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Part 21. Customer Account Services

Chapter 7. Business Tax Returns and Non-Master File Accounts

Section 9. BMF Duplicate Filing Conditions

21.7.9 BMF Duplicate Filing Conditions

Manual Transmittal

July 31, 2026

Purpose

(1) This transmits revised IRM 21.7.9, Business Tax Returns and Non-Master File Accounts, BMF Duplicate Filing Conditions.

Material Changes

(1) This IRM was revised to reflect the following changes:

IRM SubsectionDescription
IRM 21.7.9.1Update title from Business Master File (BMF) Duplicate Filing Conditions to Program Scope and Objectives.
IRM 21.7.9.1.6Update title from Terms/Definitions/Acronyms to Terms and Acronyms
IRM 21.7.9.2Update Taxpayer Advocate Service (TAS) guidance in paragraph (6) including AM no longer prepares Form 911/e-911. IPU 26U0037 issued 01-02-2026.
IRM 21.7.9.2Update to clarify referral to assigned revenue officer (RO) if the account is in status 26. Convert paragraph (5) to a table for reading ease.
IRM 21.7.9.3Update to include reference to Form 709-NA. IPU 25U3624 issued 10-06-2025.
IRM 21.7.9.3Update to clarify referral to assigned revenue officer (RO) if the account is in status 26.
IRM 21.7.9.3.1Update paragraph (3), row 1, to include guidance to input TC 599 cc 94 or 96 if the current module status is 02 or 03. This change was submitted with Feedback # 34184. IPU 25U3624 issued 10-06-2025.
IRM 21.7.9.3.1Reword for ease of understanding/readability.
IRM 21.7.9.3.2Delete subsection as Notice 2015-73 is obsolete per Executive Order 14219 and Notice 2025-22. IPU 25U3743 issued 12-17-2025.
IRM 21.7.9.3.2The material in IRM 21.7.9.3.2 is obsolete per the Tax Cuts and Job Act which eliminated the rule for technical terminations for partnerships.
IRM 21.7.9.3.3.1Reword for ease of understanding/readability.
IRM 21.7.9.3.4Reword for ease of understanding/readability.
IRM 21.7.9.4Reword for ease of understanding/readability.
IRM 21.7.9.4.1Add information about the new Aggregate Return Filer Only section on certain employment tax returns and direct deposit option on most business tax returns. IPU 26U0364 issued 03-26-2026.
IRM 21.7.9.4.1Update to include reference for superseding returns. This change was submitted with Feedback # 39893.
IRM 21.7.9.4.1Update to include to compare the DLN to confirm the correct document was received. Add reference to superseding returns. Reword for ease of understanding/readability.
IRM 21.7.9.4.1.1.1.1Update to clarify what command code (CC) to use when inputting an adjustment and cross reference when reprocessing returns.
IRM 21.7.9.4.1.1.1.2Update to clarify what command code (CC) to use when inputting an adjustment and cross reference when reprocessing returns. Update paragraph (1b) to include link to IRM 21.7.9.4.1.1(5).
IRM 21.7.9.4.1.1.2Update paragraph (2) to include EIN/TIN in the instructions on how to correct the ASED. This change was submitted with Feedback # 32712. IPU 25U3624 issued 10-06-2025.
IRM 21.7.9.4.1.1.2.1Update to clarify what command code (CC) to use when inputting an adjustment and cross reference when reprocessing returns. Specify what paragraph to reference when linking to IRM 21.7.9.4.1.1. This change was submitted with Feedback # 40207.
IRM 21.7.9.4.1.1.2.2Update to clarify what command code (CC) to use when inputting an adjustment and cross reference when reprocessing returns. Update paragraph (1) (b) to include link to IRM 21.7.9.4.1.1(5).
IRM 21.7.9.4.1.2Update paragraph (1), row 2, to include guidance regarding the input of TC 971 AC 017. This change was submitted with Feedback # 34129. IPU 25U3624 issued 10-06-2025.
IRM 21.7.9.4.1.2Update to the suspense timeframes. This change was submitted with Feedback # 36535. IPU 26U0275 issued 03-02-2026.
IRM 21.7.9.4.1.2Clarify ESTAB timeframes. This change was submitted with Feedback # 38710. IPU 26U0458 issued 04-21-2026.
IRM 21.7.9.4.1.2Update to clarify what command code (CC) to use when inputting an adjustment and cross reference when reprocessing returns.
IRM 21.7.9.4.1.2.1Reword guidance for clarity. This change was submitted with Feedback #36322. IPU 26U0275 issued 03-02-2026.
IRM 21.7.9.4.1.2.1Update to remove references to legacy e-file. Update paragraph (3) information into a bullet list for ease of reading.
IRM 21.7.9.4.1.2.2Add information regarding multiple amended filings may result in a CII case having multiple return images.
IRM 21.7.9.4.1.2.3The material in IRM 21.7.9.4.1.2.3 is obsolete because Legacy e-file was retired at the end of 2015.
IRM 21.7.9.4.1.2.4Reword for readability.
IRM 21.7.9.4.1.4Reword for readability.
IRM 21.7.9.4.1.5Update to include a caution in paragraph (4) (c) to pay attention if a TC 606 is present in the module when decreasing the tax. This change was submitted with feedback 40106. Reword for readability.
IRM 21.7.9.4.1.6Update to clarify referral to assigned revenue officer (RO) if the account is in status 26.
IRM 21.7.9.4.1.6.1Update to the suspense timeframes. Add a note to paragraph (4) advising processing a dummy return is not considered reprocessing.
IRM 21.7.9.4.1.6.2Update to the suspense timeframes. Reword for readability.
IRM 21.7.9.4.2Reword for clarity.
IRM 21.7.9.4.10Update to the suspense timeframes. Reword for clarity.
IRM 21.7.9.4.10.3Update to clarify what command code (CC) to use when inputting cross reference when reprocessing returns. Update to improve readability.
IRM 21.7.9.4.10.4Update to clarify what command code (CC) to use when inputting cross reference when reprocessing returns. Update to improve readability.
IRM 21.7.9.4.10.5Update to the suspense timeframes. This change was submitted with Feedback #36535. IPU 26U0275 issued 03-02-2026.
IRM 21.7.9.4.10.5Update table in paragraph 2, row 2, to clarify reference to IRM 21.7.2.4.4.3.2 pertains to employment tax. Update to improve readability.
Editorial revisionsAn artificial intelligence (AI) tool assisted with editorial revisions throughout this IRM section, including applying plain language techniques, adhering to the IRM Style Guide and content organization.
Editorial-type changesEditorial changes have been made throughout the IRM to correct typographical errors. IPU 25U3624 issued 10-06-2025.

 

Effect on Other Documents

IRM 21.7.9, dated August 20, 2025 (effective October 1, 2025), is superseded. The following IRM Procedural Updates (IPUs) have been incorporated into this IRM: IPU 25U3624 issued 10/06/2025, IPU 25U3743 issued 12/17/2025, IPU 26U0037 issued 01/02/2026, IPU 26U0275 issued 03/02/2026, IPU 26U0364 issued 03/26/2026, and 26U0458 issued 04/21/2026.

Audience

This IRM is intended for Customer Account Services employees working Business Master File Duplicate Filing Conditions.

Effective Date

(10-01-2026)

Lucinda Comegys
Director, Accounts Management
Taxpayer Services

21.7.9.1 (10-01-2026)

Program Scope and Objectives

  1. This section contains information on Business Master File (BMF) accounts involving duplicate filing conditions.
  2. Purpose: The procedures in this IRM are a translation of a variety of legal and administrative authorities into practical guidance for the customer service representatives (CSRs) and tax examiners (TEs) who are assigned BMF duplicate filing condition inventory.
  3. Audience: The primary users of this IRM are CSRs and TEs who are assigned BMF duplicate filing condition inventory.
  4. Policy Owner: The policy owner is the Director, Accounts Management, Taxpayer Services.
  5. Program Owner: The program owner is Taxpayer Services, Accounts Management, Policy and Procedures BMF (PPB).
  6. Primary Stakeholders: The primary stakeholders are Taxpayer Services (TS), Small Business/Self-Employed (SB/SE), and Large Business and International (LB&I).
  7. Program Goals: The BMF sites strive to maintain integrity, quality, and excellence in the service provided to taxpayers by making every effort to achieve a high customer accuracy and efficiency rate. The duplicate filing condition program goals are included with other BMF tax type inventory production goals published in the annual Accounts Management Program Letter.
21.7.9.1.1 (08-23-2021)

Background

  1. Accounts Management (AM) employees respond to taxpayer inquiries (phone and paper) as well as claims, certain applications, internal requests, and transcripts.
  2. IRM 21.7.9 provides guidance to AM employees assigned duplicate filing condition inventory. The inventory includes all BMF tax types (i.e., Form 94X series, Form 1120 series, Form 1065, Form 1041, etc.).
21.7.9.1.2 (08-23-2021)

Authority

  1. In addition to all official guidance on general tax matters, the administration of tax accounts discussed in this IRM is based primarily on tax law provisions found under U.S. Code, Title 26, Internal Revenue Code, Subtitle F, Procedures and Administration, and related regulations, treasury decisions, revenue procedures, revenue rulings, notices, tax forms and instructions, and publications.

  2. IRM 1.2.1.13, Policy Statements for Customer Account Services Activities, contains the policy statements which relate to Customer Account Services activities. The following are used by this program:

    • Policy Statement 21-1 (Formerly P-6-1) - Service Commitment to Taxpayers Service Program
    • Policy Statement 21-2 (Formerly P-6-10) - The public impact of clarity, consistency, and impartiality in dealing with tax problems must be given high priority
    • Policy Statement 21-3 (Formerly P-6-12) - Timeliness and Quality of Taxpayer Correspondence
    • Policy Statement 21-4 (Formerly P-6-13) - One-stop service defined
    • Policy Statement 21-5 (Formerly P-6-40) - Assistance furnished to taxpayers in the correction of accounts

     

21.7.9.1.3 (08-23-2021)

Roles and Responsibilities

  1. The Director of Accounts Management has oversight responsibility for this IRM.
  2. Accounts Management Policy and Procedures BMF (PPB) has responsibility for this IRM content which issues guidance to employees who assist taxpayers with resolving account issues and processing amended returns. These procedures include Internal Data Retrieval System (IDRS) input instructions. This IRM is published on an annual basis.
  3. Site management officials provide daily program support through quality review, training, timely communication of procedural changes within the program, and elevation of guidance gaps.
  4. Employees working the program are responsible for following IRM guidance, completing assigned training, reviewing updates during read time, and reporting guidance gaps to management.
21.7.9.1.4 (08-23-2021)

Program Management and Review

  1. Program management and review are essential for achieving the program goals identified in the Accounts Management Program Letter. Employees successfully using IRM guidance to perform necessary account actions and duties determines the program effectiveness. The duplicate filing condition inventory is combined with other BMF inventory streams and randomly selected for review. Centralized Evaluative Review (CER) and site managers determine the review allocation to ensure the employee receives a balance of phone and paper reviews relative to their work assignments.

  2. The program monitoring and work reviews are performed for the following reasons:

    • To make an objective assessment of an employee's performance on an ongoing basis and to ensure that adequate information is available for mid-year and annual appraisals.
    • To protect customer rights.
    • To identify error trends and training needs.

     

  3. Centralized Evaluative Review (CER) conducts quality telephone reviews through Verint and correspondence reviews through the Correspondence Imaging Inventory (CII).

  4. Site managers conduct the following types of reviews:

    • Inventory management using the CCA 4243, IDRS Automated Age Listing (AAL) and CCA 4244, IDRS Multiple Case Control Listing. Aged listings are available on the Control-D/Web Access server, which has a login program control.
    • IDRS security reviews.
    • Performance reviews to evaluate effective case and call resolution according to IRM guidelines.
    • Side-by-side non-evaluative reviews for skill development.
    • Reviews of closed cases to evaluate accuracy and productivity and determine whether work is being closed in an efficient and effective manner.
    • Workload reviews to assess whether the amount of time spent is commensurate with the complexity and type of work.
    • Reviews of cases currently in process to ensure that inventory is being closed according to the received date and that cases are not unnecessarily suspended.

     

21.7.9.1.5 (08-23-2021)

Program Controls

  1. The duplicate filing condition inventory is combined with other BMF inventory streams and subject to Accounts Management (AM) enterprise controls. This program is included in all BMF management reviews and operational reviews.
  2. AM uses the Embedded Quality Review Program to review closed cases. The quality review process provides a method to monitor, measure, and improve the quality of work. Quality review data is used to provide quality statistics for the IRS’s Business Results portion of the Balanced Measures, and/or to identify trends, problem areas, training needs, and opportunities for improvement.
  3. The Centralized Quality Review System (CQRS) is operated by the Joint Operations Center (JOC) to provide independent quality review services for product lines.
  4. Local reviews are performed to focus attention on areas that require improvement. Staff reporting to the Quality Assurance Manager, Corrective and Preventative Action System Manager (CPAS), or other units that have quality assurance responsibilities perform these reviews. Local quality reviews are also used for employee development and on-the-job instruction.

  5. Quality review data is used by management to provide a basis for measuring and improving program effectiveness by identifying:

    • Defects resulting from site or systemic actions or inactions,
    • Drivers of customer accuracy,
    • Reasons for defect occurrence,
    • Defect trends,
    • Recommendations for corrective action, and
    • Training needs.

     

21.7.9.1.6 (10-01-2026)

Terms and Acronyms

  1. The ReferenceNet Legal and Tax Research Service page provides an Acronym Database to research acronyms found within this IRM.

  2. All but the most common acronyms found in this IRM are spelled out when they are used for the first time in a subsection. The following table provides some common acronyms:

    AcronymDescription
    BMFBusiness Master File
    BSBlocking Series
    CAWRCombined Annual Wage Reporting
    CCCComputer Condition Code
    CIICorrespondence Imaging Inventory
    CRNCredit Reference Number
    CSRCustomer Service Representative
    DLNDocument Locator Number
    DUPFDuplicate Filing Condition
    EUPEmployee User Portal
    FTDFederal Tax Deposit
    HCHold Code
    IATIntegrated Automation Technologies
    IDRSIntegrated Data Retrieval System
    IRNItem Reference Number
    MFMaster File
    MeFModernized e-File
    NMFNon-Master File
    ROFTLRecord of Federal Tax Liability
    TASTaxpayer Advocate Service
    TCTransaction Code
    TETax Examiner
    TRNSTranscript

     

21.7.9.1.7 (08-23-2021)

Related Resources

  1. The following lists the primary IRM sources for working BMF duplicate filing conditions.

    • IRM 4.25.2, Campus Estate and Gift
    • Exhibit 21.2.2-2, Accounts Management Mandated IAT Tools
    • IRM 21.7.1, BMF/NMF Miscellaneous Information
    • IRM 21.7.2, Employment and Railroad Tax Returns
    • IRM 21.7.3, Unemployment Taxes
    • IRM 21.7.4, Income Taxes/Information Returns
    • Accounts Management Case Management Guidelines Job Aid

     

21.7.9.2 (10-01-2026)

Business Master File (BMF) Duplicate Filing Conditions Overview

  1. A duplicate filing condition occurs when a return (transaction code (TC) 976) posts to a module already containing a return (TC 150). The Integrated Data Retrieval System (IDRS) generates a -A freeze, which prevents any refund or offset from the module until an adjustment (TC 29X) is made. IDRS also generates a transcript (TRNS) 193 or TRNS 293 (when there is an open (unreversed) TC 420). The transcript is associated with the TC 976 return and forwarded to Accounts Management, Excise, or Estate and Gift, based on the category code described in paragraph (3).
  2. TRNS 193 and TRNS 293 are generated at the site that processes the TC 976 return.
  3. All duplicate filing conditions are systemically controlled on IDRS. See IRM 21.7.9.3, Duplicate Filing Conditions Research, for more information about the category codes used with duplicate filing conditions.

  4. All duplicate filing conditions age in 45 days and are not considered correspondence. If correspondence is attached to the duplicate return, re-control the case to the appropriate correspondence category code (e.g., TPRQ or PHZ1). Acknowledge the case according to IRM 21.3.3.4.2, Policy Statement P-21-3 Procedures. In this instance, change the received date to the original received date on the return. If additional correspondence is received after the date of the duplicate return, do not change the received date. However, change the category code to the appropriate correspondence category code.

    Reminder:

    Resolve the -A freeze before closing the case.

    Exception:

    If the tax module is in collection status 26, do not release the -A freeze. Refer the amended or duplicate return to the assigned revenue officer (RO). See IRM 21.3.3.4.8.2, Campus Collection Function Correspondence/Inquiry/Notice, for referral guidance and IRM 21.5.1.5.2(7), Cases Currently Assigned in CII, for routing CII cases.

     

  5. Taxpayers use the following adjusted employment tax returns to correct information previously reported on the corresponding original returns.

    Taxpayer filesTo correct
    Form 941-XForm 941
    Form 943-XForm 943
    Form 944-XForm 944
    Form 945-XForm 945
    Form CT-1XForm CT-1



    See IRM 21.7.2.4.4.7, Exception Processing - Incorrect Filing, Including Forms Routed to AM from SP, for more information.

     

  6. The Taxpayer Advocate Service (TAS) provides assistance to taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems the IRS has not resolved through normal channels or believe that an IRS system or procedure is not working as it should. 
     

    See IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, for handling requirements when a taxpayer is experiencing a hardship, an unusual delay in resolving their account issue, or specifically requests TAS assistance AND you cannot resolve the taxpayer’s issue within 24 hours (i.e., same day).

    Caution:

    As of January 5, 2026, Accounts Management (AM) no longer prepares Form 911 or Form e-911 for taxpayers meeting TAS criteria or otherwise requesting TAS assistance.

     

  7. All IRS employees are responsible for protecting taxpayer confidentiality and understanding when access to or disclosure of taxpayer information is authorized by law. This includes protecting information displayed on computer screens. See IRM 10.5.5.17, IRS Personnel UNAX Responsibilities. IRC 6103(a) establishes that tax returns and return information are confidential and may be disclosed only as specifically authorized by IRC 6103. Provide authorized information only to the correct taxpayer or authorized representative. See IRM 21.1.3.2, General Disclosure Guidelines, provides detailed information.
21.7.9.3 (10-01-2026)

Duplicate Filing Conditions Research

  1. When working duplicate filing cases, refer to the procedures for the specific form involved (e.g., Form 941 , Form 1120, Form 1065, etc.). Use those procedures to input the appropriate transaction codes (TC), credit reference numbers (CRN), item reference numbers (IRN), blocking series (BS), etc.

  2. Code & Edit (C&E) inputs computer condition code "G" on returns marked "amended," "corrected," "supplemental," or "superseding" (amended returns filed on or before the return due date or extended due date). IDRS does not record any information on "G" coded returns, except the amount paid with the return.

    Exception:

    Some returns bypass Submission Processing and are forwarded directly to the appropriate area for resolution. See IRM 21.7.9.3.1, Amended/Corrected/Adjusted/Original Returns that Bypass Submission Processing, for more information.

     

  3. All duplicate filing cases must be controlled on IDRS and remain open until action is taken to resolve the -A or E- freeze or the case has been referred to another appropriate area (e.g., Criminal Investigation).

    Exception:

    If the tax module is in collection status 26, do not release the -A freeze. Refer the amended/duplicate return to the assigned revenue officer (RO). See IRM 21.3.3.4.8.2, Campus Collection Function Correspondence/Inquiry/Notice, for referral guidance and IRM 21.5.1.5.2(7), Cases Currently Assigned in CII, for routing CII cases.

    Note:

    If the TRNS 193 is received without the duplicate return, it is not required to request the document prior to routing to the revenue officer (RO). The RO will secure the necessary documents to allow for processing.

     

  4. See IRM 21.3.3.4.8.2.1, Compliance Criteria for Amended Return/Claims and/or Balance Due Correspondence, for information on working amended returns on accounts in collection status 22, 24, 26, or involving other collection criteria/status (status 72). Forward any correspondence received indicating the taxpayer wishes to file a delinquent return to Collection after all other adjustment issues have been resolved.
  5. A Form 94X duplicate filing condition may result from a Combined Annual Wage Reporting (CAWR) assessment. See IRM 4.19.4.11.1, CSR - Researching IRS-CAWR/SSA-CAWR Issues, for information regarding the identification of CAWR assessments and guidance for responding to taxpayers disputing a CAWR assessment. CAWR assessments can be found on MFTs 01, 11, 14, and 16. A blocking series of 55 on the last available quarter with a TC 150 present indicates the CAWR function made an adjustment to the account.
  6. Statute must be considered before sending to Submission Processing for input. Original delinquent returns which are two years and nine months old or older (based on the return due date) must be cleared by the Statute function. See IRM 25.6.1.8, Original Delinquent Returns, for more statute information.
  7. If an amended Form 940 is submitted stating it is exempt from filing and paying FUTA tax liability, refer to IRM 21.7.3.4.8.3, Exempt Organization (EO) and Government Agency Tax-Exempt Inquiries.

  8. The following table lists the category codes used with duplicate filing conditions (TRNS 193, TRNS 293, and TRNS 190) and amended, corrected, or adjusted returns that bypass Submission Processing:

    Category CodeDescription
    941XForm 941-X, Form 941-X (PR) or Form 941-X (SP)
    943XForm 943-X, Form 943-X (PR) or Form 943-X (SP)
    944XForm 944-X, Form 944-X (PR) or Form 944-X (SP)
    945XForm 945-X
    BDUPBMF Form 706, Form 709, Form 709-NA, and Form 94X series returns identified as amended, revised, or corrected that bypassed processing
    BMFOBMF Form 1041, Form 1065, and Form 1120 series returns identified as amended, revised, or corrected that bypass processing
    C190TRNS 190 on all BMF returns where there is an amended return (TC 976) and no original return (TC 150)
    CT1XForm CT-1X
    DAUDTRNS 293 on all BMF forms with TC 420 present
    DUPETRNS 193 on Estate and Gift Tax Returns (Form 706, Form 709, and Form 709-NA) that are systemically processed
    DUPFTRNS 193 on all BMF returns (except Excise and Estate and Gift) that are systemically processed
    DUPXTRNS 193 on all Excise Tax Returns (Form 720, Form 730, Form 2290, etc.) that are systemically processed
    I190TRNS 190 on all BMF International returns where there is an amended return (TC 976) and no original return (TC 150)
    IDPFTRNS 193 and 293 on all BMF International returns that are systemically processed
    IXRTAmended and unnumbered International Form 94X and Form 1120-X that bypass processing and do not generate a TRNS 193
    XRETForm 1065-X and Form 1120-X that bypass processing and do not generate a TRNS 193

     

21.7.9.3.1 (10-01-2026)

Amended/Corrected/Adjusted/Original Returns that Bypass Submission Processing

  1. Returns that bypass Submission Processing do not receive a document locator number (DLN) and do not generate a TRNS 193 package. The following table identifies where to route returns that bypass Submission Processing.

    FormRouted to
    Forms 94X-X, Employment tax returns (standalone forms)

    Accounts Management.

    Note:

    See IRM 21.7.2.4.4, Adjusted Employer’s Federal Tax Return or Claim for Refund, for processing procedures

    Non-remit Forms 94X series returns marked "amended" or "corrected"

    Accounts Management.

    Reminder:

    If taxpayer filed Form 94X instead of the applicable Form 94X-X, see IRM 21.7.2.4.4.7, Exception Processing - Incorrect Filing, Including Forms Routed to AM from SP, for processing procedures

    Non-remitForm 706, United States Estate (and Generation-Skipping Transfer) Tax Return
    Estate and Gift Tax Operation
    Mail Stop 824G
    7940 Kentucky Drive
    Florence, KY 41042
    Form 1041, U.S. Income Tax Return for Estates and Trusts, Form 1120 U.S. Corporation Income Tax Return, series, Form 1065, U.S. Return of Partnership Income, marked "amended" or "corrected"Accounts Management
    Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, with the amended box checked or marked with the literal "amended, revised, or corrected"Accounts Management
    Form 1065-X, Amended Return or Administrative Adjustment Request (AAR)Accounts Management
    Form 1120-X, Amended U.S. Corporation Income Tax ReturnAccounts Management

    Reminder:

    If the amended or corrected return also indicates a final tax return, use command code (CC) FRM49 to delete filing requirements with TC 591 closing code 075.

     

  2. Complete the following actions for returns that bypass Submission Processing.

    1. Open an IDRS control within 14 days of receipt. See IRM 21.7.9.3(8), Duplicate Filing Conditions Research, for the appropriate category code.

    2. If the return is amended, corrected, or adjusted , input TC 971 AC 010 to establish the -A freeze on tax module(s) with a posted TC 150. The transaction date for TC 971 is the amended or corrected return received date.

      Exception:

      If the case is scanned in the Correspondence Imaging Inventory (CII) as an XRET or 94X-X, a manual TC 971 input is not necessary. The system will generate a TC 971 AC 010, which creates a -A freeze on the tax module.

      Exception:

      Do not input a TC 971 AC 010 on a Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, (MFT 07) short period tax return.

      Caution:

      Do not input TC 971 AC 010 on true duplicate returns or copies of returns determined to be classified waste that do not require a change. See IRM 21.5.1.4.10, Classified Waste, for more information.

       

    3. An amended/corrected/adjusted return requires an adjustment to release the -A freeze (which will be set when the TC 971 AC 010 posts). Input a TC 29X adjustment with the appropriate CRNs, IRNs, and hold code (See IRM 21.5.2.4.15, Rules on Hold Codes (HC), for more HC details). If TC 971 AC 010 is input during the same cycle, use a posting delay code on the adjustment transaction to ensure the -A freeze is released.

      Note:

      If the return is considered a true duplicate (no change to the tax module) or classified waste, a TC 29X is not necessary because a TC 971 AC 010 was not input to set the -A freeze.

      Reminder:

      AM employees must use the Integrated Automation Technologies (IAT) tool, REQ54, as mandated in Exhibit 21.2.2-2, Accounts Management Mandated IAT Tools, to input adjustments of tax, penalty, interest, and the release of freezes. See IRM 21.2.2.4.4.14, Integrated Automation Technologies, for more information.

       

     

  3. Some returns cannot be worked by Accounts Management. Use the following table to determine the appropriate action.

    IfAndThen
    1) A return is marked "amended" or "corrected"Module does not contain a TC 150

    Route to Receipt & Control (R&C), Batching, on the appropriate local routing document (e.g., Form 9948, Referrals To, or Form 12634, OIRSC Campus Document Transmittal) with instructions to process as original. The words "amended" or "corrected" must be circled out.

    Reminder:

    Use CC FRM49 to input TC 599 with closing code (CC) 094 (taxable return secured) or CC 096 (non-taxable return secured), if the module is in status 02 or 03.

    2) A return is marked "amended" or "corrected"TC 150 is a 6020b returnRoute to R&C, Batching, on the appropriate local routing document (e.g., Form 9948, Referrals To, or Form 12634, OIRSC Campus Document Transmittal) with instructions to process as original. The words "amended" or "corrected" must be circled out. This is to allow the ASED to be systemically set.
    3) An original return is received with or without correspondenceResearch indicates the return has never been processed (module does not contain a TC 150)
    • Use CC FRM49 to input TC 599 with CC 094 (taxable return secured) or CC 096 (non-taxable return secured) if the module shows status 02 or 03.
    • Route to Submission Processing on Form 1725 or similar local routing document. Refer to IRM 21.5.1.5.5, Processing/Reprocessing CII Tax Returns, for more information.
    • Continue processing the correspondence following guidance under IRM 21.3.3.4, Correspondence Procedures, if received with the return.

    Exception:

    Do not input a TC 599 CC 94 or 96 on Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts (MFT 68), or on Form 3520-A, Annual Return of Foreign Trust With a U.S. Owner, (MFT 42).

    Reminder:

    To prevent an erroneous tax return posting to Master File, ensure the tax return entity information is correct before submitting a process as original request to Submission Processing R&C, Batching.

     

21.7.9.3.2 (10-01-2026)

Form 1065 Duplicate Filing Conditions Reporting Technical Termination Under IRC 708(b)(1)(B)

  1. This subsection is obsolete per the Tax Cuts and Job Act which eliminated the rule for technical terminations for partnerships. For more information, see archived copies of this IRM.
21.7.9.3.3 (03-07-2024)

Business Master File (BMF) Superseding Tax Returns

  1. A superseding return is a second (or subsequent) return filed on or before the filing due date, including extensions. The second return replaces the original return. Whether a return is superseding depends on the order in which the returns were filed, not the order in which they were processed. An amended (e.g., Form 941-X, Form 1120-X, Form 1065-X, etc.) or corrected (duplicate) return (e.g., Form 941, Form 1120, Form 1065, etc.) filed on or before the due date or the extended due date is a superseding return.

    Note:

    A superseding return may post before the return filed as the original. Refer to IRM 21.5.1.4.2.4, Received Date - Determination, for assistance. Submission Processing does not date stamp timely filed returns and does not keep envelopes for timely filed returns.

     

  2. Superseding returns are usually processed as an amended or corrected return since the original return has already posted and created a transaction code (TC) 150. The superseding return usually posts as a TC 976, duplicate filing condition unless it is attached to correspondence. Correspondence requesting changes to a tax return that is postmarked on or before the due date or extended due date is processed as a superseding return.
21.7.9.3.3.1 (10-01-2026)
Business Master File (BMF) Superseding Tax Return Processing Considerations
  1. Estimated Tax (EST) penalty - In most cases, the EST penalty is computed based on the tax shown on the taxpayer's original return. However, if the taxpayer files a superseding return, the penalty is computed using the tax shown on the superseding return. IRM 20.1.3, Estimated Tax Penalties, provides more detail.

  2. Failure to Deposit (FTD) penalty – The FTD penalty is computed on the original Record of Federal Tax Liability (ROFTL). However, a superseding return with a federal tax deposit requirement requires a federal tax deposit calculation. IRM 20.1.4, Failure to Deposit Penalty, provides calculation guidance.

    Note:

    ROFTL information isn’t required when the de minimis exception for depositing is met. See IRM 20.1.4.6(2), De Minimis Exception to Deposit Requirements.

     

  3. Use the following table to determine the appropriate blocking series (BS) for the superseding return adjustment.

    IfThen
    1) The tax return was filed electronicallyDo not use BS 18. Use the appropriate BS for the type of return you are adjusting, using the non-refile DLN (15 through 17).
    2) You are making an adjustment without the original return (non-refile DLN)Use the BS (15 through 17) based on the type of return.
    3) The original return or superseding return has been scanned to the CII caseUse BS 00.

    Note:

    For more information regarding the appropriate blocking series, see IRM 21.7.1.4.4(7), Miscellaneous Adjustment Situations (BMF), IRM 21.5.1.5.3, CII Source Documentation, and Document 6209, Section 4, 14 - Adjustment Blocking Series.

     

  4. Use item reference number 871 when necessary. Refer to IRM 20.1.2.2.6.2, Incorrect Tax Shown Recorded, for more information.
  5. Superseding returns are subject to CAT-A identification and procedures. Review Exhibit 21.5.3-2, Examination Criteria (CAT-A) – General, and Exhibit 21.5.3-3, Examination Criteria (CAT-A) – Credits, for examination referral guidance.

  6. The taxpayer may erroneously file monthly Form 941 tax returns instead of a quarterly tax return.

    Example:

    The taxpayer filed Form 941 for January 2026 and it posted as a TC 150 to 202603. The taxpayer filed a second Form 941 , not a Form 941-X, in February 2026 and it posted to 202603 as a TC 976. The second Form 941 tax return is not marked amended, corrected, or supplemental and there is no correspondence explaining the duplicate filing.

    Since the taxpayer intent for the first TC 976 is not clear and it appears to be a tax increase or a superseding tax return, follow the guidance under IRM 21.7.9.4.1.4(3), Amended/Supplemental Return - Increase, to determine the reason for the second tax return. If the taxpayer indicates they are filing monthly tax returns, the second tax return is considered a superseding tax return. If the second Form 941 is determined to be a superseding return, take the following actions:

    • Explain the quarterly Form 941 filing and deposit requirements to the taxpayer.
    • Advise the taxpayer that the additional tax will be assessed and that a quarterly return must be filed by the due date. The quarterly return must include an explanation for the multiple returns filed during the quarter. Advise the taxpayer that FTD penalties may apply. This step is especially important when the taxpayer makes direct payments.
    • If contact is made by telephone, document the conversation in the Accounts Management Services (AMS) history so the CSR working the third return is aware of the instructions provided.
    • Assess the additional tax using TC 290 and consider whether an FTD penalty applies. Do not use TC 298 for a superseding tax return.

     

  7. The Discriminant Information Function (DIF) score is a formula used by the IRS to select returns for review. If the return is not processed as an original, it has bypassed DIF scoring. Returns that bypass DIF scoring must be forwarded to Examination for classification. Review IRM 21.5.2.4.23.6, Discriminant Function (DIF) SCORE or CLASSIFICATION "Send Return(s) to Examination for Review (Superseding Returns)" , for DIF return identification and examination referral guidance.

    Note:

    The assessment statute expiration date (ASED) must be reviewed for accuracy. Because superseding returns must be filed on or before the due date, including extensions, the ASED is correct in most superseding cases. If the ASED must be corrected on the tax module, input a transaction code (TC) 560. TC 560 input details can be found under IRM 21.7.9.4.1.1.2(2), Two Returns Posted to Same Account, Incorrect Return Posted First, TC 976 Return is Correct Return.

     

  8. Reverse offsets to Individual Master File (IMF), Business Master File (BMF), and Debtor Master File (DMF) accounts when increasing the balance due.
  9. Treasury Offset Program (TOP) – You may reverse a TOP offset when satisfying the balance due on a superseding return. See IRM 21.4.6.5.3.1, Allowable TOP Offset Reversals, for more information.
21.7.9.3.4 (10-01-2026)

Amended Tax Returns Considered Potential BMF Identity (ID) Theft Cases

  1. BMF ID theft cases are complex and require extensive research. The Accounts Management (AM) BMF campuses (Cincinnati and Ogden) have established centralized points of contact for potential BMF ID theft case review. These contacts work with the AM BMF ID theft liaison and Identity Protection Strategy and Oversight (IPSO) to coordinate the review and resolution of ID theft cases.
  2. IRM 25.23.9, Business Master File (BMF) Identity Theft Processing, provides servicewide guidance for resolving cases.
  3. IRM 25.23.11, Business Master File (BMF) Identity Theft Procedures for Accounts Management, provides guidance for AM employees assisting victims of identity theft through paper or phone inquiry.
  4. If you suspect BMF IDT while working a case, refer to IRM 25.23.11.4, Business Master File (BMF) ID Theft Research, and IRM 25.23.11.6, Business Master File (BMF) Identity Theft Inquiries.

  5. For any cases involving potential identity theft with RICS involvement, refer to IRM 25.23.11.6.3, BMF Returns Selected for RICS Review, for additional guidance. The following indicators may appear on the account (this list is not all-inclusive):

    • TC 971 AC 711
    • TC 973
    • Open RICS control assigned to 1481055555 with activity showing potential IDT
    • Unreversed TC 971 AC 522 with MISC field WI RICS CLSIDT
    • AMS shows 6042C response and determination
    • Sort name line includes "potential fab EIN" or "identity theft"
    • TC 971 AC 524 on CC ENMOD/BMFOLE containing EINFAB in the MISC field

     

  6. BMF ID theft can involve the filing of an original or amended return for a refund. What appears to be a duplicate filing condition can in fact be an ID theft original return, with the duplicate being the true return. Because ID theft returns require different handling, identify them before taking any account actions. Before making an adjustment, determine whether all returns were filed by the employer identification number (EIN) owner or an authorized third party. See IRM 25.23.9.9.1, Duplicate/Amended Return Research, for the specific items to consider when working an amended tax return.

    Note:

    See IRM 21.7.2.4.4.13, Forms 94XX with Return Integrity and Compliance Services (RICS), Return Integrity Verification Operations (RIVO), or Identity Theft (IDT) Involvement, for handling guidance for Form 94XX.

     

  7. If the duplicate or amended return does not follow normal BMF filing patterns and meets the conditions described in IRM 25.23.9.9.1, Duplicate/Amended Return Research, take the following actions:

    1. Prepare Form 14566, BMF Identity Theft Referral. See Exhibit 25.23.11-1, Accounts Management Form 14566 Instructions, for information on completing the form.
    2. Send the completed Form 14566 by secure email as directed in IRM 25.23.11.6, Business Master File (BMF) Identity Theft Inquiries.
    3. Update the CII case notes to state: "Potential BMF IDT - Case referral to AM BMF IDT."

    The local campus point of contact will determine whether the amended return will follow normal procedures or be reassigned to the AM BMF ID theft inventory. Keep the duplicate filing condition control base open until the final inventory status determination is made.

     

21.7.9.4 (10-01-2026)

Duplicate Filing Conditions Procedures

  1. Apply the procedures in the following subsections when working Business Master File duplicate filing conditions and amended returns.

    Reminder:

    This section addresses the situations most frequently encountered when working duplicate filed returns. However, this and other applicable IRMs cannot address every situation. If needed, consult your lead or manager to determine the appropriate corrective action. Elevate issues that cannot be resolved at the site level, or that could have servicewide impact, to the headquarters analyst responsible for the program.

     

21.7.9.4.1 (10-01-2026)

Resolving Transcript (TRNS) 193 and Amended/Corrected/Supplemental Returns

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

    • Taxpayer received a delinquency notice because of a processing delay.
    • Taxpayer submitted a duplicate return and indicated it was a final return.
    • Taxpayer filed a second return to correct information reported on the original return.
    • Taxpayer filed a second return to provide information omitted from the original return (i.e. a missing form or schedule).
    • Taxpayer filed an original return but underpaid the tax liability and submitted a second return filed with payment of the remaining tax liability.
    • Taxpayer filed separate returns for each month of the quarter.
    • Taxpayer received a penalty notice for failure to provide a tax liability breakdown and submitted a second return with the missing information.
    • Taxpayer submitted a second return addressing deposits in response to a balance due notice regarding missing payments.
    • Taxpayer responded to an IRS notice requesting additional information.

     

  2. Determine and resolve duplicate filing conditions by examining and comparing information. Use TRNS 193, duplicate return, Corporate Files Online (CFOL) command codes (CC), and original return (secure only if necessary) to resolve the case. Compare the items listed below:

    • Difference in entities (names, addresses, taxpayer identification numbers (TIN), etc.)
    • Tax periods
    • Document locator numbers
    • Correct form used
    • Received dates
    • Signature, title, and signature date
    • Transaction codes (TC)
    • Deposits (compare dates and amounts)
    • Payment received with return(s)
    • Module balance

    Note:

    Always compare the DLN on the return with the DLN of the TC 976 on IDRS to confirm you have the correct document. If the DLNs do not match, check your MeF input. If the document is paper, request the correct DLN using current document request procedures.

     

  3. Beginning in processing year 2026, aggregate return filers must use the Aggregate Return Filers Only section on certain employment tax returns to identify whether they’re filing an aggregate return as a section 3504 agent, certified professional employer organization (CPEO), or other third party. A Form 94X duplicate filing condition may indicate a revision to the Aggregate Return Filers Only section. If no other changes are reported on the second (TC 976) return, input TC 290 $.00 with the appropriate blocking series (BS) to release the -A freeze.

    Note:

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

     

  4. Per Executive Order 14247, Modernizing Payments To and From America’s Bank Account, the IRS began adding a direct deposit option to most business tax return types. A duplicate filing condition may include a revision to the direct deposit (routing or account number) information. If no other changes are reported on the second (TC 976) return, input TC 290 $.00 with the appropriate BS to release the -A freeze.

    Note:

    Bank account information cannot be updated via IDRS. See IRM 21.4.1.5.7, Direct Deposits - General Information, for more information.

     

  5. Check CCs ENMOD, NAMEB, INOLE when the TIN is circled out and a new TIN is provided on the return.
  6. Check the return for an indication that it is the taxpayer’s "final" return. Use CC FRM49 to delete filing requirements with TC 591 closing code 075, if necessary.
  7. If an amended or corrected (duplicate) return was filed on or before the due date or the extended due date, it is a superseding return. See IRM 21.7.9.3.3, Business Master File (BMF) Superseding Tax Returns, for more information.

  8. Per Rev. Proc. 2010-16, if you discover a new address on an amended return (DUPF) that is different than what is on ENMOD, update the address. Consider the following before updating an address:

    1. If the account reflects an address change after the amended return cycle date, do not update the address of record with the address reported on the amended return. Use CC ENMOD to review the address change cycle (ADR-CHG-CY) field, which represents the last address change. If the address change cycle field is later than the amended return cycle date, do not update the address of record.

      Example:

      A BMF amended return posted in cycle 202631. CC ENMOD research shows the last address of record change posted in cycle 202637 (ADR-CHG-CY field). Since the last address of record change is later than the amended return, the IRS will not input an address change based on the earlier request. The taxpayer may have provided a new address to the United States Postal Service which automatically updated the address per the National Change of Address (NCOA) database, submitted another business return after filing the amended return being resolved, or called the IRS with an oral notification.

       

    2. If the account shows a Z freeze, review Exhibit 21.3.5-1, Referral IRM Research List, for referral guidance.
    3. If the amended return involves a fiduciary name change or an address change on Form 1041 , see IRM 21.7.1.4.9, Fiduciary Name/Address Change.

    4. If an abbreviation is necessary, IRM 21.7.13.7.3.8.2, Street Address Abbreviations, provides the mandatory street address abbreviations. Do not correct abbreviation errors unless you are already updating the address for another reason.

      Example:

      Do not input an address change to only update west to W. If the entity is accessed to correct a typographical error, misspelling, or add information (suite number, apartment number, etc.) and there is an abbreviation error, also update the abbreviation.

       

    Note:

    Form 8655, Reporting Agent Authorization, does not authorize a reporting agent filer to request an address change for the taxpayer (client). The taxpayer (client) must submit the change of address request. IRM 21.3.9.2.2, Authorizations - Form 8655, Reporting Agent Authorization, provides more detail. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See IRM 21.7.2.4.4.12, Address Changes Reported on Form 94XX Amended/Adjusted Employment Tax Returns, for more information.

     

  9. If the duplicate filing condition was caused by the taxpayer using the wrong tax year form or using the correct form but checked the wrong check box, see IRM 21.7.9.4.2, Incorrect Tax Year Form or Check Box Used, for possible taxpayer contact.
21.7.9.4.1.1 (02-05-2020)
Transcript (TRNS) 193 Involving Reprocessing Returns

  1. When reprocessing a return using Form 13596, Reprocessing Returns, refer to the following:

    • Exhibit 21.5.2-2, Preparing Form 13596 - Reprocessing Returns
    • IRM 21.5.2.4.23.7(3), Coding and Editing Procedures
    • IRM 21.5.2.4.23.1, Reprocessing Electronic Returns
    • IRM 21.7.9.4.2, Incorrect Tax Year Form or Check Box Used

     

  2. When a dummy return is reprocessed in place of an original or duplicate return, use the same received date as the original or duplicate return, respectively.
  3. When an original or amended/duplicate return posts to an incorrect taxpayer identification number (TIN) or tax period and is being reprocessed to the correct TIN or tax period, input transaction code (TC) 971 to identify cross-reference data. Using command code (CC) REQ 77, input TC 971 with the appropriate action code (AC) and transaction date (TRANS-DT).

  4. Use the following table to determine the appropriate TC 971 action code for the TIN and tax period from which the return is being reprocessed.

    IfThen
    1) The TC 150 return is being reprocessedInput TC 971 AC 001. Use the return received date (RRD) as the transaction date. (The RRD is located on TXMOD in the RET_RECVD_DT_ field)
    2) The TC 976 return is being reprocessedInput TC 971 AC 002. Use the posted TC 976 date as the transaction date.

     

  5. Input TC 971 AC 017 on the TIN and tax period to which the return is being reprocessed. Use the actual stamped received date of the return being reprocessed as the transaction date. If the stamped received date is earlier than the return due date, use the return due date as the transaction date.

    Note:

    If the received date is unclear or missing, refer to IRM 21.5.1.4.2.4, Received Date - Determination, for assistance.

    Reminder:

    TC 971 AC 017 is also used by CAWR to cross reference EINs for reconciliation balancing. See IRM 4.19.4.3.5(3), Working Replies – Cross Reference (X-Ref) Cases/Filed With Another EIN, for more information.

     

  6. Do not input a TC 971 AC 017 on a period with a fiscal year month (FYM) that differs from the one on ENMOD.

    Example:

    A fiscal year taxpayer files a short period final income tax return. It posts as a TC 976 on tax period ending 202512 but needs to be reprocessed to tax period 202603. Do not input TC 971 AC 017 on tax period 202603. Inputting TC 971 AC 017 on tax period 202603 causes an unpostable condition because the FYM on ENMOD is 12. Do not change the FYM on ENMOD.

     

  7. If TC 971 AC 001, AC 002, or AC 017 is input in error, reverse it with a TC 972 with the same action code.
  8. If the Master File status is 02 or 03, use CC FRM49 to input TC 599 with closing code (CC) 094 (taxable return secured) or 096 (non-taxable return secured).
21.7.9.4.1.1.1 (10-01-2009)
Two Returns Posted to Same Account, Correct Return Posted First, TC 976 Belongs on Different Period/Taxpayer Identification Number
  1. If a TC 976 return is posted to an incorrect account, use IDRS and CFOL command codes to determine the correct account.
  2. Once you determine the correct account, see IRM 21.7.9.4.1.1.1.1, Reprocessing TC 976 Return to Module with No TC 150, or IRM 21.7.9.4.1.1.1.2, Reprocessing TC 976 Return to Module with TC 150, for reprocessing instructions.
21.7.9.4.1.1.1.1 (10-01-2026)
Reprocessing TC 976 Return to Module with No TC 150
  1. Use Form 13596, Reprocessing Returns, to reprocess the return to the correct taxpayer identification number (TIN) or tax period. See IRM 21.5.2.4.23, Reprocessing Returns/Documents, for reprocessing procedures.

  2. On the module to which the TC 976 return is being reprocessed:

    1. Input TC 971 AC 017 using command code (CC) REQ77 to identify where the return originally posted. See IRM 21.7.9.4.1.1(5), Transcript (TRNS) 193 Involving Reprocessing Returns, for input instructions.
    2. If the Master File (MF) status is 02 or 03, use command code (CC) FRM49 to input TC 599 with closing code (CC) 094 (taxable return secured) or 096 (non-taxable return secured).

     

  3. On the module from which the TC 976 return is being reprocessed:

    1. Input 290 .00 using CC REQ54 (using the appropriate hold code) to release the -A freeze.
    2. Transfer any credit that does not belong on this module (use TC 570 if necessary).
    3. Input TC 971 AC 002 using CC REQ77. See IRM 21.7.9.4.1.1(4), Transcript (TRNS) 193 Involving Reprocessing Returns, for input instructions.

     

21.7.9.4.1.1.1.2 (10-01-2026)
Reprocessing TC 976 Return to Module with TC 150

  1. On the module to which the TC 976 return is being reprocessed:

    1. Input TC 29X using command code (CC) REQ54 to increase or decrease tax using the appropriate reference numbers.
    2. Input TC 971 AC 017 using CC REQ77. See IRM 21.7.9.4.1.1(5), Transcript (TRNS) 193 Involving Reprocessing Returns, for input instructions.
    3. Attach the TC 976 return to the adjustment document if working a non-Correspondence Imaging Inventory (CII) case.
    4. If the TC 976 return is a true duplicate of the TC 150, input TC 290 .00.
    5. Review the assessment statute expiration date (ASED) for accuracy. If the ASED requires correction, follow the guidance in IRM 21.7.9.4.1.1.2(2), Two Returns Posted to Same Account, Incorrect Return Posted First, TC 976 Return is Correct Return.

    Reminder:

    The "tax shown on the return" field is an important factor in failure-to-pay calculations and must be accurate. If the wrong return posted first and created transaction code (TC) 150 (e.g., a mixed period or entity, IRC 6020(b) return, or superseding return), review the "tax shown on the return" field. See IRM 20.1.2.2.6.2, Incorrect Tax Shown Recorded, for tax shown computation. If a correction is necessary, use item reference number (IRN) 871 to update the field. IRM 20.1.2.2.6.3, Wrong Return Posted First, for the applicable conditions and procedures for the back-out adjustment.

    Exception:

    If the taxpayer filed Form 94X instead of the applicable Form 94X-X, Adjusted Employer's Return or Claim for Refund, follow the procedures in IRM 21.7.9.4.1.4, Amended/Supplemental Return - Increase, for tax increases and IRM 21.7.9.4.1.5, Amended Return - Decrease, for tax decreases.

    Caution:

    Additional misapplied tax returns may also require correction, particularly when multiple delinquent returns were filed at the same time. Before adjusting the account, determine whether the posted TC 150 on the module belongs to another tax period and must also be reprocessed.

     

  2. On the module from which the TC 976 return is being reprocessed:

    1. Input TC 290 $.00 using CC REQ54 with the appropriate hold code to release the -A freeze.
    2. Transfer any credits that do not belong on the module. If necessary, input TC 570. See IRM 21.5.8.4, IDRS Guidelines for Credit Transfers.
    3. Input TC 971 AC 002 using CC REQ77. See IRM 21.7.9.4.1.1, Transcript (TRNS) 193 Involving Reprocessing Returns, for input instructions.

     

21.7.9.4.1.1.2 (10-06-2025)
Two Returns Posted to Same Account, Incorrect Return Posted First, TC 976 Return is Correct Return
  1. Use IDRS and CFOL command codes to determine the correct account and tax period for the TC 150.

  2. Once the correct account and tax period are determined, it may be necessary to correct the assessment statute expiration date (ASED) to reflect the correct return received date. If the ASED requires correction, input the following using CC REQ77:

    1. EIN/TIN
    2. MFT and tax period
    3. TC 560

    4. The later of the return received date or original return due date plus three years (in the Extension-Dt field)

      Caution:

      The ASED for employment tax returns (Form 941, Form 943, Form 944, and Form 945) is based on the later of the return due date (April 15 of the succeeding calendar year) or the return received date. See IRM 25.6.1.6.4, Statute of Limitations Chart for Tax Returns, to determine the due date and statutory period of limitations for all BMF forms.

       

    5. "70" in the DLN-CD field to extend the ASED or "99" in the DLN-CD field to backdate (back down) the ASED.

    6. NSD, CII case ID (if working a CII case), Correct ASED (in the Remarks field)

      Note:

      If the ASED is open, do not input a transaction date. If the ASED has expired and you are correcting it, input a transaction date that is one day before the ASED expiration date to avoid an unpostable condition.

       

     

  3. Update the return processible date (RPD) if necessary. See IRM 20.2.4.6.1, Updating the RPD on Unprocessible Returns, for more information.
21.7.9.4.1.1.2.1 (10-01-2026)
Reprocessing TC 150 Return to Module with No TC 150
  1. Use Form 13596 , Reprocessing Returns, to reprocess the return to the correct taxpayer identification number (TIN) or tax period. See IRM 21.5.2.4.23, Reprocessing Returns/Documents, for reprocessing procedures.

  2. On the module to which the TC 150 return is being reprocessed:

    1. Input TC 971 AC 017 using command code (CC) REQ77 to identify the module where the return originally posted . See IRM 21.7.9.4.1.1(5), Transcript (TRNS) 193 Involving Reprocessing Returns, for input instructions.
    2. If the Master File (MF) status is 02 or 03, use command code (CC) FRM49 to input a TC 599 with closing code (CC) 094 (taxable return secured) or 096 (non-taxable return secured).

     

  3. On the module from which the TC 150 is being reprocessed:

    1. Input TC 29X with the appropriate reference numbers using CC REQ54 to adjust tax to the amount reflected on the TC 976 return. Use blocking series 00 through 09 because the TC 976 is now the original return on the module.
    2. If necessary, adjust any penalties.
    3. Transfer any credits that do not belong on the module. If transferring credits, use the appropriate hold code with the TC 29X described in paragraph (3)(a).
    4. Attach the TC 976 return to the adjustment document if working a non-Correspondence Imaging Inventory (CII) case.
    5. Input TC 971 AC 001 using CC REQ77. See IRM 21.7.9.4.1.1(4), Transcript (TRNS) 193 Involving Reprocessing Returns, for input instructions.
    6. Correct the assessment statute expiration date (ASED), if necessary. See IRM 21.7.9.4.1.1.2, Two Returns Posted to Same Account, Incorrect Return Posted First, TC 976 Return is Correct Return, for ASED correction instructions.

    Reminder:

    The "tax shown on the return" field is an important factor in failure-to-pay calculations and must be accurate. If the wrong return posted first and created transaction code (TC) 150 (e.g., a mixed period or entity, IRC 6020(b) return, or superseding return), review the "tax shown on the return" field. See IRM 20.1.2.2.6.2, Incorrect Tax Shown Recorded, for tax shown computation. If a correction is necessary, use item reference number (IRN) 871 to update the field. See IRM 20.1.2.2.6.3, Wrong Return Posted First, for the applicable conditions and procedures for the back- out adjustment.

     

21.7.9.4.1.1.2.2 (10-01-2026)
Reprocessing TC 150 Return to Module with TC 150

  1. On the module to which the TC 150 return is being reprocessed:

    1. Input TC 29X using command code (CC) REQ54 to increase or decrease tax using appropriate reference numbers. If there is no change to the tax liability, input a TC 290 for $.00.
    2. If the taxpayer identification number (TIN) or tax period is incorrect on the TC 150 return being moved, circle out (edit) the incorrect information and enter the correct TIN or tax period. (It is not necessary to enter anything else on return.)
    3. Input TC 971 AC 017 using CC REQ77. See IRM 21.7.9.4.1.1(5), Transcript (TRNS) 193 Involving Reprocessing Returns, for input instructions.
    4. Attach the TC 150 return being moved to the adjustment document if working a non-Correspondence Imaging Inventory (CII) case.
    5. Correct or establish the assessment statute expiration date (ASED), if necessary. See IRM 21.7.9.4.1.1.2, Two Returns Posted to Same Account, Incorrect Return Posted First, TC 976 Return is Correct Return, for ASED correction instructions.

    Reminder:

    The "tax shown on the return" field is an important factor in failure- to- pay calculations and must be accurate. If the wrong return posted first and created transaction code (TC) 150 (e.g., a mixed period or entity, IRC 6020(b) return, or superseding return), review the "tax shown on the return" field. See IRM 20.1.2.2.6.2, Incorrect Tax Shown Recorded, for tax shown computation. If a correction is necessary, use item reference number (IRN) 871 to update the field. IRM 20.1.2.2.6.3, Wrong Return Posted First, for the applicable conditions and procedures for the back- out adjustment.

    Caution:

    Additional misapplied tax returns may also require correction, particularly when multiple delinquent tax returns were filed at the same time. Before adjusting the account, determine whether the posted TC 150 on the module belongs to another tax period and must also be reprocessed.

     

  2. On the module from which the TC 150 return is being reprocessed:

    1. Input TC 29X using CC REQ54 to increase or decrease tax using the appropriate reference numbers, blocking series 00–09 (because the TC 976 return is now the original return on the module), and hold code (HC) to adjust the tax for the difference between the TC 150 and TC 976 returns.
    2. Adjust penalties, if necessary.
    3. Transfer credits, if necessary. See IRM 21.5.8.4, IDRS Guidelines for Credit Transfers. Input TC 570 if necessary.
    4. Input TC 971 AC 001 using CC REQ77. See IRM 21.7.9.4.1.1(4), Transcript (TRNS) 193 Involving Reprocessing Returns, for input instructions.
    5. Attach the TC 976 return to the adjustment document if working a non-Correspondence Imaging Inventory (CII) case.
    6. Correct the ASED, if necessary. See IRM 21.7.9.4.1.1.2, Two Returns Posted to Same Account, Incorrect Return Posted First, TC 976 Return is Correct Return, for ASED correction instructions.

    Reminder:

    The "tax shown on the return" field is an important factor in failure- to- pay calculations and must be accurate. If the wrong return posted first and created transaction code (TC) 150 (e.g., a mixed period or entity, IRC 6020(b) return, or superseding return), review the "tax shown on the return" field. See IRM 20.1.2.2.6.2, Incorrect Tax Shown Recorded, for tax shown computation. If a correction is necessary, use IRN 871 to update the field. See IRM 20.1.2.2.6.3, Wrong Return Posted First, for the applicable conditions and procedures for the back- out adjustment.

     

21.7.9.4.1.1.3 (10-01-2009)
Reprocessing Returns with Failure to Deposit Penalty Computation Other Than Current Master File Computation

  1. If a return being reprocessed contains a Failure to Deposit (FTD) penalty computed differently from the penalty that would be computed under current processing, take the following actions:

    1. Verify the correct penalty amount and enter it near the top of the return.
    2. See IRM 20.1.4, Failure to Deposit Penalty, for more information.
    3. Edit computer condition code (CCC) "J" if the taxpayer provides a valid explanation for not asserting the FTD penalty based on reasonable cause.

     

21.7.9.4.1.2 (10-01-2026)
Transcript (TRNS) 193 Received Without Duplicate Return

  1. When a TRNS 193 is received without the duplicate return, attempt to determine if it is a "true duplicate" (true DUPF) using CC BRTVU or CC TRDBV.

    If CC BRTVU/TRDBVThen
    1) Proves the duplicate return to be a true DUPFInput TC 290 $.00 using blocking series (BS) 15/17 (use BS 00 if the original return is attached). Enter "NSD - True DUPF per BRTVU/TRDBV" in the remarks section of the adjustment document.
    2) Proves the duplicate return to be a true DUPF of another period, and there are no open TDIs or missing returns for this MFT

    On the TC 976 module, do the following:

    • Input a TC 290 $.00 using command code (CC) REQ54 in BS 15/17 to release the -A freeze.
    • Input TC 971 AC 002 using CC REQ77 with appropriate cross reference information. See IRM 21.7.9.4.1.1, Transcript (TRNS) 193 Involving Reprocessing Returns, for proper input of TC 971.

    On the module to which the return is a true duplicate:

    • Input a TC 290 $.00 in BS 15/17 using a print of CC BRTVU/TRDBV as documentation. If working cases via CII, capture the CC BRTVU/TRDBV screen as required in IRM 21.5.1.5.1, CII General Guidelines.
    • Input TC 971 AC 017 using CC REQ77 with appropriate cross reference information.

    Example:

    A TC 976 generates on a Form 941 tax period 202509 and was received on January 31, 2026. TRNS 193 is received without the TC 976 return attached. CC BRTVU clearly indicates the return is a true duplicate of the TC 150 posted to tax period 202512. There are no open TDIs on any other Form 941 accounts. Input a TC 290 $.00 and TC 971 AC 002, on the 202509 tax period. Input a TC 290 $.00 and TC 971 AC 017 on the 202512 tax period and attach a print of CC BRTVU if working non-Correspondence Imaging Inventory (CII) cases.

    3) Does not prove the duplicate return is a true DUPF. For example:

    • figures differ
    • "G" coded
    • open TDIs or missing return for this MFT
    • payment received with duplicate return

    Make two attempts (if possible) to contact the taxpayer by telephone for a copy of the duplicate return.

    Exception:

    If the 976 is a Modernized e-File (MeF) return, do not contact the taxpayer or request the document from Files. See IRM 21.7.9.4.1.2.2, Modernized e-file (MeF) Amended Returns, for more information.

    • If the taxpayer can provide a copy of the return today, see IRM 21.7.9.4.1, Resolving Transcript (TRNS) 193 and Amended/Corrected/Supplemental Returns, for procedures.

    • If you are unable to reach the taxpayer or if the taxpayer cannot provide a copy of the return, request the document from Files using CC ESTABD, definer "S" (definer "F" if working a non-CII case). Notate in the remarks field "second request."

      Reminder:

      The TRNS 193 is considered the first request for the return.

      Note:

      Allow 15 business days (21 calendar days) for in-house requests, or 30 business days for Federal Records Center (FRC) requests, for receipt of the return from Files. See IRM 3.5.61.1.13, Timeliness Requirements, paragraph (4).

       

     

  2. If Files cannot secure the duplicate return after two requests, take the following actions:

    • Input a special search request using Form 2275, Records Request, Charge and Recharge.

    • Request a copy of the duplicate return from the taxpayer with Letter 418C, Amended/Original Return Unavailable; Copy Requested. Suspend the case for 45 days (70 days for overseas taxpayers).

      Reminder:

      Monitor the account for notice suppression and input a STAUP when necessary. Refer to IRM 21.5.2.4.8.2, Suppressing Balance Due Notices, for additional information.

       

     

  3. If Files or the taxpayer provides the duplicate return, see IRM 21.7.9.4.1, Resolving Transcript (TRNS) 193 and Amended/Corrected/Supplemental Returns, for processing procedures.

  4. If the duplicate return has not been secured after the suspense period ends, use the following table:

    IfThen
    1) A payment was received with the duplicate return, including payments submitted electronically (i.e., EFTPS)
    • Assess tax equal to payment amount. Use CC BRTVU to determine the proper tax correction if the return is not "G" coded.
    • If module credit balance is more than the payment submitted with return, determine reason for additional excess credit.
    • Resolve any misapplied payments or other module freeze conditions before making assessment.
    • If TC 976 return is an employment tax return and you cannot determine the proper tax to correct, follow instructions in IRM 21.7.2.4.4.3.2, Withholding Tax Adjustment When Unable to Determine Proper Tax Correction, and input TC 29X using the applicable item reference number (IRN). Also, send Letter 4384C , Employment Tax Return-Form 94X, explaining the adjustment indicated on the amended/supplemental return has been made and in the future they must file the appropriate "X" form (specify the specific form to use) to make the adjustment.
    2) Information is not available to determine adjustment needed and no payment was received with duplicate returnInput TC 290 $.00 to release the -A freeze.
    3) Sufficient information is available to recreate the return, and it needs to be reprocessedFollow procedures in IRM 21.5.2.4.23.11, Reprocessing "Dummy" Returns.

     

21.7.9.4.1.2.1 (10-01-2026)
Multiple Returns Posting to a Module, One (1) Return Was Electronically Filed

  1. If the taxpayer files a return electronically and also files a paper return, a duplicate filing condition occurs, and a TRNS 193 is generated. Because the returns were not submitted using the same filing method, they were not recognized as duplicates and were allowed to post. This can occur if a taxpayer experiences problems with one filing method and switches to another.

    Note:

    If a second return is transmitted electronically for the same entity and the amended return check box is not selected, the return is rejected to the originator.

     

  2. A TRNS 193 may also be generated when the taxpayer changes payroll companies. One payroll company submits a return for the entire quarter, and the other submits a partial or zero return, with each company using a different filing method.

  3. Use command code (CC) BRTVU or CC TRDBV to view the second (TC 976) return. Thoroughly research the account to determine whether to assess the liability reported on the second return. See IRM 21.7.9.4.1 , Resolving Transcript (TRNS) 193 and Amended/Corrected/Supplemental Returns, and the applicable subsection that follows to resolve the duplicate filing condition. 
    Treat the TC 976 return as a supplemental return unless research indicates the return:

    • Is a true duplicate.
    • Posted to an incorrect account.
    • Reports a tax decrease.


    If the account contains a credit balance and you do not treat the TC 976 return as a supplemental return, do not release the refund before contacting the taxpayer.

     

21.7.9.4.1.2.2 (10-01-2026)
Modernized e-file (MeF) Amended Returns

  1. Amended returns filed through MeF are identified by a TC 976 with computer condition code (CCC) "G" and a unique file location code (FLC) that generally begins with 93 (overflow document locator numbers (DLNs) begin with 92 or 88).

    Note:

    The FLC is the first two digits of the DLN. See IRM 3.42.4.9.2.1, Researching e-file BMF Identification Codes, for more information about FLCs.

     

  2. As of June 2024, Form 941-X, Form 943-X, and Form 945-X may be filed using MeF. See IRM 21.7.2.3.5, Electronic Filing (MeF) for Employment Tax Returns, and IRM 21.7.2.4.4, Adjusted Employer’s Federal Tax Return or Claim for Refund, for more information.
  3. Certain taxpayer submitted paper returns are being digitally scanned by a vendor and then processed through MeF by the IRS. These digitized returns are identified by a unique FLC beginning with 37, 40, 42, 44, 75, 86, 91 or 92.
  4. The TC 976 document is not available in the Correspondence Imaging Inventory (CII).The document images section of the CII case displays "No documents were found for this case." Access the document through the Employee User Portal (EUP) using the MeF Bus Tax Return & Ack PRD application. The MeF Return Request and Display User Guide R9 is available to assist IRS employees who need to view and print tax returns, extensions, or transmissions.

  5. Process amended MeF returns using existing procedures in this IRM.

    Exception:

    Some amended returns require special handling to ensure refunds are processed within the 45-day interest-free period. See IRM 21.7.9.4.1.2.2.1, Modernized e-File (MeF) Amended Returns Requiring Expedited Handling, for more information.

    Caution:

    Multiple amended filings for the same tax year or period with the same document type result in multiple return images in a single CII case. Address each return separately. Do not close the CII case until all returns have been addressed. See IRM 21.5.2.4.19, Verifying Complete Adjustments, for more information.

     

  6. Route carrybacks to the appropriate carryback unit. Route claims to Examination and send CAT-A, as required. See Exhibit 21.5.3-2, Examination Criteria (CAT-A) - General, and Exhibit 21.5.3-3, Examination Criteria (CAT-A) - Credits, for more information.
21.7.9.4.1.2.2.1 (07-09-2020)
Modernized e-File (MeF) Amended Returns Requiring Expedited Handling
  1. Special handling is required to ensure certain MeF amended returns are processed timely and refunds are issued within the 45-day interest-free period. The following procedures were developed to identify and route amended carryback returns and returns expecting a refund of $100,000.00 or more.

  2. The Ogden Accounts Management Campus (OAMC) MeF coordinator generates an ad hoc amended return report each Tuesday for the previous week's data (Sunday through Saturday). The report is sorted by the following categories:

    • 1120X carryback returns - "Y" in the carryback check box column
    • 1120X returns - "N" in the carryback check box column with an expected refund of $100,000.00 or more
    • Amended 1120S returns

    • Amended 1065 returns

      Note:

      No special actions are taken for the remaining amended MeF returns that were filed. These returns generate DUPF cases and are worked following normal procedures.

       

     

  3. A listing of the 1120X carryback cases is forwarded to a designated carryback manager to be worked by carryback employees. See IRM 21.5.9.5.1.1, BMF Carrybacks Filed via the Modernized e-File (MeF) System (Ogden AM Campus Only), for more information.

  4. A listing of the 1120X amended returns expecting a refund of $100,000.00 or more is forwarded to a designated OAMC team for resolution.

    Note:

    Carryback returns identified by this OAMC team are forwarded directly to the designated carryback manager to be worked by carryback employees.

     

  5. MeF amended returns post 1-2 cycles before the -A freeze posts to Master File and before the Correspondence Imaging System (CII) case is generated. Therefore, a CII case is not available when the large refund case is worked. MeF trained employees work the amended returns and input no source document (NSD) TC 29X adjustments or route the returns, as appropriate, according to IRM procedures before the TRNS 193 and -A freeze are generated.
  6. When inputting the adjustment, enter "MEFEUP193" as the adjustment activity and "MISC" as the IDRS category code.

  7. Create a CII case using the following information:

    • Worktype: BMF (Business Master File)
    • Doc Type: Duplicate Filing - 1120
    • Function: ADJ-710
    • Program: 10050
    • Reason: Pending CII TRNS193 Control

    Use the received date from the ad hoc report. Suspend the CII case for 30 days until the CII TRNS193 case is created. CII recognizes that an employer identification number (EIN) case is active and assigns the new case to the employee who created it.

     

  8. Once the CII TRNS193 case has been created and associated, link the cases in CII and close both cases to complete processing.

    Caution:

    In some instances, the CII TRNS 193 case may not automatically associate to the employee. If necessary, perform a CII taxpayer identification number (TIN) search.

     

21.7.9.4.1.2.3 (10-01-2026)
Employment Tax E-file Legacy Program
  1. This subsection is obsolete as Legacy e-file was retired at the end of 2015. For more information, see archived copies of this IRM.
21.7.9.4.1.2.4 (10-01-2026)
Transcript (TRNS) 193 Erroneously Generated from Input of TC 971 AC 010
  1. Forms 94X-X scanned through the Correspondence Imaging Inventory (CII) systemically generate a TC 971 AC 010. If the TC 150 was not posted, an erroneous TRNS 193 generated. This resulted in an additional control base on CII/IDRS. Since July 2011, Master File programing has prevented these erroneous notices.
  2. Historical information about these cases is available in archived versions of this IRM.
21.7.9.4.1.3 (11-02-2015)
True Duplicate
  1. A true duplicate condition occurs when the taxpayer files two returns for the same tax period that contain the same information, and no tax change is required.

  2. Take the following actions:

    1. Analyze the account data and both returns (if the original return was needed to resolve case) to verify that the returns are true duplicates.

    2. Input TC 290 $.00 with the applicable blocking series (BS) for the type of return being adjusted to release the -A freeze. If adjusting without the original return (non-refile DLN), use BS 15 through 17, based on the type of return. Use the duplicate return as the source document if working a non-Correspondence Imaging Inventory (CII) case.

      Caution:

      If the module has a zero balance, input hold code "0" . If the true duplicate return was received with a payment, do not treat it as a true duplicate. See IRM 21.7.9.4.1.4, Amended/Supplemental Return-Increase, and treat the return as a supplemental return.

       

     

  3. Staple TRNS 193 to the duplicate return when appropriate.

    Note:

    If the original return was secured, staple the duplicate return behind the original return (non-CII environment) and use the appropriate BS (00-09).

     

21.7.9.4.1.4 (10-01-2026)
Amended/Supplemental Return - Increase
  1. Returns reporting tax increases are sometimes marked "amended," corrected, or supplemental. Additional tax is usually paid with these returns. If the return is marked amended,corrected, or supplemental, follow paragraph (4).

  2. Taxpayers do not always explain why a second return was submitted. Entities with more than one business location must report all locations on one return. However, taxpayers sometimes file separate returns for each location. Thoroughly research the account using IDRS, Corporate Files Online (CFOL), and other available tools to determine whether to assess the liability on the second return.
    Consider the following:

    1. Do the filing date, signature date, liability period, credits claimed, or payments made relate to another tax period?
    2. Does the entity information indicate a different taxpayer?
    3. Are there open modules (for example, no TC 150) for which the second return was intended?
    4. Is there an indication the second return was filed in response to previous campus correspondence?

     

  3. If the reason for filing the second return is unclear, additional information is required.
    Take the following actions:

    1. Request the TC 150 or TC 976 documents, if necessary.
    2. Attempt to contact the taxpayer by telephone for more information.
    3. Document all telephone attempts and conversations with the taxpayer.
    4. If telephone contact is unsuccessful, send Letter 31C, Duplicate Returns Filed; Explanation Requested.
    5. Suspend the case for 40 days if correspondence is issued.

     

  4. After completing the required research and developing a case resolution plan, including a no-reply determination when appropriate, take the following actions:

    1. Recompute the tax liability. A tax increase on a supplemental return is increased for the amount reported on the supplemental return. A tax increase on an amended return is increased for the difference between the original and amended returns.
    2. If taxpayer filed Form 94X instead of the applicable 94X-X form, follow procedures in IRM 21.7.2.4.4.7.2, "Amended" /"Supplemental" Form 94X.
    3. For math verification procedures, see IRM 21.5.1.4.12, Tolerances.
    4. Compare the information on TRNS 193 with IDRS data. Consider actions taken since TRNS 193 was generated before adjusting the account.

    5. Increase the tax using TC 29X and adjust any appropriate item reference numbers (IRNs), abstract numbers, and other applicable fields. If adjusting without the original return (non-refile DLN), the type of return determines the BS (15 through 17). Use appropriate BS (00–09) if the TC 150 document has been secured. Use BS 18 on superseding returns only if working a non-Correspondence Imaging Inventory (CII) case. See IRM 21.5.1.5.3, CII Source Documentation, for CII blocking information.

      Note:

      When a Form 941-X, Form 943-X, Form 944-X, Form 945-X, or Form CT-1X is used to adjust an account, blocking series 20 must be used with the TC 29X. See IRM 21.7.2.4.4(14), Adjusted Employer’s Federal Tax Return or Claim for Refund, for more details.

       

    6. Adjust penalty and interest if necessary. See IRM 20.1.4.21.3, Amended or Supplemental Return (Tax Decrease or Non-Interest-Free Tax Increase), and IRM 20.1.4.21.5, Adjusted Returns (Forms 941-X, 943-X, 944-X, 945-X, and CT-1X), before adjusting the FTD penalty. In addition, see IRM 20.2, Interest.
    7. If the Form 94X was for a different location, advise the taxpayer that only one return is required for each tax period, even when multiple business locations are involved.
    8. Allow the adjustment notice (CP 210/220) to generate. If the adjustment differs from the taxpayer’s expectation, send the appropriate Correspondex letter explaining the adjustment.
    9. Send Letter 673C advising the taxpayer to file one return for each tax period, even when multiple business locations are involved.

     

  5. Review the general claim procedures before processing a tax increase or credit decrease. See IRM 21.5.3, General Claims Procedures, for details.

    Note:

    See (10) - (13) of IRM 21.5.3.4, General Claims Procedures, and IRM 20.2.4.8.3.2, 45-Day Rule and Amended Returns and Claims, OBRA 1993, for information regarding the amended claims date.

     

21.7.9.4.1.5 (10-01-2026)
Amended Return - Decrease
  1. Amended returns filed to decrease tax must have supporting documentation (required forms, schedules, etc.) attached, unless the return corrects a reporting error. Refer to the applicable section of this IRM for the required documentation for each form.
  2. If the taxpayer (TP) is attempting to reduce the employment tax to zero, see IRM 21.7.2.5.1, Frivolous Employment Tax Claims, for more information.
  3. If the TP filed a Form 94X employment tax return instead of the applicable Form 94X-X, follow the procedures in IRM 21.7.2.4.4.7.2, "Amended" /"Supplemental" Form 94X.

  4. For Business Master File (BMF) returns, take the following actions:

    1. Compare the information on TRNS 193 with IDRS data. Consider any actions taken since TRNS 193 was generated before adjusting the account.
    2. Recompute the tax liability.

    3. Decrease the tax using TC 29X and the appropriate item reference numbers (IRNs), credit reference numbers (CRNs), blocking series (BS), and hold code (HC). If adjusting without the original return (non-refile DLN), use BS 15 through 17, based on the type of return. If the TC 150 document has been secured, use BS 00 through 09.

      Caution:

      Pay special attention if TC 606 is present on the account. This transaction automatically reverses when TC 291 is input.

      Note:

      When Form 941-X, Form 943-X, Form 944-X, Form 945-X, or Form CT-1X is used to adjust an account, use blocking series 20 with TC 29X. See IRM 21.7.2.4.4(14), Adjusted Employer’s Federal Tax Return or Claim for Refund, for more information.

      Note:

      If the adjustment results in a refund of $10 million or more, follow IRM 21.5.2.4.11, Assessments or Refunds over $10 Million.

       

    4. Adjust penalty and interest, if necessary. See IRM 20.1, Penalty Handbook, and IRM 20.2, Interest.

      Note:

      If the employment tax return has a FTD penalty, see IRM 20.1.4.21.3, Amended or Supplemental Return (Tax Decrease or Non-Interest-Free Tax Increase), to reduce the FTD penalty.

       

     

  5. Review the general claim procedures before processing a tax decrease or credit increase. See IRM 21.5.3, General Claims Procedures, for details.

    Note:

    See paragraphs (10) through (13) of IRM 21.5.3.4, General Claims Procedures, and IRM 20.2.4.8.3.2, 45-Day Rule and Amended Returns and Claims, OBRA 1993, for information about the amended claims date.

     

21.7.9.4.1.6 (10-01-2026)
Duplicate Filing Conditions Involving Returns Prepared Under IRC 6020(b)
  1. Under IRC 6020(b), the IRS prepares a substitute-for-return (SFR) when it determines a taxpayer was required to file but did not do so after IRS notification.

  2. A 6020(b) return is identified on TXMOD by computer condition code (CCC) 4 and the literal "6020B" at the end of the TC 150 assessment DLN. TXMOD may also contain TC 59X and a closing code. Some of the most common closing codes are 08, 09, 38, 39, 63, and 64.

    1. Closing codes 08, 38 and 63 indicate a return was prepared by the IRS (un-agreed case) using prior quarters. The statutory period begins when the taxpayer files a signed return.
    2. Closing codes 09, 39 and 64 indicate the taxpayer agreed to the proposed assessment. See IRM 25.6.1.9, Assessments, for more information on statute considerations.

    Reminder:

    If the tax module is in collection status 26, do not release the -A freeze. Refer the amended or duplicate return to the assigned revenue officer (RO). See IRM 21.3.3.4.8.2, Campus Collection Function Correspondence/Inquiry/Notice, for referral guidance and IRM 21.5.1.5.2(7), Cases Currently Assigned in CII, for routing CII cases.

     

  3. When TC 150 is the taxpayer's return and TC 976 is the 6020(b) return, no tax adjustment is necessary. Input TC 290 $.00 with the appropriate blocking series (BS) to release the -A freeze.
  4. On Form 940, state wage and contribution certification must be considered before adjusting the account. For more information, see IRM 21.7.3.4.3, Manual Certification Required/Not Required. When the IRS receives a requested certification, refer to IRM 21.7.3.4.8, Claims and Requests for Adjustments (Form 940).

  5. When TC 150 is the 6020(b) return and TC 976 is the taxpayer's return reflecting a tax decrease, take the following actions:

    1. Review the general claim procedures before processing a tax decrease or credit increase. See IRM 21.5.3, General Claims Procedures, for details.

    2. Review IRM 21.5.1.4.12, Tolerances, for details on prepaid credits and tax decrease tolerances.

      Caution:

      If the taxpayer files a Form 94X, the tax return reflecting the tax decrease is considered the original filing and a Form 94X-X tax return is not required to adjust the tax module.

       

    3. If the taxpayer’s return reported a tax liability over tolerance, the tax liability must be math verified.

    4. Input TC 291 using the appropriate item reference numbers (IRN), credit reference numbers (CRN), and blocking series (BS) for the type of tax being adjusted by the taxpayer.

      Note:

      Only use a refile blocking series (i.e., 00 and 09) when you have the TC 150 document.

       

    5. Manually compute Failure to File (FTF) and Failure to Pay (FTP) penalties if previously restricted (TC 160, 161, 270, 271). See IRM 20.1.2.3, Failure to File a Tax Return or to Pay Tax - IRC 6651, for adjusting penalties. If not previously restricted, IRS computers will automatically adjust the penalties.
    6. If payments are on the module and a credit is generated by a tax decrease, ensure the credit is refundable. If the credit is not refundable, move the non-refundable credit to excess collections. See IRM 21.5.3, General Claims Procedures, for more information.

     

  6. When TC 150 is the 6020(b) return and TC 976 is the taxpayer's return reflecting a tax increase, take the following actions:

    1. Review the general claim procedures before processing a tax increase or credit decrease. See IRM 21.5.3, General Claims Procedures, for details.
    2. Math verify the tax liability on the taxpayer’s return, if over tolerance.
    3. Input TC 290 using the appropriate IRNs, CRNs, and BS for the type of tax being adjusted by the taxpayer. If the tax shown amount does not reflect the taxpayer’s correct tax, update the field with IRN 871.

    4. If module penalties were previously restricted (TC 160, 161, 270, 271, etc.), manually compute the penalties. See IRM 20.1.2.3, Failure to File a Tax Return or to Pay Tax - IRC 6651, for adjusting penalties. If not previously restricted, input Priority Code (PC) 2 with TC 290.

      Caution:

      The FTP back-out procedures (IRM 20.1.2.2.6.3, Wrong Return Posted First) are not required for this type of adjustment. Input of the appropriate PC on a tax increase allows the computer to adjust the FTP penalty from the RDD. The use of IRN 871 to correct the tax shown will not affect the FTP calculation.

       

     

  7. Always consider manual computation of an Estimated Tax penalty and Failure to Deposit penalty when decreasing or increasing tax. IRM 20.1.3, Estimated Tax Penalties, and IRM 20.1.4, Failure to Deposit Penalty, provide more detail. If the penalty is not restricted (previously manually assessed) on the tax module and the tax liability is being reduced to zero, manual abatement is not necessary because the computer will adjust the penalty. See IRM 20.1.4.21.3, Amended or Supplemental Return (Tax Decrease or Non-Interest-Free Tax Increase), to address a prior FTD penalty when not reducing the tax liability to zero.
  8. If the original return (TC 150) is a Form 1120-S or Form 1065 secured under IRC 6020(b) and Schedule K-1s are attached to the TC 976 return, detach the schedules and route to Receipt and Control for processing. If the TC 976 return was scanned into CII, print the schedules and forward them to Receipt and Control.
21.7.9.4.1.6.1 (10-01-2026)
Form 94X-X Return Filed Instead of Form 94X - TC 150 is IRC 6020(b) Return
  1. If the IRS prepares a return under the authority of IRC 6020(b), the IRS has a policy against abating any portion of the tax assessed unless the taxpayer files an original signed tax return.

  2. Taxpayers may erroneously respond to these IRC 6020(b) assessments with an amended Form 94X-X instead of a signed Form 94X. To resolve these types of issues, take the following actions:

    1. Review the account and determine the appropriate Form 94X filing requirement based on IDRS research.
    2. Contact the taxpayer, preferably by phone, to obtain a signed copy of the correct tax return along with any required schedules.
    3. If unable to reach the taxpayer by phone, request the signed copy with Letter 4384C and suspend the case for 45 days.

     

  3. If the taxpayer provides a copy of the return, process the return.

  4. If the taxpayer does not respond during the suspense period (no reply) and the assessment statute expiration date (ASED) has not posted to TXMOD, follow the steps below.

    1. Prepare a "dummy" return using the corrected information from the X form(s).
    2. Attach the Form(s) 94X-X to the back of the "dummy" return.
    3. Process the "dummy" return as the original.
    4. Ensure all applicable deposits are correctly applied.

    Note:

    Processing the "dummy" return in this situation is not considered reprocessing. Do not attach Form 13596 when routing the "dummy" return to be processed.

     

  5. If the taxpayer does not respond during the suspense period (no reply) and the ASED has posted to TXMOD, follow IRM 21.7.9.4.1.6, Duplicate Filing Conditions Involving Returns Prepared Under IRC 6020(b), to adjust the tax module to the taxpayer’s figures. Update the CII case notes to indicate the taxpayer did not reply to Letter 4384C and the account was adjusted per the Form(s) 94X-X.
21.7.9.4.1.6.2 (10-01-2026)
Wrong Form 94X Type Filed - TC 150 is IRC 6020(b) Return
  1. If the IRS prepares a return under IRC 6020(b), the IRS has a policy against abating any portion of the tax assessed unless the taxpayer files an original signed tax return.

  2. Taxpayers may respond to these assessments with a different Form 94X type. To resolve the issue, take the following actions:

    1. Review the account and determine the appropriate Form 94X filing requirement.
    2. Contact the taxpayer, preferably by phone, to determine why the taxpayer submitted a different form type and obtain a signed copy of the appropriate return and any required schedules.
    3. If you are unable to reach the taxpayer by phone, request a signed copy of the return with Letter 4384C and suspend the case for 45 days.

    Example:

    The IRC 6020(b) is Form 944 and the taxpayer submits Form 941.

     

  3. If the taxpayer provides a signed tax return matching the IRC 6020(b) form type, process the return.

  4. If the taxpayer does not respond during the suspense period (no reply), use the following table:

    IfThen
    1) The incorrect employment tax return reports a tax decrease (less than the IRC 6020(b) return)
    1. Update the CII case notes to indicate the taxpayer did not reply to Letter 4384C and did not provide the correct return type.
    2. Close the case no reply.
    2) The incorrect employment tax return reports a tax increase (more tax than the IRC 6020(b) return)
    1. Prepare a dummy return using the information from the incorrect Form 94X.
    2. Attach the incorrect Form 94X behind the dummy return.

    3. Follow IRM 21.7.9.4.1.6, Duplicate Filing Conditions Involving Returns Prepared Under IRC 6020(b), to adjust the module to the higher tax liability (tax increase).

      Note:

      If the assessment statute expiration date (ASED) was not set by the IRC 6020(b) activity, do not update the ASED unless the filed return provides sufficient data to calculate the employment tax liability.

       

    4. Update the CII case notes to indicate the taxpayer did not reply to the Letter 4384C .
    5. Issue Letter 673C explaining the tax increase and request the correct return type.

     

21.7.9.4.1.7 (10-20-2016)
Federal Tax Deposit Discrepancies on Duplicate Filing Cases
  1. When resolving duplicate filing conditions involving returns subject to a Failure to Deposit (FTD) penalty, compare the Record of Federal Tax Liability (ROFTL) section of the return with the deposits and payments posted to the tax module. This applies to returns posted to correct tax module as well as those being reprocessed to another module.
  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
  3. Before closing the case, review IDRS to determine if a CP 194, Data for Computation of Possible FTD Penalty on Forms 941, CT-1, 720, 940, 943, 944, 945, or CP 207, Proposed Averaged FTD Penalty, Request for Correct ROFTL Information, was issued. If either notice was issued, see IRM 20.1.4.15, CP 194 Notices (Possible FTD Penalty), and IRM 20.1.4.18, CP 207/207L Notices, for guidance on the notice.
    If there is an open CP 194 or CP 207 IDRS control base, coordinate with the assigned employee to prevent an erroneous FTD penalty assessment. The amended return could be the taxpayer’s response to the CP notice.
21.7.9.4.1.7.1 (10-01-2009)
In-House Research Procedures

  1. Verify the return tax computation to ensure the federal tax deposit information was correctly entered. If you identify an error resulting from an addition, subtraction, transposition, or misapplied entry, take the following actions:

    1. Correct the federal tax deposit amount claimed on the return.
    2. Reprocess the return to the correct module, if necessary.

     

  2. If federal tax deposit payments are missing or misapplied, research the federal tax deposit credit module (MFT 01, tax period 000000), the Unidentified Remittance File (URF), and prior and subsequent tax periods to locate the payments.
  3. Transfer any erroneously posted payments to the correct modules. See IRM 21.5.8, Credit Transfers.
21.7.9.4.2 (10-01-2026)

Incorrect Tax Year Form or Check Box Used

  1. Duplicate filing conditions may result from using the wrong tax year form or selecting the wrong check box. Use the following table to determine the appropriate taxpayer notification:

    If caused byThen advise via Letter 673C
    1) Wrong tax year formUse the correct tax year form for future filings.
    2) Correct tax year but incorrect check boxEnsure the correct check box is selected for the applicable period.

     

  2. Do not notify the taxpayer if the return was a final return or the duplicate return identified the correct period but Code & Edit did not correctly code the return.
21.7.9.4.3 (01-01-2005)

Multiple Taxpayer Identification Numbers (TIN)

  1. On cases involving multiple taxpayer identification numbers (TINs), determine whether either account should be deleted.
  2. If necessary, contact the taxpayer or Entity Control regarding deleting accounts, updating filing requirements, or inputting the appropriate TC 59X.
21.7.9.4.4 (10-01-2013)

Transferring Accounts Which Cannot Be Transferred Using Master File (MF) Procedures

  1. An account transfer is the process used to transfer an account between Master File (MF) accounts or between MF and Non-Master File (NMF) accounts when system limitations prevent resolution of the case. An account transfer is necessary when a MF account posts to the wrong account and the assessment statute expiration date (ASED) is expired. See IRM 25.6.1.9.9.3, AM Procedures for Correct Records on Expired Statute Periods, for procedures.
21.7.9.4.5 (03-26-2012)

Tax Equity and Fiscal Responsibility Act (TEFRA) and Administrative Adjustment Request (AAR) on Flow-through Entities

  1. Form 1065 TRNS 193s may involve an Administrative Adjustment Request (AAR) processed under the Tax Equity and Fiscal Responsibility Act (TEFRA) and must be sent to the Examination function before processing. See IRM 21.7.4.4.2.9, Form 1065 and Form 1065X, Amended Return, Administrative Adjustment Request (AAR) and Bipartisan Budget Act (BBA), for the specific criteria to determine when referral is required.
  2. For a general listing of Category A (CAT-A) examination referral criteria, see Exhibit 21.5.3-2, Examination Criteria (CAT-A) – General.
21.7.9.4.6 (10-01-2010)

Document Code 51 Assessments - Employment Code Discrepancies

  1. Document code (DC) 51 assessments become unpostable when the entity employment code (EC) indicates the taxpayer is not liable for the type of tax assessed. Because DC 51 transactions are manually assessed in the Accounting function and a bill is issued to the taxpayer, the assessment must post to Master File (MF) before corrective action is taken. Entity verifies the correct EC.
    Use the following table to determine the appropriate action after Entity verifies the employment code (EC):

    IfThen
    1) EC is incorrectEntity corrects the EC and posts the assessment.
    2) EC is correctEntity changes the EC to allow the assessment to post, cycles correct EC, and forwards the case to Accounts Management using Form 3210.

     

  2. Each case forwarded by Entity includes Form 8749, Unpostable Action and Routing Slip. Input the appropriate adjustment action specified on Form 8749 (e.g., abatement of an erroneous assessment).
21.7.9.4.7 (10-01-2010)

CP 170 or CP 170A Duplicate Filing Condition

  1. Prompt, quick, and jeopardy assessments are expedited assessments made by the area office Examination, Collection, or campus functions when a statute is imminent or collection of taxes is in jeopardy. Tax data required for these assessments is transmitted to the Accounting function by telephone, mail, facsimile, or IDRS letter. The Accounting function:

    • Manually assesses tax, penalty, and interest
    • Prepares a balance due notice to taxpayer
    • Enters the information in Integrated Submission and Remittance Processing (ISRP) to post to Master File

     

  2. These pre-itemized transactions are assigned document code (DC) 51 and are identified by transaction code (TC) 370.

  3. Prompt assessment billings that attempt to establish a tax module (TC 150) when a TC 150 is already present result in:

    • Posting of TC 290
    • Establishment of the -A freeze
    • Generation of CP 170 or CP 170A instead of TRNS 193

     

  4. To resolve the -A freeze, take following actions:

    1. Follow the normal duplicate filing adjustment procedures.
    2. Determine the reason for the prompt assessment.
    IfThen
    1) The additional assessment is valid.Input TC 290 $.00 to release the -A freeze.
    2) The additional assessment is erroneous or duplicate.
    1. Input TC 291 to abate the additional assessment.
    2. Address penalties and interest, if necessary.

    Note:

    Most prompt, quick, and jeopardy assessments involve statute issues and must be reviewed by, or cleared through the Statute function before adjusting the tax.

     

21.7.9.4.8 (10-01-2010)

Transcript (TRNS) 293, Duplicate Return with TC 420 Present

  1. A TRNS 293 is generated when a duplicate return posts to an account with an open TC 420 present.
  2. Use the procedures in this IRM for duplicate filing conditions. Consider the open TC 420 when adjusting the account. See IRM 21.5.3, General Claims Procedures, when working claims.
21.7.9.4.9 (10-01-2010)

IRC 338 Filers

  1. Corporations making an election under IRC 338 can file two Forms 1120, which create a duplicate filing condition. Both returns are short period returns covering different tax periods.

  2. Determine the correct tax period for each return and take the following actions:

    1. If both periods end in the same month, input the first return with a fiscal year (FY) ending in that month and the subsequent return with a FY ending in the following month.
    2. Because re-inputting the return creates an unpostable condition due to a fiscal year end mismatch, attach instructions for Unpostables to force the return to post.
    3. To resolve the case, see IRM 21.7.9.4.1.1.2, Two Returns Posted to Same Account, Incorrect Return Posted First, TC 976 Return is Correct Return, or IRM 21.7.9.4.1.1.1.1, Reprocessing TC 976 Return to Module with No TC 150, as applicable.

     

21.7.9.4.10 (10-01-2026)

Transcript (TRNS) 190, Amended Return - No Original Posted

  1. TRNS 190 is generated within four cycles after a computer condition code (CCC) "G" TC 976 return posts to a module that does not contain an original return (TC 150).
  2. TRNS 190 is associated with the TC 976 return and forwarded to Accounts Management (AM) for resolution.

  3. An E- freeze is generated with TRNS 190. Release this freeze before closing the TRNS 190 case by posting either:

    • TC 971 AC 002, or
    • TC 150.

     

  4. AM must determine the appropriate disposition of the TC 976 return.

    1. Check IDRS for an unpostable or rejected TC 150. See IRM 21.5.5, Unpostables, for guidance on identifying and researching unpostable conditions. See IRM 21.4.1.4.1.2.3, Returns Located on Error Resolution System (ERS) or Rejects, for reject procedures.
    2. Analyze the return and any attached schedules to determine whether the return should be re-input to another tax period or taxpayer identification number (TIN).
    3. If a TC 150 posted to the account after TRNS 190 was generated, close the TRNS 190 control base to the DUPF control after the case has been assigned to an employee. Resolve the duplicate filing condition.
    4. If additional information is needed, contact the taxpayer by phone or send the appropriate Correspondex letter requesting a copy of the return. If correspondence is issued, suspend the case for 45 days.

    5. If Return Integrity Verification Operations (RIVO) involvement exists on the tax module (i.e., an open control, TC 971 AC 711, or TC 973), refer to IRM 25.23.11.6.3, BMF Returns Selected for RICS Review, for additional procedures.

      Note:

      Do not process the amended or duplicate return as the original return.

       

    6. If Form 941-X, Form 943-X, Form 944-X, Form 945-X, or Form CT-1X is received for a tax period with no original return (TC 150) posted, see IRM 21.7.2.4.4.6, Adjusted Employer’s Tax Return or Claim for Refund Return Filed - No TC 150 Posted.

     

21.7.9.4.10.1 (11-02-2021)
TC 976 Return Intended as Original
  1. If the TC 976 return must be reprocessed to the same module to post as the original (TC 150), edit the return and reprocess it using Form 13596, Reprocessing Returns.
  2. Input TC 971 AC 002 to prevent generation of TRNS 193. Use the posted TC 976 date as the transaction date. If the Master File (MF) status is 02 or 03, use command code (CC) FRM49 to input TC 599 with closing code (CC) 094 (taxable return secured) or 096 (non-taxable return secured).
  3. If the TC 976 is a MeF partnership return (DLN begins with 93, 92, or 88) with 100 or more partners, edit the return with computer condition code (CCC) 6 to ensure the Failure to File Electronically penalty is not assessed. See IRM 21.7.4.4.2.8.1.1, Large Partnership Penalty for Failing to File Electronically, for more information.
  4. When reprocessing documents, review the guidance in IRM 21.5.2.4.23, Reprocessing Returns/Documents.
21.7.9.4.10.2 (10-29-2024)
TC 976 Return Posted to Incorrect TIN/Tax Period, Account for Which It Was Intended Contains the Original Return (TC 150)
  1. If the TC 976 return was intended for another module that contains the original return, take action on both modules.

  2. On the module to which the TC 976 is being moved:

    1. Input TC 29X with the appropriate reference numbers to adjust the tax to the amount reflected on the TC 976 return.
    2. If necessary, adjust penalties and interest.
    3. Input TC 971 AC 017 using command code (CC) REQ 77.

    4. Attach the TC 976 return to the adjustment document if working a non-Correspondence Imaging Inventory (CII) case.

      Exception:

      If the taxpayer filed Form 94X instead of the applicable Form 94X-X, Adjusted Employer's Return or Claim for Refund, follow the procedures in IRM 21.7.9.4.1.4, Amended/Supplemental Return - Increase, for tax increases, or IRM 21.7.9.4.1.5, Amended Return - Decrease, for tax decreases.

      Reminder:

      The "tax shown on the return" field is an important factor in failure to pay calculations and must be accurate. If the wrong return posted first and created transaction code (TC) 150 (e.g., a mixed period or entity, IRC 6020(b) return, or superseding return), review the "tax shown on the return" field. See IRM 20.1.2.2.6.2, Incorrect Tax Shown Recorded, for tax shown computation. If a correction is necessary, use item reference number (IRN) 871 to update the field. See IRM 20.1.2.2.6.3, Wrong Return Posted First, for the applicable conditions and procedures for the back out adjustment.

       

     

  3. On the module from which the TC 976 return is being moved:

    1. Transfer any credits that do not belong on the module. See IRM 21.5.8.4, IDRS Guidelines for Credit Transfers. Input TC 570 if necessary.
    2. Input TC 971 AC 002 to release the E- freeze.

     

21.7.9.4.10.3 (10-01-2026)
TC 976 Return Posted to Incorrect TIN/Tax Period, Account for Which It Was Intended Does Not Contain an Original Return (TC 150)
  1. If the TC 976 return was intended for another module that does not contain an original return (TC 150), take action on both modules.

  2. On the module to which the TC 976 return is being moved:

    1. Use Form 13596, Reprocessing Returns, to reprocess the return to the correct taxpayer identification number (TIN) or tax period. See IRM 21.5.2.4.23, Reprocessing Returns/Documents, for reprocessing procedures.
    2. If the Master File (MF) status is 02 or 03, use command code (CC) FRM49 to input TC 599 with closing code (CC) 094 (taxable return secured) or 096 (non-taxable return secured).
    3. Input TC 971 AC 017 using command code (CC) REQ77. See IRM 21.7.9.4.1.1, Transcript (TRNS) 193 Involving Reprocessing Returns, for input instructions.

     

  3. On the module from which the TC 976 return is being moved:

    1. Transfer any credits that do not belong on the module. See IRM 21.5.8.4, IDRS Guidelines for Credit Transfers. Input TC 570 if necessary.
    2. Input TC 971 AC 002 to release the E- freeze. See IRM 21.7.9.4.1.1, Transcript (TRNS) 193 Involving Reprocessing Returns, for input instructions.

     

21.7.9.4.10.4 (10-01-2026)
TC 976 Return Posted to Correct Module, Original Return Posted to Incorrect Module
  1. When the TC 976 return posts to the correct module, but the original return intended for that module posts to another module, secure the original return from the incorrect module.

  2. On the module containing the incorrect original return, take the following actions:

    1. Abate the tax assessed on the incorrect module using the appropriate hold code (HC). Also abate penalties and interest, if restricted.
    2. Transfer credits to the correct module. See IRM 21.5.8.4, IDRS Guidelines for Credit Transfers. Input TC 570 if necessary.
    3. Input TC 971 AC 001 using command code (CC) REQ77. See IRM 21.7.9.4.1.1, Transcript (TRNS) 193 Involving Reprocessing Returns, for input instructions.
    4. Reprocess the TC 150 document to the correct period. However, if the return belongs on the module where TRNS 190 was generated and the TC 976 amended return reports the correct tax, reprocess the TC 976 as the original return. Edit an "X" on the TC 150 document and attach it behind the TC 976 return. Edit "Do Not Detach" on the return. Edit the earliest received date from either document onto the return being reprocessed.

     

  3. On the module where TRNS 190 was generated and the TC 976 return is posted:

    1. Reprocess either the original return or the amended return as the TC 150. If reprocessing the TC 976 return, follow paragraph (2)(d).
    2. If the TC 150 from the incorrect module contains the most current tax information, reprocess that return as the original return on the correct module. Reprocess the TC 150 only if it contains more current information than the TC 976 return. Otherwise reprocess the TC 976 return. Edit an "X" on the TC 976 document and attach it behind the TC 150 document. Edit "Do Not Detach" on the return. Edit the earliest received date from either document onto the return being reprocessed.
    3. Input TC 971 AC 002 to prevent generation of TRNS 193.

     

21.7.9.4.10.5 (10-01-2026)
Transcript (TRNS) 190 Received Without TC 976 Return

  1. When a TRNS 190 is received without the TC 976 return, take the following actions:

    1. Request the duplicate return using command code (CC) ESTAB (second request). The generation of the TRNS 190 is considered the first request for the missing tax return.

    2. If Files cannot secure the duplicate return after two requests, contact the taxpayer by phone to obtain a copy of the missing tax return.

      Exception:

      If the TC 976 is a Modernized e-File (MeF) return, do not contact the taxpayer. See IRM 21.7.9.4.1.2.2, Modernized e-file (MeF) Amended Returns, for more information.

       

    3. If the taxpayer does not respond after two telephone attempts, submit a special search request using Form 2275, Records Request, Charge and Recharge, and request a copy of the duplicate return with Letter 418C, Amended/Original Return Unavailable; Copy Requested. Suspend the case for 45 days (70 days for overseas taxpayers).

      Reminder:

      Monitor the account for notice suppression and input a STAUP when necessary. See IRM 21.5.2.4.8.2, Suppressing Balance Due Notices, for additional information.

       

     

  2. If the taxpayer does not reply and the TC 976 return still cannot be located, use the following table:

    IfThen
    1) There are no credits on the module.Input TC 971 AC 002 to release the E- freeze.
    2) There are credits on the module that do not belong on another module (after completing the appropriate research).Prepare a dummy return using the DLN of the TC 976 return, with a tax liability equal to the credits. If the TC 976 return is an employment tax return, see IRM 21.7.2.4.4.3.2, Withholding Tax Adjustment When Unable to Determine Proper Tax Correction.

    Note:

    Use this procedure only when sufficient information is not available to process the return as an original return.