3.13.5  Individual Master File (IMF) Account Numbers

Manual Transmittal

October 21, 2014

Purpose

(1) This transmits revised IRM 3.13.5, Campus Document Services - Individual Master File (IMF) Account Numbers in IRM 3.13, Campus Document Services.

Material Changes

(1) Editorial and subsection changes have been made throughout this IRM.

(2) Some subsections have been changed, resulting in renumbering. If an IRM Procedural Update (IPU) was issued before the 2015 update and the respective IRM subsection numbering changed, the Material Changes will reflect the new IRM subsection number to identify where the change is located.

(3) IPU 14U0242 issued 01-31-2014 IRM 3.13.5.7.1, Establishing and Maintaining the Entity, by correcting the note in paren (4) from TY 2009 to "TY 2011 and prior."

(4) IPU 14U0068 issued 01-08-2014 IRM 3.13.5.10, Document Locator Number (DLN), by removing parens (3) through (5) which contains information unnecessary within this IRM.

(5) Added new figure 1 to IRM 3.13.5.11.1, IMF Segmentation of Valid/Invalid Accounts, to display CC INOLET with multiple taxpayer names.

(6) Revised IRM 3.13.5.11.2, Common Causes for Invalid IMF Cases, by removing ATIN and portions of paren (1) which contained examples of IMF invalid taxpayer account conditions.

(7) Revised IRM 3.13.5.14, National Account Profile (NAP), by removing information in paren (4) regarding CCs EOGEN and SPARQ.

(8) IPU 14U0068 issued 01-08-2014 IRM 3.13.5.14, National Account Profile (NAP), by removing parens (5) and (6).

(9) Revised the title of tridoc 3.13.5.17, IMF Automated Establishment of Secondary Taxpayers and Correction Procedures, by removing paren (12).

(10) Moved the following IRMs from the 01-01-2013 version:
IRM 3.13.5.12, Secondary Taxpayer Invalid SSN, to be renumbered to IRM 3.13.5.16
IRM 3.13.5.57, FINALIST Address Corrections Prior to Posting to IMF, to be renumbered to IRM 3.13.5.42
IRM 3.13.5.126, Entering Duplicate Addresses for Unrelated Taxpayers, to be renumbered to IRM 3.13.5.47
IRM 3.13.5.122, Inputting Domestic Address Changes, to be renumbered to IRM 3.13.5.55
IRM 3.13.5.124, Accounts Management Services (AMS) Address Changes, to be renumbered to IRM 3.13.5.56
RM 3.13.5.125, Air/Army Post Office (APO), Diplomatic Post Office (DPO) and Fleet Post Office (FPO) Addresses, to be renumbered to IRM 3.13.5.57
IRM 3.13.5.120, International Mailing Addresses (U.S. Possessions), to be renumbered to IRM 3.13.5.61
IRM 3.13.5.121, International Addresses (Foreign Addresses), to be renumbered to IRM 3.13.5.62
IRM 3.13.5.62, Undeliverable Mail Procedures, to be renumbered to IRM 3.13.5.65.1 and renamed to Processing Undeliverable Mail Procedures
IRM 3.13.5.63, United States Postal Service (USPS) Acceptable Address Abbreviations, to be renumbered to IRM 3.13.5.136
IRM 3.13.5.64, Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP codes and Countries, to be renumbered to IRM 3.13.15.137
IRM 3.13.5.64.1 Major Cities beginning with the Letters A through L, to be renumbered to IRM 3.13.5.137.1
IRM 3.13.5.64.2 Major Cities beginning with the Letters M through Y, to be renumbered to IRM 3.13.5.137.2
IRM 3.13.5.119, Correcting an Erroneous Secondary Taxpayer TIN, to be renumbered to IRM 3.13.5.123, and renamed to Correcting Erroneous IRS Valid Secondary Taxpayer TIN.

(11) Revised IRM 3.13.5.15.1, NEW SSA N/C Indicator on CC INOLE, by adding a new paren (1) with information on CC INOLE display the "NEW SSA N/C" field.

(12) IPU 14U1271 issued 08-20-2014 IRM 3.13.5.18, Social Security Administration (SSA) Requirements and Form SSA 2458, by changing title of IRM Social Security Administration (SSA) Requirements. Added procedures if there is an erroneous DOD/DOB on a taxpayer's account that the taxpayer will provide SSA documentation (letter/notice) communicates the error.

(13) Revised IRM 3.13.5.24, Transaction Codes Used to Merge Accounts. Individual Master File (IMF) is changing to allow the input of TCs 011, TC 040, TC 041 and TC 013 during cycle 24. However, the TCs will resequence and the posting will be delayed until cycle 25.

(14) Revised the title of tridoc 3.13.5.28, Address Changes from Oral Statements/Telephone Contact to Oral Statement/Telephone Contact Address Change Requirements. Revised paren (2) to include remarks when completing address changes. Specifically, whether the primary, secondary or both taxpayer(s) are requesting an address change or whether the address change is received by an authorized third party.

(15) IPU 14U1121 issued 07-09-2014 IRM 3.13.5.28, Oral Statement/Telephone Contact Address Change Requirements, by adding information to paren (5) that remarks are required to document the source of the address change.

(16) IPU 14U0167 issued 01-23-2014 IRM 3.13.5.28, Oral Statement/Telephone Contact Address Change Requirements, by correcting DRS to IDRS in paren (3).

(17) IPU 14U0113 issued 01-14-2014 for IRM 3.13.5.28, Oral Statement/Telephone Contact Address Change Requirements, by adding a reference to Rev. Proc. 2010-16 and adding information specific to Customer Service Representatives (CSRs).

(18) IPU 14U1121 issued 07-09-2014 IRM 3.13.5.28.1, "Oral" Statement/Telephone Contact Address Change Requirements for MFJ Accounts, by adding information to paren (1) that remarks are required to document the source of the address change.

(19) IPU 14U1362 issued 09-19-2014 IRM 3.13.5.31(16) Form 56, Notice Concerning Fiduciary Relationship, add reference to IRM 3.13.5.128. Added caution note.

(20) IPU 14U1043 issued 06-24-2014 IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship, by adding new information within paren (6) in the "If And Then" by adding a new row e and revising row f within the table. Also added new paren (16) for working accounts and the taxpayer is deceased.

(21) Revised IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship, by changing former paren (3) to a cautionary note within paren (2). Revised the "If, And, Then" chart within paren (4). Made extensive changes if processing a 2007 version or 2011 version of the Form 56. Added new paren to instruct the TE that if an IMF account is inactive (MFR 08) and the taxpayer is deceased, to reopen the account using a TC 012. Accounts where the taxpayer is deceased must be monitored and re-closed after the name change has posted.

(22) IPU 14U0873 issued 05-15-2014 IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship, by revising paren (6) instructing to write Alpha and other audit trail information in the lower left of the Form 56 for the Files function.

(23) IPU 14U0827 issued 05-08-2014 IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship, by revising paren (6) regarding underlining the IMF name control whenever a Form 56 is processed.

(24) IPU 14U0803 issued 05-02-2014 IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship, by revising paren (16) regarding working non decedent accounts.

(25) IPU 14U0778 issued 04-28-2014 IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship, by revising paren (16) to open the account of a non-deceased taxpayer to enter the fiduciary name to the closed IMF account.

(26) Revised IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship, by adding a Reminder to paren (16) regarding working decedent returns. The reminder states, the Estate of a deceased taxpayer can file an individual tax return for the year the taxpayer died. If a tax return is filed on behalf of the decedent after the year of their death, a Form 1041 must be filed on their behalf.

(27) Revised IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship, by adding removing the new paren h. and replacing it with an exception note.

(28) Revised IRM 3.12.5.31.2, Termination of Fiduciary Relationship (Revision 12/2011), by removing instructions to restore the taxpayer's address with the removal of the fiduciary account.

(29) Made extensive changes to IRM 3.12.5.32, Form 1128, Application to Adopt, Change or Retain a Tax Year for Individual Taxpayer.

(30) Removed formerly IRM 3.13.5.35, Form 8599, Request for Missing Information Regarding Refund. These documents are received in the Accounts Management function.

(31) Revised IRM 3.13.5.36, Form 3911, Refund Inquiry to add a new paren (1) that the Form 3911 is received in the Refund Inquiry function before forwarding to the Entity Control Unit (ECU).

(32) Removed the word "only" from the title of IRM 3.13.5.44, Determining Primary Taxpayer Address Changes Due to IDRS.

(33) IPU 14U0068 issued 01-08-2014 IRM 3.13.5.46, Updating Address Records, by adding a reminder to only enter the first five digits of the ZIP Code.

(34) Revised IRM 3.13.5.46, Updating Address Records, by removing the note in paren (2) and adding a reference to IRM 3.13.3.49. Included new information in paren (2) to include remarks required whether the primary, secondary or both taxpayer(s) are requesting an address change or whether the address change is received by an authorized third party. Also added a reminder to paren (8) that only five digits are needed when entering a ZIP Code. Added information if incomplete taxpayer-initiated written address change requests are received on scraps of paper, post it notes, etc., issue the Letter 0104C and include a Form 8822. Destroy the taxpayer information as classified waste.

(35) Extensive changes made to IRM 3.13.5.50 and it was renamed to Written Address Change Requests/Form 8822 for Taxpayers Filing (MFJ).

(36) Revised IRM 3.13.5.50, Form 8822, IMF Change of Address Request. Major revisions made to IRM by moving from IRM 3.13.5.48 and adding new review and correction procedures.

(37) Revised RM 3.13.5.48, Information Required on Address Changes, by changing the title of IRM to Information Required to Complete an Address Change. Revisions include removing paren (2) and removing references to various freeze codes.

(38) IPU 14U0727 issued 04-18-2014 IRM 3.13.5.49, Form 8822, IMF Change of Address Request, by adding an exception note to paren (5) when sending out a Letter 0104C to ITIN taxpayers.

(39) IPU 14U0167 issued 01-23-2014 IRM 3.13.5.49, Form 8822, IMF Change of Address Request, by clarifying which Form 8822s to destroy as classified waste and which Form 8822s to return to the ITIN unit.

(40) IPU 14U0068 issued 01-08-2014 IRM 3.13.5.49, Form 8822, IMF Change of Address Request, by adding instructions to research for the TIN(s) prior to corresponding. If the TE determines the taxpayer(s) address request matches their LKA, no address change is required.

(41) Revised and renumbered IRM 3.13.5.50, Written Address Change Requests/Form 8822 for Taxpayers Filing (MFJ), from formerly numbered IRM 3.13.5.47, Written Address Change Requests for Taxpayers Filing Jointly.

(42) Revised IRM 3.13.5.54, Address Changes Due to Remittance Processing, revised paren (2) and added information regarding freeze code "-U" .

(43) Revised IRM 3.13.5.55, Inputting Domestic Address Changes, by revising paren (4)b to include remarks required when completing address changes. Specifically, whether the primary, secondary or both taxpayer(s) are requesting an address change or whether the address change is received by an authorized third party.

(44) Revised 3.13.5.59, Entering "In Care of" Address Information, by deleting paren (4).

(45) IPU 14U0068 issued 01-08-2014 IRM 3.13.5.61, International Mailing Addresses (U.S. Possessions), by adding a reminder that only the first five digits of the ZIP Code are necessary.

(46) IPU 14U1129 issued 07-10-2014 IRM 3.13.5.62.1, Print Site Undeliverable Mail, removed the information since the undeliverable mail will be forwarded to Code and Edit/SCAMPS instead of the ECU.

(47) IPU 14U0564 issued 03-27-2014 IRM 3.13.5.62.1, Print Site Undeliverable Mail, by revising instructions when a new and/or pending address is located.

(48) IPU 14U0068 issued 01-08-2014 added new IRM 3.13.62.1, Print Site Undeliverable Mail. It contains information on researching undelivered mail received from the print sites.

(49) IPU 14U0307 issued 02-11-2014 IRM 3.13.5.64, Using Campus Address When Taxpayer Address is Unavailable (Limited Use), by correcting where to enter the IRS and city, state and ZIP Code, when entering a campus address on a taxpayer account.

(50) Revised IRM 3.13.5.65, Processing Undeliverable CP Notices/Correspondence/Correspondex Letters, with extensive change made to parens (2) and (4) and the Note. Also added new parens (5), (6) and (7).

(51) IPU 14U0534 issued 03-20-2014 IRM 3.13.5.65, Undeliverable Mail Procedures, by adding a new exception note regarding the receipt of undeliverable that contains IVO as the taxpayer first name and the Austin Campus. Also added a reference to IRM 25.25.2.13.

(52) Removed the information from IPU 14U0873 issued 05-15-2014 IRM 3.13.5.65, Processing Undeliverable CP Notices/Correspondence/Correspondex Letters, by revising paren (5) to clarify that CC SPARQ is used for determine if two taxpayer's filed married filing jointly (MFJ) in specific tax periods. This Command Code is not used consistently within the Entity Control Unit (ECU).

(53) IPU 14U0534 issued 03-20-2014 IRM 3.13.5.65, Processing Undeliverable CP Notices/Correspondence/Correspondex Letters, by adding a new exception note regarding the receipt of undeliverable that contains IVO as the taxpayer first name and the Austin Campus. Also added a reference to IRM 25.25.2.13.

(54) Removed information from IPU 14U0068 issued 01-08-2014 IRM 3.13.5.65, Processing Undeliverable CP Notices/Correspondence/Correspondex Letters, by adding a new paren (6) regarding CC SPARQ.

(55) Removed formerly numbered IRM 3.13.5.65, Unpostable Code (UPC) 147 Reason Codes (RCs) 0 and 1 "Possible ID Theft" and IRM 3.13.5.65.1, UPC 147 RCs 0 and 1 Correspondence/Corrections, since the instructions are included in IRM 3.28.4, Identity Theft Returns for Submission Processing and IRSNs are no longer assigned by the ECU.

(56) IPU 14U1318 issued 09-03-2014 IRM 3.13.5.65.1, Processing Undeliverable Mail Procedures, by removing duplicate information within the exception in paren (1) and adding information to destroy the notices with IVO that were sent in error as classified waste.

(57) Renamed formerly named tridoc 3.13.5.66, Unsigned, Undelivered Mail Research and Correction Procedures to Unsigned, Undelivered 1040 Return(s). Made changes to parens (4), (9) and (13).

(58) IPU 14U1362 issued 09-19-2014 IRM 3.13.5.66(6) Unsigned, Undelivered Mail Research and Correction Procedures. If a taxpayer account is closed (as shown by MFR 08) and they are not deceased, the TE does not have to re-open the account for Entity transaction corrections. Non-Entity transactions do require re-opening, monitoring and re-closing the account once the non-Entity transaction posts.

(59) IPU 14U1318 issued 09-03-2014 IRM 3.13.5.66, Unsigned, Undelivered Mail Research and Correction Procedures, by revising paren (3) in the "If/Then" table by adding guidance if IVO returns the case with an "IVO" stamp, continue processing. Added new paren (8) for pending or posted TC 150s. Also removed formerly numbered parens (7) and (8) within the tridoc due to new paren (8).

(60) IPU 14U1283 issued 08-22-2014 IRM 3.13.5.66, Unsigned, Undelivered Mail Research and Correction Procedures, to include an additional step to the "Then" box within paren (13) to destroy the CP 98 as classified waste.

(61) IPU 14U1154 issued 07-17-2014 IRM 3.13.5.66, Unsigned, Undelivered 1040 Return(s) by combining parens (7) and (8) into a "If/Then" table.

(62) IPU 14U0727 issued 04-18-2014 IRM 3.13.5.66, Unsigned, Undelivered 1040 Return(s), by removing the language "different" address and replacing it with "more complete or current" address within parens (9) and (10). Also revised paren (9)a of chart to refer the tax examiner to parens 10(a) through 10(f) for correction procedures.

(63) IPU 14U0393 issued 02-27-2014 IRM 3.13.5.66, Unsigned, Undelivered 1040 Return(s), by correcting paren (7) to include information whether the taxpayer's return is posted or has not posted.

(64) Changed name of tridoc 3.13.5.67, UPC 147 RC 4--No Filing Requirement to be titled UPC 147 RC 4/CP 01H Processing.

(65) IPU 14U1271 issued 08-20-2014 IRM 3.13.5.67 UPC 147 RC 4/CP 01H Processing, by removing the SSA 2458 letter as the source document provided by SSA.

(66) IPU 14U1154 issued 07-17-2014 IRM 3.13.5.67, UPC 147 RC 4/CP 01H, by removing the note in paren (1) since the information is obsolete.

(67) Removed formerly number IRM 3.13.5.71, Research Tools for ITIN Taxpayers for TRNS 37 and TRNS 43.

(68) Revised IRM 3.13.5.70.1, TRNS 37, Resequence Account-Duplicate SSN, General Information, by revising paren (2) regarding the cause of the TRNS 37.

(69) Revised IRM 3.13.5.71.1, TRNS 43 Causes, with minor editorial changes.

(70) Revised IRM 3.13.5.71.3, Resolution of TRNS 43, by make changes to paren (5) including the "If Then" table.

(71) Revised IRM 3.13.5.72, Assignment of Internal Revenue Service Numbers (IRSNs), by removing parens (1)b, (3) and (7) from the IRM.

(72) Revised IRM 3.13.5.73, When IRSNs are Needed, by removing references to receipt of late filed or amended 2006 Form 1040 with Form 8913 attached.

(73) IPU 14U0727 issued 04-18-2014 IRM 3.13.5.81.3, ITIN Research, by adding an exception to paren (3) to not forward newly assigned ITINs back to the ITIN unit if they are in the process of being established on IDRS.

(74) IPU 14U1341 issued 09-10-2014 IRM 3.13.5.81.5, Assigning an IRSN for a Rejected ITIN, by adding a new paren (3) to edit the IRSN on the copy of the check and route to Accounting.

(75) IPU 14U0778 issued 04-28-2014 IRM 3.13.5.81.5, Assigning an IRSN for a Rejected ITIN, by revising paren (2) and changing the note to read, "If a date has been edited by the ITIN unit, circle the date and enter the date the TIN was assigned or located" .

(76) IPU 14U1154 issued 07-17-2014 IRM 3.13.5.81.8, Revised Reject "Ts" (AUSPC ONLY), by correcting paren (7)c to read, leave the return in the batch so the ERS function can route the return to the ITIN unit.

(77) IPU 14U1043 issued 06-24-2014 IRM 3.13.5.81.9, ITIN Rejects (AUSPC ONLY) by adding an exception to paren (5) that if the ITIN unit circled out the primary TIN, research to determine if the TIN provided by the taxpayer is a valid TIN for the taxpayer. If the TIN belongs to the taxpayer, re-edit the TIN, otherwise continue processing the return as a rejected ITIN case.

(78) IPU 14U0564 issued 03-27-2014 IRM 3.13.5.81.9, ITIN Rejects (AUSPC ONLY), by adding an exception to paren (4)(e) if the ITIN unit indicates "No W-7" to issue the case an IRSN without the DOB present. Also added an exception note regarding Form 1040X in paren (13).

(79) IPU 14U0393 issued 02-27-2014 IRM 3.13.5.81.9, ITIN Rejects (AUSPC ONLY), by revising paren (18) for ITIN processing in AUSC only.

(80) IPU 14U0068 issued 01-08-2014 IRM 3.13.5.81.9, ITIN Rejects (AUSPC ONLY), by adding information to paren (9) regarding a Form 3471.

(81) Revised the title of IRM 3.13.5.87.1, to be renamed to Pending Transaction Identification Codes/IDRS Merge Related Transaction Codes.

(82) IPU 14U0552 issued 03-25-2014 IRM 3.13.5.84, IDRS Research Command Codes, by updating parent (5)(p) regarding NUMIDENT and added reference to IRM 3.13.5.93.

(83) IPU 14U0068 issued 01-08-2014 IRM 3.13.5.88, Using CC INCHG Instead of CC IRCHG, by removing paren (7) which was incorrect.

(84) IPU 14U1271 issued 08-20-2014 IRM 3.13.5.95, CCs DTVUE and DM1DT, by clarifying that SSA will provide a letter/notice that states an error was made on the taxpayer's Date of Birth (DOB) or Date of Death (DOD). The SSA Form 2458 is not the only documentation that SSA provides.

(85) IPU 14U0068 issued 01-08-2014 IRM 3.13.5.101, CC BMFOL, by adding a reference to IRM 25.4.1, Potentially Dangerous Taxpayer.

(86) IPU 14U0068 issued 01-08-2014 IRM 3.13.5.114, Processing Accounts with Transactions on Both Segments of IMF, by updating paren (4).

(87) IPU 14U0068 issued 01-08-2014 IRM 3.13.5.116, Taxpayer Identification Number (TIN) Changes (generates a TC 011), with a minor update from account to TIN in paren (3).

(88) Revised IRM 3.13.5.118.3, Determining Name Line Year Used with TC 013 Corrections, by adding a reminder to paren (1), revised paren (2) and updated the table within paren (3).

(89) IPU 14U1362 issued 09-19-2014 IRM 3.13.5.120(3) Re-Opening a Master File Account (TC 012), regarding Entity-type corrections can be completed without re-opening, monitoring and re-closing the account unless their is an Unpostable condition on the taxpayer account.

(90) IPU 14U1271 issued 08-20-2014 revised IRM 3.13.5.120, Re-Opening a Master File Account (TC 012), by adding information regarding monitoring accounts when working with taxpayer accounts and they are deceased.

(91) IPU 14U0285 issued 02-07-2014 revised IRM 3.13.5.120, Re-Opening a Master File Account (TC 012), by revising paren (1) to ensure is a taxpayer is deceased that the TE monitor the account to determine when the correction transaction posts. After the correction transaction posts, enter a TC 540 (CC REQ77/FRM77) to change the deceased taxpayer's account back to Mail Filing Requirement (MFR) 08.

(92) Revised IRM 3.13.5.120, Re-Opening a Master File Account (TC 012), by moving part of paren (1) to make a new paren (2).

(93) IPU 14U1345 dated 09-11-2014, revised IRM 3.13.5.127.3, Correction Procedures for CP 54 Notices, by removing paren (5) and the note due to duplicate instructions within the tridoc.

(94) Revised IRM 3.13.5.127.3, Correction Procedures for CP 54 Notices, by revising the table within paren (13).

(95) IPU 14U0242 issued 01-31-2014 IRM 3.13.5.127.4, CP 54 Notices Requiring TIN Change(s), by removing the "fill in" paragraph language for Letter 0685C from the table in paren (2).

(96) IPU 14U0204 issued 01-29-2014 and IPU 14U0167 issued 01-23-2014 were issued to revise IRM 3.13.5.127.4, CP 54 Notices Requiring TIN Change(s), by adding a "fill in" paren for the receipt of a Canadian Identification Number.

(97) Revised IRM 3.13.5.127.6, CP 54 Notices Requiring a CC IRCHG Corrections, by revising the table within paren (1) and paren (2) and adding information regarding if a ITIN taxpayer replies.

(98) Revised IRM 3.13.5.127.9, CP 54 Notices Due to (Deceased Taxpayer(s)), by adding instructions if a secondary name line is present.

(99) Removed formerly numbered IRM 3.13.5.134.9, CP 54 Notices from Guardians, Trustees, Administrator, etc.

Effect on Other Documents

IRM 3.13.5 dated October 10, 2013 (effective January 1, 2014) is superseded. The following IPUs, issued from September 27, 2012 through July 2014, have been incorporated into this IRM: 14U0068, 14U0113, 14U0167, 14U0204, 14U0242, 14U0285, 14U0307, 14U0393, 14U0534, 14U0552, 14U0564, 14U0727, 14U0778, 14U0803, 14U0827, 14U0873, 14U1043, 14U1121, 14U1129, 14U1154, 14U1271, 14U1283, 14U1318, 14U1341,14U1345 and 14U1362.

Audience

Wage & Investment (W & I)

Effective Date

(01-01-2015)

Paul J. Mamo
Director, Submission Processing
Wage and Investment Division

3.13.5.1  (01-01-2015)
Individual Master File (IMF) Entity Overview

  1. The instructions contained in this handbook are used for establishing, changing, maintaining, and/or perfecting individual taxpayer accounts on the Individual Master File (IMF). Use the instructions outlined in this handbook to make changes to the "Entity Section" of an account on IMF.

  2. Providing instructions that will cover all combinations of changes that might appear on a given case is not possible. Therefore, where procedures are given for a specific situation (e.g., name change) and if the case requires other changes, make all changes necessary to "perfect" the account.

  3. Reference is made throughout this IRM to other IRMs for more detailed information on how to use Integrated Data Retrieval System (IDRS) and Integrated Automation Technologies (IAT) tools. IAT tools interact with IDRS to automate case work. If IDRS is down, neither Accounts Management Services (AMS) nor IAT will function. This IRM must be used in conjunction with other IRMs to fully resolve tax account related issues.

  4. This IRM provides general instruction as well as information specific to the form or document you are processing. In all cases, the specific information under the subsection for that form or document take precedence over the general instructions.

  5. The IAT provides tools to IRS employees that simplify research, reduce keystrokes and increase the accuracy of regular work processes. IAT eliminates repetitive typing and making precise decisions. The use of IAT is preferred if an IAT tool is available. See the IAT web site for a list of available tools and User Guides. Appropriate research will be completed using CCs NAMEE, NAMEB, NAMES, NAMEI, FINDE, FINDS, etc.

  6. Leave an Action/Audit Trail on all documents by editing actions taken accurately on the left margin of any document where actions taken/updates are completed by the Tax Examiner (TE). If your campus uses a "TE" stamp, this is part of the action/audit trail.

    Note:

    When the TE completes IDRS/IAT and other forms of research and uses a variety of Command Codes, they are not required to list every Command Code used during research.

  7. Edit the following on any detached form or notice if the information is not present on the document:

    • Detached item description (i.e., Detached Form 1040A)

    • Taxpayer's name

    • Taxpayer's Identification Number (TIN) (e.g., Social Security Number (SSN), IRS Taxpayer Identification Number (ITIN), Internal Revenue Service Number (IRSN)

    • TE stamp (if used in your campus).

  8. See IRM 3.13.5.133 for the Glossary of Terms.

  9. See IRM 3.13.5.134 for List of Terms and Abbreviations.

  10. See Document 11426, IRS Correspondence Manual, for more information on the guidance and procedures for the preparation of IRS and Department of Treasury correspondence.

  11. The following IRMs are useful when working in the Entity Control Unit (ECU):

    • IRM 1.4.16, for information on Control-D WebAccess (CTDWA) to view and/or print reports electronically.

    • IRM 2.3.8, Standard Validity Criteria

    • IRM 2.3.9 Security Command for IDRS Users

    • IRM 2.3.10, Command Codes MFREQ and RECON

    • IRM 2.3.11, Command Codes TXMOD and SUMRY

    • IRM 2.3.12, Command Code ACTON

    • IRM 2.3.15, Command Code ENMOD

    • IRM 2.3.25, Command Codes DM1DT and DTVUE

    • IRM 2.3.37, Command Code UPTIN for the GUF System

    • IRM 2.3.47, Command Codes INOLE, EOGEN and SPARQ

    • IRM 2.3.51, Command Code IMFOL

    • IRM 2.3.59, Command Codes BMFOL and BMFOR

    • IRM 2.3.60, Command Codes NAMES, NAMEE, NAMEI, NAMEB, FINDS, FINDE and TPIIP

    • IRM 2.3.71, Command Code ATINQ

    • IRM 2.3.73, Command Codes TRDBV, TRERS, TRPRT, and R8453

    • IRM 2.4.4, Command Code MESSG

    • IRM 2.4.6, Command Codes LETER, LPAGD, LETUP, LETED, LLIST and LREVW

    • IRM 2.4.9, Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG

    • IRM 2.4.13, Command Code TERUP

    • IRM 2.4.19, Command Codes REQ77, FRM77 and FRM7A

    • IRM 2.4.59, Command Code TMSSN

    • IRM 3.0.273, Administrative Reference Guide

    • IRM 3.5.10, Remittance Transaction Research (RTS) System

    • Campus Mail and Work Control - Batch/Block Tracking System (BBTS)

    • IRM 3.5.61, Files Management and Services

    • IRM 3.10.5, Batch/Block Tracking System (BBTS)

    • IRM 3.10.72, Receiving, Extracting, and Sorting

    • IRM 3.12.32, General Unpostables

    • IRM 3.13.2, BMF Account Numbers

    • IRM 3.13.12, Exempt Organization Account Numbers

    • IRM 3.13.36, EPMF Account Numbers

    • IRM 3.13.62, Media Transport and Control

    • IRM 3.21.263, IRS Individual Taxpayer Identification Number (ITIN) Real Time System (RTS)

    • IRM 3.24.3, Individual Income Tax Returns

    • IRM 3.28.4, Identity Theft Returns for Submission Processing

    • IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates

    • IRM 4.10.12, Frivolous Return Program

    • IRM 10.5.1, Policy, Roles and Responsibilities

    • IRM 10.5.3, Identity Protection Program

    • IRM 10.5.4, Incident Management Program

    • IRM 21.5.6, Freeze Codes

    • IRM 21.7.13, Assigning Employer Identification Numbers (EINs)

    • IRM 25.6.1, Statue of Limitations Processes and Procedures

  12. The following information is useful for correcting and researching taxpayer accounts:

    • International; Submission Processing; IMF Foreign Address Job Aid, 2513-703

    • IMF Entity Job Aid, 2430-003

    • Document 7071, Name Control Job Aid for Individual Master File (IMF) Taxpayers

    • Document 7071-A, BMF Name Control Job Aid

    • Document 6209, IRS Processing Codes and Information.

    • Document Spanish 12085, Job Aid and Glossary

  13. Document 12990, Records and Information Management Records Control Schedules, contains the information that was contained in the now obsolete IRM 1.15.29.

3.13.5.1.1  (01-01-2015)
Taxpayer Advocate Service (TAS)

  1. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. TAS criteria include economic burden, systemic burden, best interest of the taxpayer, and public policy (as determined solely by the National Taxpayer Advocate (NTA)). TAS is responsible for assisting taxpayers who have unresolved problems with the IRS. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, if additional information is required.

  2. While the IRS is continually working to serve customers in a quality manner, some taxpayers still have difficulty getting solutions to their problems or getting timely and appropriate responses to their inquiries. Per IRC § 7803(c), Congress established the Office of the Taxpayer Advocate, lead by the NTA and its functions within the IRS to assist these taxpayers. TAS has identified criteria that qualify taxpayers for TAS assistance. The Case Advocate will conduct an independent review of actions that have been taken or need to be taken to resolve the problems taxpayers are experiencing.

  3. Employees should not view TAS Case Criteria as a means of excluding taxpayers from TAS, but rather, as a guide to TAS case acceptance. The criteria under which TAS accepts a case should not govern whether a taxpayer is entitled to relief.

3.13.5.1.1.1  (01-01-2015)
Referring Cases to TAS

  1. Refer taxpayers to the Taxpayer Advocate Service (TAS) (see IRM Part 13, Taxpayer Advocate Service) when the contact meets TAS criteria. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, and you can’t resolve the taxpayers issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayers issue. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4, Taxpayer Advocate Service (TAS) Case Criteria, Same-Day Resolution by Operations. When referring cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), and forward it to TAS in accordance with your local procedures. Check the TAS box on Accounts Management Services (AMS), if applicable.

    Note:

    It is important that all IRS employees handle potential TAS cases with the taxpayers best interest in mind. Refer also to IRM 21.1.3.18, Operational Guidelines Overview, Taxpayer Advocate Service (TAS) Guidelines, for more information. Provide the taxpayer with the number for the NTA toll-free case intake line, 1-877-777-4778 or TTY/TDD 1-800-829-4059. The taxpayer should be advised that TAS is available if the taxpayer is not satisfied with the service he or she received.

  2. An IRS employee should make a referral to a TAS office if the employee receives a taxpayer contact, and cannot initiate action to resolve the inquiry or provide the relief requested. A taxpayer does not have to specifically request TAS assistance to be referred to TAS. IRS employees will advise taxpayers of the option to seek TAS assistance when appropriate. TAS will request documentation from the taxpayer if it is needed to support the requested relief, or required by the IRM.

  3. The following types of cases should NOT be referred to TAS:

    1. Cases where the taxpayers complaint or inquiry only questions the constitutionality of the tax system, or;

    2. Cases where the focus of the taxpayers inquiry is solely to employ frivolous tax strategies to avoid or delay filing or paying federal taxes.

3.13.5.1.1.2  (01-01-2015)
Taxpayer Advocate Services (TAS) Service Level Agreements (SLAs)

  1. The National Taxpayer Advocate and the Commissioner, Wage and Investment (W&I) have reached an agreement outlining the procedures and responsibilities for processing Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete a case transaction rests with the W&I Division. The agreement is known as a Service Level Agreement (SLA).

  2. In preparation for a case to be referred to a W&I Division function, the TAS employee is responsible for the following:

    1. Preparing Form 12412, Operations Assistance Request.

    2. Securing all necessary supporting documentation.

    3. Identifying cases that require expedite processing. No case will automatically receive expedite processing; requests for expedite processing will be made on a case-by-case basis.

    4. Forwarding Form 12412 and documentation to the W&I Business Unit Liaison.

  3. The W&I Division is responsible for:

    1. Assigning a liaison in each office or Campus where a Taxpayer Advocate is located.

    2. Acknowledging receipt of the case within one (1) workday for cases requiring expedite processing or within three (3) workdays for all other cases.

    3. Responding to TAS within three (3) workdays in writing, via facsimile, secure messaging E-mail, or hand delivery of resolution.

    4. Providing TAS with the name and telephone number of the W&I group manager or employee assigned the case.

    5. Determining a reasonable time frame for case resolution.

    6. Upon closing of the Operations Assistance Requisition (OAR), the W&I employee assigned the OAR will complete Section VI of Form 12412, Operations Assistance Request and return it to the TAS employee assigned the case. The Form 12412 must be returned within three (3) workdays from the date that all actions have been completed and transactions input.

3.13.5.1.2  (01-01-2015)
IRS Employee Contact--Restructuring and Reform Act (RRA) Section 3705(a)

  1. The Restructuring and Reform Act 1998. When contacting taxpayers by telephone, you must be sure you are speaking with the taxpayer or authorized representative before disclosing tax information. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3, Operational Guidelines Overview, Required Taxpayer Authentication and IRM 21.1.3.2.4, Operational Guidelines Overview, Additional Taxpayer Authentication. Also, before leaving a message on the taxpayers answering machine, review IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail, which provides identification requirements for all IRS employees working tax-related matters. IRS employees are required to give their name and unique identification number during taxpayer telephone, face to face and written contact. In addition a telephone number is required on all taxpayer correspondence. This will provide taxpayers with enough information to identify an IRS employee who has previously assisted with tax-related matters.

  2. All IRS employees are required to provide (at a minimum) the following information:

    • Your title (e.g., Mr., Mrs., Ms., Miss),

    • Your last name

    • Your Identification Card (badge) Number.

  3. All correspondence must include a telephone number where the taxpayers question can be answered. In addition, manually generated and handwritten correspondence must include the following information:

    • Your title (e.g., Mr., Mrs., Ms., Miss)

    • Your last name

    • Your Identification Card (badge) Number.

  4. The IDRS number and numbers for some other letter systems are automatically generated. If it is not generated, or a handwritten note is prepared, the ID card (badge) number must be used.

  5. When a taxpayer requests to speak with a specific employee who previously handled the inquiry or request, or complains about the level of service previously provided, every attempt should be made to resolve the taxpayers inquiry. If the issue cannot be resolved, the employee should refer the inquiry using established procedures to his or her manager.

  6. Correspondex letters will require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any questions that the taxpayer may have about the correspondence, or the employee is asking the taxpayer to provide additional case-related information. Otherwise, if the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

  7. It is not necessary to repeat the ID card number (badge) on a subsequent contact, when the nature of an employee’s work involves multiple contacts with the same taxpayer, and the employee has given the taxpayer (either telephone or in-person) their ID card (badge) number on the first contact.

  8. When contacting taxpayers by telephone, you must be sure you are speaking with the taxpayer or authorized representative before disclosing tax information. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3, Operational Guidelines Overview, Required Taxpayer Authentication and IRM 21.1.3.2.4, Operational Guidelines Overview, Additional Taxpayer Authentication. Also, before leaving a message on a taxpayers answering machine, review IRM 11.3.2.6.1 Leaving Information on Answering Machines/Voice Mail.

3.13.5.1.3  (01-01-2015)
Ethics Awareness

  1. The integrity and dependability of all employees is crucial to accomplish the Service's mission. All contacts made with the public shall reflect the Service's high ethical standards and quality performance.

  2. Employees having access to and working with return information and data must not:

    • Alter data,

    • Disclose information to persons except as authorized by the Internal Revenue Code (IRC),

    • Use the data for unauthorized purposes,

    • Make unauthorized or unnecessary access (browsing) to taxpayer data, or

    • Engage in financial transactions using non-public information to further their own private interests or that of another, nor use their public office for private gain in any way.

3.13.5.1.4  (01-01-2015)
Taxpayer Browsing Protection Act

  1. The Taxpayer Browsing Protection Act is the unauthorized access, attempted access or inspection of taxpayer records (UNAX) program. Willful unauthorized access or inspection of taxpayers records is a crime, punishable upon conviction, by fines, imprisonment, and termination of employment. Taxpayer records include hard copies of returns and return information, as well as returns and return information maintained on a computer. Unauthorized access or inspection is looking or accessing tax records that are not necessary to complete official IRS duties as assigned by management.

  2. If in doubt, discuss it with your supervisor. Your supervisor will provide an answer or refer the question to the Disclosure Office. The telephone number to contact Disclosure is (866) 591-0860 (for internal use only) or concerns or questions can be sent to Disclosure.

  3. Direct any other problems concerning disclosure matters (Privacy Act, Freedom of Information Act, IRC Section 6103, etc.) to the Disclosure Help Desk.

  4. Any employee who has knowledge of an actual or suspected unauthorized access (UNAX) violation, must immediately contact the local Inspector General Special Agent, or call the Treasury Inspector General for Tax Administration (TIGTA) Hotline at 1–800–366–4484.

  5. For additional information regarding unauthorized access (UNAX), refer to IRM 10.5.5, IRS Unauthorized Access, Attempted Access or Inspection of Taxpayer Records (UNAX) Program or the Supplemental Guide for IRS' Awareness Briefing on Unauthorized Access-UNAX for additional information, or contact the Privacy, Governmental Liaison and Disclosure UNAX Program Office via email at *UNAX. The UNAX website is as at the following email address UNAX Web page or contact the UNAX Program Office, PGLD at 202 283-UNAX.

3.13.5.1.5  (01-01-2015)
Processing Time Frames for the Entity Control Unit (ECU)

  1. Process the following forms and taxpayers' correspondence within established time frames. The established time frames are prescribed in Document 12990.

  2. See IRM 3.30.123, Processing Timeliness, Cycles, Criteria, and Critical Dates, for the established processing time frames. All time frames start from the IRS received dates, unless otherwise specified.

3.13.5.1.6  (01-01-2015)
Batch Requirements

  1. Incoming mail and cases are either:

    1. Delivered to the ECU clerical support area or,

    2. Picked up by an ECU designee from the appropriate area(s) on at least a daily basis.

  2. The batch requirements/categories may, at a Submission Processing Campus' option, be expanded.

  3. While categories are assigned, if you determine an item belongs in another category, sort as appropriate.

  4. An example is IMF correspondence other than address changes:

    If... Then...
    Correspondence clearly gives information concerning a frozen refund, Categorize the items for a fourteen-calendar day period.
  5. At a Submission Processing Center's (SPC's) option, each sort category may be sub-sorted. An example is a CP 54 that can be sub-sorted to:

    • Name changes

    • Taxpayer Identification Number (TIN) changes

    • No changes

    • Combination changes, etc.

  6. The sorter must be aware of TAS cases that are forwarded on a Form 12412. Any item meeting the TAS criteria must be referred to the manager (or a designee) to expedite handling.

3.13.5.1.6.1  (01-01-2015)
Batch Size

  1. Batch sizes must be based on the volume typically received. The largest volumes received are CP notices. Other types of cases are received in smaller volumes. Therefore, holding a group of Form 2363 all day to achieve a batch size of "100" is not advised.

  2. Small batches of cases allow a better distribution of the work within the ECU. In addition, special circumstances may dictate that batch sizes are smaller than prescribed in these guidelines.

  3. Although not required, it is recommended to combine partially worked batches of similar cases with the same due dates. This will result in reduced inventories.

  4. Being able to identify types of work and the working schedule without having to look at each individual batch is important. A suggested method is to use colored folders for the batches of work.

  5. Some cases are hand-carried to the manager or a designee. Examples of these cases include:

    • Unpostables

    • Rejects

    • Returns

  6. It is the manager's responsibility to ensure the correct batching of the Entity cases with the appropriate working time frames as prescribed in IRM 3.13.5.1.3.

3.13.5.1.6.2  (01-01-2015)
Batch Work

  1. Take the following actions.

    If... Then...
    During a given week, work was batched under an incorrect category, Move the batch to the correct category, but only during the initial week.
    Work is batched under a given category and some items within the group must be suspended (or even the entire batch), Do not move the batch to a category with a longer aging criteria.
  2. It is recognized that in certain situations cases cannot always be corrected within the established time frames or guidelines. However, by aging the cases instead of changing categories, the yearly receipts will not be inflated.

  3. When cases are suspended for correspondence, research, documents, etc. and the information is not received, do not close the cases and reopen with a new received date.

3.13.5.1.7  (01-01-2015)
Accounts Management Services (AMS) Entity Transcripts

  1. AMS delivers Entity transcripts electronically and is replacing the printed paper forms. The data is extracted and sorted by a computer program and cases are loaded into the system as inventory items. The system will automatically assign inventory cases to employees based on their skill codes and the number of cases in inventory. The Entity manager, lead or clerk may also manually assign transcript inventory to employees in their unit.

  2. Assigned and unassigned cases will reside on AMS. The reports to track Entity's transcript inventories are also available on AMS.

3.13.5.1.8  (01-01-2015)
Requesting Taxpayer Information

  1. Requests for taxpayer information:

    1. When requesting taxpayer information, a specific requested response time must be given. The taxpayer must be informed of the consequences of non-receipt or untimely receipt of the requested information (in plain, polite language). Example: Non-receipt or untimely receipt of the requested information could delay the receipt of your refund or any future correspondence with the IRS.

    2. If the information is for domestic cases (generally allow 30 days plus 10 days purge time if the information is not received in the allotted time), leave an audit trail with no reply in comments.

    3. If the information for overseas correspondence is not received in the allotted time (70 days), leave an audit trail with no reply in comments.

    4. A request should be made for a telephone number and the times most convenient to call.

    5. Include your employee badge number on all requests.

  2. When corresponding for missing information from the fiduciary and the taxpayer is deceased, correct the address on the letter from "DECD" to "Estate of ..." .

  3. Whenever possible, IDRS "C" letters must be used to correspond with taxpayers.

    Note:

    Be sure the letter clearly expresses the message in simple language.

    If... Then...
    Inquires are received from persons living abroad about where to apply for a TIN Correspond and direct them to the nearest U.S.A. Embassy or Consulate.
    US Embassy
  4. Instructions throughout this manual refer to written correspondence. At each SPC's option if a phone call can resolve the situation, this method may be used.

    Caution:

    In all taxpayer telephone contact, care must be taken to ensure that the IRS employee is actually communicating with the taxpayer or his/her authorized representative. Adequate disclosure probes/procedures must be conducted on every call. If necessary, see IRM 11.3.2, Disclosure to Persons with a Material Interest.

  5. When contacting a taxpayer by telephone, you must use the authentication disclosure procedures found in IRM 21.1.3.2.3, Operational Guidelines Overview, Required Taxpayer Authentication.

    Caution:

    Generally, tax information protected by IRC Section 6103 may NOT be left on an answering machine or voice mail.

  6. Exceptions to this guideline are shown in IRM 11.3.2.6.1 and include:

    • Where the taxpayer has specifically requested that information be left on their answering machine/voice mail

    • The taxpayer has stated that they are the only one with access to the answering machine/voice mail, and

    • There has been positive identification of the number reached by the IRS employee using the standards above or through prior agreement of the taxpayer.

3.13.5.1.9  (01-01-2015)
Timeliness Guidelines

  1. Timeliness guidelines for working taxpayer correspondence are outlined in Document 12990 Records and Information Management Records Control Schedules. Periodic review of the correspondence inventory is required to ensure the timeliness requirements are being met as outlined in IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates. A reporting system must be established to alert management to any problems.

  2. Unnumbered amended returns (e.g., Form 1040X, Form 1120X, etc.) although not included in the definition of taxpayer correspondence must be processed following the guidelines in Document 12990.

3.13.5.1.10  (01-01-2015)
Receipt of Taxpayer Forms, Payments and Correspondence

  1. If the ECU receives "original" and/or copies of tax returns (Form 1040, Form 1040A, Form 1040EZ, etc.) submitted with any Entity requests (CP 54s, Form 56s, etc.), detach the tax return. Research for a posted TC 150 for the tax year of return.

    1. If a TC 150 is posted, forward to the 1040X unit.

    2. If the TC 150 is not posted, forward to Receipt and Control (R and C) for original processing.

  2. Taxpayers may forward payments/correspondence to an incorrect campus. They may also send address changes to the address on the mail packages from the Regional Disbursing Center (RDC).

  3. The RDC has instructions to forward this mail to the appropriate SPC that services the particular taxpayer.

  4. Address changes will be completed in the receiving SPC provided all the necessary information is available.

    Note:

    Form 8822 and Form 8822-B will be worked in the campus where they are received. See IRM 2.4.9, Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG and IRM 3.13.2, BMF Account Numbers, and Figure 3.13.2-26. If assistance is needed from a BMF site, make telephone contact then fax the information if necessary.

  5. Name change requests must be completed in the receiving SPC provided if enough information is available.

  6. For requests other than address and name changes, decisions must be made to decide if enough information is available to work the request or route the request to the responsible business area.

  7. TIN changes must be transshipped to AM if there is an indication of scrambled TIN conditions, adjustment control cases (open cases), pending audits (freeze codes), etc.

  8. However, once your SPC begins the case, it must be completed unless another campus agrees to accept the case.

    Note:

    When the acceptance agreement is reached, the transmittal must include the names of the employees agreeing to the acceptance and the sender's name.

3.13.5.1.11  (01-01-2015)
Receipt of Form 1040 Series Returns with an Individual and/or Business Name and an EIN

  1. Entity will receive Form 1040 series returns (Form 1040, Form 1040A, Form 1040EZ and Form 1040X) from Code and Edit (C&E) to determine if the taxpayer has a "Single Member" or "Sole Member" Limited Liability Corporation (LLC) filing requirement or if the IMF tax return is a duplicate filing.

  2. Use CCs NAMES, NAMEE, IMFOLT, BMFOLE, INOLES, TXMOD, etc. to research the taxpayer's account.

    Note:

    A single member or sole member LLC account will contain the words "SOLE MBR" or "SINGLE MBR" within the Sort Name line as shown on CC INOLES.


    CC BMFOLE will display the LLC indicator on Line 14 of the screen display.

    If... And... Then...
    a. Entity DOES NOT locate a SSN for the taxpayer   1. Use the Form 4227 and notate "No SSN located/Cleared by Entity" .
    2. Return the document to C&E using the Form 4227.
    b. the taxpayer has a single/sole member LLC filing requirement and the taxpayer filed with Schedules C and/or F
    1. Use the Form 4227 and write the taxpayer's SSN and "Single Member LLC" and notate the return is "Complete/Cleared by Entity" for processing.

    Note:

    The return is determined to be complete because taxpayer included necessary Schedule (Sch). C and/or Sch F.


    2. Return the case to C&E using the Form 4227 and include the SSN.
    c. taxpayer DOES NOT have an LLC filing requirement   1. Use the Form 4227 and notate "No LLC Filing Requirements/Cleared by Entity" .
    2. Return the document to C&E using the Form 4227.
    d. Entity locates a TC 150 for the same tax period (shown through CC IMFOLT) SSN is found 1. Write the taxpayer's SSN and "Possible Form 1040X" on the Form 4227.
    2. Forward the case to the 1040X Unit using the Form 4227.

3.13.5.2  (01-01-2015)
Correspondence

  1. Entity Control receives a variety of correspondence (letters, cards, notices, etc.) for processing.

  2. Clerks in the ECU are responsible for sorting all incoming correspondence. Clerks must examine all taxpayer correspondence and attachments.

    If... Then...
    taxpayer sends an original document(s) with their letter (e.g., "Social Security Card" , Marriage Certificate, Divorce Decree, etc.) the clerk/TE must prepare a Form 14219, Return of Documentation to the Taxpayer, and return the original item(s) to the taxpayer on a daily basis.
  3. Copies of documents with correspondence must remain with the correspondence.

  4. Copies of documents without correspondence are handled at the Submission Processing Campus (SPC) discretion.

  5. When corresponding for missing information from the fiduciary and the taxpayer is deceased, correct the address on the letter from "DECD" to "Estate of ..." .

  6. Taxpayer Correspondence is governed by the guidelines in Document 12990. Correspondence with the taxpayer is necessary for the following conditions:

    1. Written communication is received in response to an IRS request(s) for information or data.

    2. Written communication is received from a taxpayer or his/her representative, excluding tax returns, whether solicited or unsolicited.

    3. Written communication, including annotated notice responses, is received that provides additional information or disputes a notice.

    4. Written communication is received which requests information, including any accompanying tax returns.

  7. Taxpayer Inquiries:

    1. When responding to a taxpayer inquiry use language such as the following: "This is in reply to your correspondence of (date)," and provide an explanation of the action(s) taken even if they are exactly what was requested by the taxpayer. Use the appropriate "Correspondex letter" .

      If... Then...
      Action has not been completed in 30 days An interim reply will be sent to inform the taxpayer as to when we expect to complete the required action(s).
      Final answer cannot be provided by the estimated deadline date contained in your interim response Contact the taxpayer on or before the deadline and provide a reason and new estimated closure date.
      Additional correspondence is anticipated or requested Request the taxpayer's telephone number and the hours most convenient to call.
  8. Enter the correspondence date in the following priority:

    1. Use the date the taxpayer's correspondence was prepared or signed

    2. Use the envelope postmark date

    3. Use the IRS received date and subtract three days to compute the correspondence date

    4. Use the current date

  9. Do not generate an acknowledgment letter for the receipt of taxpayer information.

  10. When providing the taxpayer with a contact number, provide a toll free number whenever one is available. The telephone numbers are as follows:

    • 800-829-0922 for IMF taxpayers with a Wage and Investment (W&I) Indicator

    • 800-829-0115 for Business Master File (BMF) taxpayers

    • 800-829-8374 for IMF taxpayers with a Small Business/Self Employed (SBSE) Indicator

    • 1-267-941-1000 for International taxpayers. (This number is used by taxpayers who are outside the U.S. because these International taxpayers do not have a toll free number available)

    Note:

    The telephone numbers listed above are not provided to taxpayers through direct contact such as customer service sites.

    Reminder:

    The taxpayer's Business Operating Division (BOD) filing requirements varies based on their filing history.

  11. Use the following methods to determine the taxpayer's BOD:

    Use Method
    CC LPAGE* taxpayer information displays beside the BOD field
    CC TXMOD taxpayer information displays beside the BOD-CD field
    taxpayer accounts established with an Employer Identification Number (EIN) use the 800-829-0115 toll free number for BMF taxpayers
    * On CC LPAGE if the taxpayer's account is NOT on the National Account Profile (NAP), NOBOD will display beside the BOD field.
  12. Some programs and functions have their own toll free numbers and the toll free numbers are as follows:

    Estate and Gift 1-866-699-4083
    Excise 1-866-699-4096
    Tax Exempt/Government Entities (TE/GE) Accounts 1-877-829-5500
    Taxpayer Advocate Service (TAS)
    TAS TTY/TTD
    1-877-777-4778

    1-800-829-4059

3.13.5.3  (01-01-2015)
Use of Fax Signatures

  1. Tax return information can be received via fax as part of return perfection even if a taxpayer signature is required. In circumstances where contact with the taxpayer has been made and documented, fax signatures are acceptable.

  2. Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to determine which method of contact will be used.

  3. Code and Edit tax examiners will indicate the fax paragraph on the approved Correspondence Action Sheet to advise taxpayers of the option to fax their response.

    Caution:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Operational Guidelines Overview, Additional Taxpayer Authentication. Procedures contained in IRM 11.3.1.11, Facsimile Transmission of Tax Information, must be reviewed prior to faxing confidential information to the taxpayer.

3.13.5.4  (01-01-2015)
Spanish Computer Letters

  1. When using any Spanish version computer letter or a pre-printed letter that requires the entry of the date, the spelling of the month must also be in Spanish. The date and month must also be shown in the manner used by Spanish language users (i.e., date, month and year.) The date and month and the month and year are to be separated by the word "de" instead of a comma. See Document Spanish 12085, Job Aid and Glossary.

  2. Pertinent Spanish information is listed in the following table:

    enero (January) julio (July)
    febrero (February) agosto (August)
    marzo (March) septiembre (September)
    abril (April) octubre (October)
    mayo (May) noviembre (November)
    junio (June) diciembre (December)
    Example: May 5, 2007, is written 5 de mayo de 2007.

3.13.5.5  (01-01-2015)
Frivolous Return Program (FRP)

  1. Identification of frivolous filing can be made in any campus by any employee. However, many of the cases are identified and have been reviewed prior to being received in the ECU.

    Note:

    When the initials "FRP" are shown in the upper left corner of the document, notice, return, etc. continue processing the case. These initials indicate that the FRP area has reviewed and cleared the document.

  2. If in doubt about whether the return/document is frivolous, consult with your lead or manager. After review by the lead and/or mangers and suspicious taxpayer trends or patterns are observed, contact your local FRP Coordinator.

  3. If the documents/returns meet the FRP guidelines, forward the cased to the FRP in Ogden.

  4. Use the following address to mail information to the FRP:
    IRS
    1973 Rulon White Blvd
    Mail Stop 4450
    Ogden, UT 84201

  5. Detailed information on the Frivolous Return program is contained in IRM 4.10.12, Frivolous Return Program.

3.13.5.6  (01-01-2015)
Duplicate Addresses

  1. If the ECU identifies duplicate address information on multiple Form 8822s, miscellaneous notices or taxpayer correspondence, forward these cases to your local Income and Verification Operations (IVO) area using a Form 3210, Document Transmittal.

    1. If IVO determines the address change is warranted, they will return the cases to the ECU within 10 days for processing.

    2. If IVO determines the address change is not necessary, they will retain the case.

      Note:

      No address change is required by the ECU if the case is retained.

3.13.5.7  (01-01-2015)
Entity Section

  1. The "entity section" on a taxpayer's account contains a variety of information.

  2. Some of the elements that comprise the IMF Entity are as follows:

    • Primary taxpayer's Name

    • Name Controls (N/Cs)

    • Address

    • Taxpayer Identification Number (TIN). See additional information in paren (3) below.

    • Date of Birth (DOB)

    • Spouse's Name

    • Spouse's TIN

    • Filing Status Code (FSC)

    • Name Line Year

    • Fiscal Year Month (FYM)

    • Mail Filing Requirement (MFR).

      Note:

      See IRM 2.3.51, CC IMFOL, for additional information on the applicable MFR codes.

    • The SSA, IRS valid and IMF Name Controls

    • Scrambled Social Security Number (SSN) indicators (XXXSSN)

    • Date of Death (DOD) (if applicable)

  3. The IMF TIN may be a SSN, IRS Individual Taxpayer Identifying Number (ITIN), Internal Revenue Service Number (IRSN) or an Adoption Taxpayer Identification Number (ATIN) (used mostly for dependent processing).

  4. The DOB and Date of Death (DOD) information is obtained from the Social Security Administration (SSA) and through taxpayer contact.

3.13.5.7.1  (01-01-2015)
Establishing and Maintaining the Entity

  1. If the entity information is not properly established or maintained, it will result in:

    • Poor service to the taxpayer

    • Unnecessary work

  2. The IMF entity is updated and/or established via IDRS/IAT input or through the processing of tax documents such as:

    • Filing of a tax return

    • Receipt of taxpayer correspondence

    • Generation of internally processed documents

  3. The items established by the filing of the return include the following:

    • Primary and/or Secondary taxpayer names

    • Address

    • Primary and Secondary SSNs

    • Filing Status Codes

    • Type of return

  4. To establish an account for a taxpayer through taxpayer correspondence or with an internal document, the TE must enter all the required elements.

    Note:

    When working Statute Year Returns (TY 2011 and prior), check for the Cleared Statute Stamp. If the stamp is not on the return, route to Statute Function for clearance prior to processing unless a TIN is not present. If a return requires an IRSN, issue an IRSN before routing to the Statute Function.

    See IRM 25.6.1, Statute of Limitations - Statue of Limitations Processes and Procedures, if needed. See IRM 3.13.2.7.1 for Statute expiration dates.

    Caution:

    Do not route a return to Statute without a TIN. You must issue an IRSN before routing cases to the Statute Unit.

3.13.5.8  (01-01-2015)
Cases Received in IMF Entity

  1. IMF Entity is responsible for researching and correcting taxpayer account(s).

  2. Entity tax examiners receive a variety of work and the following is a partial list of the cases received in the Entity Control Unit (ECU):

    Note:

    This list is not all inclusive:

    • TRNS 37

    • TRNS 43

    • CP 54B

    • CP 54E

    • CP 54G

    • CP 54Q

    • Form 2363

    • Form 4149

    • Taxpayer Correspondence

    • Name Changes and Address Changes (taxpayer generated)

    • Scrambled TIN Cases (Adjustment Section-Internal Revenue Service Campus (IRSC))

    • Multiple Filer Cases (Examination Section-IRSC)

    • Unpostables

    • ZIP Error Listing, 757-68-11 for IMF

    • Assigning EINs

    • Insolvency Cases

    • Account Maintenance Research (AMRH) Transcripts

    • Assigning Internal Revenue Service Numbers (IRSNs)

    • Researching Unsigned and Undeliverable mail

3.13.5.9  (01-01-2015)
Customer Account Data Engine (CADE) 2

  1. CADE 2 implemented a daily processing environment for IMF in January 2012.

  2. Several cycles were accelerated when CADE 2 daily processing was implemented. The cycle changes were implemented in all sites. The cycle changes are:

    • Campus Production Cycle: Thursday - Wednesday

    • Master File Processing: Friday - Thursday

    • Notice Review: Saturday - Monday (8+ days)

    • Unpostables: New UPCs available Tuesday; closing Tuesday

  3. IMF transactions posting time frames are outlined as follows:

    1. Daily transactions directed to a daily account are expected to post daily with daily processing. Transactions will be viewable using CFOL command codes the second day after campus input. Transactions will be viewable on IDRS command codes the third day after campus input.

    2. Weekly transactions directed to a daily account are expected to post with the weekly processing run on Thursday and may result in the account type changing to Weekly.

    3. Daily and Weekly transactions directed to a Weekly account are expected to post with the weekly processing on Thursday.

      Note:

      TXMOD will reflect "DAILY" in the upper right hand corner on Daily accounts. IMFOL will reflect "DAILY" or "WEEKLY" in the upper right hand corner to identify the type of account.

  4. Beginning In January 2013, certain transactions will post daily. The IMF entity transactions TC 013, TC 014, and TC 015 will post daily to weekly accounts, unless there are other previous transactions already resequencing to post for the cycle.

  5. BMF transaction posting time frames are outlined as follows:

    • Transactions will be viewable using Corporate Files Online (CFOL) command codes on Saturday following the weekly Master Files processing run on Thursday.

    • Transactions will be viewable as posted transactions using IDRS command codes on Monday, following the weekly Master File processing run on Thursday.

    • With the acceleration of the IDRS weekly analysis being performed the weekend directly after the Master File processing on Thursday, transactions will be posted instead of in pending status on Monday.

  6. Cycle posting dates will reflect a format of YYYYCCDD.

    • YYYY will indicate the year.

    • CC will indicate the posting cycle.

    For IMF transactions, the values for DD are as follows:

    • 01 - Friday

    • 02 - Monday

    • 03 - Tuesday

    • 04 - Wednesday

    • 05 - Thursday

    BMF posting cycles on CC BMFOL will continue to reflect YYYYCC

    • YYYY will indicate the year.

    • CC will indicate the posting cycle.

    BMF posting cycles in CC TXMOD will reflect a format of YYYYYCCDD. The value for DD will be 08.

3.13.5.10  (01-01-2015)
Document Locator Number (DLN)

  1. The DLN is a number assigned to every return or document input and is used by the IRS to control, identify, and locate documents. The fourteenth (last digit) is the year of processing and is assigned by the campus computer at the time of the original input.

  2. The following is an example of an DLN:

    File Location Code (FLC) Tax Class Doc. Code Julian Date Block Series Serial No. List Year
    89 2 10 105 600 25 9

3.13.5.11  (01-01-2015)
Valid and Invalid Segment of the IMF

  1. The IMF is structured into two segments "valid and invalid."

  2. IRS invalid IMF taxpayer accounts display with an asterisk (*) immediately following the taxpayer's TIN. See IRM 3.13.5.25 for additional information.

  3. IRS valid IMF taxpayer accounts display without an asterisk after the taxpayer's TIN.

  4. The taxpayer's TIN/Name Control is determined to be VALID when it matches specific name controls displayed on CC INOLES.

    Note:

    A taxpayer may have a valid SSN assigned by the Social Security Administration, but their account could reside on the "invalid" segment of the IMF due to a TIN/Name Control Mismatch.

3.13.5.11.1  (01-01-2015)
IMF Segmentation of Valid/Invalid Accounts

  1. The IMF is segmented according to TIN validity. Valid TINs reside on IMF in TIN sequence order followed by invalid TINs in TIN sequence order.

  2. It is possible for two or more different taxpayer accounts to reside on IMF under the same TIN. See the examples below:

    • One taxpayer account resides on the valid side/segment of the IMF.

    • A different taxpayer account resides on the invalid side/segment of IMF.

    • Three different taxpayers residing on the invalid side/segment of the IMF and a different taxpayer resides on the valid side/segment of IMF.

    Note:

    Look for possible scrambled TIN conditions.

    See IRM 3.13.5.25 for more information on scrambled TIN information.

  3. The same taxpayer can reside on IMF on the both valid and invalid segments of IMF as shown in the examples below:

    • The taxpayer has filed with different names in different tax periods (example: JONE 2011 and SMIT 2012).

    • The taxpayer has reported one name to SSA; but filed their return with a different name.

  4. See Figure 3.13.5–1 for an example of CC INOLET displaying a VALID and INVALID side of the same taxpayer account.

    Figure 3.13.5-1

    This image is too large to be displayed in the current screen. Please click the link to view the image.
  5. The IRS conducts "proximal matches" on name controls in an attempt to match taxpayer's name on the DM–1 File. See IRM 3.13.5.12 for additional information. If a proximal match is obtained, the entity information is coded "VALID."

3.13.5.11.2  (01-01-2015)
Common Causes for Invalid IMF Cases

  1. One of the most common reasons for taxpayer accounts to reside on the invalid segment of IMF is when a taxpayer files using a name and/or Name Control that does not match the VALID name(s) that are displayed on NAP (as shown on CCs INOLES/INOLET). Name Controls are received from the following sources:

    • Social Security Administration (SSA)

    • ITIN processing

    • IRS Validation processing

  2. Other causes for an invalid taxpayer account may be due to:

    • Marriage, divorce, or legal name changes

    • Transcription errors made by the IRS

    • Taxpayer(s) using another taxpayer's TIN or name

    • Family members using other family member's SSNs in error

    • Taxpayers reporting their SSN or name incorrectly

    • Input errors by SSA and the ITIN department

3.13.5.12  (01-01-2015)
Proximal Match on IMF Name Control

  1. IMF completes a proximal match on taxpayer's Name Control (N/C) and their TIN used when filing to determines if a mismatch condition exists. In order for IMF to obtain a "proximal match" on the taxpayer's IMF N/C and TIN, the following conditions must be met:

    If... And... Then...
    First letter of the IMF N/C matches the first letter of name control(s) found on DM-1 associated with this TIN Any two letters are equal to the same two relative positions of the NC(s) found on DM-1.
    OR
    Any two adjacent positions when interchanged, are equal to the same two relative positions of the NC(s) found on DM-1 and the remaining position of IMF NC is equal to the same relative position found on the DM-1.
    Proximal Match occurs
  2. The proximal match process corrects typographical errors.

3.13.5.13  (01-01-2015)
Data Master One (DM–1) File

  1. The DM–1 file is a database of name controls and associated TINs received from these four sources:

    Social Security Administration (SSA)
    IRS processing
    IRS Individual Taxpayer Identification Number (ITIN) File
    ATIN (Adoptive Taxpayer Identification Number) File

    Note:

    The ITIN and ATIN processing is completed at Austin Submission Processing Campus (AUSPC).
    The ATIN and ITIN taxpayer information is sent forward DAILY. However, these taxpayer accounts will initially reside on the invalid segment.
    The new ATINs, ITINs, IRS Valid and SSA Accounts will be directed to the invalid side of IMF.
    These new accounts WILL NOT validate or attempt to post to the valid side of IMF until after completion of the next quarterly merge.

    Reminder:

    The DM-1 quarterly updates are done in January, April, July, and November of each year.
    The quarterly merges are scheduled in cycles 05, 15, 31, and 44.

  2. The DM–1 also receives weekly updates from the SSA and the IRS processing.

  3. Programming determines the validity of the data on the DM–1. It "directs" transactions to either the valid or the invalid segment of the IMF.

    1. Transactions that match the TIN/Name Control on the DM–1 File are directed to the valid segment of the IMF for posting.

      Note:

      IMF Valid TINs display without an asterisk.

    2. Transactions that successfully obtain a proximal match on the IRS valid name control file are directed to the valid segment of the IMF for posting. See IRM 3.13.5.12 for additional information on proximal matching.

    3. If the TIN and/or Name Control were added this quarter, the account is valid. However, these transactions are directed to the invalid segment of the IMF for posting until the quarterly merge is completed.

  4. The DM–1 file may display/record more than one name control for a TIN.

    Reminder:

    IMF does NOT move VALID IMF accounts to the INVALID side of IMF due to the quarterly merges.

3.13.5.14  (01-01-2015)
National Account Profile (NAP)

  1. The NAP contains information received from several sources. The sources of information are as follows:

    • Data Master One (DM–1) file

    • Social Security Number (SSN) file

    • Employer Identification Number (EIN) file

    • Employee Plan Master (EPMF) file

    • Cross Reference (XREF) file

  2. The NAP provides taxpayer entity information for the primary taxpayers on the IMF, BMF (SSN/ITIN and EIN) and EPMF. The NAP contains spouse and dependent cross-reference information (when applicable).

  3. If any of the name control(s) listed matches the taxpayer name controls (for the specific taxpayer period) and the TIN, the taxpayer's account will attempt to post during the next quarterly merge.

    1. SSA Name Control(s)

    2. ITIN Name Control

    3. New SSA Name Control(s)

    4. IRS Valid Name Control(s)

    5. Adoption Name Control

      Note:

      SSA name controls displayed on CC INOLES are NOT listed in chronological order.
      If any name control(s) listed on the SSA, ATIN or ITIN name control match, the taxpayer's account will attempt to post to the valid side of IMF.
      The posting to the VALID side will be completed after the correction transaction codes posts, or; after upon completion of the DM-1 quarterly merge.

  4. A primary taxpayer may file using an ATIN. However, more often ATINs are used for dependents.

3.13.5.15  (01-01-2015)
Weekly NEW SSA Name Control (N/C) Indicator Files

  1. The IRS receives weekly tapes from SSA containing all the name controls and SSNs assigned or updated for the one week period. These updated records display beside the "NEW SSA N/C" field as shown on CC INOLES.

    If... Then...
    taxpayer's account is already established on the invalid segment with matching TIN and name control, Transaction will post.
    taxpayer's account is already established on the invalid segment with a different TIN and name control, Transaction will not post.
  2. In addition to the weekly SSA records, IMF also completes the same matching process on taxpayer accounts that were made IRS-valid.

  3. When the quarterly DM-1 merge is completed, all accounts with "NEW SSA N/C" indicators turned "on" will be turned "off" . The accounts that resided on the invalid segment are validated against the DM–1 File.

    If... Then...
    Match is obtained taxpayer's account attempts to move to the valid segment of IMF.
    No match is obtained taxpayer's account is returned to the invalid segment of IMF.
  4. When a transaction finds a match on the DM–1 file with a "NEW SSA N/C" indicator present, the transaction will attempt to post to the valid side/segment of IMF.

  5. It is important to note that before an IMF entity notice is generated, the "NEW SSA N/C" indicator is checked.

  6. IF the account is considered invalid but the input name control matches the "NEW SSA N/C" , the taxpayer WILL NOT receive entity notices and their refund (if applicable) WILL generate.

  7. Taxpayer accounts with the "NEW SSA N/C" literal may be valid accounts residing on the invalid segment of IMF. However, all NEW SSA N/C, IRS VALID, ATIN and ITIN accounts reside on the invalid segment until completion of the quarterly DM–1 merges.

    Note:

    The quarterly updates of the DM-1 File are done in January, April, July, and November of each year.
    The quarter merges are scheduled in cycles 05, 15, 31, and 44.

  8. If the NEW SSA N/C indicator displays on a taxpayer's account with a valid SSN and the refund is being held due to the timing of the IMF quarterly update, thoroughly research the taxpayer's account.

    Note:

    Use CCs IMFOLT, IMFOLI, INOLET, INOLES, ENMOD, TXMOD and REINF to ensure the taxpayer is valid and the account has no outstanding issues and whether a refund is pending. Other research may be warranted due to any unique taxpayer-related issues encountered.

3.13.5.15.1  (01-01-2015)
NEW SSA N/C Indicator on CC INOLE

  1. Taxpayer accounts received from the Social Security Administration will display on CC INOLE with the new name control directly beside the "NEW SSA N/C" field.

  2. Taxpayer accounts corrected with a TC 016 (IRS Valid) display the taxpayer's IRS-valid N/C on CC INOLE. Initially, the assigned name control displays directly beside the "NEW SSA N/C" field. The IRS-valid name control continues to display beside the NEW SSA N/C field until after the quarterly merge is completed.

  3. Once the IRS-valid name posts (after the quarterly merge), the IRS-valid name control then displays on CC INOLE beside the "IMF N/C" field. See IRM 3.13.5.15 for additional information.

3.13.5.16  (01-01-2015)
Secondary Taxpayer Invalid SSN

  1. When a taxpayer files married filing joint (FSC 2), the secondary taxpayer is the taxpayer whose name appears on the second name line of the Form(s) 1040. The Secondary SSN account may reside on the invalid segment of IMF due to the following situations:

    name line does not match the Valid name controls shown on CC INOLE
    secondary SSN is invalid when matched against the DM-1 File
    secondary taxpayer files using a new/different surname with their return, payment, or declaration (TC 430)
    taxpayer names on the tax return are reversed from their previous years filing pattern
    DM-1 Quarterly merge has not occurred

    Note:

    Invalid conditions are denoted with an asterisk (*) after the SSN.

  2. If either taxpayer files their IMF Tax Return (FSC 2) and an invalid condition exists on their account, the personal exemption and/or EITC is not allowed for the taxpayer filing with the invalid condition.

  3. When a taxpayer files a joint return and they file using their married name (surname of their spouse) and did not contact SSA with an update, their account will post on the invalid side of IMF.

  4. Do not make changes to taxpayer account(s) or name(s) if the information they supplied does not match the information gathered through research. Correspond or communicate with the taxpayer and advise them to contact SSA to validate their name/SSN.

    Note:

    It must be noted that some taxpayers will complete the notice by communicating that their card still reflects their birth name, prior name(s), an adoptive name line, etc. and signs the notice including this name and/or prior names. Do not change the Master-File based information without the receipt of legal documentation as proof.

3.13.5.17  (01-01-2015)
IMF Automated Establishment of Secondary Taxpayers and Correction Procedures

  1. IMF completes a special process to establish the secondary taxpayer on IMF for all Married Filing-Joint accounts. IMF automatically separates the secondary taxpayer from the primary taxpayer account and establishes a separate account on IMF.

  2. You can identify the IMF-established secondary taxpayer accounts using CCs IMFOLE or ENMOD. The secondary taxpayer accounts established by IMF display with the following unique DLN:

    TC 000 displays with a DLN of XX263-001-88888-X
    XX indicates the File Location Code (FLC) of the campus or area office.

    Note:

    IMF does not establish secondary taxpayer accounts if any of the following conditions exist:

    Secondary SSN (S-SSN) is invalid or unavailable
    "DECD" is present in Secondary Name Line
    Primary SSN is the same as the Secondary SSN
    No spouse name indicated when the primary taxpayer filed using FSC 2 or 7
  3. These IMF-created secondary accounts may also display subsequent updates to taxpayer accounts. Examples of these subsequent TCs are as follows:

    • TC 013

    • TC 014

    • TC 971 with Action Code 050 (changes the Business Operating Division (BOD))

    Note:

    All of these subsequent TCs will also contain the unique DLN of XX263-001-88888-X.

  4. A very small portion of the taxpayer accounts that were established by IMF could cause:

    • Erroneous CP Notices

    • Incorrect establishment of taxpayer Name and Name Control

    • IMF Unpostable conditions

    Note:

    These accounts require corrections using TC 040 or TC 041 to correct the secondary taxpayer's account and to bypass NAP validations. See IRM 3.13.5.125 and IRM 3.13.5.126 for TC 040 and TC 041 instructions.

  5. If a TIN change is required to the secondary taxpayer's account who filed married filing jointly (FSC 2), a two-step correction process is needed. See IRM 3.13.5.116 and IRM 3.13.5.122 for additional information.

  6. Before correcting the taxpayer's account, thoroughly research their account using CC INOLET and/or CC INOLES to display the IMF Name Controls and SSA Name Controls.

    1. NUMIDENT transcripts are ordered through IDRS using CC MFTRA with Request Type "U" However, it takes approximately three days to generate and receive the transcripts from the campus print room. If employees have access to CONTROL D WebAccess (CTDWA), the NUMIDENT transcripts are available in approximately one day. Requests printed using CONTROL D can also be converted to a PDF file and may be forwarded to any employee working the case. See IRM 1.4.16, Accounts Management Guide for Managers, for additional information. IRM 1.4.16 contains information on viewing and/or printing reports. See IRM 2.3.32 for additional information on CC MFTRA.

      Note:

      Requesting the SSA information is especially important if it is difficult to determine if the taxpayer's Name Control was corrected due to a proximal match such as shown in the following example:

      IMF N/C SSA N/C
      BCAK BACK, MCPH
    2. If necessary, see IRM 3.13.5.12 for additional information on proximal matching.

  7. Use TC 040 to change name or TIN of the taxpayer's account that resides on the valid segment of IMF.

  8. The following Information may be needed to complete a TC 040:

    1. Name Control

    2. All name lines

    3. Year and TC 040 in the appropriate field(s)

    4. FSC

    5. New TIN, if appropriate

    6. Reason for the change in the REMARKS field.

  9. Use TC 041 to correct a name or only TIN of the taxpayer's account that resides on the invalid segment of IMF (if required, cycle delay the TC 041 for three additional cycles).

  10. The following taxpayer Information may be needed to successfully change to the invalid segment of IMF is as follows:

    1. New Name Control

    2. Primary name line

    3. Year name line

    4. TC 041

    5. FSC

    6. New TIN

    7. Description of changes in the REMARKS field

  11. TC 040 and TC 041 corrections do not go through the DM–1 validation process. Therefore, it is important to use TC 040 and TC 041 ONLY when IMF establishes taxpayers incorrectly or the taxpayer provides "proof" of their identity. The acceptable proof includes copies/originals of the following items:

    1. Marriage certificates clearly showing name change

    2. Divorce decrees clearly showing name change

    3. Legal documents clearly showing name change

3.13.5.18  (01-01-2015)
Social Security Administration (SSA) Requirements

  1. SSA issues SSNs to qualified applicants.

  2. SSA procedures require that all applicants must submit documentation to establish their age and identity if they are a U.S. citizen or a lawful alien.

    Note:

    SSA will issue letters/notices to communicate that they made an error on a taxpayer's Date of Birth (DOB) or their Date of Death (DOD).

    Reminder:

    If research shows that a taxpayer's erroneous DOD was removed or corrected, no further actions are required.
    If research shows the erroneous DOB was corrected, no further actions are required.

  3. Applicants must apply in person.

  4. If a change or replacement card is required, the applicant must also submit documentation before their request will be processed.

    Note:

    SSA does not correct taxpayer records or issue revised or SSN replacement cards due to IRS supplied information.

  5. It should be noted that SSA taxpayer name changes are not mandatory. The IRS can only suggest to the taxpayer to inform the SSA of their name changes. However when taxpayers inform the SSA of their name changes, weekly SSA name updates are received from the DM-1 File updates.

  6. If a taxpayer's account contains an erroneous DOD and they are not deceased, the SSA Form 2458 is required by the IRS before the inaccurate DOD can be removed from their account.

3.13.5.19  (01-01-2015)
IMF Taxpayer Identification Numbers (TINs) Formats

  1. The IRS uses four different types of TINs when processing IMF taxpayer accounts. They include:

    • Social Security Numbers (SSNs),

    • Individual Taxpayer Identification Numbers (ITINs)

    • Adoption Taxpayer Identification Numbers (ATINs)

    • Internal Revenue Service Numbers (IRSNs)

  2. All four TIN formats are included in IRM 3.13.5.20 through IRM 3.13.5.23.

3.13.5.20  (01-01-2015)
Social Security Number (SSN) Format

  1. SSA issues SSNs in the following format: XXX–(area), XX–(group), XXXX–(serial number).

  2. The Social Security Administration (SSA) does not assign SSNs with the first three digits of:

    • 000 (000-nn-nnnn)

    • 666 (666-nn-nnnn)

    • 900-999 ((900-999)-nn-nnnn)

  3. The SSA does not assign SSNs with zeroes in the fourth and fifth positions of the SSN format.

    • nnn-00-nnnn

  4. The SSA does not assign SSNs with zeroes in the last four positions of the SSN format.

    • nnn-nn-0000

  5. Prior to June 2011, the SSA did not assign SSNs with the following first three position of the SSN format:

    • 772-799 (772-nn-nnnn, 773-nn-nnnn, etc.)

    • 800-899 (800-nn-nnnn, 801-nn-nnnn, etc.)

  6. The SSNs in the following examples are invalid and were never issued through the Social Security Administration:
    000-XX-XXXX
    111-11-1111
    222-22-2222
    777-77-7777
    123-45-6789
    666-66-6666, etc.

    Reminder:

    Research is required to determine the taxpayer's correct SSN. If an SSN cannot be located, an IRSN or Individual Taxpayer Identification Number (ITIN) is required to process a taxpayer's payment or return.

3.13.5.21  (01-01-2015)
Individual Taxpayer Identification Number (ITIN) Format

  1. The ITIN display in a format similar to a SSN but will always begin with the number "9."

  2. The fourth and fifth numbers within an ITIN are assigned in the following unique numbering ranges:

    • 9nn-70-nnnn through 9nn-88-nnnn

    • 9nn-90-nnnn through 9nn-92-nnnn

    • 9nn-94-nnnn through 9nn-99-nnnn.

    Note:

    "89" and "93" are not used as the fourth and fifth numbers for ITINs but are reserved for other programs.

3.13.5.22  (01-01-2015)
Internal Revenue Service Number (IRSN) Format

  1. The IRSN format is in the same pattern as regular SSNs: XXX–XX–XXXX. However the IRSN will always begin with the digit "9" .

  2. The fourth and fifth digits of the IRSN typically signify what campus assigns the IRSN.

    Example:

    9nn-38-nnnn, assigned by the Andover Campus.

  3. When the original IRSN ranges are exhausted, the campus should begin using the expansion range allotted to their campus. See the following table to determine the origination of an IRSN assignment:

    IRSC Original Ranges for the 4th and 5th Digit Ranges Expansion Ranges for the 4th and 5th Digit Ranges
    Andover 08 38
    Atlanta 07 37
    Austin 18 06
    Brookhaven 19 01
    Cincinnati 17 02
    Fresno 89 10
    Kansas City 09 39
    Memphis 49 03
    Ogden 29 04
    Philadelphia 28 05
  4. The Temporary/Scrambled application does not use Area Offices (AOs) Codes when issuing IRSNs.

  5. Typically IMF Entity assigns IRSNs for the primary taxpayer.

3.13.5.23  (01-01-2015)
Adoption Taxpayer Identification Number (ATIN) Format

  1. The ATIN format is in the same format as regular SSNs: XXX–XX–XXXX.

  2. However, the ATIN will always begin with the digit "9" and the fourth and fifth digit will be "93" . The last four digits of the ATIN are assigned in ascending sequential order. Example of an ATIN format: 9XX–93–XXXX.

  3. ATINs are being completed at the Austin Submission Processing Center (AUSPC).

  4. For additional information on ATINs, see IRM 3.13.40, Application for Tax Identification Number for Pending U.S. Adoptions.

3.13.5.24  (01-01-2015)
Transaction Codes Used to Merge Accounts

  1. When an IMF taxpayer account moves from one TIN to another TIN or from one segment of master file to the other segment of IMF (e.g., valid/invalid), it resequences or merges the account.

    Note:

    Never attempt to merge two accounts when both accounts ("from" and "to" ) have a TC 150 present for the same tax period. For additional information, see IRM 21.6.2, Adjusting TIN-Related Problems.

  2. Only the following entity transaction codes (TCs) resequence taxpayer accounts:

    TC 011 Input to change the TIN on an account on IMF.
    This transaction is systemically compared against the DM-1 file.
    TC 013 Input to change the name on the account.
    This transaction is systemically compared against the DM-1 file.
    TC 016 Input to validate an invalid name control
    This transaction name is not compared against the DM-1 file and bypasses NAP checks.
    TC 040 Input to change a TIN or name on an account to the valid segment.
    This transaction is not compared against the DM-1 file and bypasses NAP checks.
    TC 041 Input to change TIN or name of an account to the invalid segment.
    This transaction is not systemically compared against the DM-1 file and bypasses NAP checks.
  3. The following contains transaction code exception processing for specific IMF cycles:

    Exception:

    During cycles 48 through 04, TC 011, TC 013, TC 040 and TC 041 can be input. However, the posting of the transactions will not occur until after cycle 04 or later.

    Caution:

    Individual Master File (IMF) will not post the following Transaction Codes (TC 011, TC 040, TC 041 and TC 013) during cycle 24. These specific TCs will resequence and the posting will be delayed until cycle 25.
    These specific TCs (TC 011, TC 040, TC 041 and TC 013) input during cycle YYYY24 day 1 through 5 will resequence until cycle YYYY25.

  4. Resequencing of accounts is accomplished by one of these two methods:

    • Automatic IMF resequencing

    • Input of an entity transaction

  5. See IRM 3.13.5.108 for additional information on Posting Delay Codes (PDCs).

3.13.5.25  (01-01-2015)
Scrambled TIN Cases

  1. A scrambled TIN case occurs for the following conditions:

    1. Returns are filed by two or more taxpayers using same TIN.

    2. An accurate TIN for the taxpayer(s) cannot be determined.

      Note:

      If a correct TIN is located for either taxpayer, the account must be separated. See IRM 21.6.2, Adjusting TIN-Related Problems, for detailed instructions.

    3. When two individuals with the same or similar names receive the same SSN from the SSA.

  2. The following two digit scrambled indicators pertain to scrambled SSN cases:
    Some of the indicators are no longer input on newly processed cases. These obsolete indicators are duly noted.

    Indicator Used when:
    01 Completed Letter 239C questionnaire received from at least one taxpayer. Form 3857 sent to SSA.

    Note:

    This indicator is no longer input on newly processed cases.

    04 Mixed Entity
    09 Scrambled indicator needs to be turned off
    10 Account is being scrambled. Form 3857 is not sent to SSA
    12 True/Default True Scrambled SSN case. Form 3857 sent to SSA
    13 SSN not valid for federal tax purposes
    20 Case closed, no Letter 239C questionnaire received or SSA response is insufficient to resolve scrambled SSN condition.

    Note:

    This indicator is applicable only for cases worked per prior to 2009.

    21 Case closed, scrambled SSN condition resolved with SSA Form 3857 response or an SSA SSN verification printout

    Note:

    The SSA SSN verification printout is no longer sufficient proof of ownership of the SSN. SCI 21 is applicable for cases worked per prior to 2009.

    22 Case closed, scrambled SSN condition resolved with SSA Form 3857 response. Information indicates case was a True (non-default) scrambled SSN
    23 Case closed with SSA Form 3857 response which indicates SSN is not valid for federal tax purposes

    Note:

    This indicator is applicable only for cases worked per prior to 2009.

    24 Reserved
  3. Every effort must be made to locate a correct TIN for both taxpayers:

    1. Research using CCs IMFOL, RTVUE, INOLE, ENMOD, NAMES, NAMEI, FINDS and REINF, etc.

    2. If needed, request a copy of the taxpayer's Social Security record/NUMIDENT transcript.

      Note:

      The NUMIDENT transcript is for internal use only and must never be sent to the taxpayer.

    See IRM 3.13.5.93 for additional information.

  4. If you discover the case is a scrambled case, do not take any further action.

    1. Complete a Form 3465, Adjustment Request, and forward the case to the appropriate Customer Service Representative (CSR) in Accounts Management.

    2. Follow their directions regarding the resolution. The REMARKS section of the IDRS command code used must reflect, "coordinate with Accounts Management."

    3. Route scrambled cases requiring statute action to the Statute function.

  5. Many scrambled cases are identified while working the following types of cases:

    1. CP36s

    2. Duplicate filing of a return

    3. Taxpayer inquiries

    4. NOMRG transcripts

    See IRM 21.6.2, Adjusting TIN-Related Problems, for further information.

3.13.5.26  (01-01-2015)
Mixed Entity/Multiple Filing Conditions

  1. A multiple filer condition or (Mixed Entity) occurs when more than one individual files using the same TIN. Any of the following conditions could cause multiple filing issue:

    • Use of an SSN by more than one unauthorized individual (invalid segment of IMF).

    • One or two individuals filing two different tax returns for same tax period with same TIN.

    • Family members using the same individual TIN in error (valid segment of IMF).

  2. When it is determined that multiple filers are involved in a case, see the following table:

    If the account resides on... Then...
    Invalid segment of IMF File and they filed as the primary filer a. Secure both documents (e.g., returns) from files.
    b. Issue "C" letters to each individual informing them to obtain a valid TIN, and/or file Form W–7.
    c. Suspend the case for 45 days or until a reply is received from one or both of the taxpayers involved.
    d. If no reply, coordinate with Accounts Management.
    Valid segment of IMF a. Take no action
    b. Coordinate the case with the appropriate TE/unit in Accounts Management.
    c. Follow their directions regarding resolution.
    d. Annotate on IDRS in the REMARKS section, "coordinate with Accounts Management. "

3.13.5.27  (01-01-2015)
Entity Changes from Oral Statements

  1. All entity changes/corrections made due to oral statements from taxpayer(s) or their authorized representative(s) must include the required elements outlined in IRM 21.1.3, Operational Guidelines Overview.

  2. When contacting a taxpayer by telephone, use the authentication disclosure procedures found in IRM 21.1.3.2.3, Operational Guidelines Overview, Required Taxpayer Authentication.

    Note:

    See IRM 21.1.3, Operational Guidelines Overview.

  3. When contacting taxpayer(s) by telephone, you must be sure you are speaking with the taxpayer or authorized representative before disclosing tax information. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3, Operational Guidelines Overview, Required Taxpayer Authentication and IRM 21.1.3.2.4, Operational Guidelines Overview, Additional Taxpayer Authentication. Also, before leaving a message on a taxpayer's answering machine, review IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail.

  4. Source Documents are not always required to complete minor entity changes (examples: obvious address misspellings, corrections to addresses, typographical errors on taxpayer names, etc.) if you are absolutely sure you are speaking to the taxpayer or their authorized representative. Example taxpayer says their address is 14329 Bird Street instead of 1432 Bird Street. These type of address changes are recommended (after authenticating the taxpayer).

    Note:

    See the taxpayer authentication procedures in IRM 21.1.3, Operational Guidelines Overview, whenever you must speak to a taxpayer by telephone or face-to-face contact.

  5. See IRM 3.13.5.28 and IRM 3.13.5.28.1 for instructions on processing oral address changes.

3.13.5.28  (01-01-2015)
Oral Statement/Telephone Contact Address Change Requirements

  1. Background:
    Clear and concise oral notification is a statement made by a taxpayer in person or directly via telephone to a Service employee who has the ability to access a taxpayer's account to complete research and complete an address change. If the taxpayer or their authorized representative requests an address change, they must be able to provide the information in paren (5) to authenticate their identity.

    Note:

    The TE/CSR must authenticate the taxpayer/authorized representative prior to completing the address change.

    Caution:

    Due to the high level of identity theft, it is extremely important to ensure changing/updating/correcting of a taxpayer's address is warranted and necessary. To ensure you are speaking directly with the correct taxpayer(s) or their authorized representative see IRM 21.1.3, Operational Guidelines Overview, for required taxpayer authentication guidelines.

    Reminder:

    When updating taxpayer addresses through oral statements, advise the taxpayer to change their address at their local United States Postal Service (USPS).

  2. Never complete an address change when the address information is received from an "unauthorized" third party.

  3. If an address change is necessary and the taxpayer requests the address change using an oral statement, the address change is input using IDRS/IAT. This requirement is based on Rev. Proc. 2010-16 (superseded Rev. Proc. 2001-18).

  4. If either taxpayer reports a new address for their married filing joint account, inquire if the address change is for BOTH taxpayers. When the address change involves both taxpayers sharing the same address, update both addresses. If only one taxpayer is changing their address, update the appropriate account and leave the other taxpayer address alone. If CC INCHG/IRCHG requires the input of a filing status code, do not change the taxpayer's FSC. Use the filing status currently on the account.

  5. In an effort to document who is requesting an address change, the TE must enter the whether the address change was submitted by the primary, secondary or both taxpayer(s) or by an authorized third party. Information such as which taxpayer made the request, the name of the third party, the authorized third party's title (if present), and phone number (if present) in the REMARKS field when using IAT address tool or IDRS. See IRM 3.13.5.48 for information on the required remarks when completing an address change. Use Command Codes (CCs) ENMOD/ENREQ/INCHG/BNCHG via AMS/IDRS or Integrated Automation Technologies (IAT), to complete the address change request.

    Reminder:

    Once a taxpayer indicates they have an address change, determine whether the address change is permanent or a temporary address change (e.g., student at college).
    If taxpayer indicates a temporary address change, do not update the address on master file.

    Exception:

    If a Large Corporation Indicator (LCI) is on the account, do not change the taxpayer's address using oral authority. Advise the taxpayer that a Form 8822-B is necessary.

  6. In order to complete an address change through telephone contact, the taxpayer or their authorized representative must be able to provide the following information:

    1. Taxpayer's full name

    2. Secondary taxpayer's full name, if applicable

    3. Prior address or their Last Known Address (LKA)

    4. SSN(s), ITIN, and/or EIN

    5. New address information

    If the taxpayer or their authorized representative is unable to provide all the items from above, they must be able to provide two additional items prior to completing the address change such as:

    1. Spouse's DOB

    2. Child's/Children DOB

    3. Amount of income reported on the last return or tax due on their return

    4. Employer(s) shown on taxpayer's Form W-2

    5. Financial institutions shown on taxpayer's Form 1099-INT or Form 1099-DIV

    6. Numbers of exemptions claimed on last return or on the return in question

    7. Tax preparer information (paid/unpaid) if any

    8. Expected refund amount (within $100) unless computed by IRS

    9. Any other verifiable information from return/account

    This information is available from the taxpayer's return and/or filing history. See IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional taxpayer Authentication, for a complete list of the authentication items. See IRM 3.13.5.28.1 for additional information.

    Note:

    It is important to "repeat" back the new taxpayer address to confirm the new address before completing the update.

  7. If the taxpayer or their authorized representative CANNOT provide the required information, direct them to the IRS web page at IRS.gov If they do not have access to the web page, mail a Form 8822. Do not change the taxpayer's LKA in these circumstances.

  8. See IRM 3.13.5.48 for instructions on "written" address changes.

  9. See IRM 3.13.5.50 if either the primary and/or secondary taxpayer are establishing a separate address and the address change was communicated in writing.

  10. For ITIN oral address procedures, see IRM 3.21.263.4.15, IRS Individual Taxpayer Identification Number (ITIN) Real Time System (RTS), for additional information.

3.13.5.28.1  (01-01-2015)
"Oral" Statement/Telephone Contact Address Change Requirements for MFJ Accounts

  1. If the primary or secondary taxpayer on a MFJ account reports an address change, use the following table:

    If the new address is reported by... And... Then...
    1. Primary Taxpayer Secondary taxpayer current address was updated on a later cycle than their last filing as a MFJ taxpayer a. Complete an address change on the primary taxpayer's module
    b. Take no action on secondary taxpayer's account
    Secondary taxpayer current address wasn't updated on a later cycle than their last filing as a MFJ taxpayer Complete an address change on both taxpayer(s) modules
    Secondary taxpayer does not have an account on MF a. Complete an address change on the primary taxpayer's account.
    b. Establish the secondary taxpayer using the address information provided by the primary taxpayer. See IRM 3.13.5.115 for additional information.
    2. Secondary Taxpayer and secondary taxpayer is established on MF Address change is for both taxpayers Complete an address change for both taxpayer accounts
    Address change is for secondary taxpayer only a. Complete an address change for the secondary taxpayer's account
    b. Take no action on primary taxpayer account
    IMPORTANT: Do not change either taxpayer's Joint Filing Status Code (FSC 2) when completing address changes. If an FSC is necessary to complete the address change on CCs INCHG/IRCHG, use the FSC currently on the account.

    Reminder:

    When completing an address change, employees must enter and include the requestor's name, title (if applicable) and phone number (if present) in the REMARKS field of the transaction whether using IAT or IDRS. See IRM 3.13.5.48 for the required remarks when completing an address change.

3.13.5.29  (01-01-2015)
Non-Entity Related and Criminal Investigation (CI) Cases Received in the Entity Control Unit (ECU)

  1. If you receive non-Entity issues such as manual refunds, erroneous refund issues, etc. and are not directly related to Entity correction issues, please refer to the specific Part 21 (Customer Account Services) IRMs.

  2. Coordination may be required with the Account Management (AM) area for resolution and/or transference of the case to the AM Function.

  3. Do not do an Entity action on Criminal Investigation (CI) cases including Unpostable Cases. Route any case with a Z- or -Z to Criminal Investigation (as shown on CCs IMFOLI or TXMODA).

  4. If disposition is not known and CI does not want the freeze released, close the case "no follow-up" using the code "NOFOLUP–CI" on IDRS.

  5. See IRM 21.5.6 Freeze Codes or Document 6209, IRS Processing Codes and Information, if additional information is needed.

3.13.5.30  (01-01-2015)
Standard Abbreviations

  1. Use the following information if you need to abbreviate taxpayer-supplied information to fit within the space limitation:

    NAME/or PHRASE ABBREVIATION
    Trust TR
    Under the will of, U/W, under will UW
    Under agreement, U/A, Under agreement with UA
    Dated Jan. 16, 2011 01162011 (do not enter date/dated or the alpha month).
    Irrevocable Trust IRRV TR
    Revocable Trust RVOC TR
    Family Trust FAM TR
    Marital Trust MRTL TR
    Funeral Trust FNER TR
    Inter-Vivos INTRVS
    Non-exempt Charitable Trust NECT
    Revocable RVOC
    Testamentary TEST
    Under Trust Agreement UTA
    Insurance INS
    Charitable Remainder Unitrust CRUT
    Charitable Remainder Annuity Trust CRAT
  2. If the taxpayer has an "In Care Of" Name Line, use the "IMF-Continuation-of-Primary-Name-Line" to enter the information. If space allows on the line, include any designated titles.

    Note:

    "In Care Of" is entered in IDRS as "%" , for example, % John Birch Guardian (GDN).

    See the following table for the title and acceptable abbreviations:

    Title Abbreviation
    Administrator ADM
    Charitable Remainder Annuity Trust CRAT
    Charitable Remainder Unitrust CRUT
    Commissioner COMM
    Conservator CONS
    Co-tutor, Co-tutrix*
    *Civil law concept similar to Guardian
    COTUTOR
    COTUTRIX
    Custodian CUST
    Executor/Executrix EX
    Fiduciary Personal Representative FID
    for the Benefit of, FBO FBO
    Guardian
    This may include the name of parent signing for a minor taxpayer.
    GDN
    Independent Conservator IND CONS
    Personal Representative PER REP
    Power of Attorney POA
    Successor SUCC
    Trustee TTEE
  3. If the taxpayer attempts to add an "In Care Of" name when making an address change, add this name on the secondary name line when completing an address change. See IRM 3.13.5.59 for additional information.

  4. When establishing a IMF taxpayer with a Power of Attorney (POA), Designated Agent, Executor/Executrix, In Care Of name, etc., and their address contains a Post Office Box (PO Box) and a street address, use the Continuation-of-Primary-Name (Line 2) field for the POA, Designated Agent, Executor/Executrix, etc. information and enter the PO Box.

    Reminder:

    When entering the tax year information (as displayed on CC INCHG/IRCHG), enter the year you wish the address change to become effective or the current tax period.

  5. This type of Entity update will generate as a TC 013 instead of a TC 014.

3.13.5.31  (01-01-2015)
Form 56, Notice Concerning Fiduciary Relationship

  1. Form 56, Notice Concerning Fiduciary Relationship, is filed to notify the IRS of a fiduciary relationship. There is no restriction with regard to the information a fiduciary can receive for the entity for whom he or she is acting. A fiduciary assumes the powers, rights, duties and privileges of the taxpayer(s), until notice is given that the fiduciary capacity is terminated. See IRM 3.13.5.30 for the acceptable title abbreviations.

    Caution:

    There are different versions of the Form 56 that may be received. If a prior version (earlier than 12/2007) is received, the earlier versions must contain the required elements for processing in order to be complete.

    Reminder:

    If there are two titles shown on the Form 56, input the title written next to the signature (when available). If there is no title next to the signature, choose one of the titles listed.

    Note:

    If the fiduciary title is not included on the Form 56, review all of the attached documentation/ legal documents (if applicable).

  2. When reviewing Form 56, if you notice the fiduciary is appointing a high ranking IRS or Treasury employee or other high ranking governmental official or him/herself as a fiduciary, refer these cases to Frivolous Return Program (FRP). See IRM 3.13.5.5 for additional guidance.

    Caution:

    If, for any reason, an IRS employee has concerns regarding the authenticity of a fiduciary, requester or titled representative, the employee may request the fiduciary supply supporting authority before disclosing taxpayer information. Use the 0177C letter and request the legal documentation.

  3. An Identification (ID) theft indicator on a taxpayer's account does not require routing to AM. However, if there are suspicious patterns, duplicate information, etc. on the application/account, ask your lead for guidance.

  4. If the Form 56 is requesting an IMF and BMF entity change, process the IMF Entity action first, before transshipping to the Ogden or Cincinnati campus. Do not transship the case to a BMF campus if you determine the BMF entity change was already made.

    Note:

    Leave an action trail of the IMF transactions completed and your TE stamp (when required by your campus).

    Note:

    If the taxpayer provides an EIN in the Identifying Number line of the Form 56, consider the Form a BMF Entity change request and transship to the appropriate business campus.

    The following types of Form 56s must be completed in the following manner:

    If... And... Then...
    a. Form 56 received with SS-4 attached the address is located in one of the 50 states or District of Columbia, forward to the EIN operations in Cincinnati
    there is no legal residence, principal place, principal office or agency in any state forward to the EIN operations in Ogden
    b. BMF international filer requests a BMF entity change forward to Ogden campus
    c. BMF domestic filer requests a BMF entity change forward to Cincinnati campus
    d. Form 56-F, Notice Concerning Fiduciary Relationship of Financial Institution   forward to the Ogden or Cincinnati ECU
    e. Form 56 there is no account on IMF or no TC 150 exists for the taxpayer
    1. Underline the first four letters of their name control

    2. Write Alpha and any other audit trail information required in the lower left of Form 56

    3. forward Form 56 and supporting documents/forms to Files by using a Form 3210

    f. Form 56 with Illinois Land Trust returns listed in Part III forward to Ogden ECU
    no returns are indicated in Part III 1. underline the first four letters of their name control
    2. forward Form 56 and supporting documents/forms to Files.
    3. use a Form 3210 to be filed in the Alpha file.
    g. Form 56 (Revision 12/2007 or prior) Part III indicates the taxpayer is filing for delinquent income taxes under Offer and Acceptance forward to the Fraud Detection Center

    Caution:

    An EIN should not be assigned due to the submission of a Form 56.

  5. If the taxpayer/fiduciary submits a Form 56 and they indicate an address change is needed (Part III, Line 5 (version 12/2007 or prior)) or (Part 1, Section B, item 6 (12/2011)) and did not provide a Form 8822 for an address change, correspond to the fiduciary/taxpayer. Use a 0104C letter and attach a Form 8822 and send back the Form 56. Use the fiduciary's address when corresponding.

    Caution:

    DO NOT UPDATE/CHANGE the taxpayer address using their fiduciary address unless a Form 8822 or Form 8822-B is included with the Form 56.

  6. If the IMF account is inactive (MFR 08) and a name change is needed, a name change (TC 013) or address change (TC 014) can be completed WITHOUT re-opening the account. If non-Entity changes are required and the account is inactive (MFR 08) and the taxpayer is DECEASED, re-open the account, monitor the case and re-close the case after the non-Entity transaction posts.

    Caution:

    These accounts must be re-closed to prevent ID Theft.

    Reminder:

    The Estate of a deceased taxpayer can file an individual tax return for the year the taxpayer died. Example: Taxpayer deceased July 7, 2014. Deceased taxpayer is allowed to file a 2014 tax return.
    If a tax return is needed for a tax return after the year of death, a Form 1041 must be used, rather than a Form 1040.

  7. When corresponding for missing information from the fiduciary and the taxpayer is deceased, correct the address on the letter from "DECD" to "Estate of ..." .

  8. If the IMF account is inactive (MFR 08) and the taxpayer IS DECEASED, a name change (TC 013) can be completed WITHOUT reopening the account.

    1. If the taxpayer is deceased, use the Date of Death (DOD) unless the date of appointment is earlier.

    2. If the taxpayer is not deceased use the date of appointment.

      Caution:

      Do not update an account past the year of the taxpayer’s death.

      Reminder:

      If the date of appointment is not available, use the current tax filing year.

      Caution:

      Do not add a DOD to a taxpayer account, without copies or original documents or if a DOD is shown on the taxpayer's account.

  9. Review the entire document and any attachments and use IDRS/IAT to locate missing information prior to corresponding.

    Example:

    Editorial remarks "Detached 201412 1040" edited in red.

  10. A taxpayer may be an individual, trust, estate, partnership, association, company or corporation. This includes pension and 401(k) plans.

  11. When a paper Form 56 is received, the following information is required:

    • Taxpayer name line information

    • Taxpayer's address

    • Identifying number (SSN, ITIN or EIN)

    • Fiduciary name and address

      Reminder:

      If the taxpayer(s) address is missing, use the fiduciary's address to correspond for any missing information. If the fiduciary address is missing, contact the fiduciary by telephone when possible.

      Note:

      If the fiduciary address is missing, return the Form 56 back to the taxpayer.

    • Title of Fiduciary (if available)

    • Signature of Fiduciary

    • Tax Forms to be filed

  12. If you cannot locate the missing information, with the exception of the LKA, use the fiduciary-supplied documentation/attachments or the taxpayer's account to complete the processing of the Form 56. Use a Letter 0177C to correspond. Send the correspondence to the fiduciary unless the fiduciary's information is missing. In these instances send the correspondence to the taxpayer for the following:

    1. missing signature

      Exception:

      A facsimile, photocopy and/or stamped signature is acceptable as a substitute for an original fiduciary signature. A letter signed with a stamped signature under the "Penalties of Perjury" portion also indicates the person is approved to sign the Form 56. A copy of the letter must be attached to each Form 56 and retained for inspection.

    2. missing taxpayer name

    3. no indication that the taxpayer is deceased (if applicable) or the fiduciary supplying a Date of Appointment, court documentation, etc.

  13. If a decedent case has previously been identified, the account should contain one or more of the following:

    1. DECD in the name line

    2. Date of Death on CC INOLES

    3. TC 540 on CC TXMOD or CC IMFOLT for the year of death

    4. Mail File Requirements (MFR 08) on CC ENMOD

  14. It is acceptable to use the Authority, date of appointment or taxpayer's DOD to complete the processing of the Form 56 prior to corresponding.

    Note:

    If DOD is not provided but the taxpayer's DOD is shown on CC INOLE, use the DOD shown on CC INOLE when needed.


    Use the following chart to determine the YEAR-NM-LINE.

    If Revision Date is... And... Then...
    a. 2007 Fiduciary enters a date in Part II, Line 1(a)(2) Enter taxpayer's DOD
    b. 2007 Fiduciary enters a date in Part II, Line 1(b)(2) Enter fiduciary's year of appointment
    c. 2007 Part III, Section A, Line 4 Enter the years indicated

    Note:

    This may require multiple name line updates.

    d. 2011 Fiduciary enters a date in Part I, Line 2(a) Enter taxpayer's year of death
    e. 2011 Fiduciary enters a date in Part I, Line 2(b) Enter fiduciary's year of appointment
    f. 2011 Part 1, Section B, Line 5 Enters the years indicated.

    Note:

    This may require multiple name line updates.

    Caution:

    If the taxpayer is deceased, only input DECD in the name line for the year of death.

  15. If the Form 56 does not include the specific returns, use the following information to make this determination:

    If... Then...
    1. SSN/ITIN is entered in Part I of Form 56 Edit "Form 1040" in the appropriate field of Form 56.
    2. EIN is entered Edit "Form 1041" in the appropriate field of Form 56.
    3. Word "gift" is entered Edit "Form 709"
    4. Word "estate" is entered Edit "Form 706"
  16. If the IMF account is inactive (MFR 08) and the taxpayer IS DECEASED, a name change (TC 013) can be completed WITHOUT reopening the account. See IRM 3.13.5.120 for additional information.

    1. If the taxpayer is deceased, use the DOD unless the date of appointment is earlier.

    2. If the taxpayer is not deceased use the date of appointment.

      Caution:

      Do not update an account past the year of the taxpayer’s death.

      Reminder:

      If the date of appointment is not available, use the current tax filing year.

      Caution:

      Do not add a DOD to a taxpayer account, without copies or original documents or existing DOD information on the taxpayer's account.

3.13.5.31.1  (01-01-2015)
Termination or Substitution of Fiduciary Relationship (Revision 12/2007 or prior)

  1. If the fiduciary notifies the IRS that (either through correspondence or Form 56 by checking the termination block in Part IV, Section A) that the fiduciary relationship has terminated or they revoked their relationship, update the account as follows:

    1. If the account is on the retention register, take no action.

    2. Once the account is terminated, follow the disposition procedures.

  2. Review the Form 56 to determine if the Total Revocation Section of Form 56 is completed.

    1. If the fiduciary is no longer authorized for the taxpayer, remove the fiduciary name.

    2. If the "Substitute Fiduciary" section is completed, establish this fiduciary name ONLY as requested.

3.13.5.31.2  (01-01-2015)
Termination of Fiduciary Relationship (Revision 12/2011)

  1. Information has been provided on the IRS.gov for the Form 56 that instructs the fiduciary/taxpayer to write "TERMINATE" in red capital letters across the top of a previously filed Form 56 or to submit a new Form 56. The Form 56 must be completely filled out and signed.

  2. When Form 56 is received with TERMINATE/Terminate/terminate written in any color of ink, remove the fiduciary name and/or title from the taxpayer's account.

  3. If a Form 56 includes any court orders or documentation/paperwork that terminate the fiduciary relationship, remove the fiduciary name and/or title from the taxpayer's account.

3.13.5.31.3  (01-01-2015)
When to Use Fiduciary or "In Care Of" Name

  1. The following is useful in determining whether to use the Fiduciary or the "In Care Of" name as the IMF taxpayer's second name line information. If the Fiduciary/In Care Of name line includes a designated title (example: Thomas Cardinal, Trustee), you must always enter the correct abbreviation of their title (if space allows). If the fiduciary title information is not supplied in Part I of the Form 56, review entire Form 56 and any attached documentation (including legal documents) to determine the appropriate fiduciary title.

    If Form 56... And... Then...
    1. Contains a fiduciary's name only   add fiduciary's name information as the secondary taxpayer name line
    2. Contains a fiduciary's name and an "In Care Of Name" name listed on CC CFINK matches Fiduciary's name add fiduciary's name as secondary name line
    name listed on CC CFINK matches the "In Care Of Name" , add this name as secondary name line
    name listed on CC CFINK is different than fiduciary's or In Care Of Name use fiduciary's name as secondary name line
    Change the taxpayer's address if a Form 8822 is attached.
  2. See IRM 3.13.5.30 for information on these abbreviations.

3.13.5.31.4  (01-01-2015)
Processing Form 56 with Address Changes

  1. If a Form 56, Notice Concerning Fiduciary Relationship, is submitted that reflects a different address than the taxpayer's LKA, do not update the taxpayer's address unless a Form 8822 or Form 8822-B is included/attached.

  2. Complete the address change based on the submission of a completed Form 8822 or 8822-B.

  3. See IRM 3.13.5.49 for additional information on completing address changes.

3.13.5.31.5  (01-01-2015)
Disposition of Form 56

  1. Send Form 56 as a source document to Files using a Form 3210, Document Transmittal. Notate on the Form 3210 to file the Form 56 in the ALPHA File or per local procedures.

  2. If the taxpayer filed electronically, research for the electronically filed Form 8453 Electronically Filed (ELF) DLN. Send the information using a Form 3210, Document Transmittal, the Form 56, and any supporting document to Files indicating the information will be filed in the ALPHA File.


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