC 898 is 77 and the transaction date is not within 12 days of a prior posted EFT TC 846 or within six days of a paper refund.

  2. RESOLUTION RC 2 Research the module for the most recent pending or posted TC 840/846. When analyzing for this condition, only consider TC 846(s) that are dated the same date or later than the TC 898.

    Note:

    A TC 898 originating from a computer generated refund, TC 846, has the same DLN except for the document code which is changed to 77.

    Note:

    There may be up to two TC 898 for each TC 840 or TC 846.

    Note:

    When closing cases based on the determination made by the TOP/DMF Liaison, include remarks showing the case was closed per the TOP/DMF Liaison.

    If ... And ... Then ...
    A. If TC 898 contains Doc Code 45 TC 840 with the same DLN is located, URC 6 to correct the date of the TC 898 to match the date of the TC 840.
    B. TC 898 DLN contains Doc Code 77 TC 846 is located, URC 6 to correct the date of the TC 898 to match the date of the TC 846.
    C. TC 898 containing doc code 45 or 77 and you are unable to locate the matching refund   Contact TOP/DMF Liaison for resolution.

3.12.179.34.3  (01-01-2015)
UPC 137 RC 3

  1. CONDITION RC 3 This condition occurs for the following reasons:

    1. the money amount of the TC 898 is greater than the money amount of the matching TC 840/846. If the module contains multiple TC 898/899 transactions with the same date, these must be netted when performing this check.

    2. the split refund indicator on the TC 898 is not the same as the split refund indicator on the matching TC 846 with the same date.

  2. RESOLUTION RC 3 Use the following IF and THEN chart for case resolution.

    Note:

    When closing cases based on the determination made by the TOP/DMF Liaison, include remarks showing the case was closed per the TOP/DMF Liaison.

    If ... Then ...
    A. The money amount of the TC 898 is greater than the money amount of the matched TC 840/846 Contact TOP/DMF Liaison for resolution.
    B. Split refund indicator on the TC 898 is not the same as the split refund indicator on the matched TC 846 with the same date Close using URC 8 and request Rejects correct the split refund indicator on the TC 898 to match the split refund indicator on the TC 846.

3.12.179.34.4  (01-01-2015)
UPC 137 RC 4

  1. CONDITION RC 4 This condition occurs for the following reasons:

    1. TC 899 containing an OTN (Top Offset Trace Number) does not match the OTN of a prior posted TC 898 with the same date.

    2. The split refund indicator on the TC 899 does not match the split refund indicator of a prior posted TC 898 with the same date.

  2. RESOLUTION RC 4 Take the following steps to correct the unpostable.

    1. Note:

      When closing cases based on the determination made by the TOP/DMF Liaison, include remarks showing the case was closed per the TOP/DMF Liaison.

      Note:

      Always research cross reference TIN's for matching TC 898.

    If ... And ... Then ...
    A. TC 898 with matching OTN and date is found   Close using URC 0.
    B. TC 898 with matching OTN and date is found shows as DU (deleted unpostable) on CC TXMOD Contact TOP/DMF Liaison for resolution.
    C. TC 898 with matching OTN and date is not found Research using the IAT Unpostable History Tool finds a matching TC 898 that is unpostable at another campus.

    Note:

    The FLC of the refund will be different from the TC 899

    Contact the campus to see when the case will be closed. Monitor for posting. Once the TC 898 is posted close the TC 899 with URC 0.
    D. TC 898 with matching OTN and date is not found An unpostable TC 898 is not found at another campus Contact TOP/DMF Liaison for resolution.
    E. TC 898 with matching OTN and date is posted Split refund indicators do not match Close using URC 8 and request Rejects to correct the split refund indicator on the TC 899 to match the split refund indicator on the TC 898.
    F.TC 898 with matching OTN and date cannot be located   Contact TOP/DMF Liaison for resolution.

3.12.179.34.5  (01-01-2015)
UPC 137 RC 5

  1. CONDITION RC 5 This condition occurs for either of the following:

    1. TC 899 with Record Type 1-3 containing a memo amount that exceeds the net amount of a prior posted TC 898/899 with the same OTN minus the net of TC 76X with the same OTN.

    2. TC 899 Record Type 4 and the module does not contain a TC 899 Record Type 2 with matching OTN. If found, unpost unless the net memo amount of the TC 899 Record Type 2 minus prior posted TC 899 with Record Type 4 (all with matching OTNs) is equal or greater than the input TC 899 Record Type 4.

  2. RESOLUTION RC 5 Often this unpostable is caused by a timing issue. TC 899 Record Type 4 will not post unless a TC 899 Record-Type 2 is already posted on the account. TC 899 Record-Types 2 and 4 will often be transmitted on the same tape from BFS, or the Record Type 2 will be sent after the Record-Type 4.

    Caution:

    TC 899 transactions are financial transactions and should only be deleted for the reasons specified below or if instructed by the TOP/DMF Liaison.

    Note:

    Use the OFFST - AMT on CC TXMOD to calculate whether the TC 899 amount exceeds the netted amount.

    1. You must take into consideration all TOP transaction codes with the same OTN to determine the net TOP Offset amount. Disregard the signs (+ or -) of each transaction code when completing the steps below. See IRM 21.4.6.4.2.10,Netting TOP Offsets and Reversals for more information.

    2. Determine the TOP offset, TC 898, or TC 971 AC 598 and the OTN of the offset that is to be netted.

    3. Subtract from the TC 898 or TC 971 AC 598: all TC 899(s) or TC 971 AC 599(s), type 1, type 2, or type 3, with the same OTN.

    4. Subtract from the TC 898 all TC 766(s) with the same OTN.

    5. Add to the TC 898 or TC 971 AC 598: all TC 899(s) or TC 971 AC 599(s), type 4, with the same OTN

    6. Add to the TC 898 all TC 767(s) with the same OTN.

      Note:

      When this formula is used and the balance equals zero, then the case should be referred to the TOP/DMF Liaison.

    7. Written as a formula, the above steps appear as follows:

      Net TOP Offset Amount
      TC 898 or TC 971 AC 598 – TC 899 or TC 971 AC 599 types 1, 2, or 3 – TC 766s + TC 899 or TC 971 AC 599 type 4 + TC 767s = Net TOP Offset Amount
      NOTE: The OTN must be the same for all these transactions when computing the net TOP offset amount.
    8. Use the following IF and THEN chart for case resolution:

      Note:

      When following the case resolution below always check to ensure the transaction dates match on the TC 899 and TC 898

      Note:

      When closing cases based on the determination made by the TOP/DMF Liaison, include remarks showing the case was closed per the TOP/DMF Liaison.

    1. If ... And ... Then ...
      A. TC 899 Record-Type 1 is unpostable   Contact TOP/DMF Liaison for resolution.
      B. TC 899 Record-Type 2 is unpostable TC 766 with the same OTN and same money amount is present Contact TOP/DMF Liaison for resolution.
      C. TC 899 Record-Type 3 is unpostable   Contact TOP/DMF Liaison for resolution.
      D. TC 899 (any Record-Type) is unpostable TC 898 is unpostable (with the same OTN) Close the TC 898 according to the UPC code resolution. Close the TC 899 with URC 0 unless the transaction date is incorrect then close with URC 6 to correct. Cycle delay to allow the TC 898 to post first.
      E. TC 899 (any Record-Type) is unpostable There is no record of TC 898 Close using URC D. Include in the remarks that there is no record of TC 898.
      F. TC 899 (any Record-Type) is unpostable TC 899 with the same record type has already posted with the same OTN and exact money amount. This may be a duplicate transaction. Note: the 2nd TC may reflect a different transaction date Contact TOP/DMF Liaison for resolution.
      G. TC 899 (any Record-Type) is unpostable TC 899 has already posted with the same OTN Using the offset formula: If the total reversal amount is less than the TC 898 offset amount, URC 6 to correct the transaction date. If the total reversal amount is greater than the TC 898 offset amount, URC D.
      H. TC 899 Record-Type 4 is unpostable TC 899 Record-Type 2 is unposted Close the TC 899 Record-Type 2 according to the UPC code resolution. Using the offset formula: If the total reversal amount is less than the TC 898 offset amount, URC 6 to correct the transaction date. If the total reversal amount is greater than the TC 898 offset amount, URC D.
      I. TC 899 Record- Type 4 is unpostable TC 899 Record-Type 2 is found Using the offset formula: If the total reversal amount is less than the TC 898 offset amount, URC 6 to correct the transaction date. If the total reversal amount is greater than the TC 898 offset amount, URC D.
      J. TC 899 Record-Type 4 is unpostable TC 899 Record-Type 2 is not found Suspense for 2 cycles. If TC 899 Record-Type 2 is still not found then close the unpostable with URC D.

3.12.179.34.6  (01-01-2014)
UPC 137 RC 6

  1. CONDITION RC 6 This condition occurs when a TC 899 containing a Spouse's SSN does not match the Spouse's SSN of a prior posted TC 89X with the same date and OTN.

  2. RESOLUTION RC 6 Research for correct SSN and close using URC 6.

3.12.179.35  (01-01-2014)
UPC 138 Refund Repayment/Cancellation

  1. This subsection contains conditions/resolutions for UPC 138.

3.12.179.35.1  (01-01-2015)
UPC 138 RC 0

  1. CONDITION RC 0 This condition occurs for any of the following reasons:

    1. TC 720, 740, or 841 greater than the net amount of the posted TC 72X and TC 84X transactions.

    2. TC 841 blocking series 77777 or 77711-77713 if the module does not contain a prior posted EFT TC 846.

    3. TC 740/841 not equal to a prior posted unreversed TC 840 or TC 846, unless TC 898 is also on the module with the same date as the TC 840/846.

    4. TC 841 does not have a Split Refund Indicator that matches the indicator on a prior posted TC 846.

      Note:

      If contacted by Accounting to release a case immediately, then URC 1 the account to Accounting. In "Remarks" (line 8 of UPRES) state the case is being closed at the request of Accounting and provide any additional information as needed.

  2. RESOLUTION—RC 0 - Conduct thorough research to determine if the unpostable TC is addressing the correct module.

    1. If TC 840 or 846 is in another module with the same money amount, URC 6 to correct the tax period. The unpostable TC may still belong on another module if it is equal to the difference between (TC 840/846 - TC 720/841) on that module.

    2. If unpostable TC 740/TC 841 is on correct module but different money amounts, URC 1 to Refund Inquiry Function if Doc code 45, or URC 8 to Rejects if Doc Code 48. Update IDRS controls and attach all research to case. For additional information refer to IRM 21.4.3, Returned Refunds/Releases.

    3. If TC 740/841 is less than the net amount of the posted refund minus a TOP offset (TC 846 – TC 898), URC 1 to Refund Inquiry Function if Doc code 45, or URC 8 to Rejects if Doc Code 48. Update IDRS controls and attach all research to case. For additional information see IRM 3.12.179.10.4, see IRM 3.17.80, Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations, and IRM 21.4.6, Refund Offset.

      Note:

      Effective 1/1999 and subsequent, due to the BFS take over of DMF processing, TC 740/841 may be less than the money amount of the TC 846/840, providing the module contains a TC 898. In this situation, TC 740/841 must be greater than (TC 840/846 – TC 898 – TC 899 Record Type 1 or 3). In all cases, the OTN must match the OTN of the TC 898. If there are previous refunds on the module, be careful to associate the transactions correctly.


    4. If the transaction date and amount of the TC 841 matches the date and amount of a prior posted TC 846, BUT the split refund indicator of the TC 841 does not match the split refund of the TC 846, then URC 8 to Rejects to change the TC 841 indicator to equal to the TC 846 indicator.

    5. If a TC 720 is posted, the unpostable TC 841 will not find the TC 846. Wash out the transfer with URC 8 marking box "n, wash out credit side of transfer" . Notate underneath "TC 720 posted" on Form 8749.

  3. RESOLUTION - RC O - When there is a duplicate TC 841 posted on an account, then the following actions must be taken:

    If ... Then ...
    A. Doc Code 48 URC 8 to Rejects. In the remarks indicate that Rejects will complete Form 4028A . Print CC TXMOD and Form 3809 and route to Rejects.
    B. Doc Code 45 URC 1 to Accounting. In the remarks indicate "duplicate TC 841." Print CC TXMOD and Form 3245 and route to Accounting.

    Note:

    Those accounts that do not have duplicate TC 841's, money amount discrepancy, or split refund indicator issue and cannot be resolved by Unpostables, will continue to be suspended and assigned to the Accounting IDRS unit numbers listed below:

    1. Center: IDRS #:
      Austin 0611300002
      Cincinnati 0211600000
      Fresno 1011700911
      Kansas City 0911300000
      Ogden 0411700009


    Unpostables will take the following actions on these accounts:

    • Input CC STAUP to not exceed 4 cycles.

    • Establish an open control with the CC ACTON.

    • Use Activity Code – 25 (TNSFRCASE).

    • Input Category Code - ST15 (Erroneous Refund).

    • Provide a weekly listing to Accounting of suspended accounts. Highlight the suspended accounts on the listing.

    • If the account already has an established open control base, then notify the controlling area of the actions being taken.

    • When either a TC 840 or a TC 843 has posted on the account, then Unpostables will close the unpostable with URC 0 to post the TC 720 or TC 740.

    Note:

    These items will remain in the Unpostables inventory for no longer than 4 cycles. Listed below are the Accounting Points of Contact if you have any issues with this inventory.

    Center: POC: Telephone:
    Austin ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Cincinnati ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Fresno ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Fresno ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Kansas City ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Ogden ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.179.35.2  (01-01-2014)
Resolution RC 0 for TC 720

  1. When TC 720 on Doc Code 45 unposts and the amount of the TC 720 is greater than the net of TC 72X and TC 84X on the module (including when there are no TC 840/846 on the module), conduct thorough research to determine if the unpostable TC is addressing the correct module.

    1. If unable to locate where the refund repayment should post, transfer to Unidentified. If the received date is over one year old, send the unpostable TC 720 to Excess Collections. If Doc code 45, URC 1 to Accounting. If Doc code 48, URC 8 to Rejects with instructions to forward to Unidentified or Excess Collections as appropriate.

    2. Document all research done prior to sending the unpostable to Unidentified or Excess Collections.

    Note:

    Make sure all research steps to identify the correct module have been exhausted including checking other tax periods and XREF (cross-reference) TINs.

3.12.179.35.3  (01-01-2015)
Resolution RC 0 for TC 720 Refund Anticipation Loan (RAL) repayment

  1. TC 720 does not match the net amount of the posted TC 720X or TC 84X transactions on a module. The account will have the following indications that a refund that was used to obtain a refund anticipation loan (RAL) is being returned by the bank.

    1. TC 916 CI Refund Freeze was posted on module, may have already been reversed.

    2. TC 971 AC 017 posted – indicates a return posted to a cross-reference TIN.

    3. Cross-reference TIN is an IRSN.

    4. TC 846 has been reversed by a TC 841 and a TC 840 for same amount/tax period is posted on the cross-reference TIN.

    5. Form 3245, Posting voucher, is marked that the repayment is for a RAL.

  2. If the TC 720 is equal to or less than the TC 840 on the XREF TIN, URC 6, definer B to move the unpostable repayment to the cross-reference TIN.

  3. If a TC 720 with Doc Code 48 needs to be reversed to a TC 700, then URC 8 to Rejects with instructions to input the TC 700 with a Doc Code 58

  4. If a TC 720 with Doc Code 45, URC 1 to Accounting with instructions to renumber to Doc Code 17 as TC 670, with secondary TC 570. Send completed Form 3245 and Form 3244, along with a print of CC TXMODA, showing unpostable TC 720 and posted TC 846.

3.12.179.35.4  (01-01-2014)
UPC 138 RC 2

  1. CONDITION RC 2 This condition occurs when a TC 740 or 841 contains a check number input to a module containing a prior posted TC 740 or 841 with matching check number.

  2. RESOLUTION RC 2 GUF Auto-Close URC 1 to RACS.

3.12.179.35.5  (01-01-2015)
UPC 138 RC 3

  1. CONDITION RC 3 This condition occurs when:

    1. TC 740 or 841 does not contain a check number (if the transaction date does not match the transaction date of a prior posted TC 840 or 846); or,

    2. TC 740 or 841 contains a check number with a transaction date not within 12 days of a prior posted TC 840 or 846.

  2. RESOLUTION RC 3 Close with URC 6, changing the date to match the date of the posted TC 840 or 846. If the date already matches, follow instructions above for UPC 138 RC 0, IRM 3.12.179.35.1.

3.12.179.35.6  (03-24-2014)
UPC 138 RC 4

  1. CONDITION RC 4 This condition occurs when:

    1. TC 848 does not match the date of a prior posted TC 840 or 846.

    2. TC 848 exceeds the net of the TC 84X/74X with matching date.

    3. TC 848 does not match the date of a TC 849 posted to the module.

    4. TC 841 with doc code 48, blocking series 940–999 with an inflated Julian date that meets UPC 138 RC 0, 2 or 3 conditions.

  2. RESOLUTION RC 4 Effective Cycle 10, the TC 848's TIN, MFT and Tax period must be corrected to match the TC 849 that is cross referenced in the module. Wash out transfer using URC 6 and notify Originator of action taken.

    Note:

    Do not close UPC 138 RC 4 or any resulting repeat for TC 848 or TC 849 with URC 8. Programming is not established for Rejects/ERS and they are unable to remove from their inventory. Notify National Office if unable to post the transaction.
    This also applies to but is not limited to the following Unpostable conditions for transactions 848 and 849.

    • UPC 151

    • UPC 188

    • UPC 166

  3. If TC 841 with doc code 48, blocking series 940–999 with an inflated Julian Date, is a duplicate, URC 8 to Rejects. In the remarks field, indicate the case is a duplicate TC 841.

  4. If the amount of TC 841 with doc code 48, blocking series 940–999 with an inflated Julian Date is greater than the net amount of the posted TC 700, TC 720 and/or TC 84X transactions, URC 8 to Rejects. In the remarks field, indicate the TC 841 amount is invalid.

3.12.179.36  (01-01-2014)
UPC 139 Offer-in-Compromise

  1. CONDITION RC 0 This condition occurs when a TC 481, 482, or 483 is input and the module contains an unreversed TC 780.

  2. CONDITION RC 1 This condition occurs when a TC 780 is input and the module does not have a TC 480 posted.

  3. RESOLUTION RC 0 and RC 1: GUF Auto-Close URC 2 to Originator.

3.12.179.37  (01-01-2014)
UPC 140 GUF RPS/Payment Match

  1. This subsection contains conditions/resolutions for UPC 140.

3.12.179.37.1  (01-14-2014)
UPC 140 General Information

  1. The following table displays the Master File By-Pass Criteria for UPC 140:

    1. Transaction is a corrected UPC 140
    2. Balance due amount from section 6 of the input return matches ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the money amount from the net of all posted TC 61X. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ EXCEPTION: MASTER FILE WILL NOT BYPASS RC 5 FOR THIS CONDITION.
    3. Amended return freeze is set
    4. Balance due per taxpayer field is zero or credit. Master File will not bypass RC 6 for this condition.
    5. Module contains a TC 150.
    6. TC 150 addressed to MFT 32 or contains SPC T.
  2. General Information. Current Year Unpostable TC 610's are on a GUF recirculating file for a maximum of 29 cycles and are added to GUF databases.

    Note:

    Enter corrected TC 610 and TC 150 received dates accurately to prevent repeat Unpostables.

  3. Refer to IRM 3.12.179.12 for related information on Category Code Y1 and Y2 unpostables.

3.12.179.37.1.1  (01-01-2014)
UPC 140 GUF Comparisons

  1. When RPS TC 150's unpost, GUF matches the TC 610 on the recirculating files by comparing the TINs of the TC 150 and the TC 610.

  2. Matches occur if TINs are identical or matches are on seven characters. GUF then compares name control, MFT, tax period, and money amounts.

3.12.179.37.2  (01-01-2015)
Useful Command Codes for UPC 140

  1. The following Command Codes may be useful when researching this UPC:

    IMFOLQ displays payments held in the re-circulating file until cycle 29
    DDBKD, NAMEI and NAMES to locate parent/siblings
    ADD/ADC 24 or 34 transfers payments
    URINQ/XSINQ display payments in Unidentified or Excess Collections
  2. Use the Remittance Transaction Research (RTR) System to research payments. See IRM 3.12.179.3.3.1.

3.12.179.37.3  (01-01-2015)
UPC 140 RC 0-1

  1. CONDITION RC 0 This condition occurs when a RPS TC 150 is input to a module not containing an RPS TC 61X (or TC 61X with Doc Code 19, 70, or 76) unless an RPS TC 61X with matching DLN is input the same cycle.

  2. CONDITION RC 1 This condition occurs when a RPS TC 150 is input to a module not containing a TC 610 with matching DLN or with Doc Code 19, 70 or 76.

  3. RESOLUTION RC 0 and RC 1: Complete the following:

    1. Review the Form 4251 and return to ensure the SSN is correct.

    2. Research CC TXMOD to see if the payment is already posted. If so, close with URC 0.

    3. Check Unidentified Remittance File with CC URINQ for payments associated with newly assigned ITINs or rejected ITINs. Coordinate with Accounting to have URINQ payments properly posted before closing the case. Form 8765 may be needed. See Figure 3.12.179-16.

    4. Research RTR to verify the payment.

    5. Research CC IMFOL to determine if the taxpayer is in debit status for previous tax period(s) or the payment history shows that the taxpayer has not paid timely or is currently making installment payments.

    6. After thoroughly researching the unpostable account and the respective spouse's account (if filing jointly) and it is determined the return was batched incorrectly, URC 0.

      Note:

      All streamline returns will have FLC 20 on them. If a TC 150 with a DLN blocking series 850-859, then URC 0 with no further comments needed. For further detail regarding batching and numbering procedures refer to IRM 3.10.73, Batching and Numbering.


    7. If TC 610 is posted to an incorrect module, transfer credit to correct module. URC 0 and cycle delay to post after the credit transfer. See Figure 3.12.179-14.

    8. If research cannot find a TC 610, determine if TC 150 was previously unpostable to another SSN. If previously unpostable (a repeating case), research other SSN for the TC 610. Make corrections to both transactions (credit transfer, correct tax period, etc.). Correct with appropriate URC and cycle delay if necessary.

    9. Research CC INOLE and examine the return for other SSN(s). Ensure all other research methods available are completed. If TC 610 is found and the account addressed by the unpostable return is not established, input TC 000 to establish the account. Suspend unpostable with UPCASSA until the account is established. Input a TC 570 to the TC 610, if needed, to stop the refund before transferring the credits. Once the taxpayer is established, transfer the credit to the unpostable module. Correct with URC 0 and cycle delay as necessary.

      Example:

      Remittance was sent in by parents for a child's return that has not posted.


    10. Research CC IMFOLQ for the unpostable SSN and other SSNs found through research. If TC 610 is on the resequencing file with a DIFFERENT SSN/name control, input TC 000 to establish this account. Suspend using CC UPCAS for 14 days or until the account is established. Transfer credit to correct the account once it posts. Release the Unpostable with URC 0 and cycle delay as necessary.

      Note:

      Definer code "Q" for CC IMFOL allows Unpostable tax examiners to "query" payments (TC 610) on the resequencing file by TIN or payment amounts (possibly seen on CC TXMOD as R0240 TC 610.) This Command Code can be used in all cycles. Additional information on CC IMFOLQ is available in IRM 2.3.51, Command Code IMFOL. See Figure 3.12.179-15.

    11. If TC 610 is in RJ status, use CC ERINV to determine if the document is in ERS/Rejects inventory. If so, suspend case and coordinate with Rejects Unit, providing posting instructions (e.g. correct SSN, name control, and tax period). Close case to resolve unpostable after TC 610 has posted

    12. If the missing TC 610/370 is in DJ status, research other modules and cross-references for the payment. When located, do credit transfer. Release with URC 0 and cycle delay as necessary.

    13. If payment shows as R520 on CC TXMOD, hold unpostable case until payment posts or unposts, usually after Cycle 29.

    Figure 3.12.179-14

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Figure 3.12.179-15
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Figure 3.12.179-16
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.12.179.37.4  (01-01-2015)
Research for Missing Payments for UPC 140

  1. THOROUGHLY research to locate the missing payment to ensure it did not post to an earlier/later tax period or to a spouse's/dependent's account. Make the necessary corrections to post the return.

  2. Make every effort to locate TC 610 before closing the unpostable case. URC 0 will generate a notice to the taxpayer.

3.12.179.37.5  (01-01-2015)
Resolution for Multiple TC 610's /Payments

  1. If one TC 610 matches the TC 150 balance due amount, research to determine where the other TC 610 should have posted.

    1. If found, transfer the payment to the correct module and URC 0.

    2. If not found, determine if the additional payment should refund to the taxpayer. Contact taxpayer if necessary.

    3. If the additional TC 610 should refund, input a credit transfer to change it to a TC 670.

    4. If no reply is received and the additional TC 610 can be positively identified as belonging to the taxpayer, change it to a TC 670 and allow it to refund. Otherwise, transfer the payment to Unidentified using Form 2424, or to Excess Collections using Form 8758 if the TC date is more than 1 year old.

  2. If none of the posted TC 610's match the TC 150 balance due amount, research the taxpayer's account and history including S-SSN (if filing jointly).

    1. If partial payments are being made, leave earliest TC 610 as is, and change subsequent payments to TC 670s.

    2. If correct modules are identified, transfer the payment to correct modules. URC 0 to post after all transfers are completed.

    3. If unable to identify correct modules for posted payments, take action to transfer payment(s) to Unidentified. URC 0 and cycle delay to post after transfer is complete.

3.12.179.37.6  (01-01-2015)
UPC 140 RC 2

  1. CONDITION RC 2 This condition occurs when a non-RPS TC 150 is input to a module containing an unreversed RPS TC 610 or unreversed TC 610 with Doc Code 19, 70, or 76.

    Note:

    Master File will bypass E-file Returns (identified by their unique ULC) or if payment is Doc Code 19 with a 6 in the 4th position of the EFT Trace Number. The 6 identifies the payment as a credit card payment.

  2. RESOLUTION—RC 2— Thoroughly research the taxpayer's account. If there is evidence that the payment(s) was a partial payment or the taxpayer requested an installment agreement (Form 9465 was detached, taxpayer letter attached, history on CC ENMOD) or the taxpayer's account has other debit modules, URC 0 to allow the Unpostable to post.

    Note:

    Ensure thorough research is completed before using URC 0 for correction. A notice could be generated to the taxpayer as a result of the URC 0.

  3. Research for a different tax period and/or SSN/name control.

    1. Review the payment data using RTR.

    2. If the tax period on the return was transcribed incorrectly, URC 8 to Rejects.

    3. If TC 610 has posted to the wrong module, transfer to correct module. URC 0 and cycle delay to post after the transfer is complete.

    4. If unable to verify credit belongs to the taxpayer, request the posted TC 610 using CC ESTABDO.

    5. If credit does not belong to the taxpayer, transfer the payment to the correct taxpayer's account. Close the TC 150 with URC 0.

    6. If credit belongs to the taxpayer per the document, but posted to the wrong module, transfer to the correct module. Close the TC 150 with URC 0.

  4. If the credit belongs to the taxpayer, but you are unable to determine the correct placement of payment(s), contact by phone or correspond with the taxpayer using a 12C or 1687C letter. Suspend the case using CC UPCASSC.

    1. If the taxpayer verifies credits, follow taxpayer instructions and close the TC 150 with URC 0.

    2. If the taxpayer does not verify credits or the IRS does not receive a reply:

    • If payment was a personal check or fully identified money order, and there is no evidence of ID Theft, URC 0 to refund the payment to the taxpayer. If there is evidence of ID Theft, URC 6 and add CCC 3.

    • If payment cannot be identified as belonging to the taxpayer, transfer payment to Unidentified using Form 2424 for payment with transaction dates less than 1 year old. Transfer to Excess Collections using Form 8758 if date of payment is greater than 1 year old. Close with URC 6 and add CCC 3.


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