3.17.46  Automated Non-Master File Accounting

Manual Transmittal

October 09, 2013

Note:DO NOT REMOVE AND INSERT PAGES OR DISPOSE OF OBSOLETE TRANSMITTALS PRIOR TO 01–01–2014

Purpose

(1) This transmits an revised IRM 3.17.46 Accounting and Data Control, Automated Non-Master File Accounting.

Material Changes

(1) Various editorial changes throughout text

(2) Added Note to IRM 3.17.46.1.9(31) that the FTD (Federal Tax Deposit) system has been merged with EFPPS (Electronic Federal Payment Posting System)

(3) Updated IRM 3.17.46.5.20(3) to include instructions for splitting an account when a unreversed TC 534 is present on an account being transferred in

(4) Updated table in IRM 3.17.46.5.20.1(4) to reflect changes for transaction codes: TC 380, TC 386, TC 534, TC 535, and TC 537

(5) IPU 13U0944 issued 05-17-2013 IRM 3.17.46.5.28(5) Removed Form 8288A credit verification instructions

(6) IPU 13U0944 issued 05-17-2013 IRM 3.17.46.5.28(7) Added Note stating credit elect should remain on the account until the return it is intended for is received

(7) IPU 13U0944 issued 05-17-2013 IRM 3.17.46.5.28(10) Removed Form 3809 will be prepared to post TC 800 (withholding credit)

(8) IPU 13U1251 issued 07-18-2013 IRM 3.17.46.5.33(1) Removed note due to programming issues Form 4720A will revert back to NMF processing

(9) Updated IRM 3.17.46.6.9, Addresses of HHS Offices - Child Support Assessments with current addresses

(10) Updated IRM 3.17.46.6.10, CSO State Agency Addresses with current addresses and phone numbers, and removed Director's names

(11) Added instruction to IRM 3.17.46.7.2(4) for reprinting of Form 9774, ANMF Annual Reminder Notice

(12) Added Note IRM 3.17.46.7.5(2) 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

(13) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(14) Updated Payment Trace ID Number table in IRM 3.17.46.8.3.1(2) to include Site ID 12 - External Leads

(15) Added Note to IRM 3.17.46.8.3.1(2) that FTD has merged with EFPPS

(16) IPU 13U0944 issued 05-17-2013 IRM 3.17.46.11.4(2)f Added if research discloses that the credit is a credit elect for a future NMF return, than the credit should remain on the account until the return that the credit elect is intended for is received

(17) IPU 13U0237 issued 01-30-2013 Added Note to IRM 3.17.46.11.4(3) that NMF transcript may be used in lieu of Form 2007

(18) IPU 13U0237 issued 01-30-2013 Revised IRM 3.17.46.12.4(2) and (3) to add procedures for the manual input of TC 607 or TC 609, and remove obsolete From 7831 and replace with NMF transcript

(19) IPU 13U0237 issued 01-30-2013 Revised IRM 3.17.46.13.11(24) to remove obsolete Form 7831 and replace with NMF transcript

(20) Updated IRM 3.17.46.15.5(8) to include F to re-issue annual reminder notice (status 53 only), and Z to reissue and print immediately a first, TDA, and annual reminder notice

(21) IPU 13U0434 issued 02-28-2013 Revised Exhibit 3.17.46-2, Load Account-Field List, to remove status 20, second notice, and status 56 third notice

Effect on Other Documents

IRM 3.17.46, Automated Non-Master File Accounting, dated November 14, 2012 (effective January 1, 2013) is superseded. The following IRM Procedural Updates (IPUs) issued from January 30, 2013 through July 18, 2013 have been incorporated into this IRM: SERP IPU 13U0237, 13U0434, 13U0944, and 13U1251.

Audience

Cincinnati Submission Processing Campus

Effective Date

(01-01-2014)

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

3.17.46.1  (01-01-2011)
Purpose

  1. This IRM provides instructions for the accounting and data control of Non-Master File (NMF) accounts using the Automated Non-Master File (ANMF) system.

3.17.46.1.1  (01-01-2011)
General

  1. Non-Master File (NMF) accounts are a collection of revenue accounting transactions whose sole purpose is to provide a means for the assessment of taxes and collection of revenue.

    1. Non-Master File is a system of accounting which provides for not only outstanding liabilities but for all types of return and tax adjustment processing.

    2. The account reflects an assessment of tax from a return or other source document and of itself may not represent the entire liability for a tax period. An additional tax assessment is established on the NMF database as a separate account.

    3. Under the manual system, the only control compilation of all actions relating to a taxpayer were Index Cards maintained in alphabetical order by Returns files. An Index Card was prepared for each return, abatement or assessment. Under the Automated Non-Master File (ANMF) system, all NMF actions relating to an established account are accessed through the Research screen using the taxpayer's primary key: taxpayer identification number (TIN), Master File Tax (MFT) and tax period. All NMF activity which is not processed through the ANMF system will continue to be indexed.

  2. Non-Master File processing provides an essential outlet for the Master File Automated Data Processing (ADP) system.

    1. It permits the rapid implementation of new tax laws that may require extensive modifications to the ADP system for which time or resources may not be available in order to timely make the changes.

    2. It permits the processing for those accounts which have an excessive number of transactions for the Master File to systemically handle.

    3. It permits the processing for those accounts which have an account balance too large for the Master File to systemically handle.

    4. It provides for immediate, legal assessments (within 24–36 hours), for those instances when the Master File would be too slow to post the assessment (4–6 weeks).

    5. Split Assessment Accounts – Accounts that were originally on the Master File as a joint entity with an action taken that affects only one spouse. i.e., an accepted offer in compromise, innocent spouse and bankruptcy on one taxpayer.

      Note:

      All Split Assessment accounts are now processed on the Individual Master File under MFT 31. A majority of accounts previously established on NMF were transferred to MFT 31 from September 2004 through December 2005.

    6. Reversal of Erroneous Abatements-Accounts that require reversal of erroneous abatements when the assessment statute expiration date (ASED) has expired.

    7. Processing Employee Plans and Exempt Organization Master File accounts.

      Note:

      All Form 5330 and Form 5500 Penalty Assessments are now processed on the Business Master File.

    8. Processing of Full Collection Child Support accounts.

3.17.46.1.2  (01-01-2011)
Non-Master File Centralization

  1. As of September 22, 2006, all NMF processing has been centralized in the Cincinnati Submission Processing Campus (CSPC).

3.17.46.1.3  (01-01-2011)
Non-Master File Theory

  1. Non-Master File assessments (IRC 6201) are made as remainder assessments. The term "Remainder Assessments" means that any credits that were previously assessed such as Withholding (previously assessed on the Form 941 return), Estimated Tax Credits (previously assessed on the Declaration of Estimated Tax), Gasoline Tax Credits (previously assessed on the Form 720 return) etc., are used to reduce the liability prior to assessment. The remainder amount is then the assessment amount.

  2. Prior to October 1, 1996, the distinction was made between "Even Returns," "Refund Returns" and "Full Paid Returns." The Index Card Database was used to post "Even" and "Refund" returns. These procedures no longer apply. All NMF assessments are now posted to the ANMF database. The only return information that is now processed to the Index Card System are Non-Remit Extensions of Time to File and Information Only returns.

  3. Supplemental assessments (IRC 6204) of tax liability plus penalties and interest are determined by Accounts Management, Collection, Appeals, Tax Exempt/Government Entities (TE/GE) or by the Examination function. Returns on which additional assessments have been determined will bear a Form 2859, Request for Quick or Prompt Assessment, or Form 5403, Form 5344, Form 5599, Form 5650, Form 5734, Form 8278, etc. The source document will indicate the tax liability to be assessed plus any interest or penalties to be assessed and will show the assessment document locator number (DLN).

    1. Additional assessments are made and journalized for the full amount shown on the label or assessment document. These assessments will not be posted to an existing NMF account. A new NMF account will be established using a new DLN.

    2. Accrual assessments of penalty, interest or collection costs will be posted to the existing NMF account as subsequent transactions.

  4. Over-assessments may be determined by Adjustments tax examiners, the Examination function, TE/GE or Appeals. Over-assessments are declared when it is determined that the total correct liability is something less than the previously determined total liability.

  5. When an over-assessment is determined, priority for application of the credit created by the over-assessment will be as follows:

    1. Abatement of the outstanding amounts created from the assessment document.

    2. Credit to any other outstanding liabilities for the same taxpayer for any taxable periods. The credit would be applied by the collection statute expiration date. The oldest 23C date will be paid first.

    3. Refund of any excess amount that is not needed for one or two above.

  6. Overpayments occur in Non-Master File when the total payments received from the taxpayer exceed the assessed amounts on the account including any accruals to be assessed. Overpayments will result in an account with an outstanding credit balance.

    1. When a credit balance is on the account, research is done to determine if the credit is needed on some other NMF account or MF account for the same taxpayer.

    2. If the credit is needed, a Debit and Credit Adjustment Voucher, Form 2424 and Form 3809, is prepared to transfer the credit to the account with an outstanding liability.

  7. Priority for application of the credit created by the overpayment will be as follows:

    1. Credit to any other outstanding liabilities for the same taxpayer for any taxable periods. The credit would be applied by collection statute expiration date. The oldest 23C date will be paid first. If the credit is needed, a Miscellaneous Adjustment Voucher, Form 3809 or an Account Adjustment Voucher, Form 2424 should be prepared to transfer the credit to the account needing the credit.

    2. Refund of any excess amount, a Form 5792, Request for IDRS Generated Refund, or Form 3753, Manual Refund Posting Voucher, should be used to issue the refund. Appropriate supporting documentation should be attached and forwarded to Accounting.

  8. Refund Check Cancellations

    1. Occasionally NMF checks are returned for cancellation. This is usually because an additional assessment has been made, the taxpayer wishes the proceeds to be applied to some other account or the taxpayer believes the tax computation is not correct. These cancelled checks become credits to be applied. Application could be to an additional assessment, to some other taxes the taxpayer owes or to some additional assessment that is yet to be made. If correct application cannot be determined at the time of cancellation, the credit should be controlled in Account 4970 (Unapplied Refund Reversals) until the proper application is determined, but no longer than one month.

  9. Undelivered Refund Checks

    1. Refund checks are undeliverable by the Post Office at times. These checks are returned to the Disbursing Office which in turn prepares a Consolidated Listing of NMF Checks (prior to 1986, Form 1664X, Undelivered Refund, were prepared) and a Form 1098 (Schedule of Cancelled Checks) for cancellation. These documents are forwarded to the campuses. A file of all Consolidated Listings are maintained by the Refund Inquiry function.

    2. See IRM 21.4, Refund Inquiries, for further instructions to process undelivered refund checks.

  10. Certified Transcripts

    1. The taxpayer return is considered the account. Original assessments, additional assessment labels, overassessment labels and original refund amounts will be reflected on the return. The NMF account is considered the account receivable record which reflects assessment and subsequent payment transactions.

    2. To make certified transcripts of NMF accounts, the return should be obtained first. If the return was full paid at the time of processing or if there is an assessment label on the return an NMF account was created for this return. Research the ANMF system and/or the closed Unit Ledger Cards (ULC) for information such as subsequent payments, accruals and other transaction postings. The original return together with any NMF account transcript or Index Card creates the entire taxpayer's account.

    3. If the return was an even return this information can be determined from the return or the Index Card.

    4. If the return was a refund return, verify the refund from the refund schedule, Form 1166 OCR.

3.17.46.1.4  (01-01-2011)
NMF Research Concepts

  1. The following are concepts needed to adjust or certify NMF accounts:

    1. The tax return or source document (such as a Form 5734, Non-Master File Assessment Voucher or Form 2859, Request for a Quick or Prompt Assessment) reflects all major activity that affects the original assessment. For example, if a tax return is audited by Examination, a Form 2859 will be attached to the return. The return is renumbered to reflect a "47" document code. Prior to NMF automation, a Unit Ledger Card would have been established under the manual system for the assessment. An assessment label would also be affixed if the assessment resulted from a DP (Data Processing) tax adjustment.

    2. If an examination or adjustment to the original assessment on the return results in an abatement of tax a Form 1331/1331B, Notice of Adjustment, is used to abate tax, penalty, and interest. Every Form 1331/1331B, is given a schedule number. The schedule number is a number which identifies and controls an overassessment of tax. The first four digits of the schedule number identifies the year and cycle in which a Form 2188, Voucher and Schedule of Overpayments and Overassessments, was signed by the certifying officer. Form 1331/1331B are filed in schedule number sequence, usually behind the Form 2188 on which it was certified. An Index Card was prepared for each Form 1331/1331B certified. Now that accounts are established on the NMF database, the renumbered DLN of the return can be secured by researching the transaction section of the account.

  2. Prior to NMF automation, ULCs were prepared only for returns which indicated a balance due. Full paid or non-taxable returns did not have a ULC prepared. Instead, a Form TY–32, Index Card, was prepared. Index Cards contained the taxpayer name, Taxpayer Identification Number (TIN), MFT, tax period, type of tax, and DLN of the assessment or adjustment document and were sent to Return Files. They were the central research point for obtaining the DLN to request the return or source document since all actions (other than subsequent transactions) resulted in an Index Card. Consequently, the "Index File" must still be researched prior to account certification or performing an adjustment, to insure that an adjustment is not duplicated.

  3. Index Cards were not prepared for subsequent transactions. These actions were posted on the ULC and the source documents were filed in Block Slips (Form 2547). Research was done by locating the block slip control number referenced on the ULC.

  4. Since NMF automation, NMF returns, assessments and adjustments are contained on the database. "Information Only" returns, and NMF No-Remit Extensions of Time To File, are not input to the ANMF system. They will require preparation of Index Cards. The database will contain all 1300 accounts (including status 89), 1324 accounts (below Taxpayer Delinquent Account deferral), 1360 (installment agreement) and 1830 accounts (including reactivated 53'd accounts). However, the related Index Cards for the converted ULCs will not be loaded onto the database and must continue to be manually researched through Returns Files.

3.17.46.1.5  (01-01-2013)
Strengthen Management Controls

  1. In accordance with Management Accountability Review (MAR) regulations, managers are responsible for ensuring that internal controls are effective and efficient in day-to-day operations and safeguard against waste, fraud and abuse. This is accomplished by conducting operational or management control reviews to identify weaknesses and mitigate known risks within the managers realm of responsibility.

  2. Managers must also perform program or "spot" reviews of incoming work for accuracy and completeness. Problems identified should be discussed with the appropriate functional area for corrective action.

  3. "Spot Reviews" of both incoming and outgoing work processed in the NMF function must be done weekly by the manager.

  4. At least one program review must be performed each quarter by the manager.

3.17.46.1.6  (01-01-2011)
Separation of Duties

  1. Key duties and responsibilities in authorizing, processing, recording and reviewing transactions are separated among individuals. Duties need to be divided or segregated among different people to reduce the risk of error or fraud. No one individual should control all key aspects of a transaction or event. Separation of duties is necessary to maintain the integrity of the NMF database.

  2. The duties and responsibilities of the NMF Account Specialist are identified in IRM 3.17.46.14.

  3. The duties and responsibilities of the NMF Database Administrator (DBA) are identified in IRM 3.17.46.15.

  4. Periodic reviews will be conducted to ensure that standards for internal control in the federal government are built into daily operations.

3.17.46.1.7  (01-01-2013)
Related Internal Revenue Manuals

  1. The following IRMs provide instructions for the actual terminal input to Integrated Data Retrieval System (IDRS).

    1. IRM 2.4 IDRS Terminal Input

    2. IRM 2.4.9 Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG.

    3. IRM 2.4.11 Command Code NMFTM

    4. IRM 2.4.14 Command Code NMFST

  2. The following IRMs provide additional instructions for NMF processing.

    • IRM 20.1, Penalty Handbook

    • IRM 20.2, Interest

    • IRM 21.4, Refund Inquiries

    • IRM 21.7.12, Non-Master File (NMF) Adjustments

    • IRM 25.6, Statute of Limitations

    • IRM 3.11.25, Miscellaneous Tax Returns

    • IRM 3.17.21, Credit and Account Transfers

    • IRM 3.17.30, SC Data Controls

    • IRM 3.17.41, Accounting and Operating Reports

    • IRM 3.17.63, Redesign Revenue Accounting Control System

    • IRM 3.17.64, Accounting Control General Ledger Policies and Procedures

    • IRM 3.17.79, Accounting Refund Transactions

    • IRM 3.17.80, Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations

    • IRM 3.17.243, Miscellaneous Accounting

    • IRM 3.17.244, Manual Assessments

    • IRM 3.24.37, General Instructions

    • IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates

    • IRM 4.4, AIMS Processing

    • IRM 8.20, Appeals Case Processing Manual

    • IRM 10.5.3, Identity Protection Program

    • IRM 10.5.4, Incident Management Program

    • IRM 13, Taxpayer Advocate Service

3.17.46.1.8  (01-01-2011)
Security Over Taxpayer Information, Returns and Documents

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

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

3.17.46.1.9  (01-01-2014)
Glossary of Accounting Terms

  1. ABATEMENTS: To reduce an assessment of tax, penalty, or interest, when determined the assessment is incorrect. Abatements require the signature of the Certifying Officer and are supported by the legal document: Form 2188, Voucher and Schedule of Overpayment and Overassessment.

  2. ABSTRACTS: The detailed breakdown of revenue receipts within the 7 major tax classes, particularly within the Excise Classification. Abstracting identifies the specific type of tax collected and directs it to the proper appropriation account set by Congressional Act.

  3. ADVANCE PAYMENT: A payment made for an anticipated predetermined deficiency prior to the actual additional tax assessment.

  4. ALCOHOL, TOBACCO AND FIREARMS (AT&F): A bureau within the Treasury Department with responsibility for monitoring the manufacture and sale of Alcohol, Tobacco and Firearms.

  5. AREA OFFICE: An office of IRS located in a principal city for each state.

  6. ASSESSMENT: Amount of tax, interest or penalty charged to a taxpayer.

  7. ASSESSMENT CERTIFICATE: To impose a tax as authorized by the Internal Revenue Code. Assessments are supported by a summary record of assessment signed by an appointed assessment officer.

  8. AUDIT TRAIL: Control of source documents, cross reference from one type of action to another to provide a means for retrieval.

  9. BALANCE DUE: Amounts of tax, interest, penalty or other receivables that remain unpaid.

  10. BANKRUPTCY: When a discharge of debt is granted by the court, it relieves the debtor of any personal liability of the debt. A discharge does not affect all debt. In joint liability cases, if only one spouse is discharged of the debt then the other is not affected by the discharge and remains liable.

  11. CALENDAR YEAR: Twelve consecutive months ending December 31.

  12. COMMAND CODE (CC): A five or six character code used to initiate contact with IDRS.

  13. COMPUTER PARAGRAPH NOTICE (CP): A computer generated message, which generates a notice resulting from an analysis of the taxpayer's account, used to notify the taxpayer of a balance due, refund, or no balance status.

  14. CREDIT BALANCE: A condition in which the amounts of credit on a tax account exceed the balance due.

  15. CULPABLE SPOUSE: During the examination of a joint return, if a culpable party is determined, Examination/Appeals will prepare assessment documents to assess the culpable spouse. This type of assessment is processed to the Individual Master File (IMF) MFT 31.

  16. DAILY ASSESSMENTS: An assessments which is prejournalized.

  17. DATA CONTROL: Procedures designed to put all documents under control to assure that all documents are processed.

  18. DEBIT BALANCE: A condition in which the balance due exceeds the total amount of credits.

  19. DEPOSIT DATE: The calendar date coinciding with the Julian Date in the DLN.

  20. DEPOSIT FUND COLLECTIONS: Account established to control receipts held in suspense, pending some other action.

  21. DEPOSIT TICKET: The form the Deposit Function is required to prepare to deposit each day's balanced remittances.

  22. DISHONORED CHECKS: Depositories return unprocessable checks to our Accounting Branch by charging these items against the Treasury General Account (TGA) as unpaid checks—these charge backs are due to the Deposit Function's erroneous encoding, lack of encoding, taxpayer insufficient funds etc.

  23. DOCUMENT: A business form, voucher, or written evidence of a transaction.

  24. DOCUMENT CODE: The fourth and fifth digits of the DLN which identify the type of document used to record tax data information on a taxpayer's account. For example, doc. code 41 identifies Form 941, Employer's Quarterly Federal Tax Return. Refer to Document 6209, IRS Processing Codes and Information, for a complete listing of doc. codes.

  25. DOCUMENT LOCATOR NUMBER (DLN): A fifteen digit number assigned to every return and document input through the ADP system that affects a taxpayer account. The document locator number is used to identify and locate the document.

  26. DOCUMENT REGISTER: A numerical listing of each item in a block of returns or documents. It is used as a transmittal on each block of remittance documents. Part 3 or a photo copy of the Form 813 is used to create the Master Control Record (MCR) on the Service Center Control File (SCCF). The Form 813, part 2, is used to clear the SCCF.

  27. DUE DATE: Prescribed date on which a calendar or fiscal year return must be filed.

  28. DUMMY TAX PERIOD ENDING: A 3000 series tax period ending used to establish an account on the ANMF system when that account already exists on the database causing a duplicate Primary Key condition. When establishing an account with a "dummy" tax period, be sure to input the actual period ending date of the assessment into the Actual Period Ending Date field of the entity.

  29. EMPLOYER IDENTIFICATION NUMBER: A nine digit number used to identify a taxpayer's business account.

  30. ENTITY AREA: The face of an input document where the name, address, account number, tax period and other entity data may appear.

  31. FEDERAL TAX DEPOSIT (FTD): A system whereby taxpayers are required to make deposits of trust fund monies through local or commercial banks. These deposits are forwarded to Treasury which prepares a special Certificate of Deposit and places each item on a magnetic tape. These tapes are then shipped to Enterprise Computing Center at Martinsburg (ECC-MTB) for posting to the taxpayer's account.

    Note:

    The FTD system has been merged with the EFPPS (Electronic Federal Payment Posting System).

  32. FILE LOCATION CODE (FLC): The first two digits of the DLN assigned to identify the district office related to the processing campus.

  33. FISCAL YEAR (FY): Twelve consecutive months ending on the last day of any month other than December.

  34. FREEZE CODE: A code restricting the Master File from refunding or offsetting from an account.

  35. GOOD BLOCK PROOF (GBP): Part 2 of the Form 813 is used to clear the NMF DLN from the SCCF. This is referred to as a Good Block Proof (GBP).

    Note:

    As of January 2007, an ANMF/SCCF Interface provides for the systemic posting of Good Block Proof Records to clear the NMF SCCF.

  36. INNOCENT SPOUSE: When assessments are proposed against a joint account, one spouse may claim they had no knowledge of the filed return/information. If a determination is made in favor of the "innocent spouse," tax adjustments are made separately on IMF MFT 31 for the portion determined for each spouse.

  37. INTEGRATED DATA RETRIEVAL SYSTEM (IDRS): A computer system with the capability to instantaneously retrieve or update stored information which works in harmony with our Master File of taxpayer accounts. This system is aimed at quick resolution of problems and queries concerning current taxpayer accounts. It also furnishes information immediately for IRS personnel in their work assignments.

  38. INTEGRATED SUBMISSION AND REMITTANCE PROCESSING SYSTEM (ISRP): Replacement of the Distributed Input System (DIS) and Remittance Processing System (RPS) which interfaces with the computer room for processing returns and remittances to the Master File.

  39. JOURNALIZATION: The process of debiting and crediting General Ledger accounts. Every tax transaction that involves money must be journalized to maintain accounting control.

    Note:

    Effective May 2006, an ANMF/RRACS (Redesign Revenue Accounting Control System) Interface provides for the internal (batch) journalization via RRACS to the various General Ledger accounts.. See IRM 3.17.46.1.10 (20). for ANMF SC RECAP description

  40. JULIAN DATE: A system of numbering the days of the year from 001 through 365 (or 366) and used as the 6th, 7th and 8th digits of the DLN.

  41. MASTER FILE: Subsidiary records of taxpayers' accounts established and maintained on magnetic tape at the ECC-MTB.

  42. MASTER FILE TAX CODE (MFT CODE): A two digit number which identifies the type of tax.

  43. MASTER CONTROL RECORDS (MCR): A tape is created from part 3 or a copy of Form 813. This tape will create the MCR on the SCCF.

  44. MICROFILM: A media to provide photographic records to printed data on a reduced scale.

  45. MM/DD/YYYY: The eight digit format which identifies the month, day, and year, i.e., January 03, 1986 will be 01/03/1986.

  46. NAME CONTROL (ALSO REFERRED TO AS ALPHA): The first four letters or hyphens of the principal name of the taxpayer. Blank spaces will be included if the principal name consists of less than four characters.

  47. NON-MASTER FILE: Subsidiary records of taxpayers accounts which are not established and maintained on one of the Master Files. They were manually maintained for the liability period on Unit Ledger Cards prior to the ANMF System and are now maintained on the database since the automation.

  48. NON-REMITTANCE (N/R): Returns and documents received without a payment or an unacceptable form of payment are processed in the Non-Remittance Numbering Function and the assigned DLN Julian Date is a week-end date.

  49. OFFER-IN-COMPROMISE: A proposal for settlement of tax liability for an amount less than that previously assessed (or unassessed) or a liability for specific penalties assessed (or unassessed).

  50. PERIOD ENDING: The ending year and month indicating the period covered by a tax return, e.g., 8609 indicates a return for the period ended September 30, 1986. For the ANMF system, an eight digit field in MMDDYYYY format.

  51. PETITIONING/NON-PETITIONING SPOUSE: When a statutory notice of deficiency has been issued on a joint return and only one spouse petitions the U. S. Tax Court, assessments will be made against the non-petitioning spouse and processed through IMF MFT 31.

  52. POSTING VOUCHERS: Various procedures require the Deposit Activity to prepare a source document (posting voucher) containing all the required information for input.

  53. PRESEARCH: The act of searching for required data not present on the source documents via the IDRS or ANMF terminals prior to the actual deposit of the remittance.

  54. RECAPITULATION: Balancing the summaries of remittances to the documents.

  55. RECONCILIATION: Resolving discrepancies within the total document count and money amount for each block.

  56. REFUND: Money returned to the taxpayer as a result of overpayment of a tax liability.

  57. REIMBURSABLE PROJECTS: A projects for which IRS is paid to perform the actual processing of other agencies' data.

  58. REJECT: A return or document determined to be unprocessable because of missing data, erroneous blocking, or incomplete information. The document is coded to reject by tax examiners and is placed on reject registers for correction by error perfection groups.

  59. REMITTANCE AMOUNT: An amount of money received in payment to taxes—may be a check, money order, cashier's check, or cash.

  60. REVENUE RECEIPTS: Monies collected in payment of tax liabilities. The net totals of Accounts 2100 and 2200.

  61. SEIZED PROPERTY: Circumstance(s) sometimes requires IRS to take possession of a delinquent taxpayer's property and sell it for payment of back taxes.

  62. SERVICE CENTER CONTROL FILE (SCCF): A Magnetic Tape Control System to record the receipt of Returns or documents into the processing pipeline, to record the process of the documents through the processing system and finally to record the fact that all items have been completed. The SCCF systems maintain separate totals for revenue receipt items and other items.

  63. SOCIAL SECURITY NUMBER: A nine digit number used to identify an individual taxpayer account.

  64. SPOUSAL ASSESSMENT: During the examination of a joint return, the Appeals Office will assess both spouses separately for the same tax issue to the IMF MFT 31.

  65. STATUTE LIMITATIONS: The Internal Revenue Code states that the IRS will assess tax, refund credit, and collect taxes within a specific time frame. This limit is known as the "Statute of Limitations." The determination of a statute expiration differs from Assessment Statute Expiration Date (ASED), Refund Statute Expiration Date (RSED), and Collection Statute Expiration Date (CSED). See IRM 25.6, Statute of Limitations, for further information.

  66. SUBSEQUENT PAYMENT: A payment received for an account that has been assessed and the taxpayer has been billed.

  67. TAX CLASS: Revenue Receipts are categorized into seven major tax classes. These are: withholding, individual income, corporation income, excise, estate and gift, carriers tax and Federal Unemployment Tax.

  68. TAX PERIOD: A six digit number which represents the end of the tax liability year for a return; and is designated by the year and month,

    Example:

    199912

  69. TAXPAYER: An entity liable for any type of Federal tax.

  70. TAXPAYER ADVOCATE SERVICE PROGRAM: A program established whereby taxpayers' problems can be referred and controlled until the problems are resolved.

  71. TAXPAYER DELINQUENT ACCOUNT (TDA): A computer generated printout indicating that the taxpayer's account has reached a delinquent status. TDAs are sent to the Compliance Services Campus Operations (CSCO) for collection action.

  72. TAXPAYER IDENTIFICATION NUMBER (TIN): Every taxpayer on the Master File has a permanent number for identification of the tax account. The employer identification number (EIN) is used to identify taxpayers on the Business Master File. The social security number (SSN) is used as the account number of the taxpayer on the Individual Master File. The format of these account numbers is:

    VALUE MEANING
    EIN nn-nnnnnnn
    SSN nnn-nn-nnnn

  73. TRANSACTION CODE (TC): A three digit number which defines the precise nature of the transaction. For example, TC 150 indicates "Return Filed and Tax Liability Assessed." Refer to Document 6209, IRS Processing Codes and Information, for complete listing of transaction codes.

  74. UNIDENTIFIED REMITTANCE (UR): Remittances without the necessary identification to apply to a Master File or a Non-Master File account.

  75. UNIDENTIFIED REMITTANCE FILE (URF): A separate file within the Integrated Data Retrieval System containing all remittances received that cannot be immediately identified or applied. Each record within the file contains the URF control number, amount or remittance, type of remittance, received date, taxpayer's name and other identifying information, if known.

  76. UNIT LEDGER CARD (ULC) Form 6335: Account cards that were used prior to the ANMF System to record all transactions related to a tax liability maintained manually.

  77. USER FRIENDLY TRANSCRIPT: this transcript, similar to a MFTRX, can be sent to the taxpayer.

  78. WEEKLY ASSESSMENTS: An assessments which is post journalized.

  79. WITH REMITTANCE (W/R): Any document received with cash, check, money order or other forms of payment.

3.17.46.1.10  (01-01-2012)
Glossary of Computer Terms

  1. Any term in all capital letters is a data element within the system. Any term in lower case letters is the title of screen, field, or a printed report or output. Asterisk (*) terms are simply definitions.

  2. ABBREVIATED-TXPYR-NMF-ACCT-REC—Contains only the entity and transaction information records. No entity change or status change information is included.

  3. ABSTRACT-NUMBER—A three digit number used to abstract revenue receipts. For values refer to the most current version of the "Abstract Chart" See Exhibit 3.17.46-6.

  4. ACCOUNT-BALANCE-AMOUNT—The current taxpayer account balance.

  5. ACCOUNT-BALANCE-TOTAL—The sum of the ACCOUNT-BALANCE-AMOUNT, ACCRUED-FTP-PENALTY-AMOUNT and ACCRUED-INTEREST-AMOUNT.

  6. ACCOUNT-BALANCE-UPDATE-DATE—Date of last taxpayer account balance update.

  7. ACCOUNT-UNCOLLECTIBLE-STAT-DT —The date of the posted transaction which changes the taxpayer account status to uncollectible.

  8. ACCOUNTING-VALIDATION-GROUP—Accounting information from NMF assessment documents which relates to the taxpayer entity and requires validation.

  9. ACCOUNTING-VERIFICATION-GROUP—Accounting information from NMF assessment documents which relates to the taxpayer entity and requires verification.

  10. Accounts Flagged for Notice/TDA—Weekly list of NMF accounts identified during the weekly analysis on which a 1st, 4th, or TDA Notice is being generated.

  11. ACCOUNTS-MAINTENANCE-RECORD—Various listings and transcripts of taxpayer NMF accounts requiring maintenance; i.e., analysis and/or adjustments.

  12. Accounts with Reversal Code Problems—List of reversal transaction codes for which no matching transaction is identified on the account. System generated penalty and interest is restricted on accounts containing these erroneous transactions. The list is used in conjunction with "REV ERROR" transcripts to manually calculate penalty and interest accruals, issue notices and adjust these accounts to correct these erroneous transactions.

  13. ACCRUED-FTP-PENALTY-AMOUNT—Amount of failure to pay penalty accrued.

  14. ACCRUED-FTP-PENALTY-DATE—Date through which failure to pay penalty has been accrued.

  15. ACCRUED-INTEREST-AMOUNT—Amount of interest accrued.

  16. ACCRUED-INTEREST-DATE—Date through which accrued interest has been computed.

  17. ADP-DAILY-TRANSACTION-GROUP-TRANSACTION–
    INFORMATION-RECORDs which are input from pre-journalized "Daily" assessments and the matching ENTITY-INFORMATION-RECORD.

  18. ADP-TRANSACTION-GROUP-TRANSACTION-INFORMATION–
    RECORDS which are input from routine "Weekly" assessments and subsequent transaction documents for post journalization and the matching ENTITY–INFORMATION–RECORD and POST–TRANSACTION–INFORMATION–RECORD.

  19. AGED-DAY-NUMBER—The number of days a record has remained in process (AGED). The number of days a transaction has been unpostable or the number of days since a block of documents was input.

  20. ANMF-SC-RECAP - The ANMF SERVICE CENTER (SC) RECAP OF ASSESSMENTS, ABATEMENTS, AND OTHER POST-JOURNALIZED TRANSACTIONS summarizes the data on the various NMF Recaps generated daily and sorts it into Revenue Accounting and Control System (RACS) Line Numbers for batch (internal) journalization via the RRACS database. This eliminates the manual journalization from the NMF Recaps.

  21. ANMF SC RECAP Problem Report - Identifies those transactions that posted to the ANMF database, but did not meet the criteria for RRACS batch journalization because it would have posted to an incorrect General Ledger Account.

  22. AREA-OFFICE-CODE—A two digit code designating the area office. The first and second digit of the Document Locator Number.

  23. ASSESSMENT-TYPE-INDICATOR—Indicates the type of assessment.

    VALUES MEANINGS
    P Prompt Assessment
    Q Quick Assessment
    J Jeopardy or Termination Assessment
    R Regular Assessment

  24. BLOCKING-SERIES-NUMBER—The 9th, 10th and 11th digits of the DOCUMENT–LOCATOR–NUMBER.

  25. BOB Summary List—Listing of blocks of NMF assessment or subsequent transaction documents that DO NOT balance with the related document transmittal.

  26. BODC— a two character field which identifies the Business Operating Division Code that has responsibility or ownership of the taxpayer(s) account. See codes in table below:

    BODC Business Operating Division
    SB Small Business/Self Employed
    WI Wage and Investment Income
    TE Tax Exempt and Government Entity
    LM Large Business and International
  27. BODCC— Business Operating Division Client Code. This three character field which may be alpha, numeric, or both categorizes the taxpayer(s) account into a client or sub-group within the Business Operating Division Code.

  28. Certified Mail List—Weekly list of notices requiring certified mail handling. Includes all final notices before seizure, Estate and Gift (E&G), any first notice where assessment requires immediate TDA and all fourth notices.

  29. CITY-ADDRESS—The taxpayer's city address.

  30. CIVIL-PENALTY-REFERENCE-NUMBER —Three digit number which identifies the type of civil penalty assessed.

    VALUES MEANINGS
    628 TEFRA IRC 6700
    666 TEFRA IRC 6702
    632 TEFRA IRC 6705
    634 TEFRA IRC 6707
    636 TEFRA IRC 6708
    600
    "For Historical Use Only"
    TEFRA IRC 6652(a)–(b)
    602
    "For Historical Use Only"
    TEFRA IRC 6676(b)
    613 TEFRA IRC 6679
    616 TEFRA IRC 6682
    622
    "For Historical Use Only"
    TEFRA IRC 6694(a)–(b)
    624 TEFRA IRC 6695(a)–(e)
    626 TEFRA IRC 6695(f)

  31. CLAIM-ADJUSTMENT-PENDING-DATE —The date the taxpayer's claim for adjustment is submitted.

  32. CLOSED-ACCOUNT-RECALL-REQ-REC —Record input to request recall of a closed NMF taxpayer account from the CLOSED-NMF-TAXPAYER-INFO-FILE.

  33. COLLECTION LOCATION CODE— (CLC) Beginning in 2002 the CLC replaces the TDA/Taxpayer Delinquency Investigation (TDI) or Secondary Location Code and will identify the Small Business and Self-employed (SB/SE) or Wage and Investment (W&I) Area Office (AO) controlling the collection case. The CLC will NEVER reflect a Tax Exempt (TE) or Large Business and International (LB&I) Area Office.

  34. *Collection Closing Code—The closing code with certain transaction codes (TC 470, TC 520 and TC 530) to further describe the action. See the most current version of the Document 6209, IRS Processing Codes and Information, for values and meanings.

  35. CSO-REQUEST-STATE-NAME—Two character abbreviation for the State requesting assessment of Child Support Obligation (CSO). See the most current version of Document 7475, State and Address Abbreviations... for the values and meanings.

  36. CURRENT-ASSESSMENT-DATE—The assessment date currently assigned by the RRACS system. The date is set weekly from the system date. All NMF assessments which are not journalized by RACS prior to NMF processing are assigned this date as the NMF–ASSESSMENT–DATE and the TRANSACTION–DATE. This is the date that the assessment is recorded and certified.

  37. *Cursor—A visual indicator on a video screen showing position of the next entry.

  38. *Daily Assessment—Assessments which are pre-journalized when automated (MF or NMF) processing will not meet a previously determined 23C Assessment Date. This may include Prompt, Jeopardy, Termination and Quick assessments.

  39. DOCUMENT-CODE—The 4th and 5th digits of the Document Locator Number.

  40. *Document Locator Number—A 15 digit number used to locate and/or control returns and documents affecting the taxpayers account.

  41. DOCUMENT-TRANSMITTAL-CREDIT-AMT— The credit amount from the document transmittal.

  42. DOCUMENT-TRANSMITTAL-DEBIT-AMT— The debit amount from the document transmittal.

  43. DOCUMENT-TRANSMITTAL-ITEM-CNT— Item count of the documents included on the document transmittal.

  44. DOCUMENT-TRANSMITTAL-RECORD— NMF assessment and subsequent transaction block control information from the document transmittal Form 813. Used to balance blocks of documents and to insure timely processing.

  45. ENTITY-INFORMATION-RECORD—Taxpayer entity information from NMF assessment documents.

  46. EXCEPTION-CODE-IND—Indicator used to identify accounts that will have exception processing.

    VALUES   MEANINGS
    I Non-compute of Interest accruals
    R Non Compute of Interest and penalty accruals
    P Non-compute of Penalty accruals
    M Manual Computation of Interest and Penalty, No Notice Generated
    U Update penalty and interest accruals

  47. FIRST-NAME-LINE—First name line of a TAXPAYER–NMF–ACCOUNT–RECORD. Includes first name, middle name or middle initial if available, and last name of individual taxpayer; if business, the business name. This line consists of 25 characters.

  48. *First Notice Date—The 23C date (used for mailing the first notice).

  49. FIRST-NOTICE-SC-ADDRESS-IND —Indicator to determine the Campus return address for inclusion on first notices.

    VALUES MEANINGS
    17 Cincinnati

  50. HISTORY-DATE—The date that the ACCOUNT-HISTORY-RECORD is input to the system.

  51. IRS-EMPLOYEE-NUMBER—Ten digit number identifying an IRS employee. Includes the organization code and the individual identification number. May also be used to identify transcript requests generated during transaction processing.

    VALUES   MEANINGS
    NNNNNNNNNN, Input by Employee
    NNNNNNNNBB or, Input by Employee
    NNNNNBBBBB Input by Employee
    9999–9999 System Generated for Pre-ADP transactions Old Load Screen
    OCSP System Generated for Outer Continental Shelf Processing
    UPC 099 System Generated for 099 Unpostable condition
    UPC 000 System Generated for 000 Unpostable condition
    UPC 010 System Generated for 010 Unpostable condition
    UPC 014 System Generated for 014 Unpostable condition
    UPC 009 System Generated for 009 Unpostable condition

  52. JOURNAL-NUMBER—The fifteen digit number assigned by the RACS function to each RACS summary.

    VALUES   MEANINGS
    position 1–3 RACS screen number
    position 4–11 DATE
    position 12–15 Sequence number

  53. JULIAN-DATE—The sixth, seventh and eighth digits of the Document Locator Number. Used as the control date

    VALUES   MEANINGS
    001–366 Julian Date
    401–766 IDRS incremented Julian Date

  54. MFT-CODE—Master–File tax code used to identify the type of assessment. See IRM Refer to Exhibit 3.17.46-5 or Section 2 in the Document 6209, IRS Processing Codes and Information.

  55. NAME-CONTROL—Four alpha/numeric characters derived from the taxpayers surname or business name.

  56. NMF-ACCOUNT-HISTORY-LINE —Record containing history information relating to accounts maintenance activity which will affect an NMF taxpayer account.

  57. NMF-ACCOUNT-HISTORY-RECORD —History information relating to accounts maintenance activity which will affect the NMF taxpayer account. Includes the input date.

  58. NMF-ACCOUNT-STATUS-CODE— Code identifying the status of a taxpayer NMF account.

    VALUES MEANINGS
    21 First Notice
    22 Delinquent (TDA)
    24 Below TDA Tolerance
    53 Currently Non Collectible
    58 Fourth Notice
    60 Installment Agreement
    71 Offer In Compromise
    89 Suspense
    99 Account Transferred Out

  59. NMF-ACCOUNT-TRANSACTION-RECORD —Debit, credit and transaction information which affect the balance or status of NMF taxpayer account.

  60. NMF-ACCOUNT-TRANSCRIPT-RECORD—NMF account transcript used to provide taxpayer account information for case processing by campus and area office personnel. May be requested by IRS employees or generated when specific accounts require accounts maintenance action.

  61. NMF-ACCOUNT-TRANSCRIPT-REQ-REC— Requests input from area office and campus personnel for an NMF account transcript.

  62. NMF Accounts Below Tolerance for Notice/TDA Issuance (UNDER-TOLERANCE-LIST)—Weekly listing of NMF accounts on which the account balance is below the tolerance for TDA or notice issuance.

  63. NMF Accounts Flagged for Notices/TDAs—A list of accounts on which a notice or TDA is being issued.

  64. NMF Accounts Purged to Closed—A listing of abbreviated NMF account records which have been purged to the closed files. This list will contain accounts which have had an account balance of zero for 30 days or longer and no accrued penalty or interest is due.

  65. NMF-ACTUAL-PERIOD-ENDED-DATE— The actual date of the last period included in the NMF assessment. Presence is required when duplicate periods necessitate using a "dummy" period as the NMF-ASSESSMENT-PERIOD-ENDED-DT.

  66. NMF-ASSESSMENT-DATE—Date the NMF assessment is made and certified.

  67. NMF-ASSESSMENT-DOC-FORM-NUMBER— Form number of the NMF assessment document.

  68. NMF-ASSESSMENT-PERIOD-ENDED-DT— The ending date of the last period included in the NMF assessment. If an assessment is already present for the same taxpayer for the same period and MFT, then a "DUMMY" period must be assigned. In this case the NMF-ACTUAL-PERIOD-ENDED-DATE must also be included in the data input to establish the account on the ANMF system.

  69. NMF-ASSESSMENT-PERIOD-LINE— List of all periods included in the NMF assessment.

  70. NMF Assessment Recap—Summary of assessment transactions which have posted to an NMF taxpayer account. Original assessments are posted from NMF returns and Child Support Obligation (CSO) assessments. Deficiency assessments from NMF audit adjustment documents numbered with NMF deficiency blocking series; and NMF Assessment Vouchers, Form 5734. Used to effect assessment by the RRACS System.

  71. NMF Block Listing—Listing of the DOCUMENT–INFORMATION–RECORD (Form 813) input to the ANMF System on a given day.

  72. NMF Cycle Proof Listing—Monthly listing of blocks of NMF documents which have been processed through the ANMF System, e.g., both transactions and block control were entered and the block balanced allowing transactions to attempt to post to an account. Used to transmit blocks of processed documents to Returns Files after balancing is completed.

  73. *NMF-DATA-ENTRY-ERROR-MESSAGE —Error message displayed at the bottom of the screen during screen entry of NMF data.

  74. *NMF-DATA-ENTRY-ERROR-PROMPTS —A message displayed at the bottom of input screens to assist in screen entry of NMF data.

  75. NMF Entity Changes Unpostable—Daily list of entity change transactions which did not find a matching entity.

  76. NMF Entity Unpostable List—Listing of ENTITY-INFORMATION-RECORDs which duplicate the entity file key of an existing record in the NMF-TAXPAYER-INFORMATION-FILE and therefore will not be posted to the file.

  77. NMF-ERROR-CORRECTION-RECORD —Various listings of NMF transactions or blocks of transactions on which processing cannot be completed until some error condition is corrected.

  78. NMF Error Register Listing (UNMATCHED–TRANSACTION–LIST )—Listing of transaction records which did not match a document transmittal record (Form 813) and, therefore, cannot be balanced. A separate listing is generated for both daily and weekly assessments.

  79. NMF-FIRST-NOTICE-PARAGRAPH-IND— Indicates the notice paragraph to be included on NMF first notice. Also identifies accounts on which accrued penalty/interest will not be computed and embezzlement cases.

    VALUES   MEANINGS
    1 Trust Fund Recovery Penalty Statement
    2 TEFRA Penalty—6700—Abusive Tax Shelters
    3 Examination Deficiency
    4 Standard NMF Statement of Penalty/Interest Accruals
    6 TEFRA Penalty—6701—Aiding and Abetting Understatement of Tax Liability
    7 TEFRA Penalty—6702—Frivolous Tax Return
    8 Embezzlement
    X Non-Compute

  80. NMF-GENERAL-LEDGER-ACCOUNT-NUM— Account number of subsidiary files to the General Ledger.

    VALUES MEANINGS
    1321 NMF Accounts Receivable - Notice Status
    1322 NMF Accounts Receivable - TDA
    1324 NMF Accounts Receivable - Below TDA Tolerance
    1360 NMF Accounts Receivable - Installment Agreement
    1371 NMF Accounts Receivable - Offer-In-Compromise
    1389 NMF Accounts Receivable - Suspense
    1830 NMF Accounts Receivable- Inactive

  81. NMF-INTEREST-RATE—The rate of interest charged on underpayment.

  82. NMF Non-SCCF Recap—Summary of transactions posted to an NMF taxpayer account which do not affect the Service Center Control File. Includes abatement or reverse abatement transactions posted from NMF audit adjustment documents numbered with an overassessment blocking series per IRM 4.4.22, Non-Master File (NMF) Processing; penalty, interest, abatement or reverse abatement transactions posted from NMF DP adjustment documents; and transactions which write-off an NMF taxpayer account or reverse a write-off transaction, i.e., account uncollectible, statute expired, and underpayment cleared. Used to effect journalization by the RRACS System. The system will generate three separate Non-SCCF Recaps:

    • NMF Non-SCCF Recap

    • NMF Non-SCCF Recap of 54/47 Doc. Code

    • NMF Non-SCCF Recap-OIC

  83. NMF Nullified Unpostable Transaction List—Listing generated daily of NMF unpostable transactions which have been nullified from the system.

  84. NMF Postings for Month of ____ (NMF-POSTED-TRANSACTION-LIST)—Listing of NMF transactions which have been posted to a taxpayer account for the month.

  85. NMF-PRINCIPAL-AMOUNT—The principal amount of assessments, abatements and universal credits on which interest and possible penalty is computed for a given period.

  86. NMF SCCF Recap—Summary of posted subsequent transactions which affect the Service Center Control File. Includes: subsequent payment, assessment of penalty or interest with subsequent payment, debit/credit transfer, refund, dishonored check, interest due taxpayer, or miscellaneous revenue receipts. Used to effect journalization by the RRACS System.

  87. NMF-STATUS-CHANGE-SUMMARY —A 290 NMF Status Change list and a TC Code 53X recap is generated daily of accounts which have been changed from one status to another as the result of a certain transaction posting or when reactivating accounts from 53'd status.

  88. NMF Subsequent Transactions to Accounts in TDA Status list—Daily listing of transaction information for updating NMF IDRS taxpayer accounts.

  89. NMF-TRANSACTION-POSTING-IND —Indicator located on the Transaction Section of the Research screen which indicates which reports contain information from posting a transaction to an NMF taxpayer account.

    VALUES MEANINGS TRANSACTION INFORMATION INCLUDED ON
    P Posted NMF Postings for the Month List
    L Posted (Pre-ADP) NMF Postings for the Month List
    R RACS NMF Assessment Recap, NMF SCCF Recap or NMF NON–SCCF Summary other than TC 400 and the NMF Postings for the Month List
    S Status–Change 290 NMF Status Change List, TC CODE 53X Recap, and NMF Postings for the Month List
    T RACS–ACCT–
    TRANSFER
    NMF NON–SCCF Recap (TC 400) and NMF Postings for the Month List
    G Generated No Listing (TC does not change account balance or status.)
    Z Generated Complete Reversal of a Transaction

  90. NMF Trial Balance List—Monthly trial balance listing of each NMF taxpayer account by status for reconciling NMF subsidiary accounts to the General Ledger. A separate trial balance list is produced for Child Support Obligation accounts.

  91. NMF Unpostable Transaction List (UNPOSTABLE-SUMMARY-LIST )—Daily listing of transactions which did not find a matching entity for posting or meet an unpostable condition. The following NMF Unpostable Transaction lists are generated from the ANMF System:

    • NMF Unpostable Transaction list—Loaded Transactions

    • NMF Unpostable Transaction list—Daily

    • NMF Unpostable Transaction list (Contains the weekly unpostable transactions).

  92. NMF Unprocessed Block list—Weekly listing of blocks of NMF documents that have not been processed. This condition occurs when controlling information from the document transmittal (Form 813) is input to the system but the related documents have not been input for processing.

  93. NMF Unverified Entity List (UNVERIFIED-ENTITY-LIST )—List of original assessments which were input but have not been key verified. A separate listing is generated for both the daily and weekly assessments.

  94. NON-PETITIONING–SPOUSE–IND—Input to identify Non-Petitioning Spouse assessments.

    VALUES   MEANINGS
    P Non-Petitioning Spouse Case
    Blank No case

  95. NOTICE-DATE—The date for mailing fourth and TDA notices. One week following the CURRENT-ASSESSMENT-DATE. The date is set weekly from the system date.

  96. Notice Due—Power of Attorney (POA) on File List—Weekly listing of NMF Accounts on which a notice is being issued and a Power of Attorney is indicated. Used to research the Centralized Authorization File (CAF) for POA name and address for sending copies of the notice.

  97. NOTICE-LIST-DTRM-IND—Indicator input with original assessments to determine which notice(s) and/or listing(s) to issue. Will be system generated for subsequent notices, TDAs and account maintenance listings.

    VALUES MEANINGS
    1 1st Notice
    4 4th Notice, Reformat 4th notice, Certified Mail List
    5 Child Support Letter
    6 Telephone Excise second notice, Certified Mail List
    7 Telephone Excise TDA
    8 Reformat 1st Notice
    9 Penalty/Interest Notice
    A Associate TDA Notice—(w/previous issue)
    B Reissue 1st Notice
    E Reissue 4th Notice
    F Reissue CNC Notice
    G Issue NMF 4th Notice
    I Reformat Installment Agreement Notice
    Q Accelerated TDA, Fourth Notice, Certified Mail List
    R Reissue TDA
    T Trust Fund Recovery Penalty TDA, First Notice, Certified Mail List
    U Under Tolerance List
    W Weekly TDA Notice
    X Reformat TDA
    Z Reformat Annual Reminder Notice, 1st Notice, Certified Mail List or TDA Notice
    Blank Hold Notice

  98. NOTICE-PARAGRAPH—Literal paragraph verbiage for inclusion on first and fourth notices.

  99. NOTICE-RECORD—First or fourth notice.

  100. NULLIFY-REASON-CODE—Three digit code input through the Nullified Unpostable screen to identify the reason an unpostable transaction is nullified from the system.

    VALUES MEANINGS
    000 No account in the NMF Accounting System
    001 Transactions not compatible with account status
    012 Closed NMF Account not recalled
    040 TC 400 amount not equal to account balance
    053 Duplicate TC for Account Uncollectible
    086 Error on original entry
    099 NMF Account Transferred Out. No activity can post.

  101. NULLIFY-UNPOSTABLE-RECORD—Record input to nullify certain NMF unpostable transactions from the system.

  102. *Official IRS NMF Transcript—A transcript of an NMF account used to provide taxpayer account information for case processing by campus and area office personnel.

  103. OIC-STATUS-DATE—The date of the transaction which indicates that an offer in compromise has been filed.

  104. Petitioning/Non-petitioning Spouse list—A semi-annual listing of Non Petitioning Spouse assessments for accounts maintenance activity.

  105. POA-INDICATOR—A "Y" is input to this field to indicate that a Power of Attorney or other third party authorization is present on the Centralized Authorization File (CAF).

  106. *Primary Key—Account TIN, MFT and TAX PERIOD ENDING.

  107. PRIMARY LOCATION CODE— Beginning in 2002, the Primary Location Code will consist of a Universal Location Code and Area Office. ULCAO ( the last two digits will reflect the new AO code associated with the taxpayers ULC and BOD.

  108. *Prompts—A computer language function that alerts the user to the need for additional input in order to continue processing data.

  109. RACS-INFORMATION-UPDATE-RECORD —Accounting and transaction information for updating the General Ledger account on the Revenue Accounting Control System.

  110. RACS-SUMMARY-SERIAL-NUMBER —Serial number systemically assigned to each RACS Summary generated. Numbering is sequential and begins with each Fiscal Year.

  111. Record–Oracle database management systems refer to rows as "record."

  112. Recap of Journaled RACS Summaries—A listing of all RACS summaries generated, including the journal number which is input through the UPDATE JRN'L screen following journalization by the RACS function.

  113. Registered Mail List—Weekly list of notices with foreign addresses which require registered mail handling.

  114. Report of Blocks Out of Balance—Listing of blocks of NMF assessment or subsequent transaction documents that do not balance with the related document transmittal. A separate listing is generated for both the daily and weekly assessments.

  115. *SCCF Adjustment Record—Adjustments to either correct or clear NMF blocks from the Service Center Control File.

  116. SECOND-NAME-LINE—Second name line of a TAXPAYER–NMF–ACCOUNT–RECORD. Usually a continuation of the first name line. Consists of 25 alpha/numeric characters.

  117. SECOND-NOTICE-DATE—The date of second notice issuance.

  118. SERVICE-CENTER-RETURN-ADDRESS —Return address for Cincinnati Submission Processing Campus except for MFT 74 and 76 notices which have Ogden Submission Processing Campus address.

  119. STATUS-CHANGE-RECORD—Record generated by posting transaction codes which change the NMF taxpayer account status or when reactivating accounts from 53'd status to issue a TDA. Includes: claim/adjustment pending, offer in compromise, and account uncollectible processed in error. Used to format the 290 NMF Status Change list and the TC CODE 53X Recap for updating RACS.

  120. STREET-ADDRESS—The taxpayer's street address. Consists of 25 alpha/numeric characters.

  121. TAXPAYER-IDENTIFICATION-NUMBER —Identification number assigned to each taxpayer, individual or business, in Social Security Number (SSN) or Employee Identification Number (EIN) format

    VALUES MEANINGS
    NNN–NN–NNNN SSN
    NN–NNNNNNN EIN
    9NN–NN–NNNN Temporary SSN

  122. TAXPAYER-NMF-ACCOUNT-RECORD —Taxpayer NMF account entity, transaction and status change information.

  123. TDA-RECORD—Taxpayer Delinquent Account (TDA) notice.

  124. TELEPHONE-EXCISE-NOTICE-GROUP —All Telephone Excise Tax accounts for the same taxpayer and assessed in the same calendar year for issuance of second notice or TDA.

  125. TOTAL-TRANSACTION-CREDIT-AMT —Total accumulated from the transaction amounts for credit transaction codes for one block of transaction documents.

  126. TOTAL-TRANSACTION DEBIT-AMT—Total accumulated from the transaction amounts for debit transaction codes for one block of transaction documents.

  127. TRANSACTION-AMOUNT—The debit or credit amount of the transaction.

    VALUES MEANINGS
    NNN,NNN,NNN.NN Money

  128. TRANSACTION-CODE—Three digit code identifying the type of transaction. See Exhibit 3.17.46-7. for NMF transaction codes.

  129. TRANSACTION-CODE-DESCRIPTION—The literal description for the transaction code.

  130. TRANSACTION-DATE—The date the transaction is effective, i.e., remittance received date; assessment, abatement or refund certification date.

  131. TRANSACTION-POSTING-DATE—The date an NMF transaction posts to an NMF taxpayer account or is nullified from the system.

  132. TRANSCRIPT-CODE—The code which indicates what type of transcript will be generated.

    VALUES MEANINGS
    T Account Transfer
    1 Trust Fund Recovery Penalty NMF Account
    C Credit Balance
    M Accounts Maintenance
    O Offer In Compromise
    P Claim/Adjustment Pending
    2 Penalty/Interest Review
    D Small Debits Cleared
    S Desert Storm
    3 Spousal Assessment

  133. TRANSFER-SC-SCHEDULE-NUMBER —Identifies the Service Center to which an account was transferred and the schedule which effected the transfer.

    Note:

    For Historical Purposes only - Accounts are no longer transferred between campuses.

    VALUES MEANINGS
    position 1–2 Service Center Code
    position 3–5 Transfer Schedule Number

  134. Transmittal Recap of RACS Summaries—List of RACS summaries generated on a given day. Used to transmit that day's Recaps (summaries) to the RACS function.

  135. TYPE-OF-TAX-ASSESSED-DESC —A narrative description for the type of tax assessed.

  136. ULC-ACCOUNT-BALANCE-AMOUNT —The account balance amount from the Unit Ledger Card.

  137. UNIVERSAL LOCATION CODE—Beginning in 2002 the ULCs will consist of the Pre-DOS 11 districts or Filing District Offices (FiDO) which was in place prior to District Office consolidation which took place in 1996 (65 District/Area Offices). There will also be a new District/Area Office Code of 78 for Washington D.C.

  138. UNPOSTABLE-TRANSACTION-CODES—Code which identifies the reason a transaction is unpostable.

    VALUES MEANINGS
    000 No account in the NMF–TAXPAYER–INFORMATION–FILE
    002 TC 402—account status not 99.
    004 TC 480 general ledger account not "Active Accounts Receivable" or account status is installment (14).
    005 TC 481/482/483 account status not "OIC" (71).
    006 TC 530—amount not 0 and account status not "Uncollectible" (53).
    007 TC 531—account status not "Uncollectible" (53).
    008 TC 532—account status not "Uncollectible" or amount is not 0.
    009 TC 471/472/521/525—account not in status 89.
    010 Date of reversing TC does not match TC being reversed or amount is greater than TC being reversed; or reversal TC does not find related TC to reverse.
    011 TC 471 or TC 472 attempts to post to an account in 89 Status and transaction date is greater than or equal to the CLAIM–ADJUSTMENT–PENDING–DATE.
    014 TC 480/530—account in status 14 (Installment).
    015 TC 610—transaction date is NOT equal to or less than the TC 150 transaction date.
    016 TC 530—attempts to post to a zero balance account.
    017 Any subsequent transaction with doc. code 24, 27, 28, or 87 attempting to post and blocking series is not compatible with true tax class of Abstract Number.
    018 TC 470 or TC 520 attempts to post and there is no TC 531 present
    019 TC 531 attempts to post to account in credit balance.
    020 TC attempts to post to an account with an unreversed TC 608.
    021 TC 972 attempts to post to an account without a corresponding TC 971.
    022 TC 530 attempts to post to an account which contains an unreversed TC 520.
    040 TC 400—amount not equal to account balance amount.
    041 Duplicate transaction codes attempting to post to an account with the same transaction date and/or money amount
    047 TC 470—attempts to post and account was previous flagged for notice or TDA.
    053 TC 530—amount is 0 and account status is "Uncollectible" (53).
    099 TC not 402 and account status "Transferred Out" (99).

  139. Unprocessed Nullified Transaction List—Listing of NULLIFY–UNPOSTABLE–RECORDs which did not match an unpostable transaction and hence, were not processed (were not nullified from the system).

  140. Unprocessed Restricted Database Changes List—Listing of account change requests input by the DBA that have not been processed.

  141. USER-ENTRY-NAME (password)—The login name of the user originally entering a record.

    VALUES MEANINGS
    7 characters alpha/numeric

  142. USER-LOGIN-NAME (login)—The login name assigned to each user having access to the system. Assigned by the TCCTIERII 5081 at the Enterprise Computing Center.

    VALUES MEANINGS
    7 characters alpha/numeric

  143. XREF-TAXPAYER-INFORMATION-LINE —A four line field used for taxpayer identifying information used to cross reference related NMF taxpayer accounts, such as, innocent spouse, culpable spouse and related officers involved in Trust Fund Recovery Penalty cases.

    VALUES MEANINGS
    100 characters alpha/numeric

  144. ZIP-CODE—A numeric identifier for the taxpayer's city and state.

    VALUES MEANINGS
    NNNNN, or numeric
    NNNNN–NNNN  

3.17.46.1.11  (01-01-2011)
Contingency Plan

  1. In the event of a major physical disaster at the Cincinnati Submission Processing Campus, follow locally established Disaster Recovery procedures.

  2. In November 2002, ANMF database migrated from the Pyramid system at each campus to the Sun Enterprise platform which is housed at the Enterprise Computing Center in Memphis, Tennessee (ECC-MEM). Disaster Recovery procedures are maintained in the ANMF Service Level Agreement (SLA) for processing at the Enterprise Computing Center in Martinsburg, West Virginia (ECC-MTB) should a disaster occur at the Enterprise Computing Center in Memphis, Tennessee.

3.17.46.1.12  (01-01-2011)
Taxpayer Advocate Service

  1. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should.

  2. During taxpayer contact when:

    • The taxpayer asks to be referred to the TAS, or the contact meets TAS criteria, and

    • You can't resolve the taxpayer's issue within the same day, then

      Note:

      The definition of same day is within 24 hours.

    • However, there will be times you can completely resolve the issue within 24 hours. There will also be times that although you cannot completely resolve the issue within 24 hours, if you have taken steps within 24 hours to resolve the taxpayer's issue, these cases also meet the definition of same day. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4, Same Day Resolution by Operations. The TAS toll-free number is 1(877) 777-4778 or TTY/TDD 1(800) 829-4059.

  3. If a Customer Service Representative cannot resolve the taxpayer's issue the same day, then prepare and forward Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), to the local Taxpayer Advocate (see IRM Part 13, Taxpayer Advocate Service).

3.17.46.1.13  (01-01-2011)
Taxpayer Identity Theft

  1. Identity theft not only affects individuals in their personal matters, but may also have an impact with any tax related issues.

  2. If a taxpayer states that he or she has been a victim of Identity Theft, refer the taxpayer to Customer Service or the Identity Protection Specialized Unit at 1-800-908-4490. If the taxpayer is about to suffer a financial hardship due to a tax-related identify theft issue, then refer the taxpayer to the Taxpayer Advocate Service.

  3. Instruct the taxpayer that he or she must provide the following standard documentation:

    • Authentication of Identity - a copy of a valid U.S. federal or state government issued form of identification (example, driver's license, state identification card, social security card, passport, etc.)

    • Evidence of Identity Theft - a copy of a police report or Affidavit of Identity Theft filed with the Federal Trade Commission

  4. Post TC 971 AC 501 or 506 upon receipt of Form 3177 or IDRS Form 5147 to ANMF.

3.17.46.2  (01-01-2012)
Journalization

  1. RACS replaces the various "paper" journal forms previously used to record accounting transactions. Journalization and posting to the General Ledger accounts is accomplished by input to RRACS.

  2. Direct references to specific General Ledger accounts will be minimized. The IRM 3.17.63, Redesign Revenue Accounting Control System, and IRM 3.17.64, Accounting Control General Ledger Policies and Procedures, provides further description of the accounts.

  3. All references to journalization mean input to RRACS. All accounting transactions must be journalized to ensure effective accounting control. Prior to ANMF, all transactions were prejournalized. All NMF transactions will now be either pre-journalized or post journalized as dictated by the 23C date.

3.17.46.2.1  (01-01-2012)
ANMF SC RECAP

  1. The ANMF SERVICE CENTER RECAP OF ASSESSMENTS, ABATEMENTS, AND OTHER POST-JOURNALIZED TRANSACTIONS, hereafter referred to as ANMF SC RECAP or ARECAP, was implemented on May 2, 2006. The report mimics the weekly IMF and Business Master File (BMF) SC RECAP with one exception – ANMF SC RECAP is processed daily. However, the 23C Date is the weekly 23C Date.

  2. The ANMF SC RECAP reflects the Weekly Posting Cycle with a Day portion (DD). The cycle begins on Friday and ends on Thursday. Effective January 1, 2012, Customer Account Data Engine 2 (CADE 2) will transition the IMF Legacy processing cycle from a Saturday - Sunday to a Friday - Thursday cycle, the DD and 23C date will change to coincide with CADE 2. The DD denotes the day of input to the ANMF database as follows:

    Day of Input to ANMF DD
    Friday 01
    Monday 02
    Tuesday 03
    Wednesday 04
    Thursday 05

    For example, since Friday begins the cycle and is DD 01, it will appear on the ANMF SC RECAP as Cycle 20120201.

    The print date of the ANMF SC RECAP is the same print date on the NMF or RACS Recaps, thereby providing an audit trail.

  3. The ANMF SC RECAP summarizes the data on the NMF or RACS Recaps and records it into the appropriate RACS Line Number which is linked to the various General Ledger Accounts within the RRACS database. A file is sent to the Detroit Computing Center (DCC) for internal or batch journalization via RRACS which occurs two days after input to ANMF. For instance, if Friday is the day of input to ANMF, the ANMF SC RECAP is printed on Monday, then RRACS will journal on Tuesday. Refer to Exhibit 3.17.46-9.

  4. RRACS created two new batch journals – journal # 142 for the Weekly Assessment data and journal # 141 for the "Default" or remaining data. During month-end processing, journal # 142 will recognize the 23C Date as a future journal while journal # 141 will recognize the "Default" data as current. This minimizes the reconciling items for month-end reporting on Form 3997.

  5. The ANMF SC RECAP Problem Report identifies those transactions that posted to ANMF, but did not meet the criteria for RRACS batch journalization, i.e., it would have posted to an incorrect General Ledger Account. This report is strictly for NMF analysis in determining corrective action and not intended for RACS.

  6. The ANMF Nightly Processing Menu has two new options, 30 and 31, to print the ANMF SC RECAP and ANMF SC RECAP Problem Report respectively.

3.17.46.2.2  (01-01-2011)
Block Control

  1. RACS will receive blocks of documents and prepare the Form 813 if one is not present. Each document must be numbered. All debits and credits must be listed on the Form 813.

  2. When the Form 813 is completed, stamp Part 1 with the ANMF processing stamp and initial it when the function is performed. If the Form 813 contains pre-journalized items, be sure to annotate the Form 813 with the journal number, 23C date and NMF status at this time. If the Form 813 contains post journalized items, this information will be included on the various RACS Recaps and will be annotated on Form 813 at the time RACS receives the Recap. See IRM 3.17.46.4.4 (4) and (5) for further information.

    ANMF STAMP MEANINGS
    OE (original key entry)
    KV (key verification)
    PR (proof read)
    813 (Form 813 preparation and entry to the Form 813 Block Control)

  3. Choose the option NMF Block Control/Correction from the Journal Main menu. Input the following information to the Form 813 Block Control screen: See IRM 3.17.46.13.4 for entry information.

    • Form 813 date as transaction date

    • Form 813 DLN

    • Item count

    • Total debit, and

    • Total credit

  4. Initial the ANMF stamp for "813" after the Form 813 Block Control screen entries are completed.

  5. RACS is the only function that can enter, correct or change (UP–DATE) the Block Control information.

  6. Forward the Form 813 and related documents to NMF for further processing.

3.17.46.2.3  (01-01-2011)
Pre-Journalization

  1. Pre-journalized items include all daily assessments, embezzlement cases, adjustments (ADJs), Revenue Procedures (Rev. Proc.) and closing agreements. See IRM 3.17.46.4.1 for further information.

  2. Pre-Journalized assessments are input through the Daily Assessment screens. The window will show the 23C date based on the weekly schedule and must be overlayed.

  3. Each block of pre-journalized assessment source documents should contain the following information:

    • 23C date

    • Journal clerk's initials

    • Journal number

    • NMF status

3.17.46.2.4  (01-01-2012)
Post-Journalization

  1. Post-journalized items include all weekly assessments and all other subsequent transactions including payments which are not determined as advanced payments. See IRM 3.17.46.4.2 for further information.

  2. Post journalized assessments are input through the Weekly Assessments screen. The window will show a 23C date that cannot be overlaid.

  3. Any post-journalized action taken on ANMF (i.e., assessment, status change, subsequent transaction, account transfer-out, etc.) will generate a RACS Recap. All RACS Recaps are printed on 3 part paper. Part 1 is attached to the documents and retained in NMF. Maintain Part 2 of NMF or RACS Recaps as a clean copy for official file and association with the ANMF SC RECAP. Part 3 will be kept as a back-up in the event manual journalization is required.

  4. The ANMF SC RECAP summarizes the data on the NMF or RACS Recaps. The following is performed:

    1. Print 3 copies

    2. Annotate the Abstract # from NMF or RACS Recaps onto bottom of Form 813 (Part 2)

    3. Verify Form 813 to the Transmittal of RACS Summaries for accuracy

    4. Associate all 3 copies of ANMF SC RECAP with 3 copies of the Transmittal of RACS Summaries and Form 813 (Part 2)

    5. Route to RACS DBA for batch journalization

    6. Receive a copy of the ANMF SC RECAP, Transmittal of RACS Summaries, and source journals # 142 and 141 from RACS upon journalization

    7. Associate with clean copy of NMF or RACS Recaps

    8. Maintain for official file and audit trail

  5. The ANMF SC RECAP Problem Report identifies those transactions that posted to the ANMF database, but did not meet the criteria for batch journalization.

    Note:

    Although any data on this report should be occasional, it is imperative that the report is printed daily since Nightly Processing may overlay any data.

    The following actions are required:

    1. Print 3 copies

    2. Do not forward to RACS

    3. Maintain a clean copy for association with ANMF SC RECAP

    4. Research the DLN via ANMF

    5. Pull the related NMF Recap for the DLN

    6. Review document to determine the cause of the problem

    7. Prepare and process appropriate document to reverse transaction if the original document was prepared incorrectly

    8. Determine correct journal action and either forward the NMF Recap, or, prepare the appropriate document accordingly to RACS

    9. Document all action taken for resolution in the remarks area of the ANMF SC RECAP Problem Report for audit trail

    10. Maintain annotated copy and corrective action with its related NMF Recap for official file purposes

    11. Contact HQ ANMF Analyst for guidance and if data appears daily on the report

  6. The RACS DBA and/or Designated RACS Accounting Technician responsibilities are:

    1. Hold ANMF SC RECAP associated with Transmittal Recap of RACS Summaries and Form 813 for the next day

    2. Verify the Run ID 760433420 YYCC (YY - Year and CC - Cycle) for batch journalization

    3. Print 3 copies of the Posting Summary and Source Journal for # 142 and # 141

    4. Verify the Run ID (Document #) as in item # 2 above, Cycle/DD (Alternate Document #), and the 23C Date (Prepare Date) from the Source Journal to the ANMF SC RECAP for accuracy. For example, Friday’s input via ANMF dated December 30, 2011 will reflect Cycle and DD as 20120201 with a 23C Date of 01-23-2012.

    5. Annotate batch journals # 142 and 141 on all copies of the ANMF SC RECAP and the Transmittal Recap of RACS Summaries:

    6. Associate copy of ANMF SC RECAP and the Transmittal with either its related weekly 23C Certificate or in the same manner as the MF SC RECAPS are maintained for official files.

    7. Return a copy of ANMF SC RECAP, Posting Summary, and the Source Journals to NMF.

  7. Designated RACS Accounting Technicians will:

    1. Annotate the batch journal numbers on Form 813 for release to Data Control

    2. Provide Data Control with a copy of the ANMF SC RECAP, Posting Summary and Source Journals

    3. Input to the UPDATE JRN'L screen from the Transmittal Recap for the Recap of Journaled RACS Summaries - Journal #142 is for Assessments and #141 for all else.

    Figure 3.17.46-1

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    1. Figure 3.17.46-2
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      Figure 3.17.46-3
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      Figure 3.17.46-4
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      Figure 3.17.46-5
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      Figure 3.17.46-6
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      Figure 3.17.46-7
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      Figure 3.17.46-8
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    Figure 3.17.46-9

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

  8. If Batch Journalization of the ANMF SC RECAP fails at DCC and cannot be recovered, then route the preceding NMF or RACS RECAPS to RACS for manual post-journalization. These recaps will be forwarded under the cover of the Transmittal Recap of RACS Summaries which lists all RACS Summaries generated on a given day. RACS will verify receipt of all Recaps on the transmittal by signature and date.

  9. All assessments must be journalized to conform with the 23C date indicated on each Recap. This is the month the transaction posted to the taxpayer account.

    Note:

    With the exception of items posting with a future 23C date.

    1. The ANMF SC RECAP batch journal #142 is governed by the 23C Date and meets conformity. Programming was designed to recognize a future 23C Date during month-end processing.

    2. Should a system failure occur, it will necessitate manual journalization from the NMF or RACS Recaps.

  10. If a system failure necessitates manual journalization, all NMF or RACS Recaps must be journalized the same month as the transaction date indicated on each Recap including the Recaps dated the first of the following month. This is the month the transaction posted to the taxpayer account. The ANMF SC RECAP was programmed to meet this criteria.

    Note:

    All NMF or RACS Recaps received in RACS should be journalized within three (3) days of receipt to ensure the timeliness of subsidiary balancing and to reduce the number of reconciled items for the month.

  11. After journalization, RACS will stamp the journal number on both parts 2 and 3 of the Recap and input the journal number to the UPDATE JRN'L screen (figure 3.17.46-10). Part 2 of the Recap is retained in RACS in summary number order. Part 3 is sent back to NMF, filed by journal number to use when balancing.

    Figure 3.17.46-10

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

  12. Weekly, RACS receives an Unprocessed Block List and a Recap of Journaled RACS Summaries generated from ANMF.

    1. This tool aids in control for the work flow between the RACS and NMF functions.

      Figure 3.17.46-11

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

    2. The Recap of Journaled RACS Summaries is a complete list of all RACS Recaps, including journal numbers, that have been input the previous day. This is a weekly list generated by the ANMF system and is used to control the work between the RACS and NMF functions.

  13. Daily, RACS receives an NMF Block Listing (figure 3.17.46-12) from the NMF DBA. RACS associates the listing with the related Form 813 and documents and forwards this package to NMF for input of the document transactions. If the one day delay may jeopardize timely processing of any work, transmit the Form 813 and related documents via a Form 3210, Document Transmittal, or Form 10869 as soon as the Form 813 is controlled on the system. Maintain a copy of the transmittal for document control on the NMF Block listing. Types of conditions where a one day delay may cause concerns are as follows:

    Figure 3.17.46-12

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

    • Month end processing.

    • Notice issuance on weekends and holidays.

    • Expedite cases.

    • Workload inventories.

3.17.46.2.5  (01-01-2012)
Certification—General

  1. All assessments must be certified by signature of an authorized official on the Summary Record of Assessment (Form 23C, Assessment Certificate—Summary Record of Assessments). A signed Summary Record of Assessment authorizes issuance of notices and other collection actions (refer to IRC Regulations 301.6203–1).

  2. Most actions prescribed by this Chapter will be summarized on a Summary Record of Assessment by RACS.

  3. Some assessments are prescribed for expeditious action and will be certified on a daily basis. These assessments will require immediate preparation of the Summary Record of Assessment.

  4. Each block of assessment documents will have a Form 813. The Form 813 should be annotated with the following:

    • 23C Date

    • Journal Number

    • Journal clerk's initials

  5. The ANMF system has two types of assessments: pre-journalized and post-journalized. Form 813 for pre-journaled documents must be annotated with all the information in (4) above and must also include the NMF status. Post-journaled documents will generate a Recap, which will have the 23C date and the NMF status set by the system. The journal number and journal clerk's initials must be annotated on the Recap after journalization.

  6. The ANMF system will set the 23C date for three weeks in advance. The 23C date will be reset each week after the Thursday night processing is completed. Items input on Friday will carry the next 23C date set by the system.

3.17.46.2.6  (01-01-2011)
Certification of Overassessments

  1. The following instructions pertain to existing NMF accounts on the ANMF System and those closed ULCs that should be reopened.

  2. Form 1331/1331B, Notice of Adjustment, (posting copy) will be the posting document for the abatement. It will be received with the following documentation attached:

    1. The original assessment document or return with the overassessment label or stamp attached.

      Note:

      If the original document cannot be obtained a dummy document will be prepared with documentation that the original cannot be located. If the original assessment is on ANMF, a copy of the Taxpayer correspondence, or other source document which supports the abatement may be attached.

    2. If credit amounts are to be applied to another Non-Master File or a Master File account, a Form 3809, Miscellaneous Adjustment Voucher, or Form 2424, Account Adjustment Voucher, will be prepared by the originator and attached to the Form 1331/1331B. The credit transfer information will be noted in the appropriate place on the Form 1331/1331B. The Form 3809 and Form 2424, both debit and credit portions, will be forwarded for processing. The NMF account will remain in a credit balance until the debit side of the Form 3809 or Form 2424 is posted. For credits, the 23C date of the assessment or the paid date(s) whichever is later, will be considered the paid date(s) of the credit.

    3. Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund, if the credit amount will be refunded.

    4. Other documentation, Form 3870, Request for Adjustment, requesting overassessment etc.

  3. The full amount of the overassessment will be listed as an abatement on both the Form 1331/1331B and overassessment label. If the abatement credit exceeds the balance of the account, the disposition of the credit must be entered in the appropriate portion of Section II of the Form 1331/1331B.

    Example:

    Refunds and accrued interest paid or the credit transferred areas.

  4. List Form 1331/1331B on Form 813. The Form 3753, or Form 5792, will be listed on separate Form 813.

  5. The Manual Refund function will prepare Form 2188, Voucher and Schedule of Overpayment and Overassessments, from Section II of Form 1331/1331B—for the net decrease in liability (total of refund elimination plus credit; total of the abatement etc.)—to certify the amounts of overassessment on Form 813. Enter the schedule number and schedule date of Form 2188 on the Form 813, Form 1331/1331B and Overassessment sticker. Enter the schedule number on the posting copy of Form 1331/1331B.

  6. The refund amount will be scheduled on Form 1166, Refund Schedule. Copies of the refund document will be attached to the Form 1166 and to the Form 2188.

  7. Part 2 of Form 1331/1331B and the supporting documentation will be attached to the original assessment document and forwarded to RACS for input to the Form 813 Block Control screen. Part 1 of Form 1331/1331B goes to the taxpayer.

  8. The renumbered original assessment document, Form 813 part 1 and Form 1331/1331B part 2 will be forwarded to NMF for input of the abatement or credit through the SUBSEQUENT TRANSACTION INPUT screen.

    Note:

    Input the schedule date for ALL transactions, including TC 291 and TC 301.

  9. Enter the name/employee number of the initiator in the history area.

  10. Enter the schedule number into the Cross Reference field of the related NMF account. This can be accomplished by the DBA through the Notice Correction screen.

  11. The Manual Refund function will forward Form 1331/1331B, a copy of Form 1166, Form 3753 or Form 5792, and the related case files through RACS to the NMF function for simultaneous posting of the abatement and refund to the NMF account per IRM 3.17.79, Accounting Refund Transactions. NMF will input the appropriate transactions for credit, refunds, etc., to the NMF account through the SUBSEQUENT TRANSACTION INPUT screen.

3.17.46.2.7  (01-01-2011)
NMF Service Center Control File: Abstracting

  1. The NMF Service Center Control File (SCCF) has been established to control NMF documents in process within the campus and to summarize collected revenue by type of tax.

  2. Entry on the control file is by Form 813 input through ISRP.

  3. Clearance from the control file is made from entries on the Block Summary on the reverse of Form 813 (part 2) via command code (CC) SCFAJ by Data Control. Clearance normally requires re-input from this form of the identical money amount and item count shown on the Form 813 used to establish the control file. Information to complete the Block Summary is obtained from the pre-journalized documents or from post-journalized RACS Recap Summaries generated from the ANMF System.

    Note:

    An ANMF/SCCF Interface was implemented on January 5, 2007 for daily systemic posting of the Good Block Proof Records or 0-5 adjustments to the NMF SCCF. ANMF001 File is sent to ECC at MEM for input to the newly created SCF16 output file which produces a Run-to-Run Control Report, Error Report, and ANMF Input Recap Control Listing for use by the Data Control function. This process coincides with the ANMF/RRACS Interface, i.e., ANMF SC RECAP, thereby minimizing reconciling items and manual SCFAJ adjustments.

    1. The money amount will be entered as one or more amounts identified by a specific code (abstract number) as entered in item (a) of the Block Summary; total of these amounts must equal that of item (d) credit or debit amounts applied to the NMF.

    2. If more than two abstract numbers and amounts are necessary, list each above block (a) on Form 813 (part 2).

    3. Post-journalized RACS Recap Summaries may require partial block clearance from the NMF Service Center Control File. Care should be taken to maintain the balance of the control file item count and money amount if this occurs.

  4. Exceptions to the preceding are—

    1. If the block of returns represents refundable or non-remittance taxable returns, or blocks of audit or data processing adjustments (doc. code 47 or 54), enter "0" (zero) as the money amount of the abstract.

    2. The doc. code 47 or 54 entry will not bear an abstract number; the return blocks must bear a valid abstract number.

    3. Non-remittance returns and refundable returns with doc. codes that do not appear in the Accounting and Operating Reports IRM 3.17.41, Accounting and Operating Reports, do not need an abstract code or zero money amount entry on Form 813 (part 2).

  5. If a remittance should be processed to a Master File account but has been improperly numbered in an NMF block:

    1. Prepare Form 813 listing each remittance amount.

    2. Renumber the document in the proper Master File series.

    3. Route to Data Control function for on-line SCCF adjustment.

    4. Cross reference the two Form 813 to indicate the disposition and source of the return; reduce the item count on the original form by the number of all returns renumbered.

    5. If a return or remittance should be processed NMF but has been misblocked (numbered in an improper series), process it as NMF following the instructions stated in IRM 3.17.46.2.7(5) above. See IRM 3.17.46.2.7 (5).

  6. All collections, reversals or subsequent re-applications must be identified for reporting purposes by an abstract number. Abstract numbers can be computer generated for some documents, but must be manually determined and input to the system for others. The proper abstract numbers applicable to collections on the various returns and documents are listed in Exhibit 3.17.46-6 and may also be found in Accounting and Operating Reports IRM 3.17.41, Accounting and Operating Reports.

    1. Returns which report only a single type of tax (e.g., Form 1042 or Form 1040-NR) will have the abstract number generated and need no manual determination. Those returns reporting more than one type of tax (Form 11, Form 5330 or Form 4720), require manual determination of the payment by the specified abstract number.

    2. If the document is listed in Accounting and Operating Reports IRM 3.17.41, Accounting and Operating Reports, as requiring manual abstracting, entry of the total credit and specified abstract number must be shown in block "a" of the NMF Block Summary on the reverse of Form 813 (part 2).

    3. If the block of returns or vouchers contains credits to more than one type of tax, enter the amount allocatable to each type, identified by the appropriate abstract number, in block "a" of the NMF Block Summary. The total amount entered must equal the amount of the credit being applied from the block as entered in block "d" .

    4. If the return is underpaid and requires multiple abstracts, enter the number beside the respective liabilities for entry onto the ANMF System. Allocate payments received sequentially starting with the lowest abstract number; do not attempt to prorate payments to all types of tax represented.

  7. Collections may be received for certain types of penalties for which the computer programs necessary for abstracting have not been completed, requiring a special manual compilation and reporting.

    Note:

    Items which require special manual compilation will be identified in other sections of this manual.

    1. Enter all collections for certain types of penalties for which computer abstract programs have not been completed on the reverse of Form 813 (part 2) as abstract number 139, OTHER for Unidentified Collections.

    2. Prepare a register titled "Abstract of Specified Taxes and Penalties" . Accumulate figures and collections for each type of tax or penalty by the assigned abstract number by area on a monthly basis on the register.

3.17.46.2.8  (01-01-2011)
Limitation on Assessment

  1. An assessment cannot be made after the statutory period of limitations has expired. The Submission Processing Director is required to report immediately upon discovery of cases in which the statutory period of limitations expires prior to assessment of deficiencies. When such a case comes to the attention of the deficiency clerk or accounting control clerk, follow local procedures and prepare Form 3210, Document Transmittal, Barred Statute Case Control and forward it to the Statute Unit. The Statute Unit will reply with the appropriate information to prepare a report for the Submission Processing Director on Form 9355, Barred Statute Report.

3.17.46.2.9  (12-09-2011)
Reversing Erroneous Abatements

  1. General—This section provides instructions for processing non-rebate erroneous abatement cases in which Master File computer programming prevents the reversal of abatement transactions after the Statute of Limitations for Assessment has expired. These cases are limited to situations in which an erroneous abatement occurred due to a clerical error that served to reduce the tax liability of that account or another account, a bankruptcy discharge, or an unauthorized abatement that occurred after referral to the Department of Justice. See IRM 25.6.1.10.2.1.1, Reversal of Erroneous Abatements. The Service will treat the account as any other account where the original tax liability has never been paid. Refer to IRM 3.17.243.2, Miscellaneous Accounting, for additional background information and Credit and Account Transfer procedures.

  2. The Scheduling function will receive the Form 3465 package and:

    • Have a DLN assigned to the Form 3465.

    • Use doc. code 54.

    • Use true tax class as the 1st digit of the block series.

    • Prepare Form 813.

    • Prepare Form 2188 reversing the amount of the erroneous abatement by bracketing the amount.

    • Photocopy Form 3465 and the memo to the Accounting Operations Manager in the Cincinnati Submission Processing Campus.

    • Attach the photocopy of Form 3465 and the original memorandum to the Accounting Operations Manager in the Cincinnati Submission Processing Campus to the permanent file copy of the Form 2188.

    • Associate the photocopy of the Accounting Operations Manager memo with the original Form 3465 and forward with the Form 2188 to the Certifying Officer for signature.

    • Forward the Form 2188, original Form 3465 with Form 813, photocopy of the Accounting Operations Manager memo and the original letter to the taxpayer (if a notice is required) to the RACS function.

  3. RACS will input the Form 3465 to the Form 813 Block Control screen. The Form 3465 will be the source document used for input.

  4. The Form 514-B for the account transfer from MF will be processed following normal Transfer-in procedures. See IRM 3.17.46.5.20.

    1. NMF will load the Form 514-B into Status 89. A TC 470 must be input to the ANMF database along with the other transactions. With TC 470, use a closing code 90 and the current date as the transaction date. The TC 470 will prevent an erroneous notice from generating if the Form 514-B has a balance due or if the Form 3465 indicates "No Notice to Taxpayer."

    2. Code and edit any information necessary to accomplish the loading of the account.

    3. Establish the account using the actual tax period ending through the Load Old Accounts/Transfer-in screen.

    4. Establish the account using the Entity information from the Form 3465.

    5. Establish the account in Status 89.

    6. Input the Reinstated 23C date (usually more than 3 years old).

    7. Input the first notice date (MM/DD/YYYY) in the Cross Reference field. This will be recorded as an audit trail of the actual first notice date. Do not input any notice dates from the Form 514-B into the Second, Third, Fourth, TDA or 53'd Date fields. These may be entered later as History items.

    8. Use the TC 470 date as the Claim Adjustment Pending date, if applicable.

  5. NMF will process the TC 860 through the Subsequent Transaction screen. The Form 514-B must be Loaded to the database prior to the input of TC 860.

    1. Form 3465 must contain the following:

    2. Transaction Code 860.

    3. Transaction date—use the date of the Form 3465

    4. Composite amount (tax, penalty and interest combined).

  6. Forward Form 3465 and all related documents to the NMF Accounts Maintenance function as soon as the TC 860 is input.

  7. The Accounts Maintenance function will analyze each Form 3465 TC 860 request, if the reversal account was on the MF and Form 3465 indicates "No Notice to the Taxpayer" :

    1. Request a transcript of the NMF account.

    2. Photocopy the Form 3465.

    3. Forward the transcript and the copy of Form 3465 to the originator for transfer of the credit.

  8. If the reversal account came from the MF or originated in NMF and the Form 3465 indicates "Notice to the Taxpayer" :

    1. Prepare Form 3177 for input of TC 472 and route to RACS for input to Form 813 Block Control Screen.

    2. Request preparation of Form 6335 for the first notice to the taxpayer. Forward the request to the NMF DBA. The DBA will input a "reissue first notice" indicator through the NMF Weekly Correction screen after the TC 472 has posted. The NMF Standard Statement notice will generate the following Monday.

    3. Mail the first notice and the original letter to the taxpayer on the Friday preceding the projected Monday date on the first notices.

    4. Forward a transcript of the NMF account and a copy of the Form 3465 to the originator.

    5. The system will not compute penalty and interest on the TC 860 account and the generated notices will only show the balance due amount, without accruals. An accounts maintenance transcript will also be generated as an aid for manual computation of penalty and interest accruals.

    6. Type the penalty and interest accruals and the total balance due on the generated subsequent notices and mail to the taxpayer.

  9. For Non-Master File accounts only—If the reversal account was assessed as an NMF account or the original NMF assessment was abated twice, the following procedures apply.

    If Then
    If the Account has a credit balance NMF accounts maintenance will:
    • Request a current transcript of the account

    • Prepare a memo to the Branch Chief requesting authorization to reverse the erroneous abatement

    The Branch Chief approves the request to reverse the erroneous abatement
    • Prepare Form 3465 and include all the entity information with the TC 860 amount

    • Annotate the Form 3465 "Post to the original NMF Account "

      Note:

      The Form 3465 will be posted as a subsequent transaction to the existing NMF account.

    • Forward the Form 3465, memo and NMF transcript to the NMF Scheduling function for preparation of Form 2188 and Form 813 as outline in IRM 3.17.46.2.9(7)

    • NMF Scheduling will forward the package to RACS for input to the Form 813 Block Control screen

    • RACS will forward to NMF for processing through the Subsequent Transaction screen

    The account was originally assessed as an NMF account and the TC 860 will create a balance due on the account Follow the same procedures as described for the Master File account with the exception of transferring the account

  10. Forward the Form 3465 with Form 813 to Returns Files after the month end balancing.

  11. Payments received on the TC 860 accounts will be processed as normal NMF subsequent transactions.

  12. If more than one 23C date is involved in the reversal (i.e., TC 150 and TC 290), a separate account with a TC 860 must be prepared for each of the 23C dates involved.

3.17.46.2.10  (01-01-2011)
Reversal of Trust Fund Recovery Penalty (formerly 100% Penalty) Abatements

  1. The Two Year Hold TDA Monitoring file in the Collection Branch has been discontinued and all remaining liabilities have been abated. Subsequently, when the full amount of a Trust Fund Recovery Penalty is collected, the remaining liabilities will be abated. When a claim for refund is filed by the responsible person prior to the collection statute, reversals of the abatement may be necessary.

  2. These accounts will be maintained in NMF because the Civil Penalty Module cannot handle the reversal of the abatement using the reinstated 23C date.

  3. Collections will prepare Form 12810, Transfer Request Checklist, a Form 3465 and a Memorandum of Authority requesting transfer of the reversal to NMF.

  4. The Account Transfer function will prepare a Form 514-B to input the TC 400 to the Master File. When the TC 400 posts to the Master File, the Accounts Transfer function will prepare another 514-B to establish the account on the ANMF system.

  5. The Form 3465 and Memorandum of Authority will be forwarded directly to the Scheduling function without being routed through the Statute function. The Form 3465 will be assigned a DLN with doc. code 54. A Form 2188, Voucher and Schedule of Overpayments and Overassessments, will be prepared to reverse the abatement.

  6. The account will be established on the ANMF system using the 23C date of the original assessment with a Transaction Code 860. DO NOT issue a notice; issue an immediate TDA. Entries unique to the establishment of these accounts are as follows:

    1. Input a "R" into the Notice Type field.

    2. Input "22" into the NMF Status field.

    3. Input "today's date" into the TDA Date field.

    4. Input the statement "Reversal of Trust Fund Recovery Penalty Abatement" into the Cross Reference field.

  7. See IRM 3.17.46.9 to establish TDA via IDRS.

3.17.46.3  (01-01-2011)
Assessments/Non-Master File Returns

  1. Receive returns with Form 813 (parts 1 and 2) for each block from the Returns Analysis function. Form 813 (copy of part 1) will be received separately in the Accounting Control Package.

    1. Misblocked Master File, Non-Master File or out of area (campus) returns will be identified by annotating the appropriate money amount on Form 813. Full paid returns will be identified on the Form 813 if paid interest is included or if the return becomes underpaid because of a mathematical error or insufficient remittance tendered.

    2. In full paid blocks, float underpaid returns identified as math error or misblocked part paid to the top of the block to ensure proper listing. Request Data Control to make an on-line SCCF adjustment for the renumbered returns.

    3. If the return is out of the campus area, prepare Form 2275 to include name and address of the taxpayer, return DLN and amount of credit applied. Insert Form 2275 in the proper sequence in the block and forward the return to the transfer clerk.

    4. Determine the amount of tax collected by the type of tax and enter item "a" of the NMF Block Summary on the reverse side of Form 813. Do not include items transferred from the block for renumbering.

    5. RACS will enter the Form 813 information onto the ANMF System using the Form 813 Block Control screen and then forward Form 813 (parts 1 and 2) and the returns to NMF for establishment of an account on the ANMF system.

  2. Upon receipt of the various NMF Recaps, complete the NMF Block Summary on the reverse of Form 813 (part 2). List the DLN serial number, amount assessed, amount of payment applied or deleted from the block, amount interest paid and the General Ledger accounts.

  3. All returns should be released to files immediately after completion of the processing action.

  4. If the returns should be processed to a Master File but have been improperly numbered in a Non-Master File block, or if a Non-Master File return is improperly blocked, delete it from the block as instructed in IRM 3.17.46.2.7(5). See IRM 3.17.46.2.7 (5).

3.17.46.3.1  (01-01-2011)
Non-Remittance Returns—Non-Master File Returns

  1. Receive returns from batching under control of Form 2345, Batch Transmittal. Returns will be numbered and blocked as assessable returns.

  2. Prepare Form 813 for the assessable blocks, listing the amounts to be assessed. Use the DLN from the Form 2345 and verify that the item count on the Form 813 equals that of the Form 2345.

  3. Upon receipt of the various NMF Recaps, complete items (a), Abstract Number and Amount, on the NMF Block Summary of Form 813 (part 2) for all taxable blocks. See IRM 3.17.46.2.7.

  4. Examination audit "no changes" will no longer be established on NMF, after being closed by Examinations or Audit Information Management System (AIMS). The "No Changes" will be sent to the Files area in the campus where they were closed.

3.17.46.3.2  (01-01-2011)
Additional Assessments

  1. These procedures apply to the additional assessments of tax, penalty, and interest on NMF returns and MF returns for which the additional assessment will remain on the ANMF.

  2. For instructions on accelerated assessments which will be immediately transferred to a Master File (never really established as Non-Master File accounts), see IRM 3.17.244, Manual Assessments, which contains procedures for processing Quick, Prompt and Jeopardy assessments. The ANMF system will only accommodate one abstract number per assessment/account. If any assessment document is received indicating assessments that carry multiple abstracts, return the document to the originator requesting preparation of additional documents. Multiple abstract assessments generally are related to multiple penalty sections on one document.

  3. Requests for original assessments will normally be received on:

    1. Action memorandum based on a court order;

    2. Various NMF returns;

    3. Form 1296, Assessment Against Transferee of Fiduciary;

    4. Form 2644, Recommendation for Jeopardy/Termination Assessment;

    5. Form 2749, Request for Trust Fund Recovery Penalty Assessment;

    6. Form 2859, Request of Quick or Prompt Assessment;

    7. Form 4881, Chapter 42 Taxes-Disqualified Person/Foundation Manager;

    8. Form 5344, Examination Closing Record;

    9. Form 5403, Appeals Closing Record;

    10. Form 5599, EO Examined Closing Record;

    11. Form 5650, EP Examined Closing Record;

    12. Form 5734, NMF Assessment Voucher;

    13. Form 8278, Assessment and Abatement of Miscellaneous Civil Penalties.

  4. Form 5344, Form 5403, and Form 5599 contain coded information which must be input to the NMF account. Special handling instructions may appear on the forms.

  5. Form 4881 may assess one or more excise taxes against a foundation manager or other individual. The entity liable is the one entered in the left box at the top of the form.

    1. Taxes entered must be for only one period. If more than one period is shown on the form, return it to the EO function for preparation of additional forms.

    2. If more than one type of tax is entered, return to the EO function for proper editing of the form. All taxes (both initial and additional) should be accumulated into one total amount.

  6. If Form 3244A, part 2, Payment Posting Voucher—Examination, is attached to the assessment document, determine if the payment has been assessed or unassessed. See IRM 3.17.46.8.5 for further processing instructions.

  7. Forward Form 813 (parts 1 and 2) and related documents to NMF for establishment of an NMF account.

  8. When a memo of credit is indicated on an assessment:

    1. Assess for the full amounts.

    2. Prepare Form 3177 to input TC 470 and include the identifying information of the person calling, i.e., name, telephone number, organization, etc., and the amount of credit. Where the credit is to be moved from should be input to the History section of the account.

    3. Attach the original backup documentation from the Area Office to one copy of the Form 3177.

    4. Mail parts 1 and 2 of the statement of tax due IRS (Form 6335) to the taxpayer.

3.17.46.3.3  (01-01-2011)
Disposition of Processed Documents

  1. The NMF Cycle Proof List (CPL) is received at the beginning of each month, listing all of the blocks of documents that have been processed during the preceding month.

    1. Associate the returns and other documents with the Cycle Proof List for release to files.

    2. Some returns are charged from the blocks with a Form 2275 and routed to Examination or other functions according to instructions elsewhere in this IRM. The folders containing the charged documents should also be associated with the CPL as if the returns were still present.

  2. When monthly balancing has been completed, route the CPL and associated documents to Files.

    1. Files will check off each item on the CPL to verify that the correct blocks have been received.

    2. If any block shown on the CPL is not associated, annotate the item on the listing so that Files will know that the block will be retained in NMF.

  3. Be sure to keep a copy of the CPL for one year, as this is the only permanent record of processed blocks.

3.17.46.3.4  (01-01-2011)
Statute Cases

  1. Returns or documents that are not assessed or collected within the statutory periods prescribed by law result in a loss of revenue to the Internal Revenue Service and require the preparation of Statute Expiration Reports.

  2. The normal ASED expires three years from the date the original return was filed; or three years from the due date of the return, which ever is later (IRC 6501(a)).

  3. Delinquent NMF returns should be flagged by Code and Edit to alert Accounting of a statute condition. These returns should be researched by a designated "statute specialist" in NMF for any previous assessments involving the same tax and tax period ending. After this research is performed, the returns should be forwarded to the Statute Limitations unit (may be hand carried) for statute clearance. All research should be attached for the Statute unit to review.

  4. Amended returns on which the expiration of the statute of limitations is imminent (four months or less) should also be flagged by Code and Edit to alert Accounting of the statute condition. These may be routinely assessed with a 23C date on or before the statute expiration date.

3.17.46.3.5  (07-06-2012)
Armed Forces Combat Zone—Deferment of Filing and Collection Requirements

  1. Section 7508 provides that the Service must disregard a period of time when determining whether certain acts are performed timely when an individual is in a combat zone. The acts that are postponed include acts performed by the taxpayer, such as filing a return or paying tax due, and acts performed by the Service, such as assessing and collecting tax. The time to be disregarded is that period during which the individual serves in a combat zone or hazardous duty area, plus the period of continuous hospitalization attributable to an injury received during that time, and the next 180 days thereafter. The Persian Gulf area is an official combat zone. Bosnia/Herzegovena is an official hazardous duty area. No interest or penalty will be charged during this time frame.

    Note:

    Any documentation indicating Enduring Freedom, Operation Enduring Freedom, Operation Iraqi Freedom, Iraq, Combat Zone, or similar annotations is identified as Combat Zone.

    1. The hospitalization period to be disregarded is for both inside and outside the U.S., however, the period inside the U.S. is limited to five years.

    2. Although no penalty or interest is charged the taxpayer during this period, interest owed to the taxpayer will continue to accrue from the due date of the return for those who timely file under IRC 7508.

    Note:

    Combat Zone accounts are identified by a -C freeze on MF. The freeze remains on the account even after the taxpayer is no longer in the Combat Zone. Research can be done on CC IMFOLE for Combat indicator to determine if the taxpayer is still in the Combat Zone. Combat Indicator "1" indicates taxpayer is still in a combat zone. Combat indicator "2" indicates the taxpayer is no longer in a combat zone.

  2. If notified by Accounts Management, Collection, or Examination that an existing NMF account (true tax class 2 or 5 with an SSN) involves someone in the combat zone or hazardous duty area, NMF will suspend further notice issuance. An entry and departure date must be provided.

  3. A Form 3177 must be prepared to input the TC 500 to the NMF account through the Subsequent Transaction screen to suspend notice issuance. The TC 500 transaction date will be the entry date into the combat zone.

    1. Input a "R" in the Exception Code Field to restrict interest and penalty.

    2. Form 3177 should be numbered with a doc. code 77 and Blocking Series 999 for the primary SSN and 888 for the secondary SSN.

    3. TC 500 will move the NMF account from any status into status 89 (Suspense) and generate a Status Change Recap.

  4. The account will be held in status 89 for the length of time the individual is in the combat zone or hazardous duty area plus 180 days.

  5. A Form 3177 must be prepared once it is determined that the notices/TDA should resume. The TC 502 transaction date will be the date of departure plus 180 days.

    1. Form 3177 should be numbered with a doc. code 77 and a Blocking Series of 999 for the primary SSN and 888 for the secondary SSN.

    2. The TC 502 will move the account from status 89 into the previous account status and generate a Status Change Recap.

  6. Routine notice/TDA issuance will resume once the TC 502 posts to the account, however, the generated notice/TDA will not include accruals. An associated "DS500" transcript will also be generated at the time a notice/TDA is generated. This transcript is to be used to assist in the computation of accruals which must then be typed onto the "entity only" notice. No interest or penalty should be charged for the length of time the taxpayer is in the combat zone or hazardous duty area, plus 180 days.

3.17.46.4  (01-01-2011)
Non-Master File Assessments and Timeframes

  1. The requester will establish when the assessment must be made. Jeopardy, Termination and Statute cases must be assessed immediately. Quick and Prompt assessments which request specific assessment dates should be made by that date. Assessments which are neither statute imminent nor request a specific assessment date must be made within two weeks.

  2. Original requests for assessments are the source documents. If requests are made via facsimile machine then the source documents must also be faxed to the campus. If the source documents are too voluminous, then the requester is required to immediately send the source documents to the campus. If the source documents are not received within five working days, follow up with the requester to secure the source documents. Management involvement may be needed if there is no reply. Refer to Manual Assessments 3.17.244.

  3. For "Weekly" Assessments only: If a holiday falls on a Friday, the cut-off for processing weekly assessments (input to the Block Control screen) will be that Wednesday preceding the Friday holiday.

3.17.46.4.1  (01-01-2011)
Daily Assessments

  1. Daily assessments are made to protect the assessment from being barred by the statute of limitations or to expedite the collection process. These assessments will be made through the Original Assessment-Daily screen of the ANMF System to generate Form 6335 (NMF First Notice).

  2. RACS will assign a DLN to daily assessments, prepare Form 813, journalize assessments through RACS using the RACS window, enter the Form 813 information onto the ANMF System using the Form 813 Block Control screen and stamp Form 813 with the journal number and the 23C date.

    1. Form 23C will be signed and the requesting office will be informed of the date of signature and the DLN of the assessment.

    2. For Jeopardy assessments only, a separate Form 813 and DLN is prepared for each Jeopardy assessment. Multiple assessments against the same taxpayer can be included on the same Form 813.

  3. RACS will forward the Form 813 and the related documents to NMF for input to the ANMF System through the Original Assessment-Daily screen.

  4. In some instances assessments may be faxed to the campus for immediate assessment. Faxed requests must furnish the following minimum information:

    • Affirmative statement that the Area Director has approved Form 2644 for Jeopardy or Termination assessments;

    • Name, address and Taxpayer Identification Number;

    • Type of tax and taxable period;

    • Amount of tax, interest and all penalties to be assessed;

    • Amounts of payments, if any, and balance due;

    • Type of assessment: Quick, Prompt, Jeopardy or Termination;

    • Appropriate abstract number;

    • Transaction codes.

  5. The standard billing schedule will apply to all NMF Quick Assessments. Input a "1" into the Notice Type field when establishing the account.

  6. Jeopardy or Termination Assessments will require a Form 6335 (NMF First Notice) and an immediate TDA. Input a "Z" into the Notice Type field when establishing the account.

  7. When the initiator of an NMF statute imminent assessment indicates that credits which are posted to Master File are in the process of being transferred to the tax period which is being assessed on NMF. NMF will assess the tax and the notice mailed to the taxpayer will reflect the anticipated credit.

    1. Prepare a manual notice to reflect the anticipated credit via the Alternative Notice System.

    2. Enter remarks in history area: MF transfer to NMF - Transaction Code, Transaction Date and Amount

    3. Enter "M" in the Exception Code field to prevent issuance of fourth notice to allow time for the credit to post.

    4. When the credit posts, remove the "M" from the Exception Code field.

      Note:

      Preparation of the document required to transfer the MF credit(s) to NMF remain with the initiator of the assessment request.

3.17.46.4.2  (01-01-2012)
Weekly Assessments

  1. Assessments where the statute of limitations is not imminent or no specific immediate assessment date is requested or required will be made as a weekly assessment. Systemically, the 23C date (assessment date) is set to coincide with the RACS 23C date which is the current Monday date plus 21 days.

  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 Form 813.

  3. RACS will forward Form 813 and the related documents to NMF.

  4. NMF will input the assessment to the ANMF System through the Original Assessment-Weekly screen.

  5. The ANMF SC RECAP is generated the following day after the account posts to the NMF database.

    1. It is essential that all unpostable assessments are corrected immediately upon discovery to protect the 23C date.

    2. If the unpostable is corrected by the close of business (COB) Thursday, the assessment will carry the current 23C date. However, if the unpostable is not corrected until Friday, the assessment will carry the next consecutive 23C date.

  6. NMF will forward the Recap(s) to RACS for journalization. The related Form 813 (part 2) will be associated and the reverse side worked as instructed in IRM 3.17.46.2.4. This will only occur if manual journalization is required. See IRM 3.17.46.2.4 (4) for the ANMF SC RECAP procedures.

    1. After journalization, RACS will stamp the Form 813 (part 2) and the Recap (part 2 and 3) with the journal number. RACS will then input the journal number to the ANMF System using the UPDATE JRN'L screen.

    2. RACS will return part 3 of the Recap to NMF and retain part 2 of the Recap in summary number order.

    3. NMF will annotate the journal number from the Recap (part 3) on the related Recap (part 1) and on the Form 813 (part 1) for an audit trail.

    4. NMF will retain part 3 of the Recap in journal number order.

3.17.46.4.3  (01-01-2011)
Controlling Blocks

  1. Input of the Form 813 information using the Form 813 Block Control screen is the major control for all items entered onto the ANMF System. All blocks of documents that are either pre-journalized or post journalized will be input to the Form 813 Block Control screen. See IRM 3.17.46.13.4 for further instructions. The only exceptions are Even returns, Refund returns, NMF Extensions of Time to File, entity changes, transfer-in and loaded old accounts (ULCs).

  2. There are three listings generated through the ANMF System that are associated with input through the Form 813 Block Control screen.

    1. NMF Block Listing—is printed by the DBA on a daily basis. This listing shows all Forms 813 input through the Form 813 Block Control screen on the previous work day, except "dailys" . This list is forwarded to RACS immediately after generation and is used by RACS as a cover sheet to transmit all Forms 813 and the related documents to NMF for processing.

    2. Unprocessed Block list—is printed by the DBA on a weekly basis. This listing is generated when the controlling information from a Form 813 has been set-up on the Form 813 Block Control but the related documents have not been input. This listing is used as a management tool to insure proper workflow between the NMF and RACS functions.

    3. Block Out of Balance List—is printed by the DBA on a daily basis. This listing is generated when the input transactions and the Block Control File match on DLN but the item count or debit amounts and credit amounts DO NOT match. The listing is used in conjunction with the Error Register to determine the cause of an imbalance.

  3. One listing generated through the ANMF System is associated with input to the Update Journaled RACS Recaps screen. This listing is called the RECAP of Journaled RACS Summaries and is printed on a weekly basis. The list shows all Recaps generated during a given week and also includes the journal number. The list is used as an additional balancing tool.

3.17.46.4.4  (01-01-2011)
Association of Recaps and Form 813

  1. Many actions taken on the ANMF System (i.e., weekly assessments, status changes, subsequent transactions, etc.) will generate a Recap. All Recaps are printed on 3 part paper. Part 1 remains with the documents in NMF. Parts 2 and 3 are forwarded to RACS and after journalization, part 3 is stamped with the journal number and returned to NMF and held for balancing purposes.

    Note:

    The ANMF SC RECAP replaced Parts 2 and 3 of the NMF or RACS Recaps throughout this section. The instructions for Parts 2 and 3 will be used only if manual journalization is necessary.

  2. Each day that the Recaps are generated, the Recap (part 1) is associated with the posting or assessment documents by DLN and reviewed to verify that the item count and money amount is correct. The corresponding Forms 813 (part 2), RACS Recaps (parts 2 and 3) and Transmittal Recap of RACS Summaries will be associated and forwarded to RACS for journalization. Form 813 (part 1) will be retained with the documents when partial block closures occur. The Recap and the posting documents are held in NMF until the NMF monthly balancing is completed. At that time, they are associated with Form 813 (part 1) and forwarded to Returns Files. The Recap and assessment documents are held in NMF for notice review and are available for month-end balancing before being forwarded to Returns Files.

  3. If the RACS Recap is identical to Form 813 (item count and money amount) of the posting or assessment document(s), follow the steps below:

    1. Notate parts 1 and 2 of the Form 813 "CLOSED" and the date the Form 813 is closed.

    2. For subsequent payment posting documents, associate Form 813 (part 1) and the RACS Recap (part 1) with the documents until NMF monthly balancing is completed.

    3. For original assessment documents, associate Form 813 (part 1) and the RACS Recap (part 1) with the documents for notice review.

    4. Associate all Forms 813 (part 2) with the RACS Recap (parts 2 and 3) and forward to RACS for journalization.

    5. Verify and annotate that all Recaps listed on the Transmittal Recap of RACS Summaries are indeed associated for release. Forward parts 1 and 2 of the Transmittal Recap to RACS for signature to verify receipt of all Recaps listed. Retain part 3 in NMF until part 1 is signed and returned by RACS. After RACS returns part 1 of the Transmittal Recap to NMF, part 3 can be destroyed. NMF will retain a file of both the Recaps and Transmittals.

  4. If the RACS Recap is not identical to the Form 813 (in item count and money amount) of the posting or assessment document, an unpostable condition generally exists. If the Form 813 carries more than one item and the unpostable condition cannot be corrected that day, then a partial block (Form 813) will be forwarded to RACS to journalize the posted items.

    1. Notate the following on the Form 813 (part 2):

    2. Item count.

    3. Dollar amount total of Form 813.

    4. "P" with the posted item count.

    5. Total posted dollar amount.

    6. Recap summary number.

    7. Make a photocopy of the annotated Form 813 (part 2).

    8. Associate the photocopy of Form 813 with the Recap (parts 2 and 3) and forward to RACS for journalization.

    9. Associate Form 813 (parts 1 and 2) and the Recap (part 1) with the posting documents and hold in NMF until final resolution of the partial.

  5. After final resolution of the partial, notate the Form 813 with the following:

    1. "P" with the actual item count from the Recap.

    2. "PD" with the item count number from the document DLN.

    3. Total money amount posted from the Recap.

    4. Recap summary number.

    5. "CLOSED" and the date closed on both parts 1 and 2 of the Form 813.

    6. Associate Form 813 (part 1) and the Recap (part 1) with the documents for Returns Files.

    7. Associate Form 813 (part 2) with the Recap (parts 2 and 3) and forward to RACS for journalization.

    8. If the Form 813 is a partial, notate a "P" by the DLN on the Transmittal Recap of RACS Summaries. If the Form 813 was a partial and is now completed, notate a "C" by the DLN on the Transmittal Recap of RACS Summaries. No notation is necessary on the Transmittal Recap of RACS Summaries if the Recap and Form 813 were identical originally.

  6. If the Recap and Form 813 (in item count and money amount) do not match and the unpostable condition is corrected by nullifying the transaction, gather all blocks of posting documents by DLN using the NMF Nullified Unpostable list and follow the instructions below:

    1. Notate the Form 813 (part 2) as follows:

    2. "N" with the nullified item count.

    3. Total nullified money amount.

    4. Date of the nullified list (because the NMF Nullified Unpostable list has no summary number).

    5. Highlight the nullified items.

    6. Make a photocopy of the annotated Form 813 (part 2) and attach the nullified document(s) to the front.

  7. If the nullified item(s) with generated Recap(s) completes the balancing of the Form 813:

    1. Notate the original Form 813 (parts 1 and 2) and the photocopy of Form 813 "CLOSED" and the date the Form 813 was closed.

    2. Photocopy the closed Form 813 and attach the nullified documents.

    3. Prepare Form 2275 and indicate "permanent chargeout—documents nullified from NMF processing" for the posting documents removed from the document folder. Annotate the refile DLN if known.

    4. Associate and forward Form 813 (part 1), Recap(s) (part 1) and the posted document(s) to Returns Files after the monthly balancing is completed.

    5. Form 813 (part 2), Recap(s) (part 2 and 3) are associated with the Transmittal Recap of RACS Summaries and forwarded to RACS. Notate an "N" by the DLN of the nullified item on the Transmittal Recap of RACS Summaries.

    6. The photocopy of the closed Form 813 and the nullified document(s) are associated with the NMF Nullified Unpostable Transaction list and forwarded to RACS.

  8. If the nullified item(s) with no generated Recap(s) completes the balancing of the Form 813:

    1. Annotate Form 813 (parts 1 and 2) "CLOSED" and the date the Form 813 was closed.

    2. Photocopy the closed Form 813 and attach the nullified document(s).

    3. Associate the above document with the NMF Nullified Unpostable Transaction list and forward to RACS.

  9. If the nullified item(s) does not complete the balancing of Form 813:

    1. Photocopy the Form 813 and attach the nullified document(s).

    2. Prepare Form 2275 and indicate "permanent chargeout—documents nullified from NMF processing" .

    3. Retain the incomplete Form 813 (parts 1 and 2), the associated Recap(s) and the posted document(s) in the NMF Partial Files until resolution of the partial.

    4. Associate the Form 813 (copy) and the nullified document(s) with the NMF Nullified Unpostable Transaction list and forward to RACS for journalization of the remaining items.

    5. Notate the NMF Nullified list with the items being released to RACS and the items returned to the originator (no journal action required).

    6. Part 1 of the NMF Nullified Unpostable list will be retained in NMF and part 2 of the list will be forwarded to RACS with Forms 813 and the nullified documents.

  10. In some instances a partial document may be the cause of a partial block. This condition occurs when one of the items (documents) listed on the Form 813 has multiple transactions and one or more (but not all) of the transactions go unpostable. If this condition occurs, notate the Form 813 (part 2) with the following:

    1. "P" (for posted items) with the actual item count from the Recap.

    2. "PD" (to indicate the partial document) with the actual item count of the document.

    3. Total posted money amount for the Recap.

    4. Recap summary number.

    5. Make a photocopy of the annotated Form 813 (part 2).

    6. Associate the photocopy of Form 813 with the Recap (parts 2 and 3) and forward to RACS for journalization.

    7. Associate Form 813 (parts 1 and 2) and the Recap (part 1) with the document(s) and hold in NMF until final resolution of the partial.

  11. If the partial document carries an unpostable code 010, and is not a duplicate posting, reinput to the Form 813 Block Control screen (DO NOT create a new Form 813) will be necessary to re-establish the unpostable item ONLY.

    1. In addition to (a) through (e) above, attach a sheet of paper to the photocopy of Form 813 which should indicate the following:

    2. Annotate: re-input due to unpostable code 010.

    3. List the DLN of the original Form 813.

    4. List the new item count.

    5. List the new DR and CR amount.

    6. This sheet of paper will serve as an "in-house" paper Form 813 to provide the documentation necessary to re-input the information to the Form 813 Block Control screen.

    7. After the subsequent transaction posts to the database, normal Form 813 and Recap association will follow.

3.17.46.5  (01-01-2011)
Various NMF Assessments

  1. NMF accounts originate in several different ways, original return assessments, various types initiated by other areas such as Examination, TE/GE (formerly EP/EO) and Accounts Management are routed to Accounting for processing to ANMF.

3.17.46.5.1  (01-01-2011)
Assessments Under IRC 7804(c)

  1. Internal Revenue Code Section 7804(c) provides for assessments to be made against officers and employees of the IRS who either embezzle or fail to properly handle and account for money received in connection with the internal revenue laws. These assessments will be handled under NMF procedures.

  2. IRM 3.0.167, Losses and Shortages, contains more information regarding 7804(c) assessments.

  3. Prior to NMF assessment, the embezzled amount will have been journaled to the 7610 Account and a letter of notice and demand sent.

  4. If payment is not received within 30 days of the notice, a copy of the letter of notice and demand will be forwarded to RACS for prejournaling the assessment from the responsible accounting area maintaining the 7610 Account. The letters will be used as the source document and numbered as follows:

    • Tax Class 6

    • Doc. Code 54

    • Blocking Series is usually designated by tax class with a 200 Blocking Series for individual

    • MFT 20

    • Abstract Number 004

  5. The letters will be coded with a TC 290 amount and the interest (TC 340) computed from the date of the embezzlement to the 23C date. These assessments will be included as Current Assessments on the Assessment Certificate (Form 23C).

  6. After RACS has pre-journaled the assessment and input the Form 813 information into the Form 813 Block Control screen, RACS will forward the Form 813 and assessment document(s) to NMF for further processing.

  7. NMF will establish an account for the assessment on the ANMF system through the Original Assessment—Daily screen. Field entries unique to these assessments are as follows:

    1. Input an "R" into the Assessment Type field of the entity.

    2. Input a "1" into the Notice Type field to produce the Form 6335, first notice.

    3. Input an "8" into the Statement Code field. This indicator MUST be input to ensure the appropriate statement is printed on the notice.

    4. Input the year of the embezzlement into the Period Ending field.

    5. Input the Campus location of the responsible Director in the cross-reference field.

  8. The system will generate the Form 6335 after establishment of the account. Form 6335 should be mailed to the employee in question. NMF Fourth Notice (Form 4840) will be systemically generated six weeks from the date of Form 6335. After an additional six weeks has elapsed, the account will systemically move into TDA /Status 22 and Integrated Collection System (ICS) will be updated to reflect TDA information.

  9. Notify the 7610 coordinator of the TDA issuance so a memo explaining procedures can be forwarded CSCO.

  10. NMF will load 7804(c) embezzlement cases to NMF IDRS once the account reaches TDA status regardless of balance.

  11. After posting of payments, request a transcript of the account and forward to the 7610 coordinator at the site where the loss occurred for preparation of Form 3809 to credit the 7610 Account and debit the 6900 Account.

  12. Additional interest computations on amounts outstanding will apply as outlined in IRM 20.2, Interest.

3.17.46.5.2  (01-01-2012)
Civil Penalties

  1. Previously, most of these penalties were assessed on the NMF since they were not asserted directly in connection with an income tax deficiency. Some of these penalties relate to acts committed by the person penalized, while others are assessed for failure to file or furnish certain information and information documents.

  2. The majority of civil penalties have been moved to the Master File. To accommodate civil penalties, two new MFTs have been created: MFT 55 for IMF and MFT 13 for BMF. Form 8278, Assessment and Abatement of Miscellaneous Civil Penalties, will be used by either area office or campus personnel to request assessment or abatement of certain non-return related civil penalties. In certain situations NMF will still process the civil penalties.

  3. IRC 6702, Frivolous Income Tax Return or Submissions; Penalty Reference Code 666.

    Note:

    For Historical Purpose only -The Penalty Reference Number (PRN) 666 is processed as IRC 6702(a) Penalty to Master File.

    1. Establish an account on NMF for any joint penalty liabilities, such as a jointly filed frivolous return received on Form 5734. Joint penalty liabilities must continue to be processed as NMF since the Master File Civil Penalty Module cannot accommodate joint liabilities. It is expected that penalties asserted under any of the other IRC sections (other than IRC 6702, Frivolous Income Tax Return or Submissions) dealing with civil penalties would affect the liability of one individual, regardless of his/her filing status for income tax purposes.

    2. Use abstract number 190.

    3. Use MFT 28 for accounts to be entered on IDRS.

    4. The DBA will input a "Q" into the Notice Type field of the Weekly Notice Correction screen six weeks after issuance of the first notice (Form 6335).

    5. Return a copy of the notice to the originator.

  4. IRC 6652, Failure to File Information Returns, Reference Code 600:

    Note:

    For Historical Purpose only-Effective December 1, 1989 the Penalty Reference Number (PRN) 600 is processed as IRC 6721 Penalty to Master File.

    1. Establish and maintain an account for penalty assessments for Failure to File Information Returns (IRC 6652) on Forms 6248, 5500, 1042S and 990 series. For blocking series and doc. code see IRM 3.10.72, Extracting, Sorting, and Numbering.

    2. The standard NMF statement and billing schedule will apply (e.g., Form 6335 with the standard statement for Examination assessments if requested by Examination Division or with the standard NMF assessment statement if prepared by other areas).

    3. Use abstract number 139.

    4. Use MFT 28 for accounts to be entered on IDRS.

  5. Penalty assessments on Forms 8329, Lender's Information Return for Mortgage Credit Certificates, and 8330, Issuer's Quarterly Information Return for Mortgage Credit Certificates:

    1. Establish and maintain an account for penalty assessments for the above referenced forms using doc. code 65 and Blocking Series 050–099.

    2. The standard NMF statement and billing schedule will apply (e.g., Form 6335 with the standard statement for Examination assessments if requested by Examination Division or with the standard NMF assessment statement if prepared by other areas).

    3. Use abstract number 139.

    4. Use MFT 28 for accounts to be entered on IDRS.

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

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

  8. NMF will input the assessment to the ANMF System through the Original Assessment-Weekly screen which will generate the first notice.

  9. Mail two copies of the Form 6335 (NMF First Notice) to the taxpayer and forward part 3 to the originator.

  10. Assessment documents will be forwarded to Returns Files after the NMF monthly balancing is completed.

3.17.46.5.3  (01-01-2011)
Community Renewal Act of 2000

  1. The Community Renewal Act of 2000 amends the Reform and Restructuring Act of 1998 Section 6331(k) stating that the service can no longer suspend the Collection Statute of Limitations while certain offers are pending.

  2. NMF should no longer input a TC 481 (rejected OIC) or a TC 482 (withdraw OIC) with a TC 550 extending the Collection Expiration Date on the ANMF system. If a request is received, input the TC 481/482 only. Notify the sender that the TC 550 was not input, citing the Community Renewal Act of 2000 Section 6331(k).

3.17.46.5.4  (01-01-2012)
IMF Accounts Over $1 Billion

  1. Form 1040, Individual Income Tax Return, which cannot be processed to Master File because the module balance is $1 Billion or greater must be routed to the Accounting Function in the Cincinnati Submission Processing Campus. RACS will receive these returns and input Form 813 information through the Form 813 Block Control screen. It is advisable that the NMF Account Specialist review the return for any special handling prior to posting to ANMF. For example, the taxpayer may have a tax deferral which will require coordination with the Adjustment function.

  2. Form 1040 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 10

    • Blocking Series: 000–099 non-remittance

    • Blocking Series: 900–919 with remittance

    • MFT 20

    • Abstract Number 004

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

  4. NMF will input the following transaction codes to the Master File tax period:

    1. TC 590 closing code (cc) 19 using FRM49 on primary SSN to prevent issuance of a TDI notice.

    2. TC 590 closing code (cc) 19 using FRM49 on secondary SSN, if taxpayers filed married filing joint, to prevent issuance of a TDI notice.

    3. TC 971 action code (AC) 502 using REQ77 to indicate a case of $1 billion or more on NMF.

  5. If it is determined that the return is an amended, void the DLN and renumber as follows:

    • Tax Class 6

    • Doc. Code 54

    • Blocking Series: 000–999

    • MFT 20

    • Abstract Number 004

  6. If the tax return indicates a Credit Elect in lieu of a refund, prepare Form 3809 to post TC 830 to Debit NMF and TC 710 to Credit Master File for the next tax period.

  7. Balance Due – The taxpayer usually remits estimated payments and/or may have a credit elect on the Master File prior to filing the tax return. Master File will cause an Unpostable Condition when a payment/credit results in the total balance of $1 Billion or greater. Rejects will notify Accounting to move the payment/ credit to the NMF Unapplied Advance Payments Account 4610. Upon notification, the NMF Account Specialist must transfer all payments/credits via Form 2424 or Form 3809 as appropriate from the Master File module to Account 4610 pending the filing of the tax return.

    1. Research Account 4610 for all payments/credits that were transferred from the Master File. See IRM 3.17.46.8.5 (7) c for applying credits to the taxpayer’s NMF account.

    2. Research Master File to ensure that all payments/credits have been transferred to Account 4610. If not, then prepare Form 2424 or Form 3809 accordingly to transfer the credit to the taxpayer’s NMF account.

    3. Standard billing applies for any remaining balance due.

  8. Route a photocopy of the return (including all schedules) to the following Statistics of Income Unit (SOI):

    CINCINNATI Submission Processing Center (SPC)

    Attn: SOI U-4 Stop 22 M

3.17.46.5.5  (08-01-2012)
Internal Revenue Service Closing Agreements

  1. The Service will occasionally enter into a closing agreement with certain agencies. They may be transmitted from the Headquarters to the Cincinnati Submission Processing Campus via memorandum. Use the closing agreement as authority for assessment and a substitute return.

  2. Make the assessment as an ANMF Excise Tax Account including any identified accrued interest using a TC 150.

  3. The tax period should always be the year and the month that the Commissioner signed the agreement. For example: July 15, 2002 (date) would be 200207.

    Note:

    In the event that no date is included next to the signature, use the date the IRS Executed the Agreement for the tax period ending.

  4. Appropriate journalization is necessary to ensure the integrity and the balancing of the RRACS and ANMF Systems. RACS will pre-journalize the initial assessment for the entire amount to Account 1300 in Status 89. RACS will forward the package to ANMF to establish an account through the LOAD Acct/Transfer-In Screen.

    1. NMF will establish the account in Status 89.

    2. Input "CLOSE AGREE" into the Form field.

    3. Input the phrase "Closing Agreement" into the Cross Reference field of the entity.

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

    5. Input "M" in the Exception Code field to prevent generation of notices and update of penalty and interest computation to ANMF when closing agreement is full paid.

    6. Input "P" in the Exception Code field if the closing agreement provides for payments over a period of years and interest will be charged on the unpaid balance.

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

    8. Related payments should be posted to the account using the Subsequent Transaction Screen.

    9. After the account is established, forward the closing agreement to Cycle Control for filing under the DLN assigned.

    10. Manually monitor the account for issuance of the annual bill. Prepare Form 6335 for each installment 30 days prior to the installment due date and mail to the taxpayer.

  5. The closing agreement may provide payments over a period of years. The agency will have specific responsibilities for the payment written in the agreement. Each year prepare and mail Form 6335 to the taxpayer for that years portion of the total tax plus interest if applicable. A copy of Form 6335 will be sent to Returns Files. Tailor the bill to the individual closing agreement conditions. Show the total outstanding tax and then the payment due for that year (similar to an installment agreement). The agreement will include special instructions in case the agency fails to make a payment. This will include notice of default, and assessment of penalties and interest.

    Note:

    Headquarters will provide assistance with annual billing.

  6. Closing agreements received with full paid or partial remittance will be processed as two documents. The first document (closing agreement) will establish the assessment on the ANMF system, and the second document (Form 3244A) will post the payment. Monitor the account to ensure the payment posts immediately after the assessment is established to ensure correct billing to taxpayer.

  7. The closing agreement (first document) will be numbered as follows:

    • Tax Class 6

    • Doc. Code 54

    • Blocking Series 400–434

    • Abstract Number 139

    • MFT 28

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

    • Tax Class 6

    • Doc. Code 27

    • Blocking Series 400–434

    • Abstract Number 139

    • MFT 28

  9. Closing Agreements received without payments will be billed according to instructions received with the agreement. They will be numbered as follows:

    • Tax Class 6

    • Doc. Code 54

    • Blocking Series 400–410

    • Abstract Number 139

    • MFT 28

    Note:

    Revenue Procedures: ONLY NMF will process the new EP/EO Determination Letter application fee using procedures in IRM 3.17.46.5.5 Internal Revenue Service Closing Agreements. In the cross-reference section of the ANMF Entity screen annotate REV PROC Number e.g., REV PROC 2003-72.

3.17.46.5.5.1  (01-01-2011)
Sanction Payments

  1. Employee Plan Master File (EPMF) Closing Agreements will be initiated in the Area Offices and forwarded to the Cincinnati Submission Processing Campus with a cover memorandum. The Closing Agreement will be coded for the remittance to be processed as a full paid NMF or BMF return. There are to be no refunds of moneys under these Closing Agreements.

  2. The Service could receive "sanction" payments as the result of a closing agreement where the exempt organization is not required to file a return, or the facts and circumstances indicate a payment on a tax return is a sanction. A "sanction" , like various conduct penalties in the Internal Revenue Code which are not directly related to taxpayers individual or corporate tax liabilities, is assessed to encourage voluntary compliance.

3.17.46.5.5.2  (01-01-2011)
Form 5310-A, Notice of Plan Merger or Consolidation, Spinoff, or Transfer of Plan Assets or Liabilities: Notice of Qualified Separate Lines of Business, Notification/Determination Compliance Fee

  1. EP Division Policy provides for the treatment of a late filing penalty from Form 5310-A similar to a Closing Agreement or Sanction Payment. EP has deemed this to be a "compliance" fee similar to the (Revenue Procedure) Rev. Proc. 2003-72.

  2. Taxpayers will file Form 5310-A entitled Notice of Plan Merger or Consolidation, Spinoff, or Transfer of Plan Assets or Liabilities: Notice of Qualified Separate Lines of Business, to notify the EP Division of these changes. The taxpayer may determine that a late filing penalty is warranted if Form 5310-A is not filed within 30 days of the change. The penalty is $25.00 for each day the Form 5310-A is late with a maximum of up to $15,000.00.

  3. EP will prepare Form 5734 in lieu of a Closing Agreement for assessment of the compliance (penalty) fee using TC 240 and Form 3244 for the payment. Both document will be annotated with Form 5310-A Penalty.

  4. Form 5734 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 54

    • Blocking Series 400-434

    • Abstract Number 139

    • MFT 28

  5. Form 3244 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 27

    • Blocking Series 400-434

    • Abstract Number 139

    • MFT 28

  6. Upon establishing the assessment, input Form 5310-A in the for field in the "cross-reference" section of the Entity screen.

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

3.17.46.5.6  (01-01-2011)
IRC 4103, Personal Liability for Excise Tax

  1. IRC 4103 imposes a liability for certain excise taxes on additional persons beyond the business taxpayer. The personal liability for excise tax is a joint and several liability. It applies to gasoline, diesel fuel, and aviation fuel excise taxes imposed by IRC 4081 or IRC 4091. When assessed against an individual, he or she will owe the same tax liability as the business taxpayer who filed Form 720, Quarterly Federal Excise Tax Return.

  2. Assessment of the personal liability for excise tax will be processed through NMF until Master File programming is completed. These assessments will be received in NMF on Form 9494, Request for Assessment of Personal Liability for Excise Tax. These assessments will be processed as NMF Daily Assessments. A "Linked Account" has been added to identify duplicate assessments. See IRM 3.17.46.13.8.

  3. The Form 9494 for NMF assessments is numbered as follows:

    • Tax Class—6

    • Doc. Code—47

    • Blocking Series—400–404, 410–414

    • MFT—45

    • Abstract Number—060, 062, 069

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

  5. NMF will receive the Form 813 and assessment documents from RACS and input the assessments through the Original Assessment screen to generate the first notice (Form 6335).

  6. Determine the type of assessment. The appropriate assessment type will be indicated on Form 9494 and the appropriate codes for the Assessment Type field are below:

    1. Input a "P" for Prompt assessment;

    2. Input a "Q" for Quick assessment;

    3. Input a "R" for Regular assessment;

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

    5. Input a "4" in the NMF Statement Code field to produce the Standard NMF Statement on the first notice.

    6. Input "IRC 4103" in the Cross Reference Field.

    7. Input the name, address, and EIN of the business entity to the Cross Reference field. If this information is not present on Form 9494, contact the originator.

  7. Distribution for Quick, Prompt and Jeopardy assessments: Form 6335 will be sent to the originator. The Form 6335 for the Jeopardy assessment will also be associated with the TDA and forwarded to the originator.

  8. Distribution for all regular assessments: mail Form 6335 to the taxpayer. Along with the Form 6335, include Notice 996, which is an explanation to the taxpayer concerning the assessment. A copy of Form 6335 will be forwarded to the originator.

  9. Form 9494, part 1, will be retained as the assessment document. Part 2 will be sent to the appropriate Area Office Special Procedures (SPf) or Collection Support function (CSf).

  10. Forward part 1 of Form 9494 and Form 813 to Returns Files after NMF monthly balancing is completed.

  11. Standard subsequent notice and TDA billing will apply.

  12. 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 9494.

    1. Input the assessment through the Original Assessment screen and mail the first notice, Form 6335 parts 1 and 2 to the taxpayer (or forward all parts of Form 6335 to the originator if the assessment was a Prompt, Quick or Jeopardy assessment).

    2. Forward Form 53 to the numbering function for numbering and preparation of Form 813.

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

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

    5. Prepare Form 1725 and notate "pre-assessment 53, no TDA issued" . Attach it to Form 9494 (part 2). Route part 3 of Form 6335 and Form 9494 (part 2) to the Special Procedures function in the originating Area Office.

    6. Forward part 1 of Form 9494 and Form 813 to Returns Files after NMF monthly balancing is completed.

  13. When the full amount of the Personal Liability for Excise Tax is collected, the remaining liabilities will be abated.

  14. The responsibility for initiating and approving abatements and refunds on these accounts lies with the Special Procedures Function in the area office that controls the case.

  15. Collection will prepare Form 1331, Notice of Adjustment, requesting an abatement of assessment. This form will be forwarded to Accounting for input to the ANMF.

  16. The Form 1331 will be assigned a DLN with doc. code 54.

  17. If the account is in TDA status and an adjustment posts leaving a debit balance, a new TDA must be issued. Forward the TDA to the Collection Support function (CSf).

  18. If the adjustment is later determined to be erroneous, the CSf will reverse the adjustment and reinstate the liability using the original assessment date. Collection will prepare Form 3870 and a Memorandum of Authority requesting the reversal of the adjustment. A new TDA must be issued and forwarded to CSf.

3.17.46.5.7  (01-01-2011)
Master File Tax Code MFT 31 - Split Assessments

  1. MFT 31 allows accounts requiring split processing to remain on the Master File. Split processing cases require that a joint IMF account be separated into two and sometimes three accounts. Prior to January 2001, these accounts i.e., bankruptcy, culpable spouse, innocent spouse, non-petitioning/petitioning spouse, offer in compromise, were processed on ANMF.

    Note:

    18,000 accounts previously established on NMF were transferred to MFT 31 in 2005.

3.17.46.5.7.1  (01-01-2011)
Culpable Spouse Accounts

  1. These accounts are now processed on the Master File under MFT 31. with the exception of "Invalid SSNs" . This information is included in the IRM for historical and research purposes.

  2. Culpable Spouse—During the examination of a joint return, if a culpable party is determined, Examination will prepare a Form 5344 and Form 3177 and the Appeals Office will prepare a Form 5403 to assess the culpable spouse. The Form 3177 or Item A on Form 5403 will cross reference the innocent spouse. This assessment will be made through NMF. Accounts with a notation to "prepare Form 3177" on Form 5403, require the input of TC 130 on the Master File. Monitor the account until the TC 130 posts to IDRS. See IRM 3.17.46.7.10.

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

  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. Additional field entries unique to these assessments are as follows:

    1. Input a "3" into the NMF Statement Code field to generate the standard Examination originated assessment statement.

    2. Input "Culpable Spouse" in the Cross Reference field.

    3. Also input the name, SSN and Area Office number of the innocent spouse's state of residence in the Cross Reference field.

  6. The standard billing schedule and accounts maintenance will apply after establishment on the database.

  7. TDAs— on either spouse will systemically include all cross reference information and should be entered on the second name line on IDRS (limited to 35 characters). See IRM 3.17.46.9 for establishing TDAs via IDRS.

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

    2. Prepare a Form 3177 to input a TC 470 to the account.

  8. Any refund involved will be issued manually to the innocent spouse. Contact the Appeals Office prior to initiating any refund.

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

3.17.46.5.7.2  (01-01-2011)
Non-Petitioning and Petitioning Spouse Accounts

  1. Non-Petitioning/Petitioning Spouse accounts are now processed on the Master File under MFT 31 with the exception of "Invalid SSNs" . This information is included in the IRM for historical and research purposes.

  2. Where a statutory notice of deficiency was issued on a joint Master File return and only one of the spouses petitioned the U.S. Tax Court, assessments are made against the non-petitioning spouse and processed through NMF. The petitioning spouse may or may not be assessed at a later date, depending on the court decision. A "Linked Account" identifies Duplicate Assessments. See IRM 3.17.46.13.8.

  3. Non-Petitioning Spouse—Receive Form 5403 or form 5344 from the Appeals or Exam Office. Item A on Form 5403 will cross reference the petitioning spouse. Accounts with a notation to "prepare Form 3177" on Form 5403, require the input of TC 130 on the Master File. Monitor the account until the TC 130 posts on IDRS. See IRM 3.17.46.7.10.

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

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

  6. NMF will establish an account on the ANMF System through the Original Assessment screen. The additional field entries unique to these assessments are as follows:

    1. Input a "P" in the Non-Petitioning Spouse field.

    2. Input a "3" in the NMF Statement Code field to generate the standard Examination originated statement on the notice.

    3. Input the petitioning spouse information, if available, in the Cross Reference field. Include the name, SSN, and Area Office number of his/her state of residence.

  7. Mail parts 1 and 2 of the generated Form 6335 to the taxpayer. Forward part 3 to the Appeals Office.

  8. Prepare and number Form 3177 to input the TC 470 as a subsequent transaction. This will suspend notice generation until the court has made a decision as to the total deficiency to be assessed.

  9. Follow-up of these accounts that are six months old must be made no later than January 31 and June 30 of each year. If the account is not in open status on the AIMS database, prepare a two-way memo from Cincinnati Submission Processing Campus Accounting Operations Manager to Chief, Appeals Office requesting the status of these cases in Tax Court. Appeals will respond by furnishing the open and closed docketed case listing to the Accounting Operations Manager.

    Note:

    Reasonable research should be completed before preparing this memo. A list of all outstanding accounts will be generated no later than January 15 and June 15 each year. The list will include the following:

    1. Both names involved, labeled as petitioning and non-petitioning.

    2. The 23C date of the non-petitioning spouse's assessment.

    3. The taxable year or years involved (Period Ending).

    4. The following questions for the Appeals Office:

    5. Open in tax court? yes/no

    6. Closed? Decision date extended and Deficiency amount

    7. Closed to (ESP)? yes/no

    8. A "yes" response to "g" would indicate the next follow-up letter (if necessary) would be from the Accounting Operations Manager to the Collection Operations Manager if closed to CSCO or to the Chief, Examination Support and Processing Branch if closed to Examination Support and Processing (ESP).

    9. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  10. Petitioning Spouse—When the court decision is reached, the Appeals Office will prepare Form 5403 to assess tax on the petitioning spouse. The tax that is assessed becomes the overriding tax assessment for both parties. However, tax is collected only once.

    1. Receive Form 5403 from the Appeals Office. Item A on this form will cross reference the non-petitioning spouse and indicate either; resume notices or Form 1331 in process.

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

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

    4. NMF will establish an account through the Original Assessment screen which will generate the first notice. After assessment has been entered to ANMF database the account should be Linked. See IRM 3.17.46.13.8.

    5. Input a "3" into the NMF Statement Code field to generate the standard Examination originated assessment statement.

    6. Use MFT 20.

    7. Use abstract number 004.

    8. Mail Form 6335 (parts 1 and 2) to the taxpayer. Forward part 3 to the Area Appeals Office.

    9. Research the database to locate the non-petitioning spouse case. If the tax amounts are the same, prepare Form 3177 with a TC 471 and input through the Subsequent Transaction screen to resume routine notice/TDA issuance.

    10. If the non-petitioning spouse tax account is overassessed, a Form 1331 prepared by the Appeals Offices in process. Annotate the History Section of the account "Form 1331 Pending" .

    11. RACS will receive Form 1331 with Form 2188 and Form 813. Input the Form 813 information into the ANMF System using the Form 813 Block Control screen and forward Form 1331 and Form 813 to NMF for processing.

    12. NMF will input the abatement using the Subsequent Transaction screen before resuming routine notice/TDA activity.

    13. After the abatement has posted, prepare Form 3177 with a TC 471 and input through the Subsequent Transaction screen to resume routine notice/TDA activity.

  11. If a credit posts to either account, a Spousal Assessment Transcript will generate. Abatement action may need to be initiated for the other account. Follow the procedures in IRM 3.17.46.5.7.4. if this type of transcript is generated.

  12. TDAs on either spouse will systemically include all cross reference information. This information should be entered on the second name line on IDRS (limited to 35 characters). See IRM 3.17.46.9 for establishing TDAs via IDRS.

  13. Assessment documents will be forwarded to Cycle Control after NMF processing is completed.

3.17.46.5.7.3  (01-01-2011)
Offer In Compromise

  1. These assessments are processed to MFT 31 and remain on the Master File with the exception of "Invalid SSNs" . This information is included in the IRM for historical and research purposes.

  2. Offers in compromise (OIC) are a proposal for settlement of a tax liability for an amount that is less than previously assessed.

  3. If the offer is to compromise taxes, penalties and interest, the offer is either accepted or rejected by the responsible area office having jurisdiction over the offer.

  4. If the offer is to compromise penalties, except Trust Fund Recovery penalties and those arising under laws relating to alcohol, tobacco and firearms, CSCO has jurisdiction over the determination.

  5. These procedures apply to all Offers in Compromise on the ANMF system.

  6. Accounts in OIC status on the ANMF system will be identified by Status Code 71.

  7. For NMF accounts in TDA status on IDRS, a TC 480 will be input to the IDRS account by CSCO. Input CC STAUP to update the IDRS account to Status 89.

    1. A Form 5147 will be generated to Accounting to update the ANMF account with a TC 480.

    2. Input of a TC 480 into the ANMF account will move the account to status 71.

  8. For NMF accounts not on IDRS, a Form 3177 will be prepared by CSCO and forwarded to Accounting to input a TC 480 to the NMF account.

  9. When the compromise is accepted, OIC will prepare a Form 3177 and forward the document to Accounting for input of a TC 780 (with a zero money amount).

  10. A Form 1331B with doc. code 54 will be prepared to abate the amounts being compromised. RACS Account 6530 will no longer be used for compromised amounts.

    1. The Form 1331B will only indicate abatement of the compromised amount; not the full liability.

    2. If the 1331B only indicates a TC 291, pre-search may be required to determine if the TC 291 is greater than the original TC 150 or TC 300. The original assessment may include penalties and interest assessments and multiple abate transactions may be required.

    3. The abatement transaction codes will be input through the Subsequent Transaction screen.

  11. Payments on the remaining liability (amount not compromised) will be received on a Form 3244 and input to the NMF account through the Subsequent Transaction screen.

  12. For NMF rejected offers, OIC will prepare a Form 3177 requesting input of a TC 481.

  13. For NMF terminated offers, OIC will prepare a Form 3177 requesting input of a TC 781, TC 482.

  14. For NMF completed offers, OIC will prepare a Form 3177 requesting input of a TC 788.

  15. For each action on an OIC account, NMF will request a transcript of that account and forward the requested transcript to the Brookhaven Campus indicated below:
    IRS
    1040 Waverly Avenue Stop 669
    Holtsville, New York 11742

  16. If payments (deferred or collateral) are subsequently received on the amount that has been compromised, OIC will prepare a Form 5734 with doc. code 54 for input of a TC 290 for the payment amount and OIC will also prepare a Form 3244 with doc. code 27 for the payment. The following procedures are in effect until programming is completed to make a TC 290 valid on the Subsequent Transaction screen for accounts in status 71.

    1. NMF will establish a separate NMF account (with a "Dummy " ) Tax Period Ending) for this additional assessment (TC 290 only). The account will be established in status 21 not status 71.

    2. When establishing the account, be sure to input "follow up action on OIC account; payment on comprised amount" in the Cross Reference field of the entity.

    3. After the account has posted to the database (the following day), input the TC 670 payment from the Form 3244 through the Subsequent Transaction screen. This will create a full paid account and no bills to the taxpayer should be generated.

    4. Caution must be taken if the documents are received on a Thursday or Friday. Since the payment transaction is not input until the next day, establishing the account with only the TC 290 will generate a bill to the taxpayer on that Monday. In this case, do not establish the account until the following Monday.

3.17.46.5.7.4  (01-01-2011)
Spousal Assessment Accounts

  1. Spousal assessment accounts are now processed to MFT 31 and remain on the Master File with the exception of "Invalid SSNs" . This information is included in the IRM for historical and research purposes.

  2. During the examination of a joint return, the Appeals Office will assess both spouses separately for the same tax issue. Interest and penalty amounts assessed may be different. These spousal assessments will be made through NMF. A "Linked Account" field has been added to identify Duplicate Assessments. See IRM 3.17.46.13.8.

    Note:

    If the assessment document indicates that this is a Petitioning/Non-Petitioning Spouse case, follow the procedures in IRM 3.17.46.5.7.2.

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

  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. Additional field entries unique to these assessments are as follows:

    1. Input a "3" into the NMF Statement Code field to generate the standard Examination originated assessment statement.

    2. Input the appropriate information from the assessment document in the Cross Reference field, i.e., Spousal Assessment. Also input the name of the spouse, SSN, MFT and tax period ending in the Cross Reference field.

  6. The standard billing schedule will apply after establishment on the database.

  7. TDAs— on either spouse will systemically include all cross reference information and should be entered on the second name line on IDRS (limited to 35 characters). See IRM 3.17.46.9 for establishing TDAs via IDRS.

  8. When credit transactions post, the ANMF system will generate a transcript of that account. The transcript will be titled "Spousal Assessment." Only accounts in Notice Status, TDA Status or Status 53 will generate a transcript. Transcripts will not generate for accounts in Statuses 71, 89 and those accounts with a posted TC 914.

  9. When the transcript is received, request a transcript of the spouse account found in the Cross-Reference field.

  10. The NMF Accounts Maintenance Technician will research both spouse accounts and forward the transcript package to the Adjustment function if all of the following conditions are present. On the routing slip, indicate "Spousal Assessment—May Need Abatement Action."

    • A debit balance remains on the other spouse account;

    • The amount of the tax originally assessed is the same as the original assessment of the first spouse;

    • Both spouse accounts are in Notice Status, TDA Status or Status 53.

  11. In addition, DO NOT forward the package to Accounts Management if any of the following conditions exist. Do not proceed with any abatement actions. Allow normal billing and accounts maintenance activities to continue.

    • Either spouse account is in Status 71 or Status 89;

    • Either account has a TC 914 posted.

3.17.46.5.8  (01-01-2011)
NMF Credit Elects

  1. NMF tax returns processed only in NMF include the following foreign returns: Form 1042 (prior to January 1 1985), Form 8288 (prior to January 1, 2006), and Form 8804 (prior to January 1, 2005). IRC 1446 and the withholding Information Document 8805 are processed to a Tier II Database then transmitted to ECC-MTB for upload to the IRMF (TP 200412 and subsequent).

  2. All credits claimed on these returns are verified by the Ogden Submission Processing Campus (OSPC) via the International National Standard Application (NSA) database. Accounting verifies the credits claimed on refund returns. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Effective January 1, 1998 all credit elects will be posted to the ANMF Database. After all credits are applied and if the return still has a remaining tax balance, OSPC will indicate the amount of credit applied to the tax. When the return is forwarded to Accounting, the tax amount will be assessed on ANMF.

  4. The specific references in IRM 3.17.46.5.27, IRM 3.17.46.5.33, and IRM 3.17.46.5.37 should be followed when processing these returns in Accounting.

3.17.46.5.9  (01-01-2011)
NMF Extension of Time to File

  1. Remit and No-Remit Extensions of Time to File will be numbered with the doc. code of the return the extension applies to and forwarded to Code and Edit for approval.

  2. The Code and Edit function will forward approved and disapproved extensions to RACS journalization.

  3. No-Remit Extensions:

    1. RACS will pre-journal No-Remit Extensions. RACS will forward the Form 813 and the extensions to NMF for input to the Index Card Generation sub-system to produce an Index Card for each extension.

    2. In addition to the general information, enter No-Remit into the last address line field.

    3. NMF will forward the original extension and Form 813 to the Cycle Control unit after NMF processing is completed.

  4. Remit Extensions:

    1. Remit Extensions will be treated as Full Paid returns.

    2. RACS will input the Form 813 to the Form 813 Block Control Screen and forward to NMF.

    3. NMF will establish the account through the Original Assessment screen. Input "Extension" in the Cross Reference field. NMF will then input transaction codes 150 and 610 for the amount of the remittance.

    4. A RECAP will generate and forwarded to RACS for journalization.

  5. When the related return is received in NMF, the DBA must make a DBA Correction to change the tax period ending of the extension account to a Dummy period. A correction should also be made to Abstract Number 204 to match the related return.

    1. If the return is determined to be a Full Paid based on the remittance received with the extension; NMF will establish an account through the Original Assessment screen.

    2. NMF will then input a transaction code 150 with a zero money amount into the transaction screen to record fact of filing.

  6. If additional tax, penalty and interest is due, NMF will establish an account for the remainder assessment through the Original Assessment screen.

  7. If the tax on the return is less than the extension, then NMF will

    1. Establish the account through the Original Assessment screen.

    2. Give the return to the NMF Specialist for abatement action of the "extension" account using Form 1331B.

    3. Transfer full payment amount on the "extension" account to the related return via Form 2424.

    4. Follow procedures in IRM 3.17.46.11.4, Credit Balances - Refund Returns, for disposition of any credit balance remaining on the account.

3.17.46.5.10  (02-14-2012)
Private Letter Ruling (PLR) Also Known As Ruling Letter Assessments

  1. IRC 1362(f)(4) allows the Service to enter into an agreement, via a Private Letter Ruling (PLR), hereafter referred to as "Ruling Letter" , with certain S Corporations to waive the termination of their S election. The Ruling Letter will be faxed from the Headquarters to the Cincinnati Submission Processing Campus along with a memorandum.

  2. Use the Ruling Letter as the authority for assessment and as a substitute return.

  3. The intent of the agreement is to establish an account on the ANMF System that will allow the taxpayer to make one payment of the full amount within 30 to 60 days from the date of the Ruling Letter, or designated due date assigned by Chief Counsel, without computing accruals or generating billing notices. The Ruling Letter is sent to the taxpayer at the same time a copy is faxed to the Cincinnati Submission Processing Campus for assessment. The Ruling Letter also provides the taxpayer with the address of the Cincinnati Campus for purposes of sending the payment for processing.

  4. Although the adjustment covers multiple tax years, only one NMF account will be established for each Ruling Letter, assessing the full amount stated in the letter using a Transaction Code 290.

  5. These assessments will be numbered as follows:

    • Tax Class 6

    • Doc. Code 54

    • Blocking Series 000–999

    • MFT 31

    • Abstract Number 006

  6. RACS will pre-journal the assessment and will input the Form 813 information into the Block Control screen.

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

  8. NMF will establish the account onto the ANMF system using the Original Assessment-Daily screen. Additional field entries unique to these assessments are as follows:

    • Notice Type—1

    • Assessment Type—Q

    • Statement Code—4

    • 23C Date—the current date

    • Periods Assessed—include all periods assessed as indicated on the memorandum for Director of Customer Account Services

    • Period Ending—use the date shown in the upper right hand side of the "Legend" page of the Ruling Letter as the Actual Period Ending

      Note:

      The "Legend" is the first page of the Ruling Letter and states "Legend" in the center of the page.

    • NMF Status—21

    • Exception Code—M

      Note:

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

    • Cross Reference—input "Ruling Letter per IRC 1362(f)(4)" , "hold notices" . Also include the Chief Counsel contact name, telephone number and PLR Control # located in the upper right of the Legend page of the Ruling Letter.

  9. On the following day, after the account has posted to the database, prepare and number a Form 3177 to input a TC 470 as a subsequent transaction. This will suspend notice issuance until the taxpayer has made full payment.

  10. Care must be taken to insure that a Penalty and Interest notice is not mailed to the taxpayer if generated. If the payment is received later than 17 days after establishment of the account, the system will automatically generate this notice. This is a one time payment where NO penalty or interest should accrue or be assessed.

  11. After 90 days have elapsed, an Accounts Maintenance transcript is generated and used to review the account. If the full payment has not been received and applied, contact the ANMF Analyst in Headquarters for further action.

3.17.46.5.11  (01-01-2011)
Qualified Forestry Conservation Bond (QFCB) Program

  1. This Section provides instruction for the posting of a 54B forestry Conservation Bond Refund under Section 15316 of the Food, Conservation, and Energy Act of 2008.

  2. The refund is a result of the Qualified Forestry Conservation Bond (QFCB) Program authorized by Congress in the enacted farm law. The IRS has been authorized to allocate the right to issue up to $500 million of tax credit bonds for a conservation project that meet certain criteria. The same legislation authorized a successful applicant for this right to elect instead to receive one half of the approved authority in cash as a refund of a deemed payment of tax in the year previous to the allocation.

  3. Form 54B Forestry Conservation Bond Refund package will be received in the refund function in Accounting.

  4. The package will include:

    • Form 3465

    • Form 3753

    • Form 8302

    • All supporting documentation

  5. Form 3465 will have all supporting documentation and a photo copy of Form 3753 attached.

  6. Form 3465 will be numbered a follows:

    • Tax Class 6

    • Doc. Code 54

    • Blocking Series 000–999

    • MFT 32

    • Abstract 006

  7. RACS will input the Form 3465 to the Form 813 Block Control Screen.

  8. RACS will forward Form 813, Form 3465, and supporting documentation to NMF for processing.

  9. NMF will establish account on the ANMF system through the Load Old Accounts/Transfer In Screen.

    Note:

    Entity information will be in the Remarks Section of the Form 3465.

  10. 54B Forestry Conservation Bond Refund will be entered in the Cross Reference Field.

  11. The refund (Form 3753) will be scheduled in the manual refund function using manual refund procedures in the IRM 3.17.79, Accounting Refund Transactions.

  12. RACS will input the Form 3753 to the Form 813 Block Control Screen.

  13. RACS will forward Form 813, and Form 3753, photocopy of supporting documentation for ANMF processing.

  14. The Form 3753 will be input to the account through the Subsequent Transaction Screen using normal subsequent transaction procedures.

3.17.46.5.12  (01-01-2011)
Refusal to Pay Air Transportation Tax

  1. Assessments will be received from Accounts Management on Form 5734, Non-Master File Assessment Voucher, if the assessable amount per ticket meets the NMF TDA tolerance.

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

    • Tax Class 6

    • Doc. Code 54

    • Blocking Series 600–949 (Other Assessments)

    • Use MFT 46

    • Use abstract number 026.

  3. Upon receipt of Form 5734, RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen and forward the Form 5734 and Form 813 to NMF for processing.

  4. NMF will establish the account on the ANMF System through the Original Assessment screen. Standard billing procedures will apply.

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

3.17.46.5.13  (01-01-2011)
Research Form 1120 Foreign Sales Corporation (FSC) Returns and Payments

  1. A one-time project for Form 1120 FSC processing returns and payments occurred prior to 1990 which may have not posted to the BMF or NMF. The NMF Unit in the Cincinnati Submission Processing Campus maintains a listing of these documents for research purposes. Contact the NMF Team Manager for research of the listing.

3.17.46.5.14  (01-01-2011)
Restructuring and Reform Act of 1998

  1. Section 3201 provides for a new IRC 6015 Relief from Joint and Several Liability. Taxpayers may elect under:

    1. IRC 6015 (b) for innocent spouse relief from deficiency; and or

    2. IRC 6015 (c) for allocation of deficiency between spouses.

    3. where either of the above is denied, equitable relief, under IRC 6015 (f) may be granted on the deficiency and/or underpayment of the tax liability reported on this return.

  2. Statute of limitation for collection extended for the claimant spouse requesting the relief and only for the tax period requested. The collection statute is not extended for non-claimant spouse.

  3. RRA Sec. 3201(d)–a separate notice is required to each individual filing the joint return.

  4. The first notice will be issued normally on the joint liability. Review all "Fourth/Certified" notices for joint liability. In addition to the joint billing, each taxpayer must be separately notified of the joint liability. Prepare two additional joint notices. The address label affixed to each envelope must be addressed to each taxpayer separately and sent certified mail.

  5. Follow established procedures for certified mail out of the additional notices. Maintain a record of all certified mailing in NMF or follow any alternative method of recording and maintaining this information which is already in place in the campus.

3.17.46.5.15  (01-01-2011)
Telephone Excise Tax

  1. RACS will receive Form 5734, Non-Master File Assessment Voucher, and Form 813. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. If no SSN is present, research both Master File and the NMF database for a previously assigned SSN and if one is not found, assign a temporary SSN to the account. If for a BMF account and no EIN is present, assign a temporary EIN.

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

    • Tax Class 6

    • Doc. Code 94

    • Blocking series 600–949 (Other Assessments)

    • Use abstract number 022

    • Use MFT 46

  4. RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen and 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 field for the standard statement for NMF assessments.

    2. Mail Form 6335 (1st notice) to the taxpayer.

  6. As of the second Monday of October each year, Form 3967 (2nd notice to the taxpayer) will be generated to include the total due of all accounts outstanding for the current year. The tax due is a single amount but reflects all periods outstanding. The notice includes all accrued penalty and interest. The notice will be included on the Certified Mail List.

  7. As of the second Monday of December each year, all open (notice status) accounts which have been assessed that year are identified systemically.

  8. Accounts with a temporary SSN will have a TDA generated ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ For accounts with an SSN a TDA is generated ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  9. All remaining accounts from the prior year hold file and related accounts in delinquent status will be associated systemically. See IRM 3.17.46.7.7 (2)(b) for TDA instructions.

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  10. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

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

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

    4. NMF will input the TC 530 to the account through the Subsequent Transaction screen.

  11. Assessment documents will be forwarded to Cycle Control after the NMF processing is completed. Retain The Excise Tax Listing in NMF. Destroy after Audit by Government Accounting Office (GAO) or when three years old, whichever is earlier.


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