21.6.2 Adjusting TIN-Related Problems

Manual Transmittal

August 24, 2017

Purpose

(1) This transmits revised IRM 21.6.2, Individual Tax Returns, Adjusting TIN-Related Problems.

Material Changes

(1) Various editorial changes were made throughout this IRM and cross-references were added, removed or revised as appropriate.

(2) IPU 17U0831 issued 05-10-2017 IRM 21.6.2.1 through 21.6.2.1.5 added Internal Control.

(3) IRM 21.6.2.1.1 added Background.

(4) IRM 21.6.2.1.2 updated link for Authorities.

(5) IRM 21.6.2.1.3 updated who is responsible for policy in this IRM.

(6) IRM 21.6.2.1.4 updated title and moved Program Controls.

(7) IRM 21.6.2.1.5 new section for Program Controls.

(8) IRM 21.6.2.1.6 added list of acronyms.

(9) IRM 21.6.2.1.7 added Taxpayer Bill of Rights link and other related resources.

(10) IRM 21.6.2.2 added TAS Referral link.

(11) IPU 17U0831 issued 05-10-2017 IRM 21.6.2.2 Clarified TIN Related Problems.

(12) IPU 17U0995 issued 06-13-2017 IRM 21.6.2.2 Added links.

(13) IRM 21.6.2.3 added link to RTS Status Codes.

(14) IPU 17U0742 issued 04-26-2017 IRM 21.6.2.3 Multiple claims from the same taxpayer should be worked by the same employee.

(15) IPU 17U0831 issued 05-10-2017 IRM 21.6.2.3 Clarified TIN Related Problem Research.

(16) IPU 17U0995 issued 06-13-2017 IRM 21.6.2.3 Added link.

(17) IRM 21.6.2.3.1 clarified TC 898 NOMRG condition.

(18) IPU 17U0831 issued 05-10-2017 IRM 21.6.2.3.1 Moved NOMRG conditions.

(19) IPU 17U0995 issued 06-13-2017 IRM 21.6.2.3.1 Update NOMRG conditions.

(20) IRM 21.6.2.4.1 added if the transaction is being input to resequence an account, input only once.

(21) IPU 17U0742 issued 04-26-2017 IRM 21.6.2.4.1 Updated links.

(22) IPU 17U0831 issued 05-10-2017 IRM 21.6.2.4.1 Added links for transaction code procedures.

(23) IPU 17U0850 issued 05-15-2017 IRM 21.6.2.4.1 Update link to NOMRG Conditions.

(24) IPU 17U0995 issued 06-13-2017 IRM 21.6.2.4.1 Clarified use of TC 040 and TC 041.

(25) IPU 16U1738 issued 12-12-2016 IRM 21.6.2.4.1.1 Corrected link.

(26) IPU 17U0424 issued 03-03-2017 IRM 21.6.2.4.1.1 Renamed section to "Resequencing Methods" and moved guidance previously in this section to 21.6.2.4.1.3.

(27) IPU 17U0424 issued 03-03-2017 IRM 21.6.2.4.1.2 Removed reference to "1" on invalid spouse’s TIN.

(28) IPU 17U0995 issued 06-13-2017 IRM 21.6.2.4.1.2 Added information on Quarterly DM-1 updates.

(29) IRM 21.6.2.4.1.3 added research for NOMRG conditions before resequencing an account.

(30) IPU 17U0424 issued 03-03-2017 IRM 21.6.2.4.1.3(2) Clarified instructions and provided link to guidelines for determining appropriate referral of Form 4442.

(31) IPU 17U0424 issued 03-03-2017 IRM 21.6.2.4.1.3 Removed Note referencing section 21.6.2.4.1.1 and IRM 3.13.5.79.11. Removed bullet referencing IRM 3.21.263.7.4. Added guidance previously removed from section 21.6.2.4.1.1.

(32) IPU 17U0742 issued 04-26-2017 IRM 21.6.2.4.1.3 - Clarified input of Resequencing Transactions and NOMRG procedures for Telephone Assistors and Reinstatement of lower level modules.

(33) IPU 17U0831 issued 05-10-2017 IRM 21.6.2.4.1.3 Clarified reinstatement of retention modules.

(34) IPU 17U0831 issued 05-10-2017 IRM 21.6.2.4.1.4 Clarified reassignment of NOMRG cases.

(35) IPU 17U0995 issued 06-13-2017 IRM 21.6.2.4.1.4 Clarified reassignment procedures.

(36) IPU 17U0424 issued 03-03-2017 IRM 21.6.2.4.2.6(13) Note Added link to the Accounts Management Site Specialization Temporary Holding Numbers.

(37) IPU 17U0424 issued 03-03-2017 IRM 21.6.2.4.2.7(17) Added sentence to include the scanning of Form 3857 to CIS cases.

(38) IPU 17U0424 issued 03-03-2017 IRM 21.6.2.4.2.8 Corrected Atlanta Service Center stop number.

(39) IRM 21.6.2.4.3 Toll Free Assistors and TAC Employees should take no account actions on NOMRG accounts.

(40) IPU 17U0995 issued 06-13-2017 IRM 21.6.2.4.3 Clarified NOMRG procedures.

(41) IRM 21.6.2.4.3.2 Added instructions for when ASED is expired.

(42) IPU 17U0995 issued 06-13-2017 IRM 21.6.2.4.3.2 through IRM 21.6.2.4.3.7 Clarified NOMRG procedures.

(43) IPU 17U0995 issued 06-13-2017 IRM 21.6.2.4.3.12 Removed NOMRG 898 Transcript and added UPC 134-3 to IRM 21.6.2.4.3.17.

(44) IPU 17U0995 issued 06-13-2017 IRM 21.6.2.4.3.13 Added link.

(45) IPU 17U0995 issued 06-13-2017 IRM 21.6.2.4.3.14 Clarified procedures.

(46) IPU 17U0995 issued 06-13-2017 IRM 21.6.2.4.3.17 Added UPC 134-3. .

(47) IPU 17U0995 issued 06-13-2017 IRM 21.6.2.4.4 Clarified procedures.

(48) IPU 17U0995 issued 06-13-2017 IRM 21.6.2.4.4.1 Clarified procedures.

(49) IRM 21.6.2.4.4.13 Reassign REVALXXSSN Transcript as SCRM.

(50) IPU 17U0424 issued 03-03-2017 IRM 21.6.2.4.5 Added new section, Telephone Inquiries Regarding Mixed Entity and Scrambled SSN Cases.

Effect on Other Documents

IRM 21.6.2, Individual Tax Returns, Adjusting TIN-Related Problems, dated September 14, 2016 (effective October 1, 2016) is superseded. This includes IPUs 16U1738 issued 12-12-2016, 17U0424 issued 03-03-2017, 17U0742 issued 04-26-2017, 17U0831 issued 05-10-2017, 17U0850 issued 05-15-2017 and 17U0995 issued 06-13-2017.

Audience

All employees performing account/tax law work

Effective Date

(10-01-2017)


Kevin M Morehead
Director, Accounts Management
Wage and Investment Division

Adjusting TIN-Related Problems Scope and Objectives

  1. Purpose: This IRM covers information on TIN related problems - Resequencing Accounts, Scrambled Social Security Numbers (SSN), No Merge (NOMRG) and Reversed Validity (REVAL) Transcripts. This section covers the identification and resolution of TIN related problems.

  2. Audience: The primary users of this IRM are all employees in Business Operating Divisions (BOD) who are in contact with taxpayers by telephone, correspondence or in person.

  3. Policy Owner: The Director of Accounts Management.

  4. Program Owner: Process and Program Management, Accounts Management, Wage and Investment (WI).

  5. Primary Stakeholders: The primary stakeholders are organizations that Accounts Management collaborates with, for example; Return Integrity and Compliance Systems (RICS), Compliance and Submission Processing.

  6. Program Goals: Program goals for this type of work are included in the Accounts Management Program Letter as well as IRM 1.4.16, Accounts Management Guide for Managers.

Background

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

Authority

  1. Refer to IRM 1..2.21, Servicewide Policies and Authorities, Policy Statements for Customer Account Services Activities, for information.

Responsibilities

  1. The Wage and Investment Commissioner has overall responsibility for policy related to this IRM. Information is published in this IRM on a yearly basis.

  2. Additional information is found in IRM 1.1.13.8.4, Accounts Management (AM)and IRM 21.1.1, Accounts Management and Compliance Services Overview.

Program Management and Review

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

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

Program Controls

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

Acronyms

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

  2. Some of the acronyms used in this IRM:

    Acronym Definition
    ATIN Adoption Taxpayer Identification Number
    CN Common Number
    HQ Headquarters
    IDTVA Identity Theft Victim Assistance
    IMF Individual Master File
    IRC Internal Revenue Code
    IRSN Internal Revenue Service Number
    ITIN Individual Taxpayer Identification Number
    ITRVK ITIN Revoke
    MFR Mail Filing Requirement
    NC Name Control
    NOMRG and NMRG No Merge
    POC Point of Contact
    REVAL Revalidation
    RTS Real Time System
    SCI Scrambled SSN Indicator
    SSA Social Security Administration
    SSN Social Security Number
    TDA Taxpayer Delinquency Account
    TDI Taxpayer Delinquency Investigation
    TIN Taxpayer Identification Number
    UPC Unpostable Code

Related Resources

  1. For help working TIN-Related problem cases you may need to refer to:

    • IRM 3.13.5, Individual Master File (IMF) Account Numbers

    • IRM 3.21.263, IRS Individual Taxpayer Identification Number (ITIN) Real Time System (RTS)

    • IRM 25.23.4.7.3, Required Research for Mixed Entity and IDT Cases.

  2. The IRS adopted the Taxpayer Bill of Rights in June of 2014. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC Section 7803(a)(3) or Taxpayer Bill of Rights, on www.IRS.gov for additional information.

What Are TIN-Related Problems?

  1. TIN-related problems involve the TIN used on a taxpayer's account. Actions may be required on the Entity and/or tax module to correct TIN-related problems.

  2. For Identity Theft (IDT) and Mixed Entity (MXEN) cases see IRM 25.23.4.7.3, Required Research for Mixed Entity and IDT Cases.

  3. This section addresses all TIN types unless otherwise indicated. TIN types are:

    • Social Security Number (SSN), see IRM 3.13.5.19, Social Security Number (SSN) Format

    • Individual Taxpayer Identification Number (ITIN), see IRM 3.13.5.20, Individual Taxpayer Identification Number (ITIN) Format

    • Internal Revenue Service Number (IRSN), see IRM 3.13.5.21, Internal Revenue Service Number (IRSN) Format

    • Adoption Taxpayer Identification Number (ATIN), see IRM 3.13.5.22, Adoption Taxpayer Identification Number (ATIN) Format

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

TIN-Related Problems Research

  1. When resolving TIN related problems, you may also need to refer to IRM 3.13.5, Individual Master File (IMF) Account Numbers, IRM 3.21.263, IRS Individual Taxpayer Identification Number (ITIN) Real Time System (RTS) and IRM 25.23.4.7, Preliminary Research - Preparing the Case for Resolution. Use of the ITIN Merge Guide, may be helpful.

  2. TIN information for SSNs and ITINs may be posted on the valid or invalid segment of Master File. IRSNs are temporary numbers issued by the IRS and are always on the invalid segment of Master File. The invalid segment is indicated by an asterisk (*) following the last digit of the TIN. It is necessary to address both the valid and invalid segments of Master File when adjusting TIN related problems. For additional information see IRM 3.13.5.10, Valid and Invalid Segment for the Individual Master File (IMF).

  3. In order to correct TIN-related problems, you must be familiar with the following research elements:

    • Entity module

    • Transaction codes

    • Retention register - Request a retention register transcript only if the account cannot be reactivated by using command code IMFOL with definer "B."

    • Command codes, including NAMES, INOLE, DDBKD, DUPOL, MFTRA, IMFOL, RTVUE, FFINQ, REINF, with various definers

    • NUMIDENT for SSN research only

  4. The research necessary for accurately processing a TIN-related problem case includes, where applicable, and is not limited to the following:

    • Utilizing the Correspondence Imaging System (CIS) and all applicable, available internal research systems to review all related cases, whether open or closed

      Note:

      Whenever possible, multiple claims from the same taxpayer should be processed by the same employee. Coordination of these same taxpayer, multi-year claims is necessary to ensure consistent processing.

    • Utilizing CIS to review all related documents and/or attachments

    • Utilizing the ITIN Real Time System (RTS) to research and review data related to assigned, suspended and/or rejected Form W-7, Application for IRS Individual Taxpayer Identification Number. See IRM 3.21.263.4.7, Status Codes, IRM 3.13.5.79.7, Accessing the ITIN Real Time System (RTS), and IRM 3.21.263.8, General Instructions for ITIN Navigation (ITIN RTS) for additional information

      Note:

      The Form W-7 application's Document Locator Number (DLN) is only available on RTS

    • Number of years the TIN has been used for filing returns
      Filing status changes
      Method of filing, electronic or paper
      Previous adjustments
      Filing dates of original and duplicate returns
      TC 971 Transaction Codes

    • Utilizing NAMES to identify and locate all related TINs for all tax years

    • Utilizing RTVUE to determine items of information such as:
      Address for the first return(s) filed
      Dependents
      Type of income
      Filing Status
      Schedules and Forms filed

    • Utilizing TRDBV to determine items of information such as:
      Wage information details
      Occupation
      Tax Return Preparer
      Requested method of disbursing overpayment, electronic or by mail

    • Utilizing INOLE to determine items of information such as:
      Date of birth
      Previous names
      Spouse's TIN
      Other related TINs

    • Utilizing IRPTR to perform research actions and determine items of information such as:
      Comparative review of reported income and payor information
      Previous and current employers
      Previous addresses

    When working ITIN cases, you must research under the relevant SSN used for income reporting.

  5. Do not determine the validity of a social security card on the basis of the word "VOID" on the photocopy. Placing the word "VOID" on a photocopy of a recently issued social security card simply indicates that the document is a photocopy of the original card.

NOMRG Conditions

  1. Use caution when moving accounts. Improper attempts to resequence accounts when a NOMRG condition is present causes the merge to fail and a NOMRG transcript to generate.

  2. Telephone Assistors and Taxpayer Assistance Center (TAC) employees not working CIS cases, will refer Merges/Resequences involving extensive research or requiring monitoring of the account, to Brookhaven IDTVA, using Form 4442/e-4442, Inquiry Referral. See IRM 21.6.2.4.1.4, Reassignment of NOMRG Cases due to Site Specialization.

  3. Employees working CIS cases must resolve the following conditions before resequencing an account. Do not refer to NOMRG:

    • If the name control of the "from" account does not match the name control of the "to" account, refer to IRM 3.13.5.116, Correcting a Taxpayer’s Name.

    • Either account contains Mail Filing Requirement (MFR) 08 and Scramble Indicator (SCI) 01, 10, 12, 13, 20 or 23. Reassign CIS case as SCRM. See IRM 21.6.2.4.2, Scrambled SSN Case Procedures.

    • Either account contains an unreversed TC 914, 916, or 918 (Z Freeze). See IRM 21.5.6.4.52, -Z Freeze.

  4. Employees working CIS cases, with the following conditions on the accounts, will reassign the case through CIS. See IRM 21.6.2.4.1.4, Reassignment of NOMRG Cases due to Site Specialization:

    • A TC 150 for the same tax period is posted on both the "from" and "to" accounts.

    • Either account contains a module with an M- Freeze and there is a module for the same tax period on the other account.

    • One account contains a module with a -Q Freeze and the other account contains a module for the same tax period which either contains an unreversed TC 570 or is in a debit balance status.

    • Both accounts contain a module for the same tax period with a -V Freeze (unless one or both TC 520(s) has a closing code 81).

    • Both accounts contain an unreversed TC 930 or 424 on the same tax period or one account contains an unreversed TC 930 and the other account contains an unreversed TC 424.

    • The "from" account contains a TC 898 posted within the last six years or UPC 134-3. See IRM 21.4.6.5.23.1, UPC 134.

    • Both modules contain an unreversed TC 608 on MFT 55.

    • Both accounts contain an MFT 32 module for the same tax period.

    • Both accounts contain a module in Taxpayer Delinquency Investigation (TDI) Status 03 (indicator other than 08) or Taxpayer Delinquency Account (TDA) Status 22, 24, 26 or 60 and the Primary Location Codes are not in agreement (T- Freeze).

    • The from account contains more than 25 active modules.

TIN-Related Problems Procedures

  1. To correct TIN-related problems, apply the following TIN-related procedures.

Resequencing Accounts

  1. When an account moves from one TIN to another TIN or from one segment of a TIN (valid or invalid) to the other segment, it is called resequencing or merging. Resequencing or merging should not be attempted for scenarios where the individual accounts of two taxpayer’s are involved such as a husband and wife, parent and child, sister and brother, two different people etc.

    Note:

    See IRM 21.6.2.4.1.3, NOMRG Conditions, to determine if conditions are present that would prevent a merge. If the case meets reassignment to NOMRG criteria, do not take any action on the account. See IRM 21.6.2.4.1.4, Reassignment of NOMRG Cases due to Site Specialization.

  2. The following entity transaction codes (TC) apply to resequencing accounts:

    TC Input to change
    011 TIN on a Master File (MF) account or to consolidate two accounts. This transaction is systemically compared against the DM-1 data file. Input only the new TIN. It will move the entire account. Input only once. For additional information see IRM 3.13.5.114, Taxpayer Identification Number (TIN) Changes (generates a TC 011).
    013 Name on a MF account. This transaction is systemically compared against the DM-1 data file. For additional information see IRM 3.13.5.116.2, Completing Name Changes with CC INCHG/IAT. If the name change is being input to move the account from the invalid side to the valid side of the TIN, input only once.
    040 TIN or name on an account which is on the valid segment of MF. It is not systemically compared against the DM-1 data file. For additional information see IRM 3.13.5.123, Valid Segment Entity Bypass (TC 040). Input only once.
    041 TIN or name on an account which is on the invalid segment. It is not systemically compared against the DM-1 data file. For additional information see IRM 3.13.5.124, Invalid Segment Bypass (TC 041). Input only once.

    Note:

    DM-1 explanation can be found in IRM 3.13.122.8.3 Data Master One (DM-1) File.

    Caution:

    Resequencing an account to a valid TIN or to an IRSN, even if the attempt fails, can release an overpayment not held with a TC 570 or TC 576 on any active module under the TIN being moved. An I- freeze only restricts credit interest. It does not hold the credit. Reminder: A TC 570 cannot post to an invalid account where the DLN 00200-000-00006-9 has posted. Other methods must be used to hold the credit. Open a control with the activity “HOLDREFUND” so that Notice Review will stop the refund.

  3. For additional information see IRM 3.13.5.23, Transaction Codes Used to Merge Accounts.

  4. TC 040 and TC 041 corrections do not go through the DM-1 validation process. Therefore, it is important to use TC 040 and TC 041 ONLY when the taxpayer provides proof of their identity and it is necessary to bypass the DM-1 validation.

  5. If there are any NOMRG controls on ENMOD or SUMRY, do not take any account actions. Refer as appropriate.

Resequencing Methods
  1. Resequencing on the Individual Master File (IMF) is often involved with the validity of a TIN.

    1. Each person may have only one TIN.

    2. Once a number is assigned, it cannot be assigned to someone else. A SSN is never "recycled" or reused.

    3. A transposition error in a TIN or name change, without notification to the Social Security Administration (SSA), may cause a TIN mismatch with IRS records. This is referred to as an "invalid" condition.

    4. The computer cross references all TINs to the SSA data and identifies these invalid conditions.

  2. Resequencing accounts is accomplished by the following methods:

    • Automatic resequencing

    • Inputting a name control and name line change

    • Updating the new SSN field, with or without a transaction code

Determining Validity
  1. If the primary TIN and name control (NC) do not match (invalid), they are identified by an asterisk "*" after the TIN.

  2. On IMF Retention Register Microfilm transcripts, the computer assigns a validity digit of "0" when TIN and NC match (valid). A validity digit of "1" is assigned when TIN and NC do not match.

  3. When the DM-1 data tape file is received, it is systemically compared to the invalid segment of MF.

    1. Any change in an account's validity causes a resequence under TC 001 and generates a Document Locator Number (DLN) of 00200–000–00006–9.

    2. A residual record is maintained on the invalid segment after an account is resequenced.

    3. The TIN slot is reserved until released by a returning memo record (TC 026) or the account fails to merge.

    Note:

    For additional information see IRM 3.13.5.12, Data Master One (DM-1) File.

  4. Resequencing created by entity transactions is accomplished by a name change (TC 013) or a TIN change (TC 011) to MF.

    1. A residual record is maintained on the "from" segment after the account is resequenced.

    2. The TIN slot is reserved until released by a returning memo record (TC 026) or account fails to merge.

  5. Resequenced accounts which fail to merge, return to their original validity slots.

    1. Memo transactions (TC 026), resequencing to release the hold on residual account slots, are directed to the valid segment of MF from which the originating account came without regard to a match with SSA data.

    2. When accounts do not merge, a transcript generates for both accounts involved and the TC 026 transaction does not post.

    Note:

    If the accounts fail to merge when DLN of 00200–000–00006–9 generates, the computer no longer recognizes the invalid segment. Adjustments made to the invalid TIN automatically post to the valid TIN. An Internal Revenue Service Number (IRSN) must be obtained and the valid or invalid TIN is moved to the IRSN.

  6. Taxpayer accounts with the "NEWSSA N/C" literal may be valid accounts residing on the invalid segment of IMF. However, all NEW SSA N/C, IRS VALID and ATIN accounts reside on the invalid segment until completion of the quarterly DM-1 merges.

    Note:

    The quarterly updates of the DM-1 File are done in January, April, July and November of each year.

    The quarter merges are scheduled in cycles 05, 15, 31 and 44. For additional information see IRM 3.13.5.14, Weekly NEW SSA Name Control (N/C) Indicator Files.

Resequencing Action Required
  1. Actions required:

    1. Research IMFOL for the valid and invalid accounts for both TINs (the "to" and "from" TINs) prior to resequencing an account. The resequencing action moves all tax periods present in the account. Specific tax periods cannot be moved independently.

      Caution:

      The resequencing transaction should be input only once.

    2. Research for NOMRG Conditions. See IRM 21.6.2.3.1, NOMRG Conditions.

    3. Reinstate all lower level modules dropped to retention in 1997 and later using Command Code (CC) IMFOLB. See IRM 2.3.51.4, Restoring RRR Tax Modules to Master File. Vestigial modules, dropped to retention prior to 1997, should only be reinstated if there is a vestigial module on both the to and from accounts. Reinstate only the retention years in question. If accounts dropped prior to 1994 must be reinstated use, Form 5248, Transfer Request. See IRM 3.17.21.8, Reestablishment of Retention Register Accounts and IRM 21.2.2.5.10, Requester Responsibilities.

      Caution:

      Do not input the resequencing transaction until the reinstatement is complete.

  2. When resequencing an Individual Taxpayer Identification Number (ITIN) to an SSN, the ITIN should be revoked after the resequencing is completed.

    Caution:

    If transfers of refunds, credits, reversals of TC 898 or TC 400 must be input on the ITIN, ensure they are completed and posted before requesting the revocation or they will unpost and the account cannot be merged.

    • Resequence the ITIN whether it belongs to the primary taxpayer or secondary taxpayer. If both primary and secondary taxpayer have ITINs that need to be consolidated, then resequence both ITINs.

      Note:

      If there are tax years on CC IMFOLI under the ITIN, the account needs to be resequenced.

    • If the primary account was resequenced to a new TIN, update the TIN on the CIS case. There will be two controls on the new TIN that appear to be for this CIS case. The first one is from when the account merged and will need to be manually closed.

    • Close the CIS case after all necessary actions have been taken on the new TIN.

    • Request the ITIN be revoked. For monitoring purposes establish a new control on IDRS under the primary account..

      Note:

      The new control must be established manually. Only one control base should be open, for all related ITINs and multiple years, to monitor for the revocation.

      Use case status M.

      Use an activity code that begins with ITRVK.

      Use category code MISC.

      Use the current date as the received date.

    • Route Form 4442 to the SPC ITIN Unit to request the revocation. You should complete a Form 4442 from the primary account for each ITIN being revoked that is associated with the case. See IRM 3.21.263.7.6, Form 4442, Inquiry Referral, for information required on a Form 4442.

  3. Once all related ITINs have been revoked and posted to RTS (the Status on RTS will be rejected and the Reason Code will be R15) close the "MISC" base.

    Note:

    Allow up to 4 weeks for the revocation to post. If it does not post, resubmit the Form 4442, after 4 weeks have passed.

  4. When resequencing an ITIN to another ITIN, see IRM 3.21.263.7.5,Merges Involving ITIN, to determine which number should be the From account and which should be the To account. Revoke the ITIN for the From account per the instructions above after all transactions have posted.

Reassignment of NOMRG Cases due to Site Specialization
  1. Cases involving certain merge issues are worked by the designated specialized sites. There are two types of cases involving merge issues:

    • Failed merge attempt, i.e., cases that generate a NOMRG or REVAL transcript.

    • Potential NOMRG cases identified prior to any attempted merge as indicated in IRM 21.6.2.3.1, NOMRG Conditions.

  2. Reassignment to the Centralized Distribution Numbers (CDS) holding number is performed systemically for cases that generate a NOMRG or REVAL transcript. Refer to the Accounts Management Site Specialization Temporary Holding Numbers listing located on SERP for the appropriate number.

  3. Reassignment of potential NOMRG cases to the NOMRG CDS holding number is performed manually. Refer to the Accounts Management Site Specialization Temporary Holding Numbers listing located on SERP for appropriate number.

    Note:

    Prior to sending the case to the holding number, you will need to notate the NOMRG condition in the case message on CIS, update the doc type to No Merge, the category to NOMRG, and the program code to 710–40053.


  4. If referring the case using Form 4442/e-4442, use No Merge (NOMRG) as the reason for the referral and Brookhaven as the site. In AMS the referral will be submitted electronically.

  5. If you do not have access to AMS, fax the Form 4442 to Brookhaven IDTVA at≡ ≡ ≡ ≡ ≡ ≡ (for internal use only). Address the Fax to Brookhaven IDTVA NOMRG, and in the notes section of the fax cover sheet indicate NOMRG/Potential NOMRG. In the Form 4442 remarks section include a complete description of the reason for the referral.

    Caution:

    If a referral is routed to the NOMRG unit that does not meet NOMRG referral criteria, it will be rejected back to the originator. The NOMRG employee will annotate the reason for the rejection on the 4442.

Scrambled SSN Case Procedures

  1. All means of determining the owner of the common number(CN) should have already been exhausted per previous guidance in IRM 25.23.4,IDTVA Paper Process. In addition, if a taxpayer has tax modules under more than one TIN, every effort must be made to consolidate the accounts under one unique TIN, BEFORE using scramble procedures.

    Note:

    Research must be conducted using all resources available: AMS, CIS, IDRS, etc. and when required, IAT Tools must be used. See IRM 21.2.2.4.4.14, Integrated Automation Technologies.

    • At this point in the process, all preliminary research should have been completed and the 40 day suspense period, 70 day suspense for overseas taxpayers, for the Letter 239C questionnaire must have expired.

    • If the case is a True/Default True Scrambled SSN case, establish a case file on CIS. The CIS case file should include all research and documentation, including copies of all returns and Form W-2 (s). For history sheet requirements, see IRM 25.23.4.13, TIN-Related Problem Research Sheet. A TIN-Related Problem Research Sheet, however, showing actions taken and any other notations as required by this IRM must be attached to the primary CIS case.

  2. Scrambled cases are controlled using category SCRM or SSA2.

    • SCRM - used when the account is being scrambled. Ages at 150 days.

      Note:

      Cases must not be prematurely or erroneously controlled using category SCRM. Mixed Entity and SDC cases must not be controlled using category SCRM.

    • SSA2 - used only for True/Default True Scrambled cases. The case is awaiting SSA Form 3857 response. Ages at 730 days.

      Note:

      The category code is not changed to "SSA2" until the Form 3857 has been sent to SSA.

      Note:

      Current IRM procedures restrict the cases sent to SSA for resolution only to True/Default True Scrambled SSN cases. Current procedures provide guidelines for resolution of all other types of cases without SSA involvement. It is understood, however, that there are residual cases, i.e., cases other than True/Default True Scrambled cases that were categorized as "SSA2" prior to the current procedures.

  3. The (CN) is scrambled to prevent returns from posting to the SSN.

  4. Scrambled cases may be identified by Scrambled SSN Indicator (SCI) 01, 10, 12, 13, 20 or 23 located on ENMOD or IMFOLE of the (CN) Refer to Exhibit 21.6.2-1, Scrambled SSN Indicators.

  5. Expedite scrambled SSN case document requests from files by using CC ESTABDV. Notate "Scrambled SSN" in the request remarks.

  6. Route scrambled cases requiring Statute action to the Statute function.

  7. Consider erroneous refund procedures. See IRM 21.4.5, Erroneous Refunds.

  8. If account has a TC898 offset to a state or federal agency, before taking any action, refer to IRM 21.4.6.5.18,Scrambled SSN Cases With TOP Offsets.

  9. Route cases with a Z freeze to the Scheme Development Center (SDC). For cases with a P- Freeze with category code PFRZ, refer to IRM 21.5.6.4.31.2 , P- Freezes with IVO Involvement, for additional guidance. Take no action unless the Z freeze is released. If the Z and/or P- freeze is released, follow established scrambled SSN procedures.

    Caution:

    Do not follow SDC instructions which deviate from established procedures. Established procedures do not permit SDC determinations of the CN owner.

  10. Refer to the SDC "leads" related to alleged stolen identity accounts, data that may lead to a fraudulent filing of tax returns for the purpose of gaining false or inflated refunds, or potential Electronic Return Originator (ERO) schemes, etc. Do not refer the case. Continue to work the case. Use Form 4442 to provide the following information:

    1. SSN(s) and tax year(s) involved

    2. Brief description (e.g., alleged stolen identity). Notate that the Form 4442 is a "Lead Only."

    3. Copy of the source of allegation (e.g., copy of taxpayer correspondence), if available

    4. Copy or CIS print of the paper return (if a subsequent paper return was filed and taxpayer(s) are alleging stolen identity)

  11. Follow mixed entity procedures involving the following:

    • The taxpayer indicates that he/she purchased, borrowed or stole the SSN. The caseworker may receive this information directly from the taxpayer or through another IRS employee or Treasury Inspector General for Tax Administration (TIGTA).

    • The common number is an ITIN or invalid SSN.

  12. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Identifying Scrambled Cases Involving Taxpayer Inquiries or NOMRG Transcripts
  1. Use the following procedures to identify scrambled cases involving taxpayer inquiries or NOMRG transcripts.

    1. Examine the taxpayer inquiry concerning a notice of tax due, a missing refund, or the amount of a refund.

    2. Request the return(s) if a TC 976 or TC 977 is posted to a module and the account was previously adjusted.

    3. Compare the return information.

    4. Research for a former spouse's TIN.

Beginning Scrambled Procedures
  1. Analyze the case to identify the taxpayers involved:

    • Taxpayer 1 -Taxpayer who has used the CN for the most years or the taxpayer who has the most statute year returns posted to the CN.

    • Taxpayer 2 - Taxpayer who has not used the CN for the most years or has the fewest statute year returns posted to the CN.

  2. Analyze the case to determine which condition exists:

    • Condition 1 - Taxpayer 1 posted first.

    • Condition 2 - Taxpayer 2 posted first.

    Note:

    If both taxpayers are first time filers, then the taxpayer who posted as the TC 150 becomes Taxpayer 1. Follow procedures for Condition 1.

  3. Use local procedures to obtain an IRSN for each taxpayer. IRSN 1 is issued for Taxpayer 1. IRSN 2 is issued for Taxpayer 2. When establishing IRSN 2 set the appropriate Scrambled SSN Indicator (SCI). Exhibit 21.6.2-1.Scrambled SSN Indicators.

    Note:

    If either taxpayer was issued an IRSN in a prior year, use the IRSN previously issued to that taxpayer.

  4. Research to determine if there is a closed or existing scrambled SSN case for the same taxpayer.

    If Then
    A previously scrambled case was closed with a response from SSA Follow mixed entity procedures.
    An existing scrambled case is waiting for SSA's reply
    1. Review prior case file.

    2. Follow the procedures in IRM 25.23.4.15,Non-Streamline IDT Case Processing - Determining Ownership of the Common Number.

    3. If the case is a True/Default True Scrambled SSN case, send a follow-up request to SSA, if necessary.

  5. If substantiation of identity theft is received from one taxpayer after the Letter 239C 40 day suspense period, 70 days for overseas taxpayers, has expired, follow procedures in IRM 25.23.4.15.1.1,Identity Theft - More Than One Return Present. Change the control category to "IDT1/IDS1."

    Note:

    Please see IRM 25.23.2.17.1,, When to Request Additional Information to Support an Allegation of Identity Theft , for acceptable identity theft documentation.

  6. If substantiation of identity theft is received from both taxpayers, follow procedures in IRM 25.23.4.15.1.1, Identity Theft - More Than One Return Present. Change the control category to "IDT1/IDS1" .

  7. If at any time a completed Letter 239C questionnaire is received after the 40 day suspense period has expired, 70 days for overseas taxpayers, follow the procedures in IRM 25.23.4.15 Non-Streamline IDT Case Processing - Determining Ownership of the Common Number and, if necessary, in IRM 25.23.4.18,Pre-Letter 239C Common Number (CN) Ownership Determinations Cannot Be Made.

Scrambled Procedures Specific to Cases Other Than True/Default True Scrambled SSN Cases
  1. Follow Condition 1 Case Processing guidance in IRM 21.6.2.4.2.6, Condition 1 Case Processing or Condition 2 Case Processing guidance in IRM 21.6.2.4.2.7,Condition 2 Case Processing, and follow procedures as appropriate. Do not perform any steps that involve the Form 3857 and the sending of the case to SSA. These steps will be identified as pertaining only to True/Default True Scrambled cases. Input a Scramble Indicator (SCI) of "10" .

    Note:

    At this time, SCI "10" will be used for any Scrambled SSN cases not sent to SSA for resolution. This type of case, however, should be extremely rare. This IRM provides sufficient guidance for making SSN ownership determinations on all but True Scrambled SSN cases.

Scrambled Procedures Specific to True/Default True Scrambled SSN Cases
  1. Follow the If/Then table below when scrambling a True/Default True Scrambled SSN Case:

    If Then
    One or both of the taxpayers responded with a completed questionnaire
    • Input the appropriate SCI on the CN. Exhibit 21.6.2-1Scrambled SSN Indicators.

    • Prepare initial Form 3857

    • Forward initial Form 3857 and case file to the Scrambled SSN Coordinator. See IRM 21.6.2.4.2.8Form 3857 Request for SSN Clarification. The Scrambled SSN Coordinator will review and return the case file within 3 business days.

    • Send both taxpayers a second Letter 239C. Advise the taxpayers that SSA has been contacted and to use the IRSN for federal tax purposes. Instruct the taxpayer to contact SSA.
      If you are requesting information from the taxpayer, suspend the case for 40 days, 70 days for overseas taxpayers. IRM 25.23.4-1,Paragraphs for Letter 239C.

    • Scramble the account.

    Neither taxpayer responded with a completed questionnaire

    Note:

    This If/Then applies only to True Scrambled SSN cases. It does not apply to Default True Scrambled SSN cases. See IRM 25.23.4.18.3.4.1Default True Scrambled SSN Case.

    • Input SCI 10 on the CN and IRSNs.

    • Send a second Letter 239C to each taxpayer. Advise the taxpayers to complete the questionnaire, submit documentation required in IRM 21.6.2.4.2.5, Determining if the Refund Should be Released, and use the IRSN for federal tax purposes. Instruct the taxpayer to contact SSA.
      Advise the taxpayers to respond within 30 days, 60 days for overseas taxpayers.
      IRM 25.23.4-1,Paragraphs for Letter 239C.

    • Scramble the account.

    • Attach the Case History Sheet to the primary CIS case.

    • Attach the Research Sheet to the primary CIS case.

    • If neither taxpayer responds to this 2nd Letter 239C, close the case after all scrambling procedures have been completed.

    Note:

    If one taxpayer responds with substantiation of identity theft before the suspense period from the date the second Letter 239C request has expired, do not take action to immediately resolve. Allow the suspense period to expire before resolving case.

    Note:

    Please see IRM 25.23.2.17.1, When to Request Additional Information to Support an Allegation of Identity Theft , for acceptable identity theft documentation.

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Caution:

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

Determining If the Refund Should Be Released
  1. DO NOT release the refund if the taxpayer does not respond to the Letter 239C with a completed and accurate questionnaire and all of the following:

    1. Name

    2. Current telephone number

      Note:

      If the taxpayer indicates verbally or in writing that they do not have a telephone, consider this requirement to be met. If the taxpayer indicates that they do not wish to give out their telephone number, do not consider the requirement to be met.

    3. Copy of Social Security Card

    4. Copy of a current document verifying the taxpayer's address. Acceptable current documentation includes a copy of a bank statement, lease agreement, mortgage statement or utility bill.

    5. Copy of a document to verify the taxpayer's identity. Acceptable documentation is a copy of a driver's license, state identification card, passport or other federal or state government issued photo identification which is valid and unexpired.

    Note:

    If a taxpayer claims identity theft and provides required documentation, follow guidance in (12) of IRM 21.6.2.4.2, Scrambled SSN Case Procedures.

  2. If the taxpayer is claiming a hardship, which may warrant the issuance of a manual refund, refer the case to The Taxpayer Advocate Service (TAS) for hardship determination per IRM 21.4.4.2, Why Would A Manual Refund Be Needed?

  3. Overpayment(s) a year old or older must be transferred to Excess Collections when the account is scrambled. Allow an Accounts Maintenance Research (AMRH) transcript(s) to generate on account(s) with overpayment(s) less than a year old. See IRM 21.2.4.3.10.1, Excess Collection File (XSF) for AMRH.

Condition 1 Case Processing
  1. These procedures are to be used when Condition 1 is present.

  2. Correct the CN entity information to agree with Taxpayer 1's return.

  3. Edit the SSN on Taxpayer 1's return to show IRSN 1.

  4. Reprocess Taxpayer 2's return to IRSN 2. See IRM 21.5.2.4.23,Reprocessing Returns/Documents, for editing instructions. Edit with Computer Condition Code (CCC) 3 to hold the refund, if necessary. See IRM 21.6.2.4.2.5, Determining if Refund Should be Released.

    Note:

    If statute or statute-imminent return, refer to IRM 25.23.4.15.4, Determining When Specific Year Account Information Must Be Moved.

  5. Transfer Taxpayer 2's payment(s) from the CN to IRSN 2.

  6. Input TC 971, Action Code 002 on the CN to cross-reference to IRSN 2. Input TC 971, Action Code 017 on the IRSN to cross-reference the CN.

  7. Input a TC 290 .00, Blocking Series 00 (or if Taxpayer 1 filed an electronic return, use Blocking Series 05), on the CN to release the -A freeze. Use Hold Code 4 if the overpayment must be held. See IRM 21.6.2.4.2.5 , Determining if the Refund Should be Released. Allow items requiring a valid primary TIN, i.e., EITC, primary exemption, and/or education credit, if Taxpayer 1 would otherwise qualify for the items.

  8. Resolve all conditions that would prevent the CN from merging. See IRM 21.6.2.4.1.3, Resequencing Action Required.

  9. Resequence CN to IRSN 1. Include appropriate scrambled SSN indicator. Exhibit 21.6.2-1.Scrambled SSN Indicators.

  10. After Taxpayer 2's return posts to IRSN 2, input TC 510 and/or TC 571 to release the refund, if appropriate. See IRM 21.6.2.4.2.5,Determining if the Refund Should be Released.

    Note:

    If Taxpayer 2 claimed items requiring a valid primary TIN, i.e., EITC, primary exemption, and/or education credit, a math error will be issued during the reprocessing of the return disallowing these items because the primary TIN is invalid. Do not adjust IRSN 2 to allow items requiring a valid primary TIN unless NUMIDENT indicates a True Scrambled SSN case. Do not make the adjustment for a Default True Scrambled SSN case (see IRM 25.23.4.18.3.4.1,Default True Scrambled SSN Case).

  11. If taxpayer(s) did not submit a complete Letter 239C response, transfer overpayment(s) a year old or older to Excess Collections. See IRM 21.2.4.3.10.1,Excess Collection File (XSF) for AMRH. Allow an AMRH transcript(s) to generate on account(s) with overpayment(s) less than a year old. Also refer to IRM 21.2.4-3 , AMRH FREEZE TABLE IMF/BMF, for additional guidance and IRM 21.6.2.4.2.5,Determining if the Refund Should be Released, for documentation required for a complete response.

  12. Establish a summary account on the CN to prevent returns from posting.

    1. Input TC 000 with the appropriate scrambled SSN indicator and MFR 08 after the CN is completely resequenced to the IRSN 1.

    2. Include all items shown on Taxpayer 1's account. The year must be the current tax period.

    3. Enter the two digit campus code and both IRSNs on the second name line.

      Note:

      Omit the hyphens in IRSNs to allow space to input three IRSNs, if necessary.

  13. For all cases other than True/Default True Scrambled SSN cases, close the case taking the following actions:

    1. Attach the TIN-Related Problem Research Sheet to the primary CIS case.

    2. Refile the returns.

    Note:

    The closing Letter 239Cs should have already been sent to both taxpayers by this point per the instructions in IRM 25.23.4.18.2Sending the Letter 239C and Telephone Contact-Stage One.

    If a Letter 239C response is received after a case has been closed, reassign the case to the designated IDRS number and link the new information to the prior CIS case. Send a courtesy e-mail to the designated employee to alert the employee of the new information. Refer to the Accounts Management Site Specialization Temporary Holding Numbers for a complete list of designated IDRS numbers.


  14. If SSA acknowledgement Then
    received
    1. Send each taxpayer a Letter 239C advising them that SSA has acknowledged receipt of our request for SSN verification. IRM 25.23.4-1,Paragraphs for Letter 239C.

    2. If additional information is received, follow procedures in IRM 21.6.2.4.2.10,Processing Additional Information, or IRM 21.6.2.4.2.11 , Resolving Scrambled SSN Cases, as appropriate.

      Note:

      Control base must remain open waiting for SSA's Form 3857 response. If one year expires, from the date Form 3857 was sent to SSA, follow procedures in IRM 21.6.2.4.2.11, Resolving Scrambled SSN Cases

    not received within 90 days Before preparing a second 3857 package to forward to SSA, make contact with the SSA POC to determine the status of the 3857 package(s). If you are unable to obtain a response from SSA POC within 14 days, report the issue to HQ.
Condition 2 Case Processing
  1. These procedures must be used when Condition 2 is present.

  2. Correct the CN entity information to agree with Taxpayer 1's return.

  3. Edit the SSN on Taxpayer 1's return to show IRSN 1.

  4. Reprocess Taxpayer 2's return to IRSN 2. See IRM 21.5.2.4.23, Reprocessing Returns/Documents, for editing instructions. Edit the return with the appropriate Computer Condition Code. See IRM 21.6.2.4.2.5Determining if the Refund Should be Released.

    1. Use CCC "3" to hold the refund, if necessary.

    2. Use CCC "O" if a refund was issued to Taxpayer 2 on the CN.

    Note:

    If statute or statute-imminent return, refer to IRM 25.23.4.15.4, Determining When Specific Year Account Information Must Be Moved.

  5. Transfer Taxpayer 2’s payments from the CN to IRSN 2.

  6. Input TC 971, Action Code 001, on the CN to cross-reference the TC 150 to IRSN 2. Input TC 971, Action Code 017 on the IRSN to cross-reference the CN.

  7. Math verify Taxpayer 1's return. Adjust the CN to agree with Taxpayer 1's return using blocking series 00. Use procedures in IRM 25.23.4.11,Mixed Entity Procedures, to delete the incorrect taxpayer’s information from the account. Use hold code "4" to hold the refund, if applicable. See IRM 21.6.2.4.2.5,Determining if the Refund Should be Released. Notate in remarks "Scrambled SSN - DUP becomes original."

    Caution:

    If Taxpayer 2 requested a direct deposit and the refund did not generate due to the TC 976, then TC 971 AC 001 must be input before adjusting the CN to agree with Taxpayer 1's return. TC 971 must post before the adjustment. Use a cycle delay of 2 cycles on the adjustment when inputting TC 971 and adjustment at the same time. TC 971 AC 001 will prevent the refund from being direct deposited into Taxpayer 2's account due to programming changes implemented. In this instance the TC 971 AC 850 is not required.

    Note:

    If a statute or statute-imminent tax period, refer to IRM 25.23.4.13.4, Determining When Specific Year Account Information Must Be Moved.

  8. Forward Taxpayer 1's return to Examination for DIF scoring if it meets any of the criteria in IRM 21.5.2.4.23.6 DIF SCORE or CLASSIFICATION "Send Return(s) to Examination for Review". Use local procedures. DO NOT refer Forms 1040EZ.

  9. If a refund was issued on the CN to Taxpayer 2, then the refund must be moved. See IRM 21.5.2.4.23.10,Moving Refunds, for instructions on how to move a refund.

    Note:

    The refund must never be "netted" out of withholding.

  10. Correct the Return Processable Date, input the TC 560, if necessary and use the date of the TC 976. See IRM 21.5.6.4.17, I- Freeze.

  11. Resolve all conditions that would prevent the account from merging. See IRM 21.6.2.4.1.3Resequencing Action Required.

  12. Resequence the CN to IRSN 1. Use TC 011 if the CN is valid.

  13. After Taxpayer 2's return posts to IRSN 2, input TC 510 and/or TC 571 to release the refund, if appropriate.

    Note:

    If Taxpayer 2 claimed items requiring a valid primary TIN, a math error will be issued during the reprocessing of the return disallowing these items because the primary TIN is invalid. Do not adjust IRSN 2 to allow items requiring a valid primary TIN unless NUMIDENT indicates a True (Non-Default True) Scrambled SSN case or a refund was issued on the CN to Taxpayer 2.

  14. If taxpayer(s) did not submit a complete Letter 239C response, transfer overpayment(s) a year old or older to Excess Collections. See IRM 21.2.4.3.10.1 Excess Collection File (XSF) for AMRH. Allow an AMRH transcript(s) to generate on account(s) with overpayment(s) less than a year old. See IRM 21.6.2.4.2.5,Determining if the Refund Should be Released, for documentation required for a complete response.

  15. Establish a summary account on the CN to prevent any returns from posting.

    1. Input TC 000 with the appropriate scrambled SSN indicator and MFR 08after the CN is completely resequenced to the IRSN 1.

    2. Include all items shown on Taxpayer 1’s account. The year must be the current tax period.

    3. Enter the two digit campus code and both IRSNs on the second name line.

      Note:

      Omit the hyphens in IRSNs to allow space to input three IRSNs, if necessary.

    Note:

    At this point in processing, any and all Letter 239C responses should already be attachments to the CIS case, as should images of pertinent tax returns.

  16. For all cases other than True/Default True Scrambled SSN cases, close the case taking the following actions:

    1. Attach the TIN-Related Problem Research Sheet to the primary CIS case

    2. Refile the returns

  17. If a Letter 239C response is received after a case has been closed, reassign the case to , the designated IDRS number and link the new information to the prior CIS case. Send a courtesy e-mail to the designated employee to alert the employee of the new information. If Form 3857 is sent to SSA, change the control category to "SSA2" and reassign the case to designated IDRS number. Also ensure the completed Form 3857 is scanned to the CIS case. Refer to the Accounts Management Site Specialization Temporary Holding Numbers located on SERP for a complete list of designated IDRS numbers. The Scrambled SSN Coordinator will monitor the case for an SSA acknowledgement.

  18. If SSA acknowledgement Then
    received
    1. Send both taxpayers a Letter 239C advising them that SSA has acknowledged receipt of our request for SSN verification. IRM 25.23.4-1,Paragraphs for Letter 239C.

    2. If additional information is received, follow procedures in IRM 21.6.2.4.2.10,Processing Additional Information, or IRM 21.6.2.4.2.11,Resolving Scrambled SSN Cases, as appropriate.

      Note:

      Control base must remain open waiting for SSA's Form 3857 response. If one year expires, from the date Form 3857 was sent to SSA, follow procedures in IRM 21.6.2.4.2.5 , Determining If the Refund Should Be Released.

    not received within 90 days Before preparing a second 3857 package to forward to SSA, make contact with the SSA POC to determine the status of the 3857 package(s). If you are unable to obtain a response from SSA POC within 14 days, report the issue to HQ.
Form 3857, Request for SSN Clarification
  1. Contact SSA using Form 3857, Request for SSN Clarification, only for True/Default True Scrambled SSN cases. Include any pertinent information with Form 3857 to assist in resolution of the problem.

    Caution:

    If the CN is an invalid SSN, do not prepare Form 3857. These cases are resolved following the procedures in IRM 25.23.4.11.5, Invalid, SSN – Mixed Entity.

  2. Prepare Form 3857. Enter the following:

    • Atlanta Service Center, IDTVA AM Atlanta: Stop I2100, Post Office Box 47421, Doraville, GA 30362.

    • Date sent to SSA

    • CN

      Caution:

      Do not include IRSNs on Form 3857.

    • Tax period

    • Check the appropriate box indicating why Form 3857 is being sent, ie., original request, no acknowledgement, additional information follow-up, or no SSA response

    • Complete name and address for each taxpayer

    • Check the appropriate box indicating which income documents are attached

    • Business name and address, if taxpayer was self-employed

    • Year each taxpayer first used the CN

    • Check the "Yes" box indicating if the taxpayer submitted a completed Letter 239C questionnaire.

  3. Attach legible photocopies of all Form W-2(s). Delete all money amounts except Social Security and Medicare.

  4. Attach copies of the Letter 239C replies, including questionnaire, documentation, and correspondence.

  5. Notate on Form 3857 any information received regarding recent address changes for the taxpayer(s).

  6. SSA will send a Form 3857 acknowledgement within 90 days. The acknowledgement will show the current status of Form 3857.

    Caution:

    Do not confuse SSA acknowledgements and final responses. Final responses will identify the common number owner or clearly state "case closed" .

  7. If an SSA acknowledgement is not received within 90 days, make contact with the SSA POC to determine the status of the 3857 package(s). If you are unable to obtain a response from SSA POC within 14 days, report the issue to HQ.

  8. Only True/Default True Scrambled SSN cases are to be sent to SSA for resolution. For unresolved SCRM and SSA2 cases categorized as such prior to this revision of the IRM, the procedures in IRM 25.23.4.15, Non-Streamline IDT Case Processing - Determining Ownership of the Common Number, and, if necessary, IRM 25.23.4.18, Pre-Letter 239C Common Number (CN) Ownership Determinations Cannot be Made, may be utilized to make ownership determinations.

  9. If Form 3857 was sent to SSA, change control category to SSA2, reassign the case to designated IDRS number located on the Accounts Management Site Specialization Temporary Holding Numbers listing located on SERP. The Scrambled SSN Coordinator will monitor the case for an SSA acknowledgement. Also ensure the completed Form 3857 is scanned to the CIS case.

    Note:

    Cases categorized as "SSA2" in error will be rejected back to the originating site with a AMS note indicating why it was rejected.

Maintaining Scrambled SSN Files
  1. Scrambled cases must remain open on IDRS utilizing control category SSA2 waiting for SSA’s Form 3857 response.

    Note:

    Only True/Default True Scrambled SSN cases are to be sent to SSA for resolution. For unresolved SCRM and SSA2 cases categorized as such prior to this revision of the IRM, the procedures in IRM 25.23.4.15, Non-Streamline IDT Case Processing - Determining Ownership of the Common Number, and, if necessary, in IRM 25.23.4.18, Pre-Letter 239C Common Number (CN) Ownership Determinations Cannot be Made, may be utilized to make ownership determinations.

  2. Each case file must include:

    • A completed history sheet.

    • Copies of all returns and Form W-2 ’s involved

    • Copies of any taxpayer correspondence, including the Letter 239C replies

    • Copy of the Form 3857 sent to SSA

  3. File taxpayer correspondence and other pertinent documentation with the related return for future reference.

Processing Additional Information
  1. Additional information received after a Form 3857 is sent to SSA must be submitted to SSA as a follow-up.

    Note:

    The procedures in this subsection indicating contact with SSA apply only to True/Default True Scrambled SSN cases. Only True/Default True Scrambled SSN cases are to be sent to SSA for resolution. For unresolved SCRM and SSA2 cases categorized as such prior to this revision of the IRM, the procedures in IRM 25.23.4.15,Non-Streamline IDT Case Processing - Determining Ownership of the Common Number, and, if necessary, in IRM 25.23.4.18,Pre-Letter 239C Common Number (CN) Ownership Determinations Cannot be Made, may be utilized to make ownership determinations.

  2. Notify SSA if either taxpayer files a return after the year in question or additional information is received from either taxpayer.

    1. Check the "Additional Information Follow-up" box in Part I of Form 3857.

    2. Complete the top portion of page 2 of Form 3857.

    3. Attach a copy of new Form W-2(s) (delete all money amounts except Social Security and Medicare) and/or other new identifying information.

  3. Scrambled cases closed without sending Form 3857 to SSA are identified by history item "no 239 reply," or SCI 10 or" SCI 20" on the CN summary account. If a completed Letter 239C questionnaire is received from one of the taxpayers after the case is closed, the procedures in IRM 25.23.4.15, Non-Streamline IDT Case Processing - Determining Ownership of the Common Number, and, if necessary, in IRM 25.23.4.18,Pre-Letter 239C Common Number (CN) Ownership Determinations Cannot be Made, should be utilized to make ownership determinations.

Resolving Scrambled SSN Cases
  1. When a Form 3857 is received from SSA or the taxpayer submits a response, take the appropriate action to close the case.

    Note:

    When a response is received from SSA or the taxpayer and the case is in the closed two year file, pull the two year file and reopen the case with the new received date of the Form 3857 reply or the taxpayer's inquiry. Take appropriate action to close the case.

    Note:

    Current IRM procedures restrict the cases sent to SSA for resolution only to True/Default True Scrambled SSN cases. Current procedures provide guidelines for resolution of all other types of cases without SSA involvement. It is understood, however, that there are residual cases, i.e., cases other than True/Default True Scrambled cases that were categorized as "SSA2" prior to the current procedures. Consequently, responses from SSA or from the taxpayer that determine ownership of the CN or that provide a valid SSN for the taxpayer will be utilized to resolve the case. The following procedures would, in those cases, be applicable. If, however, the responses received do not resolve the case, review the case anew using current procedures which authorize IRS determinations of CN ownership

  2. Verbal SSA responses are unacceptable. If SSA calls with a Form 3857 response, request that they complete and return Form 3857. Form 3857 responses may be faxed or mailed.

  3. If SSA does not verify the CN owner, the scrambled condition cannot be resolved. The accounts must be processed under the IRSNs until action by the taxpayer or SSA provides a resolution.

    Exception:

    We will resolve the case if a determination of CN ownership can be made using current IRM procedures.

  4. Consider the following:

    Note:

    To prevent unnecessary AMRH transcripts, take action when resolving Scrambled SSN cases to transfer overpayment(s) a year old or older to Excess Collections. See IRM 21.2.4.3.10.1, Excess Collection File (XSF) for AMRH.

    If And Then
    (1) SSA indicates one taxpayer is the CN owner The other taxpayer is "unknown"
    1. Resequence the IRSN belonging to the CN owner to the CN. Include the appropriate closing scrambled SSN indicator. Refer to Exhibit 21.6.2-1,Scrambled SSN Indicators.

    2. Input a TC 012 in the same cycle with the appropriate SCI to the CN.

    3. Input TC 510 and/or TC 571 as appropriate to release the CN owner's refunds.

    4. Send a Letter 239C to the CN owner advising them to use the CN. IRM 25.23.4-1,Paragraphs for Letter 239C.

    5. Adjust the CN owner's account to allow items previously disallowed that require a valid primary TIN.

    6. Input TC 971 AC 506 with a posting delay of 4 cycles on the entity module of the CN. Use the SECONDARY-DT field to indicate the tax year in question. Use the TRANS-DT field to indicate the current (input) date. Input "WI AM MULTFL" in the MISC field, if applicable.

      Exception:

      If the applicable procedures involved in processing the current case already require the input of TC 971 AC 501, then do not input TC 971 AC 506.

    7. If the "unknown" taxpayer received a refund which included items requiring a valid primary TIN, initiate math error procedures to reverse the items. See IRM 21.5.4, General Math Error Procedures.

      Note:

      For TIN-Related Problem Secondary Cases, follow Erroneous Refund procedures if the "unknown" taxpayer is the secondary on the joint account.

    8. Attach a copy of SSA's reply (Form 3857) to the most current year return on file for each of the taxpayers.

    9. Send the "unknown" taxpayer a Letter 239C advising them that information from SSA indicates that the SSN shown on their return was not assigned to them. See IRM 25.23.4-1,Paragraphs for Letter 239C.

      Caution:

      When corresponding with the non-owner of the CN, send the letter from the non-owner's IRSN. Do not include the CN in your letter to the non-owner.

    (2) One taxpayer supplies a different valid SSN
    1. Resequence the IRSN of the taxpayer who provided a different TIN to the correct TIN.

    2. Input a TC 012 in the same cycle with the appropriate closing scrambled SSN indicator on the CN. Exhibit 21.6.2-1,Scrambled SSN Indicators.

    3. Resequence the other IRSN to the CN. Include the appropriate closing scrambled SSN indicator. Exhibit 21.6.2-1.Scrambled SSN Indicators.

    4. Input TC 510 and/or TC 571 as appropriate to release the refunds.

    5. Send a Letter 239C to the CN owner. See IRM 25.23.4-1,Paragraphs for Letter 239C.

    6. Adjust both SSNs to allow items previously disallowed that require a valid primary TIN.

    7. Attach taxpayer's correspondence to the most current year return on file.

    8. If Form 3857 was sent to SSA, advise the Scrambled SSN Coordinator the case was closed without a SSA Form 3857 response.

    (3) SSA indicates one taxpayer should use the CN The other taxpayer is assigned a different SSN
    1. Follow steps 1 through 6 above in the first If/Then box.

    2. Attach a copy of SSA's reply (Form 3857) to the most current year return on file for each of the taxpayers.

    (4) SSA or the taxpayer indicates there is only one taxpayer involved (same taxpayer)
    1. Combine the two returns using the IRSN account with the greatest number of statute year tax modules. Use Blocking Series 77/78, SC 6, and apply erroneous refund procedures if appropriate.

    2. Input a TC 012 with the appropriate closing scrambled SSN indicator on the CN. Exhibit 21.6.2-1, Scrambled SSN Indicators.

    3. Resequence the newly adjusted IRSN to the CN. Include the appropriate closing scrambled SSN indicator. Exhibit 21.6.2-1,Scrambled SSN Indicators. Use a posting delay for six cycles, if inputting the merge before the adjustment has posted.

    4. Order any other open statute returns associated with this taxpayer that may be combined or reinput to the CN. Zero out the modules on the other IRSN from which returns are being reinput or combined.

      Note:

      If a statute or statute-imminent return, refer to IRM 25.23.4.15.4,Determining When Specific Year Account Information Must Be Moved.

    5. After all adjustments have posted to the other IRSN, input TC 020 to deactivate the other IRSN.

    6. Send the taxpayer a 673C letter advising them we combined the returns and in the future file a Form 1040X to make changes to their original return.

    7. Change the address, if necessary.

    8. Attach a copy of SSA's reply (Form 3857) or taxpayer's correspondence to the most current year return on file.

    9. If Form 3857 was sent to SSA and the case was resolved without a SSA Form 3857 response, notify the Scrambled SSN Coordinator.

    (5) SSA indicates that the CN does not belong to any of the taxpayers involved SSA supplies a different valid SSN for one or both taxpayers involved
    1. Input a TC 020 to the CN.

      Note:

      If any modules exist, move the modules before inputting TC 020 to delete the account.

    2. Resequence the IRSN(s) (may be input in the same cycle) to the correct SSNs. Include the appropriate closing scrambled SSN indicator. Exhibit 21.6.2-1,Scrambled SSN Indicators.

    3. Input TC 510 and/or TC 571 as appropriate to release the taxpayer's refund(s) if a different valid SSN was supplied.

    4. Send a Letter 239C to taxpayer(s) advising them of the correct SSN to use. If a different valid SSN was not supplied for one of the taxpayers, send a Letter 239C to the taxpayer advising them SSA indicated they were not the CN owner and to continue using the IRSN previously assigned. IRM 25.23.4-1,Paragraphs for Letter 239C.

      Caution:

      When corresponding with the non-owner of the CN, send the letter from the non-owner's IRSN. Do not include the CN in your letter to the non-owner.

    5. If Earned Income Tax Credit (EITC), exemptions and/or credits were previously disallowed because the primary TIN was not valid, and we now have a valid TIN, adjust the account to allow the EITC, exemptions and/or credits.

      Caution:

      If a different valid SSN was not supplied for the taxpayer, and the taxpayer received a refund that included items requiring a valid primary TIN, initiate math error procedures to reverse the items. See IRM 21.5.4, General Math Error Procedures.

    6. Attach a copy of SSA's reply (Form 3857) to the most current year return on file.

    (6) SSA response does not contain sufficient information to resolve the scrambled condition, i.e., both taxpayers are "unknown," or "unable to determine" is written in the remarks areas
    1. If unable to make an ownership determination, send a Letter 239C to each taxpayer advising them SSA was unable to verify the SSN. IRM 25.23.4-1,Paragraphs for Letter 239C.

    2. Input the appropriate closing scrambled SSN indicator on CN and IRSNs. Exhibit 21.6.2-1,Scrambled SSN Indicators.

    3. Associate a copy of SSA's Form 3857 response to the most current year return on file for each taxpayer.

    4. Close case.

    Note:

    This type of response should primarily pertain only to residual SSA2 cases, i.e., SSA2 cases other than True/Default True Scrambled SSN cases that were categorized as SSA2 prior to the current IRM. Before following the steps above, review the case anew using the current guidelines which authorize IRS determinations of CN ownership.

    (7) SSA response indicates that the common number is no longer valid for federal tax purposes SSA supplies a different valid SSN for one or both of the taxpayers
    1. Input SCI "23" on the CN.

    2. Resequence the IRSNs (may be input in the same cycle) to the correct SSNs, if supplied. Include SCI "9."

    3. If a valid different SSN was not supplied for one of the taxpayers, input SCI "23" on the corresponding IRSN.

    4. If a valid different SSN was supplied for the taxpayer(s), input TC 510 and/or TC 571 as appropriate to release refund(s). Adjust the account to allow the EITC, exemptions and/or credits previously disallowed because the primary TIN was not valid.

    5. Send a Letter 239C to each taxpayer advising them of the correct SSN to use. If a valid different SSN was not supplied for one of the taxpayers, send a Letter 239C advising them information from SSA indicates that the SSN shown on their return was not assigned to them.

    6. Attach a copy of SSA's Form 3857 response to the most current year return on file for each taxpayer.

  5. If ownership of the CN is determined and the taxpayer submitted standard identity theft documentation see IRM 25.23.2.17.1, When to Request Additional Information to Support an Allegation of Identity Theft , for acceptable documentation.

  6. If one year passes, and no reply is received from SSA or the taxpayers, pull the scrambled SSN file and review the case. If necessary, send a second Form 3857 request to SSA. See IRM 21.6.2.4.2.8Form 3857, Request for SSN Clarification for required Form 3857 entries.

Scrambled SSN Coordinator Responsibilities
  1. Each campus has a scrambled SSN coordinator. Refer to the Scrambled SSN Coordinator Listing on SERP.

  2. The coordinator ensures:

    • Form 3857 is complete and legible

    • Preliminary research is completed

      Note:

      This can be verified by reviewing the history sheet. The scrambled SSN coordinator must not "rework" the case.



    • The case file is complete.

    • A completed Letter 239C questionnaire for at least one taxpayer is attached to Form 3857.

  3. Forward Form 3857 package to SSA at the following address:

    Social Security Administration
    Division of Earnings Records Operation
    6100 Wabash Avenue
    Baltimore, MD 21215

  4. Forward a list of cases (CN) closed without a SSA Form 3857 response to the Headquarter analyst. List must be submitted weekly by close of business Friday. If Form 3857 was not sent to SSA, do not include the case on the list.

    Caution:

    Use Secure Messaging to forward a listing of SSN’s and/or taxpayer names via email.

  5. Forward a list of cases (CIS ID Number) involving CN ownership determinations made according to the guidelines of the 4th If/Then criterion of IRM 25.23.4.15.2, A Different Valid TIN Is Not Located AND Identity Theft Is Not Indicated By Taxpayer. List must be submitted weekly by close of business Friday.

    Caution:

    Use Secure Messaging when sending case lists by email.

Unallowable (UA) TC 576 Referrals - Scrambled SSN/Mixed Entity
  1. Examination refers open AIMS cases with a UA Hold (TC 576) to AM as "possible scrambled SSN." (Follow local routing procedures.)

    1. Examination secures all returns prior to referral.

    2. Examination processing is suspended pending resolution of the SSN issue.

    3. AM performs all necessary actions to resolve the SSN condition.

    Caution:

    DO NOT ATTEMPT TO RELEASE THE FROZEN REFUND. DO NOT ATTEMPT TO ALLOW EITC ON THESE MODULES.

Unpostable 177
  1. An unpostable 177 condition occurs when a module creating transaction attempts to post to an account on the valid segment of an account that has been scrambled. Scrambled indicator 01, 10, 12, or 20 and MFR 08 will be present.

    Note:

    Current procedures do not require a new review of unpostable 177 cases. A new review would constitute looking at the case anew in terms of the current procedures that authorize IRS determinations of CN ownership. This is not practical and not necessary.

    Exception:

    A new filer on the SSN would be grounds for applying current determination procedures to the case.

  2. The Unpostable Function will contact AM for assistance in resolving the unpostable condition. If there is an open control, the employee who has control will be contacted. If there is no open control, the local Scrambled SSN Coordinator will be contacted. If the SSN was scrambled at another site, the local Scrambled SSN Coordinator will contact the coordinator at the other site.

  3. AM must make every effort to supply the Unpostable function with information to resolve the unpostable condition the same day contacted.

    1. Review the case file to locate the correct IRSN. This must be done the same day AM is contacted. If the taxpayer is a new filer on the SSN, AM must obtain an IRSN for the new taxpayer. If it will take longer than 2 business days, advise Unpostables of the time frame necessary to obtain the information.

    2. Input TC 000 with the appropriate scrambled SSN indicator to establish the IRSN, if needed. Exhibit 21.6.2-1.Scrambled SSN Indicators.

    3. If taxpayer is a new filer on the SSN, send a Letter 239C. IRM 25.23.4-1, Paragraphs for Letter 239C.

    4. Unpostables will forward copies of the unpostable case, including the return, Form W-2, Form 1099, etc. to AM.

    5. Update history sheet and case file. Retain photocopies of the return and Form W-2(s) in the case file.

    6. Send a follow-up Form 3857 to SSA with any new information that will assist in resolving the scrambled condition. Include copies of Form W-2(s), with all money amounts deleted except Social Security and Medicare amounts.

NOMRG Procedures

  1. General procedures for resolving common types of NOMRG cases are listed below. The required action may vary based on statute information. If a taxpayer has tax modules under more than one TIN, every effort must be made to consolidate the accounts under one unique TIN.

    Note:

    If appropriate, move account information to an IRSN to facilitate processing. See IRM 21.6.2.4.3.2NOMRG-DUP One Taxpayer Involved, for general guidelines on the use of an IRSN for resolving NOMRG cases.

  2. If you identify a NOMRG case while staffing the AM toll-free telephone line, or when providing assistance in a Taxpayer Assistance Center (TAC), do not take any account actions. Prepare Form 4442, Inquiry Referral, and route to Brookhaven IDTVA following the procedures in IRM 21.6.2.4.1.4Reassignment of NOMRG Cases due to Site Specialization.

    Exception:

    If there is a relevant open control on the account, refer Form 4442 to the employee who has the open control using Open Control as the reason for the referral. See IRM 21.5.2.3 , Adjustment Guidelines - Research(5).

    Caution:

    If a case is reassigned to the NOMRG unit that does not meet NOMRG reassignment criteria, the case will be rejected back to the originator. The NOMRG employee will annotate the reason for the rejection on the 4442.

  3. NOMRG transcripts generate from both the correct and incorrect accounts when resequencing fails as a result of an entity transaction changing the TIN. The incorrect account may be either a valid or invalid TIN. CC IMFOLE shows the type of transcript generated.

    Caution:

    Individual accounts, such as husband and wife, parent and child, or brother and sister are separate entities and are never merged.

  4. The transcript type is an abbreviated reason for failed merge. The following is a list of transcript types worked by Adjustments:

    • NOMRG–DUP

    • NOMRG–VEST

    • NOMRG–576

    • NOMRG–400

    • NOMRG–424

    • NOMRG–930

    • NOMRG–RPS

    • NOMRGXXSSN

    • NOMRG-VAL

  5. If other NOMRG transcripts are received, follow local procedures.

  6. Some posting delay code cycling noted in resolution of NOMRG transcripts infer "ideal" posting conditions. You may need to suspend the case to verify actions have occurred before taking the next step.

  7. Some modules will require the Assessment Statute Expiration Date (ASED) to be updated to reflect the correct date of the taxpayer's first return. The ASED is based on the first return filed, even if the first return was filed under a wrong TIN. Adjust the ASED, as necessary.

  8. If the valid or invalid account is moved to a temp account and there was a paid user fee (MFT 55) on that account, the user fee should be transferred back to valid segment to ensure the TP is not charged an additional user fee. For additional information on moving the user fee see IRM 5.19.1.5.4.6.3, User Fee Payment Transfer/User Fee Abatements. Also re-establish the IA under the "to account" if you have been trained, if not, send a referral to Collections to have the IA established with a request to waive the user fee.

  9. Consider erroneous refund and moving refund procedures when working NOMRG transcripts.

  10. Consider erroneous abatement and barred assessment procedures when working NOMRG transcripts.

  11. Address all issues on all years before closing your case.

NOMRG-DUP
  1. A NOMRG–DUP transcript generates when:

    • An entire account (entity and all tax modules,) is resequenced from one TIN to another TIN.

    • Both TINs contain a TC 150 for the same period.

    • One or two taxpayers may be involved which may include identity theft.

  2. Other computer checks determine if the TIN is correct for the resequenced accounts. These checks may cause the resequencing action to reject.

NOMRG-DUP One Taxpayer Involved
  1. Research the correct and incorrect accounts. If only one taxpayer is involved, process as follows:

    Note:

    The procedures below are applicable if one or both of the identification numbers is an ITIN. If you are resequencing an ITIN, after the resequence posts complete and send a Form 4442 to the Submission Processing ITIN Unit to have the ITIN revoked. See IRM 3.21.263.7.6Form 4442, Inquiry Referral, and see IRM 21.6.2.4.1.1 Resequencing Actions Required.

    If Then
    Both TINs are valid
    1. Combine all returns belonging to the taxpayer under the correct account.

    2. Input TC 040 or 041 to resequence the incorrect account to an IRSN.

    Tax data is identical on both accounts but the name control or TIN is different
    1. Input TC 040/041 to resequence the incorrect account to an IRSN.

    2. After the merge to the IRSN has been completed, zero out the IRSN account, using the appropriate hold code 4. Input TC 170 .00 when zeroing out the account if TC 807 or transfer of a timely credit is required.

    3. Input TC 971 action code 001 on the IRSN to cross reference the valid TIN.

    4. Input TC 020 on the IRSN. Use posting delay code for 6 cycles, if inputting in the same cycle as TC 29X.
      Note
      : It is not necessary to request returns.

    There is a discrepancy in the tax data
    1. Request returns.

    2. Determine if returns should be consolidated (e.g., additional Form W-2(s), etc.,).

    3. Input adjustment action on the correct account. If a math error is identified, resolve per IRM 21.5.4,General Math Error Procedures.

      Note:

      If an assessment is required to adjust the correct account, and the ASED has expired, see IRM 21.5.2.4.23.9, Moving Assessments.

    4. Input TC 040/TC 041 to resequence the incorrect account to an IRSN. Follow procedures in 2 through 4 above in prior If/Then statement.

    5. Send a Letter 673C to the taxpayer.

    Taxpayer received a refund under both the correct and incorrect account Follow procedures in IRM 21.5.2.4.23.10, Moving Refunds. See also IRM 21.4.5, Erroneous Refunds, if the criteria is met.
    Return is for another tax period, or taxpayer Follow Procedures in IRM 25.23.4.11, Mixed Entity Procedures or IRM 21.6.7.4.2.7.1, Mixed Period.
  2. In some cases it may be necessary to back out the account.

    Caution:

    DO NOT adjust statute expired years. DO NOT reprocess statute period returns or a return within 180 days of the ASED. See IRM 25.23.4.15.4, Determining When Specific Year Account Information Must Be Moved.

    1. Input TC 040/041 to resequence the incorrect account to an IRSN.

    2. Zero out the IRSN account. Input TC 170.00 if TC 807 or transfer of a timely credit is required. If TC 170/TC 176 is present, input TC 171. Use blocking series 05 with the appropriate hold code. Input a posting delay code for 2 cycles.

    3. Input TC 971 action code 001 on the IRSN to cross reference the valid TIN.

    4. Input TC 020 to the IRSN account with a posting delay code for 3 cycles.

    5. Close both control bases.

    6. Refile the return under the original return if no adjustment is necessary on the correct account.

    7. Recharge the return for the incorrect account to the correct account, if necessary.

NOMRG-DUP Two Taxpayers Involved
  1. When research shows two taxpayers are involved:

    1. Research CC INOLE and CC NAMES for a different TIN.

    2. Search CC INOLE and CC IMFOL on any TIN found to determine if a valid TIN can be located for the taxpayer posted on the incorrect segment.

      Note:

      Cases that are identified as a true IDT/NOMRG issue should be worked if you have been trained, otherwise route per local procedures.

    If And Then
    A valid TIN is determined TC 150 is not posted to the module Input TC 041 to resequence the incorrect account. No further action is necessary.
    A valid TIN is determined TC 150 is present on both modules
    1. Resequence the incorrect account to the IRSN.

    2. Back the data off the incorrect account.

    3. Zero out the IRSN account. Input TC 170 .00 if TC 807 or transfer out of a timely credit is required.

    4. Input TC 971 action code 001 on the IRSN account to cross reference valid TINs.

    5. Input TC 020 to the IRSN account with a posting delay code for 6 cycles.

    The valid TIN cannot be determined
    1. Correspond with the taxpayer using the Letter 239C.

    2. Suspend for 40 days, 70 days for overseas taxpayers.

    3. Follow mixed entity procedures or reassign as SCRM, as appropriate.

    The good TP posted to the invalid side The bad TP posted to the valid side See IRM 25.23.4.6 , Multiple Individuals using the Same TIN - General Guidance for MXEN, and Identity Theft Cases.
    The bad TP posted to the invalid side The good TP posted to the valid side See IRM 25.23.4.6 , Multiple Individuals using the Same TIN - General Guidance for MXEN, and Identity Theft Cases.

    Note:

    Accurate and complete research must be performed to determine if the NOMRG DUP transcript is the result of an IDT issue. If research shows that the IRSN was established to resolve the IDT issues, link all the related IDT to your case and post the following canned statement in the case notes "This is not a true NOMRG issue. There are two separate entities due to prior IDT. See linked CIS case(s) for case history."

NOMRG-DUP Processed as Scrambled SSN
  1. See IRM 21.6.2.4.2, Scrambled SSN Case Procedures.

NOMRG-VEST
  1. NOMRG–VEST transcripts generate when one or both accounts contain a Retention Register (vestigial) record for the same tax period. When one taxpayer is involved, determine which years are on the Retention Register File and review account information for those years.

    If And Then
    There is a TC 150 on only one account The accounts can be merged
    1. Reactivate the retention years in question. For example, if there is a vestigial record for 1999 on both accounts, then reactivate the 1999 tax period for both accounts. See IRM 21.5.2.4.13, Reinstating Retention Register Accounts..

    2. Input TC 040/041 to resequence the accounts to the correct TIN when the TC 370 is posted.

    There is a TC 150 on both accounts for the same year The taxpayer filed two returns using two TINs, the accounts cannot be merged Follow procedures in IRM 21.6.2.4.3.2, NOMRG-DUP One Taxpayer.
  2. When two taxpayers are involved, see IRM 21.6.2.4.3.3, NOMRG-DUP Two Taxpayers Involved.

NOMRG-576
  1. A NOMRG-576 transcript is issued when a debit module or module with a TC 570 attempts to merge with a module containing a TC 576.

  2. When one taxpayer is involved, contact Examination to see if input of TC 577, to release TC 576, is possible. After the TC 577 posts, see IRM 21.6.2.4.3.2, NOMRG-DUP One Taxpayer Involved.

  3. When two taxpayers are involved, see IRM 21.6.2.4.3.3, NOMRG-DUP Two Taxpayers Involved.

NOMRG-400
  1. NOMRG-400 transcripts generate when either account contains a module with a TC 400 Freeze (Account Transfer Out), and there is a module with an equal tax period in the other account.

  2. Examine the accounts to determine if an account consolidation is required. If so, take the following action:

    1. Prepare Form 12810 requesting reversal of the TC 400.

    2. Attach a copy of the transcript to the memo and forward to the Accounting function.

    3. Suspend the case (follow local procedures) until you receive a reply indicating the TC 400 is reversed.

    4. Input TC 040/041 to consolidate the accounts, after reply is received.

NOMRG-424
  1. NOMRG-424 transcripts generate when a resequence fails because one or both accounts contain a module with an unreversed TC 424.

  2. Contact Examination for instructions. If TC 424 is reversed, follow normal NOMRG-DUP procedures.

NOMRG-930
  1. NOMRG-930 transcripts generate when:

    • Two accounts attempt to merge as a result of an entity transaction changing TIN

    • Both accounts contain a TC 930 posted for the same tax period

  2. Reverse TC 930 on the incorrect account.

NOMRG-RPS
  1. NOMRG-RPS transcripts generate when:

    • Two accounts attempt to merge

    • Both accounts contain modules for the same period

    • Both modules contain a TC 150 with multiple TCs 610 (one is a Remittance Processing System (RPS) payment)

    • The TC 610 and TC 150 DLNs do not match

    • The payment DLN carries the return DLN plus 400 in the Julian date and is read by the computer as a return

NOMRG-RPS One Taxpayer Involved
  1. When one taxpayer is involved:

    If Then
    A TC 150 is on both the accounts or only on the incorrect account
    1. Resequence the incorrect account to an IRSN, using TC 040/041.

    2. Transfer TC 610 to the correct TIN.

    3. Zero out IRSN. Input TC 170 .00 if TC 807 or transfer out of a timely credit is required. If a TC 170/176 is present, input TC 171. Use blocking series 05 and Hold Code 4.

    4. Input posting delay code for 2 cycles for the credit transfer and adjustment.

    5. Input TC 971 action code 001 on the IRSN account to cross reference correct account.

    6. Input TC 020 to the IRSN with a posting delay code for 3 cycles.

    7. Consolidate data on the correct account, if necessary.

    A TC 150 is not posted on the correct account Reprocess the return.
    The return being input is delinquent and a TC 140 is present on the module Input TC 599 cc 094, Taxable Return secured or 096 Non-taxable return secured (Return shows no tax liability before prepaid credits) and TC 971 action code 017.
    A TC 150 is only on the correct account
    1. Resequence the incorrect account to an IRSN using TC 040/041.

    2. Transfer TC 610 to the correct account. Use posting delay code for 2 cycles.

    3. Input TC 020 to the IRSN account with posting delay code for 3 cycles.

NOMRG-RPS Two Taxpayers Involved
  1. Research for a valid TIN for the taxpayer posted to the incorrect account.

    If a valid TIN is determined AND Then
    TC 150 is not posted to the module Input TC 040/041 to incorrect account to resequence account.
    A TC 150 is present on both modules The data must be backed off the incorrect account.
    A TC 150 is posted on the correct valid TIN Combine the tax data.
    TC 150 is not posted on the correct valid TIN Reprocess the return.
    The return being reprocessed is delinquent and a TC 140 is on the module Input TC 599 cc 094, Taxable Return secured or 096 Non-taxable return secured (Return shows no tax liability before prepaid credits) and TC 971 action code 017.
  2. If a valid TIN cannot be determined, correspond with both taxpayers. Work as a scrambled SSN case, if applicable. Refer to IRM 25.23.4.6, Multiple Individuals Using the Same TIN-General Guidance for MXEN, and Identity Theft Cases.

Scrambled SSN Transcripts
  1. NOMRG-SCRAMBLED SSN (NOMRGXXSSN) transcripts are issued when a resequencing account fails to merge with the "To" account because the "To" account has an SCI 01, 10, 12, 13, 20, or 23 and MFR 08 in the module.

  2. Reassign case as SCRM. Refer to the Accounts Management Site Specialization Temporary Holding Numbers listing located on SERP for the appropriate number.

NOMRG-VAL Transcripts
  1. NOMRG-VAL or NOMRG-FTHBCR Transcripts generate when either or both of the following conditions are present:

    • Both the" from" and "to" accounts contain First Time Homebuyer Credit (FTHBC) amounts for the primary taxpayer

    • Both the "from" and "to" accounts contain First Time Homebuyer Credit (FTHBC) amounts for the secondary taxpayer

  2. The FTHBC can be found on CC IMFOLF. Adjust the FTHBC as appropriate. See IRM 21.6.3.4.2.10.7, First-Time Homebuyer Adjusting Accounts.

  3. Follow Erroneous Refund procedures to recover any erroneously refunded FTHBC credits. See IRM 21.4.5.4.2, Category A2 Erroneous Refunds. For more on the FTHBC credit, see IRM 21.6.3.4.2.10,First-Time Homebuyer Credit.

Tax Year Account Move Conditions Applicable for NOMRG Cases
  1. If moving posted tax account information is an issue, the tax account information should be moved when any of the following conditions are met:

    • The Assessment Statute Expiration Date (ASED) is open.

      Reminder:

      If the ASED is expired or imminent on a tax return to be reprocessed, NEVER abate tax on the "from" account until the reprocessing is complete and the tax has posted.

      Caution:

      The ASED does not apply on a case that has been determined a nullity. The return must be considered valid in order for the ASED to apply. Refer to IRM 25.6.1.6.14 paragraph (3)(b), Criteria for Establishing a Statute of Limitations Period, for additional information.

    • There is a "-C" freeze on the tax year account. A "-C" freeze indicates the taxpayer is/was in a combat zone and the time period for filing a return for that tax year may have been extended.

      Caution:

      Combat Zone (CZ) accounts, identified by a -C freeze, indicate a taxpayer who is or was serving in a designated combat zone area. NOTE: The C freeze stays on the account for historical purposes, See IRM 5.19.10.6.3 (1), Combat Zone Freeze Code, even after the taxpayer is no longer in the CZ. When working an account that contains a -C freeze, additional research is required to determine that taxpayer’s CZ status. Research CC IMFOLE for the Combat indicator on Line 11, to determine the correct action to take based on the following: If Combat indicator is "1" , then the taxpayer is still serving in a combat zone. Any compliance activity such as assessing or collecting tax is prohibited. However, if the taxpayer has other issues or requests information, you may work these other issues and contact the taxpayer if needed. If Combat indicator is "2" , then the taxpayer is no longer a combat zone participant. Follow normal IRM procedures to work the case.

    • There is a balance owed on the tax year account.

      Note:

      Contact Automated Underreporter (AUR) if there is an AUR assessment which appears to be incorrect. See Exhibit 4.13.7-6Addresses for AUR Reconsideration Requests, to determine who to contact. The contact may give you approval to reverse the AUR assessment. Document your AUR contact and their response on the CIS case.

    • The tax year account has an overpayment that must be refunded.

      Caution:

      If there is an indication another area is considering action on the tax year account, e.g., an open control by Exam, AUR, Collections, etc., contact the area. The tax year may need to be moved based on the action they are taking on the account. Document your contact in the CIS notes.

      If Then
      None of the conditions in the bullet list above are met Proceed to IRM 25.23.4.16, Not Moving Specific Year Account Information.
      One or more of the conditions in the bullet list above is/are met Proceed to IRM 25.23.4.17, Moving Specific Year Account Information.
TDA, NOMRG Issue
  1. NOMRG-TDA transcripts are received initially by CSCO. Per IRM 5.19.10.5.11.1, Processing NOMRG-TDA Transcript, CSCO will reassign to AM if there is a TC 150 posted on both numbers.

  2. NOMRG-TDA transcripts received in AM should be worked like NOMRG-DUP. See IRM 21.6.2.4.3.1, NOMRG-DUP.

UPC 134-3
  1. UPC 134-3 generates on CC ENMOD when a resequence fails because the "from" account contains a TC 898 within 6 years of the original offset date.

  2. The "from" account's validity will determine what actions are necessary to reverse the TC 898.

  3. If the "from" account is a valid taxpayer identification number (TIN) take the following actions:

    1. If appropriate reverse the TC 898 following the instructions in IRM 21.4.6.5.19, Re-sequence Cases.

    2. Follow NOMRG-DUP instructions. See IRM 21.6.2.4.3.1, NOMRG-DUP.

  4. If the "from" account is an invalid TIN take the following actions:

    Caution:

    Do not attempt to reverse the TC 898. An adjustment input to the invalid segment will attempt to post to the valid segment.

    1. Verify that no other conditions are present on the invalid segment which would prevent a successful merge. See IRM 21.6.2.4.1.3, Resequencing Action Required.

    2. Input TC 040 to move the valid segment of the TIN to an Internal Revenue Service Number (IRSN).

      Note:

      If the merge is successful the valid segment will become available. Once the DM-1 tape runs the invalid segment will systemically resequence to the valid segment.

      Caution:

      The TC 898 NOMRG condition will be bypassed only if the resequence is initiated systemically.

    3. Once the "from" account has merged to the valid segment adjust the account to reverse the TC 898 offset.

    4. Follow NOMRG-DUP instructions to resolve the NOMRG condition. See IRM 21.6.2.4.3, NOMRG Procedures .

      Note:

      If necessary, obtain a second IRSN and move the "from" account now on the valid segment of the TIN, to the second IRSN.

Revalidation (REVAL) Transcripts

  1. REVAL transcripts generate from the invalid TIN or from the ITIN of a failed merge. Apply the following procedures for REVAL cases.

  2. The transcript type is the abbreviated reason for the failed merge. The Adjustment Function works the following transcripts:

    • REVAL-DUP

    • REVAL-VEST

    • REVAL-576

    • REVAL-400

    • REVAL-424

    • REVAL-RPS

    • REVALXXSSN

  3. Consider erroneous refund and moving refund procedures when working NOMRG transcripts.

  4. Consider erroneous abatement and barred assessment procedures when working NOMRG transcripts.

REVAL-One Taxpayer (One Sided)
  1. A one-sided REVAL is a successful merge posted to the invalid side of the TIN. Only one taxpayer is involved.

  2. Input TC 041 with the taxpayer's correct first name line, using the year digit of the most recent module account. This forces the account to the proper segment. See IRM 3.13.5.124 , Invalid Segment Bypass (TC 041).

REVAL-DUP One Taxpayer Involved
  1. REVAL-DUP transcripts generate when:

    1. The SSA Data tape changes the validity of a Name Control (NC) and causes an attempted merge of two accounts.

    2. Each account contains a TC 150 for the same period(s).

  2. These transcripts generate automatically with the quarterly update of the SSA Data tape.

    1. Transcripts contain data on both the "to" and "from" accounts.

    2. REVAL-DUP transcripts may involve one or more taxpayers.

  3. Research the correct and incorrect accounts. If only one taxpayer is involved, take the following action on the incorrect account:

    1. Input TC 041 to resequence the account to an IRSN.

    2. Zero out the IRSN account after the merge to the IRSN has been completed.

    3. Input TC 170 .00 when zeroing the account if TC 807 or transfer of a timely credit is required. If a TC 170/TC 176 is present, input TC 171. Use blocking series 05, with hold code 4.

    4. Input TC 971 action code 001 on the IRSN to cross reference the valid TIN.

    5. Input TC 020 to the IRSN with a posting delay code for 3 cycles.

  4. Take the following action on the correct account:

    1. Input an entity change in the same cycle as the back out of the IRSN account, for the latest period name line to correct the name and address.

      Note:

      A NOMRG-DUP case is created if the name is changed on the correct account before the resequence posts. DO NOT input an entity change if the NC is accurate.

    2. Analyze the returns to determine if adjustment action is necessary.

    If Then
    An adjustment is necessary Consolidate the returns on the correct account.
    No adjustment is necessary
    1. Input a TC 290 .00 two cycles after the action taken in (4) above.

    2. Use the appropriate refile blocking series.

    3. Attach both returns to the adjustment document.

  5. If the taxpayer received a refund under both the correct and incorrect accounts, follow erroneous refund procedures in IRM 21.4.5, Erroneous Refunds.

REVAL-DUP Two Taxpayers Involved
  1. If a REVAL-DUP transcript generates with two taxpayers involved, follow instructions in IRM 21.6.2.4.3.3, NOMRG-DUP Two Taxpayers Involved.

REVAL-VEST
  1. A REVAL-VEST transcript generates when a resequence fails and both of the following conditions exist:

    • A retention record is on one account and the same module is on the other account (either on retention or MF)

    • The SSA Data tape changes the validity of name control causing it to post to the invalid side or on the ITIN.

  2. Research retention accounts for (valid and invalid for same TIN or on the ITIN and SSN).

    If Then
    Consolidation is unnecessary or impossible after the resequence attempt Destroy the transcripts.
    Consolidation is necessary (consider statute of limitations)
    1. Obtain an IRSN.

    2. Reactivate the retention years in question. See, IRM 21.5.2.4.13 , Reinstating Retention Register Accounts.

    3. Input TC 041 to resequence the invalid TIN to the IRSN.

TC 370 Posts-One Account Has a TC 150
  1. When the TC 370 posts and for the same module, only one account has a TC 150:

    If Then
    The NC is not accurate on the account Input an entity change to correct the name for the latest period name line.
    An entity change was made on the correct account
    1. Input TC 041 to merge the incorrect account on the IRSN to the correct account.

    2. Use posting delay code 1.

TC 370 Posts - Both Accounts Have TC 150
  1. When TC 370 posts and there is a TC 150 on both the correct and IRSN accounts for the same module, analyze them to determine if an adjustment action is necessary.

    If Then
    The correct account, same module, will not be adjusted Input TC 020 on the IRSN.
    The NC is not accurate on the correct account Input an entity change to correct the name for the latest period name line.
    The correct account's same module will be adjusted (e.g., 25 percent omission of income)
    1. Zero out the IRSN's same module. Input TC 170 .00 if TC 807 or transfer of a timely credit is required. If TC 170/176 is present, input TC 171.

    2. Use blocking series 05, with appropriate hold code.

    3. Input TC 971 action code 001 on the IRSN account to cross-reference the valid SSN.

    4. Input TC 020 to IRSN account with a posting delay code for 1 cycle.

    5. Adjust correct account's same module.

    6. Correct the name for the latest period name line in the same cycle as the back out of the IRSN.

  2. Adjust the correct account if the adjustment action is necessary for any other module. This can be done only after the name change, if input, is posted.

REVAL-576
  1. A REVAL-576 transcript generates when:

    • A debit module or module with a TC 570 attempts to merge with a module containing a TC 576

    • The TIN validity of NC changes

  2. Contact Examination for input of TC 577 to release the TC 576. Take the following action after the TC 577 posts:

    If Then
    Only one account contains a TC 150 Input TC 041 to resequence the account.
    Both accounts contain a TC 150 Follow REVAL-DUP procedures.
REVAL-400
  1. REVAL-400 transcripts generate when the file validity to which the account is returned is opposite to the correct account's validity.

  2. Follow instructions in IRM 21.6.2.4.3.7 , NOMRG-400.

REVAL-424
  1. REVAL-424 transcripts generate when a resequence fails because:

    • One or both accounts contain a tax module with an unreversed TC 424

    • The TIN validity of the file to which the account is returned is opposite to the account's TIN validity

  2. After TC 424 is reversed, follow procedures in IRM 21.6.2.4.3, NOMRG Procedures.

REVAL-RPS
  1. REVAL-RPS transcripts generate when:

    • The SSA Data tape changes the validity of the NC causing two accounts to attempt to merge

    • Both accounts contain a combination of a TC 150 and multiple TC 610 (one is an RPS) for the same tax period

REVAL-RPS One Taxpayer Involved
  1. Action required when one taxpayer is involved:

    1. Resequence the incorrect account to an IRSN using TC 041.

    2. Transfer the TC 610 to the correct account.

    3. Zero out the IRSN account, using the appropriate hold code. Input TC 170 .00 if a TC 807 or transfer out of a timely credit is required. Input TC 171 if TC 170 TC 176 is present.

    4. Input a posting delay code for 2 cycles for the credit transfer and adjustment.

    5. Input TC 971 action code 001 on the IRSN to cross-reference correct TIN.

    6. Input TC 020 to the IRSN with a posting delay code for 3 cycles.

    7. Correct the name for latest period name line, on correct account, in the same cycle as the back out of the IRSN.

REVAL-RPS Two Taxpayers Involved
  1. Research for a valid TIN for the taxpayer posted to the incorrect account when two taxpayers are involved.

    If a valid TIN is determined and Then
    TC 150 is not posted to the module Input TC 040/041 to the incorrect account to resequence the account.
    A TC 150 is posted on both accounts
    1. The data must be backed off the incorrect account.

    2. Follow procedures in IRM 21.6.2.4.4.11 , REVAL - RPS One Taxpayer Involved.

    TC 150 is posted on the correct valid TIN Combine the tax data.
    TC 150 is not posted on the correct valid TIN Reprocess the return.
    The return being reprocessed is delinquent with a TC 140 present on the module Input TC 599 cc 094, Taxable Return secured or 096, Non-taxable return secured (Return shows no tax liability before prepaid credits) and TC 971 action code 017.
  2. Correspond with both taxpayers if a valid TIN cannot be determined. If both taxpayers claim a SSN; work as a scrambled SSN case.

REVALXXSSN
  1. REVAL SCRAMBLED SSN (REVALXXSSN) transcripts generate if the validity of the CN and SSN are opposite the validity of the segment to which it was returned after a failed merge on a scrambled SSN case.

  2. Reassign case as SCRM. Refer to the Accounts Management Site Specialization Temporary Holding Numbers listing located on SERP for the appropriate number.

Telephone Inquiries Regarding Mixed Entity and Scrambled SSN Cases

  1. A mixed entity case or scrambled SSN case controlled on IDRS can be identified by control categories MXEN, MXSP SCRM or SSA2. Telephone CSRs must not make adjustments or take any account actions on open controlled mixed entity or scrambled SSN accounts.

    • Do Not input address change(s) on the account(s)

    • Do Not release overpayment(s) held on the account(s). If the taxpayer is claiming a hardship, refer the case to the Taxpayer Advocate Service (TAS) for hardship determination per IRM 21.4.4.2, Why Would a Manual Refund Be Needed?

    • Do Not attempt to resequence the account(s).

    • Do Not attempt to unscramble the account(s).

    • Do Not input adjustments.

    • Do Not release freeze conditions on the account.

    Note:

    If the caller indicates they may be a victim of identity theft, refer to IRM 25.23.12.3, Identity Theft Telephone Overview and General Guidance, and the related subsections for information and guidance.

  2. If a Letter 239C has been sent and the taxpayer has not responded, advise the taxpayer to complete the questionnaire and return it with all of the documentation requested. See IRM 21.6.2.4.2.5, Determining if the Refund Should be Released, for documentation requested in the Letter 239C.

  3. On open cases, regardless of the result of the disclosure probes performed in IRM 21.1.3.2.3, Required Taxpayer Authentication, you cannot give out specific account information on the common number, unless the taxpayer passes additional authentication. For additional information, see IRM 21.1.3.2.4, Additional Taxpayer Authentication. If the caller fails additional taxpayer authentication, you can provide general information on procedures and processing times. You can also accept information about which returns the caller filed.

    Caution:

    Do not assume that the taxpayer calling is the true owner of the SSN. Determine if you are speaking with the taxpayer who filed the TC 150 or the TC 976 by asking questions related to the appropriate return and data on IDRS. The true owner of the SSN can only be determined by a CSR/TE who has been trained in working TIN-Related Problem cases and who makes the determination after all necessary research steps are taken. As a CSR on the toll-free line, you may have the experience to work TIN-Related Problem cases, but your duties on the toll-free line do not allow the extended amount of time necessary to perform complete research.

  4. When appropriate, customer service representatives (CSRs) should prepare a Form 4442 to refer taxpayer inquiries regarding open mixed entity and scrambled SSN cases to the controlling CSR (example: if this is the taxpayer’s first time calling and the required processing time frame has passed). To assist with the resolution of the case, obtain all pertinent information from the caller, including the following:

    • Whether the caller is responding to a letter or notice; for example, Letter 239C

    • The date the letter was issued

    • A telephone number(s) where the taxpayer can be reached and the best time for us to reach them

    • The current address, which may be the same as the address on the SSN owner’s return

    • Information on whether the caller's return was filed electronically or by paper

    • The date the caller’s return was filed and the amount of refund expected

    • Other pertinent information filed on the return that will assist the employee in resolving the case

    Example:

    If the TIN was used by more than one family member, notate the name and correct TIN for each individual on Form 4442 .

    Note:

    Also enter a case note on CIS as follows "IDT 4442 present - Check AMS History".

    Note:

    Do not prepare a referral (Form 4442 ) if this is the taxpayer's first time calling and the processing time frame has not passed. If the taxpayer is calling only to check on the status of their refund/claim and no additional information is provided, then provide an update on the status of the case based on your research and CIS case notes.

    Reminder:

    You cannot provide specific details on the case, but you can utilize CIS cases notes to provide an expected time frame for resolution of the case.

  5. If a referral is required on an MXEN/MXSP case while staffing the AM toll-free telephone line, or if you are located in a Taxpayer Assistance Center (TAC), prepare Form 4442 , Inquiry Referral, as follows:

    If there is... Then refer Form 4442 to...
    An open control The employee who has a control on the account.

    Note:

    Do not refer cases with IDRS numbers listed as temporary holding numbers in Accounts Management Site Specialization Temporary Holding Numbers. These are temporary holding numbers that are used as a result of the Site Specialization Process. For cases assigned to a temporary holding number, use the procedures below related to "no open control cases."

    Reminder:

    Open control cases should not be faxed to the ICM in IDTVA. The Form 4442 should be referred to the site where the open control resides.

    No open control (The case is not assigned to an employee or is assigned to a temporary holding number.) To the local campus AM paper function in your directorate.
  6. If a referral is required on a Scrambled SSN case, prepare Form 4442 as follows:

    If there is... Then refer Form 4442 to...
    An open control The employee who has a control on the account.

    Note:

    Do not refer cases with IDRS numbers listed as temporary holding numbers in Accounts Management Site Specialization Temporary Holding Numbers. These are temporary holding numbers that are used as a result of the Site Specialization Process. For cases assigned to a temporary holding number, use the procedures below related to "no open control cases."

    Reminder:

    Open control cases should not be faxed to the ICM in IDTVA, unless your site does not work SCRM cases. The Form 4442 should be referred to the site where the open control resides.

    No open control (The case is not assigned to an employee) To the Inventory Control Manager (ICM). The fax number is≡ ≡ ≡ ≡ ≡ ≡ ≡ (for internal use only). Address the fax to "IDTVA ICM," and in the notes section of the fax cover sheet indicate "SCRM" .

    Note:

    A referral should only be faxed to the IDTVA ICM if there is no open control to an employee and the taxpayer is providing additional information that will assist in the resolution of the case.

  7. If the case is closed/resolved, you may provide account information to the TIN owner utilizing normal procedures. You may provide the TIN owner with the information from his/her return(s) only. Do not provide the TIN owner with information from returns belonging to other individuals (the mixed entity or scrambled SSN returns).

  8. Low Income Taxpayer Clinics (LITCs) are independent from the IRS. They may be able to assist low income taxpayers in resolving issues with the IRS involving a mixed entity or scrambled SSN case. LITCs may also provide information in different languages about taxpayer rights and responsibilities for individuals who speak English as a second language. If appropriate, notify the taxpayer about the availability of LITCs. Refer the taxpayer to Publication 4134, Low Income Taxpayer Clinic List.

Scrambled SSN Indicators

The following two digit scrambled indicators pertain to scrambled SSN cases. Some of the indicators are no longer input on newly processed cases. These obsolete indicators are duly noted, and are included in the list for the purpose of identifying actions taken on residual cases.

Indicator Used when
01 Completed Letter 239C questionnaire received from at least one taxpayer. Form 3857 sent to SSA.

Note:

This indicator is no longer input on newly processed cases.

09 Scrambled indicator needs to be turned off.
10 Account is being scrambled. Form 3857 is not sent to SSA.
12 True/Default True Scrambled SSN case. Form 3857 sent to SSA.
13 SSN not valid for federal tax purposes.
20 Case closed, no Letter 239C questionnaire received or SSA response is insufficient to resolve scrambled SSN condition.

Note:

This indicator is applicable only for cases worked per prior versions of this IRM.

21 Case closed, scrambled SSN condition resolved with SSA Form 3857 response or an SSA SSN verification printout.

Note:

The SSA SSN verification printout is no longer sufficient proof of ownership of the SSN. SCI 21 is applicable for cases worked per prior versions of this IRM.

22 Case closed, scrambled SSN condition resolved with SSA Form 3857 response. Information indicates case was a True (non-default) scrambled SSN.
23 Case closed with SSA Form 3857 response which indicates SSN is not valid for federal tax purposes.

Note:

This indicator is applicable only for cases worked per prior versions of this IRM.

24 Reserved