21.5.11  Employee Plan Accounts (Cont. 1)

21.5.11.11  (07-01-2015)
Routing Correspondence

  1. Loose Schedules—Local procedures to be developed with the Ogden TE/GE Processing Center Staff.

  2. When any of the following forms: Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code,Form 1024, Application for Recognition of Exemption Under Section 501(a) or for Determination Under Section 120, Form 1028, Application for Recognition of Exemption, Form 5300, Nondiscrimination Requirements, Form 5305, Traditional Individual Retirement Trust Account, Form 5307, Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans, Form 5309, Application for Determination of Employee Stock Ownership Plan, Form 5310, Application for Determination Upon Termination or Form 5310-A, Notice of Plan Merger or Consolidation, Spinoff, or Transfer of Plan Assets or Liabilities; Notice of Qualified Separate Lines of Business are attached to a return or correspondence, detach the application and send to:

    CSPC
    P.O. Box 12192
    Covington, KY 41012–0192

  3. Return Pension Benefit Guaranty Corporation (PBGC) schedules (and attachments) to the following address:

    Pension Benefit Guaranty Corporation
    P.O. Box 64880
    Baltimore, MD 21264–4880

  4. If the form is a Form 3672 (obsolete), Application for Approval of Master or Prototype Defined Contribution Plan for Self-Employed Individuals, Form 3672–A (obsolete), Approval of Master or Prototype Defined Benefit Plan for Self-Employed Individuals, Form 4461, Application for Approval of Master or Prototype or Volume Submitter Defined Contribution Plans, Form 4461–A, Application for Approval of Master or Prototype or Volume Submitter Defined Benefit PlanForm 5306, Application for Approval of Prototype or Employer Sponsored I.R.A or Form 5306 SEP, Application for Approval of Prototype Simplified Employee Pension - SEP, with no notations of National Office action, forward the application to :

    Internal Revenue Service

    Group 7521 Room 5106
    P.O. Box 2508
    Cincinnati, OH 45201-2508
    Attn: Pre-approved Plans Coordinator

  5. Applications shipped by express mail or a delivery service should send to :
    Internal Revenue Service
    Group 7521 Room 5106
    550 Main Street
    Cincinnati, OH 45202-5203
    Attn: Pre-approved Plans Coordinator

  6. Requests for Change in Plan/Trust Year—If an original Form 5308 with neither approval or disapproval is attached to the correspondence, forward using the address in IRM 21.5.11.11(4) above.

  7. If we receive an unprocessed amended Form 5500 series return and there is no penalty abatement case, return to filer. All Form 5500 and Form 5500-SF must be filed electronically.

  8. If we receive correspondence in lieu of an amended return:

    • Research for a posted return.

    • If the research shows a CCC "N" or "I" , look for an open control base to which this correspondence belongs.

    • If an abatement is needed, follow the procedures in IRM 21.5.11.8, Abatement/Adjustments on Form 5500/8955-SSA Accounts.

  9. If we receive a loose schedule in correspondence and it doesn't pertain to a Account Management or TDI issue, use the following chart to determine proper disposition.

    Figure 21.5.11-7

    Routing Form 5500 Correspondence

    Received Route
    Responses to NC letters sent to filers requesting additional information EBSA/Vangent Inc.
    P.O. Box 7045
    Lawrence, KS 66044–7045
    Loose Schedules A, C, D, E, F, G, H, I, R, T, for Form 5500 Destroy
    Loose Schedules B, for Form 5500 received from DOL vendor, EBSA or IRS Destroy
    Loose Schedules B for Form 5500 received directly from filer Return to filer
    Loose Schedules MB or SB, for Form 5500 received from DOL Vendor, EBSA or IRS Destroy
    Loose Schedules MB or SB for Form 5500 or Form 5500-SF received directly from filer Return to Filer
    Loose Schedule P, for Form 5500 Destroy
    Loose Schedule SSA for Form 5500 or Form 8955-SSA Mail Stop 6054
    Form 5500 (received from Field Office, secured return) Return to originator
    Form 5500-EZ Send to Ogden Submission Processing to be processed
    Form 5500 (all others) Return to filer unless it is a copy addressing a penalty issue
    EIN request Entity control, Mail Stop 6273

21.5.11.11.1  (07-01-2015)
Official Denied Form 5500 Appeal Requests

  1. Send all official Form 5500 denied appeal cases to EP Accounts to reconsider.

  2. If the penalty can't be abated upon reconsideration, the SME within the unit prepares the package and sends it to appeals.

21.5.11.12  (07-01-2015)
Reasonable Cause General Guidelines

  1. Reasonable cause is based on all the facts and circumstances in each situation and allows the IRS to provide relief from a penalty that would otherwise be assessed. Generally grant reasonable cause relief when the filer exercises ordinary business care and prudence in determining their filing obligations but is unable to comply with those obligations.

  2. Reasonable cause relief isn't available for all penalties. However, other exceptions may apply. For those penalties where reasonable cause can be considered, consider any reason which establishes that the taxpayer exercised ordinary business care and prudence, but was unable to comply with a prescribed duty within the prescribed time.

  3. When considering the information provided, remember that an acceptable explanation isn't limited to those given in IRM 20.1.1, Introduction and Penalty Relief. Identify on either the closing or adjustment document penalty relief granted because the taxpayer provided an "other acceptable explanation" . The wording used to describe reasonable cause provisions varies.

  4. Reasonable cause requires evidence that the filer acted in good faith or that the filer’s failure to comply with the law wasn't due to willful neglect. Filers have reasonable cause when their conduct justifies the non-assertion or abatement of a penalty.

  5. Judge each case individually based on the facts and circumstances at hand. Determine each case on its own merit. Consider ignorance of the law for reasonable cause only if other facts support this contention.

  6. Don't issue penalty abatement letters for EP customers referencing or stating "based on history of compliance" or similar wording. Make no reference to compliance history.

  7. Reasonable cause doesn't apply to interest abatement. See IRM 20.2.7, Abatement and Suspension of Debit Interest.

  8. Our approach to penalty administration must ensure:

    • Consistency - Apply penalties equally in similar situations. Filers base their perceptions about the fairness of the system on their own experience and the information they receive from the media and others. If we don't administer penalties uniformly (guided by the applicable statutes, regulations, and procedures), we jeopardize overall confidence in the tax system.

    • Accuracy - We must arrive at the correct penalty decision. Accuracy is essential. Erroneous penalty assessments and incorrect calculations confuse taxpayers and misrepresent our overall competency.

    • Impartiality - We're responsible for administering the penalty statutes in a fair and impartial manner to both the government and the filers.

    • Representation - Per Pub 1, Your Rights as a Taxpayer, we must give filers the opportunity to have their interest heard and be able to provide additional documentation for consideration. We need to take an active and objective role in case resolution and also ensure that we clearly communicate and honor taxpayer rights. Every function in the IRS has a role in proper penalty administration. Each function must conduct it's operations with an emphasis on protecting taxpayer rights and promoting voluntary compliance.

  9. Honor Form 3870, Request for Adjustment, as supporting documentation to abate penalties for EP Filings (Form 5500 series & Form 5330) for a Delinquent Secured Return or a Substitute for Return (SFR).

  10. For more information regarding our policy on the use of penalties refer to IRM 1.2.20.1.1, Policy Statements for Penalties and Interest Activities.

  11. For more information regarding reasonable cause, refer to IRM 20.1.1.

21.5.11.13  (07-01-2015)
General Form 5330 Processing

  1. The following subsections contain instructions on processing Form 5330, Return of Excise Taxes Related to Employee Benefit Plans. Forms 5330 process to the BMF. Process Forms 5330 period ending before 198412 on NMF.

    Note:

    Make no new NMF assessments unless the return can't process to the BMF (e.g. quick assessments, period endings before 198412).

  2. Form 5330 reports tax on the following transactions:

    Figure 21.5.11-8

    Form 5330 Section and Definitions

    IRC Section Definition
    IRC 4971 Failure to meet minimum funding standards
    IRC 4971(b) Failure to correct minimum funding
    IRC 4971(f) Tax on failure to pay liquidity shortfall (Plan years beginning after December 31, 1995)
    IRC 4972 Nondeductible employer contributions to qualified plans
    IRC 4973 Excess contributions to IRC Section 403(b)(7)(A) custodial accounts
    IRC 4975 A prohibited transaction occurring after December 31, 1974
    IRC 4976 A disqualified benefit provided by funded welfare plans
    IRC 4977 Excess fringe benefits
    IRC 4978 and IRC 4978A Certain ESOP (Employee Stock Ownership Plan) dispositions
    IRC 4979 Excess contributions to plans with cash or deferred arrangements
    IRC 4979A Prohibited allocations of qualified securities by an ESOP
    IRC 4980 Reversion of qualified plan assets to employers
    IRC 4980F Tax on Failure to provide notice of significant reduction in future accruals
  3. Whether a Form 5330 is assessed on NMF or BMF, a TC 154 on the EPMF indicates that a Form 5330 filing. This information is available from CC EMFOL. (Form 5330 processed before January 2001 should be available from ERTVU; others will be available from BRTVU).

  4. Abatement of tax is sometimes required on Form 5330 (exception- - erroneous IRS assessments).

  5. Find specific instructions for filing Form 5330 on the form itself and the Instructions for Form 5330.

  6. When needing to re-input a Form 5330 due to an IRS error, attach a Form 13133, Expedite Request, to the return before sending it for re-input. Expedite requests are processed on a 6 day cycle.

  7. See the figure below for Form 5330 due dates. For additional information refer to Form 5330 Instructions.

    Figure 21.5.11-9

    Form 5330 Due Date

    Form 5330 Due Dates
    Code
    Sect.
    Due Date
    4971(a) 7th month after the end of the employer’s tax year OR 8 1/1 months after the end of the plan year that ends with or within the tax year.
    4971(F) 7th month after the end of the employer’s tax year OR 81/1 months after the end of the plan year that ends with or within the tax year.
    4971(G)(2) 7th month after the end of the employer’s tax year OR 81/1 months after the end of the plan year that ends with or within the tax year.
    4971(G)(3) 7th month after the end of the employer’s tax year OR 81/1 months after the end of the plan year that ends with or within the tax year.
    4971(G)(4) 7th month after the end of the employer’s tax year OR 81/1 months after the end of the plan year that ends with or within the tax year.
    4972 7th month after the end of the tax year of the employer or other person who must file this return.
    4973 (a)(3) 7th month after the end of the tax year of the employer or other person who must file this return.
    4975 7th month after the end of the tax year of the employer or other person who must file this return.
    4976 7th month after the end of the tax year of the employer or other person who must file this return.
    4977 7th month after the end of the calendar year in which the excess fringe benefits were paid to your employees.
    4978 7th month after the end of the tax year of this employer or other person who must file this return.
    4979 15th month after the close of the plan year to which the excess contributions or excess aggregate contributions relate.
    4979A 7th month after the end of the tax year of the employer or other person who must file this return.
    4980 Month following the month in which the reversion occurred.
    4980(F) Month following the month in which the failure occurred.

    Note:

    If the filing due date falls on a Saturday, Sunday, or legal holiday, the return is due on the next business day.

21.5.11.14  (07-01-2015)
Statute of Limitations

  1. Per IRM 20.2.5.2, Interest on Underpayments, we may assess and collect interest at any time during which the tax to which it relates may be collected. See IRC 6601(g).

  2. Generally, we must collect taxes assessed after November 5, 1990, within 10 years from the tax assessment date. Refer to IRM 25.6.1.12, Collection Statute Expiration (CSED), for additional information on CSED.

  3. With the exception of prohibited transactions, the statute of limitations (SOL) for assessment of taxes expires three years from the due date of the Form 5330 return or the date the return is filed, whichever is later. (See IRC 6501(a) ). A return is deemed filed on the due date of the return if filed on or before its due date.

  4. For Form 5330 filed for IRC 4975 excise tax, the three year statute of limitations for assessment of taxes commences running on the later of the date the related Form 5500 series return is filed or the date due, if the prohibited transaction is sufficiently disclosed (See IRC 6501(l)(1) ). See IRM 4.71.5, Employee Plans Examination of Returns, for assistance in computing statutes under IRC 4975.

  5. The statute of limitations for prohibited transactions extends to six years if the prohibited transaction isn't adequately disclosed.

  6. Other than prohibited transactions the statutory period for assessment of tax is six years from the date the return is filed or deemed filed, whichever is later, in cases of omission of more than 25% of the excise tax due under Subtitle D (Chapters 41 through 44).

  7. BMF automatically calculates a statute of limitations date for prohibited transactions three years from the later of the date the Form 5330 is filed or the due date. However, BMF currently incorrectly calculates the statute of limitations date for prohibited transactions, as there is no linkage to the Form 5500 series return statute date.

  8. Refer to "The statute control procedures" discussed in IRM 4.71.9, Statute Control Procedures, for additional information on statute dates for Form 5330s.

21.5.11.15  (07-01-2015)
NMF Form 5330 Processing

  1. Most Forms 5330 are processed to the BMF. Quick assessments are processed to the NMF. Therefore, some claims for refunds and amended returns, must address the NMF if the original payment or assessment posted to the NMF.

  2. If filer claims a refund on Form 5330 as a result of the payment received with Form 5558 Extension, complete Form 1331-B with appropriate TC and route via Form 3210 to CSPC.

  3. Compare amended Forms 5330 with the original Form 5330, using CFOL where possible, and assess any additional taxes using Form 5734 (or Form 3354). Consider any remittance amount shown in the calculation. Include any interest and penalties that are appropriate. Be certain to use the TIN in Box B for the assessment. It could be either an SSN (for an individual), or an EIN (from a corporation, trust, partnership, exempt organization, or a pension/welfare plan). Handle any reductions in tax or request for refunds as an over assessment in accordance with IRM 21.5.11.7.

  4. Associate the amended return with the original assessment.

21.5.11.16  (07-01-2015)
BMF Form 5330 Processing

  1. Forms 5330 are processed to BMF.

  2. The following section provides procedures for Forms 5330 processed to BMF.

  3. More than one Form 5330 can post to the same Tax Module. The first Form 5330 to post is a TC 150. All subsequent, non-amended Forms 5330 that post to the same EIN/Plan Number/Tax Period will post as a TC 973. The information from these returns is available on CC BMFOL.

  4. An amended return for a Form 5330 must have all four of the elements below be identical. If any one of the elements is different process the return as a subsequent return, TC 973:

    • EIN

    • Period Ending

    • Plan Number

    • Abstract - Tax Section

  5. A true "dup" for a Form 5330 must have all five of the elements below be identical. If any one of the elements is different process the return as a subsequent return or an amended return. Refer to elements for an amended return above.

    • $ amount reported for Excise Tax

    • EIN

    • Period Ending

    • Plan Number

    • Abstract - Tax Section

  6. Adjustments receives the following:

    1. CP 186, Notification of a potential manual interest or penalty adjustment.

    2. CP 190, Generated within four cycles after a coded TC 976 posts to a module which doesn't contain an original return (TC 150).

    3. CP 193, Duplicated Filing Notice.

    4. Late replies to correspondence for missing items which may require abatement of taxes and penalties.

    5. Replies to Balance Due Notices.

    6. Claims for Refunds.

  7. Don't correspond to the filer for supporting documentation that may be missing if the tax due is less than ≡ ≡ ≡ ≡ ≡ ≡ . Accept the return as filed.

21.5.11.16.1  (07-01-2015)
Notification Of A Potential Manual Interest Or Penalty Adjustment (CP186)

  1. This section contains information and procedures related to the CP 186.

    1. A potential manual penalty or interest adjustment occurs when a payment transaction posts to a module and the credit amount is greater than the assessed module balance due amount.

    2. When there is an interest or penalty computation restriction present.

    3. When an account transfers in from the Retention Register with Doc Code 51 or 52.

    4. An additional "CP 186" Notice generates when subsequent credits post and the same situation as above is present. The EP Accounts Unit works all CP 186s that are for Form 5330,, (MFT76).

  2. Some conditions which create restrictions are:

    1. Interest previously was manually assessed (TC 340) or abated (TC 341).

    2. FTP penalty previously was manually assessed (TC 270) or abated (TC 271).

    3. Returns with prior year, ending before January 1, 1970.

    4. Audit or DP tax adjustment (TC 290X or 30X) posted with a 23C date before January 1, 1970.

    5. Any transferred in transaction (Doc. Code 51 or 52 posted).

    6. See IRM 20.2.8, Restricted Interest, for additional reasons an account may need to be restricted.

  3. Analyze the module and take the required action as follows:

    1. If unresolved TC 480 or TC 780 is present on the module, forward to the Offer-in-Compromise File for resolution or routing to the Technical Support function.

    2. If an unreversed TC 520 is on the account, refile any returns associated with notices and destroy the CP 186. When the bankruptcy closes, Technical Support function disposes of any credit.

  4. Request the source document, if needed, to determine the reason for the restriction.

  5. Review the penalty on the original assessment to verify if correct assessments were made.

    1. If the original assessment was incorrect, use the correct figures when resolving the CP 186.

    2. If a previous FTP penalty was abated for reasonable cause (RC 62), don't reassess the amount associated with RC 62.

    3. If the maximum FTP was reached and a TC 971 action code 262 hasn't generated, input TC 971 action code 262.

      Note:

      See IRM 21.7.11, Additional Computer Paragraph Notices and Transcripts, for additional information addressing Manual Interest/Penalty Adjustment.

  6. Review the interest assessed.

    1. See IRM 20.2.6.6, Methods of Computing Interest, for procedures on how to compute interest.

    2. Verify previous restricted interest transactions before recomputing a module. If you are unable to verify the TC 34X/77X amount, secure the adjustment document or case file.

      Note:

      See IRM 20.2.8.3, Interest, for further information.

  7. Input a non-restrictive TC 340 whenever possible. Refer to IRM 20.2.8.11, Restricted Interest, for details.

  8. If additional penalty and/or interest is due, input an adjustment to assess the additional amount. Follow the figure below:

    Figure 21.5.11-10

    Penalty and Interest

    If: Then:
    The available credit is less than the total additional penalty/interest due Assess the total additional penalty/interest. Exception: If the available credit is ≡ ≡ ≡ or less than the additional penalty/interest, assess only the available credit. Refer to IRM 20.2.11.11.1 (5) Under-assessed Debit Interest.
    The available credit is more than the additional penalty/interest Assess only the total additional penalty/interest due. The remaining balance (overpayment) should be released for refund/offset.
    No additional penalty/interest is due Treat the CP 186 as classified waste and, if a credit is present, transfer it to the correct period or input TC 290.00 to release the freeze (HC 3, BLK 15, NSD).
    No other adjustment action is needed Use PC 5 to force the computer assessment of unrestricted interest and/or FTP penalty and issue a balance due notice to the taxpayer. (See IRM 21.5.2, Adjustment Guidelines, for more information on use of PC 5.)

21.5.11.16.2  (07-01-2015)
Amended Return (CP 190) - No Original Posted

  1. CP 190 generates within four cycles after a "G" coded TC 976 Form 5330, return posts to a module which doesn't contain an original return (TC 150).

  2. CP 190 is associated with TC 976 return and forwarded to EP Accounts for resolution.

  3. E- freeze generates along with CP 190. Release the E- freeze before closing CP 190 cases by either posting:

    • TC 971 action code 002

    • TC 150

  4. EP Accounts determines disposition of TC 976 Form 5330,.

    • Check IDRS for an unpostable or rejected TC 150.

    • Analyze return and any attached schedules for possible re-input to another tax period or TIN.

    • If TC 150 posts to account after the CP190 generated, close the base for the CP190 to the DUPF control after it was assigned to an employee. Resolve duplicate filing condition.

    • If further information is needed, call or send the filer a copy of the return using the appropriate C letter. Suspend case for 40 days if corresponding.

21.5.11.16.2.1  (07-01-2015)
TC 976 Return Intended as Original

  1. If TC 976 return needs to be re-input as original, edit and reprocess the return using Form 13596.

  2. Follow instructions in IRM 21.5.2, Adjustment Guideline, when reprocessing documents.

21.5.11.16.2.2  (07-01-2015)
TC 976 Return Posted to Incorrect TIN/Tax Period, Account for Which It Was Intended Contains the Original Return (TC150)

  1. When you determine the TC 976 return was intended for another module which contains the original return, take action on both accounts.

  2. On module from which TC 976 return is moving:

    • Transfer any credits which don't belong on module. (Use TC 570 if needed)

    • Input TC 971 action code 002 to release E- freeze.

  3. On module to which TC 976 return is moving, follow instructions in IRM 21.7.9.4.1.1.1.1, Reprocessing TC 976 Return to Module with TC 150.

21.5.11.16.2.3  (07-01-2015)
TC 976 Return Posted to Incorrect TIN/Tax Period, Account for Which It Was Intended Doesn't Contain an Original Return (TC 150)

  1. If TC 976 return was intended for another module which doesn't contain an original return, take action on both accounts.

  2. On module from which TC 976 return is moving:

    • Transfer any credits which don't belong on module. (Use TC 570 if needed)

    • Input TC 971 action code 002 to release E- freeze. See IRM 21.7.9 for proper input.

  3. On module to which TC 976 return is moving:

    • Use Form 13596 to reprocess return and follow instructions in IRM 21.5.2, Adjustment Guideline Procedures.

    • Input TC 599 cc 18 (if module is in MF Status 02 or 03).

    • Input TC 971 action code 017.

21.5.11.16.2.4  (07-01-2015)
TC 976 Return Posted to Correct Module, Original Return Posted to Incorrect Module

  1. When TC 976 return posts to correct module, but original return intended for that module incorrectly posts to another module, secure the original return on incorrect module.

  2. On module containing original return:

    • Abate tax assessed on incorrect module using appropriate HC.

      Note:

      Also abate penalty and interest if restricted. If penalties and/or interest aren't restricted, those items automatically abate when the tax is corrected.

    • Transfer credits to correct module. (Use TC 570 if needed.)

    • Input TC 971 action code 001.

  3. On module containing TC 976 return:

    • Reprocess either original or amended return as TC 150.

      Note:

      Reprocessing original return to correct account results in a duplicate filing condition. Avoid this by either perfecting and then re-inputting TC 976 return as original return, or by preparing a dummy return with correct tax reported and using the same DLN as TC 976 return. Attach TC 976 return behind dummy return.

21.5.11.16.2.5  (07-01-2015)
TC 976 Return Cannot Be Obtained From Files

  1. When working CP 190, and TC 976 return can't be obtained from Files, follow procedures below:

    • Request a "special search" from files.

    • Correspond (use Letter 418C) or call filer to obtain a copy of original and amended returns.

    • Put case in "M" Status and suspend for 40 days.

  2. If filer doesn't reply and TC 976 return still can't be located, follow the figure below:

    Figure 21.5.11-11

    TC 976 Return Not Located

    If: Then:
    There are no credits on module Input TC 971 action code 002 to release E- freeze.
    There are credits on module which don't belong on any other module (appropriate research must be performed) Prepare a dummy return using DLN of TC 976 return, with a tax liability equal to credits.

    Note:

    Use this procedure ONLY if sufficient information isn't available to process a return as original.

21.5.11.16.3  (07-01-2015)
BMF Duplicate Filing Conditions (CP 193)

  1. This section contains information and procedures related to duplicate filing conditions.

  2. A duplicate filing condition occurs when a return (TC 976) posts to a module already containing a return. Master file generates an A Freeze and a CP 193. The CP 193 is associated with the return and forwarded to Adjustments.

  3. When a return is filed with the amended box checked, or marked "amended" , "corrected" , "supplemental" , "superseding" , etc., Code and Edit inputs CCC "G" . Only EIN, name control, plan number, tax period, received date, condition codes, sponsor EIN, sponsor plan year ending, and CAF indicator get transcribed.

  4. All duplicate filing cases are controlled on IDRS and stay open until action is taken to resolve the case.

21.5.11.16.3.1  (07-01-2015)
Resolving CP 193

  1. Determine and resolve duplicate filing conditions by examining and comparing information on the CP 193 and returns. Use CP 193, duplicate return, CFOL command codes, and original return (secure if needed) to resolve case. Compare the items listed below:

    • Difference in Filer’s entity (names, addresses, TINs, etc.)

    • Tax Periods

    • Plan Numbers

    • DLNs

    • Received dates

    • Signature, title, and signature date

    • Transaction codes

    • Deposits (compare dates and amount)

    • Payment(s) received with return(s)

    • Module balance

  2. Check command codes ENMOD, NAMEB, NAMEI, NAMEE, or INOLE when the TIN is circled out and a new TIN written in.

  3. Some of the most common reasons for filing duplicate or amended returns include:

    • Filer filed a second return to correct erroneous information on the first return.

    • Filer filed an original return but underpaid the tax liability.

    • Filer filed a second return in response to a balance due notice regarding missing payments and penalties.

    • Organization filed a second return attaching missing information requested by the IRS.

21.5.11.16.3.2  (07-01-2015)
Various TC 976 Conditions

  1. If any of the following conditions applies to the TC 976 account, refer to the procedures in IRM 21.7.9:

    • Two returns posted to same account. Correct return posted first. TC 976 belongs on different period or EIN.

    • Reprocessing TC 976 return to module with no TC 150.

    • Reprocessing TC 976 return to module with TC 150.

    • Two returns posted to same account. Incorrect return posted first. TC 976 return is correct return.

    • Reprocessing TC 150 return to module with no TC 150.

    • Reprocessing TC 150 return to module with TC 150.

21.5.11.16.3.3  (07-01-2015)
Amended/Supplemental
Return-Increase

  1. Returns reporting tax increases are sometimes marked as "supplemental" returns. Additional tax is usually paid with the supplemental return.

  2. The filer doesn't always explain why they submitted a second return. Thoroughly research account to determine whether to assess the liability on the second return. Consider such items as:

    • Do the filing/signature dates, liability periods, credits claimed or payment made, relate to any other tax period?

    • Is there any change to the entity information which could indicate a different filer?

    • Are there any open modules for which second return is intended?

    • Is there an indication the second return is in response to previous IRS correspondence?

  3. If the reason for filing the second return isn't clear, you need additional information. Action required:

    1. Request TC 150/976 documents, if needed.

    2. Attempt to contact the filer for additional information.

    3. Document call attempts and any conversations with the taxpayer.

    4. Correspond (generally Letter 418C, Amended/Original Return Unavailable, Copy Requested, or Letter 31C, Duplicate Returns filed; Explanation Requested, with the filer if unable to contact by phone.

    5. If corresponding, suspend for 40 days.

  4. Take the following action after completing research and unable to make a proper determination in the correct resolution of the case, or if you are unable to determine because you receive "no reply" from the filer:

    1. Re-compute tax liability. A tax increase on a supplemental return is increased for the amount of the supplemental return. A tax increase on an amended return is increased for the difference between the original and amended returns.

    2. Math verify the amended return if it is "G" coded and the tax increase is greater than $10.

    3. Compare information on CP 193 with IDRS data. Consider any action which has taken place since the CP 193 generated before adjusting the account.

    4. Increase tax using TC 29X using the appropriate blocking series, abstract numbers, etc. Use blocking series 00 if we secured the TC 150 document. Use blocking series 18 on superseding returns only.

    5. Adjust the penalty and interest if needed.

    6. The interest computation date (INT-COMP-DT) is the return due date of the abstract. If the amended return includes multiple abstracts, then post each one separately.

21.5.11.16.3.4  (07-01-2015)
Amended/Supplemental Return–Decrease

  1. Backup information is required for amended returns filed to decrease tax including an explanation of why the tax should be decreased.

  2. Take the following actions on cases requesting a tax decrease:

    1. Re-compute the tax liability.

    2. Compare information on the CP 193 with IDRS data. Consider any action which has taken place since the CP 193 generated before adjusting the account.

    3. Decrease tax with TC 29X using the appropriate blocking series, abstract numbers, etc.

    4. Adjust penalty and interest if needed. If penalties and interest aren't restricted, the account automatically corrects when the tax is corrected.

    5. The interest computation date (INT-COMP-DT) is the return due date of the abstract. If the amended return includes multiple abstracts, then post each one separately.

21.5.11.16.3.5  (07-01-2015)
Resolving True Duplicate

  1. A true duplicate condition occurs when a filer files two returns for the same tax period, abstract number, plan number, and tax with the same information on both returns and no tax change is required. Review all attached schedules for any changes.

  2. Do the following:

    1. Analyze the account date and both returns (if original is needed to resolve case) to verify they are true duplicates.

    2. Input TC 290 zero in appropriate blocking series to release -A freeze. Use duplicate return for source document.

      Note:

      If module balance is in a credit status, also use Hold Code 3 to prevent an adjustment notice from generating.

    3. Staple CP 193 to duplicate return.

      Note:

      If we secured the original return, staple duplicate return behind original and use blocking series 00.

21.5.11.16.3.6  (07-01-2015)
CP193 Received Without Duplicate Return

  1. When a CP 193 is received without the duplicate return, attempt to determine if it is a true duplicate using CC BMFOL"R."

    Note:

    CC BRTVU isn't available for Form 5330, (MFT 76).

    Figure 21.5.11-12

    CP 193 Received Without Duplicate Return

    If: Then:
    The return proves to be a true duplicate Input TC 290.00 in BS 10/15 (unless original return is attached) and note in the Remarks portion of adjustment document " True Dup"
    You can't determine the return is a true duplicate Request return from Files.
  2. When unable to secure a return from files after the first attempts or within 14 days:

    • Send letter 418C to organization to request a copy. (You may also contact the organization by phone to obtain a copy.)

    • Suspend case for 40 days.

  3. If there is no reply and:

    Figure 21.5.11-13

    No Reply to CP 193

    If: Then:
    A payment came in with duplicate return
    1. Assess tax equal to payment amount.

    2. Determine reason for additional excess credit if module credit balance is in excess of payment submitted with return,.

    3. Resolve any misapplied payments or other module freeze conditions before making assessment.

    Information isn't available to determine adjustment needed and no payment came in with duplicate return Input TC 290.00 to release the -A freeze.

21.5.11.16.4  (07-01-2015)
Reprocessing Returns

  1. When reprocessing a return, use Form 13596.

  2. When reprocessing a dummy return in lieu of original or duplicate return, use the same received date as the original or duplicate, respectively.

  3. Input TC 971 with the appropriate action code to the incorrect module (to identify cross reference TIN/Plan number/Tax period data) whenever an original or amended/duplicate return posted to an incorrect TIN/Plan number/Tax period and reprocessing to correct the module. See IRM 21 for valid TC 971 action codes.

  4. Input TC 290 zero to release the freeze.

21.5.11.16.4.1  (07-01-2015)
Reprocessing Secured Returns

  1. If the return was secured by TE/GE and needs reprocessing, follow the following steps:

    • Request return from files.

    • If return isn't received from files after the first attempt or 14 days, try and obtain a copy from the agent, and process the copy as an original, use the same received date as the original.

  2. If unable to obtain a copy from the agent prepare a dummy return and reprocess in lieu of original, use the same received date as the original.

  3. If the return was originally secured by a TEGE EP Exam office, ensure that the copy you send over for reprocessing is clearly marked "Secured by TEGE EP Exam."

  4. Send all reprocessed returns to the campus as an expedite request.

21.5.11.16.5  (07-01-2015)
Two Returns Posted to Same Module
TC 976 Posted to an Incorrect Module

  1. If TC 976 return posted to an incorrect module, use IDRS and CFOL command codes to determine the account to which to reprocess it.

  2. If a TC 150 exists on the correct module:

    1. Input TC 971 with action code 017 using CC REQ77 and make any required adjustment to the correct TIN/Plan number/Tax Period. Use appropriate blocking series, hold codes, etc.

    2. Transfer any credits which don't belong and input TC 971 with action code 002 using CC REQ77 on the incorrect module. Input TC 290 zero (use appropriate hold code) to release the freeze.

  3. If no TC 150 exists on the correct module:

    1. Prepare Form 13596 to reprocess the TC 976 to the correct module.

    2. Input TC 599 with closing code 18 using CC FRM49 and a TC 971 with action code 017 using CC REQ77 on the correct module.

    3. Transfer any credits which don't belong and input TC 971 with action code 002 using CC REQ77 on the incorrect module. Input TC 290 zero (use appropriate hold code) to release the freeze.

21.5.11.16.6  (07-01-2015)
Two Returns Posted to Same Module, Incorrect Return Posted First

  1. When you determine the TC 150 return posted to an incorrect module, use IDRS and CFOL command codes to determine the module to which it should be processed.

  2. If a TC 150 exists on the correct module:

    1. Input TC 971 with action code 17 using CC REQ77 and make any required adjustment to the correct TIN/Plan number/Tax Period. Use appropriate blocking series, hold codes, etc.

    2. Transfer any credits which don't belong and input TC 971 with action code 001 using CC REQ77 on the incorrect module. Input TC 29X and make any required adjustment and release the freeze.

  3. If no TC 150 exists on the correct module:

    1. Prepare Form 13596 to reprocess the TC 976 to the correct module.

    2. Input TC 599 with closing code 18 using CC FRM49 and a TC 971 with action code 17 using CC REQ77 on the correct module.

    3. Transfer any credits which don't belong and input TC 971 with action code 01 using CC REQ77 on the incorrect module. Input TC 29X and make any required adjustment and release the freeze. Use appropriate blocking series, hold codes, etc.

21.5.11.16.7  (07-01-2015)
Shipment of Source Documents

  1. Return documents (in separate folders labeled by type) to Campus Files within 7 workdays of input.

  2. Mail/route source documents immediately after Quality Review is complete. If retaining the source document beyond three (3) workdays for completion of certain ADJ54 transaction cases, input "R" in the remarks field of the input screen. Notify the Files Management Unit immediately of any anticipated shipment delays.

  3. Route all adjustment documents to Files marked Attn.: Files Management Unit. Complete Form 4442, Inquiry Referral or Form 8485, Assessment Adjustment Case Record. Include the IDRS sequence number in the top right corner before placing the documents in the employee folder.

  4. Prepare separate adjustment folders for each date and type of input. Label the outside of each folder as follows:

    1. IDRS number

    2. Date

    3. Category of source documents

    4. Sequence numbers (e.g., 01–14QR), and

    5. Release date (e.g., September 30, 2014)

      Reminder:

      Local procedures may impose additional or alternate requirements.

  5. Prepare a separate folder for ADJ54 case actions. Date and sequentially number (legibly and readily available for Files to recognize) the Form 8485 or other worksheets used to notate the case and account actions taken. This helps Files maintain the integrity of the cases. Place other transactions, e.g., credit transfers, in a separate "Other Documents" folder and ship to Files daily.

  6. Remember to insert your source documents into your folder as soon as you complete the IDRS account adjustment. If you forget to insert a document into the folder don't throw it away. Obtain the DLN and send to Files for association with your case file. If the source document isn't included in your folder the Files Management Unit may contact you requesting the document.

  7. For additional information refer to IRM 21.5.2.

21.5.11.17  (07-01-2015)
Transcript Processing

  1. This section contains instructions on resolving cases generated from other types of transcripts.

21.5.11.17.1  (07-01-2015)
–E Freeze/Debit Offset In

  1. The "– E Freeze" (released after 10 cycles) indicates an FTD discrepancy in the BMF debit module which generates a balance-due notice. The " – E Freeze" module can contain debit balance modules resulting from posting of transactions subsequent to original return processing.

  2. Subsequent transactions can be any combination or separate posting of tax, penalty, interest, or credit reversals which result in the module going from zero or credit balance to a debit balance, or from a debit balance to a greater debit balance.

    1. The module balance before posting of the subsequent transaction can be zero, debit, or credit.

    2. The module balance after posting of the subsequent transaction must be a debit.

    3. The account can't have a module currently in TDA Status 22, 23, 24, or 26 or have had a module close from TDA Status in the previous 12 months.

  3. The "– E Freeze," under the subsequent transaction criteria, releases if:

    1. The 10 cycle freeze expires. (If all other criteria are met, the 10 cycle freeze resets based on the most current subsequent transaction posting.)

    2. The module reaches zero or credit status.

    3. The account/module reaches TDA status.

  4. The system issues the appropriate notice based on posting of the subsequent transaction(s) if a notice otherwise would have been issued.

  5. Research "MF/NMF" for credits. Transfer credits appropriately (ADD24 on NMF and ADD34 on MF ).

    Note:

    If a TC 973 is on the account, order the TC 973. Manually compute penalty and interest.

21.5.11.17.2  (07-01-2015)
NOMRG Transcripts

  1. Merge fail transcripts (NOMRG) are computer generated when plan data account consolidation fails.

  2. Each campus determines the area(s) where to resolve EP NOMRG.

  3. These transcripts generate when an invalid condition exists in the account of the old and/or new plan data module. Each transcript has a title and a code to indicate the invalid condition. These titles and codes are similar to those on the Entity Merge Fail transcripts.

  4. Before resolving the merge fail condition:

    • Always check for transcription errors. Request complete transcripts which involve the plan data module.

    • Follow the procedures in IRM 3.13.36. EPMF Account Numbers, because these transcripts involve the plan data module.

21.5.11.17.3  (07-01-2015)
AM12 Resolution

  1. Refer to IRM 21.2.4, Master file Accounts Maintenance, for complete resolution to AM12 transcript.

  2. To resolve transcripts where the TC 610 posted, but the related tax return didn't post, perform complete research.

    Example:

    Research SCCF to determine return status.

  3. Send correspondence to the filer, requesting a signed copy of a return, if needed.

  4. If you receive no response after 45 days, and you conducted complete research, take the following actions:

    • If unable to secure a copy of the return and a TC 610 is or isn't posted in the module, leave credit on master file and close case as "NO REPLY."

    • AM12 follow-up transcripts are suppressed. Notice CP 80, We have Not Received Your Tax Return, goes out to the filer.

    Note:

    Don't close your case until you complete research to locate the return.

21.5.11.17.4  (07-01-2015)
Form 5330/5500 Accounts Maintenance Transcripts

  1. The transcripts replace the Credit/Debit Listing that is accessible on Control - D. They are formatted the same as existing AMRH transcripts and are referred to as:

    • AM 31 - Form 5330, or 5500 credit balance

    • AM 32 - Form 5330, or 5500 debit balance

  2. Work credit transcripts within 30 days to prevent erroneous notices.

  3. If the transcript is a "Follow-up" or a "Multiple" , the letter "F" or "M" prints to the right of the AMRH 31 or 32. See below:

    • TRANSCRIPT TYPE AMRH 31 F

    • TRANSCRIPT TYPE AMRH 32 F

    • TRANSCRIPT TYPE AMRH 31M

    • TRANSCRIPT TYPE AMRH 32 M

    • TRANSCRIPT TYPE AMRH 31FM

    • TRANSCRIPT TYPE AMRH 32FM

  4. Research to determine if applicable extension was filed. If an approved extension is located for the tax period, abate or adjust the penalty as needed.

  5. A transcript generates six weeks after the first cycle in which the tax module has a credit or debit balance. Follow-up transcripts are issued every six months (26 cycles) for as long as the tax module still meets the established criteria.

  6. A transcript generates for each Form 5330, or 5500 module in either a credit or debit balance. The AMRH transcript records the following information:

    • Transaction date

    • EIN, MFT, & Tax Period

    • Plan Number

    • TC 150 DLN

    • Module balance

  7. Refer to the procedures outlined below for resolving Form 5330, or Form 5500 AM Credit/Debit Transcripts.

  8. In addition to the specific instructions below, see the following If and Then tables for procedures when working AMRH transcripts:

    Figure 21.5.11-14

    AMRH Transcript Procedures for Forms 5330 (MFT 76)

    IF: Then:
    TC 973 with -I freeze
    • Manually update interest to 23C date.

    • Verify the prior interest is correct.

    • Use the abstract return due date as the INT-COMP-DT.

    • If the account no longer needs to be restricted, input a non-restricting TC 340. See IRM 20.2.8, Restricted Interest, for more information.

    TC 973 with no -I freeze Input TC 290, PC 5 (Computer adjusts the interest and sends notice).
    TC 973 with no -I freeze and TC 530 Close transcript as "No Action" or Input TC 290, Hold Code (HC) 3, PC 5.
    No TC 973 with -I freeze Input a non-restricting TC 340 Priority Code (PC) 5 (Computer adjusts the interest and sends notice) or manually compute interest.

    Note:

    If a TC 340 was input before November, 2012, don't input a TC 342 to release the restriction. The account must remain restricted. Accounts containing interest computation date errors should also remain restricted. You can also input a non-restricted TC 340. See IRM 20.2.8 for more information.

    Interest assessed within 45 days from new transcript. Close transcript as "Previous Action" or "No Action"
    Account has a -V (Bankruptcy) or -W (OIC or Litigations) freeze Close transcript as No Action.
    No TC 973 with and no -I freeze Input TC 290, PC 5 (Computer will adjust the interest and send notice).

    Note:

    Input an interest computation date when adjusting MFT 76. When posting a tax adjustment, the interest computation date is the due date of the tax liability. When posting a penalty adjustment, the interest computation date entered is the interest start date on the penalty. See IRM 20.2.5.3, Interest on Penalties and Additions to Tax, for further information on penalty start dates.

  9. When computing tax, penalty and interest refer to IRM 20.2.6.8 (2), Interest - Methods of Computing Interest. Apply payments on a balance due module to the return with the most imminent CSED first.

  10. Refer to the table below to resolve Form 5500 transcripts:

    Figure 21.5.11-15

    Form 5500 Transcripts

    If: Then:
    Account not worked within 45 days Input a TC 290 for zero priority code 5. Computer adjusts interest and issues a penalty notice.
    Interest assessed within 45 days from new transcript. Close transcript as "Previous Action" or "No Action"
    Account has a -V (Bankruptcy) or -W (OIC or Litigations) freeze Close transcript as "No Action "

21.5.11.17.5  (07-01-2015)
Form 5330 AM 31 Transcript Procedures Credit Module Balance

  1. Refer to the procedures below to resolve Form 5330, AM 31 transcripts. Secure the original return from files if needed in order to determine the correct liability amount (TC 150).

  2. Verify the green rocker money amount shown on the return matches the TC 610 payment posted to MF.

  3. Determine the correct TC 150 amount. One check may have come in for more than one tax and the tax may have been split on a separate Form 5330,, during processing.

  4. Adjust the TC 150 amount if applicable by inputting a TC 290 increase via REQ54 for the appropriate money amount using the applicable HC (3 or 4).

  5. If the overpayment belongs to a different plan number, tax period, or EIN, transfer the payment to the correct account using CC ADD/ADC 24. Don't correspond with the filer.

  6. If you can't resolve the credit module balance using the procedures above or a balance remains after taking the above steps, refer to the table below:

    Figure 21.5.11-16

    Additional Procedures to Resolve Credit

    If: And: Then:
    The account is in a credit status Basic IDRS research determines where to transfer the payment Transfer the payment to the applicable module using CC ADD/ADC 24, or Form 2424 if applicable
      You can't determine additional credit application through basic IDRS research
    • Call the filer. Make two attempts during regular business hours.

    • If unable to contact by phone, send a letter to the filer explaining account status. Print a copy of letter for the case file. Suspend case for 45 days (30 day response time)

    • If filer responds to the letter with additional information, follow their instructions

    • If no reply to the correspondence, transfer credit to Excess Collections (XSF-6800 Account)

    Account is in a credit status Additional credit application cannot be determined through basic IDRS research and payment is a TC 610 Close as "no reply" .
  7. If the filer states they overpaid the account by submitting duplicate payments and requests the excess credit be refunded, instruct the filer to submit a request to have the money refunded.

21.5.11.17.6  (07-01-2015)
Form 5330 AM 32 Debit Module Transcript

  1. Refer to the following procedures when attempting to resolve a Form 5330,, debit module balance. Secure the original return from Files (two attempts) before taking the following action.

    Note:

    If the debit balance is from a prior Credit/Debit listing or AMRH 32 Transcript ) and all required actions occurred, input another TC 290 for zero priority code 5. This generates a CP161 notice to the filer.

    Figure 21.5.11-17

    Form 5330 Debit Module Balance Procedures

    If: And: Then:
    A green rocker is present on the return You can't locate the payment through basic IDRS research Refer to Payment Tracer procedures
    A green rocker isn't present on return You can't locate the payment through basic IDRS research Input a TC 290 for zero using priority code 5 to generate a notice to the filer.
  2. If we receive a response from the filer indicating that he/she will submit a payment, refer to the procedures in the figure below:

    Figure 21.5.11-18

    Responses Received

    If: Then:
    The filer states he/she will submit a payment
    • Instruct the filer to send payment and copy of the letter to the following address:
      Internal Revenue Service
      1973 Rulon White Blvd
      Ogden, UT 84404

    • Input a history item to note the expected date of payment on DI/AMS and TXMODA.

    • Close control base on IDRS, monitor account until the payment posts to MF.

21.5.11.17.7  (07-01-2015)
Form 5500 AM 31 Transcript Procedures Credit Module Balance

  1. If the overpayment belongs to a different plan number, tax period, or EIN, transfer the payment to the correct account using CC ADD/ADC 24. Don't correspond with the filer.

  2. Research to determine if the filer submitted the payment as a prepayment to the penalty. If research shows it was a prepayment, follow procedures for Form 5500 penalty assessments.

  3. If you can't resolve the credit module balance using the procedures above or a balance remains after taking the above steps, refer to the figure below:

    Figure 21.5.11-19

    Form 5500 Credit Additional Procedures

    If: And: Then:
    The account is in a credit status Basic IDRS research determines where to transfer the payment Transfer the payment to the applicable module using CC ADD/ADC 24, or Form 2424 if applicable
      You can't determine the additional credit application through basic IDRS research
    • Call the filer. Make two attempts during regular business hours.

    • If unable to contact by phone send a letter to the filer explaining account status. Print a copy of letter for the case file, Suspend case for 45 days (30 day response time)

    • If filer responds to the letter with additional information, follow their instructions

    • If no reply to the correspondence, transfer credit to Excess Collections (XSF-6800 Account)

  4. If the filer states they overpaid the account by submitting duplicate payments and requests the excess credit be refunded, instruct the filer to submit a request refund the money.

21.5.11.17.8  (07-01-2015)
Form 5500 AM 32 Transcript Procedures Debit Module Balance

  1. If a module was previously fully paid within the payment grace period (21 calendar days if under $100,000 or 10 business days if $100,000 or more), input a TC 340 for zero to stop accruals from posting and prevent notices from being issued.

  2. If thodue balance on the account is ≡ ≡ ≡ ≡ ≡ or less and on BMFOLT, input a TC 340 for zero, hold code 3 and payment date. This removes the balance and stops future transcripts from generating.

  3. If the balance on the account is ≡ ≡ or less and on TXMOD, input a TC 341 with money amount, hold code 3 and payment date. This removes the balance and stops future transcripts from generating.

21.5.11.18  (07-01-2015)
Transferring Excess Credit

  1. When research determines that the overpayment doesn't belong to the Form(s) 5330, or 5500 module, or the filer doesn't respond to our correspondence, transfer the excess credit(s) to either the Unidentified Remittance File (URF - 4620 Account) or Excess Collection File (XSF-6800 Account). Prepare Form 2424 (payment date 11 months or less) and/or Form 8758 (payment date is older than 11 months).

    Note:

    If credit is less than $1, transfer the credit to 6540 account for both MFT 74 and MFT 76. See IRM 3.17.10.3.4(3).

  2. Credit(s) previously applied to MF from the 6400 Account require two credit transfers. Prepare Form 2424 in duplicate, and Form 8758. Use Form 2424 to transfer the credit back to the 6400 Account and use Form 8758 to transfer the credit from the 6400 Account to either URF or XSF.

  3. Prepare a separate Form 2424, in duplicate, and/or a Form 8758 for each credit awaiting a transfer. Credits remain in URF until the payment date reaches one year old. It then automatically drops from URF to XSF. Unpaid credits remain on IDRS in XSF for 7 years after the XSF entry date.

    Figure 21.5.11-20

    Transferring Excess Credit

    If: Then:
    The credit is 11 months old or less
    • Prepare two Forms 2424, in duplicate

    • Attach supporting documentation to both sets of Form 2424

    • Route all forms to appropriate mail stop.

    The credit is 11 months but less than 12 Suspense the case until it is 12 months old to avoid rejection of forms.
    The credit is 12 months old or older
    • Prepare Form 2424 in duplicate to transfer the credit from MF to the 6400 Account.

    • Prepare Form 8758 to transfer credit from 6400 Account to 6800 Account.

    • Attach supporting documentation.

    • Route all forms to appropriate mail stop.

  4. For additional information refer to IRM 3.17.220, Excess Collection File and IRM 3.17.10, Revenue Receipts.

21.5.11.19  (07-01-2015)
Form 5330 Missing Payment Research

  1. A payment tracer is the process used to locate a missing or misapplied payment made by a filer or organization. To resolve a payment tracer case, correctly apply the missing or misapplied payment to the organization’s account. Refer to IRM 21.5.7, Payment Tracers for specific guidelines.

21.5.11.19.1  (07-01-2015)
IDRS Research for Payments

  1. Search for payment on IDRS and CFOL. Refer to Document 6209, IRM 2.3, IDRS Terminal Responses, and IRM 2.4, IDRS Terminal Input, for information on displaying and using IDRS/CFOL information.

  2. Use CC NAMEI, NAMEB, to obtain TIN information.

  3. Use all appropriate IDRS/CFOL command codes to search for a payment, see examples below:

    • SUMRY, TXMOD, to check for possible misapplied payments

    • IMFOL, BMFOL, if no open TXMODs, or for the possibility the payment was made at another campus

    • INOLET, INOLEX, to check all related TINs, valid or invalid, provided by filer

    • URINQ, to research unidentified remittances

    • XSINQ, to research excess collections

    • SCFTR, Service Center Control File

    • UPTIN, to check open and closed unpostables for a specific TIN

  4. Phone or fax filer for information needed to resolve the case, at least two attempts. If unable to contact the filer, use the appropriate "C" letter.

21.5.11.20  (07-01-2015)
Form 5330 Claim For Refund

  1. The appropriate TE/GE appointed office handles:

    1. TE/GE claims on Form 843

    2. Amended TE/GE returns requesting a refund of an amount previously paid or assessed

    3. Any other document sufficiently detailed to be treated as either of the above

    Note:

    Campus personnel won't generate over assessment transactions on TE/GE returns unless directed or requested by local TE/GE offices.

    Exception:

    Math errors or IRS campus errors.

  2. TE/GE returns subject to this procedure are:

    • Forms 5500 and 5500 - C (EPMF).

    • Forms 5500 - EZ and 5500 - R (EPMF).

    • Forms 5330,, (NMF).

    • Form 5330,, (BMF)

  3. Forward all Form 5330, claims for refund, via Form 3210, to OAMC - EP Accounts Mail Stop 6270.

  4. EP Accounts Unit screens TE/GE claims to ensure that a specific return was filed with payment of an amount at least equal to the amount claimed. Attach all research to the claim form, amended return, or correspondence. Obtain the original return (if pre-EFAST or Form 5330, ), recharge it to the Area Office, and also attach it to the claim form, amended return, or correspondence. If the original return involved was processed as a NMF return (for example, Form 5330), secure a copy of the index card and NMF Transcript (if available) and attach it to the claim documents. Establish on AIMS and forward the entire package to the TE/GE program analyst with oversight of project, Mail Stop 1110 using Form 12634.

  5. For all IRS offices, other agencies or filers who are sending items through a vendor (other than the U.S. Postal Service), use the following address:

    Ogden IRS Campus
    Attn.: Claim For Refund - Form 5330
    Mail Stop 6270
    1973 North Rulon White Blvd.
    Ogden, Utah 84404

  6. For filers or anyone sending the information through the U.S. Postal Service, use the following address:

    Note:

    Use the 84201 zip code with this address.

    Internal Revenue Service
    Mail Stop 6270
    Attn: Claim for Refund - Form 5330
    Ogden, Utah 84201

  7. If a filer files an amended Form 5330 return to claim a refund or credit, the claim "must" state in detail the reasons for claiming the refund, and provide the appropriate supporting evidence. See 26 CFR 301.6402-2 for more details.

    Note:

    Don't correspond with the filer for supporting documentation that may be missing if the tax due is less than ≡ ≡ ≡ ≡ ≡ , accept the return as filed.

  8. OAMC works Form 5330, claims listed below:

    • IRC 4975 - Prohibited Transactions - Abstract 159

    • IRC 4971 - Minimum Funding Deficiencies - Abstract 163

    • IRC 4980 - Reversions - Abstract 204

  9. The EP classifier in the field considers/disallows the following claims for the Form 5330:

    • IRC 4972 - Tax on Nondeductible Employer Contribution to Qualified Plans

    • IRC 4973 - Tax on Excess Contributions to IRC 403(b)(7)(A) Custodial Accounts

    • IRC 4976 - Tax on Disqualified Benefits for Funded Welfare Plans

    • IRC 4978 - Tax on Certain ESOP Dispositions

    • IRC 4979 - Tax on Certain Prohibited Allocations for Qualified ESOP Securities

    • IRC 4977 - Tax on Excess Fringe Benefits

    • IRC 4980F - Tax on Failure to Provide Notice of Significant Reduction in Future Accruals

    • IRC 4971(f) - Tax on Failure to Pay Liquidity Shortfall

    • IRC 4971(g) (2) - Tax on failure to comply with a funding improvement or rehabilitation plan

    • IRC 4971(g) (3) - Tax on failure to meet requirements for plans in endangered or critical status.

    • IRC 4971(g)(4) - Tax on failure to adopt rehabilitation plan.

    • IRC 4965 - (Abstract 237) Prohibited Tax Shelter Transaction for Entity Managers

21.5.11.20.1  (07-01-2015)
Statute of Limitations for Claims

  1. According to IRC 6511(a), a claim for credit or refund, penalties and interest previously paid must be filed by the later of:

    • Three years from the original return filing date.

    • Two years from the tax payment date of TC 610, 650 or 670 and 2 years from the cycle date of TC 700, 706, 730, 736 or if a 6603 deposit/cash bond, two years from the date the deposit/bond is converted to a payment of tax..

  2. In the case of a claim filed within the three year period, the amount to be credited or refunded is limited to the tax paid during the three years immediately preceding the filing of the claim, plus the period of any extension of time to file. IRC 6511(b)(2)(A).

  3. In the case of a claim filed within the two year period, the amount is limited to the portion of tax, penalties or interest paid during the two years immediately preceding the filing of the claim. IRC 6511(b)(2)(B).

  4. The filing of a claim for refund keeps the statute open only with respect to the item(s) described in the claim. Generally consider a supplemental claim filed after the expiration of the statute that requires the investigation of facts or legal positions that wouldn't have been disclosed by the investigation of the original claim as an untimely new claim.

  5. A consent to extend the statute of limitations on assessment (e.g., the IRS and the filer sign a Form 872, Consent to Extend the Time to Assess Tax), extends the statute of limitations for claiming a credit or refund to six months after the expiration of the assessment period. IRC 6511(c). If the filer and the IRS executed a restricted consent, the filers ability to claim a credit or refund during the extended period of limitation on assessments is limited to the same item(s) covered by the restricted consent.

  6. The statute of limitations for claiming a credit or refund may be extended by agreement only by the execution of a consent to extend the statute of limitations on assessment on or before the expiration of the assessment period.

  7. The general period of limitations on claims for credit or refund is suspended during the period that an individual is "financially disabled." IRC 6511(h). Financially disabled means being unable to manage financial affairs. The inability must be due to a medically determinable mental or physical impairment. The impairment must have one of the following affects:

    • Expected to result in death.

    • Already lasted for a continuous period of not less than 12 months.

    • Expected to last for a continuous period of not less than 12 months.

  8. The filer must submit proof of the medically-determined impairment with the filer’s claim for credit or refund. The procedures for the submission are in Rev. Proc. 99-21, 1999-1 C.B. 960 (or its successor). The period doesn't include the time in which the filers spouse or any other person is authorized to act on behalf of the filer in financial matters (e.g., a guardian).


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