IRS employees respond to taxpayer inquiries, process claims, and process internal adjustment requests for accounts with freeze conditions.

The authorities for this IRM include the following:

The Taxpayer Services Chief oversees the policy for this IRM, which is published annually.

The Accounts Management Director oversees the procedures and instructions in this IRM.

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

Managers and leads ensure compliance with the guidance and procedures in this IRM for resolving freeze code-affected accounts.

Employees respond to adjustment requests, refund inquiries, and account status inquiries by following the procedures in this IRM.

Program Effectiveness: Program effectiveness is measured through:

Program goals are measured through the following:

See the table below for a list of acronyms commonly used in this IRM. For a comprehensive list of IRS acronyms, see the Acronym Database.

Related resources include the following:

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 more information about the TBOR, see Taxpayer Bill of Rights and Publication 1, Your Rights as a Taxpayer.

The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate, that helps taxpayers and protects taxpayer rights. TAS offers free help to taxpayers when a tax problem is causing a financial difficulty, when they’ve tried and been unable to resolve their issue with the IRS, or when they believe an IRS system, process, or procedure just isn't working as it should. TAS strives to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.

Refer taxpayers to TAS when the contact meets TAS criteria and you cannot resolve the taxpayer's issue the same day. See IRM 13.1.7.3, TAS Case Criteria, for more information. Same day cases include cases you can completely resolve within 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Do not refer same-day cases to TAS unless the taxpayer asks for a referral to TAS and the case meets TAS criteria. Refer to IRM 13.1.7.5, Same Day Resolution by Operations.

For more information on routing cases to TAS refer to IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines.

If TAS criteria is not met, refer the taxpayer to the function responsible for resolving the taxpayer’s inquiry.

The A- freeze is set when all of the following conditions apply:

A CSED transcript is generated and worked by the Collection function. The account remains frozen until Transaction Code (TC) 534 posts. Refer to IRM 5.19.10.5.5, CSED (SPC3) Transcript, for more information on the A- freeze.

The -A freeze is set when one of the following posts to an account:

Refer to IRM 21.5.6.4.35.3.2, -R Freeze Paper Procedures for Accounts with Return Integrity Verification Operations (RIVO) Involvement, for instructions when working Form 1040-X, Amended U.S. Individual Income Tax Return, cases with both a -A and RIVO -R freeze.

Refer to IRM 21.5.3.4.18, Electronically Filed Amended Returns, for instructions on processing Form 1040-X, Amended U.S. Individual Income Tax Return, with Return Integrity & Compliance Services (RICS) markers for potential Identity theft and income/withholding issues.

Consider unresolved Taxpayer Protection Program (TPP) markers when reviewing accounts. Refer to IRM 25.25.6.1.7, Taxpayer Protection Program Overview, for additional information.

For Individual Master File (IMF) accounts, refer to IRM 21.6.7.4, Adjusting Individual Tax Accounts Procedures. For Business Master File (BMF) accounts, refer to IRM 21.7.9, BMF Duplicate Filing Conditions. Follow these procedures when working a -A freeze case.

Take the following actions during a telephone inquiry or field office inquiry:

The B- freeze is set when one of the following conditions applies:

To resolve a B- freeze take the following actions:

The -B freeze is set when the refund Statute of Limitations expires. Tax modules with a -B freeze generally contain Transaction Code (TC) 820, which transfers the overpayment to Excess Collections when the overpayment is on a delinquent original return. See IRM 21.5.8.4 (14), IDRS Guidelines for Credit Transfers, for procedures on transferring credits to Excess Collections.

If you are staffing the toll-free lines, take the following actions:

If you are working a paper case and there is an open control (other than category STEX) assigned to an employee or a clerical number, coordinate with the assigned employee or team before taking action. Otherwise, refer to paragraph (5).

If there are no other open controls, or the only open control is category STEX, telephone assistors resolve the -B Freeze as follows:

If there are no other open controls, or the only open control is category STEX, paper assistors resolve the -B Freeze as follows:

The C- freeze is set when one of the following conditions applies:

The -C freeze (Combat Zone Indicator) is set when:

The D- freeze is set when one of the following conditions applies:

Do not take action to release a D- freeze or input a credit transfer. The system resolves the freeze as follows:

The -D Refund Statute Expiration Date (RSED) freeze is set when one of the following conditions applies:

All or part of the credit must consist of prepaid credits (credits posted by the return due date). The credit is frozen, and an RSED-STAT transcript is generated and sent to the Statute function ffour cycles after the -D freeze is set.

If 45 days have passed since the cycle date of the TC 29X/30X that created the -D freeze:

If he account contains an SFR/ASFR assessment, refer to IRM 4.13.1.3.1, Research/Initial Case Screening, to identify the correct function for the referral.

If working a paper case, coordinate with the open RSED-STAT control before taking any action.

The E- freeze is set when no original return (Transaction Code (TC) 150) has posted and one of the following conditions applies:

The module is frozen from offsets and refunds until the TC 150 posts and releases the freeze.

If the taxpayer has sent in correspondence (late reply to Letter 12C, Form 1040-X or a copy of the Form 1040), thorough research must be completed to determine that the return moved to MFT 32 is the true taxpayer, and all the income belongs to the taxpayer(s). Before making any adjustments, Command Codes (CC) RTVUE, CC TRDBV, CC IMFOLE and CC ENMOD should be researched to determine if Submission Processing Specialized Identity Theft (SPIDT) or Return Integrity Verification Operations (RIVO) moved the original return to MFT 32. Follow the below chart to determine where to forward the Form 4442/e-4442, Inquiry Referral:

The -E freeze is set when:

A -E freeze prevents generated offsets into the module.

Resolve a -E freeze in one of the following ways:

Use the instructions below when processing amended returns on -E freeze cases with a TC 810 RC 3:

The F- freeze is a Frivolous Return Program freeze set by posting a Transaction Code (TC) 971 Action Code (AC) 089. Refer to IRM 21.5.3.4.16.7, Identifying Frivolous Returns/Correspondence and Responding to Frivolous Arguments, and/or Document 6209, Section 8A.4, Master File Freeze Codes and IDRS Status 48.

The -F freeze is an advance payment freeze set when a taxpayer submits a payment for a determined deficiency prior to assessment (Transaction Code (TC) 640).

To resolve the -F Freeze:

The G- (Restricted Failure to Pay Penalty) freeze is set by:

To resolve the G- Freeze:

The -G (Math Error) freeze is set when a taxpayer’s return is changed or corrected during processing, or by a Transaction Code (TC) 290, blocking series 77/78, adjustment.

The H- freeze is set when a taxpayer overpays on an individual return while owing a balance on a BMF account. The freeze is automatically released in two cycles (from the date H- freeze is set) by a Transaction Code (TC) 896 on the IMF module.

If the freeze does not release in two cycles, release it manually, and transfer the required funds to satisfy the outstanding liability (including accrued penalties and interest) using Command Code (CC) ADD24 or CC ADD34. Refer to IRM 21.5.8, Credit Transfers, or input a correcting adjustment using CC REQ54.

A CP 185, Frozen Designated Penalty Payment Transcript, is generated on a BMF module when all the following conditions are met:

The -H (Credit Balance on a BMF Module) freeze is set when a payment posts to a tax period for which there is no filing requirement (Status code is 06 and Transaction Code (TC) 59X on module).

To resolve the -H Freeze:

The I- freeze is set when a taxpayer files a return that posts to an invalid IMF segment or when a taxpayer fails to provide requested information resulting in an unprocessable code. A Computer Condition Code (CCC)/Return Condition Code (RCC) "U" appears on Command Code (CC) TXMOD and CC RTVUE. Credit Interest has been restricted. Refer to IRM 21.5.4, General Math Error Procedures, when TIN is invalid or missing to resolve math error issues created by the invalid TIN.

Resolve I- freeze issues by taking one of the following actions:

If a scrambled SSN indicator "20" is present on CC ENMOD, or an open control with category "SCRM" , or "SSA2" , prepare Form 4442/e-4442, Inquiry Referral, to the controlling CSR, however, do not send a referral on an open CII case, instead, add the information as a CII case note. Non-AM assistors, or if there is no open control, prepare a referral as outlined in IRM 21.6.2.3.3(6), Telephone Inquiries Regarding Mixed Entity (MXEN) and Scrambled SSN (SCRM) Cases.

For other reasons an I- freeze would generate, and the related release actions, refer to Document 6209, Section 8A.4, Master File Freeze Codes and IDRS Status 48.

The -I (Debit Interest) freeze sets when a manual abatement or assessment requirement is placed on an account. The -I freeze is generated when a Transaction Code (TC) 340/341 posts or when Computer Condition Code (CCC)/Return Condition Code (RCC) "Z" is placed on an account identifying combat zone or contingency operation taxpayers entitled to an automatic postponement of a deadline. You must manually compute interest on adjustments input on an account with the -I Freeze.

Do not take any action to release the freeze.

The J- freeze on IMF is set when a taxpayer claims fewer credits on the return than are available on Master File. Determine who the excess credits belong to. Verify the estimated tax payments were not included with the withholding claimed on the return. Refer to IRM 21.6.3.4.2.2.1, Withholding Adjustments.

Information from the taxpayer determines whether and how you can resolve inquiries concerning discrepancies in estimated tax credits.

Release the J- freeze by using one of these methods:

The -J (Math Error) freeze is set when a taxpayer disagrees, without substantiation, with the notice of a math error that increased the tax and/or decreased credits and the IRS abates the change at the taxpayer’s request per IRM 21.5.4.4.5, Math Error Unsubstantiated Protest Processing. Credit on the account is frozen and the case is set up on the Audit Information Management System (AIMS) database for review.

The -J freeze is set by Transaction Code (TC) 470 with closing code (CC) 94, converting a previously set -G freeze. The -J freeze prevents issuance of balance due notices or transition into TDA status prior to the adjustment posting. The -J freeze should only be on the module until the adjustment posts.

Follow the procedures in the IRM 21.5.4.4.5, Math Error Unsubstantiated Protest Processing. Refer to IRM 21.5.3, General Claims Procedures, for more information.

The K- (Erroneous Credits) freeze is set when the module balance is a credit, but the credit is not entirely refundable. A debit clearance (Transaction Code (TC) 606) that posted prior to an additional credit frequently causes a K- Freeze.

Release the K- freeze by taking one of the following actions:

The -K freeze is set by including a specified hold code (HC) in a Data Processing (DP) or Examination adjustment. Credit module balances are frozen from refund or offset when a Transaction Code (TC) 29X/30X posts with Hold Code (HC) 1, 2 or 4.

Gather additional details from the taxpayer regarding the account, then research IDRS/Corporate Files OnLine (CFOL) to ensure:

If the freeze should be released, input TC 290 for .00. Refer to Document 6209, Section 8A.4, Master File Freeze Codes and IDRS Status 48, for more ways to release a -K Freeze.

Return Integrity Verification Operations (RIVO) generally holds refunds by using a -R or P- freeze. If, however, an account has a -K freeze and RIVO indicators, the HC 1 or 4 may have been used to hold the refund because the RIVO issues have not been addressed. More research is needed to determine proper case resolution. For a listing of RIVO indicators, refer to IRM 21.5.6.4.35, -R Freeze and IRM 21.5.6.4.31, P- Freeze.

If there is an unresolved RIVO issue on the account, do not release the refund. Follow the chart below to advise the taxpayer:

This freeze is set on BMF when a Master File Tax (MFT) 60 module (Form 2290, Heavy Highway Vehicle Use Tax Return), has a credit balance of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

An L- freeze is also generated for IMF from input of a Transaction Code (TC) 971 Action Code (AC) 065 when Form 8857, Request for Innocent Spouse Relief, is received.

For resolution of this freeze refer to IRM 25.15, Relief from Joint and Several Liability, for Innocent Spouse procedures. Refer to IRM 21.7.1.4.4.4, Excise Taxes, for Form 2290 instructions. Also refer to IRM 21.5.8, Credit Transfers, for credit transfer instructions.

The -L (Open Examination Indicator) freeze is set when a Transaction Code (TC) 420 or TC 424 posts to an account that has been referred to Examination. It does not freeze the account. Before making adjustments to the account, research the following IRMs for specific procedures:

A Duplicate/Amended TC 420 (DAUD) generates in CII when a duplicate or amended return posts to a module which contains an open TC 420.

No action is required to release a -L freeze.

Initiate the necessary actions to correct entity information and input credit transfers even though a -L freeze is present.

The M- freeze is an account transfer freeze set by posting a Transaction Code (TC) 400. Refer to Document 6209, Section 8A.4, Master File Freeze Codes and IDRS Status 48.

The -M freeze indicates a Maritime Industry Filer. Refer to Document 6209, Section 8A.4, Master File Freeze Codes and IDRS Status 48.

The N- freeze is set if a module is in notice status. This freeze is on the IMF and the Automated Non-Master File (ANMF) until the balance becomes zero or a TDA.

Refer to IRM 21.2.1.5, Non-Master File, for information on non-master file accounts.

Refer to IRM 21.3.1, Taxpayer Contacts Resulting from Notice Issuance, for more information on notices. Refer to Document 6209, Section 9, Notices and Notice Codes, for a listing of notices and notice codes.

The -N freeze is set by the Independent Office of Appeals (Appeals) area on previously sustained penalties. Refer to IRM 20.1.1.3.5.1 (5), Subsequent Requests for Penalty Relief, and/or Document 6209, Section 8A.4, Master File Freeze Codes and IDRS Status 48.

The O- freeze indicates the re-establishment or account reactivated freeze set by the input of a Transaction Code (TC) 370 when a module is transferred from the Retention Register to the Master File. Refer to Document 6209, Section 8A.4, Master File Freeze Codes and IDRS Status 48.

The -O (Disaster Indicator) freeze is input systemically by Information Technology Services (IT) at the request of the Disaster Program Office. IRS personnel can input a disaster freeze on a case by case basis for taxpayers who qualify for -O disaster tax relief but did not receive the freeze on their account. The -O freeze:

When the Internal Revenue Service decides to extend tax relief to taxpayers affected by a disaster, a notice is issued to the public outlining the relief that is being granted. The notice advises those taxpayers who reside outside the declared area but whose records, principal place of business, or accountant were inside the declared area to call the Disaster Hotline to self-identify. A chronological list, by FEMA number, of all the disaster declarations can be accessed to research the relief provided by the disaster office at Disaster Program Office. Employees should research the Declarations and Memos Library and/or the Archived Declarations and Memos Library to validate the covered FEMA disaster area.

If you receive a call from a tax professional who is in a covered disaster area and maintains records for several taxpayers located outside the disaster area, inform the tax professional to:

If a tax professional calls for a single taxpayer account, third-party telephone contact requires IRS assistors to authenticate a tax professional’s authorized relationship to act on behalf of a taxpayer through Power of Attorney. The Centralized Authorization File (CAF) must have the POA before the relief is added to a taxpayer’s account, or the tax professional may ask the assistor if a POA may be faxed for processing. Refer to IRM 21.3.10.3, Authentication and Disclosure Guidelines, for more information.

If a taxpayer calls who resides inside the federally declared disaster area, without a ZIP Code found on ICCE, they can provide the name of their county, and self-identify if their county is found on the Disaster Declaration for their state. If a taxpayer calls who resides outside the federally declared disaster area but whose records, principal place of business, or accountant/preparer were inside the federally declared disaster area, take the following steps:

For input of the TC 971 AC 087:

For more disaster related information refer to:

The P- Freeze (Refund Repayment, Cancellation, or Deletion) is set by the following:

A TC 841 also follows a check claim initiated with reason for non-receipt code "H" , "X" , or when an undeliverable check is incorrectly coded by the Regional Financial Center as a returned check (returned by the taxpayer). Refer to IRM 21.4.3.5.6, Resolving Returned Expired Refunds Limited Payability, and IRM 21.6.4.4.15.3, Adjustment Considerations -Revenue Act of 1978, Section 530, for more information.

Any of the following will release the freeze:

The -P freeze is set on MFT 05 (Form 1041, U.S. Income Tax Return for Estates and Trusts), to set a beneficiary offset freeze. Refer to IRM 21.7.4.4.1.12.3, CP 208, Potential Credit Transfer Action Form 1041, and/or Document 6209, Section 8A.4, Master File Freeze Codes and IDRS Status 48.

The Q- (FTD Discrepancy) freeze (BMF) is set when a BMF return posts with unclaimed excess credits. The freeze prevents the computer from offsetting to a balance due module or from refunding to the taxpayer.

The Q- freeze is set when a return has completed processing and excess FTD credits are available. The taxpayer is notified of the discrepancy in credits.

Refer to IRM 21.7.11.4.9, CP 267, No Math Error - Credit Offset Notice, and CP 268, Math Error - Credit Offset Notice - Notices of Excess Credit, for procedures for working the Q- freeze on CP 267 notices.

The -Q (Unallowable Refund) freeze is set by Transaction Code (TC) 576. The freeze holds the unallowable portion of the refund. The balance of the overpayment is issued. Usually, these accounts are Examination referrals or subject to special programs such as the Revenue Protection Strategy.

The freeze is set when amounts claimed on a return are unallowable by law.

For more information, refer to IRM 4.19.14.18.6.1, Resolving the -Q Freeze.

Examination determines if the item causing the -Q freeze is allowable. DO NOT release the refund. Research Command Code (CC) AMDISA for the current AIMS status. Refer to Exhibit 21.5.10-1, Audit Information Management System (AIMS) Status Code Guide - Field Cases, or Exhibit 21.5.10-2, Audit Information Management System (AIMS) Status Code Guide - Campus Cases, for the correct procedures. See IRM 21.5.10.3.1, Integrated Data Retrieval System (IDRS) Research Exam Issues, for more information.

On BMF accounts, the -Q freeze is set to hold credits on potential identity theft, fraud/questionable refund, and bank refund items pending review. The freeze is set by the posting of a TC 810 and applicable Responsibility Code (RC):

Take the following action when a phone call is received on a BMF account with a -Q freeze:

The -R freeze is set when there is an additional tax liability pending and a Transaction Code (TC) 570 posts to a module.

Refunds with Return Integrity Verification Operations (RIVO) involvement may have a -R freeze on the module. RIVO involvement can be identified by:

A -R freeze is set when an injured spouse claim is received with the original return. IDRS contains a TC 150 with blocking series 92 and a TC 570. Follow procedures in IRM 21.4.6, Refund Offset, to resolve these issues.

A -R freeze is set when a TC 670 posts to a debit module and creates a credit balance of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Follow procedures in IRM 21.5.6.4.35.2, Resolving -R Freeze, for resolution.

A -R freeze is set when a Form 8857, Request for Innocent Spouse Relief, request is attached to a current year tax return. Refer to IRM 25.15.1.6, Form 8857, Request for Innocent Spouse Relief, for more information.

A -R freeze is set when a multiple (DUPTIN) filing condition occurs. Refer to IRM 21.6.7.4.5, Multiple Uses of Taxpayer Identification Numbers - (DUPTIN Filing Condition), for more information.

A -R freeze is set when an IRC 965 Transition Tax on Unclaimed Foreign Earnings is claimed on a return for tax years 2017 and 2018. The module has a TC 670 with a Designated Payment Code (DPC) 64 and/or a CCC/RCC "3" for IMF or a CCC/RCC "X" for BMF. The account contains a TC 766 with Credit Reference Number (CRN) 263 (deferred amount) and a TC 971 AC 114 (total net tax liability under section 965). Refer to IRM 21.5.13, IRC 965 Transition Tax Procedures - Accounts Management, for more information.

The -R (Additional Tax Liability) freeze is set when the following conditions occur:

If the taxpayer calls to change their address, and they do not meet the oral statement authority for the change and there is NO Z freeze on the account, inform the caller to complete and submit a Form 8822, Change of Address. Inform the taxpayer they can obtain a copy of Form 8822 by going to irs.gov or offer to mail the information to them. If there is a Z freeze on the account, follow procedures in IRM 21.5.6.4.52, -Z Freeze.

For more information on Criminal Investigation processing and when to refer to that function refer to IRM 21.5.6.4.52, -Z Freeze.

The R- (Remittance Processing System (RPS) Multiple Transaction Code (TC) 610) freeze is set when the module has one of the following conditions:

Release the R- freeze by one of these methods:

The -S freeze has been added to IMF and BMF Master File processing for taxpayer accounts in Presidentially declared disaster areas. The -S freeze performs the same functions as the -O freeze for systemic penalty and interest relief. It does not, however, provide compliance relief. When performing account research, the -S freeze is seen on Command Code (CC) ENMOD, CC IMFOLE or CC BMFOLE.

When the Internal Revenue Service decides to extend tax relief to taxpayers affected by a disaster, a notice is issued to the public outlining the relief that is being granted. The notice advises those taxpayers who reside outside the declared area but whose records, principal place of business, or accountant were inside the declared area to call the Disaster Hotline to self-identify. A chronological list, by FEMA number, of all the disaster declarations can be accessed to research the relief provided by the disaster office at IRS Disaster Assistance Program, Disaster Program Office. Employees should research the Declarations and Memos Library and/or the Archived Declarations and Memos Library to validate the covered FEMA disaster area.

If a tax professional is located in a covered disaster area and maintains records for several taxpayers located outside the disaster area, inform the tax professional to:

If a tax professional calls for a single taxpayer account, third-party telephone contact requires IRS assistors to authenticate a tax professional’s authorized relationship to act on behalf of a taxpayer through Power of Attorney. The Centralized Authorization File (CAF) must have the POA before the relief is added to a taxpayer’s account, or the tax professional may ask the assistor if a POA may be faxed for processing. Refer to IRM 21.3.10.3, Authentication and Disclosure Guidelines, for more information.

If a taxpayer calls who resides inside the Presidentially declared disaster area, without a ZIP Code found on ICCE, they can provide the name of their county, and Self-Identify if their county is found on the Disaster Declaration for their state. If a taxpayer calls who resides outside the Presidentially declared disaster area but whose records, principal place of business, or accountant/preparer were inside the Presidentially declared disaster area, take the following steps:

For input of the TC 971 AC 688:

If taxpayers were assessed any penalties during the relief period, the penalties systemically reverse upon the posting of the TC 971 AC 688 from the 1st day of the relief period start date until the 1st day after the relief period end date. Refer to IRM 20.1.2.2.2.2 (7), Federal Disaster Area - IRC 7508A, for more information.

More disaster information can be found in:

The -S freeze is released when the current date is beyond the secondary date (disaster ending date) of the TC 971 AC 688.

The S- freeze is the undelivered refund check freeze set when:

Release the S- freeze through one of the actions in the following chart. Also refer to IRM 21.4.3.5.3(9), Undeliverable Refund Checks.

The T- freeze is a TDA status alpha indicator showing the account is assigned to Collection. The module is not frozen.

T- freeze accounts are assigned to specific Collection functions which are indicated by the Status Code: Status 22 is in ACS (Automated Collection System), Status 24 is in the Queue, and Status 26 is in the Collection Field Function (CFF) a revenue officer assignment.

Entity changes, record of account requests, etc. may be processed in the normal manner, however, be aware of the above codes when considering changes that affect the balance due.

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

No special actions are required for a -T freeze account, follow normal processing procedures when a taxpayer inquiry is received.

The -U freeze (Erroneous Refund Freeze) is set when an erroneous refund is issued to the taxpayer. It is initiated by Transaction Code (TC) 844 and freezes the entire account from refunding or offsetting in or out until the erroneous refund has been repaid in full, or the 2 year or 5 year statue has expired. Taxpayers should allow 7-10 days for the adjustment to post and release any overpayment due to the taxpayer.

Research IDRS/CFOL to determine the necessary closing action. The TC 844 may be on a prior year. Only Accounting Erroneous Refund Units can release the freeze. The controlling campus can be identified by the IDRS control number (listed in the chart below), or the 8th and 9th position of the TC 846 or TC 840 refund schedule number (RSN).

Use the following to determine the correct email contact.

The U- freeze, with status code 60, indicates a module freeze that is generated when Command Code (CC) IAORG or CC IAREV is input to an account. An active installment agreement is established. The status suspends all systemic notices related to balance due except those for installment agreements.

The U- freeze is released when the status is updated to a status other than 60. Refer to IRM 5.19.1.6, Methods of Payment.

The V- freeze (outstanding liability) is generated when there is a liability on another account with the IRS. The freeze for an outstanding liability is set with the posting of Transaction Code (TC) 130 on the entity section. The TC 130 has a specific indicator to identify the agency with the outstanding liability. If the indicator is 99, the freeze is the result of a state or federal agency debt on the Debtor Master File (DMF). If the indicator is other than 99, it is the campus where the TC 130 was input.

Refer to IRM 21.4.6.4.2, Treasury Offset Program (TOP) Offset, for more information.

Research IDRS including Non-Master File (NMF) accounts to determine where the outstanding liability exists. Use CC TXMOD, CC SUMRY, and CC ENMOD with definer "N" after the TIN. Refer to IRM 21.2.1.5, Non-Master File, for more information. Do not refer accounts with a posted TC 130 to the NMF Toll-free line unless they are in blocking series 200–209.

No action should be taken to release a V- freeze, unless a credit transfer of misapplied payment(s) or an overpayment satisfies the issue. If a credit transfer of a misapplied payment(s) or an overpayment is needed, transfer the payment(s).

A CP 44, Refund Delayed Because You May Owe on Another Non-Individual (IMF) Account, is generated when an IMF overpayment of $25 or more is available for application. See IRM 21.3.1.6.25, CP 44 - Refund Delayed Because You May Owe on Another Non-Individual (IMF) Account, for instructions for responding to a CP 44.

The -V freeze enables IRS to comply with the automatic stay provisions of the Bankruptcy Code by "freezing" the pre-petition tax modules so collection actions do not take place. IRS employees, upon learning of a bankruptcy, generally should cease all demands and enforcement actions directed against the bankrupt taxpayer; e.g., a Notice of Federal Tax Lien (NFTL) for pre-petition taxes should not be filed and no levy should be proposed or made for pre-petition taxes. But certain action may be necessary to comply with various standing court orders which allow assessments, offsets, or refunds to the debtor. Also, actions may be required under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) which is applicable to cases filed on or after October 17, 2005; the "Series 6" freeze codes (Transaction Code (TC) 520 with a closing code (cc) 60-67) were created for these actions; e.g., they modify the -V freeze for post-petition modules and allow post-petition offsets of "mutual" credits and debts of pre-petition credits to pre-petition taxes.

The -V freeze with a TC 520, cc 60-67, cc 83, or cc 85-89, on any module, indicates a bankruptcy freeze to ensure compliance with the automatic stay provisions. Do not automatically refer the taxpayer to the Centralized Insolvency Operation (CIO). First determine the reason(s) for the contact and address any non-insolvency related issues as appropriate.

A TC 520 cc 81 and a cc 84 are bankruptcy freezes but they are set with a -W Litigation freeze.

When the Department of Justice (DOJ) litigates a case for the IRS and/or secures a judgment for collection of the debt, only DOJ has decision authority. The following defines a DOJ case:

If the taxpayer is calling regarding a refund and a bankruptcy freeze is on an account:

If the taxpayer is responding to a math error notice, do not contact the CIO. Follow procedures in IRM 21.5.4.4.4, Math Error Substantiated Protest Processing.

If the taxpayer is calling to request an Installment Agreement (IA) refer the caller to the CIO toll-free number at 800-973-0424. AM must transfer to 1618.

Refer the taxpayer to the CIO toll-free number, 800-973-0424, for questions regarding bankruptcy/insolvency proceedings, and if the taxpayer is outside the US (living abroad). For more information, refer to IRM 5.19.1.5.2.1, Contacts Regarding Insolvency Issues, or for Individual Master File (IMF) accounts refer to IRM 5.19.1.5.2, Insolvency Issues.

When working correspondence, amended returns or claims in bankruptcy status 72, Insolvency contact is not required by Accounts Management employees before making any adjustments or sending correspondence. Process the taxpayer request following normal adjustment procedures.

Take no action to release a -W freeze set by a TC 520 cc 81 for bankruptcy litigation.

If a TC 521 has already posted to the module and all closing codes are -W Litigation freezes (i.e., the cc is not a 60-67, 83, or 85-89), contact the proper Appeals Office or Advisory Group before making any account adjustments. See the Litigation Contacts listed in the IRM 21.5.6.4.46, -W Freeze. Do not simply refer the case to Appeals or Advisory to make adjustments.

The W- (Claim Pending) freeze is set by a Transaction Code (TC) 470 and is frequently input on a module when taxpayer files a claim for refund, or when payment tracer case is initiated, to prevent offsets into the module pending resolution of the issue.

The W- freeze is also set with TC 840 if TC 150 without Computer Condition Code (CCC)/Return Condition Code (RCC) "O" is present and no 29X/30X is present.

A TC 976/977 posting to a module in a debit balance.

TC 470, closing code (cc) 93 does not prevent offsets into the module.

If the TC 470 was input for a claim or payment tracer and the actions have been completed; input a TC 472 to release the freeze or Command Code (CC) STAUP for zero (0) cycles to allow balance due notices to resume, if applicable. If a campus controls a case, the freeze is released automatically in 15 cycles or manually by the tax examiner.

Refer to Document 6209, Section 8A.4, Master File Freeze Codes and IDRS Status 48 and Document 6209, Section 11.8(7), TC 470 Closing Code Chart for more information.

The -W freeze may be set in two ways:

When the Department of Justice (DOJ) litigates a case for the IRS and/or secures a judgment for collection of the debt, only DOJ has decision authority. The following defines a DOJ case:

Complete thorough research of the account and modules to identify a -W (Litigations) freeze status.

The Litigation Contact may inform you to do one of the following with a document:

An X- freeze is set when a module credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more for IMF or ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more for BMF. The freeze prevents any credits from systemically offsetting or refunding.

Refer to IRM 21.5.6.4.24, -L Freeze, if an open Transaction Code (TC) 420 or -L freeze is present.

If appropriate, take action to release the freeze and manually refund the credit if no open controls exist. If an open control exists, contact the employee/team with the case control. If a manual refund is required, Accounts Management Assistors send a Form 4442/e-4442 to the Campus AM paper function within their Directorate, except Puerto Rico who will send the Form 4442 to the Brookhaven Campus paper function until further notice.

The X- freeze is systemically released and the offset/refund restriction released in the cycle the module balance becomes zero or debit balance.

The -X (Manual Refund) freeze is set when one of the following conditions is present:

On accounts that taxpayers have filed a Form 1040-NR or Form 1040-NR-EZ and have a refund overpayment ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, do not release the refunds. These returns can be identified with CCC/RCC O on CC TXMOD and the accounts must have TC 767 CRN 330. Refer to IRM 21.8.2.12.2.4 (8), FATCA- 1042-S Matching Program - General Information - Identifying Related Letters, Transaction Codes, Reason Codes, 1042-S Data Fields, for more information.

Follow the procedures below if you are working CP 41, Unresolved Manual Refund Freeze, transcripts.

Research IDRS for open or closed controls.

Compliance Service Collection Operation (CSCO), (formerly Service Center Collection Branch, (SCCB)) must be notified if the case cannot be closed prior to the issuance of a TDA.

The Y- (Data Processing/Audit Adjustment) freeze is set by Transaction Code (TC) 29X/30X that has a Hold Code (HC) 1, 2, or 4. Refer to IRM 21.3.1.7.31, CP 210 Examination (Audit) or Data Processing Tax Adjustment - Balance Due, Overpayment, or Even Balance, and/or Document 6209, Section 8A.4, Master File Freeze Codes and IDRS Status 48.

The -Y (Offer in Compromise) freeze is set by Transaction Code (TC) 480 when systemically uploaded through the Automated Offer in Compromise Program (AOIC) located in Brookhaven Customer Service Center (BCSC) or Memphis Customer Service Center (MCSC); or by Exam and Appeals located in the Area Offices, at the time the taxpayers offer is considered processable.

Take no action to release this freeze. Respond to taxpayer inquiries by following the guidelines found on the Offer-in-Compromise (OIC) Centralized Service Center Locations, link located under the Who/Where tab on the SERP Home Page, or refer to IRM 5.19.7.2, Monitoring Offers in Compromise (MOIC), for more information.

Take the following actions when a -Y freeze is present on the module:

For OIC Campus locations refer to the Who/Where tab on the SERP Home Page, Offer-in-Compromise (OIC) Centralized Service Center Locations.

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The 1- Freeze is set when an MFT 30 return posts with either invalid or no bank account information, no unreversed Transaction Code (TC) 971 Action Code (AC) 850 is present, and the account contains a credit balance. It freezes refunds but not offsets from the account.

A CP 53E notice is issued to the taxpayer to request bank account information via Individual Online Account (IOLA). The taxpayer may also request a waiver.

The refund will be released in 6 weeks as a paper check if valid bank account information or a waiver request is not submitted.

Advise the taxpayer to follow the instructions provided in the CP 53E notice to update bank account information or submit a waiver request via IOLA. Advise the taxpayer to allow 4 weeks for their refund after submission of their information. For more information about IOLA please see IRM 21.2.1.62 , Individual Online Account (IOLA).

A taxpayer may qualify for a waiver under limited circumstances. To qualify for a waiver, a taxpayer must meet one of the following conditions:

If the taxpayer states they are unable to access IOLA or meets one of the waiver conditions above, input a TC 290 for .00 using Reason Code (RC) 235, to release the refund as a paper check. Update AMS history with the reason the taxpayer gave for requesting a paper check be issued. Advise the taxpayer to allow 4 weeks to receive their refund.

When addressing an issue related to CP 53E or releasing a refund as a paper check, select the appropriate "Issue" on AMS.

When a taxpayer requests an Offset Bypass Refund (OBR), meets TAS criteria, see IRM 13.1.7.3 , TAS Case Criteria, but you are able to resolve the same day, release the freeze as above but input a hold code (HC) 4. Then follow procedures in IRM 21.4.6.5.7.1, Offset Bypass Refund (OBR).

For more information about direct deposits, refer to IRM 21.4.1.5.7, Direct Deposit - General Information.