3.17.21  Credit and Account Transfers

Manual Transmittal

September 17, 2013

Purpose

(1) This transmits revised IRM 3.17.21, Accounting and Data Control, Credit and Account Transfers.

Material Changes

(1) Various editorial changes have been made throughout this IRM.

(2) Subsection 3.17.21.5, Preparation of Form 514B for input of TC 400 (BMF) has been removed and the instructions have been incorporated into 3.17.21.6.

(3) Added a paragraph to 3.17.21.5.1 regarding the requirement of restricting penalty and interest for BMF transfers.

(4) IRM subsection 3.17.21.5.2 updated to clarify that account transfers involving MFT 31 can be requested.

(5) IPU 13U0143 - IRM 3.17.21.5.4(5) updated to remove the TC 971 AC 063 exception.

(6) IPU 13U0484 - updated IRM 3.17.21.5.4(5) to add TC 520 to instructions.

(7) Updated the chart under 3.17.21.5.4(6).

(8) Updated 3.17.21.5.4 to include instruction to separate overflow accounts that contain multiple assessments.

(9) IPU 13U0143 issued 01-16-2013 IRM 3.17.21.5.4(9) updated with a reference to the new Exhibit.

(10) IPU 12U1896 updated IRM 3.17.243.6.3(10) to add a note regarding the correct account status being loaded.

(11) IPU 12U1896 updated IRM 3.17.243.6.4 to add additional instructions for the overflow accounts.

(12) IPU 13U0143 - added new Exhibit 3.17.21-5 listing the guidelines for status determinations.

(13) IPU 13U0787 - Exhibit 3.17.21-5 added Open TC 520 load to status 89.

Effect on Other Documents

IRM 3.17.21 dated August 28, 2012 (effective October 1, 2012) is superseded. This IRM also incorporates the following IRM Procedural Updates (IPUs) which were issued November 30, 2012 through April 23, 2013- 12U1896, 13U0143, 13U0484, and 13U0787.

Audience

All Wage and Investment Submission Processing campuses

Effective Date

(10-01-2013)

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

3.17.21.1  (02-01-2011)
Credit and Account Transfers - Introduction and Scope

  1. This section provides instructions for the processing of account adjustments and manual transfers of accounts and credits.

    Note:

    The assessment statute expiration date (ASED) must be imminent (no more than 10 months from the request date) or expired before requesting a Master File (MF) to MF account transfer.

    1. Credit transfers between Non-Master File (NMF) and Master File (MF) accounts and NMF to NMF within the same campus will be accomplished by using either a Form 2424, Account Adjustment Voucher, or Form 3809, Miscellaneous Adjustment Voucher.

    2. Credit transfers from NMF to NMF accounts between campuses will be accomplished by using Form 2158, Credit Transfer Voucher.

    3. For most situations, this manual does not provide instructions for identifying cases that require transfer actions. The decision to initiate the transfer action is made in accordance with other manuals.

  2. The account transfer team receives requests for account adjustments, parent/subsidiary credit applications, reactivation of retention register accounts, and other transfers. Many account adjustments are made directly by other campus functions on IDRS.

    Note:

    Cincinnati Submission Processing Campus (CSPC) processes all credit and account transfers for both Brookhaven and Memphis. All transfers involving NMF are processed in CSPC.

    Note:

    Ogden Submission Processing Campus processes all credit and account transfers for Philadelphia.

    Note:

    Fresno Submission Processing Campus processes all Credit and Account Transfers for Andover.

    Note:

    Kansas City Submission Processing Campus processes all credit and accounting transfers for Atlanta.

3.17.21.1.1  (02-01-2011)
Transfer of MF Accounts (CP 96, CP 296 and CP 396)

  1. To transfer a MF account, a TC 971 with an AC 045 is input on IDRS, creating a TC 400 for zero amount.

  2. The TC 400 will generate a Computer Paragraph (CP) notice with the amount of the account balance. These are input from the generated campus recap into the NMF suspense account, and set up on the NMF Service Center Control File (SCCF) with a dummy Form 813.

    1. Prepare Form 3413 (Transcription List) to transfer account back to the Master File.

    2. Receive CP 96 for Individual Master File (IMF) or CP 296 for Business Master File (BMF) with Form 3413 and Form 813.

    3. Forward Form 3413 and original Form 813 to Batching for processing.

  3. Entries are made from individual Form 813, one at a time, or from Revenue Accounting Control System (RACS) Input Reconciliation Sheet. If individual Form 813 is used for input, the document locator number (DLN) will be entered in "Source DOC ID" for audit trail. Transcribe or stamp journal identification number on documents as required.

3.17.21.1.2  (02-01-2011)
Transfer Between Master file and General Ledger Accounts

  1. Transfers of credits from MF account to a general ledger account, or vice versa. If made on Form 3809 the transfer can be made without having to number the debit or credit going to general ledger account with a separate DLN. These transfers will be entered using either individual Form 813 and documents for general ledger accounts or from the RACS Input Reconciliation Sheet (Form 8166). If individual Form 813 are used for input, the DLN will be entered. If Form 8166 is used for input, use RS number. Transcribe or stamp journal identification number on documents for audit trail purposes as necessary.

3.17.21.1.3  (02-01-2011)
Master File Research

  1. Tax module information may be researched using various Integrated Data Retrieval System (IDRS) and CFOL Command Codes. These include Command Codes TXMOD, MFTRA and ACTRA, as well as the Command Codes INOLE, IMFOL, BMFOL, PMFOL, RTVUE, and BRTVU. See IRM 21.2, Systems and Research Programs, REMRQ maybe be used for NMF accounts at other campuses.

  2. Campus officials and managers must communicate security standards to subordinate employees and establish methods to enforce them. Employees are responsible for taking required precautions in providing security for the documentation, information, and property which they handle in performing official duties.

  3. When using IDRS, only access those tax modules required to accomplish your official duties. All IDRS accesses are recorded for immediate review and to determine the accuracy of an adjustment. Any unauthorized access or browsing of tax modules by employees to satisfy personal curiosity or for fraudulent reasons are prohibited by IRS and are subject to disciplinary actions and/or dismissal from the service.

3.17.21.1.4  (02-01-2011)
IDRS Notice Issuance Criteria

  1. All employees must be aware of IDRS notice issuance criteria. IDRS Command Code STAUP may be input to interrupt routine notice issuance if transfer action cannot be accomplished before the next notice is issued.

  2. The number of cycles delayed must be for a sufficient period to ensure that balance due notices will not be issued prematurely. It may be necessary to extend the previously input STAUP if the transfer procedure is lengthy.

3.17.21.1.5  (02-01-2011)
Record Retention

  1. Credit and account transfers documents with their supporting documentation are to be retained in the campus for five years after the processing year. Local arrangements may be worked out between the Credit and Account Transfers Team and Files. Refer to Document 12990, Records and Information for record destruction information.

3.17.21.2  (02-01-2011)
Credit Transfers Between Campuses

  1. This section includes procedures for the transfer of NMF credits from one campus to another campus and for the transfer of credits or abatements for centrally processed NMF returns where the account was previously-transferred for taxpayer delinquent account (TDA) issuance.

    Note:

    NMF is centralized at Cincinnati Submission Processing Campus.

  2. Instructions are also included for processing the transfer of NMF federal tax deposits (FTD) for Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons. Form 2158 is used to transfer credits which may not be on NMF at the transferred campus to a transferee campus which is the only campus which may process such accounts. These credits include payments received on Form 8288, U.S. Withholding Tax Return, for Disposition by Foreign Persons of U.S. Property Interests.

  3. Form 2158, Credit Transfer Voucher, is prepared for each transfer of a credit or debit between campuses. If you must transfer more than one debit or credit on an account, attach a current transcript of this account and prepare one Form 2158 for each debit or credit.

    Note:

    Only one Form 3245, Posting Voucher - Refund Cancellation or Repayment and Form 2158 will be prepared for Transaction Codes (TC) 841 TC 740 and TC 772. These will no longer be separated.

  4. Exempt Organization (EO) returns are processed by area offices (AO)and the campus jurisdiction is somewhat different from those of other Master Files. Any transfer on an EO type account will be made in accordance with the AO concept. See Document 6209 for a list of the area offices. EO returns are primarily the Form 990 series and Form 1041A, U.S. Information Return Trust Accumulation of Charitable Amounts Form 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of the IRC and Form 5227, Split-Interest Trust Information Return. Individual Master File (IMF) and Business Master File (BMF) transactions are numbered with the campus File location code. NMF will continue to use the AO Code of the area offices.

  5. All Form 5330 are now processed to BMF at Ogden Submission Processing Campus. All Employee Plans Master File (EPMF) payments received at other campuses will be input to BMF and the returns transshipped to Ogden.

  6. Processing of Form 2158 should be expedited at the sending and receiving campuses. This is especially important at the end of the Fiscal year, so that the In-Transit Journal Accounts can be balanced to the proper year.

  7. In September, in order to make balancing between Campuses easier, send Form 2158 with attachments by express mail up through September 15. After September 15, hold Form 2158 at the sending campus until the beginning of October. This will eliminate problems of Form 2158 in transit during year end balancing.

  8. In September, for Form 514B, follow the same instructions as you would for Form 2158.

3.17.21.2.1  (02-01-2011)
Preparation of Form 2158, Credit Transfer Voucher

  1. The lettered paragraphs below (Figure 3.17.21-1) correspond to the letters on the figure.

    Figure 3.17.21-1

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

    1. Enter the name and current address of the taxpayer.

    2. Indicate the reason for the transfer and the Document Locator Number (DLN) of any processed document attached.

      Note:

      Include Trace-ID Number in Remarks section.

    3. Enter Taxpayer Identification Number (TIN).

    4. Enter cross-reference TIN.

    5. Enter TIN-type, if any. (MFT 58 or MFT 78 only.)

    6. Enter the numbers of the sending and receiving Campuses. (See Exhibit 3.17.21-9.)

    7. Enter a serial number from the credit transfer log book.

    8. Enter the journal date (sender's posting date).

    9. Enter the Campus received date of the payment.

    10. Enter RR for Revenue Receipts, and DF for Deposit Fund Transfers. Use DF for Offers-in-Compromise and Seizure of Property.

    11. Enter the tax period (MM/DD/YY).

    12. Enter the MFT code.

    13. Enter the transaction code (TC).

    14. Enter the amount of the credit being transferred. If a debit is being transferred, indicate "debit" above the money amount. If an abatement is being transferred, indicate "ABA."

    15. Enter the name and Team of the manager who will sign the voucher and the signature date. If the initiator and the transfer of the Form 2158 are not the same person, enter the initiator's name or employee number here for subsequent contact, (optional).

    16. Express mail Form 2158 with the documents.

    17. This block is completed by the receiving campus.

  2. Prepare Form 813 in duplicate. If not required by the RACS Team, Form 813 may be omitted per local procedure.

  3. Route Form 2158 to the RACS Team. Journal instructions are included in 3.30.123.5

  4. Form 2158 has a maximum processing cycle of 6 workdays from the date received in Accounting, per IRM 3.30.123, Processing Timeliness, Cycles, Criteria and Critical Dates.

3.17.21.2.2  (05-07-2012)
Losing Campus-NMF Credit Transfers

  1. Losing Campus' technicians will prepare Form 2158 to express mail to Cincinnati Submission Processing Campus appropriately for addition on their local Automated Non-Master File System.

  2. Receive request for NMF credit transfers out which may include the following documentation:

    • Form 813 marked "Out of Region"

    • The original return that has been submitted by the taxpayer, or;

    • Form 3244 for NMF Subsequent Payments

    Prepare Form 2158, Credit Transfer Voucher. Follow instructions in IRM 3.17.21.2. Attach Form 3244 or Return with the NMF DLN.

    Note:

    Only "Current" NMF Transcripts (2 weeks or less) will be accepted by Accounting.

  3. Forward Form 2158 package to the RACS area for journalizing to the "In-Transit" account.

  4. When received back from RACS, attach F-2158 to F-3244 or return and express mail Parts 1 through 3 and backup to CSPC.

    Note:

    When sending items through express mail, the Form 9814, Request for Mail/Shipping Service, must be prepared prior to sending the package to your shipping area.

  5. Keep Part 4 in files to await Part 2 as acknowledgment from CSPC.

  6. When Part 2 is received from CSPC, send it to RACS to remove from the "In-Transit" account.

  7. After journalizing, receive Part 2 from RACS, associate with Part 4, and file Part 2. Part 4 may be destroyed.

    Note:

    Form 2158 and backup documents must be express mailed to CSC as the package will contain Personally Identifiable Information (PII). Acknowledgement of Form 2158 should be express mailed to meet the 14 day acknowledgement time frame.

  8. When the transfer requests are not acknowledged within 14 days from mailing to CSPC contact should be made, via email, to request the acknowledgement. Additional follow-up must be done in 30 days if the acknowledgement copy still hasn't been received. If the second follow-up contact does not result in the Form 2158 acknowledgement, notify management so that a telephone call can be placed to the CSPC Transfer Team if not received in 45 days.

3.17.21.2.3  (05-07-2012)
Receiving campus NMF Credit Transfers

  1. Receive Form 2158, Parts 1 - 3, and supporting documentation from other campuses in the credit and account transfers area. It usually contains an NMF credit transfer, but it may be a debit or abatement, which would be indicated on the form.

    Note:

    Only current NMF transcripts (2 weeks or less) will be accepted by Accounting.

    Note:

    The supporting documentation should include the original tax return that was filed by the taxpayer or the Form 3244.

  2. When the Form 2158 is received with the original return, the form is to be separated from the Form 2158.

  3. Make a copy of the return and send the original return to the Batching operation so that it may be processed.

    Note:

    If the first page of the return shows the total tax and the amount paid, then that is the only page that needs to be copied.

  4. The credit that came in with the return was deposited by the original Receipt and Control operation. The credit will be posted to ANMF using the Form 2158.

  5. Research using the Form 2158 to locate the appropriate NMF account.

  6. If the account is not located on NMF, or there is a discrepancy and it cannot be processed by the receiving campus, confirm and re-transfer on Form 2158.

    Note:

    If credit transfers are received for accruals and you are unsure if the accruals are accurate or not coordinate with NMF. If NMF determines that the accruals need to be zero’ed out than NMF should do that and the Form 2158 would be rejected back stating that; If the accruals are accurate than the Form 2158 should be processed.

  7. If the appropriate account is found and is processable, sort Form s 2158 by area office or campus.

  8. Block and number each group of triplicate forms.

  9. Prepare Form 813 (2 Part) for each Block. (Figure 3.17.21-2)

    Figure 3.17.21-2

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

  10. Route Parts 1 and 2 of Form 813 and Parts 1, 2, and 3 of Form 2158 to the RACS Function for journalization.

    Note:

    Upon receipt in RACS Form 2158 will be journalized within three business days to ensure balancing timeliness.

  11. RACS will keep Part 1 of Form 813 for backup and forward Parts 1 and 2 of Form 2158 to the Credit and Account Transfers Team. RACS will also forward Part 2 of Form 813 and Part 3 of Form 2158 to NMF for posting.

  12. After verification of journalization the manager of the Credit and Account Team will sign Form 2158.

  13. Notate the journal number in the log book.

  14. File Part 1 of the Form 2158 as backup.

  15. Express mail Part 2 of the Form 2158 back to the losing campus as confirmation of receipt.

    Note:

    When sending items back to the sending campus, through express mail, the Form 9814, Request for Mail/Shipping Service, must be prepared prior to sending to the shipping area.

    Note:

    There is a 2 day expedite cycle on Form 2158 from receipt in the Credit and Account Transfer team until the account posts to NMF - See IRM 3.30.123.5.1.

3.17.21.2.3.1  (02-01-2011)
Subsequent NMF Payments

  1. When there is a Form 3244 attached with a TC 670, this is a subsequent payment for an NMF document. The Form 3244 will ride behind the Form 2158 as supporting documentation. The payment will be posted on ANMF using the DLN of the Form 2158.

  2. Prepare Form 813 and number with the same number as Form 2158 above.

  3. Write the Form 3244 DLN on the Form 2158 for reference information in the bottom line of the "To" box.

  4. All documents or forms going to Non-Master File must have proper supporting documentation attached. The following supporting documentation will be accepted:

    1. Current NMF Transcript.

    2. NMF Notice (6335, 4848, 9774, etc.).

    3. CP 213 (5500 payments).

    4. Current NMF screen print.

    5. Correspondence from taxpayer showing an "N" after the TIN or relating to a 5500 account.

    Note:

    An "INOLE" print is NOT acceptable.

3.17.21.2.3.2  (02-01-2011)
Prepaid Penalty Assessment
(Cincinnati Submission Processing Campus (CSPC) Only)

  1. When Form 2158 has a Form 3244 and a 5500 series, non-remit return attached, it is a prepaid penalty assessment.

    1. Use the local Area Office Code.

    2. Use Tax Class 6.

    3. Use Document Code 35.

  2. Enter the same DLN of the copy of Form 3244 attached to the back of the Form 5500 series return.

  3. Forward the return to Code and Edit for EP processing.

  4. Send the 3244 to ANMF for processing.

3.17.21.2.4  (02-01-2011)
Transfer of Non-Master File Federal Tax Deposits (Form 1042-S) to the Cincinnati campus (CSPC)

  1. General Background Form 1042-S, Foreign Persons US Source Income subject to withholding, is centrally filed and processed at Austin Submission Processing Campus (AUSPC). Federal Tax Deposits (FTD) related to this return may be received in any of the 7 submission processing campuses.

3.17.21.2.5  (02-01-2011)
Journal Instructions

  1. Form 2158, Credit Transfer Voucher, is used for transfers of credits between campuses, and for the transfers of NMF FTDs to the CSPC.

  2. Forward Form 2158 and information documents to the RACS Team for input.

  3. Journalization and balancing instructions for receiving NMF FTDs (CSPC only).

    1. Balance tape posting controls to NMF Tape Release List.

    2. Forward Form 2158 to the RACS Team for input.

3.17.21.3  (02-01-2011)
Credit Transfers Using Forms 2424 and Forms 3809

  1. This section includes instructions for preparing and processing paper credit transfers.

3.17.21.3.1  (02-27-2012)
General Explanation of Credit Transfers

  1. Refer also to IRM 2.4.19, IDRS Operations handbook Input of credit transfers, if IDRS terminal input is to be used to effect the transfers. IDRS should be used whenever possible since IDRS transfers will retain cross-reference TIN, MFT, and tax period for microfilm research. In the event the taxpayer's module is not available for IDRS processing, proceed with the following instructions for preparation of the necessary documents.

  2. To prevent BMF and IMF Unpostables (Code 305 for BMF and 198 for IMF) use the bypass indicator if no freeze is necessary. To freeze the account, a TC 570 should be input as a secondary transaction code using the credit freeze code to a TC 650, TC 660, TC 670, and TC 760 if the credit portion of the transfer is directed to a tax module in Master File Status 06 (BMF only), 10 or 12 and a secondary code is valid. If a refund is desired, input TC 571 or TC 572 in a subsequent cycle to release the freeze.

  3. A TC 762, Reversal of Substantiated Credit, should NEVER be input to the IMF to adjust a TC 766 amount when the DLN of the TC 766 contains an "08" Document Code (Rebate amount relative to tax years beginning in 1974). A TC 762 should NEVER be input to the IMF to adjust a TC 760 manually input relative to the rebate program unless it was originally in error or the liability has been adjusted.

  4. All TC 760's manually input relative to the rebate program will reflect a Document Code of "51" , account transfer, but all TC 760's with a Document Code of "51" will not necessarily relate to the rebate program. Research of the transfer-in document file may be necessary to make this determination.

  5. Care should be taken in transferring backup withholding credits which may be identified by Tax Class 5, Doc Code 97. Backup withholding credits should be posted to the entity which will file the Form 1096, Annual Summary and Transmittal of US Information Returns, and the 1099 series information returns.

  6. If any Form 2424 are prepared by the employees in the Accounting operation, they must be reviewed by the manager, or their designee, before being sent through for processing.

  7. The manager, or their designee, must initial the Form 2424, and the history sheet if applicable, to show that the case was reviewed.

    Note:

    The delegation of responsibility for reviewing and approving Form s 2424 may not be delegated below the level of Lead Accounting Technician/Lead Tax Examiner.

3.17.21.3.2  (02-27-2012)
Selection of Credit Transfer Documents

  1. This section is meant to cover a wide range of debit-credit adjustments. Sort debit-credit adjustments as follows:

    • NMF to BMF

    • NMF to IMF

    • NMF to NMF Intra-SC

    • BMF to BMF

    • BMF to IMF

    • BMF to NMF

    • IMF to BMF

    • IMF to IMF

    • IMF to NMF

  2. Form 2424, Account Adjustment Voucher, should be used for transfers from one account to another. It may be used between Master File and Non-Master File. Prepare in two parts (credit and debit) for any of the above situations.

    Note:

    All Forms 2424 that are prepared by the employees in the Accounting operation must be reviewed and approved by the manager, or their designee, prior to being sent through for processing.

  3. Form 3809, Miscellaneous Adjustment Voucher, is used for non-revenue receipt adjustments.

    1. There will also be occasions when this document is prepared as a "one sided" transfer, e.g., to substantiate credit transaction code 760 which cannot be located in campus processing.

    2. When Form 3809 is used to reverse a substantiated credit previously allowed, make a copy of Form 3809. File this copy with the original Form 3809 used to allow the substantiated credit. Indicate why the credit was not found before being substantiated.

  4. In early 1989, the Excess Collection File (XSF) was automated. Form 8758, XSF Addition, is used exclusively for transfers into the 6800 Account, Excess Collections. The Form 8758 are processed in the Excess Collections Unit, and they are the only personnel with capabilities to apply money from the file. See Figure 3.17.21-3 for an example of a completed Form 8758. All entries known to the requestor of Form 8758 must be completed, Excess Collection money is Non-Revenue Receipts that are more than one year old. An exception is: true statue credits which net credit in Revenue Receipts, see IRM 3.17.10.3.2.1.1.

    1. Form 8758 must be used by everyone requesting a transfer into the XSF.

    2. Form 8758 should have documentation attached proving the existence of the credit to be added to the XSF as well as indicating the research performed prior to the transfer request. Incomplete packages will be returned to their requestor.

      Note:

      Refer to IRM 3.17.220., Excess Collections, for any additional information regarding this file.

    Figure 3.17.21-3

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

3.17.21.3.3  (02-27-2012)
Form 2424 (DRT24)

  1. General Explanation of Form 2424 follows.

    1. The Form 2424, Account Adjustment Voucher, is used for transferring money from one account to another.

    2. There are two parts to the Form 2424.

    3. The credit copy is part one. Enter all data for the account to be credited into the lower, unshaded boxes of the credit copy. Enter all data for the account to be debited into the upper, shaded boxes of the credit copy.

    4. On part two, which is the debit portion, data for the account to be credited will appear in shaded boxes and data for the account to be debited will appear in unshaded boxes.

    5. If both boxes apply to the same taxpayer, insert the name control only in the lower box. For NMF, the address is also required.

    6. Enter remarks and explanatory comments in the explanation box so the case can be readily understood without lengthy research during any subsequent reviews, such as for Electronic Federal Tax Payment System (EFTPS) payments and priority codes.

      Note:

      Include Trace-ID Number in Remarks section.

  2. Prepare Form 2424 as follows (Figure 3.17.21-4). Only original Form 2424 will be accepted by Accounting. Any faxed Form 2424 received in Accounting will be rejected back to the requestor.

    Note:

    "Exceptions:" The following two types of accounts will be accepted by accounting if faxed:

    1. Offer-in-Compromise cases: OIC is required to release Federal Tax Liens from the taxpayer accounts when the offer amount is paid in full. To expedite the process and to avoid undue burden to the taxpayer, Accounting has agreed to accept faxed Form 2424 from OIC.
    2. Taxpayer Advocate Service (TAS) cases: TAS cases will be accepted by fax by Accounting to avoid the possibility of a hardship to the taxpayer.

    Figure 3.17.21-4

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

    1. The requestor will not put in the DLN. The entry will be made here when the forms are separated and blocked for input. See IRM 3.17.21.8 for instructions on assignment and control of DLN.

    2. Enter the appropriate Area Office (AO).

    3. For Master File enter the first name line only. For NMF, the address is also required.

    4. Enter SSN, ITIN, IRSN or EIN that is to be debited. For MFT 58 or 78 SSN only, enter the Account Number Prefix "0" . Use a hyphen after the SSN. The DLN of an NMF assessment, as applicable, can be entered in this area. When the adjustment action is to an NMF account on IDRS, enter an "N" after the TIN and the DLN of the NMF assessment in the "Remarks" box.

    5. Insert the appropriate MFT codes. Do not enter NMF cross-reference MFT.

    6. Insert the tax period to be debited by using the six digit YYYYMM format.

      Example:

      For tax period ending March 1980, enter 198003. Use the beginning date of tax period for Form 11-C, Occupational Tax and Registration Return for Wagering ,Form 2290, Heavy Highway Vehicle Use Tax Return and for Form 706, U.S. Estate Tax Return and Form 706NA, U.S. Estate (and Generation-Skipping Transfer) Tax Return use "000000" as the tax period. Use the ending date of tax period for all other returns.

    7. Enter the transaction date by using the 8-digit MMDDYYYY format. This should be the date of the original transaction that is now being reversed, transferred, adjusted, or corrected. Generally, this date (and the date of the transaction being reversed) may not be earlier than the beginning of the related Tax Period, or later than the date of input to the computer. To avoid the accrual of interest on late-filed returns, the transaction date is the received date or correspondence received date for the credit, rather than the due date. Transaction codes 650, 651, 660 or 661 on Doc Code 24, however, may carry dates earlier than the start of the Tax Period. The debit-portion and credit-portion Transaction Dates are usually the same. Be sure to use the correct date so that interest is computed correctly.

    8. Insert the appropriate debit transaction code. It must be valid for document code 24.

    9. Insert the money amount that is being transferred. These are pre-journalized amounts.

    10. The Secondary TC is normally used to code the credit account to assess collection costs (TC 360) or to freeze credits (TC 570) until a related assessment is made.

    11. The Secondary amount is a non-prejournalized amount relating to the second TC, described above. When the second TC is 570, enter "Blank" in the secondary amount box.

    12. The Tertiary (third) TC must be in the debit and credit blocks when this field is used.

    13. The Tertiary Amount is a pre-journalized amount which is related to the Tertiary Code. Both debit and credit entries must be equal.

    14. Insert the taxpayer's name. If NMF, the address also must be included. Underline the name control in brown.

    15. Enter the Social Security Number, Individual Tax Identification Number (ITIN), Adoption Taxpayer Identification Number (ATIN), Internal Revenue Service Number (IRSN), or Employee Identification Number (EIN) that is to be credited.

    16. The Form 813 (2 part) amount should equal the total of the Primary and Tertiary Amounts.

    17. Enter the tax period that is to be credited.

    18. The transaction date should be same as in (g).

    19. Enter appropriate Designated Payment Code.

    20. Enter the appropriate credit TC. It must be valid for Document Code 24.

    21. Enter the same amount as in (i).

    22. Enter remarks and explanatory comments, in the explanation box, such as EFTPS payments and priority codes so that the case can be readily understood without lengthy research during any subsequent review.

    23. Enter the date the form is prepared.

    24. Enter the name, employee number, and telephone number of the individual initiating the document and area of preparation.

      Note:

      All Form 2424 prepared by employees of the Accounting function must be reviewed and approved by the manager. The manager should place their initials in this area to indicate their approval. The manager may delegate the review and approval responsibilities, however, this may not be delegated below the Lead Accounting Technician/Lead Tax Examiner level.

    25. The Spouse Indicator Code must be present with TC 892 when two names are present on the IMF account.

    26. The Bypass Indicator is currently used only to bypass Unpostable Codes 198 and 305.

  3. Scan the document to ensure accuracy of items such as tax period, tax class, transaction code, and transaction date. Circle in brown all unshaded NMF X-Reference boxes (debit or credit) so they will not be transcribed by ISRP.

  4. Route Form 2424 to the RACS Team for input.

  5. Send the NMF documents for posting to the NMF Team. Route the Form 813 for removal of the document from the SCCF.

  6. Send the Master File documents to Batching Team.

  7. Input of Command Code ADD24 on IDRS will display DRT24 Format.

    1. This format is used for two-sided credit transfer adjustments. All data initially displayed was stored from TXMOD.

    2. The Command Code includes On-Line Entity (OLE) and validation against the National Account Profiles, (NAP). If the correct entity is not input, the credit transfer will not be completed. Research must be done to find the correct TIN and Name/Name Control. You may use the research Command Code INOLE to view what is on the Master File. You may also use IMFOL/BMFOL to view the transactions posted to the Master File.

  8. Input a TC 570 on the module where the credit is being transferred so that a refund will not be generated or the credit offset to a module with an outstanding balance. The freeze condition will stay on the account until a TC 571 is input or an assessment is input which brings the module to zero balance.

3.17.21.3.4  (02-01-2011)
Form 3809 (DRT48)

  1. A general explanation for Form 3809 follows.

    1. The Form 3809, Miscellaneous Adjustment Voucher, is used for Non-Revenue Receipt credit transfers. The debit portion is shaded on the credit copy, Part One, and the credit portion is shaded on the debit copy, Part Two.

    2. The majority of Form 3809 credit transfers will be one-sided. This means that only one part of the transfer (debit or credit) is being posted to an individual taxpayer's account (Master File or Non-Master File). The other side is posted directly to a General Ledger Account and will be held as a back-up for the account.

    3. Form 3809 will carry either Document Code 48 or 58, depending on the use. See Exhibit 3.17.21-3 for the proper codes.

    Note:

    It should be noted that the Form 3809 has a 6 day processing cycle, therefore, when received it should be processed immediately.

  2. Preparation of Form 3809 (Figure 3.17.21-5). The Form 3809 generally requires the same elements of data as Form 2424. See IRM 3.17.21.8.3.

    Figure 3.17.21-5

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

  3. Input of Command Code ADD48 on IDRS will display DRT48 Format.

    1. This format is used also for two-sided credit transfer adjustments. All data initially displayed has been stored from TXMOD.

    2. The Command Code includes "On-Line Entity" , (OLE), validation against the National Account Profile (NAP). If the correct entity is not input, the credit transfer will not be completed. Research must be done to find the correct TIN and Name/Name Control. You may use the research Command Code INOLE to view what is on the Master File.

3.17.21.3.5  (02-01-2011)
Assignment and Control of DLN

  1. Form s 2424 and Forms 3809 must be transcribed through ISRP in separate blocks. All vouchers should be sub-sorted as follows:

    1. Sort debit portions from credit portions of Form s 3809 and Form S2424.

    2. Sort documents by IMF accounts, BMF accounts, and NMF accounts.

    3. Sort NMF documents by Area Office. The Area Office (AO) code may be entered by the form's requestor in the top-left corner of the document; if it is not, use the taxpayer's address to determine the AO.

    4. Sort the documents by Tax Class.

    5. To prevent a ISRP BOB, do not allow vouchers with the same EIN, Tax Class and Tax Period to be assembled on consecutive sorts. Intersperse these documents with documents having different entities.

3.17.21.3.5.1  (02-01-2011)
Form 813 Preparation

  1. Prepare Form 813, Document Register, for each block of 100 or less documents in each sub-sorted group Figure 3.17.21-2

  2. Enter the MFT of the following in the right corner of the "Date" box on the Form 813.

    Form MFT Code
    1041 05
    1065 06
    5329 29
    8752 15

  3. List, on the Form 813, the amounts from the detail documents. List one or two amounts on each pre-numbered Form 813 line as follows.

    1. If a document contains a Primary and a Secondary amount but not a Tertiary amount, show both amounts (Primary first), but bracket the Secondary amount.

      Example:

      Primary Secondary Serial Number
      100.00 (5.00) 03
      42.25 (5.00) 04
      1870.00 (18.00) 05

  4. If a document contains a Tertiary amount, include that amount in the first amount listed for the document. In the example above, the $100 shown for serial number 03 may have been shown on the document as a $98 Primary amount and a $2 Tertiary amount.

  5. Enter the totals of the listed amounts. Bracket the total of the Secondary amounts. Identify any debit amount total by entering "Dr" to the left of such total.

  6. If there are less than 100 documents listed for the block, show the document count by circling the pre-printed serial number on the line following the last amount listed.

  7. For Form 1041, Form 1065, U.S. Return of Partnership Income and Form 8752, Required Payment or Refund Under Section 7519 accounts, rubber stamp "BMF" at the top of the Form 813 and code the Form 813 with MFT 05, MFT 06, and MFT 15 respectively, in the right side of the date box. For Form 5329 accounts, rubber stamp "IRA" at the top of the Form 813 and code the Form 813 with MFT 29 in the right side of the date box.

3.17.21.3.5.2  (02-01-2011)
Numbering F2424 and Form 3809

  1. Imprint a DLN on each input Form 2424 and Form 3809.

  2. Digits 1 and 2 are the File Location Code (campus for master file and area office (AO) for non-master file.)

  3. Enter the Tax Class in Digit 3 according to type of Master File. Tax class "6" is for Non-Master File.

  4. In Digits 4 and 5 enter the Document Code. Doc. Code "24" is used for Form 2424 and Doc. Code "48" is used for Form 3809, except when the transaction code on Form 3809 is not valid with Doc. Code 48. In this case Doc. Code "58" may be used. (Also, Doc. Code "87" may be used when processing the Non-Master File portion of a split remittance dishonored check.)

  5. In Digits 6 through 8 enter the Julian date. The campus in which IDRS is utilized will use prior Saturday date and if all blocks are exhausted, prior Sunday date is used. When using Doc. Code "24" for a prior year credit transfer, use a Julian date before the current fiscal year October 1 Julian date. This will prevent the transfer from being included in the current year revenue receipts.

  6. Enter the block numbers in digits 9 through 11

    1. For Form 2424 and Form 3809 (BMF and IMF), use the appropriate numbers as shown in Exhibit 3.17.21-3.

    2. For Form 3809 (NMF), the first digit of the block number is the true Tax Class for both Doc. Codes 48 and 58. The second and third digits for Doc. Code 58 are restricted to 00 through 49.

  7. Block Numbers for Form 2424 (NMF Only)
    The first digit of the block number of NMF blocks is the true tax class. This first digit is utilized for subsequent abstracting and reporting purposes. Block as shown in Exhibit 3.17.21-1.

3.17.21.4  (02-01-2011)
Requests for Transfers to Other Campuses

  1. When a request is received for transfer of an old full-paid NMF account to the BMF or IMF for a redefined period, an account may not exist unless there was a subsequent adjustment. These requests are normally initiated by Examination and the request should include a copy of the front of the applicable return to assist in the identification efforts. In these instances, unless an account is located by a search of the Index File, it will be necessary to reconstruct the account from old records, e.g., Form 23E, Assessment List (Obsolete); Form 4340, Certification of Assessments and Payments; Form 813, Document Register; etc. The reconstructed account can then be used in the preparation of the Form 514B, Tax Transfer Schedule.

  2. Form 2650, Taxpayer Delinquent Account (TDA)/Taxpayer Delinquent Investigation (TDI) Transfer, if received from the Area Office, should be attached as back up to transfer document (Figure 3.17.21-6).

    Figure 3.17.21-6

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

  3. The NMF Transcript may be transferred to the receiving campus with a Form 514B attached as a transmittal sheet. Both documents should be numbered as a NMF transfer between campuses.

  4. Occasionally, an NMF account will be identified as belonging to another campus while in "Notice Status" . When this happens, the account can be transferred prior to being placed in TDA (Taxpayer Delinquent Account) status.

    1. Note on the Form 514B for NMF TDAs that the TDA should be issued immediately upon receipt of transfer.

    2. A copy of the account transcript, tax return, and/or Revenue Agent's report, if applicable, should accompany the Form 514B, Credit Transfer Voucher.

    3. If the responsible persons are located in two or more campuses, the CSCO where the case originates will coordinate with the other campus to avoid excess collections and other problems.

  5. If the statutory period for collection will expire less than eight months from the date of the transfer of a balance due account, a Form 2209, Courtesy Investigation, must be attached to the case.

    1. Proof of willingness of the receiving office to receive the account must be attached to the case file.

    2. If the statutory period will expire within six months of the date of the transfer, a Form 900, Tax Collection Waiver, must also be in the file or represented by TC 550 on IDRS or the account.

    3. In cases where there is not enough time, due to the CSED, to send all notices, issue the first and fourth notices.

  6. Form 514B has a maximum processing cycle of 12 workdays, per IRM 3.30.123.6.1, Processing Timeliness, Cycles, Criteria and Critical Dates.

3.17.21.4.1  (02-01-2011)
Preparation of Form 514B

  1. Prepare Form 514B as a transmittal sheet for the NMF transcript.

    1. Number the Form 514B and the transcript with the same DLN.

    2. Enter at least the primary name line on Form 514B.

    3. Enter the original DLN(s).

    4. Enter the 23C Date.

    5. Enter the TIN.

    6. Enter the Tax Period.

    7. Enter the MFT.

    8. Enter the Transfer Date.

    9. Enter the campus being transferred from.

    10. Enter the campus being transferred to.

    11. Enter the Schedule Number.

    12. Enter the balance being transferred.

    13. Enter any special instructions for the receiving campus.

  2. Send the Form 514B and transcript to the RACS Team. They will be returned after journalization.

  3. Sort Form 514B by campus.

  4. Parts five and six of the Form 514B should be stamped with the journal number and date.

  5. Mail Parts one through four of the Form 514B, two copies of the transcript and any other attachments to the receiving Campus.

    1. Part one with copy of transcript is used by the receiving campus to input into their ANMF.

    2. Part two is used as the confirmation copy to be returned by the receiving campus.

    3. Part three is retained in the receiving campus Team for its files.

    4. Part four is the posting document at the receiving campus.

    5. Part five is the posting document at the sending campus.

    6. File part six of the Form 514B in the "In-transit" file.

  6. On all cases prepare Form 3177, Notice of Action for entry on Master File, with TC 131 and route to CSCO on Form 3210 (Figure 3.17.21-7).

    Figure 3.17.21-7

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

  7. Part 2 of Form 514B is returned from the receiving office. Pull part six of the Form 514B out of the file and compare to the part two copy to ensure it is your transfer.

  8. Prepare follow-up letter for transfers not acknowledged in 30 days from the transferee office.

  9. Send the part two confirmed copy of Form 514B to the RACS Team. It will be returned after journalization is completed.

3.17.21.5  (03-27-2012)
Master File Account Transfers-Out

  1. This section provides instructions for the transfer-out of accounts from the IMF or BMF.

  2. Any Form 12810 received in Accounting with less than ten months remaining on the collection statute expiration date (CSED) with a balance due will be sent back to the requestor. Accounting will contact the requestor to advise that the form is being returned due to imminent statute.

    Exception:

    Stolen identity cases are exempted from normal Statute processing. To that end, identity theft cases do not truly have a CSED. Any cases received with the statement “Exception IDT1 - Identity Theft Account” or "Exception IDT3 - Identity Theft Account “ written in the remarks field of the Form 12810 are to be processed.

  3. Requests may include, but are not limited to the following:

    1. Assessment to be moved from one period or TIN to another

    2. Reversal of Erroneous Abatements

    3. Duplicate assessments on Master File for MFT 55

    4. Non-Master File to Master File

    5. Program problems

  4. The following freeze codes may remain on the account when requesting an Account Transfer (TC 400): C-, -C, -E, E-, G-, I-, -I, N-, O-, -R, R-, T-, U-, V-, L-, and W-. The following freeze codes must be resolved before requesting an Account Transfer (TC 400): -Z, -V, -W, -L, and -Y.

    Note:

    The freeze codes above apply to both complete and partial account transfers.

    Exception:

    Identity Theft cases that are being worked by the Appeals Operation will contain -W. These requests will be identified as IDT cases are to be processed.

  5. The major types of transfer requests received include transfers to NMF, or account re-transfers.

  6. If an account is in danger of overflow status (too many transactions on the Master File), a Computer Paragraph (CP) 96 (IMF) or CP 296 (BMF) is generated without the input of a TC 400. This transcript is identified by a block number "999" and the word "Overflow" under the transcript title.

  7. An overflow TC 400 BMF Account can post with a zero, debit, or credit balance. If the BMF tax module on an overflow transfer account has a credit balance, it will post and the following special procedures are to be used. (These procedures were developed because the Service Center Control File (SCCF) does not accept a Doc Code 51 with a credit balance). A computer program change has been added to prevent overflows, so they should be a very rare occurrence.

    1. From the generated CP 296, prepare Form 514B in the usual manner as for a debit module transferred.

    2. Number the Form 514B with a Doc Code 51 for benefit of ANMF.

    3. DO NOT prepare Form 813 for the Form 514B with a Doc Code 51.

    4. In addition to the Form 514B, prepare credit side only of Form 3809 with TC 400 and the amount of the credit transfer. (The Form 3809 is for audit trail and control purposes only.)

    Note:

    If the account is in credit status, you must prepare a Form 3809 in addition to the Form 514B. You will also need to complete the additional steps listed below.

    1. Number the Form 3809 using doc code 58.

    2. Prepare Form 813 for the Form 3809, with doc code 58 and the credit amount being transferred. Annotate the cross-reference doc code 51 DLN on the Form 813.

    3. Send the second copy of the Form 813 to ISRP to establish the doc code 58 DLN and credit amount on NMF SCCF.

    4. Prepare documentation for processing to ANMF.

    5. List the cross reference doc code 51 DLN on the Form 514B.

    6. List the cross reference doc code 58 DLN on the Form 3808.

    7. Attach the Form 3809 on top of the Form 514B.

    8. The Original Form 813 (with doc code 58) is the cover control document for ANMF processing with doc code 51.

    9. Annotate on a folder "Overflow Credit Balance Special" and forward to NMF.

  8. A complete current tax module print (dummy module is not acceptable) including the status history section is required for all transfers. This print should be no more than two weeks old.

  9. Transfer of the following transaction codes requires corresponding reversal codes before performing a TC 400.

    1. TC 576 must have a corresponding TC 577.

    2. TC 608 must have a corresponding TC 609.

    3. TC 896 must have a corresponding TC 897.

    Note:

    Caution must be taken when processing a partial account transfer. Do not process a reversing transaction without the corresponding transaction which it is reversing.

  10. Expedite processing when the case involves an installment agreement. These cases will be marked on top of the transfer document. There are payments that will have to post soon after the transfer, so speed is of the essence.

  11. Expedite processing when the case involves identity theft. These cases will be identified on the Form 3210 with the annotation "ID Theft, please expedite" in the remarks section.

  12. A TC 400 will only post to a "0" or debit module. When TC 400 does post to the Master File, the computer will generate the module balance as the TC 400 amount. The TC 400 is set up to freeze the account with the intention that the account is going to be moved.

  13. The TC 400 amount will be included on the campus recap for post-journalization balancing purposes. The recap lists the number of TC 400 that have posted during the cycle and the total dollar amount.

3.17.21.5.1  (10-01-2013)
Processing Account Transfers to the Master File (IMF/BMF)

  1. Receive Form 12810 (Account Transfer Request Checklist) (Figure 3.17.21-9). The request generally comes from the Adjustment, Collection, or Statute Team, and should indicate complete or partial account transfer. If a partial transfer is requested, a listing of the individual TCs to be transferred should be present. IDRS prints (TXMOD, IMFOL, BMFOL) may be attached to the Form 12810 with the applicable TCs being transferred highlighted.

    Note:

    If a TC 606 is present, advise the originator that the TC 606 and it's corresponding debit will not be transferred. If the TC 606 is transferred, it will permanently close the account.

  2. Verify that the module is in debit or zero balance. If not, reject to the requestor for resolution.

  3. Verify that the TIN and the earliest name line year for the TO Account, where the assessment is to be moved to, is on the Master File. If not, reject to the requestor for input of TC 000 (Entity) or TC 013 (Year).

    Note:

    In an effort to prevent Unpostable cases, when transferring from one tax period to another, for the same taxpayer, ensure that the name control is the same.

  4. For BMF accounts, the penalty and interest must be restricted. This action must be posted to the account before requesting an account transfer. The originators should use TC 270, TC 160 or TC 180 for penalties and TC 340 for interest.

  5. For IMF accounts, use CC REQ77 to input TC 971, with AC 045; For BMF accounts, use CC REQ77 to input a TC 971 with AC 745. This will automatically generate a TC 400 and the CP 96 Notice.

    Note:

    Please use this process, as the TC 400 will post faster than it does for the Form 514B process. (Refer also to IRM 12.4).

  6. Update both modules using CC ACTON as action is taken.

  7. Monitor for CP 96, CP 296, or CP 396 Notice, which will generate upon posting of TC 400.

  8. Prepare Form(s) 3413, Transcription List, using the transactions from the CP as indicated by requestor on Form 12810.

    Note:

    When it is necessary to complete more than one Form 3413, the Form 3413 containing the TC 150 must be processed first.

  9. If the originator has requested to have the TC 402 input, the Form 3413 is to be prepared and submitted at the same time as the Form 3413 for the TC 370.

  10. Number Form 3413 and prepare Form 813, Document Register, in accordance with local procedures.

  11. Prepare Form 4028, if applicable, to remove count and amount from Controlling DLN on NMF SCCF.

  12. Forward Form 813, Form 3413 and Form 4028 to RACS for journalization and processing to ISRP.

  13. Suspend the open case and monitor for posting.

  14. Upon completion of all posting, update and close control bases.

    Figure 3.17.21-8

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

3.17.21.5.2  (10-01-2013)
Processing Account Transfers to the Individual Master File MFT 31

  1. MFT 31 mirror assessment processing is no longer processed using the credit and account transfer procedures - It has been automated to the Individual Master File (IMF). For more information contact the appropriate area Subject Matter Expert (Bankruptcy, Offer in Compromise (OIC), Exam, Appeals, etc.).

  2. If a true account transfer is requested that involves a MFT 31 account, this can be completed. Guidelines and procedures listed in IRM 3.17.21.5 and 3.17.21.5.1 would still need to be followed.

3.17.21.5.3  (06-05-2013)
Transfers to NMF

  1. Receive Form 12810 (Account Transfer Request Checklist) (Figure 3.17.21-9). The request generally comes from the Adjustment, Collection or Statute Team, and should indicate complete or partial account transfer, listing individual TC's to be transferred.

    Note:

    NMF is centralized at the Cincinnati Submission Processing Campus.

  2. Verify that the module is in debit or zero balance. If not, reject to the requestor for resolution.

  3. Before requesting a complete account transfer from MF to NMF via TC 400, the penalty and interest accruals must be posted to the module prior to the transfer. If more than one assessment is still owing (TC 150, 290, 300) the accruals must be split to indicate how much belongs to each account balance, if not reject back to the requestor. The requestor must input and monitor until posted.

    1. Unrestricted accounts - Input TC 290 for zero (.00), priority code 5, hold cold 4. This will cause Master File to force any accruals to post.

    2. Restricted accounts (-I Freeze) - The originator will manually compute and input penalty and interest, if applicable.

      Note:

      Do not transfer a MF account to NMF if the CSED has expired or is imminent. Verify the CSED on IDRS and if necessary, prepare a Form 3177 to be forwarded to NMF.

  4. Since the Automated Non-Master File (ANMF) system allows for only one 23C date per account, it is extremely important to ensure that the correct 23C date is identified for establishment on NMF if the account carries multiple assessments with multiple 23C dates.

    1. As a general rule, the most current 23C date should be used to establish the NMF account.

    2. If the account contains more than one assessment and all but one of the assessments has been satisfied (by at least nine months), use the 23C date of the remaining balance due assessment. If this is the case, the Master File account will not require separate NMF assessments.

    3. When transferring a balance due assessment (Partial) to another campus, notate that other related and satisfied assessments for this account remain on Master File.

    4. The following transaction codes are assessment transactions that will each have their own CSED.
      IMF:150, 290, 294, 298, 300, 304, 308, 240, 160, 166, 170, 176, 320, 350, 340.

      BMF:150, 160, 166, 180, 186, 234, 238, 240, 246, 290, 294, 298, 300, 304, 308, 320, and 340.

    5. If the account contains more than one assessment and more than one of the indicated assessments remain as balance due, prepare a separate CP notice for each balance due assessment. Establish separate NMF accounts for each balance due assessment taking care that the correct 23C date for each separate assessment is used.

    6. Include Abstract Numbers for all transactions transferring to NMF. The ANMF system requires them. They can be obtained from IRM 3.17.46 , Automated Non-Master File Accounting, Exhibit 3.17.46-2.

      Note:

      The CP 96, CP 296, and CP 396 are used in lieu of Form 514B to transfer accounts into ANMF and will be considered the transfer and journal document.

  5. For Bankruptcy Transfers to NMF: Verify that the CSED is included on the request. If the account contains more than one assessment, a CSED must be included for each 23C date. If possible, the account should be sent to MFT 31 instead of ANMF.

    Note:

    Any Form 12810 received in Accounting with less than ten months remaining on the CSED with a balance due will be sent back to the requestor. Accounting will contact the requestor to advise that the form is being returned due to imminent statute.

  6. ANMF cannot be programmed to correctly compute penalty and interest in all instances. Some of the conditions are:

    1. Armed Forces Combat Zone IRC 7508

    2. 120 percent Tax Motivated Transaction

    3. Reversal of Erroneous Abatement TC 860

    4. Unmatched reversal transactions with money.

      Note:

      Caution must be taken when processing a partial account transfer. Do not process a reversing transaction without the corresponding transaction which it is reversing.

    5. If the Form 12810 indicates any of the above, notate on Form 514B, "M" , "Exception Code" Refer to IRM 3.17.46 .

  7. For IMF Accounts, use CC REQ77 to input TC 971, with AC 045; for BMF accounts, use CC REQ77 to input TC 971 with AC 745. This will automatically generate a TC 400 and the CP 96 Notice.

    Note:

    Please use this process, as the TC 400 will post faster than it does for the Form 514B process. (Refer also to IRM 102.4).

  8. Update the Master File module using CC ACTON as action is taken.

  9. Edit CP 96, CP 296, CP 396 (Figure 3.17.21-10) using the information on the Account Transfer-Out Transcript notice and Form 12810. Use appropriate status codes, conversion and reversal transaction codes to edit the CP notice. (Refer to, Exhibit 3.17.21-4, Exhibit 3.17.21-5, Exhibit 3.17.21-6 & Exhibit 3.17.21-7)

    Note:

    A CP 96 that generates for MFT 55 with TC 240, REF-NUM 618 on master file denotes Trust Fund Recovery and must be input to the ANMF system using MFT 17 and Abstract 001.

    Note:

    The correct status must be used when loading the account(s) to NMF. The correct status would be the status that the account was in prior to status 29, unless that status was 60 or 12. If the status prior to status 29 was 60 or 12, then you would use the status prior to that.

  10. Number the CP notice and prepare Form 813, Document Register.

  11. Forward CP notice and Form 813 to RACS for journalization and processing.

  12. Suspend the open case and monitor for posting to ANMF.

  13. Upon completion of all posting, request a NMF transcript, update and close your control base.

3.17.21.5.4  (03-07-2013)
Master File Overflow Accounts

  1. The Master File is not able to accept an unlimited number of transactions on any given account module. When a master file account contains too many lines and the module has moved into overflow status, a transaction code (TC) 400 will systemically post to transfer the account module to Automated Non Master File (ANMF).

  2. After the TC 400 posts to the account , a Computer Paragraph (CP) 96 (IMF) or CP 296 (BMF) is generated automatically without the input of a TC 971 AC 045. This transcript is identified by a block number "999" and the word "Overflow" under the transcript title.

    Note:

    An Overflow TC 400 BMF Account can post with a zero, debit, or credit balance.

  3. The Transfer team will receive the CP 96 or CP 296, prepare a Form 514-B, and access IDRS command code TXMOD and print all pages for the account.

  4. On the CP notice, highlight the name, address, form number, and TIN. Place three lines in the right margin, using the highlighter, for information to be added later.

  5. Review the CP notice to identify all zero (.00) amount transaction codes and line through the transactions, except TC 480, TC 520, TC 530, TC 531, and TC 580.

  6. Not all master file transaction codes can post to ANMF. Using the chart in IRM 3.17.46.5.20.1(4), convert the remaining transaction codes on the CP notice.

    TC ACTION
    186 Change to 180
    187 Change to 181
    190, 196, 336 Change to 340
    191, 197, 337 Change to 341
    238 Change to 234
    239 Change to 235
    246 Change to 240
    276 Change to 270
    277 Change to 271
    286 Change to 280
    294, 298 Change to 290
    295, 299 Change to 291
    304, 308 Change to 300
    305, 309 Change to 301
    370 Do Not Add
    380, 386 Change to 607
    388 Do Not Add
    389 Do Not Add
    400 Do Not Add
    402 Do Not Add
    420 Do Not Add
    421 Do Not Add
    424 Do Not Add
    534 Do Not Add if zero amount
    If money present, change to 608
    535 If zero amount, Do Not Add
    If money present, change to 609
    537 Change to 531
    570 Do Not Add
    600 Change to 606
    620 Change to 670
    621 Change to 671
    622 Change to 672
    630, 636 Change to 800
    632, 637 Change to 802
    660 Change to 430
    666 Change to 700
    667 Change to 820
    678 Change to 670
    679 Change to 672
    701 Change to 702
    706 Change to 700
    720 Change to 841
    721, 722 Change to 843
    736 Change to 730
    756 Change to 700
    768 Change to 764
    776 Change to 770
    790, 796 Change to 700
    792 Change to 820
    806 Change to 800
    807 Change to 802
    821 Change to 822
    824, 826 Change to 820
    836 Change to 830
    843, 846 Change to 840
    856, 876 Change to 850
    890, 896 Change to 820
    892, 897 Change to 822
    976, 977 Change to 670

    Note:

    When the CP notice contains a TC 608 that has not been reversed by a TC 609, and the amount is less than the assessment, (TC 150, 290, or 300), subtract the amount of the TC 608 from the assessment amount. If the TC 608 is larger than the assessment, do nothing.

  7. Since the Automated Non-Master File (ANMF) system allows for only one 23C date per account, it is extremely important to ensure that the correct 23C date is identified for establishment on NMF if the account carries multiple assessments with multiple 23C dates.

    Note:

    As a general rule, the most current 23C date should be used to establish the NMF account.

  8. The following transaction codes are assessment transactions that will each have their own CSED.
    IMF:150, 290, 294, 298, 300, 304, 308, 240, 160, 166, 170, 176, 320, 350, 340.

    BMF:150, 160, 166, 180, 186, 234, 238, 240, 246, 290, 294, 298, 300, 304, 308, 320, and 340.

  9. If the account contains more than one assessment and there is an unreversed TC 534, the account will need to be split to establish separate NMF accounts.

  10. If the account contains more than one unsatisfied assessment, prepare a separate CP notice for each assessment taking care that the correct 23C date for each separate assessment is used.

    Note:

    The CP 96, CP 296, and CP 396 is used in lieu of Form 514B to transfer accounts into ANMF and will be considered the transfer and journal document.

  11. Edit the entity data as follows.

    • underline the name control

    • write the MFT (20) above the form number

    • and place an N after the TIN

  12. In the right margin, where you've placed the three highlighter lines, write the following information;

    • Overflow from XXX (insert the correct campus symbols)

    • XREF SSN (if there is a cross reference TIN on INOLES, write it in this area

    • DLN of the TC 150, TC 290, or TC 300 that is the 23C

  13. If notices have been issued to the taxpayer, these notice dates must be loaded on ANMF. Write the status and date on the CP notice under the DLN of the 23C. See the chart in Exhibit 3.17.21-5 for further instructions.

    • If the account was/is in status 58, this indicates a fourth notice has been issued. Place this notice date on the CP 96 or CP 296 as, Status 58 - xx/xx/xxxx.

    • If the account was/is in status 22 or 26, this indicates TDA. Place this notice date on the CP 96 or CP 296 as, Status 22/26 (whichever is applicable) - xx/xx/xxxx.

  14. Assign a NMF DLN to Form 514B and the CP Notice.

  15. Verify the CSED has not expired. IDRS research needs to be completed to verify the CSED, prepare a Form 3177 If necessary, to have the correct CSED posted to ANMF.

  16. Prepare Form 813 and forward Part 1 to the RACS Team.

  17. Route CP Notice to the RACS Team and then the NMF Team.

3.17.21.5.5  (02-01-2011)
Account Transfers-In

  1. The Account Transfer-In program is designed to transfer into the Master File a list of all transaction codes, dates, and amounts on a single record.

    1. Each Account Transfer-In will post to the Master File with a primary TC 370, additional debit or credit transaction codes, plus other wage amounts and appropriation, status, and abstract codes.

    2. The TC 370 does not appear on the transfer document but is generated as part of the program with the transfer-in amount. The TC 370 must be entered on Form 813.

  2. Accounts are transferred into the Master File on Form 3413, Transcription List. See the Multimedia Publishing website for the latest revision of Form 3413.

    1. Form 3413 are prepared by the credit and accounts transfer team and represent previously-made assessments. The requestor should be identified on the request for a transfer so that unprocessable transfer requests may be returned.

    2. Reactivations from the Retention Register are covered in detail in IRM 3.17.21.8 These are numbered with document code 52.

    3. Account Transfers on Form 3413 include Business Master File (BMF) transfers, Individual Master File (IMF) transfers, re-transfers and manual assessments. These are numbered with Document Code 51.

  3. All account transfers-in must contain either a debit or a zero balance. If the account is in credit balance, contact the requestor for resolution. A debit must be added before the transfer can be processed.

    1. Contact the requestor to verify that the credit is valid. If the credit is not valid, return to the requestor for resolution.

    2. If the credit balance is valid, the requestor should transfer the excess credit on Form 2424 (or DRT24) or Form 3809 (or DRT48) to the new module. Then transfer the account after the balance has been reduced to zero.

  4. Do not enter any amount of over $99,999,999.99. The Master File limits each amount field to fewer than 11 positions. (IMF Only)

    1. Form 3413 may be modified by splitting any amount other than the Transfer-In amount and creating one or more new transactions.

    2. If the Original assessment Transaction Amount is too large, split the amount and enter the balance in the first available field(s) in sections 0219, using TC 290 in place of TC 150.

    3. If the Transfer-In Amount is too large, prepare an additional Form 3413 and split the transactions so that the amounts will not be over $99,999,999.99.

      Note:

      If the sum of all the transactions exceed $99,999,999.99 then process through Non-Master File at the Cincinnati Submission Processing Campus.

3.17.21.5.6  (02-01-2011)
Account Re-transfers

  1. The following types of cases require re-transfer action:

    1. A master file account is posted to an incorrect TIN or tax period, creating a no-merge Martinsburg Computing Center (MCC) transcript on a statute account that cannot be abated and reprocessed or reassessed.

    2. A Form 3552(C) assessment must be transferred.

    3. An NMF account previously on the Master File must be transferred back to IMF or BMF.

    4. An assessment needing transfer so a 23C date can be maintained, since the assessment Statute Period has expired. This kind of transfer, to be legal, must be made to the same taxpayer and account.

    5. A request to transfer only specific transactions from one module to another, without the transfer-out module remaining closed with a TC 400.

    6. The merge of an invalid to a valid TIN may require the creation of a temporary TIN.

    7. A transfer from one Master File TIN to another Master File TIN may require reversing the TC 400 and all the transactions.

  2. Do not re-transfer an account if any of the following conditions are present:

    1. If the 23C date does not have to be maintained and is within the statute assessment date, return to the requestor for processing as a normal adjustment.

    2. If there are freezes on the module that must be resolved. See the list of freeze codes allowed to remain on the account in IRM 3.17.21.5(3) .

    3. If there is an AM06W Transcript, the previous TC 400 must be reversed.

    4. If the intent is to circumvent valid statutory restrictions by establishing an assessment on a previously unassessed account.

    5. If the account is in a credit balance.

    6. When the entire account has been transferred to Non-Master File, Do Not re-open Master File with a TC 402 and reverse transactions.

  3. The TC 400 will produce a CP 96 (IMF) or CP 296 (BMF), Account Transfer-Out Transcript Notice.

    Figure 3.17.21-9

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

  4. The CP 96, CP 296, or CP 396 is then used to prepare Form 3413, Transcription List Account Transfer-In, to transfer the account back onto the Master File.

    1. Enter appropriate transactions, dates, and amounts from the CP notice and Form 12810, onto Form 3413 using valid transaction codes for document code 51.

    2. If a TC 150 and a TC 300 with an agreement date is present, show the TC 150 as the last transaction, with zero money, to prevent Unpostables.

    3. Attach copies of the CP 96, CP 296, CP 396 and the Account Transfer Request List (Form 12810) to the Form 3413.

    4. Form 3413 processing should be expedited so that the posting to the proper account is not delayed. Form 3413 should be processed in a 6 day work cycle per IRM 3.30.123.5.1 .

    5. See the remaining sections of IRM 3.17.21.8.2 for detailed instructions on the preparation and control of Form 3413.

  5. The following types of accounts require re-transfer on Form 3413 with TC 402 for the amount of the TC 400:

    1. A NMF account previously on the Master File needing to be transferred back to IMF or BMF with any transaction which posted while the account was in NMF status.

    2. A Master File account transferred to another period or TIN with a TC 400 (including a good return or assessment), to post a TC 402 for the amount of the TC 400, and reverse or abate posted transactions. For a list of reversal transaction codes see Exhibit 3.17.21-4 . This is necessary to open the module for future posting.

  6. For NMF account re-transfers back to the same tax module, TC 402 with the same date and amount as the TC 400 must be entered as the first transaction code (Section 01). Any other transactions which posted to NMF after the TC 400 will be added as secondary transaction codes. Any transaction that posted to Master File before the TC 400 should not be included.

  7. Assign block numbers 850-899 for re-transfers.


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