TC 130 is an entity transaction on CC ENMOD and will display the cross reference information and the campus (literal = SC>) that input the freeze.

The Treasury Offset Program (TOP) allows credits to be applied against delinquent child support obligations, non-tax debts owed to other Federal agencies, State income tax obligations and unemployment compensation debt. TOP TC 130s are systemically engaged and released by the agencies requesting these freezes. Refer to IRM 21.4.6, Refund Offset.

If a credit of ≡ ≡ ≡ ≡ ≡ or more becomes available, a CP 44 (IMF) or CP 188 (BMF) is generated to that campus.

On CC TXMOD the presence of a TC 130 can be identified by freeze code "V—" .

Requests for input of TC 130 may be received on the following:

Examine the request to ensure that the following information is given for each debit (balance due) account:

If the information is incorrect or incomplete, you must contact the originator to secure the correct information, or return the request for completion.

Consider input of TC 130 to the IMF when:

Consider input of TC 130 to the BMF when:

To input a TC 130 on CC ENMOD, use CC REQ77 and input the following:

If block 6b on Form 53, Report of Currently Not Collectible Taxes is checked "yes" , input the closing code of the TC 530, BMF name control, and cross-reference EIN.

One of the following Document Locator Number Indicators should be input:

If the request lists more than one partner on the BMF account, input a TC 130 to each individual entity module.

After input, destroy the document. Retention of paper files is no longer required.

At the time a Non-Master File assessment is made, ANMF will not systemically post the TC 130 to Master File. Manual input of TC 130 is still a requirement.

The Automated Trust Fund Recovery System will generate a Form 3177, Notice of Action for Entry on Master File, to hold any refunds prior to the assessment posting on the taxpayer's account. Additional information will include the EIN of the corporation as cross-reference and the TC 130 DLN indicator will be "102" .

Taxpayers may agree to assessments made by the Underreporter and Examination functions by requesting that their anticipated refund be applied to the assessment. Underreporter and Examination requests input of TC 130 on these accounts by forwarding a copy of the taxpayer's request to WI CSCO for IMF cases and SB/SE CSCO for BMF cases.

DLN indicator "004" should be used. If the amount held does not fully satisfy the assessment, apply all available credit and input a TC 131. Any future refunds will automatically offset to the liability.

Research for any outstanding liabilities on IDRS.

When a TC 130 is input, it will generate a V— freeze code for the account. When a refund at or above ≡ ≡ ≡ ≡ ≡ ≡ becomes available it is frozen. A notice, Delay in Processing Your Refund, is mailed to the taxpayer, and at the same time a CP 44 for IMF or a CP 188 for BMF will generate to WI CSCO and SB/SE CSCO respectively.

Work the CP 44/188 as follows:

If the X-REF TIN associated with the TC 130 on CC ENMOD is an EIN or a pending TFRP assessment is indicated, research AMS history on the TC 130 SSN and spouse SSN for the presence of history regarding Trust Fund Recovery Penalty.

Exercise caution to ensure that there is a basis for offsetting credits. A credit from an entity with an individual filing requirement cannot be offset to an entity with non-individual filing requirements.

If the cross-reference balance due module is a Limited Liability Corporation (LLC), do not offset the credit. Input TC 131, if no other balances are owed.

If the credit cannot be legally offset, input TC 131 to release it.

If the cross reference TIN's module has a posted TC 608, the Collection Expiration Statute Date has expired and the balance will be ".00" .

Installment privileges for Form 1041, U.S. Fiduciary Income Tax Return (for Estates and Trusts), is automatically set up by the computer when the taxpayer files the tax return by the due date and pays one-fourth of the balance due. Input TC 131 if the following conditions apply:

Under the authority of Internal Revenue Code (IRC) 6402 (a), the entire credit on a joint return may be tentatively applied to one spouse's balance due if no statement is received from the taxpayer on the allocation of the credits:

The following If/Then Chart provides procedures on how to process accounts with certain freeze codes.

Prior to moving your credit, look for a Large/Corporation case indicator. If the indicator is present, contact the Technical Unit for instructions.

When transferring credits, refer to Exhibit 21.5.8–1, Transaction Codes and Reversals.

If the credit can be transferred on IDRS, use CC ADD24 or ADC24.

Form 2424, Account Adjustment Voucher, must be prepared to transfer a credit to a NMF account:

The chart below provides procedures for application of credits when there are one or more debit modules.

When there is more than one debit module, and the available credit will exceed the total debit:

If allowable interest is to be transferred, use TC 850 (debit) and TC 770 (credit).

If a liability remains after application of the available credit, close the control base, if applicable.

If the available credit is being transferred to an account with a TC 530 cc 03, change the address to the address shown on the CP 44, if different.

Count as follows:

In addition to Transaction Code (TC) 150, Tax Assessed, there are other TC codes (with specific reference numbers) that carry their own ten year CSED. See IRM 5.1.19.2.1, Transaction Codes that Carry Their Own CSED, for a complete list.

Each TC will show it's corresponding CSED to the right on CC IMFOLT/BMFOLT.

There are no limits to the number of CSEDs that can appear on an account. The account will reflect the earliest CSED until that date has passed.

CC TXMOD reflects the CSED that is next due to expire. CC IMFOLT indicates the FIRST CSED, NEXT CSED and LAST CSED. If there are more than three CSEDs present on the module, the NEXT CSED field shows the second CSED. When the second CSED expires, the NEXT CSED field updates with the third CSED, until all CSEDs are expired. For CC BMFOLT, the fields are LATEST CSED DATE, EARLIEST CSED DATE and IMMINENT CSED DATE.

If the CSEDs are currently suspended by bankruptcy, Offer-In-Compromise or other, all CSED fields will show blank.

When all CSEDs on the module are expired, a TC 608 generates to zero out the balance due. Until all CSEDs are expired, the balance due may consist of amounts associated with expired and unexpired CSEDs, unless expired balances were previously written off with TC 534.

There are also additional TCs that suspend or extend the CSED. See IRM 5.1.19.2.2, Integrated Data Retrieval System (IDRS) Transaction Codes (TC) That Suspend Or Extend A CSED.

Refer to the following for a discussion of specific actions that, when taken on an account, may suspend or extend the CSED:

See Exhibit 5.19.10-5, CSEDate Computation Reference Table, for a list of IRM references regarding each type of suspension/extension.

A TC 550 is manually input to update or correct the CSED. The definer code will show the source/reason for the extension. See IRM 5.1.19.2.3, TC 550 Waiver Extension Definer Codes.

There may be various situations where the CSED comes into question.

Discuss CSED related issues with other functional areas as necessary. If the case is being routed and the case is taxpayer initiated, send Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office.

Use Form 3210 to route accounts with CSED issues in Status 22, 26, 71 and 72 to the proper function using SERP Who/Where.

For CSED issues on Estate Tax Liens (Form 706), contact the Advisory Estate Tax Group for assistance. Contact information can be found on the MySB/SE Website under "Estate Tax Liens - Collection: AI Advisory" .

If an issue with the CSED date is identified, it must be reviewed and verified. If the manual CSED computation is within ≡ ≡ ≡ calendar days of the posted CSED, accept the posted CSED as correct.

Calculate the correct CSED date using the guidelines outlined in this IRM and other IRMs. For assistance with CSED calculations, see:

See Exhibit 3.11.10–4, Julian Date Calendar, Perpetual and Leap Year, to obtain Julian dates for your CSED computation.

Accept TC 520/521, TC 480/780 and other applicable transaction code dates as correct.

When the recalculated CSED date has expired and there are payments present dated after all CSEDs have expired, follow IRM 5.19.10.5.2, PMTEXPCSED Transcripts, for proper handling of the payments.

If a determination is made that the CSED should be corrected,

Proceeds from levys served, or liens filed, prior to the CSED may still be applied to the expired balance. When payments are applied, Master File reverses the posted TC 608 with TC 609 in order to credit the payment and then generates another TC 608.

When the taxpayer has questions regarding the CSED, provide an explanation of how the CSED was determined. Use Letter 672C, Payment(s) Located and/or Applied, or other appropriate letter to respond.

The following information discusses certain conditions that should be kept in mind when working with CSEDs.

If the CSED is incorrect on a module and a condition below applies, notify the Headquarters analyst of the social security number and tax period via Secure e-mail.

MFT 31 is an IMF master file tax (MFT) account code and used for assessments against an individual taxpayer on a joint module. For additional guidance, see IRM 21.6.8.3, What is MFT 31.

For some MFT 31 accounts created prior to January 1, 2005, interest from the MFT 30 module was assessed on the MFT 31 module using TC 340 doc code 51 in the 4th and 5th position of the DLN. This caused a new 10 year CSED based on the TC 340 date instead of the date of the associated tax assessment.

When addressing a balance due on MFT 31 modules for tax periods ending December 31, 2004 and prior, analyze the module using CC IMFOLT to determine if there are TC 340s present with doc code 51.

Offer-in-Compromise: If there appears to be a problem with the CSED and the module had a pending/accepted Offer dated after the correct CSED expired, contact the Offer-in- Compromise Centralized Service Center (COIC) per SERP Who/Where.

Failure to File penalty: On some modules where a TC 166 posted with its own ten year CSED (the penalty posted alone and not in conjunction with a tax assessment), analyze the module to make sure the TC 166 was not assessed by the computer in error. Some stand alone TC 166s may be erroneous due to a processing error.

TC 550: Verify the CSED on modules where the CSED was extended or corrected with a TC 550 and transaction codes follow that suspend the CSED further (TC 520, TC 480, etc.). In some cases. the system may not be computing the CSED correctly.

When it is determined the current CSED on the tax module needs to be corrected, a TC 550 must be input. Use TC 550 DEFINER-CD "10" .

For complete instructions for using CC FRM77 refer to IRM 2.4.19-5, Command Code FRM77 Input.

Use CC REQ77 to input the TC 550 using the following fields:

When it has been determined that the current TC 550 on the tax module is incorrect, an additional TC 550 must be input. Use TC 550 DEFINER-CD "10" unless otherwise directed.

For complete instructions for using CC FRM77 refer to IRM 2.4.19-5, Command Code FRM77 Input.

Use CC REQ77/FRM77 to correct the TC 550. Input the following fields:

Currently, Kansas City CSCO works lists of accounts where the earliest CSED is expired and a portion of the balance must be written off. Beginning in January 2013 a new MULTICSED transcript will issue in lieu of a listing. See IRM 5.19.10.4.7.1, MULTICSED Transcript and Listings.

Write offs that exceed ≡ ≡ ≡ ≡ ≡ ≡ must be approved by the Headquarters analyst. Forward the SSN and tax period by e-mail using Secure Messaging. List the proposed TC 534 write off amount and the total amount of interest and FTP penalty included in the total.

When a tax module has multiple CSEDs and the earliest is expired, input a TC 534 to write off any assessed balance associated with the expired statute. If no assessed balance remains from the expired CSED (accruals only), input a TC 534 with a zero amount.

If any posted FTP or interest accruals contain amounts for both expired and unexpired assessments, the amounts attributable to the expired assessment must be included in the TC 534 amount. This applies only to MULTICSED transcripts or listings.

If working CSED or SPC3 CSED Transcripts, follow IRM 5.19.10.5.5.1, Processing CSED Transcripts, for TC 534 procedures.

The TC 971 AC 687 with 20 miscellaneous codes was established for CSED purposes effective January 2007. When inputting a TC 971 AC 687, a miscellaneous code must be input at the same time. The miscellaneous code serves as an audit trail, defines what type of levy was served, and identifies other various actions taken on the account.

The following chart will provide an explanation for each miscellaneous code. SBSE should identify the "fixed and determined" from this point forward. Any module that does not have a code will be verified through the revenue officer or case processing.

The following transcripts are considered a Priority Transcript:

If an AMRH transcript or other transcript type, from Accounts Maintenance or the Statute function, is controlled to CSCO due to a levy payment on the module, reassign the transcript back to the originator. As of July 26, 2011, it is no longer necessary to refer these to CSCO to resolve the levy payment.

Any transcript module that has a TC 520 (—V. —W or —VW) will not be routed.

If there is a TC 470 on the module, follow IRM 5.19.10.5.3, Accounts Maintenance Claim Pending (AM06W) Transcripts, to input a TC 472. Close the control with a history item relating to the action.

Research IDRS for any available credit(s). Your search should include CC URINQ, XSINQ, and UPTIN. Document AMS with a history item XXXXXRSHRD (Xs identifies the type of transcript).

To transfer credit(s) to the URF or XSF, follow the procedures below.

To request a transfer from Excess Collection File, follow the procedures below.

To request a manual refund, use Form 5792, Request for IDRS Generated Refund (IGR). The Erroneous Manual Refund Tool (EMT) is an IAT tool that may be used to process and monitor manual refunds. You are strongly encouraged to utilize this tool when you are issuing a manual refund as it increases accuracy and saves time. Use of this tool is currently NOT mandatory.

If account is full paid and levy payments are still being applied, see IRM 5.19.10.5.2.1, General Instructions for PMTEXPCSED Cases. Complete Form 668D, Release of Levy/Release of Property from Levy, if needed to stop the levy.

If balance due notice or TDA processing is suspended for more than six months due to an IRS error, adjust any penalty and interest per procedures in IRM 20.1.2, Failure to File/Failure to Pay Penalties and IRM 20.2, Interest.

If there is a TC 582 Federal Tax Lien on the module, verify the CSED. If the CSED is within 180 days of expiring, resolve any retention or freeze code. When the CSED expires, the lien is self-releasing.

Count each transcript received for each different MFT/TXPD, except where noted.

A Payment Expired CSED (PMTEXPCSED) Transcript generates once for each TC 610, TC 640 or TC 670, without DPC 05, 06, or 14, that is applied to a module after the CSED has expired.

The purpose of the transcript is to determine proper disposition of the payment, which may include one or more of the following:

See IRM 5.19.10.5.1, General Procedures for All Transcripts, for more information regarding the Unidentified Remittance File (URF), Excess Collections File (XSF) and manual refunds.

In some instances the Service can continue collection action by serving a levy or filing suit prior to the expiration of the ten year period. See IRM 5.19.10.4.8, TC 971 AC 687, and Miscellaneous Codes for CSED, IRM 5.11.5.3, Continuous Effect of Levy on Salary and Wages and IRM 5.11.6.1, Retirement Income.

WI CSCO works IMF accounts and SB/SE works BMF accounts.

The 06W transcript will generate after twenty-two (22) cycles, when there is an unresolved TC 470 with no Closing Code (cc), a cc 90, cc 93 or cc 95 on IDRS. A -W freeze appears on the transcript and the tax module on IDRS. The issuance of the transcript is categorized as AMRH. If the first 06W transcript is not resolved, a follow-up transcript will issue in 15 cycles and can be identified by an "F" after the transcript type. Most of the 06W transcripts generated will not relate to Collection cases because other functions use the TC 470.

If the Assessment Statute Expiration Date (ASED) has expired, an AM-X transcript will generate regardless of any posting in a module.

If the return statute is imminent (within 180 days period), a STAT transcript will generate.

All AM06 transcripts will be processed following procedures below. If the transcript cannot be resolved within 14 days from the computer notice date, input your control on IDRS.

WI CSCO works IMF accounts and SB/SE works BMF accounts.

The AM07 transcript generates when there is a credit balance on an account that contains a TC 130 and TC 150 and the CP 44 Notice was not resolved in 16 cycles. A V— freeze appears on the transcript and the related module on IDRS. If the transcript is not resolved within 14 days from the computer notice date, a control base with category code AMRH is automatically established.

The following will explain the three statute transcripts that will generate for the 07 if the module is open, regardless of any posting:

WI CSCO works IMF accounts and SB/SE works BMF accounts.

A CSED Transcript generates when the earliest CSED is expired, the latest is not expired and there is no unreversed TC 534 or a TC 400 hold present. Each debit module has a total module balance of ≡ ≡ ≡ ≡ ≡ or more on the account. An A— freeze appears on the credit and debit module. It freezes the account for eight cycles or until a TC 534 is input, whichever is earlier. A CSED Transcript may generate even if the balance due is for accruals of penalty and interest only.

Destroy any CSED transcripts that issue on Trust Fund Recovery Penalty (TFRP) modules. A separate transcript already generates to TFRP in the appropriate SB/SE CSCO site.

There are several transaction codes or assessments that carry their own CSED. See IRM 25.6.1.12, Collection Statute Expiration Date (CSED), for a list.

WI CSCO works IMF accounts and SB/SE works BMF accounts.

The AM 23W transcript is generated to alert the campus of the W— freeze condition created by a TC 470 cc 90, 93, or 95 and the tax module is within 180 days of the Collection Statute Expiration Date (CSED).

WI CSCO works IMF accounts and SB/SE works BMF accounts.

The CP 86/186 Notice generates when:

Collection Operations will only work collection related issues, all others should be routed to the appropriate operation.

Conditions which create restrictions are:

Verify the appropriate disaster declaration by accessing the Disaster Declarations/FEMA at http://www.tris.irs.gov/fema/.

WI CSCO works IMF accounts and SB/SE works BMF accounts.

The Non-Master File Liability (NMFL) transcripts are generated by Enterprise Computing Center at Martinsburg (ECC-MTB) when a second credit posts to a module after issuance of a CP 44 Notice and the V— freeze created by the TC 130 remains on the taxpayer’s account. When a TC 740 posts to the transcript module and creates a credit balance, the NMFL transcript will generate.

A Duplicate Refund Transcript will generate weekly to the Operation if a TC 840 posts to an account and there is a previous TC 840 or TC 846 posted. These transcripts will be reassigned to the originator of the duplicate refund.

If the case resulted in an erroneous refund, refer to IRM 21.4.5, Erroneous Refunds, for procedures.

If a BMF DUPREF transcript is received in Atlanta due to a levy payment, close the transcript with no action.

A VERFPYMT Transcript generates when a payment posts to a debit balance module, resulting in a credit balance of ≡ ≡ ≡ ≡ . Verify Payment (VERFPYMT) Transcripts. The VERFPYMT Transcripts are generated on a weekly basis. The transcripts are forwarded to the appropriate AMRH Unit. AMRH will sort and forward any transcript relating to Collections to the campus.

A NOMRG Transcript with Reason Code NM07 will generate when both accounts being merged contain the following conditions within the same tax period: both accounts are in TDA/TDI (22, 24, 26) status and the Location Codes (Primary or Secondary) do not agree.

The "TO" account is in a TDI Status and the "FROM" account has TDA modules for which there are no modules for same MFT/TXPD in the taxpayer's account.

In order to merge two related accounts, both BOD Codes must match.

Document your actions and contacts on AMS for both TIN.