Employees in the Accounts Management (AM) organization respond to taxpayer inquiries and phone calls as well as process claims and other internal requests.

Per Policy Statement 5-2: We actively assist taxpayers who try to comply with the law, and work to continually improve the quality of our systems and service to meet the needs of our customers. All taxpayers whether delinquent or fully compliant are entitled to prompt and professional service whenever they deal with IRS employees. The public is our customer, not just delinquent taxpayers. Our customers expect us to promote voluntary compliance by ensuring that all promptly pay their fair share.

The Taxpayer Services Chief has overall responsibility for the policy related to this IRM which is published on a yearly basis.

Additional information is found in IRM 1.1.13.6.3, Accounts Management, and IRM 21.1.1, Accounts Management and Compliance Services Overview.

Program Reports: The program reports provided in this IRM are for identification purposes for the Accounts Management Contact Representatives (CRs) and Tax Examiners (TEs). For reports concerning quality, inventory, and aged listing, refer to IRM 1.4.16, Accounts Management Guide for Managers. Aged listings can also be viewed by accessing Control Data Analysis, and Project PCD. They are also on the Control-D/Web Access server, which has a login program control.

Program Effectiveness: Program Effectiveness is determined by Accounts Management’s employees successfully using IRM guidance to perform necessary account actions and duties.

Program Controls: Goals, measures, and operating guidelines are listed in the yearly Program Letter. Quality data and guidelines for measurement are referenced in IRM 21.10.1, Embedded Quality (EQ) Program for Accounts Management, Campus Compliance, Field Assistance, Tax Exempt/Government Entities, Return Integrity and Compliance Services (RICS), and Electronic Products and Services Support.

The information below is a list of commonly used acronyms and terms this IRM:

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

Refer to IRM 1.4.16.1.6, 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 are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see Taxpayer Bill of Rights.

A Source Document (SD) verifies that a credit transfer or adjustment is correct. Source documents may include returns, vouchers, receipts, notices, or other case file documentation. Acceptable source documents include the Correspondence Imaging Inventory (CII) image of the original payment and, when applicable, Form 3413 or Form 3552.
If you have access to AMS, Source Documents are not required for IMF credit transfers taken over the phone. Update AMS history to document that oral statement authority was accepted. Refer to IRM 21.1.3.20.2, Oral Statement Documentation Requirements, and paragraph (4) below for guidance on updating AMS history notes and the remarks section on the transfer screen (DRT24/48 and FRM 34).

When needed, a SD must include all the following elements:

Use the following tables to determine whether a Source Document (SD) is required for an IMF or BMF credit transfer.

IMF Credit Transfers

To document the credit transfer, enter the appropriate information in the Remarks section of the credit transfer tool. Follow IRM 21.5.2.4.6, Remarks Field, and IRM 21.5.2.4.7, Remarks on Type of Adjustment, when completing the Remarks section. Document the oral statement or other supporting information used to complete the transfer. For additional guidance, see IRM 21.1.3.20.2, Oral Statement Documentation Requirements.

Prior to making a credit transfer adjustment, at least one of the tax modules involved must be active on IDRS. To initiate credit transfers, two command codes (CCs) are used in the following sequence:

The tax module accessed with CC TXMOD/SUMRY is the primary account for the credit transfer. Determine if the tax module should be:

Input CC ADDnn or ADCnn and overlay the taxpayer identification number (TIN), MFT, tax period, and name control with the information relating to the other portion of the credit transfer (referred to as the secondary account). The secondary account may or may not reflect the same TIN, MFT, and tax period.

When inputting credit transfers, you may need to use a non-IDRS Indicator listed in table below in the “NON-IDRS-IND>” field to indicate the secondary account/module is not on IDRS:

Use designated payment code (DPC) "00" when transferring a misapplied payment (TC 640, 670, 680, 694, 690, and 700) without a DPC.

Refer to IRM 5.19.1.6.4.6.3, User Fee Payment Transfer/User Fee Abatements, for User Fee payment transfer procedures.

The credit transfer programming does not allow an IRS received date that is more than 1 year old. When inputting a credit transfer and the IRS received date is more than 1 year old use the current date as the IRS received date. This ONLY pertains to the IRS received date NOT the payment date.

For general information regarding credit transfer formats, refer to IRM 2.4.17, Command Codes ADD24/34/48, ADC24/34/48, FRM34 and DRT24/48.

Use CC ADD24/ADC24, when:

Use CC ADD34/ADC34, when:

Use CC ADD48/ADC48, when:

When inputting an adjustment creating a credit and a credit elect at the same time, you must use either a hold code "1" or hold code "2" on your adjustment to prevent an erroneous refund. Refer to IRM 21.4.5, Erroneous Refunds, for additional information. When adjusting a Mixed Entity or ID Theft account, refer to IRM 25.23.4.4, Taxpayer Inquiries Involving Identity Theft. When the credit elect posts to the account (TC 830), the -K freeze is released, and an adjustment notice is sent to the taxpayer. No additional correspondence is needed. Refer to IRM 21.5.2.4.15, Rules on Hold Codes (HC), for more information on using hold codes.

When transferring an Electronic Federal Tax Payment System (EFTPS) payment, input the EFTPS indicator of "1" on CC ADD/ADC24. Refer to IRM 21.5.8.4.7, Avoiding Credit Transfer Unpostables, for additional information. To assist in identifying EFTPS payments, refer to IRM 3.17.277.5.3, EFT Number, for EFTPS number configuration.

CP 62, Notice of Credit Transfer - We Credited Your Account, generates if the “CORRESP–DT” field on CC FRM34 is overlaid. This notice is similar to the Letter 672C, Payment(s) Located and/or Applied. When CC ADD34/ADC34 is used and the credit transfer fully resolves the taxpayer’s inquiry and no other issues were involved, the CP 62 is an adequate response.

Overlay the CORRESP–DT field with the taxpayer contact date (correspondence date/inquiry date) if known. If contact date is unknown, enter the IRS received date. On multiple transfers, a date must be entered in this field for each payment transferred.

A CP 62 is not generated in the same cycle as an adjustment notice. The adjustment notice cannot be suppressed and generates when:

When the CP 62 is not generated, written notification to the taxpayer is necessary, such as Letter 672C, Payment(s) Located and/or Applied.

When inputting IMF credit transfers using DRT24/DRT48, which places the module into debit balance over ≡ ≡ ≡ ≡, CP 60, We Removed a Payment Erroneously Applied to your Account - Balance Due, automatically generates to the taxpayer. In general, the taxpayer receives a CP 60 within four weeks from the date the credit transfer was input. Multiple credit transfers are combined, and the taxpayer receives only one notice.

CP 225, Missing Payment Has Been Applied, generates when CC ADD34/ADC34 is used and the “CORRESP–DT” field on CC FRM34 is overlaid. There are two versions of this notice, complete and partial.

On multiple credit transfers, enter a date in the “CORRESP-DT” field for each payment transferred.

The complete CP 225 notice is similar to the Letter 672C, Payment(s) Located and/or Applied, and fully explains the payment transfer and balance due on the module.

The partial CP 225 notice generates if another adjustment notice, such as the CP 210, Examination (Audit) or Data Processing Tax Adjustment - Balance Due, Overpayment, or Even Balance, or CP 220, Examination (Audit) or Data Processing Tax Adjustment - Balance Due, Overpayment, or Even Balance, is generated in the same cycle The partial CP 225 details the payment transaction and status of account (even balance or overpaid).

Transferring timely credits into a module containing a posted TC 166 (Failure to File penalty), TC 176 (Estimated Tax penalty), TC 186 (Federal Tax Deposit penalty), or TC 276 (Failure to Pay penalty) causes these penalties to recompute and generate an adjustment notice CP 210/CP 220. Other penalties may also recompute but will not generate an adjustment notice.

An incomplete CP 225 and a CP 210/220 generates when:

When adjusting and transferring credit(s) into the same module using CC FRM34 with no CORRESP-DT, input a posting delay code of one cycle on the adjustment (ADJ54). In three weeks, the taxpayer will receive a notice of adjustment with the correct module balance.

When transferring a misapplied payment, you must check the filing requirements on CC ENMOD to determine if the misapplied payment established the filing requirement. If it did, remove the filing requirement using CC BNCHG or the IAT Tool for CC FRM49. If you are unable to determine if the filing requirement should be removed through IDRS research, request the information from the taxpayer either verbally or in writing.

When inputting credit transfers using DRT24/DRT48 that will place the module into debit balance over ≡ ≡ ≡ ≡ ≡, CP 260, An Erroneous Payment Previously Applied to Your Account Has Been Reversed - Balance Due, automatically generates to the taxpayer.

Use a bypass indicator (BPI) "1" or Transaction Code (TC) 570 to override the unpostable condition 305/198. Unpostable condition 305/198 is created when a credit:

The transaction codes affected by the unpostable condition are:

The bypass indicator (BPI) field is a mandatory field. Follow the chart below to determine the correct BPI.

Follow the chart below for the debit portion of the transfer:

Do not freeze a credit without a valid reason. The employee inputting the TC 570 must ensure the freeze is released when applicable. If monitoring is needed, prepare an in-house e-4442 and include instructions for the remaining credit so that the -R freeze can be released.

To reverse a TC 570, input TC 571 on CC REQ77 with a posting delay code of one cycle. Refer to IRM 2.4.19, Command Codes REQ77, FRM77 and FRM7A.

Use a posting delay code (PDC) on an adjustment or credit transfer when multiple transactions are required to adjust an account, and some must post in later cycles.

You can use the PDC with all credit transfer formats.

Input CC ADD34/ADC34 with PDC on the debit side only. The credit transaction does not attempt to post until at least one cycle after the debit posts.

On BMF accounts, use PDCs to bypass Unpostable 316 when:

The PDC extends the IDRS "PN" status. It does not post with the transaction or appear with the IDRS pending transaction.

To avoid unpostables, use the correct reversal transaction codes and correct dates as applicable. When using CC DRT24, include the EFTPS-ELEC-DPST-IND "1" when the original payment was received through EFTPS. For non-electronic payments, do not include the EFTPS-ELEC-DPST-IND indicator.

Input a bypass indicator (BPI) "1" or TC 570 when transferring payments to an account in zero balance, credit balance, or will result in a credit balance. Follow procedures in IRM 21.5.8.4.5, TC 570 and Bypass Indicator.

Use CC ADD34/ADC34 to transfer EFTPS payments, unless required to use CC ADD24/ADC24. Do all preliminary research to locate EFTPS payments using CC EFTPS before performing a credit transfer. For additional information for this command code refer to IRM 2.3.70, Command Code EFTPS.

Research IDRS for a generated transfer such as TC 666 and TC 667 before reversing the credit elect TC 712 (including re-sequence transactions, Command Code IMFOLQ).

Ensure the account is active. Refer to IRM 21.5.2.4.13, Reinstating Retention Register Accounts, for reinstating retention register accounts.

When a credit transfer is input incorrectly, the same person who input the credit transfer can use the Command Code TERUP the same day to delete the credit transfer. Only the Debit TIN should be deleted; it is not necessary to delete the Credit side since the Debit is the primary and controlling transaction. Refer to IRM 2.4.13, Command Code TERUP.

Do not move payments until they post.