The authorities for this IRM include:

The Wage and Investment Commissioner oversees all policy related to this IRM, which is published on a yearly 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) oversees the content in this IRM and acts as a point of contact for all Accounts Management sites.

Managers and leads ensure compliance with the guidance and procedures in this IRM for case resolution on freeze code affected accounts.

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

Program Effectiveness: Program effectiveness is measured and controlled through:

See the table below for a list of acronyms commonly used in this IRM. For a comprehensive listing of any IRS acronyms, please refer to the Acronym Database.

Related resources include:

The A- freeze is set when all the following occur:

A CSED transcript generates and is worked in the Collection function. The account is frozen and is released when a TC 534 is input. Refer to IRM 5.19.10.5.5, CSED (SPC3) Transcript, for more information on the A- freeze.

The -A freeze is set when a duplicate return (TC 976), subsequent return (TC 977) or a TC 971 with action code (AC) 010 or AC 012-015 (amended return), posts to an account. A TRNS36, Individual Master File (IMF) Duplicate Filing Notice, or TRNS193, Business Master File (BMF) Duplicate Filing Condition (created by a frozen account), is generated and forwarded to the campus AM paper function.

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 21.6.7.4, Adjusting Individual Tax Accounts Procedures, for Individual Master File (IMF) and IRM 21.7.9, BMF Duplicate Filing Conditions, for Business Master File (BMF) for instructions when working a -A freeze case.

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

The B- freeze is set when:

To resolve a B- freeze take the following actions:

The -B freeze is set when the Statute of Limitations for a refund has expired. Tax modules with a -B freeze generally have a TC 820 to transfer the overpayment to Excess Collection when the overpayment is on a delinquent original return.

Resolve the -B Freeze:

The C- freeze is set when there is:

The -C freeze, Combat Zone Indicator, is set when a TC 150 posts with Computer Condition Code (CCC) "K" or a TC 500 is input with CCC 52, 54, or 56 to any module on the account. Refer to IRM 5.19.10.6, Combat Zone Accounts, and/or Document 6209, Section 8A.4, Master File Freeze Codes and IDRS Status 48.

The D- freeze is set when:

No action is needed to release a D- freeze and credit transfers should not be input:

Follow procedures in IRM 13.1.7.3, TAS Case Criteria, to determine if taxpayers or cases should be referred to the Taxpayer Advocate Service (TAS), when you cannot resolve the taxpayer’s issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer’s issue. Refer to IRM 13.1.7.5, Same Day Resolution by Operations. Do not refer these cases to TAS unless they meet TAS criteria or the taxpayer asks for a transfer to TAS. When you refer cases to TAS, use Form 911/e-911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), and forward to TAS per your local procedures.

The -D Refund Statute Expiration Date (RSED) freeze is set when:

All or part of the credit must be made up of prepaid credits (prepaid credits are credits posted by the due date of the return). The credit is frozen, and an RSED-STAT transcript is generated and distributed to the Statute function for resolution 4 cycles after the -D freeze is set.

If 45 days have passed since the cycle of the -D freeze, prepare Form 4442/e-4442, Inquiry Referral, and forward to the Statute function where the RSED-STAT transcript generated, along with any documentation the taxpayer furnishes.

If there is an SFR/ASFR assessment on the account please refer to IRM 4.13.2.2, Function Responsible & Routing Instructions, to identify the correct function to send the Form 4442/e-4442, Inquiry Referral. For SFR routing purposes select Audit Reconsideration and fax it to the applicable SFR campus. Refer to SERP Audit Reconsideration Requests - Central Reconsideration Unit (CRU) Addresses. For ASFR routing purposes select "ASFR" and fax it to the ASFR Unit at the controlling campus. Refer to SERP Who/Where Form 4442 Referral Fax Numbers, for more information. Advise the taxpayer to expect a response within 30 days.

Do not send Form 4442/e-4442, Inquiry Referral, prior to 45 days. Refer to IRM 25.6.1.11.1.4.2.17, Resolving RSED–STAT Transcripts, for more information.

The E- freeze is set when no original return (TC 150) has posted and:

The module is frozen from offset or refund until the freeze is released by the posting of the TC 150.

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 Income Verification Organizations (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 to resolve amended returns on -E freeze cases:

The F- freeze is a Frivolous Return Program freeze set by posting a TC 971 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 (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 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 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 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 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) "U" appears on CC TXMOD and CC RTVUE. Credit Interest has been restricted. Refer to IRM 21.5.4, General Math Error Procedures, when SSN is invalid or missing to resolve math error issues created by the invalid SSN.

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, and forward to the Campus AM paper function that scrambled the SSN. If there is an open control, route Form 4442/e-4442 to the employee with the open control. For more information, refer to IRM 21.6.2.3.3, 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 TC 340/341 posts or when CCC "Z" is placed on an account identifying combat zone 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 his or her tax and/or decreased credits and the Service abates the change at the taxpayer’s request per IRM 21.5.4.5.5, Math Error Unsubstantiated Protest Processing. Credit on the account is frozen and the case is set up on the Audit Information Management System (AIMS) data base for review.

The -J freeze is set by TC 470 with 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 21.5.4.5.5, 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 (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 TC 29X/30X posts with HC 1, 2 or 4.

Question the taxpayer, then research IDRS/Corporate Files On Line (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 Overview.

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

Follow procedures in IRM 13.1.7.3, TAS Case Criteria, to determine if taxpayers or cases should be referred to the Taxpayer Advocate Service (TAS), when you cannot resolve the taxpayer’s issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer’s issue. Refer to IRM 13.1.7.5, Same Day Resolution by Operations. Do not refer these cases to TAS unless they meet TAS criteria or the taxpayer asks for a transfer to TAS. When you refer cases to TAS, use Form 911/e-911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), and forward to TAS per your local procedures.

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 TC 971 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 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:

If this is a duplicate return, an IMF internal notice CP 93, Duplicate Filing Condition on Module Under Exam Investigation, is issued. A CP 293, Duplicate Filing Condition on Module Under Audit Investigation, is generated when a duplicate return posts to a BMF account with an open TC 420 present.

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 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 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 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 only input systemically by Information Technology Services (IT) at the request of the Disaster Program Office or on a case-by-case basis by Compliance personnel.

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

If a practitioner calls for a single taxpayer account, third-party telephone contact requires IRS assistors to authenticate a practitioner’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 practitioner 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 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 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, for more information.

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 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 4.19.15.15.6.1, Resolving the -Q Freeze.

Examination determines if the item causing the -Q freeze is allowable. DO NOT release the refund. Research 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.

The -R freeze is set when there is an additional tax liability pending and a 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 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 - TRNS36F (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 "3" for IMF or a CCC "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 21.6.4.4.21, IRC 965 - Transition Tax on Untaxed Foreign Earnings, for more information.

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

Follow procedures in IRM 13.1.7.3, TAS Case Criteria, to determine if taxpayers or cases should be referred to the Taxpayer Advocate Service (TAS), when you cannot resolve the taxpayer’s issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer’s issue. Refer to IRM 13.1.7.5, Same Day Resolution by Operations. Do not refer these cases to TAS unless they meet TAS criteria or the taxpayer asks to be transferred to TAS. When you refer cases to TAS, use Form 911/e-911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), and forward to TAS per your local procedures.

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 www.irs.gov or offer to mail the information to them. If there is a Z freeze on the account, follow procedures in IRM 21.5.6.4.52.1, Address Changes with Z Freeze.

For more information on Criminal Investigation-Scheme Development Center 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 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 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, http://www.icce.irs.gov/fema. Employees should research this website to validate the covered FEMA disaster area.

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

If a practitioner calls for a single taxpayer account, third-party telephone contact requires IRS assistors to authenticate a practitioner’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 practitioner 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 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, 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.

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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 TC 844 and freezes the entire account from refunding or offsetting in or out.

Research IDRS/CFOL to determine the necessary closing action.

The U- freeze, with status code 60, indicates a module freeze that is generated when CC IAORG or CC IAREV is input to an account. An active installment agreement is established. The status suspends all notices 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 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.

Research IDRS for 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.

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

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, use the IAT Credit Transfer tool to 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 21.3.1.6.30, CP 44 Credit Available For Application to Non-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 (TC 520 with a 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 debit, 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 21.5.4.5.4, 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.

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 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 CCC "O" is present and no 29X/30X is present.

A TC 976/977 posting to a module in a debit balance and Status is 22, 24 or 26.

TC 470, 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 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 debit, 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 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.

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 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 TRNS41, 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 TC 29X/30X that has a HC 1, 2, or 4. Refer to IRM 21.3.1.7.29, CP 210 Audit/DP Tax Adjustment, and/or Document 6209, Section 8A.4, Master File Freeze Codes and IDRS Status 48.

The -Y (Offer in Compromise) freeze is set by 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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