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

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

3.12.179.17.7  (01-01-2014)
Establishing an Account (TC 000)

  1. TC 000 is used to add a taxpayer's account to the applicable Master File.

  2. The following information is necessary to establish the taxpayer using the CC INCHG screen:

    1. Name Control

    2. Primary Taxpayer Name

    3. Entire address

    4. Year Digits

    5. Filing Status Code (FSC)

    6. Remarks

  3. The following is input when applicable or available with CC INCHG:

    1. Spouse's Name (if taxpayer is filing Married Filing Jointly)

    2. Continuation of Primary Name (if applicable).

      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 DECD, Guardian, Custodian. In Care of, etc., and as the street address line for international addresses.

    3. Spouse's SSN, if available (if taxpayer is filing Married Filing Jointly)

  4. Do not attempt to input a TC 000 for an ITIN or an IRSN, as this creates repeat or additional unpostables.

3.12.179.17.8  (01-01-2014)
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:

    If the name control on the document is not present as an SSA name control on INOLES, see 3.12.179.17.8. 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 DECD, 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.
    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  (01-01-2014)
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.

  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 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 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. f 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  (01-01-2014)
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 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 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.

    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" .

3.12.179.18.1  (01-01-2014)
Joint Returns

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

    1. There is a dependent child, filing status should be changed to "4" .

    2. There are no dependent children, filing status should be changed 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), change 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.

    1. If reply has requested information, close case accordingly.

    2. If there is no reply or incomplete information, close the case with URC "8" and request CCC "3" or "U" be input.

3.12.179.18.2  (01-01-2014)
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 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 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  (01-01-2014)
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 Command Code 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 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. 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, refax 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 there is a single, unreversed credit and the amount of withholding (TC 806) will generate a refund and the taxpayer indicates the credit does not belong to him/her,URC 8 with instructions to send to Unidentified.

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/ Form 1040NR-EZ

    4. 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)

    Note:

    If invalid Form 2555/Form 2555EZ 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, and

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

    2. Form 1042S, SSA-1042S, 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, 8805 or 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, and

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

    12. Form 1040 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 W2 and U.S. income regardless of the address, and

    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 1040NR–EZ, Form 2555, Form 2555–EZ, 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  (01-01-2014)
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, 3.12.179.22.5.

  2. All Form 1040NR and Form 1040NR-EZ are only processed 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 (04152014) 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 income, 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 (06152014) following the close of the tax period. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Caution:

      All returns processed after June 3 (including 1040NR Doc Code 72), or the Julian Date in the DLN is 155 or later, require a received 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-EZs are due the fifteenth day of the fourth month (04/15/2014 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, Individual Income Tax Returns.

3.12.179.22  (01-01-2014)
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. If an obvious error does not cause an Unpostable condition, 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 or Listing and other Unpostable Reports and Listings the 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 an URC 2 or D as appropriate.

3.12.179.23  (01-01-2014)
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.

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.179.24  (01-01-2014)
UPC 127 — Invalid ULC 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  (01-01-2014)
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 $100,000,000 or greater, URC 8 to Rejects, stating to follow instructions for handling IMF accounts over 100 million dollars in IRM 3.12.37, IMF General Instructions.

    Note:

    Debit module balances over $100,000,000 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  (01-01-2014)
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 or TRDBV to determine if CCC 9 or F is correct.

    1. If return should have CCC 9 or F and entity code is 1, 4, or 5 (long entity), ensure second name line is present and CCC W or L is present, when appropriate.

      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.

    2. If not present, URC 6 if one CCC needs to be added. If two or more CCCs need to be added, URC 8 to Rejects.

    3. If URC 8, request Rejects to add literal "DECD" to first name line, enter a second name line and add CCC W or L as appropriate.

    4. If correct CCCs are present, URC 6 and add literal "DECD" in name line.

    5. If entity code 2 or 3, add literal "DECD" , prepare a TC 013 to add a second name line if necessary, URC 6 and cycle as appropriate. This will prevent a refund check from generating in the deceased taxpayer's name. See 3.12.179.17.5 for additional information on Entity Codes (ECs).

  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  (01-01-2014)
UPC 136 RC 0 — Establishing Spouse's Account

  1. RESOLUTION—RC 0 — Research to insure 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.

    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. Use posting delay code (PDC) 4 to allow time for any credits from the deceased taxpayer's account to be transferred and post to the spouse's account before the TC 013 posts.

    4. If the names are the same, or after the TC 013 if the names are different, transfer any credits or payments for a subsequent year to spouse's account, cycling as appropriate. TC 430 or 660 will be automatically transferred by the computer.

      Note:

      The account will be established two cycles after the unpostable document posts.

      Note:

      Be sure TC 000 has posted before initiating credit transfer.

3.12.179.33.3  (01-01-2014)
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). 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  (01-01-2014)
UPC 137 — Financial Management Service (FMS)

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

    Note:

    Do NOT delete this UPC until contact has been made with the Adjustment function. Do not delete this condition until all correction attempts have been exhausted. The Adjustment function will coordinate the correction of the transaction with FMS.

3.12.179.34.1  (01-01-2014)
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 — Research to find the TC 840 and correct with URC 6.

3.12.179.34.2  (01-01-2014)
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.

    When analyzing for this condition, only consider TC 846s that are dated the same date or later than the TC 898.

  2. RESOLUTION–RC 2— Research the module for the most recent pending or posted TC 840/846.

  3. If TC 898 and the DLN contains Doc Code 45, locate the TC 840 with the same DLN. URC 6 to correct the date of the TC 898 to match the date of the TC 840.

  4. If the TC 898 and DLN contains Doc Code 77, locate the refund (TC 846 generated refund). URC 6 to correct the date of the TC 898 to match the date of the TC 846.

    Note:

    If the refund was a TC 846, generated refund, the DLN of the TC 898 will match the TC 846 DLN (except Doc Code 77).

  5. If unable to locate the matching refund as described above, contact the Adjustment Branch for the resolution. Do NOT URC D the case.

    Note:

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

3.12.179.34.3  (01-28-2013)
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 matched 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 matched TC 846 with the same date.

  2. RESOLUTION–RC 3 —Research and URC 8 to Rejects to correct the split refund indicator on the TC 898 to match the split refund indicator on the TC 846.

3.12.179.34.4  (01-01-2014)
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. Research to find the matching TC 898. If it posted after the TC 899, close with URC 0.

    2. If a TC 898 with matching OTN/date is showing as DU (Deleted Unpostable) on TXMOD, then the reversal TC 899 will not be able to post. Close with URC D.

    3. Check for a matching TC 898 that may be unpostable at another campus. Try the FLC of the refund if it is different from the TC 899. If the matching TC 898 is unpostable at another campus, contact them to find out when it will be closed. The resolution of TC 898 is usually a name-control/SSN mismatch. Once the TC 898 is posted, close the TC 899 with URC 0.

    4. If there is a posted TC 898 and the OTNs/dates match, then check whether the split refund indicators match. URC 8 to Rejects to correct the split refund indicator on the TC 899 to match the split refund indicator on the TC 898.

    5. If the above steps have been followed and a TC 898 with matching OTN/date cannot be located, then contact the TOP/DMF Liaison at ≡ ≡ ≡ ≡ ≡ ≡ ≡ for resolution. Do not delete TC 899.

3.12.179.34.5  (01-01-2014)
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 if 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 FMS, or the Record Type 2 will be sent after the Record-Type 4.

    Caution:

    These unpostable transactions are financial transactions and should only be deleted for the reasons specified below.

    Note:

    Check for TC 899 Record-Type 2 to resolve case. Use the OFFST-AMT on 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 21.4.6.4.2.10Netting TOP Offsets and Reversals for more information.

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

    2. 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.

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

    4. 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

    5. 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 Headquarters IMF Unpostable Analyst for further review.

    6. Case resolution:

      Note:

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

      IF AND THEN
      TC 899 Record-Type 1 is unpostable   Contact IMF Unpostable Analyst so he/she can notify the author of IRM 21.4.6. The IRM 21.4.6 Author will make a determination if a TC 767 will need to be input.
      TC 899 Record-Type 2 is unpostable TC 766 with the same OTN and same money amount Contact IMF Unpostable Analyst so he/she can notify the author of IRM 21.4.6. The IRM 21.4.6 Author will make a determination if a TC 767 will need to be input.
      TC 899 Record-Type 3 is unpostable   Contact IMF Unpostable Analyst so he/she can notify the author of IRM 21.4.6.
      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 to allow the TC 898 to post first.
      TC 899 (any Record-Type) is unpostable There is no record of TC 898 Close the unpostable with URC D.
      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 is a duplicate transaction. Note: the 2nd TC may reflect a different transaction date Close the unpostable with URC D.
      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.
      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.
      TC 899 Record-Type 4 is unpostable TC 899 Record-Type 2 is not found Suspense for 2 cycles then rmatching TC 899 transaction has posted. If TC 899 Record-Type 2 is still not found then close the unpostable with URC D. Note: Do not delete TC 899 Record-type 4 unless the corresponding TC 899 Type 2 with same OTN was previously deleted.
      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

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 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  (01-01-2014)
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 an 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 and correct/change 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. 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. Update IDRS controls and attach all research to case. For additional information see IRM section 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 FMS 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.

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

    1. The Unpostables units will URC 8 all of these cases to Rejects.

    2. Unpostables will provide a TXMOD print and a Form 3809, if it is available, when routing the cases to Rejects.

    3. Unpostables will include in the "Remarks" on all these transmissions that Rejects will complete Form 4028 and route these cases to Accounting.

      Note:

      Those accounts that do not have duplicate TC 841's and can not be resolved by Unpostables, will continue to be suspended and assigned to the Accounting IDRS unit numbers listed below:

      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 would be - ST15 (Erroneous Refund).

    • Provide a daily listing (GUF-22-40) 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 unpostables cases with a 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 Sara Loza (512) 460-8594
    Cincinnati Larenda Jackson (859) 669-3257
    Fresno Irma Villagomez (559) 454-6194
    Fresno Nancy Chavez (559) 454-6259
    Kansas City Mary Preston (816) 325-3758
    Ogden Stacy Price (801) 620-7660

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 Collection. 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 Collection.

    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  (01-01-2014)
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 the wrong Doc Code 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.

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  (01-01-2014)
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 unable to correct, follow instructions in IRM 3.12.179.10.4.

3.12.179.35.6  (01-01-2014)
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/TC 74X with matching date.

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

  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.

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  (01-01-2014)
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 amounts 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.

  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  (01-01-2014)
Useful Command Codes for UPC 140

  1. The following Command Codes may be useful but not inclusive when researching this UPC:

    UPTIN, TXMOD, IMFOLI, IMFOLQ ( IMFOLQ displays payments held in the recirculating file until cycle 29),
    ENMOD: history information/installment agreements
    IMFOLT specific tax period :Posted transactions appear one week earlier than TXMOD
    INOLET displays valid and invalid accounts
    DDBKD, NAMEI and NAMES to locate parent/siblings
    ADD/ADC 24 or 34 transfers payments
    URINQ/XSINQ display payments in Unidentified or Excess Collections
    TRDBV/MeFile research ELF returns (1998 and later) and paper returns (2003 and later) in submission pipeline.

  2. The Remittance Transaction Research (RTR) System will be used to research for payments. See 3.12.179.3.3.2.

3.12.179.37.3  (11-16-2012)
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. 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.

    3. Research RTR to verify the payment.

    4. Research CC IMFOL to determine if the taxpayer is in debit status for previous tax period(s) or the payment history for this taxpayer shows they have not paid timely or are currently making installment payments.

    5. 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 refer to IRM 3.10.73.3.6(8).

    6. If TC 610 is posted to an incorrect module, transfer credit to correct module. URC 0 and cycle to post after the credit transfer. See Figure 3.12.179-9.

    7. 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 if necessary.

    8. Research CC INOLE for other SSN(s). Ensure all other research methods available are completed. If TC 610 is found and the account 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 as necessary.

      Example:

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

    9. Research IMFOLQ 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. Transfer credit to correct the account once it posts. Release the Unpostable with URC 0 and cycle 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 TXMOD as R0240 TC 610.) This Command Code can be used in all cycles. Additional information on CC IMFOL Q is available in IRM 2.3.51, Command Code IMFOL. See Figure 3.12.179-10.

    10. If TC 610 is in RJ status, use Command Code ERINV to determine if the document is in ERS/Rejects inventory. If so, 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.

    11. 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 as necessary.

    12. If payment shows as R520 on TXMOD, hold unpostable case until payment posts or unposts.

    Figure 3.12.179-9

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

    Figure 3.12.179-10
    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  (01-01-2014)
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.

3.12.179.37.5  (01-01-2014)
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, etc.) 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 to post after the transfer is complete.

    4. If unable to verify credit belongs to the taxpayer, request the posted TC 610 using CC ESTAB or local procedures. .

    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, follow Service Center procedures to transfer the credit to Unidentified.


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