Employees in the Accounts Management (AM) organization respond to taxpayer inquiries and phone calls. They also process claims, internal adjustment, and transaction requests. Sometimes these adjustments or transactions are unable to post and need to be corrected. Telephone inquiries and account corrections should be resolved while the customer is on the telephone, if possible. If it is necessary to prepare a referral, sites must ensure that referrals are limited to requirements outlined in IRM 21.3.5, Taxpayer Inquiry Referrals Form 4442.

The authorities for this IRM include:

The Wage and Investment Commissioner oversees all policy related to this IRM, which is published on an annual basis.

The Accounts Management Director oversees the instructions to the employees contained in the IRM content.

Accounts Management Policy and Procedures IMF (PPI) Tax Analyst(s) oversee the content in this IRM and function as points of contact for all Accounts Management sites.

Managers and leads ensure compliance with the guidance and procedures in this IRM for taxpayer inquiries, preventing and resolving unpostables, and Form 4442 referrals are reviewed and resolved timely.

Employees respond to taxpayer inquiries, prevent and resolve unpostables and prepare Form 4442 referral requests following procedures in this IRM.

Program Effectiveness: Program Effectiveness is measured and controlled through:

For a comprehensive listing of any IRS acronyms, please refer to the Acronym Database.

Some of the acronyms used in this IRM are:

Refer to IRM 1.4.2.1.8, Related Resources, for information on related resources that impact internal controls.

The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees must be familiar with and act in accordance with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For more information about the TBOR, see Taxpayer Bill of Rights, on IRS.gov.

Identify unpostables on IDRS by the pending transaction identification codes, by the Nullified Distribution Listing (GUF 55-47), or by Form 8749, Unpostable Action and Routing Slip, Form 3465, Adjustment Request, or Form 4251, Return Charge-Out, routed from the Unpostables function.

When an unpostable condition appears on an account on IDRS (e.g., CC TXMOD, CC ENMOD), the format includes the letter U followed by a three-digit numeric code (Uxxx) called an unpostable code (UPC). The three digits indicate the cause of the unpostable. A UPC may also include a reason code (RC). The RC is a one-digit number between 0 and 9 which follows the UPC. Reason codes provide a reason why the account transaction was unable to post. Refer to the IDRS Command Code Job Aid, on Servicewide Electronic Research Program (SERP) under the IRM Supplements page, for examples of input and response screens (e.g., CC UPTIN, CC UPDIS, CC UPCAS, CC UPRES).

UPCs and their definitions are listed in;

Use command codes (CC) UPTIN, UPDIS (UPRES), and UPCAS with definer Z to research/resolve unpostables. If the account is not on your local database or at your local campus, access these command codes at the campus the unpostable is located. See IRM 21.5.5.3.2.1, Unpostable Command Codes.

Refer to the following IRMs for complete procedures for resolving unpostables:

Refer to IRM 21.4.6.5.23, TOP Unpostable Conditions, for information on unpostables related to tax offset going to Bureau of the Fiscal Service (BFS).

Open unpostables are usually resolved within eight cycles, however the time frame for resolution can be extended depending on the required research or complexity of resolving the unpostable.

Research to determine the status of the open unpostable. Use CC UPTIN to identify the unpostable cycle date of the open unpostable. See IDRS Command Code UPTIN Job Aid, for more information. The unpostable cycle identifies the original unposting of the transaction and does not change as the unpostable is reassigned to another area for resolution (the cycle date information of the unpostable is shown next to the literal CYC on line 1 of UPTIN). Do not use the status date of an open unpostable to determine the appropriate time frame to respond to the taxpayer. The status date reflects the date the status was last updated and can change as the case is reassigned to another area.

Use the following chart when advising the taxpayer of the appropriate time frame for a response on an open unpostable:

See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, to determine if the case should be referred to TAS. See IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, for more information.

See IRM 21.5.2.4.8.2, Suppressing Balance Due Notices, if there is a balance due on the account.

Command Code (CC) UPTIN research is required to determine how the unpostable was closed. If the status is ‘C’, the status date is the date the unpostable was closed. Use the status date to determine the appropriate time frame to respond to taxpayer inquiries. (The status date is shown next to the status code of the unpostable on line 2 of UPTIN.)

If the unpostable is closed, advise the taxpayer to allow 6 weeks from the closing date of the unpostable for processing. If the unpostable is due to transaction code (TC) 150, advise the taxpayer to allow 9 weeks from the closing date for processing.

If the account has a lien against it and correction of the unpostable will full pay the account, a manual lien release is needed. Follow procedures in IRM 5.12.3.3, Lien Release Conditions, about manual lien releases. Submit a completed Form 13794, Request for Release or Partial Release of Notice of Federal Tax Lien, to the Centralized Lien Unit, lien release contact. For more information see, Centralized Lien Processing, on SERP Who/Where.

See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, to determine if the case should be referred to TAS. See IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, for more information.

See IRM 21.5.2.4.8.2, Suppressing Balance Due Notices, if there is a balance due on the account.

Most unpostable conditions are prevented by adhering to IRM procedures, using the mandated IAT tools and thoroughly reviewing IDRS before making an adjustment. However, certain unpostables cannot be prevented due to the presence of specific identity theft indicators on an account to protect the taxpayer until the rightful owner of the social security number (SSN) can be verified. Consider the following to prevent an unpostable:

Implementing strategies which prevent unpostables will help you complete adjustments accurately and efficiently. For instance, make sure dates and money amounts on credit transfers match those of the credits being moved before you make the adjustment. See IRM 21.2.2-2, Accounts Management Mandated IAT Tools.

See IRM 21.5.8.4.7, Avoiding Credit Transfer Unpostables, for more information about credit transfer unpostables.

When using a credit transfer to move a refund the TC 848 will unpost with unpostable code (UPC) 138-4 if:

When using a credit transfer to move a refund, the TC 849 will unpost with UPC 188-0 if the year name line for the "to" module has not yet been established. Monitor for posting of the TC 849. If the transaction unposts with UPC 188-0, establish the module per IRM 3.13.5.117, Establishing a New Account (TC 000), and enter a history item on the GUF System for the Unpostable function using CC UPDIS and CC UPCAS with definer Z or the IAT UP Histories Tool.

Contactthe employee with an open control base on IDRS to coordinate actions and prevent duplicate adjustments. See IRM 21.5.2.3, Adjustment Guidelines - Research, for more information.

Verify that the adjustment is not a duplicate of a previous adjustment.

If updating the filing status to joint and adding secondary self-employment income, allow the entity to post first.

Consider previous tax adjustments before inputting a subsequent adjustment, especially those within $10 of a previous adjustment. If it is still necessary, use priority code (PC) 8 on the adjustment.

Look for any manual adjustments of penalties and interest (TC 160, TC 161, TC 170, TC 171, TC 340, and TC 341) that need correction or recognition when inputting an adjustment.

Use the correct Master File Tax (MFT), tax period, and name control.

When reversing a transaction with a specific date (e.g., TC 570, TC 971), the transaction date must match the date of the transaction being reversed.

Input the correct transaction codes (TC), item and/or credit reference numbers. Consider posted amounts, limitations for each TC, and item/credit reference number being input. See IRM 3.12.179.86, UPC 189 Reversal TC Amount Discrepancy, for more information.

Do not reduce the following reference numbers below zero:

Always review the net result of any adjustments or transactions (e.g., TC 290/291, TC 971) on IDRS for accuracy (e.g., TXMOD, ENMOD).

When an adjustment is input incorrectly, the person that input the adjustment can use CC TERUP the same day to delete it. Refer to IRM 2.4.13, Command Code TERUP.

Review the unpostable condition and the specific unpostable reason code (URC) to determine the cause of the unpostable.

When an unpostable is closed with a URC of 1, 2, or 8, a nullification code is entered by the Unpostables function to identify the receiving area of the closed unpostables. Refer to IRM 3.12.32.14, Nullify Area Codes, for more information.

If the case is still open, check the transaction information to determine what must be corrected. Follow the table below to determine the appropriate action:

If the account has a lien against it and correction of the unpostable will full pay the account, a manual lien release is needed. Follow procedures in IRM 5.12.3.3, Lien Release Conditions, about manual lien releases. Submit a completed Form 13794, Request for Release or Partial Release of Notice of Federal Tax Lien, to the appropriate contact at Centralized Lien Processing.