3.13.222  BMF Entity Unpostable Correction Procedures (Cont. 2)

3.13.222.67 
Unpostable Code (UPC) 313 Reason Code (RC) 1

3.13.222.67.13  (01-01-2014)
UPC 313 - for TC 096

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 096

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

    IF AND THEN
    The unpostable transaction is a TC 096. a. There is no TC 090. 1. Research for a better EIN.
    2. Close with URC 6 if a better EIN is found.
    3. Close with URC 2 and return to the initiator if the EIN is correct.
    b. The input EIN is correct and there is a TC 090. Close with URC 0.
    c. The input EIN is wrong and there is a TC 090. 1. Research for a better EIN and/or contact the taxpayer to verify the EIN.
    2. Correct the EIN as the taxpayer indicates.
    3. Correct the unpostable and close with URC 6.

3.13.222.67.14  (01-01-2014)
UPC 313 - for TC 097

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 097.

    • Verify with the source document (Form 2553) that the input EIN is correct.

    IF AND THEN
    The unpostable transaction is a TC 097. a. The input EIN is correct and another transaction code (such as 093 or 095) should have been input. 1. Input the appropriate transaction code.
    2. Correct the unpostable with URC 0, and cycle appropriately.
    b. Another transaction code should not have been input. Void the unpostable with URC D.
    c. The input EIN is wrong. Correct the unpostable with URC 6.

3.13.222.67.15  (01-01-2014)
UPC 313 - for TC 961/962

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 961 or TC 962

    • The TC 961 or TC 962 (RAF) will unpost because:

    1. A TC 960 (RAF) is not posted on the BMF entity module.

    2. The EIN has been changed through a merge.

    3. The TC 960 is unpostable.

    IF AND THEN
    A. The TC 960 is unpostable.   Close with URC 2 andreturn the unpostable document to the initiator.
    B. The unpostable transaction is a TC 961/962. a. The EIN has been merged and the new EIN is correct. 1. Correct the unpostable using URC 6 and change the EIN.
    2. Otherwise, delete the unpostable using URC D.
    b. The EIN has not been merged. Delete the unpostable using URC D.
    C. The unpostable transaction is a TC 962. a. The new EIN is correct and on the RAF. 1. Correct the unpostable using URC 6 and change the EIN.
    b. The transaction was entered to add a new MFT. 1. Delete the unpostable with URC D.
    2. Use CC RAFUP with Definer T and reset TC 960 to 1.
    3. This will create a new TC 960 for posting to the Master File.
    c. The transaction was entered, but did not change or add a new MFT. 1. Correct with URC 6.
    2. Change the TC to 960.

3.13.222.68  (01-01-2014)
Unpostable Code (UPC) 317 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 317 RC 1 states:
    TC 460 attempts to post to a tax module and the extension date of the TC 460 is not equal to or greater than the due date of the return as extended.

  2. Research the unpostable TIN for a Form 1120 return filing in a later year than the unpostable transaction. The presence of a return in the later year validates that a MFT 02 FR was established for that year.

  3. The following chart lists different scenarios that will help resolve UPC 317 RC 1:

    IF THEN
    A. If a Form 1120 return filing in a later year than the unpostable transaction is located Input URC 0 to allow TC 295 OR 299 to post.
    B. If return can not be located Release URC 2 to the originator.

3.13.222.69  (01-01-2014)
Unpostable Code (UPC) 323 Reason Code (RC) 2

  1. The Programming Requirements Package (PRP) for UPC 323 RC 2 states: TC 090, 093, 094, 095, 097 or TC 024/054/055/058/059 or TC 060/063/064/065 or TC 074/078/080 or TC 971 AC 281/360 attempts to post to an entity that contains an unreversed TC 090, 093, 094, 095, 097, or TC 024/054/055/058/059 or TC 060/063/064/065, or TC 074/078/080 or (TC 971 AC 281/360 with matching XREF Date) respectively.

    1. TC 082 attempts to post and there is a previous TC 082 where input effective date is less than 60 months from the effective date of the last election (TC 082) unless a TC 083, 086, or 087 is present.

    2. TC 971 AC 87 input with (1) A Disaster Ending Date of zero; or (2) TC 971 AC 87 input to an account containing an unreversed TC 971 with matching AC/FEMA and new TC 971 AC 87 disaster and date is earlier, or the disaster begin date (transaction date) is later, or (3) TC 971 AC 87 input to an account containing an unreversed TC 971 with matching AC/FEMA and both disaster begin and end dates match exactly the original disaster begin and end dates.

    3. A TC 971 C 382/383/384/385/386/387/388 if there is an unreversed TC 971, 382/383/384/385/386/387/388 posted to the Entity, (i.e., unpost AC 383 if AC 385 posted).

  2. Input transaction attempts to post to an account that has the same transaction already posted.

  3. The following chart lists different scenarios that will help resolve UPC 323 RC 2:

    IF AND THEN
    A. The unpostable transaction is a TC 090. a. It is not the correct account. 1. Close with URC D.
    2. Input the TC 090 on the correct account.
    b. The TC 090 effective date matches the posted TC 090 and the entity is the same. 1. Close with URC D.
    2. Mark duplicate Form 2553 to be destroyed.
    3. If original TC 090 input date is more than 45 days, send taxpayer a 385C letter informing them of their approved effective date.
    c. The TC 090 effective date does not agree with the posted TC 090 and the entity is the same. 1. Research for the posted TC 090.
    2. ESTAB for one or both of the Form 2553's if necessary.
    3. Unposted TC 090 has correct effective date, input TC 092 if necessary and close with URC 0, cycle appropriately.
      d. The taxpayer is granted a better effective date. 1. Input TC 092 if one is not already posted.
    2. Close with URC 0 and cycle appropriately.
      e. It cannot be determined which TC 090 is correct. 1. Correspond with the taxpayer, using the appropriate letter.
    2. Suspend the case for 60 days.
    B. The unpostable is a TC 094. There is already another TC 094 on file. 1. Close with URC D.
    2. Mark duplicate Form 2553 and attach to the DLN of TC 094 on file.
    C. The unpostable is a TC 093, 095 or 097. a. The entities are the same. 1. Close with URC D.
    2. Mark duplicate Form 2553 to be destroyed.
    b. The entities are not the same. Close with URC 6 to the correct EIN.
    D. The unpostable is a TC 053, 054 or 055. a. The FYM on the unpostable is the same as the previously posted TC 05X. 1. Close with URC D.
    2. Mark the duplicate to be destroyed.
    b. The FYM on the unpostable does not match the posted TC 05X and the entity is the same. 1. Correspond (using the appropriate letter) with the taxpayer to determine the correct FYM.
    2. Suspend the case for 60 days.
    E. The unpostable is a TC 052. There is no TC 05X on the account. 1. Close with URC D.
    2. Mark the document to be destroyed.
    F. Taxpayer responds to any of the above scenarios. a. Indicates the posted TC 090 has the correct effective date. 1. Close with URC D.
    2. Mark duplicate Form 2553 to be destroyed.
    3. If posted TC 090 input date is more than 45 days, send taxpayer a 385C letter informing them of their approved effective date.
    b. Indicates that the FYM of the posted TC 05X is incorrect. 1. Input TC 052.
    2. Input TC 016 to update FYM, if necessary.
    3. Close the unpostable with URC 0 and cycle appropriately.
    c. Indicates the original TC 090 has the correct effective date. 1. Close with URC D.
    2. Mark duplicate Form 2553 to be destroyed.
    3. If original TC 090 input date is more than 45 days, send taxpayer a 385C letter informing them of their approved effective date.
    d. Indicates the original TC 090 has an incorrect effective date and the unposted TC 090 has the correct effective date. 1. Input a TC 092 to reverse the original TC 090.
    2. Close with URC 0 and cycle appropriately.
    G. No reply.   1. Close with URC D.

    2. Mark the duplicate to be destroyed.
    H. If TC 971, AC 382, 383, 384, or 385.   URC 2 to the originator.
    I. The unpostable is a Form 5768.   Refer to IRM 3.12.278, Exempt Organization Unpostable Resolution.

  4. The following table will help unpostable Form 8279:

    IF AND THEN
    A. The unpostable transaction is a Form 8279, TC 060/064. a. Another EIN is found and no TC 060/064. Close with URC 6 to the correct EIN.
    b. Another EIN is found and a TC 060/064 is already on the account. 1. Close with URC D.
    2. Mark the duplicate to be destroyed.
    c. The effective dates are not the same. 1. Correspond with the taxpayer to determine the correct effective date.
    2. Suspend the case for 60 days.
    B. The unpostable is a TC 063 or 065. a. The entities are the same. 1. Close with URC D.
    2. Mark the duplicate to be destroyed.
    b. The entities are not the same. Close with URC 6 to correct the EIN.
    C. Taxpayer responds. a. Indicates the original TC 060 has the correct effective date. 1. Close with URC D.
    2. Mark duplicate to be destroyed.
    b. Indicates the original TC 060 has an incorrect effective date and the new date is received timely. 1. Reverse the TC 060 with a TC 062.
    2. Close with URC 0 and cycle appropriately.
    D. No reply.   1. Reverse the TC 060 with a TC 062.
    2. Close the unpostable with URC 8.
    3. Request Rejects to enter CCC 3 when no reply to correspondence is received from taxpayer; this suppresses credit interest from generating at Master File.

3.13.222.70  (01-01-2014)
Unpostable Code (UPC) 323 Reason Code (RC) 5

  1. The Programming Requirements Package (PRP) for UPC 323 RC 5 states:
    TC 082 attempts to post and an unreversed TC 100 or 102 is present.
    TC 100 attempts to post and an unreversed TC 082 or 102 is present.
    TC 102 attempts to post and an unreversed TC 082 or 100 is present.

  2. Resolve this unpostable with URC 2, and route to preparer.

3.13.222.71  (01-01-2014)
Unpostable Code (UPC) 324 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 324 RC 1 states:
    An input transaction which attempts to set Forms 941/944 indicator of the RAF Filing Code and the Entity Forms 941/944 FRC is 06, 07, 09, 10, 13, or 14.

  2. These procedures apply to both Document Code 63 and TC 960.

    Magnetic Tape Code (MTC)

    0 Blank No returns filed on Magnetic Tape
    1 Files Form 941 on Magnetic Tape.
    2 Files Form 940 on Magnetic Tape.
    3 Files Form 941 and Form 940 on Magnetic Tape.
    4 Files Form 945 on Magnetic Tape.
    5 Files Form 941 and Form 945 on Magnetic Tape.
    6 Files Form 940 and Form 945 on Magnetic Tape.
    7 Files Form 941, Form 940 and Form 945 on Magnetic Tape.

    IF THEN
    A. Research to determine if the Form 941 filing requirement on the master file is correct. Use the following command codes:
    1. ENMOD to query the TIF on IDRS
    2. INOLE to query the NAP at ECC-MTB.
    3. BMFOL to request a transcript of the entity.
    B. The filing requirement on the master file is correct. Use URC D and delete the unpostable.
    C. Document Code is 63 See below.
    D. The Magnetic Tape Code is incorrect Use command code BNCHG and input the Correct Magnetic Tape Code.
    E. The Magnetic Tape Code is correct Take no further action.
    F. The unpostable TC is 960 Correct the RAF using command code RAFAD with Definer Code M and delete the MFT 01 (this transaction will go unpostable, because the TC 960 is not posted), and command code RAFUP with Definer T and RESET TRANSACTION CODE TO TC 960 1. Notify the Reporting Agent that this account does not have the proper filing requirements for magnetic tape filing.
    G. If the filing requirement on the master file is not correct Use command code BNCHG and correct the BMF. Use URC 0 to correct the unpostable.

3.13.222.72  (01-01-2014)
Unpostable Code (UPC) 324 Reason Code (RC) 2

  1. The Programming Requirements Package (PRP) for UPC 324 RC 2 states:
    An input transaction which attempts to set the Form 940 indicator of the RAF Filing Code and any of the following: Entity Employment Code = T, W, F, G or C; Entity EO Status = 1 - 19 and; subsection Code (current) = 03/50/60/70; The Form 940 FRC = 07.

  2. The Magnetic Tape Code is updated with:

    1. TC 01X Document Code 63

    2. TC 960 with MFT 00 and Tax Period 0000.

  3. Assign TC 960 to the RAF function.

  4. These procedures apply to both Document Code 63 and TC 960. Determine if the Magnetic Tape Code input is correct. See IRM 3.13.222.71 If/And/Then chart below.

  5. Research to determine if the Employment Code, EO Section or 940 filing requirement is correct. Use the following command codes:

    1. ENMOD to query the TIF on IDRS

    2. INOLE to query the NAP at ECC-MTB

    3. BMFOL MFTRD to request a transcript of the entity.

  6. The following chart lists different scenarios that will help resolve UPC 324 RC 2:

    IF THEN
    A. Research shows that the employment code EO Section or 940 filing requirement is correct. Use URC D and delete the unpostable.
    B. The Document Code is 63 the Magnetic Tape Code is incorrect. Use command code BNCHG to input the correct Magnetic Tape Code.
    C. The Magnetic Tape Code is correct. Take no further action.
    D. The unpostable is TC 960. 1. Correct the RAF, using command code:
    2. RAFAD with Definer Code M and delete the MFT 10 (this transaction will go unpostable, because the TC 960 is not posted), and RAFUP with Definer T and RESET TRANSACTION CODE TO TC 960 1.
    3. Notify the Reporting Agent that this account does not have the proper filing requirements for magnetic tape filing.
    E. If the employment code, EO section or 940 filing requirement is not correct. 1. Use command code BNCHG or EOCHG to correct the BMF.
    2. Use URC 0 to correct the unpostable.

3.13.222.73  (01-01-2014)
Unpostable Code (UPC) 329 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 329 RC 1 states:
    An input transaction attempting to update filing requirements or create a tax module which is inconsistent with current filing requirements. Exceptions: A TC 290 for MFT with blocking series 400-499, and a current filing requirement is not established for MFT 02, 05, 06, or 33 or 34.
    A TC 290 for a MFT not equal to 02 with blocking series 400-449 and the input MFT does not have a current filing requirement equal to the input MFT.
    A TC 150 for MFT 10 when Form 940 FRC is 3 or 4.
    Transaction that creates a tax module for MFT 34/44/67 when EO Status is 99.

  2. The unpostable return filed and the FRC on the BMF are not compatible.

  3. If remittance is present with the tax return, refer to IRM 3.13.222.22.

  4. The following table shows if the input transaction attempting to post will update the filing requirement or create a tax module and the input MFT is not consistent with the FRC on BMF.

    Unpostable MFT Filing requirement is not compatible if:
    01 (941) 941 FRC = 09 or 10 (With Doc Code not 51 or 52)
    02 (1120) 1041, 1065, 706GS(T), 1041-A, 5227, 1066 FRC = All FRCs
    1120-C FRC = 01, unless Form 1120 FRC = 07
    990-T FRC = 01, unless Form 1120 FRC = 03, 04, or 09)
    990-T FRC = 02
    990-PF FRC = 01, unless EO Entity Status = 19 or 22
    990 FRC = 03 or 07
    990 FRC = 04, 06 or 13 unless Form 1120 FRC = 9
    990 FRC = 01 or 02, unless Form 1120 FRC = 01, and EO subsection = 12 or 1120 FRC = 03, 04, or 09)
    8752 FRC = (Unless 1120 FRC = 02)
    05 (1041) 1120, 1065, 1120-C, 990-T, 1066, 8752 FRC = All FRCs
    990 FRC = 03 thru 07
    990 FRC = 01 or 02, unless EO subsection = 91
    990-PF FRC = Unless EO subsection = 92
    1041-QFT FRC = All FRCs other than 09
    05 (1041 QFT) 1120, 1065, 1120-C, 990-T, 1066, 8752 FRC = All FRCs
    990 FRC = 03 thru 07
    990 FRC = 1 or 2 unless EO subsection = 91
    990-PF FRC = Unless EO subsection = 92
    1041 FRC = All FRCs other than 09
    06 (1065) 1120, 1041, 1066, 1120-C, 990-T, 1041-A, 5227, 990-PF, 4720, 990, 706GS(T) FRC = All FRC
    07 (1066) 1120, 1065, 1041, 8752, 8804, 1120-C, 990-T, 1041-A, 5227, 4720, 990-PF, 990, 942, 706GS(T) FRC = All FRCs
    08 (8804) 1066, 1120-C, 990-T, 1041-A, 5227, 990-PF, 4720, 990, 706GS(T) FRC = All FRCs
    15 (8752) 1041, 1066, 1120-C, 990-T, 1041-A, 5227M 990-PF, 4720, 990, 706GS(T), 1120 FRC = Not equal to 02
    02 (1120-C) 1041, 1065, 1066, 8752, 8804, 990-T, 1041-A, 5227, 990-PF, 4720, 990, 706GS(T) FRC = All FRCs
    1120 FRC = Not equal to 07, if 1120-C (FRC = 01)
    34 (990-T) 1041, 1065, 1066, 8752, 8804, 1120-C, 1041-A, 5227, 706GS(T) FRC = All FRCs
    990 FRC = 03
    1120 FRC = 01, 02, 06, 07, 10, 11 or 14-19
    36 (1041-A) 1066, 8752, 8804, 1120, 1065, 1120-C, 990-T, 990-PF, 990 FRC = All FRCs
    37 (5227) 1120, 1065, 1066, 8752, 8804, 1120-C, 990-T, 990-PF, 990 FRC = All FRCs
    1041/706GS(T) FRC = Unless EO subsection = 90
    44 (990-PF) 1065, 1066, 8752, 8804, 1120-C, 1041-A, 5227, 990 FRC = All FRCs
    1120 FRC = 01 unless EO entity status = 19 or 22
    1120 FRC = 02, 06, 10, 11, 14-19
    1041/706GS(T) FRC = Unless EO subsection = 92
    990-T FRC = 02
    50 (4720) 1065, 1066, 8752, 8804, 1120-C FRC = All FRCs
    1120 FRC = 02, 06, 07, 10, or 11
    990 FRC = 03
    67 (990) 1065, 1066, 8752, 8804, 1120-C, 1041-A, 5227, 990-PF FRC = All FRCs
    1120 FRC = 02, 06, 07, 10, 11, 14-19
    1041/706GS(T) FRC = Unless EO subsection = 91
    1120 FRC = 01, unless 990 FRC = 1 or 2 and EO subsection = 12
    990-T FRC = 02
    77 (706GS(T) 8752, 8804, 1120-C, 990-T, 1066, 1120, 1065 FRC = All FRCs
    990 FRC = 03, 04, 06, 07, 13
    990 FRC = 01 or 02 unless EO subsection = 91
    990-PF FRC = Unless EO subsection = 92

    Figure 3.13.222-12

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3.13.222.73.1  (01-01-2014)
UPC 329 RC 1 - Form 8752

  1. UPC 329 FRC mismatch RC 1 for Form 8752, Required Payment or Refund Under Section 7519: A Form 8752 attempts to post, a TC 055 is not present. For additional information on Form 8752 refer to IRM 3.13.2.7.28. Use the following table to resolve this unpostable condition:

    IF the UNP is a Form 8752, or associated payment, and AND THEN
    A. The fiscal year month is other than 12. A TC 055 is present for the appropriate year. Close with URC 0.
    B. The FRC is Form 1120S and a TC 090 is present with a fiscal year end request, and no TC 055 is on the account.   ESTAB the DLN on the TC 090 to see if a Form 8716 is attached.
    a. Form 8716 is attached to the ESTAB'd Form 2553. 1. Input a TC 055 for the requested tax year end, see IRM 3.13.222.107
    2. Close unpostable with URC 0 and cycle appropriately.
    b. Form 8716 is not attached to the ESTAB'd Form 2553 and the taxpayer indicates a fiscal year end. 1. Correspond (using the appropriate letter) with the taxpayer requesting a copy of the approved Form 8716, and inform the taxpayer that they are not liable to file Form 8752 if the Form 8716 is not timely. Include information regarding refunds, if applicable.
    2. Suspend the case for 60 days.
    c. The taxpayer does not indicate a fiscal year end and December 31st is reflected. 1. Close unpostable with URC 8.
    2. Request Rejects cancel the DLN and re-file (the taxpayer is not liable.)
    3. Inform the taxpayer using the appropriate letter that the form was not required to be filed.
    C. The FRC is Form 1065. a. No TC 055 is present. 1. Correspond (using the appropriate letter) with the taxpayer requesting a copy of the approved Form 8716.
    2. Suspend the case for 60 days.
    b. No TC 055 is present and the entity is a multi member LLC filing on Dec. 31st. 1. 1. Close with URC 8.
    2. Request Rejects to cancel DLN and re-file.
    3. Inform the taxpayer using the appropriate letter the form was not required to be filed.
    D. No Reply  
    1. Input TC 016 to change to December.
    2. Close with URC 8.
    3. Request Rejects cancel the DLN and re-file.
    E. TC 055 is present but reversed with a TC 057.   1. Research for the cause of the TC 057. ESTAB for the DLN of the TC 057, if necessary. If TC 057 matches the TC 055 DLN, it is not necessary to ESTAB.
    2. If the TC 057 is not valid, re-input the TC 055, using a Dummy Form 8716 (suppress notice with PSC>Z) as the source document, with the original effective date and FY requested.
    3. Close with URC 0 and cycle appropriately.
    4. If TC 057 is valid, correspond, (using the appropriate letter) with the taxpayer informing them that their Section 444 was terminated.
    5. Suspend for 60 days.
    F. No TC 055 is present, but prior to 1988 indicates the taxpayer has filed Form 8752.   1. Input the TC 055, using a Dummy Form 8716 as the source document (suppress notice with PSC>Z) , with the original effective date and FY requested. If the original effective date is not available, then use the year of the first filed Form 8752.
    2. Close with URC 0, and cycle appropriately.
    G. Taxpayer files other than Form 1120S or Form 1065. They are not liable for the Form 8752. 1. Close with URC 8.
    2. Request Rejects, using appropriate routing Form, to cancel DLN and refund the payment. (Taxpayer not liable).
    H. Taxpayer responds to any of the above scenarios with a copy of their approved Form 8716, CP notice, or IRS letter granting the FYM.   1. Input a TC 055 for the requested tax year end using the original effective date.
    2. Close with URC 0, and cycle appropriately.
    I. Taxpayer responds with a timely Form 8716 filed pursuant to Section 301.9100-2 of the Income Tax Regulations.   1. Input a TC 055 for the requested tax year end.
    2. Close with URC 0, and cycle appropriately.
    J. Taxpayer is a Personal Service Corporation (PSC) 1120-19. TC 055 is present. PSCs are not liable for Form 8752.
    1. Input TC 052 to reverse TC 055.
    2. Input TC 054, using a dummy Form 8716 and suppress the notice, and cycle appropriately.
    3. Close with URC 8.
    4. Request Rejects, using appropriate routing form, to cancel the DLN and refund payment.
    5. Correspond with the taxpayer informing them they are not liable to file Form 8752.
    K. Taxpayer responds with a Form 8716 that cannot be accepted.   1. Input a TC 058.
    2. Close with URC 8.
    3. Request Rejects, using appropriate routing form, to cancel DLN and re-file. (Taxpayer not liable).

    Note:

    See Exhibit 3.13.222-4 for additional instructions for creating a dummy Form 8716.
    See IRM 3.13.222.107 for processing Form 8716 and IRM 3.13.222.108 for processing Form 2553.

3.13.222.73.2  (01-01-2014)
UPC 329 RC 1 - Form 1041, 1065 OR 1120 - EO FR

  1. UPC 329 RC 1, Form 1041, Form 1065 or Form 1120 and the BMF has EO filing requirements. Refer to IRM 3.12.278.3.5 .Use the following table to resolve this unpostable condition:

    REFERENCE FOR RESOLVING CERTAIN UNPOSTABLE Form 1120
    Filing requirement on CC ENMOD. Form 1120.
    Form 990 C subsection 80. Input 1120-07 FR using CC BNCHG.
    Any EO FR and the status is less than 20, and the status date is later than the tax period of the return. Delete the EO FR
    1. Allow Form 1120 to post.
    2. Cycle the action to re-input the EO FR using CC EOCHG.
    REFERENCE FOR RESOLVING CERTAIN UNPOSTABLE Form 1041
    EO Status is 99 and filing requirement is a Form 1120 and a Form 1041 1. Input TC 016 to remove 1120 FR and add 1041 FR (1041 FR must be added even though the FR is already on master file per programming error).
    2. URC 0 and cycle UPC as appropriate.

3.13.222.73.3  (01-01-2014)
UPC 329 RC 1- Form 7004, 1041, 1065, or 1120 - NO EO FR

  1. There is a new 2008 revision of Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns. See Form 7004.

    1. There were some minor changes to text to conform to other business forms.

    2. Form 1120-C has been added to the list of forms for the new revision of Form 7004. It is Form Code 34. This form replaces both Form 990-C and Form 1120 (subchapter T cooperative) for tax years ending December 31, 2006 and subsequent.

  2. Form 2758, Form 8736, and Form 8800 are obsolete for all tax years ending December 31, 2005. Form 2758, Form 8736, and Form 8800 have been combined onto the new Form 7004. Form 2758, and Form 8736 will be converted by ERS to the new Form 7004 format for processing.

  3. An approved Form 7004 grants an automatic extension of time to file for 6 months from the return due date. No signature and no reason for the extension is required. No additional extension of time to file is allowed. Refer to timeliness chart Exhibit 3.11.212-1.

  4. Effective for extensions requested for returns with due dates on or after January 1, 2009 (Tax Period 200809 and later), the automatic extension date generated for an approved Form 7004 will be changed from 6 months to 5 months for the following returns:

    • Form 1041 (MFT 05)

    • Form 1065 (MFT 06)

    • Form 8804 (MFT 08)

      Note:

      Form 1065-B, Form 1041-QFT and Form 1041-N are NOT included in this change.

  5. UPC 329 RC 1, Form 7004, Form 1041, Form 1065, or Form 1120 and the BMF has no EO filing requirements. Use the following table to resolve this unpostable condition:

    Note:

    These instructions do not apply to LLCs.

    IF the Unp is Form 7004, and AND THEN
    A. A determination is made that the correct return was timely filed.   1. There is no need to correspond with the taxpayer.
    2. Close with URC D.
    B. Duplicate extension has posted.   Close with URC D.
    C. Research indicates the EIN is incorrect. a. Another EIN is found with the correct FR. 1. Close with URC 6.
    2. Inform the taxpayer of the correct EIN using the appropriate letter.
    b. No EIN is found. 1. Assign a new EIN.
    2. Close with URC 6, and cycle appropriately.
    D. The account is newly assigned, no TC 150 has posted, and the name indicates the FR on IDRS are incorrect.   1. Use TC 016 to delete the incorrect FR and add the correct FR for the entity type.
    2. Close with URC 0, and cycle appropriately.
    E. The MFT entered on Form 4251 is incorrect.   1. Input TC 460 on current filing requirement.
    2. Close with URC D.
    F. The return entered on Form 7004 is not the correct one for the taxpayer.   1. Input TC 460 on current filing requirement.
    2. Close with URC D.
    3. Inform taxpayer with appropriate letter of their correct filing requirement.
    G. EO Status 97 or 99 and Form 7004 is for 1120.   1. Input TC 460 on MFT 02.
    2. Close with URC D.

  6. For an example on how to input TC 460 see IRM 3.12.212, Applications for Extension to File Tax Returns.

  7. Use the following table to resolve an unpostable 1120 or 1065 condition:

    IF AND THEN
    A. The unpostable is a Form 1120, 1065, or 1041 a. The return does not match the entity on the BMF. 1. Research for another EIN.
    2. If one is found close the unpostable with URC 6.
    3. Inform the taxpayer, with the appropriate letter, of the correct EIN.
    4. If one is not found, assign a new EIN with the appropriate notice indicator code.
    5. Close with URC 6, and cycle appropriately.
    b. The name and/or the filing requirement indicates the wrong type of return was filed. 1. Correspond with the taxpayer, using the appropriate letter, requesting the correct return and informing the taxpayer that their return will be withdrawn from processing, if they do not reply.
    2. Suspend the case for 60 days.
    c. It can be determined the unpostable was caused by the entity filing under Regulation 1.6032-1 which states that banks which maintain a common trust fund are required to file a return of income. The form to be filed is not specified; however, it is suggested that Form 1065 be used. Although most returns for common trusts are filed on Form 1065, some banks file Form 1065 and Form 1041 alternately from year to year.
    1. Input TC 016 to change the filing requirements to fit the type of return being filed for a given year.
    2. Release using URC 0 and cycle if necessary.
    d. Unable to determine that the return is for a common trust. Refer to IRM 3.13.2.7.7 for trust types. Correspond with the taxpayer and suspend for 60 days.
    e. Taxpayer Responds to any of the above scenarios. Correct the unpostable condition accordingly.
    B. No Reply   1. Close the unpostable with URC 8.
    2. Request Rejects cancel the DLN and re-file.
    C. If the unpostable is a Form 1120-H. a. The EIN was set up for a trust and it can be determined the association is a first time filer. 1. Update name line, sort name line and care of name line (as needed) and filing requirement.
    2. Close with URC 0 and cycle appropriately.
    b. The EIN was set up for a trust and Forms 1041 have already been filed on account. 1. Assign a new EIN using CC ESIGN.
    2. Close with URC 6 and cycle appropriately.

    Note:

    A common trust fund filing Form 1065 can be identified by a Business Code, page 1, Box C of Form 1065. Other indications of a common trust may be found in the entity area of the return. Usually, returns filed for a common trust do not have Schedule K-1 attached. Instead a listing of all the recipients of income is attached to the return.

  8. Use the following table to resolve Form 1041 or Form 1041-QFT Unpostable conditions:

    IF the unpostable is a Form 1041-QFT or Form 1041 AND THEN
    A. The unpostable is a Form 1041-QFT. a. The filing requirement on IDRS shows Form 1041-1 and the taxpayer has not filed a Form 1041. 1. Input a TC 016 to change the filing requirement to 1041-9.
    2. Close with URC 0 and cycle appropriately.
    b. The filing requirement on IDRS shows a Form 1041-1 and the taxpayer has previously filed Form 1041. 1. Research line 4 of Form 1041-QFT. If line 4 contains more than 1, establish a new EIN.
    2. Close with URC 6.
    3. If line 4 of Form 1041-QFT only contains 1, input a TC 016 to change the filing requirement to 1041-9.
    4. Close with URC 0 and cycle appropriately.
    B. The unpostable is a Form 1041. The filing requirement on IDRS shows 1041-9 and the taxpayer has previously filed 1041-1. 1. Delete the 1041-9 filing requirement and add 1041-1
    2. Close with URC 0, and cycle appropriately.

  9. Use the following table to resolve Personal Service Corporation unpostable conditions:

    IF the UNP is a Form 1120, and the DLN is 310 AND THEN
    A. The box indicating PSC is not checked on Form 1120, but FRC is 1120-19 on ENMOD.   Research the return and attachments for indication the taxpayer is a PSC (check previous filing).
    B. It can be determined that the taxpayer's principle activity does not qualify as a PSC.   1. Input TC 016 to change the 1120 FR to 01.
    2. Close with URC 0, and cycle appropriate.
    C. If it can be determined that the principle activity may qualify as a PSC.   1. Correspond with the taxpayer to verify the correct filing requirement.
    2. Suspend the case for 60 days.
    D. Taxpayer responds. a. They are a PSC. 1. Close with URC 8.
    2. Instruct Rejects to renumber to a PSC and add an ABLM code (box should be checked on Form 1120).
    b. Taxpayer is not a PSC. 1. Input TC 016 to change the 1120 FR to 01.
    2. Close with URC 8.
    3. Request Rejects enter the CRD, see IRM 3.13.222.40
    E. No reply a. The master file indicates the taxpayer has been filing as a PSC. Close with URC 8 and request Rejects to add the ABLM code.
    b. The master file indicates the taxpayer has not been filing as a PSC. 1. Input TC 016 to delete the FR.
    2. Close with URC 0 and cycle appropriately.

  10. Use the following table to resolve Personal Service Corporation for unpostable Form 1120 and the DLN is 311 PSC:

    IF the UNP is a Form 1120, and AND THEN
    A. The DLN is 311 PSC. a. ENMOD indicates 1120-01. Research the return and attachments for indication the taxpayer is a PSC (check previous filing).
    b. If section A indicates it is a personal service corporation and the principle activities does qualify as a PSC. 1. Input TC 016 to delete the 1120 FR .
    2. Close with URC 0 and cycle appropriately.
    c. It can be determined that the taxpayer's principle activity does not qualify as a PSC. Close with URC 8 request Rejects to cancel ABLM Code.
    d. The taxpayer's principle activity cannot be determined. 1. Correspond with the taxpayer to verify the correct filing requirement.
    2. Suspend the case for 60 days.
    B. Taxpayer Replies. a. They are a PSC. 1. Input TC 016 to delete the 1120 filing requirement.
    2. Close with URC 0, and cycle appropriately.
    b. They are not a PSC. Request Rejects enter the CRD and cancel the ABLM Code. See IRM 3.13.222.40
    C. No reply a. The master file indicates the taxpayer has been filing as a PSC. 1. Input transaction TC 016 to delete the FR.
    2. Correct the unpostable with URC 0 and cycle appropriately.
    b. The master file indicates the taxpayer has not been filing as a PSC. 1. Close with URC 8.
    2. Request Rejects to cancel the ABLM Code.

3.13.222.73.4  (01-01-2014)
UPC 329 RC 1 - Ogden Only - International

  1. Any 1120-FSC, Doc Code 07, attempting to post and the 1120 filing requirement is not 15.

    Note:

    Form 8279 is an election filed by the taxpayer to request approval to file as a Foreign Sales Corporation (FSC). A copy of the approved election should have been submitted when the taxpayer filed Form 1120-FSC. Form 8279 can be identified as a TC 060 on ENMOD.

  2. UPC 329 Resolution RC 1 International -The following table will provide assistance in resolving this unpostable condition:

    IF the UNP is Form 8279, and AND THEN
    A. The Form 8279 is attached.   Research the tax return, the Form 8279 or any attachments for the correct International EIN.
    B. The employer identification number is found.   Research ENMOD and/or BMFOL for a Form 1120 with FRC 15.
    C. A FRC 15 is located.   Release using URC 6.
    D. A FRC 15 is not located, and the establishment date is current. There is an indication that the document is for the initial filing of the return. Check ENMOD for Form 1120 with FRC 06 and TC 060.
    E. A Form 1120 with a FRC 06 (Form 1120-F) and TC 060 were found, (which indicates the taxpayer filed a Form 8279 to file as a Foreign Sales Corporation (FSC))   Release using URC 0.
    F. The TC 060 is present, but the FRC is other than FRC 06.   Input TC 016 to change the FRC to 06. Release using URC 0 and cycle as necessary.

    Note:

    Note: The master file will automatically change the FRC 06 to FRC 15 when the TC 150 is posted.

  3. Any TC 620, Doc Code 04, for MFT 02 with a return code other than 0 and 1120 FRC is other than 00 or 06. Use the following table to assist in resolving the unpostable condition:

    Note:

    A Form 7004 may or may not have a Form 8279.

    IF THEN
    A. The filing requirement is 15 (Form 1120 FSC). X out the return code. Release using URC 8.
    B. Filing requirement is other than 15. Follow regular UPC procedures.

  4. For unpostable returns submitted by Canadian taxpayers use the following procedures:

    Note:

    Check prior year returns filed before adding or removing filing requirements.

    IF AND THEN
    A. The unpostable is a Form 1120-F with a Canadian address. The filing requirement is 1120-01. Input TC 016 to change the filing requirement to 1120-06.
    B. The unpostable is a Form 1120 with a Canadian address. The filing requirement is 1120-06. Input TC 016 to change the filing requirement to 1120-01.

  5. Any Form 1120-F, TC 150 with Doc Code 66 or 67 and the 1120 filing requirements are not 00, 01, or 06.

    1. If after research the filing requirements are incorrect, input a TC 016 with filing requirement 06, release using URC 0, cycle as necessary. Figure 3.13.222-13

    2. Otherwise, follow regular Non-International UPC Procedures.

    Figure 3.13.222-13

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

  6. A foreign corporation that maintains an office or place of business in the United States must either: File Form 1120-F by the 15th day of the 3rd month after the end of its tax year or, when the taxpayer requests an extension of time to file.

    1. File a Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, by the 15th day of the 3rd month after the end of its tax year to request a 6-month extension.

    2. Request a 3 month extension by attaching to Form 1120-F the statement described in Regulation Section 1.6081-5. If additional time is needed beyond the 3 month extension, then the taxpayer must file Form 7004 before the end of the 3 month extension period to obtain up to an additional 3 months to file.

  7. Any TC 620, Doc Code 04, for MFT 02 with a return code other than 0 and 1120 FRC is other than 00 or 06.

    Note:

    A Form 7004 may or may not have a Form 8279.

3.13.222.73.5  (01-01-2014)
UPC 329 RC 1 - Active EO Filing Requirements

  1. UPC 329 RC 1, with Active EO filing requirements. Use the following table to resolve this unpostable condition:

    IF AND THEN
    A. The unpostable is a Form 1120. a. The BMF FR is a 1120-C with a subsection Code of 80. 1. Input a TC 016, with an 1120 FRC of 07.
    2. Close with URC 0 and cycle appropriately.
    b. The EO FR has a status less than 20 and the status date is later than the tax period of the return. 1. Delete the EO FR.
    2. Close with URC 0 and cycle appropriately.
    c. The EO FR has a status less than 20 and the status date is earlier or the same as the tax period of the return. Correspond with the taxpayer to verify their exempt status. The letter must include the actions that will be taken if the taxpayer does not reply.
    B. Taxpayer responds. a. The taxpayer provides proof that their exemption was either not approved or was revoked. 1. Fax the taxpayer's response to the Ogden EO unit (801-620-6236) to have the EO section removed from the account.
    2. The EO unit will notify the TE when the account has been updated.
    3. Close with URC 0 and cycle appropriately.
    C. No reply   Close with URC 8, request Rejects to cancel the DLN.
    D. The unpostable is a Form 7004. The account is assigned an EO FR. Correspond with the taxpayer to verify their exempt status. The letter must include the actions that will be taken if the taxpayer does not reply.
    E. Taxpayer Replies. a. They include a completed Form 8868. 1. Close with URC 8.
    2. Overlay the Form 7004 with a Form 8868,
    3. Using the appropriate routing form, request Rejects cancel the DLN and renumber to a Form 8868 using the correct MFT for the current EO filing requirement.
    b. The taxpayer provides proof that their exemption was either not approved or was revoked. 1. Fax the taxpayer's response to the Ogden EO unit (801-620-3249) to have the EO section removed from the account.
    2. The EO unit will notify the TE when the account has been updated.
    3. Close with URC 0 and cycle appropriately.
    F. No Reply The account is correctly assigned an EO FR. 1. Close with URC 8.
    2. Convert the Form 7004 to a Form 8868 using the correct MFT.
    3. Using the appropriate routing form, request Rejects to cancel the DLN and renumber to a Form 8868 using the correct MFT for the current EO filing requirement.

3.13.222.73.6  (01-01-2014)
UPC 329 RC 1 - LLC

  1. UPC 329 RC 1 and Entity indicates the taxpayer is an LLC. Use the following Subsections to resolve the unpostable conditions:

3.13.222.73.6.1  (01-01-2014)
UPC 329 RC 1 - LLC - Form 1120

  1. UPC 329 RC 1 and Entity indicates the taxpayer is an LLC. Use the following table to resolve the unpostable conditions:

    Note:

    Schedule G may be used to determine if the entity is a multi member or single member.

    IF the UNP is a Form 1120, and 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 update the filing requirement to 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 or in the middle of 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 with URC 0 and cycle appropriately.
    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.
    E. No Reply   1. Close with URC 8.
    2. Using the appropriate routing form, request Rejects cancel the DLN and re-file.

  2. 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.

3.13.222.73.6.2  (01-01-2014)
UPC 329 RC 1 - LLC - Form 1120S

  1. Use the following table to resolve Unpostable Form 1120S conditions:

    Note:

    When corresponding on the unpostable Form 1120S inform the taxpayer (using the appropriate letter) that: "They may be able to apply for relief under Revenue Procedure 2013-30". If the Form 2553 is not timely received for the period of the unpostable return, by quoting this revenue procedure it could allow the election to qualify for the next tax year.

    IF the UNP is a Form 1120S and the name indicates a LLC, and AND THEN
    A. BMFOLE shows a TC 076 with PARA CD:A, and the effective date matches the tax period on the form, however, there is no TC 090. Refer to IRM 3.13.222.62. The filing requirement on IDRS is for a single member or Form 1065.
    1. Input TC 016 to delete the 1065 FR and add 1120 FR.
    2. Correspond (using the appropriate letter) with the taxpayer.
    3. Suspend the case for 60 days.
    B. Taxpayer Replies. The taxpayer provides an acceptable Form 2553. 1. Input TC 090, and cycle appropriately.
    2. Close unpostable with URC 0, and cycle appropriately.
    C. No Reply   1. Edit the Form 1120S with a Form 1120, entity area showing. Refer to IRM 3.13.222.39.2.
    2. Close with URC 8.
    3. Edit Audit Code 4 in lower right corner of return.
    D. BMFOLE shows a TC 076 with PARA CD:A, and the effective date is later than the tax period on the form. a. IDRS does not show a TC 090.
    1. Correspond (using the appropriate letter) with the taxpayer informing them that:
    1. Their Form 8832 was not valid for the tax period of the return.

    2. We have no record of them filing a Form 2553.

    3. They may be able to apply for relief under Revenue Procedure 2013-30.

    4. They must send a corrected return per Code of Federal Regulations 301-7701-3(b)(1).


    2. Suspend the case for 60 days.
    b. IDRS shows a later effective date for the TC 090. 1. Correspond (using the appropriate letter) with the taxpayer informing them that:
    1. Their Form 8832 and Form 2553 are not valid for the tax period of the return.

    2. They may be able to apply for relief under Revenue Procedure 2013-30.

    3. They must send a corrected return per Code of Federal Regulations 301-7701-3(b)(1).


    2. Suspend the case for 60 days.
    E. Taxpayer replies a. Sends in an incomplete Form 2553 and Form 8832. 1. Input TC 093, then a TC 092 with Posting Delay Code of 1. Since the TC 092 is currently generating an FRC of 1120–01, also input a TC 016 with a Posting Delay Code of 2 to remove the 1120 FRC. DO NOT input a TC 078.
    2. Return both documents to the taxpayer using the appropriate letter.
    3. Close with URC 8.
    4. Request Rejects cancel the DLN and re-file.
    b. Sends in a Form 1065. 1. Overlay invalid Form 1120S with valid Form 1065.
    2. Close with URC 8.
    3. Request Rejects enter the CRD on Form 1065, see IRM 3.13.222.40
    4. Cancel DLN and renumber as Form 1065.
    c. Sends in an acceptable Form 2553 under the guidelines of Rev. Proc. 2013-30 or 2004-48 1. Process according to IRM 3.13.222.108
    2. Close with URC 0, and cycle appropriately.
    F. No Reply   1. Close with URC 8.
    3. Request Rejects cancel the DLN and re-file.
    G. BMFOLE shows a TC 076 with PARA CD:A, and the effective date is in the middle of the year. a. There is no TC 090. 1. Correspond (using the appropriate letter) with the taxpayer informing them that:
    1. Their Form 8832 was not valid for the tax period of the return.

    2. We have no record of them filing a Form 2553.

    3. They may be able to apply for relief under Revenue Procedure 2013-30.

    4. They must send a corrected return per Code of Federal Regulations 301-7701-3(b)(1).


    2. Suspend the case for 60 days.
    b. The TC 090 is the same or for a later date than the TC 076. 1. Correspond (using the appropriate letter) with the taxpayer informing them that:
    1. Their Form 8832 and Form 2553 are not valid for the tax period of the return.

    2. They may be able to apply for relief under Revenue Procedure 2013-30.

    3. They must send a corrected return per Code of Federal Regulations 301-7701-3(b)(1).


    2. Suspend the case for 60 days.
    H. Taxpayer Replies. a. Sends in an acceptable Form 2553. 1. Process according to IRM 3.13.222.108
    2. Close with URC 0, and cycle appropriately.
    b. Sends in a final Form 1065 with correct tax period. 1. Overlay invalid Form 1120S with valid Form 1065.
    2. Close with URC 8.
    3. Request Rejects to renumber as Form 1065.
    c. Sends in an incomplete Form 2553 and Form 8832. 1. Input TC 093, then a TC 092 with posting delay code of 1, also input a TC 016 with a posting delay code of 2 to remove the 1120 FRC. Do not input a TC 078.
    2. Return both documents to taxpayer using the appropriate letter.
    3. Close with URC 8.
    4. Request Rejects cancel DLN and re-file.
    d. Sends in an acceptable Form 2553 under the guidelines of Rev. Proc. 2013-30 or 2004-48 1. Process according to IRM 3.13.222.108
    2. Close with URC 0, and cycle appropriately.
    I. No Reply   1. Close with URC 8.
    2. Request Rejects to cancel the DLN and re-file.
    J. IDRS does not show a TC 076 is present.   1. Correspond (using the appropriate letter) with the taxpayer informing them that:
    1. We have no record of them filing the Form 8832, or Form 2553.

    2. They may be able to apply for relief under Revenue Procedure 2013-30.

    3. They must send a corrected return per CFR 301-7701-3(b)(1).


    2. Suspend the case for 60 days.
    K. Taxpayer Replies. a. Sends in an acceptable Form 2553 under the guidelines of Rev. Proc. 2013-30 or 2004-48. 1. Process according to IRM 3.13.222.108
    2. Close with URC 0, and cycle appropriately.
    b. Sends in a Form 1065. 1. Overlay invalid Form 1120S with valid Form 1065.
    2. Close with URC 8.
    3. Cancel DLN and renumber as Form 1065.
    c. Sends in an incomplete Form 2553 or an incomplete Form 2553 and Form 8832. 1. Input a TC 093 then a TC 092 with posting delay code of 1, also input a TC 016 with a posting delay code of 2 to remove the 1120 FRC. Do not input a TC 078.
    2. Return both documents to taxpayer using the appropriate letter.
    3. Close with URC 8.
    4. Request Rejects cancel DLN and re-file.
    L. No Reply   1. Close with URC 8.
    2. Request Rejects cancel the DLN and re-file.

    Note:

    If Master File has an incorrect filing requirement of an 1120, correct the account appropriately.

    M. There is a TC 090 with a Transaction Identification Code of Deleted Unpostable (DU).   1.Estab for the DLN of the TC 090. If determination can be made that it was the FRC that was incorrect "dummy" the TC 090 after correcting the FRC.
    2.If valid, re-input the TC 090 and ensure FRC’s are correct.
    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.
    N. 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
    O. BMFOLE shows a TC 076 with PARA CD:A, AND a TC 090 and the effective date matches the tax period on the form. The filing requirement on IDRS has recently been updated to the correct filing requirement. Close with URC 0.

3.13.222.73.6.3  (01-01-2014)
UPC 329 RC 1 - LLC - Form 1065

  1. Use the following table to resolve Unpostable Form 1065 conditions:

    IF the UNP is a Form 1065, and AND THEN
    A. Research on BMFOLE indicates a TC 076 is present with PARA CD:B, and the effective date matches the tax period of the unpostable.   1. Input a TC 016 using CC BNCHG to remove 1120 filing requirement and input a filing requirement for a Form 1065. Add LLC indicator if needed.
    2. Close with URC 0, and cycle appropriately.
    B. BMFOLE shows a TC 076 with PARA CD:A, and the effective date matches the tax period on the form.   1. Correspond (using the appropriate letter) with the taxpayer.
    2. Suspend the case for 60 days.
    C. BMFOLE shows a TC 076 and TC 090 with PARA CD:A or Z, and both effective dates match or are prior to the tax period on the form.   1. Correspond (using the appropriate letter) with the taxpayer. 2. Suspend the case for 60 days.
    D. Form 1065 is a final return, the TC 076 date is for the next tax year, and the filing requirement has been updated to Form 1120.   1. Input a TC 016 using CC BNCHG to remove 1120 filing requirement and input a filing requirement for a Form 1065. Add LLC indicator if needed.
    2. Close with URC 6 with F for final in CC field, and cycle appropriately.
    3. If F is present, input URC 0 and cycle appropriately.
    E Taxpayer Replies. a. Sends a Form 1120. 1. Overlay invalid Form 1065 with Form 1120 with entity area showing.
    2. Close with URC 8.
    3. Request Rejects cancel DLN and renumber as 1120.
    b. Sends in notification that Form 8832 was filed in error. 1. Close with URC 8.
    2. Using the appropriate routing form, request Rejects cancel the DLN and re-file.
    3. Using the appropriate letter, inform the taxpayer they do not qualify to change their classification for this tax year.
    F. No Reply   1. Close with URC 8.
    2. Using the appropriate routing form, request Rejects to cancel DLN and re-file.

3.13.222.73.6.4  (01-01-2014)
UPC 329 RC 1 - LLC - Form 7004 for a Form 1120/1120S

  1. Use the following table to resolve Unpostable Form 7004 condition:

    IF AND THEN
    A. The unpostable is a Form 7004 and the box is marked for a Form 1120/1120S. The Form 7004 is not timely filed. Close with URC D.
    b. Research indicates an extension is already posted to the correct MFT and TXPD. Close with URC D.
    c. There is a posted or pending 076/090 on the account with effective date that matches the tax period on the form. Close with URC 0 and cycle appropriately.
    B. The unpostable is a Form 7004, and the box is marked for Form 1120/1120S. a. BMFOLE shows a TC 076 with PARA CD:A, and the effective date matches the tax period on the Form, and ENMOD shows 1065 FR. 1. Input TC 016 to establish 1120 FR and delete the 1065 FR.
    2. Close with URC 0, and cycle appropriately.
    b. BMFOLE shows a TC 076 with PARA CD:A and the effective date is later than the tax period on the form or is for the middle of the tax year. 1. Correspond (using the appropriate letter) with the taxpayer.
    2. Suspend the case for 60 days.
    c. There is no TC 076. The Form 7004 is for a Form 1120 and the entity is a multi member LLC. 1. Input TC 460 on the current filing requirement (1065).
    2. Close with URC D.
    d. There is no TC 076 and Form 1120 filing requirement is on the account. The Form 7004 is for a Form 1120 and the entity is a multi member LLC. 1. Input TC 016 to zero out the Form 1120 filing requirement and add Form 1065.
    2. Input TC 460 on the current filing requirement (1065).
    3. Close with URC D.
    e. There is no TC 076 and the entity is a single member LLC. The Form 7004 is for a Form 1120. 1. Close with URC D.
    2. Remove 1065 filing requirement if necessary and update LLC indicator if needed.
    f. There is no TC 076 and the entity is a single member LLC. Form 1120 Filing requirement is on the account. The Form 7004 is for a Form 1120. 1. Input TC 016 to zero out the Form 1120 filing requirement.
    2. Close with URC D.
    g. There is no TC 076 or TC 090 on the account. The Form 7004 is for a Form 1120S. 1.Correspond (using the appropriate letter) with the taxpayer informing them that:
    1. We have no record of them filing a Form 8832, or Form 2553.

    2. The may be able to apply for relief Under Revenue Procedure 2013-30.

    3. They must send in a corrected extension per CFR 301-7701-3(b)(1).
      2. Suspend the case for 60 days.

    C. Taxpayer replies with a timely received date stamp Form 8832.   1. Process Form 8832 according to IRM 3.13.222.110
    2. Input TC 016 using CC BNCHG to remove 1065 filing requirement and input a filing requirement for a 1120. Add LLC indicator if needed.
    3. Close with URC 0, and cycle appropriately.
    4. See Exhibit 3.13.222-10 for sample of BNCHG screen.
    TC 076 effective date is later than tax period on Form. 1. Input TC 460 on current filing requirement.
    2. Close with URC D.
    TC 076 effective date is for middle of the year. 1. Input TC 016 to establish 1120 FR.
    2. Close with URC 0, and cycle appropriately.
    3. For Partnership, input TC 016 to re-establish 1065 FR and cycle appropriately.
    4. For Disregarded Entity, take no further action.
    D. Taxpayer Replies with correct Form 7004.   1. Input TC 460 on current filing requirement.
    2. Close with URC D.
    E. Taxpayer Replies with a Form 2553 under Rev. Proc. 2013-30 or 2004-48 and it can be accepted.   1. Input TC 016 using CC BNCHG to remove 1065 filing requirement and input a filing requirement for a 1120. Add LLC indicator if needed.
    2. Process Form 2553 according to IRM 3.13.222.108
    3. Close with URC 0, and cycle appropriately.
    F. Taxpayer Replies with a Form 2553 under Rev. Proc. 2013-30 or 2004-48 and it cannot be accepted. a. The entity is a single member LLC. 1. Process Form 2553 for the next qualifying year. Use PSC "E" on TC 090 input.
    2. Remove 1065 filing requirement if needed. Add LLC indicator if necessary.
    3. Close with URC D.
    b. The entity is a multi-member LLC 1. Process Form 2553 for the next qualifying year.
    2. Correspond with taxpayer informing of date of acceptance, and that they may request a Private Letter Ruling.
    3. Input TC 460 for a Form 1065.
    4. Close with URC D.
    c. TC 076 with later effective date. 1. Input TC 460 on current filing requirement.
    2. Close with URC D.
    d. TC 076 effective date for middle of tax year. 1. Input TC 016 using CC BNCHG to remove the 1065 filing requirement and input a filing requirement for a Form 1120. Add LLC indicator if necessary.
    2. Close with URC 0, and cycle appropriately.
    G. No Reply a. TC 076 with later effective date. 1. Input TC 460 on current filing requirement.
    2. Close with URC D.
    b. TC 076 effective date for middle of tax year. 1. Input TC 016 using CC BNCHG to remove the 1065 filing requirement and input a filing requirement for a Form 1120. Add LLC indicator if needed.
    2. Close with URC 0, and cycle appropriately.
    c. There is no TC 090 on the account and the entity is a single member LLC. 1. Close with URC D.
    d. There is no TC 090 on the account and the entity is a multi member LLC. 1. Input TC 460 on current filing requirement.
    2. Close with URC D.

3.13.222.73.6.5  (01-01-2014)
UPC 329 RC 1 - LLC - Form 7004 for Form 1041 and Form 1065

  1. Use the following table to resolve Unpostable Form 7004 (Form 1041/1065) conditions:

    IF the UNP is a Form 7004 (Form 1041/1065), and AND THEN
    A. The unpostable is a Form 7004 and the box is marked for a Form 1065/1041. a. The Form 7004 is not timely filed. Close with URC D.
    b. Research indicates an extension is already posted to the correct MFT and TXPD. Close with URC D.
    B. The box is marked for Form 1065. a. There is no TC 076 or the effective date is later than the tax period on the Form, and ENMOD shows 1120 FR. 1. Input TC 016 using CC BNCHG to remove the 1120 filing requirement and input a filing requirement for a Form 1065. Add LLC indicator if necessary.
    2. Close with URC 0 and cycle appropriately.
    b. There is no TC 076 or the effective date is later than the tax period on the Form and the entity is a single member LLC. Form 1120 Filing requirement is on the account. 1.Input TC 016 to zero out the Form 1120 filing requirement. Add LLC indicator if needed.
    2. Close with URC D.
    c. BMFOLE shows a TC 076 or TC 090 and the effective date matches the tax period on the form or is for the middle of the tax year. 1. Correspond (using the appropriate letter) with the taxpayer.
    2. Request a corrected extension(s).
    3. Suspend the case for 60 days.
    d. The entity is a single member LLC and ENMOD shows a 1041 FR. 1. Input TC 016 to remove 1041 FR.
    2. Send appropriate letter to notify taxpayer.
    3. Close with URC D.
    C. Taxpayer Replies with correct Form 7004.   1. Input TC 460 on current filing requirement.
    2. Close with URC D.
    D. No Reply a. TC 076 or TC 090 effective date matches tax period on Form. 1. Input TC 460 on current filing requirement.
    2. Close with URC D.
    b. TC 076 or TC 090 effective date is for middle of the tax year. 1. Input TC 460 on current filing requirement.
    2. Close with URC D.
    c. The extension has the correct Tax Class and only the MFT needs to be corrected 1. Correct the MFT
    2. Release using URC 6.
    d. The Tax Class of the DLN is correct, and the Return Code was not edited correctly. 1. Edit the correct Return Code on the document.
    2. Release with URC 8, and request Reject to enter the correct return code.
    e. The Tax Class of the DLN is not correct. 1. Input TC 460 on current filing requirement.
    2. Close with URC D.
    E. 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 an LLC.
    2. URC 0 and cycle as appropriate.

3.13.222.73.7  (01-01-2014)
UPC 329 RC 1 - Form 941 or Form 941-M

  1. Use the following table to assist with resolving the unpostable condition when it involves a From 941 or a Form 941-M:

    IF AND THEN
    A. Form 941 with a Form 2859 unposts.   1. Release using URC 8.
    2. Request the DLN be canceled, and,
    3. The return to be routed to Accounting for Prompt Assessment Processing.
    B. Form 941/941-M with a FR 09/10. a. No Form 941-Ms attached and/or no Revenue Officer's employee number is written in the lower right hand corner. 1. Release using URC 8.
    2. Request Rejects cancel the DLN and,
    3. Route to Compliance Services Collection Operations (CSCO) formerly SCCB.
    b. Form 941-M(s) are attached, and a Revenue Officer's employee number is written in the lower right hand corner of the return. Release using URC 0.

3.13.222.73.8  (01-01-2014)
UPC 329 RC 1 and 2 - Entity Control Form 1120-C EO Unpostables -

  1. Subchapter T cooperatives - For taxable years ending on or after December 31, 2007, a cooperative organization described in Section 1381 (including a farmers' cooperative exempt from tax under Section 521) is required to make a return, whether or not it has taxable income and regardless of the amount of its gross income, on Form 1120-C.

  2. Farmers' cooperatives - For taxable years ending before December 31, 2007, a farmers' cooperative organization described in Section 521(b)(1) (including a farmers' cooperative that is not exempt from tax under Section 521) is required to make a return on Form 990-C.

  3. Subsections (SS) 80 and 93 are compatible with Form 990-C.

    1. SS 80, EO Status 01, identifies a tax-exempt farmer's cooperative under Section 521.

    2. SS 93, EO Status 12, identifies a taxable farmer's cooperative.

  4. The Type of Organization (TO) identifies the tax-exempt status of the return.

    1. TO 6 is a tax-exempt farmer's cooperative under Section 521.

    2. TO 7 is a taxable farmer's cooperative.

  5. Form 990-C with a filing requirement on master file will unpost in one of three ways:

    990-C FRC SS TO EO Status
    1 or 2 93 7 NA
    1 or 2 80 6 NA
    0 80 or 93 NA 01 or 02

  6. Research the Exempt Organization Determination System (EDS) to verify the organizations tax-exempt status.

    If EDS indicates the organization is exempt and master file indicates the SS is: Then
    80 Release the unpostable with URC 8 and request Rejects to change the TO to 6.
    93 Change the SS to 80 with a TC 016, release the unpostable with URC 0 and cycle to post after the TC 016.

  7. If EDS does not show tax-exempt status, correspond with the taxpayer requesting clarification of tax exempt status using Letter 1224C or 3064C.

    If Then
    The organization responds with a letter of determination and master file indicates the SS is 80 Release the unpostable with URC 8 and request Rejects to change the TO to a 6.
    The organization responds with a letter of determination and master file indicates the SS is 93
    1. Change the SS to 80 and EO Status to 01 on master file using a TC 016.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    The organization responds that they are not tax-exempt and master file indicates the SS is 80:
    1. Change the SS to 93 and EO Status to 12 on master file with a TC 016.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    The organization responds that they are not tax-exempt and master file indicates the SS is 93 Release the unpostable with URC 8 and request Rejects change the TO to 7.
    The organization does not respond:
    1. Request confirmation of tax-exempt status from the microfiche unit in Cincinnati.

    2. If microfiche indicates tax-exempt status, process using instructions, process using the appropriate instructions above.

    3. If microfiche does not indicate tax-exempt status, process using the appropriate instructions above.

  8. If an organization files a Form 7004 extension checking the Form 1120-C box, research CC INOLE to determine if the organization is a Form 990 or Form 990-PF filer. If they are an exempt organization that has filed the wrong extension, release the unpostable with URC 8. Edit the correct form and MFT on the extension. Request that Rejects cancel the DLN, renumber and process the extension with the correct form and MFT.

    Note:

    The Service will not impose failure to file penalties if a timely Form 1120-C is filed in lieu of a Form 990-C or Form 1120.

3.13.222.73.9  (01-01-2014)
Form 1120-POL With Active or Without Active EO FR

  1. Use the following table to assist with resolving the unpostable condition when it involves a From 1120-POL with or without EO filing requirements:

    If And Then
    Unpostable is Form 1120-POL FRC is for an 1120-01 1. Research to determine taxpayer has been filing a Form 1120-POL.
    2. Input TC 016 to change FRC to 1120-09.
    3. URC 0 and cycle as appropriate.
    Account has an EO status with a FRC for a 990. 1. Research to determine taxpayer has been filing a Form 1120-POL.
    2. Input TC 016 to change FRC to 1120-09.
    3. URC 0 and cycle as appropriate.
    FRC is for an 1120-01 and account is in ST 34 1.Input TC 016 to change FRC to 1120-09.
    2.URC 0 and cycle as appropriate.

3.13.222.74  (01-01-2014)
UPC 329 RC 1 - Payments (Not For LLCs)

  1. Use the following table to resolve this unpostable condition:

    IF the UNP is a Payment AND THEN
    A. A different EIN is found after researching.   1. Inform the taxpayer, with the appropriate letter, of the correct EIN.
    2. Close with URC 6.
    B. A different MFT is found after researching. The payment money amount is in line with the payments the taxpayer is making. 1. Close with URC 6.
    2. If UPDIS will not accept URC 6, then close with URC 8 and the appropriate nullifier code.
    3. If UPDIS will not accept URC 8, then close with URC 1 and the appropriate nullifier code. Refer to IRM 3.13.222.20.1 if using a URC 1.
    C. A different EIN or MFT cannot be located.   1. Correspond with the taxpayer using the appropriate letter. The letter must include the actions that will be taken if the taxpayer does not reply.
    2. Suspend the case for 60 days.
    D. Taxpayer responds.   1. Correct the unpostable per taxpayer information.
    2. Close with the appropriate URC (6, 8 or 1).
    3. Attach the reply if needed, to the original return or extension.
    E. No Reply Apply payment to any module with tax due. If no tax owed, close with URC 8 to Rejects to send to Unidentified for a refund.
    F. A payment is received and unposts as an MFT 05 and IDRS shows FR of 941, 940, 944 or 1120-02, check to see if the payment needs to be posted to any of the FR on the account. If all the modules on the account are satisfied, the payment cannot post to any of the FR on IDRS, this may be for a business that might be filing for bankruptcy. Research to see if a bankruptcy account has been set up for the corporation (Chapter 13 liquidation trust) if no liquidation trust is found. 1. URC 8 the payment with a Nullifier Code of 40.
    2. In the Remarks input "Cancel DLN and research further." This will be sent to Unidentified where they will send a letter to the taxpayer asking them to indicate where the payment needs to be applied.
    G. Taxpayer's SSN is not available on the check.   1. Close with URC 8.
    2. Request Rejects send to Unidentified to correspond with the Taxpayer.
    IDRS shows FR 941, 940, 944 or 1120-02, and research shows no prior tax is owed. 1. URC 8 the payment with a Nullifier Code 49 to the taxpayers SSN with a MFT of 30.
    2. The tax year must be for December, never a mid-year (unless the taxpayer has an established fiscal filing year on their IMF account, research this using IMFOLI)
    H. A payment has unposted and research using RTR shows the scanned image of a check that was received and the taxpayer indicates it is for estimated taxes, see note below. IDRS shows 1065 FR only. 1. URC 8 code the payment with Nullifier code 49 to the taxpayers SSN with an MFT of 30.
    2. The tax year must be for December, never a mid-year (unless the taxpayer has an established fiscal filing year on their IMF account, research this using IMFOLI).
    I. Unable to locate taxpayer's SSN Telephone number is on the taxpayer's check Call taxpayer for SSN
      Telephone number is not available on taxpayer's check 1. Close with URC 8.
    2. Request Rejects send to Unidentified to correspond with the Taxpayer
    IDRS shows FR 941, 940, 944 or 1065 and research shows no prior tax is owed. 1. URC 8 code the payment with Nullifier code 49 to the taxpayers SSN with an MFT of 30.
    2. The tax year must be for December, never a mid-year (unless the taxpayer has an established fiscal filing year on their IMF account, research this using IMFOLI).
    J. A payment is received and the MFT does not match the FR on IDRS.   1. Research IDRS for a better EIN using the same name with the same MFT.
    2. If one is found, then 6 code the payment to the correct EIN.
    3. If research determines there is not another EIN, then 8 code the payment using Nullifier Code 40 and in the Remarks input "Cancel DLN and Research further."

    Note:

    If taxpayer indicates on check that payment is for 1040 ES, do not apply payment to BMF modules, apply to 1040 MFT 30 appropriate tax year.

3.13.222.75  (01-01-2014)
UPC 329 RC 1 - Payments (For LLCs Only)

  1. Use the following table to resolve this unpostable condition:

    IF the UNP is a Payment for MFT 02 AND THEN
    A. BMFOLE shows a TC 076 with a PARA CD:A (indicating taxpayer elected to be a C Corporation). The effective date matches the tax period for the payment, and the filing requirement on IDRS is Form 1065. 1. Input a TC 016 using CC BNCHG to remove the 1065 and input the filing requirement to 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 payment. 1. Correspond (using the appropriate letter) with the taxpayer informing them that the Form 8832 was not valid for the tax period of the payment. The letter must include the actions that will be taken if the taxpayer does not reply.
    2. Request a corrected Form 8832 per Code of Federal Regulations 301-7701-3(b)(1).
    3. Suspend the case for 60 days.
    *See note for Payment and Return.
    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. The letter must include the actions that will be taken if the taxpayer does not reply.
    2. Suspend the case for 60 days.
    *See note for Payment and Return.
    D. Taxpayer Replies. a. With a notice of acceptance or an acceptable Form 8832. Process the Form 8832, and 0 code the payment with the appropriate cycle.
    b. Form 8832 is not acceptable.
    1. Process the Form 8832 according to Form 8832 instructions in IRM 3.13.222.110
    2. Close unpostable with URC 8.
    3. Using the appropriate routing form, request Rejects to cancel the DLN and refund the taxpayer.
    E. No Reply   1. Close with URC 8.
    2. Using the appropriate Routing form, request Rejects to cancel DLN and refund to the taxpayer.

    Note:

    If the return (TC 150) has also unposted on UPTIN or is on TXMODA, you must correspond with the taxpayer addressing both the return and the payment.

  2. Use the following table to resolve this unpostable condition:

    IF the UNP is a Payment for MFT 06 AND THEN
    A. BMF has an MFT other than 06 and TC 076 is not present. Account is a Partnership or LLC. 1. Input a TC 016 to change the filing requirement on IDRS to 1065.
    2. Close with URC 0 and cycle appropriately.
    B. Research on BMFOLE indicates a TC 076 is present with PARA CD:B and the effective date matches the tax period of the unpostable.   1. Input a TC 016 to change the filing requirement on IDRS to 1065.
    2. Close with URC 0, and cycle appropriately.
    C. BMFOLE shows a TC 076 with PARA CD:A, and the effective date matches the tax period on the payment.   1. Correspond (using the appropriate letter) with the taxpayer. The letter must include the actions that will be taken if the taxpayer does not reply.
    2. Suspend the case for 60 days.
    *See note for Payment and Return
    D. Taxpayer Replies. a. Correspondence is received indicating a different MFT. Close with URC 8 request Rejects renumber the DLN and post to the correct MFT.
    b. Sends in notification that Form 8832 was filed in error, and their request to withdraw the election is received before the due date of the election. 1. Input TC 077.
    2. Using CC BNCHG, update the filing requirement to Form 1065.
    3. Close with URC 0 and cycle appropriately.
    c. Sends in notification that Form 8832 was filed in error, and their request to withdraw the election is received after the due date of the election, and the initial election was effective for the first day of the LLC existence. 1. Contact the taxpayer by phone if possible. Inform taxpayer they may change their classification for the next year by timely filing a Form 8832.
    2. Close unpostable with URC 8.
    3. Using the appropriate routing form, request Rejects to cancel the DLN and refund the payment.
    d. Sends in notification that Form 8832 was filed in error, and their request to withdraw the election is received after the due date of the election, and the initial election was not effective for the first day of the LLCs existence. 1. Contact the taxpayer by phone if possible. Inform taxpayer they cannot change their classification for the current year, they are not eligible to file Form 8832 to change their classification for 60 months; however, they may seek a waiver to the 60 month rule by requesting a Private Letter Ruling (PLR) from the Office of Chief Counsel, National Office.
    2. Close unpostable with URC 8.
    3. Using the appropriate routing form, request Rejects to cancel the DLN and refund the payment.
    E. No Reply   1. Close with URC 8.
    2. Using the appropriate routing form, request Rejects cancel the DLN and refund the payment.

3.13.222.76  (01-01-2014)
Unpostable Code (UPC) 329 Reason Code (RC) 4

  1. TC 150 for MFT 10 attempting to establish or post to a module when the following two conditions exist:

    1. No FR is set for Form 940, Form 941, Form 943, Form 944.

    2. Entity Nanny Tax Indicator is significant.

  2. Allow corrected UPC 329 RC 4.

  3. Use the following table to resolve this unpostable condition:

    IF THEN
    A. The filing requirement is present. Release using URC 0.
    B. The filing requirement is not present. 1. Input the filing requirement using TC 016.
    2. Release using URC 0, and cycle as necessary. Refer to IRM 21.7.13, Assigning Employer Identification Numbers (EIN).
    C. The Entity is an Indian Tribal Government. See IRM 21.7.13 for more information on this employment code.

    Note:

    Employment Code I is assigned to Indian Tribal Entities, based on a determination by the National Office ITG function. Only the National Office ITG function is authorized to assign Employment Code I. Indian Tribal Governments are not required to file Form 940. The Employment Code must be I and a 941 or 943 filing requirement must be input.

3.13.222.77  (01-01-2014)
Unpostable Code (UPC) 329 Reason Code (RC) 6

  1. The Programming Requirements Package (PRP) for UPC 329 RC 6 states to unpost MFT 14 TC 150 attempting to establish or post to a module when:

    1. The tax year is not equal to a significant Form 944 Cache Year (e.g. TY=2010 and Form 944:2010=0), no matter what the FRC is set.

  2. Unpost MFT 01 TC 150 attempting to establish or post to a module when:

    1. The tax year is not equal to the current processing year, but it is equal to a significant Form 944 Cache Year (e.g. TY=2010 and Form 944:2010=1), no matter what FRC is set.

  3. Form 944, Employer's ANNUAL Federal Tax Return, (including Form 944-PR, and Form 944-SS) was developed to simplify the reporting of employment taxes (e.g. Federal Income Tax Withheld, Social Security Tax, and Medicare Wage Tax) and to reduce the burden on small businesses.

  4. The first eligible tax period ending for Form 944 was 200612. The form is due by January 31st.

  5. Form 944 eligible taxpayers were selected based upon their past Form 941 liabilities. To be considered, their combined annual liability on the quarterly returns must not have been equal to, or have exceeded, $1,000.00. The taxpayer is then notified by mail that they have the option to file their employment taxes on Form 944 once a year rather than on Form 941. However, if the taxpayer wishes to be excluded from Form 944, they must reply by April 1st. Automatic exceptions are granted:

    1. if the taxpayer files Form 941 electronically, or

    2. if the taxpayer expresses that for the upcoming year, they estimate their combined annual liability of Federal Income Withheld Tax, Social Security, and/or Medicare will be equal to, or exceed $1,000.00. Exception: For tax year 2009, taxpayers will not be notified of their 944 eligibility. Instead, taxpayers will be identified for the 944 program when they apply for their Employer Identification Number or they contact the Service if they feel they are eligible.

  6. The following CP Notices will generate to the taxpayer when they file a Form 944 and exceed the threshold:

    1. CP 250(A): If the taxpayer files a Form 944, with total tax liability of $1000.00 or more, and it posts in cycle 09 or prior.

    2. CP 250(B): If the taxpayer files a Form 944, with total tax liability of $1000.00 or more, and it posts in cycle 10 or subsequent.

    3. CP 250(C): If the taxpayers combined annual liability has exceeded $1,000.00. This notice informs the taxpayer that they should file a Form 941 for the following tax year. Note: This is a reminder notice and is issued to taxpayers who previously received CP 250(B).

    4. Letter 3007C is manually generated to the taxpayer when correspondence is timely received to opt out of the 944 program.

  7. Beginning January 2009, the fields "944-ESTAB-YR" and "944-FINAL-YR" will be replaced by a new entity field, "944- CACHE-YR". This new field will list the last 10 years in which the taxpayer was liable for Form 944. Thus, it will allow the user to determine if the taxpayer is liable for a Form 944 in the current tax year easier.

  8. Please use the following chart to resolve this unpostable condition:

    IF AND THEN
    A. UNP is a Form 941 and a Form 944 has already posted for the same TXPD as the UNP, CACHE Year is valid on the master file 1. Close with URC 8.
    2. Request Rejects to cancel DLN.
    B. Taxpayer files Form 941 for one or more quarters, and also files Form 944 for the same year, The taxpayer opted out of the Form 944 program by the April 1st deadline. Form 944 Cache Year Indicator is turned on (equal to 1) and research indicates a CP 250(A), CP 250(B) or a Letter 3007C was issued to the taxpayer
    1. Establish Form 941, input 01 in filing requirement field.
    2. Enter a YYYY9 in the Form 944-YR/IND field on CC BNCHG to delete the 944 Cache Year Indicator.
    3. Correspond with taxpayer using appropriate letter informing of correct filing requirement.
    C. UNP is a Form 941, Form 944 Cache Year Indicator is turned on (equal to 1) and research indicates CP 250(A), CP 250(B) or a Letter 3007C were not issued to the taxpayer 1. Input a TC 016 to establish as a Form 944 filer.
    2. Close with URC 8. Requests Rejects to cancel DLN.
    3. Correspond with taxpayer using appropriate letter informing of correct filing requirement. List the cancelled DLN in the letter.
    D. UNP is a Form 941, Form 944 Cache Year Indicator is turned on (equal to 1) and research indicates a CP 250(A), CP 250(B) or a Letter 3007C was issued to the taxpayer 1. Input a TC 016 to establish as a Form 941 filer.
    2. Enter a YYYY9 in the Form 944-YR/IND field on CC BNCHG to delete the 944 Cache Year Indicator.
    3. Release using URC 0 and cycle appropriately.
    E. UNP is a Form 944, .A Form 941 filing requirement is present on master file and CACHE Year is valid for a Form 944 on master file 1. Remove 941 FR via CC BNCHG and add Form 944 filing requirement.
    2. Close unpostable with URC 0 and cycle appropriately.

    Note:

    Letters 4148C and 4086C are used with this unpostable

3.13.222.78  (01-01-2014)
Unpostable Code (UPC) 329 Reason Code (RC) 9

  1. Unpost Form 1120-C (Doc Code 03) return if Form 1120 FRC value is not 20 and the "Last filed an Form 1120" field is zero.

  2. Unpost Form 1120-C (Doc Code 03) return if tax period is 200611 or prior.

  3. Unpost Form 1120 (Doc Code not 03) return if Form 1120 FRC value is 20 or Form 990-C FRC value is 01.

  4. Research the unpostable below to determine the tax period ending and the correct filing requirement code:

  5. Please use the following chart to resolve this unpostable condition:

    Note:

    Form 990-C is obsolete and can no longer be processed regardless of the tax period. All Form 990-C that are received will be converted to a Form 1120-C before processing.

    IF AND THEN
    A. The taxpayer filed Form 1120-C or the taxpayer filed Form 990-C and the return was converted to a Form 1120-C and there is indication the company is a co-op. The filing requirement code is other than 1120-20. 1. Input TC 016 to correct the filing requirement to 1120-20.
    2. Close with URC 0 and cycle appropriately.
    B. The taxpayer filed a Form 990-C and the return was converted to a From 1120 instead of Form 1120-C.   1. Input TC 016 to correct the filing requirement to 1120-20 if needed.
    2. Close with URC 8 and request Rejects to cancel DLN and renumber the form with Doc Code 03 (1120-C).
    C. The taxpayer filed Form 1120 and the tax period is 200612 or later. The filing requirement is for Form 1120-C (1120-20) or Form 990-C. Correspond with the taxpayer to inform them they have filed the incorrect form per their exempt status. The letter must inform the taxpayer of what actions will be taken if the taxpayer does not reply. Suspend for 60 days.
    Taxpayer replies with Form 1120-C.   Close with URC 8 and requests Rejects to cancel DLN and renumber new form with Doc Code 03.
    Taxpayer replies they are now a Form 1120 filer (not Form 1120-C).   Input TC 022 to remove EO status. Close with URC 0 and cycle appropriately. Refer to IRM 3.13.12.6.2.6 for the input of the TC 022.
    No reply   Close with URC 8 and request Rejects to cancel DLN and forward to Files.
    D. Form 1120 and the tax period is 200611 or prior. The filing requirement code is 1120-20. 1. Input TC 016 to correct the filing requirement code to Form 1120.
    2. Close with URC 0 and cycle appropriately.
    E. Form 1120 and the tax period is 200611 or prior. The filing requirement code is 990-C or there is an indication taxpayer files a Form 1120. 1. Input TC 016 to change the filing requirement code from 1120-20 to 1120-01.
    2. Close with URC 0 and cycle appropriately.
    F. The taxpayer filed a Form 1120-C and there is no indication that the company is a co-op. The filing requirement code is other than 1120-20. Correspond with the taxpayer to inform them they have filed the incorrect form and there is no record of their exempt status. The letter must inform the taxpayer of what actions will be taken if the taxpayer does not reply. Suspend for 60 days.
    Taxpayer replies with Form 1120.   Close with URC 8 and requests Rejects to cancel DLN of 1120-C, renumber and process to a 1120.
    No reply   Close with URC 8 and request Rejects to cancel DLN and forward to Files.

  6. Below for your reference, are filing requirement codes for Form 990-C and Form 1120 series:

    Note:

    Form 990-C is obsolete and can no longer be processed regardless of the tax period. All Form 990-C that are received will be converted to a Form 1120-C before processing.

    Form 990-C BMF Filing Requirement Codes Form 1120 BMF Filing Requirement Codes
    0 - Not required to file. 00 - Return not required to be mailed or filed.
    1 - Required to file Form 990-C. 01 - Form 1120 required to be filed. Form 1120 required to be mailed in the month in which the corporations fiscal year ends.
    2 - Not required to file if Form 1120 filed instead 02 - Form 1120S required.
    5 - Reserved for programming use. 03 - Form 1120-L required.
    8 - Account currently inactive, return not required to be mailed or filed. 04 - 1120-PC required.
    06 - Form 1120-F required.
    07 - Form 1120 required to be filed.
    09 - Form 1120-POL required. Return not required to be mailed.
    10 - Form 1120-H required.
    11 - Form 1120-ND required.
    14 - Subsidiary Organization. Return not required to be mailed or filed.
    15 - Form 1120-FSC required.
    16 - Form 1120-SF required.
    17 - Form 1120-RIC required
    18 - Form 1120-REIT required
    19 - Form 1120 Personal Service Corp. required.
    55 - Reserved for programming use.
    88 - Account currently inactive. Return not required to be mailed or filed.

3.13.222.79  (01-01-2014)
Unpostable Code (UPC) 331 Reason Code (RC) 6

  1. The Programming Requirements Package (PRP) for UPC 331 RC 6 states: Duplicate MFT 05/06 return (no CCC G present).

  2. This unpostable will generate when a second TC 150 attempts to post to an account with a posted TC 150.

  3. Proper research must be completed to determine the cause of the ‘duplicate’ return. Some reasons may be:

    1. Taxpayer sends in a duplicate (exact copy) return (may be duplicate of electronic return).

    2. Taxpayer sends in an amended return (may or may not be marked ‘amended’).

    3. Taxpayer sends in a copy of the return in response to IRS correspondence.

      May or may not be an amended return
      May need to be forwarded to the IRS department that sent the correspondence

    4. The taxpayer is filing multiple returns for the same tax period.

      May be using the same EIN for different entities.
      ESTAB for posted return(s) or call taxpayer.
      Some of these returns may need to be sent to AM or CI for resolution.

    5. The posted return may be posted to the wrong tax period or EIN.

      ESTAB for posted return if necessary.

  4. A paper return cannot be associated with an electronic return. In that case, cancel the DLN of the paper return and forward to files (the return will be filed using the DLN on the paper return).

  5. The taxpayer may file a duplicate return just to indicate the account is final. If the dollar values are identical, or the second return is all zeros, input a TC 591-020 to close the account and associate the return. If the dollar values are different, close URC 6 with G and F code.

  6. If the address is not the same as on master file, follow the procedures in IRM 3.13.222.36

  7. The "amended" return will be the last one received. Compare the posted return to the unpostable return to determine "last received" . The received date of the posted return may be found on TRDBV. If the amended return cannot be determined, contact the taxpayer for the correct return to be posted as amended. Suspend unpostable if necessary.

  8. The following table will provide assistance in resolving this unpostable condition:

    If And Then
    A. The return is for the same business entity, tax period and MFT as on the master file, a. The money amounts are the same as on the master file (TRDBV ). The taxpayer indicates this is a response to correspondence from the IRS. 1. Close with URC 6 with a G in the CCC field. The return must also be edited with a G code, if the taxpayer changed or added something such as K-1’s or a signature.
    2. If the return is just a copy sent in with a response to an IRS inquiry. Close the case with URC 8 and have the return forwarded to the IRS team that initiated the response.
      b. The money amounts are the same as on master file (TRDBV ). The taxpayer does not give any indication why a duplicate return was filed.
    1. If the posted return is a paper return, close with URC 8 and request Rejects to associate with the original return on file.

    2. If the posted return is an electronic (e-Filed or MeF) return, close with URC 8 and request Rejects to cancel the DLN and send to files.

      c. The money amounts are not the same as on the master file and the unpostable return was received after the posted return. Close with URC 6 with a G in the CCC field. This will show that the return is an amended return. The return must also be edited with a G code.
      d. The money amounts are not the same as on master file and the unpostable return was received prior to the posted return on file. 1. If the posted return is a paper return, close with URC 8 and request Rejects to associate with the original return on file.
    2. If the posted return is an electronic (e-Filed or MeF) return, close with URC 8 and request Rejects to cancel the DLN and send to files.
    B. The name on the unpostable return is not the same as on the master file.   1. Research for a valid name change, via the return and state charter.
    2. If a valid name change is indicated, input a TC 013.
    3. Close with URC 8 or URC 6 as indicated in the AND statement "a,b,c and d" above.
      a. There is not any indication of a name change on the return or State Charter. 1. Research for a different EIN.
    2. If a different EIN is found and it matches the name on the return, close with URC 6 with the found EIN. Send 147C letter according to instructions in 3.13.222.13.
      b. There is not any indication of a name change and no other EIN is found matching the return. 1. Contact the taxpayer to see if the name or organization has changed, or if this is a new entity. Correct accordingly.
    a. Name Change – Input TC 013, close with URC 6 and cycle appropriately.
    b. Mergers – Follow procedures for merging account. Refer to IRM 3.13.222.19.
    c. New Entity – Follow procedures for assigning and establishing a new EIN.
    C. The return is for a different tax period then on the unpostable document. The correct tax period does not have a return posted. Close with URC 6 to the correct tax period.
    D. Master file and return match, but the MFT of the return is incorrect. Example: MFT 05, but the return is a Form 1065.   1. Close with URC 8.
    2. Requests Rejects to cancel the DLN and renumber using the appropriate tax class and document code.

3.13.222.80  (01-01-2014)
Unpostable Code (UPC) 331 Reason Code (RC) 7

  1. The Programming Requirements Package (PRP) for UPC 331 RC 7 states: MFT 12 TC 150 is attempting to post with significant Form 1042 Excise Tax Amount, and there is no entity employment code of 'F' in the account.

  2. The unpostable will generate when an entity reports an excise tax on Line 71 of the Form 1042 and does not have an entity employment code F on the account.

  3. Federal agencies are the only entities required to pay this excise tax. Proper research must be completed to determine if the entity is a federal agency. Refer to IRM 3.13.2.5.3.

    If And Then
    A. The entity is a federal agency. There is not an employment code F on the account. 1. Call TE/GE ≡ ≡ ≡ ≡ ≡ ≡ (Austin office) and request an input of a TC 016 to add the employment code F.
    2.URC 0 and cycle appropriately.

    Note:

    Telephone number internal use only.

    B. The entity is not a federal agency. Line 71 reports an excise tax amount. Close with URC 8 and request Rejects to eliminate the amount on Line 71.

3.13.222.81  (01-01-2014)
Unpostable Code (UPC) 332 Reason Code (RC) 2

  1. The Programming Requirements Package (PRP) for UPC 332 RC 2 states: Any non-1120-F TC 150 if current Form 1120 FRC is 06.

  2. The following table will provide assistance in resolving this unpostable condition:

    Return FRC Doc Code
    1120 01 10/20
    1120-SF 16 06
    1120-F 06 66/67
    1120-FSC 15 07
    1120-H 10 71
    1120-L 03 11
    1120-ND 11 08
    1120-PC 04 13
    1120-POL 09 20
    1120-REIT 18 12
    1120-RIC 17 05
    1120S 02 16

  3. The chart below will help to determine how to resolve UPC 332 RC 2:

    IF THEN
    A. Research indicates the taxpayers filing requirement is consistent with the unpostable return, and it is not a Form 1120-F. Release using URC 0. Example: Taxpayers FRC has been updated to Form 1120 and the unpostable return is a Form 1120.
    B. TC 150s have not posted for Doc Code 66/67 (FRC 06). 1. Input TC 016 to correct the FRC.
    2. Release using URC 0, and cycle as necessary.
    C. TC 150s have posted for Doc Code 66/67. 1. Correspond with the taxpayer explaining our records indicate the taxpayer is required to file a Form 1120-F and request a signed copy for processing. Inform the taxpayer their form will be removed from processing if a response is not received.
    2. Suspend the case for 60 days.
    D. Taxpayer Replies with a Form 1120-F return. 1. Release using URC 8.
    2. Request Rejects cancel the DLN of the unpostable return to remove the unpostable from SCCF.
    E. No Reply 1. FRC is 06, release using URC 8 to cancel the DLN.
    2. Using the appropriate routing slip, request Rejects to cancel DLN and re-file.
    F. The return or extension (Form 7004) is received with a remittance. Prepare Form 3244 to remove the money and post to the Master File.

3.13.222.82  (01-01-2014)
Unpostable Code (UPC) 332 Reason Code (RC) 3

  1. The Programming Requirements Package (PRP) for UPC 332 RC 3 states: Form 7004 (TC 620, Doc Code 04) with Return Code of zero and Form 1120 FRC of 6; or

  2. A posted return (TC 150) that has a Doc Code (other than 51 or 52) which is not compatible with the input Return Code.

  3. 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 Zip Code.

  4. Return Codes on extensions are for Form 1120-F only:

    If Form Code is: And Then edit Return Code
    15 Box on line 2 is checked (foreign corporation which does not maintain an office in US) 6
    15 Box on line 2 is not checked (foreign corporation which maintains an office in US) 7

  5. Please use the following table to resolve this unpostable condition:

    IF AND THEN
    A. The DLN is an international DLN. a. Line 1 has Form Code 15 entered in the boxes and the Return Code is not a 6 or 7 or documents does not contain a Return Code. 1. Edit the document to the right of Line 1 with the correct Return Code.
    2. Release using URC 8.
    3. Request Rejects to input the edited Return Code in 01RTC.
    b. Line 1 has Form Code 15 entered in the boxes and the Return Code 6 or 7 is already edited on the document. 1. Release with URC 8.
    2. Request Rejects to input the edited Return Code in 01RTC.
    c. Line 1 has Form Code 15 entered in the boxes and the Return Code 6 or 7 is already edited on the Form 7004 and there is a TC 150 posted on the module. 1. Release with URC 8.
    2. If the Doc Code (the 4th and 5th digits of the DLN) of the posted TC 150 is 66, request Rejects to input Return Code 6 in 01RTC.
    3. If the Doc Code of the posted TC 150 is 67, requests Rejects to input Return Code 7 in 01RTC.
    B. The DLN is a domestic DLN. a. Line 1 has Form Code 15 entered in the boxes. 1. Make sure the correct Return Code is edited to the right of Line 1.
    2. Release with URC 8.
    3. Request Rejects renumber the document with FLC 60 or 78, as applicable.
    b. Line 1 has other than Form Code 15 entered in the boxes and the entity portion of the document is a domestic address. 1. Master File shows the filing requirement of 6 or 7.
    2. Input TC 016 to remove the filing requirement.
    3. Release with URC 0 and cycle appropriately.
      c. Line 1 has other than form code 15 entered in the boxes and the entity portion is a foreign address 1. Circle out Line 1 enter Form Code 15.
    2. Edit the document to the right of Line 1 with Return Code 6 or 7.
    3. Release using URC 8
    4. Request Rejects to input the edited Return Code in 01RTC and renumber the document with FLC 60 or 78, as applicable.

3.13.222.83  (01-01-2014)
Unpostable Code (UPC) 338 Reason Code (RC) 3

  1. The Programming Requirements Package (PRP) for UPC 338 RC 3 states:
    MFT 02 TC 150 (document code 07 - Form 1120-FSC) attempting to post and TC 060 is not already posted in the entity unless TC 061/066 is posted with Effective Date later than the tax period ending.

  2. Use CC UPTIN to determine if there is an open or closed unpostable TC 060.

  3. The following chart lists different scenarios that will help resolve UPC 338 RC 3:

    IF THEN
    A. A closed unpostable TC 060 is found with an effective date that agrees with the unpostable return tax period ending. Correct the unpostable with URC 0.
    B. An open unpostable TC 060 is found. Use CC UPTIN to determine if the case is assigned, notify your manager that another unpostable is open.
    C. A closed TC 060 is not found. 1. Request Research (BMFOLI) to verify the type of return the taxpayer has been filing.
    2. If research shows a posted Form 1120 FSC for the immediate prior year, input a TC 060 with an effective date of the first verified posted Form 1120 FSC.
    3. Correct the unpostable with URC 0. The unpostable return and TC 060 can be input in the same cycle.
    D. Unable to resolve. 1. Correspond with the taxpayer requesting an approved Form 8279 or to complete Form 1120.
    2. Suspend the case for 60 days.
    E. The taxpayer responds with an approved Form 8279 or a letter with an effective date which matches the unpostable Form 1120 FSC. 1. Use CC BNCHG, Input a TC 060 one cycle after TC 062 to reverse the correct effective date from the Form 8279.
    2. Correct the unpostable with URC 0 and cycle appropriately.
    F. If the taxpayer responds with a completed Form 1120. Input URC 8, and have Rejects delete the DLN and attach Form 1120 FSC to the new Form 1120.

    Note:

    No corporation may elect (Form 8279) to be a FSC or a small FSC after September 30, 2000. Once the election is made, it remains in effect until terminated or revoked. If a FSC has no foreign trade income for any five consecutive tax years, beginning after December 21, 2001, the FSC will no longer be treated as a FSC for any tax year beginning after that five year period.

3.13.222.84  (01-01-2014)
Unpostable Code (UPC) 338 Reason Code (RC) 4

  1. The Programming Requirements Package (PRP) for UPC 338 RC 4 states:
    MFT 02 TC 150 (Document Code 07 - Form 1120-FSC) attempting to post with Form 1120 FRC 00/06/15 and tax period ending is later than posted TC 061/066 Effective Date unless subsequent TC 060 is posted.

  2. Verify the tax period on UPCAS with the return.

  3. The following chart list different scenarios that will help resolve UPC 338 RC 4:

    IF THEN
    A. The tax period does not agree with the return and the corrected tax period agrees with the posted TC 061 066 effective date. Correct the unpostable with CC UPRES and URC 6.
    B. The corrected tax period does not agree with the posted TC 061 066. 1. Correct the TC 061 066 to the day after the tax period ending.
    2. Associate documentation with Form 8279 for future reference.
    3. Correct the unpostable with CC UPRES and URC 6.
    4. Verify the DLN, Document Code with the unpostable return.
    C. The DLN Document Code does not agree with the unpostable return. 1. Correct the unpostable with CC UPRES and URC 8. Explain to rejects that the DLN should be cancelled and the return renumbered.
    2. Request the Form 8279 from Files to verify the effective date.
    D. The effective date of the TC 061/066 is wrong. Use CC BNCHG with a TC 060 and the same effective date as the original TC 060.
    E. The correct effective date agrees with the unpostable. 1. Correct the unpostable with CC UPRES and URC 0.
    2. Input a TC 061 066 one cycle after TC 060 with the correct effective date.
    F. The corrected effective date would not agree with the unpostable. Correspond with the taxpayer for the correct termination date.
    G. The taxpayer responds to any of the above scenarios. Correct the unpostable accordingly.
    H. No reply 1. Correct the TC 061 066 to the day after the tax period ending. Associate documentation with Form 8279 for future reference.
    2. Correct the unpostable with CC UPRES and URC 8.

3.13.222.85  (01-01-2014)
Unpostable Code (UPC) 338 Reason Code (RC) 5

  1. The Programming Requirements Package (PRP) for UPC 338 RC 5 states:
    MFT 02 TC 150 (Document Code not - 07) attempting to post with Form 1120 FRC = 15; or, 1120 FRC = 00/01 and an unreversed TC 060 is posted with Effective Date earlier than tax period ending.

  2. Verify that the DLN Document Code agrees with the type of return numbered as a Form 1120.

  3. Verify the entity on the BMF with the entity on the unpostable return.

  4. Verify that the tax period on UPRES and the tax period on the return are the same.

    Note:

    Bypass UPC 338 RC 3 through 5 for MFT 02/05/06/07/34 Tax Year 2006/2007 Return if it contains Computer Condition Code "Q" (TETR-only return).

  5. The following chart list different scenarios that will help resolve UPC 338 RC 5:

    IF THEN
    A. The document code is wrong. 1. Close with URC 8.
    2. Request Rejects to have the document renumbered with the correct document code.
    B. The tax period on the return is different and the correct tax period is earlier than the effective date of the TC 060. 1. Correct with URC 8.
    2. Request Rejects input the return with the correct tax period.
    C. If the tax period on the return is correct, and the TC 060 is prior to the return tax period. 1. Notify the taxpayer the return has been converted to an 1120 FSC based on the taxpayers request to become an 1120 FSC filer.
    2. Close with URC 8.
    3. Request Rejects to convert the return to a Form 1120 FSC and process.
    D. Form 8873 is attached to a Form 1120, and box 3 is checked on Form 8873. 1. Use CC BRCHG.
    2. Input TC 062.
    3. Close with URC 0, and cycle appropriately.

3.13.222.86  (01-01-2014)
Unpostable Code (UPC) 339 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 339 RC 1 states:

    • A TC 061/066/090/091/096 (other than a corrected UPC 339) attempts to post to an entity module and did not meet the effective date check per Section 13.02.

    • An MFT 02 TC 150 (Doc Code 16) with significant S-Corp Effective Date that is less than 5 years after the Effective Date of a posted TC 091/096.

    • A TC 070 attempts to post to an entity module that has an unreversed TC 080 posted.

    • A TC 080 attempts to post to an entity module that has an unreversed TC 070 posted.

    • A TC 074 if its Effective Date is prior to the Effective Date of a posted TC 076.

    • A TC 076 if its Effective Date is within 5 years of the Effective Date of the last posted (and unreversed) TC 076.

    • A TC 078 if its transaction date is within 5 years of the Effective Date of the last posted (and unreversed) TC 076.

    • A TC 100 with Effective Date within 5 years of posted TC 100.

    • A TC 101 with Effective Date earlier than TC 100 Effective Date.

    • A TC 102 with Effective Date within 5 years of posted TC 102.

    • A TC 103 with Effective Date earlier than TC 102 Effective Date.

    • A TC 082 with Effective Date more than 366 days after current date.

  2. In most cases the original Form 2553 (Election to File as a Small Business Corporation) or Form 8279 (Foreign Sales Corporation) will need to be requested from Files to verify the effective date of the termination. A TC 090 or TC 060 will NOT POST when an effective date is being corrected or when a TC 091/096 or TC 061/066 was posted in error.

  3. A TC 090 with an effective date within the 5 years of a TC 091/096 (revocation/termination) will unpost.

  4. A TC 061/066 attempts to post to an entity and TC 061/066 effective date is prior to the TC 060 effective date.

    Note:

    Corrected UPC 339 will bypass the UPC 339 checks.

  5. See IRM 3.13.222.108 for additional procedures for processing Form 2553.

  6. The following chart lists different scenarios that will help resolve UPC 339 RC 1:

    IF AND THEN
    A. The unpostable is for a TC 090. a. The date is correct and the corporation received permission to make another election within 5 years. Close with URC 0.
    b. The unpostable was caused due to the correction of a prior unpostable. Close with URC 0.
    c. A posted TC 090 is on the account and no TC 092 was input to reverse the original TC 090. 1. Input TC 092.
    2. Close with URC 0.
    3. Cycle appropriately.
    d. The Form 2553 was approved before the 5-year re-election period. 1. Estab for Form 2553 to verify approval.
    2. If approval granted, close with URC 0.
    3. If approval was not granted, close with URC D
    B. The unpostable is a TC 091/096. a. The effective dates are the same (duplicate entries). Close with URC D.
    b. The effective dates are different. 1. ESTAB for TC 090/091/096 to verify the TC 091/096 effective date.
    2. Send ESTAB'd TC 091/096 to Entity for determination.
    3. Close with URC 2, void to TE.
    C. The unpostable is for TC 061/066. a. Form 8279 effective date was input incorrectly. 1. Input TC 062 and then input the TC 060 with the correct date.
    2. Correct the unpostable with URC 0.
    b. The TC 060 effective date is correct. 1. Verify the TC 061/066 effective date.
    2. If the TC 061/066 effective date cannot be verified, contact the taxpayer.
    3. Upon receipt of taxpayer response, take appropriate action as above.

    Note:

    Generally, a taxpayer cannot re-elect Subchapter S status within five years of a revocation or termination of their Subchapter S election. Taxpayers may apply for a Private Letter Ruling to re-elect within five years by providing a copy of Form 2553 and a letter making the request to: Internal Revenue Service, Associate Chief Counsel - PSI, Attn: CCPATCRU-Rm 6561, 1111 Constitution Ave., NW, Washington, DC 20224.

3.13.222.87  (01-01-2014)
Unpostable Code (UPC) 339 Reason Code (RC) 2

  1. The Programming Requirements Package (PRP) for UPC 339 RC 2 states:
    A TC 093/094 attempts to post to an entity module which has an unreversed TC 090 posted; or a 060 posted.

  2. Verify the information on Form 2553, (unpostable TC 093 or 094) and the entity on the master file.

  3. TC 063/064 attempts to post to an entity module which has an unreversed 060 posted.

  4. TC 063/064 attempts to post to an entity module which shows a TC 060 present and a TC 061 is not present.

  5. The following chart lists different scenarios that will help resolve UPC 339 RC 2:

    IF AND THEN
    A. The unpostable is a TC 093/094. The 090 is already on the account. Correct with URC D.
    B. The unpostable is TC 063/064. a. The entity on the Form 8279 (unpostable TC 063/064) is correct. 1. Notify the taxpayer that we already have an approved election, effective for the date on the posted Form 8279.
    2. Resolve the unpostable with URC D.
    b. The posted Form 8279 (TC 060) and the entity on ENMOD/INOLE are not the same. 1. Use CC BNCHG with TC 062.
    2. Correct with URC 0.

3.13.222.88  (01-01-2014)
Unpostable Code (UPC) 341 Reason Code Reason Code 1 And 2

  1. The Programming Requirements Package (PRP) for UPC 341 states:
    RC 1 - An input transaction attempted to establish a tax module in an account in which all FR codes are "8" .
    RC 2 - TC 474 or TC 960 attempts to post with no related Filing Requirement Code.

    1. Bypass the TC 474, check for MFT 01/14/10 (Forms 941/944/940) if TC 474 Document Code is 77 and Blocking Series is 5XX.

    2. Bypass this check for TC 960 for MFT 17.

  2. When the UPC 341 RC 1 Transaction Code is not 120, 141, 142, 30X, 42X, 470-475, 480-483, 488, 489, 582, 583, 590-599, 920 or 930, the case is assigned by GUF to Entity Control.

  3. All RC 2 cases are closed by GUF using URC 2 and routed back to the initiator.

  4. Other transactions will be transferred from the unpostable function when they cannot determine the correct EIN. Some of the reasons for transferring an UPC 341 are as follows:

    1. There is an indication on the unpostable document that the EINs that were consolidated are two different entities.

    2. The name on the unpostable document and the name on the BMF do not agree and another EIN was not located for the entity on the unpostable document.

    3. The unpostable document is an EO account and must be reopened by Entity Control.

  5. Research for another EIN as a result of an EIN consolidation. Verify that the original consolidation was correct. If necessary, have the TC 011 case pulled from the control file.

    Note:

    Completely review the case and research TRDBV for a posted or duplicate return when moving to a different EIN. If a return is posted on the other EIN refer to UPC 331 RC 6 instructions IRM 3.13.222.79 for closing unpostable.

  6. If no record of TC 011, check BMFOL and call the taxpayer if necessary.

  7. An account that has all 8's in the filing requirements as a result of a TC 020, (this account may be reopened). Input a TC 012. The transaction will not post to the account unless all filing requirements are changed to either a significant code or zero. Refer to IRM 3.13.2.6.3.2.

    Note:

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

    Note:

    Caution should be used when reopening an account that has all 8's in the filing requirements as a result of a No Merge condition.

  8. The following chart lists different scenarios that will help resolve UPC 341:

    IF AND THEN
    The unpostable is a payment or return. a. The entities are the same under both EINs. 1. Do not reopen the account.
    2. Close to the correct EIN with URC 6.
    b. The entities are different or not established. Process according to procedures for UPC 301 IRM 3.13.222.42 or 303 IRM 3.13.222.45.

3.13.222.89  (01-01-2014)
Unpostable Code (UPC) 343 Reason Code (RC) 2

  1. The Programming Requirements Package (PRP) for UPC 343 RC 2 states:
    TC 01X or 030 attempts to post with a change other than zero to a Forms 940, 941, or 943 or 944 FRC (SCTT FRC is not 5) and Employment Code blank, and the following consistency check is not met:

    If BMF Employment Code is: Input FRC Must be: 940, 941/944 943
      940 941/944 943
    T   01, 07, 11, 14  
    I 3, 4 01, 07  
    S 1, 2 or 01, 11, or 1
    W   01, 07, 11, 14 or 1, 7
    M   01, 11  
    G   01,11  
  2. If the entity on the unpostable does not match the entity on the BMF, research for a better EIN. If you cannot find another EIN, proceed as follows:

  3. The following chart list different scenarios that will help resolve UPC 343 RC 2:

    IF AND THEN
    A TC 01X or 030 attempts to post. a. The unpostable transaction is correct and the BMF is in error. 1. Make the necessary corrections to the BMF to allow the unpostable to post.
    2. Correct the unpostable with the appropriate URC and cycle as appropriate.
    b. The unpostable transaction is not correct and should not post. 1. Correct the unpostable with URC 2.
    2. Write VOID on the document and route to the Preparer.

3.13.222.90  (01-01-2014)
Unpostable Code (UPC) 343 Reason Code (RC) 3

  1. The Programming Requirements Package (PRP) for UPC 343 RC 3 states:
    TC 01X attempts to post with no change to the 941 or 944 FRC (SCTT FRC is 5) and Employment Code of "9" and BMF 941 FRC or 944 FRC is "02" .

  2. The following chart lists different scenarios that will help resolve UPC 343 RC 3:

    IF AND THEN
    A TC 01X or 030 attempts to post. a. The unpostable transaction is correct and the BMF is in error. 1. Make the necessary corrections to the BMF to allow the unpostable to post.
    2. Correct with the appropriate URC and cycle as appropriate.
    b. The unpostable transaction is not correct and should not post. 1. Correct with URC 2.
    2. Write VOID on the document and route to the Preparer.

3.13.222.91  (01-01-2014)
Unpostable Code (UPC) 343 Reason Code (RC) 4

  1. The Programming Requirements Package (PRP) for UPC 343 RC 4 states:
    TC 01X/030 attempts to update the Employment Code when the Employment Code is "C" .

  2. The following chart lists different scenarios that will help resolve UPC 343 RC 4:

    IF AND THEN
    A. A TC 01X or 030 attempts to post. The BMF is in error. Correct with URC 0.
    B. A TC 071 attempts to post with a change to the Employment Code other than a W or delete.

    Note:

    These unpostables are assigned to the Entity function by the computer program.

      1. Correct with URC 2.
    2. Write VOID on the document and route to the Preparer.

3.13.222.92  (01-01-2014)
Unpostable Code (UPC) 345 Reason Code (RC) 1

  1. TC 960 (RAF) attempts to post to the entity, and a TC 960 already posted to the entity.

  2. TC 960 (CAF) attempts to post to the tax module, and TC 960 with a different CAF indicator already posted.

  3. Take the necessary action indicated in the following table to resolve the unpostable condition:

    Condition Resolution
    A. Occurs when a (RAF) TC 960 attempts to post to the entity, and a TC 960 already posted to the entity. An example of how to determine if it's a RAF Unit, is as follows: i.e., MFT 00, Tax Period 000000.
    B. Occurs when a (CAF) TC 960 attempts to post to the tax module, and a TC 960 with a different CAF indicator is already posted.
    GUF auto close to originator.

3.13.222.93  (01-01-2014)
Unpostable Codes (UPC) For Exempt Organization Unpostable Resolution

  1. The instructions for the following are found in IRM 3.12.278.

    UPC Condition
    UPC 351 TC 024 subsection 03
    UPC 355 Form 990-PF Part XII Not Completed
    UPC 356 TC 157 Already Posted
    UPC 358 Incompatible EO Status With BMF Status
    UPC 359 TC 020 022
    UPC 363 Schedule A
    UPC 365 TC 591 or 593 to Parent Organization
    UPC 366 No EO subsection
    UPC 366 General Instructions
    UPC 369 TC 01X
    UPC 370 GEN Number-GEN File
    UPC 371 GEN Number-BMF EO with TC 016 Document Code 80 or 81.
    UPC 372 TC 590 GEN File
    UPC 373 EO-TC 016 (Doc Code 80) with Status Code 28 or 29
    UPC 379 EO TC 012 and TC 013 attempts to post and the BMF does not have an EO Section
    UPC 382 EO TC Containing a subsection and no EO Section on BMF
    UPC 383 Exempt Organization Automatically Assigned To Entity

3.13.222.94  (01-01-2014)
Unpostable Code (UPC) 366 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 366 RC 1 states:
    An input transaction attempts to establish a tax module for MFTs 34, 37, 44, 47, 49, 50, or 67 and there is no Exempt Organization subsection present in the entity. Exception: TC 150 for MFT 34 if input return has a Type Organization Code of "3" and/or any module establishing TC input for MFT 34 and 990-T FR Code is 2.

  2. All TC 150 cases are assigned by the GUF to the Entity Control Section. Reassign all of these type cases to the Entity Control Section upon receipt.

  3. Research the BMF to verify that the EIN on the unpostable document belongs to the taxpayer.

  4. If the EIN belongs to the taxpayer and there are no other EINs that belong to the taxpayer, then research EDS to see if the taxpayer has applied for tax exempt status.

  5. The following chart list different scenarios that will help resolve UPC 366 RC 1:

    IF THEN
    A. There is an open case on EDS. 1. Input TC 016 using CC EOCHG to input Doc. Code 80, Definer Code B to establish the EO section on ENTITY and put the tax module in status 42 using current month and year (42YYYYMM).
    2. Close with URC 0 and cycle appropriately.
    B. There is an approved closed case listed on EDS. 1. Input TC 016 using CC EOCHG to input Doc. Code 80, Definer Codes ABC to establish the EO section on ENTITY and then update the EO section with all of the appropriate information listed in the EDS.
    2. Release the unpostable using URC 0 and cycle appropriately.
    C. There is a disapproved closed case on EDS. 1. Correspond with the taxpayer using either a 1224 C or a 3064 C Letter informing them their recent EO status application was not approved and request additional data.
    2. If they respond with a copy of an approved EO Determination Letter then input TC 016 using CC EOCHG, Doc. Code 80, Definer Codes ABC to establish the EO on the ENTITY and enter all of the appropriate data from the taxpayer's Determination Letter.
    3. If the taxpayer responds with a new application then input TC 016 using CC EOCHG, Doc. Code 80, Definer Codes AB to establish the EO section on ENTITY.
    4. Release the unpostable using URC 0 and cycle appropriately.
    D. There is no case on EDS. 1. Input TC 016 using CC EOCHG, Doc. Code 80, Definer Code B to establish the EO section on the ENTITY and put the tax module in Status 42 using the current month and year (42YYYYMM).
    2. Close with URC 0 and cycle appropriately.

  6. If the EIN belongs to the taxpayer, but you find another EIN with an EO section for the taxpayer then:

    1. Route request for TC 011 to EO Entity Control Team.

    2. Request the EIN with EO filing requirements to be retained and release the unpostable using URC 6.

  7. If the EIN does not belong to the taxpayer and you can not find another EIN for the taxpayer then;

    1. Input TC MFT 0 using CC ESIGN to assign a new EIN to the taxpayer.

    2. Input TC 016 Doc. Code 80 to establish the EO section to ENTITY (make sure the proper DELAY CODE is used to allow the TC 016 to post).

    3. Release the unpostable using URC 6 and cycle appropriately.

  8. If the unpostable is for a TC 610 (payment with the tax return) or a TC 670 (subsequent payment) then:

    IF THEN
    A. A Remittance Processing Section (RPS) TC 610 case is unpostable (the tax return should also be unpostable). 1. Research IDRS to locate the TC 150.
    2. If the TC 150 has been resolved then take the necessary action to ensure the RPS TC 610 is posted to the same location as the TC 150.
    3. If the TC 150 has not been resolved then reassign the case to the TC 610 TE so both of them can be resolved together.
    B. The unpostable is a TC 670 with a Form 7004, or other payments. 1. Research IDRS to determine where to post the payment. If you are able to locate the proper MFT 33 tax module to post the payment to then close the unpostable using the appropriate Resolution Code.
    2. If you are unable to locate a MFT 33 tax module then use IDRS CC BMFOL and BMFOLT to determine if there is a different MFT tax module to post the payment to (some examples of different MFTs are MFT 01 for Form 941, MFT 02 For Form 1120 and MFT 10 for Form 940) If you are able to identify an appropriate MFT tax module to post the payment to then use the appropriate Resolution Code to close the unpostable and post the payment.
    3. If you are unable to identify a proper MFT tax module to post the payment to then contact the taxpayer and resolve the unpostable per their instructions.

  9. Federal Tax Deposit Credits.

    IF THEN
    A The unpostable is a MFT 33 for a BMF Form 1120 FRC of 07. 1. The tax return is marked tax exempt then research EDS and update the BMF with the approved EO status using TC 016, Doc. Code 80, Definer Code B.
    2. If the EO application is still pending or there is no data on EDS then input EO status 40.
    3. If the tax return is marked taxable then input subsection 93, status 12 and 990 C FRC.
    B. The unpostable is a BMF Form 1120 with a MFT of 33 and a FRC of 01, 02, 03, 04, 05, 06, 09 or 88. 1. Contact the taxpayer via telephone to determine which type of tax module should the payment be applied to.
    2. Correct the unpostable per the taxpayer's instructions.
    C. Research indicates the payment is addressing the incorrect MFT. Release the unpostable with URC 6 and post to the appropriate MFT tax module.

  10. If the unpostable is for a Form 7004 extension (IDRS shows a TC 460).

    1. Research the BMF for another EIN or ensure the name control, FYM, etc., matches with the Form 7004.

    2. If research does not resolve the unpostable then use CC EOREQ or CC EOCHG to input TC 016, Doc. Code 80, Definer Code B, Status Code 42 Date and Remarks.

      Note:

      STATUS CODE 40 WILL ALLOW THE TAX RETURN TO POST WHEN IT IS RECEIVED FOR PROCESSING. THEREFORE, IF A TC 620 AND A TC 150 FOR THE SAME EIN AND FOR THE SAME TAX PERIOD ARE RECEIVED SIMULTANEOUSLY IN THE EO ENTITY SECTION FOR UNPOSTABLE RESOLUTION, PUT BOTH THE FORM 7004 EXTENSION AND THE TAX RETURN IN STATUS CODE 40.

  11. Verify the box checked on the FTD matches the MFT of the unpostable.

    1. If the box checked is for a MFT other than MFT 33 then release the unpostable using URC 6.

    2. If the correct FTD box is checked then continue processing.

  12. If the unpostable is a MFT 33 and the BMF Form 1120 FRC is a 07, then confirm the taxpayer is a Farmer's Cooperative Association. If necessary, use a telephone to contact the taxpayer.

    IF THEN
    A. Research confirms the taxpayer is a TAXABLE Farmer's Cooperative Association. 1. Input TC 016, Doc. Code 80 with Status Code 12.
    2. Release the unpostable using URC 0 and cycle appropriately.
    B. Research confirms the taxpayer has already applied for or is applying for tax exemption status. 1. Input TC 016, Doc. Code 80 with Status Code 40.
    2. Release the unpostable using URC 0 and cycle appropriately.
    C. Research confirms the taxpayer is not a Farmer's Cooperative Association. 1. Contact the taxpayer.
    2. Determine where the FTD payment should be applied.
    3. Release the unpostable using the appropriate URC to apply the FTD payment correctly.

3.13.222.95  (01-01-2014)
Unpostable Code (UPC) 384 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 384 RC 1 states:
    TC 150 for MFT 15 or MFT 03 with Abstract Number 11 without TC 055 posted. TC 150 for MFT 03 without Abstract Number 11 and TC 055 is posted. Bypass UPC check if Form 8752 TC 150 has condition code F; also, bypass all checks on corrected UPC 384 RC 1.

  2. The approved election is identified by a TC 055 on the entity module. For further information, See UPC 307 Required Tax Year. A TC 150 for MFT 15 (Form 8752) without a posted TC 055.

  3. A TC 057 present in the entity, indicates that a "Y" coded return has posted.

  4. The following chart lists different scenarios that will help resolve UPC 384 RC 1:

    IF the UNP is a Form 8752 or associated payment, and THEN
    A. If the return indicates it is a final return and contains CCC "F" . Close with URC 0.
    B. If the return indicates it is a final return and does not contain CCC "F" . Close with URC 6 with CCC "F" and edit the return with CCC"F" .
    C. The reason for the TC 057 cannot be determined. ESTAB for TC 057 DLN to determine the cause of the TC 057.
    D. The TC 057 was generated by the taxpayer terminating its Section 444 election and the return is final. 1. Re-input the TC 055 (suppress notice with PSC>Z) with the original effective date.
    2. Close with URC 6, with CCC F, and cycle appropriately.
    E. The return is not Final and CCC "F" is present. 1. Re-input TC 055 (suppress notice with PSC>Z) with dummy Form 8716.
    2. Close with URC 8.
    3. Request Rejects to remove CCC "F" .
    F. The return is not final and the TC 057 has posted erroneously. 1. Re-input the TC 055 with dummy Form 8716 (suppress notice with PSC>Z).
    2. Close with URC 0 and cycle appropriately.
    G. The return was input as a Final return and the TC 057 was erroneously input, and the return is determined not to be a Final return. 1. Re-input the TC 055 with dummy Form 8716 (suppress notice with PSC>Z).
    2. Close with URC 8.
    3. Request that Rejects input the return without CCC "F" .
    H. A reversed TC 055 was for 1988 or the document was destroyed.
    1. Determine the cause of the TC 057. ESTAB for the DLN of the TC 057, if necessary (unless it matches the TC 055 DLN.
    2. Re-input a TC 055 with a Dummy Form 8716 (suppress notice with PSC>Z).
    3. Close with URC 0, and cycle appropriately.
    I. The FY cannot be determined. 1. Correspond with the taxpayer using the appropriate letter to determine if they are terminating their Section 444 election.
    2. Suspend the case for 60 days.
    J. The taxpayer indicates the Section 444 election is being terminated and a TC 057 is posted. 1. Re-input TC 055 with dummy Form 8716 (suppress notice with PSC>Z).
    2. Close with URC 6 with a CCC "F" and cycle 2 weeks (The CCC "F" will generate a TC 057.
    K. The election was not to be terminated. 1. Re-input TC 055 with dummy Form 8716 (suppress notice with PSC>Z).
    2. Close with URC 0 and cycle appropriately.
    L. No TC 055 is on the master file. 1. ESTAB for the Form 2553.
    2. If the documents cannot be located, correspond (using the appropriate letter) with the taxpayer and request a copy of the accepted Form 8716.
    3. Suspend the case for 60 days.
    M. The taxpayer replies with an accepted Form 8716, or Notice of Acceptance. 1. Input TC 055 with dummy Form 8716 (suppress notice with PSC>Z).
    2. Close with URC 0 and cycle appropriately.
    N. No reply. 1. Close with URC 8 (Check UPTIN to see if money has unposted)
    2. Request Rejects cancel the DLN and post the money to the Unidentified Remittance File to be refunded.

  5. Use the following table to resolve an Unpostable Form 8752 condition:

    IF the UNP is a Form 8752, and THEN
    The BMF shows FRC 1120-19. 1. Input TC 052 to reverse TC 055 and delete the FRC 8752.
    2. Input a TC 054 with dummy 8716 (suppress notice with PSC>Z) to reinstate the FYM.
    3. Close with URC 8.
    4. Request Rejects to cancel the DLN and transfer payment to Unidentified Remittance File to be refunded.
    5. Send a letter informing the taxpayer that Section 444 of the IRC specifically states that partnerships, S Corporations and Personal Service Corporations (PSC) can elect to have other than a calendar year. Only partnerships and S Corporations are required to make payments as specified in Section 7519. PSCs file with the corporations income tax return using Schedule H (Form 1120), Section 280 H Limitations for a PSC. They are not required to make this payment and a refund will be issued.

3.13.222.96  (01-01-2014)
Unpostable Code (UPC) 398 Reason Code (RC) 1

  1. End of Year Purged Unpostable.

  2. All purged unpostables are sent UPC 398 no checks on any unpostable condition by the BMF, not even Bankruptcy (UPC 322).

  3. Correct these unpostables per the original unpostable code.

3.13.222.97  (01-01-2014)
Unpostable Code (UPC) 429 Reason Code (RC) 1

  1. The Programming Requirements Package for UPC 429 RC 1 states:
    An input transaction attempting to update filing requirements which is inconsistent with current filing requirements per 13.02.

  2. The unpostable is a transaction attempting to change a filing requirement that is inconsistent with current filing requirements. These unpostables are assigned to entity control by the computer.

  3. A TC 01X is attempting to update the filing requirements that are inconsistent with the chart below:

    Unpostable MFT Unpostable Return Incompatible Filing Requirements
    02 (1120)   1041, 1065, 1066
    05 (1041)   1065, 1066, 1120
    06 (1065)   1041, 1066, 1120
    07 (1066)   1041, 1065, 1120
    34 (990-T)   1041, 1065, 1066, 8752, 1120-C, 1041-A, 5227, 706GS (T), 1120 FRC 01, 02, 06, 07, 10, OR 14.
    Type of Organization Code not 3 Form 990-T FRC 0, F990 FRC 1, 2, 4, 6 AND F 990-PF FRC 0)
    Type of Organization Code is 3 990 FRC 1
    Type of Organization Code not 3 990 FRC 2
    Type of Organization Code 3 990 FRC NOT 0
    36 (1041-A)   1120, 1065, 8752, 1120-C, 990-T, 990- PF, 990
    37 (5227)   1120, 1065, 1066, 8752, 1120-C, 990-PF, 990 (FRC NOT 03), 1041, 706GS(T), 5227 FRC 0 (EO ENTITY STATUS NOT 21, 40, 70, 71, 72)
    44 (990-PF)   1065, 1066, 8752, 1120-C, 1041-A, 5227, 1120 (EO ENTITY STATUS NOT 19 OR 22), 990 FRC NOT 3, 1041, 706GS(T), 990-PF FRC 0 (EO ENTITY STATUS NOT 21, 40, 70, 71 OR 72)
    50 (4720)   1065, 1066, 8752, 990 , 1120 FRC 02, 06, 07, 10, 11
    67 (990)   1065, 1066, 8752, 1120-C 1041-A, 5227, 990-PF 1120 FRC 01 (IF F990 FRC NOT 1 OR 2 AND EO subsection NOT 12), OR 02, 06, 07, 10, 11, 14 or 15. 1041. 706GS(T), 990 FRC 0 (IF EO ENTITY STATUS NOT 21, 40, 70, 71 OR 72) 4 OR 6
    77 (706GST)   1120, 1065, 8752, 1066, 1120-C , 990-T , 990 FRC 03 TO 07, 990 FRC 01 OR 02, 990-PF, 1120 FRC 11

    IF AND THEN
    A. TC 01X is attempting to post. a. The Filing Requirements are incompatible. 1. If unposted filing requirement is valid, input TC 016 to remove invalid filing requirements.
    2. Close with URC 0 and cycle accordingly.
    b. If the unpostable is to add a SSN to the BMF return. Close with URC 0.
    B. TC 016 is attempting to post. The doc code is 80 and the employees IDRS number is not listed. Close with URC D.

    1. An input transaction with a Form 990 filing requirement 03 and the BMF has a positive filing requirement or the input has another positive filing requirement.

    2. An input transaction has a Form 1120 filing requirement of 17 or 18 and the BMF 1120 FRC is other than 00 or 01.

    3. An input transaction has Form 1120 filing requirement 04 and the BMF 1120 FRC is other than 00, 01 or 14.

    4. An input transaction has a Form 941 filing requirement 11 and the BMF FRC is other than 0, 3, 51, 1 or 11.

    5. An input transaction has a Form 941 filing requirement 12 and the BMF FRC is other than 0, 3, 51, 4 or 12.

    6. An input transaction has a Form 941 filing requirement 13 and the BMF FRC is other than 0, 3, 51, 6 or 13.

    7. An input transaction has a Form 941 filing requirement 14 and the BMF FRC is other than 0, 3, 51, 7 or 14.

    8. An input transaction has a Form 1120 filing requirement of 6 or 15 and the BMF Form 1120 FRC is other than 0 when there is a TC 060 posted and a TC 061 is not present.

3.13.222.98  (01-01-2014)
Unpostable Code (UPC) 429 Reason Code (RC) 2

  1. The Programming Requirements Package (PRP) for UPC 429 RC 2 states: See 13.02.

    1. TC 01X, 030 is input with sole proprietor SSN and there is a significant FRC on the BMF for Form 1120, 1065, CT-1, 1041, 990, 1120-C, 990-T, 5227 or 990-PF or 706GS(T).

    2. TC 01X, 030 is input with significant FRC for 1120, 1065, CT-1, 1041, 990, 1120-C, 990-T, 5227 or 990-PF or 706GS(T) and sole proprietor SSN is significant on the BMF unless the input sole proprietor SSN is 000000001.

    3. The 053 is input and there is no significant FRC for Form 1120, 1041, 1065, 1066, 1120-C, 990-T, 5227, 990-PF or 990.

  2. TC 01X or 030 with a Sole Proprietor TIN and the BMF has an FRC for Forms 1120, 1065, CT-1, 1041, 990, 1120-C, 990-T, 5227 or 990-PF.

    1. A TC 01X or 030 with a FRC for Forms 1120, 1065, CT , 1041, 1120-C, 990-T, 5227 or 990-PF greater than 0 or 5 and the sole proprietor TIN is significant on the BMF unless the input sole proprietor TIN is 000–00–0001.

  3. The following chart lists different scenarios that will help resolve UPC 429 RC 2:

    IF AND THEN
    A. TC 01X or 030, with a sole proprietor SSN is attempting to post and there is a significant FR on the BMF. a. The FR is valid 1. Close unpostable with URC D.
    2. Input SSN as XREF SSN.
    b. If FR is invalid 1. Input TC 016 to remove the invalid FR.
    2. Close the unpostable with URC 0, and cycle appropriately.
    B. TC 01X or 030 is attempting to establish a significant FR and the account has a sole proprietor SSN. a. Research shows the account is established correctly. Close the unpostable with URC D.
    b. Research shows the account is established incorrectly. 1. Input TC 01X to make necessary corrections, including removing sole proprietor SSN.
    2. Close the unpostable with URC 0, and cycle appropriately.
    C. TC 053 is attempting to post. There is no significant FR. 1. Input the correct filing requirements.
    2. Close with URC 0 and cycle appropriately.

3.13.222.99  (01-01-2014)
Unpostable Code (UPC) 429 Reason Code (RC) 3

  1. The Programming Requirements Package (PRP) for UPC 429 RC 3 states: See 13.02.
    TC 054 or 055 is input and the Form 1065 FRC is other than 1 and the Form 1120 FRC is other than 01, 02 or 19. Bypass on a corrected unpostable transaction.

3.13.222.100  (01-01-2014)
Unpostable Code (UPC) 429 Reason Code (RC) 4

  1. The Programming Requirements Package (PRP) for UPC 429 RC 4 states: See 13.02.
    TC 054 is input and the input FYM does not match the entity FYM, and the Form 1065 FRC is other than 1. Bypass on a corrected unpostable transaction.

  2. If the corrective action to the BMF cannot be determined, process as follows.

    IF a TC 054 is attempting to post, and AND THEN
    A. The input FYM does not match the entity FYM.   1. Input TC 016 to correct the FYM.
    2. Close with URC 0 and cycle appropriately.
    B. The unpostable document has sufficient information to determine the corrective action necessary to the BMF that will allow the unpostable document to post.   Input the appropriate transaction code and close the unpostable with the corrective URC action.
    C. The unpostable is a transaction attempting to change a filing requirement and the filing requirements are inconsistent with the BMF. Corrective action to the BMF cannot be determined. 1. Void with URC 2.
    2. Route the document to the Preparer.
    D. The unpostable is a transaction attempting to change a filing requirement and the filing requirements are inconsistent with the BMF. The Document Code is 63. 1. Void with URC 2.
    2. Route the document to the Preparer.
    E. The unpostable is a transaction attempting to change a filing requirement and the filing requirements are inconsistent with the BMF. The Document Code is 50. 1. Void with URC 2.
    2. Route the document to the Preparer.
    F. The unpostable is a transaction attempting to change a filing requirement and the filing requirements are inconsistent with the BMF. The Document Code is 53. 1. Void with URC 2.
    2. Route the document to the Preparer.
    G. The entities are the same.   Close with URC 0.
    H. The entities are not the same.   Follow procedures for UPC 301/303 and/or 307.
    I. The unpostable is a transaction attempting to change a filing requirement and the filing requirements are inconsistent with the BMF. The Document Code is 80, TC 016 and the employee number is listed. 1. Void with URC 2.
    2. Route the document to the Preparer.
    J. The unpostable is a transaction attempting to change a filing requirement and the filing requirements are inconsistent with the BMF. The Document Code is 80. TC 016 and the employee number is not listed. Close with URC D.

3.13.222.101  (01-01-2014)
Unpostable Code (UPC) 432 Reason Code (RC) 1 Employment Code Mismatch

  1. The Programming Requirements Package (PRP) for UPC 432 RC 1 states:
    A transaction input with an Employment Code other than blank, A, C, F, G, H, I, M, N, Q, S, T, W or 9.

    IF THEN
    A. The unpostable has Document Code 63 or 77. 1. Close with URC 2.
    2. Route to preparer.
    B. The unpostable document is any other document code. Research further to determine the correct employment code, if one is necessary.

3.13.222.102  (01-01-2014)
Unpostable Code (UPC) 490 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 490 RC 1 states: Generally, any input transaction attempting to post with an invalid field.

  2. If TC 971, AC 341, AC 342, or AC 343, then input URC D.

3.13.222.103  (01-01-2014)
Unpostable Code (UPC) 490 Reason Code (RC) 3

  1. The Programming Requirements Package (PRP) for UPC 490 RC 3 states any TC 150 or TC 29X transaction blocked other than 400-439 for MFT 04 with a tax period between 199503 and 199712.

  2. Any MFT 04 transaction addressing a tax module with a tax period later than 199712.

  3. Any MFT 61 transaction attempting to create a tax module for tax period 198707 or subsequent.

  4. Any payment/credit transaction addressing a Form 942 with a Tax Period later than 9412.

  5. Release with URC 6 or 8 as needed.

  6. The following chart lists different scenarios that will help resolve UPC 490 RC 3:

    IF THEN
    A. URC 8. Advise Rejects to "Cancel DLN" Reprocess to correct TIN/Tax Period and apply as TC 670 to MFT 30 tax period 9512.
    B. Entity has located or has assigned a TIN to MFT 02 or 05 tax period 9512 (unless otherwise specified) Edit the document with the correct TIN and tax period as appropriate.
    C. Entity has located or has assigned an EIN. Edit the document with the correct TIN and tax period as appropriate.

3.13.222.104  (01-01-2014)
Unpostable Code (UPC) 495 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 495 RC 1 states: A transaction attempts to update the first print line and the sum of the character counts does not equal the actual length of the new print line.

  2. This unpostable condition indicates a program error in CC BNCHG or CC EOCHG or Form 706 or 709 processing.

  3. The following chart lists different scenarios that will help resolve UPC 495 RC 1:

    IF THEN
    A. The unpostable transaction is a TC 0XX. Void with URC D.
    B. The transaction should be input. Use CC BNCHG or CC EOCHG and input a new transaction.
    C. The unpostable is a TC 150. 1. Correct with URC 8.
    2. Request Rejects to check the name line and input the return.

3.13.222.105  (01-01-2014)
Unpostable Code (UPC) 495 Reason Code (RC) 9

  1. The Programming Requirements Package (PRP) for UPC 495 RC 9 states:
    TC 011/04X attempts to post with a transaction date more than two years prior to the current (23C) date.

  2. The following chart lists different scenarios that will help resolve UPC 495 RC 9:

    IF THEN
    The unpostable transaction is a UPC 495 RC 9. 1. Void the unpostable with URC D.
    2. Destroy the document if received.

3.13.222.106  (01-01-2014)
Form 1128 - Application to Adopt, Change or Retain a Tax Year

  1. A tax year is an annual accounting period for keeping records and reporting income and expenses. Once the tax year is established, the taxpayer continues to use that tax year until permission is granted by IRS to change it. Form 1128 is filed to request a change in tax year. The types of tax periods are:

    • Calendar Year - 12 consecutive months beginning January 1 and ending December 31

    • Fiscal Year - 12 consecutive months ending on the last day of any month except for December

    • 52-53 Week Tax Year - A tax year that ends on the same day of the week every year, e.g., the last Saturday of a given month or the Saturday nearest to the end of the of a given month.

  2. Below are some terms that you may encounter when processing cases regarding a taxpayers tax year:

    • Required Tax Year - The Tax Reform Act of 1986 required Partnerships, Personal Service Corporations (PSCs), Subchapter S corporations and most trusts to file on the same tax year ending as their owner. In most cases this is a December 31 tax year ending.

    • Natural Business Year- Section 4.01(2) of Rev. Proc. 2006-46 allows an entity to use a tax year other then a required tax year. This requires the taxpayer to submit a statement showing separately for each month the gross receipts for the most recent 47 months. An FYM approved under this section can be identified by a TC 054 on the Entity module of an EIN.

    • Ownership Tax Year - Section 5.08 of Rev. Proc. 2006-46 describes the issue of the majority of the owners (shareholders, partners) currently using or currently changing to the tax year of the owner. An FYM under this section can be identified by a TC 054 on the Entity module.

    • Business Purpose - A "Business Purpose" FYM must be approved by Chief Counsel. The taxpayer will submit a Form 2553 or Form 1128 along with a statement describing the relevant facts and circumstances and, if applicable, the gross receipts from sales and services. See IRM 3.13.222.108.10 for additional information. A "Business Purpose" FYM can be identified by a TC 054 on the Entity module.

    • Grandfathered Fiscal Years - This is a fiscal year (other than a tax year that results in a three-month or less deferral period) that a partnership or S corporation received permission to use on or after July 1, 1974, by a letter ruling. These are identified by a TC 054 on the Entity module.

  3. Corporations and other filers are required to attach a copy of Form 1128 to their tax returns when requesting automatic change. Code and Edit forwards the tax return with the attached copy of Form 1128 to Entity. Detach the Form 1128 and process it using the procedures in this subsection. After processing Form 1128, use it as a source document and send the tax return back to Code and Edit with a Form 4227. The Form 4227 must state the Form 1128 was accepted, denied or returned to the taxpayer, and the words "Process Return" or "Let Unpost" .

  4. The following are not examples of an adoption or a change in tax year:

    • Filing of extension (Form 7004)

    • Submitting a Form SS-4 application

    • Payment of Estimated Tax

  5. All taxpayers must complete Page 1, Part I of Form 1128. Depending on the type of entity and the type of the requested change, the taxpayer may also be required to complete the following sections of Form 1128:

    • Part II, Section A. (Automatic Revenue Procedure 2006-45) - TC 053

    • Part II, Section B. (Automatic Revenue Procedure 2006-46) - TC 054

    • Part II, Section C.

    • Part II, Section D.

    • Part III, (Ruling Request)

  6. If during the course of researching IDRS to process Form 1128 it is discovered the taxpayer has been filing on an invalid FYM, IDRS will be updated to reflect the required FYM.

  7. Do not reject the Form 1128 if the FYM on IDRS has been inaccurate or Invalid.

  8. Occasionally, taxpayers will submit Form 1128 without the need to file the form. Return the unnecessary Form 1128 to the taxpayer using the appropriate letter. Below are some scenarios that may be encountered.

    • Form 1128 is requesting an FYM (that may be different that what is on IDRS) and a return has not posted to establish the FYM.

    • A TC 055 (or TC 054 for a PSC) on the account designates a Section 444 election. Taxpayers will mistakenly file a Form 1128 attempting to terminate their Section 444 election. Instead, they should write across the top of their short period return "Terminate Section 444 Election" .

    • A regular corporation simultaneously changing as a PSC and to the required tax year ending (usually December 31).

    • An Estate attempting to adopt a tax year that is the month prior to the date of death.

      Note:

      Any other Form 1128 received for an Estate should be referred to Chief Counsel.

  9. A taxpayer cannot change their FYM within 48 months of a prior change unless:

    • The prior change was to a required tax year,

    • It is a corporation that either was acquired within the preceding 12 months by a new majority shareholder using a different taxable year, or whose majority shareholder changed its taxable year within the preceding 12 months,

    • The change is to a 52-53 week taxable year that ends with reference to the same month, or vice versa,

    • The corporation is a CFC that wants to revoke its one month deferral election.

  10. A taxpayer electing to use a fiscal tax year on Form 1128 cannot adopt a 52-53 week tax year. If Form 1128 requesting such is received, see IRM 3.13.222.106.2 for denial procedures.

3.13.222.106.1  (01-01-2014)
Processing Form 1128 - Processing Location

  1. Form 1128 is processed at the following locations:

    • Taxpayers requesting automatic approval (Form 1128, Section II) are instructed to send Form 1128 to the Cincinnati or Ogden Processing Site.

    • Taxpayers requesting a Ruling (Form 1128, Section III) are instructed to send Form 1128 to Chief Counsel. If a ruling request is received at the Cincinnati or Ogden Processing Site, it should be sent to Chief Counsel for processing. The mailing address for Form 1128 is:
      Internal Revenue Service
      Associate Chief Counsel (Income Tax and Accounting)
      Attn: CC:PA:LPD:DRU
      P.O. Box 7604, Ben Franklin Station
      Washington, DC 20044 - 7604

      Note:

      Forms 1128 sent to Chief Counsel in error are sometimes returned to the taxpayer with a letter advising the filer to send the form to the appropriate campus. Refer to the Timeliness instructions below in 3.13.222.106.2 if this is the case.

    • Exempt Organization requests - these are identified on Form 1128, Part II, Section D, and should be transhipped to the EO Entity Team at the Ogden campus if they are received in another area.

    • Any Form 1128 relating to an Estate will be referred to Chief Counsel. Send the Form 1128 to Chief Counsel. Send Letter 86C to the taxpayer. Input TC 059 with a paragraph selection code "Z" and in the remarks field, input "86C letter sent." If the estate has not filed a return, see IRM 3.13.222.106 .


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