3.13.222  BMF Entity Unpostable Correction Procedures (Cont. 1)

3.13.222.29  (01-01-2014)
Unpostable Reason Codes (UPC) and Unpostable Resolution Codes

  1. Each unpostable record will be assigned a one digit Reason Code (RC) in addition to the three digit unpostable code.

    1. The RC is used to help identify the specific condition for the unpostable record.

    2. Reason Codes were assigned to conditions at random and are not indicative of the priority of the unpostable record.

  2. SCCF-URC 1 - Each unpostable record that is corrected with URC "1" is placed in manual status on the Submission Processing Campus Control Files (SCCF).

    1. If the document is to be re-input, enter Nullify Area Code 01, prepare Form 3893 and route to Batching for input. No further action is needed on the SCCF.

    2. If the document is not to be re-input, enter the appropriate Nullify Area Code and route document and Nullified Distribution List to the function that is responsible for the next action. See IRM 3.12.32, for further information.

  3. The valid range of Unpostable Resolution Codes are "A" , "B" , "D" , "0" (zero), "1" , "2" , "3" , "5" , "6" , and "8" . These resolution codes (except for URC 3) may be used by the Unpostable, Entity Control, Examination, Statute, and Criminal Investigation functions when using CC UPRES to resolve cases assigned to their areas.

    Note:

    Unpostable Resolution Code 3 is used during GUF 13 processing .

    1. URC "A" updates the unpostable name control to the Master File name control.

    2. URC "B" is used only for IMF and BMF. This code is used only as a special closure of open cases.

    3. URC "D" deletes (voids) transactions that do not need follow-up actions and is valid for all Master Files. A URC "D" removes the record from the SCUPMF. URC " D" does not open an IDRS control base.

    4. URC "0" allows the unpostable record to attempt to re-post with no change at Master File . URC "0" is valid for all Master Files.

    5. URC "1" allows transactions to be re-input. It is valid for all Master Files except CAWR and PMF. A URC " 1" removes the record from the Service Center Unpostable Master File (SCUPMF). These records are not corrected (at this time) for an attempted reposting at Master File as would URC "0" , "5" and "6" .

    6. URC "2" deletes (voids) transactions and is VALID for all Master Files. A URC "2" removes the record from the SCUPMF and opens an IDRS control base for most cases.

    7. URC "3" is used for Auto-Closures of With—Remittance (ISRP/RPS) documents due to a Tax Period change.

    8. URC "5" is used only for IMF when changing an error delay code and/or name control or name line at Master File and Trans Code is 140, 430, or 150.

    9. URC "6" is valid for all MF.

    10. URC "6" is used when changing any combination of name control, name line, adding or deleting a spouse and/or spouses SSN, TIN, TIN type, transaction codes, transaction date, plan number, error delay code, computer condition code, tax period ending for IMF, and the following nontaxable BMF and EPMF returns.

      Master File MFT Code Doc Code Form
      BMF 02 16 1120S
      06 65 1065
      15 23 8752
      36 81 1041-A
      37 83 5227
      44 91 990-PF
      50 71 4720
      67 90 990
      67 09 990EZ
      77 29 706GST
      78 59 706GSD

      Note:

      PMF will only accept TIN, TIN TYPE, and name control changes.

    11. URC "6" will also be used to change MFT for IMF and BMF, plan period for EPMF, and will allow a correction to the spouses SSN when the FSC is "2" , "3" , "6" , or " 7" .

    12. URC "6" can also be used for multiple corrections.

    13. URC "8" (reject) nullifies (removes) the record from the SCUPMF. Valid for all Master Files except CAWR and PMF.

  4. Never use URC 8 on:

    1. FTD - Doc Code 97, (use URC 1 if required); or

    2. Doc Code 47 or 54 (use URC 2); or

  5. In addition to individual closures using CC–UPRES , CC–UPBAT, is used for multiple cases using the same Resolution Code.

    Note:

    CC–UPBAT URC actions are not directly updated. They are generated into each resolved record during end of day (EOD) processing and if the case does not meet the reject criteria, then the case is placed into closed status.


  6. The system will not accept previously input remarks on URC "D" / "1" / "2" / "8" closures. Enter a "/" (slash) at the end of the remarks field if previous remarks are still valid with unpostable closing.

  7. The IDRS employee number is not needed in the remarks section. The employee number will automatically print on the Nullified Listing from the URC "D" or "2" closure.

    Note:

    The employee number displayed will be either the originator of the transaction, or the IDRS control number GUF has assigned to the record using the Nullified Area Code table .

    This number will also be used to open a control base on IDRS.

3.13.222.30  (01-01-2014)
Commonly Used Tax Classes

  1. The table below provides some commonly used tax classes. For additional information see Document 6209, IRS Processing Codes and Information.

    Business Master File
    MFT Code Doc Code Form Tax Class
    01 41 941 1
    02 10 1120 3
    02 16 1120S 3
    02 20 1120-POL 3
    05 44 1041 2
    06 65 1065 2
    07 60 1066 3
    10 40 940 8
    11 43 943 1
    13 54 8278 3
    14 49 944/PR/SS 1
    15 23 8752 2
    16 97/44 945 1
    02 92 1120-C 3
    34 93 990-T 3
    36 81 1041-A 4
    37 83 5227 4
    44 91 990-PF 4
    50 71 4720 4
    51 09 709 5
    52 06 706 5
    67 09 990EZ 4
    67 90 990 4
    77 29 706GS(T) 5
    78 59 706GS(D) 5

3.13.222.31  (01-01-2014)
Form 3893 Re-Entry Document Control

  1. Prepare a Form 3893 if it is determined that a document or a group of documents are nullified, DLN cancelled and must be re-input.

  2. This Form is prepared for each input block (or portion of a block) with the sum totals of the associated detail document(s). Attach it to the first document of the input block. Do not detach the Form when processing or filing. Figure 3.13.222-1

    Figure 3.13.222-1

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

    Form 3893

    • File Type Box, Check the appropriate box.

    • Box 1 Alpha/Numeric Block Control Number, Leave blank if routing to Batching in the Receipt and Control Branch.

    • Box 2 Document Locator Number (DLN), Enter the eleven digit block DLN. The complete DLN may be entered, but only eleven digits will be transcribed into the Block Header

    • Box 3 Batch Number, The batch number will be entered by Batching Unit in the Receipt and Control Branch.

    • Box 4 Document Count, Enter the number of documents attached to the Form 3893. All the Documents must have the same DLN except for position 12 and 13.

    • Box 5 Credit Amount, Enter the amount of the credit transaction. If more than one document with a credit transaction, then enter the sum of all of the credit amounts. Amounts may be from remittance returns, payment transactions, transfer documents, or adjustments.

    • Box 6 Debit Amount, Enter the total debit amount(s). This box must be blank if a credit amount is present. Debit amounts may be present only with Document Codes 24, 45, 48, 51, 54, 58, and 87.

    • Box 7 Transaction Code, Enter only when a Block Header Transaction Code is required. If a Block Header Transaction Code 840 is required then input a Document Code 45. If a Block Header Transaction Code 370 is required then input a Document Code 51 or 52.

    • Box 8 Transaction Date, Enter the received date for tax returns reviewed after the tax period due date.

    • Box 9 Header MFT Code, Enter only when required.

    Document Code Document MFT Header MFT
    17, 18, 19, 24, 34, 05, 06, 15 05, 06, 15
    45, 47, 48, 51, 52,    
    54, 58, 87    
    Document Code 70 or Remittance processing System (RPS) Various Same as document
    Payments 29 29


    • Box 10 Secondary Amount, enter the secondary transaction amount when required. If you fail to enter the secondary money amount on the Form 3893, but the amount is edited on the document then there will be a Block Out of Balance (BOB) condition.

    • Box 11 Re-input Source Code, check the R box if the transaction has already posted to the Master File (MF) and complete Box 19 Reprocessable Document, mark the N box if the input document was previously an unpostable and complete Box 18 Re-input Document, it must be open on the Service Center Control File (SCCF). Mark box 4 if the document has not posted or unposted in the MF and complete Box 18 Re-input Document.

    • Box 12 DLN Year Digit, enter the 14th digit of the Source Document DLN. If the year digit is not shown on the Source Document then determine the correct year digit from the color of the DLN or from other information on the source Document.

    Note:

    The colors listed below were used prior to 2006

    DLN Color Year Digit
    Green 0 or 5
    Purple 1 or 6
    Red 2 or 7
    Black 3 or 8
    Blue 4 or 9

    Note:

    Form 3893, Re-entry Document Control is used to re-input a return that has not posted to an account or module

    Note:

    Form 13596, Reprocessing Returns is used to reprocess a return to the correct account or module that had previously posted to the wrong account or module.

3.13.222.31.1  (01-01-2014)
Form 13596 Reprocessing Returns

  1. Prepare a Form 13596, Reprocessing Returns, to reprocess a BMF return. Complete all required blocks on Form 13596 as follows:

    1. Employee number and date should be entered in the first two boxes.

    2. Correcting the TIN – Enter the correct TIN, if the TIN shown on the return is incorrect.

    3. Correcting yearly or quarterly returns – Enter the correct period for the return being reprocessed. If correcting a yearly return, use the "YYYYMM" format. If correcting a quarterly return, use "YYYY" format and check the appropriate quarterly box.

      Caution:

      Some returns may have a tax period ending prior to the last day of the month. Use the following table to determine the correct tax period for the 52-53 week return.

      If the tax period ended Then
      Less than 7 days before the end of the month that month is the end of the tax period
      Within the first 4 days of the month the previous month is the end of the tax period

    4. CP 190 - box should be checked if reprocessing a TC 976 document as the original return.

    5. Reasonable cause - check the appropriate box if reasonable cause is being allowed.

    6. Remarks - enter any remarks, as needed to help process the return correctly.

      Note:

      Campuses currently using Form 13596, Reprocessing Returns, in lieu of Form 3893, must continue to use Form 13596 until further notice.

3.13.222.32  (01-01-2014)
Electronic Federal Tax Payment System (EFTPS) and Credit Card/Direct Debit Payments

  1. All EFTPS Operations are located at the Ogden Submission Processing Campus.

  2. EFTPS processed the first payment in November 1996. EFTPS will retain information on-line for current year plus 4 previous years.

  3. EFTPS payments have no paper records. The EFTPS DLN is a unique 15 digit number assigned by the financial agent and is researched via IDRS Command Code EFTPS. See IRM 2.3.70, Command Code EFTPS for additional information.

  4. IDRS Command Code EFTPS is not restricted. Command Code EFTPS may be used with any of the following three definers:

    DEFINER INPUT FORMAT DESCRIPTION
    E EFTPSEnnnnnnnnnnnnnnn Researches general information using the EFT number.
    R EFTPSRnnnnnnnnnnnnnnnnnn yyyy Researches the reference number and payment year to locate the EFTPS.
    T EFTPSTnnnnnnnnn mmddyyyy $$$$$$$$$$$$$$ (Decimal must be entered, and no commas) Researches the TIN, payment date, and money amount to locate the EFT number or reference number.

  5. To determine whether the payment was made by Direct Debit or Credit Card, research the 4th (fourth) digit of the EFT-TRACE-NUM field to identify the payment method. E-file Direct Debit = 0 Credit Card Payment = 6

  6. Electronic Funds Transfer (EFT) Number - The financial agent assigns a 15 - digit EFT number. The EFT number is a unique identifier and is used to research payments on the master file and IDRS. Do not use the Document Locator Number (DLN) to perform research on EFTPS transactions. The EFT number is configured as shown in the following table:

    Position Name Description
    1 Financial Agent (FA) ID Number
    • 2 -Bank of America

    • 3 - Treasury Offset Program

    • 4 - SSA Levy Program

    • 5 - RS-PCC

    2 Payment Method
    • 0 - E-file Debit

    • 1 - ACH Credit

    • 2 - ACH Debit

    • 3 - FR-ETA

    • 4 - (Reserved)

    • 5 - Levy

    • 6 - Credit Card

    • 7 - Online

    • 8 - Railroad Retirement Board (RRB) Link

    • 9 - Government Payment (FEDTAX, Federal Payment Levy Program or SSA Levy)

    3 Combined Payment Indicator see table in (4) below
    4 - 7 Year Digit/Julian Date Year digit plus 001 - 366. If overflow, 401 - 766 may be used. The date that the EFT number was assigned.
    8 - 9 Bulk Provider Number See table in (4) below
    8 - 15 (10 - 15 for bulk providers) EFT Sequence Number Randomly assigned number

3.13.222.33  (01-01-2014)
BMF Filing Requirement Code (FRC)

  1. The BMF FRCs are as follows.

    1. Code 0 - All, tax return not required to be filed.

    2. Code 00 - Form 941, Form 944, Form 944-PR, Form 944-SS, Form 1120, and Form 990 tax return not required to be mailed or filed

    3. Code 01 - Form 941, Form 944 Form 944-PR, Form 944-SS, Form 1120, Form 990, and Form 990-EZ tax return required to be filed

    4. Code 1 - Form 940, Form 943, Form 940-EZ, Form 945, Form 11C, Form 730, Form 2290, Form 1042, Form 1120-PC, Form 1066, tax return required to be mailed if filed.

    5. Code 02 - Form 941, Form 944, Form 944-PR, and Form 944-SS tax return required to be filed

    6. Code 2 - Form 940-EZ tax return required to be filed.

  2. The BMF will update the magnetic tape code to 0 and will generate a CP 199 when a TC 150 posts with a Condition Code F or M, or a TC 591, TC 593 or TC 595 posts and if a TC 01X posts to change the entity.

3.13.222.34  (01-01-2014)
Document Locator Number (DLN) Tax Class Document Codes

  1. 1.The Document Locator Number (DLN) is a unique number assigned to every return processed by the Automatic Data Processing (ADP) Systems.

  2. 2.The DLN is used to control, identify and locate a document.

  3. 3.Always make certain that the DLN on the document matches before making any corrections to Master File (MF) or the document.

    See Document 6209, IRS Processing Codes and Information Booklet, for the return DLN, tax class and document code.

3.13.222.35  (01-01-2014)
Form 4251 - Return Charge Out

  1. FORM 4251 GENERATION CRITERIA

    1. The GUF automatically generates Form 4251 for unpostable cases requiring the return or document (or information from these records) to resolve the unpostable condition.

    2. Form 4251's are also generated for certain auto-closed unpostable records that may require follow-up action by the originator.

    3. An unpostable return charge-out is generated for Categories A1, A2, B1, B5, C1, C2, C3, C5, D1, D3, E1, E2, E3, F1, F3, G1, L1, L5, L7, P1, R1, V1, W3, Y2, Z1 and certain category W5 and Y1 cases.

    4. An unpostable return charge-out is not generated for Categories L3, V3, V5, V7, V8, W1, and W5 plus matching Y1 cases.

  2. Form 4251 — Files Routing Chart—refer to IRM 3.12.32 for detailed routing information.

  3. Primary Requests - The Form 4251 must be given to the tax examiner at the time of the Individual case assignment. Before initiating any additional request for a BMF or PMF document the tax examiner assigned to the unpostable case will attempt to correct the unpostable by the following methods:

    1. Use the data on the Form 4251, and

    2. Research using IDRS Command Codes, or

    3. Any available listings.

    IF THEN
    a. The tax examiner cannot resolve the unpostable, The tax examiner must make additional requests for the unpostable return or document.
    b. The document has already been retired to the Federal Records Center (FRC), Files will route the Form 4251 to the Federal Records Center (FRC).
    c. The case can be closed using Microfilm Replacement Systems (MRS), CFOL and/or IDRS A second request is not necessary.
    d. Cases are closed without the document, Enter "CLSD-NO DOC" in the remarks field.

  4. Input CC UPRES with URC 2 to void to the originator all unpostable cases with the exception of revenue receipts, bankruptcy and TC 150s that can not be resolved by the primary request.

    1. Input ″Doc not available″ in remarks.

    2. Route the Nullified Distribution Listing to the appropriate area.

      Note:

      No other action is required.

  5. Statute Period Returns—If Unpostables cannot secure or locate a return or document within 10 workdays of the ASED, the following procedures should be followed:

    1. Return—prepare a "dummy" return and forward to Statutes. Statutes can assist in preparing the "dummy" return.

    2. Document—Forward a copy of TXMOD, UPRES, and Form 4251 to Statutes for a quick/prompt assessment.

  6. Criminal Investigation case—If the document can not be located and is a Criminal Investigation (CI) case (Category A1 or A2), CI will determine the necessary case resolution after all attempts have failed to locate the unpostable record. Category A1 records may be closed to Rejects if so determined by CI.

  7. Doc Code 47— If the unpostable record is a Doc. Code 47, research Microfilm Replacement Systems (MRS) and IDRS.

    IF AND THEN
    a. The unpostable case still cannot be closed, Document cannot be located, Input a second request for the missing document.
    b. The document (excluding Bankruptcy) is not found after second request, It is required to resolve the case, Request the entire block from Files. This will determine whether the record was misfiled.
    c. The document still can not be located,   Research Microfilm Replacement Systems (MRS) and IDRS again.

  8. If a bankruptcy (GUF category Z1) case and document is unavailable, process the case per the Bankruptcy Listing guidelines as indicated below, and the Category Z1 procedures in IRM 3.12.279.

  9. Secondary Requests - Only input second requests for documents that are revenue receipts (Doc. Codes 17, 18, 19, 20, 24, 34, 45, 48, 58, 70, 76, 87, or 97). A second request will be made by the tax examiner if the document initially cannot be located in Files or the Federal Records Center (FRC). Take the following action:

    1. Input CC UPCAS, with definer D and definer-modifier 2 to reflect action taken to obtain the missing document

      Note:

      The unpostable suspense status (status code and status date) and "remarks" will be updated.

    2. Initiate the second request within 15 work days (21 calendar days) of the INDIVIDUAL Case assignment.

    3. If the unpostable record is a return (TC 150) check for posted re-filed DLN (Doc Code 47 or 54). If a re-filed DLN is identified, request this DLN using CC ESTAB. The return should be attached.

  10. When a BMF or PMF return or document still cannot be located in Files after a second request, or the document is charged-out and it is required for correct case closure, initiate a third request.

  11. Third Request for a Document - A third request is made to obtain the document after 15 work days (21 calendar days) from the second request. Input CC UPCAS with definer D and definer-modifier 3 to reflect action taken to obtain the missing document.

  12. Input CC ESTABDO to request the document before making a fourth request. A ESTABDO request is made to obtain the document after 15 work days (21 calendar days) from the third request.

  13. Fourth Request - Input a fourth (4th) request using CC UPCAS definer code D and definer modifier code 4. Route the document to Rejects.

    1. Input ″FOURTH REQUEST-SPECIAL SEARCH″ and the employee number in the remarks area.

    2. Prepare and attach a Form 8749, Unpostable Routing Slip or local use form to original Form 4251 notating ″document can not be located″.

      Note:

      Attach the prepared Form 8749 to the second or third request if the first request is not available.

    3. Attach all background research information (copy of UPCAS, unpostable listing highlighting case or local use research form, old charge-outs) and correction data, if possible, to the Form 4251, and Unpostable Routing Slip.

    4. GUF will automatically close the case to Rejects using URC 8.

  14. Do not prepare a "dummy" return or document when routing to Rejects except for document codes 17,18 19, 24, 34, 45, 48, 58, 70 or 76.

  15. Status Check - Check if the module/account status has changed since the unpostable record was issued. All IDRS research information must be obtained prior to closing and routing a case to the preparer since this data will eventually be "dropped" .

  16. Procedures for Missing Documents - The following procedures must be followed after all normal attempts to resolve the unpostable conditions have been tried.

    If the Document Code is: Unpostable Unit Will:
    17, (Except TC 460 non-remittance), 18, 19, 70 or 76 Research for correct account where payment should be applied. If found, correct to post correctly. If payment must be renumbered, URC 8 and prepare "dummy" 3244. If unable to locate correct module, URC 8 and prepare "dummy" 3244 to be routed to Unidentified Unit.
    17 (TC 460 non-remittance) Research for corrective action. If unpostable cannot be corrected close with URC D, and route to Files.
    24, 48 or 58 Research to determine where debit or credit should post. If corrective action cannot be made, URC 6 or 8 to offset the transaction ("wash-out " ) prepare "dummy document" (if necessary) with corrections and notate "Process as Corrected" . If unable to determine opposite side of credit transfer and credit side is unpostable, transfer account to Unidentified. If debit side, transfer to 1510 Account.
    34 (Debit side) Research for corrective action. If unpostable cannot be corrected close with URC 2, and route to originator.
    34 (Credit side) Research for corrective action. If credit cannot be resolved, apply to the account where the debit posted and route to originator.
    45 Research to determine where debit or credit should post. If corrective action cannot be made, close with URC 8. Prepare Form 3245 for credit unpostable and transfer to Unidentified Account. Debit should be transferred to the 1510 Account.
    52 Research for corrective action. If unpostable cannot be corrected close with URC 2, and route to originator.
    87 Research to determine where debit should post. If unable to correct, close with URC 8 so Rejects can route case to Accounting for re-input or write-off.
    97 (FTD) Research for correct account. If found, correct payment to post to correct account using URC 6. If unable to locate correct account, close with URC 1 and prepare credit side of Form 2424. Route to Accounting.

    Note:

    The FTD unit must be contacted before closing with URC 1.

3.13.222.36  (01-01-2014)
Address Changes

  1. Use the following table below to resolve address changes:

    Note:

    The Address on the master file should never be updated from an extension (exception; typographical errors or misspellings on Master File or additional mailing information such as a suite and/or apartment number). If it is necessary to correspond on a Form 7004, send the letter to the address on Master File and inform the taxpayer of any address discrepancy. If there is no need to correspond, a 104C letter does not need to be sent. Refer to Entity IRM 3.13.2.7.22 regarding Form 7004.

    IF THEN
    A. A clear and concise unsolicited statement/correspondence or the address box is checked on a current tax year return:
    1. Signed by the taxpayer or an authorized representative per CC CFINK and

    2. The taxpayer's full name or name of the Entity is present, and

    3. The EIN is present.

    Input TC 014 to make the address change.
    B. A return has a different address, other than typographical errors or misspellings on Master File, and the address change box is not checked or the address on the return is listed as the location address on Master File. Do not change the address on Master File. If a specific letter is needed for the unpostable, inform the taxpayer of the address discrepancy. If a specific letter is not needed send a Letter 104C. Direct the taxpayer to www.irs.gov for a Form 8822-B. Correspond to the address on the return.

    Note:

    If the location address is listed on the return do not address discrepancy in correspondence. Send correspondence to address on the return.

    Caution:

    If the cycle date of the last address change is prior to the return received date (RRD) of the unpostable then address the discrepancy in the letter. If the last address change cycle update is later than the RRD, do not address the discrepancy in the letter and use the address on the Master File.

    C. Correspondence (including notices or C letters) sent by the Service that solicits or requires a response from the taxpayer, is returned to the Service by the taxpayer with corrections marked on the taxpayer's address information, the correspondence will constitute clear and concise written notification of a change of address. The taxpayer's signature is not required. Input TC 014 to make the address change.
    D. The street address has typographical errors or misspellings on master file. Input TC 014 to make the address change.

    Note:

    Correction is not needed for non-abbreviated or incorrect abbreviations in the address, unless making other Entity changes to the Master File.

    E. A completed Form 8822 or Form 8822-B, Change of Address is present. Input TC 014 to make the address change.
    F. Any of the required information is missing from the taxpayer's request for a change of address. Do not change the address. Correspond with the taxpayer at the new address and advise the taxpayer of the information needed.
    G. The return has additional mailing information such as a suite and/or apartment number and the address change box is not checked. Input TC 014 to make the address change.

    Note:

    Correction is not needed for non-abbreviated or incorrect abbreviations in the address, unless making other Entity changes to the Master File.

    H. A return has a different address, other than typographical errors or misspellings on Master File, and the address change box is not checked or the address on the return is listed the same as the XREF address. 1. Do not change the address.
    2. If a specific letter is needed for the unpostable, inform the taxpayer of the address discrepancy. If a specific letter is not needed send a 104C. Direct the taxpayer to www.irs.gov for a Form 8822-B. It is allowable to send the INITIAL correspondence to the XREF address as long as it matches the return.

  2. If a taxpayer requests an address change during telephone contact regarding an Entity Unpostables issue, you may accept oral authority for the address change. Follow the Oral Statement Documentation requirements in IRM 21.1.3 . Rev. Proc. 2010–16 allows address changes over the phone effective June 1, 2010. It is no longer required that the taxpayer have "an open issue" to request an address change over the telephone. The caller must be authorized to request the address change. Put the name, title, and phone number of the caller in the Remarks section of the transaction. When making an address change from a return, the following information will be entered in the Remarks field of CC BNCHG:

    • NSD,

    • MFT of return,

    • Tax Period of Return,

    • Name and title of signature,

    • Telephone number (if available)

    If you are unable to determine the name and/or title, enter "SIGNATURE ILLEGIBLE" .

  3. All transactions containing an address change will have the requester's name, title, and phone number if present in the Remarks field of the transaction.

  4. See Exhibit 3.13.222-5 and Exhibit 3.13.222-6 for examples of TC 014, also see IRM 3.13.222.111 for undeliverable mail and notices.

    Note:

    For additional address formatting refer to Entity IRM 3.13.2.3.

  5. When processing foreign address changes refer to Exhibit 3.13.222-11 through 3.13.222-20 to determine the Foreign County Code.

3.13.222.37  (01-01-2014)
Programming Requirements Package (PRP)

  1. A Programming Requirement Package (PRP) is the instructions that define how tax returns and tax forms can be processed to the Master File (MF). PRPs are written by computer programmers and program analysts. PRPs are written in a technical format that often requires an extensive knowledge of Submission Processing Procedures, a general knowledge of the various IRS Transaction and other computer type codes and a thorough knowledge of how to research IRS Manuals and other IRS reference material to decipher the meaning of the PRP.

  2. The specific PRPs involving BMF unpostables are found in the Document 6209, IRS Processing Codes and Information Booklet, under the Unpostable Code section.

  3. Each Unpostable Code (UPC) Reason Code (RC) subsection in this IRM will begin with the appropriate PRP followed by a literal translation.

3.13.222.38  (01-01-2014)
ABLM Defined

  1. ABLM is not an acronym. The letters are a carry over from when the tax Form 1120 was generic. The letters are defined as follows:

    • A - Consolidated tax return

    • B - Personal Service Corporation

    • L - Life Insurance tax return

    • M - Mutual Fund tax return

  2. There are still references to the ABLM blocks throughout IRMs, Document 6209 IRS Processing Codes and Information Booklet, Programming Requirements Package (PRP), etc. These references concern specific blocks within the Document Locator Number (DLN) to identify what type of Form 1120 tax return was being filed.

3.13.222.39  (01-01-2014)
General Information Regarding Unpostables

  1. When correcting unpostables the first thing that must be determined is that the unpostable tax return or document and the entity on the MF are the same. Various IDRS and research Command Codes (CC) should be used to make this determination.

  2. Even when the name control and the TIN match an account on the MF, it does not mean the names are the same.

    1. Many taxpayers have the same name control and could match a TIN on the MF if it was transcribed wrong or the taxpayer supplied the wrong TIN.

  3. When determination has been made that the MF primary name line is incorrect, make the necessary changes to update the master file. The taxpayer's correct primary name may be found on the appropriate Secretary of State website. If the correct name cannot be determined, contact the taxpayer.

    Caution:

    Extensions are generally filed by CPAs, Bookkeepers, Tax Preparers, etc., and names changes should not be made unless verified through the Secretary of State website or contact with an authorized individual.

  4. Completely review and resolve ALL unpostable conditions which could result in a repeat unpostable condition, including LLCs, FYM, Subchapter S status, Corporations with an LLC indicator, etc.

  5. If the taxpayer sends the reply to the incorrect campus, the campus receiving the reply will work the response. Before processing an unpostable Form for "No reply" research for the current form on IDRS.

  6. Limited Liability Companies (LLC) must be examined for a valid Entity Classification Election (Form 8832) to be approved to file as a corporation. A Form 1065 should not be filed when an approved Form 8832 is on file. An entity considered LLC may unpost as a UPC 307, 310, or 329 and must be examined to determine the appropriate filing requirement to accurately resolve the unpostable. If the LLC indicator is incorrect or not on the account update the LLC indicator per IRM 3.13.222.109.

  7. When correcting the unpostable and a change to name control, TIN, MFT, Tax Period, etc., is required, always show the change on the unpostable document, not on the Form 4251. Any corrections to the source document should be circled in purple and all written corrections must also be in purple. Close the unpostable tax return appropriately.

  8. When working Mef Returns and the DLN has to be cancelled use the Form 4251, Return Charge Out or an UPRES screen print as the documentation to send to Rejects. Use the appropriate routing slip and request Rejects to "Cancel DLN " . Do not print the return. When the unpostable has to be converted/re-numbered, print the applicable pages of the return to send to Rejects.

  9. If the unpostable return requires a change to the TIN, MFT and/or TXPD and it is determined the payment is posted incorrectly, then have the payment moved to the corrected TIN, MFT and/or TXPD. Refer to IRM 3.13.222.22.

  10. All repeat unpostables will generate back to the originator. If the repeat unpostable is not an entity problem and cannot be resolved by the Entity function, then reassign the unpostable to the Unpostable Unit.

  11. When the unpostable is assigned to Entity Control the computer will generate a Form 4251 (C) Return Charge-Out out to Files Section for the document.

  12. The assignment of unpostables to each tax examiner will be the responsibility of the unit manager.

  13. The cases assigned to each tax examiner will be printed on a Daily/Weekly Employee-Assign-Aged List.

  14. If the unpostable is an Exempt Organization (EO) tax return, see IRM 3.12.278, EO Unpostable Resolution, for specific instructions.

  15. Whenever it is determined that the EO section is not correct, contact the EO Entity section before any changes are made to the EO account, complete the corrections to update the MF to prevent future unpostables. If the EO status code is 20, 22, 41, 70, 71, 97, or 99 the EO status is invalid and the case should be resolved in BMF Entity Unpostables.

    Note:

    For BMF Entity changes except for EO sub modules accounts, CC BNCHG is used. For changes made to EO accounts containing sub modules only CC EOCHG is used.

  16. All related unpostables that have unposted at the same time, should be worked at the same time.

  17. When processing Modernized E-file (MeF) returns, enter the received date shown on the Tax Return Database (TRDB) on returns filed via MeF.

  18. A personal service corporation whose principle activity for the testing period (generally the prior tax year unless the corporation has just been formed) for the tax year is the performance of personal services. Personal services include any activity performed in the fields of accounting, actuarial science, architecture, consulting, engineering, health, law, and the performing arts. The services must be substantially performed by employee-owners.

  19. Update or remove the sort name line (doing business as, dba name) if there is a direct request from the taxpayer, or the name is different, and the return being processed is signed by someone with authorization. Do not add the sort name line (dba), if it is exactly the same as the primary name line. Even if the sort name line is similar to the primary name line, input the sort name (dba). The sort name line is used for research purposes and should be input accurately.

  20. If research determines there is another unpostable with the same MFT and TXPD located at another Campus and a suspense letter has been sent, do not correspond again. Research via command code UPTIN (UPTIN@17 or UPTIN@29, etc.). Suspend for 60 days from the date the letter was sent and purge the document according to the specific unpostable procedures.

  21. All actions taken to work and resolve the unpostable document should be annotated in the lower left corner of the document. If a Form is attached to the unpostable document that needs to be routed to another area for processing, detach the form and route to the appropriate area and annotate actions in lower left hand corner of the unpostable document. Before releasing the return for processing, an audit trail containing the TEs IDRS number must be entered in the lower left corner of the return. The following applicable format will be used:

    • EIN 'F' MMDDYYYY (used when TE finds the taxpayer's valid EIN)

    • EIN 'E' MMDDYYYY (used when TE must assign a new EIN to the taxpayer)

  22. The Correspondence Received Date (CRD) is entered in the lower left hand corner of the return in YYYYMMDD format, and may also be notated on the Unpostable Routing Slip. When a late reply is received and the return is being sent to Batching for processing the Correspondence Received Date (CRD) should be edited on the return.

  23. When re-establishing a DLN after it has been deleted and the original return was an e-Filed (Mef) return, the return must be renumbered because the e-Filed (Mef) DLN cannot be re-established. Print the entire return from EUP before sending for reprocessing.

  24. The expeditious processing of refund returns is critical if the 45 day interest free period is about to expire. Also, returns reflecting a refund of $1,000,000 or more should be processed expeditiously. See IRM 3.11.16.

  25. When entering a non source document transaction into IDRS, the Remarks field of CC BNCHG/INCHG will contain a description of the type of case being processed. For example, if changing a name from a return, enter NSD, the MFT and TXPD in the Remarks field.

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3.13.222.39.1  (01-01-2014)
Associating Documents to an E-Filed Return

  1. If a document needs to be associated with an e-filed return, a re-file DLN needs to be created so documents can be attached to the electronically filed returns DLN. Attach IDRS document input tag (Form 12773 BMF ADJ54 Adjustment Format) to each E-file/MeF reply and complete with:

    • Employee IDRS number,

    • Input Date,

    • TC 290,

    • Amount ".00" ,

    • TIN,

    • Tax Period,

    • Block see (3) below,

    • Remarks "Attachment only" and,

    • Sequence Number. Sequence numbers for input should begin with "1" through "999" and remain in order.

  2. Input TC 290 on IDRS to generate a re-file DLN to the Files area which is used to attach the reply.

    1. Access CC TXMODA, overlay with CC REQ54, Xmit. This will bring up the CC ADJ54 screen

    2. Input the sequence number from the IDRS input tag

    3. BLK> See (3) below

    4. IRS-RCVD-DT> *

    5. TC 290

    6. AMT> .00

    7. Hold-CD> 3

    8. SOURCE-DOCUMENT-ATTACHED?> SD-

    9. REMARKS> Attachment only

  3. Use the following blocking series:

    If MFT is Then Blocking Series is
    02 15
    05 17
    06 17
    10 15
    44 15
    67 10

  4. Complete routing form (for example, OSPC Form 261-A) and send to Files within 5 days of input.
    Reminder: Form 6502 "must" have the IDRS input date and entire employee IDRS number.

3.13.222.39.2  (01-01-2014)
Process For Converting Form 1120S to Form 1120 and Form 1120 to Form 1120S

  1. Conversion of Form 1120S to Form 1120.

    1. Circle out the "S" in the top left of return.

    2. Edit the name control if not previously edited.

    3. Edit Computer Condition Code 3 in the center of Lines 1 and 2 (as applicable with "No Replies" ).

    4. Underline the Business Activity Code in section B in the top left corner.

    5. Edit Audit Code 4 in the left margin near Line 12.

    6. Edit the tax period if necessary for prior year returns.

  2. Conversion of Form 1120 to Form 1120S.

    1. Edit an "S" to the right hand side of the "1120" literal on top left of return, changing it to "1120S" .

    2. Edit the name control if not previously edited.

    3. Edit the Computer Condition Code 3 in the center of Line 1 and 2 (as applicable with "No Replies" ).

    4. Edit Audit Code 4 in the left margin next to Line 9.

    5. Underline the Business Activity Code on Form 1120 page 3, Schedule K2(a)

    6. Edit the tax period if necessary for prior year returns.

3.13.222.39.3  (01-01-2014)
Process for re-input of TC 460 from a Form 7004

  1. If an extension needs to be posted for a different filing requirement, this needs to be re-Input as a TC 460. Each request must contain the following

    • EIN

    • MFT>MFT of the Tax Return

    • TX-PRD>Tax year the extension is for

    • NM-CTRL>Name Control

    • TC>460

    • EXTENSION-DT>: This is the extended due date for the particular tax return

    • TRANS-DT>: This is the received date of the extension (stamped on 7004)

    • DLN-CD>: Must be present with MFT 02, 05, or 06 [leave blank for all others]

    • REMARKS: Line 14; remarks must be present.

  2. Use the following to re-input an extension.

    1. Access CC TXMODA, overlay with CC REQ77, Xmit. This will bring up the CC FRM77 screen

    2. Input the TC>460

    3. EXTENSION-DT>MMDDYYYY (See IRM 20.2.2-1 and 3.11.212-1)

    4. TRANS-DT>(Received date of the Form 7004)

    5. DLN-CD>(Must be present with MFT 02, 05, or 06) [leave blank for all others]

    6. REMARKS: Line 14; remarks must be present: RE-INPUT EXTENSION

    MFT DLN CODE
    02 20
    05 and 06 45

    Note:

    Timeliness of the extension is determined by the return requested on the Form 7004, not the filing requirements currently on Master File.

    Figure 3.13.222-2

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

3.13.222.39.4  (01-01-2014)
EO Status, Foundation, And Affiliation Codes

  1. For a list of EO Status, Foundation, And Affiliation Codes refer to IRM 3.12.278.3.5.

3.13.222.39.5  (01-01-2014)
EO Subsection And Classification Codes

  1. For a list of EO Subsection And Classification Codes refer to IRM 3.12.278.3.4.

3.13.222.40  (01-01-2014)
Correspondence Received Date (CRD)

  1. A return is not considered filed for interest computation purposes until the return is received in processable form.

  2. A return is in processable form if it:

    • Is filed on a permitted form;

    • Contains the taxpayer's name, address, and identifying number;

    • Has the required signature(s); and

    • Contains sufficient information (whether on the return or on required attachments) to permit the mathematical verification of the tax liability shown on the return.

  3. If the requested information is received after the return due date, the return is processed with a" Return Processable Date (RPD)" reflecting the date the information was received. This date is also known as the " Correspondence Received Date (CRD)." The CRD is used to calculate interest the IRS owes on refunds.

  4. The Correspondence Received Date (CRD) is entered in the lower left hand corner of the return in YYYYMMDD format, and may also be notated on the Unpostable Routing Slip. When a late reply is received and the return is being sent to Batching for processing the Correspondence Received Date (CRD) should be edited on the return.

3.13.222.41  (01-01-2014)
International Forms Processing (General Information)

  1. International returns are only processed at the Ogden Submission Processing Center

  2. The following list of Forms has been identified as potential BMF International Forms:

    Form Title Tax Class MFT Code Doc Code
    *940 Employer's Annual Federal Employment (FUTA) Tax Return 8 10 40
    940-PR Planilla Para La Declaracion Trimestral del Patrono 8 10 40
    *941 Employer's Quarterly Federal Tax Return 1 01 41
    941-PR Employer’s Quarterly Federal Tax Return (Spanish Version) 1 01 41
    941-SS Employer’s Quarterly Federal Tax Return (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands) 1 01 41
    *943 Employer's Annual Tax Return for Agricultural Employees 1 11 43
    943-PR Planilla Para La Declaracion Anual De La Contribucion Federal Del Patrono De Empleados Agricolas 1 11 43
    *944 Employer's Annual Federal Employment Tax Return 1 14 49
    944-PR Employer's Annual Federal Employment Tax Return (Spanish Version) 1 14 49
    944-SS Employer's Annual Federal Employment Tax Return (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands) 1 14 49
    *1041 U.S. Income Tax Return for Estates and Trusts 2 05 44
    1042 Annual Withholding Tax Return for U.S. Source Income of Foreign Persons 1 12 25
    1042-S Foreign Person's U.S. Source Income Subject to Withholding 5 12 02
    1042-T Annual Summary and Transmittal of Form 1042-S 5 88 01
    *1065 U.S. Return of Partnership Income 2 06 65, 67
    1066 U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return 3 07 60
    *1120 U.S. Corporation Income Tax Return 3 02 10, 11
    1120-C U.S. Income Tax Return for Cooperative Associations 3 02 03
    1120-F U.S. Income Tax Return of a Foreign Corporation 3 02 66, 67
    1120-FSC U.S. Income Tax Return of a Foreign Sales Corporation 3 02 07
    *1120-H U.S. Income Tax Return for Homeowners Associations 3 02 71
    *1120-L U.S. Life Insurance Company Income Tax Return 3 02 11
    *1120-ND Return for Nuclear Decommissioning Trust Funds and Certain Persons 3 02 08
    *1120-PC U.S. Property and Casualty Insurance Company Income Tax Return 3 02 13
    *1120-POL U.S. Income Tax Return for Certain Political Organizations 3 02 20
    *1120-REIT U.S. Income Tax Return for Real Estate Investment Trusts 3 02 12
    *1120-RIC U.S. Income Tax Return For Regulated Investment Companies 3 02 05
    1120S U.S. Income Tax Return for an S Corporation 3 02 16
    1120-SF U.S. Income Tax Return for Settlement Funds (Under Section 468B) 3 02 06
    *1120-X Amended U.S. Corporation Income Tax Return 3 02 10, 54
    3520 Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts 3 68 83
    3520-A Annual Return of Foreign Trust With a U.S. Owner 3 42 82
    4466 Corporation Application for Quick Refund of Overpayment of Estimated Tax 3   45
    4768 Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes 9 52 77
    5712 Election To Be Treated as a Possessions Corporation Under Section 936      
    5713 International Boycott Report 6   08
    5735 American Samoa Economic Development Credit      
    *7004 Application for Automatic 5 Month Extension of Time to File Certain Business Income Tax, Information, and Other Returns. 3

    2
    02

    05–08, 12, 14, 27,42, 77, 78, 89
    04
    8288

    Note:

    Form 8288 with a Date of Transfer prior to 12/13/05 is processed to the NMF in CSPC.

    U. S. Withholding Tax Return for Disposition by Foreign Persons of U. S. Property Interests 6 17 41
    8288

    Note:

    Form 8288 with a Date of Transfer of 12/13/05 or later is processed to the BMF in OSPC.

    U. S. Withholding Tax Return for Disposition by Foreign Persons of U. S. Property Interests 1 17 40
    8288-A Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests      
    8288-B Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests      
    8621 Return by a Shareholder of a Passive Foreign Investment Co. or Qualified Electing Fund      
    8716 Election to Have a Tax Year Other than a Required Tax Year 9   63
    8752 Required Payment or Refund Under Section 7519 2 15 23
    8804 Annual Return for Partnership Withholding Tax (Section 1446) 1 08 29
    8805 Foreign Partners Information Statement of Section 1448 Withholding Tax 6 08 46
    8813 Partnership Withholding Tax Payment Voucher (Section 1446) 1 08 17, 19, 70, 76
    8819 Dollar Election Under Section 985      
    8822 Change of Address      
    8822-B Change of Address or Responsible Party - Business      
    8832 Entity Classification Election      
    8855 Election To Treat a Qualified Revocable Trust as Part of an Estate      

    Note:

    The forms in the table above with a preceding asterisk ″*″ identify a return as being foreign by the address provided by the taxpayer.

  3. A foreign address is any address that is not in:

    1. One of the 50 states.

    2. The District of Columbia.

    3. Any of the American possessions.

  4. Beginning January 2007 FLC 60 and 78 will be the valid BMF International FLC for processing at Ogden.

    1. OSPC FLC 60 (International returns)

    2. OSPC FLC 78 (U.S. Possessions) must have a Zip Code.

  5. Cincinnati will be responsible for processing the following International returns:

    1. Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, see IRM 3.11.106, Estate and Gift Tax Returns.

    2. Form 706-A, United States Additional Tax Return, see IRM 3.11.106, Estate and Gift Tax Returns.

    3. Form 709, United States Gift (and Generation - Skipping Transfer) Tax Return see IRM 3.11.106, Estate and Gift Tax Returns.

    4. Form 8892, Application for Automatic Extension of Time To File Form 709 and/or Payment of Gift/Generation Skipping Transfer Tax, see IRM 3.11.212, Applications for Extension of Time to File for additional information.

  6. There were no Filing Location Codes available for the CSPC site. A blocking range of 990-999 has been specified for the Form 706 and 709 series.

  7. The basic requirements and procedures for processing unpostables apply to the processing of International returns. Any specific procedures for correcting International unpostables can be found within each Unpostable Code and Reason Code in this IRM.

  8. International Guidelines If an unpostable Form 1065 or 1041 indicates a foreign address for the partnership, estate or trust, route the case to OSPC as an International return.

3.13.222.42  (01-01-2014)
Unpostable Code (UPC) 301 Reason Code (RC) 1 - No Account Present On The BMF

  1. The Programming Requirements Package (PRP) for UPC 301 RC 1 states:
    An input (non-generated) transaction coded other than 000, 019, 141, 142, 650 (document code 97, 19 (EFTP)) for MFT 01/03/14/16, 990, 991, 992, 993, 996 or other than a TC 150 (with entity information addressing a Form 706/709 module) failed to match on TIN with an account on the BMF.

  2. These unpostables will be received as reassignments from the unpostable function when research has not located another EIN for the name shown on the unpostable document.

  3. The following chart lists different scenarios that will help resolve UPC 301 RC 1:

    IF AND THEN
    A.  A return (TC 150) attempts to post a.  The EIN shown on the unpostable return is correct and is already on the BMF. Close unpostable with URC 0.
      b. The unpostable document has an EIN that was recently assigned (CC NAMEB shows a # sign) Close with URC 0 and cycle appropriately.
      c. The EIN on the unpostable return is correct, but is not on the BMF. IDRS shows an account with the same EIN, but with a suffix of "P" 1. Input TC 000 to establish the account on the BMF.
    2.  Close the unpostable with URC 0 and cycle appropriately.
      d.  An attempt was made to establish an account on the BMF, but the TC 000 was not entered. The result was a TC 013 (Name Change). 1.  Input TC 000 to establish the account on the BMF.
    2. Close with URC 0 and cycle appropriately.
      e.  The EIN shown on the unpostable return is incorrect, but a better EIN is found through research. 1.  Correspond with the taxpayer informing them of the correct EIN, using a 147C letter according to instructions in IRM 3.13.222.13.
    2. Close with URC 6.
      f.  The EIN shown on the unpostable return is incorrect and research does not show a valid EIN is assigned to this taxpayer. 1.  Assign a new EIN using CC ESIGN.
    2.  Close with URC 6 and cycle appropriately.
      g. The transaction is a preprinted return that was filed for information only (for example, a statement that the return is being filed under another TIN or a final return with no tax liability). 1.  Close with URC 8 and request Rejects to cancel the DLN.
    2. Assign transaction code 960, 961, and 962 with MFT 00 and Tax Period 000000 to RAF function.
      h.  The taxpayer files a Form 990-T to claim a refund of erroneous backup withholding and Form 1099, Form W-2, or other statement is not attached. 1. Correct the unpostable using URC 8.
    2. Request Rejects correspond with the Taxpayer for Tax line verification of backup withholding.
    B. The unpostable is not a return (TC 150) a. The EIN shown on the unpostable is correct and is already on the BMF. Correct the unpostable with URC 0.
      b. The EIN on the unpostable is not valid and another EIN cannot be found. 1. Using ESIGN, assign a new EIN.
    2. Close with URC 6 and cycle appropriately.
      c. The EIN on the unpostable is valid, but not on the BMF. 1.  Input TC 000 to establish the account on the BMF.
    2. Close with URC 0 and cycle appropriately. Figure 3.13.222-4

    Figure 3.13.222-3
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Figure 3.13.222-4
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    UPC 301 - Account Not Present

  4. EO Documents and Returns refer to IRM 3.12.278,Exempt Organization Unpostable Resolution.

3.13.222.43  (01-01-2014)
Unpostable Code (UPC) 301 Reason Code (RC) 2

  1. The Programming Requirements Package (PRP) for UPC 301 RC 2 states:
    TC 150 for Form 706 (MFT 52) or Form 709 (MFT 51) attempts to establish an account and the input TC 150 does not contain significant Name Line/Mailing address data.

  2. UPC 301 RC 2 condition occurs when a Transaction for Form 706 series, (MFT 52, 77,78) or Form 709, (MFT 51) attempts to establish an account and the input TC 150 does not contain significant name line and mailing address data.

    Note:

    Each TIN will be 10 digits, the right most digit will identify the TIN type as follows:

    • V - Valid

    • W - Invalid

    • 2 - EIN

    • 3 - Dummy TIN

    • 4 - Taxpayer Representative Number

    • 5 - Integrated Test

  3. The following chart list different scenarios that will help resolve UPC 301 RC 2:

    IF AND THEN
    A. The unpostable return is a Form 706, or Form 709. a. The SSN is correct and on the BMF Close the unpostable with URC 0.
      b. The SSN is correct, but is not on the BMF. 1. Input TC 000 to establish the account on the BMF (V Tape).
    2. Close the unpostable with URC 0 and cycle appropriately.
    B. The unpostable return is a Form 706, or Form 709. a. The SSN is incorrect. 1. Research for a better SSN using CC NAMEI and/or CC NAMES.
    2. If a better SSN is found, correspond with the taxpayer informing them of the correct SSN.
    3. Close with URC 6.
      b. A correct SSN is found, but is not on the BMF. 1. Input TC 000 to establish the account on the BMF (V Tape).
    2. Correspond with the taxpayer informing them of the correct SSN.
    3. Close with URC 6 and cycle appropriately.
      c. A correct SSN is not found 1. Call or correspond with the taxpayer, requesting the correct SSN.
    2. Suspend the case for 60 days.
    C. Taxpayer replies with a correct SSN   1. Close with URC 6.
    D. No Reply   1. Have Entity assign a new SSN.
    2. Close with URC 6.

3.13.222.44  (01-01-2014)
Unpostable Code (UPC) 302 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 302 RC 1 states:
    A TC 000 matched an existing entity on TIN.

  2. A TC 000 (Entity Create) attempting to post and it matches an EIN already on the BMF.

  3. Transaction Code 000, Document Code 80 will be assigned to the Entity Control function by the computer system.

  4. The unpostable record will be an IDRS transaction record (Computer generated Form 5147).

  5. Transaction Code 013 or 016, Document Code 80, for posting to the BMF for EO Accounts, DLN blocking series 990–999, will be sent to the appropriate area.

  6. Before this unpostable can be resolved use CC ENMOD/INOLE to compare the name and address on unpostable document with the name and address on the BMF and to determine if there is already an EO Section on the BMF.

  7. The following chart lists different scenarios that will help resolve UPC 302 RC 1:

    IF THEN
    A. The entities are not the same Research for a better EIN, if not found, input URC 2.
    B. Another EIN is found Correct the unpostable accordingly. See instructions for UPC 301 and 303.
    C. Another EIN is not found Assign a new EIN to the unpostable document. See instructions for UPC 301 or 303.
    D. The EIN on an EACS unpostable is changed Copy the computer generated Form 5147, identify it as a copy and route it to the appropriate Area Office. Inform the Area Office that the EIN was changed on an EACS closure, and that the Administration File should be updated.
    E. The input document contains an Employment Code and/or a 941 FRC that is not in agreement with the Employment Code and 941 FRC on the BMF (i.e., BMF EC is a "C" or "G" and the input unpostable document is a W) Determine which is correct, the BMF or the unpostable, avoid creating another unpostable when the transaction code on the unpostable document is changed to 013.
    F. The unpostable document has a status of 01/03 with SS 03, TF 10, EC W and the BMF has an EC of "C" (as approved election as a church) Void the unpostable and input a new transaction, use CC EOCHG, Document Code 80, TC 016 and the data from the unpostable omitting the Employment Code and 941 FRC.
    G. The unpostable document has a Status of 01/03 with SS 03, TF other than 10, EC "W" and the BMF has an EC of "G" Verify that the BMF is correct.
    H. The BMF is correct Void the unpostable and input a new transaction, use CC EOCHG, Document Code 80, TC 016 and the data from the unpostable omitting the EC and 941 FRC.
    I. For all other cases Determine what action to take and correct the BMF or void the unpostable and make a new input transaction. The corrective action for this type of an unpostable will be to change the transaction code to 013.
    J. The BMF has filing requirements of Form 941, Form 940, Form 940-EZ, Form 1041, Form 1065 or Form 1120 The BMF will require a corrective action before the unpostable can be released.
    K. The BMF has an EO Section The transaction should be input before the unpostable is corrected so it will not create a UPC 369. The unpostable document may already have the correct Employment Code, in this case no action is necessary. Correct the unpostable with CC UPRES and URC 0, and cycle the CC BNCHG or unpostable accordingly.
    L. INOLE/ENMOD shows that the Master File has a Form 941 filing requirement of 01 and an Employment Code of W and no EO Section and the subsection code on the unpostable is not a 03, 50, 60, or 70. 1. Use BNCHG to delete the "W" Employment Code, and add the Form 940 FRC.
    2. Correct the unpostable with CC UPRES and a URC 0. Release the unpostable two cycles after the CC BNCHG is input.

3.13.222.45  (01-01-2014)
Unpostable Code (UPC) 303 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 303 RC 1 states: A transaction with Document Code not equal to 80/81 (except TC 150 for MFT 36/50/53/63 other than TC 001, 019, 14X, 650 (Document Code 97/19 (EFTP)) for MFT 01/03/14/16, 796, 90X, 99X but coded greater than 000 failed to match on three out of four positions (using the Proximal Method) of the entity Name Control, Old Name Control, three out of the four left-most non-blank positions (Proximal) of the entity Sort Name Line, or the four left-most significant characters of the first three words of the entity Primary Name Line and then the Sort Name Line.

  2. These unpostables will be received as reassignments from the unpostable function, when a determination cannot be made as to whether the entity on the BMF and the entity on the unpostable document are for the same taxpayer or assigned in B1 Categories, if the unpostable transaction code is 960, 961 or 962 with a MFT 00 and Tax Period 000000 (RAF).

  3. Assign transaction codes 960, 961 and 962 with MFT 00 and Tax Period 000000 to the RAF function.

    Note:

    Input of revenue receipts (TC 6XX 8XX) with Doc Code 17, 18, or 19 will be re-sequenced for two cycles prior to the removal of UPC 301.

  4. Do the following for unpostable resolution for NON EO Documents and returns. Figure 3.13.222-5

    Figure 3.13.222-5

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

    UPC 303 RC 1

    Unpostable Resolution for EO Documents and returns refer to IRM 3.12.278, Exempt Organization Unpostable Resolution.

    IF AND THEN
    A. The taxpayer files a form with an incorrect EIN or "applied for" a. A valid EIN is found. 1. Correspond with the taxpayer informing them of the correct EIN using a 147C letter according to instructions in IRM 3.13.222.13
    2. Correct with URC 6. Figure 3.13.222-6
    b. A valid EIN is not found. 1. ESIGN EIN.
    2. Close with URC 6 and cycle appropriately.
    c. The unpostable document indicates a change in organization.

    Note:

    If the name is referencing LLC refer to IRM 3.13.222.109 to determine if a new EIN is appropriate.

    1. Research for another EIN. If no EIN is found, assign a new EIN with notice indicator B. If an EIN is found, notify the taxpayer using the appropriate letter.
    2. Close URC 6 and cycle appropriately.
    d. A EIN is found and not on the master file 1. Establish the account with TC 000
    2. Close with URC 6 and cycle appropriately. Figure 3.13.222-7
    B. The taxpayer files a form with a valid EIN a. The BMF has a different name on the entity. 1. Input a TC 013 as necessary to resolve the EIN discrepancy refer to IRM 3.13.222.18. If a TC 011 is needed route to Entity Control Team.
    2. Correct with URC 0 and cycle appropriately.
    b. The unpostable document indicates a change in organization.

    Note:

    If the name is referencing LLC refer to IRM 3.13.222.109 to determine if a new EIN is appropriate.


    1. Research for another EIN. If no EIN is found, assign a new EIN with notice indicator B. If an EIN is found, notify the taxpayer using the appropriate letter.
    2. Close URC 6 and cycle appropriately.
    c. Unpostable is an electronic filed return. 1. Research using TRDBV, or EUP.
    2. Name control is incorrect, but the name agrees with the name on the BMF.
    3. Close with URC-A.
    d. Unpostable is an electronic filed return. 1. Research using TRDBV or EUP.
    2. If research can only be completed through TRDBV and the entity type cannot be determined.
    3. Research for another EIN. If no EIN is found, assign a new EIN with notice indicator B. If an EIN is found, notify the taxpayer using the appropriate letter.
    4. Close with URC 6 and cycle appropriately.
    e. Unpostable is a paper return. 1. Name control is incorrect, but the name agrees with the name on the BMF.
    2. Close with URC-A.
    C. The name for the EIN on the unpostable does not agree with the name on the BMF Research locates the same EIN on MF with an MFI of "P" (i.e., profit sharing plan) 1. Input TC 000 and establish the account on the BMF.
    2. Correct with URC 0 and cycle appropriately.

    Figure 3.13.222-6

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

    Correct EIN Is Found

    Figure 3.13.222-7

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

    EIN Not On Master File

  5. If the unpostable is correct, the transaction UNPOSTED because the name control has been changed several times since the input validation. All entity transactions (TC 0XX) will post before a TC 960, 961, or 962.

  6. If the name changes have taken place since validation, the RAF will also need to be changed.

    IF THEN
    The name changes have taken place since validation, the RAF will also need to be changed. 1. Use CC ENMOD and other research command codes to determine the prior name lines.
    2. Determine if the name has been changed and if it is the same taxpayer.
    3. Close with URC 6 and correct the RAF using CC RAFUP with definer T and change the name and name control.
    4. Do not set the correct unpostable Reset Transaction. Notify the Reporting Agent of the name change.

3.13.222.46  (01-01-2014)
Unpostable Code (UPC) 303 Reason Code (RC) 2

  1. The Programming Requirements Package (PRP) for UPC 303 RC 2 states: TC 650 (document code 97, 19 (EFTP)) for MFT 01/03/14/16 failed to match on three out of four positions of the entity Name Control, Old Name Control, three out of the four left-most non-blank positions (Proximal) of the entity Sort Name Line, or the four left-most significant characters of the first three words of the entity Primary Name Line and then the Sort Name Line which has re-sequenced 4 cycles or the 23C date is equal to or later than the end of the tax period.

3.13.222.47  (01-01-2014)
Unpostable Code (UPC) 303 Reason Code (RC) 3

  1. The Programming Requirements Package (PRP) for UPC 303 RC 3 states: A transaction (except TC 150 for MFT 36) with doc code 80/81/50/53/63 other than TC 001/019/14X/796/90X/99X but coded greater than 000 failed to match on all four positions of the Entity Name Control, Name Control, the four left-most non-blank positions of the entity Sort Name Line, or the four left-most significant characters of the first three words of the entity Primary Name Line and then the Sort Name Line.

    Note:

    Revenue receipts (TC 6XX-8XX) with Doc Codes 17, 18 or 19 will be re-sequenced for two cycles prior to unposting as UPC 303.

3.13.222.48  (01-01-2014)
Unpostable Code (UPC) 307 Reason Code (RC) 1 Fiscal Year Month (FYM) Mismatch

  1. The Programming Requirements Package (PRP) for UPC 307 RC 1 states:
    The fiscal month of Forms 1120/1041/1065/1120-C/990-T/990/990-PF/1041-A/5227/3520/3520-A/8804 input transaction attempting to establish a tax module did not match the Fiscal Month of the account entity and it was not a transaction coded 150/290 (B.S. 4XX)/460 (MFT equals 05/06/08/37/44/67)/ISRP/Lockbox) 610/620/650/660 (MFT equals 02/05/33/34/44)/670 (MFT equals 08) nor TC 424 Push Code 036 with entity FYM equals 0 trying to establish the first 1120/1041/1065/990/990-C/990-T/990-PF/5227/1041-A/3520/3520-A/8804 tax module, was not a TC 150 containing Condition Code F or Y or was not a TC 620 with Condition Code W. Reference 5.02(6) (d). Exception for RPS/ISRP/Lockbox TC 610: allow to re-sequence up to two cycles prior to unposting.

  2. Unpostable for MFT 02 (Form 1120-C), 34 (Form 990-T), 37 (Form 5227), 44 (Form 990- PF) and 67 (Form 990) will be assigned directly to Entity Unpostable Team.

  3. This unpostable code will be reassigned from the unpostable function for MFTs other than 33, 34, 37, 44 or 67 for the following reasons:

    1. There is an indication of a Form 1128 previously filed per TC 053.

    2. There is an indication of a Form 8716 previously filed per TC 055.

    3. There is an indication that the taxpayer's FYM was approved under Revenue Procedure 2006-46, per TC 054.

    4. A TC 053/054 on the entity indicates a change in accounting period requested on Form 1128.

      Note:

      TC 053 indicates we have accepted a change or adoption of account period. TC 054 indicates we have allowed the taxpayer to retain their fiscal year.

    5. A TC 055 on the entity indicates a Section 444 election was made on Form 8716 for Partnerships and S Corporations.

    6. A TC 054 on the entity indicates a Section 444 election was made on Form 8716 for a Personal Service Corporation

    7. Transaction codes 053, 054, and 055 are input on command code BRCHG.

    8. There is an indication of a change in entity.

      Note:

      See IRM 3.13.222.106 and IRM 3.13.222.107 for additional instructions for Form 1128 and Form 8716.

  4. When the case is transferred from the unpostable function it will be annotated with the reason and any research that has been performed will be attached.

  5. Section 806 of the Tax Reform Act of 1986, generally requires that all S Corporations, partnerships, and personal service corporations conform their tax years to the tax years of their owners, (usually December 31).

  6. Revenue Procedure 2006-46 (except as provided in Section 4.02) applies to the following:

    1. Required taxable year - Section 5.05

    2. Natural Business Year - Section 5.07 (must submit a statement of gross receipts which meets the 25% test) - Automatic Approval.

    3. Ownership Taxable Year - Section 5.08 Automatic Approval.

    4. 52-53 week year - Section 5.05.

    5. Grandfathered Fiscal Year Section 5.09 - A Partnership or S Corporation that received permission to file a fiscal year tax return which did not result in a 3 month or less deferral of income to the shareholder or partners, on or after July 1, 1974. This permission is not automatic; it is by letter ruling only.

    6. If (a), (b), (c) or (d) cannot be met, those taxpayers must have Chief Counsel Approval by requesting a Private Letter Ruling at the following address: Internal Revenue Service, Associate Chief Counsel (Income Tax and Accounting), Attention: CC:PA:LPD:DRU, P.O. Box 7604, Ben Franklin Station, Washington, DC 20224-7604, if a private delivery service is used, the address is: Internal Revenue Service, Associate Chief Counsel (Income Tax and Accounting), Attention: CC:PA:LPD:DRU Room 5336, 1111 Constitution Ave., N.W., Washington, DC 20224.

  7. Section 444 allows certain partnerships, S Corporations and personal service corporations to elect the use of a tax year that is not a required year.

    1. Partnerships and S Corporations must make a required payment on Form 8752.

    2. Personal service corporations failing to distribute certain amounts to employer-owners by December 31 of any taxable year may be required to defer certain deductions. They are not, however, required to make a payment on Form 8752.

    3. A TC 055 on the BMF identifies an approved Section 444 FYM election.

  8. Common Trust Funds are not technically partnerships, but file their tax returns on Form 1065; however, Section 584 as amended by the 1988 Act, requires that the taxable year of a Common Trust Fund be the calendar year for tax years beginning after December 31, 1987.

  9. Form 1041, U.S. Income Tax Return for Estates and Trusts, is filed by taxable Estates and Trusts. An estate is not required to adopt a calendar year. A taxable trust must adopt a calendar year. See Code §644(a). However a trust exempt from income taxation under §501(a) or §4947(a)(1) is not required to adopt a calendar year. See Code §644(b). These entities file a Form 990 or Form 990-PF. If these entities have unrelated business income they are also required to file a Form 990-T.

    Note:

    For additional information on Trusts filing as an Estate under Section 645 refer to IRM 3.13.2.28.

  10. Form 5227, Split-interest Trust Information Return, is filed by a taxable trust described in §4947(a)(2). This type of entity is required to adopt a calendar year.

  11. Request a credit transfer (Form 3465) of all claimed and unclaimed credits to the correct tax year.

  12. Form 1120S and Form 1065 will be assigned to Entity Unpostable Team.

  13. The following chart list different scenarios that will help resolve UPC 307 RC 1:

    IF AND THEN
    A. The unpostable return is an 1120, 1120S, 1065, 7004, and/or associated payment. a. It is a potential statute case. 1. Follow local procedures for statute cases.
    2. Resolve the unpostable condition and release using guidelines in this IRM.
    b. A pending action indicates the posted FYM is changing and the pending FYM matches the tax period on the return. 1. Request a transfer (Form 3465) of all claimed and unclaimed credits to the correct tax period.
    2. Close with the appropriate URC and cycle accordingly.
    c. The tax return is a FINAL tax return for the business and the return has not been coded as FINAL. 1. Edit the tax return with an "F" code.
    2. Close with URC 6 and CCC "F".
    Exception: For Form 7004, change FYM to the FYM on the final return using CC ENREQ. Close unpostable with URC 0 and cycle accordingly.
    d. The TC 054/055 is posted and the taxpayer is filing for a calendar year. There is an indication that the taxpayer is terminating the Section 444 Election based on tax period input by the taxpayer on the return, or a statement that they are conforming to the required tax year. Enter CCC Y and close with URC 6.

    Note:

    This will cause the tax return to post and reverse the TC 054/055 with a posted TC 057.

    e. A TC 057 has already generated (i.e. final 8752) and the return indicates a December year-end. 1. Input TC 016 to change the FYM to 12.
    2. Close with URC 0 and cycle accordingly.
    f. The TC 054/055 has posted and the taxpayer is filing for a calendar year. The taxpayer doesn't indicate the Section 444 Election is being terminated. 1. Correspond (using the appropriate letter) with the taxpayer to determine if they are terminating their Section 444.
    2. Suspend the case for 60 days.
    3. For extensions enter CCC W on the document and close using URC 6.
    g. There is no TC 053/054/055 posted. 1. Correspond (using the appropriate letter) with the taxpayer requesting a copy of the Notice of Acceptance or the approved Form 8716/1128.
    2. Suspend the case for 60 days.
    h. There is a TC 058/059 posted. 1. Correspond (using the appropriate letter) with the taxpayer requesting a corrected tax return.
    2. Suspend the case for 60 days.
    i. The unpostable tax period is correct. 1. Input TC 016 to change the FYM to agree with the unpostable document.
    2. Close using URC 0 and cycle accordingly.
    j. MF has TC 054/055 but input tax period does not agree with unpostable document.
    Close unpostable to the correct tax period using URC 6.
    k. The account reflects no TC 090 and FYM has not been updated. 1. Follow procedures for UPC 310 RC 4.
    2. Be sure to address FYM issues if not calendar year.
    B. The Form 7004 is for a MFT 06 with a FYM 12. The FYM is not established. 1. Input TC 016 to add FYM. Update sort name lines, LLC indicator and FRC as needed for a LLC.
    2. URC 0 and cycle as appropriate.
    C. The taxpayer responds to any of the above scenarios with a copy of a stamped approved Form 8716/1128, or Notice of Acceptance   1. Input the FYM with TC 054/055.
    2. Close with URC 0 and cycle accordingly.

    Note:

    FYM on MF must match before entering TC 054.

    D. The taxpayer responds to any of the above scenarios with a Form 8716 and it is timely filed and states Revenue Procedure 92-85 or Section 301.9100-2 on the top of the form.   1. Accept the Form 8716 and input TC 054/055.
    2. Close with URC 0 and cycle accordingly.
    E. The taxpayer responds to any of the above scenarios with a Form 1128, and it is timely filed.  
    1. Accept Form 1128 and input TC 053/054.
    2. Close with URC 0 and cycle accordingly.
    F. Taxpayer sends in a correct return.  
    1. Overlay the invalid return with the correct return. Attach the appropriate routing form.
    2. Close with URC 8, and request Rejects to renumber the return and to post to the correct FYM.
    G. No reply   1. Input TC 016 to change the FYM to the taxpayer's required tax year ending.
    2. Close with URC 8.
    3. Send to Rejects and request them to cancel the DLN and send to Files.
    And the form is a 7004. Close with URC D.
    H. The unpostable return is a Form 1041 and/or associated payment. The correct FYM cannot be resolved. 1. Correspond (using the appropriate letter) with the taxpayer requesting a corrected tax return.
    2. Suspend the case for 60 days.
    The correct FYM can be resolved. 1. Input TC 016 to update FYM.
    2. Close with URC 0 and cycle appropriately.
    I. Taxpayer sends in a correct return.  
    1. Overlay the invalid return with the correct return. Attach the appropriate routing form.
    2. Close with URC 8, and request Rejects to renumber the return and to post to the correct FYM.
    J. No reply  
    1. Close with URC 8.
    2. Send to Rejects and request them to cancel the DLN and send to Files.

  14. UPC 307 Resolution RC 1 Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts.

    1. Form 3520 is processed at the Ogden Submission Processing Center with the following Master File Tax (MFT) Code and Document Locator Number (DLN) make up:
      MFT Code 68
      File Location Code 60
      Tax Class 3
      Doc Code 83

    2. Form 3520 is filed annually by:
      Individuals using a SSN, will post on the BMF SSN (V or W tape)
      Individuals using an ITIN who do not qualify for a SSN per 6109
      Estates, Trusts, Partnerships, and Corporations using an EIN

    3. Form 3520
      There is no separate extension request for Form 3520. An extension is automatically granted when the taxpayer files an extension on Form 4868. The due date for Form 3520 is the same as the due date for the filers return. If the filer is an individual, then the due date for Form 3520 is the same as Form 1040, generally April 15.

    4. Use the table below to resolve the unpostable condition.

      If And Then
      The unpostable tax period is correct.
      1. It is the initial year filing.

      2. FY on return does not match filing history .

      3. No FYM on MF/Filing history matches.

      Input TC 016 to change the FYM to agree with the unpostable document. Close with URC 0 and cycle accordingly.
      The tax period on Master File is correct. The tax return was not edited correctly. Edit the Return and Close using URC 8 and request Rejects to correct the FYM.
      Unable to determine correct tax period on Master File. Filing history is inconsistent. Post the return to the FYM the taxpayer indicates on the return. Input TC 016 and close with URC 0. Cycle appropriately.
      The SSN, ITIN or IRSN on the unpostable return is incorrect.   Research for valid SSN, ITIN or IRSN. Close with URC 6 to the correct SSN (V or W). If no SSN is found assign ITIN and close with URC 6 and cycle as appropriate.

  15. UPC 307 Resolution RC 1 Form 3520-A, Annual Return of Foreign Trust With a U.S. Owner.

    1. Form 3520-A is processed at OSPC with the following MFT Code and DLN make up:
      MFT Code 42
      File Location Code 60
      Tax Class 3
      Doc Code 82

    2. Form 3520-A can be a fiscal or calendar year return. The type of entity is a Trust.

    3. Form 3520-A is used to set forth a full and complete account of the Trust’s activities, operation and other relevant information. The U.S. owner furnishes this information annually to himself and, if any, to other U.S. owners and beneficiaries of the trust who receive a distribution in that year.

    4. Extensions are filed on Form 7004. The due date for Form 3520-A is the 15th day of the 3rd month after the end of the trust tax year, generally March 15.

    5. Use the table below to resolve the unpostable condition.

      Note:

      Form 3520-A must be processed with an EIN. If an EIN cannot be found, use CC ESIGN to assign an EIN with prefix "98". Use the NIC "D" .

      If And Then
      The unpostable tax period is correct.
      1. It is the initial year filing.

      2. FY on return does not match filing history.

      3. No FYM on MF/Filing history matches.

      Input TC 016 to change the FYM to agree with the unpostable document. Close using URC 0 and cycle accordingly.
      The tax period (FYM) on Master File is correct. The return was not edited with the correct tax period. Close using URC 8 and request Rejects to correct the FYM.
      Unable to determine correct tax period on Master File. Filing history is inconsistent. Post the return to the FYM the taxpayer indicates on the return. Input TC 016 and close with URC 0. Cycle appropriately.
      The unpostable is a Form 7004 The wrong FYM was edited and input. Re-input TC 460 with correct FYM. Close unpostable with URC D.

3.13.222.49  (01-01-2014)
Unpostable Code (UPC) 307 Reason Code (RC) 4

  1. The Programming Requirements Package (PRP) for UPC 307 RC 4 states: TC 150 (document code 16) for MFT 02 attempting to establish the first MFT 02 tax module and the tax period month does not match the entity Fiscal Year Month.

  2. This unpostable is to verify the tax period for the first return filed when it is a Form 1120S. The "S" election is made on Form 2553 and is accepted with an input of a TC 090.

  3. A Section 444 election may be made by an electing (not an existing) S Corporation on Form 8716 to have a tax year other than a required tax year (September, October or November). TC 055 identifies the election on the BMF.

  4. The following chart list different scenarios that will help resolve UPC 307 RC 4:

    IF AND THEN
    A. The unpostable return is an 1120S a. A TC 054/055 is on the entity and the FYM on the return is different. 1. ESTAB for the TC 054/055.
    2. Verify FYM.
    3. If the FYM on Form 1128/8716 matches the return, input TC 052 and then re-input TC 054/055 and cycle appropriately.
    4. Close with URC 0 and cycle accordingly.
      b. The ESTAB'ed TC 054/055 FYM doesn't match the FYM on the return. 1. Correspond (using appropriate letter) with the taxpayer requesting a corrected return.
    2. Suspend for 60 days.
      c. The calendar year ending on the TC 090 agrees with the tax period on the unpostable and the account shows a different FYM. 1. Input TC 016 to change the FYM to 12.
    2. Close with URC 0 and cycle appropriately.
      d. There is no TC 054/055 on the account. 1. Correspond (using the appropriate letter) with the taxpayer requesting a copy of a stamped approved Form 8716/1128, or Notice of Acceptance.
    2. Suspend the case for 60 days.
      e. The selected tax year on the TC 090 is a fiscal year, the FYM on the unpostable return matches and there is no TC 054/055 on the account. 1. Correspond (using the appropriate letter) with the taxpayer requesting an approved stamped/timely Form 8716/1128, or a corrected return.
    2. Suspend the case for 60 days.
      f. The account is an LLC and there is no TC 076 or TC 090 on the account or the effective dates of the TC 076 and TC 090 are for a later tax period. Refer to IRM 3.13.222.73.6
    B. The taxpayer responds to any of the above scenarios. a. The taxpayer validates the fiscal year with a copy of a stamped approved Form 8716/1128 or Notice of Acceptance. 1. Input TC 054/055 using the taxpayer's documentation as the source document.
    2. Close with URC 0 and cycle appropriately.
      b. The taxpayer replies with a Form 8716, timely filed under Rev. Proc. 92-85 or Section 301.9100-2, or timely filed Form 1128. 1. Accept the Form 8716/1128 and input the appropriate TC.
    2. Close with URC 0, and cycle appropriately.
      c. The taxpayer replies with an unacceptable Form 8716/1128. 1. Deny the Form 8716/1128 and input a TC 058/059.
    2. Follow procedures in IRM 3.13.222.107 and IRM 3.13.222.106 for a denied Form 8716/1128.
    3. Input TC 016 to change the FYM to the taxpayer's required tax year ending.
    4. Close with URC 8.
    5. Request Rejects to cancel the DLN and forward to Files.
      d. Taxpayer sends in a corrected return. 1. Overlay the invalid return with the corrected return. Attach the appropriate routing form.
    2. Close with URC 8 and request Rejects to renumber the return and post to the correct FYM.
    C. No reply The unpostable form has been suspended. 1. Input TC 016 to change the FYM to the taxpayer's required tax year ending.
    2. Close with URC 8.
    3. Send to Rejects and request them to cancel the DLN and re-file.
    D. TC 092 is present on the account and return is coded with a Reject action code of 347, It is the initial return and account indicates a 312C or 6800sce has been sent. The input of the TC 092 has been less than 60 days, 1.Suspend for 60 days.
    2.Review account for a posted TC 090. If TC 090 is posted for valid effective, URC 0 and cycle as appropriate.
    3.If account does not have a TC 090 with a valid effective date:
    •Return is for a corporation refer to no reply instructions in IRM 3.13.222.62.
    •Return is for a LLC refer to no reply instructions in IRM 3.13.222.73.6.

3.13.222.50  (01-01-2014)
Unpostable Code (UPC) 307 Reason Code (RC) 5

  1. The Programming Requirements Package (PRP) for UPC 307 RC 5 states:
    TC 150 for MFT 06 or TC 150 (document 16) for MFT 02 with tax period month other than 12 matching on entity Fiscal Year Month and a TC 054/055 is not posted. Bypass on corrected UPC 307–5.

  2. A UPC 307 RC 5 is caused when a return (TC 150) attempts to post for a MFT 06 (Form 1065) or for a MFT 02 (Form 1120S) with a FYM other than 12, and:

    1. The FYM on the tax return matches the FYM on the BMF, and a TC 054 (Form 1128, Revenue Procedure 2006-46) or a TC 055 (Form 8716, Section 444) is not present on the BMF.

  3. Research the unpostable EIN for TC 054/055 and do the following:

    IF AND THEN
    A. The unpostable is a Form 1120S or Form 1065 A TC 054/055 is present on the BMF with the correct FY. Close with URC 0.
    B. The unpostable is a Form 1120S a. The FYM on the BMF and the UPC 307 do not match. Input TC 016, if applicable, when closing the unpostable using URC 0 and cycle appropriately.
      b. The tax return is a FINAL tax return for the business and the return has not been coded as FINAL. 1. Edit the tax return with an CCC "F" code.
    2. Close with URC 6 and CCC "F" .
      c. The tax return is a FINAL (last) Form 1120S, the 1120 FRC has changed to 01 due to a TC 091/096; and there is no "F" code on IDRS. 1. Prepare a Dummy Form 2553 (see Exhibit 3.13.222-1) and re-input the TC 090 (suppress the notice with PSC>Z) for the original date that the taxpayer requested. (This transaction may create an UPC 339 after two cycles. Monitor and close the UPC 339 for these cases with a URC 0).
    2. Close with URC 6 and CCC "Y" and cycle appropriately.
    3. Re-input TC 091/096 (suppress the notice with PSC>Z) to reverse the Dummy 2553 and cycle delay 6.
      d. There is no TC 05X on IDRS.
    1. ESTAB for TC 090 to verify if Part II is checked.
    • If checked or Form 1128/8716 is found attached, input TC 016 to update FYM, if necessary

    • Input TC 054 (post delay one cycle if TC 016 was input) using a Dummy Form 1128 or Form 8716, as appropriate (suppress the notice with PSC>Z).

    • Close with URC 0 and cycle appropriately.


    2. If Part II is not checked or Form 1128/8716 is not attached, correspond with the taxpayer requesting documentation for the correct FYM.
    3. Inform the taxpayer that their return will be withdrawn from processing if they do not reply.
    4. Suspend the case for 60 days.
      e. Research indicates the entity has a TC05X and they are 52-53 week year filer. 1. URC 6 or 8 to the correct FYM.
    C. The taxpayer responds to the correspondence a. The taxpayer provides a copy of their Chief Counsel letter ruling granting their Grandfathered FYM. 1. Input TC 016 to match the FYM of the TC 054 (if necessary).
    2. Input TC 054 using a Dummy Form 1128 (suppress the notice with PSC>Z), with the taxpayer's ruling letter as the source document.
    3. Cycle the TC 054 one cycle.
    4. Close with URC 0 and cycle appropriately.
      b. The taxpayer provides documentation (i.e., copy of accepted Form 1128 or Form 8716, Private Letter Ruling, etc.) to accept the FYM on the unpostable tax return. 1. Change the FYM on the BMF using a TC 054/055 (Dummy Form 1128 and Form 8716, as appropriate), (suppress the notice with PSC>Z).
    2. Close with URC 0 and cycle appropriately.
      c. The taxpayer responds with a statement that a short period tax return was filed under Section 1377(a)(2) and a statement is attached indicating the termination of a shareholder. 1. Close with URC 8. Request Rejects to cancel DLN and re-file.
    2. Send appropriate letter to taxpayer informing them a full 12-month period tax return is required and to attach to the return a statement indicating the termination of a Shareholder under Section 1377(a)(2).
    D. The taxpayer sends in a correct return.   1. Overlay the invalid return with the corrected return. Attach the appropriate routing form.
    2. Close with URC 8 and request Rejects cancel the DLN and to renumber the corrected return and post to the correct FYM.
    E. No reply or the taxpayer's response is insufficient The FYM on the unpostable tax return is not acceptable. 1. Input TC 016 to change the FYM to the taxpayer's required tax year ending.
    2. Close with URC 8.
    3. Send to Rejects and request them to cancel the DLN.

    Note:

    See Exhibit 3.13.222-1 for creating a Dummy Form 2553 with TC 090; Exhibit 3.13.222-2 for creating a Dummy Form 1128 with TC 054; Exhibit 3.13.222-3 for creating a Dummy Form 1128 with TC 053; and Exhibit 3.13.222-4 for creating a Dummy Form 8716 with TC 054/055.

  4. Form 1065 partnerships, other than Common Trust Funds, generally have one or more "majority partners" . To determine the majority partner, review the box J on the Schedule K-1's attached to the Form 1065. If the "Ownership of Capital-End of Year" line exceeds or equals 50% and all other Schedule K-1's attached are less than 50%, the partner is considered the majority partner. However, if the Schedule K-1 specifies all partners within the partnership have an equal share (i.e. 3 partners each with 331/3%), each partner is a majority partner.

  5. "Ownership of Capital" is defined as the portion of capital the partner would receive if the partnership were liquidated at the end of the year by the distribution of undivided interests of partnership assets and liabilities.

  6. If the Schedule K-1's are not attached or the "Ownership of Capital-End of Year" line is incomplete, contact the partnership to determine if there is a partnership agreement, and whether the agreement states the percentages each partner is entitled, which should have appeared on the "Ownership of Capital-End of Year" line.

    IF AND THEN
    A. The unpostable is a Form 1065 a. A TC 054/055 has been input and the FYM matches the FYM on the unpostable. Close with URC 0.
      b. There is no TC 054/055 or it is posted incorrectly and the partnership is comprised of a majority partner with a greater than 50% or more ownership. (Shown on the partnership K-1). The FYM of the majority partner must match the FYM on the return. 1. Input TC 054 using a Dummy Form 1128 (suppress the notice with PSC>Z).
    2. Close with URC 0 and cycle appropriately.
      c. There is no TC 054 or TC 055 present or if it is posted incorrectly and the partnership is comprised of a majority partner with less than 50% ownership shown on the partnership K-1. The FYM of the majority partner must match the FYM on the return. 1. Correspond with the taxpayer using the appropriate letter, for a copy of a stamped, approved Form 1128 or Notice of Acceptance.
    2. Suspend the case for 60 days.
      d. There is no Schedule K-1 attached and the Tax Matter Partner's (TMP) FYM matches the return. 1. Input TC 054 using a Dummy Form 1128 (suppress notice with PSC>Z) and put the partners EIN/SSN in the remarks for future research, and attach supporting documents, if applicable.
    2. If the FYM on the BMF does not agree with the FYM on the unpostable tax return, input TC 016 to make the FYMs match and cycle delay the TC 054.
    3. Close with URC 0 and cycle appropriately.
      e. There is no Schedule K-1 attached and there is no TMP on the return. 1. Correspond (using the appropriate letter) with the taxpayer for a copy of the stamped Approved Form 1128/8716, or Notice of Acceptance.
    2. Suspend the case for 60 days.
      f. There is no Schedule K-1 attached and the TMPs FYM does not match the return. 1. Correspond, (using the appropriate letter) with the taxpayer for a copy of the stamped, approved Form 1128/8716, or Notice of Acceptance.
    2. Suspend the case for 60 days.
      g. The partnership is terminating, but the taxpayer does not quote Section 708(b)(1)(B) 1997-24. 1. Assign a new EIN.
    2. Close with URC 6 and cycle appropriately.
      h. The partnership is terminating, and the taxpayer quotes Section 708(b)(1)(B) 1997-24. 1. Do not assign a new EIN to the partnership.
    2. Enter CCC Y and close with URC 6.
      i. The taxpayer quotes IR Section 754 (transfer of partnership interest). Enter CCC Y and close with URC 6.
    B. The taxpayer responds to the letter. a. The taxpayer provides a Schedule K-1 and/or the TMP information. 1. Input TC 054 using a Dummy Form 1128 (suppress notice with PSC>Z) and put the partners EIN/SSN in the remarks for future research.
    2. If the FYM on the BMF does not agree with the FYM on the unpostable tax return, input TC 016 to make the FYMs match and cycle delay the TC 054.
    3. Close with URC 0 and cycle appropriately.
      b. The taxpayer provides a Schedule K-1 and/or the TMP information does not match.
    1. Input a TC 016 to change the FYM to the taxpayer's required tax year.
    2. Close with URC 8 to cancel the DLN and forward to Files.
      c. The taxpayer provides an approved Form 8716/1128, or Notice of Acceptance.
    1. Input a TC 055/054.
    2. Close with URC 0 and cycle appropriately.
      d. The taxpayer provides an unacceptable Form 8716/1128.
    1. Deny Form 8716/1128 and input a TC 058/059 as applicable.
    2. Input TC 016 to change the FYM to the taxpayer's required tax year ending.
    3. Close with URC 8.
    4. Request Rejects cancel the DLN and forward to Files.

    Note:

    See IRM 3.13.222.106 and IRM 3.13.222.107 for additional instructions for Form 1128 and Form 8716.

    C. The taxpayer replies with a corrected return   1. Process the Form 1065.
    2. Close the existing unpostable with URC 8.
    3. Request Rejects cancel the DLN and forward to Files.
    D. No reply   1. Input TC 016 to change the FYM to the taxpayer's required tax year ending.

    2. Close with URC 8.
    3. Request Rejects cancel the DLN and forward to Files.

3.13.222.51  (01-01-2014)
Unpostable Code (UPC) 307 Reason Code (RC) 6

  1. The Programming Requirements Package (PRP) for UPC 307 RC 6 states: All TC 150 for MFT 02 (exclude doc code 16) (Form 1120S) with tax period month other than 12 not matching on entity Fiscal Year Month, Form 1120 FRC is 19 for Personal Service Corporations, and TC 054/055 is posted. Bypass on corrected UPC 307 RC 6.

  2. TC 150 for MFT 02 with document code 09/11 and ABLM Code 400 (Form 1120 PSC only) with a tax period month other than 12 and the Form 1120 FRC does not equal 19. Bypass on corrected UPC 307.6.

  3. TC 150 for MFT 02 with document code 09/11 and ABLM Code 400 with a tax period month other than 12 and the Form 1120 FRC is other than 19.

    Note:

    When writing to a PSC where the taxpayer has a history of filing fiscal returns without a TC05X, they should amend a maximum of 3 years returns (depending on the taxpayers history). The oldest return should be a short year return and the first and second prior years should be calendar year returns. If the taxpayer responds with only a short period return for the required year that covers the period of the unpostable, accept the return as filed.

  4. See Exhibit 3.13.222-4 for an example of BRCHG Screen for TC 054/055.

  5. The following chart lists different scenarios that will help resolve UPC 307 RC 6:

    IF AND THEN
    A. Section A on the Form 1120 is checked indicating it is a personal service corporation. a. The return has Doc Code 09/11 and ABLM code 400. Research has indicated the entity is a PSC and there is not a TC 054 on the account. Refer to IRM 3.13.222.39(18) for lists of valid business activities for PSCs. 1. Correspond (using the appropriate letter) with the taxpayer requesting a stamped, accepted copy, or Notice of Acceptance of Form 8716/1128.
    2. Suspend the case for 60 days.
    b. A timely Form 8716/1128 is attached to the return and no TC 054 has been processed. 1. Input TC 054.
    2. Close with URC 0 and cycle appropriately.
    c. A TC 055 is posted to the account with the correct FYM. 1. Input TC 052 to reverse TC 055.
    2. Input Dummy TC 054 with PDC of 1.
    3. Close with URC 0 and cycle appropriately.
    B. Section A on the Form 1120 is checked indicating it is a personal service corporation. a. The return has Doc Code 09/11 and ABLM code 400. Research indicates they are not a PSC. IRM 3.13.222.39IRM 3.13.222.39(18) defines a PSC and lists the valid business activities. 1. Close with URC 8.
    2. Edit return by circling out ABLM code.
    3. Request Rejects to cancel the DLN, renumber as a Form 1120 and delete the ABLM code.
    C. Section A on Form 1120 does not indicate it is a personal service corporation. The return has Doc Code 09/11 and ABLM code 400. 1. Close with URC 8.
    2. Edit return by circling out ABLM code.
    3. Request Rejects to cancel the DLN, renumber as a Form 1120 and delete the ABLM code.
    D. The taxpayer responds. a. The taxpayer states that he/she filed a Form 8716/1128 and attached it to a specific return. 1. Request the return from Files.
    2. If the Form 8716/1128 is found, input TC 054.
    3. Close with URC 0 and cycle appropriately.
    4. If Form 8716/1128 is not found, then correspond with the taxpayer using the appropriate letter, informing them that their return is not valid.
    5. Close with URC 8, requesting Rejects to cancel the DLN and forward to Files.
      b. The taxpayer provides a copy of an approved Form 8716/1128 or Notice of Acceptance. 1. Input a TC 054.
    2. Close with URC 0 and cycle appropriately.
      c. The taxpayer responds with a timely filed Form 8716. 1. Input TC 054.
    2. Close with URC 0 and cycle appropriately.
      d. The taxpayer responds with a Form 8716, timely filed under Rev. Proc. 92-85 or 301.9100-2. 1. Accept it and input TC 054.
    2. Close with URC 0 and cycle appropriately.
      e. The taxpayer responds stating they are not a PSC. 1. Close with URC 8.
    2. Edit return by circling out ABLM code.
    3. Requests Rejects to cancel the DLN, renumber as a Form 1120 and delete the ABLM code.
    E. No reply   1. Input TC 016 to change the FYM to the taxpayer's required tax year ending.
    2. Close with URC 8 and request Rejects to cancel the DLN and forward to Files.

    Note:

    See IRM 3.13.222.106 and IRM 3.13.222.107 for additional processing instructions for Form 1128 and Form 8716.

3.13.222.52  (01-01-2014)
Unpostable Code (UPC) 307 Reason Code (RC) 7

  1. The Programming Requirements Package (PRP) for UPC 307 RC 7 states:
    TC 150 with Condition Code Y or TC 620 with Condition Code W not matching on entity Fiscal Year Month with input FYM not equal to 12 attempting to post with TC 054/055 posted. Bypass on corrected UPC 307.7.

  2. The following chart lists scenarios that will help resolve UPC 307 RC 7.

    IF AND THEN
    A. The unpostable is a TC 620 for Form 7004 (Form 1065). The Change in Account Period box is marked. Close with URC 6 and post to the correct tax period.
    B. The unpostable is a TC 620 for Form 7004 (Form 1065). The extension is for the Final 1065. 1. Input TC 016 to change the FYM to the 1065.
    2. URC 0 and cycle extension as appropriate.
    3. Input TC 016 to change the FYM back using a posting delay code of 6.
    C. The unpostable is a Form 1065. a. The FY on the return doesn't match the FY on the BMF.
    1. ESTAB for TC 054/055.
    2. Verify FY.
    3. If FY on Form 1128/8716 matches return, input TC 052 and then re-input TC 054/055 and cycle appropriately.
    4. Close with URC 0 and cycle accordingly.
      b. TC 054/055 doesn't match return 1. Correspond (using the appropriate letter) with the taxpayer.
    2. Suspend the case for 60 days.
    D. The taxpayer responds. a. The taxpayer states that the Form 8716/1128 was filed and attached it to a specific return. 1. Request the return from Files.
    2. If the Form 8716/1128 is found, process according to procedures described in IRM 3.13.222.107 and IRM 3.13.222.106.
    3. If Form 8716/1128 is not found, then correspond with the taxpayer using the appropriate letter, informing them that their return is not valid.
    4. Close with URC 8, requesting Rejects to cancel the DLN and forward to Files.
      b. The taxpayer provides a copy of an approved Form 8716/1128 or Notice of Acceptance. 1. Input a TC 054/055.
    2. Close with URC 0 and cycle appropriately.
      c. The taxpayer responds with a timely filed Form 8716. 1. Process per IRM 3.13.222.107
    2. Close with URC 0 and cycle appropriately.
      d. The taxpayer responds with a Form 8716, timely filed under Rev. Proc. 92-85 or 301.9100-2. 1. Accept it and input TC 055/054.
    2. Close with URC 0 and cycle appropriately.
    E. No Reply   1. Input TC 016 to change the FYM to the taxpayer's required tax year ending.
    2. Close with URC 8.
    3. Send to Rejects and request Rejects to cancel the DLN.
    F. The unpostable is a Form 1120S with a FYM other than 12. a. There is a CCC "Y" indicated on the return and on UPRES and a valid termination or revocation attached. 1. Input TC 016 to update the FYM to match the return.
    2. Input TC 096 or TC 091 with a BK 95 and the appropriate effective date.
    3. Input TC 052 (PDC 1) to reverse TC 055.
    4. Close case with URC 0 and cycle appropriately.
    b. There is a CCC "Y" indicated on the return, but NOT indicated on UPRES and a valid termination or revocation. 1. Input TC 016 to update the FYM to match the return.
    2. Input TC 096 or TC 091 with a BK 95 and the appropriate effective date.
    3. Input TC 052 (PDC 1) to reverse TC 055.
    4. URC 8 with request to Rejects to input CCC "Y" for final 1120S.

    Note:

    See IRM 3.13.222.106 and IRM 3.13.222.107 for additional processing instructions for Form 1128 and Form 8716.

3.13.222.53  (01-01-2014)
Unpostable Code (UPC) 307 Reason Code (RC) 8

  1. The Programming Requirements Package (PRP) for UPC 307 RC 8 states: The input fiscal month of TC 150 for MFT 02, Doc Code 07 (Form 1120 FSC) did not match entity FYM, TC 060 is posted but its effective date is greater than the tax period on input.

    IF AND THEN
    A. The unpostable is a Form 1120-FSC. a. The effective dates and the unpostable document are not the same 1. Change the date for the unpostable to agree with the Form.
    2. Close with URC 8 and transship to Ogden.

3.13.222.54  (01-01-2014)
Unpostable Code (UPC) 308 - General Instructions

  1. Verify that the employment code is correct, see IRM 3.13.12.6.29 for assigning employment codes.

    Note:

    If EO questions arise while processing documents, please contact Ogden at 801-620-7093.

    Employment Code Type of Employer
    C Church or church controlled organization filing Form 8274.
    F Federal Employer
    G State of local government agency
    I Indian Tribal government
    M Maritime Industry
    S Foreign Subsidiary
    T State or local government agency covered under Section 218 agreement
    W Section 501(c)(3) of the IRC Non-profit organization

  2. To verify Employment Code "G" or "T" contact the Social Security or State Retirement Officer.

    • Do not change Employment Code T to G.

    • Employment Code T does not have a status of sub-section.

  3. To verify Employment Code "W" , use CC INOLE or ENMOD and determine from the EO section if the "W" is correct.

    1. The "W" is correct if the EO subsection is 03 and the EO Status is 01-02, 19 or 25.

    2. The "W" is correct if the EO subsection is 50, 60 or 70 and the EO Status is 01-02.

    3. The "W" is correct if the EO Status is 7, 10 or 11.

    4. The "W" is correct if the taxpayer is a church without an EO section. The term integrated auxiliary or qualified church controlled organization of a church refers to a class of organizations that are related to a church or convention or association of churches, but are not such organizations themselves. In general, the IRS will treat an organization that meets the following three requirements as an integrated auxiliary of a church. The organization must: * be described both as an IRC Section 501(c)(3) charitable organization and as a public charity under IRC Sections 509(a)(1), (2), or (3), * be affiliated with a church or convention or association of churches, and * receive financial support primarily from internal church sources as opposed to public or governmental sources. If this organization is a qualified church controlled organization then they are not required to file a Form 940.

    5. The "W" is not correct if the EO section is present and the EO subsection is not 03, 50, 60 or 70 and the EO Status is not 01-02, 19 or 25. If the EO Status is 40, then treat as if no EO section is present.

    6. If no EO section is present or the EO Status is 40 on an account that is not a church, research EDS to determine if an application for exemption is pending. If the application is pending, make sure an EO section is present and the EO Status is 40.

    7. If no EO section is present or the EO status is 40, contact the taxpayer via telephone and request a copy of the exemption letter to determine what type of organization if unable to determine type of entity.

      Note:

      Employment Code "W" should not be applied to Puerto Rico or Virgin Island employers.

  4. To verify Employment Code "C," a TC 070 must be posted. A REV EMP C transcript will generate if the taxpayer files a Form 941 and pays FICA taxes.

    1. Follow procedures in IRM 3.13.12 to verify the EMP C. Do not input a TC 071 to reverse the TC 070 until you have received the transcript and made a determination. If you are unsure, see your manager or lead before inputting the TC 071.

    2. If a TC 071 has been input as a result of an Entity employee error, reverse the TC 071 with a TC 073, cycle the transaction, and re-input the TC 070. NEVER reverse the input of a TC 071 due to taxpayer error.

  5. To verify Employment Code "F" , contact the taxpayer to determine if the "F" is correct.

  6. BMF Entity Unpostables is not able to add or change ECs F, G, or T. If an entity needs action on one of these ECs, contact Federal State Local Government at 512-499-5706.

3.13.222.55  (01-01-2014)
Unpostable Code (UPC) 308 Reason Code (RC) 4

  1. The Programming Requirements Package (PRP) for UPC 308 RC 4 states:
    Any return (TC 150 - non-document code 51) input to Form 940 tax module (MFT 10) and the entity Employment Code equals "G" . Exception: TC 150 for MFT 10 posting to a tax module with no credit balance and return has 0 Total Tax Settlement.

  2. A Form 940 attempts to post and the Employment Code is "G" .

    Note:

    Verify that the Employment Code is correct. See IRM 3.13.12 for criteria.

  3. The following chart list different scenarios that will help resolve UPC 308 RC 4:

    IF AND THEN
    The unpostable is a Form 940. a. The Employment Code "G" is correct and no payment is unposted. 1. Close with URC 8.
    2. Request Rejects using the appropriate routing form to cancel the DLN and re-file.
    3. Determine if a manual refund is necessary. Prepare Form 3244, Payment Posting Voucher or RTR (Remittance Transaction Research System) print, and request Rejects, using the appropriate routing form, to refund the payment.
    4. Use the 858C Letter or other appropriate letter, notify the taxpayer that they are not liable for Form 940 (and payment will be refunded if necessary). Remove the 940 FR if it is present. Figure 3.13.222-8
      b. The Employment Code "G" is correct and a TC 610 is unposted on UPTIN. 1. Close the unpostable 940(10) with URC 8.
    2. Request Rejects using the appropriate routing form to cancel the DLN and re-file.
    3. Use the 858C Letter or appropriate letter, notify the taxpayer that they are not liable for Form 940 and the payment will be refunded. Remove the 940 FR if it present.
    4. Close the UPC TC 610 URC 8.
    5. Prepare a Form 3244, Payment Posting Voucher or RTR print and route to Rejects for refund.
      c. The Employment Code "G" is not correct. 1. Input employment code "9" using BNCHG to delete the employment code.
    2. Close with URC 0 and cycle appropriately.

    Figure 3.13.222-8
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    UPC 308 RC 4

3.13.222.56  (01-01-2014)
Unpostable Code (UPC) 308 Reason Code (RC) 5

  1. The Programming Requirements Package (PRP) for UPC 308 RC 5 states:
    Any transaction except TC 370 (Doc Code 51) and TC 650 (Doc Code 97, 19 (EFTP) input to establish a MFT 10 tax module (see 5.02 (6) (f)) and the entity Employment Code (EC) is "T, W, F, G, or C" . Bypass this check on a corrected UPC 308 RC 5 with EC "W" . Exception: TC 150 for MFT 10 posting to a tax module with no credit balance and return has 0 Total Tax Settlement.

    Note:

    The following transactions will NOT POST if the MFT is 10:

    1. TC 150, return (except EC "G" )

    2. TC 370, account transfer in

    3. TC 474, return pending

    4. TC 520, closing Code 85–88, 89 (Bankruptcy) and closing Code 81 (Bankruptcy)

    5. TC 59X, taxpayer reply transaction

    6. TC 610 through 670, payments

    7. TC 611, reversal of TC 610

    8. TC 700, 710, 716 prior tax period, credit transfer

    9. TC 840, manual refund

    10. TC 91X, Intelligence Active

    11. TC 930, Push Code transaction

    12. TC 940/942, Strike Force

    13. TC 960, Central Authorization

    14. TC 971, Miscellaneous Transaction

  2. The following chart lists different scenarios that will help resolve UPC 308 RC 5:

    IF AND THEN
    A. TC 071 has been input. It is an Entity employee error. 1. Reverse the TC 071 with a TC 073.
    2. Re-input the TC 070 and cycle appropriately.
    3. NEVER reverse the input of the TC 071 due to a taxpayer error.
    B. The unpostable document is an FTD. a. FTD is for Magnetic Tape Deposit. 1. Correspond with the taxpayer using the appropriate letter requesting where to apply the deposit.
    2. Apply the money according to the taxpayer's reply.
    b. The payment is not to be applied to another tax period or is to be refunded. 1. Transfer the credit per local campus procedures.
    2. Include a copy of the taxpayers response and any research material.
    C. TC 700 or TC 710, credit transfer   Contact the preparer for corrective action.
    D. TC 840, Manual Refund The module is not a Dummy on IDRS. Contact Accounting for corrective action.
    E. TC 611   Contact the preparer for corrective action.
    F. TC 520 Closing code 85-88, 89 (bankruptcy) or Closing 81 (bankruptcy) Contact Collections for corrective action.
    G. TC 370 a. The account transfer must not post because it is a Doc Code 51 or 52 and the employment code is correct. 1. Contact the initiator and inform them that the employment code is correct, the taxpayer does not owe this tax and an abatement will be required.
    2. Suspend the case until the initiator responds.
    3. Close with URC 0.
    4. Route to AM/Adjustments using Form 3465, informing them to review the case for a possible adjustment and abatement of taxes.
    b. Doc Code 51 was prepared because of an account maintenance transcript. 1. The money on the tax module can be refunded.
    2. Close appropriately.
    3. Input a TC 591 for the tax period on the BMF.
    H. TC 474, Return Pending   Close with URC D.
    I. TC 59X a. The 940 FR is on IDRS. 1. Delete the FR using BNCHG.
    2. Close with URC D.
    b. The 940 FR is not on IDRS. Close with URC D.
    J. TC 91X, 930, 940, 942, 960 or 971.   1. Close with URC 2 and route to originator.
    2. If unable to determine the originator, close with URC D.
    K. The unpostable is a credit portion of a Doc Code 34, credit transfer.   1. Close with URC 6 to the account where the debit posted.
    2. Route to preparer.
    L. The unpostable return is a Form 940. a. The taxpayer is tax exempt and not liable for FUTA. 1. Close with URC 8.
    2. Request Rejects, using the appropriate routing form, to cancel the DLN and forward to Files.
    3. Determine if a manual refund is necessary. Prepare Form 3244, Payment Posting Voucher or RTR (Remittance Transaction Research System) print, and request Rejects, using the appropriate routing form, to refund the payment.
    4. Remove 940 filing requirement, if present.
    5. Using the 858C letter or appropriate letter, notify the taxpayer they are not liable for Form 940 (and payment will be refunded if necessary). If the 858C or appropriate letter has been sent within the last 30–45 days, no need to send another letter.
    b. The taxpayer is tax exempt and not liable for FUTA, and a TC 610 is unposted on UPTIN. 1. Close the unpostable Form 940 with URC 8.
    2. Request Rejects, using the appropriate routing form, to cancel the DLN and forward to Files.
    3. Close the unpostable TC 610 with URC 8.
    4. Prepare Form 3244, Payment Posting Voucher, or RTR (Remittance Transaction Research System) print, and request Rejects, using the appropriate routing form, to refund the payment.
    5. Remove 940 filing requirement, if present.
    6. Using the 858C letter or appropriate letter, notify the taxpayer they are not liable for the Form 940 and the payment will be refunded.
    M. The unpostable is a payment (i.e., TC 610, TC 670, etc.) The taxpayer is tax exempt and not liable for FUTA. 1. Close with URC 8.
    2. Prepare Form 3244, Payment Posting Voucher, or RTR (Remittance Transaction Research System) print, and request Rejects, using the appropriate routing form, to refund the payment.
    3. Using the 858C letter or appropriate letter, notify the taxpayer that they are not liable for Form 940 and the payment will be refunded.
    N. The unpostable return is a Form 940 It cannot be determined if the entity is a qualified church controlled organization, Send 858C and suspend case for 60 days.
    O. Reply Entity does qualify as a church controlled organization and is not liable for FUTA, 1. Close with URC 8.
    2. Request Rejects, using the appropriate routing form, to cancel DLN and forward to files.
    3. Remove 940 filing requirement, if present.
      Entity does qualify as a church controlled organization and is not liable for FUTA and a TC 610 is unposted on UPTIN, 1.Close the unpostable Form 940 with URC 8.
    2. Request Rejects, using the appropriate routing form, to cancel DLN and forward to files.
    3. Close the unpostable TC 610 with URC 8.
    4. Prepare Form 3244, Payment Posting Voucher, or RTR (Remittance Transaction Research System) print, and request Rejects, using the appropriate routing form, to refund the payment.
    5. Remove 940 filing requirement, if present.
      Entity does not qualify as a church controlled organization and is liable for FUTA, 1.Input TC 016 and remove Employment Code of W.
    2. URC 0 and cycle appropriately.
    P. No reply   1.Input TC 016 and remove Employment Code of W.
    2. URC 0 and cycle appropriately.
    Q. The unpostable is a payment (i.e., TC610, TC670, etc.) It cannot be determined if the entity is a qualified church controlled organization, Send 858C and suspend case for 60 days.
    R. Reply Entity does qualify as a church controlled organization and is not liable for FUTA, 1.Close with URC 8.
    2.Prepare Form 3244, Payment Posting Voucher or RTR (Remittance Transaction Research System) print, and request Rejects, using the appropriate routing form, to refund the payment.
      Entity does not qualify as a church controlled organization and is liable for FUTA, 1.Input TC 016 and remove Employment Code of W.
    2. URC 0 and cycle appropriately.
    S. No Reply   1.Input TC 016 and remove Employment Code of W.
    2. URC 0 and cycle appropriately.

    Note:

    The campuses have the option of using Form 3244, or the RTR print, when the taxpayer is not liable for Form 940, and the payment will be refunded to the taxpayer. The campuses must be consistent in whichever choice is made, (i.e., if one campus chooses to use the RTR print, they must be consistent in using the RTR print, if another campus chooses to use the Form 3244, they must be consistent in using the Form 3244).

    Figure 3.13.222-9
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    UPC 308 RC 5

3.13.222.57  (01-01-2014)
Unpostable Code (UPC) 308 Reason Code (RC) 8

  1. The Programming Requirements Package (PRP) for UPC 308 RC 8 states:
    Any MFT 01 TC 150 with Computer Condition Code T if the entity Employment Code is "F"

  2. The Form 941 with Computer Condition Code T attempts to post, the Employment Code is "F" and the 941 FRC is 00/01/02/03/04/51/06/07/11/12/13.

  3. Effective with the first quarter of 1989, Form 941 filers who have employees on a seasonal or intermittent basis or Form 941E filers who do not have distributions every quarter can file their Form 941 on a seasonal/intermittent basis. However, at least one return must be filed every year, even if no wages or distributions were made during that year.

  4. Condition Code "T" identifies these filers.

  5. Seasonal/intermittent taxpayers who fail to check the box on the Form 941 will be changed back to normal Form 941 filers.

  6. Federal agencies cannot file Form 941 on a seasonal/intermittent basis.

  7. The following chart lists different scenarios that will help resolve UPC 308 RC 8:

    IF AND THEN
    The unpostable is a Form 941. a. The employment code is correct. 1. Input a TC 016 to change the filing requirement to 02.
    2. Close with URC 8.
    3. Request Rejects using the routing form to remove the Computer Condition Code T and reprocess the form.
    b. The employment code is correct and the filing requirement code is 02. 1. Close with URC 8.
    2. Request Rejects using the routing form to remove the Computer Condition Code T and reprocess the form.
    c. The employment code is incorrect. 1. Input a TC 016 to delete the employment code or input the correct employment code.
    2. Close with URC 0 and cycle appropriately.

3.13.222.58  (01-01-2014)
Unpostable Code (UPC) 308 Reason Code (RC) 9

  1. The Programming Requirements Package (PRP) for UPC 308 RC 9 states:
    Any transaction input to establish an MFT 10 tax module except TC 650 (Doc Code 97/19 (EFTP)) If the Entity Employment Code is blank, the entity EO Status is 01 through 19, and the Entity EO subsection is 03/ 50/60/ 70. Exception: TC 150 for MFT 10 posting to a tax module with no credit balance and return has zero Total Tax Settlement.

  2. Any transaction attempting to establish a MFT 10 tax module and the EO subsection is 03, 50, 60, or 70 and the EO status is less than 20 with no employment code.

    Note:

    If the Employment Code is not updated, input a TC 016 updating the Employment Code to "W" .

  3. The following chart lists different scenarios that will help resolve UPC 308 RC 9:

    IF AND THEN
    A. The unpostable is a Form 940. a. Research indicates an EO subsection of 03, 50, 60 or 70. 1. Update the Employment Code to "W" using CC BNCHG.
    2. Close with URC 8.
    3. Request Rejects, using the appropriate routing form to cancel the DLN and re-file, taxpayer not liable.
    4. Remove the 940 FR, if present.
    b. Research indicates prepaid credits. Correspond with the taxpayer informing them that the payments will be applied to any outstanding balance before a refund will be released.
    c. Research indicates no outstanding balance. Correspond with the taxpayer informing them they must file a Form 843, Claim for Refund and Request for Abatement to receive the refund.
    B. The unpostable is a payment (i.e., TC 610, TC 670, etc.) a. Research indicates a TC 150 is also unposted. 1. Reassign the TC 150 to yourself to coordinate the resolution of both unpostables.
    2. Correspond with the taxpayer, using the 858C or appropriate letter, that they are not liable for the Form 940 and the payment will be refunded.
    3. Close with URC 8.
    4. Request Rejects using the appropriate routing form to cancel the DLNs, post the money to Unidentified.
    5. Remove the 940 FR, if present.
    b. No TC 150 is unposted. 1. DO NOT WAIT for the TC 150.
    2. Close the unpostable with URC 8.
    3. Route to Rejects using the appropriate routing form and Form 3244 or RTR print to Unidentified to refund payment.
    C. The unpostable is a TC 59X   Close with URC D.

    Note:

    If Form 940 is received and no payment has posted to the module, correspond with the taxpayer using the 858C or appropriate letter, inform the taxpayer they are not liable for Form 940. Also, if 858C or appropriate letter has been sent within the last 30-45 days, no need to send another letter.

3.13.222.59  (01-01-2014)
Unpostable Code (UPC) 310 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 310 RC 1 states:

  2. A TC 090 input, or MFT 02 TC 150 (Doc Code 16) return carries a significant S-Corp effective date, and Form 1120 FR code is 03 or 04.

    Note:

    Life Insurance or Property and Casualty appearing in the name line may indicate an insurance company subject to tax under Subchapter L.

  3. The following chart lists different scenarios that will help resolve UPC 310 RC 1:

    IF the UNP is a Form 2553 (TC 090) or Form 1120S and AND THEN
    A. The 1120 filing requirement on our records shows 1120-03 or 1120-04.
    The name of the entity indicates the filing requirement is incorrect.
    1. Input a TC 016 to change the filing requirement to an 1120-01 using BNCHG.
    2. Close with URC 0 and cycle appropriately.
    B. The 1120 filing requirement on our records shows 1120-03 or 1120-04.
    The name on the Form 2553 indicates the filing requirement is correct.

    1. Input a TC 094, using the Form 2553 as the source document (suppress the notice with PSC>Z). See Exhibit 3.13.222-8 for sample of BNCHG screen.
    2. Send the appropriate letter to the taxpayer informing them that they are not eligible to elect S status because they are an insurance company subject to tax under Subchapter L.
    • Close TC 090 input with URC D.

    • Close MFT 02 input with URC 8.

3.13.222.60  (01-01-2014)
Unpostable Code (UPC) 310 Reason Code (RC) 2

  1. The Programming Requirements Package (PRP) for UPC 310 RC 2 states:

  2. MFT 02 TC 150 (Document Code 16) input and Form 1120 FRC is 00/01/02 and,

    1. The latest TC 091/096 is posted with an effective date (year/month) earlier than the TC 150 period ending - unless a TC 090 is posted subsequent to the latest TC 091/096.

    2. The TC 150 carries a significant S-Corp effective date that is earlier than the effective date of a posted TC 091/096 unless a TC 090 is posted subsequent to the latest TC 091/096.

    Note:

    Bypass UPC 310 RC 2 through 7 if the input return contains Computer Condition Code "Q" (TETR-only return) and the tax year is 2006/2007.

    Note:

    See Exhibit 3.13.222-1 for instructions for creating a dummy Form 2553.

    IF AND THEN
    A. The UNP is a Form 1120S, a. The account has a TC 091/096 for a tax period prior to the unpostable return. 1. Correspond (using the appropriate letter) with the taxpayer to verify the termination/revocation date.
    2. Suspend the case for 60 days.
    b. The effective date of the 091/096 is after the return tax period and 1120-02 has changed to 1120-01. 1. Check to see if a 1120-01 is present (BK 95 was not done at time of 091/096 input).
    2. Prepare a dummy Form 2553 and re-input the TC 090 for the original date that the taxpayer requested (suppress notice with PSC>Z).
    3. This transaction will create an UPC 339 after two cycles. Monitor and close the UPC 339 with URC 0.
    4. Close the Form 1120S unpostable with URC 0 and cycle appropriately.
    5. Re-input the TC 091/096 (suppress notice with PSC>Z), and cycle 6 to allow the final Form 1120S to post.
    B. Taxpayer responds to any of the above scenarios a. Provides documentation that the 096/091 date is incorrect, and provides corrected date, and the 1120 FR has changed to 01. 1. Prepare a dummy Form 2553 (suppress notice with PSC>Z). Re-input the TC 090 for the effective date of the TC 090.
    2. This transaction will create a UPC 339 after two cycles. Monitor and close the UPC 339 with URC 0.
    3. Close the Form 1120S unpostable with URC 0 and cycle appropriately.
    4. In the lower left hand corner of the return, enter the Correspondence Received Date (CRD) in YYYYMMDD format, see IRM 3.13.222.40
    5. Re-input the TC 091/096 (suppress notice with PSC >Z), and cycle 6 to allow the final Form 1120S to post.
    b. Indicates that the termination is invalid. 1. ESTAB for the TC 090/096.
    2. If the termination is not found, then prepare a dummy Form 2553 and re-input the TC 090 for the original date that the taxpayer requested (suppress notice with PSC>Z).
    3. This transaction will create a UPC 339 after two cycles. Monitor and close the UPC 339 with URC 0.
    4. Close the Form 1120S unpostable with URC 0 and cycle appropriately.
    5. If the termination statement is found, correspond with the taxpayer, using the appropriate letter, informing them of our actions.
    6. Convert the Form 1120S to a Form 1120. Refer to IRM 3.13.222.39.2.
    7. Close with URC 8, and request Rejects, using the appropriate routing form to renumber the return to a Form 1120.
    c. Indicates that the revocation date is invalid. 1. ESTAB for the TC 091/090.
    2. If the revocation is not found, then prepare a dummy Form 2553 and re-input the TC 090 for the original date that the taxpayer requested (suppress the notice with PSC>Z).
    3. This transaction will create a UPC 339 after two cycles. Monitor and close the UPC 339 with URC 0.
    4. Close the Form 1120S unpostable with URC 0 and cycle appropriately.
    5. If the revocation statement is found, correspond with the taxpayer, using the appropriate letter, informing them of our actions.
    6. Convert the Form 1120S to Form 1120. Refer to IRM 3.13.222.39.2
    7. Close with URC 8, and request Rejects, using the appropriate routing form, to renumber the return to a Form 1120.
    d. Taxpayer provides Form 1120. 1. Overlay the Form 1120S with the Form 1120.
    2. Close with URC 8
    3. Requests Rejects, using the appropriate routing form, to renumber return to the Form 1120.
    C. No Reply   1. Close with URC 8.
    2. Convert the Form 1120S to Form 1120. Refer to IRM 3.13.222.39.2.
    3. Request Rejects to renumber the return to a Form 1120 and enter a CCC 3 when no reply to correspondence is received from taxpayer; this suppresses credit interest from generating at Master File.

3.13.222.61  (01-01-2014)
Unpostable Code (UPC) 310 Reason Code (RC) 3

  1. The Programming Requirements Package (PRP) for UPC 310 RC 3 states:
    MFT 02 TC 150 (Document Code other than 16) input, Form 1120 FRC is 00/01/02 and

    1. An unreversed TC 090 is posted with an effective date (year/month) earlier than the input return period ending, or

    2. The TC 150 carries a significant S-Corp effective date.

    Note:

    Check the return for a statement of revocation or termination. Check Schedule K (or Schedule G for 2009 and after) indicates corporations or foreign shareholders and check Schedule L for two classes of stock:
    Schedule K (Form 1120): Line 4a – Box is marked yes then look through the return for a Schedule G. Line 5a (i) Name of corporation – Review this section for automatic termination of S election. EIN and Country of incorporation – Review this section for SSNs that begin with “9” or Foreign Country.
    Schedule G (Form 1120): Part I Type of Entity – Check for ineligible entities. Automatic termination of S election: For Profit Corp, Partnerships, Multi Member LLC, Foreign Trust, Non-Resident Alien or Indian Tribe. Part I Country of Organization – Check for Foreign County.
    Schedule L (Form 1120): Lines 22a and 22b – Automatic termination of S election when two classes of stock are present.

    Note:

    Bypass UPC 310 RC 2 through 7 if the input return contains Computer Condition Code "Q" (TETR-only return) and the tax year is 2006/2007.

    Note:

    For timeliness of a revocation request refer to IRM 3.13.222.108.15.

    IF the UNP is a Form 1120, and AND THEN
    A. The DLN is incorrect.   1. Close with URC 8.
    2. Request Rejects to renumber the return to a Form 1120S using the appropriate routing form.
    B. The tax period was transcribed incorrectly as indicated on Form 4251.   1. Close with URC 6 to correct the tax period.
    2. If not compatible, close the unpostable with URC 8.
    3. Request Rejects to input the return to the correct tax period using the appropriate routing form.
    C. The unpostable is the Last/Final 1120, and the TC 090 has already posted and changed the 1120-01 to 1120-02. The tax period on the return is earlier than the effective date of the TC 090. 1. Input a TC 016 using CC BNCHG to change the 1120-02 to 1120-00.
    2. Close with URC 0 and cycle appropriately.
    D. The taxpayer indicates a Form 1120S was not available at the time the return was filed.   1. Close with URC 8.
    2. Convert the Form 1120 to Form 1120S. Refer to IRM 3.13.222.39.2.
    3. Verify on the Form if there is an amount in the refund or tax due area, if so, Request Rejects enter the CRD, IRM 3.13.222.40
    4. Correspond (using the appropriate letter) with the taxpayer informing them of our action.
    5. Using the appropriate Routing Form, Request Rejects renumber the return to a Form 1120S.
    E. The taxpayer indicates the corporation is defunct or liquidated.   1. Correspond (using the appropriate letter) with the taxpayer informing them of the effective date of their TC 090 and why a Form 1120 is incorrect.
    2. Suspend the case for 60 days.
    F. The taxpayer attaches a copy of a timely filed revocation letter.   1. Input a TC 091 (BK 95 if applicable).
    2. Associate a copy of the letter with the DLN of the TC 090.
    3. Close with URC 0 and cycle appropriately.
    G. The taxpayer attaches a copy of a revocation letter with no indication that the request was filed timely.   1. Input TC 091 per instructions in IRM 3.13.222.108.15
    2. Correspond (using the appropriate letter) with the taxpayer informing them the TC 091 date was changed because the revocation request was not received timely. Request a Form 1120S.
    3. Suspend the case for 60 days.
    H. The taxpayer attaches a copy of a termination letter.   1. Input a TC 096 (BK 95 if applicable), using CC BNCHG with the effective date the taxpayer indicates. If the TC 096 effective date is earlier than the beginning of the tax period return being processed, check for prior year returns that could have been converted due to a "no response". If a prior year return is identified, send Form 3465 to AM/Adjustments to have return reprocessed to Form 1120.
    2. Associate a copy of the letter with the DLN of the TC 090.
    3. Close with URC 0 and cycle appropriately.
    I. A TC 091/096 is input with a later date than the tax period on the return.   1. Correspond (using the appropriate letter) with the taxpayer informing them of the effective date of their TC 091/096 and why a Form 1120 is incorrect. Request Form 1120S.
    2. Suspend the case for 60 days.
    J. The TC 090 effective date is earlier than the tax period ending on the return.   1. Correspond (using the appropriate letter) with the taxpayer informing them of the effective date of TC 090.
    2. Suspend the case for 60 days.
    K. IDRS shows a TC 090 was input after the original 1120S was converted. The effective date agrees with the unpostable as originally filed. 1. Close with a URC 8.
    2. Convert the Form 1120 to a Form 1120S.
    3. Request rejects renumber the return to a Form 1120S using the appropriate routing form.
    4. Line through audit code 4.
    5. Input TC 971 AC 377 to identify the conversion of Form 1120 back to the original Form 1120S.
    L. The taxpayer responds to any of the above scenarios. a. The taxpayer provides documentation that their S election was terminated and provides the termination date. 1. Re-input TC 090 (suppress notice with PSC>Z), (if applicable). Input a TC 096 with the valid effective date and cycle appropriately.
    2. Associate a copy of the documentation with the DLN of the TC 090.
    3. Close with URC 0, and cycle appropriately.
    b. The taxpayer provides documentation that their S election was revoked timely and provide the revocation date. 1. Input a TC 091 using CC BNCHG with the effective date the taxpayer indicates.
    2. Associate a copy of the documentation with the DLN of the TC 090.
    3. Close with URC 0 and cycle appropriately.
    c. The taxpayer provides documentation that their S election was revoked. There is not proof the request was filed timely for the requested date, but it is timely for the next tax year. 1. Input TC 091. See Exhibit 3.13.222-9 for an example of TC 091 on BNCHG screen.
    2. Associate a copy of the documentation with the DLN of the TC 090.
    3. Correspond with the taxpayer using the appropriate letter, informing them of the effective date of their TC 091, that their revocation request was not received timely, the date that it was accepted, and why a Form 1120 is incorrect.
    4. Convert the Form 1120 to Form 1120S. Refer to IRM 3.13.222.39.2.
    5. Close with URC 8.
    6. Request Rejects renumber the return to a Form 1120S using the appropriate routing form.
    d. The revocation provided by the taxpayer is not timely for the current or the next tax year. 1. Deny the request and return to the taxpayer with an explanation of denial.
    2. Convert the Form 1120 to Form 1120S. Refer to IRM 3.13.222.39.2.
    3. Close with URC 8.
    4. Request Reject to renumber the return to a Form 1120S using the appropriate routing form.
    e. The taxpayer provides a completed Form 1120S. 1. Overlay the Form 1120 with the Form 1120S.
    2. Close with URC 8.
    3. Request Rejects, using the appropriate routing slip, to renumber the return to a Form 1120S
    M. No Reply   1. Close with URC 8 as a no reply.
    2. Convert the Form 1120 to Form 1120S. Refer to IRM 3.13.222.39.2.
    3. Request Rejects to enter CCC 3 (this suppresses credit interest from generating at Master File). Renumber return to Form 1120S.

3.13.222.62  (01-01-2014)
Unpostable Code (UPC) 310 Reason Code (RC) 4

  1. The Programming Requirements Package (PRP) for UPC 310 RC 4 states:
    MFT 02 TC 150 (Document Code 16) input, Form 1120 FRC is 00/01 and:

    1. No unreversed TC 090 is posted, unless a TC 091 is posted with an effective date later than the TC 150 period ending.

    2. TC 150 carries S-Corp effective date and Form 1120 (not Doc Code 16) already posted for this tax period.

    Note:

    USE CC ENMOD and CC UPTIN to determine if there is an open or closed unpostable TC 090. If an unreversed TC 097 is posted, contact Entity to research the files for cases pending with Chief Counsel.

    Note:

    Bypass UPC 310 RC 2 through 7 if the input return contains Computer Condition Code "Q" (TETR-only return) and the tax year is 2006/2007.

  2. The following chart lists different scenarios that will help resolve UPC 310 RC 4:

    IF the UNP is a Form 1120S, and AND THEN
    A. IDRS shows an unpostable TC 090 with an effective date that agrees with the unpostable Form 1120S.   1. Close the unpostable TC 090 with URC 0.
    2. Close the unpostable 1120S with a URC 0 and cycle appropriately.
    B. IDRS shows a TC 090 input after the 1120S attempted to post, The effective date agrees with the unpostable 1120S. Close with URC 0.
    C. The DLN is incorrect (previously converted, late reply).   1. Re-convert the Form 1120S to Form 1120.
    2. Close the unpostable with URC 8 and request Rejects renumber to Form 1120.
    3. Line through audit code 4.
    D. Research indicates the corporation was in existence prior to 1972. Account does not reflect a TC 090, but taxpayer consistently files a Form 1120S. 1. Prepare a dummy Form 2553 with the name of the entity, EIN, and effective date of the first verified posted Form 1120S and FYM.
    2. Input TC 090 per IRM 3.13.222.108 (suppress CP notice with a PSC>Z).
    3. Close the unpostable with URC 0 and cycle appropriately.

    Note:

    Prior to 1972 an account could have an 1120-02 filing requirement without a TC 090.
    See Exhibit 3.13.222-1 for instructions for creating a dummy Form 2553.

    E. There is no TC 090 on the account. Thorough research of CCs NAMEB and NAMEE does not locate another EIN with an S election, 1. Correspond (using the appropriate letter) with the taxpayer informing them that we have no record of them filing Form 2553, however, they may be able to apply for relief under Revenue Procedure 2013-30.
    2. Suspend for 60 days.
    F. There is a TC 090 with a Transaction Identification Code of DU (Deleted Unpostable).   1. ESTAB for the DLN of the TC 090.
    2. If valid, re-input the TC 090.
    3. Close with URC 0 and cycle appropriately.
    4. If the Form 2553 cannot be obtained from Files, call the taxpayer and request a signed copy.
    5. If the taxpayer cannot be contacted via telephone, then correspond for the Form 2553. The Form 2553 should be considered timely, so the taxpayer is not required to file under a revenue procedure.
    G. The taxpayer responds to any of the above scenarios The taxpayer provides an approved Form 2553, or a CP 261 or IRS letter with an effective date that matches the unpostable return.

    Note:

    Taxpayer does not need to submit another signed Form 2553.

    1. Input a TC 090 CC BNCHG using the documentation provided (prepare a dummy 2553 if necessary, and suppress the notice) for the effective date and FYM. Suppress the notice, if applicable.
    2. Close with URC 0, and cycle appropriately.

    Note:

    Correspond with the taxpayer using the appropriate letter regardless of the tax period or whether or not the taxpayer will qualify under the Revenue Procedure.

    H. The taxpayer provides a completed Form 2553 that does not qualify for the requested effective date under Revenue Procedure 2013-30, 2003-43 or 1997-48.   1. Input TC 090 (with BK 95, if applicable), suppress notice with PSC>Z, for the next tax year that they qualify.
    2. Inform the taxpayer, using the appropriate letter, of the accepted effective date of their election and their option for a Private Letter Ruling.

    Note:

    A Paragraph Selection Code may be used if the verbiage is appropriate for the response.


    3. Close the unpostable with URC 8.
    4. Convert the Form 1120S to Form 1120. Refer to IRM 3.13.222.39.2.
    5. Request Rejects, using the appropriate routing form, to renumber the return to a Form 1120.
    6. Request Rejects enter the CRD on Form 1120, See IRM 3.13.222.40
    I. Taxpayer provides a timely, but incomplete, Form 2553   1. Follow procedures according to IRM 3.13.222.8.
    2. If taxpayer does not respond with corrected information.
    Close as a "No Reply" .
    J. Taxpayer responds with a completed Form 1120.   1. Overlay the Form 1120S with the Form 1120.
    2. Close with URC 8.
    3. Requests Rejects, using the appropriate routing slip, to renumber the return (DLN) to a Form 1120.
    4. If master file has an incorrect filing requirement of an 1120–02, Remove the 1120 filing requirement.
    K. No Reply   1. Close with URC 8.
    2. Convert the Form 1120S to Form 1120. Refer to IRM 3.13.222.39.2.
    3. Request Rejects to renumber the return to a Form 1120 using the appropriate routing form and enter a CCC 3 when no reply to correspondence is received from taxpayer; this suppresses credit interest from generating at Master File.

    Note:

    When working a "No Reply" and the module has been satisfied with the correct return, continue closing with no reply procedures. If the Form 2553 has been received in another area and processed with the correct effective date for the unpostable, process as a reply received.

    L. Taxpayer files a Form 1120S IDRS indicates the entity is a Form 1065 filer (LLC or Partnership) Please refer to instruction in IRM 3.13.222.73.6.2.

  3. The following chart lists different scenarios that will help resolve UPC 310 RC 4 that have previously been coded as a Reject action code 347 under Revenue Procedure 2007-62 or 2013-30:

    IF the UNP is a Form 1120S, and And Then
    A. TC 092 is present on the account and return is coded with a Reject action code of 347. It is an initial return and account indicates a 312C or 6800sce has been sent. The input of TC 092 has been less than 60 days.
    1. Suspend for 60 days.
    2. Review account for a posted TC 090. If TC 090 is posted for a valid effective date, URC 0 and cycle as appropriate.
    3. If account does not have a TC 090 with a valid effective date:
    • Return is for a corporation refer to No Reply instructions in IRM 3.13.222.62.

    • Return is for a LLC refer to No Reply instructions in IRM 3.13.222.73.6.2.

    B. Initial Form 1120S has a Form 2553 attached filing under Rev. Proc. 2007-62 or 2013-30 (no indication of a Reject action code 347). a. Form 2553 is complete. 1. Detach Form 2553 and reasonable cause statement to use as source document and input TC 090.
    2. URC 0 and cycle appropriately.
    b. Form 2553 is not complete. 1. Detach and return Form 2553 with a 312C letter.
    2. Suspend for 60 days.
    C. Initial Form 1120S with a Reject action code of 347 (without a Form 2553 attached). Audit Trail indicates to "Let Unpost" . 1. Correspond (using the appropriate letter) with the taxpayer informing them that we have no record of them filing Form 2553, however, they may be able to apply for relief under Revenue Procedure 2013-30.
    2. Suspend for 60 days.
    D. Initial Form 1120S with a Reject action code of 347 (Form 2553 attached but not complete) EIN recently assigned by Entity and audit trail indicates to "Let Unpost" . 1. Detach and return Form 2553 with a 312C letter.
    2. Suspend for 60 days.
    E. Taxpayer replies a. Form 2553 is complete. 1. Input TC 090.
    2. Close with URC 0 and cycle appropriately.
    b. Form 2553 is still not complete. 1. Follow procedures according to IRM 3.13.222.8.
    2. If taxpayer does not respond with corrected information.
    Close as a "No Reply" .
    c. Form 2553 does not qualify for effective date requested and return is for a Corporation. 1. Input TC 090 (with BK 95, if applicable), suppress notice with PSC>Z, for the next tax year that they qualify.
    2. Inform the taxpayer, using the appropriate letter, of the accepted effective date of their election and their option for a Private Letter Ruling.
    3. Close with URC 8.
    4. Convert the Form 1120S to Form 1120. Refer to IRM 3.13.222.39.2.
    5. Request Rejects, using the appropriate routing form, to renumber the return to a Form 1120.
    6. Request Rejects to enter the CRD on Form 1120. Refer to IRM 3.13.222.40.
    d. Form 2553 does not qualify for effective date requested and return is for a LLC. 1. Input TC 090 , suppress notice with PSC>Z, for the next tax year that they qualify.
    2. Inform the taxpayer, using the appropriate letter, with DLN inserted, of the accepted effective date of their election and their option for a Private Letter Ruling.
    3. Close with URC 8.
    4. Using the appropriate routing form, request Rejects cancel the DLN and re-file.
    F. No Reply  
    • Return is for a corporation refer to No Reply instructions in IRM 3.13.222.62.

    • Return is for a LLC refer to No Reply instructions in IRM 3.13.222.73.6.

    Note:

    When working a "No Reply" and the module has been satisfied with the correct return, continue closing with no reply procedures. If the Form 2553 has been received in another area and processed with the correct effective date for the unpostable, process as a reply received.

  4. Input Transaction Code 971 with Action Code (AC) 375 (Command Code FRM77) to identify when Form 1120S has failed to post to MF and a phone call was made or a letter has been issued.

  5. Input Transaction Code 971 with Action Code (AC) 376 through Command Code FRM77 to identify the conversion of Form 1120S to a Form 1120, when there is no reply or when the reply received does not resolve the unpostable issue. Always research when converting the Form 1120S to Form 1120 to verify that a TC 971 with AC 375 was input. If a TC 971 with AC 375 cannot be found, input the TC 971 AC 375 and then TC 971 AC 376 with a posting delay code of 1.

    Note:

    Input TC 971 with AC 376 is going to freeze all refunds to the taxpayer. To lift the freeze, input TC 971 with AC 377.

  6. Input Transaction Code 971 with Action Code 377 through Command Code FRM77 to identify the conversion of Form 1120 back to the original Form 1120S.

    Note:

    An example of when we should use this procedure is when we have a late reply 3853C Letter.

  7. If the TC 971 was input on an incorrect EIN, a TC 972 will need to be input to reverse the TC 971.

  8. If a TC 971 was not input on the invalid EIN, input or verify that a TC 971 was input on the valid EIN.

  9. A TC 971 cannot be input on MFT 02 if the taxpayer is a Limited Liability Company (LLC) unless there is a valid TC 076 posted for the current or prior year of the tax return.

    Figure 3.13.222-10
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Figure 3.13.222-11
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.13.222.63  (01-01-2014)
Unpostable Code (UPC) 310 Reason Code (RC) 5

  1. The Programming Requirements Package for UPC 310 RC 5 states:
    MFT 02 TC 150 (document code 16) input, Form 1120 FRC is 00/01/02 and,

    1. An unreversed TC 090 is posted with an effective date (year/month) later than the input return period ending, or,

    2. The input TC 150 carries a S-Corp effective date (Year/Month) later than its tax period ending.

    Note:

    Bypass UPC 310 RC 2 through 7 if the input return contains Computer Condition Code "Q" (TETR-only return) and the tax year is 2006/2007.

  2. The following chart lists different scenarios that will help resolve UPC 310 RC 5:

    IF the UNP is a Form 1120S, and AND THEN
    A. The tax period on UPTIN does not agree with the tax period on the tax return. The tax period on the tax return agrees with the TC 090 effective date. Correct with URC 6 to change to tax period on UPTIN to match the tax period of the return.
    B. The tax period of the tax return is earlier than the effective date of TC 090.   1. Correspond (using the appropriate letter) with the taxpayer informing the taxpayer that our records indicate the effective date of their Subchapter S Election is not valid for the tax year indicated on the Form 1120S.
    2. Suspend the case for 60 days.
    C. The tax period of the return is earlier than the effective date of the TC 090 and the return is coded with a Reject action code 347. The Form 2553 was not approved for the requested tax year under Rev. Proc. 2007-62 and was approved for the next qualifying year. 1. Do not correspond:
    • Return is for a corporation refer to No Reply instructions in IRM 3.13.222.62.

    • Return is for a LLC refer to No Reply instructions in IRM 3.13.222.73.6.2.

    D. Taxpayer responds to any of the above scenarios.   Refer to IRM 3.13.222.62 taxpayer responds.
    E. No Reply   1. Input TC 016 to remove 1120 filing requirement, if necessary.
    2. Close the unpostable with URC 8 as a no reply.
    3. Convert the Form 1120S to Form 1120. Refer to IRM 3.13.222.39.2.
    4. Request Rejects to renumber the return to a Form 1120 using the appropriate routing form, and enter CCC 3 when no reply to correspondence is received from taxpayer; this suppresses credit interest from generating at Master File.

  3. Input TC 971 with AC 375 (Command Code FRM77) to identify when Form 1120S has failed to post to MF and a phone call was made or a letter has been issued. Refer to IRM 3.13.222.62, Figure 3.13.222.10 for input of TC 971.

  4. Input TC 971 with AC 376 (Command Code FRM77) to identify the conversion of Form 1120S to a Form 1120, when there is no reply or when the reply received does not resolve the unpostable issue. Refer to IRM 3.13.222.62, Figure 3.13.222.10 for input of TC 971. Always research when converting the Form 1120S to Form 1120 to verify that a TC 971 with AC 375 was input. If a TC 971 with AC 375 cannot be found, input the TC 971 AC 375 and then TC 971 AC 376 with a posting delay code of 1.

    Note:

    Input TC 971 with AC 376 is going to freeze all refunds to the taxpayer. To lift the freeze, input TC 971 with AC 377.

  5. If the TC 971 was input on an incorrect EIN, a TC 972 will need to be input to reverse the TC 971. See , Figure 3.13.222.11 for input of TC 972.

  6. If a TC 971 was not input on the invalid EIN, input or verify that a TC 971 was input on the valid EIN.

  7. A TC 971 cannot be input on MFT 02 if the taxpayer is a Limited Liability Company (LLC) unless there is a valid TC 076 posted for the current or prior year of the tax return.

3.13.222.64  (01-01-2014)
Unpostable Code (UPC) 310 Reason Code (RC) 6

  1. The Programming Requirements Package (PRP) for UPC 310 RC 6 states:
    MFT 02 TC 150 (Document code 16) input, Form 1120 FRC greater than 02 and no TC 091/096 is posted.

    Note:

    Bypass UPC 310 RC 2 through 7 if the input return contains Computer Condition Code "Q" (TETR-only return) and the tax year is 2006/2007.

  2. The following chart lists different scenarios that will help resolve UPC 310 RC 6:

    IF the UNP is a Form 1120S, and THEN
    A. Form 1120S is valid based on the effective date of the TC 090. 1. Input TC 016 to delete the Form 1120 FR.
    2. Close with URC 0 and cycle appropriately
    B. Account shows Form 1120 FRC greater than 02 and no TC 090 is posted. Follow instructions for UPC 310 RC 4, IRM 3.13.222.62

3.13.222.65  (01-01-2014)
Unpostable Code (UPC) 310 Reason Code (RC) 7

  1. The Programming Requirements Package for UPC 310 RC 7 states:
    TC 150 for MFT 02 with Document Code 09/11 with ABLM Codes 001 (Personal Holding Company), 010 (Consolidated Return) or 400 (Personal Service Corporation) with a Form 1120 FRC 02.

    Note:

    Bypass UPC 310 RC 2 through 7 if the input return contains Computer Condition Code "Q" (TETR-only return) and the tax year is 2006/2007.

  2. The following chart list different scenarios that will help resolve UPC 310 RC 7:

    IF the UNP is a Form 1120 (for a short period) or Personal Service Corporation, and THEN
    A. The TC 090 has a later effective date. 1. Input TC 016 and change 1120-02 to 1120-00.
    2. Close with URC 0 and cycle appropriately.
    B. All others Follow instructions for UPC 310 RC 3, IRM 3.13.222.61

3.13.222.66  (01-01-2014)
Unpostable Code (UPC) 310 Reason Code (RC) 8

  1. The Programming Requirements Package (PRP) for UPC 310 RC 8 states: MFT 02 TC 150 (not Doc Code 16) input, if LLC indicator is S or M and there is no posted TC 076 with an effective date prior to tax period or an unreversed TC 076 is posted but there is a subsequent posted unreversed TC 078 (rejection) posted - and no TC 076 posted subsequent to the TC 078).

  2. UPC 310 RC 8 and Entity indicates the taxpayer is a LLC. Use the following table to resolve the unpostable conditions:

    IF AND THEN
    A. BMFOLE shows a TC 076 with PARA CD:A (indicating taxpayer elected to be a C Corporation). The effective date matches the tax period on the Form, and the filing requirement on IDRS is Form 1065. 1. Input TC 016 using CC BNCHG to remove the 1065 filing requirement and input a filing requirement for a Form 1120.
    2. Close with URC 0 and cycle appropriately.
    B. BMFOLE shows a TC 076 with PARA CD:A. The effective date is later than the tax period on the form. 1. Correspond (using the appropriate letter) with the taxpayer informing them that the Form 8832 was not valid for the tax period of the return.
    2. Request a corrected return per Code of Federal Regulations 301-7701-3(b)(1).
    3. Suspend the case for 60 days.
    C. IDRS does not show a TC 076 is present.   1. Correspond with the taxpayer, using the appropriate letter, informing the taxpayer we have no record of them filing the Form 8832.
    2. Request a corrected return per Code of Federal Regulations 301-7701-3(b)(1).
    3. Suspend the case for 60 days.
    D. Taxpayer replies. With a Notice of Acceptance or an acceptable Form 8832. 1. Process the Form 8832 according to IRM 3.13.222.110 .
    2. See exhibit 3.13.222-10 for example of BNCHG.
    3. Close the unpostable according with URC 0 and cycle appropriately.
    E. Taxpayer replies Without a Notice of Acceptance or an unacceptable Form 8832. 1. Deny the Form 8832 according to IRM 3.13.222.110
    2. Close unpostable with URC 8.
    3. Using the appropriate routing form, request Rejects cancel the DLN and re-file.
    With a Form 1065. 1. Overlay invalid Form 1120 with valid Form 1065.
    2. Close with URC 8.
    3. Request Rejects to cancel DLN of Form 1120 and renumber as form 1065.
    F. No Reply   1. Close with URC 8.
    2. Using the appropriate routing form, request Rejects cancel the DLN and re-file.

  3. See IRM 3.13.222.110 for additional procedures for processing Form 8832, and IRM 3.13.222.108 for additional procedures for processing Form 2553.

  4. If research determines the entity is not an LLC, remove the LLC indicator via BNCHG by placing a "9" in the LLC indictor field.

3.13.222.67  (01-01-2014)
Unpostable Code (UPC) 313 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 313 RC 1 states:
    An input transaction failed to find its related transaction posted to the tax module of the same MFT Code and tax period.

  2. The entity module transactions are listed below.

    1. A TC 023 attempts to post and there is no open TC 024 in the entity module.

    2. A TC 052 attempts to post and there is not a posted or unreversed TC 053, 054, or 055 on the entity module.

    3. A TC 052 attempts to post and there is not a posted or unreversed TC 058, 059 on the entity module.

    4. A TC 061, 065, or 066 attempts to post and there is not a posted or unreversed TC 060 present.

    5. A TC 062 attempts to post and there is not a posted or unreversed TC 060, 063, 064 or 065 present.

    6. A TC 071 or 072 attempts to post and there is no open TC 070 posted for cycle 8440 or later in the entity module.

    7. A TC 091 095, or 096 attempts to post and there is not a posted or unreversed TC 090 on the entity module.

    8. A TC 092 attempts to post and there is not a posted or unreversed TC 090, 093, 095, or 097 on the entity module.

    9. A TC 961 (RAF) or 962 (RAF) attempts to post and there is no open TC 960 posted on the entity.

3.13.222.67.1  (01-01-2014)
UPC 313 - for TC 023

  1. See IRM 3.12.278.

3.13.222.67.2  (01-01-2014)
UPC 313 - for TC 052

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 052

    • Research IDRS for an accepted Form 1128, Form 2553 or Form 8716.

    • The following chart list different scenarios that will help resolve UPC 313 RC 1:

    IF AND THEN
    A. The unpostable transaction is a TC 052. An accepted Form 1128 or 8716 is located. 1. Correct with URC 2.
    2. Return the unpostable document to the initiator.
    B. The unpostable transaction is a TC 052. An accepted Form 1128 or 8716 is not located. 1. Correct with URC 2.
    2. Return the unpostable document to the initiator.

3.13.222.67.3  (01-01-2014)
UPC 313 - for TC 058 and TC 059

  1. UPC 313 No Related Transactions Resolution Procedures for TC 058, TC 059

    IF AND THEN
    The unpostable transaction is a TC 052. There is not a posted TC 058/059 or there is a previously reversed TC 058/059 on the entity module. Close with URC D and destroy the document.

3.13.222.67.4  (01-01-2014)
UPC 313 - for TC 061

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 061

    • Research for an accepted Form 8279.

    IF AND THEN
    The unpostable transaction is a TC 061. a. An accepted Form 8279 is located. 1. Pull the Form 8279 from files.
    2. Use CC BNCHG, Document Code 63, and input the correct effective date.
    3. Correct the unpostable with URC 0.
    b. An accepted Form 8279 is not located. 1. Correct the unpostable with URC 2.
    2. Return the unpostable document to the initiator.

3.13.222.67.5  (01-01-2014)
UPC 313 - for TC 062

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 062

    IF AND THEN
    The unpostable transaction is a TC 062.   1. Correct the unpostable with URC 2.
    2. Return the unpostable document to the initiator.

3.13.222.67.6  (01-01-2014)
UPC 313 - for TC 065

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 065

    • Verify with the source document that the input EIN is correct.

    IF AND THEN
    The unpostable transaction is a TC 065. a. The input EIN is correct. 1. Contact the taxpayer to verify the EIN.
    2. Correct the EIN as the taxpayer indicates.
    b. The input EIN is wrong. Correct the unpostable with URC 6.

3.13.222.67.7  (01-01-2014)
UPC 313 - for TC 066

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 066

    • Verify with the source document that the input EIN is correct.

    IF AND THEN
    The unpostable transaction is a TC 066. a. The input EIN is correct and there is a source document. 1. Contact the taxpayer to verify the EIN.
    2. Correct the EIN as the taxpayer indicates.
    b. The input EIN is wrong. Correct the unpostable with URC 6.

3.13.222.67.8  (01-01-2014)
UPC 313 - for TC 071

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 071.

    • Research IDRS for an open unpostable TC 070, see CC UPTIN

    IF AND THEN
    The unpostable transaction is a TC 071. Inconsistent transactions do not apply. 1. Prepare Form 4437 and route to the originator (Do not retain any copies).
    2. Annotate the Form 4437 with the following: "Action has been taken to revoke an election (Form 8274) and there is no evidence that an election was previously made."
    3. Correct the unpostable with URC 0.

3.13.222.67.9  (01-01-2014)
UPC 313 - for TC 072

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 072.

    IF THEN
    The unpostable transaction is a TC 072. 1. Correct the unpostable with URC 2.
    2. Return the unpostable document to the initiator.

3.13.222.67.10  (01-01-2014)
UPC 313 - for TC 091

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 091

    • Research for an accepted Form 2553.

    IF AND THEN
    A. The unpostable transaction is a TC 091. a. A reversed TC 090 is on the BMF.
    b. A TC 091 is on the BMF.
    1. Determine the correct date of TC 091 and ESTAB Form 2553 if necessary.
    2. If posted TC 091 date is incorrect, prepare a Dummy Form 2553 and re-input TC 090 using the original effective date (suppress notice with PSC>Z).
    3. The re-input of TC 090 will create an UPC 339. Monitor and close the UPC 339 with a 0.
    4. Input TC 091 with the correct effective date and cycle appropriately.
    B. The unpostable transaction is a TC 091. There is no TC 090 on the BMF. 1. Close the unpostable with URC 2.
    2. Return the unpostable document to the initiator.

    Exception:

    S corporations prior to 1972 may require the input of a dummy Form 2553 (suppress notice with PSC>Z). Close the unpostable with URC 0 and cycle appropriately.

3.13.222.67.11  (01-01-2014)
UPC 313 - for TC 092

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 092

    • Verify with the source document that the input EIN is correct.

    IF AND THEN
    The unpostable transaction is a TC 092. There is no TC 090, or the 090 was previously reversed. 1. Close with URC 2.
    2. Return the unpostable document to the initiator.

3.13.222.67.12  (01-01-2014)
UPC 313 - for TC 095

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 095

    • Verify with the source document that the input EIN is correct.

    IF AND THEN
    A. The unpostable transaction is a TC 095. There is no TC 090. Close with URC D.
    B. The unpostable transaction is a TC 095. The TC 096 is posted. Close with URC D.
    C. The unpostable transaction is a TC 095. The input EIN is wrong. 1. Close with URC 2.
    2. Return the unpostable document to the initiator.


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