5.19.10  Collection Operations Transcript Processing

Manual Transmittal

January 21, 2014

Purpose

(1) This transmits revised IRM 5.19.10, Liability Collection, Collection Operations Transcript Processing.

Material Changes

(1) Editorial changes were made throughout the IRM.

(2) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.1, (1) Added ACS Support as a user of this IRM. Added (6) IRM also includes collection statute expiration date verification and correction and Combat Zone taxpayer correspondence procedures. (7) Added two IRM references to follow when contacting the taxpayer by phone.

(3) IPU 13U1078 issued 06-11-2013, IRM 5.19.10.1, added paragraph (9) and (10) regarding IAT tools mandated for Compliance Campus employees for use in this IRM.

(4) IRM 5.19.10.1, added a note that CC RFUND can only be input through IAT.

(5) IRM 5.19.10.1(3), added EFT Listings and the IAAL to the list of procedures included in this IRM. (9), changed Refund Suite to Manual Refund Tool.

(6) IRM 5.19.10.2:

  • Added a link to Document 6209 TC 971 action codes

  • Added a definition for AMS. Added BFS, CCC, FTF, IAT, IRAF, PDC and RPC

  • FMS has changed to The Bureau of Fiscal Services (BFS)

  • Removed the word "individual" from the description of MF

  • Redefined REQ77, STAUP and TXMOD

  • Added a link to IRM 2.3.52 for CC RTVUE

  • Obsoleted TSf and added a link to Advisory on SERP Who/Where

(7) IPU 13U1078 issued 06-11-2013 IRM 5.19.10.3, added paragraph regarding mandatory use of IAT tools by Compliance Campus employees.

(8) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.3.2, Moved Note under (1) to new (2) regarding routing information for requests for input of TC 130. Subsequent paragraphs were renumbered.

(9) IRM 5.19.10.3.2, added (5) with links to IRM references that explain when TC 130 is appropriate for IMF and BMF accounts. Deleted the Note under (4).

(10) IPU 13U0716 issued 04-10-2013 IRM 5.19.10.3.3, added new first bullet under (1) to input TC 130 when a taxpayer has a pending tax assessment and wants a future refund applied.

(11) IPU 13U0716 issued 04-10-2013 IRM 5.19.10.3.4(1), added instances when a TC 130 is required input on a BMF account.

(12) IRM 5.19.10.3.5, (1), added information regarding use of a closing code on certain TC 130 inputs and provided an IRM reference, (3) changed the word "indicators" to "codes" .

(13) IRM 5.19.10.3.6 (1), added instruction to use DLN code "002" .

(14) IRM 5.19.10.3.7(1), added ATFR generates TC 130 to the taxpayer account. It no longer prints out a Form 3177, Notice of Action for Entry on Master File for manual input of TC 130. Deleted the word "indicator" and changed it to "code" on CC REQ77.

(15) IRM 5.19.10.3.8(2), "indicator" was changed to "code" .

(16) IPU 13U0716 issued 04-10-2013 IRM 5.19.10.3.10(1), added information about dollar limits for release of refunds.

(17) IPU 13U1078 issued 06-11-2013 IRM 5.19.10.3.10, provided a link to the Insolvency (Bankruptcy) National Field/Centralized Site Directory when the CP 44 account contains a bankruptcy TC 520. Superseded by (17) below.

(18) IRM 5.19.10.3.10:

  • Moved (2)(a) to IRM 5.19.10.3.11.2

  • Moved (2)(b) to (3) table

  • Moved (2)(c) to new section IRM 5.19.10.3.11.4

  • Moved (2)(d) to new section IRM 5.19.10.3.11.3

  • Deleted (2)(e)

  • Moved (2)(f) through (h) to table in (5)

  • New (2), use these procedures to work AM07, NMFL, ST07 and X-07 transcripts as well. For AM07 transcripts issued due to unreversed TFRP see IRM 5.19.10.3.11.2

  • Added information on cases with Offer-in-Compromise criteria, Insolvency, Criminal Investigation freezes and CDP freezes. These are now closed instead of routed.

  • (5), expanded procedures for general processing of CP 44/CP 188

(19) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.3.11, reworded (3) (now in IRM 5.19.10.3.11.1) for clarity.

(20) IPU 13U1078 issued 06-11-2013 IRM 5.19.10.3.11(9), now (6), provided links for contact information to the Large Corp Units.

(21) IRM 5.19.10.3.11:

  • Section was reorganized

  • Moved (1) to new section, IRM 5.19.10.3.11.2

  • New (1) requiring AMS research

  • Moved (3) to new section IRM 5.19.10.3.11.1

  • Moved (7) to (4) and rewrote. Payments cannot be applied if TC 608 is present

  • (8) in the table, removed information on L−, −V, −W, W−, −Z, Z− and −R freezes to other IRM sections and provided a reference to those sections

  • Added information on TFRP, LLCs and NMF; Form 1041 and applying Form 1040 overpayments to sole proprietorships

(22) IRM 5.19.10.3.11.1, new section on LLCs on CP 44/CP 188 accounts. Provides instructions for resolving a CP 44/CP 188 with LLC liabilities.

(23) IRM 5.19.10.3.11.2, new section on transferring credits to TFRP. Provides instructions on determining when an overpayment can be transferred from a Form 1040 module to a TFRP module.

(24) IRM 5.19.10.3.11.3, new section on transfer of credits and Non-Master File. Transferring overpayments to NMF balances and releasing TC 130.

(25) IRM 5.19.10.3.11.4, new section on transferring credits to Innocent Spouse.

(26) IRM 5.19.10.3.11.5, new section on −R credits. Information was moved from IRM 5.19.10.3.11.

(27) IRM 5.19.10.3.12:

  • (1), added an IRM reference for credit transfer processing

  • (3), added a reference to IRM 5.19.10.3.11.3. Deleted information on TC 270, TC 680

  • Added (4) requiring computation and assessment of credit interest on some payments being transferred. Renumbered the remaining paragraphs

  • Expanded the table in (5) and added instructions on when there is more than one debit module. Added information on transferring to NMF and release of TC 130

  • Moved (5) and (6) to table in (5)

  • Added (6) to send Letter 678C

  • (7), listed required history for input to AMS

  • Renumbered (7) and (8) to (8) and (9)

(28) IPU 12U1854 issued 11-20-2012 IRM 5.19.10.4, rewrote entire section. Added information regarding SB/SE Philadelphia CSCO.

(29) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.4, changed section title to Collection Statute Expiration Date (CSED) Verification and Correction.

(30) IPU 13U0315 issued 02-08-2013 IRM 5.19.10.4(7), updated the information on what types of cases will be worked under the CSED referral program; (3) and (4), identified the campus areas that will work CSED referrals.

(31) IPU 13U0716 issued 04-10-2013 IRM 5.19.10.4 (1), now (2), Added the direction that procedures in this section and subsections are for use only by employees who have received advanced CSED training. (5), now (6), changed "CSED Specialists" to "CSED Referrals - Campus" .

(32) IPU 13U1078 issued 06-11-2013 IRM 5.19.10.4(1), added paragraph regarding mandatory use of IAT tools. (6), added a link to SERP Who/Where "CSED Referrals - Campus" .

(33) IPU 12U1854 issued 11-20-2012 IRM 5.19.10.4.1(3), moved information regarding IDRS CSED transactions in (3) to IRM 5.19.10.4.3 and renumbered the remaining paragraphs.

(34) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.4.1, added (3), to explain that a full abatement of a tax assessment does not remove the associated CSED.

(35) IPU 13U0716 issued 04-10-2013 IRM 5.19.10.4.1(2), changed the word "account" to "tax module" .

(36) IRM 5.19.10.4.1, changed section title to "Transaction Codes with a Ten-Year CSED" . Moved (4) through (6) to a new section, IRM 5.19.10.3.4.3.

(37) IRM 5.19.10.4.1(1), moved IRM reference to (4).

(38) IPU 12U1854 issued 11-20-2012 IRM 5.19.10.4.2, removed Disaster from the table and deleted (4).

(39) IPU 12U1854 issued 11-20-2012 IRM 5.19.10.4.3, new section, CSED Fields on Integrated Data Retrieval System (IDRS).

(40) IPU 13U0932 issued 05-15-2013 IRM 5.19.10.4.3, added (6), that lists the transaction codes that suspend the CSED and blank out the CSED fields. Renumbered subsequent paragraphs.

(41) IRM 5.19.10.4.3(6), explained that CSED fields will not be blank for TC 971 AC 043 and TC 971 AC 163.

(42) IPU 12U1854 issued 11-20-2012 IRM 5.19.10.4.4 (was IRM 5.19.10.4.3), rewritten. Removed the requirement for Form 3210 and Form 4442. Added instructions on handling OIC modules when the true CSED expired after the OIC was submitted.

  • (1), deleted; added new (1) instructions for controlling the module

  • (2), added instruction to send an explanation of how the CSED is computed if CSED is correct

  • (3), added direction to send interim letter on taxpayer correspondence

  • (4), was moved from (2)

  • (5), moved from (3), added requirement to input TC 470 cc 90 on Status 26 cases and update AMS history

  • (7), moved from (4). If it involves an Estate Tax Lien contact Advisory

  • (8), added for handling OICs that were pending after the real CSED expired

  • (9) and (11) were moved from (5) and (6)

  • (11), was moved to IRM 5.19.10.4.3

  • (13), moved from (8), added exceptions for when dates should be verified

  • (14), table added with basic rules of CSED computation

  • Added (16) to send documentation to files

(43) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.4.4(13), now (14) table, changed the example in the first "Then" box to a bankruptcy. Added a second row with information on TC 150s dated prior to the RDD. Changed (15) now (16) to associate documentation with the file when a CSED is corrected.

(44) IPU 13U0315 issued 02-08-2013 IRM 5.19.10.4.4(15) now (16) - Filed source documents should include any supporting documentation such as prints of AMS history.

(45) IPU 13U0716 issued 04-10-2013 IRM 5.19.10.4.4:

  • (6), now (5), changed the IRM reference to IRM 5.19.10.4.7.1

  • Added new (7), now (6), added instruction to return the case to the originator to resolve other issues unrelated to CSED

  • (8), now (7), removed the words "if needed" to the end of the first sentence

  • (9), now (8), added instruction to send an IMFOLT print for transcripts

  • added (11), now (10), input AMS history for CSEDs referred to Headquarters

  • (15), now (14), corrected a date in the table

(46) IRM 5.19.10.4.4(9) Added a reference to IRM 5.19.10.4.5(13), second bullet, taxpayer must provide proof if we are unable to verify a date internally, (15) AMS history should explain why the CSED is incorrect.

(47) IRM 5.19.10.4.4.1, added new section, "CSED Considerations" , with instructions for handling specific problems previously identified on tax accounts. Provides guidelines for using judgment when determining the correct CSED.

(48) IPU 12U1854 issued 11-20-2012 IRM 5.19.10.4.4.1 - moved information on TC 550 to IRM 5.19.10.4.4.3 and added information about combat zone accounts.

(49) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.4.4.1, Deleted last sentence to confer with a CSED Specialist. Arranged information regarding TC 971 AC 043/163 etc. into a bullet list under (7) and added a third bullet. Placed (7) into the bullet list under (6). Under TC 500 combat zone, filing period is not used in CSED computation. Added instruction for reversing TC 971 AC 043. TC 971 AC 043/163 information superseded by IPU 13U0315.

(50) IPU 13U0315 issued 02-08-2013 IRM 5.19.10.4.4.1 - Moved the information on TC 971/972 AC 043/063/163 to a new section, IRM 5.19.10.4.4.4.

(51) IPU 13U0716 issued 04-10-2013 IRM 5.19.10.4.4.1 (9), added information regarding Civil Penalty with Appeal Rights.

(52) IRM 5.19.10.4.4.1, added (3) on using judgment. Added TC 186 to (5).

(53) IPU 12U1854 issued 11-20-2012 IRM 5.19.10.4.4.2 (5) table, last Then box, - corrected TC 166 to TC 167.

(54) IPU 13U0716 issued 04-10-2013 IRM 5.19.10.4.4.2, (3), added a table explaining systemic computation of CSED on MFT 31 modules for TC 480 and TC 520. (2) - added the words "MFT 30" to the first sentence.

(55) IRM 5.19.10.4.4.2, added new section on working MFT 31 tax modules with CSED issues. Some of this information was in (3) through (5) of IRM 5.19.10.4.4. (3), table, added the last row for when TC 480 or TC 520 do not have a CSED code.

(56) IRM 5.19.10.4.4.3, added new section on working accounts with TC 550 present.

(57) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.4.4.3 (3), now (4), added information about the CSED Reset Program implemented to comply with RRA98.

(58) IRM 5.19.10.4.4.3, added (3), a TC 550 definer code 01 posted to a module is considered proof of a signed Form 900 Waiver.

(59) IRM 5.19.10.4.4.3 (5), added a last sentence to the paragraph to input TC 550 to correct.

(60) IRM 5.19.10.4.4.4, new section on TC 971/972 AC 043/063/163 issues.

(61) IPU 12U1854 issued 11-20-2012 IRM 5.19.10.4.5, rewrote and expanded. Added instructions about specific issues to be aware of when computing CSEDs. Added instructions for manual write-offs.

(62) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.4.5, added requirement to obtain concurrence from another employee before changing a CSED.

(63) IRM 5.19.10.4.5 (3) table and (4), outlines when TC 550 cannot be input to correct a CSED.

(64) IRM 5.19.10.4.5.1, added a reference to see IRM 5.19.10.4.5 before input of TC 550.

(65) IPU 12U1854 issued 11-20-2012 IRM 5.19.10.4.5.2, moved a portion of (1) to IRM 5.19.10.4.4.3.

(66) IRM 5.19.10.4.5.2, added a reference to see IRM 5.19.10.4.5 before input of TC 550.

(67) IPU 12U1854 issued 11-20-2012 IRM 5.19.10.4.6, new section on Credits Applied After the CSED.

(68) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.4.6(6) now (8), if prior status before full paid is Status 6X, CWL will be released on the IAAL.

(69) IPU 13U0716 issued 04-10-2013 IRM 5.19.10.4.6(7), now (9), added an IRM reference number.

(70) IRM 5.19.10.4.6:

  • (5) added instruction to transfer payments that are not barred to other liabilities. Renumbered subsequent paragraphs

  • (6), if no other balances, contact taxpayer by phone or letter to claim a refund

  • (9), levies identified as "fixed and determined" should remain on the module unless it is full paid

  • (10) added, instructions on handling levy payments received after the CSED

.

(71) IPU 12U1854 issued 11-20-2012 IRM 5.19.10.4.6.1, moved from IRM 5.19.10.4.8.

(72) IRM 5.19.10.4.6.1 (2) removed the words "and the approximate amount to be paid is known" from the end of the Note.

(73) IPU 12U1854 issued 11-20-2012 IRM 5.19.10.4.7 - rewritten and expanded.

(74) IRM 5.19.10.4.7:

  • (1) added last sentence indicating Kansas City CSCO works the IMF transcript and Philadelphia CSCO works the BMF transcript

  • (2) added last sentence requiring the manager to input AMS history regarding approval of TC 534

  • Moved (4) to IRM 5.19.10.7.1 (9) table

  • Deleted (5)

(75) IPU 12U1854 issued 11-20-2012 IRM 5.19.10.4.7.1 - rewritten and expanded.

(76) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.4.7.1:

  • Added direction to verify CSED using CCalc. (CCalc requirement removed later, see (79) below.) If CCalc doesn't agree with IDRS, manually compute the CSED

  • Removed instruction to compute the CSED under OFP 810–61261

  • (7), now (9), table, 2nd "Then" , (3), rewrote for clarity

  • Removed 6404(g) account as one type that requires manual computation of FTP

(77) IPU 13U0315 issued 02-08-2013 IRM 5.19.10.4.7.1 (2), added Status 12 to those modules which will be closed with no action, (7), if a transcript issues within 90 days of the last CSED, close the transcript with no action. (9), Deleted Combat Zone from the table.

(78) IPU 13U0716 issued 04-10-2013 IRM 5.19.10.4.7.1, (6) added information regarding CSED cases referred to HQ.

(79) IPU 13U1078 issued 06-11-2013 IRM 5.19.10.4.7.1(8)(a), now (7), added requirement to input a posting delay cycle with each TC 534.

(80) IRM 5.19.10.4.7.1:

  • Removed requirement to use CCalc. Do the manual calculation using a Julian calendar or the "CSED Helper-Julian Lookup"

  • Added process for manual verification and reporting of inaccurate CSEDs

  • Added (8), if the LAST CSED is less than 90 days from previous CSED or 30 days from current date, no write off is required

  • (9). removed requirement to compute penalty and interest on modules restricted by TC 534.

.

(81) IPU 13U1078 issued 06-11-2013 IRM 5.19.10.5, added paragraph regarding mandatory use of IAT tools. Renumbered the remaining paragraphs.

(82) IRM 5.19.10.5:

  • (2), deleted information regarding WI and SB/SE CSCO. Added Verify Payment transcript

  • (4), deleted information in parentheses in last bullet, except for 23W

  • (4), "Caution" , was moved to IRM 5.19.10.10.2.1

(83) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.5.1(3), added direction to re-control BMF transcripts back to the originator when received in WI CSCO.

(84) IPU 13U0716 issued 04-10-2013 IRM 5.19.10.5.1(6), TC 608 must be present on the module to move a credit to excess collections. The module does not have to be in credit balance.

(85) IRM 5.19.10.5.1:

  • (2), re-control levy transcripts to the originator if less than 60 days old; otherwise close no action

  • (5), expanded instructions in table under "Credits are located" . Added information on "fixed and determined" levy sources

  • (6)(c), input TC 971 AC 296 when moving a credit to Excess Collection file. (f), Include the tracking number on Form 2424 and Form 8758.

  • (7), added directions for transferring credits from the URF, (7)(c), documentation should include justification for transfer from XSF or URF.

  • (8), Erroneous Manual Refund Tool was changed to Manual Refund Tool and made mandatory for use on manual refunds.

  • (8)(b), FMS was changed to The Bureau of Fiscal Services (BFS)

(86) IRM 5.19,10,5,2, deleted (4) regarding "fixed and determined" levies.

(87) IRM 5.19.10.5.2.1, reorganized:

  • (1)(c), removed the requirement to contact other areas when that area is responsible for resolving the credit. Route to other area without contact

  • Added instructions regarding levy payments, including "fixed and determined" levies and Continuous Wage Levies

  • Removed instructions for researching Status History and taking action based on prior Statuses

  • (6) and (7), added procedures for contacting the taxpayer and monitoring for response

  • (8), added reference to see Processing Responses/No Response to Letter 672C

(88) IRM 5.19.10.5.2.2, Analyzing, Payment Types and Process Order, section was completely removed. Subsequent sections were renumbered.

(89) IRM 5.19.10.5.2.3(1) table:

  • Information on TC 91X was removed

  • TC 694, added narrative to clarify the purpose of TC 694

  • "Other TCs" , removed requirement to obtain a source document for the payment. Research RTR, AMS and IDRS instead

  • TC 640, removed the paragraph on TC 608. Removed requirement to contact CCP and changed the procedures overall.

(90) IRM 5.19.10.5.2.4:

  • (1) table, third "Then" , added instructions to associate a copy of taxpayer's response with files

  • Fourth "Then" , input TC 971 AC 296 on transfers to XSF

  • Last row of table, added instructions for late replies

  • Removed the "Reminder" and (2) from below the table

(91) IRM 5.19.10.5.2.5, Processing Refundable Credits, Section was removed.

(92) IRM 5.19.10.5.3, deleted (4).

(93) IRM 5.19.10.5.3.1:

  • (1), added information on how TC 470 no cc, cc 90, cc 93 and cc 95 are released

  • (2), added criteria regarding W− freeze created by TC 976

  • (3) table, added row two with instructions regarding unposted adjustments

  • (3) table, in row three and four, the table in (1) was referenced

  • (3) table, for TC 470 cc 95, send Form 4442 if a follow up transcript issues

  • Removed instructions for Non-Master File accounts, TC 971 AC 065 and TC 971 AC 100 and added instructions for MFT 31 accounts and TC 976

  • (4), on −Y, −V−W and −Z or Z− freezes, no action should be taken other than updating AMS

(94) IRM 5.19.10.5.4, added (3) to follow IRM 5.19.10.3.10, Generation of CP 44 and CP 188, to work AM07 transcripts.

(95) IRM 5.19.10.5.4.1 - Section was removed.

(96) IRM 5.19.10.5.5, title changed to "CSED (SPC3) Transcript" . Removed (3) regarding TFRP.

(97) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.5.5.1(6), added information about the new "CSED" field on CC ADJ54 required with TC 534.

(98) IRM 5.19.10.5.5.1:

  • (1), a table was added listing transcripts that require no action

  • (3), deleted and replaced with direction to follow IRM 5.19.10.4.7.1 table for write off

  • (4), replaced with instruction to update AMS history with TC 534 and Transaction Code amounts and requirement to paste Sort/Show on DMI to AMS history

  • (5), replaced - 90 day rules under MULTICSED transcript do not apply

  • (7), was (5), credit causing the A− freeze may not be applied to the expired CSED balance

  • (8), multiple TC 534s may now appear on a module representing each expired CSED

  • (9), use TC 535 to reverse incorrect TC 534s

(99) IRM 5.19.10.5.6(2), reverse TC 470 cc 90 and 93. (3) added purpose of TC 470 cc 95. Referred to AM06 instructions to resolve IRM.

(100) 5.19.10.5.6.1, section deleted.

(101) IRM 5.19.10.5.8:

  • (1), removed information on Enterprise Computing Center. Removed Note on TC 608

  • Added (2), taken from (5) of IRM 5.19.10.5.8.1

  • (3), follow IRM 5.19.10.5.2, PMTEXPCSED Transcripts if module contains a TC 608

  • (4), follow IRM 5.19.10.3.10, Generation of CP 44 and CP 188 procedures when working NMFL Transcripts

(102) IRM 5.19.10.5.8.1, Processing NMFL Transcripts, section removed.

(103) IRM 5.19.10.5.9(1), CADE2 programming eliminated the DUPREF transcript, (2), close any old DUPREF transcript with no action. Delete the remainder of the section.

(104) IRM 5.19.10.5.9.1, Processing Duplicate Refund (DUPREF) Transcript section removed.

(105) IRM 5.19.10.5.10, entire section on "VERFPYMT" Transcripts rewritten. Added information on new transcript "ELECSPPAY" .

(106) IRM 5.19.10.5.10.1, entire section on "VERFPYMT" Transcripts rewritten.

(107) IRM 5.19.10.5.11, placed contents in a bullet list. (1), listed the No-Merge reason codes for IMF and BMF. (2) was added to refer to Document 6209 for No Merge Reason Codes.

(108) IRM 5.19.10.5.12, Changed section title. Added (2) procedures to correct a Name Control on a civil penalty name line.

(109) IPU 13U1078 issued 06-11-2013 IRM 5.19.10.6, added paragraph regarding mandatory use of IAT tools.

(110) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.6.1, add (7) regarding income tax exclusion for civilians working in combat zone areas.

(111) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.6.2(8) and (9) last "Then" , change 70 days to 60 days. Added more information to (11) and (12) about the type of documentation provided by civilians.

(112) IPU 13U0315 issued 02-08-2013 IRM 5.19.10.6.2(9) - Added direction to send combat zone documentation to WI CSCO in Atlanta. Changed AM Toll-free to Application 98.

(113) IPU 13U0932 issued 05-15-2013 IRM 5.19.10.6.2(10) clarified which areas follow the procedures in row one of the table.

(114) IRM 5.19.10.6.2(2) third bullet, civilians must work directly in a combat zone to qualify for combat zone extensions.

(115) IRM 5.19.10.6.2(11), second bullet, civilians must work directly in a combat zone to qualify for combat zone extensions.

(116) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.6.4, added an explanation of how the CSED, RDD and interest and penalties are computed when the taxpayer serves in a combat zone during the filing season.

(117) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.6.5.1, rewrote. Added instruction for Toll-free when the taxpayer calls in response to Letter 2761C. Added new information regarding control bases open in category codes CP04, AMCZ and COCZ, added direction in (3) to add AMS history.

(118) IPU 13U0315 issued 02-08-2013 IRM 5.19.10.6.5.1 - Rewrote and expanded procedures for phones.

(119) IPU 13U0932 issued 05-15-2013 IRM 5.19.10.6.5.1(3), changed wording to "When responding to a caller who has received a" .

(120) IRM 5.19.10.6.5.1(6) table, first "Then" , added (2) to input TC 500 exit date, if provided.

(121) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.6.5.2, added IRM reference for more information.

(122) IPU 13U1078 issued 06-11-2013 IRM 5.19.10.6.5.4(10), removed the requirement to inform the taxpayer via e-mail of the action taken on the account. In (14) added information about using sensitive but unclassified data in e-mail responses to taxpayers.

(123) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.6.5.5(17), removed the requirement to reverse the return TC 500 unless it is on the year of combat zone entry. Added instruction in row 3 of table under (17) to put taxpayer provided dates on AMS, if the dates showing on CC IMFOLE are from DoD.

(124) IPU 13U0716 issued 04-10-2013 IRM 5.19.10.6.5.5(7), added instruction to close the CP 04 case and allow the system to remove the TC 500 when taxpayer marked their tax return in error.

(125) IPU 13U0932 issued 05-15-2013 IRM 5.19.10.6.5.5:

  • (15), if Letter 2761C has already been sent, do not send another one. Remove the TC 500 or allow the system to remove

  • Do not try to call a taxpayer with an overseas phone number

  • Rewrote (18) and split it to a new (19) that includes the table of corrections

  • Corrected paragraph reference numbers throughout the section

(126) IRM 5.19.10.6.5.5:

  • (2), TC 340, TC 270 and TC 160 will be systemically reversed with the TC 500.

  • (13) table, first "If" and "Then" , documentation is now required for other open TC 500s dated after 2009

  • (13) table, third "Then" , refer to IRM 5.19.10.6.2 for types of documentation

  • (13) table, added "to ensure they receive proper credit for the time served" to end of sentence in last "Then" box

  • (15), table, third and fourth "Then" , added information requiring documentation for other TC 500s dated 2010 and later.

(127) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.6.5.6(1), table, added Letter 2761C as a letter choice.

(128) IRM 5.19.10.6.5.6(3), table, added a row at the end to refer the case to Taxpayer Advocate if the taxpayer meets hardship or TAS criteria.

(129) IRM 5.19.10.6.5.7:

  • (6), added first bullet. CC INTST will provide the correct amount if the taxpayer is still in the combat zone

  • (8), an unreversed TC 500 will restrict interest computation

  • Added (9) regarding CC INTST and renumbered subsequent paragraphs

(130) IRM 5.19.10.5.8(1), removed the word "assistors" .

(131) IPU 13U1078 issued 06-11-2013 IRM 5.19.10.7, added paragraph regarding mandatory use of IAT tools.

(132) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.7.1, This transcript is worked in Atlanta CSCO.

(133) IRM 5.19.10.7.1(3), added instruction in the table under Combat indicator "0" to leave TC 160 in place if it was not caused by a TC 500 or CZ coded tax return.

(134) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.7.2, change dates in the example.

(135) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.7.2.1(2)(b), change 70 days to 60 days.

(136) IRM 5.19.10.7.2.2:

  • (3), any transcript with an unreversed TC 500 on CC IMFOLE less than two years old should be closed no action after following (a) and (b)

  • (5) table, second row, explained the use of the 8s and 9s in the TC 500 DLN. Added a Note regarding restriction of RPC "R" .

(137) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.7.2.3(4)(c), change 70 days to 60 days.

(138) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.7.2.3(5) table and (6). Changed the procedures to only require release of interest and penalty restrictions when the account has balance due modules or the taxpayer was never in a combat zone.

(139) IPU 13U0315 issued 02-08-2013 IRM 5.19.10.7.2.3 - Removed procedures for AM toll-free phones.

(140) IPU 13U0716 issued 04-10-2013 IRM 5.19.10.7.2.3(3), changed paragraph numbers in IRM references.

(141) IRM 5.19.10.7.2.3:

  • (3), added an "Exception" regarding self-identified TC 500s

  • (3) table, in the "Then" column, removed the referral to a specific parenthesis number further down in the procedures and changed it to wording instead. For instance, instead of "See (6) below to remove the TC 500" , wording was changed to "See procedures below for removing the TC 500."

  • (3) table, row four, rewritten. Only the tax return TC 500 open on CC IMFOLE needs to be compared to any DoD dates present on CC IMFOLE.

  • (4), reworded. If the most recent TC 500 open on CC IMFOLE is more than two years old and cannot be resolved with the procedures provided then taxpayer must be contacted.

  • (5) table, sixth "Then" (3), changed -C freeze to G- and/or -I freeze

(142) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.7.2.4(6), rewrote for clarity.

(143) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.7.2.5(1) table, first "If" and eighth "Then" , change 70 days to 60 days.

(144) IPU 13U1078 issued 06-11-2013 IRM 5.19.10.8, added paragraph regarding mandatory use of IAT tools.

(145) IRM 5.19.10.8, removed reference to Microfilm Replacement System.

(146) IPU 13U0932 issued 05-15-2013 IRM 5.19.10.8.1(3), removed the information in parenthesis that state "only if there is a credit balance" .

(147) IRM 5.19.10.8.1, moved Type E from the list in (3) to the list in (4).

(148) IRM 5.19.10.8.2, moved part of paragraph (1) to new paragraph (2).

(149) IRM 5.19.10.8.2.1:

  • (1)(b), added a reference to IRM 5.19.10.5.2, PMTEXPCSED Transcripts

  • (2)(a) through (c), removed reference to the MARS system and removed MARS related history items required to be entered on AMS. Removed the Note at the end of (c)

(150) IRM 5.19.10.8.3, removed the entire section regarding Diagnostic-Q, Type M. Subsequent subsections were renumbered.

(151) IRM 5.19.10.8.4, added (5) to take no action if a pending transaction, open control or unpostable appears on the module but resolve other restrictive conditions.

(152) IRM 5.19.10.8.5.1:

  • Added an IRM reference to the table, first "Then" (1)

  • (1) table under "I− Freeze Codes" , rewrote procedures

  • (1) table under "—V, W or Status 72" , removed routing procedures. Close with no action.

  • (1) table under "Unreversed TC 914, TC 916, TC 918 present" , removed routing procedures. Close with no action.

  • (1) table under "OIC Issues" , added instruction to input AMS history and fax Form 4442 if module has blank CSED fields

(153) IRM 5.19.8.6.1(1)(d), changed 26 cycles to 22 cycles.

(154) IPU 13U1078 issued 06-11-2013 IRM 5.19.10.9, added paragraph regarding mandatory use of IAT tools.

(155) IRM 5.19.10.9.1, removed information about Status B and deleted paragraphs 2 and 3.

(156) IPU 13U0932 issued 05-15-2013 IRM 5.19.10.9.3(1), change from 10 days to 5 or 10 days to work EFT 18 Listings.

(157) IRM 5.19.10.9.3(1), removed 5 day criteria. Removed reference to IRM 5.19.10.9.3.1 and IRM 5.19.10.9.3.2. Removed information about Pre-Note throughout the section.

(158) IRM 5.19.10.9.3.1, section on resolving problems on the pre-note register is removed and subsequent sections renumbered.

(159) IPU 13U0932 issued 05-15-2013 IRM 5.19.10.9.3.2(1), change from 5 days to 10 days to work EFT 18 listings appearing under category Non-Payment Problem Register.

(160) IRM 5.19.10.9.3.2, (now 5.19.10.9.3.1) if three or more rejected debits occur within 12 months, default the installment agreement. Convert to a regular installment agreement if the file cannot be located or the taxpayer cannot be reached. (4) change TC 280 to TC 286.

(161) IRM 5.19.10.9.5, if unable to locate EFT 18 file, convert to a regular installment agreement and send Letter 1961C.

(162) IPU 13U0315 issued 02-08-2013 IRM 5.19.10.9.9.1(2) - Changed letter to 1961C.

(163) IPU 13U0716 issued 04-10-2013 IRM 5.19.10.9.9.1(2), only send Letter 1961C if it was not previously sent.

(164) IRM 5.19.9.9.1, removed reference to CP 523. (1) removed first bullet regarding a DDIA payment.

(165) IRM 5.19.10.9.9.2, convert to a regular installment agreement and send Letter 1961C if the taxpayer can't be contacted.

(166) IPU 13U1078 issued 06-11-2013 IRM 5.19.10.10, added paragraph regarding mandatory use of IAT tools.

(167) IPU 13U1078 issued 06-11-2013 IRM 5.19.10.10.1, added (4) to indicate that GII case actions are documented on ENMOD.

(168) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.1.2, removed the requirement to search for delinquent returns. Updated title of IRM reference in (1).

(169) IPU 13U0716 issued 04-10-2013 IRM 5.19.10.10.2.1(2) now (3), added Hold Code requirements for interest and penalty adjustments. Added the requirement to send a letter when reinstating an IA.

(170) IRM 5.19.10.2.1, added (2) regarding modules with TC 608.

(171) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.2.2(2) Input levy source to AMS and expanded research requirements. In (3) table, corrected an IRM reference in row 2, reworded parts of the "And" column and added procedures to assess accruals in row 4. File Part 3 of Form 668D in the 1 year file.

(172) IRM 5.19.10.10.2.2(3) table, remove IRM reference in the second Then box.

(173) IRM 5.19.10.10.3.1(3) table, 1st "Then" , Change 10 day time frame to return the Collection Information Statement to 15 days. (2) added a dollar tolerance for allowing a taxpayer's proposed payment.

(174) IPU 13U0315 issued 02-08-2013 IRM 5.19.10.10.3.2 - Added instruction to include the new balance if total assessed balance still meets streamlined criteria.

(175) IPU 13U0932 issued 05-15-2013 IRM 5.19.10.10.3.2, added directions for In-Business Trust Fund Express Installment Agreements when a new balance posts to an account. Added an exception to default the agreement if it is a DDIA or PDIA. Plus added IRM references for authority level, user fee and ALN codes.

(176) IRM 5.19.10.10.3.2, (2) added a dollar tolerance for allowing a taxpayer's proposed payment.

(177) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.3.3(2), removed first sentence. Added direction to waive the User Fee in (4).

(178) IPU 13U1078 issued 06-11-2013 IRM 5.19.10.10.3.3, added new (5) to refer to IRM 5.19.10.10.3.2 if total balance meets streamlined IA criteria.

(179) IRM 5.19.10.10.3.3(1) Note, changed dollar criteria.

(180) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.3.4 table, corrected dollar amount and changed to 72 months. Row 5, "Then" , reinstate only as a DDIA.

(181) IPU 13U0315 issued 02-08-2013 IRM 5.19.10.10.3.4 - Changed "cannot" to "can" in the fourth "And" box. Removed the word "and" in the fifth and sixth "And" box

(182) IPU 13U0932 issued 05-15-2013 IRM 5.19.10.10.3.4, do not waive the User Fee if the IA was recently revised and a revision User Fee was charged.

(183) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.3.6, corrected the IRM reference to IRM 2.4.27.

(184) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.3.7, delete entire section. TC 520 cc 86 is obsolete. Renumber accordingly.

(185) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.4, reworded the last sentence of the Note in (1). Reworded first sentence of (3). Added (4) table with instructions for Insufficient Payment and Bad Check categories. Rewrote (5) for clarity.

(186) IPU 13U0315 issued 02-08-2013 IRM 5.19.10.10.4 - Changed "Waive the User Fee" in the last Then box of the table to "Advise the taxpayer of the User Fee."

(187) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.4.2(3) table first and second "Then" , added instruction to waive User Fee and update AMS.

(188) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.4.4, removed directions to input TC 971 AC 163.

(189) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.5, added instructions for Status 24, 26 and 53.

(190) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.6.2(1), reworded.

(191) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.6.3, corrected the IRM reference and removed the words "If/Then table, third box in the Then column" .

(192) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.7(2), removed closing codes 86 through 89.

(193) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.8, added a description for Status 91.

(194) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.9, reworded last Note for clarity.

(195) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.12, removed the words "User Fee Transfer/User Fee Abatement" in (15). Added the word "Reinstatement" to letter title in (16)(b). Corrected IRM title in (17).

(196) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.13, Collection Branch Follow-Up Review of Notice of Default (CP523/623), removed the entire section and renumbered subsequent sections.

(197) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.14.1, the 105 or 106 only applies to the time allowed for filing a Form 1040 tax return.

(198) IPU 13U0136 issued 01-15-2013 IRM 5.19.10.10.14.2, Removed last half of sentence regarding tax years.

(199) IRM 5.19.10.10.14.2(2)(a), deleted "Closing Code XX" in two places and replaced with "cc 52, 54 or 56" and "cc 53, 55 or 57" .

(200) Exhibit 5.19.10-3, added EFT 18 to Tier 2, to process in 10 days.

(201) IPU 12U1854 issued 11-20-2012 Exhibit 5.19.10-5 - removed Disaster information. Added information about TC 520 cc 73 and 84.

(202) IPU 13U0136 issued 01-15-2013 Exhibit 5.19.10-5 - define CSED start date and end date for TC 488/489. For combat zone, use the dates on CC IMFOLE. Added effective date for Innocent Spouse CSED computations. Revised information under CDP for the 90 day criteria. Removed the instruction under combat zone to add days to the suspension for time spent in the combat zone during filing season. TC 971 AC 163 does not add 30 days to the suspension when generated by Status 12.

(203) IPU 13U0716 issued 04-10-2013 Exhibit 5.19.10-5, - added information under Civil Penalty with Appeal rights, regarding TC 470 cc 95. Added information to bankruptcy on overlapping periods and application of the six months. Removed information under Innocent Spouse regarding December 20, 2006 effective date.

(204) IPU 13U0932 issued 05-15-2013 Exhibit 5.19.10-5, added cc 81 under bankruptcy.

(205) IPU 13U1078 issued 06-11-2013 Exhibit 5.19.10-5, added an effective date for TC 971 AC 043/063/163.

(206) Exhibit 5.19.10-5, additional days are added to the RDD if the taxpayer served during the filing season.

(207) IPU 12U1854 issued 11-20-2012 Exhibit 5.19.10-6, added CSED Chart for OIC exhibit.

(208) IPU 13U0136 issued 01-15-2013 Exhibit 5.19.10-6, revised the information under the second "If" and "Then" columns for clarity.

(209) IPU 13U0716 issued 04-10-2013 Exhibit 5.19.10-6, combined information in the last two rows.

(210) Exhibit 5.19.10-6, revised the last row of the chart with additional information regarding CSED suspensions for certain OIC transaction codes.

(211) Exhibit 5.19.10-6, added row regarding OIC dates after 03/08/2002.

(212) IPU 12U1854 issued 11-20-2012 Exhibit 5.19.10-7, added CSED Chart for OIC continued, exhibit.

(213) Exhibit 5.19.10-9, corrected a date in Step 5.

(214) IPU 12U1854 issued 11-20-2012 Exhibit 5.19.10-11 - Example CSED Computation removed.

Effect on Other Documents

IRM 5.19.10 dated October 4, 2012 (effective October 15, 2012) is superseded. The following IRM Procedural Updates (IPUs), issued from November 20, 2012 through June 11, 2013, have been incorporated into this IRM: 12U1854, 13U0136, 13U0315, 13U0381, 13U0716, 13U0932, and 13U1078.

Audience

Small Business/Self Employed (SB/SE) and Wage and Investment (W&I) Compliance employees who work Collection programs

Effective Date

(02-01-2014)

Scott Irick
Director, Filing and Payment Compliance
Wage and Investment Division

5.19.10.1  (02-01-2014)
Compliance Services Collection Operation Transcript Overview

  1. This section contains instructions for Compliance Services Collection Operation (CSCO) transcript programs. Wage and Investment (W&I) CSCO works Individual Master File (IMF) accounts and Small Business/Self-Employed (SB/SE) works Business Master File (BMF) accounts. Procedures regarding collection statute expiration date verification and correction are used by W&I and SB/SE CSCO and Automated Collection System (ACS) Support.

    Exception:

    Atlanta works all Electronic Funds Transfer (EFT) Listings for IMF and BMF.

  2. Various transcripts generate on modules assigned to Compliance when specific account conditions exist. Research and appropriate account actions are required to resolve the account or move it back into the collection stream.

  3. The transcripts discussed in this section are as follows:

    • Credit Offsets

    • Collection Statute Expiration Date (CSED)

    • Balance Due Transcripts

    • Diagnostic-Q Transcripts

    • EFT Listings

    • Installment Agreement Accounts List (IAAL)

  4. Each of the transcripts which generate require research specific to that program. This requires conducting research through Integrated Data Retrieval System (IDRS) or any other systems available to resolve the transcript.

  5. While processing transcripts you may need to reference and use the following IRMs in conjunction with the instructions provided in this IRM:

    • IRM 2.3, IDRS Terminal Responses

    • IRM 2.4, IDRS Terminal Input

    • IRM 2.9.1, Integrated Data Retrieval System

    • IRM 3.13.62, Media Transport and Control

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

    • IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines

    • Document 6209, IRS Processing Codes and Information

  6. Procedures in this IRM also include:

    • Collection statute expiration date verification and correction

    • Combat Zone taxpayer correspondence

  7. Throughout these procedures when directed to call the taxpayer, refer to IRM 5.19.5.4.1.4, Leaving Messages On An Answering Machine and IRM 21.1.3.2.3, Required Taxpayer Authentication.

  8. 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.

    1. Refer taxpayers to TAS when the contact meets the TAS criteria in IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, and you can't resolve the taxpayer's issue the same day. For a definition and procedures for "Same Day" resolutions, see IRM 13.1.7.4, Same Day Resolution by Operations.

    2. When you refer cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), and forward to TAS.

  9. Beginning June 17, 2013, the use of certain Integrated Automated Technologies (IAT) tools is mandatory for Compliance Campus employees when following procedures outlined in this IRM. Currently, the mandate is limited to the following tools:

    • Manual Refund Tool

    • Erroneous Manual Refund Tool (EMT)

    • Credit Transfer

    • Letters Tool

    • REQ54 Tool


    For User Guides, see the IAT web site at http://iat.web.irs.gov/JobAids/iat.asp

  10. If an IAT tool is not available, or an employee has a problem with the IAT Task Manager, the case should be processed through IDRS, without using the tool, by following established procedures. See the IAT Website for how to report/fix problems with IAT tools.

    Note:

    CC RFUND can only be input via the IAT tool.

5.19.10.2  (02-01-2014)
Acronyms/Definitions

  1. The following table lists the various acronyms (abbreviations) which may be used in the processing of transcript inventories and used throughout this IRM:

    Acronyms Definitions
    AC Action code when used with transaction code (TC) 971 miscellaneous code. IDRS displays it as "971-CD>" . Refer to Document 6209, IRS Processing Codes and Information, TC 971 Action Codes
    ACS Automated Collection System
    ACTON Command Code used to establish control bases, to update or close control bases that are open, to correct name controls on dummy accounts, to append history items to modules on IDRS, and to generate TC 902s to secure tax modules and their related entity data from the Master File. See IRM 2.3.12, Command Code ACTON.
    ADD24/48, ADC24/48, ADD34, ADC34, FRM34 and DRT24/48 These Command Codes are used to input two-sided credit transfers and generate TC 902s to secure tax modules and their related entity data from the Master File. Refer to IRM 2.4.17, Command Codes ADD24/34/48, ADC24/34/48, FRM34 and DRT24/48.
    AM Accounts Management
    AMRH Account Maintenance Research History
    AMS Account Management Services - an application that works in conjunction with IDRS to provide a record of actions taken on individual and business tax accounts.
    ANMF Automated Non-Master File
    ASED Assessment Statute Expiration Date
    ASFR Automated Substitute For Return
    ASGNI, ASGNB These Command Codes have five functions that may be used with accounts that are present on the Taxpayer Identification File (TIF). Refer to IRM 2.4.27, Command Code ASGNI/ASGNB formerly TSIGN. These functions include:
    • Controlling and updating Taxpayer Delinquent Account (TDA) and Taxpayer Delinquency Investigation (TDI) assignment numbers

    • Posting Notice Codes for subsequent processing by weekly analysis

    • Posting Alpha Case Codes for subsequent processing by weekly analysis

    • Posting Determined Grade Levels for subsequent processing by weekly analysis

    • Requesting a printed TDI assignment

    ATFR Automated Trust Fund Recovery System
    BFS The Bureau of Fiscal Services. Formerly FMS, Financial Management Services
    BMF Business Master File - A magnetic tape containing information on each taxpayer's business returns and related documents.
    BMFOL Business Master File On-Line Command Code furnishes read-only access to the Business Master File. See IRM 2.3.59, Command Codes BMFOL and BMFOR.
    BMFOR Command Code provides access to the BMF retention tax modules from accounts that merged to a new Taxpayer Identification Number (TIN). See IRM 2.3.59, Command Codes BMFOL and BMFOR.
    BOD Business Operating Division
    cc Closing Code when used with a transaction code
    CC Command Code for IDRS processing
    CCC Computer Condition Code
    CCP Centralized Case Processing
    CDP Collection Due Process
    CLC Collection Location Code
    CNC Currently Not Collectible
    CO Contingency Operation
    COIC Centralized Offer In Compromise
    COMPA Command Code which computes the interest or penalty on a specified amount for a specified period of time. See IRM 2.3.29, Command Codes INTST, ICOMP and COMPA.
    CP Case Processing
    CP Computer Paragraph
    CSCO Compliance Services Collection Operation
    CSED Collection Statute Expiration Date
    CZ Combat Zone
    DLN Document Locator Number
    DoD Department of Defense
    DPC Designated Payment Code
    ECC-MTB Enterprise Computing Center at Martinsburg (ECC-MTB), formerly Martinsburg Computing Center (MCC)
    EIN Employer Identification Number
    ENMOD Command Code which provides name, address, and other entity information from an input of the TIN. Refer to IRM 2.3.15, Command Code ENMOD.
    ENREQ Command Code with a blank definer is keyed in after a response to ENMOD indicates that the entry is on the file. Command Code with "R" definer is keyed in after response to ENMOD indicates that the entry is on the file. Refer to IRM 2.4.9, Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG for information.
    ERRF Erroneous Refund
    FMS Financial Management System - obsolete. Name has changed to The Bureau of Fiscal Services (BFS)
    FPLP Federal Payment Levy Program
    FS Filing Status
    FTF Failure to File
    FTP Failure To Pay
    GII Generalized IDRS Interface. - An application that interfaces with IDRS to do input previously done manually, such as establishing installment agreements or to input bulk corrections.
    GUF Generalized Unpostable File
    IA Installment Agreement
    IAAL Installment Agreement Accounts List
    IADFL Command Codes are:
    • IADFL—Used to default an existing Installment Agreement

    • IADFR—Used to establish Status 63 modules across computing centers. Access to this command code will be from command codes IAORG and IAREV.

    • IADIS—Used to display the Installment Agreement data

    • IAGRE—Used to request the format for entering IAORG, IAPND, or IAREV

    • IAORG—Used to initially enter an Installment Agreement on an account that contains balance due modules

    • IAPND—Used to initially enter, revise or nullify a preassessed installment agreement

    • IAREV—Used to revise an established Installment Agreement or to initially establish an agreement in deferred status

    See IRM 2.4.30, Command Codes IAGRE, IAORG, IAPND, IAREV, IADFL, and IADIS.
    IADFR
    IADIS
    IAGRE
    IAORG
    IAPND
    IAREV
    IAT Integrated Automated Technologies - Are desktop productivity-enhancing tools used by employees to interface with various IRS computer systems (primarily IDRS) to perform research and account actions previously done manually.
    ICOMP Command Code which computes payment information for an installment agreement. See IRM 2.3.29, Command Codes INTST, ICOMP and COMPA.
    IDRS Integrated Data Retrieval System - A computer system with the capability to instantaneously retrieve or update stored information which works in harmony with the Master File system of taxpayer accounts.
    IDS Inventory Delivery System
    IMF Individual Master File
    IMFOL Individual Master File On-Line - Command Code which provides read-only access to the Individual Master File. Fields available include basic identifying information, amounts, dates, codes, indicators, and freezes. See IRM 2.3.51, Command Code IMFOL.
    INOLES Command Code is used as a research tool to display the entity information on the NAP. The NAP (National Account Profile in Martinsburg) contains extensive Master File entity information for all taxpayers on the Individual Master File, Business Master File (SSN and EIN ), and Employee Plan Master File. There is also Social Security data (DM-1) and spouse cross reference data. See IRM 2.3.47, Command Codes INOLE, EOGEN and SPARQ.
    INTST Command Code which computes the balance, including interest and failure to pay (FTP) accruals, to the date specified in the input. See IRM 2.3.29, Command Codes INTST, ICOMP and COMPA.
    IRAF Individual Retirement Account File
    IRC Internal Revenue Code
    IRM Internal Revenue Manual
    IRPTR Command Code allows users to request either online or hardcopy Information Returns Processing (IRP) transcripts from the Information Returns Master File (IRMF). Refer to IRM 2.3.35, Command Code IRPTR.
    IRSN Internal Revenue Service Number
    ISRP Integrated Submission and Remittance Processing System
    LEVY Command Code which allows one to research specific levy source information. See IRM 2.4.31, Command Code LEVY.
    MF Master File - A magnetic tape containing information concerning all taxpayers who file tax returns.
    MFT Master File Tax Account Code - A two-digit number which identifies the type of tax.
    MFREQ Command Code uses definers C or D or RECON to request an entity module or a tax module and its related entity data when case control is not required. See IRM 2.3.10, Command Codes MFREQ and RECON.
    NMF Non-Master File - A file containing records of accounts for which manual procedures must be maintained.
    NMFL Non-Master File Liability
    NOMRG No Merge
    OIC Offer in Compromise - A proposal for settlement of tax liability for an amount less then that previously assessed (or unassessed) or a liability for specific penalties assessed (or unassessed). See IRC 7122, Compromises.
    OB Outstanding Balance
    OOB Out of Business
    P&I Penalty and Interest
    PDC Posting Delay Code
    QHDA Qualified Hazardous Duty Area
    RC Reason Code
    RECON Command Code will download the module data from Corporate Files On Line (CFOL) to the local IDRS while the user is waiting online. Refer to MFREQ for IRM reference.
    REQ77 Command Code used to input certain transaction codes to individual tax modules or taxpayer entities. See IRM 2.4.19, Command Codes REQ77, FRM77 and FRM7A.
    RO Revenue Officer
    RPC Return Processing Code
    RSED Refund Statute Expiration Date
    RTR Remittance Transaction Research System
    RTVUE Command Code that provides display of line items transcribed from Form 1040 series and their accompanying schedules and/or forms as the returns are processed at the campuses. Refer to IRM 2.3.52, Command Codes RTVUE and RTFTP.
    SB/SE Small Business Self Employed Operating Division
    SC Service Center - SC is still used on IDRS, although Service Centers are now referred to as Campuses
    SERP Servicewide Electronic Research Program (http://serp.enterprise.irs.gov)
    SSA Social Security Administration
    SSN Social Security Number
    ST Status
    STAT Statute
    STAUP Command Codes including STATI and STATB are used to issue or delay balance due notices or delay/forward a tax module to ACS or Field Collection See IRM 2.4.28, Command Code STAUP, STATI and STATB.
    SUMRY Command Code which provides research for all master file accounts. See IRM 2.3.11, Command Codes TXMOD and SUMRY.
    TAS Taxpayer Advocate Service
    TC Transaction Code - A three digit numeric, which defines the precise nature of the transaction. Refer to Document 6209, IRS Processing Codes and Information, Transaction Codes for a listing.
    TDA Taxpayer Delinquency Account
    TDI Taxpayer Delinquency Investigation
    TERUP Command Code which allows an employee to delete his/her erroneous IDRS entry/entries on the day of input. See IRM 2.4.13, Command Code TERUP.
    TFRP Trust Fund Recovery Penalty
    TIF Taxpayer Identification File (IDRS)
    TIN Taxpayer Identification Number - Every taxpayer has a permanent number for identification of their account. The Employer Identification Number (EIN) is used to identify taxpayers on the BMF. The Social Security Number (SSN) is used as the account number of the taxpayer on the IMF.
    TOP Treasury Offset Program
    TSf Territory Support function-obsolete. Area is now known as Advisory on SERP Who/Where.
    TSIGN Obsolete Command Code. Refer to ASGNI/ASGNB.
    TXMOD Command Code which provides research for all tax accounts by specific tax modules. See IRM 2.3.11, Command Codes TXMOD and SUMRY.
    TXPD Tax Period
    UD Undelivered
    UPTIN Command Code used to provide research for unposted transactions. See IRM 2.3.37, Command Code UPTIN for the GUF System.
    URF Unidentified Remittance File - A separate file within IDRS containing all remittances received which cannot be immediately identified or applied. Each record within the file contains the UR control number, amount of remittance, type of remittance, received date, taxpayer's name and other identifying information, if known.
    URINQ Command Code which requests the display of one or more records from the Unidentified Remittance File. See IRM 2.3.20, Command Code URINQ (URF).
    W&I Wage and Investment Operation Division
    XSF Excess Collection File - A file within the IDRS containing receipts which cannot be identified or applied. Each record within the file contains the XS control number, amount of credit, type of credit, received date and other identifying information, if known. XSF reflects contents of Accounts 6800 and 9999 less than seven years and more than one year after the IRS received date except in true statute cases, where it may be under one year.
    XSINQ Command Code which displays one or more records in the Excess Collection File (XSF). See IRM 2.3.45, Command Code XSINQ.

5.19.10.3  (02-01-2014)
Credit Offsets

  1. The IAT tools as listed in IRM 5.19.10.1, Compliance Services Collection Operation Transcript Overview, must be used by Campus Compliance employees for procedures outlined in this IRM. When an action must be taken and an IAT tool is available, Campus Compliance employees with access to the tool are required to use it to complete the action.

    Note:

    If an IAT tool is not functioning properly or it is determined not to be appropriate due to a specific situation, the case should be worked without the tool, using IDRS. For more information on each tool as well as a job aid for each tool see the IAT Website

    .

  2. If a determination is made that an overpayment on an account should be applied to another account or liability and a systemic offset will not happen, request the input of TC 130.

5.19.10.3.1  (10-15-2012)
Use of Credit Offset

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

  2. 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.

  3. If a credit of ≡ ≡ ≡ ≡ or more becomes available and TC 130 is present, a CP 44 (IMF) or CP 188 (BMF) is generated to that campus.

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

5.19.10.3.2  (02-01-2014)
Request Input of TC 130

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

    • Form 3177,Notice of Action for Entry on Master File

    • Form 4442, Inquiry Referral

    • Form 53,Report of Currently Not Collectible Taxes

  2. The above forms, initiated by the field, should be processed through Centralized Case Processing (CCP) in Philadelphia. All other functions route the above forms to WI CSCO in Atlanta or SB/SE CSCO in Philadelphia.

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

    • Tax form number

    • Tax period

    • Taxpayer's name (name of each taxpayer responsible for any joint liability)

    • Taxpayer identification number (including cross referenced liabilities)

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

  5. See IRM 5.19.10.3.3, Input of TC 130 on IMF and IRM 5.19.10.3.4, Input of TC 130 on BMF, to determine when a TC 130 is appropriate.

5.19.10.3.3  (02-01-2014)
Input of TC 130 on IMF

  1. Input a TC 130 to the IMF when:

    • The taxpayer has a pending liability not yet assessed and they want to apply a future refund

      Example:

      The taxpayer has agreed to a proposed, pending Exam assessment and wants the Service to apply his next Form 1040 refund to the balance.

    • The taxpayer also has a Non-Master File (NMF) account

    • An IMF taxpayer is a partner or sole proprietor and has existing BMF liabilities

    • An IMF taxpayer owes a single liability and is subsequently filing jointly as a secondary taxpayer

    • An IMF taxpayer previously filed jointly with another taxpayer that had a tax liability and is now filing jointly with another primary taxpayer

    • An IMF secondary taxpayer had an invalid SSN on a joint return with a tax liability, then subsequently files a refund return as a single taxpayer with a valid SSN

    • An IMF taxpayer has a Trust Fund Recovery Penalty (TFRP) or other civil penalty and usually files a secondary SSN on Form 1040,U.S. Individual Income Tax Return or equivalent Form 1040, series return filed by international taxpayers

    • An IMF taxpayer has an MFT 31 assessment under his/her own SSN and usually files as a secondary SSN on Form 1040, U.S. Individual Income Tax Return

    • An IMF taxpayer whose Offer-In-Compromise (OIC) has been accepted

5.19.10.3.4  (04-10-2013)
Input of TC 130 on BMF

  1. Input a TC 130 to the BMF when:

    • There are IMF balance due modules owed by individuals who are active on the BMF

    • There are Individual Retirement Account File (IRAF) balance due modules owed by individuals who are active on the BMF

    • There are NMF balance due modules owed by taxpayers (any type of entity) who are active on the BMF

    • There are BMF balance due modules owed by taxpayers who are liable for taxes on the BMF under more than one TIN

5.19.10.3.5  (02-01-2014)
Input of TC 130 on IDRS

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

    1. TIN

    2. Cross reference TIN where credit should be applied

    3. Cross reference Name Control

      Note:

      If you are required to input a closing code with TC 130, as in unable to locate/unable to contact cases, then the cross reference name control must be input. If a closing code is not required, leave the cross reference name control field blank or the TC 130 won't take. See IRM 5.19.5.6.3.6, "I4 - Closing the Case" .

  2. 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.

  3. One of the following Document Locator Number (DLN) codes should be input:

    • 000 — Master File Assessment

    • 001 — OIC

    • 002 — NMF

    • 004 — Taxpayer Request

    • 102 — TFRP

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

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

5.19.10.3.6  (02-01-2014)
TC 130 Requests from Non-Master File Accounting Function

  1. At the time an NMF assessment is made, Automated Non-Master File (ANMF) will not systemically post the TC 130 to Master File. Manual input of TC 130 may still be required. Use DLN code “002”.

5.19.10.3.7  (02-01-2014)
TC 130 Requests for Trust Fund Recovery Assessments

  1. The Automated Trust Fund Recovery System (ATFR) automatically uploads TC 130 to the responsible party's entity, 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 code input to CC REQ77 will be "102" .

5.19.10.3.8  (02-01-2014)
TC 130 Requests from Underreporter and Examination Function

  1. Taxpayers may agree to assessments made by the Underreporter (URP) and Examination functions by requesting that their anticipated refund be applied to the assessment. URP 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.

  2. DLN code "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.

5.19.10.3.9  (09-15-2009)
Input of TC 131

  1. Research for any outstanding liabilities on IDRS.

    1. If there are no liabilities on IDRS, research ANMF or request a transcript from NMF.

    2. If no liabilities remain on IDRS or NMF, input the TC 131 to CC ENMOD using CC REQ77.

    3. Destroy paper document(s), if available.

5.19.10.3.10  (02-01-2014)
Generation of CP 44 and CP 188

  1. 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.

    • There is no dollar limit for the amount of overpayment that can be released under the CP 44/CP 188 program.

  2. Follow these procedures when working all TC 130 follow up transcripts, AM07, NMFL, ST07 and X-07.

    1. For AM07 transcripts that issued because of an unreversed TFRP TC 130, see IRM 5.19.10.3.11.2, Transfer of Credits and TFRP.

  3. Close the CP 44/CP 188 per the table below when the account has certain conditions. For other conditions present on the credit module or cross reference module, see IRM 5.19.10.3.11, Research Prior to Transfer of Credits.

    If... Then...
    "1" in Position 9 of the TC 130 DLN, (OIC) (−Y freeze is present on the primary TIN created by a TC 480 and 780) Update AMS and close case.
    “1” in Position 9 (OIC) (−Y freeze is present on the primary TIN created by a TC 480 only)
    TC 520 –V or –W freeze (including cc 76 or 77)
    A −Z freeze created by a TC 914 and freeze code Z− created by TC 916 and 918 are present

  4. See IRM 5.19.10.3.12, Transfer of Credits for instructions on transferring the credit.

  5. Follow the general procedures below when working CP 44/CP 188:

    If... Then...
    No debit balance exists Input TC 131.
    The total debit balance where the credit will be applied is less than ≡ ≡ including accruals Do not transfer the credit. Input TC 131
    There are other module balances on the account where the credit resides and the credit does not exceed the total amount
    1. Note any cross reference TINs on AMS.

    2. Transfer the credit to the module with the earliest CSED.

    3. Do not release the TC 131 unless all balances owed by the taxpayer are full paid.

    There are other module balances on the account where the credit resides and credit exceeds the total amount
    1. Note any cross reference TINs on AMS.

    2. Transfer enough credit to full pay all balances on the account with the credit.

    3. If another liability is found, transfer the remaining credit to that liability.

    4. Do not release the TC 131 unless all balances on the cross reference accounts are full paid.

    Partially or completely transferring a credit to another balance Send Letter 678C, Refund/Overpayment Applied Elsewhere, to the taxpayer.

5.19.10.3.11  (02-01-2014)
Research Prior to Transfer of Credits

  1. Research AMS history for any cross reference and balance due information provided by a previous employee.

  2. 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 that has no individual filing requirements.

    Example:

    Do not apply credits on Form 1040, U.S. Individual Income Tax Return to debits on Form 1120, U. S. Corporation Income Tax Return, Form 1041, U.S. Fiduciary Income Tax Return for Estates and Trusts, and Form 990, Return of Organization Exempt from Income Tax, series without written authorization from the taxpayer. The reverse is also true.

  3. Under the authority of the 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:

    1. Transfer credit per IRM 5.19.10.3.12, Transfer of Credits.

    2. Send Letter 678C, Refund/Overpayment Applied Elsewhere, to the non-liable spouse.

  4. If the cross reference TIN module has a posted TC 608, the collection state expiration date (CSED) has expired and the balance will be ".00" . Credits cannot be transferred to a module where all CSEDs are expired. This is true even if the payment date or posting cycle of the credit is prior to the statute expiration date.

    Exception:

    See IRM 5.19.10.4, Exception, Collection Statute Expiration Date (CSED) Verification and Correction, regarding "fixed and determined" levies served prior to the CSED and IRM 5.19.10.5.1 table, General Procedures for All Transcripts.

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

  6. Prior to moving your credit, look for a Large/Corporation case indicator. If the indicator is present, contact the Large Corp Unit per IRM 21.7.1.4.11.4, Campus Contacts for Large Corp Cases. See IRM 21.7.1.4.11, Large Corp Unit, for Large Corp State Mapping.

  7. If the cross reference TIN input with the TC 130 is an EIN or additional cross reference EINs are identified, research CC BMFOLE. See Document 6209, Section 8A - 6, Filing Requirement Codes (FR Codes):

    If... Then...
    An LLC or TFRP is involved See the table below.
    Filing Requirements on CC BMFOLE are:
    • Form 1120, U.S. Corporation Income Tax Return, and series

    1. Overpayments from Form 1040, U.S. Individual Income Tax Return cannot be applied.

    2. If taxpayer has no other liabilities, input TC 131.

    The overpayment is on a Form 1040, U.S. Individual Income Tax Return and taxpayer has a Sole Proprietorship (income is reported on Schedule C), taxpayer may have filing requirements and owe under:
    • Form 94X family of employment tax returns

    • Form 2290, Heavy Highway Vehicle Use Tax Return

    • Form 720, Quarterly Federal Excise Tax Return


    1. Overpayments from Form 1040, U.S. Individual Income Tax Return can be applied.

    2. If the credit full pays the balances owed and taxpayer has no other liabilities, input TC 131.

    Sole Proprietorships do not have filing requirements for the tax forms below. If there are open filing requirements for these forms:
    • Form 1120, U.S. Corporation Income Tax Return

    • Form 1041, U.S. Income Tax Return for Estates and Trusts

    • Form 990, Return of Organization Exempt From Income Tax

    • Other annual business returns

    1. Overpayments from Form 1040, U.S. Individual Income Tax Return cannot be applied.

    2. If taxpayer has no other liabilities, input TC 131.

  8. The following table provides procedures on how to process accounts with certain conditions when they appear on the cross reference module. See IRM 5.19.10.3.10, Generation of CP 44 and CP 188, for other conditions not addressed here.

    If... Then...
    Cross reference module is for Form 1041, U.S. Income Tax Return for Estates and Trusts (MFT 05)
    • Current status code is 14

    • Taxpayer is making quarterly payments, and

    • There are no other debit modules

    Input TC 131. Taxpayer was granted installment privileges to make quarterly payments.
    For BMF cases, Form 2290, Heavy Highway Vehicle Use Tax"Return" Refer to IRM 21.7.8, Excise Taxes, for instructions.
    Cross reference TIN input with the TC 130 is an EIN and/or
    Positions 9 and 10 of the TC 130 DLN is “21” (TFRP)
    See IRM 5.19.10.3.11.1, Transfer of Credits to LLCs or IRM 5.19.10.3.11.2, Transfer of Credits and TFRP.
    Cross reference TIN input with the TC 130 is an EIN and neither LLC or TFRP is involved. See above.
    "2" in Position 9 (NMF) See IRM 5.19.10.3.11.3, Transfer of Credits To Non-Master File.
    “17” in Positions 9 and 10 (Innocent Spouse) or L− freeze present created by TC 971 AC 065, Innocent Spouse Claim Pending See IRM 5.19.10.3.11.4, L− Freeze and Innocent Spouse.
    Freeze Code −R created by TC 570 See IRM 5.19.10.3.11.5, −R Freeze Credits.
    Freeze Codes –V, −W, −Y and −Z or Z− See IRM 5.19.10.3.10, Generation of CP 44 and CP 188.

5.19.10.3.11.1  (02-01-2014)
Transfer of Credits to LLCs

  1. If the cross reference balance due module is a Limited Liability Company (LLC), do not automatically offset the credit until you have completed research of AMS per IRM 5.19.10.3.11.2, Transfer of Credits and TFRP. If the Trust Fund Recovery Penalty history is present in AMS, follow the research steps in that section to determine if TC 131 is appropriate.

  2. See IRM 5.1.21, Collecting from Limited Liability Companies, for complete information on LLCs.

  3. A limited liability company (LLC) is an entity created under state law that has characteristics of both a partnership and a corporation. It is similar to a:

    • Corporation in that the owners have limited personal liability for negligent acts and LLC debts

    • Partnership in that it provides management flexibility and may provide the benefit of pass-through taxation of income

  4. An LLC with one owner is a single member entity. An LLC with more than one owner is a multi-member entity. The treatment of an LLC for tax purposes may depend in part on whether the LLC is a single member entity or a multi-member entity.

  5. TC 130 is not input on any member of a multi-member LLC that is classified as a partnership, or an association taxable as a corporation.

  6. Domestic and Foreign LLCs may elect classifications by filing Form 8832, Entity Classification Election,

    • A multi-member LLC may elect to be classified as a partnership, or an association taxable as a corporation.

    • A single member LLC may elect to be classified as an association taxable as a corporation, or an entity disregarded as separate from its owner.

  7. If the single member LLC is treated as an entity disregarded as separate from its owner, then the single member owner (SMO) may be liable for some excise or employment taxes that become due.

  8. If an LLC does not file an election on Form 8832, then it is classified by default.

    • A domestic multi-member LLC is classified by default as a partnership for federal tax purposes.

    • A foreign entity is classified by default and its classification depends on the number of members and the liability of each member involved.

    • A domestic single member LLC is classified by default as an entity disregarded as separate from its owner for federal income tax purposes, for employment taxes that accrue prior to January 1, 2009, and for excise taxes that accrue before January 1, 2008.

    • With respect to excise tax liabilities imposed and actions first required or permitted in periods beginning on or after January 1, 2008, or employment taxes on wages paid on or after January 1, 2009, the LLC is treated as a corporation and is the liable taxpayer, regardless of its classification for income tax purposes.

  9. An association taxable as a corporation may further elect to be classified as an S corporation by filing Form 2553, Election by a Small Business Corporation.

  10. For employment taxes and excise taxes when a domestic single member LLC has elected to be classified as an association taxable as a corporation:

    If... And... Then...
    The balance due on the LLC is for employment taxes:
    • Form 941 Series (MFT 01, 17)

    • Form 943 Series (MFT 11, 19)

    • Form 944 Series (MFT 14)

    • Form 945 (MFT 16)

    • Form CT-1 (MFTs 09, 72)

    Is for tax periods beginning January 1, 2009 or after
    1. The LLC is treated as a corporation. Overpayments from Form 1040, U.S. Individual Income Tax Return cannot be applied to employment tax balances.

    2. If the taxpayer has no other liabilities, input TC 131.

    The balance due on the LLC is for certain excise taxes: Form 720, Quarterly Federal Excise Tax Return (MFT 03, 45) or other excise taxes Is for tax periods beginning January 1, 2008 or after

  11. For employment taxes and excise taxes, when a domestic single member LLC is classified by default as an entity disregarded as separate from its owner:

    If... Then...
    Balance owed is for employment taxes accrued prior to January 1, 2009
    1. Overpayments from Form 1040, U.S. Individual Income Tax Return can be applied.

    2. Do not input TC 131 unless all balances are full paid.

    Balance is owed for excise taxes that accrue before January 1, 2008.

  12. To determine an individual or business taxpayer's liability and how an LLC is classified for income tax purposes, see the following:

    • IRM 5.1.21.4.1, Internal Sources, for TC 076 and TC 090 indicators shown on CC BMFOLE and a general discussion on locating the liable taxpayer.

    • IRM 5.1.21.8.3, Identity of the Taxpayer on Integrated Data Retrieval System (IDRS) regarding TC 971 AC 364, TC 971 AC 365, and TC 971 AC 366 that, if present, will identify the liable taxpayer.

    • Exhibit 5.1.21–1, Income Taxation for LLCs and Exhibit 5.1.21–2, Employment Taxation for LLCs, in IRM 5.1.21, Collecting from Limited Liability Companies for an explanation of how LLCs are taxed and whether the individual or the entity is the liable taxpayer.

5.19.10.3.11.2  (02-01-2014)
Transfer of Credits and TFRP

  1. If the X-REF TIN associated with the TC 130 is an EIN and/or "21" is present in the 9th and 10th position of the TC 130 DLN, research AMS history on the TC 130 SSN and spouse SSN for a history regarding TFRP.

    Example:

    "Trust Fund Recovery - for questions please contact IRS Revenue Officer RO NAME at ( xxx ) xxx xxxx for the responsible party, taxpayer name, 000-00-0000 of the Corporation, CORPORATION NAME, 00-0000000"

  2. Follow table below:

    If... And... Then...
    History is present   Research both spouses, for a TFRP balance due.
    History is not present   Follow normal TC 130 research procedures. Refer to IRM 5.19.10.3.11.1, Transfer of Credits to LLCs, to determine if the EIN is an LLC.
    TFRP balance due is present Overpayment is on a joint module and TFRP is assessed only against the secondary spouse
    1. Transfer the overpayment to the secondary spouse TFRP.

    2. Do not reverse the TC 130 on the joint account unless overpayment full pays the TFRP.

    Overpayment is on a joint module and TFRP is assessed against the primary spouse or both spouses Input TC 131.
    TFRP balance due is not present  
    1. Make two attempts to contact the Revenue Officer (RO) listed on AMS.

    2. Leave a voice mail message providing your contact information, reason for the call, and the name of the business for which taxpayer owes TFRP.

    3. Do not leave a TIN or other tax information on the voice mail.

    4. Allow three business days for callback.

    5. Follow the RO's instructions regarding the TC 130.

    6. Update AMS and close case.

    Unable to contact the RO or RO does not return your call   Do not reverse TC 130.
    AM07 issued due to an unreversed TFRP TC 130 TFRP has been assessed against the primary and/or secondary spouse Follow "TFRP balance due is present" above.
    TFRP has not been assessed
    1. If no attempt to contact the RO was made previously, per research of AMS, follow procedures above to contact.

    2. Follow the RO's instruction regarding the TC 130.

    3. If an attempt to contact the RO was made previously or you are unable to contact the RO now, input TC 131.

5.19.10.3.11.3  (02-01-2014)
Transfer Credits to Non-Master File

  1. Secure a transcript from ANMF. See IRM 21.2.3.5.9.3, NMF Transcript Ordering for requesting a transcript.

  2. Complete Form 2424, Account Adjustment Voucher, to transfer the credit. See IRM 3.17.21.3.3, Form 2424 (DRT24).

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

    1. Manually compute and assess the allowable interest on the credit transfer amount (TC 770), if applicable.

    2. Monitor until the TC 770 posts.

    3. Complete a separate Form 2424, to transfer the TC 770 amount.

  4. Route Form 2424 and the NMF transcript on Form 3210, Document Transmittal, to Centralized NMF, Accounting Control Services, 201 Rivercenter Blvd., Covington, KY 41011, .Stop #21 ATTN: Non Master File Team 104.

5.19.10.3.11.4  (02-01-2014)
L− Freeze and Innocent Spouse

  1. When a taxpayer files an innocent spouse claim on a joint module, a TC 971 AC 065 is input. TC 971 AC 065 with no XREF-TIN> on CC TXMOD indicates the primary taxpayer filed the claim. If the secondary taxpayer filed the claim, the secondary taxpayer SSN will show in the XREF-TIN> field.

  2. TC 971 AC 065 generates an L− freeze and a TC 130 with DLN code 17 posts to the non-requesting spouse (NRS). This is to prevent any erroneous refund.

  3. Research the innocent spouse module to determine which taxpayer filed the claim.

  4. Follow table below:

    If... Then...
    The overpayment is for an NRS
    1. Transfer the credit

    2. Do not reverse the TC 130.

    The overpayment is for the requesting spouse (RS)
    1. Do not transfer the credit.

    2. Do not reverse TC 130

5.19.10.3.11.5  (02-01-2014)
−R Freeze Credits

  1. Refer to IRM 21.5.6.4.35, −R Freeze, for more information on −R freeze credits. Resolve per below:

    If... Then...
    Freeze Code −R created by TC 570 is present as a result of a pending adjustment or credit transfer which will use the credit Take no action.
    Freeze Code −R created by TC 570 resulting in a freeze input to hold the credit for manual offset Resolve following IRM 5.19.10.3.12, Transfer of Credits.

5.19.10.3.12  (02-01-2014)
Transfer of Credits

  1. When transferring credits, refer to IRM 21.5.8.4, Credit Transfer Processing and Exhibit 21.5.8–1, Transaction Codes and Reversals.

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

  3. Form 2424, Account Adjustment Voucher, must be prepared to transfer a credit to an NMF account. See IRM 5.19.10.3.11.3, Transfer of Credits to Non-Master File.

  4. Credit interest on an offset is usually allowed from the availability date of the overpayment to the due date of the outstanding liability to which it is applied.

    1. Compute and assess the appropriate amount of credit interest allowed.

    2. Input TC 770 via CC REQ54 to the overpayment module.

    3. Transfer the TC 770 amount, along with the available credit, to the debit module.

    4. See IRM 20.2.4.6.1, Interest on Offsets, for instructions.

  5. The table below provides procedures for application of credits:

    If... And... Then...
    There is only one debit module The available credit amount satisfies the debt Transfer the credit using TC 824 (debit) and TC 700 (credit). The TC 130 will be released and the remaining credit will be refunded.
    There are one or more debit modules The available credit does not satisfy the debt
    1. Transfer the credits using applicable transaction codes.

    2. Address the oldest CSED modules first.

    3. Maintain the TC 130 on the account.

    There is more than one debit modules The available credit will exceed the total debit
    1. Transfer the credit using applicable transaction codes.

    2. Send taxpayer Letter 678C.

    3. Input TC 131 to CC ENMOD using CC REQ77 with a 2 cycle delay.

    Allowable interest is to be transferred with the credit  
    1. Use TC 850 (debit) and TC 770 (credit).

    2. Use the date of input for transaction date.

    3. Input posting delay code 2 on debit and credit side to allow TC 770 to post.

  6. Send Letter 678C, Refund/Overpayment Applied Elsewhere, when part or all of the overpayment is applied to another liability.

  7. Once a determination is made about the liable taxpayer and case actions are taken, update AMS history and include the following:

    • Cross reference TIN, tax periods, and MFTs for balances owed

    • Name of liable taxpayer(s)

    • If multiple liable taxpayers, specify each taxpayer's liability

    • Summary of action taken for the current closure

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

  9. 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.

5.19.10.3.13  (05-01-2007)
Point of Count

  1. Count as follows:

    • Each CP 44/CP 188 as one

    • Each primary TIN on the TC 130 listing, as one

    • Each TC 130/131 request, as one

    • Each related unpostable (no count)

    • Each undelivered CP 44/CP 188 received (no count)

    • Take no count on any related clerical duties

5.19.10.4  (02-01-2014)
Collection Statute Expiration Date (CSED) Verification and Correction

  1. The IAT tools as listed in IRM 5.19.10.1, Compliance Services Collection Operation Transcript Overview must be used by Campus Compliance employees for procedures outlined in this IRM. When an action must be taken and an IAT tool is available, Campus Compliance employees with access to the tool are required to use it to complete the action.

    Note:

    If an IAT tool is not functioning properly or it is determined not to be appropriate due to a specific situation, the case should be worked without the tool, using IDRS. For more information on each tool as well as a job aid for each tool see the IAT Website

    .

  2. This section and subsections provide procedures for verifying and correcting CSEDs. They also have procedures for writing off assessments associated with an expired CSED when a module contains more than one CSED. These procedures are only to be used by employees who have received advanced training on computing and correcting CSEDs. If you have not received advanced CSED training and have a CSED issue see below for referring your case.

  3. Beginning in January 2013, Kansas City Collection Operation began working MULTICSED Transcripts or listings on IMF (SSN) accounts ONLY. Kansas City also works CSED issues identified through normal processing on Business Operation Division (BOD) WI accounts.

  4. Beginning in February 2013, SB/SE CSCO in Philadelphia will work MULTICSED Transcripts on BMF (MFTs 01, 06, 10 and 11) accounts and CSED issues identified through normal processing on BOD SB/SE accounts.

  5. Beginning February 18, 2013, WI and SB/SE ACS Support will work CSED issues on Status (ST) 22 accounts and ST 24 accounts found in ACS Support work.

  6. See SERP Who/Where CSED Referrals - Campus for routing. Route accounts in ST 26, 43, 71 and 72 following normal procedures in IRM 5.19.1, Balance Due.

    1. Input CC STAUP for nine cycles for accounts in Notice Status.

    2. For accounts in ST 22, suspend any levy action until the CSED issue is resolved.

    3. Update AMS history with taxpayer issue and routing information.

  7. Types of referrals accepted include:

    • Form 843, Claim For Refund and Request for Abatement

    • Taxpayer correspondence

    • Form 4442, Inquiry Referral from taxpayer telephone contact

    • CSED issues identified in internal work

  8. Other statute issues, such as issues with the Assessment Statute Expiration Date (ASED), Refund Statute Expiration Date (RSED) or the Erroneous Refund Statute Expiration Date (ERSED) are not worked under these procedures. Any cases regarding statute issues other than CSED will be returned to the originator.

  9. The Collection Statute of Limitations is the time period established by law to allow the IRS to collect taxes. The CSED is the last date the IRS has to collect an outstanding balance (OB) due on an account, usually ten years from the assessment date, as provided by IRC 6502. Once this ten-year period has ended, the Government can no longer initiate collection action, unless the CSED is extended by case action, event or agreement.

    Exception:

    In some instances the Service can continue collection action by serving a levy or filing suit prior to the expiration of this ten-year period. See IRM 5.19.10.4.6.1, 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.


  10. Prior to November 5, 1990, the CSED was six years. Any CSED still open on November 5, 1990 was extended to ten years.

  11. There are many events that can have an effect on the CSED. Certain events suspend or extend the ten-year period for collection.

  12. See IRM 25.6.1.12, Collection Statute Expiration Date (CSED) and IRM 5.1.19, Collection Statute Expiration.

5.19.10.4.1  (02-01-2014)
Transaction Codes with a Ten-Year CSED

  1. In addition to Transaction Code (TC) 150, Tax Assessed, there are other TCs (some with specific reference numbers) that carry their own ten-year CSED.

  2. There are no limits to the number of CSEDs that can appear on a tax module.

  3. Full abatement of these TCs does not remove their associated CSED.

    Example:

    A TC 290 assessment of $1,100 dated 03-15-2010 is later completely abated with TC 291. The TC 290 CSED of 03152020 remains on the module and is not reversed.

  4. See IRM 5.1.19.2.1, Transaction Codes that Carry Their Own CSED.

5.19.10.4.2  (02-01-2014)
Transaction Codes and Case Actions that Suspend or Extend the CSED

  1. There are also 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.

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

    IRM Reference Type of Action
    IRM 5.1.19.3, Case Actions That Can Suspend And/Or Extend A CSED

    Note:

    Additional information may be found in IRM 25.6.1.12.2.1, Conditions Postponing Collection or Suspending the 10 Year Collection Period, on some of the actions listed to the right.

    • Bankruptcy

    • Civil Penalty with Appeal Rights

    • Collection Due Process (CDP) Appeal

    • Combat Zone or Contingency Operation

    • Enforcement of the Two-Tier Tax Scheme

    • Estate Tax Lien

    • Installment Agreements with Form 900 Waiver

    • Judgment/Litigation

    • Military Deferral

    • Offer in Compromise

    • Relief From Joint And Several Liability On Joint Returns/Innocent Spouse

    • Taxpayer Assistance Order

    • Taxpayer Living Outside the U.S.

    • Wrongful Levy (Seizure)

    • Wrongful Lien

    In addition, see IRM 25.6.1.12.2.1, Conditions Postponing Collection or Suspending the 10 Year Collection Period.
    • Pending, Rejected and Terminated Installment Agreements.

    • Summons Enforcement

    • Third Party summons

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

5.19.10.4.3  (02-01-2014)
CSED Fields on Integrated Data Retrieval System (IDRS)

  1. Each TC that has its own CSED (except TC 150) will show it's corresponding CSED to the right on CC IMFOLT/BMFOLT.

  2. The account will reflect the earliest CSED until that date has passed.

  3. CC TXMOD and CC SUMRY reflect the CSED that is next due to expire. CC IMFOLT indicates the FIRST CSED, NEXT CSED and LAST CSED.

  4. 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.

  5. For CC BMFOLT, the fields are EARLIEST CSED DATE, IMMINENT CSED DATE and LATEST CSED DATE.

  6. If the CSEDs are currently suspended by an unreversed TC 500, TC 520, TC 480, TC 470 cc 95 or TC 971 AC 065, all CSED fields will show blank. CSED fields will not show blank for TC 971 AC 043 or TC 971 AC 163.

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

  8. When payments are applied to an expired module, Master File reverses the posted TC 608 with TC 609 in order to credit the payment and then generates another TC 608.

    Example:

    TC 608 1,232.47–  
    TC 670 150.00– DPC 05
    TC 609 1,232.47  
    TC 608 1,082.47–  

5.19.10.4.4  (02-01-2014)
Determining the Correct CSED

  1. Control the module in "A" status with Category Code STAT, activity code "VERIFYCSED" . Update activity to "CSEDOK" when CSED is correct or "UPDATECSED" when the CSED must be corrected.

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

  3. If the case is not taxpayer initiated, suppress Letter 2645, Interim Letter, if the case is on AMS.

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

  5. Route accounts with CSED issues in ST 22, 26, 71 and 72 to the proper function using SERP Who/Where. For ST 26 modules, input TC 470 cc 90 to prevent any possible enforced collection. Leave a detailed explanation in AMS history including routing information. See IRM 5.19.10.4.7.1, MULTICSED Transcript and Listings, on how to address these statuses when it is a MULTICSED transcript or listing.

  6. If a case is received that has additional issues unrelated to the CSED issue, resolve the CSED issue and return the case to the originator or other appropriate area to address the other issues.

  7. 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.

  8. If there is a problem with the CSED and the module had a TC 480, pending OIC, dated after the correct CSED expired:

    1. Correct the CSED and complete other required case resolutions with the exception of resolving any payments posted after the CSED.

    2. Route the case (original or copy) or an IMFOLT print, if it is a transcript, to notify the OIC Centralized Service Center (COIC) of the corrected CSED. Attach a copy of the CSED computation to the case with an explanation. See SERP Who/Where Offer-In-Compromise (OIC) Centralized Service Center Locations. COIC will need to reconcile any payments.

  9. Identified CSED issues must be reviewed and verified. If the manual CSED computation is within ≡ ≡ calendar days of the posted CSED, accept the posted CSED as correct. See IRM 5.19.10.4.5, Resolving a Module with CSED Problems for other CSED correction restrictions.

  10. On MULTICSED transcripts, Headquarters may request that certain CSED issues be referred to them rather than corrected. When this occurs, input AMS history, "Referred to Headquarters" .

  11. Calculate the correct CSED date using the guidelines outlined in this IRM and other IRMs. If a module has an incorrect CSED, verify and correct the CSED on it and on any surrounding balance due modules, if applicable. For assistance with CSED calculations, see:

    • Exhibit 5.19.10-5, CSED Computation Reference Table

    • Exhibit 5.19.10-6, CSED Chart for OIC

    • Exhibit 5.19.10-7, CSED Chart for OIC (continued)

    • Exhibit 5.19.10-8, Manual Calculations of a CSED Using the Julian Date Calendar

    • Exhibit 5.19.10-9, Manual Calculations of a CSED Using the Julian Date Calendar

    • Exhibit 5.19.10-10, CSED Calculator Worksheet

  12. See Julian Date Calendar, Perpetual and Leap Year, in Exhibit 3.11.10–4 of IRM 3.11.10, Revenue Receipts, to obtain Julian dates for your CSED computation.

  13. Accept TC 520/521, TC 480/780 and other applicable TC dates as correct, except when:

    • These procedures direct you to verify dates

    • Taxpayer is disputing dates (If we are unable to verify the date internally, taxpayer must provide proof, such as a copy of the OIC rejection letter) or

    • In limited situations, when you determine verification is necessary.

  14. Be aware of the following when computing a CSED:

    If... Then...
    CSED suspension periods overlap Count the overlapping period only once when computing the CSED. Overlapping suspensions run concurrently.

    Example:


    TC 520 cc 81 04-12-2009
    TC 521 cc 81 09-12-2010, plus six months
    TC 480 10-21-2010
    TC 780 05-30-2011
    Suspension is from 04-12-2009 to 05-30-2011. The suspension periods overlap from 10-21-2010 to 03-12-2011. Count these days only once.

    The TC 150 date is prior to the Return Due Date (RDD) Use the RDD as the suspension start date.
    The suspension start date is before a posted assessment date Include only that part of the suspension period that coincides with the assessment.

    Example:


    TC 480 dated 03-13-2001 is prior to the TC 290 assessment dated 05-27-2001. The start date for the TC 480 is 05-27-2001.

    The suspension start date is after the assessed balance is full paid Do not include this suspension period in the CSED computation for the assessment that was full paid.
    The suspension TC has a specific effective date Start date for that TC is its effective date.

    Example:


    TC 971/972 AC 043/063/163 did not suspend the CSED until March 9, 2002. If TC 971 AC 043 is dated 02-01-2002, it’s start date is 03-09-2002.

  15. When correcting the CSED, update AMS history with the transaction codes and dates used in the CSED computation and total days of suspension included in the CSED. Also provide an explanation as to why the CSED was incorrect.

  16. When a CSED is corrected, input TC 290 .00 to file all source documents including any taxpayer correspondence, a copy of the CSED computation and any write-off. Also include any supporting documentation, such as prints of AMS history, that support your CSED computation.

  17. Refer to IRM 5.19.10.4.4.1, CSED Considerations, for additional guidance.

5.19.10.4.4.1  (02-01-2014)
CSED Considerations

  1. The following information discusses CSED conditions identified in CSED work. In some cases, these conditions have caused an incorrect CSED on the module.

  2. Because of the diversity of issues regarding CSEDs, these procedures cannot address every situation encountered when working a module with a CSED problem. The tax module must be analyzed and the appropriate IRM research done in order to determine the cause of the CSED error. In some cases, logic and judgment must be used to resolve the issue.

  3. If a new problem (not addressed in these procedures) is encountered on a module that is causing an incorrect CSED and you are using your judgment to make a determination, confer with another CSED Specialist and obtain their concurrence before making a correction. Document AMS with the concurrence.

  4. MFT 31: See IRM 5.19.10.4.4.2, MFT 31 Issues.

  5. Failure to File penalty, Estimated Tax penalty or Federal Tax Deposit penalty: On some modules where a TC 166, TC 176 or TC 186 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, TC 176 or TC 186 was not assessed by the computer in error. Some of these may be invalid due to a processing or systemic error. These penalties must be assessed within the established ASED. If you determine the penalty was assessed after the ASED:

    1. Abate the penalty with TC 161, TC 171 or TC 181.

    2. Update to the correct CSED with TC 550.

  6. TC 550: See IRM 5.19.10.4.4.3, TC 550 and Form 900 Waiver Issues.

  7. TC 971/972 AC 043/063/163: See IRM 5.19.10.4.4.4, TC 971/972 AC 043/063/163 Issues.

  8. TC 500 Combat Zone:

    • When computing a CSED on modules affected by Combat Zone (CZ) entry and exit dates, ONLY compute the number of days between the entry and exit dates and include the 180 day period(s).

    • If the taxpayer entered and/or exited a CZ during the filing season do not add days for the filing season to your CSED computation. The period that occurred during the filing season is only added to the Return Due Date (RDD).

    • Determine the correct TC 550 CSED Code to use by researching the applicable TC 500s on CC IMFOLE.

    • See IRM 5.19.10.6.4, Combat Zone Computation of Suspense Period.

  9. TC 520/521 cc 82, Civil Penalty with Appeal Rights: If there is a TC 470 cc 95 followed by TC 472 and no intervening TC 550, contact Advisory on SERP Who/Where to re-compute the CSED for the TC 550 to resume collection activity. Input TC 550 as advised.

5.19.10.4.4.2  (02-01-2014)
MFT 31 Issues

  1. 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 information, see IRM 21.6.8.3, What is MFT 31.

  2. When CSED code "S" or "P" indicates only one spouse filed a bankruptcy, insolvency, OIC or other, Master File cannot accurately compute the CSED on the MFT 30 tax module. Compare the transactions on the MFT 30 module to the transactions posted under each spouse on the MFT 31 module. Ensure each CSED is computed properly based on what suspension transactions are attributable to each spouse.

  3. For TC 480 and TC 520s mirrored to MFT 31, be aware of the following:

    If... Then...
    Joint MFT 30 module has a TC 971 AC 100 - 109 Do not count the suspension for a TC 480 or TC 520 with CSED code "S" when computing the CSED on the joint module.
    MFT 31 module contains a TC 370 with DLN NN251-999-95000-Y Do not count the suspension for a TC 480 or TC 520 with CSED code "S" .
    MFT 31 module contains a TC 370 with DLN NN251-999-00000-Y Do not count the suspension for a TC 480 or TC 520 with CSED code "P" or blank.
    MFT 31 module contains a TC 480 or TC 520 with no CSED code present Master File may not be computing the CSED correctly. Recompute the CSED and correct with TC 550, if needed.

  4. 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 ten-year CSED based on the TC 340 date instead of the date of the associated tax assessment.

    1. 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.

    2. If present, compute the module CSED excluding the TC 340 doc code 51 dates.

    3. Verify the results with the CSED dates on page one of CC IMFOLT.

    4. If the CSED dates on CC IMFOLT are incorrect, input TC 550 to correct them.

  5. An erroneous failure to file penalty (TC 166) may be systemically assessed on the MFT 31 module thus causing an invalid ten-year CSED:

    If... And... Then...
    The wrong return received date was input to MFT 31 from the MFT 30 module It is the cause of the erroneous TC 166 Abate the erroneous TC 166 with TC 161 and update to the correct CSED with TC 550.
    The MFT 30 module shows a TC 460, Extension of Time for Filing, that was not input to the MFT 31 Input the TC 460 to the MFT 31 module. The system will generate a TC 167. Update to the correct CSED with TC 550, if Master File fails to systemically correct it.

5.19.10.4.4.3  (02-01-2014)
TC 550 and Form 900 Waiver Issues

  1. When a TC 550 is present, accept the CSED date that was entered as valid. See the exception below for TC 550 definer code (dc) 10.

  2. For TC 550 definer code 01, do not add 90 days to your CSED computation. This is to be consistent with Master File programming.

  3. When a CSED is extended due to a Form 900 Waiver and TC 550 dc 01 has been input, per Counsel advice, the presence of the TC 550 is considered proof that the Form 900 Waiver was signed by the taxpayer. If the taxpayer submits a claim stating that he or she never agreed to the Waiver, the CSED cannot be corrected based on this claim.

    1. Verify the CSED and make corrections if the module has other issues affecting the CSED.

    2. See IRM 5.19.10.1(8), Compliance Services Collection Operation Transcript Overview, to determine if case meets TAS criteria.

  4. Due to RRA98, the CSEDs on some modules with TC 550 dc 01 were reset. A systemic program searched the Master File for modules where TC 550 dc 01 was present along with either a TC 971 AC 063 or a ST 60 within 120 days of the TC 550 transaction date. If the TC 971 AC 063 or ST 60 criteria was not met, then,

    • A new TC 550 was generated for a CSED date of December 31, 2002 or the normal ten-year collection statute date whichever is later.

    • These transactions will have a unique DLN DO277-999-99999-2.

    • The transaction date of the TC 550 will be the date of the systemic run.

  5. 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. In the instance where this has occurred, correct the CSED with TC 550.

  6. TC 550 dc 10 is used to correct an existing CSED and for CDP corrections. Before changing a CSED with TC 550 and a TC 550 dc 10 is already present, research the account and AMS history to ensure your CSED correction is appropriate.

  7. Multiple TC 550s input incorrectly: When an account has a TC 550 present and additional TC 550s are input, they must be input with DLN-CD 99 (see the 9th and 10th position of the TC 550 DLN). If input without DLN-CD 99, these will post but will not change the existing CSED from the previous TC 550.

    1. Compute the CSED on the module using the last TC 550 CSED present.

    2. Input TC 550 and DLN-CD 99 to update the CSED on the module, if needed.

5.19.10.4.4.4  (02-01-2014)
TC 971/972 AC 043/063/163 Issues

  1. Verify the validity of these transaction codes through research of AMS and IDRS.

    If... Then...
    Taxpayer does not meet the pending Installment Agreement (IA) criteria at the time the TC 971 AC 043 was input
    1. Do not count the suspension period in your computation. See IRM 5.19.1.5.4.7, Pending IA Criteria.

    2. Reverse with TC 972 AC 043 using the same date as the TC 971.

    3. If CSED does not update correctly, input TC 550.

    The TC 972 AC 043 date does not match the date of the TC 971 AC 043 and is dated earlier
    1. In some cases, Master File cannot correctly compute the CSED.

    2. Correct the CSED with input of TC 550.

    A TC 971 AC 043 is followed by a TC 971 AC 063 and both have the same date
    1. Master File can not correctly compute the CSED.

    2. Recompute the CSED and correct it with TC 550.

      Note:


      Master File programming was corrected so that this is no longer a problem on future input of these transaction codes. However, older modules may still be found with this problem.

    An account has an unreversed TC 971 AC 043 open for more than 14 cycles and there is no evidence of an IA request
    1. Disregard that date for your CSED computation.

    2. Reverse with a TC 972 AC 043 with the original TC 971 date.

    3. If CSED does not update correctly, input TC 550.

    An unreversed TC 971 AC 043 is followed within 14 cycles by a TC 530/480/520 or other that clearly indicates an end to the Pending IA suspense period
    1. Input a TC 972 AC 043 with a date equal to the TC 530/480/520 date.

    2. Monitor to ensure the module updates to the correct CSED.

    3. If CSED does not update correctly, input TC 550.

    A TC 971 AC 163 was caused by an IA that was defaulted in error, was manually defaulted to remove it from IA status or it generated when a TC 520, TC 480, TC 470 or other transaction posted Do not count the 30 day suspension associated with the TC 971 AC 163 when you compute the CSED.

5.19.10.4.5  (02-01-2014)
Resolving a Module with CSED Problems

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

  2. Input TC 550 per IRM 5.19.10.4.5.1, Correcting an Existing CSED, No TC 550 on Account or IRM 5.19.10.4.5.2, Correcting an Existing TC 550, if the existing CSED is incorrect.

    1. For any payments dated after all CSEDs have expired, follow IRM 5.19.10.4.6, Credits Applied After the CSED, for proper handling of the payments.

    2. Input a secondary TC 570 with any post-CSED payments that you are transferring to another module.

    3. Control the module in "A" status and monitor until the CSED updates on CC IMFOLT/BMFOLT.

    4. Input TC 571 with a Posting Delay Code "2" to release the transferred payments.

  3. Input of TC 550 will update all CSEDs on the module to the same date. Care must be taken when inputting a TC 550 to a module with multiple CSEDs. If correcting one CSED will cause the other CSEDs to be incorrect, then a TC 550 cannot be done. For modules with two CSEDs:

    If... And... Then...
    FIRST CSED is incorrect The correct CSED is expired
    1. Input TC 550 to correct the FIRST CSED.

    2. Input TC 534 to write off any balance remaining for the FIRST CSED.

    3. Input TC 550 to correct the LAST CSED.

    4. Use Posting Delay Codes to prevent any unpostable.

    5. Add an explanation to AMS history.

    The correct CSED is not expired
    1. The FIRST CSED cannot be corrected.

    2. Input history items on CC TXMOD,
      "UPDATECSED"
      "FIRSTCSED=" and
      "MMDDYYYY" .

    3. Input similar history to AMS.

    LAST CSED is incorrect FIRST CSED is correct or incorrect and expired
    1. Input TC 550 to correct the FIRST CSED and/or

    2. Input TC 534 to write off any balance remaining for the FIRST CSED.

    3. Input TC 550 to correct the LAST CSED.

    4. Use Posting Delay Codes to prevent any unpostable.

    5. Add an explanation to AMS history.

    FIRST CSED is correct or incorrect and not expired
    1. LAST CSED cannot be corrected.

    2. Input history items on CC TXMOD:
      "UPDATECSED"
      "FIRSTCSED="
      "MMDDYYYY"
      "LASTCSED="
      "MMDDYYYY" .

    3. Input similar history to AMS.

  4. Generally modules with three or more CSEDs cannot be corrected with TC 550 unless the LAST CSED is the one being corrected and all previous CSEDs are expired. Input history to CC TXMOD and AMS to indicate the correct CSEDs.

  5. Follow the table below to resolve other issues encountered when working CSED issues:

    If... And... Then...
    CSED fields on CC IMFOLT/BMFOLT are blank There is an open CSED suspense period such as an unreversed TC 520, TC 480 or TC 500 that is more than seven years old
    1. Research surrounding modules to locate the correct closing transaction and input to the open module.

    2. If unable to locate a closing transaction, contact the appropriate function to obtain the closing transaction information.

    3. Monitor until the correction posts.

    All CSED suspense periods are closed
    1. Force the CSED fields to populate the correct CSEDs with input of TC 550 and DLN Code 99.

    2. If transferring post-CSED payments, input a secondary TC 570 with the transfer.

    3. Monitor the account until corrections post.

    4. Reverse TC 570, if applicable.

    CSEDs are all expired The TC 608 did not generate or zero out the balance
    1. Input TC 534 with an amount equal to the module balance to force the module to ST 12.

    2. If transferring post-CSED payments, input a secondary TC 570 with the transfer.

    3. Monitor account until corrections post.

    4. Reverse TC 570, if applicable.

    Input of TC 550 (force a TC 608 to generate) or TC 534 did not write off the balance or the transactions unposted
    1. Determine if an error was made that caused the unpostable.

    2. If so, re-input the TC correctly and monitor until the correction posts.

    3. In certain instances, a TC 550 input incorrectly will post but will not update the CSED. See IRM 5.19.10.4.4.3, TC 550 and Form 900 Waiver Issues.

    4. If transaction codes were input correctly, balance must be manually zeroed out to force ST 12. See below.

    5. If transferring post-CSED payments, input a secondary TC 570 with the transfer.

    6. Monitor account until corrections post.

    7. Reverse TC 570, if applicable.

  6. In some cases a module may have become frozen from update. Input of TC 550 or TC 534 will not update the CSED or force the balance to zero. To bring the balance to zero, an adjustment using CC ADJ 54 must be input.

  7. To preserve as much of the original tax as possible, an abatement is done on the interest first, then FTP, then other penalties and finally the tax.

    Example:


    Write-Off Module Computation
    MOD-BAL> 2,931.96 Subtract all debits from module balance. Add all assessments and abatements for interest, then penalty, etc. Module balance: 2,931.96
    T/C AMOUNT Minus total interest: 46.67
    150 31,000.00 Minus total FTP: 116.29
    806 28,500.00- Minus FTF: 62.00
    166 62.00 Remaining tax: 2,707.00
    276 26.23 Input CC ADJ54:    
    196 16.17 TC 291 2,707.00-
    670 143.00- TC 161 62.00-
    290 450.00 TC 271 116.29-
    276 90.06 TC 341 46.67-
    196 30.50    
    670 100.00-    

  8. On CC ADJ54 for IMF use Blocking Series 05, Source Code 0, Reason code (RC) 99 plus other applicable RCs and Hold Code 3.

  9. For BMF use Blocking Series 15 and Hold Code 3.

  10. If a TC 341 or TC 271 is not input, you must input a TC 340 and/or TC 270 for a zero amount to restrict additional assessments by IDRS.

  11. Enter the date of claim or the IRS received date in the RFSCDT field and code “S” in the OVERRIDE-CD field.

  12. Complete the "Monthly Recalculated CSED Report" and send to HQ by the 15th of each month.

5.19.10.4.5.1  (02-01-2014)
Correcting an Existing CSED, No TC 550 on Account

  1. 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" .

  2. Before input of TC 550, refer to IRM 5.19.10.4.5, Resolving a Module with CSED Problems for additional information.

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

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

    1. Transaction Code – always use TC 550.

    2. Extension date - recomputed CSED date.

    3. Transaction date – leave blank unless all CSED dates have expired. If all are expired, transaction date must be prior to the expired CSED date.

    4. DLN Code – leave blank.

    5. CSED Code – use appropriate code (P, B, or S).

    6. TC 550 Definer Code – use definer code 10, unless directed otherwise. Refer to IRM 5.1.19.2.3, TC 550 Waiver Extension Definer Codes.

    7. Remarks – must detail why CSED is being corrected.

5.19.10.4.5.2  (02-01-2014)
Correcting an Existing TC 550

  1. 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.

  2. Before input of TC 550, refer to IRM 5.19.10.4.5, Resolving a Module with CSED Problems for additional information.

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

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

    1. Transaction Code – always use TC 550.

    2. Extension date - recomputed CSED date.

    3. Transaction date – leave blank unless all CSED dates have expired. If all are expired, transaction date must be prior to the expired CSED date.

    4. DLN Code – always use 99.

    5. CSED Code – use appropriate code (P, B, or S).

    6. TC 550 Definer Code – use definer code 10 unless directed otherwise. Refer to IRM 5.19.10.4.2, Transaction Codes and Case Actions that Suspend or Extend the CSED.

    7. Remarks – must detail why CSED is being corrected.

5.19.10.4.6  (02-01-2014)
Credits Applied After the CSED

  1. Resolve credits that posted after the correct CSED at the same time you are inputting TC 550 or a write-off.

  2. If there is Federal Levy Payment Program (FPLP) or SITLP levy activity on the module and correction of the CSED will result in a full write-off to ST 12:

    1. Input TC 470 cc 90 to temporarily suspend the levy activity while you are resolving the CSED.

    2. FPLP and SITLP activity can be identified by the presence of one or more of the following TC 971 AC 060, 061, 062, 169, 600 (SITLP), 662 or 762.

    3. Input TC 472 if needed, when all actions are completed.

  3. Transfer credits (TC 706) that are offset from other modules back to their original module. Input TC 570 followed by TC 572 with PDC 2 to prevent offset back to the expired CSED module. Allow the system to refund the credit, offset it to another liability or move it to Excess Collections.

  4. Transfer barred payments (voluntary and involuntary) to the Excess Collection File (XSF). See IRM 5.19.10.5.1, General Procedures For All Transcripts and IRM 5.19.10.5.2.2, Processing Statute-Barred Credits, for instructions and certain exceptions.

  5. If other balance due modules are present, transfer payments that are not barred to the balance with the earliest CSED.

  6. If there are no other balances due, voluntary payments applied to a module after the CSED, are treated as an overpayment of tax:

    1. Make two attempts to contact the taxpayer by phone and advise them of their CSED rights and the time period under IRC 6511 within which to claim a refund.

    2. If unable to reach by phone send Letter 672C, Payment(s) Located and/or Applied.

    3. Follow IRM 5.19.10.5.2, PMTEXPCSED Transcripts.

  7. For levy payments that posted after the CSED, research RTR to ensure that it is a true levy payment.

    • WI and SBSE CSCO follow IRM 5.19.2.5.8.3, Levy Payment Procedures

    • WI and SBSE ACS Support follow IRM 5.19.4.4.10, Levy Release: General Information

  8. If all balances are full paid, an existing Continuous Wage Levy (CWL) must be released using Form 668-D, Release of Levy/Release of Property from Levy. Follow IRM 5.19.10.10.2.2, Full Paid Continuous Wage Levy Accounts. However, if the account was in ST 6X and your corrections caused it to update to full paid, the CWL will be released by employees working the IAAL.

  9. Generally, a levy that is "fixed and determined" and served prior to the expiration of the collection period is enforceable and should not be released. In addition, a levy served after reducing a tax liability to a judgment (TC 550 dc 04) is valid. Allow these types of levy to remain on the expired CSED module, if the balance, including accruals, has not been full paid.

    1. TC 971 AC 687 is input to identify the type of levy as either "fixed and determined" , continuous or other. See IRM 5.19.10.4.6.1, TC 971 AC 687, and Miscellaneous Codes for CSED.

    2. You can determine when a FPLP and SITLP levy was served by the posting of TC 971 AC 600, 662 or 762. If these levies were served AFTER the correct CSED expired, follow the IRM procedures below for handling levy payments.

    3. If you are unable to determine when a levy was served or whether it is "fixed and determined" , leave the post-CSED levy payments on the expired module.

  10. Transfer excess levy payments:

    1. To the oldest balance due module where a levy has been served.

    2. Then transfer excess levy payments to any non-levy modules.

    3. If full paying a levy module or levy payments are being applied to a non-levy module, fax a copy of the correspondence or Form 4442, Inquiry Referral, to the ACS Support Liaison per SERP Who/Where, to issue a levy on the non-levy module or partially/fully release a levy on a full paid levy module.

    4. If there are no other balances to transfer a levy to, leave the levy payment on the expired module.

    5. If the taxpayer requests a refund of levy payments, fax a copy of the correspondence or Form 4442, Inquiry Referral, to the ACS Support Liaison per SERP Who/Where. Send the appropriate letter to inform the taxpayer that the issue has been referred.

5.19.10.4.6.1  (02-01-2014)
TC 971 AC 687, and Miscellaneous Codes for CSED

  1. 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.

  2. The following chart will provide an explanation for each miscellaneous code. SB/SE should identify the "fixed and determined" from this point forward. Any module that does not have a code will be verified through the RO or CCP.

    Note:

    "Fixed and determined" levy sources are instruments, such as pensions, royalties etc., that are payable for a fixed amount on a date in the future that can be determined in advance. For instance, Social Security benefits begin at age 62, and Civil Service pensions at age 55.

    Miscellaneous Codes Definitions
    001 Levy issued prior to the CSED identified as "fixed and determined" e.g. pension, royalties etc. excludes levy on working taxpayer's salaries.
    002 Identifies the module as a continuous wage levy on wages/salaries secured before CSED.

    Exception:

    To identify the legal basis for releasing levies see:

    • IRM 5.11.2.2.1, Legal Basis for Releasing Levies

    • IRM 5.19.4.4.10, Levy Release: General Information

    • IRM 5.19.10.10.6.1, IAAL Review of Continuous Wage Levy - CSCO Processing

    003 Suit was filed before CSED expired.
    004 Field Manager completed a review of the module prior to the CSED. Allow this module CSED to expire in its current status.
    005 Unable to locate taxpayer.
    006 Module is not a levy module, payments coded incorrectly.
    007 Taxpayer's CSED rights communicated via phone/letter. Module has refundable credits and no outstanding liabilities. Levy release sent.
    008 Taxpayer's CSED rights communicated via letter only. Module has refundable credits and the account has outstanding liabilities. Levy release sent.
    009 Identifies an ≡ ≡ ≡ ≡ ≡ module (1). Only post ≡ ≡ payments to this module. Do not release the levy. Do not offset. Any excess credits will be refunded. Cases will be centralized in Anchorage.
    010 Levy release previously sent, second contact with the taxpayer initiated via correspondence/phone.
    011 Based on Restructuring and Reform Act of 1998 (RRA98), CSED computed incorrectly, due to failure on account for suspension under IRC 6331(k)(1) and (3).
    012 CSED review completed, move module to the Retention File.
    013 Communicated CSED rights via telephone. If account has outstanding liabilities, follow up with a letter.
    014 Credit(s) Refund Statute Expired, no outstanding liabilities.

5.19.10.4.7  (02-01-2014)
Writing Off Expired Balances with TC 534

  1. Currently, Kansas City CSCO works lists of accounts where the earliest CSED has 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. The IMF transcript will be worked by Kansas City and the BMF transcript by Philadelphia CSCO.

  2. Write-offs that exceed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ must be approved by a manager.

    1. Forward the SSN and tax period by e-mail using Secure Messaging.

    2. List the proposed TC 534 write-off amount and the amount of interest and FTP penalty included in the TC 534 amount.

    3. The manager will input AMS history, "TC 534 approved" or "TC 534 denied." If denied, the manager must provide an explanation in AMS for the denial.

  3. When a tax module has multiple CSEDs and the earliest has 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.

5.19.10.4.7.1  (02-01-2014)
MULTICSED Transcript and Listings

  1. Accounts are selected for the MULTICSED transcript or listing by the following criteria:

    • Tax module balance, with accruals, is over ≡ ≡ ≡ ≡ for IMF or ≡ ≡ ≡ ≡ ≡ for BMF

    • MFTs 30, 31 and 55 for IMF and MFTs 01, 06, 10 and 11 for BMF

    • More than one CSED present and the earliest open CSED expired in the current cycle

    • A transcript will not issue if the CSEDs are suspended by a TC 520, TC 480 or other.

    • A transcript will not issue if the next CSED expires within 90 days of the CSED that has just expired.

      Example:

      The MFT 30 200212 tax module has three CSEDs, dated 05-21-2013, 07-27-2013 and 03-31-2015. No transcript will issue for the 05-21-2013 date because the next CSED, 07-27-2013, will expire in 67 days.

    • If the CSED that expires is for a TC 150 that was settled at posting (ST 12) a transcript will not issue.

    • A transcript will not issue for the last CSED on the module. TC 608 will generate to zero out the remaining balance.

  2. If module is in ST 12, ST 71 or ST 72, close with no action. Work all others including ST 22, ST 26 and ST 53.

  3. If CSED fields are blank, research the module to determine if that is correct. If so, close the case with no action. If the CSED field should not be blank, follow IRM 5.19.10.4.5, Resolving a Module with CSED Problems.

  4. Transcripts are controlled in "A" status with Category Code MCSD.

  5. When working transcripts, do a manual calculation using a Julian calendar or an Excel calculator, to verify the accuracy of the CSEDs present. This is to monitor our systems more closely, to ensure our CSEDs are accurate, and to identify trends and issues.

    1. Make a correction, if needed, per instructions in IRM 5.19.10.4, Collection Statute Expiration Date (CSED) Verification and Correction.

    2. Report the correction on the "Monthly Recalculated CSED Report" .

    3. CSED verification is not required on modules where there are no transactions that extend or suspend the CSED.

      Exception:

      Check for invalid TC 166/176/186 that should be abated. Follow IRM 5.19.10.4.4.1, CSED Considerations.

  6. Headquarters may request that certain incorrect CSEDs be referred to them rather than corrected. When this occurs, input AMS history, "Referred to Headquarters" . If the CSED that issued the transcript is truly expired, (the correct CSED has passed) proceed with write-off.

  7. If the previous CSED expired less than 90 days earlier, determine if a separate write-off is required for the currently expired CSED and the previously expired CSED. Input a separate TC 534 for each expired CSED using a PDC to separate each input.

  8. If the LAST CSED on the module is less than 90 days from the currently expired CSED which generated the transcript or the LAST CSED on the module is due to expire in less than 30 days from the current date, close the case with no action. The TC 608 will write off the remaining balances.

  9. Follow procedures in the table below to write off the expired balance.

    If... And... Then...
    The assessment associated with the expired CSED full paid prior to the next assessment (ST 12 followed by ST 21)   Input TC 534 .00 via CC REQ54. Use:
    • Blocking Series 19

    • Source Code 0

    • RC 099 (N/A for BMF)

    • Hold Code 3

    • Enter the CSED date in the CSED> field on CC ADJ54 to which the TC 534 applies.

    The assessment associated with the expired CSED was not full paid prior to the next assessment The module does not have restricted interest or FTP
    1. Compute the amount to be written off with TC 534.

    2. If any posted FTP or interest contains amounts for both expired and unexpired assessments, the amounts attributable to the expired assessment must be included in the TC 534 amount.

    3. Use CC INTSTD or the Automated Computation Tool (ACT/DMI) to correctly determine the portion of FTP and interest belonging to the expired CSED assessment in order to write off the correct amount.

    4. Add the total debit amounts for the assessment associated with the expired CSED and subtract any credits that posted prior to that expired CSED.

    5. Associate any Collection fees (TC 360) and Bad Check Penalties (TC 280) that posted prior to the next assessment with the amount being written off.

    6. Input TC 534 with the write-off amount.

    7. Do not create a credit balance on the module.

  10. Enter AMS history with the TC 534 amount and the Transaction Codes with their amounts that are included in the TC 534. Use Sort/Show on DMI, save it as Excel and cut and paste the information to AMS. Indicate total interest and total FTP amounts that were included.

5.19.10.5  (02-01-2014)
Balance Due Transcripts

  1. The IAT tools as listed in IRM 5.19.10.1, Compliance Services Collection Operation Transcript Overview must be used by Campus Compliance employees for procedures outlined in this IRM. When an action must be taken and an IAT tool is available, Campus Compliance employees with access to the tool are required to use it to complete the action.

    Note:

    If an IAT tool is not functioning properly or it is determined not to be appropriate due to a specific situation, the case should be worked without the tool, using IDRS. For more information on each tool as well as a job aid for each tool see the IAT Website.

  2. Balance Due Transcripts are generated in the campuses to signal an alert to certain situations that have been present for some time on an account and cause the account to remain unresolved. This category of transcripts includes:

    • Payment Expired Collection Statute Expiration Date (PMTEXPCSED)

    • Accounts Maintenance Claim Pending (AM06W)

    • Accounts Maintenance (AM07)

    • Collection Statute Expiration Date (CSED or SPC3)

    • Claim Pending Collection Statute (AM23W)

    • Notice of Potential Manual Penalty/Interest Adjustment (CP 86 and CP 186)

    • Non-Master File Liability (NMFL)

    • Verify Payment (VERFPYMT)

    • Notice of No Merge TDA Module and NOMRG TDA Transcript (CP 206)

    For a complete listing of all the transcripts, refer to IRM 3.13.62, Media Transport and Control.

  3. ASED is usually three years from the later of the unextended due date or the filing date of the return. The AM-X transcript will generate if the account is open in Collection regardless of other conditions on the module. Refer to IRM 25.6.1.5, Basic Guide for Processing Cases with Statute of Limitations Issues.

  4. STAT, statute expiration is imminent (within six months). There are four types of STAT cases.

    • AM23W: the only check here is for CSED. See IRM 5.19.10.5.6, Claim Pending Collection Statute Transcript (AM23W)

    • Dummy Cases: which include other Accounts Management (AM) and TDI issues. It also includes civil penalty modules

    • RSED: This transcript is sent regardless of other postings or conditions

    • Normal STAT: one of the freeze conditions is met (other than 23W) . There are two types of issuances, First and Follow - up. The ASED is within six months of expiring. Once a normal STAT is issued, an AM case will not generate.

5.19.10.5.1  (02-01-2014)
General Procedures For All Transcripts

  1. The following transcripts are considered a "Priority Transcript" :

    • CSED (SPC3)

    • PMTEXPCSED

    • CP 44

    • NMFL

    • AM07W

    • Any transcript with a credit balance/TC 608 condition

  2. AMRH, Statute or Accounting may control a transcript to CSCO to resolve a levy payment. As of July 26, 2011, it is no longer necessary to refer these to CSCO. If a transcript of this type appears on the Aged Case Listing:

    1. Reassign the transcript back to the originator if the levy payment is less than 60 days old.

    2. Take no action and close the control for levy payments over 60 days old.

  3. WI CSCO does not work BMF transcripts (except for EFT Listings). Recontrol back to the originator any other BMF transcripts that are received.

  4. 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.

  5. Research IDRS for any available credit(s). Document AMS with a history item XXXXXRSHRD (Xs identifies the type of transcript).

    If... Then...
    Credits are located
    1. Research RTR to determine if taxpayer designated the payment for a specific tax period.

    2. If so, transfer the credit to the specified tax period.

    3. Otherwise, if credits are not barred, transfer the credit to another balance due that has the earliest CSED.

    Credits are statute barred
    1. Follow below to transfer the credit to the XSF.

    2. See exception under IRM 5.19.10.5.2.2, Processing Statute-Barred Credits.

    If there is an expired CSED module, and the TC 608 is significant The payment:
    • Can be applied to the expired module if research of the RTR system indicates that the taxpayer designated that payment for that module.

    • Can be applied if payment was proceeds from levy on a "fixed and determinable" levy source served prior to the CSED. "Fixed and determined" levies served prior to the expiration of the CSED, attach to future payments that the taxpayer will receive from a pension plan, social security benefits, royalties, etc. Proceeds from these sources can still be collected and applied to a balance due even after the CSED has expired. See IRM 5.19.10.4.6.1, TC 971 AC 687, and Miscellaneous Codes for CSED.

    • If neither of the above apply, the payment cannot be applied to the expired CSED module regardless of the payment date or posting cycle date.

    • Use the proper bypass code to avoid generating an unpostable.

    If an expired CSED module has a credit that created a credit balance Treat as an overpayment of tax and follow IRM 5.19.10.5.2. PMTEXPCSED Transcripts.
    The transfer(s) full pay the module Document AMS and close the control.
    Any amount of balance remains Follow specific transcript procedures.

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

    1. If the credit is being transferred from an expired CSED module, there must be a TC 608 posted on the module or the transfer will unpost. If TC 608 is not present, it will be necessary to transfer the credit(s) to a satisfied module with a TC 570 or create a dummy module.

    2. If the payment is less than a year old, use Form 2424, Account Adjustment Voucher, to transfer to URF. Follow IRM 3.17.10.3.2, Receiving Unidentified Remittance Cases.

    3. For payments more than a year old, use Form 8758, Excess Collections File Addition. In Box 4 enter "IDEN" . Follow IRM 3.17.220.2.1.1, Preparation of Form 8758. Input TC 971 AC 296 to the module with the credit.

    4. In the Explanation box on both forms be very specific regarding the reason for transfer.

      Example:

      "No reply to TC 672C to claim refund of overpayment after CSED"

    5. Attach IDRS prints to the Form 2424, Account Adjustment Voucher, or Form 8758, Excess Collections File Addition.

    6. Ensure there is a tracking number on both Form 2424 and Form 8758.

    7. Input an AMS history item to indicate the actions taken (non-refundable credits, good refund, refund statute in jeopardy, etc. Credit to URF or XSF via From 2424 or Form 8758).

  7. To request a transfer from URF or XSF, follow the procedures below.

    1. Prepare Form 8765, IDRS Control File Credit Application, to transfer a payment from either the URF or XSF. See IRM 3.17.10.3.10, Applying Credit to a Taxpayer's Account, for transfers from URF and IRM 3.17.220.2.11, Applying Amounts From the XSF—General, for transfers from XSF.

    2. Forward all Forms 8765 requiring statute clearance to the Statute function for review prior to forwarding to Excess Collection. For additional information, refer to IRM 3.17.220.2.11(4), Applying Amounts From the XSF—General.

    3. Attach documentation to the request that:
      • Identifies the credit on the URF or XSF file
      • Indicates its proper application
      • Provides justification for the transfer such as a copy of taxpayer correspondence

  8. To request a manual refund, use Form 5792, Request for IDRS Generated Refund (IGR). The Manual Refund Tool is an IAT tool that is used to process and monitor manual refunds. As of July 17, 2013 use of this tool is mandatory.

    1. When initiating a manual refund, follow procedures found in IRM 21.4.4, Manual Refunds. Approval must be obtained by a designated Certifying Officer.

    2. Inform taxpayers that they are still subject to offset by The Bureau of Fiscal Services (BFS) through the TOP for past due child support or Federal agency debts owed. Refer to IRM 21.4.6, Refund Offset.

  9. 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.

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

  11. 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.

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

5.19.10.5.2  (02-01-2014)
PMTEXPCSED Transcripts

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

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

    • Contact the taxpayer and advise them of their options under IRC 6511, Limitations on Credit or Refund. The taxpayer must advise the IRS of whether they want the payment refunded or applied to another tax module.

    • Transfer statute barred payments to Excess Collection

    • Move a misapplied payment to the correct tax module

    • Determine that a payment can remain on the expired CSED module

    • Release continuous wage levies

  3. See IRM 5.19.10.5.1, General Procedures for All Transcripts, for more information regarding the URF, XSF and manual refunds.

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

5.19.10.5.2.1  (02-01-2014)
General Instructions for PMTEXPCSED Cases

  1. Control the expired CSED module using "A" (active) status.

    1. The examiner monitoring the account will be responsible for each credit that posts to the module until the control is closed. Notate AMS with amount/cycle of each additional payment and close the new control(s). Analyze all credits that have a posted date after the expired CSED.

    2. All related transcripts will be routed to the examiner who is monitoring the account. That examiner will take the count for each transcript resolved.

  2. A payment received after the CSED is treated as an overpayment of tax. Per IRC 6511, the taxpayer has two years from the date the payment was made or three years from the date the return was filed, whichever is later, in order to file a claim for refund. If the credit cannot be resolved using the procedures below, the taxpayer must be contacted to solicit a claim for refund.

  3. If the payment is an IA payment, or a payment that was misapplied based on research of RTR, the payment can be transferred without taxpayer approval. If the payment does not meet this criteria and there are other balances due, the payment cannot be transferred without taxpayer approval. See the table below for more information on application of IA payments.

  4. Research AMS history and the tax account before making a decision regarding the credit.

  5. Follow the table below to resolve the credit issue:

    If... Then...
    The credit must be resolved by Insolvency, TFRP, OIC, CI (TC 91X), Innocent Spouse (TC 971 AC 065) or an RO (ST 26)
    1. Forward the case to the appropriate function, requesting resolution of the payments. Provide a print of CC TXMOD with the affected payments highlighted.

    2. Input detailed history on AMS and close your case.

    Credit is statute barred
    1. See IRM 5.19.10.5.2.2, Processing Statute-Barred Credits, to determine if credit can be applied elsewhere.

    2. If payment cannot be applied elsewhere transfer the credit to XSF. For instructions see IRM 5.19.10.5.1, General Procedures for All Transcripts.

    The time period under IRC 6511 might expire before the taxpayer has time to file a claim and Letter 672C, Payment(s) Located and/or Applied has not been sent
    1. Refund the payment without a claim.

    2. See IRM 25.6.1.10.2.7, Claims for Credit or Refund – General Time Period for Submitting a Claim to determine the total amount that can be refunded under IRC 6511.

    A TC 840 or TC 846 previously generated on an expired CSED module, and there are no additional liabilities
    1. Refund subsequent payments.

    2. Send Letter 672C, Payment(s) Located and/or Applied.

    3. Inform the taxpayer that the CSED has expired and he/she is under no obligation to make future payments for that tax period.

    A reply was received previously allowing the Service to apply the credit(s) to an expired CSED module, and subsequent payments post to the same expired module. The analysis shows the same conditions exist.
    1. Do not send another Letter 672C.

    2. Continue applying the credits to the CSED module until full paid.

    3. Input TC 672/670 using CC ADD24. Input DPC 14 on the new TC 670.

    The payment was misapplied per research of RTR Transfer the payment to the correct liability per the taxpayer's request.
    The post-CSED payment is an IA payment and taxpayer has other balances in ST 6X. (Also check for ST 6X on cross reference accounts.)
    1. Transfer the credit to the next tax period having the earliest CSED.

    2. Reinstate the IA if misapplication of the payment caused the IA to default. Do not charge a reinstatement User Fee.

    3. Send Letter 672C, informing the taxpayer of the expired CSED for the specific tax year.

    4. Advise him/her to use the current account information for all future payments.

    Credit is a levy payment, TC 670 DPC 05
    1. Research RTR to determine if it is a true levy.

    2. If it is a true levy, a CWL is in effect, and account is full paid, follow IRM 5.19.10.10.2.2, Full Paid Continuous Wage Levy Accounts. Contact the taxpayer to obtain a claim for refund of the levy payment.

    3. If not a CWL, take no action and close your case. A LEVYPMT transcript will issue to ACS Support to resolve the credit and release the levy if necessary.

    4. If not a true levy, use normal procedures to contact the taxpayer by phone or by sending Letter 672C and soliciting a claim for refund.

    Credit is a pre CSED levy identified as "fixed and determined" e.g. pension, royalties etc. (not a levy on wages). To identify this type of levy, research the module for the presence of TC 971 AC 687, with Miscellaneous Code 001. If this type of credit posts to an expired CSED module, update AMS and close your case.
    Credit is other than TC 670 See IRM 5.19.10.5.2.3, Processing Transaction Codes and Payments Other Than TC 670.

  6. If the credit cannot be resolved and a telephone number is available (on CC ENMOD or through research), make two attempts to contact the taxpayer by telephone.

    1. If contact is made, verify disclosure.

    2. Advise taxpayer of expired statute, and the time period under IRC 6511 within which to claim a refund.

    3. Taxpayer may apply the credit to the expired module, another balance or request a refund of the credit.

    4. Provide the taxpayer with your name and contact number.

    5. Resolve the credit based on the taxpayer's request.

    6. Input history on AMS that reflects the conversation with the taxpayer and all actions taken.

  7. If taxpayer cannot be reached by phone:

    1. Send Letter 672C informing taxpayer of expired CSED and credit availability.

    2. Advise the taxpayer of the time frame for claiming the refund under IRC 6511.

    3. Taxpayer may apply the credit to the expired module, another balance or request a refund of the credit.

    4. Include your name and contact information in the letter.

    5. Assign the case on IDRS in "M" status and suspend the case for 45 days on AMS. Allow the taxpayer 30 days to respond.

  8. See IRM 5.19.10.5.2.4, Processing Responses/No Response to Letter 672C.

  9. Input the appropriate history item on AMS for the audit trail. Input history item(s) that reflect each action taken to advise the taxpayer of rights concerning the overpayment caused by taxpayer's payment of the tax after the expiration of IRC 6502, Collection After Assessment.

5.19.10.5.2.2  (10-15-2012)
Processing Statute-Barred Credits

  1. Other than the exception discussed below in (2), a statute-barred credit may not be applied to offset the debit modules on an account.

  2. If the statute-barred credit relates to the same taxpayer, the same tax type and the same tax period as the debit module, the statute-barred credit may be used to offset the debit module.

    Example:

    The payment was applied to a Form 1040 MFT 30 2000 tax year. It can be transferred to a Form 1040 MFT 31 2000 tax year or a Form 1040 NMF 2000 tax year for the same taxpayer, even if it is barred.


    Example:

    Payment was misapplied.

  3. If the barred credit cannot be applied, transfer it to the Excess Collection File.

  4. To the extent that modules can be identified where a statute barred credit was applied in error, those credits are considered void and should therefore be reversed.

5.19.10.5.2.3  (02-01-2014)
Processing Transaction Codes and Payments Other Than TC 670

  1. These transaction codes may generate a freeze condition, an assessment, an offset or other types of payments. This table provides procedures for processing transaction codes and payments other than TC 670.

    Figure 5.19.10-1

    If... Then...
    TC 694
    • When the Service incurs legal fees, security and sale costs, lien fees and other expenses while enforcing collection of delinquent balance dues, TC 360 is input to assess the fees against the taxpayer.

    • A payment made by the taxpayer to satisfy these fees may be posted to the module with TC 694. Refer to IRM 5.1.2.5.1(3), Transaction Codes. This is a good payment with any date. Do not refund.

    • Normally, a TC 360 will already be in the module. However, both TC 694 and TC 360 can be input simultaneously.

    • If there is any excess credit after these costs are paid, it will be posted as a TC 670 with a DPC code indicating the type of sale or administrative cost, such as cost of the levy or suit. Refer to Document 6209, IRS Processing Codes and Information, Chapter 11 for a list of DPCs. This TC 670 is refundable.

    TC 706 and no outstanding liabilities The computer will occasionally offset to an expired CSED module if it is the oldest module and it was written off with an amount. Starting with processing year 2005, a transcript should generate to properly resolve the payment issue.
    1. If there are no other unexpired CSED balance due modules, consider this credit as refundable.

    2. Transfer the credit back to the module it originated from to generate a refund.

    TC 706 with other outstanding liabilities
    1. Transfer credit to the oldest unexpired CSED module with a balance.

    2. Notify the taxpayer of the transfer.

    Other TCs
    1. Research Document 6209, IRS Processing Codes and Information, Transaction Codes for a description of the TC.

    2. Check RTR, AMS and IDRS history to determine the reason for the payment. Contact the other areas, if needed. Explain the CSED issue (IRC 6502), the payment date, and ask for advice on the disposition of the payment.

    TC 640 Advance Payment (this is an expired CSED module)
    1. Check RTR, AMS and IDRS history to determine the source of the payment and where it should be applied.

    2. If it can be determined where it should be applied, transfer the payment.

    3. If no determination can be made, treat as an overpayment of tax and contact the taxpayer per IRM 5.19.10.5.2.1, General Instructions for PMTEXPCSED Cases.

5.19.10.5.2.4  (02-01-2014)
Processing Responses/No Response to Letter 672C

  1. The following table provides procedures for processing refund responses and no responses.

    Figure 5.19.10-2

    If... And... Then...
    The taxpayer can apply the credit to the expired CSED module, another liability or have it refunded. Taxpayer requested that the payment be applied to the module with the expired CSED Input TC 672/670 using CC ADD24. Input DPC 14 on the new TC 670.
    Taxpayer requested that the payment be applied to another liability Transfer the credit using CC ADD24 and appropriate DPC code.
    Taxpayer requested a refund
    1. Prepare Form 5792, Request for IDRS Generated Refund (IGR). Compute credit interest with CC COMPAD if the credit is more than 45 days old.

    2. Follow IRM 21.4.4, Manual Refunds.

    3. Input TC 290 for ".00" to associate the Letter 672C and the taxpayer's response in files.

    Taxpayer does not respond
    1. Prepare the necessary forms to move the credits to URF or XSF.

    2. If transferring to XSF input TC 971 AC 296.

    3. For additional information on TC 608/609, see IRM 5.19.10.5.1, General Procedures for All Transcripts.

    The taxpayer can apply the credit to the expired CSED module, another liability or have it refunded. Letter is undeliverable
    1. Research for a new address. Use CC IMFOLE or CC BMFOLE to see the last return filed.

    2. If a return was filed, check CC RTVUE or CC IRPTRL for a different address.

    3. If a new address is located, reissue the letter.

    4. If the taxpayer replies, prior to issuing a manual refund make sure the address has updated on Master File.

    5. If the new address has not been updated on Master File, follow normal procedures for updating.

    6. If unable to obtain a new address, input TC 971 AC 687, Miscellaneous Code 005. Prepare the necessary forms to move the credits to URF or XSF. Notate the form "Good Refund" so that the credit can be applied when a new address is verified.

    7. Input the appropriate history items.

    A late reply is received from the taxpayer
    1. Prepare Form 8765, IDRS Control File Credit Application to move the credit(s) back from the URF or XSF. See IRM 5.19.10.5.1, General Procedures for All Transcripts for information on the URF and XSF.

    2. Follow procedures in the table above based on the taxpayer request.

5.19.10.5.3  (02-01-2014)
Accounts Maintenance Claim Pending (AM06W) Transcripts

  1. The 06W transcript will generate after twenty-two (22) cycles:

    • When there is an unresolved TC 470 with no closing code, a cc 90, cc 93 or cc 95 on IDRS

    • A W− freeze appears on 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.

  2. If the ASED has expired, an AM-X transcript will generate regardless of any posting in the module.

  3. If the Assessment Statute Expiration Date (ASED) is imminent (within 180 days), a Statute (STAT) transcript will generate.

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

5.19.10.5.3.1  (02-01-2014)
Processing 06W Transcripts

  1. See Document 6209, Section 11.8, TC 470 Closing Code Chart for information on how TC 470 is released. The table below is a partial list from Document 6209 indicating how TC 470 no closing code, cc 90, cc 93 and cc 95 are released.

    TC 470 Type... Release Criteria...
    TC 470 no closing code
    • Systemically reversed after 9 cycles if there is no open control, otherwise 15 cycles (Except if Status is ST 22, 24, 26 or 60).

    • Input of TC 472.

    • Input of TC 29X or TC 30X (see exception in Document 6209).

    • Module becomes a zero or credit balance.

    TC 470 cc 90
    • Systemically reversed after 22 cycles (Except if Status is ST 22, 24, 26 or 60).

    • Input of TC 472 no cc.

    • Input of TC 29X or TC 30X (see exception in Document 6209).

    • Module becomes a zero or credit balance.

    TC 470 cc 90 for MFT 31 when AC is 102 or 103
    • Input of TC 472 no cc.

    • Input of TC 29X or TC 30X (see exception in Document 6209).

    • Module becomes a zero or credit balance.

    TC 470 cc 93
    • Systemically reversed after 22 cycles.

    • Input of TC 472 no cc.

    • Input of TC 29X or TC 30X (see exception in Document 6209).

    • Module becomes a zero or credit balance.

    TC 470 cc 95
    • Input of TC 472 CC 95.

    • Module becomes a zero or credit balance.

  2. A W− freeze may also be created when a duplicate return is created with the posting of TC 976, module is a debit balance and Status is 22, 24 or 26. A W− hold will be released with TC 29X or when the module becomes a zero or credit balance.

  3. The following table provides procedures for resolving AM06W conditions. Research IDRS for the latest information, then continue below.

    Figure 5.19.10-3

    If... Then...
    If a prior action has resolved the TC 470 condition or the status is 12.
    1. Document AMS with the following history item, "TC 470 prior action taken" .

    2. Close the case.

    Action to release TC 470 unposted and there is an open unpostable control base
    1. Re-enter TC 470 to allow more time.

    2. Update the other open control activity field with "TC470/EXPD" .

    If an action that will release the TC 470 is pending on the account but has not yet occurred. See table above that lists the IDRS actions that will release the TC 470. Update AMS and close the case.
    If a pending transfer or adjustment will satisfy the balance due (including accruals) per CC INTST. See table above that lists the IDRS actions that will release the TC 470. Update AMS and close the case.
    If a pending transfer or adjustment will not satisfy the module and the account was in TDA status or notice status prior to the input of the TC 470.
    1. Input TC 472.

    2. Update AMS and close the case.

    The module contains a TC 470 cc 95 (civil penalty appeal).
    1. Do not reverse TC 470.

    2. Document AMS and close the case.

    3. If a follow up transcript issues in 15 cycles, fax a Form 4442, Inquiry Referral to CCP at (215) 516-1555. Notate "Hold on Collection activity has expired. Please re-input or reverse TC 470" .

    TC 470 input date is less than 5 months (22 cycles) from the current date. Take no action. Update AMS and close transcript.
    TC 470 input date is 5 months (22 cycles) or more from the current date and the module has an open control base.

    Example:


    If the module is controlled to Erroneous Refund (ERRF), Automated Substitute for Return (ASFR) and Exam (may have RECN in the category).

    1. Input a TC 470.

    2. Update the other open control activity field with "TC470/EXPD" .

    TC 470 input date is 5 months (22 cycles) or more from the current date and it is determined that the TC 470 is not necessary. Input TC 472.
    If the TC 470 cc 90 is present on a MFT 44 (Form 990–PF, Return of Private Foundation or Section 4947 (a) (1) Non exempt Charitable Trust Treated as a Private Foundation) module.
    1. Do Not reverse the TC 470.

    2. Input a TC 470 cc 90.

    If module is MFT 31 and has been mirrored or split from an MFT 30 module, a TC 400/TC 402 should be present. As part of the process TC 470 may have been input (typically on OIC, Criminal Restitution and Insolvency cases). After a successful mirroring a TC 472 should have been input to reverse the TC 470.
    1. If the mirroring/split process is complete, indicated by a posted TC 400/TC 402, reverse the TC 470 if it is still present.

    2. If the process is still pending take no action. (If another TC 470 is input and it is pending during the mirroring, it will cause the mirroring process to fail.).

    TC 976 caused the W− freeze Update AMS and close the case.

  4. If TC 470 is not resolved and the module/account contains a freeze code, review the module to see if it is still necessary. Follow procedures in the table that provides procedures for modules containing a combination of a TC 470 and a freeze code.

    Figure 5.19.10-4

    If... Then...
    −Y Freeze Code Update AMS and close the case.
    −L Freeze Code
    1. Reverse the TC 470.

    2. Update the other open control activity field with "TC470/EXPD" .

    Unreversed TC 520 (−V, −W or −VW) Update AMS and close the case.
    −Z or Z− Freeze Code Update AMS and close the case.

5.19.10.5.4  (02-01-2014)
Accounts Maintenance Transcripts (AM07)

  1. 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.

  2. The following will explain the three statute transcripts that will generate for the AM07 if the module is open, regardless of any posting:

    • If the Assessment Statute Expiration Date (ASED) has expired, an AM–X-07 transcript will generate.

    • If the ASED will expire per the statute table or within six months, a statute transcript generates.

    • The follow-up transcript will generate in 16 cycles.

  3. Follow IRM 5.19.10.3.10, Generation of CP 44 and CP 188, to resolve.

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

5.19.10.5.5  (02-01-2014)
CSED (SPC3) Transcript

  1. A CSED Transcript (including SPC3 Transcripts) generates when:

    • The earliest CSED is expired, the latest is not expired

    • There is no unreversed TC 534 or a TC 400 hold present

    • Each debit module has a total module balance of ≡ ≡ ≡ ≡ ≡ ≡ or more

    • An A− freeze appears on the credit and debit module

    • The A− freeze is released after eight cycles unless a TC 534 is input

    • A CSED Transcript generates when the balance due is for accruals only

  2. 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.

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

5.19.10.5.5.1  (02-01-2014)
Processing CSED (SPC3) Transcript

  1. Take no action on transcripts with the following criteria:

    If... Then...
    A transcript issues on a TFRP module Take no action. A separate transcript issues to the TFRP unit in the appropriate SB/SE CSCO site.
    Transcript module is in ST 12, ST 71 or ST 72 Take no action
    Transcript has an open control with category code "MCSD" assigned to an individual employee (i.e., IDRS assignment number is not generic. Generic numbers are 0967500003 or 0966022222.)

  2. Review CC IMFOLT/BMFOLT to identify the expired assessment that generated the transcript.

  3. Follow the procedures in IRM 5.19.10.4.7.1, table, MULTICSED Transcripts and Listings.

  4. Enter AMS history with the TC 534 amount and the Transaction Codes with their amounts that are included in the TC 534. After the amount of the write-off has been computed using DMI, access Sort/Show on DMI, save it as Excel and cut and paste the information to AMS. Indicate total interest and total FTP amounts that were included.

  5. Due to the overpayment that must be released with TC 534, the 90 day rules under MULTICSED Transcript procedures do not apply to these transcripts.

  6. Beginning in cycle 04 of 2013, CC ADJ54 has a new required field (CSED) to input the expired CSED that is associated with the TC 534. If the CSED date does not match an existing date on the tax module, TC 534 will unpost with UPC 193. This date will appear next to the posted TC 534 on the module.

  7. The credit causing the A− freeze may not be applied to the CSED balance that has just expired, regardless of the date or posting cycle of the credit. It can only be applied to the balance that has not yet expired.

  8. When a module has more than one assessment, it is required to have a TC 534 input on the module with a zero or a significant amount representing the assessment with the expired CSED. Beginning cycle 201304, it is no longer required to reverse the existing TC 534. Multiple TC 534s must now be input, for each expired CSED. Prior to cycle 04, there should be only one TC 534 on the module to cover all previously expired CSEDs.

  9. If an incorrect amount is input with TC 534, reverse it with a TC 535. Re-enter TC 534 with the correct amount.
    Use CC REQ54/ADJ54 to reverse a previous write-off. Input the following fields:

    1. Blocking Series – 19

    2. INTCMP-DT - Enter the current date

    3. Transaction Code – TC 535

    4. Amount – Amount of previous TC 534 (do not use a minus sign)

    5. Source Code – 0

    6. Reason Code – 99

    7. Hold Code – 3

  10. Use CC REQ54/ADJ54 to write-off the expired amount. Input the following fields:

    1. Blocking Series – 19

    2. CSED - CSED date associated with the TC 534

    3. Transaction Code – TC 534

    4. Amount – Balance to be written off with a minus sign or a zero amount

    5. Source Code – 0

    6. Reason Code – 099

    7. Hold Code – 3


    Note:

    For BMF accounts, leave the Source Code and RC fields blank.

5.19.10.5.6  (02-01-2014)
Claim Pending Collection Statute Transcript (AM 23W)

  1. 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 CSED.

  2. Reverse any TC 470 cc 90 or 93 with TC 472.

  3. TC 470 cc 95 is input when a taxpayer files a Civil Penalty Appeal. It suspends the CSED until Appeals makes a decision regarding the taxpayer's personal liability for unpaid trust fund taxes. After Appeal's decision, a TC 550 is input to correct the CSED and TC 470 cc 95 is reversed. For TC 470 cc 95 see IRM 5.19.10.5.3, Accounts Maintenance Claim Pending (AM06W) Transcripts.

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

5.19.10.5.7  (10-15-2012)
Notices of Potential Manual Penalty/Interest Adjustment (CP 86 and CP 186)

  1. The CP 86/186 Notice generates when:

    • A payment transaction posts to a module and the credit amount is greater than the assessed module balance due amount, and

    • There is an interest or penalty computation restriction present

    • An account is transferred in from the Retention Register with Doc Code 51 or 52

    • An additional CP 86/186 Notice generates when subsequent credits post and the same situation as above is present. The AM function will work all CP 186s other than those meeting CSCO criteria.

    Note:

    The Retention Register contains all entity and tax modules removed from the Master File. Basic criteria for removal include: zero module balance, no freeze or unsettled condition(s) present, no activity to the module for 27 months.

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

    Reminder:

    For accounts containing a TC 582 Federal Tax Lien, see IRM 5.19.10.5.1(11), General Procedures For All Transcripts.

  3. Conditions which create restrictions are:

    • Interest has previously been manually assessed (TC 340) or abated (TC 341)

    • FTP penalty has previously been manually assessed (TC 270) or abated (TC 271)

    • Any transferred in transaction (Doc. Code 51 or 52 posted)

    • Assessed fraud penalty (TC 320)

    • Fiduciary return Form 1041, U.S. Income Tax Return for Estates and Trusts, assessed as an installment account (ST 14)

    • Form 706, U.S. Estate Tax Return, assessed as an installment account (ST 14)

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

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

5.19.10.5.7.1  (10-15-2012)
Processing CP 86 and CP 186

  1. Analyze the module and re-compute the interest and/or penalty using CC COMPA or COMPAF per IRM 20.2, Interest, and IRM 20.1, Penalty Handbook, and follow appropriate procedures. Determine what TC restricted the module.

  2. If an unreversed TC 480 or TC 780 is present on the module, document AMS and close the control. If a previous transcript has been routed without resolution, contact Headquarters, following campus directions. If the TC 780 was reversed with a TC 788 and both statuses are ST 12, refer to (5) below. If the offer was withdrawn (TC 482), rejected (TC 481) or erroneously posted (TC 483) refer to (4) below.

  3. If an unreversed TC 520 is on the account, refile any returns associated with notices and close the control. If the TC 520 was reversed with a TC 521, refer to (4) below.

  4. If additional interest or penalty is due, input an adjustment transaction to assess the additional amount using CC REQ54. Caution should be taken when there is a 120% interest charge on the account. The interest TC will have a Julian date of 999.

    1. If the account was previously in ST 60, refer to IRM 5.19.10.10.2.1, Full Paid Restricted Interest and Penalty Accounts — CSCO Processing, for processing. Provide necessary feedback to the IAAL Operation.

    2. If the account has a TC 270 or TC 271 on the module, it is a restricted account. Verify the percentage of the FTP penalty. If the FTP penalty maximum percentage has been assessed, input a TC 971 AC 262. Refer to IRM 21.3.1.4.49, CP 86 Restricted Interest/Penalty Conditions. To remove the prior restriction and allow automatic generation of the FTP Penalty by Master File, refer to IRM 20.1.2.1.5, Manual Penalty Assessments.

  5. If no additional interest or penalty is due, input TC 290 for a zero amount with blocking series 15 and Hold Code (HC) 3 using CC REQ54. Use blocking series 00 if you have the original return. Use the CP 186 as your source document.

    Note:

    If no additional interest or penalty is due and the credit has been resolved and the account is in ST 12, do not input a TC 290 for zero.

  6. Unless you are using blocking series 00 and have the original return, do not send any cases to file. Use NSD with comments and destroy the transcript.

5.19.10.5.8  (02-01-2014)
Non-Master File Liability (NMFL) Transcripts

  1. The Non-Master File Liability (NMFL) transcripts are generated when a second credit posts to a module after issuance of a CP 44 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.

  2. If the transcript cannot be resolved within 14 days from the computer notice date, control the transcript using Category Code CP 44 and enter "NMFL" in the history section of the control base.

  3. If the module contains a TC 608 process following IRM 5.19.10.5.2, PMTEXPCSED Transcripts. Do not process following normal NMFL Transcript procedures.

  4. Follow IRM 5.19.10.3.10, Generation of CP 44 and CP 188, to work all others.


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