3.17.46  Automated Non-Master File Accounting (Cont. 1)

3.17.46.5 
Various NMF Assessments

3.17.46.5.16  (01-01-2011)
Termination Assessments

  1. A termination assessment occurs when a field officer determines that unusual and perhaps illegal means were used to acquire certain goods or cash. Most requests are received by fax and are used to abruptly terminate the taxpayer's tax year. This results in a short period return which is processed as an NMF return. See IRM 3.17.46.4.1.

  2. RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen and include the 23C date on the Form 813.

  3. RACS will forward the Form 813 and the assessment documents to NMF for processing.

  4. NMF will establish the assessment (account) by input through the Original Assessment-Daily screen which will generate Form 6335 (1st notice). Field entries unique to this assessment are as follows:

    1. Input a "Z" in the Notice Type field to produce the Form 6335 and an accelerated TDA.

    2. Input a "J" in the Assessment Type field to indicate a termination assessment.

    3. Input a "4" in the NMF statement field to produce the NMF standard statement.

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. When generated, use the TDA as the source document to establish the account on IDRS and distribute the Form 6335 as follows:

    1. Two copies of the notice will be forwarded to CSCO, via Form 3210, Document Transmittal.

    2. One copy of the notice will be forwarded to the Campus Examination Branch, via Form 3210.

  6. Hold the telephone assessment document until the Form 2644 with the supporting documents is received from the area office. When received, associate with the original telephone document used to make the assessment.

  7. Assessment documents will be forwarded to Returns Files after NMF processing is completed.

3.17.46.5.17  (01-03-2011)
Title 31 Monetary Penalty Assessments

  1. The American Jobs Creation of 2004 provides the IRS with the authority to impose a monetary penalty against any representative that practices before the IRS for certain conduct. Before the 2004 Act, there was only the authority to suspend or disbar a practitioner from practice before the IRS. This monetary penalty is processed under Title 31 U.S.C. 330 and should be a minimal volume.

  2. Title 31 Monetary Penalty case are exclusively handled by the Office of Professional Responsibility (OPR). OPR is also responsible for:

    • Collection activity

    • Interest calculation for assessment

    • Notice issuance

    • ANMF account history section update

  3. OPR will enter into a Settlement Agreement (similar to a closing agreement) with the individual practitioner, firm or entity. Headquarters will transmit the Settlement Agreement to the Cincinnati Submission Processing Campus via memorandum. Use the Settlement Agreement as authority for assessment and a substitute return.

    Note:

    In the situation of an "unagreed" case, a Final Agency Decision will be used in lieu of a Settlement Agreement as the authority for assessment and a substitute return.

  4. The assessment will be made as an Excise Tax using TC 240.

  5. The tax period should always be the year and month that the Director of OPR or his/her designate signed the agreement. For example, January 31, 2011 (date) would be 201101.

    Note:

    Use the date near or next to the Administrative Law Judge's (ALJ) signature in the Final Agency Decision.

  6. Appropriate journalization is necessary to ensure the integrity and balancing of the RRACS and ANMF systems. RACS will pre-journalize the initial assessment for the entire amount to Account 1300 Status 89. RACS will forward the package to ANMF to establish an account through the Load Acct/Transfer screen.

    1. NMF will establish the account in Status 89

    2. Input the phrase "Title 31 Monetary Penalty" into the Cross-Reference field of the entity

    3. Use the date of input as the Claim Adjustment Pending Date

    4. Input "M" in the Exception Code field to prevent generation of notices and update of penalty and interest computation to ANMF

    5. Input TC 470. The transaction date of the TC 470 will be the date of input (same as the Claim Adjustment Pending Date)

      Note:

      ANMF will bypass the systemic reversal of TC 470

    6. Related payments should be posted to the account using the Subsequent Transaction screen

    7. After the account is established, forward the Settlement Agreement or Final Agency Decision to Cycle Control for filing under the DLN assigned

  7. Settlement Agreements or Final Agency Decisions received with full paid or partial remittances will be processed as two documents. The first document (Settlement Agreement or Final Agency Decision) will establish the assessment on the ANMF system, and the second document (Form 3244-A) will post the payment. Monitor the account to ensure the payment posts immediately after the assessment is established to ensure correct billing to the taxpayer by OPR.

  8. The Settlement Agreement or Final Agency Decision (first document) will be numbered as follows:

    1. Tax Class 6

    2. MFT 28

    3. Doc. Code 54

    4. Blocking Series 435-440

    5. Abstract Number 147

    6. Penalty Reference Number (PRN) 779

  9. The Form 3244-A (second document) will be numbered as follows:

    1. Tax Class 6

    2. MFT 28

    3. Doc. Code 27

    4. Blocking Series 435-440

    5. Abstract Number 147

  10. Settlement Agreements or Final Agency Decisions received without payments will be billed by OPR. Payment will be sent to OPR who will then overnight express to the Deposit Unit in Cincinnati.

  11. OPR will calculate the interest and prepare Form 3465 for assessment. OPR will fax or send Form 3465 to the attention of the NMF Manager in the Cincinnati Submission Processing Campus.

3.17.46.5.18  (01-01-2011)
Transferee/Transferor

  1. When the liability of an account is transferred from one TIN (transferor) to another (transferee) this transfer of liability is processed and the account is maintained in NMF. Most requests are received on Form 1296, Assessment Against Transferee or Fiduciary, or Form 2859, from the Examination Division. A "Linked Account" has been added to identify duplicate assessments. See IRM 3.17.46.13.8.

    1. RACS will receive the Form 1296 and Form 2859 with Form 813.

    2. RACS will input the Form 813 information through the Form 813 Block Control screen and forward Form 813 and the documents to NMF for processing.

  2. NMF will establish an account on the ANMF System through the Original Daily Assessment screen.

    1. Input a "Z" into the Notice Type field to generate a TDA together with the Form 6335 (immediate TDA).

    2. Input the Transferor information into the Cross Reference field.

    3. Input the statement "Failure to Pay Penalty does not apply" .

    4. Input a "P" into the Exception Code field to allow systemic -compute of penalty accruals for these accounts.

  3. Once the Form 6335 is generated, NMF will input the account to IDRS using the account transcript as the source document.

  4. Mail Form 6335 to the taxpayer, forward a copy of Form 6335 to the Examination function and to CSCO.

3.17.46.5.19  (01-01-2012)
Trust Fund Recovery Penalties

  1. Any Form 2749 request received for Trust Fund Recovery Penalty assessment, Reference Code 618, with an Employer Identification Number (EIN) will be processed through NMF. Requests received for Trust Fund Recovery Penalty assessments with an SSN are not processed through NMF but are processed as MFT 55 to the IMF Civil Penalty Module through IDRS. A "Linked Account" field has been added to identify Duplicate Assessments. See IRM 3.17.46.13.8.

  2. The Form 2749 for NMF Trust Fund Recovery Penalties are numbered as follows:

    • Tax Class—6

    • Doc. Code—54

    • Blocking series—190–198

    • MFT—17 (Form 941) 19 (Form 943) 45 (Form 720) 12 (Form 1042) 71 (Form CT–1)

    • Abstract number—001

  3. RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen.

  4. NMF will receive the Form 813 and assessment documents from RACS. NMF will establish the assessment (account) by input through the Original Assessment screen which will generate the first notice (Form 6335).

  5. Field entries unique to this assessment are as follows:

    1. Input a "T" in the Notice Type field to produce the Trust Fund Recovery Penalty first notice and accelerate to TDA status.

    2. Determine the type of assessment. The appropriate assessment type will be indicated on Form 2749 and the appropriate codes for the Assessment Type field are below:

    3. Input a "P" for Prompt assessment;

    4. Input a "Q" for Quick assessment;

    5. Input a "R" for Regular assessment;

    6. Input a "1" in the NMF Statement Code field to produce the Trust Fund Recovery Penalty statement on the first notice and to generate Trust Fund Recovery Penalty in the Type of Tax Assessed Description field.

    7. Input the name of the corporation and the CLC assignment codes to the Cross Reference field.

    8. Input the names of the related responsible persons and corporation name in the Cross Reference field. If the corporation name is not present on Form 2749, contact the originating Compliance function.

  6. Distribution for Quick, Prompt and Jeopardy assessments: 2 copies of Form 6335 will be routed to the appropriate Area Office via Form 3210. For all regular assessments mail 2 copies of Form 6335 to the taxpayer. Form 6335 part 3 in both situations will be sent to the originator.

    1. Form 2749, part 1, will be retained as the assessment document. If part 2 is present, send it to the appropriate Area Office, Special Procedures function.

    2. If Form 433A, Collection Information Statement for Individuals, or levy sources are attached to Form 2749, part 1, forward to. Send a photocopy of the related Form 6335 to the originating Area Office to the attention of Chief, Special Procedures function.

  7. Establish the account on IDRS using the generated NMF account transcript as the source document.

  8. Forward part 1 of Form 2749 and Form 813 to Returns Files after NMF monthly balancing is completed.

  9. A Transcript of a Trust Fund Recovery Penalty account will be generated for distribution to BSC (Brookhaven Service Center) or OSC (Ogden Service Center) CSCO each time payments, credits, abatements or other transactions are posted to the account. Determine distribution of transcripts using the chart below.

    CSCO Corporate Entity State

    Brookhaven
    Internal Revenue Service
    1940 Waverly Ave
    Holtsville, NY 11742
    Stop 662B
    CT, DC, DE, GA, KY, MA, MD, ME, NC, NH, NJ, NY, OH, PA, RI, SC, VA, VT, and WV

    Ogden
    Internal Revenue Service
    1973 North Rulon White Blvd
    Ogden, UT 84409
    Stop 5300
    AK, AL, AR, AZ, CA, CO, FL, HI, IA, ID, IL, IN, KS, LA, MI, MN, MO, MS, MT, ND, NE, NM, NV, OK, OR, SD, TN, TX, UT, WA, WI, WY, Guam, Puerto Rico, and Virgin Islands
  10. When Collection requests transfer of an account because of TDA transfer, refer to IRM 3.17.46.9 for establishing NMF TDA accounts on IDRS.

  11. Accelerate Trust Fund Recovery penalty to TDA status immediately.

    1. The NMF TDA IDRS file will accept only the first 4 digits of the TDA/TDI Assignment Code. The TDA should reflect the 4 digit assignment code of the area where the taxpayer lives. When IDRS reflects the account, the 4 digit assignment code will show. Collection will reassign the TDA to its full 8 digit TDA/TDI Assignment Code.

    2. When the account is input to IDRS enter information about other related persons from Form 2749 on the 3rd and 4th name lines of the screen display. Include:

    3. Last name, first initial

    4. TIN

    5. State abbreviation of where the related person resides.

      Note:

      Do not enter TINs or account types into the second name line address field of IDRS-NMFTM.

  12. The responsibility for input of a TC 130 on all Trust Fund Recovery penalty cases lies with the Collection Division. Accounting will not input a TC 130 for these cases.

  13. The responsibility for initiating the approving abatements and refunds on Trust Fund Recovery Penalty accounts lies with the Special Procedures Function (or ) in the area that controls the case.

  14. Occasionally, the Revenue Officer requesting the assessment will know that the assessment will be uncollectible. Form 53, Notice of Currently Not Collectible Status, will be received along with the request for assessment, Form 2749.

    1. Input the assessment through the Original Assessment screen and mail the first notice, Form 6335 to the taxpayer.

    2. Do not establish the account on IDRS.

    3. Forward Form 53, Report of Currently Not Collectable Taxes, to the numbering function for numbering and preparation of Form 813. If signature of originator and/or signature of manager is missing reject to the originator or Area Office.

    4. The numbering function will forward Form 813 and Form 53 to RACS for input to the Form 813 Block Control.

    5. RACS will forward Form 813 and documents to NMF for input of the TC 530 to the account through the Subsequent Transaction screen.

    6. Prepare Form 1725 Routing Slip and notate "pre-assessment 53, no TDA issued" . Attach it to Form 2749. Route a copy of Form 6335 and Form 2749 (parts 2, 3, and 4) to the appropriate Compliance function in the originating Area Office.

    7. Forward part 1 of Form 2749 and Form 813 to Returns Files after NMF monthly balancing is completed.

3.17.46.5.20  (01-14-2014)
Form 514-B Accounts Transferred-In

  1. The Transfer function will prepare Form 514-B from the Master File and prepare Form 813 to process as follows:

    1. Assign a DLN with a doc. code of 51.

    2. Determine the appropriate NMF status and annotate it and the date on the left margin of the Form 514-B. For Status 21 (First Notice), enter 23C date. On Status 20, 56, 58 and 22 (TDA), include the 23C date and all other notice issuance dates.

    3. NMF accounts in status 53, 71 or 89 should not be transferred between campuses.

      Note:

      For historical purposes only. NMF accounts are no longer transferred.

    4. After the correct NMF status is determined, Form 514-B, part 2, can be forwarded to the originating campus.

      Note:

      For historical purposes only. NMF accounts are no longer transferred.

    5. Prepare a Form 1725, Routing Slip, to route the Form 514-B to NMF. Include the NMF status on Form 1725 for easy identification for NMF to load the account onto the system in the correct status.

  2. The NMF function will load the new account onto the ANMF System through the LOAD OLD ACCTS/TRANSFER-IN screen. Enter the Notice Type field as follows:

    1. Prepare for correction—blank.

    2. IMF/BMF Overflow—blank.

    3. Transfer from another center—R.

    4. Reverse erroneous abatements—blank.

    5. Enter the NMF status and dates from the Form 514-B.

    6. Enter the Notice Type explanation in the Cross Reference field (overflow, reverse erroneous abatements, etc.).

    7. Enter the original DLN into the Cross Reference field.

  3. The ANMF system allows for only one 23C date per account. It is extremely important to ensure that the transfer function has picked-up the correct 23C date 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 assessment has been satisfied (by at least nine months), use the 23C date of the remaining balance due assessment. If this is the case, establishing separate accounts is not required.

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

    4. If the account contains more than one assessment and there is a unreversed TC 534 the account will need to be split to establish separate NMF accounts for each assessment taking care that the correct 23C date for each separate assessment is used.

    5. The originator requesting the transfer of a Master File account to NMF should be responsible for determining the correct 23C Date of all assessment transactions, especially those that may suspend the Assessment or Collection Statute Expiration Dates (ASED, CSED).

    6. If errors are detected, request assistance from the NMF Account Specialist in determining the correct CSED. Based on the complexity of the account, it may be necessary to refer the case back to the Credit and Account Transfer technician for immediate resolution in accordance with IRM 3.17.21, Credit and Account Transfer.

    7. If it is determined that the CSED is incorrect, then the originator should prepare Form 3177 or input Transaction Code 550 via IDRS for subsequent posting to the ANMF. Only posted TC 550 transactions on the MF account should be transferred to ANMF.

      Note:

      Effective January 1, 2001, IMF split accounts will post to the Individual Master File to MFT 31. If there is a problem with the CSED, then the originator or Collection function can input the TC 550 via IDRS.

    8. If the account is a transfer from the Master File, ensure that the Transfer function has correctly converted the transaction codes as described in IRM 3.17.46.5.20.1

    9. If the balance due is more than $50.00 prepare Form 3177 Notice of Action for Entry on Master File, with TC 130 and route to the Submission Processing Campus Collection function. The Daily and Weekly NMF Accounts Flagged for Notice/TDA List may be used in lieu of Form 3177.

  4. If the message "Account with this Primary Key already exists on the database" appears at the bottom of the screen during the input of the entity information, research to determine if this account is a true re-transfer-in. In this case, follow the instructions below.

    1. Hand carry the Form 514-B document to the DBA for correction.

    2. The DBA will select the option Restricted Database Changes and input a "dummy" Tax Period to the previously closed account. See IRM 3.17.46.15.5 for instructions.

    3. On the following day, the DBA will verify that the "dummy" Tax Period has posted to the closed account. If the change has not posted to the closed account, it will appear on the Unprocessed Restricted Database Changes list.

    4. Once the Change is verified, the DBA will return the Form 514-B for continued processing through the LOAD OLD ACCOUNTS/TRANSFER-IN screen.

  5. Entry through the LOAD OLD ACCTS/TRANSFER-IN screen will automatically generate an account transcript the next day. These transcripts will be distinguished from the requested transcripts by the "99999–99999" in the employee number field on the transcript. The NMF function will verify the transcripts to the Form 514-B for accuracy of all entries. If there is an error, use the correction screen to correct it.

  6. NMF will forward to RACS:

    1. Form 1725 received from the Transfer function.

    2. Form 514-B parts 2 and 3 (except those prepared for NMF correction).

    3. Form 813 parts 1 and 2.

  7. The RACS function will input the account (pre-journalized) to RACS and annotate the RACS journal number on the Form 1725. Forward the following:

    1. Form 1725 to Transfer function

    2. Form 514-B parts 2 and 3 to Transfer function (except those prepared for NMF correction).

  8. NMF will associate Form 813 part 1 and Form 514-B part 1 and forward to Cycle Control after NMF processing is completed.

3.17.46.5.20.1  (01-01-2015)
Master File Overflow Transfer-In

  1. The Master File was not designed to accept an unlimited number of transaction codes per account module. When a Master File account contains too many "lines" and the module has met overflow status, a transaction code 400 will systemically post to transfer the account module to NMF. The account is then maintained in NMF.

  2. If the account is in overflow status on the Master File, a CP 96 or 396 is also generated. This transcript is identified by a blocking series 999 and the word "Overflow" under the transcript title.

  3. The Transfer function will receive the CP 96 or 396 and prepare the Form 514-B and Form 813 for NMF processing.

    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. Input "1" in the NMF statement code, and cross reference EIN of related corporation.

    Note:

    A CP 96 that generates for MFT 55 with TC 240, REF-NUM 631 on Master file must be input the to ANMF system using MFT 28, PRN 630, and Abstract 189.

  4. NMF will follow normal Transfer-In procedures with the following exceptions:

    1. NMF will establish the account in the status indicated on the Master File account (i.e., If the account carries an unreversed TC 530, the NMF account will be established in status 53).

    2. The Notice Type field of the entity screen will be left blank.

    3. NMF will include all the appropriate transaction codes from the CP Notice when establishing the account.

    4. Verify to ensure that the Transfer function has converted the transaction codes as follows:

    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 (.00) Do Not Add
    534 (with money) Change to 604
    535 (.00) Do Not Add
    535 (with money) Change to 605
    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
    REMIT  

    Note:

    TC 800 should be coded with the due date of the return.

  5. Once established on the ANMF system, routine accounts maintenance will apply.

    1. If the account becomes a credit balance and a credit balance transcript is generated. See IRM 3.17.46.11.4 for procedures.

    2. If the account appears on the system generated Collection Statute Expiration List. See IRM 3.17.46.12.4 for procedures.

  6. Due to programming difficulties on the Master File, accounts that meet overflow criteria and are in a credit balance will also be transferred to NMF.

    1. Since the volume for these types of accounts is expected to be small and they will require special handling, they will be routed to NMF in a Special Handling folder.

    2. The Form 813 will be numbered with a doc. code 58 with a Form 3809 attached. Under the Form 3809 will be a Form 514-B numbered with a doc. code 51. DO NOT input this account with the doc. code 58. Input this account in the normal Transfer-In manner through the Load screen using the Form 514-B with the doc. code 51.

    3. Input the doc. code 58 DLN into the Cross Reference field. See Credit and Account Transfer, IRM 3.17.21 and SC and ECC-MTB Accounting and Data Control, IRM 3.17.30 if more information is needed.

3.17.46.5.21  (01-01-2011)
Form 514-B Accounts Transferred-Out

  1. The Transfer function will prepare Form 3413 and Form 514-B for either Master File or NMF accounts respectively. Attach a current NMF transcript. Number the documents with a 51 doc. code and forward to the RACS function.

  2. The RACS function will establish the transfer onto the ANMF System using the Form 813 Block Control screen and forward the documents to the NMF function.

  3. The NMF function will expeditiously input the TC 400 to the ANMF System through the Subsequent Transaction screen. When the TC 400 posts to the account (the next day):

    1. Associate the RACS Recap with the documents.

    2. Return Form 514-B parts 1 thru 4 and 6, Form 813 part 2 and the case file to the RACS function.

    3. RACS will prepare Form 8166, journal the Form 514-B to the NMF status indicated, annotate the Recap(s) (2 copies) and return 1 copy to NMF.

    4. RETAIN: Form 813 part 1, the NMF transcript, Form 514-B part 5 and the Original RACS Recap.

  4. If the TC 400 goes unpostable because the TC 400 account balance amount does not equal the account balance reflected on the ANMF System, a unpostable code (UPC) 040 transcript will be generated at that time.

    1. Nullify the transaction with reason code 040.

    2. Associate the NMF transcript and the Nullified unpostable list with the entire package and return it to the RACS function.

    3. RACS will return the nullified cases to the Transfer function for correction of the TC 400 amount.

  5. The Transfer function will receive the nullified cases from the RACS function with the account transcript and prepare the corrected Form 514-B and forward it to the RACS function.

  6. The RACS function will re-establish the account with a new DLN using the Form 813 Block Control screen and forward to the NMF function.

  7. An NMF account in status 71 or 89 (TC 520) should not be transferred to Master File. Contact should be made with the responsible function to resolve the status condition prior to the transfer. Only after the account status has been changed to either a notice or TDA status should a TC 400 be input to the account.

  8. The only accounts that are transferred from another campus to Cincinnati Submission Processing Center (CSPC) NMF are either Master File Overflow or Reversal of Erroneous Abatement accounts. In both instances, the Master File account may have to be split into several NMF assessments when moved from the Master File to NMF. Each separate assessment on the Master File module becomes a separate account on NMF.

    1. If one of the balance due accounts from the split meets transfer criteria, research the entire database, including the open and closed file, to locate all the related NMF accounts for that taxpayer and Tax Period Ending.

    2. The balance due account usually will carry the Actual Tax Period Ending and the other related accounts will carry a Dummy Tax Period Ending.

    3. It is essential to transfer all the related accounts so that a complete audit trail of the Master File module can be input to the NMF database at the campus that now has the geographical jurisdiction for that particular taxpayer.

    4. There is no criteria to reject these related types of accounts back to the campus that transferred the account.

3.17.46.5.22  (07-30-2010)
Form 706, Employee Stock Ownership Plans (ESOP) Elections

  1. The Deficit Reduction Act of 1984 made a provision that Employee Stock Ownership Plans (ESOP) may enter into an agreement with an estate which relieves the estate of some or all of the liability for payment of the estate tax. The law is effective for timely filed (including extensions) estate tax returns filed after July 18, 1984.

    Note:

    The Estate Tax has been repealed for 2010. Form 706 ESOP Elections is not required to be filed where the Date of Death (DOD) is January 1, 2010 through December 31, 2010. In addition, payments should not be received for this time period.

  2. The effect of this law is to split an estate tax liability between two unrelated entities: the estate and the ESOP. When an agreement is signed and filed with the IRS the estate is relieved of the estate tax liability in the agreed amount; the ESOP becomes liable for the agreed amount.

  3. Because of the unusual nature of this provision, these assessments must be processed as NMF. The Code and Edit function will identify the returns with these agreements. An estate tax attorney will review the agreements to ensure that they meet the requirements.

  4. If the agreement is valid, the return will be withdrawn from BMF pipeline processing for NMF assessment.

  5. A package of two returns will be created: the estate tax return and the ESOP return. The ESOP return will either be filed by the ESOP separately; or the ESOP return may be created based on the agreements attached to the estate tax return. The package will be routed to the Accounts Management function.

  6. Accounts Management will review the package and determine the amounts to be assessed on both returns. They will forward the package to RACS for assessment of both returns. RACS will prepare a single Form 813 for both returns, input the Form 813 information to the ANMF System using the Form 813 Block Control screen and forward the Form 813 and returns to NMF for processing.

  7. The block of documents will be numbered as follows:

    • Tax Class 6

    • Doc. Code 06

    • Blocking Series 000–399

    • MFT 53 (for each of the two returns)

    • Abstract Number 141

  8. NMF will establish both returns as accounts on the ANMF System through the Original Assessment screen. The ESOP return will have an EIN instead of an SSN. Additional field entries unique to these assessments are as follows:

    1. Input a "T" in the Transcript Indicator field of each account to generate an account transfer transcript for the Estate package only.

    2. For each account, input the corresponding return information into the Cross Reference field.

    3. Standard billing schedule and accounts maintenance will apply.

  9. After journalization, forward the package of both returns and account transcripts to the transfer function. The transfer function will do the following:

    1. Prepare Form 3413, Transcription List, for the estate tax return only. Transfer the estate tax return (SSN) to the BMF using an MFT 52 for the Master File. (See also IRM 3.17.243, Miscellaneous Accounting).

    2. After transfer of the account to BMF route the package containing both returns back to Accounts Management. Notate on the routing document that both assessments have been made and that the estate tax is being transferred to the BMF.

3.17.46.5.23  (07-30-2010)
Form 706 Schedule R-1 for Generation-Skipping Transfer Tax (Direct Skips from a Trust Payment Voucher)

  1. Code Section 2603(a)(2) provides that the Generation-Skipping Transfer (GST) tax imposed on a direct skip from a trust is to be paid by the trustee. Schedule R–1 (Form 706, U.S. Estate Tax Return) serves as a payment voucher for the trustee to remit the GST tax to the Internal Revenue Service.

    Note:

    The Estate Tax has been repealed for 2010. Form 706 Schedule R-1 is not required to be filed where the Date of Death (DOD) is January 1, 2010 through December 31, 2010. In addition, payments should not be received for this time period.

  2. The Schedule R–1 (Form 706) is due to be filed and the tax paid by the trustee nine months after the date of death, but a 2 month extension is automatically granted to file and pay the tax. If the form is filed and tax paid during the 2 month extension period, interest is charged, but no penalties are assessed.

  3. Receipt and Control Branch will forward the schedules to Returns Analysis for code and edit, math verification and computation of penalties and interest.

  4. The schedule will be processed as a 706B return and numbered as follows:

    • Tax Class 6

    • Doc. Code 85

    • Blocking Series 590–599

    • MFT 53

    • Abstract Number 141

  5. Returns Analysis will forward perfected schedules to RACS for input to the Form 813 Block Control screen. RACS will then forward Form 813 and the related documents to NMF for further processing.

  6. NMF will first research IDRS for the DLN of Form 706 for association of the schedule with the return after processing and to input to the Cross Reference field when the account is established.

  7. NMF will then establish an account on the ANMF System through the Original Assessment screen. Input the related Form 706 DLN to the Cross Reference field of the entity screen.

  8. After posting to the database, NMF will forward the related Recap(s) and Form 813 to RACS for journalization of the assessment as outlined in IRM 3.17.63, Redesign Revenue Accounting Control System.

  9. Regular billing schedule and accounts maintenance will apply.

  10. Forward Schedules R–1 to files to be attached to the Form 706 after NMF processing is completed. Send a Form 2275 to Cycle Control to cross reference the Schedule R–1 DLN to the Form 706 DLN.

3.17.46.5.24  (07-30-2010)
Form 706-A, United States Additional Estate Tax Return

  1. Current regulations require that Form 706-A be filed and the tax paid within six months after qualified property ceases to be Section 2032A property.

    Note:

    The Estate Tax has been repealed for 2010. Form 706-A is not required to be filed where the Date of Death (DOD) is January 1, 2010 through December 31, 2010. In addition, payments should not be received for this time period.

  2. Code and Edit will compute interest from the due date of the return to the date of payment on the entire balance due at the rates and periods prescribed in IRM 20.2, Interest. The due date (which is after the date of disposition) of the Form 706-A will appear in the top margin of the return.

  3. RACS will receive the Form 706-A and Form 813 for input through the Form 813 Block Control screen.

  4. The block of documents will be numbered as follows:

    • Tax Class 6

    • Doc. Code 84

    • Blocking Series with remittance: 500–524; without remittance: 590–599

    • Abstract Number 141

    • MFT 53

  5. RACS will forward the Form 813 and the assessment documents to NMF for processing.

  6. NMF will establish the account on the ANMF System through the Original Assessment screen.

  7. Form 706-A should be processed as any normal remit/non-remit NMF return. Standard billing schedule and accounts maintenance will apply.

  8. The assessment documents will be forwarded to Cycle Control after NMF processing is completed.

3.17.46.5.25  (07-30-2010)
Form 706-D, United States Additional Estate Tax Return Under Code Section 2057

  1. Code Section 2057 required Form 706-D, be filed and the tax paid within six months, if the heir disposes, transfers or ceases to control qualified property within ten years after the filing of Form 706 for the decedent. Form 706-D computes the recapture tax due on the qualified property for assessment under the social security number of the receiving heir.

    Note:

    The Estate Tax has been repealed for 2010. Form 706-D is not required to be filed where the Date of Death (DOD) is January 1, 2010 through December 31, 2010. In addition, payments should not be received for this time period.

  2. RACS will receive the Form 706-D and Form 813 for input through the Form 813 Block Control screen.

  3. Documents will be numbered as follows:

    • Tax Class 6

    • Doc. Code 84

    • Blocking series without remittance 650–679; with remittance 680–699

    • Abstract Number: 141

    • MFT 53

  4. RACS will forward the Form 813 and the assessment documents to NMF for processing.

  5. NMF will establish the account on the ANMF system through the Original Assessment screen.

  6. Form 706-D should be processed as any normal remit/non-remit NMF return. Standard billing schedule and accounts maintenance will apply.

  7. The assessment documents will be forwarded to Cycle Control after NMF processing is completed.

3.17.46.5.26  (07-30-2010)
Form 706-QDT, U.S. Estate Tax Return for Qualified Domestic Trusts

  1. Form 706-QDT is based on Code Section 2056(d) and 2056(a) enacted by the Technical and Miscellaneous Revenue Act of 1988 and amended by the Revenue Reconciliation Act of 1989. The Qualified Domestic Trusts (QDT) rules are effective for estates of decedents dying after November 10, 1988.

    Note:

    The Estate Tax has been repealed for 2010. Form 706-QDT is not required to be filed where the Date of Death (DOD) is January 1, 2010 through December 31, 2010. In addition, payments should not be received for this time period.

  2. The trustees or designated filer of a qualified domestic trust (QDT) uses Form 706-QDT to figure and report the estate tax due on certain distributions from the QDT and on the value of the property remaining in the QDT on the date of the surviving spouse's death. A QDT applies only in those situations where a decedent's surviving spouse is not a U.S. citizen.

  3. Form 706-QDT which may have Form 706NA attached are filed and processed in Cincinnati.

    Note:

    Form 706NA without a Form 706-QDT must be processed to BMF.

  4. Form 706-QDT will be numbered as follows:

    • Tax Class 6

    • Doc. Code 85

    • Blocking Series 519–524 with Remit; 590–599 without Remit

    • MFT 53

    • Abstract Number 220

  5. Returns Analysis will code and edit, math verify, and compute penalties and interest due on these returns.

  6. Perfected returns will be forwarded to RACS for input to the Form 813 Block Control screen.

  7. RACS will forward Form 813 and the assessment documents to NMF for processing.

  8. NMF will establish the account on the ANMF system through the Original Assessment screen.

  9. The standard billing schedule and accounts maintenance will apply.

  10. The forms should be forwarded to Cycle Control after the monthly balancing is completed.

3.17.46.5.27  (01-01-2015)
Form 843, Claim for Refund and Request for Abatement

  1. Refund Claims on Form 843 will be received in the Refund function in the Accounting Branch with Form 1331B and Form 3753 or Form 5792 requesting refund processing.

    Note:

    This information is for historical and research purpose only.

    1. The refund will be scheduled using manual refund procedures.

    2. RACS will pre-journal the Form 1331B and forward it and its related Form 813 and Form 843 and a photocopy of Form 3753 or Form 5792 to NMF for establishment of the account.

    3. RACS will input the original Form 3753 or 5792 to the 813 Block Control Screen and forward it and its related Form 813 and photocopy of Form 843 to NMF.

    4. The NMF function will receive Form 813, Form 843 and 1331B and will establish the account through the Load Old Accounts/Transfer-In Screen using TC 766 with doc. code 54. The MFT will be identified by the Form Number entered on 1331B. The abstract number will be determined by the refund issue claimed on the 843 claim.

    5. Form 813 and Form 3753 or Form 5792 will be input to the account through the Subsequent Transaction Screen with a TC 840.

  2. Forward Form 843, Form 1331B and Form 813 to Cycle Control after NMF processing is completed unless Form 3696, Correspondence Action Sheet, or Form 3465, Adjustment Request, is attached. Form 843 Claim with Form 3696 should be forwarded to the Correspondence function. Form 843 Claim with Form 3465 will be forwarded to the Accounts Management function. If both forms are attached to the Claim forward to the Correspondence function. Form 2275, Records Request Charge and Recharge, will be left in the block in lieu of the document.

3.17.46.5.28  (05-17-2013)
Form 1040-NR, U.S. Non-Resident Alien Income Tax Return

  1. These returns are filed to report income received by foreign estates or trusts. Form 1040-NR filed by Non-Resident individuals are processed to Master File. Form 1040-NR filed as Fiduciary Returns are processed to the ANMF system.

    Note:

    Effective March 18, 2010, on tax year 2009 returns and subsequent the Hiring Incentives to Restore Employment (HIRE) Act of 2010 amended IRC 6611(e)(4) changing the credit interest-free period from 45 to 180 days on overpayment refunds related to Chapter Three Withholding (CTW) (IRC 1441 through IRC 1446). The 180 days applies to credits received from Form 1042S, Form 8805, and Form 8288A. If the credit does not apply to the CTW, then the 45-day interest period applies to any refund. If the refund consists of a combination of CTW and Non-CTW then the 45 days applies to the Non-CTW amounts and the 180 days applies to the CTW amounts.

  2. RACS will receive these returns and input Form 813 information through the Form 813 Block Control screen.

  3. The block will be numbered as follows:

    • Tax Class 6

    • Doc. Code 72/73

    • Blocking Series 600–699

    • Abstract 004

    • MFT 20

  4. RACS will forward the Form 813 and the 1040-NR to NMF for processing.

  5. NMF will establish an account on the ANMF System through the Original Assessment screen.

  6. Refunds—Overpayments on returns will be processed on ANMF. Form 3753 Manual Refund Posting Voucher will be prepared as instructed in IRM 21.4.4.4, Preparation of Manual Refund Forms. The refund will be scheduled using manual refund procedures.

  7. Credit Elect—If the return is noted that the credit should be applied to the next tax year, enter in the cross reference field "Credit Elect MMDDYY" (month, day, year) and the amount of the credit elect.

    Note:

    Credit elects should remain on account until the return it is intended for is received.

  8. Balance Due—Standard billing procedures will apply.

  9. Form 3809 will be prepared to post TC 710 (credit elect from prior year).

  10. Documents will be forwarded to Cycle Control after NMF processing is completed.

3.17.46.5.29  (01-01-2011)
Forms 1042 and 1042S FY 84 and Prior - Assessment on Discrepancies

  1. Form 1042 and Form 1042S, Foreign Person's U.S. Source Income Subject to Withholding, will be verified by Adjustment Branch to determine that correct rates were used and the proper amount of taxes were withheld from non-resident aliens. The withholding agent will be liable for any tax that has been under-withheld.

  2. The Adjustment area will prepare a Form 5734, Non-Master File Assessment Voucher, and attach to the original return showing the amount of tax to be assessed against the withholding agent. The Form 5734 and the original return will be forwarded to Accounting for assessment and billing. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. RACS will receive Form 5734 and the original return from Accounts Management and input the Form 813 information into the ANMF System using the Form 813 Control screen. The block of documents will be numbered as follows:

    • Form 1042 Tax Class 1, Doc. Code 25

    • Form 1042S Tax Class 6, Doc. Code 66

    • Blocking series 500–599 for Form 1042 and 000–299 for Form 1042S

    • Abstract number 001

    • MFT 12

  4. RACS will forward Form 813, Form 5734 and the original return to NMF for processing.

  5. NMF will establish an account on the ANMF System through the Original Assessment screen using Form 5734 and the original return.

    1. Transcribe the assessment date and DLN on the label attached to the return.

    2. Input "Underpaid Withholding" and the code section involved in the Cross Reference field.

  6. If a balance due condition exists, the standard NMF billing schedule and accounts maintenance will apply.

    1. Form 6335 will be mailed to the withholding agent and a copy will be forwarded to the originator in Accounts Management.

    2. If the return is "full paid" , request a transcript of the account and forward the transcript to the originator in Accounts Management.

  7. Payments received will be processed as normal NMF payments and a copy of the notice will be used as a supporting document for posting to the NMF account.

  8. Payments secured by revenue officers will be entered on Form 3244, Payment Posting Voucher, which will be used as a supporting document for posting to the NMF account.

  9. Account reviews will be performed systemically; credit balances will generate a credit balance transcript and be resolved as required. See IRM 3.17.46.11.4.

  10. The assessment documents will be forwarded to Cycle Control after NMF processing is completed.

3.17.46.5.30  (01-01-2012)
Form 1065 Partnership Accounts Over 10 Billion Dollars

  1. Form 1065, U.S. Partnership Return of Income, which cannot be processed to Master File because the module balance is $10 billion or greater will be routed to the Accounting Function for processing to NMF. RACS will receive these returns and input Form 813 information through the Form 813, Block Control screen.

  2. Form 1065 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 65

    • Blocking Series: 500–599

    • MFT 35

  3. NMF will establish an account on the ANMF system through the Original Assessment Screen.

  4. Balance Due-Estimated (ES) tax payments of 10 billion dollars or more will be located in the 4610 account. The return should indicate that ES payments have been made. Research the 4610 account and ensure that all payments have been transferred to NMF. Standard billing will apply.

3.17.46.5.31  (01-01-2011)
Form 1120-IC-DISC, Interest Charge Domestic International Sales-Corporation Return

  1. Form 1120-IC-DISC, Interest Charge Domestic International Sales-Corporation Return, is an information return filed by Interest Charge Domestic International Sales Corporations (IC–DISCs) and former DISCs. After the tax year ends the IC–DISC makes a pro rata property distribution to its shareholders and specifies at the time that this is a distribution to meet the qualification requirements. If the IC–DISC makes this distribution after the date Form 1120-IC-DISC is due, an interest charge must be paid to the Internal Revenue Submission Processing Campus where the form was filed. The charge is 4 percent of the distribution times the number of tax years that begin after the tax year to which the distribution relates until the date the IC–DISC makes the distribution. This payment may be identified from a taxpayer's reference to interest charge under regulations section 1.992–3(c)(4).

  2. If there is no tax to be assessed and there is no evidence of a payment with the Form 1120-IC-DISC, prepare an index card through the stand alone Index Card program. Do not establish an account on the database.

  3. All returns with evidence of a payment will be processed as full–Paid Return. If there is evidence of a payment with Form 1120-IC-DISC, RACS will prepare a Form 813. RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen and forward the Form 813 and Form 1120-IC-DISC to NMF for processing.

  4. The block of documents will be numbered as follows:

    • Tax Class 6

    • Doc. Code 20

    • Blocking Series 200–249 with remittance, 250–299 without remittance

    • Abstract number 006

    • MFT 23

  5. If there is evidence of a payment, NMF will establish an account on the ANMF System through the Original Assessment screen.

  6. After processing is complete forward the Form 1120-IC-DISC to the Cycle Control Function.

3.17.46.5.32  (01-01-2011)
Form 2438, Regulated Investment Company Undistributed Capital Gains Tax Return

  1. These returns will be received separately batched in blocks of remittance and non-remittance returns. Form 2438 will be assessed as normal NMF returns but require special handling since Federal Tax Deposits must be transferred from BMF to satisfy the tax liability prior to notice issuance.

  2. RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen.

  3. The block of documents will be numbered with the following:

    • Tax Class 6

    • Doc. Code 86

    • Blocking Series with remittance: 900–919; without remittance: 000

    • Abstract number 006

    • MFT 38

  4. RACS will forward the Form 813 and the assessment documents to NMF for processing.

  5. NMF will establish an account on the ANMF System through the Original Assessment screen.

    1. Input a "4" in the NMF Statement Code filed for the NMF standard statement.

    2. After establishing the account, photocopy the Form 2438 and forward the photocopy to the NMF Accounts Maintenance function.

    3. The Accounts Maintenance function will immediately request a transcript of the taxpayers BMF Form 1120 account through IDRS.

    4. If the FTD credits are located, transfer the credits to the NMF account.

    5. Prepare and number Form 3177 to input the TC 470 to the NMF account to hold notices until the transfer of the FTD credits are completed.

    6. If the credits cannot be found, mail Form 6335 to the taxpayer.

  6. The assessment documents will be forwarded to Cycle Control after NMF processing is completed.

  7. In rare case Exempt Organizations may file Form 990T, Exempt Organization Business Income Tax Return, to claim a refund of taxes paid on their behalf by the Regulated Investment Company. These claims will normally be received by the Accounts Management Branch who would then request an abatement (Form 1331B). See IRM 3.17.46.2.6 to process the overassessment.

3.17.46.5.33  (07-18-2013)
Form 4720A (Form 4720), Return of Certain Excise Taxes on Charities and Other Persons Under Chapter 41 and 42 of the Internal Revenue Code

  1. Form 4720 is used to report the excise taxes on Private Foundations, Public Charities, Self-Dealers, Disqualified Persons, Foundation Managers and Organization Managers for activities which are not in accordance with the charitable purpose. It provides for the assessment of tax against an organization as well as an individual. Generally, Form 4720 must be filed by the due date for filing Form 990PF, Form 5227, Form 990 and Form 990EZ.

  2. Form 4720 are processed by Ogden Submission Processing Campus (OSPC). They will determine if a Form 4720A is required based on information in Part II and the signature area on page 6. Accordingly, Form 4720A is prepared and routed to NMF for processing.

  3. Processing procedures are different depending on who is filing the return. NMF will receive Form 4720A for processing if the:

    • Organization is filing for the individual(s), OSPC will prepare a separate Form 4720A for each individual listed on Form 4720, Part II.

    • Individual is filing a separate Form 4720, OSPC will convert the original Form 4720 to Form 4720A.

    • Original Form 4720 does not have a signature on the line for the "signature of officer or trustee" on page 9 (regardless if there are entries in Part I), but there is/are signature(s) on the line for self-dealers, disqualified persons, foundation managers, OSPC will convert original Form 4720 to an "A" for use as the first entry in Part II A. Photocopies of Form 4720A will be used for each additional entry in Part II A.

    • Ogden is responsible for determining whether Form 4720 is being filed for individual(s) and resolving any correspondence issues.

  4. RACS will receive Form 4720A and Form 813 for input through the Form 813 Block Control screen.

  5. Form 4720A will be numbered as follows:

    • Tax Class 6 (True Tax Class 4)

    • Doc. Code 71

    • Blocking Series: 000 —399 non-remittance; 600–699 with remittance

    • MFT 66

  6. Abstract Numbers —various:

    • 150–Self Dealing

    • 151–Undistributed Income

    • 152–Excess Business Holdings

    • 153–Investments which Jeopardize Charitable Purpose

    • 154–Taxable Expenditures

    • 182–Excess Grass Roots Contributions

    • 183–Excess Lobbying Contributions

    • 213–Tax on Political Expenditures

    • 214–Tax on Disqualifying Lobbying Expenditures

    • 232–Excess Benefit Transaction

    • 234–Split Dollar Insurance

    • 237–Prohibited Tax Shelter Transaction

    • 238–Tax on Taxable Distributions

    • 239–Tax on Prohibited Benefits

  7. NMF will establish an account on the ANMF system through the Original Assessment Screen.

  8. Balance Due-research Master File to ensure that all payments/credits have been transferred to NMF. Standard billing will apply.

3.17.46.5.34  (01-01-2011)
Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests
(Date of Transfer December 12, 2005 and prior)

  1. Effective January 1, 2006, Form 8288 with a Date of Transfer December 13, 2005 and subsequent are processed to BMF.

  2. Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests, is required to be filed by the transferee (buyer of the USRPI). Form 8288 reports money withheld at settlement by the buyer in anticipation of the foreign persons U.S. tax liability.

  3. Accompanying the Form 8288 are Form 8288A, Statement of the Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests, which provide a breakout of the transactions to all foreign persons involved. Form 8288A includes the amount of Federal Income Tax Withheld.

  4. Form 8288 is an assessable withholding return which will be assessed through NMF processing.

  5. Form 8288A is filed with the foreign persons income tax return or claim form to verify withholding.

  6. Form 8288 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 41

    • Blocking Series with remittance; 920–929; without remittance: 300–319

    • MFT 17

    • Abstract Number 208

    • Tax Period (TXPD) (use date of sale)

  7. RACS will receive deposit tickets from Receipt and Control Branch, perfected Form 8288 and copy A of Form 8288A, and Credit Transfer Vouchers, Form(s) 2158 from the Refund Transfer Unit. RACS will input the Form 813 to the ANMF system using the Form 813 Block Control screen.

  8. Form 8288, with attached Copy A of Form 8288A and Form 813 will be forwarded to NMF from RACS.

    1. Most Form 8288 will be full paid.

    2. Establish an account on the ANMF system through the Original Assessment screen.

    3. Enter in the Period Ending Field, the Date of Sale (interest starts 20 days from this date).

    4. Fax Form 8288 or Form 8288A to Ogden Submission Processing Campus (OSPC) for recordation into the International NSA Database.

      Note:

      OSPC will mail the Form 8288A Copy B to the foreign taxpayer. The faxed return and statements can be faxed back to CSPC for input to ANMF and association with the original NMF return for maintenance by CSPC.

    5. Balance due Form 8288 will be processed like normal withholding returns.

    6. Form 8288 are subject to normal penalties and interest computation.

      • CSPC will notate the remittance date and amount on the left margin of Form 8288 before faxing to OSPC. This procedure applies to prior year returns, i.e., Non-Remit, where the remittance is in either Unidentified or Excess Collections.

      • If Form 8288 is a late filed return and the International NSA Database indicates "penalty" assessment, OSPC will contact Ogden AM for interest assessment to be included with the penalty assessment. Ogden AM will fax the penalty and interest assessment back to CSPC.

  9. Form 8288 and Form 813 will be forwarded to Cycle Control after NMF processing is completed.

3.17.46.5.35  (01-01-2011)
Form 8404, Interest Charge on DISC-Related Deferred Tax Liability

  1. Shareholders of Interest Charge Domestic International Sales Corporations (IC–DISCs) use Form 8404, Computation of Interest Charge on DISC-Related Deferred Tax Liability, to figure and report their interest on DISC related deferred tax liability.

  2. The Receipt and Control or Document Perfection function will forward all Form 8404 remittance returns to RACS for input to the ANMF System using the Form 813 Block Control screen. The numbering of this document is as follows:

    • Tax Class 6

    • Doc. Code 69

    • Blocking Series with remittance: 300–349; without remittance: 600–699

    • Abstract Number 009

    • MFT 23

  3. RACS will forward the Form 8404 and Form 813 to NMF for processing.

  4. NMF will establish an account on the ANMF System through the Original Assessment screen.

  5. The standard billing schedule and accounts maintenance will apply.

  6. The Assessment documents will be forwarded to Cycle Control after the NMF processing is completed.

3.17.46.5.36  (01-01-2011)
Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts and 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies

  1. Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts, and Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies will be processed as NMF. Both returns are due March 15 of the year following the year to which the liability applies. NMF WILL NOT pre-search Form 8612 and Form 8613 prior to processing to ANMF.

  2. Receipt and Control Branch will forward the accounting package to RACS and the returns to Returns Analysis for code and edit, math verification.

  3. Form 8612 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 21

    • Blocking Series with remittance: 100–999; without remittance: 000–099

    • MFT 89

    • Abstract Number 192

  4. Form 8613 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 22

    • Blocking Series with remittance: 500–999; without remittance: 300–499

    • MFT 14

    • Abstract Number 193

    NMF should ALWAYS pick up the green rocker money when processing any return.

  5. Perfected returns will be forwarded to RACS for input of the Form 813 information to the ANMF System using the Form 813 Block Control screen.

  6. Form 8612 and Form 8613 will be forwarded to NMF from RACS Unit for normal NMF processing.

    1. All returns will require establishment of an account on the ANMF System through the Original Assessment screen.

    2. Form 8612 and Form 8613 are subject to all normal penalties and interest computation as outlined in the IRM 20.2, Interest and the IRM 20.1, Penalty Handbook.

    3. Standard billing and accounts maintenance will apply.

      Note:

      If a Form 2758 or Form 7004 extension with remit has been filed and established, NMF will process Form 8612 and Form 8613 with a "Dummy Period." Return block of work to DBA. The DBA must make a DBA correction following instructions in IRM 3.17.46.5.9 (5), Extensions with Remit.

  7. Returns should be forwarded to Cycle Control after NMF processing is completed.

3.17.46.5.37  (01-01-2015)
Form 8697/8866, Interest Computation Under the Look-Back Method for Completed Long Term Contracts and Property Depreciated Under the Income Forecast Method

  1. Effective May 9, 2010, ANMF will resume processing Refund Form 8697 and Form 8866 only when there is no return (TC 150) posted on MF. This is an interim process until further notice.

  2. Effective January 1, 2005, Form 8697 and Form 8866 are processed as BMF or IMF for Form 1120, Form 990T, and Form 1040. In July 2005, Form 8697 related to Form 1041 and Form 1065 are processed as BMF. NMF no longer processes these forms. This information is for historical purposes only.

  3. The Tax Reform Act of 1986, under Section 460(b)(3) requires issuers of long term contracts (more than one tax year) entered into after February 28, 1986, to re-evaluate after the completion of the contract, the actual income/costs to those estimated at the beginning of the contract. A computation of the interest resulting from the discrepancies in taxes paid and taxes that should have been paid each year is required. This computation results in interest either owed by the taxpayer or to be refunded to the taxpayer. The Form 8697 is used to compute and report the interest due or to be refunded.

  4. The Form 8697 are now attached to Form 1120, Form 990T, or Form 1040 and are filed and processed on the Master File. If the form is not treated as an attachment and is filed separately by the taxpayer for a refund, it will continue to be processed through NMF when there is no return (TC 150) posted on MF. This is the only situation that requires NMF processing.

  5. Refund Form 8697 will be processed through the Accounts Management function.

  6. Refund Claims on Form 8697

    1. Refund Form 8697 will be received in the Refund function in the Accounting Branch with Form 1331B and Form 3753 requesting refund processing.

    2. The refund will be scheduled using manual refund procedures in IRM 21.4, Refund Inquiries.

    3. RACS will pre-journal the Form 1331B and forward it and its related Form 813 and Form 8697 and a photocopy of Form 3753 to NMF for establishment of the account.

    4. RACS will input the original Form 3753 to the Form 813 Block Control Screen and forward it and its related Form 813 and a photocopy of Form 8697 and 1331B to NMF.

    5. The NMF function will receive Form 813, Form 8697, Form 1331B and a photocopy of Form 3753. Establish the account through the Load Old Accounts/Transfer-In Screen using TC 766, MFT 69, with doc. code 54. The abstract number to be used will be determined by the refund issue claimed on the Form 8697.

      Abstract Number Type
      210 Corporation
      211 Individual
      212 Estate or Trust
    6. Form 813 and Form 3753 will be input to the account through the Subsequent Transaction Screen with a TC 840.

    7. Refund forms of $5,000.00 (IMF) and $10,000.00 (BMF) or more must be routed to Examination before being sent to Accounting.

  7. Forward Form 8697, Form 1331B and Form 813 to Cycle Control after NMF processing is completed, unless Form 3696, Correspondence Action Sheet, or Form 3465 Adjustment Request, is attached. Returns with Form 3696 should be forwarded to the Correspondence function. Returns with Form 3465 will be forwarded to the Accounts Management function. If both forms are attached to the return, forward to the Correspondence function. Form 2275, Records Request Charge and Recharge, will be left in the block in lieu of the document.

  8. Refund Form 8866, Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method, should be processed on NMF using the exact same procedures as Form 8697.

3.17.46.5.38  (01-01-2011)
Form 8725, Excise Tax on Greenmail, and Form 8876, Excise Tax on Structured Settlement Factoring Transactions

  1. Form 8725, Excise Tax on Greenmail, is used to report and pay the 50 percent excise tax imposed under IRC 5881. The term greenmail means, within certain limitations specified in IRC 5881, any amount a corporation (or, for transactions occurring after March 30, 1988, any person acting in concert with a corporation) pays to a shareholder to directly or indirectly acquire its stock.

  2. Form 8876, Excise Tax on Structured Settlement Factoring Transactions, is used to report and pay 40 percent excise tax imposed under IRC 5891. The Excise tax is equal to 40 percent of the undiscounted amount of the payments being acquired, over the total amount actually paid to acquire them.

  3. RACS will receive the Form 8725 and Form 813 for input through the Form 813 Block Control screen. Form 8725 will be numbered as follows:

    • Tax Class 6

    • Doc. code 21

    • Blocking Series 000–099 without remittance and 400–499 with remittance

    • MFT 27

    • Abstract Number 216

  4. RACS will receive the Form 8876 and Form 813 for input through the Form 813 Block Control screen. Form 8876 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 21

    • Blocking Series 000–099 without remittance and 400–499 with remittance

    • MFT 27

    • Abstract Number 234

  5. RACS will forward the Form 8725 or Form 8876 and Form 813 to NMF for normal processing.

    1. The tax period is the date entered in the "Date of initial receipt of greenmail" listed at the top of the Form 8725. Form 8876, the tax period is the "Date of initial receipt of the Structured Settlement" listed at the top of the Form 8876. Convert that date to MM/DD/YYYY for input to ANMF.

    2. The amount of excise tax due (Line 6, Form 8725), is a flat 50 percent of the total gain or other income (Line 5, Form 8725). The amount of tax due (Line 6, Form 8876), is a flat 40 percent of the factoring Discount (Line 3, Form 8876).

    3. The returns may be filed under either an SSN or EIN format.

  6. Form 8725 and Form 8876 is subject to late filing and late payment penalties if not filed or paid on time.

  7. The standard billing schedule and accounts maintenance will apply.

  8. The returns will be forwarded to Cycle Control after NMF processing is completed.

3.17.46.5.39  (01-01-2015)
Forms 8804, Annual Return for Partnership Withholding Tax, and Forms 8813, Partnership Withholding Tax Payment Voucher Under Section 1446
(200411 and prior)

  1. Form 8804, Form 8805, and Form 8813 are required to be filed for reporting withholding on certain partnerships effectively connected income allocated to foreign partners engaged in the conduct of a U.S. trade or business (Section 1446). Form 8804 is the annual tax return used to report income and withholding information. Form 8805 is the information return for each partner and is required to be attached to Form 8804. Form 8813 is used to submit estimated payments of tax.

    Note:

    For historical and research purposes only - Effective January 1, 2004, Form 8813 are processed to BMF. Form 8804 are processed to BMF as of January 1, 2005

  2. These forms are to be numbered as follows:

    • Tax Class 6

    • Doc. Code 29

    • Blocking Series: 8804, 000–199 (Non-Remit), 200–599 (With Remit); 8813, 100–149 (with Remit)

    • MFT 08

    • Abstract Number 215

  3. Form 8813 (payment voucher) and Form 8804 are forwarded from Receipt and Control for input to the International NSA database in the Ogden Submission Processing Campus. The forms will be forwarded via Form 2158 to the CSPC for processing to ANMF. Refer to Miscellaneous Accounting IRM 3.17.243.

  4. CSPC will fax Form 8804 to Ogden Submission Processing Campus (OSPC) for credit verification of Form 8288A.

    OSPC will fax the Form 8804 using Form 13698, International Verification Slip, back to CSPC within 48 hours for continued processing.

  5. NMF will establish the Form 8804 (200411 and prior) account through the Original Assessment screen.

    1. Include the partnership/withholding agent name and EIN in the Cross Reference field.

    2. A normal billing schedule will apply. No penalty or interest is applicable.

    3. Refunds—Overpayments on Form 8804 will be processed on ANMF database. Form 3753 Manual Refund Posting Voucher will be prepared. The refund will be scheduled using manual refund procedures.

    4. Credit Elect—If the return is noted that the credit should be applied to the next return, enter in the cross reference field "Credit to MMDDYY" on the first line and the "Amount of Credit" on the second line. When credit balance transcript is generated, NMF will prepare Form 3809 to move credit elect from prior year to the next year posted on NMF or to the Master File.

      Note:

      Transfer Form 8804 Credit Elects for 2004 to BMF.

    5. NMF will input Form 8813 (2004 and prior) to the subsequent transaction input screen. If there is a Form 8804 account established on ANMF for this payment, the money will post and a recap will generate.

    6. If there is no Form 8804 established on ANMF, the credit will move to the "Unpostable Listing" .

    7. When a Form 8804 account is established on ANMF, the Form 8813 payment will automatically post to the account and generate a recap.

  6. After the assessment posts to the database, NMF will forward the Form 813 and the related Recap(s) to RACS for journalization as Withholding Tax per instructions outlined in IRM 3.17.63, Redesign Revenue Accounting Control System.

  7. The assessment documents will be forwarded to Cycle Control after NMF processing is completed.

3.17.46.5.39.1  (01-01-2011)
Researching for Form 8804 Advanced Payments (Form 8813 Payment Voucher)

  1. When a taxpayer claims a credit on a Form 8804, research URF using Command Code (CC) URINQ or Excess Collections File (XSF) using Command Code (CC) XSINQ. Both files can be researched in any of the three ways: amount of remittance, name control or DLN (See IRM 3.17.10.3.7 for URINQ or IRM 3.17.220.2.6 for XSINQ).

  2. If the credit is located, prepare Form 8765 IDRS Control File Credit Application. Identify the credit application type as "N" (NMF). Submit the Form 8765 with attached documentation identifying the credit on URINQ to the Unidentified Remittance unit or XSINQ to the Excess Collections unit. Monitor the NMF account until the payment is applied.

    Note:

    Ensure that the taxpayer does not receive a balance due notice.

3.17.46.5.40  (01-01-2011)
Form 8831, Excise Tax on Excess Inclusions of REMIC Residual Interest

  1. Form 8831 is used to report and pay excise taxes on any transfer of a residual interest in a REMIC (Real Estate Mortgage Investment Conduit) to a disqualified organization or any transfers of a residual interest in a pass-through entity. The tax applies to those transfers made after March 31, 1988 (unless the transfer was made under a binding contract in effect on that date). The earliest filing date for this return is March 24, 1993. Due to the small number anticipated nationwide, these returns will be processed on ANMF.

  2. Document Perfection will forward all perfected returns to RACS for input to the Form 813 Block Control screen.

  3. The block of documents will be numbered as follows:

    • Tax Class 6

    • Doc. Code 21

    • Blocking Series 000–099 without remittance and 100–999 with remittance

    • Abstract Number 221

    • MFT 89

  4. RACS will forward the documents and Form 813 to NMF for processing.

    1. All refund claim Form 8831, any return marked with an "Amended" , or returns needing penalty computation will be forwarded to the Accounts Management function for resolution prior to routing for NMF processing.

    2. Late Filing Penalty and Late Payment Penalty apply to Form 8831. The estimated Tax Penalty does not apply to Form 8831.

  5. The standard billing schedule and accounts maintenance will apply.

  6. Form 8831 which have "RTC RECEIVERSHIP " written at the top of the document cannot be processed using existing IRM procedures. Follow a. though e. below:

    1. Number using existing numbering criteria indicated in IRM 3.17.46.5.40 (3) above.

    2. Assess the tax indicated on line 5 of the document.

    3. Input Exception Code "R" to restrict the accruals of interest and penalty.

    4. Allow first notice to generate and mail. No subsequent notice is to be issued.

    5. Prepare form 3177 and input TC 530 CC 15. Per an Inter-Agency agreement between the IRS and the FDIC, no annual reminder notice is required.

  7. The returns will be forwarded to Cycle Control after NMF processing is completed.

3.17.46.5.41  (01-01-2011)
Form 8924, Excise Tax on Certain Transfers of Qualifying Geothermal or Mineral Interests

  1. The Tax Relief and Health Care Act of 2006 (P.L. 109-432), Section 403, enacted a new Form 8924 for the computation and reporting of the excise tax due on the Transfer of Certain Qualifying Geothermal or Mineral Interests by an eligible entity. The return is due by the 90th day following the taxable transfer.

  2. Receipt and Control Branch will forward the accounting package to RACS and the returns to Returns Analysis for code and edit.

  3. Form 8924 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 40

    • Blocking Series 300–399 without remittance and 400–499 with remittance

    • Abstract Number 012

    • MFT 41

  4. Perfected returns will be forwarded to RACS for input of the Form 813 information to the ANMF system using the Block Control screen.

  5. RACS will forward Form 8924 to NMF for normal ANMF processing as follows:

    1. Account establishment through the Original Assessment screen.

    2. Normal penalty and interest computation in accordance with IRM 20.2, Interest and IRM 20.1, Penalty Handbook.

    3. Standard billing and accounts maintenance will apply.

    Note:

    If Form 7004 extension has been filed and established, NMF will process Form 8924 with a "Dummy Period" . Return block of work to DBA. DBA must make a DBA correction following NMF extension of time to file procedures. IRM 3.17.46.5.9 (5), NMF Extension of Time to File.

  6. Forward returns to Cycle Control after NMF processing is completed.

3.17.46.5.42  (01-01-2012)
Form 8928, Return of Certain Excise Taxes Under Chapter 43 of the Internal Revenue Code

  1. The Tax Relief and Health Care Act of 2006 (P. L. 109-432), Section 403, enacted a new Form 8928 for the computation and reporting of Excise taxes due on Sections 4980B, 4980D, 4980E, and 4980G for failures by group health plans or employers. The due date of the return is dependent on the Section as follows:

    Section Due Date of Form 8928
    4980B or 4980D
    On or before the due date for the persons federal income tax return (single employer or other responsible person).
    On or before the last day of the seventh month following the end of the plan year (multiemployer or multiple employer plans).
    4980E or 4980G On or before the 15th day of the fourth month following the calendar year in which the noncomparable contributions were made
  2. Receipt and Control Branch will forward the accounting package to RACS and the return to Returns Analysis for code and edit.

  3. Form 8928 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 39

    • Blocking Series 000–099 without remittance and 400–499 with remittance

    • Abstract Numbers:

      Abstract Number Section
      126 4980B
      127 4980D
      128 4980E
      137 4980G
    • MFT 41

    Note:

    Form 8928 received with excise tax due on Sections 4980B and 4980D for the same taxpayer and same tax period may be received with a "Summary Form " and several Forms 8928 attached. Only the "Summary Form" should be input. All supporting forms should be securely attached to the "Summary Form" .

  4. Perfected returns will be forwarded to RACS for input of the Form 813 information to the ANMF system using the Block Control screen.

  5. RACS will forward Form 8928 to NMF for normal ANMF processing as follows:

    1. Account establishment through the Original Assessment screen.

    2. Normal penalty and interest computation in accordance with IRM 20.2, Interest and IRM 20.1, Penalty Handbook.

    3. Standard billing and accounts maintenance will apply.

      Note:

      If Form 7004 extension has been filed and established, NMF will process Form 8928 with a "Dummy Period" . Return block of work to DBA. DBA Must make a DBA correction following NMF extension of time to file procedures. IRM 3.17.46.5.9 (5), NMF Extension of Time to File.

  6. Forward returns to Cycle Control after NMF processing is completed.

3.17.46.6  (01-01-2011)
Full Collection Child Support Cases

  1. This Section provides instructions for the assessment, collection and reporting of amounts of payments for Full Collection Child Support for which certain individuals are in arrears as reported by the various states and certified to IRS for collection by the Secretary of Health and Human Services (HHS). This project should not be confused with the Treasury's Offset Program (TOP) formerly the Service's Tax Refund Offset Program (Debtor Master File—DMF) found in IRM 21.4.6, Refund Offset. All DMF certifications are identified with a TC 130 using blocking series 999.

3.17.46.6.1  (01-01-2011)
General

  1. Public Law 93–647 authorizes IRS collection of child support payments which have been ordered by state courts but have fallen into arrears. When certified by HHS the arrearage will be treated as taxes collectible. Sixty days will be allowed for payment after issuance of first and final notice for initial certifications. No penalty or interest will be incurred except for bad checks and failure to surrender levied property.

  2. Application for IRS collection must be initiated by state agency administering Child Support Enforcement plans approved under Title IV–D of the Social Security Act—commonly referred as the IV–D agency. The state of address of the agency as shown on page 1 of the application becomes the state of jurisdiction as referenced in these procedures. HHS will approve or reject the application as indicated by entries on pages 4 and 5 of the application. Only approved applications, certified by the Regional Director of the Office of Child Support Enforcement (OCSE), will be received by IRS.

  3. Certified applications will be forwarded to the Cincinnati Submission Processing Campus (CSPC).

  4. All monies collected under this program will be treated as revenue receipts by CSPC including area office operations. CSPC will report the collections to the Treasury on Form SF 224 in a special revolving fund established by Statute.

  5. An estimate of the Service's cost to process and collect these cases will be provided to HHS as part of the monthly report prepared by CSPC. Proper billing for these fees will be dependent on campus recognition and reporting of the requisite conditions.

  6. As the principal contact with the obligated individual in many instances, IRS incurs an additional responsibility for informing the individual of the events and conditions which occasioned its actions. Appropriate form letters and notices cannot be adequately designed at this time because of the numerous existing conditions. Due to the volume involved, Cincinnati must be prepared to issue individual letters as required.

  7. CSPC will appoint a coordinator who will work with the Department of Health and Human Services (HHS)/Social Security Administration (SSA) to answer questions pertaining to the compilation and reporting of collections for child support payments. CSPC will notify HHS/OCSE as to the name of the Child Support Coordinator. See IRM 3.17.46.6.7 (10). for the address.

  8. Public Law 97–35 now provides for the collection of support and maintenance of a child or of a child and parent with whom the child is living. This is referred to as child and spousal support. Although spousal support (alimony) is now included, this will have no effect on the present processing instructions regarding these cases.

  9. The Child Support Coordinator (CSC) will be responsible for resolving any problems related to certifications, assessments and collections activities. This will restrict the number of persons contacting OCSE and maintain a central point of control in the campus.

    1. If the CSC is advised of obvious errors in certification applications of assessments by campus personnel or Revenue Officers, the CSC will contact the Office of Regional Director, OCSE at the telephone number furnished on page 2 of the certification application.

    2. The CSC will explain the discrepancy or error and request assistance in resolving problems which may require contacting the state.

    3. When it is determined what must be done to resolve the problem (request a corrected application to abate or increase an assessment or correct a TDA) the CSC will initiate appropriate corrective action.

    4. The CSC will monitor the case to ensure that all appropriate corrective action has been completed.

  10. All time used in processing ANMF Child Support cases should be reported under the reimbursable Function Code 710, Project Code 97030. This program code is valid with any function code deemed appropriate.

3.17.46.6.2  (01-01-2011)
Certification Number—Child Support Assessments

  1. Each application will contain a control number assigned by the Regional OCSE office. The number will be entered in the appropriate area of the certification (page 1 of the application) and will consist of ten characters as follows:

    1. 1–2 Alphabetical designation of the state of jurisdiction.

    2. 3–7 Date of Certification in MMDDYY format (only the last digit of the year will be shown).

    3. 8–10 Certification numbering beginning with 001 for each HHS Region for each fiscal year.

  2. Enter control number in the upper left corner of the application.

3.17.46.6.3  (01-01-2011)
Types of Applications—Child Support Assessments

  1. Form OCSE–20 (6–84), Application for the Collection of Delinquent Child Support Payments by the Internal Revenue Service, defines the actions to be taken. There are three options, only one of which may be selected on a form:

    1. Box 2 (a) indicates that this is an initial request;

    2. Box 2 (b) indicates that this is a modification to a previous request, either an increase or decrease to a previously assessed arrearage; and

    3. Box 2 (c) indicates that this is a cancellation of a previous request. An approved application is the only means that can be used to cancel an assessment once the assessment has been established.

  2. When Box 2 (a) is checked the following actions are required:

    1. Assessment of the arrearage; and

    2. Bill the state for the fee.

    3. Manually issue Form 6335 (NMF First Notice), wait 30 days and keep a copy in the case file.

    4. Manually issue Form 4840 (NMF Fourth Notice) by Certified mail, and wait 30 days. Keep copy of notice in case file.

    5. After the 60 day stay of collection has elapsed the Taxpayer Delinquent Account (TDA) will be systemically issued without further notice.

  3. When box 2 (b) is checked and the arrearage is increased and/or the period of arrearage is extended, the following actions are required;

    1. Assessment of the additional arrearage;

    2. Manually issue Form 6335 (NMF First Notice) wait 30 days and keep a copy in the case file.

    3. Manually issue Form 4840 (NMF Fourth Notice) by certified mail, and wait 30 days. Keep copy of notice in case file.

    4. After the 60 day stay of collection has elapsed the Taxpayer Delinquent Account (TDA) will be systemically issued without further notice.

    Note:

    By law, anytime an account is increased, it must go through the First and Fourth Notice status. A Form 4840 should be used for the Fourth Notice and certified by mail before it goes TDA. It is imperative that you remove the paragraph on Form 4840 pertaining to interest and penalties.

  4. When Box 2 (b) is checked and the arrearage is decreased and/or the period of arrearage is reduced, adjust the previous assessment if necessary.

    Note:

    Anytime an account is decreased, the law does not require any notices to be sent out; however, due to courtesy, the Service does send an explanation to the taxpayer.

  5. When Box 2 (c) is checked the following actions are required:

    1. Compare the amount of the cancellation to the remaining balance of the arrearage;

    2. If the cancellation amount is greater than the remaining balance, contact the person whose name and telephone number is listed on the bottom of the back of the Form OCSE–20. Determine the exact amount to be abated; or

    3. If the cancellation amount is equal to the remaining arrearage, close the case.

  6. Other actions on these cases include the following:

    1. Reactivation of closed cases;

    2. Statute extensions;

    3. Addition of a new child to the case.

  7. If the actions noted in (6) above are needed follow steps (2) or (3).

3.17.46.6.4  (01-01-2011)
Processing Applications—Initial Sort—Child Support Assessments

  1. Forward all applications for assessments and increases to assessments to CSCO using Form 3210. The Revenue Officer will review them to insure they are in order.

  2. Correct application will be returned to Accounting for assessment.

  3. Incorrect applications will be returned by CSCO to the state.

  4. See the following instructions for all other applications.

3.17.46.6.5  (01-01-2011)
Assessable Applications—Child Support Assessments

  1. Prepare Form 5734, Non-Master File Assessment Voucher in duplicate for each assessable application.

    1. Enter the name and address of obligor from item 1 of the application in block 1 of Form 5734.

    2. Enter SSN of obligor from item 1 of the application in item 3 of Form 5734.

    3. Enter MFT 59 in item 7 of Form 5734.

    4. Enter period (from and to dates from item 1 of the application) in item 6 of the Form 5734. Enter "CSO" in item #5 of Form 5734.

    5. In "Reason Assessment" box (item 12) of the Form 5734 enter: the boxes checked on application and Control number of the application (from the front of the application).

    6. If box 2 (a) or (b) of the application has been checked, enter the delinquent amount shown in item 1 of the application in item 8 of the Form 5734 with TC 150.

    7. If box 2 (b) of the application has been checked to indicate an increase, secure the previous application as identified by the control number, subtract the amount entered as item 1 from that of the application in process and enter the difference as an increase in item 8 of the Form 5734 with TC 290.

    8. Previous application may have been assessed in another campus prior to November 2002; if no record is present (or other problems arise during the processing of the application), phone the office of the Regional Director, OCSE, at the telephone number furnished on page 2 of the application and request assistance.

  2. During the preparation of Form 5734, enter "Fee" in the upper right corner of the application (beside State Control Number) if application is checked in boxes 2(a).

  3. Assign a standard DLN to Form 5734; separately block the various assessable categories.

    1. Use the AO Code for the first two digits of the DLN

    2. Tax Class 6

    3. Doc. Code 55

    4. Blocking Series 420–424

    5. Enter the DLN in the upper center margin of the application.

  4. Establish the total debit amount for each block by listing items on Form 813. RACS will establish Form 813 through the Form 813 Block Control Screen.

  5. RACS will forward assessable Forms 5734 to NMF to establish an account on the ANMF System through the Original Assessment-Weekly Screen. The NMF Assessment Recap will be given to RACS for journalization. Boxes 2 (a) on the application will become Notice Status. Boxes 2 (b) increase will become TDA Status.

  6. Issue Notice to obligor as required by conditions of application.

    1. If box 2 (a) of the application is checked, issue letter 753(C).

    2. If boxes 2 (b) are checked, the Notice must specify the reasons for the increase or the decrease in arrearage, the amount of the same and the period covered.

    3. The Assessment is not subject to any penalty or interest charges.

    4. Mail Form 6335 with the 753(C) Letter to the taxpayer.

    5. Forward a copy of the 753(C) Letter to the originating Regional OCSE Office which certified the application.

  7. If payment is not received for accounts in Notice Status within 30 days of issuance of the First Notice, issue Form 4840CSO, Notice of Intent to Levy.

  8. If the payment is not received for the accounts in Notice Status within another 30 days of issuance of the Fourth Notice, a TDA will be systemically generated.

    1. Attach the duplicate copy of the certification to the TDA.

    2. Annotate the TDA with red ink "Notice of Intent to Levy in file" before forwarding the TDA to Collection.

    3. Enter the account on IDRS using MFT Code 59.

  9. For all of the accounts entering Delinquent Status prepare Form 3177, with TC 130 and route to the CSCO for input.

  10. If the account is in Delinquent Status and the TDA is not to be issued, forward a duplicate copy of the application to the appropriate field office; attach Form 1725 with the following entry "For Association With CSO Account DLN" .

  11. Deposit all payments received in the same manner as for taxes collected.

    1. Enter on Form 215, Deposit Ticket, as Tax Class 4.

    2. Prepare Form 3244, Payment Posting Document for posting as a NMF subsequent payment.

    3. Abstract on reverse of Form 813 (part 2), as 170. List abstract lien fees separately under Abstract 139.

  12. Establish a permanent file (in control number sequence) of all applications processed. Retain separately all applications processed during a month which are noted "Fee" in upper right corner of page 1 until all reports for that month have been prepared. Following submission of the reports, place applications in permanent file.

  13. Any correspondence from the taxpayer concerning the accuracy of the amount assessed (excluding payment tracer cases) should be answered by using Letter 1209(c). Refusal to pay or inability to pay responses should be referred to the CSCO.

3.17.46.6.6  (01-01-2011)
Decrease and Other Applications—Child Support Assessments

  1. Prepare Form 1331B, Notice of Adjustment, in duplicate for each decrease application.

    1. Enter the SSN of the obligor from item 1 of the application in the "Name and Address of Taxpayer" section of Form 1331B.

    2. Enter the period (From and to dates from item 1 of the application) in the "Taxable Period" Box of Form 1331B.

  2. In "Computation of Decrease in Liability" Box (Section 1) of the Form 1331B, enter:

    1. Name and address of obligor from item 1 of the application.

    2. Box checked on application 2 (b) or 2 (c).

    3. Control number of the application (from the upper right corner).

  3. Compare amount shown in item 2 (b) with item 1 and enter the difference in Section 1 of Form 1331B as a TC 291 decrease in liability.

  4. Previous application may have been assessed in another campus prior to November 2002; if no record is present (or other problems arise during the processing of the application), phone the office of the Regional Director, OCSE, at the telephone number furnished on page 2 of the application and request assistance.

  5. If box 2 (b) is checked, analyze the application for changed entries indicated by an asterisk and correct the ANMF account for all the relevant items such as the name, the address, etc. using the NMF ENTITY CHANGE Screen.

  6. Block application types 2 (b) and 2 (c) separately, assign standard DLN on Form 1331B as follows:

    1. Use the AO Code for the first digits of the DLN

    2. Tax Class 6

    3. Doc. Code 54

    4. Blocking Series 425–429

    5. Enter the DLN in the upper center margin of the application.

  7. Establish the total credit amount for each block by listing items on Form 813. RACS will establish the Form 813 on the Form 813 Block Control Screen.

  8. Forward all decreases, Form 1331B, to NMF for input to the ANMF System using the Subsequent Transaction Screen.

  9. Follow procedures in IRM 3.17.46.11.4 for any credit balance remaining on the account.

3.17.46.6.7  (01-01-2011)
Reports-Form 5461; Report of Action Under Public Law 93–647, Child Support Assessments

  1. Form 5461 is used to report activity relating to accounts assessed under Public Law 93–647. This report is used by OCSE/HHS as follows:

    1. An accounting tool in conjunction with Form SF 224, to account for collections,

    2. To make financial settlements with state agencies, and

    3. To report the status of the accounts to the state agencies.

  2. Information or assessments not requested by the application should not be reported on Form 5461. This is true even though amounts from Lien Fees, Dishonored Check Fees or Collection Costs are rightfully assessed as a result of the child support assessment. The ANMF system generates account transcripts and a separate CSO Trial Balance listing which is used to aid in the preparation of Form 5461.

  3. Each month Form 5461 should be prepared in triplicate for each state of jurisdiction. Accounts subject to reporting are identified as follows:

    1. All accounts in notice, delinquent or currently not collectible status.

    2. Accounts for which an adjustment (caused by an application) or collection has been posted during the report month.

  4. Use Form 5461 (Rev. Rul. 6–79) with the following guidelines (see exhibits for examples):

    1. State of Jurisdiction—Enter the name of the state of jurisdiction for the certification form. This name will never change unless specifically requested by OCSE or HHS.

    2. Service Center—Enter Cincinnati.

    3. Report Month—Enter the accounting month to which the report applies. Coordinate the preparation of this report so that the month end posting and journalization cut off for this report coincides with that of the month end cut-off for posting to the ANMF system.

    4. Control Number—Enter the control number of the certification form.

    5. Name of Obligor—Enter the Name and SSN of the person assessed.

    6. Date of Assessment—Enter 23C date of the assessment.

    7. Date Sent to Field—If the account is in TDA status, enter the notice date of the TDA.

    8. Date Reported Currently Not Collectible—If the account has been written-off, enter the date of the 53'd transaction.

    9. Account Transfer In/Out Date—if the account was transferred to your center during the report month, enter the name of the campus that had transferred the account and the date of transfer. If the account was transferred to another campus during the report month, enter the name of the campus and the date of transfer.

      Note:

      This is no longer applicable since NMF is processed only in Cincinnati.

    10. Amount Assessed—Enter the amount of child support obligation assessed. Do not include any costs of collection (such as a lien fee) in the Amount Assessed column even though they may appear on the ANMF account.

    11. Amount Collected (Overpayment)—Enter the total amount collected on the account during the report month. If an overpayment results from a collection or an adjustment, apply the overpayment to all other outstanding child support assessments first and list the overpayment as you would any other payment to the assessment. Do not list an adjustment as an Amount Collected (Overpayment) unless that amount has already been paid (collected). Do not list collections of lien fees or other costs of collection even though they appear on the ANMF account. Amounts of overpayment that cannot be applied to another child support assessment and must be either offset to another tax liability, such as a 1040 liability, or actually refunded to the taxpayer must be shown or an overpayment in the Amount Collected (Overpayment) column as a reversal collection e.g., ($500.00). The total amount collected for that state will be reduced by the amount of the overpayment.

    12. Amount Adjusted—Enter the amount of an adjustment relating to a revised certification which increases or decreases a previously certified amount. Do not list a 53'd action as an adjustment, unless it is a statute expired case. For statute expired cases, enter the amount with an *(asterisk) and a footnote to show statute expired. This will also indicate to the office of Child Support Enforcement that they may recertify. The current fee for new assessments would apply to these cases.

    13. Balance—Enter the amount of arrearage still outstanding. In cases where an account has been 53'd, list the balance prior to the 53'd action less any payments received after 53'd. Do not include lien fees or any other collection cost in the balance.

    14. Fee—Enter the amount of the fee ($122.50) relating to applications processed during the report month which are noted "Fee" .

    15. Do not reveal the source of any collections received on an account such as "Offset from IMF" or dispositions of overpayments to other tax liabilities other than child support obligation accounts such as "Overpayment applied to IMF account" . Do not disclose any tax account information in the report that is not specifically mandated by these instructions. Do not list or include Dishonored Check Penalties in the amounts listed on the report even though they may be actually assessed or collected.

  5. The following elements will only be reported in the report month the activity took place:

    • Amount Assessed

    • Amount Collected (Overpayment)

    • Amount Adjusted

    • Fee

    • 53'd

  6. Accounts for which there has been no activity during the month will not be listed on the Form 5461.

  7. Prepare a memorandum for each state and a summary memorandum for all states. Each memorandum will show the monthly activity and inventory status for the report month. The amount of collections reported on Form 5461 must agree with the amount of collections on the memorandum.

    Note:

    It is no longer necessary to prepare "no activity" State letters.

  8. If a report for a state should require more than one page of Form 5461, enter "page 1 of 2" , etc. In the upper right corner of the form.

  9. After determining the total collections for a particular report month, send this information to the Journal Function for Same as response to 10(6) reclassification of the collections to decrease Excise Tax and increase the special HHS Account. It is essential that the total collections reported on Form 5461 agree with the collections reported on the Form SF 224. Failure to do so delays disbursement to the States by the Debt Management Branch.

  10. Send no later than the 15th work day of each month, the original and one copy of Form 5461, a copy of the specific page of the Form SF 224 showing the total collections to the Appropriation Account 75X6288A/R (blank out all other data on the page). A Summary memorandum (Cover Sheet, figure 3.17.46-13) should contain the following address:

    1. U. S. Dept. of Health and Human Services
      Program Support Center
      Division of Financial Operations
      Debt Management Branch
      5600 Fishers Lane, Room 8B-45
      Rockville, Maryland 20857

    2. A copy of the complete report must be faxed to the Headquarters ANMF Analyst.

    Figure 3.17.46-13

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

3.17.46.6.8  (01-01-2011)
Preparation of Form 5461, Report of Action Under Public Law 93–647

  1. No footnotes should appear on the report unless the transaction is extremely complex or not covered by existing instructions.

  2. The following is an explanation of the items reported on the 5461 (figure 3.17.46-14).

    1. Control #0000000—An Application was received and item 2 (a) was checked on the application. $1,500.00 was assessed on 01–05–98; therefore a fee of $122.50 was charged and applicable.

    2. Control #00000001—The Account went to TDA status on 01– 05–98. The Application was received and item 2 (b) was checked on the application (reducing the arrearage by $750.00). A payment was received in the amount of $500.00 leaving a net balance still outstanding of $250.00.

    3. Control #00000002—The Account was 53'd on 01–05–98. There is a balance remaining outstanding of $500.00.

    4. Control #00000003—The Account was transferred to the Ogden Campus 01–12–98. The balance on the account was $2,000.00.

    5. Control #00000004—A payment of $500.00 was received during the month, plus an application with item 2 (c) checked, reducing the original arrearage to zero. A $600.00 overpayment was either transferred to a non-child support liability or refunded to the taxpayer.

    6. Control #00000005—The Account was transferred from Brookhaven on 01–12–98 with a balance of $1,200.00.

    7. Control #00000060—An Application was received with item 2 (b) checked. An assessment of $200.00 was made on 01–12–98. A fee of 122.50 applies to this type of application.

    8. Control #00000004—Collections are reduced by the $500.00 overpayment.

    9. Control #0000030—Statute expired account 53'd on 01– 12–98. Amount adjusted was $500.00.

    10. The social security number of the taxpayer is NOT on the figure; however, under each of the taxpayer's name, include his/her social security number. See IRM 3.17.46.6.3 and IRM 3.17.46.6.5 for complete details.

    Figure 3.17.46-14

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

3.17.46.6.9  (01-01-2014)
HHS Office Address

  1. Addresses of HHS Offices—Child Support Assessments
    (1) Region I Office of Child Support Enforcement
    John F. Kennedy Federal Building
    Room 2000
    Boston, Massachusetts 02203
    (617) 565–1500
    (2) Region II Office of Child Support Enforcement
    Jacob K. Javits Federal Building
    26 Federal Plaza, Room 4114
    New York, New York 10278
    (212) 264–2890
    (3) Region III Office of Child Support Enforcement
    The Public Ledger Building
    150 South Independence Mall West
    Suite 864
    Philadelphia, Pennsylvania 19106-3499
    (215) 861–4000
    (4) Region IV Office of Child Support Enforcement
    Atlanta Federal Center
    61 Forsyth Street, Suite 4M60
    Atlanta, Georgia 30303-8909
    (404) 562–2800
    (5) Region V Office of Child Support Enforcement
    233 North Michigan Avenue, Suite 400
    Chicago, Illinois 60601-5519
    (312) 353–4237
    (6) Region VI Office of Child Support Enforcement
    1301 Young Street, Suite 914
    Dallas, Texas 75202
    (214) 767–9648
    (7) Region VII Office of Child Support Enforcement
    601 East 12th Street, Room 349
    Kansas City, Missouri 64106-2808
    (816) 426–3981
    (8) Region VIII Office of Child Support Enforcement
    999 18th Street
    South Terrace, Suite 499
    Denver, Colorado 80202
    (303) 844–3100
    (9) Region IX Office of Child Support Enforcement
    90 Seventh Street
    Federal Building, 9th Floor
    San Francisco, California 94103
    (415) 437–8400
    (10) Region X Office of Child Support Enforcement
    2201 Sixth Avenue, Suite 300
    Seattle, Washington 98121
    (206) 615–2547

3.17.46.6.10  (01-01-2015)
CSO State Agency Addresses

  1. State Agencies Administering Child Support Programs Under Title IV–D of the Social Security Act.

    CSO STATE AGENCY ADDRESSES
    ALABAMA
    Department of Human Resources,
    Child Support Enforcement Division
    P.O. Box 304000
    50 Ripley Street
    Montgomery, AL 36130–1801
    (334) 242-9300
    FAX: (334) 242-0606
    ALASKA
    Child Support Services Division,
    Department of Revenue
    550 West 7th Avenue, Suite 280
    Anchorage, AK 99501–6699
    (907) 269-6900
    FAX: (907) 787-3220
    ARIZONA
    Division of Child Support Services,
    Arizona Department of Economic Security
    3443 N. Central Ave, Suite 1604,
    Phoenix, AZ 85012
    (602) 771-8190
    FAX: (602) 771-8191
    ARKANSAS
    Office of Child Support Enforcement,
    Department of Finance and Administration
    P.O. Box 8133
    Little Rock, AR 72203–8133
    1509 West 7th Street
    Little Rock, AR 72201
    (501) 682-6169
    FAX: (501) 682-8402
    CALIFORNIA
    Department of Child Support Services
    P.O. Box 419064, Mail Station 100
    Rancho Cordova, CA 95741–9064
    11150 International Drive
    Rancho Cordova, CA 95670
    (916) 464-5300
    FAX: (916) 464-5211
    COLORADO
    Division of Child Support Enforcement,
    Department of Human Services
    1575 Sherman Street, 5th Floor
    Denver, CO 80203–1714
    (303) 866-4300
    FAX: (303) 866-4360
    CONNECTICUT
    Department of Social Services,
    Bureau of Child Support Enforcement
    25 Sigourney Street
    Hartford, CT 06106
    (860) 424-4989
    FAX: (860) 951-2996
    DELAWARE
    Division of Child Support Enforcement
    Delaware Health and Social Services
    P.O. Box 11223
    Wilmington, DE 19850
    84 A Christiana Road
    New Castle, DE 19720
    (302) 395-6500
    FAX: (302) 395-6735
    DISTRICT OF COLUMBIA
    Child Support Services Division,
    Office of the Attorney General
    441 Fourth Street, NW 550 N
    Washington, DC 20001
    (202) 724-2131
    FAX: (202) 724-3710
    FLORIDA
    Child Support Enforcement,
    Department of Revenue
    P.O. Box 8030
    Tallahassee, FL 32399–7016
    (850) 717-7000
    FAX: (850) 921-0792
    GEORGIA
    Child Support Service,
    Department of Human Resources
    Two Peachtree Street,
    Atlanta, GA 30303
    (404) 657-3851
    FAX: (404) 657-3326
    GUAM
    Office of the Attorney General,
    Child Support Enforcement Division
    287 West O'Brien Drive
    Hagatna, Guam 96910
    (671) 475-3360
    FAX: (671) 475-3203
    HAWAII
    Child Support Enforcement Agency,
    Department of Attorney General
    601 Kamokila Blvd. Suite 207
    Kapolei, Hawaii 96707
    (808) 692-7000
    FAX: (808) 692-7134
    IDAHO
    Bureau of Child Support Services,
    Department of Health and Welfare
    P.O. Box 83720
    Boise, ID 83720–0036
    1740 N Westgate Drive
    Boise, ID 83704
    (800) 356-9868
    FAX: (208) 334-5571
    ILLINOIS
    Division of Child Support Services,
    Department of Healthcare and Family Services
    509 S. 6th Street
    Springfield, IL 62701
    (800) 447-4278
    FAX: (217) 524-6049
    INDIANA
    Child Support Bureau,
    Department of Child Services
    402 West Washington Street, Rm W360
    Indianapolis, IN 46204–2739
    (317) 233-5437
    FAX: (317) 233-4932
    IOWA
    Iowa Child Support Recovery Unit,
    Department of Human Services
    400 S. W. 8th Street, Suite H
    Des Moines, IA 50319–4691
    (888) 229-9223
    KANSAS
    Department for Children and Families,
    Child Support Services
    P.O. Box 497
    Topeka, KS 66601–497
    915 SW Harrison Street
    Topeka, IN 66612
    (888) 757-2445
    KENTUCKY
    Child Support Enforcement Program,
    Department for Income Support,
    Cabinet for Families and Children
    P. O. Box 2150
    730 Schenkel Lane
    Frankfort, KY 40602–2150
    (502) 564-2285
    FAX: (502) 564-5988
    LOUISIANA
    Department of Children and Family Services,
    Child Support Enforcement
    P.O. Box 94065
    627 N. Fourth Street
    Baton Rouge, LA 70802
    (225) 342-4780
    FAX: (225) 342-7397
    MAINE
    Child Support,
    Division of Support Enforcement and Recovery
    11 State House Station
    19 Union Street
    Augusta, ME 04333
    (207) 624-4100
    FAX: (207) 287-2334
    MARYLAND
    Maryland Child Support Enforcement Administration,
    Department of Human Resources
    Saratoga State Center
    311 West Saratoga Street Room 301
    Baltimore, MD 21201–3521
    (410) 767-7065
    FAX: (410) 333-6264
    MASSACHUSETTS
    Child Support Enforcement Division,
    Massachusetts Department of Revenue
    P.O. Box 9561
    Boston, MA 02114–9561
    51 Sleeper Street
    Boston, MA 02205
    (800) 332-2733
    FAX: (617) 887-7570
    MICHIGAN
    Office of Child Support,
    Department of Human Services
    P.O. Box 30478
    235 S Grand Avenue
    Lansing, MI 48909–7978
    (517) 241-7460
    FAX: (517) 373-4980
    MINNESOTA
    Office of Child Support Enforcement,
    Department of Human Services
    P.O. Box 64946.
    444 Lafayette Road
    St. Paul, MN 55155–0946
    (651) 431-4400
    FAX: (651) 431-7517
    MISSISSIPPI
    Division of Child Support Enforcement,
    Department of Human Services
    750 North State Street
    Jackson, MS 39202
    (601) 359-4861
    FAX: (601) 359-4415
    MISSOURI
    Missouri Department of Social Services,
    Family Support Division
    P.O. Box 2320
    615 Howerton Court
    Jefferson City, MO 65102–6790

    (866) 313-9960
    FAX: (573) 751-0507
    MONTANA
    Child Support,
    Department of Public Health and Human Services
    3075 N. Montana Ave. Suite 112
    Helena, MT 59620
    (406) 444-9855
    FAX: (406) 444-1370
    NEBRASKA
    Child Support Enforcement,
    Department of Health and Human Services
    P.O. Box 94728 West Campus
    220 South 17th Street
    Lincoln, NE 68509–4728
    (402) 471-1400
    FAX: (402) 471-7311
    NEVADA
    State of Nevada,
    Division of Welfare and Supportive Services,
    Child Support Enforcement Program
    1470 College Parkway
    Carson City, NV 89706–7924
    (775) 684-0705
    FAX: (775) 684-0702
    NEW HAMPSHIRE
    Division of Child Support Services,
    Department of Health and Human Services
    129 Pleasant Street
    Concord, NH 03301–8711
    (603) 271-4427
    FAX: (603) 271-4787
    NEW JERSEY
    Department of Human Services,
    Office of Child Support Services
    P.O. Box 716
    Trenton, NJ 08625–0716
    25 Market Street
    Trenton, NJ 08611
    (877) 655-4371
    NEW MEXICO
    Child Support Enforcement Division,
    Department of Human Services
    P.O. Box 25110
    Santa Fe, NM 87504
    2009 S Pacheco Street
    Santa Fe, NM 87507
    (505) 476-7207
    FAX: (505) 476-7045
    NEW YORK
    New York State,
    Division of Child Support Enforcement
    40 N. Pearl Street-Room, 13th Floor
    Albany, NY 12243–0001
    (888) 208-4485
    NORTH CAROLINA
    Office of Child Support Enforcement,
    Department of Health and Human Services
    P.O. Box 20800
    Raleigh, NC 27619–8000
    3301 Terminal Drive
    Raleigh, NC 27604
    (919) 855-4755
    (919) 715-8174
    NORTH DAKOTA
    Child Support Enforcement Program,
    Department of Human Services
    P.O. Box 7190
    Bismarck, ND 58507–7190
    Provident Life Building
    316 N 5th Street, Suite 300
    Bismark, ND 58501
    (701) 328-3582
    FAX: (701) 328-6575
    OHIO
    Office of Child Support Enforcement,
    Department of Human Services and Job and Family Services
    30 East Broad Street 31st Floor
    Columbus, OH 43215–3414
    (614) 752-6561
    FAX: (614) 752-9760
    OKLAHOMA
    Child Support Services,
    Oklahoma Department of Human Services
    P.O. Box 248822
    Oklahoma City, OK 73124
    5709 N Kelley Avenue
    Oklahoma City, OK 73111
    (405) 522-2273
    FAX: (800) 522-2922
    OREGON
    Division of Child Support,
    Oregon Department of Justice
    1162 Court Street N. E.
    Salem, OR 97301
    (503) 947-4388
    (503) 947-2578
    PENNSYLVANIA
    Child Support Program,
    Bureau of Child Support Enforcement
    P.O. Box 8018
    Harrisburg, PA 17105–8018
    1303 N 7th Street
    Harrisburg, PA 17102
    (800) 932-0211
    FAX: (717) 787-9706
    PUERTO RICO
    Administration for Child Support Enforcement
    P.O. Box 70376
    San Juan, PR 00936–8376
    306 Edif. Plaza Barbosa
    San Juan, PR 00923
    (787) 767-1500
    FAX: (787) 282-8324
    RHODE ISLAND
    Office of Child Support Services,
    Department of Human Services
    77 Dorrance Street
    Providence, RI 02904
    (401) 458-4400
    FAX: (401) 458-4407
    SOUTH CAROLINA
    Child Support Enforcement Division,
    Department of Social Services
    P.O. Box 1469
    Columbia, SC 29202–1469
    3150 Harden Street Extension
    Columbia, SC 29203
    (803) 898-9210
    (803) 898-9201
    SOUTH DAKOTA
    Division of Child Support,
    Department of Social Services
    700 Governor's Drive
    Pierre, SD 57501–2291
    (605) 773-3641
    FAX: (605) 773-7295
    TENNESSEE
    Child Support Division,
    Department of Human Services
    400 Deadrick Street
    Citizens Plaza Building, 15th Floor
    Nashville, TN 37243–1403
    (615) 313-4880
    FAX: (615) 532-2791
    TEXAS
    Child Support Division,
    Office of the Attorney General
    P.O. Box 12017
    Austin, TX 78711–2017
    300 W 15th Street
    Austin, TX 78701
    (800) 252-8014
    FAX: (512) 460-6867
    UTAH
    Child Support Services,
    Department of Human Services,
    Office of Recovery Services
    P.O. Box 45033
    Salt Lake City, UT 84145–0033
    515 East 100 South
    Salt Lake City, UT 84102
    (801) 536-8500
    FAX: (801) 536-8509
    VERMONT
    Office of Child Support,
    Department of Children and Families
    103 South Main Street
    Waterbury, VT 05671–1901
    (800) 786-3214
    (802) 871-3000
    VIRGIN ISLANDS
    U.S. Virgin Islands Department. of Justice,
    Paternity and Child Support Division
    8000 Nisky Center, Suite 500, 2nd Floor
    St. Thomas, VI 00802
    (340) 775-3070
    FAX: (340) 775-3808
    VIRGINIA
    Division of Child Support Enforcement,
    Department of Social Services
    801 East Main Street, 12th Floor
    Richmond, VA 23219
    (800) 257-9986
    FAX: (804) 726-7476
    WASHINGTON
    Division of Child Support,
    Department of Social and Health Services
    P.O. Box 9162
    Olympia, WA 98507–9162
    6135 Martin Way E
    Lacey, WA 98507
    (360) 664-5000
    FAX: (360) 664-5444
    WEST VIRGINIA
    Bureau of Child Support Enforcement,
    Department of Health and Human Resources
    350 Capitol Street Room 147
    Charleston, WV 25301–3703
    (800) 249-3778
    FAX: (304) 558-2445
    WISCONSIN
    Bureau of Child Support,
    Division of Family and Economic Security
    P.O. Box 7935
    Madison, WI 53707–7935
    201 E Washington Ave
    Madison, WI 53703
    (608) 266-9909
    FAX: (608) 267-2824
    WYOMING
    Department of Family Services,
    Child Support Enforcement
    2300 Capitol Avenue
    Hathaway Building, 5th Floor, Suite C
    Cheyenne, WY 82002
    (307) 777-6948
    FAX: (307) 777-5588

3.17.46.6.11  (01-01-2011)
Regions

  1. Listed below are the Regional Offices.

    REGIONS
    REGION I
    Connecticut
    Maine
    Massachusetts
    Rhode Island
    Vermont
    REGION II
    New York
    New Jersey
    Puerto Rico
    Virgin Islands
    REGION III
    Delaware
    Maryland
    Pennsylvania
    Virginia
    West Virginia
    District of Columbia
    REGION IV
    Alabama
    Florida
    Georgia
    Kentucky
    Mississippi
    North Carolina
    South Carolina
    Tennessee
    REGION V
    Illinois
    Indiana
    Michigan
    Minnesota
    Ohio
    Wisconsin
    REGION VI
    Arkansas
    Louisiana
    New Mexico
    Oklahoma
    Texas
    REGION VII
    Iowa
    Kansas
    Missouri
    Nebraska
    REGION VIII
    Colorado
    Montana
    North Dakota
    South Dakota
    Utah
    Wyoming
    REGION IX
    Arizona
    California
    Hawaii
    Nevada
    Guam
    REGION X
    Alaska
    Idaho
    Oregon
    Washington

3.17.46.7  (01-01-2011)
Detailed NMF Notice Issuance Report

  1. A Detailed NMF Notice Issuance Report will be generated weekly. This report will serve as a useful management tool for:

    • Monitoring inventory,

    • Detecting processing trends, and

    • Ensuring timely mail out of notices

  2. The report will categorize by Form Type and provide a separate count of the First, Fourth and Annual Reminder notices issued. The First notice is governed by the 23C date for the given week whereas the Fourth notice is determined by the Fourth Notice Date Field.

  3. The total number of notices generated weekly, including a cumulative total for the calendar year are listed at the bottom of the report.

3.17.46.7.1  (01-01-2012)
Notices

  1. Form 6335 is the taxpayer's 1st notice generated from the ANMF system for accounts that have a balance due. Generation of the first notice is also dependent on an entry to the Notice Type field during the establishment of the account on the database.

    1. The appropriate notice statement will be generated on the Form 6335 based on the input to the NMF Statement Code field at the time the account is established on the ANMF System through the Original Assessment screen. See IRM 3.17.46.5.19 for Trust Fund Recovery Penalty processing.

    2. The system will not generate a notice for a balance due ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

      Note:

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

    3. Mail Form 6335 to the taxpayer according to the 23C date. A copy of Form 6335 will be routed to originator as appropriate.

    4. See figure 3.17.46-15, 3.17.46-16 and figure 3.17.46-17 for various examples of first notices.

    Figure 3.17.46-15

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

    Figure 3.17.46-16

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

    Figure 3.17.46-17

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  2. Date and mail all first notices to conform with the actual assessment date (23C date).

  3. Notice issuance for Quick and routine 23C assessments will follow a regular six week schedule after the first notice.

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. The fourth notice (figure 3.17.46-18) must be sent by certified mail. These notices will be hand carried from accounting to the shipping function. Cincinnati Campus must obtain labels with certified mail numbers from the local post office for mailing of these notices.

    Figure 3.17.46-18

    This image is too large to be displayed in the current screen. Please click the link to view the image.
    1. The notices will be maintained separately, certified and mailed by the shipping function.

    2. These notices will be inserted into an E14 mailer. It will not be necessary to prepare postal service Form 3577 for these notices.

    3. Information from each fourth notice must be maintained in a log by mailing services. A Certified Mail List is generated by the ANMF System with the fourth notices for this purpose. However, this listing can be used at Cincinnati's option if Mailing Services has an alternative method of recording this information.

  6. All notices bearing foreign addresses must be sent by registered mail. Use envelope E–3L "Airmail" , apply registered sticker and prepare postal service Form 2865. Since a separate log needs to be maintained for registered items, a Registered Mail List is generated by the ANMF System with the notices. Notices destined for U.S. Possessions must be sent in the E–142 mail envelope.

  7. If the account is a true NMF assessment (will not be transferred to a Master File) and is a Prompt, Jeopardy or Termination assessment, associate two copies of Form 6335 with the duplicate copy of Form 2859 with the TDA. If the account is a Trust Fund Recovery penalty Quick, Prompt or Jeopardy Assessment, forward two copies of Form 6335 and Form 2749 (parts 3 and 4) with the TDA to CSCO. See IRM 3.17.46.7.7 for TDA issuance.

  8. If an NMF return is received containing an increase in tax resulting from a mathematical error, enclose Notice 746, Information About Your Notice, Penalty and Interest., with parts 1 and 2 of Form 6335 to be sent to the taxpayer.

  9. Several types of assessments have an irregular time interval between the issuance of the first notice and other subsequent notices.

    1. Child Support Program—allows 60 days after the issuance of Letter 753(C) and Form 6335; if not fully paid within that time, a TDA will be systemically issued. See IRM 3.17.46.6.2 for special instructions.

    2. For assessments which include an increase of tax on certain returns because of a mathematical error—the fourth notice will be deferred for 12 weeks. A Form 3177 will be prepared to input a TC 470 to the ANMF System to delay notice issuance.

    3. Telephone Excise Tax—the second notice will be systemically deferred as prescribed in the special instructions in IRM 3.17.46.5.14.

    4. Suspension of subsequent notices for an indeterminate period may be directed by the Examination Division until all appeal rights have been exhausted for penalty assessments requested by Examination. Post a TC 470 to the account from a prepared Form 3177 and include as a history item.

  10. If a balance due notice is undeliverable or the taxpayer indicates an inability to pay, See IRM 3.17.46.7.5. Undelivered NMF Notices, for further instructions.

  11. Input of a "Y" to the POA field on the Original Assessment screen at the time the account is established this system indicator will generate a listing of NMF accounts on which any notice is being issued and a POA exists.

    1. This list will be used to research the CAF for the POA name and address. The CAF research should be conducted on all accounts shown on this listing each time the listing is generated. Since the Master File CAF is updated on a daily basis, NMF must conduct this research each time the listing is generated to insure the POA information is correct prior to mailing out the notices.

    2. If the account has already been established, only the DBA is profiled to update the account to include the POA indicator. The DBA will update the POA indicator through the NOTICE CORRECTION screen.

    3. Mail a photocopy of the notice to each authorized representative.

3.17.46.7.2  (01-01-2014)
ANMF Annual Reminder Notice For ANMF/NMF, Form 9774

  1. Form 9774 (Figure 3.17.46-19) is issued annually to remind taxpayers of a balance due on a tax module that has been in Currently Non-Collectible (CNC) status 24 (Collection Queue) and status 60 (Installment Agreement) on ANMF for 365 days or more. These notices will be generated weekly for mailout.

  2. A 5 percent review of all Forms 9774 must be done prior to mailout.

  3. Forms 9774 which full-pay the account will be routed to the Accounting function. Form 9774 may be used in lieu of Form 3244A Payment Posting Voucher. If a payment is received for more than one tax period Form 3244A will be prepared for each additional tax period. Payments will be numbered as follows:

    1. TC 670

    2. Doc. Code 27

    3. MFT, Blocking Series and Abstract Number will be determined by the Form indicated on the notice. If Form 9774 is received with a part-pay, photocopy the Form 9774 and route to Campus Customer Service/Collections function.

  4. All Forms 9774 that is undeliverable will be routed to Collections. If a new address is found, the Form 9774 will be returned for re-issuance. Collections will prepare Form 2363 as the source document for NMF to update the taxpayer's address.

    • Enter an "F" into the Notice Type field of the Correct Weekly Notice screen of the NMF database for accounts in status 53. The notice with a new notice date will be created during weekend runs if all other notice criteria are met.

    • Enter an "Z " into the Notice Type field of the Correction Weekly Notice screen of the NMF database for accounts in status 24, 53, and 60. Format and print using options (11) Reformat CNC and (16) reprint CNC on the NMF DBA Weekly Run/Print Menu. The notice will be created and printed immediately.

    Figure 3.17.46-19

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

3.17.46.7.3  (01-01-2011)
Annual Notice Flag List

  1. The Annual Notice Flag List will identify tax modules in status 24 Collection Queue, status 53 Currently Non-Collectible and status 60 Installment Status, that meet the criteria for issuance of the Annual Reminder Notice Form 9774, which contain an exception code for which a manual computation of interest and/or penalty accruals is necessary. Print the list each Monday. The list contains:

    • Notice Date

    • Exception Code (See IRM 3.17.46.1.10.)

    • TIN, MFT, Tax Period

    • Status

    • TC 530 date

    • Account Balance

  2. The Manual Interest and Penalty Update screen will be accessed by the DBA or other designated technicians to update the interest and penalty computations which will be generated on the notice.

  3. Select the Manual Interest and Penalty Update screen. The following input fields will appear:

    1. Account Key— enter TIN, MFT, Tax Period.

    2. Exception Code— enter "U" twice to update manual computation of penalty/interest accruals to ANMF.

    3. Interest— enter interest accruals

    4. Interest Date— enter interest "to" date

    5. Penalty— enter penalty amount

    6. Penalty Date— enter penalty "to" date.

  4. Input data to fields and enter. This will update accruals to the ANMF database.

  5. Reformat and Re-print notice selecting appropriate options from the NMF DBA Weekly Run/Print Menu. If the notice is not generated within the same week, it will have to be generated using the Alternative Notice Generation system.

  6. After issuance of the notice, Exception Code "M" must be replaced so that it will appear on future listings.

    Note:

    Exception Code "M" will prohibit the generation of notices and update of penalty and interest computations to ANMF.

3.17.46.7.4  (01-01-2011)
Status 53 Reports

  1. The Notice Yield and Issuance Report will capture the dollars collected resulting from the generated Annual Reminder Notice Form 9774 and identify the number of notices issued. The data will be cumulative.

3.17.46.7.5  (01-01-2014)
Undeliverable Non-Master File Notices

  1. All Forms 6335 that are undeliverable will be destroyed by Collection.

  2. If Form 4840 (4th notice, sent certified mail to the taxpayer) is returned as undeliverable, but a new address is found, then:

    1. Collection will send the new address to Accounting with a request to REMAIL the notice. At that time, Collection will prepare a Form 2363 as the source document for NMF to update the taxpayer's address through the Entity Change screen.

    2. If there is no new address for the undeliverable 4th notice, then Collection will request that Accounting accelerate to TDA status. Enter "address invalid" as a history item on IDRS so that the Revenue Officer is aware to look for another address.

    3. If the 4th notice is marked as "refused" by the taxpayer, Collection will inform Accounting of such so that Accounting will accelerate to TDA status.

    4. If an undelivered fourth notice is sent to NMF and is in TDA status, input "address invalid" as a history item on IDRS.

    Note:

    If a Form 6335 or Form 4840 needs to be reissued please refer to IRM 3.17.46.15.5, Notice and Account Corrections, for further instructions.

3.17.46.7.6  (01-01-2011)
Installment Agreement Statement

  1. Effective July 1, 2000, the IRS Restructuring and Reform Act (RRA 98) mandates that IRS provide the taxpayer and/or taxpayer's representative with an annual installment statement. Annual Installment Agreement Statement, Form 12379, will be sent to taxpayers who have an account that contains an unreversed Transaction Code (TC) 971 with Action Code (AC) 63. The ANMF system will not update the status on an account where a TC 480 or a TC 520 was input prior to reversing a TC 971 AC 63 Status Code 60.

    When a TC 480 (Status 71) or a TC 520 (Status 89) is received for input to the ANMF system:

    1. See if the account is in Status 60

    2. If no, input the TC 480 or the TC 520 to the account

    3. Identify the TC 971 AC 63 input date

    4. Enter a TC 972 AC 63 using the same input date as the TC 971 AC 63

  2. On the first Monday in July of each year the DBA will print an annual Installment Agreement (IA) Flag List with the related installment statements from the NMF database. All annual IA statements will be reviewed for accuracy of the penalty (P) and interest (I) computation.

    1. If the penalty and interest are correct, no action is necessary.

    2. If the P and I computations are incorrect, research the NMF account to see if a TC 160 is present and a 4th notice has been issued.

    3. If there is a TC 160 present and the 4th notice has been issued, compute the penalty and interest as usual.

    4. If no TC 160 is present and the 4th notice has not been issued, manually compute the failure to pay penalty at 1/4 percent using IDRS command code COMPA and compute interest as usual.

    5. Reformat the Annual IA statement. Enter an "I" into the notice type field and update.

    6. Reprint the annual IA statement.

  3. The alternative notice system will be used for accounts that have multiple assessments with the same TXPD/dummy TXPD for the same taxpayer. Combine all annual IA statements that have the same taxpayer identification number (TIN) and TXPD/dummy TXPD(s). P and I computations should be verified for accuracy prior to combining annual IA statements.

    1. Review the IA Flag List to identify accounts with the same TIN and TXPD/dummy TXPD(s).

    2. Match the related annual IA statements.

    3. Combine and total separately the beginning balances, additions, reductions, accrued penalties, accrued interests and ending balances from the related annual IA statements.

    4. The total of all beginning balances, additions, reductions, accrued penalties and accrued interests should be equal to the ending balance on the IA statement.

      Note:

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

    5. NMF Form 4840, Form 9774, and Form 12379 will include a detailed penalty and interest computation with each mailout.

  4. The as of dates for the account summary section of the statement are:

    1. Beginning Balance - the date one year or less prior to July 1 of the current year (whichever is greater)

    2. Additions - June 30 of the current year

    3. Reductions - June 30 of the current year

    4. Accrued Interest - date of most current accrued interest calculation

    5. Accrued Penalty - date of most current accrued penalty calculation

    6. Enter the dates, money amounts and literals from the individual annual IA statements into the Account Summary section of Form 12379. All transactions code explanations should be spelled out completely. Refer to Annual Installment Statement Literals below:

    TC DESCRIPTION DEBIT/CREDIT
    150 TAX DEBIT
    160 DELINQUENCY PENALTY DEBIT
    161 ABATEMENT OF DELINQUENCY PENALTY CREDIT
    200 TAXPAYER IDENTIFICATION PENALTY DEBIT
    201 ABATEMENT OF TAXPAYER IDENTIFICATION PENALTY CREDIT
    234 DAILY DELINQUENCY PENALTY DEBIT
    235 ABATEMENT OF DAILY DELINQUENT PENALTY CREDIT
    240 MISCELLANEOUS PENALTY DEBIT
    241 ABATEMENT OF MISCELLANEOUS PENALTY CREDIT
    270 FAILURE TO PAY PENALTY DEBIT
    271 ABATEMENT OF FAILURE TO PAY PENALTY CREDIT
    280 BAD CHECK PENALTY DEBIT
    281 ABATEMENT OF BAD CHECK PENALTY CREDIT
    290 ADDITIONAL TAX ASSESSMENT DEBIT
    291 ABATEMENT OF TAX ASSESSMENT CREDIT
    300 TAX DEFICIENCY ASSESSMENT DEBIT
    301 ABATEMENT OF TAX DEFICIENCY ASSESSMENT CREDIT
    310 TIP PENALTY DEBIT
    311 ABATEMENT OF TIP PENALTY CREDIT
    320 FRAUD PENALTY DEBIT
    321 ABATEMENT OF FRAUD PENALTY CREDIT
    340 RESTRICTED INTEREST ASSESSMENT DEBIT
    341 ABATEMENT OF RESTRICTED INTEREST ASSESSMENT CREDIT
    350 NEGLIGENCE PENALTY DEBIT
    351 ABATEMENT OF NEGLIGENCE PENALTY CREDIT
    360 FEES AND COSTS DEBIT
    361 ABATEMENT OF FEES AND COSTS CREDIT
    430 ESTIMATED TAX DECLARATION CREDIT
    610 REMITTANCE WITH RETURN CREDIT
    611 BAD CHECK RETURNED DEBIT
    612 REVERSAL OF PAYMENT WITH RETURN DEBIT
    640 ADVANCED PAYMENT CREDIT
    641 REVERSAL OF ADVANCED PAYMENT DEBIT
    650 FEDERAL TAX DEPOSIT CREDIT
    652 REVERSAL OF FEDERAL TAX DEPOSIT DEBIT
    670 SUBSEQUENT PAYMENT CREDIT
    671 BAD CHECK PAYMENT DEBIT
    672 REVERSAL OF SUBSEQUENT PAYMENT DEBIT
    680 DESIGNATED INTEREST PAYMENT CREDIT
    681 BAD CHECK INTEREST PAYMENT DEBIT
    690 DESIGNATED PENALTY PAYMENT CREDIT
    691 DESIGNATED PENALTY PAYMENT DISHONORED DEBIT
    694 DESIGNATED PAYMENT FEES CREDIT
    695 REVERSAL OF DESIGNATED PAYMENT FEES DEBIT
    700 CREDIT APPLIED CREDIT
    702 REVERSAL OF APPLIED CREDIT DEBIT
    710 OVERPAYMENT CREDIT APPLIED CREDIT
    712 REVERSED OVERPAYMENT CREDIT APPLIED DEBIT
    716 OVERPAYMENT CREDIT ELECT CREDIT
    730 OVERPAYMENT INTEREST APPLIED CREDIT
    731 REVERSAL OVERPAYMENT INTEREST APPLIED DEBIT
    740 REFUND CHECK REDEPOSITED CREDIT
    760 SUBSTANTIATED CREDIT ALLOWANCE CREDIT
    764 EARNED INCOME CREDIT CREDIT
    765 REVERSAL OF EARNED INCOME CREDIT DEBIT
    766 REFUNDABLE CREDIT ALLOWANCE CREDIT
    767 REVERSAL OF REFUNDABLE CREDIT ALLOWANCE DEBIT
    770 INTEREST DUE TAXPAYER CREDIT
    771 REVERSAL INTEREST DUE TAXPAYER DEBIT
    800 CREDIT WITHHOLDING AND FICA CREDIT
    802 REVERSAL OF WITHHOLDING AND FICA DEBIT
    840 REFUND DEBIT
    841 REVERSAL OF REFUND CREDIT
    850 OVERPAYMENT INTEREST TRANSFER DEBIT
    851 REVERSAL OF OVERPAYMENT INTEREST TRANSFER CREDIT
    860 REVERSAL OF ERRONEOUS ABATEMENT DEBIT

    Accounts which contain a TC 914 should not receive an annual installment statement.

3.17.46.7.7  (01-01-2014)
TDA Issuance

  1. If an assessment is a Jeopardy, Termination, Trust Fund Recovery penalty, or transferee/transferor or any other request for immediate assessments, establish the account using Notice Type "T" for Trust Fund Recovery Penalty or "Z" for all others.

    Note:

    Use an ANMF transcript to establish account onto IDRS following instructions in IRM 3.17.46.9.

  2. Systemic review of all accounts in notice status for which six (6) weeks have elapsed since the issuance of the fourth notice will systemically move to TDA status 22.

    1. If the taxpayer is not in TDA status, the system will search the Currently Not Collectible Account (53'd accounts, Account 1830) for taxpayers entities ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

      Note:

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

    2. All NMF accounts meeting TDA criteria must be loaded to an SB/SE Compliance site. See IRM 3.17.46.9.

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If circumstances warrant acceleration, such as the taxpayer wants an installment agreement, input a TC 971 AC 199, this will allow the account to be accelerated to Status 22.

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Weekly, the ANMF System reviews accounts in suspense status 89 to determine if further action is required. Claims/Adjustment Pending account transcripts generate 90 days after a TC 470 has posted. A TC 472 will systemically post after 180 days has elapsed.

    1. Non-Petitioning Spouse accounts do not have TDAs generated since the account will be suspended until subsequent advice is received from the Appeals Office to resume routine notices or abate account. Claim/Adjustment Pending transcripts will not be generated on Non-Petitioning Spouse accounts.

    2. A Claim/Adjustment Pending account transcript will also be generated if a TC 291 or TC 301 posts to an account in suspense status.

    3. Collection withheld (adjustment or credit pending, etc.) If 90 days have elapsed since Collection action was withheld, check with originator for updated status and further action. If the originator cannot verify that action will be taken in the near future, then notices should be issued.

  4. Unless excluded by immediate issuance, the account must be entered on IDRS prior to release of the TDA. Enter the TDA on IDRS expeditiously. Weekly, the ANMF System will generate TDA transcripts (Accounts Maintenance Transcripts) which are source documents for input to IDRS.

    1. Search IDRS files to determine if an account has been previously established for the entity; if not, establish both the entity and account for which the TDA is to be generated via ICS.

    2. If the entity has been established, enter the account data only.

    3. Use the weekly TDA 50 run, generated from the SB/SE sites to verify establishment of the account on IDRS.

  5. Route the Form 3210 and TDAs to CSCO for document association and review.

    1. If the account is under control of the Campus Criminal Investigation (TC 914 on the account or requested on Form 4135, Criminal Investigation Control Notice), prepare a photocopy of Form 3210, Request the related transcript and forward to the Campus Criminal Investigation Control function.

    2. If the TDA is for an airline tax protest account, prepare Form 3210, request the related transcript and forward to Protest Coordination Function for reporting purposes.

    3. Annotate on Form 3210 whether Form 4840 (Notice of Intent to Levy) was issued and the date issued.

  6. The DBA can accelerate the notice stream to transfer the account from notice to delinquent status.

  7. Some accounts under control of the Criminal Investigation Division (TC 914 posted to a Master File) will be transferred via Form 514-B by memorandum to NMF.

    1. Enter on NMF in the TDA status and enter on IDRS in the normal manner.

    2. Note in the Cross Reference section of the NMF account to transfer the account back to the original Master File once the account is fully paid.

3.17.46.7.8  (01-01-2011)
NMF ADDRESS Transcript

  1. An NMF ADDRESS Transcript will generate whenever an IMF or BMF address has been updated or when a change occurs to the Business Operating Division Code (BODC). These transcripts will be routed to the NMF function for updating the taxpayer's NMF account. It is important that these transcripts be worked expeditiously when received to ensure accuracy of the NMF database.

  2. In lieu of preparing Form 2363, the transcript may be used as the source document for posting the address change.

3.17.46.7.9  (01-01-2011)
Alternative Notice Generation

  1. An alternative method of producing all NMF notices should be adopted locally. We recommend a local personal computer (PC) application. Generally system down time would only effect the "daily" assessments, but, depending on the length of the system down time, weekly assessments may also be effected.

  2. If the system is down, the bill/notice can then be generated through the PC application and the assessments can be loaded on the ANMF system via the Load Old Accts/Transfer-in screen when the system becomes operational again.

    1. Use of the "Load" screen will provide a posting indicator of "L" which will show that the assessment was input at a later date than the 23C date.

    2. When finally establishing the assessment, the technician should input audit trail information to the Cross Reference screen as follows: "Notice generated prior to assessment due to system down time."

    3. The DBA should keep a permanent copy of the notice along with an account transcript as an audit trail of the alternative notice preparation.

  3. The PC based application should set up with a generic First Notice as follows:

    1. Page length of 66 lines.

    2. Margins set as Left 1 and Right 122 characters.

    3. Header will be on lines one and two beginning at position 1.

    4. Date of Notice set position 88 on line 3.

    5. Taxpayer Identification position 88 on line 5.

    6. DLN position 88 on line 7.

    7. Form position 88 on line 9.

    8. Tax Period position 105 on line 9.

    9. Taxpayer Names and Address position 1 on lines 10 through 13.

    10. Notice title position 36 line 16.

    11. First paragraph position 5 lines 18 and 19.

    12. Next paragraph position 5 lines 21 and 22.

    13. Type of Assessment all capital letters at position 15 line 24.

    14. Amount all capital letters at position 45 on line 24.

    15. Use lines 25 through 30 for the literal and dollar amounts of each literal.

    16. Third paragraph position 5 on lines 31, 32 and 33.

    17. Fourth paragraph position 5 on lines 35 and 36.

    18. Fifth paragraph position 5 on lines 38 and 39.

    19. Enclosures begins at position 1 on lines 46, 47, 48, and 49.

    20. Reply to starts at position 1 on lines 58, 59, 60 and 61.

    21. MFT/Tax Period begins at position 55 on line 63.

    22. Form 6335 begins at position 85 on line 64.

  4. The notices should be printed at pitch 15 or 16 depending on the printers capabilities.

  5. The only fill in information should be as follows:

    • Date of This Notice.

    • Taxpayers Identification Number

    • Document Locator Number

    • Form

    • Tax Period

    • Taxpayer Name and Address

      Note:

      the overflow line is only necessary if you have more than one line for the name or the address, otherwise it will not be needed).

    • The literal (see Document 6209 for the TC literal)

    • The corresponding dollar amounts for each literal

    • MFT/Tax Period

3.17.46.7.10  (01-01-2015)
Master File Entity Freeze TC 130

  1. To reduce erroneous refunds from the Master File (MF) when an outstanding balance is present on the NMF, a transaction code 130 will be automatically generated to the Master File at the time that the Individual (SSNs) NMF account is established. A tape will systemically match the NMF account against the IMF primary social security number posted on Master File. If no match is found, an unpostable will generate which will be forwarded to the NMF Function for resolution.

  2. The NMF function will conduct research of the NMF account and the Master File account utilizing the appropriate ANMF screen and IDRS command codes to search for an accurate SSN to post the transaction code 130. A transaction code 000 may be required to establish an entity for the Master File secondary spouse. Exceptions:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. Accounts with an Employer Identification Number (EIN) must be researched for a Large Corp indicator on IDRS using CC ENMOD or by ordering an entity transcript using CC MFTRA. If the indicator is present, notify the Technical Unit in the controlling campus that a NMF assessment has been made.

    3. Accounts with a notation to "prepare Form 3177" on Form 5403, Appellate Closing Record, require the input of TC 130 on the Master File even if there is also a notation to "withhold collection." These accounts will generate a first notice. Follow the procedures in (5) for completing the Form 3177, then forward the form to CSCO for input to the Master File.

  3. A systemically generated freeze will not occur on NMF accounts that are established with an Employer Identification Number (EIN), and EPMF or EOMF accounts, or on the Master File account of a secondary taxpayer.

  4. If the Master File Entity freeze (V-) is needed on a Master File TIN or other than the original primary TIN, then follow manual processing procedures when a first notice is generated from the ANMF system.

  5. Using both the Daily and Weekly NMF Accounts Flagged for Notices/TDAs list as the source document, prepare Form 3177 for each NMF account that has a first notice issued.

    1. Enter the appropriate information in the boxes for initiator, Date, Taxpayer Name, Taxpayer address and TIN.

    2. Enter transaction code 130 in the box marked "Other."

    3. Following other, list the DLN from the NMF account.

    4. Also list the MFT and Period Ending. If the NMF account carries a "Dummy" period ending, list the "True" period ending.

    5. Forward the Form 3177 to CSCO for input to the Master File.

    6. Monitor the account until the TC 130 posts on IDRS.

  6. Once a month, the ANMF system generates a NMF Accounts Purged to Closed listing when an NMF account becomes a zero balance account. Use this listing on a monthly basis for researching both the NMF database for other outstanding accounts and the Master File to verify whether or not the Entity Freeze is still in effect. Accounts will be flagged if no other open NMF account exists. They will also be flagged if the account has a zero balance due to a TC 400.

    1. If the freeze is still on the Master File and needs to be removed (no other outstanding NMF accounts for that particular taxpayer and it is not in status 99), prepare a Form 3177 to have CSCO input a TC 131 to the Master File account. A copy of the NMF purged list can be used in lieu of Form 3177, clearly notating each TIN, input TC 131.

    2. If the freeze is no longer on the Master File account, no further action is required.

    3. Check to insure that the NMF account on the Purge to Close List is not a zero balance due to a transfer (TC 400). If the account is on the Purge List due to a TC 400, do not release the freeze; no further action is required.

    4. Review accounts for an open TC 582. If open TC 582 is identified, see IRM 3.17.46.12.5 (2).

3.17.46.8  (01-01-2015)
Subsequent Transactions

  1. After preparing Form 813 and input of the Form 813 information on the ANMF System using the Form 813 Block Control screen, RACS will provide NMF with Form 813 and various posting documents.

    Note:

    A current ANMF transcript must be attached to each document coming to NMF for processing.

  2. Supporting documentation is required for processing NMF. All documents, forms or returns received in NMF as a "Subsequent Transaction" to be posted to the ANMF database MUST have" proper" supporting documentation attached. Proper supporting documentation accepted:

    1. Current NMF Transcript

    2. NMF Notice (Form 6335, Form 4840, Form 9774 etc.)

    3. Current NMF Screen Print (except for 5500 payments)

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

    Note:

    An "INOLE" print is NOT acceptable.

  3. Proper supporting documentation will identify if there is truly a NMF account posted. Supporting documentation attached to the posting documents will ensure timely processing of payments, refunds and abatements to the ANMF Database. Misapplied payments to NMF and MFT 74 (5500 accounts) has had a negative impact on the filer and is not cost effective to the Service.

  4. Any documents, forms, or returns coming to NMF without the proper supporting documents attached will be rejected and returned to the originator.

3.17.46.8.1  (01-01-2015)
Account 4430 Procedures

  1. The campus may choose to pre-search the system to confirm the existence of an NMF account to eliminate unpostable conditions. However, this is not always feasible due to the workload. Therefore, the following procedures apply even if pre-search is not accomplished and an NMF unpostable condition exists.

    1. Research both the open, closed, and archived NMF accounts.

    2. If no account is located on the NMF database, request research of the closed ULCs not loaded onto the database. If the ULC is located, input the ULC to the database through the LOAD Old Accts/Transfer-in screen.

    3. If unable to locate the account, return the document(s) to RACS to be journaled into the 4430 Account while further research is conducted.

    4. Maintain a spreadsheet or listing of documents journaled to 4430 Account for research and control purposes. Maintain an Open and Closed File.

  2. Prepare a file folder for each document and continue research for resolution. Annotate on 4430 Account History Sheet all actions taken. Listed below are some guidelines:

    1. NMF for delayed posting of assessment

    2. MF (both IMF and BMF)

    3. CC EMFOL and CC INOLE for entity information

    4. IDRS for correct TIN

    5. Unpostable (IMF and BMF)

    6. Contact preparer of document for additional information

      Note:

      Biweekly research must be conducted.

  3. Upon identifying the application for the payment, perform the following:

    1. Prepare One-Sided Form 2424 to Debit 4430 Account (upper portion) and Credit (lower portion) taxpayer's account for information purposes.

      Note:

      Any Form 2424 prepared in the Accounting operation must be reviewed and initialed by the employee's manger or designee before sending to be processed.

    2. Route both One-Sided Form 2424 and original payment document to RACS for journalization.

    3. Annotate spreadsheet with the journal number for proper audit trail.

    4. Maintain One-Sided Form 2424, history sheet, and attached journal in Closed 4430 Account File. Retain records in accordance with Document 12990, Records Control Schedules.

  4. If no account or Closed ULC is located after 45 days, request that RACS complete the following actions:

    Note:

    Form 1040NR fiduciary estimated tax payments may remain in 4430 Account for 120 days.

    1. Subsequent payments and other credits will be journaled from the 4430 Account to the 4620 Account, Unidentified Remittance File. Excess Collections, Account 6800, will be used for items over one year old (Refer to Excess Collections File, IRM 3.17.220). Prepare Form 2424 to Debit 4430 Account and Credit 4620. Prepare a One-Sided Form 2424 to Debit 4430 Account and Form 8758 to Credit 6800 Account.

      Note:

      Any Form 2424 prepared in the Accounting operation must be reviewed and initialed by the employee's manger or designee before sending to be processed.

    2. Debit items found applicable to Other Receivables will be journaled from the 4430 Account to Account 1510, Other Receivables, Regular, in accordance with IRM 3.17.64, Accounting Control General Ledger Policies and Procedures. Prepare Form 2424 to Credit 4430 and Debit 1510 Accounts.

    3. Attach 4430 Account History Sheet supporting completed research to the documents as backup for these journaled items.

3.17.46.8.2  (01-01-2011)
General Posting of Subsequent Transactions

  1. NMF will input the subsequent transaction(s) to the NMF account through the Subsequent Transaction Input screen. See IRM 3.17.46.13.14.

  2. If the subsequent transaction appears on the Unpostable Transaction List, see IRM 3.17.46.13.11 for resolution.

  3. If the account is in 22 status (TDA) or the TDA account is in status 89, then enter the subsequent transaction(s) on IDRS using the generated "IDRS Update List" (The NMF Subsequent Transactions to Accounts in TDA Status list).

  4. After posting subsequent transactions to the NMF account, the ANMF System will generate various Recaps which will be forwarded to RACS for journalization. Recaps will not be systemically generated for subsequent transactions when no journal action is required.

  5. Each month, the ANMF system generates the "NMF Postings for the Month of: MM/DD/YYYY" list which also contains subsequent transactions (with the related posting indicator) that have posted to the database.

3.17.46.8.3  (01-01-2011)
Campus Deposits

  1. Documents for payments received in the campus will be sorted at the time of deposit by tax class.

  2. When the Accounting package is received, enter the Form 813 information on the ANMF System using the Form 813 Block Control screen and forward Form 813 with the related documents to NMF for input to the NMF Account through the Subsequent Transaction screen.

  3. On delinquent status accounts, use the "IDRS Update List" for control and input to IDRS after posting transaction documents to the NMF account.

  4. If the payment was intended for Master File but has been numbered as an NMF item, process as instructed in subsection on Service Center Control File. See IRM 3.17.46.2.7.

  5. NMF will forward the Form 813 (part 2) and the related Recap(s) to RACS for journalization. See IRM 3.17.46.4.4.

  6. If the payment is identified as applicable to an account in another campus, do not remove the item from the Form 813 (part 2) total. This will be journalized as a credit in transit to other campuses.

3.17.46.8.3.1  (01-01-2014)
Payment Trace ID Number

  1. Effective January 1, 2008, all payment transactions, i.e., Deposit Tickets, require a Payment Trace ID Number as payments are processed through the various remittance processing systems including ANMF.

  2. This is a 20 character field as follows:

    Parts Characters Definitions
    Site ID NN SP Campus FLC or other Site ID
    System ID NN Defined as follows:
        01 - EFTPS
        02 - ISRP Payment Transactions
        05 - Lockbox Bank Transactions
        10 - State Income Tax Levy Program (SITLP) Levy Payments
        12 - External Leads
        15 - Receipt and Control Manual Deposits
        20 - RRACS Dishonored Check File (DCF) Debit Voucher (DV)
        25 - Accounting Deposit Ticket and DV
        30 - FTD Deposit Ticket/Debit Voucher

    Note:

    FTD has merged with EFPPS

        35 - IDRS IA User Fee Sweep
        40 - Automated Insolvency Manual DT
        45- Automated Offer in Compromise Manual DT
        50- ITIN
        55- Field Assistance Function (TAC)
    Deposit Date YYYYDDD Julian Date
    Seq Number NNN For each Deposit Date, begin with 001 and increment each additional Deposit by 1
    Transaction Seq Number NNNNNN or zero For each payment summarized in a Deposit Ticket, beginning with 000001, sequentially increment the Transaction Seq Number for each transaction
  3. ANMF has established the Payment Trace ID Number field for key entry after the Transaction Code field.

  4. The effective Transaction Date is January 1, 2008.

  5. The Payment Trace ID Number is input for the following Transaction Codes and their reversal:

    TC Reversal TC
    430 661, 662
    610 611, 612
    640 641, 642
    650 651, 652
    660 661, 662
    670 671, 672
    680 681, 682
    690 691, 692
    694 695
  6. If the Payment Trace ID Number is unavailable, and all necessary research has been conducted then "zero" fill this field. If the Payment Trace ID Number is missing the sequence number "zero" fill last six digits. Necessary research consists of:

    1. Pulling document and reviewing for Payment Trace ID Number

    2. Research MF and ANMF

    3. Contacting sending sites of Form 2158

      Note:

      Only OIC, FTD, and DOJ (received by IPAC) payments should be "zero" filled. When the PTI field is "zero" filled a history item is required to explain the action.

  7. DO NOT input the Payment Trace ID Number on Credit Elects, Offsets, and other Dummy Credit Transactions.

  8. This information is mandatory for proper financial accounting for GAO audits.

3.17.46.8.4  (01-01-2011)
Other Transactions

  1. Receive various documents which affect the status, entity or balance of an NMF account. These include abatements of tax, penalty or interest, debit or credit transfers, account transfers, dishonored checks, statute extensions, etc. This is not an all inclusive list.

    Note:

    Timely processing of documents to the taxpayer's account is imperative to benefit the taxpayer and other functional areas by providing accurate data of the taxpayer's account and preventing erroneous notices. Documents such as Form 1331/1331B, Form 2158, Form 2424, Form 3244, and Form 3809 have a 6 work day processing cycle in accordance with the IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates.

  2. All documents coming to NMF for posting MUST have proper supporting documentation attached in accordance with IRM 3.17.46.8.

  3. RACS may receive Form 5147, IDRS Transaction Record, or other various documents.

  4. If the document is not numbered, RACS will ensure that a DLN is assigned to the document compatible with the related transaction codes. All transactions input to the database must have a valid DLN.

  5. RACS will prepare Form 813, input the information using the Form 813 Block Control screen and forward the Form 813 and the related documents to NMF. Form 813 prepared for entity changes or accounts transferred-in are not input through the Form 813 Block Control screen.

  6. NMF will input the transaction documents as follows:

    1. If the transaction code is for an entity change, input using the NMF Entity Changes screen.

    2. If the transaction code was pre-journalized for other than "dailys" , then the transaction must be input through the Load Pre-Journaled Transaction screen.

    3. All other transactions will be input using the Subsequent Transaction Input screen.

    Note:

    Debit and/or Credit money should never be entered from the Form 813. Always use the return or document to input money amount.

  7. After posting to the database, forward Form 813 (part 2) and the related Recap(s) to RACS for journalization.


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