The purpose of this IRM is to provide instructions and procedures for correcting and resolving Business Master File (BMF) Entity Unpostable cases.

The mission of the ENTITY UNPOSTABLE TEAM (EUT) is to resolve all Entity related problems in a timely manner by providing the taxpayer with the highest degree of Quality Customer Service.

The words "NOTE" , "CAUTION" , "EXAMPLE" , and "EXCEPTION " appear throughout the text as a reminder to be careful when following prescribed Entity procedures for case resolution.

When correcting unpostables, the first thing that must be determined is that the unpostable tax return or document AND the Entity on the Master File are the same. Command Codes (CCs) NAMES, NAMEE, ENMOD, INOLE, NAMEB, and NAMEI are used to make this determination.

Completely review the case to resolve all unpostable conditions to avoid REPEAT Entity unpostable conditions.

Integrated Automation Technologies - IAT

To view tax returns electronically filed on Modernized e-file (MeF), users must first request access to the Employee User Portal (EUP).

The following IRMs are referenced in this IRM to assist in the resolution of Business Master File (BMF) Entity Unpostable Correction Procedures.

An acronym is a word formed from the initial letter or letters of each of the successive parts or major parts of a compound term, such as IDRS for Integrated Data Retrieval System.

Acronyms used in this IRM will be identified and explained in each subsection. After the acronym is identified and explained then only the acronym will be used throughout the rest of the subsection. Some acronyms are used universally throughout the IRS and identifying and explaining these in multiple subsections would be unnecessarily redundant. Some examples of these universal acronyms are IRM, IRC and IDRS.

The following list of acronyms are used throughout this IRM:

Tax returns, tax forms, tax publications and other reference material will be identified in each subsection with their complete number and name and then referred to just using the appropriate number.

The following tax returns, tax forms, tax publications and revenue procedures are referenced in this IRM:

The IRS has numerous designated computer generated letters sent to taxpayers to inform, to request information or to request documents. All IRS letters will be identified by the number and the title in each subsection and then referred to by the number followed by the letter C and then the word Letter, e.g. 319C Letter.

Office of Management and Budget (OMB) Codes are not required when issuing a letter to the taxpayer per 5 CFR 1320.3(h)(6).

The following list are the C Letters used in this IRM:

Before disclosing any tax information, tax examiner must be sure they are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3,Required Taxpayer Authentication. Also, before leaving any messages on a taxpayer's answering machine, review IRM 11.3.2.6.1,Leaving Information on Answering Machines/Voice Mail. Fax procedures contained in IRM 11.3.1.11,Facsimile Transmission of Tax Information, must be reviewed prior to faxing confidential information to the taxpayer.

Before faxing information to the taxpayer, inform the taxpayer that he or she must be at the location of the fax machine at the time the fax is sent.

While faxed information is not sealed and little protection may be guaranteed at the receiving end, certain precautions are to be used to protect confidential tax information. At a minimum, a cover sheet, identifying the person for whom the information is intended and how many pages are being faxed, must be used. This cover sheet should not contain specific confidential information of the taxpayer other than the name and phone number, assuming the fax is directed to the taxpayer. If faxing to an authorized third party, put the name of the third party on the cover sheet, not the taxpayer's name, TIN, or other confidential information. The information should be faxed in an order in which the cover sheet will become the first page covering the faxed tax information.

The following caveat is to be used on all cover sheets. "This communication is intended for the sole use of the individual to whom it is addressed and may contain information that is privileged, confidential, and exempt from disclosure under applicable law. If the reader of this communication is not the intended recipient or the employee or agent for delivering the communication to the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this communication may be strictly prohibited. If you have received this communication in error, please notify the sender immediately by telephone (collect, if necessary), and return the communication to the address above via the United States Postal Service. Thank you."

IRS employees may never send sensitive but unclassified data by electronic mail to taxpayers, their representatives and/or other non-IRS/Treasury parties, even if the other party uses encryption software. Such action would pose a risk to the taxpayer's privacy since it would be possible for a third party to intercept taxpayer information and create an unauthorized disclosure, see IRM 1.10.3,Standards for Using E-mail.

If the taxpayer files an incomplete form, it is only necessary to suspend once for the missing information. For example, taxpayer files a Form 1120S, but no Form 2553 is on file. Send the taxpayer a 3853C Letter informing the taxpayer to send in a completed Form 2553 within the required time frame. Taxpayer responds with Form 2553, but Form 2553 is missing information (refer to IRM 3.13.222.111.1 for completeness), call and request the taxpayer fax the missing information within 7 days. If taxpayer does not reply within 7 days, or no contact can be made with the taxpayer via phone, take the appropriate action to close the unpostable. If Form 2553 is a response to UPC 310 RC 4 and is an incomplete/duplicate Form 2553 refer to IRM 3.13.222.111.10 for returning the Form 2553.

If the taxpayer has marked the "Third Party Designee" or "Paid Preparer Check Box" and has provided a phone number, telephone contact may be made.

If the incomplete document is being used as the source document for correcting an effective date or FYM, do not contact the Taxpayer for a complete document.

When sending a correspondex letter and Receipt and Control was not required to date stamp the return, determine the received date using the following priorities:

Annotate cases "Per call" when missing information is received from telephone contact.

When returning incomplete documents to the taxpayer, all internal documents must be removed from the enclosure and the IRS received dates will be X'd out in blue ink.

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

In preparation for a case being referred to a W&I Division function, the TAS employee is responsible for:

W&I Division is responsible for:

For further information, refer to the W&I SLA online at http://tas.web.irs.gov under the heading "Policy/Procedures/Guidance" .

When contact with the taxpayer has been made and documented, fax signatures are acceptable as part of the return perfection.

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

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

Service officials and managers must communicate security standards contained in IRM 10.2Physical Security Program, to employees and establish methods to enforce them. Employees are responsible for taking required precautions in providing security for the documents, information, and property which they handle in performing official duties.

Employees may access tax accounts using the IDRS only when their official duties require them to do so. Unauthorized accesses to tax accounts, such as accesses made to satisfy personal curiosity or to engage in fraud are prohibited. Employees who make unauthorized accesses to tax accounts are subject to disciplinary action and criminal penalties. All employees are responsible for adhering to the provisions in Section 1203(b)(4) of the Restructuring and Reform Act (RRA) of 1988, which prohibits IRS employees from falsifying or destroying documents. In addition, employees must adhere to the requirements of IRC Section 6103, Confidentiality and Disclosure of Returns and Return Information.

This section contains information on statute dates.

The Assessment Statute Expiration Date (ASED) is identified by General Unpostable Framework (GUF) and must be monitored to assure that statute does not expire.

The ASED Statute is determined as three years after the Return Due Date (RDD) or IRS received date, whichever is later. See Document 6209, IRS Processing Codes and Information , for RDD information.

Example of statute for a timely filed return:

Example of statute for a late filed return:

If the ASED is imminent (two months prior to the ASED) notify the manager or work leader and initiate the necessary action to resolve the case.

See IRM 3.0.273, Administrative Reference Guide, for additional information on Statute Awareness.

Business Master File (BMF)

This section contains information on the Restructuring and Reform Act (RRA) of 1998, Section 3705(a), and provides identification requirements for all IRS employees working tax related matters.

All IRS employees who communicate by telephone, correspondence, or in person with taxpayers or their personal representatives on tax related matters, are required to provide (at a minimum) the following information:

All Correspondence to taxpayers or their personal representatives must contain a contact telephone number where the taxpayer's question(s) can be answered, tax examiner title, last name and provide their IDRS Number, Letter System or unique identification number.

Letters generated by Submission Processing must be approved by Headquarters when they are intended for dissemination to 10 or more persons. These letters are numbered in accordance with IRM 1.17.1 and IRM 1.17.2, Printing and Publication form letters, pattern letters, and pattern paragraphs are prescribed by Headquarters for use in campuses. Do NOT make changes to text format, date of issue (or revision), or physical characteristics of these letters and paragraphs without prior Headquarters approval. In addition, Quick Notes that are computer generated must be forwarded to Headquarters for approval. Submit requests for new letters using Form 1767, Publishing Services Requisition, following procedures outlined in 1.17.1 and 1.17.2. For minor changes or additions to current letters, follow procedures in 3.0.275, Business Results Measures for Submission Processing functions.

Any unpostable return can potentially require a manual refund. Unpostable employees are required to be thoroughly familiar with how to identify when a manual refund is necessary and the actions required to initiate a manual refund.

A manual refund (TC 840) is a refund that is issued in cases which the IRS has determined expedited processing is required to provide the refund to the taxpayer as quickly as possible. A manual refund is not generated through normal Master File processing (TC 846), but is processed manually by the Submission Processing Accounting Function, who schedules and certifies manual refunds.

Manual refunds are requested on either Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund.

Initiators of manual refunds or other management designated employee are responsible for monitoring accounts using CC TXMOD until the TC 840/846 has posted. If necessary, refer to IRM 21.4.4 and IRM 3.17.79 for additional monitoring requirements.

In addition, research http://serp.enterprise.irs.gov/homepage.html for the most current and accurate manual refund Alerts and IRM Procedural Updates (IPUs) on the Servicewide Electronic Research Program (SERP).

Entity Unpostables is only responsible for identifying the need for a manual refund and prioritizing the processing of the case. Please follow chart below for the related return:

There are cases when an input transaction or the unpostable must be cycled to be input at different times.

Transactions post to the Master File (MF) in numeric order except for the following:

The input transaction must be posted before the corrected unpostable can post:

The Master File will sometimes re-sequence transactions. When this happens, it will be identified on IDRS as "RS" if the account is on IDRS.

EXCEPTION: If a TC 610 or the TC 670 and TC 150 attempts to post in the same cycle, the system will not let the TC 150 repeat. Always cycle appropriately to ensure the TC 610 or TC 670 and TC 150 do not unpost as UPC 399-2. The TC 610 or the TC 670 must post before the TC 150.

Unpostable corrections may require a cycle delay, if the normal MF input cycle is before the corrected unpostable cut off cycle.

The processing time frame for all BMF unpostables directly assigned to Entity Unpostable Team (EUT) or reassigned to EUT, is twenty calendar days from receipt of all necessary documents, (which equals 14 workdays.) See IRM 3.30.123,Work Planning and Control, Processing Timeliness: Cycles, Criteria and Critical Dates, for additional information on processing time frames.

To reduce the amount of interest paid by the IRS due to untimely processing of tax returns, the Primary TC PJ Amount or Interest Reduction Overpayment Amount will indicate that a refund is due to the taxpayer.

An "Unpostable Case With Interest Free Period Due to Expire" is an alert to resolve the unpostable as quickly as possible.

The unpostable cases (TC 150) with a refund (the amount is shown with a minus sign) due should be monitored and corrected expeditiously to avoid paying interest with the refund.

The interest free period is 45 days after the Return Due Date (RDD) or Received Date or Return Processable Date, whichever is later.

See IRM 3.12.32,General Unpostables, for additional procedures.

Research entities via Command Codes (CC) NAMEB, ENMOD, and INOLE, with Request Type "U" and use CCs, NAMES, NAMEE, NAMEB, IMFOL, BMFOL and NAMEI, to determine differences in the taxpayer's name, address, filing requirements, Fiscal Year Month (FYM) or employment codes.

If research indicates differences between the MF and the unpostable condition then:

If research DOES NOT provide sufficient information to correct the Unpostable Condition (UPC), then contact the taxpayer.

Always research completely to determine if the TIN agrees with the MF.

If the unpostable TIN is incorrect, correct the unpostable accordingly. Refer to IRM 3.13.222.41 for correct audit trail.

A Nullification Code must be entered to identify the receiving area for the closed unpostables when closing an unpostable with URC 1, 2, or 8.

Nullification listings are printed for each of these areas based on the nullification code used.

Any cases input by Code and Edit area should be given Nullify-Area Code 02 – Accounts Management.

The nullify area codes are entered on Line 2 in positions 6 and 7 on the CC UPRES screen.

If a nullification code is not entered, an error message will be displayed.

A Nullification code is not needed for URC D.

Generally, a taxpayer must request acceptance from the Service prior to changing an established tax year accounting period. The initial return (TC 150) or extension (TC 620 with 460) and estimated payments filed by the taxpayer, will establish the Fiscal Year Month (FYM). Transaction codes 053/054/055 is an indication of a FYM change. An approved tax year end is identified by the following:

Revenue Procedure 2006-46 provides procedures for establishing a tax year other than a required year. (Refer to Form 1128, Application To Adopt, Change, Or Retain A Tax Year and to Form 2553, Election by a Small Business Corporation, processing in IRM 3.13.222.109 and IRM 3.13.222.111 )

IRC Section 444, Election Of Taxable Year Other Than Required Taxable Year, as added by Section 10206 of the Omnibus Budget Reconciliation Act of 1987, allows certain Partnerships, S Corporations and Personal Service Corporations to elect the use of a taxable year that is not a required year. (Refer to IRM 3.13.222.110 for processing the Form 8716, Election To Have a Tax Year Other Than a Required Tax Year).

Certain Exempt Organizations (EO) can change their accounting period under Revenue Procedure 85–58 by filing their tax return, including extensions, on a timely basis. (Refer to IRM 3.13.12,Exempt Organization Account Numbers, for instructions on how to process the Form 1128, Application to Adopt, Change, or Retain a Tax Year).

To resolve an unpostable tax return that is assigned to Entity with a remittance, the money must be applied to a tax module.

If the unposted tax return also has an unposted remittance and it cannot be determine where the payment should be applied;

If there is an incorrectly applied credit/payment on an unpostable tax return that you are working and you can determine where the payment should be applied, prepare Form 3465 and route to Accounts Management, Adjustments Department for the transfer of any credits to the new tax period.

Any corrections to the source document should be circled in purple and all written corrections must also be in purple. Close the unpostable tax return appropriately.

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

These Command Codes are used to research entity and tax data on the Master File.

Each Campus has a Magnetic Tape Coordinator that is responsible for working with the Reporting Agent. Any problems arising with the Reporting Agent should be coordinated to the Magnetic Tape Coordinator.

See IRM 21.3.9,Taxpayer Contacts - Processing Reporting Agents File Authorizations, for specific instructions.

Category criteria for Individual Master File (IMF), Business Master File (BMF), and Employee Plans Master File (EPMF).
GUF Category Code B1 includes the following:

.

In addition to the above conditions, the Unpostable Unit will reassign other cases to Entity Control if the case requires Entity Control resolution. The following are examples:

Generally the Criminal Investigation and Examination Perfection Sections will not reassign cases to the EUT, instead they will coordinate with the EUT to resolve cases.

All records in Category B1 will be directly assigned to the EUT. Any case assigned to the EUT will be closed by them. Any TC 960, 961 or 962 case with a MFT 00 and a Tax Period 0000 will be closed by the Reporting Agent File (RAF) Section.

A Form 4251 (C) Return Charge-Out, is generated for almost every unpostable record in this category. The EUT is the recipient (receiver) for these B1 Form 4251's. The documents for all B1 file requests will be routed directly to the EUT. No automatic transcripts (MCC/MRS) are generated.

All B1 unpostable cases are INDIVIDUAL closures. These cases should be assigned to a specific employee prior to attempting to close the case. Unpostable Resolution Codes (URC) A, B, D, 0 (zero), 1, 2, 5, 6 and 8 are used to resolve Category B1 cases. Refer to IRM 3.12.32,General Unpostables, for additional information.

Criminal Investigation category cases A1 and A2, Statute C1, C2 and C3 category cases and Bankruptcy (Z1) type unpostable records will not be assigned to the EUT. However, if a case with a Category Code other than A1, A2, C1, C2, C3 or Z1 is assigned or reassigned to the EUT and later it is determined to have criminal investigation, statute or bankruptcy issues, then the case will be processed in accordance with the category A1, A2, C1, C2, C9 and Z1 guidelines and procedures in IRM 3.12.32,General Unpostables.

Cases involving credit interest returns may be assigned or reassigned to the EUT. The EUT will process these credit interest issues per IRM 3.13.2BMF Account Numbers, and IRM 3.12.32,General Unpostables , unpostable Interest Reduction Initiative Report guidelines.

The following Table contains GUF Category B2 criteria:

All records in Category B2 will be directly assigned to and closed by the Entity Unpostable Team (EUT). A Form 4251 (C) Return Charge-Out is generated for every unpostable record in this category. The EUT is the recipient (receiver) for these category B2 cases. These requests require expedite processing. The Form 4251 will be routed directly to the Files Section. A photocopy or microfilm copy of the Federal Tax Deposit (FTD) will be sent to the EUT. If the FTD Coupon was processed by the Service Center Recognition Image Processing System (SCRIPS), then the FTD Coupon Book must be requested by CC ESTAB with modifier S. The Files Section or the EUT will route these requests to the FTD Unit in Accounting only if the microfilm copy is illegible. The FTD Unit will route the FTD Coupon directly to the EUT. No automatic transcripts (MCC/MRS) are generated.

All category B2 unpostable cases are INDIVIDUAL closures. These cases should be assigned to a specific employee prior to attempting to close the case. Unpostable Resolution Codes (URC) A, B, D, 0 (zero), 1, 2 and 6 are used to resolve category B2 cases.

Category B2 unpostable cases will be processed per general instructions in IRM 3.12.32,General Unpostables , and IRM 3.12.279,BMF/CAWR/PMF Unpostable Resolution.

The table below provides a list of all EO unpostables processed on the BMF in Category B3.

These unpostable codes are processed in the Ogden Campus.

The table below provides a list of all EPMF unpostables processed in Category B4.

These unpostable codes are processed in the Ogden Campus.

Category B5 Criteria (BMF) - Consists of UPC 310 or UPC 329.

MFT's will be 02, 05, and 06.

This category will age fifteen cycles from original unpostable cycle.

IDRS Command Codes (CC) and definers are used to establish or update the Status Code of an unpostable case. The status code identifies what action has been taken on an unpostable case. The status date indicates when this action was taken.

The following is a list of status codes and their definitions.

The status code and status date will appear on line two of the CC UPDIS screen display following the literal ST.

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

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

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

Never use URC 8 on:

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

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

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

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