3.12.279 BMF/CAWR/PMF Unpostable Resolution

Manual Transmittal

November 17, 2017

Purpose

(1) This transmits revised IRM 3.12.279, Error Resolution, BMF/CAWR/PMF Unpostable Resolution.

Material Changes

(1) Added Internal Controls information as outlined in the Heightened Awareness, Sensitivity, and Understanding of Internal Controls Memo dated September 14, 2016. Moved Guidelines and Objectives of the Unpostable Function from IRM subsection 3.12.279.1 to IRM subsection 3.12.279.2.

(2) Editorial changes have been made throughout the IRM.

(3) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.9 - Added two IRMs that were listed in training material. Start-up 2017.

(4) IRM 3.12.279.14(5) - Corrected link to IRM per Course Developer (CD) Feedback.

(5) IPU 17U0354 issued 02-23-2017 IRM 3.12.279.14.2 - Added subsection covering Taxpayer Bill of Rights.

(6) IRM 3.12.279.17(2) - Corrected title of IRM 2.3.60 per CD Feedback.

(7) IRM 3.12.279.17(6) - Removed (6) for RTR, duplicate to IRM 3.12.279.18 per CD Feedback.

(8) IRM 3.12.279.18(1) - Added reference to IRM 3.5.10 per CD Feedback.

(9) IRM 3.12.279.20(11) - Corrected title of IRM 4.4.1 per CD Feedback.

(10) IRM 3.12.279.20(14) - Removed bullets 2-4 per CD Feedback.

(11) IRM 3.12.279.29(2) - Corrected IRM link for answering machines/voice mail in Caution per CD Feedback.

(12) IRM 3.12.279.31(2) - Corrected Exhibit links to IRM 3.10.72 per CD Feedback.

(13) IRM 3.12.279.32(4) - Added 5th bullet and linked EEFax memo dated November 19, 2015 per CD Feedback.

(14) IRM 3.12.279.32(8) and (9) - Removed money cap.

(15) IRM 3.12.279.34(8) - Corrected IRM link and title in last box in chart per CD Feedback.

(16) IRM 3.12.279.34(8) - Removed Note in last box of chart per CD Feedback.

(17) IRM 3.12.279.34(9) - Corrected IRM link per CD Feedback.

(18) IRM 3.12.279.48.1(7) - Correct money amounts per CD Feedback.

(19) IRM 3.12.279.48.1(11) - Corrected IRM link to 3.12.279.183 per CD Feedback.

(20) IRM 3.12.279.48.1(12) - Added reference to IRM 3.17.277 for fax number per CD Feedback.

(21) IRM 3.12.279.49(2) - Moved (2) verbiage to (1) and added link to Document 6209. Removed (2) and chart renumbered remaining parens per CD Feedback.

(22) IRM 3.12.279.49(4) - Corrected title of IRM 3.13.2.3.4 per CD Feedback.

(23) IRM 3.12.279.51 - Separated UPC 301s into individual subsections per CD Feedback.

(24) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.51.7(2) j - Added form number to citation and corrected title. Start-up 2017.

(25) IRM 3.12.279.51.11 - Two resolutions added to bottom of chart per CD Feedback.

(26) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.62(8) - Changed verbiage in Exception. Start-up 2017.

(27) IRM 3.12.279.63(3) - Added the word "and" to the last Then box in chart per CD Feedback.

(28) IRM 3.12.279.67 - Removed (3)-(8), (10)-(14) and (16)-(19) these cases are referred to BMF Entity Unpostables per CD Feedback.

(29) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.67(2) - Removed verbiage in chart under TC 057 stating "input by Entity" . Start-up 2017.

(30) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.67(10) d) - Changed the word statement to copy of ruling letter. Start-up 2017.

(31) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.67(11) f) - Added verbiage to first Exception. Start-up 2017.

(32) IRM 3.12.279.74(4) - Corrected money amounts for MFT 13 Then boxes per CD Feedback.

(33) IRM 3.12.279.74(4) - Added new instructions throughout chart per CD Feedback.

(34) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.82(2) - Added new Designated Payment Codes (DPC) to TC 694 per UWR 184080 (RID 01-01-2017). Start-up 2017

(35) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.91(2) - Added new Designated Payment Codes (DPC) to TC 694 per UWR 184080 (RID 01-01-2017). Start-up 2017

(36) IRM 3.12.279.91(9) - Added additional verbiage when sending to Rejects per CD Feedback.

(37) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.91(17) - Added (17) for TC 29X criteria per UWR 181280 (RID 07-31-2017). Start-up 2017.

(38) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.94 - Removed Reason Code 5 since it was obsoleted in 1994. Start-up 2017.

(39) IRM 3.12.279.94(2) - Added additional verbiage when sending to Rejects per CD Feedback.

(40) IRM 3.12.279.110(11) - Corrected spelling from that to than per CD Feedback.

(41) IRM 3.12.279.120 - Added Designated Payment Code (DPC) number 27 to title per CD Feedback.

(42) IRM 3.12.279.121 - Added Designated Payment Code (DPC) number 60 to title per CD Feedback.

(43) IRM 3.12.279.122 - Added Designated Payment Code (DPC) number 43 to title per CD Feedback.

(44) IRM 3.12.279.122(4) - Added verbiage to remove DPC 43 per CD Feedback.

(45) IRM 3.12.279.130 (1) - Corrected Action Codes to 3 digits per CD Feedback.

(46) IRM 3.12.279.131(4) - Removed specific Cache Years (2006-2015).

(47) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.131(5) - Added new Exception 2 per UWR 171848 (RID 01-01-2017). Start-up 2017.

(48) IRM 3.12.279.132(6) - Removed specific Cache Years (2006-2015).

(49) IPU 17U1185 issued 07/25/2017 IRM 3.12.279.132(7) - Added new verbiage for (7) concerning the UPC 329 unpostable tool. Renumbered remaining paragraphs.

(50) IPU 17U1185 issued 07/25/2017 IRM 3.12.279.132(8) - Added new verbiage for (8) concerning the appropriate signature code to use when manually sending the 3007C letter. Renumbered remaining paragraphs.

(51) IRM 3.12.279.148(2) - Corrected IRM link.

(52) IRM 3.12.279.149(2) - Corrected IRM link.

(53) IRM 3.12.279.150(2) - Corrected IRM link.

(54) IRM 3.12.279.151(2) - Corrected IRM link.

(55) IRM 3.12.279.157(2) - Added specific TCs for payments in last box in Chart per CD Feedback.

(56) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.161(1) - Added to chart Reason Code 7 from UWR 33464 (RID 2012) and Reason Code 9 from UWR 173906 (RID 01-01-2017). Start-up 2017.

(57) IPU 17U1360 issued 09-22-2017 IRM 3.12.279.161(1) - Added information for new Reason Code 8 from UWR 184976 mid-year update.

(58) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.162(1) - Added 1120 filing requirement of 19 to Reason Code 6 from UWR 169710 (RID 01-01-2017) Start-up 2017.

(59) IRM 3.12.279.162(2)-(5) - Parens 2 through 5 removed, duplicate instructions per CD Feedback.

(60) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.164 - Added new Subsection for UPC 368 Reason Code 1 created for 971s on ID Theft per UWR 177791 (RID 01-01-2017). Start-up 2017.

(61) IPU 17U0947 issued 06-02-2017 IRM 3.12.279.166(2) s) - Added Note for TC 650. SERP Feedback 201703042

(62) IRM 3.12.279.166(2) - In chart t and u combine and the rest re-lettered per CD Feedback.

(63) IRM 3.12.279.174 - Removed (2) thru (6) for From 2290 to it’s own Subsection 3.12.279.174.1. (2) refers to new subsection and renumbered remaining parens per CD Feedback.

(64) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.183(2) b) - Added verbiage to first Exception. Start-up 2017.

(65) IRM 3.12.279.183(2)e) - Added link to UPC 301 per CD Feedback.

(66) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.202(17) - Added Reference Number 706 to Reason Code 8 per UWR 166636 (RID 01-01-2017). Start-up 2017.

(67) IPU 17U0037 issued 01-03-2017 IRM 3.12.279.207 - Added new Designated Payment Codes (DPC) 44/45/46 and user fees per UWR 184080 (RID 01-01-2017). Start-up 2017.

(68) IPU 17U0061 issued 01-06-2017 IRM 3.12.279.207(6) and (7) - Added new money amounts for the DPCs 44 and 45 per UWR 184080 (RID 01-01-2017).

(69) IPU 17U0635 issued 04-06-2017 IRM 3.12.279.207(8) - Added amount for new user fee.

Effect on Other Documents

IRM 3.12.279, Error Resolution - BMF/CAWR/PMF Unpostable Resolution, dated October 28, 2016 (effective January 1, 2017) is superseded. The following IRM Procedural Updates (IPUs) issued between January 3, 2017 through September 22, 2017- 17U0037, 17U0061, 17U0354, 17U0635, 17U947, 17U1185, 17U1260 and 17U1360 have been incorporated into this IRM.

Audience

Employees located in all business operating divisions who need information on Business Master File (BMF) unpostable conditions, or employees required to use this manual for unpostable resolution.

Effective Date

(01-01-2018)

Linda J. Brown
Director, Submission Processing
Wage and Investment Division

Program Scope

  1. This section contains instructions for procedures on maintaining the integrity of the Business Master File, Combined Annual Wage Reporting and Payor Master File Unpostables by identifying unpostable transactions/conditions that are not compatible with existing master file data or normal Submission Processing Campus operating procedures and their resolution.

  2. Purpose: This section provides Business Master File (BMF), Payer Master File (PMF) and Combined Annual Wage Reporting (CAWR) information, guidelines and procedures for resolving unpostables using the Generalized Unpostable Framework (GUF). It also provides directions to all individuals who use the GUF to display, research, suspend and close INDIVIDUAL or FILES type unpostable cases. See IRM 3.12.32, Error Resolution - General Unpostables, for a description of INDIVIDUAL and FILES unpostable cases. This section also applies to the management of Unpostable processing.

  3. Audience: These procedures apply to Wage and Investment (W&I) Submission Processing Input Corrections Operations (ICO) personnel:

    • Supervisory Tax Examining Assistant

    • Lead Tax Examining Technician

    • Tax Examining Technician

  4. Policy Owner: Director, Submission Processing.

  5. Program Owner: Specialty Programs Branch, Post Processing Section.

  6. Primary Stakeholders: Other areas that may be affected by these procedures include (but not limited to):

    • Information Technology (IT) Programmers

    • Taxpayer Advocate Service (TAS)

    • Chief Counsel

    • Compliance

    • Submissions Processing

    • Large Business and International (LB&I)

    • Small Business Self-Employed (SBSE)

Background

  1. IRM 3.12.279 provides procedures for maintaining the integrity of the Business Master File, Combined Annual Wage Reporting and Payor Master File Unpostables by identifying unpostable transactions/conditions that are not compatible with existing master file data or normal Submission Processing Campus operating procedures and their resolution.

Authority

  1. Title 26 of the United States Code (USC) or more commonly known as the Internal Revenue Code (IRC). The IRC has been amended by acts, public laws, rules and regulations, such as the following:

    • Revenue Reconciliation Act of 1998 (RRA 98)

    • Affordable Care Act (ACA)

    • Patient Protection and Affordable Care Act (PPACA) as amended by the Health Care and Education Reconciliation Act of 2010 (HCERA)

    • Federal Tax Liens - Lien Release and Related Topics IRC § 7432

    Note:

    The above list may not be all inclusive of the various updates to the IRC.

Responsibilities

  1. The Campus Director is responsible for monitoring operational performance for the Submission Processing campus.

  2. The Operations Manager is responsible for monitoring operational performance for their operation.

  3. The Team Manager/Lead is responsible for the performance monitoring and ensuring employees have the tools to perform their duties.

  4. The Team Employees are responsible to follow the instructions contained in this IRM and maintain updated IRM procedures.

Program Objectives and Review

  1. Program Goals: Make corrections on unposted cases falling out through the Generalized Unpostable Framework (GUF).

  2. Program Reports: System control reports are on the Control-D WebAccess (CTDWA) and a general listing of the reports are located in IRM 3.12.32, Error Resolution - General Unpostables.

  3. Program Effectiveness:

    • Embedded Quality Submission Processing (EQSP)

    • Balanced Measures

    • Managerial Reviews

  4. Annual Review: The processes outlined in this IRM should be reviewed annually to ensure accuracy and promote consistent tax administration.

Acronyms

  1. An acronym is a word formed from the initial letter or letters of each of the successive parts or major parts of a compound term, such as IDRS for Integrated Data Retrieval System.

  2. Acronyms used in this IRM will be identified and explained in each subsection. After the acronym is identified and explained then only the acronym will be used throughout the rest of the subsection. Some acronyms are used universally throughout the IRS and identifying and explaining these in multiple subsections would be unnecessarily redundant. Some examples of these universal acronyms are IRM, IRC and IDRS.

  3. The following list of acronyms are used throughout this IRM:

    • ACS - Automated Collection System

    • ASED - Assessment Statute Expiration Date

    • BMF - Business Master File

    • BMFOL - Business Master File On Line

    • CADE - Customer Account Data Engine

    • CAF - Centralized Authorization File

    • CAWR - Combined Annual Wage Reporting

    • CC - Command Code

    • CP - Computer Paragraph

    • CSPC - Cincinnati Submission Processing Campus

    • DCC - Detroit Computing Center

    • DLN - Document Locator Number

    • ECC-MTB - Enterprise Computing Center at Martinsburg

    • ECT - Entity Control Team

    • EFTPS - Electronic Federal Tax Payment System

    • EIN - Employer Identification Number

    • EPMF - Employee Plans Master File

    • ERAS - EIN Research Assignment System

    • ERS - Error Resolution System

    • EUP - Employee User Portal

    • EUT - Entity Unpostable Team

    • FEMA - Federal Emergency Management Agency

    • FICA - Federal Insurance Contributions Act

    • FRC - Filing Requirement Code

    • FSPC - Fresno Submission Processing Campus

    • FYM - Fiscal Year Month

    • GMF - Generalized Mainline Framework

    • GUF - Generalized Unpostable Framework

    • HSM - Hierarchical Storage Management

    • IAT - Integrated Automation Technologies

    • IDRS - Integrated Data Retrieval System

    • IMF - Individual Master File

    • IMFOL - Individual Master File on Line

    • IRC - Internal Revenue Code

    • IRM - Internal Revenue Manual

    • IRS - Internal Revenue Service

    • IRSN - Internal Revenue Service Number

    • ITIN - Individual Taxpayer Identification Number

    • JPMR - Joint Program Management Review

    • KCSPC - Kansas City Submission Processing Campus

    • LB&I - Large Business and International Division

    • MCC - Major City Codes

    • MF - Master File

    • MRS - Microfilm Replacement System

    • NAP - National Account Profile

    • NC - Name Control

    • OAR - Operations Assistance Request

    • OMB - Office of Management and Budget

    • OSPC - Ogden Submission Processing Campus

    • PMF - Payer Master File

    • POA - Power Of Attorney

    • PRP - Programming Requirements Package

    • PSSN - Primary Social Security Number

    • QSST - Qualified Subchapter S Trust

    • RAF - Reporting Agent File

    • RC - Reason Code

    • RDD - Return Due Date

    • SCRIPS - Service Center Recognition Image Processing System

    • SCUPMF - Service Center Unpostable Master File

    • SLA - Service Level Agreement

    • SGRI - Supplemental Group Ruling Information

    • SSA - Social Security Administration

    • SSSN - Secondary Social Security Number

    • TAS - Taxpayer Advocate Service

    • TC - Transaction Code

    • TE - Tax Examiner

    • TIF - Taxpayer Information File

    • TIGTA - Treasury Inspector General for Tax Administration

    • TIN - Taxpayer Identification Number

    • TP - Taxpayer

    • UPC - Unpostable Code

    • URC - Unpostable Resolution Code

    • VBDEA - Visual Basic Data Entry Application

    • VITA - Volunteer Income Tax Assistance

    • WIRS - Wage Information Retrieval System

    • XML - Extensible Markup Language

    • XSF - Excess Collection File

    • YTD - Year To Date

    • ZTIF - Other Taxpayer Information File

Related resources

  1. The following resources will assist in performing the work as outlined in this IRM.

    • Integrated Data Retrieval System (IDRS)

    • Service Electronic Research Program (SERP)

    • Submission Processing Design Center (SPDC)

    • Integrated Automation Technologies (IAT)

    • Online Retrieval System (ORS) for the SSA site

Guidelines and Objectives of the Unpostable Function

  1. Maintain the integrity of the Master File by identifying transactions that are not compatible with existing Master File data or normal Submission Processing campus operating procedures.

  2. Review the unpostable records in a manner that will result in expeditious processing, proper posting, and minimize adverse taxpayer contact.

    1. Accounts in balance due status, where the Unpostable correction involves decreasing or eliminating a balance due, STAUPs must be input. The STAUP will be based on the module status. If the case is being referred to Adjustments, Collections or Taxpayer Advocate Services (TAS), input STAUP for 15 weeks. All others input for four weeks.

    2. During conditions of backlogs, high priority must be given to processing unpostables related to refunds and payments on accounts where returns have previously posted and therefore are probably in a balance due condition.

    3. Review all unpostable systemic problems to minimize taxpayer impact. Mass receipts of unpostables due to systemic "bugs" involving accounts in balance due status will result in mass input to defer subsequent notices. Mass receipts result in immediate contact by management to Notice Review to ensure erroneous notices are not mailed. Contact your manager immediately upon identifying a possible systemic problem, so management support can be contacted. Keep copies of examples, sanitized when appropriate.

    4. IRM 25.6, Statute of Limitations, provides guidelines for the clearing and processing of Statute imminent cases. Different methods are used to determine the assessment statute expiration date (ASED), refund statute expiration date (RSED), or collection statute expiration date (CSED). The Unpostable functions will familiarize themselves with information related to an Unpostable condition. However, Unpostables must "clear" all statute-imminent cases other than transaction code (TC) 291 or TC 301 decreases through the Statute function. Decreases should be forwarded to the Accounts Management Correspondence section whether the statute is imminent or expired.

    5. IRM 3.12.278, Exempt Organization Unpostable Resolution, provides guidelines for processing Exempt Organization (EO) unpostable returns and extensions.

    6. IRM 21.4.4, Manual Refunds, and IRM 3.17.79, Accounting Refund Transactions, provide guidelines for the issuance of manual refunds.

    7. IRM 3.12.32, General Unpostables, provides guidelines for processing credit interest cases.

    8. IRM 3.12.166, EPMF Unpostables, provides guidelines for processing Employee Plans Master File returns and documents.

    9. Processing of unpostable returns subject to return delinquency notices where the issuance of the first notice is imminent or already has taken place must include the processing of TC 590/599 closing code (CC) 018 to both minimize unnecessary collection activity and adverse taxpayer impact.

  3. Integrated Automation Technologies (IAT) tools are designed to increase efficiency and accuracy of regular processing. The tools allow users to be more productive, and help employees ensure they are processing their cases as accurately as possible. The use of IAT is mandatory. See the IAT website http://iat.web.irs.gov/ for a list of available tools and User Guides. Managers will ensure that all employees receive training on the use and application of IAT.

Weekly Management Review

  1. Weekly management review of unpostables should include identification of unpostables to be assigned and worked in the following priority.

    1. Protection of government interest (Insolvency, Criminal Investigation, Statute, program bugs)

    2. Cash flow (interest impact)

    3. Taxpayer relations (payment, refunds, adjustment transactions)

    4. All other conditions

  2. Weekly management review should include:

    1. Reviewing actual work more than two cycles old to ensure minimum delays in processing exist, or to determine if work is being delayed because of a lack of employee training.

    2. Ensuring initial case handling was proper. 100 percent review of repeat unpostables is required any time the repeat unpostables for a given cycle exceeds 20 percent of the receipts per Master File.

    3. Reviewing suspense cases to ensure suspense is timely and appropriate; replies are worked as soon as received, and no-replies are worked expeditiously.

      Note:

      See IRM 3.12.32, General Unpostables, for the guidelines in monitoring Unpostable receipts and inventories.

  3. To minimize delays and costs to other Submission Processing campus functions:

    1. Prior to transferring cases to Unidentified, an attempt to contact taxpayers must be made. The results of the contact, if not conclusive, must be forwarded to Unidentified.

    2. When overpayments of accounts are present, the taxpayer will be contacted to determine if payment was intended for another account.

    3. Transactions that will freeze an account such as TC 570/640 will not be used unless there is a reason to believe the liability is imminent.

    4. Work referred to other organizations should be avoided if related organization can provide guidelines for unpostable processing and management feels they have the skills to execute the instructions with less than 5 percent error rate.

    5. Impact of an unavailable document should be minimized by having special employees assigned to work these cases. Every attempt should be made to resolve those cases prior to requesting the document a second and third time. For other than sensitive cases (Criminal Investigation and Insolvency) taxpayers should be requested to provide a copy of the return when an address is available.

    6. No reply actions should be based on a 30 day period beginning with the day the letter is mailed to the taxpayer.

      Note:

      The instructions in this IRM are meant to conform to the unpostable philosophy. In instances where the specific procedures are in conflict with the unpostable philosophy in this section, the specific instructions will take precedence. A system change request citing the specific IRM reference in conflict should be forwarded to the Headquarters IRM analyst.

Customer Account Data Engine (CADE) 2

  1. The CADE 2 Program Office in Headquarters is charged with the primary goal of implementing a single, modernized programming solution which provides daily processing of taxpayer accounts.

    Note:

    The CADE Master File, as it existed from 2004 - 2011, will transition from Production at the end of 201152.

  2. The CADE 2 solution is comprised of several components; to modernize the IRS to a daily processing environment with several Transition States.

  3. With CADE 2 there will be changes to campus cycles. The new BMF campus cycles are:

    • Campus Cycle: Thursday - Wednesday

    • Master File Processing: Friday - Thursday

    • Notice Review: Saturday - Monday (8+ days)

    • Unpostables: New available Tuesday; Closing Tuesday

  4. BMF transaction posting time-frames are outlined as follows:

    1. Transactions will be viewable using Corporate Files On-line (CFOL) command codes on Saturday following the weekly Master File processing run each Thursday.

    2. Transactions will be viewable as posted transactions using Integrated Data Retrieval System (IDRS) command codes on Monday following the weekly Master File processing run on Thursday.

    Note:

    With the acceleration of the IDRS weekly analysis being performed the weekend directly after the Master File processing on Thursday, transactions will be posted instead of in pending status on Monday.

Unpostables Requiring Manual Refunds

  1. Any unpostable return can potentially require a manual refund. Unpostable employees are required to be thoroughly familiar with how to identify when a manual refund is necessary and the actions required to initiate a manual refund.

  2. What is a manual refund? A manual refund (TC 840) is a refund issued in cases which the IRS has determined require expedited processing to provide the refund to the taxpayer as quickly as possible. A manual refund is not generated through normal Master File processing (TC 846), but is processed manually by the Submission Processing Accounting Function, who schedules and certifies manual refunds.

  3. If a credit transfer is needed, use ADD/ADC24 (Doc Code 24). For Form 1120, U.S. Corporation Income Tax Return, do not input a TC 570 on the credit side of a manual refund.

  4. Why would a manual refund be needed? Conditions necessitating a manual refund include:

    1. The refund will be going to someone other than the entity name on the master file;

    2. A hardship situation necessitates a quicker refund than normal systemic processing can provide;

    3. The refund is not for a Master File account (e.g., photocopy fees or credit card charge-backs);

    4. Systemic limitations prevent a normal computer-generated refund.

    5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See IRM 3.12.279.6, Working the Unpostable Interest Reduction Initiative Report (GUF 07-42).

  5. Following are some circumstances which may warrant the issuance of a manual refund:

    • Hardship,

    • Civil Cases,

    • Form 4466, Corporation Application for Quick Refund of Overpayment,

    • Form 8302, Direct Deposit of Tax Refund of $1 million or more,

    • Form 8050, Direct Deposit of Corporate Tax Refund,

    • Refunds less than $1.00,

    • Non Master File Refunds,

    • Congressional Inquiries,

    • Schedule 2, Form 8849, Claim for Refund of Excise Taxes (electronically filed) refer to IRM 21.7.8 for additional information,

    • Offers in Compromise,

    • State Income Tax Levy Program,

    • Return of levied property to taxpayer,

    • Statute Imminent cases,

    • Injured Spouse Claims,

    • Deceased taxpayers,

    • Reimbursement of return photocopy fees,

    • Charge back for unauthorized credit card payments,

    • Taxpayers in bankruptcy (see note below), and

    • Non-receipt of direct deposit refunds due to IRS error.

  6. Refer to the following IRM's for manual refund requirements:

    • IRM 3.17.79, Accounting Refund Transactions,

    • IRM 20.2.4, Overpayment Interest,

    • IRM 21.4.1, Refund Research,

    • IRM 21.4.2, Refund Trace and Limited Payability,

    • IRM 21.4.3, Returned Refunds/Releases,

    • IRM 21.4.4, Manual Refunds,

    • IRM 21.4.5, Erroneous Refunds, and

    • IRM 21.4.6, Refund Offset.

    In addition, research http://serp.enterprise.irs.gov for the most current and accurate manual refund Alerts and IRM Procedural Updates (IPUs) on the Servicewide Electronic Research Program (SERP).

Working the Unpostable Interest Reduction Initiative Report (GUF 07-42)

  1. In an effort to reduce the amount of interest paid by the IRS due to untimely processing, Interest Reduction Initiative Reports (GUF 07-42 and 51-43) and Summaries (GUF 07-43 and 51-44) will be produced for all BMF TCs 150, 295 and 299 unpostable records where the credit interest date is in jeopardy or has expired.

  2. If the Internal Revenue Service does not meet the 45-day interest free period for return processing, interest must be paid to the taxpayer.

  3. All unpostable returns which have been identified on the GUF 07-42, New Unpostables with Interest Free Period Due to Expire, and other unpostable returns which would result in a refund greater than the amount identified in the Campus as the Unpostable Interest Reduction Initiative tolerance amount, are to be processed as high priority work. (Tax Examiners receive a GUF 51-43 report, listing "Interest Free Due to Expire" cases assigned to them.) These cases are to be worked or documents ordered as soon as possible. Expedite manual refunds to Rejects.

  4. If a return is identified as "Amended" or "Superseded" , and a TC 150 has posted, do not treat as a credit interest return. If the return is identified as a "Duplicate" or "Replacement" , but no TC 150 is posted or pending, treat as a credit interest return if all other criteria is met.

  5. Do not treat a return filed on the wrong form as a credit interest return, or any return to be reassigned to the Criminal Investigation (CI) function.

  6. If the return is a unpostable code (UPC) 29X or UPC 49X (incorrect or invalid return conditions only), or the return appears to have a math error condition(s), do not issue a manual refund. Unpostable resolution code (URC) 8 to close the case to the Reject function for verification of the tax data and overpayment amount. Notate on the Form 8749, Unpostable Action and Routing Slip or 8-code slip the interest computation date and any corrective action(s) needed. Coordinate directly with the Reject Function on any cases for which a manual refund may be needed.

  7. If the unpostable resolution requires the input of a correspondence received date, use URC 8 to close the case to the Reject Function, noting on the Form 8749 or 8-code slip any corrective action(s) needed and the correspondence received date. Coordinate directly with the Reject Function on any cases for which a manual refund may be needed (if the correspondence received date plus 45 days indicates the interest-free period is in jeopardy).

  8. If the return cannot be obtained (Not in Files, Charged-out, or Missing), after following established procedures for ordering missing documents, use CC UPCASD4 to close the case to Rejects (Special Search). Notate on the Form 8749 or 8-code slip, "Return unavailable" .

  9. Close cases to Rejects using URC 8, notate on the Form 8749 or 8-code slip, ″Manual Refund″.

Unpostable Closures

  1. Unpostable cases should not be reassigned between the Unpostable Unit and Entity/Entity Unpostables unless specific criteria is met. Coordination with Entity Unpostables involves dedicating a specific basket or bin to place unpostable cases requiring special assistance (expedite process). These unpostables must be reviewed by Entity Unpostables within an established timeframe. No more than three business days can elapse, before the unpostable case is returned to the Unpostable Function to prevent aged unpostables. Expeditious processing of unpostables is imperative to avoid aged inventory.

    Caution:

    If you are coordinating an unpostable with another area for taxpayer information number (TIN) clarification you must provide specific remarks as to the reason why the unpostable is being forwarded. Suspend the case. Do not reassign the document. The receiving area may return the unpostable for insufficient information. The receiving area must respond within three business days.

  2. Unpostables will reassign cases to the appropriate function:

    Example:

    Exempt Organization, Employee Plans Master File.

    If the case requires Entity Control resolution, for example; UPC 301, 303, 307, and 329. The receiving area will be responsible for resolving the unpostable condition. This reassignment will take place only after Unpostables has attempted to resolve the case. Unpostables will also attach all research when reassigning the case.

  3. AUTO-VOID/AUTO REJECT-Cases closed automatically by the GUF system are Auto Voided (URC 2 or D) or Auto-Rejected (URC 8) without human intervention. These processes apply to all unpostable areas/functions. However, not all Unpostable Codes/Category Codes can be closed automatically.

    Note:

    Doc Code 51 unpostables can never be GUF Auto-Closed URC 2 to the originator

  4. MASS-Multiple cases can be closed with one GUF input action using CC UPBAT. This process is called mass (batch) closures.

  5. FILES-The requirement for the Files function to work Category F1 and F3 unpostables was removed from their manual. However, these GUF category codes are still in existence. The volume of unpostable cases no longer warrants this procedure for the following reasons:

    1. Implementation of the up-front entity validation of the National Account Profile (NAP); and

    2. The Unpostable function will request the document from the Files function on the preprinted Form 4251, Return Charge-Out after research.

  6. INDIVIDUAL-Single case manual closures are completed in the Unpostable, Examination (Exam), Entity Unpostable Team, Criminal Investigation (CI), and Statute functions.

Generalized Unpostable Framework (GUF)

  1. IRM 3.12.32, General Unpostables, provides information on:

    • "How" to input the necessary terminal requests to display, suspend, research and resolve unpostable cases.

    • General guidelines regarding processing of all Unpostable cases.

    • Case reassignment guidelines and procedures.

    • MASS closure, batch and Integrated Submission and Remittance Processing (ISRP), and certain FILES closure guidelines. However, if a case designated for "MASS" closure is reassigned (from the SC or "unit" number) to an INDIVIDUAL, the case will be closed per instructions in this manual.

    • Unpostable Categories, Form 4251, Return Charge-Out, Unpostable Listings, Command Codes and Terminal Screen formats, also general Unpostable Resolution Code (URC) corrective action.

  2. Tax examiners in general should not reassign cases to or from themselves to another employee number or area.

IRM References

  1. IRM 3.13.222, BMF Entity Unpostable Correction Procedures

  2. IRM 3.12.278, Exempt Organization Unpostable Resolution

  3. IRM 3.12.166, EPMF Unpostables

  4. IRM 3.5.10, Remittance Transaction Research (RTR) System

  5. IRM 21.5.5, Unpostables

  6. IRM 21.5.7, Account Resolution - Payment Tracers

  7. IRM 4.4.35, Unpostable Resolution

  8. IRM 3.42.5, Electronic Tax Administration - IRS e-file for Individual Income Tax Returns

IRM Deviations/Local Procedures

  1. IRM deviations must be submitted in writing following instructions from IRM 1.11.2.4, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevated through appropriate channels for executive approval.

  2. Local procedures are created or developed to provide specific instructions to local offices on particular programs. They supplement and support the IRM. Local procedures cannot deviate, contradict, or duplicate material in the IRM nor can they set policy or change National program guidance. It is the responsibility of each manager to ensure all employees are aware of and have access to local procedures.

  3. Provide a copy of all memorandums of understanding to the headquarters analyst.

General Unpostable Concepts

  1. When resolving Unpostable records, follow the intent of the initiator as far as possible within the provisions of the Internal Revenue Code and the appropriate Master File computer program constraints. If there is a conflict between the general and specific instructions, notify Head Quarters for a determination.

  2. Include priority for processing payment transactions and the use of STAUP. For IDRS STAUP guidelines see IRM 3.12.279.38,Taxpayer Delinquent Investigation (TDI) and Notice Delay Information.

  3. Use the guidelines in IRM 3.12.279.13, Taxpayer Communication, and IRM 3.12.279.29, Correspondence Guidelines and Unprocessable Information and Procedures, to ensure consistency in correspondence.

  4. The Unpostable function must exercise precautions when correcting unpostable records. When a payment is identified for a particular tax module and has posted or unposted within another module, proper research and credit transfers should be input to the correct taxpayer identification number (TIN), and/or tax period. Accurate posting of these accounts will expedite processing and minimize adverse taxpayer contact.

Discovered Remittances Found While Processing Unpostables

  1. Cash and non-cash remittances found during processing after the mail opening operation are discovered remittances.

  2. It is the responsibility of the Unpostable Tax Examiner to review the envelope for the possibility of a remittance when working unpostables involving missing payments.

Taxpayer Communication

  1. Section 3705(a) - The IRS Restructuring and Reform Act of 1998, Section 3705, provides identification requirements for all IRS employees working tax-related matters.

  2. IRS employees are required to give their name and unique identification number during taxpayer telephone, face to face, and written contact. In addition, a telephone number is required on all taxpayer correspondence. Refer to IRM 10.5.7, Use of Pseudonyms by IRS Employees, for additional information.

    Note:

    As a general rule, do not give out another employee's name or telephone number. If the taxpayer or representative needs to talk to another employee or manager, offer to take the taxpayer's or representative's number and have the requested employee call them back.

  3. All IRS employees, in the campus, national, and area offices, who communicate, by telephone, correspondence, or face to face, with taxpayers, or their personal representatives, on tax-related matters, are required to provide (at a minimum) the following information:

    • Telephone Contact: Their title (e.g., Mr., Mrs., Ms., Miss), their last name, and their badge identification (ID Card) number.

    • Face to Face: This information should be their title (e.g., Mr., Mrs., Ms., Miss), their last name, and their ID (badge) number, provided as appropriate during their conversation.

    • Correspondence: All correspondence must include a telephone number where the taxpayer's question can be answered. In addition, manually–generated and handwritten correspondence must include their title (e.g., Mr., Mrs., Ms., Miss), their last name, and their Integrated Data Retrieval System (IDRS), letter system, or ID Card (badge) number.

  4. The IDRS number and numbers for some other letter systems are automatically generated. If it is not generated, or a handwritten note is prepared, the ID Card (badge) number must be used.

  5. Toll-Free employees may also provide their location for identification purposes. Facsimiles to taxpayers on tax-related matters are considered manually-generated correspondence and must include the required information.

  6. Correspondence, whether sent directly to the taxpayer or to the taxpayer's personal representative, must contain the required information.

  7. When a taxpayer requests to speak with a specific employee who previously handled the inquiry or request, or complains about the level of service previously provided, every attempt should be made to resolve the taxpayer's inquiry. If the issue cannot be resolved, the employee should refer the inquiry, using established procedures, to his or her manager.

  8. The Taxpayer Advocate Service (TAS) assists taxpayers who are experiencing economic burdens and/or unreasonable delays in resolving tax problems with the IRS. See IRM 3.12.279.14, Taxpayer Advocate Service (TAS) Guidelines, for more information on determining whether TAS case criteria applies and when to prepare and route Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order) to TAS.

  9. Correspondex letters will require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any questions the taxpayer may have about the correspondence, or the employee is asking the taxpayer to provide additional case-related information.

  10. Otherwise, if the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

  11. Secretaries, receptionists, or other people who answer the telephone in functional offices need to identify themselves. They should provide their ID Card (badge) number only if they are answering telephones which are routinely used to provide tax or account information.

  12. It is not necessary to repeat the ID Card (badge) number on a subsequent contact when the nature of an employee's work involves multiple contacts with the same taxpayer, and the employee has given the taxpayer (either telephone or in-person) the employee's ID Card (badge) number on the first contact.

Taxpayer Advocate Service (TAS) Guidelines

  1. TAS assists taxpayers who are experiencing economic burdens and/or unreasonable delays in resolving tax problems with the IRS.

  2. Unpostable unit employees must thoroughly familiarize themselves with the criteria required for TAS case referrals. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria. Taxpayers, their representatives, or IRS employees may complete Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance order), to request assistance from TAS.

  3. Refer a return with a notation of an actual or potential hardship to your Work-leader or Supervisor.

    Note:

    If the taxpayer specifically requests TAS assistance, the case should be automatically referred to the Local Taxpayer Advocate.

  4. Items meeting TAS criteria may be discovered at any point in the processing cycle. If the item or case meets any TAS criteria, the case should be referred to the work-leader/Supervisor for referral to TAS. If the criteria cannot be determined but the taxpayer indicates a number of contacts, i.e., letters, calls etc., have been made and we cannot readily determine if this is the third or more contact, the employee should inform his or her supervisor of possible TAS action.

  5. On unposted IMF or BMF tax returns, excess credits claimed (i.e. the amount of reported credits exceeding the tax liability) may be refunded to the taxpayer when a hardship situation exists even when it would otherwise be subject to offset to outstanding IRS debts. These are referred to as Offset Bypass Refunds (OBR). See IRM 3.12.279.14.1, Cases Requiring Special Handling, for more information on how to address these situations. Additional guidance may be found in IRM 21.4.6.5.11.1, Offset Bypass Refund.

  6. TAS will not authorize a refund release or release a refund that is being held when Integrity and Verification Operations (IVO) or Criminal Investigation (CI) involvement is evident. If TAS believes a refund should be released, they should work with IVO or CI before taking any action on the account.

  7. Problems meeting TAS criteria do not need to be sent to TAS, if they can be resolved by the unpostable function within 24 hours. The definition of "same day" is within 24 hours. There will be times you can completely resolve the issue within 24 hours. There will also be times that although you cannot completely resolve the issue within 24 hours, if you have taken steps within 24 hours to resolve the taxpayer's issue, these cases also meet the definition of "same day" . Do not refer these cases to TAS unless the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4, Same-Day Resolution by Operations. It is important all IRS employees handle potential TAS cases with the taxpayer's best interest in mind.

Cases Requiring Special Handling

  1. Offset Bypass Refunds (OBRs)

    1. In hardship cases, the Service may issue a manual refund of excess credits without first satisfying ("offsetting" ) outstanding tax liabilities and, instead, refunding the overpayment to the taxpayer. OBRs may not be issued to bypass a Treasury Offset Program (TOP) obligation. Credits holding on an account may not be refunded to the extent that they will satisfy a TOP obligation.

    2. OBR requests frequently originate with the Taxpayer Advocate Service (TAS). However, any IRS function that receives an OBR request and can provide the requested relief may process these hardship refund requests. If the unpostable function has problems determining whether hardship exists, it should contact the Local Taxpayer Advocate (LTA) for assistance. In instances in which it takes time to determine whether a hardship exists, or procedures do not result in the posting of the OBR request, actions should be taken to prevent the posting of the assessment until the hardship determination can be made

    3. OBRs can be requested by any functional office and must be signed by the authorized approving official as determined by your function.

    4. OBR paper requests are no longer automatically referred to the Taxpayer Advocate Service. A request for an OBR must be worked immediately upon receipt.

    5. The analysts for IRM 21.4, Refund Inquires, and IRM 3.17.79, Accounting Refund Transactions, are responsible for instructions as to what situations qualify for manual refunds, the programming to allow manual refunds to be processed, the design of the manual refund forms (Form 5792 and Form 3753), the instructions for completing the forms, and the instructions to Accounting for processing the completed forms. They are not responsible for determining when an OBR is appropriate.

    6. IRM 21.4.6, Refund Inquiries - Refund Offset, provides instructions for identifying Offset Bypass Refunds (OBRs). IRM 3.17.79, Accounting Refund Transactions, includes instructions for Accounting to accept these manual refunds for processing, any special instructions for processing and instructions to maintain a log of all OBRs issued.

  2. Issues and Considerations for OBRs - For accounts with no freeze codes, OBR requests must be received and processed before the actual posting date on the freeze condition and before the account is offset. OBRs may also be made on subsequent adjustments made to a tax module and result in an overpayment. These may include a payment or credit transfer, an audit tax adjustment, a math error correction, and an amended return or claim that is filed and processed. Each will have its own 23C date.

    1. Overpayments are excess credits claimed on original returns (TC 150) or subsequent adjustments (including TC 290 and TC 300) that have not posted to Master File. Generally for original returns an OBR must be issued before the posting date (23C date) of the original return (TC 150) on which the overpayment was claimed. The Assessment Document Date or the 23C Date is always a Monday

    2. Evidence of the credit condition and documentation must be provided when an OBR manual refund posting voucher is submitted to Accounting Branch. Evidence may be either a copy of the return or an Integrated Data Retrieval System (IDRS) print showing the amount of the overpayment on the account.

    3. The processing of an OBR requires prompt treatment to avoid the occurrence of an offset during Master File processing, depending upon the way in which the return is filed, i.e., paper or electronic.

    4. If the offset (TC 896 or TC 826, etc.) is pending, it must be reversed.

    5. If there is a pending refund (PAN TC 840, TC 846), and the refund cannot be stopped, issue a manual refund for only the offset amount.

    6. Update IDRS with activity code "TC840 OBR"

    7. If an overpayment and/or account is frozen, or if other special conditions are evident, an OBR request may require contact with the affected function.

      Example:
      "-Z" or "Z- " Freeze-contact CI function
      "-V" Freeze (bankruptcy) - contact the appropriate Insolvency function using the directory located at http://serp.enterprise.irs.gov, then click on Who/Where and go to Insolvency (Bankruptcy) National Field/Centralized Site Directory
      The statute for refund has expired-no refund may be issued
      OCS2 (02) - Child Support-DMFOL
      Invalid Social Security Number (SSN) conditions
      "-U" Freeze (Erroneous Refund - TC 844)
      "-Q" Freeze (Unallowable HoId - TC 576) - do not issue the refund for the TC 576 amount
    8. Initiators are responsible for monitoring the account and taking all necessary subsequent actions. Evaluation and monitoring are critical to prevent erroneous refunds.

  3. Taxpayer Advocate Service Operations Assistance Requests (OARs): The Taxpayer Advocate Service uses the Operations Assistance Request (OAR) process to refer a case to the Operating Division/function when TAS lacks either the statutory or delegated authority to effect the resolution of the taxpayer's problem. The Taxpayer Advocate Service utilizes Form 12412, Operations Assistance Request (OAR), to initiate the OAR process. Taxpayer Advocate Service requests must receive priority attention in accordance with the Service Level Agreement .

Taxpayer Bill of Rights

  1. The Taxpayer Bill of Rights (TBOR) adopted by IRS in June 2014 outlines the ten fundamental rights of taxpayers.

Slipped or Mixed Blocks of Payments

  1. Slipped or mixed block conditions originate with the input of payments to the computer system. This can occur through the Integrated Submission and Remittance Processing (ISRP) and Integrated Data Retrieval System (IDRS) in Area Offices. The key elements in identifying a slipped or mixed block condition are relatively easy to recognize and include:

    1. The missing payment for one taxpayer is posted to the account of an unrelated taxpayer.

    2. There is a payment posted to the complainant's account with the same transaction date and a sequential Document Locator Number (DLN) which is unclaimed and/or excess.

      Example:

      Taxpayer A sends in a photocopy of a canceled check. In researching Taxpayer A's account it is found that there is a payment with the same transaction date but the DLN is different from that on the check, instead of 32210–105–60025–8 it reads 32210–105–60026–8.

  2. When a slipped or mixed block is discovered, resolve the unpostable condition and route the block to Accounts Management.

Lien Release Considerations

  1. IRC 6325(a) requires the IRS to release liens within 30 days when accounts are fully paid or satisfied. The 30 day time frame begins when credits are received, regardless of correct posting. IRC 6325(a) requires the issuance of a release of federal tax lien within thirty (30) calendar days of the date on which:

    • The liability is satisfied;

    • The liability becomes legally unenforceable; or

    • A bond is accepted.

  2. Timely release of the lien is essential. IRC § 7432 gives taxpayers the right to sue the federal government if the Service knowingly or negligently fails to release a lien.

  3. Conditions that satisfy liens and may require manual release of liens are comprised of the following:

    • Form 3870, Request for Adjustment

    • Form 4159, Payment Tracer Request

    • Premature assessment in tax court cases

    • Pending abatements

    • Corrected unpostables and

    • Delayed payment posting

  4. See IRM 5.12.3, Federal Tax Liens - Lien Release and Related Topics IRC § 7432. Employees of functions with access to the Automated Lien System (ALS) will input lien release requests in these situations. For those functions that do not have access to ALS, determine the Centralized Lien Unit (CLU) lien release contact on the IRS intranet by going to:

    1. IRS Intranet Homepage;

    2. SERP;

    3. Who/Where;

    4. Advisory Units Contact List;

    5. Advisory Contacts Quick Links;

    6. Lien Certificates.

  5. If a TC 582 indicator is present on any unpostable tax module and there is no TC 583 once the unpostable is resolved expedite to the CLU.

Research Information, Methods, and Tools

  1. The Taxpayer Information File (TIF) is the major database for use within Integrated Data Retrieval System (IDRS). The TIF includes the following types of accounts:

    • The Business Taxpayer Information File (BTIF),

    • The Individual Taxpayer Information File (ITIF),

    • The Miscellaneous Taxpayer Information File (ZTIF) for Employee Plans Master File Processing (EPMF) and,

    • The Automated Non-Master File (ANMF).

  2. The Name Search Facility (NSF) supports Command Codes (CCs), NAMES, NAMEE, NAMEI, NAMEB, FINDS, and FINDE, query a national relational database at MCC. Unpostable employees, who know the name and address of a taxpayer and need to locate a taxpayer's account number, or vice-versa, can use these command codes for research purposes. For additional information on these command codes see IRM 2.3.60, Command Codes NAMES, NAMEE, NAMEI, NAMEB, FINDS, FINDE and TPIIP.

  3. IDRS Command Codes - The IDRS Command Codes that create a transaction for posting to the Master File will have the TIN and TIN/name control validated using the Taxpayer Index File (TIF) and the National Accounts Profile (NAP).

  4. Many IDRS Command Codes are available and each display different taxpayer data and serve different purposes.

  5. The Command Codes will not return the "Request Completed" response until the TIN and TIN/name control have been validated by the NAP on the Master File to which the transaction will attempt to post. Some of the IDRS Command Codes affected by the Online Entity System (OLE) validation require the entering of a TIN and Name Control matching an existing Master File. Examples of such IDRS Command Codes are:

    • AM424 - Request for Examination

    • FRM49 - Taxpayer Delinquent Return Notices and Investigations

    • FRM77/FRM77A - Miscellaneous Transactions Entry

    • ENREQ - Entity Changes

    • EOREQ - Exempt Organizations Entity Changes

    • REQ54 - IDRS DP Adjustment

    • CFINK – Centralized Authorization File

    • BMFOL - Provides research of nationwide entity and tax data posted to the Business Master File

    • ADD24/ADD48 - Credit Transfers

    • UPRES - Unpostable Correction

    • IRPOL - Inquiry of the Information Returns File

  6. System Messages Application to All Command Codes - If the communication lines to the NAP are not available, the message will be "CRS/NAP ACCESS NOT AVAILABLE" .

  7. If the NAP is not available, the message will be NATIONAL ENTITY FILE NOT AVAILABLE.

    Note:

    The above messages are general in nature.

  8. General Research Information - Research is required unless there is an obvious transcription error or the resolution procedures are specifically noted with the Unpostable. Input the appropriate transaction code to correct an obvious transcription error.

  9. Research Tools-Proper research is essential to ensure correct closure of Unpostable cases.

  10. Microfilm Replacement System (MRS) - MRS is an automated research system which eliminates most microfilm research done in Campuses and Area Offices.

  11. MRS is accessed through the use of CC MFTRA, via IDRS terminal. The most common requests are:

    • Entity - ("E" )-shows the entity data only

    • Tax Module specific requested MFT and/or Tax Period information shown only (e.g., MFT input only)

    • Complete - ("C" )-shows the entire account information.

    • Money Amount - ("A" ) shows all modules with payments for the specific money amount either credit (-) and/or debit (+).

  12. You may request a hard copy transcript for your research.

  13. Integrated Data Retrieval System (IDRS) - IDRS is a computer system with the capability to retrieve and update stored information of taxpayers accounts on master files. Research of IDRS is performed through the use of various command codes input via an IDRS terminal.

  14. Some of the most common Command Codes (CCs) used for research are:

    • BMFOL - research the Business Master File On-Line for entity and tax data information posted to the Master File.

    • BRTVU - access data, transcribed and computer generated, from business tax returns and accompanying schedules and forms.

    • DUPOL (Duplicate TIN on Line) - search for all files for a specific TIN.

    • ENMOD - display entity data for a specific TIN.

    • INOLE - research the National Account Profile (NAP) for verification of TIN/name control and primary name combinations.

    • NAMEB - (BMF) searches the Name Search Facility (NSF) data base using the first 10 characters of the last name (required) and the first 10 characters or the initial of the first name if entered, or for a corporation, the first 15 characters.

    • NAMEE - A nationwide search will be performed to match the data entered from the information in the Name Search Facility (NSF), and return the EIN's of possible matches.

    • NAMEI - (IMF) searches the Name Search Facility (NSF) data base using the first 10 characters of the last name if available. The first initial is recommended if the last name is less than 10 characters.

    • NAMES - A nationwide search will be performed to match the data entered from the information in the Name Search Facility (NSF), and return the SSNs of possible matches.

    • REINF - refund information for a specific SSN.

    • RTVUE - access data, transcribed and computer generated, from Form 1040 tax returns and accompanying schedules and forms.

    • SCFTR - to identify a Return in the Submission Processing campus that has not yet been processed.

    • SUMRY - aIl of the TXMOD's for a specific TIN on IDRS.

    • TRDBV - used to access/review returns.

    • TXMOD - display tax module data for a specific TIN.

    • UPTIN - display of all open and up to three months of closed unpostables for a specific TIN.

    • URINQ - to identify unidentified Remittances.

    • XSINQ - used to address the Excess Collection file. It displays one or more records on the (Excess Collection file) XSF, based on the data elements input. The XSF can be researched in three different ways: by amount of remittance, name control, or Document Locator Number (DLN).

  15. Command Code INTST computes the correct outstanding balance, including interest and failure to pay accruals, to the date specified in the input of the command code.

  16. Command Codes used to input an action to the taxpayer's account.

    • ADC/ADD 34, 24, 48, and 58-credit transfers

    • AMCLS-used to adjust (Increase and/or Decrease) taxpayer accounts through AIMS

    • FRM49-used to input 59X transactions

    • FRM77-used to input various transactions (e.g. TC 460/470/570)

    • LETER-generates the maximum formatting information on the LPAGE input screen, which is used to create and to generate an IDRS letter

    • REQ54-used to generate screen format ADJ54 which is used to adjust the taxpayers account

    • REQ77-used to generate screen format for FRM77

  17. Authorized Access-GUF users are authorized to access only those accounts required to accomplish their official duties. GUF users must not access their own or their spouse's account, the account of a friend, relative or coworker, or any account in which they have a personal financial interest.

    Note:

    Employees engaged in the unauthorized access or browsing of tax accounts are subject to disciplinary actions, including dismissal from employment. Moreover, federal officers and employees are subject to criminal prosecution for the willful unauthorized inspection of any return or return information. Conviction is punishable by a fine in any amount not exceeding $1,000, or imprisonment of not more than one year, or both, together with the cost of prosecution. Conviction will also result in the employee's dismissal from employment. I.R.C. 7213A.

  18. Protection of the GUF User Employee-It is essential that only properly authorized employees have access to Command Codes since the IDRS terminals can be used to change taxpayers accounts. It is equally important that employees be protected from other personnel using their identification since the only record of the employee making the change will be computer generated from the operator's log-on information.

  19. Proper use of CC's SINON and SINOF will provide protection to the employee. However, employees must properly safeguard their password in order to obtain the benefits of the system. Also the GUF CC's should be authorized only for employees requiring access to unpostable records to assign, close, suspend, display and/or review unpostable cases.

  20. Accessing the GUF via IDRS-The GUF is accessed by the Command Codes UPDIS, UPASG, UPCAS, UPBAT, UPTIN, UPRES, and UPREV once the employee has signed on IDRS using their IDRS password. Once signed on IDRS an employee may access the GUF, IDRS and/or MRS if these system command codes are in the employee's profile of authorized actions on the terminal.

  21. Case Assignment - All unpostable cases will be assigned on GUF in the following manner:

    1. Submission Processing Campus assigned-XX00000000

    2. Unit assigned-XXXXX00000

    3. Individual employee assigned-XXXXXXXXXX

    Note:

    X represents a specific number 0 (zero) through 9 (nine).

  22. Submission Processing Campus assigned cases can be closed by any employee having access to the Submission Processing Campus jurisdiction in their profile.

  23. Unit assigned cases can be closed by an employee carrying the same digits in the 3rd, 4th, and 5th positions of their employee number, and the 1st and 2nd position digits are within the Submission Processing Campus jurisdiction in their profile.

  24. Only the specific employee to whom the case is assigned may close individual assigned cases and MASS (batch) closures are not allowed.

Remittance Transaction Research (RTR) System

  1. RTR provides universal access to a consolidated database of remittance data and images generated at ISRP, RS-PCC, and Lockbox Bank processing sites. This system permits data/image storage for up to 7 years. It also provides immediate retrieval for images. Refer to IRM 3.5.10, Remittance Transaction Research (RTR) System .

  2. Requests for access to RTR are made via the automated 5081 system and must be approved by management. It is highly recommended that unpostable tax examiners access RTR for assistance in resolving unpostable conditions.

Trace Identification (ID) Number

  1. As of January 1, 2008, all credits/payments will be assigned a Trace Identification (ID) Number for tracking purposes. The Custodial Detail Data Base (CDDB) was established with the Electronic Federal Tax Payment System (EFTPS) payments January 1, 2006. Now the CDDB will track all payments that comprise a Deposit Ticket, balancing the transactions against the Deposit Ticket totals, which have been entered in the Interim Revenue Accounting Control System (IRACS) General Ledger. The Trace ID Number will allow all credits/payments to be identified and added to the CDDB.

  2. The format for the Trace ID is provided in the following table:

    Trace ID for Debit Voucher (first 14 characters)
    Parts Characters Definition
    Site ID NN SP Campus FLC or other Site ID
    System ID NN The values are identified as follows:
    01 - EFTPS
    02 - ISRP Payment Transactions
    05 - Lockbox Bank Transactions
    10 - SITLP Levy Payments
    15 - Receipt Control Manual Deposits
    20 - IRACS DCF Debit Voucher and DV
    25 - Accounting Deposit Ticket and (DV)
    35 - IDRS IA User Fee Sweep
    40 - Automated Insolvency Manual DT
    Deposit Date YYYYDDD Julian Date
    Seq Number NNN For each Deposit Date, begin with 001 and increment each additional Deposit by 1.
    Last field for Trace ID Number (6 characters)
    Transaction Seq Number NNNNNN or zero For each payment summarized in a Debit Voucher, beginning with 000001, sequentially increment the Transaction Seq Number.
  3. All payment deposits are assigned a 20 digit Trace ID number. When tax examiners process unpostable payment transactions, the Trace ID number may not be transcribed on the payment document. Unpostables is required to ensure that the Trace ID number is on all payments that are nullified using URC 1 or sent to Rejects using URC 8. This includes any payments that have to be renumbered or reprocessed. Tax Examiners must identify the Trace ID number and enter the Trace ID number on the document, even if a dummy document is created. The trace ID will not be viewable or correctable in GUF. The Trace ID number for a payment can be identified on Integrated Data Retrieval System (IDRS) using CC TXMOD. If the payment is from ISRP Remittance Processing System (RPS) or Lockbox, use RTR to find the Trace ID. Once the Trace ID is identified, it must be transcribed onto the payment document.

Unpostable Resolution Codes (URCs)

  1. The functions identified below can resolve unpostable cases assigned to their functional area by using the GUF command codes UPBAT or UPRES:

    • Unpostables

    • Entity Unpostable Team

    • Examination

    • Statute

    • Criminal Investigation

  2. Unpostable Resolution Codes are input using the GUF command codes UPBAT and UPRES to close unpostable transaction cases.

  3. Unpostable Resolution Code (URC) 0 - Allows the unpostable record to attempt to repost at Master File with no change.

    • No change is made to the transaction. Use Definer-Modifier "B" when it is necessary to bypass the National Account Profile (NAP) re-validation.

    • When resolving unpostable conditions with URC 0 entering remarks are optional.

    • Transaction re-attempts to post at Master File with no change.

    • URC 0 is valid for all Master Files.

  4. Unpostable Resolution Code (URC) 1 - Allows the transaction to be re-input with same DLN. Valid on all master files except Combined Annual Wage Reporting (CAWR) and Payer Master File (PMF). URC "1" removes the record from the Submission Processing Campus Unpostable Master File (SCUPMF). The record is not corrected at this time. Each unpostable record that is corrected with URC "1" is placed in "manual" status on the Submission Processing Campus Control File (SCCF). If the document is to be reinput take the following steps:

    1. Prepare Form 3893 and route to Batching for input. No further action is needed on the SCCF.

    2. Enter the appropriate Nullify Area Code and route document and Nullified Distribution List to the function that is responsible for the next action. See IRM 3.12.32, General Unpostables, for further information.

  5. Unpostable Resolution Code (URC) 2 - Allows the transaction to be deleted. Voids the unpostable transaction. The unpostable record is also removed from the Submission Processing Campus Unpostable Master File (SCUPMF). These transactions are no longer correctable once removed with URC 2. When URC 2 is input, the document is routed to the originator or designated area (if employee no longer in function) for reinput of their transaction or further determination if the transaction was necessary. An IDRS control base is created to the employee who input the original IDRS transaction in most instances, or to the area responsible for the next action. The following action is required when UP-RESOLUTION-CD URC 2 is input:

    1. A nullify area code is needed. If URC 2 is invalid, enter URC 1 or 8, as appropriate. Do not route deleted (voided) documents to Data Control.

    2. Enter remarks (Line 8 on UPRES) when closing an unpostable with URC 2. In the remarks area, state why the unpostable is being closed with URC 2. If remarks are not entered, the GUF system will not accept the correction and will display an error message. It is not necessary to include the employee number. URC 2 is valid on all Master Files.

  6. Unpostable Resolution Code (URC) 3 - is used by the GUF system for Auto-Closures of With Remittances (ISRP/RPS) documents due to a tax period change.

  7. Unpostable Resolution Code (URC) 5 - changes any combination of error delay code, name control, and name line for the Individual Master File (IMF) only. Not valid on any other master file. When resolving unpostable conditions with URC 5 entering remarks are optional.

  8. Unpostable Resolution Code (URC) 6 - Changes any combination of name control, name line, TIN, TIN type transaction codes, transaction date, MFT, tax period, plan number, plan period, Offset Trace Number (OTN), memo amount or XREF SSN, and any non-taxable BMF or EPMF return. URC 6 will also allow adding one computer condition code (CCC) and the spouse's SSN. URC 6 changes TIN, TIN type, name line or name control for PMF. URC 6 changes the MFT for BMF as long as the tax class is compatible (within the same tax class). Refer to the Processing Codes table below for commonly used tax classes. Use Definer Modifier "B" with URC 6 when it is necessary to bypass the National Account Profile (NAP) validation. When resolving unpostable conditions with a URC 6 entering remarks are optional. URC 6 is valid for all Master Files.

  9. Unpostable Resolution Code (URC) 8 - Transaction sent to Reject Register or Error Resolution System. Valid on all Master Files except CAWR and PMF.

  10. URC 8 (reject) "nullifies" (removes) the record from the Submission Processing Campus Unpostable Master File (SCUPMF). Not valid for CAWR and PMF

    Note:

    When URC 8 is input it can take 4 to 6 weeks for the unpostable to post to Master File.

    • These nullified records are not correctable at this time.

    • Use of URC 8 will cause the unpostable record to appear on the "reject file" as a rejected (unpostable) record for display on the reject register or Error Resolution System (ERS).

    • Certain rejected (URC 8) unpostable records may be deleted in the Reject function if the transaction should not be posted (e.g., duplicate transactions) or the rejected record may be renumbered and processed with the correct DLN.

    • The Reject function will take the necessary action to correct the "unpostable type reject" , including specific situations on correspondence, DLN renumbering, deleting bad (incorrect/duplicate) records, correcting data for specific fields and/or sections of the record, plus coordinating and/or routing of documents to other functions.

    • Use of URC 8 results in an automated update of the Submission Processing Campus Control File (SCCF) via GUF data.

    • Transactions that require renumbering should be rejected with URC 8, rather than 1, whenever permitted by GUF programs.

    • If URC 8 is invalid, enter URC 1 or 2 as appropriate.

    • Do not route rejected (URC 8) documents to any area EXCEPT the Rejects function. However instructions can be added for Rejects to forward the unpostable to another function once they have completed all corrections.

  11. Never use URC 8 on:

    1. Doc Code 47 or 54 (use URC 2)

      Note:

      Document Code 47 or 54 must be used by Collection, Examination, or Statute with a priority code in order to post adjustments (TC 290, 291, 298 or TC 299) to the Master File when certain module conditions exist. For additional information refer to Priority Codes in Section 8 of Document 6209, IRS Processing Codes and Information. Also, see Priority Codes in Exhibit 4.4.1-1 of IRM 4.4.1, AIMS Procedures and Processing Instructions - Introduction.

  12. URC 8Form 8749, Unpostable Action and Routing Slip or the 8 code slip - When using URC 8, Unpostables must attach a Form 8749, Unpostable Action and Routing Slip, to the return or document.

    1. Provide sufficient information to Rejects so they can work their case.

    2. Information should be all research history, especially on cases with missing documents, and instructions (e.g., reconstruct, resubmit, transfer, remake, etc.) to resolve the case. Follow specific instructions within this manual.

    3. When routing a document back to the originator, Unpostables should identify the originator and explain why the document was routed to the originator.

    4. Enter remarks on Line 8 of UPRES when closing an unpostable with URC 8. State what action needs to be taken by Rejects. If remarks are not entered, the system will not accept the correction and display an error message. Do not state "Closed to Rejects" . Remarks must state what action must be taken by Rejects.

  13. Unpostable Resolution Code (URC) A - Automatic correction of unpostable name control to the Master File name control. Valid on all Master Files for a limited number of UPCs such as 003 (CAWR), 152, 156 (IMF), 303 (BMF), or 803 (EPMF). URC A corrects the unpostable name control to the Master File name control. When resolving unpostable conditions with URC A entering remarks are optional. If UPCs 152 or 156, TCs must be 140, 150, or 430 with an Entity Code (EC) of 2 or 3.

  14. Unpostable Resolution Code (URC) B - Valid for Individual Master File (IMF) and BMF only. Special closure of open assigned cases by permission only from the National Office GUF Analyst.

    • Periodically-Any assigned BMF unpostable can be closed and treated as original input data. The system can close two unpostable codes (2 BMF) per input for specific cycles. The system will automatically generate "Special Closure" in the remarks field. A parameter card will need to be prepared designating the UPC and cycles. Only one UPC per card can be used. The card must have the current year and weeks 01–53 entered. The National Office determines when periodic closure runs should be made.

    • "CGEN" (Computer Generated) will be displayed in the employee number field on the appropriate listings.

  15. Unpostable Resolution Code (URC) C - Places or updates a case in suspense status. Valid on all master files.

  16. Unpostable Resolution Code (URC) D - Deletes (voids) a transaction and is valid for all master files.

    • URC D removes the record from the SCUPMF.

    • These records are not corrected for an attempted re-posting to master file.

    • For URC D, the document is voided and no further action is necessary.

    • URC D will not create an IDRS control base.

    • A nullify definer code is not needed for URC D.

    • Remarks (line 8 of UPRES) must always be entered when closing an unpostable with URC D. If remarks are not entered, the system will not accept the correction and will display an error message. Remarks are required on CC UPRES with URC D and must state why the case is being voided.

    • Do not include the employee number.

    • Documents can be destroyed, as necessary.

  17. Unpostable Resolution Code (URC) S - Places or updates a case in suspense status.

    Note:

    URC 3 and URC B are used for special closures and are not input by Unpostable Tax Examiners.

  18. The commonly used tax class information located in the Processing Codes table below is used when it is necessary to input URC 6:

    MFT Code Doc Code Form Tax Class
    02 10, 11 1120 3
    02 09 1120A 3
    14 49 944 1
    02 03 1120-C 3
    01 41 941 1
    02 16 1120S 3, 6
    02 20 1120POL 3
    05 44 1041 2
    06 65, 67 1065 2
    06 67, 69 1065 MeF 2
    07 60 1066 3
    10 40 940 8
    11 43 943 1
    13, 51, 55 54 8278 2, 3
    14 49 944/PR/SS 1
    15 23 8752 2
    16 44 945 1
    34 93 990T 3
    36 81 1041A 4
    37 83 5227 (OLD 1041PF) 4
    44 91 990PF 4
    50 71 4720 4
    51 09 709 5
    52 06 706 5
    67 09, 92 990EZ 4
    67 90, 93 990 4
    77 29 706GS(T) 5
    78 59 706GS(D) 5

    Note:

    For additional tax class information see Document 6209, IRS Processing Codes and Information.

Unpostable Command Codes

  1. CC UPRES - The following table provides the URC validity checks for CC UPRES, including the valid Master Files:

    BMF CAWR PMF
    A A  
    B - -
    D D D
    0 0 0
    1 1 -
    2 2 2
    6 6 6
    8 - -
    1. These Master File and URC combinations are subject to additional validity checks for each URC depending on the type of BMF, PMF, or CAWR record and the unpostable category criteria.

    2. CC-UPRES must meet all the validity checks for input of the URC actions as CC definers and CC definer modifiers. See the general command code information for the CC-UPRES validity criteria in IRM 3.12.32, General Unpostables.

  2. CC UPBAT - In addition to CC UPRES for individual closings, CC UPBAT is used for multiple cases being resolved with the same URC. However, the CC UPBAT URC actions are not directly updated. They are generated into each resolved record during end-of-day (EOD) processing. Each closed batch record has the generated URC applied to the appropriate record via a definer code if all the CC validity checks are met, and the CC request does not meet the unpostable reject criteria.

    1. URC D, 0, 1, 2 or 8 are valid for CC UPBAT batch closures.

    2. CC-UPBAT URC batch resolution actions will only validate for cases with a Submission Processing Campus or "unit" type employee number during End of Day processing. Cases assigned to an INDIVIDUAL employee number will be rejected and appear on the Rejected Activity Listing.

    3. If URC D, 1, 2, or 8 is used and remarks are not entered, the GUF system will not accept the correction and an error message will display.

    4. Always enter a Nullify Area Code with URC 1, 2 or 8 to indicate the function that will resolve the case. See IRM 3.12.279.22, Nullification Information, for additional information on nullification codes.

      Note:

      The system will not accept previously input remarks on URC 1, D or 8 closures. Enter a "/" (slash) at the end of the remarks field if previous remarks are still valid with unpostable closing. The IDRS employee number is not needed in the remarks section. The employee number will automatically print on the Nullified Listing from the URC D or 2 closure.

Nullification Information

  1. A nullify area code MUST BE entered to identify the receiving area for the closed unpostables when closing an unpostable with URC 1, 2, or 8,

  2. See IRM 3.12.32, General Unpostables, for information on Nullification Codes.

Modernized e-File (MeF)

  1. Modernized e-File (MeF) receives and processes e-file returns in an internet environment. Many returns are received through the Registered User Portal (RUP) using a component called the Internet Filing Application (IFA).

  2. IRM 3.42.4, IRS e-file for Business Tax Returns, provides a consolidated source for researching information regarding the Business e-file Programs and E-Payment Product Options. See IRM 3.42.4, IRS e-file for Business Tax Returns, for a complete list of BMF forms and documents.

  3. MeF provides for real time processing of acknowledgements, streamlined error detection, standardization of business rules and requirements across form types, capability to attach PDF files, and capability for IRS employees to view MeF return data through the Employee User Portal (EUP) and also the Business Objects Server.

Form 4251, Return Charge Outs

  1. Form 4251 Return Charge Out, GENERATION CRITERIA - The Generalized Unpostable Framework (GUF) automatically generates Form 4251, Return Charge Out, for unpostable cases requiring the return or document (or information from these records) to resolve the unpostable condition. Form 4251, Return Charge Out, is also generated for certain auto-closed unpostable records that may require follow-up action by the originator.

  2. Form 4251, Return Charge Out, generates for the following GUF Categories:

    • A1

    • A2

    • B1

    • B2

    • B3

    • B4

    • B5

    • B6

    • C1

    • C2

    • C3

    • C5

    • D1

    • D3

    • E1

    • E2

    • E3

    • F1

    • F3

    • G1

    • I1

    • I2

    • L1

    • L5

    • L7

    • R1

    • V1

    • W3

    • W5

    • Y2

    • Z1

  3. Form 4251, Return Charge Out, does not generate for the following GUF Categories:

    • L3

    • P1

    • V3

    • V5

    • V8

    • W1 or

    • W5 with matching V1 cases

  4. Primary Requests - The Form 4251, Return Charge Out, must be given to the tax examiner at the time of the Individual case assignment. Before initiating any additional request for a document the tax examiner assigned to the unpostable case must review the document locator number (DLN) to determine the method used to file the document. Did the taxpayer file the return by paper or electronically? The Tax Return Database (TRDB) is the official repository of record for all electronically filed tax returns. Electronic returns can be identified by the first two digits (File Location Code or Campus Code) of the unique DLN assigned to each Campus as follows:

    CAMPUS FLC BLOCK TYPE
    Andover 14, 16 000-999 Domestic
    Atlanta 65 000-999 Domestic
    Austin 75, 76 000-999 Domestic
    20 500-999 International
    21 500-999 U.S. Possession
    Brookhaven 22 000-999 Domestic
    Cincinnati 26, 27, 35, 38 000-999 Domestic
    Fresno 80, 90, 99 000-999 Domestic
    Kansas City 30, 32, 43, 70, 79 000-999 Domestic
    Enterprise Computing Center at Memphis (ECC-MEM) 64, 72 000-999 Domestic
    Ogden 88, 92, 93 000-999 Domestic
    60 500-999 International
    78 500-999 U.S. Possession
    Philadelphia 30, 32, 52 000-999 Domestic
    66 500-999 U.S. Possession
    98 500-999 International
  5. Command Code (CC) TRDBV is used to gain read only access to tax return data stored on TRDB. See IRM 2.3.73, Command Codes TRDBV, TRERS, TRPRT, and R8453.

  6. If the document was filed by paper or electronically, attempt to correct the unpostable by using the data on the Form 4251, Return Charge-Out, and research using IDRS Command Codes, or any available listings. If the tax examiner cannot resolve the unpostable, the tax examiner must make additional requests for documents filed by paper for the unpostable return or document using the following methods:

    • If the document has already been retired to the Federal Records Center (FRC), Files will route the Form 4251, Return Charge-Out, to the FRC.

    • If the case can be closed using Microfilm Replacement Systems (MRS), CFOL and/or IDRS a second request is not necessary.

    • If cases are closed without the document enter "CLSD-NO DOC" in the remarks field.

  7. Input CC UPRES with URC 2 to void to the originator all unpostable cases with the exception of revenue receipts, bankruptcy and TC 150's that cannot be resolved by the primary request. Input ″Doc not available″ in remarks. No other action is required.

  8. Statute Period Returns - If Unpostables cannot secure or locate a return or document within 10 workdays of the Assessment (ASED), the following procedures should be followed:

    1. Return-prepare a "dummy" return and forward to Statutes. Statutes can assist in preparing the "dummy" return.

    2. Document-Forward a copy of TXMOD, UPRES, and Form 4251, Return Charge Out, to Statutes for a quick/prompt assessment.

  9. Criminal Investigation case-If the document can not be located and is a Criminal Investigation (CI) case (Category A1 or A2), CI will determine the necessary case resolution after all attempts have failed to locate the unpostable record. Category A1 records may be closed to Rejects if so determined by CI.

  10. Doc Code 47- If the unpostable record is a Doc. Code 47, research Microfilm Replacement Systems (MRS) and IDRS.

    IF AND THEN
    The unpostable case still cannot be closed, Document cannot be located, Input a second request for the missing document. Refer to IRM 2.3.17, Command Code ESTABD, for procedures for requesting documents.
    The document (excluding Bankruptcy) is not found after second request, It is required to resolve the case, Request the entire block from Files. This will determine whether the record was misfiled.
    The document still can not be located,   Research Microfilm Replacement Systems (MRS) and IDRS again.
  11. If a bankruptcy (GUF category Z1) case and document is unavailable, process the case per the Category Z1 procedures in IRM 3.12.279.110, UPC 322 RC 1 and 2.

  12. Secondary Requests - A second request will be made by the tax examiner if the document cannot be located in Files or the FRC. Take the following action:

    1. Input CC UPCAS, with definer D and definer-modifier 2 to reflect action taken to obtain the missing document.

      Note:

      The unpostable suspense status (status code and status date) and "remarks" will be updated.

    2. Initiate the second request within 15 work days (21 calendar days) of the INDIVIDUAL Case assignment.

    3. If the unpostable record is a return (TC 150) check for posted re-filed DLN (Doc Code 47 or 54). If a re-filed DLN is identified, request this DLN using CC ESTAB. The return should be attached.

  13. When a BMF or PMF return or document still cannot be located in Files after a second request, or the document is charged-out and it is required for correct case closure, initiate a third request.

  14. Third Request of a Document - A third request is made to obtain the document after 15 work days (21 calendar days) from the second request. Input CC UPCAS with definer D and definer-modifier 3 to reflect action taken to obtain the missing document.

  15. Input CC ESTABDO to request the document before making a fourth request. If the document is still not available, request the block using CC ESTABDB to conduct a search of the block for the document.

  16. Fourth Request - If other than original return or extension of time to file (TC 460 or TC 620), prepare a dummy document. Input a fourth (4th) request using CC UPCAS definer code D and definer modifier code 4. Route the "dummy" document to Rejects.

    1. Input FOURTH REQUEST-SPECIAL SEARCH and the employee number in the remarks area.

    2. Prepare and attach a Form 8749, Unpostable Routing Slip, to original Form 4251, Return Charge Out, notating document can not be located.

      Note:

      Attach the prepared Form 8749 to the second or third request if the first request is not available.

    3. Attach all background research information (copy of UPCAS, unpostable listing highlighting case or local use research form, old charge-outs) and correction data, if possible, to the Form 4251, Return Charge Out, and Unpostable Routing Slip.

    4. GUF will automatically close the case to Rejects using URC 8.

  17. Do not prepare a "dummy" return or document when routing to Rejects except for document codes 17,18 19, 24, 34, 45, 48, 58, 70 or 76.

  18. Status Check - Check if the module/account status has changed since the unpostable record was issued. All IDRS research information must be obtained prior to closing and routing a case to the preparer since this data will eventually be "dropped" .

  19. Procedures for Missing Documents - After all normal attempts to resolve the unpostable have been evaluated use the following conditions to resolve the unpostable:

    If Then
    The Document Code is 17, (except TC 460 non-remittance), 18, 19, 70 or 76 The Unpostable unit will research for correct account where payment should be applied. If found, take action to post correctly. If payment must be renumbered, URC 8 and prepare "dummy" Form 3244, Payment Posting Voucher. If unable to locate correct module, URC 8 and prepare "dummy" Form 3244, Payment Posting Voucher, to be routed to Unidentified unit.
    The Document Code is 17 (TC 460 non-remittance) The Unpostable unit will research for corrective action. If unpostable cannot be corrected close with URC 8, instruct Rejects to cancel DLN, and route to Files.
    The Document Code is 24, 48 or 58 The Unpostable unit will research to determine where debit or credit should post. If corrective action cannot be made, URC 6 or 8 to reverse the transaction and notify the originator.
    The Document Code is 34 (Debit side) The Unpostable unit will research for corrective action. If unpostable cannot be corrected close with URC 2, and route to originator.
    The Document Code is 34 (Credit side) The Unpostable unit will research for corrective action. If credit cannot be resolved, close with URC 2 and route to originator.
    The Document Code is 45 The Unpostable unit will research to determine where debit or credit should post. If corrective action cannot be made, close with URC 8. Prepare Form 3245, Payment Posting Voucher, for credit unpostable and transfer to Unidentified Account. Debit should be transferred to the 1510 Account.
    The Document Code is 52 The Unpostable unit will research for corrective action. If unpostable cannot be corrected close with URC 2, and route to originator.
    The Document Code is 87 (Debit) The Unpostable unit will research to determine where debit should post. If unable to correct, close with URC 8 so Rejects can route case to Accounting for re-input or write-off.

Form 8749 Unpostable Action and Routing Slip

  1. The Form 8749, Unpostable Action and Routing Slip, must be used anytime a case is routed to another area.

  2. All appropriate research will be performed prior to routing the case and all appropriate boxes must be filled out.

GUF Organization Function Program (OFP) Information

  1. GUF OFP codes are used for reporting work closed by mass (large group of unpostables closed at one time), Files, or individual tax examiners.

  2. GUF OFP codes are used in conjunction with the weekly WPC (Work Planning and Control) reporting system.

  3. The following represent the codes to be used for reporting the work completed:

  4. Unpostable Function 36XXX–29X and 33XXX–29X - BMF/EO Program

    • Individual (except UPC 305 RC 4)-15100

    • Files-15110, optional

    • MASS-15120

    • UPC 305 RC 4-15160

    • International BMF Unpostables -15150

  5. CAWR (all)-392X0

  6. CAF (BMF)-01060

  7. PMF 4462X

  8. Entity Function 34XXX–390 - BMF-10000

  9. Examination Function BMF 82XXX–290–00000

  10. OTHER OFP Codes - Machine Down Time-XXXXX–990–59310

  11. Unpostable Clerical Time-36XXX–790–00000

  12. GUF 53–43 - WEEKLY RESOURCE AND INVENTORY REPORT FOR O/F/P is a report that provides volumes used with the correlating OFP codes. Refer to the appropriate section in IRM 3.12.32, General Unpostables.

  13. Additional OFP Codes - For additional information regarding OFP codes, refer to IRM 25.8.1, OFP Codes Overview.

Correction of Unpostable Returns and Documents

  1. All areas working unpostables must make the necessary corrections on the return or document which includes correcting the Employer Identification Number and tax period.

  2. If corrections are made to Document Code 51 route to Revenue Accounting for reinput.

Duplicate Documents or Multiple Canceled DLNs

  1. If it is determined that there are multiple, possible duplicate, unpostable returns, then follow local procedures for suspending and associating unpostable cases. .

  2. When it can be determined that the unpostable document is a "true" duplicate and specific instructions for handling duplicate documents are not present, the following action must be taken:

    IF THEN
    The unpostable is a remittance document, URC 8 and forward to the Reject function. Prepare Form 3244, Payment Posting Voucher, and Form 8749, Unpostable Action and Routing Slip, with the notation "Duplicate DOC" , and attach to the front of the return.
    The unpostable document is a non remittance return, Release using URC 8. Request Rejects forward the document to files.
    The document is a true duplicate and the unpostable is an extension, Release using URC D.
    True duplicate return, Input URC 8 and request Rejects cancel the DLN .
  3. Unpostable Document Cancellation Procedures - If the unpostable document is canceled (excluding tax returns, payments, or extension),

    1. Staple form securely behind the return.

    2. "Remarks" must indicate the reason the action was taken.

  4. If the unpostable document is to be canceled and is NOT attached behind the return or routed to the initiator, destroy the document.

  5. If the unpostable return is a duplicate (paper) return to a previously filed return on e-File or MeF, take the necessary action to URC 8 and request to cancel the DLN.

  6. If the posted return was filed more than seven years ago, DO NOT request the unpostable return to be associated with it. Request the return to be re-filed in its original block after the DLN is canceled.

  7. Positive Identification of True Duplicate - If "positive" identification cannot be made to a "true" duplicate (especially for returns), treat as an original. Ensure that proper research has been done to avoid erroneous postings, duplicate credits or payments with return (TC 610).

  8. Document DLN Matches Unpostable DLN - Before correcting, ensure the DLN on the document matches the DLN of the unpostable. If the document contains two DLNs and both appear to be "live" (not crossed through or canceled), contact your supervisor or lead to research.

Correspondence Guidelines and Unprocessable Information and Procedures

  1. This subsection contains information for taxpayer contact, missing signatures, undeliverable mail, and processable/unprocessable Returns.

  2. Section 3705(a), IRS Employee Contacts - This subsection contains information on the Restructuring and Reform Act of 1998, Section 3705, and provides identification requirements for all IRS employees working tax related matters.

    Caution:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3, Required Taxpayer Authentication. Also, before leaving any messages on a taxpayers answering machine, review IRM 11.3.2.7.1, Leaving Information on Answering Machines/Voice Mail. Fax procedures contained in IRM 11.3.1.11, Facsimile Transmission of Tax Information, must be reviewed prior to faxing confidential information to the taxpayer.

    1. IRS employees are required to give their name and unique identification number during taxpayer telephone, face to face and written contact. In addition, a telephone number is required on all taxpayer correspondence.

    2. This will provide taxpayers with enough information to identify an IRS employee who has previously assisted them with their tax related matters.

  3. All IRS employees, in the Campus, National or Area Office who communicate by telephone, through correspondence or face to face with taxpayers or their personal representatives on tax-related matters are required to provide (at a minimum) the following information:

    1. With Telephone Contact provide your title (e.g., Mr., Mrs., Ms., Miss), last name and your badge identification (ID Card) number.

    2. With Face to Face Contact provide your title and last name during the conversation and your ID Card number.

  4. When contacting the taxpayer through Correspondence, all correspondence must contain the telephone number where the taxpayer's question(s) can be answered. In addition to your title and last name, provide your IDRS, letter system or ID Card (badge) number.

    1. The IDRS numbers and numbers for some other letter systems are automatically generated. If it is not generated or a handwritten note is prepared, the ID Card (badge) number must be used.

    2. Employees who have toll-free telephone numbers may also provide their location for identification purposes. Fax and e-mail to taxpayers on tax related matters are considered manually generated correspondence and must include the above required information.

    3. Correspondence, whether sent directly to the taxpayer or to the taxpayer's personal representative, must contain the required information.

    4. When a taxpayer insists on speaking with a specific employee who previously handled their inquiry or request, or complains about the level of service previously provided, every attempt should be made to resolve the taxpayer's inquiry. If the issue cannot be resolved, the employee should refer the inquiry using established procedures to his or her manager.

    5. Correspondex letters will require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any taxpayer questions regarding the correspondence or the employee is asking for additional case-related information.

    6. Otherwise, if the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

    7. Secretaries, receptionists or other people who answer the telephone in functional offices need to identify themselves should provide the ID Card (badge) number only if they are answering telephones which are routinely used to provide tax or account information, or if they provide a substantive response to the taxpayer's inquiry.

    8. It is not necessary to repeat the ID Card (badge) number on a subsequent contact, when the nature of an employee's work involves multiple contacts with the same taxpayer, and the employee has given the taxpayer (either telephone or in-person) their ID Card (badge) number on the first contact.

  5. The Taxpayer Advocate Service (TAS) assists taxpayers who are experiencing economic burdens and/or unreasonable delays in resolving tax problems with the IRS. See IRM 3.12.279.14, Taxpayer Advocate Service (TAS) Guidelines, for more information on determining whether TAS case criteria applies and when to prepare and route Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order to TAS.

  6. Taxpayer Contact - Unpostables can utilize any means to contact a taxpayer in order to expedite the resolution of an unpostable.

  7. Do Not Correspond - If there is an indication that previous correspondence was issued for the same item (e.g., missing signature).

  8. When the notation "Substitute for Return Prepared by IRS " ,

  9. The return is prepared under the authority of Section 6020(b) (Prompt Assessment).

  10. The return is an Examination case requiring an adjustment.

    1. "Copy secured by Examination" is shown on the return.

    2. Form 3198, Special Handling Notice for Examination Case Processing, is attached.

    3. Examination work papers are attached.

    4. Copy of Form 5546, Examination Return Charge-Out Sheet, is attached.

  11. Contact to Resolve an Unpostable - When contact is necessary to resolve an unpostable condition, use one of the following methods. Do not reject unpostable to have the Reject function initiate correspondence and suspend unless otherwise noted in IRM 3.12.279.

  12. C-Letters (IDRS) - Input CC LETER and LPAGE in accordance with IRM 2.4.6, Command Codes LETER, LPAGE, LPAGD, LETUP, LETED, LLIST, and LREVW. Correspondex letters are located at http://serp.enterprise.irs.gov/databases/forms-ltrs-pubs.dr/crxltrs.dr/crx_letters.toc.htm

    1. All correspondence letters must include a cycle sequence number and/or the DLN of the unpostable.

    2. Maintain a suspense file in Unpostables to control subsequent responses. (Generally 30 days from the date the letter was input; 70 days for ACI).

    3. If the reply is received after the suspense period but before the case is closed, resolve the unpostable based upon the taxpayer's response.

    4. If the reply is received after the case is closed and contains information which could prevent subsequent unpostables, route replies to ECU, Accounts Management, Examination, etc. Otherwise, forward for association with unpostable document in Files.

    5. If using Integrated Data Retrieval System (IDRS) prints to attach something to a document in files, please type the word "ATTACHMENT" on the IDRS screen before printing. After printing, highlight the word "ATTACHMENT" along with the DLN receiving the attachment.

  13. Telephone contact may be used.

    1. Follow-up all telephone contacts with a letter to confirm the conversation and/or to obtain the taxpayer's signature.

    2. Telephone contact is encouraged whenever the taxpayer has provided a telephone number on the tax return or in response to previous correspondence.

    3. If the taxpayer has marked the "Third Party Designee" or "Paid Preparer Check Box" and has provided a phone number, telephone contact may be made.

  14. Resolving Correspondence - On an expedite basis, the Unpostable function should resolve any correspondence received from any other Submission Processing Campus area or Area Office.

  15. Any local letters should inform the taxpayer to include all necessary signatures, identifying numbers, schedules or attachments.

  16. Missing Signatures on BMF Unpostable Liability Returns - If the signature is missing on the return and there is no indication of previous correspondence, correspond with the taxpayer. For BMF returns, use Letter 143C. If refund return, suspend the case 30 days. UPC 381 RC 2 are zero liability return.

    Note:

    When previous correspondence is indicated by another area, such as a notation of 211 or 225 on the document, a correspondence paper, Command Code (CC) ENMOD history, if a Computer Condition Code (CCC) 3 or CCC X, money to refund, request Rejects to input CCCs.

  17. If other than a refund return:

    1. Notate on the return the date the letter was sent and continue processing;

    2. When the reply is received, take the necessary action to associate the reply with the original return.

  18. For incomplete, or undeliverable returns, release with URC 8 to Rejects and notate the reason.

  19. If the signature is not provided by the taxpayer, or response is not received within 30 days,

    1. Annotate "missing TP signature" on the return and CC UPRES.

    2. Release using URC 8 and ask Rejects to enter CCC "X" .

    3. Make the necessary corrections to resolve the unpostable condition.

    4. For incomplete, undeliverable or no reply; release using URC 8 and ask Rejects to enter CCC "X" .

  20. BMF Correspondence Procedures - When the correspondence (signature) is received, ensure action is taken to correct the Return Processing Date (RPD). This will prevent the paying of interest payments on the refund. If the reply was initiated by another area (i.e., Entity Control, Accounts Management, Exam) route to the appropriate area for corrective action.

  21. When a corrected Employer Identification Number (EIN) is different from the EIN provided on the return perform all necessary research to determine if the EIN provided is correct using CC NAMEB or NAMEE.

  22. If the corrected EIN is different from what the filer provided on the return or extension, correspond using Letter 147C to notify the filer of their correct EIN. Use the address on the Master File for the correspondence.

    Exception:

    Do not send a Letter 147C for any of the following reasons:

    1. If the MFT is 17, 51, 52, 68, 76, 77 or 78 when the taxpayer is using their SSN.

    2. If the EIN is missing digits, transposed digits, or only one or two digits are incorrect.

    3. If the EIN has merged to another number.

    4. If the EIN was recently established (TC 000) within six to eight cycles, or a Letter 147C, Letter 3910C, or Letter 3875C was previously issued.

    Note:

    When processing Form 7004, all letters will be sent to the mailing address on Master File. Extension requests are usually filed by third parties that tend to enter their own address on the Form 7004.

Undeliverable Mail

  1. A taxpayer's mailing address will not be updated unless clear indication of a change from the taxpayer or his representative is received.

    Exception:

    Resolving undeliverable mail.

    • When processing forms/documents that have an “address change box”, Master File will be updated only if the "address change box" has been marked by the taxpayer.

    • Master File will not be updated with the address from a form that does not have an “address change box” unless the taxpayer has given clear instructions to update his address.

  2. Undeliverable mail will often have a yellow sticker from the United States Postal Service (USPS) showing the taxpayer’s new address. Research to ensure the yellow sticker address is not already posted/pending. If the address has not been updated, input TC 014 and re-send the Unpostable generated Correspondence letter to the taxpayer’s new address.

  3. Unpostables must make every effort to locate good addresses for those taxpayers whose Master File address is undeliverable.

  4. Research undeliverable letters for operational errors, incomplete or incorrect name and erroneous or extraneous data. If found, correct and re-mail letter.

  5. Check other schedules or documents attached to the return to see if there are other addresses at which the taxpayer may be contacted. If there are, reissue correspondence.

  6. For additional information on undeliverable mail refer to IRM 3.13.2.4, Undeliverable Mail and Notices.

Correspondence Imaging System (CIS) Returns

  1. The Correspondence Imaging System (CIS) is an inventory system for scanning all Accounts Management (AM) Adjustments receipts into digital images and working the cases from those images.

  2. "CIS" returns are identified with "CIS Image. Do not correspond for Signature" stamped below the signature line or "CIS" annotated on the front of the return.

  3. Follow the instructions below for processing "CIS" returns:

    IF AND THEN
    The CIS return has a Form 13596 or Form 3893 attached,

    Note:

    If there is an indication on the return that correspondence has been sent (e.g., CCC 3 is edited on the return), do not route return to AM. Continue processing return.

    The return is not complete (e.g., schedules or forms), Release using URC 8 and request Rejects cancel the DLN and forward to Accounts Management, to secure missing information.

    Note:

    Do not correspond for missing information on CIS reprocessable/reinput returns.

    The "CIS" return does not have a Form 13596, Reprocessing Returns, or Form 3893, Re-Entry Document Control, attached. The return is not complete (e.g., schedules or forms), Follow normal correspondence procedures.

Processable/Unprocessable Returns

  1. IRC 6611 (g) prohibits the payment of interest until a return is in processable form. If the return is not in processable form, suspend the 45-day interest-free period. The return is not considered in processable form until all the required information, correspondence, or supporting documentation is received.

  2. A taxpayer is not considered to have filed a tax return (which begins the period of limitations on assessment) until the taxpayer files a valid tax return. See IRM 25.6.1.6.14, Criteria for Establishing a Statute of Limitations Period, for the criteria to determine whether a return is valid.

  3. Caution should be taken to determine when a return was filed or became processable since those dates are considered for purposes of computing allowable interest. See item 5 below.

  4. The Microfilm Replacement System (MRS) is an automated research system that eliminates most microfilm research. Master File (MF) has the capability to maintain and display two dates on MRS or MF. The first date will be the "received date" and the second the "processable received date." The "received date" will be used to determine the statute dates while the "processable received date" will be used to compute interest on overpayments.

  5. If the refund check date is more than 45 days after the later of the (1) return due date (RDD), (2) Return Received Date, or (3) Return Processable Date/Correspondence Received Date, determine the credit interest period:

    Determining the "From" Date
    IF the taxpayer... And... Then allow interest from the later of...
    Does not have an extension Filed the Return by the original due date The original due date, the payment date, or the Correspondence Received Date (CRD) (if after the due date)
    Filed the Return after the original due date The late return received date, the payment received date, or the CRD (if present)
    Has an extension Filed the return by the extended due date The original due date, the payment date, or the CRD (if after the extension date)
    Filed the return after the extended due date The late return received date, the payment received date, or the CRD (if present)
    Determining Payment Dates
    If the payment is a ... Then the payment date is ...
    Prepaid or timely credit, e.g., estimated tax payment, withholding, or a payment before the due date The original return due date
    Subsequent payment (made after the due date) The payment received date

    Reminder:

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

    Determining the "To" Date
    If the overpayment is... Then...
    Initiated by the taxpayer The interest "To" date is one business day past the date of the CC RFUNDR date (two days for night shift)
    Initiated by the IRS.
    Examples include:
    • EIC eligibility,

    • Math error decrease in tax, and

    • Math error increase in refundable credits

    The portion of the overpayment initiated by the Service is subject to the provisions of IRC Section 6611(e)(3). (See IRM 20.2.4.7.5.5, 45-Day Rule) Go to one business day past the date of the CC RFUNDR date (two days for night shift), and subtract 45 days to derive the interest "To" date.

    Note:

    The Refund Date cannot be a Saturday, Sunday, or legal holiday.

  6. This applies to all types of tax returns and windfall profit tax returns.

  7. Unpostable Correspondence Return Requirements - If a timely filed return is being processed enter the return due date as the return received date.

  8. Late replies (correspondence was received after return due date) - enter Return Processing Date (RPD) in the following priority order:

    1. Postmark Date on reply envelope or designated Private Delivery Service (PDS) if the reply was mailed before the return due date.

    2. IRS Date Stamp (date the reply was received).

    3. Current Date.

    Note:

    When corresponding on an unpostable return that is held in suspense and the reply is received after the return due date, edit the RPD also known as the Correspondence Received Date (CRD) in the lower left hand corner of the return or edit sheet if the edit sheet is used on the applicable return, and URC 8 to request Rejects enter the CRD. If a reply is not received ensure that a Computer Condition Code (CCC) 3 is entered into the record. The CCC 3 suppresses credit interest from generating at Master File.

  9. Late replies on Modernized E-file (MeF) after the return has been canceled - Associating documents to an e-filed return. If document correspondence needs to be associated with an e-filed return, a refile DLN must be created. Attach Form 12773, BMF ADJ54 Adjustment Format, to each e-file/MeF reply and complete with the following information:

    • Employee IDRS number,

    • Input Date,

    • TC 290,

    • Amount ".00" ,

    • TIN,

    • Tax Period,

    • Block,

    • Remarks "Attachment only" , and

    • Sequence Number. Sequence numbers for input must begin with "1" through "100" and remain in order.

  10. Input TC 290 on IDRS to generate a refile DLN.

    Note:

    The generated DLN is used to route the correspondence to files.

    1. Access CC TXMODA, overlay with CC REQ54, Xmit. This will bring up the CC ADJ54 screen.

    2. Input the sequence number created from the BMF ADJ54,

    3. BLK> using information provided below.

    4. IRS-RCVD-DT>*

    5. TC 290

    6. AMT>.00

    7. Hold-CD>3

    8. SOURCE-DOCUMENT-ATTACHED>sd-

    9. REMARKS>Attachment only.

  11. Use the following blocking series:

    MFT THEN
    02 15
    05 17
    06 17
    10 15
    44 15
    67 10
  12. Monitor the TC 290 until posted. Prepare a routing form and send to Files within 3 days of posting.

Determining the IRS Received Date

  1. The date a document is received in the Campus or an IRS office that can accept tax returns is the date stamped as the IRS Received Date. All mail received from 12:00 a.m. to 11:59 p.m., seven days a week, including Saturdays, Sundays, and legal holidays is date stamped with the actual date received. See IRM 3.10.72.6, IRS Received Date.

  2. Refer to the following IRM Exhibits to determine date stamping requirements for the various document types:

    1. See Exhibit 3.10.72-7 - Sorting Individual returns and Documents (AUSPC, FSPC and KCSPC in IRM 3.10.72, Campus Mail and Work Control, Receiving, Extracting, and Sorting.)

    2. Exhibit 3.10.72-8- Sorting Business returns and Documents (CSPC and OSPC) in IRM 3.10.72, Campus Mail and Work Control, Receiving, Extracting, and Sorting.)

    3. Exhibit 3.10.72-9 -Sorting Non-Master File returns and Documents (CSPC) in IRM 3.10.72, Campus Mail and Work Control, Receiving, Extracting, and Sorting)

  3. The received date may or may not be stamped or typed on the face of the return.

  4. An IRS received date must be established on a return or document if the face of the return is not date stamped or does not contain a handwritten entry.

  5. Determine the received date by the priority listed below:

    1. IRS date stamp-see the subsections on Date Stamping in IRM 3.10.72, Receiving, Extracting, and Sorting, and IRM 3.10.73, Batching and Numbering.

      Note:

      The stamped received date will be the actual date. What's shown on IDRS may be the due date.

    2. US Postal Service envelope postmark date-see the subsection on "How to Determine Postmark Dates" in IRM 3.10.72.6, IRS Received Date.

      Note:

      If both U.S. Postal Service and private meter marks are present, use the U.S. Postal Service marks.

    3. Private Delivery Services-see the subsection on "Procedures for Private Delivery Services (PDS)" in IRM 3.10.72.6.

    4. Signature date-(only within current year)

    5. Julian Date (numeric date of the year) in the DLN.

  6. For additional information on how to determine the U. S. Postmark, Private Delivery Service (PDS), or received date refer to IRM 3.10.72, Receiving, Extracting, and Sorting and IRM 3.10.73, Batching and Numbering.

    Note:

    Late replies initiated by another area (i.e., Entity, Accounts Management, Exam) should be routed to the appropriate area to correct the Return's processing date. Do not forward to Files.

  7. See IRM 3.10.72.6 for additional information on determining the IRS received date.

Facsimile (FAX) Guidelines

  1. Background - The IRS is involved in a significant number of taxpayer contacts to perfect returns during the filing process, to resolve issues identified in post-filing, and to secure delinquent returns. While the primary communication methods for these contacts have traditionally been mail, phone or personal interviews, the IRS is always seeking new ways of communicating with taxpayers that will reduce taxpayer burden and improve organizational efficiency. Based on requests from stakeholders, as well as an increased use of facsimile (fax) including Enterprise Electronic Facsimile (EEFAX) equipment in many operations by IRS, a cross- divisional group was assembled to develop, and recently reassembled to revise, a Service-wide policy for the acceptance of faxes in routine tax administration operations.

  2. The fax guidelines, as stated below, apply only to taxpayers and their representatives who are engaged in an on-going contact with the IRS, such as an examination or resolving questions about tax returns that are being processed. The fax can only take place after a discussion with the IRS employee who is requesting the information.

  3. The IRS has adopted the following guidance on the acceptance of faxes by taxpayers and the practitioner community.

  4. General Guidelines - These general guidelines are applicable to all divisions and cover operations related to income tax, employment tax, excise tax, estate tax, gift tax, and generation skipping tax, as well as tax exempt and employee plans determinations.

    • Filing of original tax returns via fax will be allowed only as part of a return perfection process (e.g. securing missing schedule or missing signature) initiated by the IRS or in the post-filing/non-filing activities described in next bullet. See IRM 3.11.3.14.10. Tax returns can be received via fax as part of return perfection even if a taxpayer signature is required since Chief Counsel has advised that in circumstances where contact with the taxpayer has been made and documented, faxed signatures are legally sufficient.

    • Submission of documentation, forms, letters, and returns related to post- filing/non-filing inquiries and interactions can be allowed via fax based on taxpayer or IRS request unless there is a specific prohibition. This allowance applies to inquiries and interactions conducted by Field Assistance, Accounts Management, Compliance Services, Field Examination, Field Collection, Determinations Units, Appeals, and the Taxpayer Advocate Service, or related to post-submission inquiries and interactions conducted by Employee Plans or Exempt Organizations in connection with an application for a determination or a request for a ruling. Documentation, forms, letters, and returns can be received via fax in these circumstances even if a taxpayer signature is required since Chief Counsel has advised that in circumstances where contact with the taxpayer has been made and documented, faxed signatures are legally sufficient.

    • The IRS will not acknowledge faxes received from taxpayers in the course of tax administration activities by a return fax. Exceptions can be made in unusual circumstances as determined by IRS management. Nothing precludes a taxpayer from contacting the appropriate IRS employee to request verbal confirmation of receipt. Moreover, taxpayers are not required to submit any documentation, forms, letters, or returns via fax under this policy, and those averse to any risk associated with faxing submissions may continue to make submissions via mail.

    • The IRS is increasingly utilizing EEFAX, which allows users to access and read faxes in Outlook. EEFAX converts incoming fax images to Adobe Portable Document Format (PDF) and directs them to the e-mail system for delivery to the employee via Microsoft Outlook. To document the origin of an EEFAX, it would be advisable for IRM procedures to provide for the preservation, in the regular course of business, the incoming e-mail that identifies the origin of the attached EEFAX.

    • Guidance for some specific forms, documents, and letters can be found in Attachment 1. These items are listed individually based on a request by either outside stakeholders or internal groups. This list does not necessarily include all items that could be received by fax based on the general guidelines.

    • EEFax added per memo “Revision of Policy for Use of Fax in Taxpayer Submissions” dated November 19, 2015, located at http://irweb.irs.gov/AboutIRS/co/dcse/memo/48254.aspx

  5. The following specific documents/forms/letters will continue to be accepted by fax in routine operations between taxpayers and their representatives who are engaged in on-going contact with the IRS:

    • Form SS-4, Application for Employer Identification Number

    • Form 2848, Power of Attorney and Declaration of Representative

    • Form 8821, Tax Information Authorization

    • Form 2553, Election by a Small Business Corporation

    • Form 4506-A, Request for Public Inspection or Copy of Exempt Organization IRS Form

    • Appeals Conference Requests

    • Responses/documentation needed to resolve filing or post-filing questions or correspondence.

    • Lists not all inclusive.

  6. The Service has issued guidance allowing facsimile signatures on the Form 94X Family, Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, Form CT-1, Employer's Annual Railroad Retirement Tax Return, or any variant of these forms. Rev. Proc. 2005-39.

  7. The following specific documents/forms/letters can be accepted by fax if contact has been made with the taxpayer by phone or in-person and the taxpayer history file is documented with the date of contact and notation is made that the taxpayer wishes to send the document/form/letter by fax:

    • Form 8857, Requests for Innocent Spouse Relief

    • Form 3911, Taxpayer Statement Regarding Refund

    • Form 8379, Injured Spouse Allocation

    • Form 433-D, Installment Agreement

    • Form 433-A, Collection Information Statement for Wage Earners

    • Form 433-B, Collection Information Statement for Business

    • Early Referral Requests

    • Fast Track Mediation Requests

    • Request for Collection Due Process or Equivalent Hearing (Form 12153)

    • Letter to designate a payment

    • Letter to request non-filing of lien

    • Letter to request lien release

    • Letter to request lien withdrawal

    • Letter to request non-assertion of penalty

    • Letter to provide reasonable cause statement

    • Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund (Form 941X

    • Form 2553, Election by a Small Business Corporation

    • Lists not all inclusive.

  8. Consents to assess additional tax (Form 4549, Form 870, and others) can be accepted by fax if taxpayer contact has been made and the case history documents the date of contact and the desire of the taxpayer to submit the consent by fax.

  9. Taxpayer closing agreements can be accepted by fax if taxpayer contact has been made and the case history documents the date of contact and the desire of the taxpayer to submit the consent by fax.

  10. Employee Plan and Exempt Organization determination letter applications will not be accepted via fax.

  11. Determination Letter Requests related to income tax, gift tax, estate tax, generation-skipping transfer tax, employment tax and excise tax matters will not be accepted via fax.

  12. Consents to extend the statute of limitations for assessing tax (Form 872, SS-10, and other consent forms) will not be accepted via fax in normal operations.

Erroneous Notice Procedures

  1. The Office of Taxpayer Correspondence (OTC) merged the responsibilities of the former Taxpayer Communications Task Group, Notice Gatekeeper, and Notice Improvement Offices to create simpler, easier to read correspondence for taxpayers, reduce taxpayer burden, and broaden the use of electronic interactions with a focus on successful taxpayer and business outcomes. OTC is the Enterprise point of contact when a significant volume of Erroneous Taxpayer Correspondence (ETC) is issued to taxpayers or when there is a risk of issuing considerable volumes of ETC. It is the responsibility of all IRS employees to report ETC as soon as possible after identification to the Office of Taxpayer Correspondence. For ETC procedures, see IRM 25.13.1, Taxpayer Correspondence, Taxpayer Correspondence Services.

Credit Transfers and Offsets

  1. Credit Transfers and Offsets - Credit transfers are the transfer of a credit from one account to another. They can also be from one TIN to another if a valid relationship exists. Examples of related accounts:

    • The same taxpayer with more than one business,

    • Two businesses with the same bookkeeper,

    • A parent company and subsidiary company.

    Note:

    Generally, payments will not offset to or from another tax module if both modules are settled, except the ESTIMATED TAX(ES) Credit offset.

  2. When a payment is identified for a particular tax module and it has unposted from another module, post the payment to the proper module, rather than letting the computer offset the payment.

  3. If attempting to post a payment to a tax module which contains a TC 760, Substantiated Credit, for the same amount and approximately the same date:

    1. Determine if the unposted payment was the missing payment which caused TC 760 to be input. If it was, post the payment and input TC 570 to hold the money. Notify Accounting of a possible TC 760 Reversal.

    2. Computer offsets cannot be made to or from tax modules which contain TC 760, but refunds and balance due notices can be generated. Both the payment and TC 762 must be posted in the same cycle if the tax module is not frozen.

    3. CC-STAUP should be input to a module if it is in a balance due condition.

  4. Credit Transfers and Transfer Vouchers-Doc Codes 24, 34, 48 and 58 - A credit transfer is used to transfer money from one tax module to another or between Master Files. Each has unique document codes and only certain transaction codes are valid for a specific document code.

  5. A Bypass indicator is required to be input on a credit transfer.

  6. When transferring a payment to a settled module, use unpostable bypass indicator 1 to prevent an unpostable 305.

  7. Transfer vouchers are identifiable by their Doc Codes - 24, 34, 48 and 58.

    1. Doc Code 24 - Used to transfer credits between Master Files when a secondary TC (other than 570) is needed, or when changing the date on a posted transaction. The debit and credit portions post separately. These TCs are compatible: 170, 180, 200, 270, 280, 360, 472, 570, 610, 620, 640, 650, 660, 670, 680, 690, 700, 730, 790, 820, 824, 850, 890 and their respective reversal codes. Do Not Use a Doc 24 for transfers which can be input with Doc 34. Doc Code 24 may be input via IDRS (CC-ADC 24, CC-ADD 24 and CC - DRT 24) or Form 2424, Account Adjustment Voucher via ISRP.

      Exception:

      When possible use Doc Code 24 for credit transfers input when a manual refund is required.

    2. Document Code 34 may be input only via IDRS (CC ADC34 or CC ADD34 to generate FRM34). Doc Code 34 transfers credits between modules within a master file. A TC 570 is the only secondary transaction code allowed with Doc Code 34.

    3. Doc Code 48- transfers an overpayment credit elect, a refund repayment, a substantiated credit allowance or withholding credit. A secondary TC may also be used. The compatible TCs are 270, 360, 410, 472, 510, 710, 720, 742, 760, 770, 800, 830, 841 and their respective reversal codes. Doc Code 48 may be input via IDRS or on paper via ISRP using Form 3809, Miscellaneous Adjustment Voucher.

    4. Doc Code 58 - transfers special accounts. The compatible TCs are 280, 360, 570,660, 680, 690, 694, 700, 710, 730, 820, 824, 850, and their respective reversal codes. Doc Code 58 may be input via IDRS or paper via ISRP using Form 3809, Miscellaneous Adjustment Voucher.

  8. Refer to IRM 21.5.8.3, Credit Transfer Processing, for specific processing procedures for credit transfers. Use the table below to determine what Bypass Indicator to use and when a TC 570 is necessary:

    Situation
    (Credit portion of transfer Only)
    Bypass Indicator "0" Bypass Indicator "1" TC 570
    Credit transfer and the overpayment should not refund

    Exception:

    IMF only TC 760

    Yes No



    Yes
    Yes
    Credit transfer and the overpayment should refund No Yes No
    Credit transfer amount is less than the debit module balance Yes No No
    Credit transfer full pays the module Yes No No
    Credit transfer to module with no TC 150

    Exception:

    BMF only
    Status 06 and TC 594/599 posted,
    Status 06 and other TC 59X posted.

    Yes

    Yes

    No
    No

    No

    Yes
    No

    No

    No
    Credit transfer to correct payment date. Refer to IRM 21.5.8.3.3, Determining Correct Credit Transfer Format, for signature requirements when correcting payment dates. Yes No Yes
  9. Refer to IRM 21.5.8.3, Credit Transfer Processing, for specific processing procedures for credit transfers. Use the table below to determine what Bypass Indicator to use and when a TC 570 is necessary for the Debit portion:

    Situation
    (Debit portion of transfer only)
    Bypass Indicator TC 570
    Prevent refund or offset of any remaining credit after transfer N/A Yes
    To suppress CP 260, Unallowable Items IO - Income Earned in U.S. on Business, Notice N/A Yes

    Note:

    Do not freeze credit without a valid reason.

  10. Form 8758, Excess Collections File Addition Used to transfer non-revenue receipts to Excess Collections.

  11. Form 8765, IDRS Control File Credit Application-requests a transfer from Excess Collections to a taxpayer's account.

  12. See IRM 3.17.220, Excess Collections File, for additional information on the preparation and use of these forms.

Refunds (Erroneous, Canceled or Undeliverable)

  1. Erroneous Refunds - Unpostable examiners may detect erroneous refunds. These refunds can be found on either the credit or debit side of the transfer.

  2. The following situations may cause or create an erroneous refund. This list is not all inclusive

    • Misapplied Payments - A payment applied to the wrong Taxpayer Identification Number (TIN). The misapplied payment overpays the account, causing an erroneous refund.

    • A taxpayer's designated payment posts to the correct TIN but the wrong type of tax or tax year.

    • A credit refund of any type if the taxpayer is not entitled.

    • Return of court ordered restitution.

    • An incorrect tax assessment causing an incorrect refund.

    • An incorrect tax adjustment causing an incorrect refund.

    • Two taxpayers file refund returns, using the same TIN, and the refund goes to the wrong taxpayer.

    • A taxpayer fraudulently or by mistake, receives refunds from more than one TIN for the same tax period.

    • A taxpayer receives both a manual (TC 840) and a computer generated (TC 846) refund for the same overpayment.

    • A taxpayer files a claim on a lost check, receives a replacement check, finds the original check and cashes both.

    • Incorrectly computed restricted interest.

    • A Direct Deposit is applied to the wrong person's bank account due to IRS error. (Owner of account may or may not be known.)

    • Improper release of the TC 700 (false credit) "-U" Freeze. See Document 6209, Section 8, for a complete description of TC 700.

    • Refund Statute Barred Refunds.

  3. If an erroneous refund is found to be refunding in the current or future cycle and a refund deletion request has not been made, the unpostable tax examiner needs to initiate the refund deletion request.

    1. The most likely UPCs are 313, 316 and 325.

    2. Most of these unpostable documents will be the DEBIT side of the Doc Codes 24, 48, or 58 that did not post because the credit refunded or offset to another module.

  4. CC NOREF is used to intercept erroneous refunds. See IRM 2.4.37, Command Code NOREF Overview.

  5. If the credit side of the transfer has posted, and an erroneous refund is in the process of being issued:

    1. Contact Notice Review to cancel refund and any necessary notices and allow debit to post.

    2. Correct the unpostable to debit the module where the credit posted.

    3. Advise the originator that the transfer was reversed and explain why.

  6. If the credit is not frozen from refunding, research IDRS each cycle until the debit posts in order to intercept any generated refund.

  7. Ensure the transaction is being directed to the correct Master File, MFT, and Taxpayer.

    1. If the transaction should have posted to a different Master File, release using URC 8 attach all research and route to Rejects.

    2. If unable to determine where the original 840 or 846 posted, route to the Refund Inquiry function for assistance, see IRM 21.4, REFUND INQUIRIES. Forward a print of CC UPRES to Refund Inquiry. Place the case in suspense status and enter remarks explaining why the case is in suspense. Add a History item to IDRS.

  8. If the credit part of the transfer has posted and refunded:

    1. Reverse the credit using URC 6 or 8.

    2. Notify the originator noting "Erroneous Refund" .

  9. If unpostable is TC 842 (BMF) and the refund is in the process of being issued:

    1. Contact Notice Review to notify the Disbursing Campus to cancel the refund.

    2. URC 8 and request Rejects to renumber the unpostable as a TC 841.

  10. If the module is in a TC 740 freeze status, do not attempt to update the account; it will send another refund.

  11. Canceled or Undeliverable Refund (TC 841 or 740) - The Unpostable function will attempt to correct all unposted TCs 740 or 841 prior to sending to Refund Inquiry in Accounts Management.

  12. If unable to resolve, route to the Refund Inquiry function for assistance, see IRM 21.4.3, Returned Refunds/Releases:

    1. Forward a print of CC UPRES to Refund Inquiry Accounts Management.

    2. Place the case in "suspense" status and enter remarks as to why the case is in suspense.

    3. Add "History" item via IDRS.

  13. The Refund Inquiry function will research and enter the correct information on UPCAS Z.

  14. The Unpostable function will close the case within five work days after receiving the correct information.

  15. If the Unpostable TC 740/841 is a money discrepancy taking the following action:

    1. Forward a print of CC UPRES and a transcript of the module to the Accounting function.

    2. Close using URC 1 Nullify Area Code 41.

    3. Add a "History" item to IDRS.

  16. Excess Collections, Dishonored Checks and Unidentified Remittances - This segment contains instructions on how to correct unpostable conditions involving Excess Collections, Dishonored Checks or Unidentified Remittance if the corrective action can be identified.

  17. This involves various UPCs such as 313 and 316 involving the correction of CREDIT modules.

  18. Complete all research on the case.

    1. If you can determine the corrective action (i.e., corrective transaction code, correct date, etc.), correct the item(s) and close with URC 6. Transfer the completed information on the Form 11358, Excess Collections, and forward to Accounting for corrective action to the XSF, DCF or URF. The Form 11358, Excess Collections, must be forwarded on a weekly basis.

    2. If the credit amount is INCORRECT or UNAVAILABLE for transfer, URC 8 to Rejects.

Category Code L-7 (Credit Transfers and Bad Checks)

  1. Unpostables receives unposted credit transfers as workable inventory and must input credit transfers to correct an unpostable transaction. See IRM 21.5.8, Credit Transfers, for additional information on how to properly research and input a credit transfer.

  2. Taxpayer credits (transactions) can post:

    • To the wrong tax period.

    • As the wrong transaction code.

    • To the wrong Master File.

    • To the wrong taxpayer.

  3. Credit transfers are input to move transactions to the correct tax account module. When they are incorrectly transferred they will unpost in Category Code L-7. Research of other EIN's may be needed to locate payment.

  4. Unpostables in the L-7 category are considered high priority work because they can cause erroneous credits and refunds. Deadlines for stopping erroneous refunds must be met.

  5. Whether correcting an unpostable credit transfer (category L-7) or inputting a transfer in the course of correcting an unpostable transaction, follow the accounting equation (debits must equal credits).

  6. Erroneous credits, which sometimes result in erroneous refunds, occur when the debit side of a transfer is unpostable and the credit side posts.

  7. If the debit cannot post to the module it is addressing, the credit side cannot remain posted. To avoid this situation the unpostable debit is posted to the same module that the credit posted to. This action reverses the credit transfer. One transaction (the debit) is canceling out or reversing the other (the credit).

  8. When reversing a credit transfer the transaction code and date of the unpostable transaction must match the posted side or additional unpostables will be created (this is an undesirable situation).

  9. Document codes unpost in the GUF L7 category in a specific order as follows:

    • 24

    • 34

    • 45

    • 48

    • 58

    • 87

  10. The debit and credit sides of Doc Codes 24, 48, and 58 carry a separate Document Locator Number (DLN). In addition, the debit and the credit post separately. Therefore it is possible for the debit to unpost and the credit to post creating an erroneous credit and possible erroneous refund.

  11. Since the debit and credit are separate transactions, always check both sides to ensure:

    1. Both the debit and the credit are unpostable determine if both sides can be corrected. If both sides can be corrected release using the appropriate URCs. If both sides cannot be corrected release both sides using URC 8 to wash the debit and credit and notify the originator.

    2. The credit will not release an erroneous refund.

  12. Document Code 24 - When a secondary transaction code (other than 570) is needed or when transferring credits between Master Files, use Doc Code 24.

    Note:

    Do not use a Doc Code 24 for transfers that can be input with Doc Code 34.

  13. Document Code 34 - transfers credits between modules within a Master File

    1. The Doc Code 34 input format allows Tax Examiners (TE's) to move up to four credits having no secondary TC other than TC 570.

    2. Input Doc Code 34 via IDRS using CC ADD34, ADC34, or FRM34.

    3. Both the debit and the credit side of the transfer carry the same DLN and only one document generates.

    4. The debit must post in order for the credit to post.

  14. Advantages to using the Doc Code 34 format include the following:

    1. It enables tax examiners to input up to four transaction codes.

    2. Erroneous refunds are seldom associated with Doc Code 34 since the credit does not post until one week after the debit has posted.

    3. If the debit unposted because the transaction date is incorrect, the unpostable can be resolved using Unpostable Resolution Code (URC) 6.

    4. If the unpostable debit cannot post, or is a duplicate of a prior transfer, the unpostable can be resolved using URC D to cancel the DLN.

  15. Document Code 48 - transfers the following actions:

    • An overpayment credit elect

    • A refund repayment

    • A substantiated credit allowance, or

    • A withholding credit

    A secondary TC may be used. Doc Code 48 may be input via IDRS using CC ADD48, ADC48, or DRT48 or on paper using Form 3809 , Miscellaneous Adjustment Voucher, via ISRP. The Doc Code 48 format is similar to the Doc Code 24 format.

  16. Document Code 58 - transfers special accounts. The compatible transaction codes are listed below.

    • TC 280

    • TC 360

    • TC 570

    • TC 660

    • TC 681

    • TC 690

    • TC 700

    • TC 710

    • TC 730

    • TC 820

    • TC 824

    • TC 850

    Note:

    The respective reversal codes are included.

  17. Document Code 87 - reverses a payment submitted by check that the bank did not honor.

    Example:

    A posted credit TC 660 is reversed by a TC 661 indicating a dishonored check.

Category Codes Y–1 and Y–2 (ISRP and Payments other than Doc Codes 24, 34, 45, 48, 58 and 87)

  1. This subsection contains information for Category Y–1 and Y–2.

    Note:

    The TC 150 must post in the same cycle or subsequent cycle of the TC 610 to prevent erroneous notices.

  2. Category Y–1 Criteria - Category Y–1 consists of all current-year TC 610 transactions (payment with return) that are not Doc Codes 24, 34, 45, 48, 58 or 87.

    1. Payments processed via ISRP or Lockbox banks will contain a Doc Code 70 or 76.

    2. "Input System Source Code" of "R" (ISRP Input Record). This code is contained in the block header data for With-remittance ISRP records.

  3. All BMF ISRP TC 150 transactions with an Unpostable Code other than 399 and the "ISRP Return Indicator" is "2" (BMF returns with an ISRP remittance).

  4. Unpostable Category Code Y–2 - Category Y–2 consists of prior list year ISRP TC 610 and/or TC 150 transactions.

  5. ISRP TC 610 and/or TC 150 transactions with an unpostable classification code of "Corrected" or "Reclassified" (Repeats).

  6. "Looping" Conditions - If the Unpostable is UPC 399, establish or update the account prior to closing the unpostable.

Taxpayer Delinquent Investigation (TDI) and Notice Delay Information

  1. Erroneous TDIs-BMF - Erroneous TDIs can be generated when:

    1. A TDI satisfying transaction (TC 150, 474, 590, 591, 593, 594, 595, 596, 597, 598 or ISRP 610) is unpostable and the transaction is nullified or not posted to master file within 45 days; or

    2. a TDI satisfying transaction attempted to post to the wrong module (MFT and/or tax period incorrect) or to the wrong account (TIN is incorrect).

  2. When nullifying (URC 1 or 8), a TC 150 or TC 610 and the TC 150 will not be re-input to the same tax module within six weeks after the return due date (RDD). Input a TC 599 with closing code 017 or 018 to the tax period where the TC 150 will post unless otherwise directed.

  3. When a TDI satisfying transaction other than a TC 150 or TC 610 attempts to post to the wrong tax module or account and the unpostable will not be corrected within six weeks after the RDD, expedite the resolution by the end of the next week.

  4. To prevent erroneous TDIs, input a TC 599 with the appropriate closing code if the TC 150 cannot be posted timely to stop the TDI.

    1. Use Closing Code "017" if the return is being processed BEFORE the Program Completion Date (PCD).

    2. Use Closing Code "018" if the return is being processed AFTER the PCD.

  5. All Unpostable initiated TC 59X should be input through IDRS.

    1. Use CC FRM49

    2. Use CC TDINQ to research any unpostable TC 59X.

  6. Do not change posted entity data based solely on the information found on the unpostable TC 59X.

  7. CC-STAUP and TC 470-Notice Delay - CC-STAUP and TC 470 with no closing code Notice Delay-generally it is not necessary to delay IDRS notice issuance on unpostable modules because:

    1. Notice issuance does not start until the return (TC 150) posts; therefore it is not necessary to input CC STAUP or TC 470; and

    2. All IDRS notice issuance is automatically suspended when an unpostable record (other than TC 150) is shown on IDRS for the same module.

      Note:

      This unpostable notice freeze is released when the unpostable condition is corrected. The type of notice issued is determined by the status of the module when the unpostable is corrected.

  8. Delay IDRS Notice Output - However, if it is necessary to input CC STAUP or TC 470 to delay an IDRS notice output use the following:

    1. Input STAUP (not to exceed 8 cycles) the same cycle the unpostable record is corrected, if the unpostable record was input to the wrong Master File (except for status 60) and TC 470 or CC STAUP is not already on the correct module. Notify Notice/Output Review to pull first notice after inputting "CC STAUP" . For other than first notice, notify Compliance Services Collection Operation (CSCO).

    2. Input CC STAUP (not to exceed 3 cycles) the same cycle the unpostable record is corrected, if the unpostable was input to the wrong TIN, name control, and/or tax period, and TC 470 or CC STAUP is not already on the correct module, or an CC STAUP notice freeze is about to expire.

  9. Payments Only - If the unpostable case has not been resolved seven cycles after receipt, review CC TXMOD, check for a prior CC STAUP or TC 470, a posted TC 150 and a balance due.

    1. If a TC 150 is posted and is in balance due status but no CC STAUP or TC 470 is present, input CC STAUP (not to exceed 8 cycles) to delay notice issuance until the unpostable payment can be corrected and posted.

    2. If unpostable module is not on IDRS ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or in TDA status (22, 53, 60, or 72), CC STAUP cannot be input. Instead input TC 470 to delay notice issuance; or use CC ACTON to establish the module on IDRS and then input STAUP (not to exceed 8 cycles). Notify Notice/Output Review to pull first notice after the input of CC STAUP or TC 470. For other than first notice, notify Compliance Services Collection Operation (CSCO).

  10. Inputting CC STAUP or TC 470 - When inputting CC STAUP or TC 470, the number of cycles the IDRS notices is delayed should be kept at the minimum necessary. Excessive cycle delays can result in unnecessary penalty and interest accruals when the unpostable credit does not reduce the balance to zero.

    1. CC STAUP generates suspense status 48 and freezes notice activity for up to 15 cycles and specifies the next notice to be issued. Status 48 will be released at the end of this specified suspense period. STAUP cannot be used to delay Master File first notices.

    2. TC 470 with no closing code suspends IDRS notices and/or TDA's on a module for up to 15 cycles. TC 470 may be input to tax modules in IDRS status 19 (if RDD is reached), 10, 21, 56, and 58.

    3. See the TC 470 Analysis Chart in Document 6209, to determine the IDRS status after input of the TC 470. The next notice will be issued after the TC 470 is either released or the number of cycles have expired. TC 470 should not be used to delay Master File first notices because when the return posts this notice is issued.

  11. Transferring Out Cases - Cases being transferred out of Unpostable's inventory must have at least four weeks remaining on the notice delay transaction. If not, input a new STAUP or TC 470. Indicate on routing slip a new CC STAUP or TC 470 was input and the number of cycles the notice was delayed.

  12. TC 470 or CC STAUP Already on Module - If a TC 470 or CC STAUP is already on the module and will not expire before completion of the unpostable action, DO NOT re-input or update CC STAUP or TC 470.

Pending Transaction Identification Codes

  1. Pending transaction identification codes related to an adjustment, reject, or unpostable transaction. They indicate that the transaction, scheduled for posting in a later cycle, has rejected, or has been deleted and will not post. The indicators below are reflected on IDRS so that anyone working on the account may be alerted to actions that could affect the posting of other transactions they may wish to input.

    Pending Transaction Code Explanation
    AP Pending tax module transaction prior to PAN status. Reflected through the day of input until tapes are updated each evening or until input is released by Quality Review (if reviewed). The transaction does not yet have a true DLN. It reflects only the sequence number of input to a specific module (e.g., first transaction to an account on a given date would be 000001). While a transaction is AP, it can be voided by input of CC TERUP.
    CU Corrected Unpostable – Unpostable has been corrected with URC 0, 5, or 6. Specific correction is not indicated (neither change nor code), but both can be determined by researching the closed unpostable register or CC UPTIN.
    DC Corrected Nullified Unpostable – The cycle reflected indicates the week in which the case was resolved by the Reject function. The action taken is not shown nor is the record of these closures maintained by the Unpostable Unit. Only the Reject Control Function can advise on these cases.
    DI A delinquent or entity transaction which appears on IDRS transaction only. Will never post to the master file.
    DN Transaction deleted on IDRS only. The IDRS record is distorted as a result of this deletion. The master file record will have to be requested to determine if the TC has posted. Unpostable records should be checked only in instances when the TC has not posted.
    DP Deleted payment or a TC that has been deleted by CC DELET
    DQ Deleted by Quality Review or CC TERUP
    DR Retained for research
    DU A transaction deleted from the Unpostable file
    DW A transaction deleted via optional age routine in the weekend IDRS computer batch processing (weekly updates).
    EP Pending entity module transactions prior to PAN status. Will not have a complete DLN and may be reviewed by Quality Review.
    ERS An ERS transaction appended to the entity is identified as "ERS" when it is displayed with a tax module. Limited to TCs 903 and 904.
    NU A nullified unpostable transaction to be resolved by service center reject processing.
    PAN A pending transaction that has passed all IDRS validity checks and has a complete DLN. All NMF transactions posted after establishment of the module remain as PAN.
    RJ A reject transaction. All RJ transactions are appended to the entity. They are displayed on the tax module if the MFT, plan number and tax period are for the displayed tax module.
    RS A resequenced transaction extracted from the resequencing file at MCC. Includes all TCs 904 when first appended. Account resequences generally take 2 cycles to post; however, resequencing can delay posting from 1 to 11 weeks, depending on the master file. If the resequencing fails, the account will return to its original condition in the 3 cycles.
    TP A payment received in the service center input to IDRS from the RPS with the cycle of input. It will not be included on a master file transaction tape until passing all validity and consistency checks and updated to PAN status with the expected MCC posting cycle.
    Unnn An open unpostable transaction (nnn=the numeric unpostable code).

Cycling-In Transactions

  1. General - A transaction frequently requires a related transaction to post first. Most transactions require the establishment of an account or tax module as a prerequisite. Many unpostables result from improper cycling. All document code 47 (Exam) and most document code 54 (DP) Adjustment transactions require a return be posted. Reversal transactions require the related original transaction to be present. After all transactions have posted, analyses are made, new status and freeze conditions are set, (released or changed) and notices, Taxpayer Delinquent Accounts (TDA's) and refunds etc. are issued. The length of time needed to post a transaction varies.

  2. Background - The posting sequence for all Master Files is generally from lowest numbered Transaction Code (TC) to the highest numbered TC.

    Caution:

    TC 400 posts last on all Master Files with the exception of BMF. In BMF, TC 150 will always post last.

    1. Computer analysis of the transaction (to change Master File status, module balance, filing requirement, to freeze or release a freeze, or to set, release or change an indicator) is made after all transactions are posted.

    2. Computer analysis for the issuance of notices, Taxpayer Delinquent Accounts (TDA's) is made after all transactions are posted.

    3. Computer analysis for the posting of a transaction based on the presence of prerequisite transactions, status codes, condition codes, FR and module balance, is made when the transaction attempts to post.

  3. Master File Resequencing - Resequencing can delay posting from one to eleven weeks (depending on Master File).

    1. Re-sequencing can be identified on IDRS by the presence of "RS" transactions (if account is on IDRS).

    2. Account re-sequences (TC 011, 013, 040, 041) generally take two additional cycles to post. If the re-sequencing fails, the account will return to its original condition in the third cycle.

    3. Certain transactions such as merging, account number changes, and credit offsets require account re-sequencing at the Master File.

    4. Form 706 documents with a valid SSN will re-sequence for 3 cycles. The ISRP TC 610 for the related 706 will also re-sequence for 3 weeks if an account has not been established (TC 150) on the BMF when it attempts to post.

    5. Early filed returns with remittances will re-sequence until the RDD.

    6. Balance due e-file returns will re-sequence until the 23C date is greater than RDD plus 21 days or a payment posts that reduces the debit balance to zero or credit.

      Exception:

      Form 1041 will re-sequence until cycle 22 of the current year if the balance due is outside the limits of small balance write-offs

  4. Transaction Posting Time - Transaction posting time depends on the input method as follows:

    1. Corrected unpostable transactions (URC A, 0, or 6) will be transmitted to Master File in the next cycle.

    2. IDRS transactions, excluding Data Processing (DP) Accounts Management held up for review, will be transmitted to its Master File on the same schedule (next cycle).

    3. Transactions input through ISRP are on a regular or expedite cycle.

    4. Submission Processing Campus functions causing unpostables through errors should be alerted so corrective measures can be taken. Improper cycling-in delays posting and consequently delays refunds and billing.

    5. For payments input to the wrong Master File (except if status 60), input IDRS `STAUP' for 8 weeks if a TC 470 is not already on the correct module. If the account is in Status 60 (Installment agreement), contact Compliance Services Collection Operation (CSCO) for resolution. Notify Notice Review to pull first notice after input of `STAUP' or TC 470. For other than first notice, notify CSCO.

    6. Unpostable cases closed with URC 8 will not appear on the Reject Register or ERS until after the next GUF weekly update.

  5. Rules for Cycling -Cycle transaction if:

    1. The prerequisite transaction has a higher transaction code.

    2. The prerequisite transaction is needed to change the status, filing requirements or balance, to freeze or release a freeze, or to set, change or remove an indicator.

    3. Cycling should be calculated by using the current MCC cycle plus the number of weeks it will take to post to Master File.

      Caution:

      When cycling transactions and entering the number of cycles (cycle delay code), consider the day of the week of input in relation to the day the SC updates to MCC. If the transaction is being input close to the end of the weekly posting cycle, an additional cycle may be necessary for the transaction to avoid repeat Unpostables.

  6. Do not cycle-in transactions if:

    1. Posting sequence isn't necessary.

    2. Prerequisite transaction will post first anyway.

Integrated Data Retrieval System (IDRS)

  1. Tax examiners have the ability to cycle transactions input via IDRS using a Posting Delay Code (PDC).

  2. The following IDRS transaction programs have the posting delay capability:

    • DP Adjustment CC ADJ54 (Doc. Code 54); CC AMCLSE (Doc Code 47)

    • Entity Change CC's INCHG, BNCHG, (except EPMF) and EOCHG (Doc Codes 50, 53, 63, 80, and 81)

  3. Pre-journalized Credit Transfers - Pre-journalized Credit Transfer CC's DRT24 and DRT48 (Doc. Codes 24 and 48)

    1. The PDC can be specified for the debit and the credit side.

    2. This should be used for situations where the debit and credit must have different posting cycles; or delaying the debit to cycle the credit is inappropriate.

  4. Dual Debit/Credit Transfers - Dual Debit/Credit Transfer CC FRM34 (Doc. Code 34)

    1. The PDC is entered only for the debit transaction.

    2. The credit transaction is not created until the debit posts to the master file; hence, a PDC is not necessary.

  5. Miscellaneous Transactions- Miscellaneous Transactions CC FRM77 (Doc. Codes 77 and 78).

    1. The PDC will not be available with the batch input program for Miscellaneous Transactions (CC FRM77/FRM7A) until the input screen is redesigned. See IRM 2.4.19, Command Codes REQ77, FRM77 and FRM7A, for additional information.

  6. General Instructions - Tax examiners must input a PDC with transactions to be cycled.

    1. Transactions can be delayed from one (1) cycle up to a maximum of six (6) cycles.

    2. The posting of these transactions to the master file will be deferred until the indicated number of posting cycles has passed.

  7. The PDC will not post with the transaction or be shown with the IDRS pending transaction. The projected MCC posting cycle on the IDRS "PAN" (status pending) transaction will be extended to account for any PDC impact on the transaction.

Frivolous Returns and Claims

  1. A frivolous argument generally expresses dissatisfaction with the substance, form, or administration of the tax laws and attempts to improperly avoid or reduce tax liabilities or to increase refunds by frivolous means. Recognized frivolous arguments made by businesses include, but are not limited to, the examples in IRM Exhibit 25.25.10-1, Frivolous Arguments.

    Caution:

    Must be taken to ensure returns having only zeros, no entries, are blank or indicate "None" , "Not Liable" , etc. meeting the frivolous criteria have been reviewed by Exam.

  2. Review the return to determine whether it appears to be a frivolous return.

    If... Then...
    The return meets any of the conditions indicated in IRM Exhibit 25.25.10-1, Frivolous Arguments. Caution: If the return shows Action Code 331, a CCC "X" , and has a Form 4227, Intra-SC Reject or Routing Slip, attached with the remarks, "Refer to Exam FRP for audit after processing" , continue to next procedure. Remove the return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Processing (FRP) for review. IRM 25.25.10.2.1, Campus FRP Coordinators, requires Examination to expedite the return and make a determination whether it qualifies as a frivolous return within two (2) business days. If a determination is not made within the allowed time-frame, the Examination examiner will edit Action Code 331 in the lower left margin of Form 8752, Required Payment or Refund Under Section 7519, preceded with the letters "AC" .
    Examination has selected the return as frivolous, e.g. indicated by an Action Code 331 (CSPC), a CCC "X" , and a Form 4227, Intra-SC Reject or Routing Slip, with the remarks, "Refer to Exam FRP for audit after processing" , but sends the return for processing. Continue processing the return using procedures within this manual. However, do not circle or void the Action Code or CCC "X " indicating a frivolous return.

Taxpayer Address Unavailable

  1. If the street address is not available on the document or return, or through IDRS research using CCs FINDS/FINDE, NAMES/NAMEE, NAMEI/NAMEB, ENMOD and INOLE, request the prior year return to research for the taxpayers last known address.

  2. Never change a taxpayer's address to a Campus address.

Unpostables With An Indication Of An Address Change

  1. Use the instructions provided in the table below to determine when to change the address on a signed current year return that has unposted:

    IF AND THEN
    Non pre-addressed return A clear and concise unsolicited statement/correspondence or the address box is checked on a current tax year return:
    1. Signed by the taxpayer or an authorized representative per CC CFINK and

    2. The taxpayer's full name or name of the Entity is present, and

    3. The EIN is present.

    Input TC 014 using CC ENREQ.
    Pre-addressed label Address change indicated by taxpayer, Input TC 014 using CC ENREQ.
  2. Do not update the address on prior year returns if the address on the account is different, unless the return is a signed, Final return for which the taxpayer has requested an address change.

  3. There are two types of international mailing address:

    • U.S. Possession

    • Foreign Address (address outside the 50 United States, District of Columbia or any of U.S. Possession)

  4. U.S. Possession Address includes:

    • Street Address,

    • City/U.S. Possession,

    • ZIP Code

  5. U.S. Possession Addresses must be processed with a valid two character state abbreviation:

    • VI - Virgin Islands

    • PR - Puerto Rico

    • AS - American Samoa

    • GU - Guam

    • MP - Commonwealth of Northern Mariana Islands

    • PW - Palau Islands

      Note:

      For ZIP Codes see Exhibit 3.21.3-6, U.S. Territory Zip Codes.

  6. A foreign address is any address that is not in:

    • One of the 50 states.

    • The District of Columbia.

    • Any of the American possessions.

    Foreign Address Changes - A foreign address change cannot be made by ISRP from the return.

  7. When a foreign address change is indicated, input an entity change with TC 016 with the changed information, plus any unchanged information to make a complete address. See the Subsection on Foreign Mailing and Location Addresses (other than APO, FPO, MP, FM, MH, PW, PR, GU, AS, and VI) located in IRM 3.13.2, BMF Account Numbers.

  8. Returns with address changes in the following American possessions can be input with the return:

    • American Samoa

    • Federated States of Micronesia

    • Guam

    • Marshall Islands

    • Palau Islands

    • Mariana Islands

    • Puerto Rico

    • US Virgin Islands

    Note:

    For American possessions address changes see the Subsection on Domestic Foreign addresses located in IRM 3.13.2, BMF Account Numbers.

  9. Army Post Office (APO), Fleet Post Office (FPO), or Diplomatic Post Office (DPO) Addresses - For APO, FPO, DPO addresses see the Subsection on Domestic Foreign addresses located in IRM 3.13.2, BMF Account Numbers.

Criminal Investigation (CI) Criteria

  1. If any of these conditions are present, discontinue unpostable processing. Set aside the case for CI-Questionable Refund Detection Team (QRDT) function.

  2. An unpostable record that is assigned to Unpostables, Entity Unpostables or Examination that falls into CI criteria and should be reassigned and worked by CI.

  3. If the unpostable code is 309 and the transaction code is other than 91X, and the correct tax module (tax period) was established by either a TC 914 (BMF) or a TC 914 or 916 is already posted in the correct account/module, transfer case to Cl.

  4. Refer to CI for review any return or document on which the taxpayer:

    1. Protests, for any reason, the filing of a tax return or the paying of tax;

    2. Scratches out or alters in any manner the jurat (penalty of perjury statement).

    Note:

    CI will be responsible for reassigning and forwarding any cases to Examination that they determine to be frivolous.

  5. If the document has already been forwarded to CI or Examination for the above reasons by Code and Edit. DO NOT forward again. Continue with regular unpostable resolution procedures.

Criminal Investigations, Statute, and Insolvency Issues

  1. If an assigned record is determined to have CI, Statute or Insolvency (bankruptcy) issues, the case should be processed in accordance with the following categories:

    • Criminal Investigation - A1 or A2.

    • Statute - C1, C2, or C3.

    • Bankruptcy - Z1. or Z2.

  2. Document 47 or 54 exception: If URC 2 (void) is used and the transaction is remade by a prompt/quick assessment (TC 370) due to a Statute issue, the transaction should not repeat as a Statute unpostable.

Instructions for Creating Name lines and Assessing Non-Return Civil Penalties

  1. The term Non-Return Related Civil Penalties refers to all those civil penalties not assessed in a return tax module using the tax return MFT Codes. The Non-Return Related Civil Penalties are assessed on the BMF Master File in the regular taxpayer account using a unique Civil Penalty MFT Code ( MFT 13 for BMF). The Civil Penalty tax modules are additional tax modules in an account sharing the same taxpayers' entity information with the tax return modules in the account

  2. See IRM 20.1, Penalty Handbook, for additional instructions if necessary.

Electronic Federal Tax Payment System (EFTPS) and Credit Card/Direct Debit Payments

  1. All EFTPS Operations are located at the Ogden Submission Processing Campus

  2. EFTPS processed the first payment in November 1996. EFTPS will retain information on-line for current year plus 4 previous years.

  3. EFTPS payments have no paper records. The EFTPS DLN is a unique 15 digit number assigned by the financial agent and is researched via IDRS Command Code EFTPS. See IRM 2.3.70, IDRS Terminal Responses - Command Code EFTPS, for additional information.

  4. IDRS Command Code EFTPS is not restricted. Command Code EFTPS may be used with any of the following three definers:

    DEFINER INPUT FORMAT DESCRIPTION
    E EFTPSEnnnnnnnnnnnnnnn Researches general information using the EFT number.
    R EFTPSRnnnnnnnnnnnnnnnnnn yyyy Researches the reference number and payment year to locate the EFTPS.
    T EFTPSTnnnnnnnnn mmddyyyy $$$$$$$$$$$$$$ (Decimal must be entered, and no commas) Researches the TIN, payment date, and money amount to locate the EFT number or reference number.
  5. To determine whether the payment was made by Direct Debit or Credit Card, research the 4th (fourth) digit of the EFT-TRACE-NUM field to identify the payment method.

    • E-file Direct Debit = 0

    • Credit Card Payment = 6

  6. Electronic Funds Transfer (EFT) Number - The financial agent assigns a 15 - digit EFT number. The EFT number is a unique identifier and is used to research payments on the master file and IDRS. Do not use the Document Locator Number (DLN) to perform research on EFTPS transactions. The EFT number is configured as shown in the following table.

    Position Name Description
    1 FA ID Number 2 - Bank of America
    1 FA ID Number 3 - Treasury Offset Program
    1 FA ID Number 4 - SSA Levy Program
    1 FA ID Number 5 - RS-PCC
    2 Payment Method 0 - E-file Debit
    2 Payment Method 1 - ACH Credit
    2 Payment Method 2 - ACH Debit
    2 Payment Method 3 - FR-ETA
    2 Payment Method 4 - (Reserved)
    2 Payment Method 5 - Levy
    2 Payment Method 6 - Credit Card
    2 Payment Method 7 - Online
    2 Payment Method 8 - Railroad Retirement Board (RRB) Link
    2 Payment Method 9 - Government Payment (FEDTAX, Federal Payment Levy Program or SSA Levy)
    3 Combined Payment Indicator See IRM 3.17.277.5.3 EFT Number
    4 - 7 Year Digit/Julian Date Year digit plus 001 - 366. If overflow, 401 - 766 may be used. The date that the EFT number was assigned.
    8 - 9 Bulk Provider Number See IRM 3.17.277.5.3 EFT Number
    8 - 15 (10 - 15 for bulk providers) EFT Sequence Number Randomly assigned number
  7. The confirmation number given to the taxpayer is the last eight positions of the EFT number. Reconstruct the complete EFT number, as follows:

    EFT Number Position Name of EFT Number Position
    Position 1 2 - Bank of America
    Position 2 2 - ACH debit
    Position 3 0 through 9 - Combined Payment Indicator
    Positions 4 - 7 Year/Julian date of settlement YDDD
    Positions 8 - 15 Confirmation number
  8. Research IDRS Command Code EFTPST to identify if the payments were made by credit card. Credit card payments will have a ″6″ in the 4th position of the EFT-Trace number field.

  9. If attempting to locate a missing payment and the account contains two unreversed current year payments for the exact amount(s) (Direct Debit or Credit Card payment and Lockbox) and the account is overpaid by this amount, URC 0 allowing the taxpayer's refund.

    Note:

    Ensure at least two cycles have passed since the payments posted to allow for the posting of any reversals from the taxpayer's bank. DO NOT refund the payment if a reversal is pending.

  10. If the total amount of the credits does not exceed the balance due of the return, then take any necessary action to allow both payments to post.

  11. If you determine both payments were from Credit Cards contact the EFTPS Credit Card Coordinator for resolution.

  12. If the unreversed excess credit(s) in the current tax module has a prior year in the TRANS-DATE field

    1. Research IDRS using CC TRDBV for the Form Payment Record of the prior year electronic tax return.

    2. Verify the payments were received. If the tax payment amount is equal to the amount of the overpayment, correct the module. Any legitimate overpayments should be refunded to the taxpayer.

  13. If there is a single, unreversed, credit and the amount of withholding (TC 806) will generate a refund and the taxpayer indicates the credit does not belong to them, contact the EFTPS Coordinator.

  14. Unpostables should exhaust every attempt to correctly identify the taxpayer, including contacting Accounting for taxpayer contact information, before coordinating the EFTPS unpostable with the Entity Unpostable Function.

  15. EFTPS and RS-PCC processes unidentified remittances. If EFTPS cannot locate the correct taxpayer, the payment will unpost with EIN 00-0000001.

EFTPS Unpostable - Payments (OSPC)

  1. If the second digit of the EFT number excluding the Campus number is a 2 (ACH debit), assume that the payment is addressing the correct EIN.

  2. Do not send these cases to Accounting if the EIN is established on master file.

    Exception:

    If the second number is a 2 and the third number is an 8 and the payment is addressing MFT 05 ( Form 1041).

  3. Research the taxpayer account for a payment and/or date pattern to determine if the payment belongs to the taxpayer. If the payment belongs to the taxpayer post as appropriate.

  4. EFTPS unpostables will be worked according to the following instructions contained within this subsection. All unpostable codes not listed will be worked according to the specific unpostable code instructions.

  5. UPC 303 - If the second digit of the EFT number excluding the Campus number is a 2 (ACH debit), assume that the payment is addressing the correct EIN and input URC A. For UPC 303 EFTPS payments with EIN 00-0000001, URC 8 to Rejects. Request Rejects forward the payment to Unidentified. See IRM 3.12.279.57, UPC 303 RC 1 Name Control Mismatch, for additional procedures for resolving UPC 303

  6. UPC 305 - Do not send these cases to Accounting for verification. These payments have already passed the UPC 301 and 303 checks.

    Exception:

    If the payment is addressing MFT 05 and the payment is out of line with the payment history. These payments can be sent to Accounting for verification, all other payments must be posted. Follow normal procedures for posting payments. If a payment is out of line and there are no modules with balance due, URC 0 to force post the payment.

    • If the payment is a TC 670 and the taxpayer has no modules with balance due and the payment is in-line with the payment pattern treat the payment like a quarterly payment and post per the date. See IRM 3.12.279.62, UPC 305 RC 1 Federal Tax Deposit Discrepancy, for additional procedures for resolving UPC 305.

    • If the payment is a TC 650 or 660 and is addressing a debit module and is in-line with a payment pattern or matches a previous notice release using URC 0 otherwise release URC 6 and post per date. For UPC 305 EFTPS payments with EIN 00-0000001, URC 8 to Rejects. Request Rejects forward the payment to Unidentified.

  7. UPC 313 - If the payment is a TC 694 and the amount of the payment is not $43.00, $89.00, $107.00 or $225.00 and the amount of the payment is in-line with the taxpayer's payment history change the TC to a 650, 660, or 670 as appropriate. For UPC 313 EFTPS payments with EIN 00-0000001, URC 8 to Rejects. Request Rejects forward the payment to Unidentified. See IRM 3.12.279.82, UPC 313 RC 1 No Related Transaction, for additional procedures for resolving UPC 313.

  8. UPC 316 - If both the credit and the credit reversal are unpostable, both must be posted. Do not wash the credits. If the unpostable is a debit find the credit with the exact date and money amount and post the debit to the posted credit. Do not change the date. For UPC 316 EFTPS payments with EIN 00-0000001, URC 8 to Rejects. Request Rejects forward the payment to Unidentified. See IRM 3.12.279.91, UPC 316 RC 1 Date and Money Amount Mismatch, for additional procedures for resolving UPC 316.

  9. UPC 329 - Resolve using instructions in IRM 3.12.279.126 through IRM 3.12.279.133. For UPC 329 EFTPS payments with EIN 00-0000001, URC 8 to Rejects. Request Rejects forward the payment to Unidentified.

  10. UPC 341 and the filing requirement and name control match the information of the re-sequenced EIN, post the payment to the re-sequenced EIN. If the name control does not match or the re-sequenced EIN is not established, coordinate with Entity Unpostables. If it appears the payment does not belong to the taxpayer after research, send a print of CC TXMOD showing the Unpostable payment to Accounting to research. For UPC 341 EFTPS payments with EIN 00-0000001, URC 8 to Rejects. Request Rejects forward the payment to Unidentified. See IRM 3.12.279.147, UPC 341 RC 2, for additional procedures for resolving UPC 341.

    Note:

    Coordination with Entity Unpostables involves dedicating a specific basket or bin to place unpostable cases requiring special assistance (expedite process). These unpostables must be reviewed by Entity Unpostables within an established timeframe. No more than Three business days can elapse, before the unpostable case is returned to the Unpostable Function to prevent aged unpostables.

    Note:

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

  11. UPC 490 RC 1 - If the payment is a TC 620, change the TC to a 650, 660, or 670 as appropriate. For UPC 490 EFTPS payments with EIN 00-0000001, URC 8 to Rejects. Request Rejects forward the payment to Unidentified. See IRM 3.12.279.183, UPC 490 RC 1, for additional procedures for resolving UPC 490 RC 1.

  12. Accounting will accept fax request for contact information. See IRM 3.17.277.1.5.12.1(7) for fax number. Provide the following information with the request:

    • A print of CC TXMOD.

    • The reason why the payment unposted. (When the payment is a UPC 329 do not state because of a problem with filing requirements. Request taxpayer contact information.)

      Note:

      Accounting will respond back without researching if the CC TXMOD prints state anything about a filing requirement mismatch.

  13. Accounting will provide a 2 - 7 day turnaround on research cases. If payment was made by credit card, Accounting will contact the credit card company to secure better entity information. If the credit card company provides only the taxpayer's telephone number, Accounting will provide unpostables with the taxpayers telephone number.

    Note:

    Accounting will not call the taxpayer.

International Returns

  1. On January 1, 2007, the Ogden Campus began processing BMF International returns. BMF International tax returns/forms are identified by an address outside of the 50 United States and Washington, DC. Refer to Document 6209 Code Retriever for a list of international forms.

  2. A foreign address is any address that is not in:

    • One of the 50 states

    • The District of Columbia

    • Any of the American possessions

  3. The valid File Location Codes (FLC) for processing BMF International returns at the Ogden Campus are FLC 60 and 78.

    • OSPC FLC 60 (International returns)

    • OSPC FLC 78 (U.S. Possessions) must have a Zip Code.

  4. FLC 78 contains all returns with a U.S. Possession or Territory address (with a 5-digit ZIP Code). See IRM 3.13.2.3.4, Domestic International Addresses (APO, FPO, MP, PR, GU, AS, FM, VI, MH, PW, AA, AE and AP), for information on Domestic Foreign Addresses.

    • Puerto Rico

    • American Samoa,

    • Guam,

    • Virgin Islands, and

    • Northern Mariana Islands.

  5. Cincinnati is responsible for processing Form 706-A , United States Additional Tax Return on Non-Master File.

  6. See IRM 3.10.73.8.2, DLN Assignment for BMF, for Form 706, U.S. Estate Tax Return and Form 709, United States Gift (and Generation - Skipping Transfer) Tax Return, series.

  7. The basic requirements and procedures for processing unpostables apply to the processing of International returns. Any specific procedures for correcting International unpostables can be found within each Unpostable Code and Reason Code in this IRM.

  8. Additional reference material that may be used to resolve International unpostables are as follows:

    International Code and Edit Internal Revenue Manuals
    3.21.15 Foreign Partnership Withholding
    3.21.19 Foreign Trust System
    3.21.25 Miscellaneous Tax Returns
    3.21.110 Chapter Three Withholding Returns - Form 1042
    3.21.111 Chapter Three Withholding Returns
    3.13.40 Application for Tax Identification Number for Pending U.S. Adoptions
    3.21.261 Foreign Investment in Real Property Tax Act (FIRPTA)
    3.21.263 IRS Individual Taxpayer Identification Number (ITIN) Real- Time System (RTS)
  9. Additional error resolution reference material that may be used to resolve International unpostable are as follows:

    International Error Resolution Internal Revenue Manuals
    3.22.15 Foreign Partnership Withholding
    3.22.19 Foreign Trust System
    3.22.110 Chapter Three Withholding (CTW) Returns - Form 1042
    3.22.111 Chapter Three Withholding (CTW) Database
    3.22.261 Foreign Investment in Real Property Tax Act (FIRPTA)
  10. If an unpostable Form 1065, U.S. Return of Partnership Income, or Form 1041, U.S. Income Tax Return for Estates and Trusts, indicates a foreign address for the partnership, estate or trust, route the case to OSPC as an International return.

  11. All unpostables for Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, and Form 3520-A, Annual Return of Foreign Trust With a U.S. Owner, must have a Computer Condition Code (CCC) "R" edited on the return if not already present, then route to Rejects for input of the CCC "R" .

BMF Unpostable Resolution

  1. The following documentation provides the unpostable resolution procedures and guidelines for all Business Master File (BMF) cases, i.e., Unpostable Codes (UPC) in the 301 through 499 range.

  2. Unused BMF unpostable codes are "reserved" .

  3. When an unpostable condition is not caused by an obvious error, such as a transcription or coding error, research is required. The most common research tools available to the Submission Processing Campus are CC BMFOL/MFTRA, CC NAMEE, CC TXMOD, CC ENMOD, CC SUMRY, CC UPTIN, IDRS Computer (MCC) Transcripts, Computer Fast Prints, the Closed Register or Listing and various Unpostable listings. See IRM 3.12.279.17, Research Information, Methods, and Tools.

  4. When an unpostable TIN is determined, using information found on UPTIN, verify the correct TIN on CC INOLE.

  5. In order to prevent repeat unpostable conditions and to provide better service to the taxpayer, before releasing an unpostable condition, review the account to ensure the Name Control, TIN, Filing Requirements and Fiscal Year-Month are correct. Utilize Document 7071-A, BMF Name Control Job Aid, to properly determine correct name line and/or name control for unpostable returns/documents. Furthermore, check the account against the unpostable document for correct payment and credit application, including any credit elects from the unpostable tax period. If the unpostable document is an original return for the unpostable tax period, it should be reviewed for the presence of a correct Computer Condition Code to generate the credit elect.

  6. Occasionally the system does not close cases that are identified as "Auto-Closed" (URC 2). This occurs when the record does not contain a significant IDRS employee number. These cases will have to be manually closed with a URC 2 if the employee number is available.

  7. If sufficient instructions are not provided within this manual to resolve the unpostable condition contact your lead, Technical Advisor and or Management Staff Analyst for assistance with resolution. Contact with Headquarters may be required in order to resolve the condition.

  8. An entity may indicate it is a Limited Liability Company with any of the following abbreviations LLC, LC, LP, or LLP after their business name. If you receive these types of unpostables with LLC, LC, LP, LTD or LLP treat as a Limited Liability Company.

UPC 301 Reason Code (RC) 1 Account Not Present

  1. UPC 301 Reason Code 1 condition occurs when an input (non-generated) transaction coded other than 000, 019, 141, 142, 650 (Doc Code 19 (EFTPS)) for MFT 01/03/14/16, TC 990, 991, 992, 993, 996, or other than a TC 150 (with entity information addressing a Form 706, U.S. Estate Tax Return, and Form 709, United States Gift (and Generation -Skipping Transfer) Tax Return, module) failed to match on TIN with an account on the BMF.

    Note:

    An Electronic Filed Form 1041, U.S. Income Tax Return for Estates and Trusts, with an incorrect Employer Identification Number (EIN) must also address the Name Control when sending the Letter 147C.

UPC 301 RC 1 Doc Code 78, 14, 49, and 77

  1. UPC Resolution 301:

    IF THEN
    Doc Code 78, GUF Auto Closed URC D.
    Doc Codes 14, 49, and 77 GUF Auto-Close URC D. Exception: Do not delete TC 460.

UPC 301 RC 1 Doc Code 52 (TC 370)

  1. UPC 301 Resolution RC 1 Doc Code 52 (TC 370):

    IF AND THEN
    Research shows a pending TC 000: Form 3413, Transcription List (Account Transfer-In), is blocked in the 900–999 series, Release using URC 0.
    Research shows a pending TC 000: Form 3413, Transcription List (Account Transfer-In), is blocked in the 000–899 series, Release using URC 8 and request Rejects renumber in 900–999 series.
    Research shows a better EIN on Doc. Code 52: Blocked in the 900–999 series Release using URC 6 and correct the EIN and name control when necessary. Send Letter 147C if required.
    Research shows a better EIN on Doc. Code 52: Blocked in the 000–899 series, Release using URC 8 and request Rejects renumber to the 900–999 series.
    A better EIN is not found on Doc. Code 52, Complete name is available, Input TC 000 blocked in 900–999 series, release using URC 0.
    A better EIN is not found on Doc. Code 52 Complete name is available, Input TC 000 blocked in 000–899, Release using URC 8 and request Rejects to renumber in 900–999 series.
    A better EIN is not found Complete name is not available, Release using URC 2 and route to originator.

UPC 301 RC 1 Doc Code 51 (TC 370)

  1. UPC 301 Resolution RC 1 Doc Code 51 (TC 370) - Research for a better EIN:

    IF THEN
    A better EIN is found, Release using URC 6 and correct the EIN and name control when necessary.
    Unable to locate a better EIN and/or no record, Contact the initiator and correct accordingly.

UPC 301 RC 1 MFT 51/52 (TC 460/670)

  1. UPC 301 Resolution RC 1 MFT 51/52 (TC 460/670) - Research for a pending TC 000 or subsequently established account (Timing):

    IF AND THEN
    The account has been established or there is a pending TC 000,   Release using URC 0.
    No pending TC 000, research for a better SSN. A better SSN is found with a "V" or "W" suffix, Release using URC 6 and correct the SSN and name control when necessary.
    There is no pending TC 000, and a better SSN is not found The document is MFT 52 containing a complete name, Input TC 000, including the Date of Death (DOD) for MFT 52. Release using URC 0 and cycle as necessary. If the complete name is present and the Date of Death (for MFT 52) or address (for MFT 51/52) is not available, use the taxpayer's last known address and tentative Date of Death (based on the Return Received Date). If it is a TC 150 establish DOD as 15 months prior to the transaction date or if it is a TC 650/670 establish DOD 9 months prior to the Payment Received Date.

    Note:

    For additional information on taxpayer's last known address see Subsection IRM 3.13.2.3.3, Updating BMF Addresses in IRM 3.13.2, BMF Account Numbers.

    There is no pending TC 000, a better SSN is not found The document is MFT 51 containing a complete name Input TC 000, including MFT and filing year. Release using URC 0 and cycle as necessary. If the complete name is present and the Date of Death (for MFT 52) or address (for MFT 51/52) is not available, use the taxpayer's last known address and tentative Date of Death (based on the Return Received Date). If it is a TC 150 establish DOD as 15 months prior to the transaction date or if it is a TC 650/670 establish DOD 9 months prior to the Payment Received Date.

    Note:

    For additional information on taxpayer's last known address see Subsection IRM 3.13.2.3.2, Updating BMF Addresses in IRM 3.13.2, BMF Account Numbers.

    None of the above apply, The unpostable is a TC 460, Release using URC D.
    None of the above apply, The unpostable is a TC 670, Release using URC 8 and request Rejects to forward the payment to Unidentified.

UPC 301 RC 1 MFT 51/52 (TC 678)

  1. UPC 301 Resolution RC 1 MFT 51/52 (TC 678) Credit for Treasury Bonds - Research for a pending TC 000 or subsequently established account (Timing): :

    IF AND THEN
    TC 000 is found,   Release using URC 0.
    There is no pending TC 000, research for a better SSN A better SSN is found with a "V" or "W" suffix, Release using URC 6.
    There is no pending TC 000, a better SSN is not found The document is MFT 52 containing a complete name, Input TC 000, including MFT and the Date of Death. Release using URC 0 and cycle as necessary.
    There is no pending TC 000, a better SSN is not found The document is MFT 51 containing a complete name Input TC 000, including MFT and filing year. Release using URC 0 and cycle as necessary
    The complete name line and Date of Death is not available request the CR-15 (Certification of Deposit) from Accounting. After the CR-15 is received, and a better SSN is found with a "V" or "W" suffix, Release using URC 6 to the correct SSN.
    The complete name line and Date of Death is not available request the CR-15 (Certification of Deposit) from Accounting. After the CR-15 is received, and the document contains a complete name, Input TC 000, including the Date of Death. Release using URC 0 and cycle as necessary.

    Note:

    If the complete name is present and the Date of Death or address is not available, use the Campus address and tentative Date of Death (based on the Return Received Date). If it is a TC 150 establish DOD as 15 months prior to the transaction date or if it is a TC 650/670 establish DOD 9 months prior to the Payment Received Date.

UPC 301 RC 1 (TC 960) MFT 00 Tax Period 000000

  1. UPC 301 Resolution RC 1 (TC 960) MFT 00 Tax Period 000000 - Auto- close, URC 2 to the Centralized Authorization File Unit (CAF).

UPC 301 RC 1 MFT 17

  1. Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests, was previously processed as a Non-Master File return. Effective January 01, 2006, Form 8288 was processed to the Business Master File (BMF) under MFT 17. The earliest tax period that can be processed to the BMF is tax period ending December 31, 2005, with a Date of Transfer of December 13, 2005 or later. Form 8288 is known as an ad hoc return. This means that each return is filed to reflect a particular transaction and not as a general summary of a year’s income, etc. Because of this there is no filing requirement (on CC INOLE) and is never considered (or coded) as a final return. The Form 8288 identifying number may need to be established on the BMF and can be any of the following.

    1. A U.S. individual must use their Social Security Number (SSN).

    2. Corporations, estates, or trusts must use their Employer Identification Number (EIN).

    3. A non-resident alien filing a U.S. tax return and not eligible for a social security number must use their Individual Taxpayer Identification Number (ITIN). If the individual does not already have an established ITIN on the individual master file (IMF) then, an Internal Revenue Service Number (IRSN) must be assigned. See IRM 3.13.5, Individual Master File (IMF) Account Numbers, for the Internal Revenue Service Number (IRSN) format.

    Note:

    Refer below for TIN types:

    0 Valid SSN (V)
    1 Invalid SSN (W)
    2 EIN
    3 Dummy TIN
    4 Taxpayer Representative Number
    5 Integrated Test Facility Documents
  2. The name and TIN on Line 1 of Form 8288 must be for the same entity, and must match the name of the Withholding Agent listed in box 1 of Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests, otherwise, follow the instructions below:

    Note:

    Use the entity/name of the buyer or transferee.

    IF AND THEN
    a. An SSN is provided and the filer is a U.S. individual, After researching IDRS for an established account on the BMF and no previously assigned number or pending TC 000 is located for MFT 17, Input TC 000 to establish the SSN for MFT 17. Release using URC 0 and cycle as necessary. Establish the SSN in the following format: (nnn-nn-nnnnV). The V after the SSN indicates it is a valid SSN on the BMF.

    Note:

    Never assign a filing requirement to Form 8288. CC BNCHG will not take unless you enter "17" in the MFT field. See IRM 3.22.261.17(3), Taxpayer Identifying Numbers (TIN).

    b. An EIN is provided and the filer is a corporation, estate, or trust, After researching IDRS for an established EIN a better EIN is found, Release using URC 6. Correct the EIN and name control when necessary.
    c. An EIN is provided and the filer is a corporation, estate, or trust, After researching IDRS for an established EIN a better EIN is not found, Input TC 000 to establish on the BMF. Release using URC 0 and cycle as necessary. See IRM 21.7.13, Assigning Employer Identification Numbers (EIN).
    d. The filer is a nonresident alien individual who is not eligible for a social security number and must use their IRS individual taxpayer identification number (ITIN). After researching IDRS the ITIN number is found on IMF but their IRS Individual Taxpayer Identification Number (ITIN) is not established on the BMF. Input TC 000 to establish the ITIN on the BMF. Release using URC 0 and cycle as necessary.

    Note:

    An ITIN number always begins with a "9" .

     

    Note:

    The fourth and fifth numbers within an ITIN are assigned in the following unique numbering ranges:
    "50-65"
    "70-88"
    "90-92"
    "94-99"

     

    Example:

    9nn-7n-nnnn or 9nn-8n-nnnn.

    See IRM 3.13.5, IMF Account Numbers.

    e. The filer does not have an SSN, EIN, or ITIN, After researching IDRS an IRS Internal Revenue Service Number (IRSN) is located on the IMF but not on the BMF, Input TC 000 to establish the IRSN on the BMF. Release using URC 0 and cycle as necessary. Establish the IRSN in the following format:
     

    Example:

    9nn-29-nnnnW



    The valid IRSN the Ogden Submission Processing Campus will use is IRSN 9nn-29-nnnnW. The W after the IRSN means it is an invalid IRSN on the BMF. The IRSN will always begin with the digit "9" . The fourth and fifth digits of the IRSN must contain the valid Internal Revenue Service Campus (IRSC) Codes or the expansion numbers listed in IRM 3.13.5, IMF Account Numbers, and in IRM 21.7.13, Assigning Employer Identification Numbers (EIN).
    f. A trust name is listed on the with an individual's SSN in the TIN field,   Edit the information from the Withholding Agent box on Form 8288-A to Line 1 of Form 8288 and the TIN from the Withholding Agent TIN box to Line 1 of Form 8288. Use the instructions provided within this table to resolve the unpostable condition.
    g. Both the Form 8288 and Form 8288-A , Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests, indicate a Trust as the type of entity, Research for an EIN, Follow instructions in b. or c. above.
    h. The name on the Form 8288 is not listed on the Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests,   Use the information from Line 1 of Form 8288 and follow instructions within the table for resolving the unpostable.

    Note:

    The FIRPTA unit is responsible for perfecting the Form 8288-A.

    i. The name on the Form 8288 indicates a trust, The SSN on Form 8288-A is an individual with the same last name

    Example:

    Flower Living Trust listed on Form 8288 and April Flower listed as the individual on Form 8288-A research IDRS for an established number for the trust. If an EIN is found for the Trust,

    Release using URC 6. Correct the EIN and name control when necessary.
    j. The name on the Form 8288 indicates a trust, The identifying number on the Form 8288 is the same as the SSN on the Form 8288-A. Research does not find a number for the trust but the SSN is established on the IMF but not the BMF, Edit the name and TIN from the Withholding Agent box on Form 8288-A to Line 1 of Form 8288. Follow procedures in a. above.
    k. Code and Edit edits out Trust on Part 1, Line 1 of Form 8288, Research finds the TIN from the Withholding Agent box on Form 8288-A is the same as the SSN found on the IMF but not established on the BMF, Follow procedures in a. above.

UPC 301 RC 1 MFT 34, 36, 37, 44, 46, 48, 50, 67 (EO)

  1. Form 8871, Political Organization Notice of Section 527 Status, and Form 8872, Political Organization Report of Contributions and Expenditures - See IRM 3.12.278, EO Unpostable Resolution.

UPC 301 RC 1 TC 980, 982, 984, and 986

  1. UPC 301 Resolution RC 1 TC 980, 982, 984, and 986 (CAWR) - Auto-close, URC 2 to CAWR.

UPC 301 RC 1 All Others (Except 74 and 76)

  1. UPC 301 Resolution RC 1 All Others (Except 74 and 76) -

    Note:

    Coordination with Entity Unpostables involves dedicating a specific basket or bin to place unpostable cases requiring special assistance (expedite process). These unpostables must be reviewed by Entity Unpostables within an established timeframe. No more than three business days can elapse, before the unpostable case is returned to the Unpostable Function to prevent aged unpostables.

    Note:

    Do not establish an EPMF account (EIN with a P) to the BMF. Route to EPMF Entity.

    Note:

    Do not establish an EO entity, LLC, Form 945 or Form 1120S. Coordinate with the appropriate function.

    IF AND THEN
    a. An unpostable document was processed to the wrong Master File,   Release using URC 8. Request Rejects renumber and re-input the document to the correct Master File.
    b. The Unpostable is a payment research all available sources. Unable to obtain sufficient information to identify, Release using URC 8. Request Rejects to forward the document to Unidentified if the received date of the payment is less than one year old. If the payment is more than one year old request Rejects forward the payment document to Excess Collections.
    c. The transaction is a preprinted return which obviously was filed for information only

    Example:

    Statement that the return is being filed under another TIN or final return with no tax liability,

      Release using URC 8, request Rejects to cancel the DLN and send the return to files to re-file the document in the original block for audit trail purposes.
    d. The unpostable is a Form 945 , Annual Return of Withheld Federal Income Tax, and the entity is found with a different EIN, The EIN used by the taxpayer is found on CC NAMEB or CC NAMEE, Do not correct the EIN. Coordinate with EP Entity to have TC 000 input. Release using URC 0 after input of TC 000.
    e. The entity is found with a different EIN, The EIN is established on Master File and the filing requirement and fiscal year month match the unpostable document, Release using URC 6 and correct the EIN and name control, when necessary. Send Letter 147C if required.
    f. The exact entity is found on CC NAMEB or CC NAMEE The EIN is not established on Master File, Input TC 000. Release using URC 0 and cycle as necessary. See IRM 21.7.13, Assigning Employer Identification Numbers (EIN), for instructions on how to input a TC 000.
    g. Unable to locate a valid EIN after THOROUGHLY researching the case,   Coordinate with Entity for correction. (Possible new EIN)
    h. The unpostable document does not contain enough data to establish the account on the BMF (name and address),   Release using the appropriate URC and route to the appropriate function listed below:
    Area Office Document-Release using URC 2 to originator.
    Payment-Release using URC 8 and route to Unidentified.
    Doc Code 54-GUF Auto-Close (URC 2) to originator.
    Doc Code 51 - Release using URC 8 to NMF.
    A generated transaction, release using URC D.
    ALL OTHERS -Release using URC 2 to originator.
    i. Potential Statute case,   Route to Statute.

    Caution:

    Requires expedite processing.

    j. Potential Credit interest case, Requires expedite processing. If there was a great disservice to the taxpayer or case meets other manual refund criteria, URC 8 to Rejects for manual refund per IRM 21.4.3, Returned Refunds/Release.

UPC 301 RC 1 Form 3520 (OSPC Only)

  1. UPC 301 Resolution RC 1 Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts.

  2. Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts:

    • Individuals using a Social Security Number (SSN),

    • Individuals using an Individual Taxpayer Identification Number (ITIN) who do not qualify for a SSN,

    • Estates, Trusts, Partnerships, and Corporations using an Employer Identification Number (EIN).

    Note:

    See IRM 3.21.19, Foreign Trust System, for additional information.

  3. Use the table below to research and establish an identification number on the Business Master File for Form 3520.

    Note:

    Edit CCC "R" on Form 3520 if not already present. Input URC 8 and route to Rejects once the account is established.

    IF AND THEN
    An SSN is provided on Form 3520, After researching IDRS for an established account on the BMF and no previously assigned number or pending TC 000 is located for MFT 68, Input TC 000 to establish the SSN for MFT 68. Release using URC 0 and cycle as necessary. Establish the SSN in the following format: (nnn-nn-nnnnV).
    An EIN is provided on Form 3520, After researching IDRS for an established EIN an EIN is located on EPMF (XX-XXXXXXXP). Reassign to Entity Unpostables to establish the EIN.
    An EIN is provided on Form 3520 and the filer is a corporation, estate, trust, or partnership, After researching IDRS for an established EIN a better EIN is found, Release using URC 6. Correct the EIN and name control when necessary.
    An EIN is provided on Form 3520 and the filer is a corporation, estate, trust, or partnership, After researching CC NAMEE /NAMEB for an established EIN a better EIN is not found, Reassign to Entity Unpostables to assign a new EIN.
    An ITIN is provided on Form 3520,

    Note:

    The filer is a resident or non-resident alien individual who is not eligible for a social security number and an ITIN must be used,

    After researching IDRS the ITIN number is found on IMF but their ITIN is not established on the BMF, Input TC 000 to establish the ITIN on the BMF, Release using URC 0 and cycle as necessary.

    Note:

    The fourth and fifth numbers within an ITIN are assigned in the following unique numbering ranges:
    "50-65"
    "70-88"
    "90-92"
    "94-99"

     

    Example:

    9nn-7n-nnnn or 9nn-8n-nnnn.

    See IRM 3.13.5, IMF Account Numbers.

    The Form 3520 filer does not have an SSN, EIN, or ITIN, After researching IDRS an ITIN is located on the IMF but not on the BMF, Input TC 000 to establish the ITIN on the BMF invalid segment (W). Release using URC 0 and cycle as necessary.
    The Form 3520 filer has an SSN listed, It was transcribed as an EIN, URC 8, request Rejects to correct the TIN to a SSN with a V or W.
    The Form 3520 filer has an EIN listed, It was transcribed as a SSN, URC 6 and change the TIN TYPE indicator to a 2.

UPC 301 RC 1 Form 3520-A (OSPC Only)

  1. UPC 301 Resolution RC 1 Form 3520-A, Annual Return of Foreign Trust With a U.S. Owner.

  2. Use the table below to research and establish an identification number on the Business Master File for Form 3520-A:

    Note:

    Form 3520-A must be processed with an EIN.

    Note:

    Edit CCC "R" on Form 3520-A if not already present. Input URC 8 and route to Rejects once the account is established.

    IF AND THEN
    An EIN is provided on Form 3520-A and the filer is a trust, Research shows a pending TC 000, Release using URC 0.
    An EIN is provided on Form 3520-A and the filer is a trust, Research shows a better EIN is found for MFT Code 42, Release using URC 6 and correct the EIN and name control when necessary.
    An EIN is provided on Form 3520-A and the filer is a trust, Research shows there is no pending TC 000, and a better EIN is not found, Reassign to Entity Unpostables.
    A Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, is filed for Form 3520-A, Research for EIN Close with URC D and re-input TC 460. If EIN is not found, reassign to Entity Unpostables.

UPC 301 RC 2

  1. UPC 301 Reason Code 2 condition occurs when a TC 150 for Form 706 series, (MFT 52) or Form 709 (MFT 51) attempts to establish an account and the input TC 150 does not contain significant name line and mailing address data. .

  2. UPC 301 Resolution RC 2 -

    IF AND THEN
    A better SSN is found, TIN type is "V" or "W" , Release using URC 6 to better SSN and Name Control if needed.
    A better SSN is not found, Return contains complete name and address, Input TC 000, release using URC 0 and cycle as necessary.
    A better SSN is not found, Return does not contain complete name and address Coordinate with Entity for resolution of the unpostable.

UPC 301 RC 3

  1. Reason Code 3 occurs when a TC 650 (Doc Code 19 (EFTPS)) for MFT 01, 03, 14, or 16 does not match on TIN and has re-sequenced for 4 cycles, or the 23C Date is equal to or later than the end of the tax period.

  2. UPC 301 Resolution RC 3 - A Profit Sharing or Pension Plan Trust may have a different number from the corporation.

    IF AND THEN
    Another EIN is found after researching for the exact entity, It is on Master File (MF), Release using URC 6, correct the EIN and name control, when necessary.
    Return (TC 150) is already posted to the new module The tax module contains a quarterly penalty, Input CC STAUP for 15 weeks. Request Accounts Management to verify the quarterly penalty.
  3. If unable to resolve, request contact information from Accounting (EFTPS Unit) -

    IF AND THEN
    The EIN is invalid, Research does not identify a new EIN, Reassign to Entity Unpostables.
    EIN is valid and the exact entity is found on CC NAMEE and/or CC NAMEB, The contact information contains a complete name and address, Input TC 000. Release using URC 0, and cycle as necessary.
    Complete name and address is not available,   Release using URC 8, request Rejects to forward payment to Unidentified, include contact information sheet.

UPC 301 RC 4 (CSPC Only)

  1. UPC 301 Reason Code 4 condition occurs when a TC 150 for MFT 52 ( Form 706, U.S. Estate Tax Return) with (name and address) entity information attempting to post and:

    1. The Date of Death is zeros; or

    2. The Date of Death is greater than the current 23C (assessment) date.

    Note:

    If the Date of Death is not available use the tentative Date of Death which is 15 months prior to the return received date. Refer to IRM 3.12.279.51, UPC 301 Reason Code (RC) 1 Account Not Present, for instructions on how to establish MFT 52.

  2. UPC 301 Resolution RC 4 - Release using URC 8 and request Rejects to correct the Date of Death.

UPC 301 International All Resolutions - (Ogden)

  1. The following procedures are for a Form 1120-FSC, Foreign Sales Corporation, processed at the Ogden Campus only.

    Note:

    Form 8279 is an election filed by the taxpayer prior to October 1, 2000, to request approval to file as a Form 1120-FSC, Foreign Sales Corporation. A copy of the approved election must be submitted when the taxpayer files his Form 1120-FSC, Foreign Sales Corporation. Once the election is made, it remains in effect until terminated or revoked. Form 8279 must be processed with an International EIN and can be identified as a TC 060 on CC ENMOD.

    See IRM 3.13.2, BMF Account Numbers.

  2. Form 1120-FSC, Foreign Sales Corporation, with Form 8279 attached.

    IF AND THEN
    The unpostable EIN is determined to be the correct International EIN,   Reassign to Entity Unpostables
    The unpostable EIN is determined to be incorrect Research provides the correct EIN, research ENMOD and/or BMFOL for the posting of a TC 060. If a TC 060 is located, Release using URC 6 to the correct International EIN.
    The unpostable EIN is determined to be incorrect Research provides the correct International EIN, research ENMOD and/or BMFOL for the posting of a TC 060. If a TC 060 is not located , Reassign to Entity Unpostables.
    The unpostable EIN is determined to be incorrect Research cannot provide the correct International EIN, Reassign to Entity Unpostables for assignment of an International EIN and posting of the TC 060.
  3. Form 1120-FSC, Foreign Sales Corporation, without Form 8279 attached - If the Form 8279 is not attached and research fails to provide a posted TC 060, coordinate with Entity.

UPC 302 RC 1 TC 000 Present and Account is Already Established

  1. UPC 302 RC 1 occurs when a TC 000 attempts to post and the account is already established.

  2. The following table provides instructions for resolving UPC 302 conditions:

    Reason Code Condition Resolution
    1 Occurs when a TC 000 has matched a TIN on the BMF. All cases with Doc Code 80, and blocking series 990–999 (Category V–1) Auto-Closed URC 2 to Area Office.
    302's - All other   GUF Auto-Closed URC 2 to originator.

UPC 303 RC 1 Name Control Mismatch

  1. Reason Code 1 occurs when a transaction with Doc Codes other than 80/81 (except TC 150 for MFT 36) /50/53/63 other than TC 001, 019, 14X, 650 (Doc Code 19) for MFT 01, 03, 14, 16, 796, 90X, 99X failed to match on three out of four positions (using Proximal Method) of the entity Name Control, Old Name Control, three out of the four left-most non-blank positions of the entity Sort Name Line, or the four left-most significant characters of the first three words of the entity Primary Name Line and then the Sort Name Line.

    Note:

    An electronic filed Form 1041, U.S. Income Tax Return for Estates and Trusts, with an incorrect Employer Identification Number (EIN) must also address the Name Control when sending the Letter 147C.

  2. UPC 303 Resolution RC 1 -

    IF THEN
    TC 980, 984, and 986 with MFT 88 (CAWR), Auto-close, URC 2 to CAWR.
    Doc Codes 14, 49, 77 (other than an extension), or 78 (Misc. Doc. Codes), Auto-close URC D.
  3. Compare the transcribed name control with the name as shown on the Master File for discrepancies. If spelling error, transcription error, or incorrect name control, use the following table to resolve the Unpostable condition.

    IF THEN
    A transcription error on the EIN is determined, Release using URC 6 to correct the EIN.
    A Transcription error on the name control, Release using URC A and post to Master File.
    The account was established with the incorrect name control on a Trust or Estate,

    Note:

    Anytime an account is established with the incorrect name control it must be corrected to prevent repeat unpostables.

    Correct the name control on Master File. Refer to Document 7071-A, BMF Name Control Job Aid. Release using URC 0 and cycle as necessary.
    No transcription error, Release using URC 0.
  4. If the return or document contains evidence of a name change or the established name line was misspelled, research CC INOLE and/or ENMOD and process as follows:

    Note:

    DO NOT INPUT A NAME CHANGE IF THE FOLLOWING RULES APPLY:
    The Entity is a Limited Liability Company - Reassign to Entity Unpostables.
    The entity is an employee pension plan (EIN with a P).
    An EO Sub Section is present -
    Instructions for any Submission Processing Campus Unpostable Unit other than Ogden. Complete Parts I, II, and III of Form 4442 . Indicate Expedite at the top of the Form 4442 . In Part III Section C state Please provide closing instructions. Email the Form 4442 to the EO Entity Lead at the OSPC.≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ,
    Entity EO Unpostables,
    Attention: EO Entity Lead.
    A response will be received within 2 - 3 business days.
    Instructions for the Ogden Unpostable Submission Processing Campus Only - coordinate the case with the Entity EO Unpostable Unit.

    Note:

    DO NOT INPUT A NAME CHANGE IF A SIGNATURE IS NOT PRESENT ON THE FORM. Refer to IRM 3.12.279.29, Correspondence Guidelines and Unprocessable Information and Procedures.

    IF THEN
    An EO subsection is present, Reassign to EO Entity Unpostables.
    An EP Plan (MFT 74) is present, Reassign to EP Entity Unpostables.
    A TC 013 is pending, Release using URC 0.
    A TC 013 is not pending, and the return has a signature, Input TC 013. Release using URC 0 and cycle to post after the TC 013.
  5. Use the following table to resolve UPC 303 Resolution RC 1 when Category L7 (credit transfers) unpost:

    IF AND THEN
    Doc Code 24, 34, 48 or 58, Possible tie in is found, Release using URC A.
    Doc Code 24, 34, 48 or 58, A possible tie in is not found, Take the necessary action to reverse the transaction. Release using URC 2, 6 or 8 and notify the originator of the action taken.
  6. Use the following table to resolve UPC 303 Resolution RC 1 when there is an EIN issue which caused the transaction to unpost:

    IF AND THEN
    A better EIN is found, The filing requirement and Fiscal Year Month match the unpostable document, Release using URC 6 and correct the EIN and name control, when necessary. Send Letter 147C if required.
    A better EIN is not found, The filing requirement and Fiscal Year Month match the unpostable document, Release using URC A.
    A better EIN is not found, No possible tie-in is found, Reassign to Entity Unpostables.

UPC 303 RC 2

  1. Reason Code 2 occurs when a TC 650 quarterly payment (Doc Code 19) for MFT 01/03/14/16 not matching on three out of four positions (using the Proximal method) of the Entity name control. Cross Reference Name Control, or the entity sort name line reference field, or the four left-most significant characters of the first three words of the entity primary name line and then the sort name line which has re-sequenced 4 cycles or the 23C Date is equal to or later than the end of the tax period

  2. UPC 303 Resolution RC 2 - Compare the transcribed name control with the name as shown on the Master File for discrepancies and process as follows:

    Note:

    For additional information on EFTPS payments refer to IRM 3.12.279.48.1

    IF AND THEN
    The unpostable is a spelling or transcription error in the name control.   Release using URC A.
    No transcription error, request contact information, When the contact information is received, Check for transcription errors, or change in name and/or Taxpayer Identification Number (TIN).
    The unpostable is a transcription error in the Employer Identification (EIN),   Release using URC 6 with corrected information.
    The contact information indicates the entity is an Limited Liability Company (LLC), Exempt Organization (EO) or Employee Plan (EP) entity,   Reassign to the appropriate function.
    No evidence of transcription error is found,   Research for a better EIN, if found release using URC 6
    Unable to resolve, The contact information shows a complete name, address and a telephone number, Attempt to contact the taxpayer via the telephone number provided to resolve the discrepancy or use Letter 320C or Letter 21C. When reply is received from the taxpayer, release per taxpayers request.
    Unable to resolve The complete name and address is not available, insufficient information is received from the taxpayer or no reply, Release using URC 8 request Rejects to forward the payment to Unidentified.

UPC 303 RC 3

  1. Reason Code 3 occurs when a transaction (except TC 150 for MFT 36) with Doc Code 80, 81, 50, 53, or 63 other than TC 001, 019, 14X, 796, 90X, or 99X but coded greater than 000 failed to match on all four position of the alpha name control, Cross Reference Name Control (i.e., Old Name Control), or the four left-most non-blank positions of the entity sort name line field, or the four left most significant characters of the first three words of the entity primary name line and then the sort name line.

  2. UPC 303 Resolution RC 3 - Compare the transcribed name control with the name as shown on Master File for discrepancies.

    Note:

    DO NOT input a name change if INOLE or ENMOD indicates an Exempt Organization (EO) Subsection. Reassign to EO Entity Unpostables.

    Note:

    DO NOT INPUT A NAME CHANGE On A Limited Liability Company. Reassign to Entity Unpostables.

    Note:

    The entity is an employee pension plan (Employer Identification Number (EIN) with a P). Reassign to Employee Plan (EP) Entity

    IF AND THEN
    A. Spelling or transcription error,   Release using URC A.
    B. Document contains evidence of a name change or established name line was misspelled, a. Check Integrated Data Retrieval System (IDRS) for a pending TC 013. If TC 013 is pending, Release using URC 0 and cycle as necessary.
    Document contains evidence of a name change or established name line was misspelled, b. Check IDRS for a pending TC 013. If no TC 013 is pending, Input a name change to correct the Master File. Release using URC 0 with bypass indicator, or cycle as necessary.
         
    Unable to correct,   Release using URC 2 and route to originator.

UPC 303 International Resolution

  1. Research for a possible tie-in (something on the entity module ties in with the unpostable) between all names available.

    IF THEN
    Tie-in is found, Correct the name control, release using URC A.
    A tie-in is not found research for a better EIN Release using URC 6.
    unable to locate a better name and/or EIN, Reassign to Entity Unpostables for assignment of a new EIN.
  2. Otherwise, follow regular non - International procedures.

UPC 304 Input Transaction Attempts To Establish A Tax Module With A Prior Tax Period

  1. Unpostable Code 304 unposts when an input transaction attempts to establish a tax module with a tax period prior to those shown in the table below:

    Reason Code MFT Tax Period Resolution
    0 MFT 68 (Doc Code 83) 199701 Auto-close, URC 8 to Rejects, nullify area code 41.
    0 MFT 08 (Doc Code 29) 200412 Auto-close, URC 8 to Rejects, nullify area code 41.
    0 MFT 17 ( Doc Code 40) 200511 If TC 150 for MFT 17 and the tax period is 200511 or prior release using URC 8. Request Rejects cancel the Document Locator Number (DLN) of the Form 8288, U.S. Withholding Tax Return for Disposition by Foreign Persons of U.S. Real Property Interests, and reinput to NMF with Tax class 6, Document code 41, Blocking series 300-319, MFT 17, Abstract number 208 and TXPD (use date of sale). If TC 610 or 670 for MFT 17 and the tax period is 200511 (Date of payment is 12-12-2005 or prior) release using URC 1 nullify area code 41 to Accounting NMF Unit (CSPC only). CSPC will process in accordance with IRM 3.17.46, Automated Non-Master File Accounting.
    0 84 200912 If Form 8703, Annual Certification of a Residential Rental Project, for MFT 84 and the tax period is 200911 or prior release using URC 8. Request Rejects cancel the DLN.
    0 85 200902 If Form 8038-CP for MFT 85 and the tax period is 200901 or prior release using URC 8. Request Rejects cancel the DLN.
    0 86 200812 If Form 8038-CP, Credit for Qualified Bonds Allowed to Issuer, for MFT 85 and the tax period is 200811 or prior release using URC 8. Request Rejects cancel the DLN.
    1 61, 62, 63, 64 196107 All Doc Code 54's and 47's, are GUF Auto-Close URC 2 to originator.
    For TCs 474, 590, 591, 593, 594, 595 or 599 GUF Auto-Close URC 2 to Originator.
    All others, auto-close, URC 8 to Rejects, nullify area code 41.
    2 51 (Doc Code 09) 196112 Auto-close, URC 8 to Rejects, nullify area code 41.
    2 47 (Doc Code 61) 200007 Auto-close, URC 8 to Rejects, nullify area code 41.
    2 49 (Doc Code 62) 20007 Auto-close, URC 8 to Rejects, nullify area code 41.
    3 01 (Doc Code 41),
    03 (Doc Code 20),
    04,
    09, (Doc Code 11),
    196203 Auto-close, URC 8 to Rejects, nullify area code 41.
    4 02, 05, 06, 10, 11, 33, 34 196112 Auto-close, URC 8 to Rejects, nullify area code 41.
    5 37, 44, 50 197001 Auto-close, URC 8 to Rejects, nullify area code 41.
    6 36, 67 197012 Auto-close, URC 8 to Rejects, nullify area code 41.
    6 14 200612 If a TC 150 ( Form 944, Employer's ANNUAL Federal Tax Return), for MFT 14 is received for 200611 or prior the taxpayer is required to file a Doc Code 41, MFT 01. URC 8 to Rejects and advise Rejects to issue a Letter 4086C to the taxpayer explaining an incorrect return was filed. The taxpayer is required to file a Form 941, Employer's Quarterly Federal Tax Return.
    7 58 197007 Auto-close, URC 8 to Rejects, nullify area code 41.
    8 60 (Doc Code 95) 195607 Auto-close, URC 8 to Rejects, nullify area code 41.
    Doc Code 54 GUF Auto-Close URC 2 to originator
    8 40 (Doc Code 01 200401 Auto-close, URC 8 to Rejects, nullify area code 41.
    9 12 (Doc Code 25)
    79
    198512
    201409
    Auto-close, URC 8 to Rejects, nullify area code 41.
    9 43 (Doc Code 17 or 19) 201412 URC 8 to Rejects, request Rejects to forward to Unidentified with remarks to refund IRC 4980H Employer Responsibility Payment (taxpayer filed to early).

UPC 305 RC 1 Federal Tax Deposit Discrepancy

  1. Reason Code 1 occurs when an input TC 150 or 620 which meet specified conditions. (MCC Transcripts will be generated for these cases) - Missing payments-MFT 02, 33, or 34 with condition code "F" , "Y" or "W" attempted to create a tax module and there is a tax module with a credit balance for a later tax period ending.

  2. UPC 305 Resolution RC 1 - The resolution for Reason Code 1 consist of TC 150 Missing Credits, TC 150 Excess credits "F" Coded returns, TC 150 Excess Credits "Y" Coded Returns, and TC 620 Missing credits.

  3. UPC 305 Resolution RC 1 TC 150 Missing Credit(s) - Research IDRS, MCC transcripts and/or BMFOL/MFTRA for credit(s) claimed on the unpostable return.

    IF THEN
    Credit(s) is found, Transfer using Doc Code 34, except for 7XX transactions. If TC 7XX use Doc Code 24, 48 or 58. Input a TC 016 to match the FYM of the unpostable TC 150 if necessary. Release using URC 0 and cycle to post after credit(s) have posted.
    Credit(s) is not found, Release using URC 0, allowing taxpayer to be billed.
  4. UPC 305 Resolution RC 1 TC 150 Excess Credit(s) "F" Coded Returns - Research for a debit account using the following instructions:

    IF THEN
    Debit module is found, Transfer credit(s) and input TC 016 to match the FYM of the unpostable TC 150. Release using URC 0 to post and cycle as necessary.
    Debit module is not found, Request posted payment document(s).
  5. If credit(s) belongs to the taxpayer follow the instructions in the table below:

    IF Then
    Credit(s) is found for a different module or EIN, transfer credit(s), release using URC 0 to post and cycle as necessary.
    Credit(s) is found for unpostable module, Release using URC 0 allowing credit(s) to refund.
  6. If credit(s) do not belong to the taxpayer, research for a different EIN and follow the instructions in the table below:

    IF Then
    A different EIN is found, Transfer the credit(s). Release using URC 0 to post, and cycle as necessary.
    A different EIN is not found, Take the necessary action to transfer credit(s) to Unidentified. Input TC 570 and release using URC 0 to post and cycle as necessary.
  7. UPC 305 Resolution RC 1 TC 150 Excess Credit(s) "Y" Coded Returns -

    Note:

    When a module contains more credits than claimed by the taxpayer, a Q- freeze is established and a CP 267, Computation of Tax, (non-math error notice) is generated.

    IF AND THEN
    An excess credit is timely for a future period (New FYM),   Transfer credit(s). Input TC 016 for an FYM change, if necessary and release using URC 0 to post and cycle as necessary.
    Excess credit is not timely for the future period,   Request posted payment document.
    Credit belongs to the taxpayer; For unpostable module, Release using URC 0.
    Credit belongs to the taxpayer; For a different module, Transfer credit(s), release using URC 0 to post and cycle as necessary.
    Credit(s) do not belong to the taxpayer, research for a different EIN. A different EIN is found, Transfer the credits. Release using URC 0 to post and cycle as necessary.
    Credit(s) do not belong to the taxpayer, research for a different EIN. A different EIN is not found, Take the necessary action to transfer credit(s) to Unidentified. Input TC 570 and release using URC 0 to post and cycle as necessary.
  8. UPC 305 Resolution RC 1 (TC 620) Missing Credits - Research for a TC 053, 054, 055 or TC 090 to determine if a change of accounting period has been approved.

    Exception:

    No approval under § 1.442-1(b) is required, nor is Form 1128, Application To Adopt, Change, or Retain A Tax Year, under § 1.442-1(c) needed to be filed by a subsidiary corporation that has become a member of an affiliated group and is changing its tax year under § 1.1502-76 to be included in the filing of a consolidated return.

    IF THEN
    The taxpayer has an approved change of accounting period, TC 053, 054, or 055 is present on the account Coordinate with Entity Unpostables to verify and/or correct the FYM. If the FYM of the unpostable document is correct transfer credits if necessary and resolve using URC 0 and cycle as necessary. If the FYM of the unpostable document is incorrect transfer credits if necessary to the correct tax period. Release using URC 6 and cycle as necessary to post Extension to the correct tax period.
    No approval is required (see exception above), Coordinate with Entity Unpostables to verify and/or correct the FYM. If the FYM of the unpostable document is correct transfer credits if necessary and resolve using URC 0 and cycle as necessary. If the FYM of the unpostable document is incorrect transfer credits if necessary to the correct tax period. Release using URC 6 and cycle as necessary to post Extension to the correct tax period.
    There is no approved change of accounting period, Release using URC 6 to post the extension to the Master File period.

UPC 305 RC 2 and RC 3

  1. UPC 305 Condition Reason Code 2 occurs when a TC 610 (Doc Code 70 or 76) or 650/660/670/760 if directed to a tax module in 06, 10, or 12 status and posting would create a credit balance module of ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    See IRM 3.12.279.48, Electronic Federal Tax Payment System (EFTPS) and Credit Card/Direct Debit Payments, and IRM 3.12.279.48.1, EFTPS Unpostable - Payments (OSPC), for procedures for EFTPS payments.

    Exception:

    The following exceptions apply to UPC 305 RC 2:

    • TC 670 with check digits in the name control field

    • Transaction is a corrected UPC 305/333/360

    • TC 650 if directed to MFT 01/14 module in 06 status

    • Assessed module balance is debit even though module status is 10 or 12

    • Module status is 06 and TC 594/599 is posted subject to criteria listed in IRC Section 5.02(12)(z)

    • Total Module Balance including the input transaction amount is less than or equal to a posted unreversed TC 71X

    • TC 670 with document code 18

    • TC 670 with an amount equal to or less than an unreversed TC 606 previously posted to the module. See IRC Section 5.02(19) for generation of TC 607

    • TC 670 with an unreversed TC 420/424 posted to the module. Generate TC 570 per IRC Section 5.02(14)

    • TC 670 with an unreversed TC 706/796 posted within the previous 8 cycles

    • TC 670 with an unreversed TC 670 with same amount but different date posted within the previous 8 cycles

    • TC 670 with Designated Payment Codes: 05/15/16/17/18/19/20/21/27

    • TC 650/660 (document code 19 (EFTP) or TC 650/660 with Taxpayer Information Code zero which meets the transfer criteria to the FTD module per IRC Section 5.02(5)(c)2 and IRC Section 5.02(12)(z)

    • The input TC has significant UPC 305 Bypass Indicator with no TC posted which matches on TC, amount, and date

    • The input TC has significant TC 570 Indicator

    • The tax module being addressed has in effect any of the following freezes: -A, -F, R-, -R, -U, V-, -V

    • The input transaction is different in amount with a posted TC 706/736/756/796 by less than $10 (+ or -)

    • TC 670 with DPC 60

  2. UPC 305 Condition Reason Code 3 occurs when a TC 650/670/760 directed to modules in 21/22/23/56/58/60 status if dated later than period ending and posting would create a credit balance of ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    Exception:

    The following exceptions apply to UPC 305 RC 3:

    • TC 670 with check digits in the name control field

    • A secondary transaction is present

    • Transaction is a corrected UPC 305/333/360

    • TC 670 if unreversed TC 420/424 is posted to the module

    • TC 670 if document code 18

    • Total Module Balance including the input transaction amount is less than or equal to a posted unreversed TC 71X

    • TC 670 with an unreversed TC 706/796 posted within the previous 8 cycles

    • TC 670 with an unreversed TC 670 with same amount but different date posted within the previous 8 cycle

    • TC 650 (document code 19 (EFTP)) or TC 650 (Document Code 97) with Taxpayer Information Code zero which meets the transfer criteria to the FTD module per IRC Section 5.02(5)(c)2 and IRC Section 5.02(12)(z)3

    • The input TC has significant UPC 305 Bypass Indicator with no TC posted which matches on TC, amount, and date

    • The input TC has significant TC 570 Indicator

    • The tax module being addressed has in effect any of the following freezes: -A, -F, R-, -R, -U, V-, -V

    • TC 670 with Designated Payment Codes 05/15/16/17/18

    • The input transaction is different in amount with a posted TC 706/736/756/796 by less than $10 (+ or -)

    • A posted TC 582

    Note:

    See IRM 3.12.279.48, Electronic Federal Tax Payment System (EFTPS) and Credit Card/Direct Debit Payments, and IRM 3.12.279.48.1, EFTPS Unpostable - Payments (OSPC), for procedures for EFTPS payments.

  3. UPC 305 Resolution RC 2 and 3 - Credit Transfers - (L7 Category)

    IF AND THEN
    The unpostable is a Doc Code 34,   Release using URC 0.
    The unpostable is a Doc Code 24, 48 or 58, The debit side has posted, Release using URC 0.
    The unpostable is a Doc Code 24, 48 or 58, Both sides of the transfer are unpostable, Associate the cases. The debit can be corrected per the unpostable code, correct the debit and URC 0 the credit. If the debit can not be corrected, release both the credit and debit with URC 8 and notify the originator.
  4. UPC 305 Resolution RC 2 and 3 - All Others including L3 Category Most payments received involve a single payment for a single taxpayer's account. Occasionally, there may be multiple payments for a single account (Multiple payment) or a single payment may be designated for more than one account (Split payment).

  5. These payments are identified prior to processing and are coded with an M (Multiple) or S (Split). This information is identified and passed to the Remittance Transaction Research (RTR) System.

  6. The RTR Detail Screen can be researched for remittance information. See IRM 3.5.10 , Remittance Transaction Research (RTR) System. This screen contains the detailed information of each payment processed.

  7. The Detail Screen contains four sections. These include:

    • Payment information – includes Document Remittance Register Details and Endpoint Master Listing Information

    • Notes

    • Multiple/Split information

    • Images

  8. The table below provides additional instructions for resolving the unpostable condition:

    Note:

    If unable to release using URC 6 and there are no freeze codes to prevent credit from offsetting, release using URC 0. If there is a freeze code that prevents the credit from offsetting release using URC 0 and move the money with a credit transfer.

    IF AND THEN
    a. The payment was received with an IRS notice,   Release using URC 0.
    b. The balance was previously paid by a payment, offset, abatement, or credit transfer,   Release using URC 0.
    c. There is a posted or pending additional assessment equal to or greater than the unpostable amount,   Release using URC 0.
    d. Research shows the unpostable payment attempted to post to the wrong module,   Release using URC 0 and move with a credit transfer with a posting delay code if necessary or URC 6 to correct the tax module (either/or the tax period, MFT, etc).
    e. There is an open control base on the unpostable module, Or TC 971 action code 010, Release using URC 0. Input TC 570, if necessary.
    f. Research identifies a posted or pending TC 150/976/977 with a corresponding posting date,   Release using URC 6 if located in another tax module or URC 0 if located in the unpostable tax module.
    g. The payment is addressing MFT 01, research the entity module for Employment Code T, No Employment Code T and FICA was not assessed, or Employment Code T and the taxpayer has not been assessed FICA, Release using URC 0. Input TC 570. Prepare Form 3465, Adjustment Request, to Accounts Management and request the module be assessed for FICA tax. See IRM 3.13.2.5.9 , Employment Code T, for additional information on Employment Code T.
    h. The unpostable is a TC 760, Was prepared at the campus, Contact the initiator and explain the condition. Correct according to their instructions.
    i. The Status Code is other than 10 or 12 use CC INTST to check for additional interest and penalties on module. See IRM 2.3.29-1, IDRS Terminal Responses - Command Codes INTST, ICOMP and COMPA, for information on CC INTST. CC INTST indicates additional interest and penalties on module Release using URC 0.
    j. The payment money amount is in line with the payments the taxpayer has been making,   Post the payment received to the earliest CSED.
    k. The payment money amount is in line with the payments the taxpayer has been making There are no debit modules URC 6 to post per date.
    l. The amount is out of line with other payments, Or there are no debit modules, Contact the taxpayer via telephone or by using a Letter 21C or Letter 320C for proper disposition of the payment. When reply is received from the taxpayer, release per taxpayers request. If no reply is received, release using URC 8 and request Rejects to forward the payment to Unidentified, if the received date of the payment is less than one year old. If the payment is more than one year old, request rejects to forward the payment to Excess Collections.
    m. The unpostable is a payment in Status 26, And a Collection assignment number is present DO NOT take any action without first contacting the Revenue Officer (RO) assigned to the case.

    Note:

    The RO by TSIGN/ZIP/STATE is available under the Who/Where tab on SERP. This listing provides the RO group assignment number, the zip codes related to it, including fax number, phone number and address.

    Follow action provided by the RO and close the unpostable appropriately .

UPC 305 RC 4

  1. Reason Code 4 occurs when a TC 150 for Form 941 (MFT 01), Form 1120 (MFT 02), Form 720, Quarterly Federal Excise Tax Return, (MFT 03), Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, (MFT 10), Form 944 (MFT 14), or Form 945, Annual Return of Withheld Federal Income Tax, (MFT 16) which is not a corrected UPC 305 attempts to post to a module where the credits claimed on the return exceed credits posted (not including TCs 610 or TCs 840) by ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    1. If a tax module is present, Master File will generate this unpostable condition.

    2. If a tax module is not present, Master File will generate a TC 599 closing code 013 which means the tax return is an unpostable 305 and the tax module is in 06 status.

  2. UPC 305 Resolution RC 4 - The resolution for Reason Code 4 consists of following the instructions in the tables below for Excess credits and Missing credits.

    Note:

    If Computer Condition Code "X" is present and a Form 8827, Credit for Prior Year Minimum Tax—Corporations, is attached release using URC 0. Do not send to Rejects for manual refund.

  3. UPC 305 RC 4 Excess Credit(s)

    IF AND THEN
    Credit(s) is more than amount claimed Within pattern, Transfer to future module. Release using URC 0 and cycle to post as necessary.
    Credit(s) is more than amount claimed Not within pattern, Release using URC 0. This will generate a "Q" freeze and send a CP 267 Computation of Tax, to the taxpayer.

    Note:

    Excess credit(s) may be returned to the taxpayer if significant hardship exists, even though there may be an unpaid assessed liability on another account or the Treasury Offset Program (TOP). Refer to IRM 21.4.4.2, Why Would A Manual Refund Be Needed?

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

  5. Missing Credit(s) - Research IDRS, MCC transcripts and/or CC BMFOL/CC MFTRA for credit(s) claimed on the unpostable return. Payments may be on parent, subsidiary or associated EINs. Research for a different EIN. Refer to IRM 3.12.279.34, Credit Transfers and Offsets, and/or IRM 3.12.279.36, Category Code L-7 (Credit Transfers and Bad Checks).

    Note:

    Use Doc Code 34 on transfers if possible, however an R- freeze requires Doc Code 24.

    IF AND THEN
    Research shows a delinquent payment pattern,   Release using URC 0.
    Payment(s) is found, Payment(s) has refunded Transfer to the unpostable module. Release using URC 0 to post and cycle as necessary.
    Payment(s) is found, Payment(s) has not refunded Transfer to the unpostable module. Release using URC 0 and cycle as necessary.
    Credit elect is found The money is available or module contains a pending TC 841, When money is available move the credit elect with a TC 830, release using URC 0 to post and cycle as necessary.
    Credit elect is found Credit elect refunded in an earlier cycle or is no longer available and the module does not indicate a pending TC 841 Release using URC 0.
    Credit(s) is not found   Release using URC 0.

UPC 305 RC 5

  1. Reason Code 5 occurs when Form 941, Employer's Quarterly Federal Tax Return (MFT 01), Form 944, Employer's ANNUAL Federal Tax Return (MFT 14), and Form 945, Annual Return of Withheld Federal Income Tax (MFT 16), filed by Federal Agencies (Employment Code "F" ) attempting to post to a module where the credits claimed on the return and the credits posted differ by ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  2. UPC 305 Resolution RC 5 - Research IDRS, MCC transcripts and/or CC BMFOL/CC MFTRA for credit(s) claimed on the unpostable return.

    IF THEN
    Research indicates a delinquent payment pattern, Release using URC 0.
    Credit(s) is found, Transfer to the unpostable module. Release using URC 0 to post and cycle as necessary

    Note:

    Use Doc Code 34 on transfers if possible, however a R- freeze requires Doc Code 24.

  3. If unable to locate the missing credit(s), contact the Federal coordinator at your campus to determine the appropriate action required.

UPC 306 Adjustment/Audit Discrepancy

  1. All UPC 306 conditions and resolutions are provided in the table below. RC 1

  2. UPC 306 RC 1 Resolution - GUF Auto-Closed URC 2 to originator.

    Reason Code Condition Resolution
    1 Occurs when a TC 30X with DLN blocking series of 790-799 or 900-999, priority code 2/3 and the settlement amount field on the TC 30X does not equal ≡ ≡ ≡ ≡ ≡ ≡ the net of posted TC 150, 29X and 30X. GUF Auto-Closed URC 2 to originator.
    2 Occurs when a TC 290 or 291 attempting to post to a credit balance module frozen by TC 570 with Doc Code 54. GUF Auto-Closed URC 2 to originator.
    3 Occurs when a TC 290 with Priority Code 6 with significant amount attempts to post to a module where the posted return (TC 150) has a Math Status Code of "3" and TC 29X blocking series 770-789 is not posted. GUF Auto-Closed URC 2 to originator.
    4 Occurs when a TC 290 with Priority Code 6 attempts to post to a module with an unreversed TC 470 Closing Code 094 posted. GUF Auto-Closed URC 2 to originator.
    5 Occurs when a TC 291 (Blocking Series 150-199) with Priority Code 7 attempts to post to a module with an unreversed TC 470 Closing Code 094 not posted. GUF Auto-Closed URC 2 to originator.
    6 Occurs when a TC 470 with Closing Code 094 attempts to post to a module which is not under the Math Error (-G) Freeze. GUF Auto-Closed URC 2 to originator.
    7 Occurs when an input TC 29X record contains blocking series 770-789 and there is a posted unreversed TC 470 CC 094 in the module. GUF Auto-Closed URC 2 to originator.
    8 Occurs when a TC 290 for zero with Priority Code 4 attempts to post with a secondary transaction. GUF Auto-Closed URC 2 to originator.

UPC 307 RC 1 Fiscal Month Discrepancy

  1. Reason Code 1 occurs when the input transactions Fiscal Year Month (FYM) of the Forms (in the table below), is attempting to establish a tax module but did not match the Fiscal Year Month of the Entity account.

    FORM MFT DOC CODE
    1120-C 02 03
    1120S 02 16
    1041 05 44
    1065 06 65, 67
    3520 68 83
    3520-A 42 82
    8804 08 29
  2. Background Entity information-The Entity function processes Form 1128, Application to Adopt, Change or Retain a Tax Year, which are filed in accordance with specific Revenue Procedures and Internal Revenue Code Regulations. If unable to resolve the unpostable case and Command Code (CC) ENMOD contains a posted TC 053, 054, 055, 090 or 091 then reassign to Entity Unpostables.

    Transaction Code EXPLANATION
    052 This transaction code is input by the Entity function and is used to correct or reverse TC 053/054/055/058/059. If a TC 053 or TC 055 is reversed, the FYM will revert to the prior FYM. Filing Requirement Code (FRC) 1120-19 will update to FRC 1120-01. If TC 054 is reversed by TC 052, the FYM must by changed with a TC 016 to prior FYM.
    053 This transaction code is input by the Entity function, and is used to identify the accounting period changes as a result of the taxpayer filing a Form 1128, Application to Adopt, Change, or Retain a Tax Year.
    054 This transaction code is input by the Entity function, and is used to identify adoptions, changes, or retentions of tax years for certain Partnerships and S Corporations under Rev. Proc. 2006-46 and all Personal Service Corporations (PSC) with accepted FYM's.

    Note:

    If an initial return is a PSC and the tax period ending is other than 12 reassign to Entity Unpostables.

    055 This transaction code is input by the Entity function, and is used to identify adoptions, changes, or retentions of tax years for partnerships, and S corporations, making a IRC 444 back-up election.
    057 This transaction code is used to terminate a IRC 444 election. It is computer generated and reverses a TC 054 or TC 055.
    058 This transaction code is input by the Entity function, and is used to reject a Form 8716, Election To Have a Tax Year Other Than a Required Tax Year (IRC 444) Election for Partnerships, S Corporations, C Corporations electing to be an S Corporation, or Personal Service Corporations (PSC).
    059 This transaction code is input by the Entity function, and is used to reject a Form 1128, Application to Adopt, Change, or Retain a Tax Year .
    090 This transaction code identifies a Form 2553, Small Business Election for a Form 1120S, U.S. Income Tax Return for an S Corporation, has been approved.
    091 This transaction code identifies the revocation of a Subchapter S. A Form 1120S, U.S. Income Tax Return for an S Corporation, filer must now file Form 1120, U.S. Corporation Income Tax Return.
    096 This transaction code identifies the termination of a Subchapter S. A Form 1120S, U.S. Income Tax Return for an S Corporation, filer must now file Form 1120, U.S. Corporation Income Tax Return.
  3. Use URC 6 to release the non-taxable returns listed below:

    MFT FORM DOC CODE
    02 1120S 16
    06 1065 65
    15 8752 23
    36 1041A 81
    37 5227 83
    44 990PF 91
    50 4720 71
    67 990 90, 93
    67 990EZ 09, 92
    77 706GS(T) 29
    78 706GS(D) 59
  4. Use the following table to resolve UPC 307 RC 1 All others -

    IF THEN
    There is a TC 590 or 599 with a closing code Release using URC 6 and post to the FYM on master file.
    There is a TC 59X (other than 590–599 CC 017), Release using URC D.
    Doc Code 14, 49, or 77 (other than 59X) GUF Auto-Closed URC 2 to originator.
    Doc Code 54 with TC 29X, Release using URC 2 to the originator.
    Doc Code 24 or 48 - Debit side, URC 6 or 8 to reverse credit. Open a control to the preparer.
    Doc Code 24 or 48 - Credit side, Research to determine the taxpayers correct tax period and input TC 016 if appropriate. Release by using URC 0. If unable to determine the correct tax period after all research has been exhausted, URC 6 or 8 to post credit back to the debit. Open a control to the preparer.
    Doc Code 34 - Debit side, Research to determine if the credit transfer is addressing the correct tax period. If the tax period is incorrect, URC 6 to correct. If unable to URC 6 or determine the correct tax period after all research has been exhausted, URC 2 to the originator.
    Doc Code 34 - Credit side, Research to determine the taxpayers correct tax period and input TC 016 if appropriate. Release by using URC 0. If unable to determine the correct tax period after all research has been exhausted release using URC 6 or 8 to reverse. Open a control to the preparer.
    Doc Code 58 Research to determine the taxpayers correct tax period and input TC 016 if appropriate. Release using URC 0. If unable to determine the correct tax period after all research has been exhausted URC 2 to the originator.
    TC 370 Doc Code 52 - there is an input error, Release using URC 6.
    TC 370 Doc Code 52 - there is no input error, Input TC 016, release with URC 0. Also, if the TC 370 is for a prior year, input a TC 016 to change back to the Master File tax period with a Posting Delay Code of 1.
    TC 610/670 Doc Code 70 or 76 - Post payment to Master File FYM using URC 6 or URC 0.

UPC 307 RC 2

  1. Reason Code 2 occurs when any transaction except TC 421 or 424 with SPC 039, source code 60 and Employee Group Code is 1000/2000 and is attempting to open a module whose period ending is greater than 23C date plus 12 months.

    Exception:

    For TC 157, if period ending is greater than 23C date plus 18 months.

  2. UPC 307 Resolution RC 2 - The following table provides instructions for resolving UPC 307 RC 2:

    IF THEN
    The unpostable is a payment, Release using URC 6 or 8 to the earliest debit module.
    The unpostable is a payment with no debit module, Release using URC 6, to post per date.
    The unpostable is a payment with no Accounting period, Input TC 016, release using URC 0, to post and cycle as necessary.
    The unpostable is not a payment, Release with URC 8 and request Rejects to route to the originator.

UPC 307 RC 3

  1. Reason Code 3 occurs when a TC 660 (estimated tax payment) for MFT 05, Form 1041, U.S. Fiduciary Income Tax Return (for Estates and Trusts) which is not establishing the first MFT 05 tax module, has a tax period month of other than 12, and does not match the Entity Fiscal Month.

  2. UPC 307 Resolution RC 3 - Release using URC 6 and post to the tax period on Master File.

UPC 307 RC 7

  1. Reason Code 7 occurs when a TC 150 with Computer Condition Code Y or TC 620 with Condition Code W not matching on entity Fiscal month with input FYM other than 12 attempting to post with TC 054/055 posted.

  2. UPC 307 Resolution RC 7

    IF THEN
    Check for transcription or coding error, If found correct using URC 6.
    A final return (TC 150), Release using URC 8. Instruct Rejects to delete CCC "Y" and re-input with CCC "F" .
    Extension (TC 620) with change in accounting period box marked or a final, Input TC 016. Release using URC 0 and cycle if necessary.
  3. All others, reassign to Entity Unpostables.

UPC 307 RC 8

  1. Reason Code 8 occurs when the input fiscal month of the TC 150 for MFT 02, Doc Code 07 (Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation) did not match entity FYM, TC 060 is posted but its effective date is greater than the tax period on input.

  2. UPC 307 Resolution RC 8 - reassign to Entity Unpostables.

UPC 307 RC 9 OSPC Only

  1. The input fiscal month of Transaction Code (TC) 150 for Master File Tax (MFT) 68, Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Foreign Gifts, does not match the entity Fiscal Year Month.

  2. UPC 307 Resolution RC 9 - URC 8 request Rejects to change the tax period to agree with the Fiscal Year Month on Master File.

UPC 308 Electronic Media, Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return

  1. The following table provides instructions for resolving UPC 308.

    Reason Code Condition Resolution
    6 Occurs when MFT 10, TC 150, if the net of previously posted Data Processing (DP) Adjustment Blocking Series 400–439 is not zero. GUF Auto-Closed URC 8 to Rejects, nullify area code 02.

UPC 309 RC 1 Tax Period/Master File Tax (MFT) Mismatch

  1. UPC 309 RC 1 occurs when an input transaction attempts to establish a tax module and does not match on MFT code and tax period.

    Exception:

    TC 920 (which is dropped)

    Exception:

    TC 583 with Special Valuation Code (SVC) 1 for MFT's 02/05/06

    Exception:

    TC 973, or TC 971 A/C 40/41 Attempting to establish MFT 01/16.

  2. UPC 309 Resolution RC 1

  3. If pre-journalized money amount is zero (0), GUF Auto-Close URC 2 to originator.

  4. All others, verify the MFT, Tax Period and Transaction Code (TC) then use the following table to resolve the unpostable condition.

    IF AND THEN
    The MFT, Tax Period or TC is incorrect,   Release using URC 6, 8, or 1.
    The MFT, Tax Period or TC is incorrect, The Doc Code is 34 that cannot be corrected, Release using URC 2 to the originator.
    The MFT, Tax Period or TC is incorrect, The Doc Code is 24, 48, or 58 that cannot be corrected (L7 category), Reverse using URC 6 or 8 and notify the originator.
    The MFT, Tax Period or TC is incorrect, Doc Code is 87(dishonored check),
    TCs 611, 651, 661, and 671,
    Release using URC 8, cancel the DLN and route to Dishonored Check function.
    The MFT, Tax Period or TC is incorrect, Is a TC 720/740 and the Doc Code is 45 (undeliverable refund) and the original TC 846 cannot be found, URC 1, nullify code 41 to Accounting.

    Reminder:

    Always prepare Form 3245, Posting Voucher - Refund Cancellation or Repayment, when nullifying to Accounting.

    The MFT, Tax Period or TC is incorrect, Doc Code 45 other than TC 720/740, URC 1, Nullification Code 41 to Accounting.

    Reminder:

    Always prepare Form 3245, Posting Voucher - Refund Cancellation or Repayment, when nullifying to Accounting.

    The MFT, Tax Period or TC is incorrect, TC 690 (Penalty payment) the corresponding penalty is not found, Release using URC 8, cancel DLN and request payment be sent to Unidentified.
    The MFT, Tax Period or TC is incorrect, TC 690 (Penalty payment) the corresponding penalty is found, Release using URC 6 or 8.
    MFT 76 The plan number is incorrect, Research BMFOLI. Release using URC 6 to the correct plan number.
    TC 694 for MFT 13 with a DPC 47/48,   Release using URC 6, change the TC 694 to a TC 670, and post to the original module if tax class is compatible. Otherwise release using URC 8 and request Rejects to renumber to the correct MFT, tax period and post as a TC 670.
    MFT 13 ( Form 8278, Computation and Assessment of Miscellaneous Penalties Non-Return Related Civil Penalties). See IRM 3.12.279.207, UPC 497 RC 6 Invalid User Fee Data, for additional instructions on Installment Agreements, TC 694, Input TC 971 with action code 082 (DPC 50) for original ($225.00) payment or 083 (DPC 51) for reinstated ($89.00) payment. Release using URC 0, cycle as appropriate.
    MFT 13 TC 694 with secondary TC 360, The DPC is not present, Release using URC 8, request rejects to input a DPC 50 for the original installment agreement ($105.00) or DPC 51 for a reinstated installment agreement ($45).

    Note:

    The TC 694 must carry a TC 360 for this resolution. See IRM 3.12.279.207, UPC 497 RC 6 invalid user fee data, for additional instructions on installment agreements.

    TC 652, Addressing an MFT 01/14 problem (the TC 650 has been moved or has not posted), Research CC EFTPS for the posted or pending TC 650, release using URC 0, 6, or 8. Cycle if necessary.
    TC 680, Cannot find the corresponding interest TC, Release using URC 6 and change TC 680 to a TC 670.

UPC 311 RC 1 Account Transfer

  1. Reason Code 1 occurs when an input transaction coded other than TC 370 (Doc Code 51) with secondary TC 402 attempts to post to a tax module whose status is 29 (Account Transferred Out of MF).

    Note:

    An account transfer is a means of transferring an account between master file accounts when limitations within the system will not allow resolution of the account.

  2. UPC 311 Resolution RC 1 - The following table provides instructions for resolving UPC 311 RC 1:

    IF AND THEN
    The unpostable is a TC 740 with blocking series" 66666"

    Note:

    Refund checks not cashed within 12 months of issue date are considered expired checks and are identified by a TC 740 Blocking Series 66666.

      Release using URC 1 nullify Area code 41 and route to Revenue Accounting.
    The unpostable is not addressing the correct module,   Release using URC 6, 8 or 1, as appropriate.
    The unpostable is addressing the correct module, Research locates a posted or pending TC 402, Release using URC 0 and cycle to post after TC 402.
    The unpostable is addressing the correct module, Research does not locate a posted or pending TC 402, Release using URC 2 (route to the originator), or 8 (renumber to the correct MF), as appropriate.
    The unpostable is MFT 46,   Reassign to EO Entity.

UPC 311 RC 2 Account Transfer Out

  1. Reason Code 2 occurs when an input TC 971 AC 745 through the use of REQ77 (previously TC 400) attempts to post to a tax module and the Status is 29.

  2. These unpostable Transfer Out requests include but are not limited to the following:

    • Assessment to be moved from one period or TIN to another

    • Offer-In-Compromise (Split Assessment)

    • Bankruptcies

    • Reversal of Erroneous Abatements

    • Duplicate Assessments on Master File for Master File Tax Code (MFT) 55

    • Non-Master File to Master File

    • Program problems

  3. UPC 311 Resolution RC 2 - Research to determine if the unpostable is addressing the correct module using the following table:

    IF THEN
    Not addressing the correct module, Change the tax period or MFT, as applicable. Release using URC 6
    Addressing the correct module, Release using URC 8. Request Rejects cancel the Document Locator Number (DLN) and route to Accounting.

UPC 311 RC 3 Account Transfer Out

  1. TC 971 AC 745 will unpost if the AIMS indicator (-L Freeze) is on.

  2. UPC 311 Resolution RC 3 - release using URC 8. Request Rejects cancel the Document Locator Number (DLN) and route to originator.

UPC 311 RC 4 Civil Penalty

  1. TC 971 AC 745 will unpost if there is no return in the module.

  2. UPC 311 Resolution RC 4

  3. Auto-Closed URC 2 to originator.

UPC 311 RC 5

  1. TC 370 carrying secondary TC 400.

  2. Auto-Closed URC 2 to originator.

UPC 311 RC 6

  1. TC 971 AC 745 will unpost if the module is in credit balance.

  2. The following table provides instructions for resolving the unpostable condition.

    IF THEN
    Pending transaction creates a zero or debit balance module and will allow TC 971 AC 745 to post, URC 0.
    All others, URC 8 to Rejects to cancel DLN and route document to Originator.

UPC 312 TC 530 Uncollectible Account - Auto Closed

  1. This unpostable condition occurs when a TC 530 is attempting to post with a Form 1120, U.S. Corporation Income Tax Return, filing requirement of 02 or a Form 1065, U.S. Return of Partnership Income, filing requirement of 06. The following table provides instructions for resolving this unpostable:

    Reason Code Condition Resolution
    1 Occurs when a TC 530 with Closing Code 008 attempts to post to an account with open Form 1120, U.S. Corporation Income Tax Return, or Form 1065, U.S. Return of Partnership Income, Filing Requirements. Auto-closed URC D.
    2 Occurs when a TC 986 with Combined Annual Wage Reconciliation (CAWR) status/closing code 031, 032, 033, 034, 094, 095, or 096 attempts to post to a CAWR module in a BMF account where the entity 52 switch is significant of the 2 or 4 bit (TC 530 closing code is 007 or 010) of the entity CC 053 indicator is significant. Auto-closed URC 2 to CAWR.
    3 Occurs when a TC 986 with CAWR Status/Closing Code of 091 if there is a Status/Closing Code of 040, 041 or 091 anywhere in the Status History Section. Auto-closed URC 2 to the originator.
    4 Occurs when a TC 530 Closing Code 017/018/019 attempting to post to a tax module that does not contain a TC 971 AC 365/366. Auto-closed URC 2 to the originator.

UPC 313 RC 1 No Related Transaction

  1. UPC 313 Reason Code 1 occurs when an input transaction failed to find its related transaction posted to the tax module with the same MFT Code and tax period.

  2. The following table provides a list of input transaction codes and the related transaction (secondary) that is not already posted:

    Input TC
    (attempting to post)
    Valid Doc. Code TC (not posted) Valid Doc. Code
    023 77 024 77
    052 63 053, 054, 055, 058, 059 63, 77, 64, 63
    061 63 060 63
    062 63 060, 063, 064, 065 63
    065/066 63 060 63
    071, 072   070  
    073   071  
    077   076  
    075   074  
    079   078  
    083   082  
    085   084  
    087   086  
    091 53 090 53
    092 53 090, 093, 095, 097 53
    095 53 090 53
    096 53 090 53
    101   100  
    103   102  
    131, 824   130  
    149   148  
    161   160, or 166  
    162   160, or 161  
    171   170, or 176  
    181   180, 186  
    191   190, 196, 336  
    241   240, 246  
    271   270, 276  
    272   270, 271  
    281   280, or 286  
    294   295, or 305  
    321   320  
    235   234, 238  
    304   295, or 305  
    342   340, 341  
    351   350  
    361   360  
    428   420, 424  
    451   450  
    462   460  
    472 CC 091   470 CC 091  
    472 CC 092   470 CC 092  
    472 CC 094   470 CC 094  
    472 CC 095   470 CC 095  
    472 CC 097   470 CC 097  
    472 CC 098   470 CC 098  
    472 CC 099   470 CC 099  
    472 CC not equal to 091, 094, 095, 099 24, 48, 77 470 CC not equal to 091, 094, 095, 099 77
    475   474, 478  
    481, 482, 483   480  
    488   150  
    495   494  
    521, 522 CC 06X   520 CC 06X

    Note:

    CC must match

     
    521, 522 CC 073,   520 CC 073, 076, 077  
    521, 522 CC 076,   520 CC 076,  
    521, 522 CC 077,   520 CC 077,  
    521, 522 not equal to CC 081, 085, 086, 087, 088, 089 77 520 not equal to CC 081, 085, 086, 087, 088, 089 77
    521, 522 CC 081   520 CC 081  
    521, 522 CC 085   520 CC 085  
    521, 522 CC 086   520 CC 086  
    521, 522 CC 087   520 CC 087  
    521, 522 CC 088   520 CC 088  
    521, 522 CC 089   520 CC 089  
    531, 532   530  
    535   534  
    539   538  
    571/572 77 570 09, 10, 11, 12, 17, 18, 21, 22, 24, 26, 27, 48, 58, 77,
    592 14, 49 590,591, 592, 593–599 14, 49
    611, 612 19, 24, 34, 58, 87 610, 976, 150 (Remittance) 03, 05, 06, 08, 09, 10, 11, 12, 13, 14, 16, 17, 18, 19, 20, 21, 22, 24, 25, 26, 33, 34, 38, 40, 41, 42, 43, 44, 46, 58, 65, 70, 71, 76, 81, 83, 90, 91, 95,
    621, 622 19, 24, 34, 58, 87 620 04, 17, 19
    632, 637   636, 630  
    641, 642 19, 24, 34, 58, 87 640 17, 18, 19, 24, 34, 58
    651, 652 19, 24, 34, 87 650 19, 24, 34
    661, 662 19, 24, 34, 58, 87 660, 430 (Remittance) 17, 19, 20, 24, 34, 58, 61
    671, 672 19, 24, 58, 87 670 17, 18, 19, 24, 34, 58
    679   678  
    681, 682   680  
    691, 692   690  
    694 (except DPC 44/45/46/4950/51)   360  
    695   694  
    701 24 706  
    702 24, 58 700 24, 58
    712 48 710, 716 48, 58
    720 45, 48 840, 843, 846 45
    721, 722 45, 48 720 45, 48
    731   736, 756  
    732 24, 58 730 24, 58
    740 45 840, 843, 846 45
    742 45 740 45
    762   760  
    767 Ref # 000 47, 54 766 Ref # 000 47, 54
    767 Ref # 299 47, 54 766 Ref # 299 47, 54
    767 Ref # 339 47, 54 766 Ref # 339 47, 54
    767 MFT 08 CRN 3XX 47, 54 766 MFT 08 - same CRN 47, 54
    771 48 770, 776  
    772 45, 47, 48, 51, 54 770, 776  
    780 77 150 (except MFT 13) and 480  
    781, 782, 788   780  
    792   790, 796  
    802   800  
    807   806  
    821 24 826  
    822 24, 58 820 24, 58
    832 48 830, 836 48
    841 45, 48 840, 843, 846 45
    842   846  
    843 45 841 45, 48
    844 with zero memo amt. 77 840, 846 45
    844 with memo amt. 77 840/846 matching TC 844 on date 45
    845 77 844 77
    850   77X  
    851   856  
    852   850  
    897   896 (TC 897 with matching Agency Code and Subagency)  
    911   910  
    912   914  
    915   916, 918, 150  
    917   916  
    919   918  
    932   930  
    961 (RAF)   960 (RAF) (Send to print and drop)  
    971 AC 01, 02 77 150/976  
    971 AC 77   971 AC 76  
    971 AC 94   971 AC 93 (XREF TIN, MFT and TXPD)  
    971 AC 98   971 AC 99  
    972 AC 31   971 AC 31  
    972 AC 32   971 AC 32  
    972 AC 33   971 AC 33  
    972 AC 34   971 AC 34  
    972 AC 35   971 AC 35  
    972 AC 37   971 AC 37  
    972 AC 38   971 AC 38  
    972 AC 47   971 AC 47  
    972 AC 54   971 AC 54  
    972 AC 82   971 AC 82  
    972 AC 83   971 AC 83  
    972 AC 84, 85   971 AC 84, 85  
    972 AC 86 77 971 AC 86 (with zero ending date) 77
    972 AC 87 77 971 AC 87 (with zero ending date) 77
    972 AC 88   971 AC 88  
    972 AC 93   971 AC 93 (XREF TIN, MFT and TXPD)  
    972 AC 220   971 AC 220  
    972 AC 350   971 AC 350  
    972 AC 351   971 AC 351  
    972 AC 352   971 AC 352  
    972 AC 353   971 AC 353  
    972 AC 330   971 AC 330 (XREF TIN and secondary date)  
    972 AC 360   971 AC 360 (XREF TIN)  
    972 AC 637   971 AC 63  
    972 AC 638   971 AC 638  
    972 AC 850   971 AC 850  
  3. UPC 313 Resolution RC 1 - Use the following table in conjunction with IRM 3.12.279.34, Credit Transfers and Offsets, IRM 3.12.279.35, Refunds, Erroneous, Canceled or Undeliverable, and IRM 3.12.279.36, Category L-7 (Credit Transfers and Bad Checks), to resolve the credit transfer unpostable condition:

    Note:

    For document codes 24 and 48, do not correct the MFT or tax period. This creates a bad audit trail for future reference.

    IF AND THEN
    a. The Doc. Code is 34, The date is incorrect, URC 6 to correct the date.
    b. The Doc. Code is 34, It is a duplicate (money was moved where initiator intended), Release using URC D
    c. The Doc. Code is 34, Unposts for any other reason, Release using URC 2 and route to the originator.
    d. The unpostable is due to a TC 821, With no corresponding TC 826 and the TC 821 is attempting to reverse a TC 820, URC 6 and change the TC 821 to a TC 822.
    e. The unpostable is due to a TC 821, With no corresponding TC 826, URC 6 and change the TC 821 to a TC 700.
    f. The unpostable is due to a TC 832, With no TC 830, URC 6 and change the TC 832 to a TC 710.
    g. The Doc. Code is 24, 48 or 58, The related TC is located in the unpostable module, and the other side of the transfer is posted correctly, URC 6 to correct the transaction.
    h. The Doc. Code is 24, 48 or 58, The related TC cannot be located in the same module, or the other side of the transfer is not posted correctly, Take the necessary action to reverse the credit and notify the originator of the action taken.
    i. The Doc. Code is 24 or, 48, and both the debit and credit side are unpostable, After researching each side individually, both sides can be posted correctly, Release both cases using URC 6.
    j. The Doc. Code is 24 or, 48, and both the debit and credit side are unpostable, After researching each side individually, both sides cannot be posted correctly, Release using URC 8 to wash the debit and credit. Notify the originator of the action taken.
    k. The Doc. Code is 51,   Contact the originator and explain the action(s) needed. URC 8 and request Rejects change the transaction.
    l. The Doc. Code is 51, The unposted TC reversal does not have a matching TC, Release using URC 8, request Rejects to suspend the document and forward to Accounting for resolution.
    m. The Doc Code is 51, The unpostable has repeated due to a posted transaction on the account preventing corrections to be made.

    Note:

    The CC UPTIN amount must be zero.

    Release URC 2 to the originator.
    n. The transaction code is a TC 971 or TC 972,   Auto-close URC 2 and route to the originator.
    o. The transaction code is a TC 961 or a TC 962,   Auto-close, URC 2 to CAF.
    p. The Doc Code 77 is a TC 521,   URC 2 to the originator.
  4. If the transaction code is a TC 720 (Refund Repayment), TC 740 (Undeliverable Refund Check Redeposited) or TC 841 (Cancelled Refund Check Deposited), research CC BMFOL to determine if the transaction is addressing the correct module, then use the following table to resolve the unpostable condition:

    IF AND THEN
    The TC 840 or 846 is located in another module with the same money amount,   Release using URC 6 or 8 to change the tax period or MFT.
    The TC 840 or 846 is located in another module There is a discrepancy in the unposted money amount and the TC 720/740 amount,

    Note:

    See IRM 21.4.3.4.3, Undeliverable Refund Checks.

    Complete Form 3245, Posting Voucher - Refund Cancellation or Repayment, release using URC 1 with nullifier 41 and route the case to Accounting.
    Other than a money discrepancy Unable to resolve the case, Release using URC 1 with nullifier 41 and route the case to Accounting.
  5. If Doc Code 87 (Form 2287 - Dishonored Check Posting Voucher) – research to determine if the transaction is addressing the correct module, then use the following table to resolve the unpostable condition:

    IF THEN
    The date, TC or tax period is incorrect, Release using URC 6.
    The money amount is incorrect, Release using URC 8. Request Rejects to route to the Dishonored Check Function.
  6. If the transaction is a TC 694 and the Designated Payment Code is 47/48, release using URC 6, change the TC 694 to a TC 670, and post to the earliest debit module if tax class is compatible. Otherwise release using URC 8 and request Rejects to renumber to the correct MFT, tax period and post as a TC 670.

  7. If the transaction is a TC 694 and the Designated Payment Code (DPC) is not present then release using URC 8 and request Rejects to renumber to the correct MFT, tax period and post as a TC 670. Notate for Rejects to input with DPC 50 for the original installment agreement or DPC 51 for a reinstated installment agreement.

UPC 313 RC 2

  1. Reason Code 2 occurs because there is a non "G" coded TC 150 with no remittance and a posted TC 611 without a posted TC 150 or 610.

  2. UPC 313 Resolution RC 2 - Research all modules for TC 610 with same money amount.

    IF AND THEN
    Found,   Transfer the TC 610 to the unpostable module and release using URC 0, cycle as necessary.
    It can be determined that the TC 611 posted in error   Input Form 2424, Account Adjustment Voucher, to debit the TC 610 module with a TC 611, and a secondary TC 280, and credit the unpostable module with a TC 610.
    A bad check penalty (TC 280) has posted to the unpostable module,   Prepare a Form 3465, Adjustment Request, and route to Accounts Management requesting abatement of the bad check penalty. Release using URC 0 to post and cycle as necessary.
    A TC 611 is erroneously posted to the module Research does not locate a TC 610, but does locate a TC 670 for the same amount, Reverse the TC 670 with a TC 672. Use TC 610 to post credit to the modules. Release using URC 0 to post and cycle as necessary.
    The credit cannot be located:   Coordinate with Dishonored Check function for assistance in locating the credit. Release following Dishonored Check function instructions.

UPC 313 RC 3

  1. Reason Code 3 occurs when a TC 538 is generated to a module and no unreversed TC 971 CC 93 is present.

  2. UPC 313 Resolution RC 3 - Research to determine if a TC 971 CC 93 is pending or posted.

    IF THEN
    Pending, Release using URC 0.
    Posted, Release using URC 0.
    All others, Release using URC 2 to originator.

UPC 313 RC 4

  1. Reason Code 4 occurs when a TC 481, 482, or 483 input and the TC 780 freeze is in effect.

  2. UPC 313 Resolution RC 4 - Reason Code 4 is GUF Auto-Closed URC 2 to originator.

UPC 313 RC 6 GUF Auto-Closed

  1. Reason Code 6 occurs when a TC 480 is input and an unreversed TC 480 is already posted.

  2. UPC 313 Resolution RC 6 - Reason Code 6 is GUF Auto-Closed URC 2 to originator.

UPC 313 RC 7 GUF Auto-Closed

  1. Reason Code 7 occurs when a TC 290, Doc Code 54, Blocking Series 140–149 (with secondary TC 180 (deposit penalty for insufficient and/or untimely deposit of taxes) for ≡ ≡ ≡ ≡ ) attempts to post to a module where a TC 186 has previously posted.

  2. UPC 313 Resolution RC 7 - Reason Code 7 is GUF Auto-Closed URC 2 to originator.

UPC 313 RC 8 FATCA

  1. Reason Code 8 occurs when a TC 971 AC 747 is attempting to post to a Form 1120-F, U.S. Income Tax Return of a Foreign Corporation, module that does not contain an unreversed TC 971 AC 746.

  2. UPC 313 Resolution RC 8 - GUF Auto-Closed URC 2 to originator (LB&I).

UPC 313 RC 9

  1. Reason Code 9 occurs when a TC 290 (Blocking Series 4XX) with item reference number 766 for MFT 02/05/33/34 attempts to post and:

    1. TC 150 is posted (except for Blocking Series 48X with Item Reference Number 311 present) or,

    2. For B.S. 480-489, three TCs 766 (B.S. 450–489) are posted and there is a FRC established for the input MFT, or four TCs 766 (B.S. 450–489) are posted; or

    3. For B.S. 49X, fifty-one TCs 766 (B.S. 49X) are posted and there is a FRC established for the input MFT, or fifty-two TCs 766 (B.S. 49X) are posted.

  2. UPC 313 Resolution RC 9 - Reason Code 9 is GUF Auto-Closed URC 2 to originator.

UPC 315 RC 2 - RC 8 Civil Penalty Number Mismatch

  1. This unpostable condition occurs when there is a Civil Penalty Number Mismatch. Use the following table to resolve the unpostable:

    Reason Code Condition Resolution
    2 Occurs when any MFT 13 TC 290 with Civil Penalty Reference Number for positive amount attempting to post to account with Employment Code "F" (6). GUF Auto-Closed URC 2 to originator.
    3 Occurs when any MFT 13 TC 290 for a tax period prior to 198912 with Civil Penalty Reference Number 50X - 53X attempting to post which, if posted, would bring the net 50X - 53X amount in the module to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . GUF Auto-Closed URC 2 to originator.
    4 Occurs when any MFT 13 TC 290 with Civil Penalty Reference Number 50X - 51X attempting to post to tax period 198912 through 200912 which, if posted, would bring the net 50X - 51X penalty amount in the tax module to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . GUF Auto-Closed URC 2 to originator.
    5 Occurs when any (non-MFT 13) adjustment (Doc Code 47 or 54) or Doc Code 51 account transfer with Civil Penalty Reference #680 or 686 attempting to post to a tax module if the normal RDD is prior to 01/01/90. If an abatement is pending or posted for the penalty amount release using URC 0, and cycle to post after the pending transaction. If Doc Code 51, contact the originator and explain action(s) needed. Close per originator's instructions. All others, release using URC 2 to originator.
    6 Occurs when any MFT 13 TC 290 with Civil Penalty Reference Number 649 attempting to post which if posted would bring the net 649 amount in the module to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . If an abatement is pending or posted for the penalty amount release using URC 0, and cycle to post after the pending transaction. If Doc Code 51, contact the originator and explain action(s) needed. Close per originator's instructions. All others, release using URC 2 to originator.
    7 Occurs when any MFT 13 TC 290 with Civil Penalty Reference Number 50X/51X (excluding CPRN 511) attempting to post to tax period 201001-201412 which, if posted, would bring the net 50X/51X (excluding CPRN 511) penalty amount in the tax module to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If an abatement is pending or posted for the penalty amount release using URC 0, and cycle to post after the pending transaction. If Doc Code 51, contact the originator and explain action(s) needed. Close per originator's instructions. All others, release using URC 2 to originator.
    8 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    GUF auto close URC 2 to originator.

UPC 316 RC 1 Date and Money Amount Mismatch

  1. Reason Code 1 - an input transaction attempting to reverse its posted related transaction failed to match on date and/or the money amount from the transaction was greater than the related transaction or sum of the transactions (for the same date if date check is applicable).

  2. An input transaction from Column A below attempts to post to a tax module but did not match on date or was greater in money amount than a transaction or sum of the transactions (for the same date if date check is applicable) from Column B Transaction Codes that have an asterisk by them require exceptional treatment. Transaction Codes indicated with an X require money check only and any prior reversals must be considered with their net effects on Column B. transactions.

    Column A Input Transaction Column B Original Transaction
    150 611 (net amount of all TCs 611 that match on date with input TC 150)

    Note:

    Remittances with return (TC 610) can be posted to the BMF as part of TC 150. When reversals of these transactions post, TC 150 should be searched for the respective amounts.

    X* 161 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    All TCs ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ should have the primary transaction amount field changed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ prior to posting to agree with the amount being reversed.

    160 and 166
    X* 171 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 170 and 176
    X* 181 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 180, 186 (or sum thereof)
    X 191 Net of 19X/33X
    X 235 234, 238
    X 241 240, 246
    X* 271 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 270 and 276 (or sum thereof)
    X 281 280 and 286 (or sum thereof)
    X* 291/301 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡  
    X* 295/305 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 150 + 29X + 30X (except MFT 01/14)
    X* 299 (non-zero) /309 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡  
    294 (non-zero) 295, 305
    304 305, 295
    X 321 320
    X* 341 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 190, 196, 336, 340 (or sum thereof)
    X 351, 350
    X 361 360 (or sum thereof)
    X 451 450
    535 534
    539 538 ( or sum thereof)
    610 611 (net amount of all TCs 611 that match on date with input TC 610)
    * 611/612

    Note:

    TC 611/612 can reverse payment posted in amount field in TC 150/976 provided date on TC 150/976 is not earlier than reversal transaction if TC 150/976 is timely filed. If late, reversal date must equal TC 150/976 date.

    610, 976, 150 (Remittance)
    621, 622 620
    X 632/637

    Note:

    TC 632/637 must also designate the same credit (ID No.) as the TC 630 and/or 636, in addition to matching on money amount.

    636, 630 (or sum thereof)
    641, 642 640
    * 651, 652

    Note:

    TC 651/652/661/662 can reverse a merged TC 650/660 with document code 24 or 34 respectively (containing 3 high-order zeroes in TUS Number field) if the date falls within the respective date parameters for the merged transaction as shown in Parameter Chart per PRP 160-4.02 (36). Merged transactions carry ″TO″ date of respective date limits per parameters.

    650
    * 661/662 660 or 430 (Remittance)
    671/672 670
    679 678
    681, 682 680
    691, 692 690
    X 694 (except DPC 44/45/46/49/50/51) 360
    695 694
    701 706 (net of all TCs which match on date with TC 701)
    702 700
    * 712 710 and 716
    * 720 846, 840, and 843
    899 Record Type 4 899 Record Type 2
    (Record Type 4 amount must be < = sum of Record type 2 amounts. Dates do not have to match.)
    721, 722 720
    X 731 736, 756
    X 732 730
    * 740

    Note:

    TC 740 need match only on amount.

    840, 846, 843
    742 740
    762 760
    * 767

    Note:

    TC 767 need match only on amount when the document code is other than 51.

    Note:

    For MFT 03, TC 767 with document code other than 51 and the TC 150 DLN does not match the posted TC 150 must match on DLN with the posted TCs 766 it is intended to reverse.

    Note:

    Also, TC 767 document code 47/51/54 will reverse TC 766 with a return DLN

    Sum of 766
    X 767 Ref # 115 Sum of 766 Ref # 115
    X 767 Ref # 116 Sum of 766 Ref # 116
    X 767 Ref # 117 Sum of 766 Ref # 117
    X 767 Ref # 251 Sum of 766 Ref # 251
    X 767 Ref # 253 Sum of 766 Ref # 253
    X 767 Ref # 254 Sum of 77X w/Julian date 997
    X 767 Ref # 297 Sum of 766 Ref # 297
    X 767 Ref # 298 Sum of 766 Ref # 298
    X 767 Ref # 299 Sum of 766 Ref # 299
    X 767 Ref # 330 Sum of 766 Ref # 330
    X 767 Ref # 331 Sum of 766 Ref # 331
    X 767 Ref # 332 Sum of 766 Ref # 332
    X 767 Ref # 333 Sum of 766 Ref # 333
    X 767 Ref # 339 Sum of 766 Ref # 339
    X 767 MFT 08 CRN 3XX 766 MFT 08 - same CRN (s)
    X 771, 772 Sum of 77X
    792 790/796 (net TCs 790/796 matching on date with TC 792)
    * 802 800
    * 807 806
    821 826
    822 820
    X 832 830, 836
    X 841 840, 843, 846
    843 841
    844 with significant memo amount 840/846
    X 850 Sum of 77X, 85X
    X 851 856
    X 852 850
    897 896 (net of TCs 896 with matching Agency/Subagency Code is less than the TC 897 amount)
    971 AC 163 971 AC 63
    972 AC 63 with same trans date 971 AC 63
    972 AC 69 with same trans date 971 AC 69
    972 AC 86/87 with early trans date 971 AC 86/87
    972 AC 163 with earlier trans date 971 AC 63
    972 AC 163 with same trans date 971 AC 163
    972 AC 18X & same AC, date & XREF info 971 AC 18X
    972 AC 352 971 AC 352
    972 AC 353 971 AC 353
    972 AC 354 971 AC 354
    972 AC 650 with different date and FIRPTA money amount 971 AC 650

    Note:

    When making UPC 316 check for TC 291/201, TC 295/305, TC 299/309 inputs: exclude TC 150 amount from UPC 316 check if Total Tax Settlement is for negative amount. Instead, check input TC 291/301, 295/305, 299/309 amount against net TC 29X plus TC 30X amounts only (including the input TC 300 amount when considering TC 309).

  3. UPC 316 Resolution RC 1 - Check the module where the credit has posted.

  4. Use the instructions in IRM 3.12.279.34, Credit Transfers and Offsets, IRM 3.12.279.35Refunds, Erroneous, Canceled or Undeliverable, and IRM 3.12.279.36, Category L-7 (Credit Transfers and Bad Checks), in conjunction with the following table to resolve the credit transfer unpostable condition:

    Note:

    If the document code is 24, 34, or 48, do not correct the MFT or tax period. This creates a bad audit trail for future reference.

    IF AND THEN
    Credit is in the process of refunding,   Initiate a refund deletion request, using CC NOREF or appropriate form and forward to area responsible for refund deletions.
    The unpostable is attempting to reverse a computer generated transaction Mismatches on date, Release using URC 6 to correct the transaction date.
  5. UPC 316 RC 1 Doc Code 34 - Use the instructions in the following table to resolve the unpostable condition.

    IF THEN
    The transaction date is incorrect, Release using URC 6.
    It is a duplicate, (money was moved where initiator intended), Release using URC D.
    The Doc Code 34 unposts because the money amount, TC, MFT, or tax period is incorrect, Release using URC 2 to the originator.
  6. UPC 316 RC 1 TC 821,TC 822, or TC 832 - A credit attempting to reverse TC 826, 820, 830, or 836 in whole or in part.

  7. Research for "like" date and/or amount.

  8. Take the following action to resolve the unpostable condition:

    IF THEN
    The corresponding TC can be located, Release using URC 6 with a corrected date and/or transaction code.
    Both sides of the transfer are unpostable, but can be worked individually, Associate the cases and close as appropriate.
    Both sides of the transfer are unpostable and can not be resolved, Associate the cases and release using URC 8 and notify the originator. Input TC 570 if credit is in jeopardy of refunding.
    The credit transfer is a duplicate attempt, Release using URC 6 or 8 to reverse the posted debit.
    The unpostable is due to a TC 821 with no corresponding TC 826, Release using URC 6 and change the TC 821 to a TC 700.
    The unpostable is due to a TC 832 with no corresponding TC 830 or 836, Release using URC 6 and change the TC 832 to a TC 710.
    No match is found, Release using URC 6 or 8 and reverse the posted credit and notify the originator.
  9. UPC 316 RC 1 TC 701/702 - A debit attempting to reverse TC 706/700 in whole or part. Research for corresponding date and amount. Take the following action to resolve the unpostable condition:

    IF THEN
    The corresponding TC can be located, Release using URC 6 with a corrected date and/or transaction code.
    Both sides of the transfer are unpostable, but can be worked individually, Associate the cases and close as appropriate.
    Both sides of the transfer are unpostable and can not be resolved, Associate the cases and release using URC 8, request Rejects to wash the debit and credit. Notify the originator of the action taken.
    The credit transfer is a duplicate attempt, Release using URC 6 or 8 to reverse the posted credit.
    The credit transfer is a single reversal for two or more transactions, Correct the debit by preparing one Form 2424, Account Adjustment Voucher, for each debit. Release using URC 8.
    No match is found, Release using URC 6 or 8 and reverse the posted credit and notify the originator.
  10. UPC 316 RC 1 Doc Codes 24, 48, 58 - Use the instructions in the following table for resolving the unpostable condition:

    IF AND THEN
    The credit transfer is a duplicate attempt,   Release using URC 6 or 8 to reverse the posted credit.
    Both sides of the transfer are unpostable, but can be worked individually,   Associate the cases and close as appropriate.
    The unpostable is a debit The credit side has posted with the incorrect date, or transaction code or money amount, Reverse the posted credit using URC 6 or 8. Notify the originator.
    The unpostable is a debit, The posted credit can be located using CC URINQ or XSINQ, Release using URC 8 and request Rejects cancel the DLN and route to Unidentified or Excess Collections.
    The unpostable is a debit, The posted credit cannot be located, Contact the originator for resolution.
  11. UPC 316 RC 1 Doc Code 45 (TC 720/740/841/898/899) - Research CC IMFOL, CC BMFOL and CC MFTRA to determine if the transaction is addressing the correct module.

    IF AND THEN
    TC 840 or 846 is present with the same money amount,   Input URC 6 to correct the date.
    There is a discrepancy in the posted money amount,   Prepare Form 3245, Posting Voucher - Refund Cancellation or Repayment, to Accounting. Release using URC 1 nullifier 41 and route the case to Accounting.
    Other than a money discrepancy, Unable to resolve the case, Prepare Form 3245, Posting Voucher - Refund Cancellation or Repayment, to Accounting. Release using URC 1 nullifier 41 and route the case to Accounting.
  12. UPC 316 RC 1 Doc Code 54 - Doc Code 54 is GUF Auto-Closed URC 2 to originator.

  13. UPC 316 RC 1 Doc Code 51 - The unpostable is a Doc Code 51 and has repeated due to a posted transaction on the account preventing corrections to be made. Release using URC 2 to the originator.

    Note:

    The CC UPTIN amount must be zero.

  14. UPC 316 RC 1 TC 844 - Research to determine if the transaction is addressing the correct module and resolve according to the following table:

    Note:

    For additional information refer to IRM 21.4.5, Erroneous Refunds.

    IF