3.13.222 BMF Entity Unpostable Correction Procedures

Manual Transmittal

November 13, 2017

Purpose

(1) This transmits revised IRM 3.13.222, Campus Document Services, BMF Entity Unpostable Correction Procedures.

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 General Information from IRM subsection 3.13.222.1 to IRM subsection 3.13.222.2 and IRM References from 3.13.222.2 to IRM 3.13.222.3.

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

(3) IPU 17U0370 issued 02-24-2017 Revised charts throughout IRM to make them Section 508 compliant.

(4) IRM 3.13.222.3(1) Bullet 33 - Correct title for IRM 20.2.1 per CD Feedback.

(5) IRM 3.13.222.4 - Added Form 8804, Annual Return for Partnership Withholding Tax (Section 1446) per CD Feedback.

(6) IRM 3.13.222.10(1) - Added a Note stating, Electronic, digital, or stamped signatures are not acceptable for an election per CD Feedback.

(7) IRM 3.13.222.12(1) - Added time frame on when to have cleared.

(8) IRM 3.13.222.12(4) - Dates changed in chart per CD Feedback.

(9) IPU 17U0640 issued 04-06-2017 IRM 3.13.222.15(1) - Added a Note for the 45 day period.

(10) IPU 17U1134 issued 07-13-2017 - IRM 3.13.222.20(7) - Corrected link to IRM 3.12.32.13. SERP Feedback 201704148.

(11) IRM 3.13.222.29(3)j) - Updated URC 6 verbiage per CD Feedback.

(12) IRM 3.13.222.32(6) - Added links to specific IRMs per CD Feedback.

(13) IRM 3.13.222.33(1)d) - Removed Form 2290.

(14) IRM 3.13.222.35(4) - Added verbiage for repeat or TE initiated unpostable per CD Feedback.

(15) IRM 3.13.222.35(8) - Added specific link to 3.12.279.110 per CD Feedback.

(16) IRM 3.13.222.36(1) - Added more specific IRM links and split (2) into 2 paragraphs per CD Feedback.

(17) IRM 3.13.222.36(7) - Added (7) for In Care Of name with link to IRM 3.13.2.2.7.

(18) IPU 17U0640 issued 04-06-2017 IRM 3.13.222.39.1 - Changed title to a posted e-filed return. SERP Feedback 201701844.

(19) IPU 17U0845 issued 05-12-2017 IRM 3.13.222.39(19) - Corrected link to IRM 3.13.2.2. SERP Feedback 201703038.

(20) IPU 17U0370 issued 02-24-2017 IRM 3.13.222.39(20) - Added verbiage "or within the same campus" . SERP Feedback 201700640.

(21) IPU 17U0370 issued 02-24-2017 IRM 3.13.222.39(21) - Added forms that should be processed in Entity Unpostables and to edit the tax period on prior year returns. SERP Feedback 201700641.

(22) IPU 17U0033 issued 01-03-2017 IRM 3.13.222.39(33) - Added a new (33) for replies received from taxpayer. Following parens were re-numbered. SERP Feedback 201606464. Start-up 2017.

(23) IPU 17U0484 issued 03-10-2017 IRM 3.13.222.39(35) - Added instructions to edit CCC "E" onto Form 1120, Form 1120S and Form 1041 when assigning an EIN and the return is claiming a refund.

(24) IPU 17U0845 issued 05-12-2017 IRM 3.13.222.39.3(2) and (3) - Removed IRMs referring to due dates of returns and only kept IRM reference for extension dates.

(25) IRM 3.12.279.48(1) - Added Form/MFT/Doc Code chart per CD Feedback.

(26) IPU 17U0640 issued 04-06-2017 IRM 3.13.222.48(13) G - Added instruction in no reply for payments "and/or MFT" . SERP Feedback 201701871.

(27) IPU 17U0640 issued 04-06-2017 IRM 3.13.222.48(13) J - Added instruction in no reply for payments "and/or MFT" . SERP Feedback 201701871.

(28) IRM 3.13.222.48(16) - Added new (16) with instructions for the Form 8804 per CD Feedback.

(29) IRM 3.13.222.52(2) - Added instructions when the taxpayer responds with a timely filed Form 1128 per CD Feedback.

(30) IRM 3.13.222.49(4) - Added Notes for TC 054 input of fiscal year needs to match Master File per CD Feedback.

(31) IPU 17U0845 issued 05-12-2017 IRM 3.13.222.51 - Doc Code 10 added throughout the subsection. SERP Feedback 201703032.

(32) IPU 17U0370 issued 02-24-2017 IRM 3.13.222.61(1) M) - Added Caution to M) "No Reply" in chart if unpostable has a fiscal year issue to cancel DLN. SERP Feedback 201701063.

(33) IPU 17U0640 issued 04-06-2017 IRM 3.13.222.62(2) - Added instructions when there is a TC 076 on the account. SERP Feedback 201701877.

(34) IPU 17U0797 issued 05-03-2017 IRM 3.13.222.62(3) - Added instructions on Entity Rejects. The cases will not be converted or cancelled as Rejects. They will annotate case to let unpost.

(35) IPU 17U0967 issued 06-07-2017 IRM 3.13.222.62(3) B) - Added 6800sce as option for returning Form 2553 when incomplete. SERP Feedback 201703294.

(36) IPU 17U0752 issued 04-27-2017 IRM 3.13.222.62(3) - Added verbiage when the Form 2553 is attached and case is not coded with action code 347. SERP Feedback 201702568.

(37) IPU 17U0640 issued 04-06-2017 IRM 3.13.222.66(2) - Added instructions when a payment is on the module for No Replies. SERP Feedback 201702342.

(38) IPU 17U0845 issued 05-12-2017 IRM 3.13.222.66(2) Chart - Added a Note to bottom of chart when cancelling the DLN check BMFOLI for incorrect prior liabilities for MFT 02 and if found input 590-020. SERP Feedback 201703030.

(39) IPU 17U1274 issued 08-28-2017 IRM 3.13.222.66(2) Chart - Added instructions when a Form 8832 is attached to return.

(40) IRM 3.13.222.66(2)Chart - Added specific Letter 3852C per CD Feedback.

(41) IRM 3.13.222.67.6(1) - Changed instruction to URC 2 back to initiator per CD Feedback.

(42) IRM 3.13.222.67.7(1) - Changed instruction to URC 2 back to initiator Per CD Feedback.

(43) IRM 3.13.222.67.14(1) - Removed verbiage to contact the taxpayer per CD Feedback.

(44) IPU 17U0640 issued 04-06-2017 IRM 3.13.222.67.10(1) - Added instructions when the TC 076 cycle date is later than the TC 077.

(45) IRM 3.13.222.73.1(1)B)d) - Fourth box in Then removed Nor TC 054 verbiage and relettered remaining Then boxes.

(46) IRM 3.13.222.73.1(1)D)a) - Added verbiage for fiscal year filer per CD Feedback.

(47) IPU 17U0845 issued 05-12-2017 IRM 3.13.222.73.3(1) - Removed IRMs referring to due dates of returns and only kept IRM reference for extension dates.

(48) IRM 3.13.222.73.3(6)C) - Then chart request Rejects to renumber as PSC per CD Feedback.

(49) IRM 3.13.222.73.3(7)A)c) - Then chart request Rejects to renumber as 1120 per CD Feedback.

(50) IRM 3.13.222.73.3(7)B)b) - Then chart request Rejects to renumber as 1120 per CD Feedback.

(51) IPU 17U0640 issued 04-06-2017 IRM 3.13.222.73.5(1) - Changed Fax number to EEFax number. SERP Feedback 201701834.

(52) IPU 17U0640 issued 04-06-2017 IRM 3.13.222.73.6(1) - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(53) IPU 17U0657 issued 04-10-2017 IRM 3.13.222.73.6(1) - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(54) IPU 17U0370 issued 02-24-2017 IRM 3.13.222.73.6.1(1) Note - Added page and line information from Form 1120 to verify member information. SERP Feedback 201700321.

(55) IRM 3.13.222.73.6.1(1) - Added links to 3.13.222.22 in Notes for payments per CD Feedback.

(56) IRM 3.13.222.73.6.2(1) - Added links to 3.13.222.22 in Notes for payments per CD Feedback.

(57) IPU 17U0370 issued 02-24-2017 IRM 3.13.222.73.6.2(1) Note - Added line information from Form 1120S to verify member information. SERP Feedback 201700321.

(58) IPU 17U0370 issued 02-24-2017 IRM 3.13.222.73.6.2(1) A) and D) - Corrected letter referenced and added verbiage for a timely filed Form 1120S. SERP Feedback 201700642.

(59) IPU 17U0370 issued 02-24-2017 IRM 3.13.222.73.6.2(1) E) c) and H) a) - Corrected link to IRM 3.13.222.108.4 for E) c) and added link IRM 3.13.222.110 to H) c). SERP Feedback 201701064.

(60) IPU 17U0967 issued 06-07-2017 IRM 3.13.222.73.6.2(1) P) - Added P to chart when Form 2553 is attached to refer to 3.13.222.62. SERP Feedback 201703294.

(61) IPU 17U0370 issued 02-24-2017 IRM 3.13.222.73.6.3(1) Note - Added line information from Form 1065 to verify member information. Added Note to chart under E) and to see A) - D) above if TC 076 is present. SERP Feedback 201701064.

(62) IRM 3.13.222.75(1) - Added payment verbiage per CD Feedback.

(63) IPU 17U0967 issued 06-07-2017 IRM 3.13.222.76(1) - Changed title to Unpostable Code (UPC) 329 Reason Code (RC) 2 and (RC) 4. Added instructions for Reason Code 2. SERP Feedback 201703031.

(64) IPU 17U1274 issued 08-28-2017 IRM 3.13.222.79(8) - Added to Chart E for SFR returns and F for Technical Terminations. SERP Feedback 201701781.

(65) IRM 3.13.222.79(8)B)b)1)a) - Added instructions to close unpostable per duplicate or amended procedures after name change per CD Feedback.

(66) IRM 3.13.222.106(1) - 2nd bullet added language saying TC 053 does not need an effective date per CD Feedback.

(67) IPU 17U0640 issued 04-06-2017 IRM 3.13.222.106.1(1) - Added street addresses for Private Delivery Service (PDS) use where IRM reflected only PO Boxes.

(68) IRM 3.13.222.106.2(1) - Added instructions to route Form 3465 to AM if mis-applied extension is discovered.

(69) IPU 17U0640 issued 04-06-2017 IRM 3.13.222.106.3(1) - Added street addresses for Private Delivery Service (PDS) use where IRM reflected only PO Boxes.

(70) IRM 3.13.222.106.3.3(2) - Added instructions to ask taxpayer to verify their address.

(71) IPU 17U0640 issued 04-06-2017 IRM 3.13.222.106.4(4) - Added Note at bottom of chart with street addresses for Private Delivery Service (PDS) use where IRM reflected only PO Boxes.

(72) IPU 17U0640 issued 04-06-2017 IRM 3.13.222.106.5(3) - Added street addresses for Private Delivery Service (PDS) use where IRM reflected only PO Boxes.

(73) IRM 3.13.222.106.6(1) - Added language regarding Form 6502, Employee Source Document Folder Label.

(74) IRM 3.13.222.106.6(1) - Added specific verbiage for transaction codes for Form 1128 per CD Feedback.

(75) IRM 3.13.222.106.9(1)d) - Added language regarding Form 6502, Employee Source Document Folder Label.

(76) IRM 3.13.222.107(5) - Added (5) listing specific transaction codes for processing the Form 8716 per CD Feedback.

(77) IRM 3.13.222.107.2(2) - Added language regarding Form 6502, Employee Source Document Folder Label.

(78) IRM 3.13.222.107.3(2) -Added language regarding Form 6502, Employee Source Document Folder Label.

(79) IPU 17U0967 issued 06-07-2017 IRM 3.13.222.108(8) and (10) - Removed instructions to suppress CP 264 as the notice revision is complete.

(80) IPU 17U0967 issued 06-07-2017 IRM 3.13.222.108.2(1) (e) - Removed instructions to suppress CP 264 as the notice revision is complete.

(81) IPU 17U1274 issued 08-28-2017 IRM 3.13.222.108.2(7) - Added more descriptive text describing SSNs beginning with 9 in Form 2553 section.

(82) IPU 17U0370 issued 02-24-2017 IRM 3.13.222.108.2(10) - Clarified instructions.

(83) IRM 3.13.222.108.3(5) - Added text stating a timely stamped Form 2553 is acceptable proof of a timely filed election.

(84) IPU 17U0640 issued 04-06-2017 IRM 3.13.222.108.4(3) - Added a Note: "Always ensure the IRS received date of the Form 1120S is also entered on Form 2553" . SERP Feedback 201701867.

(85) IRM 3.13.222.108.4(6) - Combined two Notes into one.

(86) IRM 3.13.222.108.4(11) - Deleted (11) as the text was outdated.

(87) IPU 17U1134 issued 07-13-2017 IRM 3.13.222.108.4(15) - Added text stating any extension posted to MFT 02 will satisfy the requirements of Rev. Proc. 2013-30 per SERP Feedback 201703997.

(88) IPU 17U1274 issued 08-28-2017 IRM 3.13.222.108.4(16) - Revised text regarding the change in return due dates for clarification.

(89) IRM 3.13.222.108.6(4) - Added language regarding Form 6502, Employee Source Document Folder Label.

(90) IRM 3.13.222.108.6(5) - Revised text under FOE.

(91) IPU 17U0033 issued 01-03-2017 IRM 3.13.222.108.7(16) B) - Added (4) to include a scenario that was previously missing. SERP Feedback 201606315. Start-up 2017.

(92) IPU 17U0752 issued 04-27-2017 IRM 3.13.222.108.7(16) B)a) - Added instructions to suppress notice and send 385C letter. SERP Feedback 201702569.

(93) IPU 17U0797 issued 05-03-2017 IRM 3.13.222.108.7(16) B)a) - Removed instructions added by SERP Feedback 201702569. The 2553 IAT SET Tool will have to be enhanced.

(94) IPU 17U0978 issued 06-08-2017 IRM 3.13.222.108.7(16) B)a) - Added instructions to suppress notice and send 385C letter. The 2553 IAT SET Tool has been enhanced.

(95) IPU 17U1134 issued 07-13-2017 IRM 3.13.222.108.7(21) - Added text stating any extension posted to MFT 02 will satisfy the requirements of Rev. Proc. 2013-30 per SERP Feedback 201703997.

(96) IPU 17U1274 issued 08-28-2017 IRM 3.13.222.108.7(21) - Revised text regarding the change in return due dates for clarification.

(97) IPU 17U0967 issued 06-07-2017 IRM 3.13.222.108.9 - Deleted (6) to remove instructions to suppress CP 264 as the notice revision is complete.

(98) IPU 17U0033 issued 01-03-2017 IRM 3.13.222.108.17(2) - Added text saying an LLCs request to revert to their default classification must be received by the due date of their initial return. SERP Feedback 201606382. Start-up 2017.

(99) IRM 3.13.222.108.18(1)c) - Revised instructions to say the reason for the termination will now be entered in the Remarks field.

(100) IRM 3.13.222.109(10) - Added text regarding husband and wife in community property states.

(101) IPU 17U0657 issued 04-10-2017 IRM 3.13.222.109(12) row n - Corrected return due date.

(102) IRM 3.13.222.109(12) - Revised text within LLC table.

(103) IPU 17U0657 issued 04-10-2017 IRM 3.13.222.110.1(5) (6) and (7) - Added instructions for LLP/LP companies that want to be treated as a disregarded entity.

(104) IRM 3.13.222.110.2(4)a(1) - Added text stating to destroy Form 8832 and not to use the 6801sce.

(105) IRM 3.13.222.110.4 -Deleted subsection as same language is in 3.13.2.26.1.

(106) IPU 17U0033 issued 01-03-2017 IRM 3.13.222.110.4(1) - Added text stating an EIN will never be assigned to Form 8832. Start-up 2017.

(107) IPU 17U0033 issued 01-03-2017 IRM 3.13.222.110.4(1) - Added the word valid to Form 8832 Completeness section. SERP Feedback 201607275. Start-up 2017.

(108) IPU 17U0845 issued 05-12-2017 IRM 3.13.222.110.5(7) - Deleted (7) containing instructions for Ogden campus and SOI per SERP Feedback 201703029.

(109) IRM 3.13.222.110.8(1)a - Corrected letter number to 6801sce.

(110) IRM 3.13.222.110.9(1) - Deleted text stating "Form 8832 was filed in error and" and revised other language.

(111) IPU 17U0484 issued 03-10-2017 IRM 3.13.222.110.9(2) - Added Letters 3574C and 3576C to letters that can be sent to the taxpayer. SERP Feedback Control 201701378.

(112) IRM 3.13.222.10(1) - Moved text to 3.13.222.110.11.

(113) IRM 3.13.222.110.10(3) - Added text regarding taxpayer’s address.

(114) IPU 17U0033 issued 01-03-2017 IRM 3.13.222.110.11(1) - Revised text to say Foreign Forms 8832 will no longer be transshipped to Ogden. SERP Feedback 201606316. Start-up 2017.

(115) IPU 17U0484 issued 03-10-2017 IRM 3.13.222.110.11(1) - Revised text to say Foreign Forms 8832 "will be" transhipped to Ogden.

(116) IRM 3.13.222.110.11(7) - Added text regarding 6801sce.

(117) IPU 17U0033 issued 01-03-2017 IRM 3.13.222.110.11(8) - Added language describing the Irish Company Act 2014 and instructions for processing Form 8832. Start-up 2017.

(118) IPU 17U0845 issued 05-12-2017 IRM 3.13.222.110.11(9) - Added instructions for conversions under Luxembourg Law.

(119) IRM 3.13.222.110.12(1) - Added instructions for securing a copy of state paper work and instructions when response not received.

(120) IPU 17U0484 issued 03-10-2017 IRM 3.13.222.110.12(1) - Added instruction for securing documentation from the Secretary of State site. SERP Feedback 201701333.

(121) IRM 3.13.222.110.12(1) - Added instructions to update FRC as needed.

(122) IRM 3.13.222.110.12(2) - Deleted troublesome text regarding TC 090.

(123) IPU 17U0657 issued 04-10-2017 IRM 3.13.222.110.12(3) - Added hyperlink for State Reorganization/Conversion Decision Tree.

(124) IPU 17U0670 issued 04-12-2017 IRM 3.13.222.110.12(3) - Added hyperlink for State Reorganization/Conversion Decision Tree.

(125) IPU 17U0370 issued 02-24-2017 IRM 3.13.222.111(1) and (4) - Added research command codes used for undeliverables.

(126) IRM 3.13.222.111(3) - Added reference to 3.13.222.111.1 if unpostable is open.

(127) IPU 17U0370 issued 02-24-2017 IRM 3.13.222.111.1 - Added command codes used for undeliverables and processing procedures in chart A) and B). SERP Feedback 201700808.

Effect on Other Documents

IRM 3.13.222 dated October 20, 2016 (effective January 1, 2017) is superseded. The following IRM Procedural Updates (IPUs), were issued between January 3, 2017 through August 8, 2017 and have been incorporated into this IRM: 17U0033, 17U0370, 17U0484, 17U0640, 17U0657, 17U0670, 17U0752, 17U0797, 17U0845, 17U0967, 17U0978, 17U1134 and 17U01274.

Audience

Wage and Investment Submission Processing Employees

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, by identifying unpostable transactions/conditions that are not compatible with existing master file data or normal Submission Processing Campus operating procedures and their resolution. Entity Unpostables also processes specific documents related to filing requirements of the Business Master File (BMF) taxpayer.

  2. Purpose: This section provides Business Master File (BMF) 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. A portion of the daily receipts of payments, returns, transaction codes, and forms at a Submission Processing site requires research for Employer Identification Numbers (EINs) and perfection of the business taxpayer’s account. If the entity on the account and the entity on the payment/return does not match then an Unpostable is created. BMF Entity Unpostables is responsible for such research and perfection. BMF Entity Unpostables also processes specific documents related to filing requirements of the Business Master File (BMF) taxpayer. This IRM provides procedures for processing unpostable payments/returns and transaction codes by establishing, maintaining and updating entities on the Business Master File (BMF).

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)

    • § 444 - Form 8716

    • § 7519 - Form 8752

    • § 1362(a) - Form 2553

    • § 301.7701 - Form 8832

    • § 501(c)(3), 501(e), 501(f), 501(k) - Employment Code W

    • § 3705(a) - IRS Employee Contacts

    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 preform 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)

    • Secretary of State (SOS)

General Information

  1. The purpose of this IRM is to provide instructions and procedures for correcting and resolving Business Master File (BMF) Entity Unpostable cases.

  2. The mission of the ENTITY UNPOSTABLE TEAM (EUT) is to resolve all Entity related problems in a timely manner by providing the taxpayer with the highest degree of Quality Customer Service.

  3. The words "NOTE" , "CAUTION" , "EXAMPLE" , and "EXCEPTION " appear throughout the text as a reminder to be careful when following prescribed Entity procedures for case resolution.

  4. When correcting unpostables, the first thing that must be determined is that the unpostable tax return or document AND the Entity on the Master File are the same. Command Codes (CCs) BMFOL, NAMES, NAMEE, ENMOD, INOLE, NAMEB, and NAMEI are used to make this determination.

  5. Completely review the case to resolve all unpostable conditions to avoid REPEAT Entity unpostable conditions.

  6. Integrated Automation Technologies - IAT

    1. The Integrated Automation Technologies - IAT provides tools to IRS employees that simplify research, reduce keystrokes and increase the accuracy of regular work processes.

    2. When IAT is used with IRS systems it eliminates repetitive typing and making precise decisions.

    3. The use of IAT is mandatory. See the IAT web site at http://iat.web.irs.gov/ for a list of available tools and User Guides.

    4. Managers will ensure that all employees receive training on the use and application of IAT tools.

    5. Appropriate research should be completed using Command Codes NAMEE, NAMEB, NAMES and NAMEI.

  7. To view tax returns electronically filed on Modernized e-file (MeF), users must first request access to the Employee User Portal (EUP).

IRM Deviations 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.

Unpostable Point of Count

  1. The point of count is that step in the process at which the work is counted, released, completed or resolved, etc.

  2. In order to prevent duplicate counts or conflicts with "What is Counted" , "How Counted" , or "Where Counted" , the following guidelines are being issued:

    1. Receive and process Entity Unpostables by taking all actions necessary to resolve unpostables assigned or reassigned.

    2. If multiple transactions are necessary on the same entity module to correct the unpostable condition, a count of one shall be taken regardless of the number of transactions or related documents including Revenue Procedures, or correspondence required to resolve the unpostable condition.

Entity Unpostables Control Team Instructions for Routing Documents/Returns to Files

  1. To ensure Files Department operates as efficiently as possible, there are some things every Files customer should do and Entity Unpostables Control Team will:

    • 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 Document Locator Number (DLN) receiving the attachment.

    • Send employee source document folders in date and IDRS number order. These should be sent on a batch cart, not in a box. Also, the source documents should be face up and in numerical order beginning with sequence number 001.

    • Do not place (or replace) rubber bands around the returns or the folders holding the returns in pipeline.

    • Detach Form 4251, Return Charge-Outs, from all documents to be re-filed.

    • Clearly label all work going to Files. For example, ‘EMPLOYEE FOLDERS IDRS TEAMS 04232-04236 FOR 2-9-17 AND 2-10-17’ or ‘ICO ENTITY UNPOSTABLES REFILES.’

Enterprise Electronic Fax (EEFax)

  1. IRS Received Date for faxes - Enterprise Electronic Fax (EEFax) is the e-fax system used by IRS employees to send and receive fax documents. When fax receipts are timely dated by the fax machine (e.g., RECEIVED BY IRS-EEFAX 03/04/201X), no further action is required to evidence receipt.

    Caution:

    Only use the EEFax received date as the IRS Received Date on original document/return submissions. If the EEFax is a response to correspondence requesting additional information on a document/return, use the received date of the original document/return as the IRS Received Date instead of the EEFax received date.

  2. The Taxpayer Advocate Service (TAS) organization is not a point of filing and TAS employees have not been delegated the authority to accept returns for filing. Treat all TAS Received Dates as invalid by circling them out. Enter the Received Date according to instructions.

  3. 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

IRM References

  1. The following IRMs are referenced in this IRM to assist in the resolution of Business Master File (BMF) Entity Unpostable Correction Procedures.

    • IRM 1.11.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process

    • IRM 2.3.11,IDRS Terminal Responses - Command Codes TXMOD and SUMRY

    • IRM 2.3.15,IDRS Terminal Responses - Command Code ENMOD

    • IRM 2.3.16,IDRS Terminal Responses - Command Code RFINK

    • IRM 2.3.17,IDRS Terminal Responses - Command Code ESTABD

    • IRM 2.3.31,IDRS Terminal Responses - Command CodeCFINK

    • IRM 2.3.37,IDRS Terminal Responses - Command Code UPTIN For The GUF System

    • IRM 2.3.48,IDRS Terminal Responses - Command Code UPDIS For The GUF System

    • IRM 2.3.51,IDRS Terminal Responses - Command Code IMFOL

    • IRM 2.3.57, IDRS Terminal Responses - Command Code BRTVU

    • IRM 2.3.59,IDRS Terminal Responses - Command Code BMFOL and BMFOR

    • IRM 2.3.60,IDRS Terminal Responses - Command Codes NAMES, NAMEE, NAMEI, NAMEB, FINDS and FINDE

    • IRM 2.3.62,IDRS Terminal Responses - Command Code ESTAB

    • IRM 2.3.66,IDRS Terminal Responses, Command Codes PLINF and PLINQ

    • IRM 2.3.73,IDRS Terminal Responses - Command Codes TRDBV, TRERS , and TRPRT.

    • IRM 2.4.9,IDRS Terminal Responses - Command Codes ENREQ, INCHG , IRCHG, BNCHG and BRCHG

    • IRM 2.4.29, IDRS Terminal Response - Command Codes TELEA, TELEC, TELED and TELER

    • IRM 3.0.273,General - Administrative Reference Guide

    • IRM 3.10.72,Campus Mail and Work Control - Receiving, Extracting, and Sorting

    • IRM 3.11.12,SC Returns and Document Analysis - Exempt Organization Returns

    • IRM 3.11.16, Returns and Documents Analysis - Corporate Income Tax Returns

    • IRM 3.11.212, Returns and Documents Analysis - Applications for Extension of Time to File

    • IRM 3.12.32,Error Resolution - General Unpostable

    • IRM 3.12.37,IMF SC Error Resolution - General Instructions

    • IRM 3.12.166,Error Resolution - EPMF Unpostables

    • IRM 3.12.278,Error Resolution - Exempt Organization Unpostable Resolution

    • IRM 3.12.279,Error Resolution - BMF/CAWR/PMF Unpostable Resolution

    • IRM 3.13.2,Campus Document Services - BMF Account Numbers

    • IRM 3.13.12,Campus Document Services - Exempt Organization Account Numbers

    • IRM 3.13.36,Campus Document Services - EPMF Account Numbers

    • IRM 3.30.123,Work Planning and Control, Processing Timeliness Cycles, Criteria and Critical Dates

    • IRM 13.1.7,Taxpayer Advocate Case Procedures - Taxpayer Advocate Service (TAS) Case Criteria

    • IRM 20.2.1,Interest Introduction, Standards and Guidelines

    • IRM 21.7.13,Business Tax Returns and Non-Master File Accounts - Assigning Employer Identification Numbers (EIN)

Tax Returns, Tax Forms and Tax Publications References

  1. Tax returns, tax forms, tax publications and other reference material will be identified in each subsection with their complete number and name and then referred to just using the appropriate number.

  2. The following tax returns, tax forms, tax publications and revenue procedures are referenced in this IRM:

    • Form CT-1, Employer's Annual Railroad Retirement Tax Return

    • Form SS-4, Application for Employer Identification Number

    • Form SS-4, (PR), Application for Employer Identification I.D. Number (Puerto Rican Version)

    • Form SS-16, Certificate of Election of Coverage Under FICA

    • Form 11-C, Occupational Tax and Registration Return for Wagering

    • Form 56, Notice Concerning Fiduciary Relationship

    • Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return

    • Form 706-A, United States Additional Estate Tax Return

    • Form 706-D, United States Additional Estate Tax Return - under code section 2057

    • Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of nonresident not a citizen of the United States

    • Form 706-QDT, U.S. Estate Tax Return for Qualified Domestic Trusts

    • Form 709, United States Gift (and Generation - Skipping Transfer) Tax Return

    • Form 720, Quarterly Federal Excise Tax Return

    • Form 730, Monthly Tax Return for Wagers

    • Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order)

    • Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation

    • Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return

    • Form 940-EZ, Employer's Annual Federal Unemployment (FUTA) Tax Return

    • Form 940-PR, Employer's Annual Federal Employment (FUTA) Tax Return (Puerto Rican Version)

    • Form 941, Employer's QUARTERLY Federal Tax Return

    • Form 941-SS, Employer's QUARTERLY Federal Tax Return

    • Form 941-PR, Employer's Quarterly Federal Tax Return (Puerto Rican Version)

    • Form 944, Employer's ANNUAL Federal Tax Return

    • Form 943, Employer's Annual Tax Return for Agricultural Employees

    • Form 945, Annual Return of Withheld Federal Income Tax

    • Form 990, Return of Organization Exempt From Income Tax

    • Form 990-BL, Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Person

    • Form 990-EZ, Short Form Return of Organization Exempt From Income Tax

    • Form 990-N, Electronic Notice (e-postcard)

    • Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation

    • Form 990-T, Exempt Organization Business Income Tax Return

    • Form 1040, U.S. Individual Income Tax Return

    • Form 1040-A, U.S. Individual Income Tax Return

    • Form 1040-EZ, Income Tax Return for Single and Joint Filers With No Dependents

    • Form 1040-NR, U.S. Nonresident Alien Income Tax Return

    • Form 1041, U.S. Income Tax Return for Estates and Trusts

    • Form 1040 SCH H, Household Employment Taxes

    • Form 1041-A, U.S. Information Return Trust Accumulation of Charitable Amounts

    • Form 1041-ES, Estimated Income Tax for Estates and Trusts

    • Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons

    • Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding

    • Form 1065, U.S. Return of Partnership Income

    • Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return

    • Form 1120, U.S. Corporation Income Tax Return

    • Form 1120-C, U.S. Income Tax Return for Cooperative Associations

    • Form 1120-F, U.S. Income Tax Return of a Foreign Corporation

    • Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation

    • Form 1120-H, U.S. Income Tax Return for Homeowners Associations

    • Form 1120-IC-DISC, Interest Charge Domestic International Sales Corporation Return

    • Form 1120-L, U.S. Life Insurance Company Income Tax Return

    • Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons

    • Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return

    • Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations

    • Form 1120-RIC, U.S. Income Tax Return For Regulated Investment Companies

    • Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts

    • Form 1120-S, U.S. Income Tax Return for an S Corporation

    • Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B)

    • Form 1128, Application to Adopt, Change, or Retain a Tax Year

    • Form 2032, Contract Coverage Under Title II of the Social Security Act

    • Form 2290, Heavy Highway Vehicle Use Tax Return

    • Form 2363, Master File Entity Change

    • Form 2363-A, Request for IDRS Input for BMF-EO Entity Change

    • Form 2424, Account Adjustment Voucher

    • Form 2553, Election by a Small Business Corporation

    • Form 2678, Employer/Payer Appointment of Agent

    • Form 2848, Power of Attorney and Declaration of Representative

    • Form 3177, Notice of Action for Entry on Master File

    • Form 3465, Adjustment Request

    • Form 3499, Informational Transmittal

    • Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code

    • Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes

    • Form 4876, Election to be Treated as a DISC

    • Form 4876-A, Election to be Treated as an Interest Charge DISC

    • Form 5227, Split-Interest Trust Information Return

    • Form 5260, Quick Note

    • Form 5308, Request for Change in Plan/Trust Year

    • Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts

    • Form 5578, Annual Certificate of Racial Nondiscrimination for a Private School Exempt from Federal Income Tax

    • Form 5768, Election/Revocation of Election by an Eligible Section 501(c)(3) Organization to Make Expenditures to Influence Legislation

    • Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns

    • Form 8274, Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption From Employer Social Security And Medicare Taxes

    • Form 8279, Election to be Treated as a FSC or as a Small FSC

    • Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts

    • Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies

    • Form 8655, Reporting Agent Authorization

    • Form 8716, Election To Have a Tax Year Other Than a Required Tax Year

    • Form 8752, Required Payment or Refund Under Section 7519

    • Form 8804, Annual Return for Partnership Withholding Tax (Section 1446)

    • Form 8822, Change of Address (For Individual, Gift, Estate, or Generation-Skipping Transfer Tax Returns)

    • Form 8822-B, Change of Address or Responsible Party - Business

    • Form 8832, Entity Classification Election

    • Form W-7, Application for IRS Individual Taxpayer Identification Number

    • Form W-7 (SP), Application for IRS Individual Taxpayer Identification Number (Spanish Version)

    • Form W-7 A, Application for IRS Adoptions Taxpayer Identification Number

    • Publication 538, Accounting Periods and Methods

    • Publication 539, Employment Taxes

    • Revenue Procedure 1985-58

    • Revenue Procedure 1997-48

    • Revenue Procedure 2006-45 (previously 2002-37)

    • Revenue Procedure 2006-46 (previously 2002-38)

    • Revenue Procedure 2009-41

    • Revenue Procedure 2013-30

    • Document 6209 IRS Processing Codes and Information

    • Document 7475 State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries

    • Functional Specifications Package (FSP) 1.20.00.00 Generalized Unpostable Framework (GUF)

IRS Letters

  1. The IRS has numerous designated computer generated letters sent to taxpayers to inform, to request information or to request documents. All IRS letters will be identified by the number and the title in each subsection and then referred to by the number followed by the letter C and then the word Letter, e.g., 319C Letter.

  2. Office of Management and Budget (OMB) Codes are not required when issuing a letter to the taxpayer per 5 CFR 1320.3(h)(6).

  3. The following list are the C Letters used in this IRM:

    • Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office

    • Letter 104C, Address Change Acknowledgement

    • Letter 147C, EIN Previously Assigned

    • Letter 252C, Name of Business Shown on Return Needs Verification

    • Letter 312C, S Corporation Election (F2553), Revocation, or Termination Incomplete for Processing and/or Not Timely Filed

    • Letter 319C, Return Covers Other Than 12-Month Accounting Period

    • Letter 326C, S Corporation Election (F2553) Rejected/Revoked

    • Letter 335C, FTD Coupons Requested/Issued

    • Letter 385C, S Corporation Election (F2553), QSSS, QSST, ESBT Accepted

    • Letter 673C, Duplicate Returns Filed; Adjustment or Refund Explained

    • Letter 685C, SSN Invalid

    • Letter 696C, Return Requested (Final) for Discontinued Business

    • Letter 707C, Refund / Return Delayed in Processing; Refund Forthcoming

    • Letter 858C, Unemployment Return (FUTA) Filing Requirements: Form 940

    • Letter 882C, Employment Return Line Item Adjustment: Form 941,943 and 944

    • Letter 1224C, Exempt Organizations; Answers to Questions

    • Letter 1355C, Partnership Return Incomplete for Processing: Form 1065

    • Letter 1921C, Employment Code C (Form 8274): Forms 941, 944, 945

    • Letter 1997C, Backup Withholding; Employer Appointment of Agent

    • Letter 2233C, Application to Adopt, Change or Retain A Tax Year Denied

    • Letter 2284C, Delinquent Return (Form 940, 941, 943, 944)

    • Letter 2314C, Accounting Period Change (F1128) Incomplete for Processing

    • Letter 2359C, Accounting Period Change (F8716) Unacceptable (Form 1065/1120)

    • Letter 2475C, Address Change Request from an Undeliverable

    • Letter 2645C, Interim Letter

    • Letter 2696C, Exempt Organization Miscellaneous Forms Request for Missing Information

    • Letter 3008C, Corporate Return Filing Requirements: Form 1120, 1120A/S

    • Letter 3064C, IDRS Special Letter

    • Letter 3574C, The Results of Your Entity Classification Election: Form 8832

    • Letter 3575C, Your Entity Classification Election Form 8832 Was Denied

    • Letter 3576C, Your Entity Classification Election Form 8832 Was Accepted

    • Letter 3852C, Entity BMF Unpostable 329 Limited Liability Company (LLC) Returns

    • Letter 3853C, Unpostable 310 - Forms 1120/1120S Filing Requirement Mismatch

    • Letter 3916C, Unpostable 307 (FYM Issues) - Form 8716/1128 Request - Form 8752 Filed in Error

    • Letter 4086C, Entity BMF Unpostable Returns - Form 944 Filing Requirements

    • Letter 4148C, Incorrect Filing of Form 941

    • Letter 4148SP, Incorrect Filing of Form 941 - Spanish Version

Disclosure Authorization and Contact Instructions

  1. Before disclosing any tax information, the tax examiner must be sure they 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 taxpayer's 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.

  2. Before faxing information to the taxpayer, inform the taxpayer that he or she must be at the location of the fax machine at the time the fax is sent.

  3. While faxed information is not sealed and little protection may be guaranteed at the receiving end, certain precautions are to be used to protect confidential tax information. At a minimum, a cover sheet, identifying the person for whom the information is intended and how many pages are being faxed, must be used. This cover sheet should not contain specific confidential information of the taxpayer other than the name and phone number, assuming the fax is directed to the taxpayer. If faxing to an authorized third party, put the name of the third party on the cover sheet, not the taxpayer's name, TIN, or other confidential information. The information should be faxed in an order in which the cover sheet will become the first page covering the faxed tax information.

  4. The following caveat is to be used on all cover sheets. "This communication is intended for the sole use of the individual to whom it is addressed and may contain information that is privileged, confidential, and exempt from disclosure under applicable law. If the reader of this communication is not the intended recipient or the employee or agent for delivering the communication to the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this communication may be strictly prohibited. If you have received this communication in error, please notify the sender immediately by telephone (collect, if necessary), and return the communication to the address above via the United States Postal Service. Thank you."

E-Mailing Taxpayer Information To Taxpayer/Representative Is Unauthorized

  1. IRS employees may never send sensitive but unclassified data by electronic mail to taxpayers, their representatives and/or other non-IRS/Treasury parties, even if the other party uses encryption software. Such action would pose a risk to the taxpayer's privacy since it would be possible for a third party to intercept taxpayer information and create an unauthorized disclosure, see IRM 1.10.3.2.1(7), Standards for Using E-mail.

Corresponding/Calling Taxpayers For Incomplete Information

  1. If the taxpayer files an incomplete form, it is only necessary to suspend the processing of the return once for the missing information. For example, taxpayer files a Form 1120S, but no Form 2553 is on file. Send the taxpayer a 3853C Letter informing the taxpayer to send in a completed Form 2553 within the required time frame. Taxpayer responds with Form 2553, but Form 2553 is missing information (refer to IRM 3.13.222.108.1 for completeness). Call and request the taxpayer fax the missing information within 2 days. If taxpayer does not reply within 2 days, or no contact can be made with the taxpayer via phone, take the appropriate action to close the unpostable. If Form 2553 is a response to UPC 310 RC 4 and is an incomplete/duplicate Form 2553 refer to IRM 3.13.222.108.7 for returning the Form 2553.

  2. 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.

    Note:

    See IRM 21.1.3,Accounts Management and Compliance Services Operations - Operational Guidelines Overview and IRM 11.3.1,Disclosure of Official Information - Introduction to Disclosure for authorized and unauthorized disclosures when initiating telephone contacts.

  3. If the incomplete document is being used as the source document for correcting an effective date or FYM, do not contact the Taxpayer for a complete document.

  4. When sending a correspondex letter and Receipt and Control was not required to date stamp the return, determine the received date using the following priorities:

    1. SCAMPS date sprayed on the envelope;

    2. Latest postmark on the envelope or latest date from a designated private delivery service mark (Note: When the envelope or label is not attached, use the postmark date stamped or handwritten on the return to determine the received date);

    3. Latest date by the taxpayer's signature;

      Exception:

      Use the signature date for prior year returns only when it is within the current year; also, do not use the signature date to determine the received date for replies to correspondence

    4. Julian date minus 10 days (Julian date is in the DLN; see Document 6209);

    5. Today's (current) date minus 10 days.

  5. Annotate cases "Per call" when missing information is received from telephone contact.

  6. When returning incomplete documents to the taxpayer, all internal documents must be removed from the enclosure and the IRS received dates will be X'd out in blue ink.

Taxpayer Advocate Service Level Agreements

  1. The National Taxpayer Advocate and the Commissioner, Wage and Investment (W&I) Division have reached an agreement outlining the procedures and responsibilities for processing Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete a case transaction rests with the W&I Division. The agreement is known as a Service Level Agreement (SLA).

  2. In preparation for a case being referred to a W&I Division function, the TAS employee is responsible for:

    1. Preparing Form 12412, Operations Assistance Request.

    2. Securing all necessary supporting documentation.

    3. Identifying cases that require expedite processing. No case will automatically receive expedite processing; requests for expedite processing will be made on a case-by-case basis.

    4. Forwarding Form 12412 and documentation to the W&I Business Unit Liaison.

  3. W&I Division is responsible for:

    1. Assigning a liaison in each office or Campus where a Taxpayer Advocate is located.

    2. Acknowledging receipt of the case within one (1) workday for cases requiring expedite processing or within three (3) workdays for all other cases.

    3. Responding to TAS within three (3) workdays in writing, via facsimile, secure messaging e-mail, or hand delivery of resolution.

    4. Providing TAS with the name and telephone number of the W&I group manager or employee assigned the case.

    5. Determining a reasonable time frame for case resolution.

    6. Closing the OAR, the W&I employee assigned the OAR will complete Section VI of Form 12412, Operations Assistance Request and return it to the TAS employee assigned the case. The Form 12412 must be returned within three (3) workdays from the date that all actions have been completed and transactions input.

  4. For further information, refer to the W&I SLA online at http://tas.web.irs.gov under the heading "Policy/Procedures/Guidance" .

Taxpayer Bill of Rights

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

  2. Publication 1, Your Rights as a Taxpayer was updated to include the modified language from the Taxpayer Bill of Rights.

  3. Taxpayers have the right to receive prompt, courteous and professional assistance in their dealings with the IRS.

  4. They are to be spoken to in a way that is easily understood and any correspondence from the IRS must be clear and understandable.

  5. They have the right to speak to a supervisor whenever quality service is not received.

Fax Signatures

  1. When contact with the taxpayer has been made and documented, fax signatures are acceptable as part of the return perfection.

    Note:

    Electronic, digital, or stamped signatures are not acceptable for an election.

  2. Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to determine which method of contact will be used.

  3. Code and Edit examiners will indicate the fax paragraph on the approved Correspondence Action Sheet, to advise the taxpayers of the option to fax their response.

Security

  1. Service officials and managers must communicate security standards contained in IRM 10.2Physical Security Program, to employees and establish methods to enforce them. Employees are responsible for taking required precautions in providing security for the documents, information, and property which they handle in performing official duties.

  2. Employees may access tax accounts using the IDRS only when their official duties require them to do so. Unauthorized accesses to tax accounts, such as accesses made to satisfy personal curiosity or to engage in fraud are prohibited. Employees who make unauthorized accesses to tax accounts are subject to disciplinary action and criminal penalties. All employees are responsible for adhering to the provisions in Section 1203(b)(4) of the Restructuring and Reform Act (RRA) of 1988, which prohibits IRS employees from falsifying or destroying documents. In addition, employees must adhere to the requirements of IRC Section 6103, Confidentiality and Disclosure of Returns and Return Information.

Statute Dates

  1. This section contains information on statute dates. If the Assessment Statute Expiration Date (ASED) is imminent (two months prior to the ASED) notify the manager or work leader and initiate the necessary action to resolve the case.

  2. The ASED is identified by General Unpostable Framework (GUF) and must be monitored to assure that statute does not expire.

  3. The ASED Statute is generally determined as three years after the Return Due Date (RDD) or IRS received date, whichever is later. See Document 6209, IRS Processing Codes and Information , for RDD information.

    Note:

    A return under statute criteria must be statute cleared every 90 days until posted. Statute clearance is not necessary if the return will be cancelled.

  4. Example of statute for a timely filed return:

    Form Tax Period IRS Received Date Return Due Date Statute Date
    1120 201507 9-10-2015 10-15-2015 10-15-2018
    941 201503 4-20-2015 4-30-2015 4-30-2018
    720 201506 6-20-2015 7-31-2015 7-31-2018
  5. Example of statute for a late filed return:

    Form Tax Period IRS Received Date Return Due Date Statute Date
    1040 201512 5-15-2016 4-15-2016 5-15-2019
    1065 201512 8-03-2016 4-15-2016 8-03-2019
    990 201504 9-30-2015 9-15-2016 9-30-2018
  6. If the ASED is imminent (two months prior to the ASED) notify the manager or work leader and initiate the necessary action to resolve the case.

Notifying Taxpayers After Correcting Unpostable Data

  1. Business Master File (BMF)

    1. Whenever the Employer Identification Number (EIN) on the unpostable tax return or document by the taxpayer is changed, use the appropriate letter to notify the taxpayer of the correct EIN.
      Exception: Do not send the 147C for any of the following reasons:
      If the filer is using a SSN;
      If the EIN is missing digits, transposed digits, or only one or two digits are incorrect;
      If the EIN has merged to another number;
      If the EIN was recently established TC (000) within six to eight cycles;
      If a 147C letter was previously issued within the last 45 days;
      If corresponding with taxpayer on another matter.

Identification Requirements For IRS Employees

  1. This section contains information on the Restructuring and Reform Act (RRA) of 1998, Section 3705(a), and provides identification requirements for all IRS employees working tax related matters.

    1. IRS employees are required to give their name and unique identification number any time they contact taxpayers or their personal representatives by telephone, correspondence or in person.

    2. A telephone number to contact the IRS is required on all taxpayer correspondence.

    3. This will provide taxpayers or their personal representatives with enough information to identify the IRS employee who had previously assisted them with tax related matters.

  2. All IRS employees who communicate by telephone, correspondence, or in person with taxpayers or their personal representatives on tax related matters, are required to provide (at a minimum) the following information:

    1. With all telephone contacts tax examiner must provide his/her title (i.e., Mr., Mrs., Ms., Miss) last name and their unique identification number.

    2. For all in-person contacts tax examiner must provide his/her title, last name and their unique identification number.

    3. Never leave any taxpayer information on the taxpayer's answering machine or voice mail per IRM 11.3.2 .

  3. All Correspondence to taxpayers or their personal representatives must contain a contact telephone number where the taxpayer's question(s) can be answered, tax examiner title, last name and provide their IDRS Number, Letter System or unique identification number.

    1. The IDRS number and numbers for some other Letter Systems are automatically generated. If it is not generated or a handwritten note is prepared, tax examiners unique identification number must be used.

    2. Employees who have toll free telephone numbers may also provide their location for identification purposes. Fax to taxpayers on tax-related matters are considered manually generated correspondence and must include the 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 the employee who had previously handled the inquiry or complains about the level of customer service previously provided, every attempt should be made to resolve the taxpayer's inquiry. If the issue cannot be resolved, then the employee should refer the inquiry to his/her manager.

    5. CORRESPONDEX letters will provide a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to questions that the taxpayer may have about the CORRESPONDEX Letter or if the taxpayer has been directed to provide additional case related information.

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

    7. Secretaries, receptionists or people who answer the telephone in functional offices need to identify themselves and provide their Badge Identification Number only if they are answering telephones which are routinely used to provide tax return or tax account information, or if they provide a substantive response to the taxpayer's inquiry.

    8. It is not necessary to repeat the unique identification 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 his/her unique identification number on the first contact.

  4. Letters generated by Submission Processing must be approved by Headquarters when they are intended for dissemination to 10 or more persons. These letters are numbered in accordance with IRM 1.17.1 and IRM 1.17.2, Printing and Publication form letters, pattern letters, and pattern paragraphs are prescribed by Headquarters for use in campuses. Do NOT make changes to text format, date of issue (or revision), or physical characteristics of these letters and paragraphs without prior Headquarters approval. In addition, Quick Notes that are computer generated must be forwarded to Headquarters for approval. Submit requests for new letters using Form 1767, Publishing Services Requisition, following procedures outlined in 1.17.1 and 1.17.2. For minor changes or additions to current letters, follow procedures in 3.0.275, Business Results Measures for Submission Processing functions.

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.

    Note:

    Expeditious processing of refund returns is critical if the 45 day period is about to expire.

  2. A manual refund (TC 840) is a refund that is issued in cases which the IRS has determined expedited processing is required 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. Manual refunds are requested on either Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund.

  4. Initiators of manual refunds or other management designated employee are responsible for monitoring accounts using CC TXMOD until the TC 840/846 has posted. If necessary, refer to IRM 21.4.4 and IRM 3.17.79 for additional monitoring requirements.

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

  6. Entity Unpostables is only responsible for identifying the need for a manual refund and prioritizing the processing of the case. Please follow chart below for the related return:

    If And Then
    A. The unpostable case is a Form 1120 series return that includes the taxpayer requesting a refund amount of $25,000 or more, the case will need a manual refund. The unpostable is a UPC 310, 329 or 307 issue and there is not a TC 840 or TC 846 on TXMOD, indicating a refund has not been issued. Determine which correspondence letter, 3852C, 3853C or 3916C, is appropriate to be sent to the taxpayer requesting the necessary information to resolve the case and suspend the case for 60 days.
    B. Taxpayer replies The taxpayer replies with the correct information to resolve the case, input the necessary transactions to correct the account. 1. Close the case with a URC 8.
    2. Attach proper routing form to request Rejects to "Manual Refund input CCC O".
    3.
    Do not edit the O on the return.
    4. Edit the Correspondence Received Date (CRD) in the audit trail.
    5. Release per local procedures.
    C. No Reply The taxpayer replies with incorrect information or there is no other information available to correct the account. Close with regular no reply procedures.

    Caution:

    Do not URC 0 to close a manual refund case. If research indicates that a TC 840 or TC 846 has posted on TXMOD indicating that a refund has been issued for the unpostable case, close the case as an "Amended Return" with URC 6 and input the CCC G in the CCC field on UPRES. Edit the CCC G on the return. If the case is closed with a URC 0, the refund will be re-issued in error. Release per local procedures.

       
    D. The unpostable case is a Form 1041 return UPC 331 and the taxpayer is requesting a refund amount of $25,000 or more, the case is a manual refund. Research indicates that the unpostables return is a possible duplicate for the tax period, however there is no TC 840 or TC 846 on TXMOD, indicating that a refund has not been issued. 1. Close the case with URC 6 and input G in the CCC field of UPRES, with the remarks "Amended Return" .
    2. Edit the CCC G on the return.
    3. Release per local procedures.
    E. The unpostable is a Form 1041 UPC 331 and the taxpayer is requesting a refund amount of $25,000 or more, the case is a manual refund. Research indicates the return has posted on the incorrect tax period and there is no return posted on the correct tax period and there is no TC 840 or TC 846 on TXMOD, indicating that a refund has not been issued. 1. Close the case with a URC 8, requesting Rejects to post return to tax period and input CCC O.
    2. Do not edit CCC O on the return.
    F. The unpostable is a Form 1041 return UPC 331 and the taxpayer is requesting a refund amount of $25,000 or more, the case is a manual refund. Research indicates the return is a possible duplicate for the correct tax period and there is a TC 840 or TC 846 on TXMOD, indicating that a refund has been issued and all the money amounts are the same. 1. Process the return as a duplicate and close with URC 8, requesting Rejects to "cancel DLN and associate with return on file."
    2. Release per local procedures.
    G. If correspondence is not needed, the unpostable is requesting a refund amount of $25,000 or more. Research indicates there is not a TC 840 or TC 846 on TXMOD, indicating a refund has not been issued. 1. Close the case URC 8 with remarks "Manual Refund input CCC O".
    2. Attach proper routing form to request Rejects to "Manual Refund input CCC O".
    3. Do not edit the CCC O on the return.
    4. Release per local procedures.

    Note:

    Ensure all actions to resolve the unpostable are notated on the rejects routing slip and complete all necessary actions before closing to prevent the unpostable from repeating.

    Note:

    If the return is an e-filed return and needs to be closed with a URC 8, release per local procedures.

Offset Bypass Refund (OBR)

  1. In certain 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. Additional information concerning OBRs may be found in IRM 21.4.6,Refund Inquiries - Refund Offset.

  2. To properly evaluate a hardship situation, consider the following points:

    1. Will the taxpayer be able to retain housing?

    2. Will the taxpayer be able to obtain food?

    3. Will the taxpayer be able to retain utilities?

    4. Will the taxpayer be able to retain or obtain transportation to and from work?

    5. Will the taxpayer be able to remain employed?

    6. Will the taxpayer be able to obtain essential medical treatment and/or medication?

    7. Will the taxpayer be able to obtain reasonable clothing and/or shoes?

    8. Will the taxpayer sustain an avoidable loss of education?

    9. Will irreparable damage be caused to the taxpayer's credit rating?

    10. Will the taxpayer be unable to meet payroll and/or be in imminent danger of bankruptcy?

    11. Is the hardship imminent?

Cycling Unpostables

  1. There are cases when an input transaction or the unpostable must be cycled to be input at different times.

  2. Transactions post to the Master File (MF) in numeric order except for the following:

    1. TC 011 always posts last to the entity portion of the MF; it will re-sequence to the next cycle.

    2. On the Business Master File (BMF), a TC 150 always posts last to allow the tax module to settle properly.

      Example:

      TCs 610, 670, 590 and 150 all attempt to post in the same cycle; they will post in this order: TC 590, TC 610, TC 670 and TC 150. The TC 610 and 150 unpost as UPC 399-2.

  3. The input transaction must be posted before the corrected unpostable can post:

    1. The unpostable must be delayed for at least one cycle or more, if necessary.

    2. The release cycle is input on line 9 with CC UPRES.

  4. The Master File will sometimes re-sequence transactions. When this happens, it will be identified on IDRS as "RS" if the account is on IDRS.

  5. EXCEPTION: If a TC 610 or the TC 670 and TC 150 attempts to post in the same cycle, the system will not let the TC 150 repeat. Always cycle appropriately to ensure the TC 610 or TC 670 and TC 150 do not unpost as UPC 399-2. The TC 610 or the TC 670 must post before the TC 150.

  6. Unpostable corrections may require a cycle delay, if the normal MF input cycle is before the corrected unpostable cut off cycle.

  7. The processing time frame for all BMF unpostables directly assigned to Entity Unpostable Team (EUT) or reassigned to EUT, is twenty calendar days from receipt of all necessary documents, (which equals 14 workdays.) See IRM 3.30.123,Work Planning and Control, Processing Timeliness: Cycles, Criteria and Critical Dates, for additional information on processing time frames.

CADE 2 (Customer Account Data Engine 2)

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

  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 timeframes are outlined as follows:

    1. Transactions will be viewable using CFOL command codes on Saturday following the weekly Master File processing run on Thursday.

    2. Transactions will be viewable as posted transactions using 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.

  5. Cycle posting dates will reflect a format of YYYYCCDD. YYYY will indicate the year. CC will indicate the posting cycle. For IMF transactions, the following values for DD are defined:

    • 01 = Friday

    • 02 = Monday

    • 03 = Tuesday

    • 04 = Wednesday

    • 05 = Thursday

    Note:

    BMF cycle posting dates on BMFOL will continue to reflect YYYYCC. YYYY will indicate the year. CC will indicate the posting cycle. BMF cycle posting dates in TXMOD will reflect a format of YYYYCCDD. The DD value will be 08.

Primary Transaction Code (TC) Pre Journalized (PJ) Amounts

  1. To reduce the amount of interest paid by the IRS due to untimely processing of tax returns, the Primary TC PJ Amount or Interest Reduction Overpayment Amount will indicate that a refund is due to the taxpayer.

  2. An "Unpostable Case With Interest Free Period Due to Expire" is an alert to resolve the unpostable as quickly as possible.

  3. The unpostable cases (TC 150) with a refund (the amount is shown with a minus sign) due should be monitored and corrected expeditiously to avoid paying interest with the refund.

  4. The interest free period is 45 days after the Return Due Date (RDD) or Received Date or Return Processable Date, whichever is later.

  5. See IRM 3.12.32,General Unpostables, for additional procedures.

Entity Mismatch Between the Master File and the Unpostable

  1. Research entities via Command Codes (CC) NAMEB, ENMOD, and INOLE, and use CCs, NAMES,NAMEE, NAMEB, IMFOL, BMFOL and NAMEI, to determine differences in the taxpayer's name, address, filing requirements, Fiscal Year Month (FYM) or employment codes.

  2. Before applying a return to a different EIN, always compare the return’s deposit history with the deposits posted on Master File for the tax period of the return. For specific locations on applicable returns see chart below:

    Form Number Location of Deposit History
    940 Part 4, Item 15
    941 Part 1 Item 13 or Part 2
    943 Area between Item 16 and Item 17
    944 Part 1 Item 8
    945 Item 4
    1120 Item 32
    1041 Item 25
    1042 Item 68
    720 Part III, Item 5
    2290 Part I, Item 5
    7004 Part V, Item 7
    1066 Section II, Item 2
    8752 Item 2
  3. If research indicates differences between the MF and the unpostable condition then:

    1. Update the master file via CCs BNCHG or INCHG. Refer to IRM 3.13.2.2 for guidance on the correct entity structure.

    2. If necessary, assign a new EIN to the account. Refer to IRM 21.7.13, Assigning Employer Identification Numbers (EIN).

  4. If research DOES NOT provide sufficient information to correct the Unpostable Condition (UPC), then contact the taxpayer.

Resolving Taxpayer Identification Number (TIN) Problems

  1. Always research completely to determine if the TIN agrees with the MF.

  2. If the unpostable TIN is incorrect and another TIN is found via research, edit the TIN on the document and close the unpostable with an Unpostable Resolution Code (URC) 6 and send 147C letter is necessary. Refer to IRM 3.13.222.39(21) for correct audit trail.

    1. If the TIN is incorrect and a good TIN cannot be located, assign a new TIN. Use CC ESIGN for the BMF, refer to IRM 21.7.13, the Reason Applied field is not needed. Edit the new TIN on the document and close the unpostable with an Unpostable Resolution Code (URC) 6.

      Note:

      Historically, a new EIN would be assigned to a corporation that has re-chartered. However, Chief Counsel has determined if the business ownership remains the same, the original EIN should be retained and used by the taxpayer.

    2. If two or more TINs are located for the same entity a consolidation should be input. Using the appropriate form, route to Entity with the following information: A copy of the first page of the unpostable return, and taxpayer's correspondence, and or supporting documentation (if any). Annotate routing actions in the lower left hand corner. Do not suspend the unpostable. Every attempt must be made to post the return to Master File before sending the consolidation to Entity Control.

      Note:

      Refer to IRM 3.13.2.13 for additional information on Multiple EINs.

Nullification Codes

  1. A Nullification Code must be entered to identify the receiving area for the closed unpostables when closing an unpostable with URC 1, 2, or 8.

  2. Nullification listings are printed for each of these areas based on the nullification code used.

  3. Any cases input by Code and Edit area should be given Nullify-Area Code 02 – Accounts Management.

  4. The nullify area codes are entered on Line 2 in positions 6 and 7 on the CC UPRES screen.

  5. If a nullification code is not entered, an error message will be displayed.

  6. A Nullification code is not needed for URCD.

  7. Please refer to IRM 3.12.32.13, General Unpostables, for information on Nullification Codes.

Accounting Period Changes

  1. Generally, a taxpayer must request acceptance from the Service prior to changing an established tax year accounting period. The initial return (TC 150) or extension (TC 620 with 460) and estimated payments filed by the taxpayer, will establish the Fiscal Year Month (FYM). Transaction codes 053/054/055 are an indication of an FYM change. An approved tax year end is identified by the following:

    1. A TC 053 identifies an FYM change from Form 1128, (other than Revenue Procedure 2006-46).

    2. A TC 054 identifies an FYM change from Form 1128 or Form 2553, approved under Revenue Procedure 2006-46. A TC 054 also identifies a Section 444 election by a Personal Service Corporation.

    3. A TC 055 identifies an FYM change from Form 8716.

    4. A TC 057 identifies a termination of a Section 444 election.

    5. A TC 058 identifies a DENIED Form 8716, and a TC 059 identifies a DENIED Form 1128.

    6. There is an indication of a change in entity.

    7. See IRM 3.13.222.106 and IRM 3.13.222.107 for instructions for processing Form 1128 and Form 8716.

    Note:

    The Tax Reform Act of 1986 required that Trusts use a calendar year, with the exception of trusts exempt under the Internal Revenue Code (IRC) Section 501(a). Exemption From Tax on Corporations, Certain Trusts, etc., or those described in the IRC Section 4947(a)(1) Application of Taxes to Certain Nonexempt Trusts. Partnerships, S Corporations and Personal Service Corporations must use a required tax year (the same tax year as their owners), usually December 31st, unless a business purpose is established for a fiscal year. This was effective for tax years beginning after December 31, 1986.

  2. Revenue Procedure 2006-46 provides procedures for establishing a tax year other than a required year. Refer to Form 1128, Application To Adopt, Change, Or Retain A Tax Year and to Form 2553, Election by a Small Business Corporation, processing in IRM 3.13.222.106 and IRM 3.13.222.108.

  3. IRC Section 444, Election Of Taxable Year Other Than Required Taxable Year, as added by Section 10206 of the Omnibus Budget Reconciliation Act of 1987, allows certain Partnerships, S Corporations and Personal Service Corporations to elect the use of a taxable year that is not a required year. Refer to IRM 3.13.222.107 for processing the Form 8716, Election To Have a Tax Year Other Than a Required Tax Year.

  4. Certain Exempt Organizations (EO) can change their accounting period under Revenue Procedure 85–58 by filing their tax return, including extensions, on a timely basis. Refer to IRM 3.13.12,Exempt Organization Account Numbers, for instructions on how to process the Form 1128, Application to Adopt, Change, or Retain a Tax Year.

Processing Unpostable Tax Returns With Remittances and Credits

  1. To resolve an unpostable tax return that is assigned to Entity with a remittance, the money must be applied to a tax module.

  2. If the unposted tax return also has an unposted remittance and it cannot be determined where the payment should be applied;

    • close the unposted remittance with a URC 8,

    • prepare the payment to be refunded,

    • route to Rejects requesting that they refund the payment,

    • close the unpostable tax return with the specific unpostable resolution code needed for the case.

  3. If there is a credit/payment applied to the unpostable tax return module and the return is being removed from processing (DLN cancelled), determine if a manual refund is necessary. Prepare Form 3244, Payment Posting Voucher or RTR (Remittance Transaction Research System) print, and request Rejects, using the appropriate routing form, to refund the payment.

    Example:

    A misapplied remittance will be sent to Rejects to be refunded when there is no indication of where the money should be applied, i.e., Limited Liability Company.

  4. If there is an incorrectly applied credit/payment on an unpostable tax return that you are working and you can determine where the payment should be applied, prepare Form 3465 and route to Accounts Management, Adjustments Department for the transfer of any credits to the new tax period.

    Example:

    The taxpayer files a Form 1120 for the tax period ending December 31, 2012, and the credit is posted to MFT 02 for the TXPD 201212, but our records indicate that the taxpayer has historically filed on a June 30th tax year end, and there is no record of a TC 053 on the Entity module. If the taxpayer does not respond to our letter or if research determines that no correspondence is necessary to resolve the unpostable case and the Form 1120 can not be posted as filed, prepare the Form 3465 and route to Accounts Management to transfer the payment to the correct tax period.

  5. Any corrections to the source document should be circled in purple and all written corrections must also be in purple. Close the unpostable tax return appropriately.

  6. If the unpostable is an Exempt Organization (EO) tax return, see IRM 3.12.278,EO Unpostable Resolution , for specific instructions.

    Note:

    Ogden Only - When closing with URC 8 for Rejects to refund any unposted payment, ensure a print from one of the command codes ENMOD/TXMOD/LPAGE screen indicating "Request Completed" is attached. Accounting will not refund an unposted payment without verification that correspondence was previously sent.

    Note:

    Cincinnati Only - When closing with URC 8 for Rejects to refund any unposted payment, state in Remarks, "Taxpayer not Liable." Also in Remarks (on the RTR print) input the letter number and date letter was sent to taxpayer.

IDRS Command Codes

  1. These Command Codes are used to research entity and tax data on the Master File.

Command Code ACTON

  1. See IRM 2.3.12, IDRS Terminal Responses - Command Code ACTON for specific instructions and screen displays.

  2. This Command Code is used to input a history control base.

Command Code BMFOL

  1. See IRM 2.3.59,IDRS Terminal Responses, Command Code BMFOL for specific instructions and screen displays.

  2. These Command Codes are used to research entity and tax data on the Master File.

Command Codes ENREQ,INCHG,BNCHG, and BRCHG

  1. See IRM 2.4.9,IDRS Terminal Input, Command Codes ENREQ, INCHG, BNCHG, and BRCHG, for specific instructions and screen displays.

  2. These Command Codes are used to update a Taxpayer's account on the Business Master File (BMF).

  3. Indicate in the remarks section whether the change was made with No Source Document (NSD) or with a Source Document (SD).

    Note:

    For BMF Entity changes except for EO sub modules accounts, CC BNCHG is used. For changes made to EO accounts containing sub modules only CC EOCHG is used.

    Note:

    The system will not accept previously input remarks on URC 1, URC D or URC 8 closures. Enter a "/" (slash) at the end of the remarks field if previous remarks are still valid with the 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 URC 2 closure.

  4. The Command Codes in this subsection referenced above can also be used to research the Key Index File (KIF) for an EIN.

Command Code BRTVU

  1. See IRM 2.3.57, IDRS Terminal Responses - Command Code BRTVU for specific instructions and screen displays.

  2. This Command Code is used to gain read-only access to the tax return data.

Command Code CFINK

  1. See IRM 2.3.31IDRS Terminal Responses - Command Codes CFINK for CAF Inquiry for specific instructions and screen displays.

  2. This Command Code is used to research on CAF.

Command Code ENMOD

  1. See IRM 2.3.15 , IDRS Terminal Responses, Command Code ENMOD, for specific instructions and screen displays.

  2. This Command Code is used to research a Taxpayer's account on the Business Master File (BMF). This Command Code will show all of the Entity data if the case is on the Taxpayer Information File (TIF).

Command Code EFTPS

  1. See IRM 2.3.70IDRS Terminal Responses - Command Code EFTPS for specific instructions and screen displays.

  2. This Command Code is used to request immediate research of the Electronic Federal Tax Payment System.

Command Codes EOREQ and EOCHG

  1. See IRM 2.4.10,IDRS Terminal Input, Command Codes EOREQ and EOCHG, for specific instructions and screen displays.

  2. These Command Codes are used to update a Taxpayer's information on the Business Master File (BMF).

Command Code ESIGN

  1. See IRM 2.4.8 IDRS Terminal Input, Command Codes ESIGN for specific instructions and screen displays.

  2. This Command Code is for the EIN Research and Assignment System (ERAS) and was designed to process requests for Employer Identification Numbers (EINs).

Command Code ESTAB

  1. See IRM 2.3.62,IDRS Terminal Responses, Command Code ESTAB, for specific instructions and screen displays.

  2. This Command Code is used to request original tax returns and forms.

Command Code IMFOL

  1. See IRM 2.3.51,IDRS Terminal Responses, Command Code IMFOL for specific instructions and screen displays.

  2. This Command Code is used to research entity and tax data on the Individual Master File.

Command Codes FINDE and FINDS

  1. See IRM 2.3.60,IDRS Terminal Responses, Command Codes FINDE and FINDS, for specific instructions and screen displays.

  2. The Command Codes FINDS/FINDE for a domestic search requires the definer, "D", and the international search requires the definer "I" . If users do not enter a definer, they receive an error message.

  3. These Command Codes are used to research return info for multiple addresses for a taxpayer name, if they are on the NSF data base.

Command Code INOLE

  1. See IRM 2.3.47, IDRS Terminal Responses, Command Codes INOLE for specific instructions and screen displays.

  2. This Command Code is used as a research tool to display the entity information found on the NAP.

Command Codes NAMES, NAMEI, NAMEE and NAMEB

  1. See IRM 2.3.60,IDRS Terminal Responses, Command Codes NAMES, NAMEI, NAMEE and NAMEB for specific instructions and screen displays.

  2. These Command Codes are used to research a Taxpayer's account on the Individual Master File (IMF) and Business Master File (BMF).

  3. NAME SEARCH FACILITY (NSF) is a system which combines new hardware (Teradat Machines) off the shelf software (SSA Names) and software developed by IRS programmers to provide a more powerful TIN searching tool.

  4. Authorized users will have access to NSF via CCs NAMES, NAMEI, NAMEE and NAMEB

Command Codes PLINF and PLINQ

  1. See IRM 2.3.66,IDRS Terminal Responses, Command Codes PLINF and PLINQ, for specific instructions and screen displays.

  2. These Command Codes are used to research Exempt Organization (EO) cases.

Command Code RFINK

  1. See IRM 2.3.16,IDRS Terminal Responses - Command Code RFINK for specific instructions and screen displays.

  2. This command code is used to research the Reporting Agent File (RAF).

Command Codes TXMOD and SUMRY

  1. See IRM 2.3.11,IDRS Terminal Responses, Command Codes TXMOD and SUMRY, for specific instructions and screen displays.

  2. These Command Codes are used to research a taxpayer's account on the Business Master File (BMF).

  3. Command Code TXMOD is used to request a display of all tax module information for a specific tax period on the Taxpayer Information File (TIF).

  4. Command Code TXMOD has more detailed information than any other single Command Code.

  5. Command Code SUMRY is used to display an overall summary of the Taxpayer's account from the TIF.

Command Codes TRDBV, TRERS and TRPRT

  1. See IRM 2.3.73,IDRS Terminal Responses, Command Codes TRDBV, TRERS and TRPRT, for specific instructions and screen displays.

  2. These Command Codes are used to access the "Read Only" Taxpayer information such as forms and schedules.

  3. The Tax Return Data Base (TRDB) stores original E-File Tax Return information from the Taxpayer within twenty four hours of receipt. It also contains Electronic Filing System (ELF) Code and Edit data and corrections made to the tax return data by Error Resolution Section (ERS) and General Unpostable Framework (GUF) Tax Examiners.

Command Code UPTIN

  1. See IRM 2.3.37,IDRS Terminal Responses, Command Code UPTIN, for the GUF System, for specific instructions and screen displays.

  2. This Command Code is used to research a Taxpayer's account on the Business Master File (BMF).

  3. This Command Code displays all open unpostables for a specific Taxpayer Identification Number (TIN) and will maintain the unpostable on its file for display purposes for 90 days after it is closed.

Command Code UPDIS

  1. See IRM 2.3.48,IDRS Terminal Responses, Command Code UPDIS, for the GUF System, for specific instructions and screen displays.

  2. This Command Code is used to research a Taxpayer's account on the Business Master File (BMF).

  3. This Command Code displays a specific unpostable record.

  4. Command Code UPDIS will display an open unpostable for a specific sequence number.

  5. When Command Code UPDIS is input, it will automatically display a Command Code UPRES screen on the monitor.

    Note:

    The system will not accept previously input remarks on URC 1, URC D or URC 8 closures. Enter a "/" (slash) at the end of the remarks field if previous remarks are still valid with the 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 URC 2 closure.

Command Codes TELEA, TELEC, TELED and TELER

  1. See IRM 2.4.29, IDRS Terminal Input, Command Codes TELEA, TELEC, TELED and TELER , for specific instructions and screen displays.

  2. These Command Codes are used to add, change or delete the taxpayer's home, other (office) and cell phone numbers.

GUF Category Code B1

  1. Category criteria for Individual Master File (IMF), Business Master File (BMF), and Employee Plans Master File (EPMF).
    GUF Category Code B1 includes the following:

    GUF CATEGORY CODE B1
    The TC is 023, 024, 058, 059, 06X, 07X or 09X
    The TC is 96X and the Master File Tax (MFT) Code is zero and the tax period is zero
    MFT Code is 46, 61, 62, 72, 74, 75
    TC 150 and the Document Code is 07 and UPC is 338
    The UPC is 301 and the Reason Code (RC) is 1, 2, 3, or 4 and the Document Code is 05, 06, 08, 09, 29, or 59 and the TC is not 96X or 98X
    The UPC is 302 and the document code is 80 and the Block Number of the Document Locator Number (DLN) is not 990, 991, 992, 993, 994, 995, 996, 997, 998 or 999
    The UPC is 302 and the RC is 2 and the Block Number of the DLN is not 990, 991, 992, 993, 994, 995, 996, 997, 998 or 999.
    The UPC is 303 and Document Code is 35, 36 or 39 and the MFT is 01 or 10
    The UPC is 307 and the RC is 6 and the Assessment Statute Expiration Date (ASED) of raw record is greater than or equal to the Current Date plus one year
    Only UPC 303 Magnetic Tape filers with Document Code 35 and 39 and the MFT Code is 01 or 10
    The UPC is 307 and the TC is 150 and the Document Code is 07 and the MFT is 02 and the RC is 1
    The UPC is 307 and the MFT is 33, 34, 37, 44 or 67 and the TC is not 59X.
    The UPC is 307 and the MFT is 33, 34, 37, 44 or 67 and the TC is 590 and the DAR Closing Code of TC 590 in RAW UP REC is 14
    The UPC is 307 and the TC is 150 and Document Code is 16 and the MFT is 02
    The UPC is 308, 324, 343, 355, 372, 383, 429, 813, 842, or 880 or the UPC is 384 and the RC is 1
    The UPC is 313 and the RC is 1 and the TC is 077
    The UPC is 323 and the RC is 2 or 3
    The UPC is 326 and the RC is 4
    The UPC is 339 and the RC is 1 and the TC is 76 or 78
    The UPC is 341 and the TC is not 120, 132, 140, 141, 142, 147, 30X, 42X, 470, 471, 472, 473, 474, 475, 480, 481, 482, 483, 488, 489, 582, 583, 590, 591, 592, 593, 594, 595, 596, 597, 598, 599, 920, 922, 930, or 96X
    The UPC is 353 and the TC is 150 and the MFT Code is 67
    The UPC is 366
    The UPC is 429 and the RC is 2, 3, or 4
    The UPC is 498 and the RC IS 1 or 2
    The UPC is 741, 810 or 811 and the TC is not 120, 132, 140, 141, 142, 147, 30X, 42X, 470, 471, 472, 473, 474, 475, 480, 481, 482, 483, 488, 489, 582, 583, 590, 591, 592, 593, 594, 595, 596, 597, 598, 599, 920, 922, 930, or 96X
    The UPC is 801 and the TC is 121, 122, 123 or 125
    The UPC is 810 or 811 and the TC is not 120, 132, 140, 141, 142, 147, 30X, 42X, 470, 471, 472, 473, 474, 475, 480, 481, 482, 483, 488, 489, 582, 583, 590, 591, 592, 593, 594, 595, 596, 597, 598, 599, 920, 922, 930, or 96X
    The TC is 590 and the Document Code is 67

    Note:

    For a complete list, see the Functional Specification Package (FSP) 1.20.00.00, Generalized Unpostable Framework (GUF)

    .

  2. In addition to the above conditions, the Unpostable Unit will reassign other cases to Entity Control if the case requires Entity Control resolution. The following are examples:

    1. The unpostable record requires an EIN assignment, generally this involves unpostable Codes 301 or 303.

    2. Various Exempt Organization (EO), and BMF Entity related unpostable conditions for UPCs 310, 329, 351 and 371.

    3. The procedures in IRM 3.12.279,BMF/CAWR/PMF Unpostable Resolution, and IRM 3.12.166,EPMF Unpostables, specify which cases should be reassigned from the BMF Entity Unpostable Unit to the Entity Control Team (ECT). This reassignment will take place only after BMF Entity Unpostable Unit has attempted to resolve the case. Tax Examiners will attach all research documents to the unpostable form or tax return when reassigning the case.

      Note:

      All Document Code 35, 37 and 39 (magnetic tape) unpostables will be reassigned to the EUT. These will normally be UPCs 303, 308 and 324.

  3. Generally the Criminal Investigation and Examination Perfection Sections will not reassign cases to the EUT, instead they will coordinate with the EUT to resolve cases.

  4. All records in Category B1 will be directly assigned to the EUT. Any case assigned to the EUT will be closed by them. Any TC 960, 961 or 962 case with an MFT 00 and a Tax Period 0000 will be closed by the Reporting Agent File (RAF) Section.

  5. A Form 4251 (C) Return Charge-Out, is generated for almost every unpostable record in this category. The EUT is the recipient (receiver) for these B1 Form 4251's. The documents for all B1 file requests will be routed directly to the EUT. No automatic transcripts (MCC/MRS) are generated.

  6. All B1 unpostable cases are INDIVIDUAL closures. These cases should be assigned to a specific employee prior to attempting to close the case. Unpostable Resolution Codes (URC) A, B, D, 0 (zero), 1, 2, 5, 6 and 8 are used to resolve Category B1 cases. Refer to IRM 3.12.32,General Unpostables, for additional information.

  7. Criminal Investigation category cases A1 and A2, Statute C1, C2 and C3 category cases and Bankruptcy (Z1) type unpostable records will not be assigned to the EUT. However, if a case with a Category Code other than A1, A2, C1, C2, C3 or Z1 is assigned or reassigned to the EUT and later it is determined to have criminal investigation, statute or bankruptcy issues, then the case will be processed in accordance with the category A1, A2, C1, C2, C9 and Z1 guidelines and procedures in IRM 3.12.32,General Unpostables.

  8. Cases involving credit interest returns may be assigned or reassigned to the EUT. The EUT will process these credit interest issues per IRM 3.13.2BMF Account Numbers, and IRM 3.12.32,General Unpostables , unpostable Interest Reduction Initiative Report guidelines.

  9. This category will age ten cycles from original unpostable cycle.

GUF Category Code B3, Exempt Organization (EO) Unpostables

  1. The table below provides a list of all EO unpostables processed on the BMF in Category B3.

    Unpostable Code Reason Code Transaction Code MFT
    302 1   33, 34, 36, 37, 44, 50, 67
    307 1, 7   33, 34, 36, 37, 44, 50, 67
    308 4, 5, 8, 9   33, 34, 36, 37, 44, 50, 67
    313 1 023, 071, 072, 073  
    323 2 024  
    323 3 070  
    324 2   33, 34, 36, 37, 44, 50, 67
    329 1, 2   33, 34, 36, 37, 44, 50, 67
    341 1, 2   33, 34, 36, 37, 44, 50, 67
    351 1, 2   33, 34, 36, 37, 44, 50, 67
    355 1-4   33, 34, 36, 37, 44, 50, 67
    356 1   33, 34, 36, 37, 44, 50, 67
    357 2   33, 34, 36, 37, 44, 50, 67
    358 1   33, 34, 36, 37, 44, 50, 67
    359 1-6   33, 34, 36, 37, 44, 50, 67
    363 1   33, 34, 36, 37, 44, 50, 67
    365 1   33, 34, 36, 37, 44, 50, 67
    366 1   33, 34, 36, 37, 44, 50, 67
    369 1, 2   33, 34, 36, 37, 44, 50, 67
    370 1-8   33, 34, 36, 37, 44, 50, 67
    371 0-9   33, 34, 36, 37, 44, 50, 67
    372 1   33, 34, 36, 37, 44, 50, 67
    373 1, 2   33, 34, 36, 37, 44, 50, 67
    379 1-9   33, 34, 36, 37, 44, 50, 67
    382 1   33, 34, 36, 37, 44, 50, 67
    383 1-3   33, 34, 36, 37, 44, 50, 67
  2. These unpostable codes are processed in the Ogden Campus.

  3. This category will age ten cycles from original unpostable cycle.

GUF Category B4, Employee Plan Master File (EPMF) Unpostables

  1. Unpostable Code (UPC) 801,802, 803, 806, 808, 810, 811, 812, 813, 815, 823, 824, 832, 836, 838, 839, 840, 842, 843, 844, 845, 847, 849, 851, 852, 853, 854, 869, 877 and Master File Tax (MFT) 74.

  2. UPC 324 Reason Code (RC) 3 and MFT 75.

  3. UPC 327 RC 1 MFT 76.

  4. UPC 498 RC 2 MFT 74.

  5. These unpostable codes are processed in the Ogden Campus.

  6. This category will age ten cycles from original unpostable cycle.

GUF Category B5, Entity Control - 1120S/1065/1041 Unpostables

  1. Category B5 Criteria (BMF) - Consists of UPC 332, UPC 310 or UPC 329.

  2. MFTs will be 02, 05, and 06.

  3. This category will age fifteen cycles from original unpostable cycle.

Unpostable Status Codes

  1. IDRS Command Codes (CC) and definers are used to establish or update the Status Code of an unpostable case. The status code identifies what action has been taken on an unpostable case. The status date indicates when this action was taken.

  2. The following is a list of status codes and their definitions.

    • A assigned, but not corrected.

    • F Document requested from Files/suspended.

    • C corrected, but not removed from the Service Center Unpostable Master File (SCUPMF).

    • H Quality Assurance hold.

    • M MRS transcript request/suspended.

    • L Correspondence sent/suspended.

    • S Suspense, this is input when the return has to be held (i.e., corresponding with the taxpayer).

    • Q accepted by Quality Assurance.

  3. The status code and status date will appear on line two of the CC UPDIS screen display following the literal ST.

    Note:

    Refer to IRM 3.12.32.17General Unpostables, for more detailed information concerning status codes and status dates.

Unpostable Reason Codes (UPC) and Unpostable Resolution Codes

  1. Each unpostable record will be assigned a three digit unpostable code and a one digit Reason Code (RC).

    Example:

    310-4.

    1. The RC is used to help identify the specific condition for the unpostable record.

    2. Reason Codes were assigned to conditions at random and are not indicative of the priority of the unpostable record.

  2. SCCF-URC 1 - Each unpostable record that is corrected with URC "1" is placed in manual status on the Submission Processing Campus Control Files (SCCF).

    1. If the document is to be re-input, enter Nullify Area Code 01, prepare Form 3893 and route to Batching for input. No further action is needed on the SCCF.

    2. If the document is not to be re-input, 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 3.12.32.13, for further information.

  3. The valid range of Unpostable Resolution Codes are "A" , "B" , "D" , "0" (zero), "1" , "2" , "3" , "5" , "6" , and "8" . These resolution codes (except for URC 3) may be used by the Unpostable, Entity Control, Examination, Statute, and Criminal Investigation functions when using CC UPRES to resolve cases assigned to their areas.

    Note:

    Unpostable Resolution Code 3 is used during GUF 13 processing.

    1. URC "A" updates the unpostable name control to the Master File name control.

    2. URC "B" is used only for IMF and BMF. This code is used only as a special closure of open cases.

    3. URC "D" deletes (voids) transactions that do not need follow-up actions and is valid for all Master Files. A URC "D" removes the record from the SCUPMF. URC" D" does not open an IDRS control base.

    4. URC "0" allows the unpostable record to attempt to re-post with no change at Master File . URC "0" is valid for all Master Files.

    5. URC "1" allows transactions to be re-input. It is valid for all Master Files except CAWR and PMF. A URC" 1" removes the record from the Service Center Unpostable Master File (SCUPMF). These records are not corrected (at this time) for an attempted reposting at Master File as would URC"0" , "5" and "6" .

    6. URC "2" deletes (voids) transactions and is VALID for all Master Files. A URC"2" removes the record from the SCUPMF and opens an IDRS control base for most cases.

    7. URC "3" is used for Auto-Closures of With—Remittance (ISRP/RPS) documents due to a Tax Period change.

    8. URC "5" is used only for IMF when changing an error delay code and/or name control or name line at Master File and Trans Code is 140, 430, or 150.

    9. URC "6" is used for changing any combination of name control, name line, adding or deleting a spouse and/or spouse's taxpayer identification number (TIN), TIN type, transaction codes, transaction date, plan number, error delay code, computer condition code, tax period ending for IMF, and certain nontaxable BMF and EPMF returns. URC 6 is valid for all Master Files.

      Note:

      PMF will only accept TIN, TIN type, and name control changes.

      Master File MFT Code Doc Code Form
      BMF 02 16 1120S
      BMF 06 65 1065
      BMF 15 23 8752
      BMF 36 81 1041-A
      BMF 37 83 5227
      BMF 44 91 990-PF
      BMF 50 71 4720
      BMF 67 90 990
      BMF 67 09 990EZ
      BMF 77 29 706GST
      BMF 78 59 706GSD

      Note:

      PMF will only accept TIN, TIN TYPE, and name control changes.

    10. URC"6" will also be used to change MFT for IMF and BMF, plan period for EPMF, and will allow a correction to the spouses SSN when the FSC is "2" , "3" , "6" , or " 7" .

    11. URC"6" can also be used for multiple corrections.

    12. URC "8" (reject) nullifies (removes) the record from the SCUPMF. Valid for all Master Files except CAWR and PMF.

  4. Never use URC 8 on:

    1. FTD - Doc Code 97, (use URC 1 if required); or

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

  5. In addition to individual closures using CC–UPRES , CC–UPBAT, is used for multiple cases using the same Resolution Code.

    Note:

    CC–UPBAT URC actions are not directly updated. They are generated into each resolved record during end of day (EOD) processing and if the case does not meet the reject criteria, then the case is placed into closed status.

     

  6. The system will not accept previously input remarks on URC "D" / "1" / "2" / "8" closures. Enter a "/" (slash) at the end of the remarks field if previous remarks are still valid with unpostable closing.

  7. 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.

    Note:

    The employee number displayed will be either the originator of the transaction, or the IDRS control number GUF has assigned to the record using the Nullified Area Code table .

    This number will also be used to open a control base on IDRS.

Commonly Used Tax Classes

  1. The table below provides some commonly used tax classes on the Business Master file.. For additional information see Document 6209, IRS Processing Codes and Information.

    MFT Code Doc Code Form Tax Class
    01 41 941 1
    02 10 1120 3
    02 16 1120S 3
    02 20 1120-POL 3
    05 44 (36 e-filed) 1041 2
    06 65 (69 e-filed) 1065 2
    07 60 1066 3
    10 40 940 8
    11 43 943 1
    13 54 8278 3
    14 49 944/PR/SS 1
    15 23 8752 2
    16 97/44 945 1
    02 03 1120-C 3
    34 93 990-T 3
    36 81 1041-A 4
    37 83 5227 4
    44 91 990-PF 4
    50 71 4720 4
    51 09 709 5
    52 06 706 5
    67 09 990EZ 4
    67 90 990 4
    77 29 706GS(T) 5
    78 59 706GS(D) 5

Form 3893 Re-Entry Document Control

  1. Prepare a Form 3893 if it is determined that a document or a group of documents are nullified, DLN cancelled and must be re-input.

  2. This Form is prepared for each input block (or portion of a block) with the sum totals of the associated detail document(s). Attach it to the first document of the input block. Do not detach the Form when processing or filing. Figure 3.13.222-1

    Figure 3.13.222-1

    This is an Image: 33790501.gif
     

    Please click here for the text description of the image.

    • File Type Box, Check the appropriate box.

    • Box 1Alpha/Numeric Block Control Number, Leave blank if routing to Batching in the Receipt and Control Branch.

    • Box 2 Document Locator Number (DLN), Enter the eleven digit block DLN. The complete DLN may be entered, but only eleven digits will be transcribed into the Block Header

    • Box 3Batch Number, The batch number will be entered by Batching Unit in the Receipt and Control Branch.

    • Box 4Document Count, Enter the number of documents attached to the Form 3893. All the Documents must have the same DLN except for position 12 and 13.

    • Box 5Credit Amount, Enter the amount of the credit transaction. If more than one document with a credit transaction, then enter the sum of all of the credit amounts. Amounts may be from remittance returns, payment transactions, transfer documents, or adjustments.

    • Box 6Debit Amount, Enter the total debit amount(s). This box must be blank if a credit amount is present. Debit amounts may be present only with Document Codes 24, 45, 48, 51, 54, 58, and 87.

    • Box 7Transaction Code, Enter only when a Block Header Transaction Code is required. If a Block Header Transaction Code 840 is required then input a Document Code 45. If a Block Header Transaction Code 370 is required then input a Document Code 51 or 52.

    • Box 8 Transaction Date, Enter the received date for tax returns reviewed after the tax period due date.

    • Box 9 Header MFT Code, Enter only when required.

    Document Code Document MFT Header MFT
    17, 18, 19, 24, 34, 05, 06, 15 05, 06, 15
    45, 47, 48, 51, 52,    
    54, 58, 87    
    Document Code 70 or Remittance processing System (RPS) Various Same as document
    Payments 29 29

     

    • Box 10 Secondary Amount, enter the secondary transaction amount when required. If you fail to enter the secondary money amount on the Form 3893, but the amount is edited on the document then there will be a Block Out of Balance (BOB) condition.

    • Box 11 Re-input Source Code, check the R box if the transaction has already posted to the Master File (MF) and complete Box 19 Reprocessable Document, mark the N box if the input document was previously an unpostable and complete Box 18 Re-input Document, it must be open on the Service Center Control File (SCCF). Mark box 4 if the document has not posted or unposted in the MF and complete Box 18 Re-input Document.

    • Box 12 DLN Year Digit, enter the 14th digit of the Source Document DLN. If the year digit is not shown on the Source Document then determine the correct year digit from the color of the DLN or from other information on the source Document.

    Note:

    The colors listed below were used prior to 2006

    DLN Color Year Digit
    Green 0 or 5
    Purple 1 or 6
    Red 2 or 7
    Black 3 or 8
    Blue 4 or 9

    Note:

    Form 3893, Re-entry Document Control is used to re-input a return that has not posted to an account or module

    Note:

    Form 13596, Reprocessing Returns is used to reprocess a return to the correct account or module that had previously posted to the wrong account or module.

Form 13596 Reprocessing Returns

  1. Prepare a Form 13596, Reprocessing Returns, to reprocess a BMF return. Complete all required blocks on Form 13596 as follows:

    1. Employee number and date should be entered in the first two boxes.

    2. Correcting the TIN – Enter the correct TIN, if the TIN shown on the return is incorrect.

    3. Correcting yearly or quarterly returns – Enter the correct period for the return being reprocessed. If correcting a yearly return, use the "YYYYMM" format. If correcting a quarterly return, use "YYYY" format and check the appropriate quarterly box.

    4. CP 190 - box should be checked if reprocessing a TC 976 document as the original return.

    5. Reasonable cause - check the appropriate box if reasonable cause is being allowed.

    6. Remarks - enter any remarks, as needed to help process the return correctly.

      Note:

      Campuses currently using Form 13596, Reprocessing Returns, in lieu of Form 3893, must continue to use Form 13596 until further notice.

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, 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 Financial Agent (FA) ID Number
    • 2 -Bank of America

    • 3 - Treasury Offset Program

    • 4 - SSA Levy Program

    • 5 - RS-PCC

    2 Payment Method
    • 0 - E-file Debit

    • 1 - ACH Credit

    • 2 - ACH Debit

    • 3 - FR-ETA

    • 4 - (Reserved)

    • 5 - Levy

    • 6 - Credit Card

    • 7 - Online

    • 8 - Railroad Retirement Board (RRB) Link

    • 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

BMF Filing Requirement Code (FRC)

  1. The BMF FRCs are as follows.

    1. Code 0 - All, tax return not required to be filed.

    2. Code 00 - Form 941, Form 944, Form 944-PR, Form 944-SS, Form 1120, and Form 990 tax return not required to be mailed or filed

    3. Code 01 - Form 941, Form 944 Form 944-PR, Form 944-SS, Form 1120, Form 990, and Form 990-EZ tax return required to be filed

    4. Code 1 - Form 940, Form 943, Form 940-EZ, Form 945, Form 11C, Form 730, Form 1042, Form 1120-PC, Form 1066, tax return required to be mailed if filed.

    5. Code 02 - Form 941, Form 944, Form 944-PR, and Form 944-SS tax return required to be filed

    6. Code 2 - Form 940-EZ tax return required to be filed.

  2. The BMF will update the magnetic tape code to 0 and will generate a CP 199 when a TC 150 posts with a Condition Code F or M, or a TC 591, TC 593 or TC 595 posts and if a TC 01X posts to change the entity.

Document Locator Number (DLN) Tax Class Document Codes

  1. The Document Locator Number (DLN) is a unique number assigned to every return processed by the Automatic Data Processing (ADP) Systems.

  2. The DLN is used to control, identify and locate a document.

  3. Always make certain that the DLN on the document matches before making any corrections to Master File (MF) or the document.

    Refer to Document 6209, IRS Processing Codes and Information Booklet, for the return DLN, tax class and document code.

Form 4251 - Return Charge Out

  1. FORM 4251 GENERATION CRITERIA

    1. The GUF automatically generates Form 4251 for unpostable cases requiring the return or document (or information from these records) to resolve the unpostable condition.

    2. Form 4251s are also generated for certain auto-closed unpostable records that may require follow-up action by the originator.

    3. An unpostable return charge-out is generated for Categories A1, A2, B1, B5, C1, C2, C3, C5, D1, D3, E1, E2, E3, F1, F3, G1, L1, L5, L7, P1, R1, V1, W3, Y2, Z1 and certain category W5 and Y1 cases.

    4. An unpostable return charge-out is not generated for Categories L3, V3, V5, V7, V8, W1, and W5 plus matching Y1 cases.

  2. Form 4251 — Files Routing Chart—refer to IRM 3.12.32 for detailed routing information.

  3. Primary Requests - The Form 4251 must be given to the tax examiner at the time of the Individual case assignment. Before initiating any additional request for a BMF or PMF document the tax examiner assigned to the unpostable case will attempt to correct the unpostable by the following methods:

    • Use the data on the Form 4251, and

    • Research using IDRS Command Codes, or

    • Any available listings.

    IF THEN
    a. The tax examiner cannot resolve the unpostable, The tax examiner must make additional requests for the unpostable return or document.
    b. The document has already been retired to the Federal Records Center (FRC), Files will route the Form 4251 to the Federal Records Center (FRC).
    c. The case can be closed using Microfilm Replacement Systems (MRS), CFOL and/or IDRS A second request is not necessary.
    d. Cases are closed without the document, Enter "CLSD-NO DOC" in the remarks field.
  4. Repeat or TE initiated Unpostable - Input CC UPRES with URC 2 to void to the originator all unpostable cases with the exception of revenue receipts, bankruptcy and TC 150s that can not be resolved by the primary request.

    1. Input ″Doc not available″ in remarks.

    2. Route the Nullified Distribution Listing to the appropriate area.

      Note:

      No other action is required.

      Note:

      If unpostables has repeated to the same area/TE as the prior unpostable, process per unpostable procedures.

  5. Statute Period Returns—If Unpostables cannot secure or locate a return or document within 10 workdays of the 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 to Statutes for a quick/prompt assessment.

  6. 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.

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

    IF AND THEN
    a. The unpostable case still cannot be closed, Document cannot be located, Input a second request for the missing document.
    b. 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.
    c. The document still can not be located,   Research Microfilm Replacement Systems (MRS) and IDRS again.
  8. 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.

  9. Secondary Requests - Only input second requests for documents that are revenue receipts (Doc. Codes 17, 18, 19, 20, 24, 34, 45, 48, 58, 70, 76, 87, or 97). A second request will be made by the tax examiner if the document initially cannot be located in Files or the Federal Records Center (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.

  10. 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.

  11. Third Request for 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.

  12. Input CC ESTABDO to request the document before making a fourth request. A ESTABDO request is made to obtain the document after 15 work days (21 calendar days) from the third request.

  13. Fourth Request - Input a fourth (4th) request using CC UPCAS definer code D and definer modifier code 4. Route the 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 or local use form to original Form 4251 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, and Unpostable Routing Slip.

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

  14. 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.

  15. 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" .

  16. Procedures for Missing Documents - The following procedures must be followed after all normal attempts to resolve the unpostable conditions have been tried.

    If the Document Code is: Entity Unpostable Unit Will:
    17, (Except TC 460 non-remittance), 18, 19, 70 or 76 Research for correct account where payment should be applied. If found, close with URC 6 to correct account. If payment must be renumbered, URC 8 and prepare "dummy" 3244. If unable to locate correct module, URC 8 and prepare "dummy" 3244 to be routed to Unidentified Unit.
    17 (TC 460 non-remittance) Research for corrective action. If unpostable cannot be corrected close with URC D.
    24, 48 or 58 Research to determine where debit or credit should post. If corrective action cannot be made, URC 6 or 8 to offset the transaction ("wash-out " ) prepare "dummy document" (if necessary) with corrections and notate "Process as Corrected" . If unable to determine opposite side of credit transfer and credit side is unpostable, transfer account to Unidentified. If debit side, transfer to 1510 Account.
    34 (Debit side) Research for corrective action. If unpostable cannot be corrected close with URC 2, and route to originator.
    34 (Credit side) Research for corrective action. If credit cannot be resolved, apply to the account where the debit posted and route to originator.
    45 Research to determine where debit or credit should post. If corrective action cannot be made, close with URC 8. Prepare Form 3245 for credit unpostable and transfer to Unidentified Account. Debit should be transferred to the 1510 Account.
    52 Research for corrective action. If unpostable cannot be corrected close with URC 2, and route to originator.
    87 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.
    97 (FTD) Research for correct account. If found, correct payment to post to correct account using URC 6. If unable to locate correct account, close with URC 1 and prepare credit side of Form 2424. Route to Accounting.

    Note:

    The FTD unit must be contacted before closing with URC 1.

Address Changes

  1. Use the following table below to resolve address changes:

    Note:

    The Address on the master file should never be updated from an extension (exception; typographical errors or misspellings on Master File or additional mailing information such as a suite and/or apartment number). If it is necessary to correspond on a Form 7004, send the letter to the mailing address on Master File and inform the taxpayer of any address discrepancy. If there is no need to correspond, a 104C letter does not need to be sent. Refer to Entity IRM 3.13.2.7.14(8) regarding Form 7004.

    Caution:

    When working corporation address changes and there is indication on the return the corporation may have re-chartered such as a new incorporation date or address has changed to a different state. Research Secretary of State (SOS) website to determine if a new charter was issued. Historically, a new EIN would be assigned to a corporation that has re-chartered. However, Chief Counsel has determined if the business ownership remains the same, the original EIN should be retained and used by the taxpayer.

    IF THEN
    A. 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 to make the address change.
    B. A return has a different address, other than typographical errors or misspellings on Master File, and the address change box is not checked or the address on the return is listed as the location address on Master File. Do not change the address on Master File. If a specific letter is needed for the unpostable, inform the taxpayer of the address discrepancy. If a specific letter is not needed send a Letter 104C. Direct the taxpayer to www.irs.gov for a Form 8822-B. Correspond to the address on Master File.

    Note:

    If the location address is listed on the return do not address discrepancy in correspondence. Send correspondence to address on Master File.

    Caution:

    If the cycle date of the last address change is prior to the return received date (RRD) of the unpostable then address the discrepancy in the letter. If the last address change cycle update is later than the RRD, do not address the discrepancy in the letter and use the address on the Master File.

    C. A return has a different address, other than typographical errors or misspellings on Master File, and the address change box is not checked or the address on the return is listed the same as the XREF address. 1. Do not change the address.
    2. If a specific letter is needed for the unpostable, inform the taxpayer of the address discrepancy. If a specific letter is not needed send a 104C. Direct the taxpayer to www.irs.gov for a Form 8822-B. It is allowable to send the INITIAL correspondence to the XREF address as long as it matches the return.
    D. Correspondence (including notices or C letters) sent by the Service that solicits or requires a response from the taxpayer, is returned to the Service by the taxpayer with corrections marked on the taxpayer's address information, the correspondence will constitute clear and concise written notification of a change of address. The taxpayer's signature is not required. Input TC 014 to make the address change.
    E. The street address has typographical errors or misspellings on master file. Input TC 014 to make the address change.

    Note:

    Correction is not needed for non-abbreviated or incorrect abbreviations in the address, unless making other Entity changes to the Master File.

    F. A completed Form 8822 or Form 8822-B, Change of Address is present. Input TC 014 to make the address change. Refer to IRM 3.13.2.3.8.1.
    G. Any of the required information is missing from the taxpayer's request for a change of address. Do not change the address. Correspond with the taxpayer at the address on Master File and advise the taxpayer of the information needed.
    H. The return has additional mailing information such as a suite and/or apartment number and the address change box is not checked. Input TC 014 to make the address change.

    Note:

    Correction is not needed for non-abbreviated or incorrect abbreviations in the address, unless making other Entity changes to the Master File.

  2. If a taxpayer requests an address change during telephone contact regarding an Entity Unpostables issue, you may accept oral authority for the address change. Follow the Oral Statement Documentation requirements in IRM 21.1.3,20.1(3). Rev. Proc. 2010–16 allows address changes over the phone effective June 1, 2010. It is no longer required that the taxpayer have "an open issue" to request an address change over the telephone. The caller must be authorized to request the address change. Put the name, title, and phone number of the caller in the Remarks section of the transaction.

  3. When making an address change from a return, the following information will be entered in the Remarks field of CC BNCHG:

    • NSD,

    • MFT of return,

    • Tax Period of Return,

    • Name and title of signature,

    • Telephone number (if available)

    If you are unable to determine the name and/or title, enter "SIGNATURE ILLEGIBLE" .

  4. All transactions containing an address change will have the requester's name, title, and phone number if present in the Remarks field of the transaction.

  5. See Exhibit 3.13.222-5 and Exhibit 3.13.222-6 for examples of TC 014, also see IRM 3.13.222.111 for undeliverable mail and notices.

    Note:

    For additional address formatting refer to Entity 3.13.2.3.

  6. When processing foreign address changes refer to Exhibit 3.13.222-11 through 3.13.222-20 to determine the Foreign County Code.

  7. When there is an indication of an In Care Of name change refer to IRM 3.13.2.2.7.

Programming Requirements Package (PRP)

  1. A Programming Requirement Package (PRP) is the instructions that define how tax returns and tax forms can be processed to the Master File (MF). PRPs are written by computer programmers and program analysts. PRPs are written in a technical format that often requires an extensive knowledge of Submission Processing Procedures, a general knowledge of the various IRS Transaction and other computer type codes and a thorough knowledge of how to research IRS Manuals and other IRS reference material to decipher the meaning of the PRP.

  2. The specific PRPs involving BMF unpostables are found in the Document 6209, IRS Processing Codes and Information Booklet, under the Unpostable Code section.

  3. Each Unpostable Code (UPC) Reason Code (RC) subsection in this IRM will begin with the appropriate PRP followed by a literal translation.

ABLM Defined

  1. ABLM is not an acronym. The letters are a carry over from when the tax Form 1120 was generic. The letters are defined as follows:

    • A - Consolidated tax return

    • B - Personal Service Corporation

    • L - Life Insurance tax return

    • M - Mutual Fund tax return

  2. There are still references to the ABLM blocks throughout IRMs, Document 6209 IRS Processing Codes and Information Booklet, Programming Requirements Package (PRP), etc. These references concern specific blocks within the Document Locator Number (DLN) to identify what type of Form 1120 tax return was being filed.

General Information Regarding Unpostables

  1. When correcting unpostables the first thing that must be determined is that the unpostable tax return or document and the entity on the MF are the same.Various IDRS and research Command Codes (CC) should be used to make this determination.

  2. Even when the name control and the TIN match an account on the MF, it does not mean the names are the same.

    Note:

    Many taxpayers have the same name control and could match a TIN on the MF if it was transcribed wrong or the taxpayer supplied the wrong TIN.

  3. When determination has been made that the MF primary name line is incorrect, make the necessary changes to update the master file. The taxpayers correct primary name may be found on the appropriate Secretary of State website. If the correct name cannot be determined, contact the taxpayer.

    Caution:

    Extensions are generally filed by CPAs, Bookkeepers, Tax Preparers, etc., and name changes should not be made unless verified through the Secretary of State website or contact with an authorized individual.

  4. Completely review and resolve ALL unpostable conditions which could result in a repeat unpostable condition, including LLCs, FYM, Subchapter S status, Corporations with an LLC indicator, etc.

  5. If the taxpayer sends the reply to the incorrect campus, the campus receiving the reply will work the response. Before processing an unpostable case for "No reply" research for the current case on IDRS.

  6. Limited Liability Companies (LLC) must be examined for a valid Entity Classification Election (Form 8832) to be approved to file as a corporation. A Form 1065 should not be filed when an approved Form 8832 is on file. An entity considered LLC may unpost as a UPC 307, UPC 310, UPC 329, or UPC 331 and must be examined to determine the appropriate filing requirement to accurately resolve the unpostable. If the LLC indicator is incorrect or not on the account update the LLC indicator per IRM 3.13.222.109. Update the account as needed to perfect the type of entity.

  7. When correcting the unpostable and a change to name control, TIN, Tax Period, is required, always show the change on the unpostable document, not on the Form 4251. Any corrections to the source document should be circled in purple and all written corrections must also be in purple. Close the unpostable tax return appropriately. When a payment is moved to another EIN, MFT, Tax Period, etc. notate the change in RTR (Remittance Transaction Research System).

  8. When working MeF Returns and the DLN has to be cancelled use the Form 4251, Return Charge Out or an UPRES screen print as the documentation to send to Rejects. Use the appropriate routing slip and request Rejects to "Cancel DLN " . Do not print the return. When the unpostable has to be converted/re-numbered, print the applicable pages of the return to send to Rejects.

  9. If the unpostable return requires a change to the TIN, MFT and/or TXPD and it is determined the payment is posted incorrectly, then have the payment moved to the corrected TIN, MFT and/or TXPD. Refer to IRM 3.13.222.22.

  10. All repeat unpostables will generate back to the originator. If the repeat unpostable is not an entity problem and cannot be resolved by the Entity function, then reassign the unpostable to the Unpostable Unit.

  11. When the unpostable is assigned to Entity Control the computer will generate a Form 4251 (C) Return Charge-Out out to Files Section for the document.

  12. The assignment of unpostables to each tax examiner will be the responsibility of the unit manager. Unit Mangers will distribute work at their discretion in order to maintain appropriate age listing guidelines.

  13. The cases assigned to each tax examiner will be printed on a Daily/Weekly Employee-Assign-Aged List.

  14. If the unpostable is an Exempt Organization (EO) tax return, see IRM 3.12.278, EO Unpostable Resolution, for specific instructions.

  15. BMF Entity Unpostables are required to work all Category Codes B1 and B5 even if there is an EO section on the account. Whenever it is determined that the EO section is not correct, contact the EO Entity section before any changes are made to the EO account, complete the corrections to update the MF to prevent future unpostables. If the EO status code is 20, 22, 41, 70, 71, 97, or 99 the EO status is invalid and the case should be resolved in BMF Entity Unpostables.

    Note:

    For BMF Entity changes except for EO sub modules accounts, CC BNCHG is used. For changes made to EO accounts containing sub modules only CC EOCHG is used.

  16. All related unpostables that have unposted at the same time, should be worked at the same time within the service center received.

  17. When processing Modernized E-file (MeF) returns, enter the received date shown on the Tax Return Database (TRDB) using command code TRDBV on returns filed via MeF.

  18. A personal service corporation is a type of corporation where substantially all of the activities involve the performance of services in the field of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting, and substantially all of the stock of which is owned by employees who had performed the services, any estate of any individual who had performed the services listed above, or any person who acquired stock of the corporation as a result of the death of an employee or retiree described above, if the acquisition occurred within 2 years of death.

  19. Update or remove the sort name line (doing business as, dba name) if there is a direct request from the taxpayer, or the name is different, and the return being processed is signed by someone with authorization. Do not add the sort name line (dba), if it is exactly the same as the primary name line. Even if the sort name line is similar to the primary name line, input the sort name (dba). The sort name line is used for research purposes and should be input accurately. For specific entity sort name line information refer to 3.13.2.2(4)-(6).

  20. If research determines there is another unpostable with the same MFT and TXPD located at another Campus (or within the same campus) and a suspense letter has been sent, do not correspond again. Research via command code UPTIN (UPTIN@17 or UPTIN@29, etc.). Suspend for 60 days from the date the letter was sent and purge the document according to the specific unpostable procedures. If the case has been closed within the past 30 days as a No Reply, purge the case accordingly. If the case was closed over 30 days continue processing to the specific unpostables procedures.

  21. All actions taken to work and resolve the unpostable document should be annotated in the lower left corner of the document. If additional actions are needed by another area for processing, route documentation to the appropriate area and annotate routing actions in the lower left hand corner of the Unpostable document. If a form is attached to the unpostable document that needs to be routed to another area for processing, detach the form and route to the appropriate area and annotate actions in lower left hand corner of the unpostable document. Forms 1128, 8716, 8832 and 2553 should be processed in EUP. Annotate form detached on the return. Edit tax period on prior year returns. Before releasing the return for processing, an audit trail containing the TEs IDRS number must be entered in the lower left corner of the return. The following applicable format will be used:

    • EIN 'F' MMDDYYYY (used when TE finds the taxpayer's valid EIN)

    • EIN 'E' MMDDYYYY (used when TE must assign a new EIN to the taxpayer)

  22. The Correspondence Received Date (CRD) is entered in the lower left corner of the return in YYYYMMDD format, and may also be notated on the Unpostable Routing Slip. When a late reply is received and the return is being sent to Batching for processing the Correspondence Received Date (CRD) should be edited on the return.

  23. When re-establishing a DLN after it has been deleted and the original return was an e-Filed (Mef) return, the return must be renumbered because the e-Filed (Mef) DLN cannot be re-established. Print the entire return from EUP before sending for reprocessing.

  24. The expeditious processing of refund returns is critical if the 45 day interest free period is about to expire. Also, returns reflecting a refund of $1,000,000 or more should be processed expeditiously. See IRM 3.11.16.3

  25. When entering a non source/source document transaction into IDRS, the Remarks field of CC BNCHG/INCHG must contain a description of the type of case being processed, beginning with NSD/SD. For example, if changing a name from a return, enter NSD, the MFT and TXPD in the Remarks field.

  26. If a Form 8821 or Form 2848 is received with an Entity form (and other returns are indicated), photocopy the document, write COPY in the center of the document and forward the original Form 8821/Form 2848 to the CAF Team. The photocopy of Form 8821/Form 2848 should remain attached to the Entity form (annotate copy POA to CAF). Also, the POA should receive a copy of any correspondence that is part of the case resolution.

  27. The Detroit Computing Center is assigned an EIN (38-1798424) for the sole purpose of providing the “Payer” EIN on Form 1099-INT statements issued by IRS to taxpayers who have received interest on their federal refunds. The Detroit Computing Center is not a “true” taxpayer account entity. Do not input a TC 012 or post payments or returns to this account. Refer to SERP Alert 12A0279.

  28. BMF Entity will send Form 4442 to BMF Entity Unpostables when there is an open unpostable case. Refer to IRM 3.13.2.7.22(8).

  29. Historically, a new EIN would be assigned to a corporation that has re-chartered. However, Chief Counsel has determined if the business ownership remains the same, the original EIN should be retained and used by the taxpayer.

  30. When processing returns, it is not necessary to address minor name differences (for example, INC versus INCORPORATED or Co. versus Company) unless the name control is affected.

  31. Every document received in BMF Entity Unpostables will be researched to ensure there is only one EIN (or SSN on some documents) assigned to the taxpayer. CCs NAMES/ NAMEE and/or NAMEI/NAMEB will be used to verify the EIN/SSN is correct and no other TIN exists for the taxpayer.

  32. When corresponding with the taxpayer, use the appropriate letter that accurately addresses the taxpayer's situation and always use the selective paragraphs that are available in the correspondex letters before using open paragraphs. For example, do not use a 385C to inform the taxpayer of their valid EIN or denied/rejected election. Do not use a 147C on any election issues. Refer to IRM 3.13.222.5.

  33. When replies to any correspondence are received TEs must perform complete review of the information provided by the taxpayer and process according to the specific unpostables procedures.

  34. When approving or denying an election such as a Form 2553 or Form 8832 use the paragraph selection code Z to suppress the notice if the other selected paragraphs are not appropriate and a letter needs to be sent.

  35. When ESIGNing an EIN to Forms 1120, 1120S, and 1041, and the return is claiming a refund, enter CCC ‘E’ on the return. This will place the return in a Return Integrity and Compliance Services (RICS) filter for fraud monitoring.

Associating Documents to a Posted E-Filed Return

  1. If a document needs to be associated with an e-filed return, a re-file DLN needs to be created so documents can be attached to the electronically filed returns DLN. Attach IDRS document input tag (Form 12773 BMF ADJ54 Adjustment Format) to each E-file/MeF reply and complete with:

    • Employee IDRS number,

    • Input Date,

    • TC 290,

    • Amount ".00" ,

    • TIN,

    • Tax Period,

    • Block see (3) below,

    • Remarks "Attachment only" and,

    • Sequence Number. Sequence numbers for input should begin with "1" through "999" and remain in order.

  2. Input TC 290 on IDRS to generate a re-file DLN to the Files area which is used to attach the reply.

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

    • Input the sequence number from the IDRS input tag

    • BLK> See (3) below

    • CASE-STS-CD>C

    • IRS-RCVD-DT>Received Date of Case

    • ACTIVITY>ATTCH-ONLY

    • TC 290

    • AMT> .00

    • Hold-CD> 3

    • SOURCE-DOCUMENT-ATTACHED?> SD-

    • REMARKS> Attachment only

  3. Use the following blocking series:

    If MFT is Then Blocking Series is
    02 15
    05 17
    06 17
    10 15
    44 15
    67 10
  4. Complete routing form (for example, OSPC Form 261-A) and send to Files within 5 days of input.
    Reminder: Form 6502 "must" have the IDRS input date and entire employee IDRS number.

Process For Converting Form 1120S to Form 1120 and Form 1120 to Form 1120S

  1. Conversion of Form 1120S to Form 1120.

    1. Circle out the "S" in the top left of return.

    2. Edit the name control if not previously edited.

    3. Edit Computer Condition Code 3 in the center of Lines 1 and 2 (as applicable with "No Replies" ).

    4. Underline the Business Activity Code in section B in the top left corner.

    5. Edit Audit Code 4 in the left margin near Line 12.

    6. Edit the tax period if necessary for prior year returns.

  2. Conversion of Form 1120 to Form 1120S.

    1. Edit an "S" to the right hand side of the "1120" literal on top left of return, changing it to "1120S" .

    2. Edit the name control if not previously edited.

    3. Edit the Computer Condition Code 3 in the center of Line 1 and 2 (as applicable with "No Replies" ).

    4. Edit Audit Code 4 in the left margin next to Line 9.

    5. Underline the Business Activity Code on Form 1120 page 3, Schedule K, Line 2(a)

    6. Edit the tax period if necessary for prior year returns.

Process for re-input of TC 460 from a Form 7004

  1. If an extension needs to be posted for a different filing requirement, this needs to be re-input as a TC 460. Each request must contain the following

    • EIN

    • MFT>MFT of the Tax Return

    • TX-PRD>Tax year the extension is for

    • NM-CTRL>Name Control

    • TC>460

    • EXTENSION-DT>: This is the extended due date for the particular tax return

    • TRANS-DT>: This is the received date of the extension (stamped on 7004 or for EUP in the left side of table of contents)

    • DLN-CD>: Must be present with MFT 02, 05, or 06 [leave blank for all others] see chart below

    • REMARKS: Line 14; remarks must be present.

  2. Use the following to re-input an extension.

    • Access CC TXMODA, overlay with CC REQ77, Xmit. This will bring up the CC FRM77 screen

    • Input the TC>460

    • EXTENSION-DT>MMDDYYYY (IRM 3.11.212.4.2.1)

    • TRANS-DT>(Received date of the Form 7004)

    • DLN-CD>(Must be present with MFT 02, 05, or 06) [leave blank for all others] see chart below

    • REMARKS: Line 14; remarks must be present: RE-INPUT EXTENSION

    MFT DLN CODE
    02 (Approved) 20
    05 and 06 (Approved) 45
    02 (Denied) 25
    05 and 06 (Denied) 47

    Note:

    Use the IRS received date of the extension to determine if the extension is timely filed for the return required to be filed on Master File. If the Form 7004 is not timely filed for the taxpayer's correct filing requirement on Master File, when remaking the extension, deny the extension. When you are denying the extension via FRM77 the Extension Date must be the next day after the return is due. An example would be, for MFT 02 on TXPD 201312, the extension date on FRM77 should be entered as 03/16/2014.

    Figure 3.13.222-2

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    Please click here for the text description of the image.

  3. The Form 7004 is being revised in 2016. For extension dates refer to IRM 3.11.212.4.2.1 .

EO Status, Foundation, And Affiliation Codes

  1. For a list of EO Status, Foundation, And Affiliation Codes refer to IRM 3.12.278.3.5.

EO Subsection And Classification Codes

  1. For a list of EO Subsection And Classification Codes refer to IRM 3.12.278.3.4.

Correspondence Received Date (CRD)

  1. A return is not considered filed for interest computation purposes until the return is received in processable form.

  2. A return is in processable form if it:

    • Is filed on a permitted form;

    • Contains the taxpayer's name, address, and identifying number;

    • Has the required signature(s); and

    • Contains sufficient information (whether on the return or on required attachments) to permit the mathematical verification of the tax liability shown on the return.

  3. If the requested information is received after the return due date, the return is processed with a" Return Processable Date (RPD)" reflecting the date the information was received. This date is also known as the " Correspondence Received Date (CRD)." The CRD is used to calculate interest the IRS owes on refunds.

  4. The Correspondence Received Date (CRD) is entered in the lower left hand corner of the return in YYYYMMDD format, and may also be notated on the Unpostable Routing Slip. When a late reply is received and the return is being sent to Batching for processing the Correspondence Received Date (CRD) should be edited on the return.

International Forms Processing (General Information)

  1. International returns are only processed at the Ogden Submission Processing Center

  2. The following list of forms has been identified as potential BMF International Forms:

    Form Title Tax Class MFT Code Doc Code
    *940 Employer's Annual Federal Employment (FUTA) Tax Return 8 10 40
    940-PR Planilla Para La Declaracion Trimestral del Patrono 8 10 40
    *941 Employer's Quarterly Federal Tax Return 1 01 41
    941-PR Employer’s Quarterly Federal Tax Return (Spanish Version) 1 01 41
    941-SS Employer’s Quarterly Federal Tax Return (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands) 1 01 41
    *943 Employer's Annual Tax Return for Agricultural Employees 1 11 43
    943-PR Planilla Para La Declaracion Anual De La Contribucion Federal Del Patrono De Empleados Agricolas 1 11 43
    *944 Employer's Annual Federal Employment Tax Return 1 14 49
    944-PR Employer's Annual Federal Employment Tax Return (Spanish Version) 1 14 49
    944-SS Employer's Annual Federal Employment Tax Return (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands) 1 14 49
    *1041 U.S. Income Tax Return for Estates and Trusts 2 05 36, 44
    1042 Annual Withholding Tax Return for U.S. Source Income of Foreign Persons 1 12 25
    1042-S Foreign Person's U.S. Source Income Subject to Withholding 5 12 02
    1042-T Annual Summary and Transmittal of Form 1042-S 5 88 01
    *1065 U.S. Return of Partnership Income 2 06 65, 69
    1066 U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return 3 07 60
    *1120 U.S. Corporation Income Tax Return 3 02 10, 11
    1120-C U.S. Income Tax Return for Cooperative Associations 3 02 03
    1120-F U.S. Income Tax Return of a Foreign Corporation 3 02 66, 67
    1120-FSC U.S. Income Tax Return of a Foreign Sales Corporation 3 02 07
    *1120-H U.S. Income Tax Return for Homeowners Associations 3 02 71
    *1120-L U.S. Life Insurance Company Income Tax Return 3 02 11
    *1120-ND Return for Nuclear Decommissioning Trust Funds and Certain Persons 3 02 08
    *1120-PC U.S. Property and Casualty Insurance Company Income Tax Return 3 02 13
    *1120-POL U.S. Income Tax Return for Certain Political Organizations 3 02 20
    *1120-REIT U.S. Income Tax Return for Real Estate Investment Trusts 3 02 12
    *1120-RIC U.S. Income Tax Return For Regulated Investment Companies 3 02 05
    1120S U.S. Income Tax Return for an S Corporation 3 02 16
    1120-SF U.S. Income Tax Return for Settlement Funds (Under Section 468B) 3 02 06
    *1120-X Amended U.S. Corporation Income Tax Return 3 02 10, 54
    3520 Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts 3 68 83
    3520-A Annual Return of Foreign Trust With a U.S. Owner 3 42 82
    4466 Corporation Application for Quick Refund of Overpayment of Estimated Tax 3   45
    4768 Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes 9 52 77
    5712 Election To Be Treated as a Possessions Corporation Under Section 936      
    5713 International Boycott Report 6   08
    5735 American Samoa Economic Development Credit      
    *7004 Application for Automatic 5 Month Extension of Time to File Certain Business Income Tax, Information, and Other Returns. 3

    2
    02

    05–08, 12, 14, 27,42, 77, 78, 89
    04
    8288

    Note:

    Form 8288 with a Date of Transfer prior to 12/13/05 is processed to the NMF in CSPC.

    U. S. Withholding Tax Return for Disposition by Foreign Persons of U. S. Property Interests 6 17 41
    8288

    Note:

    Form 8288 with a Date of Transfer of 12/13/05 or later is processed to the BMF in OSPC.

    U. S. Withholding Tax Return for Disposition by Foreign Persons of U. S. Property Interests 1 17 40
    8288-A Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests      
    8288-B Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests      
    8621 Return by a Shareholder of a Passive Foreign Investment Co. or Qualified Electing Fund      
    8716 Election to Have a Tax Year Other than a Required Tax Year 9   63
    8752 Required Payment or Refund Under Section 7519 2 15 23
    8804 Annual Return for Partnership Withholding Tax (Section 1446) 1 08 29
    8805 Foreign Partners Information Statement of Section 1448 Withholding Tax 6 08 46
    8813 Partnership Withholding Tax Payment Voucher (Section 1446) 1 08 17, 19, 70, 76
    8819 Dollar Election Under Section 985      
    8822 Change of Address      
    8822-B Change of Address or Responsible Party - Business      
    8832 Entity Classification Election      
    8855 Election To Treat a Qualified Revocable Trust as Part of an Estate      

    Note:

    The forms in the table above with a preceding asterisk * identify a return as being foreign by the address provided by the taxpayer.

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

    1. One of the 50 states.

    2. The District of Columbia.

    3. Any of the American possessions.

  4. Beginning January 2007 FLC 60 and 78 will be the valid BMF International FLC for processing at Ogden.

    1. OSPC FLC 60 (International returns)

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

  5. Cincinnati will be responsible for processing the following International returns:

    1. Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, see IRM 3.11.106, Estate and Gift Tax Returns.

    2. Form 706-A, United States Additional Tax Return, see IRM 3.11.106, Estate and Gift Tax Returns.

    3. Form 709, United States Gift (and Generation - Skipping Transfer) Tax Return see IRM 3.11.106, Estate and Gift Tax Returns.

    4. Form 8892, Application for Automatic Extension of Time To File Form 709 and/or Payment of Gift/Generation Skipping Transfer Tax, see IRM 3.11.212, Applications for Extension of Time to File for additional information.

  6. There were no Filing Location Codes available for the CSPC site. A blocking range of 990-999 has been specified for the Form 706 and Form 709 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. International Guidelines If an unpostable Form 1065 or Form 1041 indicates a foreign address for the partnership, estate or trust, route the case to OSPC as an International return.

Unpostable Code (UPC) 301 Reason Code (RC) 1 - No Account Present On The BMF

  1. The Programming Requirements Package (PRP) for UPC 301 RC 1 states:
    An input (non-generated) transaction coded other than 000, 019, 141, 142, 650 (document code 97, 19 (EFTP)) for MFT 01/03/14/16, 990, 991, 992, 993, 996 or other than a TC 150 (with entity information addressing a Form 706/Form 709 module) failed to match on TIN with an account on the BMF.

  2. These unpostables will be received as reassignments from the unpostable function when research has not located another EIN for the name shown on the unpostable document.

    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.

  3. The following chart lists different scenarios that will help resolve UPC 301 RC 1:

    IF AND THEN
    A. A return (TC 150) attempts to post. a. The EIN shown on the unpostable return is correct and is already on the BMF. Close unpostable with URC 0.
    A return (TC 150) attempts to post. b. The unpostable document has an EIN that was recently assigned (CC NAMEB shows a # sign) Close with URC 0 and cycle appropriately.
    A return (TC 150) attempts to post. c. The EIN on the unpostable return is correct, but is not on the BMF. IDRS shows an account with the same EIN, but with a suffix of "P" 1. Input TC 000 to establish the account on the BMF.
    2. Close the unpostable with URC 0 and cycle appropriately.
    A return (TC 150) attempts to post. d. An attempt was made to establish an account on the BMF, but the TC 000 was not entered. The result was a TC 013 (Name Change). 1. Input TC 000 to establish the account on the BMF.
    2. Close with URC 0 and cycle appropriately.
    A return (TC 150) attempts to post. e. The EIN shown on the unpostable return is incorrect, but a better EIN is found through research. 1. Correspond with the taxpayer informing them of the correct EIN, using a 147C letter according to instructions in IRM 3.13.222.13.
    2. Close with URC 6.
    A return (TC 150) attempts to post. f. The EIN shown on the unpostable return is incorrect and research does not show a valid EIN is assigned to this taxpayer. 1. Assign a new EIN using CC ESIGN.
    2. Close with URC 6 and cycle appropriately.
    A return (TC 150) attempts to post. g. The transaction is a preprinted return that was filed for information only (for example, a statement that the return is being filed under another TIN or a final return with no tax liability). 1. Close with URC 8 and request Rejects to cancel the DLN.
    2. Assign transaction code 960, 961, and 962 with MFT 00 and Tax Period 000000 to RAF function.
    A return (TC 150) attempts to post. h. The taxpayer files a Form 990-T to claim a refund of erroneous backup withholding and Form 1099, Form W-2, or other statement is not attached. 1. Correct the unpostable using URC 8.
    2. Request Rejects correspond with the Taxpayer for Tax line verification of backup withholding.
    B. The unpostable is not a return (TC 150). a. The EIN shown on the unpostable is correct and is already on the BMF. Close the unpostable with URC 0.
    The unpostable is not a return (TC 150). b. The EIN on the unpostable is not valid and another EIN cannot be found. 1. Using ESIGN, assign a new EIN.
    2. Close with URC 6 and cycle appropriately.
    The unpostable is not a return (TC 150). c. The EIN on the unpostable is valid, but not on the BMF. 1. Input TC 000 to establish the account on the BMF.
    2. Close with URC 0 and cycle appropriately. Figure 3.13.222-4

    Figure 3.13.222-3

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    Figure 3.13.222-4

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  4. EO Documents and Returns refer to IRM 3.12.278,Exempt Organization Unpostable Resolution.

Unpostable Code (UPC) 301 Reason Code (RC) 2

  1. The Programming Requirements Package (PRP) for UPC 301 RC 2 states:
    TC 150 for Form 706 (MFT 52) or Form 709 (MFT 51) attempts to establish an account and the input TC 150 does not contain significant Name Line/Mailing address data.

  2. UPC 301 RC 2 condition occurs when a Transaction for Form 706 series, (MFT 52, 77,78) 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.

    Note:

    Each TIN will be 10 digits, the right most digit will identify the TIN type as follows:

    • V - Valid

    • W - Invalid

    • 2 - EIN

    • 3 - Dummy TIN

    • 4 - Taxpayer Representative Number

    • 5 - Integrated Test

  3. The following chart list different scenarios that will help resolve UPC 301 RC 2:

    IF AND THEN
    A. The unpostable return is a Form 706, or Form 709. a. The SSN is correct and on the BMF Close the unpostable with URC 0.
    The unpostable return is a Form 706, or Form 709. b. The SSN is correct, but is not on the BMF. 1. Input TC 000 to establish the account on the BMF (V Tape).
    2. Close the unpostable with URC 0 and cycle appropriately.
    B. The unpostable return is a Form 706, or Form 709. a. The SSN is incorrect. 1. Research for a better SSN using CC NAMEI and/or CC NAMES.
    2. If a better SSN is found, correspond with the taxpayer informing them of the correct SSN.
    3. Close with URC 6.
    The unpostable return is a Form 706, or Form 709. b. A correct SSN is found, but is not on the BMF. 1. Input TC 000 to establish the account on the BMF (V Tape).
    2. Correspond with the taxpayer informing them of the correct SSN.
    3. Close with URC 6 and cycle appropriately.
    The unpostable return is a Form 706, or Form 709. c. A correct SSN is not found 1. Call or correspond with the taxpayer, requesting the correct SSN.
    2. Suspend the case for 60 days.
    C. Taxpayer replies with a correct SSN   1. Close with URC 6.
    D. No Reply   1. Have Entity assign a new SSN.
    2. Close with URC 6.

Unpostable Code (UPC) 302 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 302 RC 1 states:
    A TC 000 matched an existing entity on TIN.

  2. A TC 000 (Entity Create) attempting to post and it matches an EIN already on the BMF.

  3. Transaction Code 000, Document Code 80 will be assigned to the Entity Control function by the computer system.

  4. The unpostable record will be an IDRS transaction record (Computer generated Form 5147).

  5. Transaction Code 013 or 016, Document Code 80, for posting to the BMF for EO Accounts, DLN blocking series 990–999, will be sent to the appropriate area.

  6. Before this unpostable can be resolved use CC ENMOD/INOLE to compare the name and address on unpostable document with the name and address on the BMF and to determine if there is already an EO Section on the BMF.

  7. The following chart lists different scenarios that will help resolve UPC 302 RC 1:

    IF THEN
    A. The entities are not the same Research for a better EIN, if not found, input URC 2.
    B. Another EIN is found Close the unpostable with the correct unpostable resolution code as needed. See instructions for UPC 301 and 303.
    C. Another EIN is not found Assign a new EIN to the unpostable document. See instructions for UPC 301 or 303.
    D. The EIN on an EACS unpostable is changed Copy the computer generated Form 5147, identify it as a copy and route it to the appropriate Area Office. Inform the Area Office that the EIN was changed on an EACS closure, and that the Administration File should be updated.
    E. The input document contains an Employment Code and/or a 941 FRC that is not in agreement with the Employment Code and 941 FRC on the BMF (i.e., BMF EC is a "C" or "G" and the input unpostable document is a W) Determine which is correct, the BMF or the unpostable, avoid creating another unpostable when the transaction code on the unpostable document is changed to 013.
    F. The unpostable document has a status of 01/03 with SS 03, TF 10, EC W and the BMF has an EC of "C" (as approved election as a church) Void the unpostable and input a new transaction, use CC EOCHG, Document Code 80, TC 016 and the data from the unpostable omitting the Employment Code and 941 FRC.
    G. The unpostable document has a Status of 01/03 with SS 03, TF other than 10, EC "W" and the BMF has an EC of "G" Verify that the BMF is correct.
    H. The BMF is correct Void the unpostable and input a new transaction, use CC EOCHG, Document Code 80, TC 016 and the data from the unpostable omitting the EC and 941 FRC.
    I. For all other cases Determine what action to take and correct the BMF or void the unpostable and make a new input transaction. The corrective action for this type of an unpostable will be to change the transaction code to 013.
    J. The BMF has filing requirements of Form 941, Form 940, Form 940-EZ, Form 1041, Form 1065 or Form 1120 The BMF will require a corrective action before the unpostable can be released.
    K. The BMF has an EO Section The transaction should be input before the unpostable is corrected so it will not create a UPC 369. The unpostable document may already have the correct Employment Code, in this case no action is necessary. Close the unpostable with CC UPRES and URC 0, and cycle the CC BNCHG or unpostable accordingly.
    L. INOLE/ENMOD shows that the Master File has a Form 941 filing requirement of 01 and an Employment Code of W and no EO Section and the subsection code on the unpostable is not a 03, 50, 60, or 70. 1. Use BNCHG to delete the "W" Employment Code, and add the Form 940 FRC.
    2. Close the unpostable with CC UPRES and a URC 0. Release the unpostable two cycles after the CC BNCHG is input.

Unpostable Code (UPC) 303 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 303 RC 1 states: A transaction with Document Code not equal to 80/81 (except TC 150 for MFT 36/50/53/63 other than TC 001, 019, 14X, 650 (Document Code 97/19 (EFTP)) for MFT 01/03/14/16, 796, 90X, 99X but coded greater than 000 failed to match on three out of four positions (using the Proximal Method) of the entity Name Control, Old Name Control, three out of the four left-most non-blank positions (Proximal) 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.

  2. These unpostables will be received as reassignments from the unpostable function, when a determination cannot be made as to whether the entity on the BMF and the entity on the unpostable document are for the same taxpayer or assigned in B1 Categories, if the unpostable transaction code is 960, 961 or 962 with a MFT 00 and Tax Period 000000 (RAF).

    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.”

  3. Assign transaction codes 960, 961 and 962 with MFT 00 and Tax Period 000000 to the RAF function.

    Note:

    Input of revenue receipts (TC 6XX 8XX) with Doc Code 17, 18, or 19 will be re-sequenced for two cycles prior to the removal of UPC 301.

  4. Do the following for unpostable resolution for NON EO Documents and returns. Figure 3.13.222-5

    Figure 3.13.222-5

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    Unpostable Resolution for EO Documents and returns refer to IRM 3.12.278, Exempt Organization Unpostable Resolution.

    IF AND THEN
    A. The taxpayer files a form with an incorrect EIN or "applied for" . a. A valid EIN is found. 1. Correspond with the taxpayer informing them of the correct EIN using a 147C. Refer to IRM 3.13.222.13 for further instructions.
    2. Close with URC 6. Figure 3.13.222-6
    The taxpayer files a form with an incorrect EIN or applied for. b. A valid EIN is not found. 1. ESIGN EIN.
    2. Close with URC 6 and cycle appropriately.
    The taxpayer files a form with an incorrect EIN or applied for. c. The unpostable document indicates a change in organization.

    Note:

    If the name is referencing an LLC refer to IRM 3.13.222.109 to determine if a new EIN is appropriate.

    1. Research for another EIN. If no EIN is found, assign a new EIN with notice indicator B. If an EIN is found, notify the taxpayer using a 147C letter according to instructions in IRM 3.13.222.13.
    2. Close URC 6 and cycle appropriately.
    The taxpayer files a form with an incorrect EIN or applied for. d. A EIN is found and not on the master file 1. Establish the account with TC 000
    2. Close with URC 0 and cycle appropriately. Figure 3.13.222-7
    B. The taxpayer files a form with a valid EIN a. The BMF has a different name on the entity. 1. Input a TC 013 as necessary to resolve the EIN discrepancy refer to IRM 3.13.222.18. If a TC 011 is needed route to Entity Control Team.
    2. Close with URC 0 and cycle appropriately.
    The taxpayer files a form with a valid EIN. b. The unpostable document indicates a change in organization.

    Note:

    If the name is referencing an LLC refer to IRM 3.13.222.109 to determine if a new EIN is appropriate.


    1. Research for another EIN. If no EIN is found, assign a new EIN with notice indicator B. If an EIN is found, notify the taxpayer using a 147C letter according to instructions in IRM 3.13.222.13.
    2. Close URC 6 and cycle appropriately.
    The taxpayer files a form with a valid EIN. c. Unpostable is an electronic filed return. 1. Research using TRDBV, or EUP.
    2. Name control is incorrect, but the name agrees with the name on the BMF.
    3. Close with URC-A.
    The taxpayer files a form with a valid EIN. d. Unpostable is an electronic filed return. 1. Research using TRDBV or EUP.
    2. If research can only be completed through TRDBV and the entity type cannot be determined.
    3. Research for another EIN. If no EIN is found, assign a new EIN with notice indicator B. If an EIN is found, notify the taxpayer using the appropriate letter.
    4. Close with URC 6 and cycle appropriately.
    The taxpayer files a form with a valid EIN. e. Unpostable is a paper return. 1. Name control is incorrect, but the name agrees with the name on the BMF.
    2. Close with URC-A.
    C. The name for the EIN on the unpostable does not agree with the name on the BMF Research locates the same EIN on MF with an MFI of "P" (i.e., profit sharing plan) 1. Input TC 000 and establish the account on the BMF.
    2. Close with URC 0 and cycle appropriately.

    Figure 3.13.222-6

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    Figure 3.13.222-7

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  5. If the unpostable is correct, the transaction UNPOSTED because the name control has been changed several times since the input validation. All entity transactions (TC 0XX) will post before a TC 960, 961, or 962.

  6. If the name changes have taken place since validation, the RAF will also need to be changed.

    IF THEN
    The name changes have taken place since validation, the RAF will also need to be changed. 1. Use CC ENMOD and other research command codes to determine the prior name lines.
    2. Determine if the name has been changed and if it is the same taxpayer.
    3. Close with URC 6 and correct the RAF using CC RAFUP with definer T and change the name and name control.
    4. Do not set the correct unpostable Reset Transaction. Notify the Reporting Agent of the name change.

Unpostable Code (UPC) 303 Reason Code (RC) 2

  1. The Programming Requirements Package (PRP) for UPC 303 RC 2 states: TC 650 (document code 97, 19 (EFTP)) for MFT 01/03/14/16 failed to match on three out of four positions of the entity Name Control, Old Name Control, three out of the four left-most non-blank positions (Proximal) 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 which has re-sequenced 4 cycles or the 23C date is equal to or later than the end of the tax period.

Unpostable Code (UPC) 303 Reason Code (RC) 3

  1. The Programming Requirements Package (PRP) for UPC 303 RC 3 states: A transaction (except TC 150 for MFT 36) with doc code 80/81/50/53/63 other than TC 001/019/14X/796/90X/99X but coded greater than 000 failed to match on all four positions of the Entity Name Control, Name Control, 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:

    Revenue receipts (TC 6XX-8XX) with Doc Codes 17, 18 or 19 will be re-sequenced for two cycles prior to unposting as UPC 303.

Unpostable Code (UPC) 307 Reason Code (RC) 1 Fiscal Year Month (FYM) Mismatch

  1. The Programming Requirements Package (PRP) for UPC 307 RC 1 states:
    The fiscal month of Forms 1120/1041/1065/1120-C/990-T/990/990-PF/1041-A/5227/3520/3520-A/8804 input transaction attempting to establish a tax module did not match the Fiscal Month of the account entity and it was not a transaction coded 150/290 (B.S. 4XX)/460 (MFT equals 05/06/08/37/44/67)/ISRP/Lockbox) 610/620/650/660 (MFT equals 02/05/33/34/44)/670 (MFT equals 08) nor TC 424 Push Code 036 with entity FYM equals 0 trying to establish the first 1120/1041/1065/990/990-C/990-T/990-PF/5227/1041-A/3520/3520-A/8804 tax module, was not a TC 150 containing Condition Code F or Y or was not a TC 620 with Condition Code W. Reference 5.02(6) (d). Exception for RPS/ISRP/Lockbox TC 610: allow to re-sequence up to two cycles prior to unposting.
    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. Unpostable for MFT 02 (Form 1120-C), 34 (Form 990-T), 37 (Form 5227), 44 (Form 990- PF) and 67 (Form 990) will be assigned directly to Entity Unpostable Team.

  3. This unpostable code will be reassigned from the unpostable function for MFTs other than 33, 34, 37, 44 or 67 for the following reasons:

    1. There is an indication of a Form 1128 previously filed per TC 053.

    2. There is an indication of a Form 8716 previously filed per TC 055.

    3. There is an indication that the taxpayer's FYM was approved under Revenue Procedure 2006-46, per TC 054.

    4. A TC 053/054 on the entity indicates a change in accounting period requested on Form 1128.

      Note:

      TC 053 indicates we have accepted a change or adoption of account period. TC 054 indicates we have allowed the taxpayer to adopt, change or retain their fiscal year Partnerships, S Corporations and Personal Service Corporations.

    5. A TC 055 on the entity indicates a Section 444 election was made on Form 8716 for Partnerships and S Corporations.

    6. A TC 054 on the entity indicates a Section 444 election was made on Form 8716 for a Personal Service Corporation

    7. Transaction codes 053, 054, and 055 are input on command code BRCHG.

    8. There is an indication of a change in entity.

      Note:

      See IRM 3.13.222.106 and IRM 3.13.222.107 for additional instructions for Form 1128 and Form 8716. Also refer to IRM 3.13.222.21.

  4. When the case is transferred from the unpostable function it will be annotated with the reason and any research that has been performed will be attached.

  5. Section 806 of the Tax Reform Act of 1986, generally requires that all S Corporations, partnerships, and personal service corporations conform their tax years to the tax years of their owners, (usually December 31).

  6. Revenue Procedure 2006-46 (except as provided in Section 4.02) applies to the following:

    1. Required taxable year - Section 5.05

    2. Natural Business Year - Section 5.07 (must submit a statement of gross receipts which meets the 25% test) - Automatic Approval.

    3. Ownership Taxable Year - Section 5.08 Automatic Approval.

    4. 52-53 week year - Section 5.06.

    5. Grandfathered Fiscal Year Section 5.09 - A Partnership or S Corporation that received permission to file a fiscal year tax return which did not result in a 3 month or less deferral of income to the shareholder or partners, on or after July 1, 1974. This permission is not automatic; it is by letter ruling only.

    6. If (a), (b), (c) or (d) cannot be met, those taxpayers must have Chief Counsel Approval by requesting a Private Letter Ruling at the following address: Internal Revenue Service, Associate Chief Counsel (Income Tax and Accounting), Attention: CC:PA:LPD:DRU, P.O. Box 7604, Ben Franklin Station, Washington, DC 20224-7604, if a private delivery service is used, the address is: Internal Revenue Service, Associate Chief Counsel (Income Tax and Accounting), Attention: CC:PA:LPD:DRU Room 5336, 1111 Constitution Ave., N.W., Washington, DC 20044.

  7. Section 444 allows certain partnerships, S Corporations and personal service corporations to elect the use of a tax year that is not a required year. Refer to IRM 3.13.222.108.8 .

    1. Partnerships and S Corporations must make a required payment on Form 8752.

    2. Personal service corporations failing to distribute certain amounts to employer-owners by December 31 of any taxable year may be required to defer certain deductions. They are not, however, required to make a payment on Form 8752.

    3. A TC 055 on the BMF identifies an approved Section 444 FYM election for Partnerships and S Corporations.

  8. Common Trust Funds are not technically partnerships, but file their tax returns on Form 1065; however, Section 584 as amended by the 1988 Act, requires that the taxable year of a Common Trust Fund be the calendar year for tax years beginning after December 31, 1987.

  9. Form 1041, U.S. Income Tax Return for Estates and Trusts, is filed by taxable Estates and Trusts. An estate is not required to adopt a calendar year. A taxable trust must adopt a calendar year. See Code §644(a). However a trust exempt from income taxation under §501(a) or §4947(a)(1) is not required to adopt a calendar year. See Code §644(b). These entities file a Form 990 or Form 990-PF. If these entities have unrelated business income they are also required to file a Form 990-T.

    Note:

    For additional information on Trusts filing as an Estate under Section 645 refer to IRM 3.13.2.28.

  10. Form 5227, Split-interest Trust Information Return, is filed by a taxable trust described in §4947(a)(2). This type of entity is required to adopt a calendar year.

  11. Request a credit transfer (Form 3465) of all claimed and unclaimed credits to the correct tax year.

  12. Form 1120S and Form 1065 will be assigned to Entity Unpostable Team.

    Note:

    If a Form 1128 or Form 8716 are attached to a return, detach and process.

  13. The following chart list different scenarios that will help resolve UPC 307 RC 1:

    IF AND THEN
    A. The unpostable return is an 1120, 1120S, 1065, 7004, and/or associated payment. a. It is a potential statute case. 1. Follow procedures in IRM 3.13.222.12 for statute cases.
    2. Resolve the unpostable condition and release using guidelines in this IRM.
    The unpostable return is an 1120, 1120S, 1065, 7004, and/or associated payment. b. A pending action indicates the posted FYM is changing and the pending FYM matches the tax period on the return. 1. Request a transfer (Form 3465) of all claimed and unclaimed credits to the correct tax period.
    2. Close with the appropriate URC and cycle accordingly.
    The unpostable return is an 1120, 1120S, 1065, 7004, and/or associated payment. c. The tax return is a FINAL tax return (or the payment is for the final return) for the business and the return has not been coded as FINAL. 1. Edit the tax return with an "F" code.
    2. Close with URC 6 and CCC "F".
    Exception: For Form 7004 or the payment, change FYM to the FYM on the final return using CC ENREQ. Close unpostable with URC 0 and cycle accordingly.
    The unpostable return is an 1120, 1120S, 1065, 7004, and/or associated payment. d. The TC 054/055 is posted and the taxpayer is filing for a calendar year. There is an indication that the taxpayer is terminating the Section 444 Election based on tax period input by the taxpayer on the return, or a statement that they are conforming to the required tax year. Enter CCC Y and close with URC 6.

    Note:

    This will cause the tax return to post and reverse the TC 054/055 with a posted TC 057.

    The unpostable return is an 1120, 1120S, 1065, 7004, and/or associated payment. e. A TC 057 has already generated (i.e., final 8752) and the return indicates a December year-end. 1. Input TC 016 to change the FYM to 12.
    2. Close with URC 0 and cycle accordingly.
    The unpostable return is an 1120, 1120S, 1065, 7004, and/or associated payment. f. The TC 054/055 has posted and the taxpayer is filing for a calendar year. The taxpayer doesn't indicate the Section 444 Election is being terminated. 1. Correspond (using 3916C or appropriate letter) with the taxpayer to determine if they are terminating their Section 444 Election.
    2. Suspend the case for 60 days.
    3. For extensions edit CCC W on the document and close using URC 6.
    The unpostable return is an 1120, 1120S, 1065, 7004, and/or associated payment. g. There is no TC 053/054/055 posted. 1. Correspond (using 3916C or appropriate letter) with the taxpayer requesting a copy of the Notice of Acceptance or the approved Form 8716/1128.
    2. Suspend the case for 60 days.
    The unpostable return is an 1120, 1120S, 1065, 7004, and/or associated payment. h. There is a TC 058/059 posted. 1. Correspond (using 3916C or appropriate letter) with the taxpayer requesting a corrected tax return.
    2. Suspend the case for 60 days.
    The unpostable return is an 1120, 1120S, 1065, 7004, and/or associated payment. i. The unpostable tax period is correct. 1. Input TC 016 to change the FYM to agree with the unpostable document.
    2. Close using URC 0 and cycle accordingly.
    The unpostable return is an 1120, 1120S, 1065, 7004, and/or associated payment. j. MF has TC 054/055 but input tax period does not agree with unpostable document.
    Close unpostable to the correct tax period using URC 6.
    The unpostable return is an 1120, 1120S, 1065, 7004, and/or associated payment. k. The account reflects no TC 090 and FYM has not been updated.
    1. Follow procedures for UPC 310 RC 4. Refer to IRM 3.13.222.62.

    2. Be sure to address FYM issues if not calendar year.

    B. The Form 7004 is for a MFT 06 with a FYM 12. The FYM is not established. 1. Input TC 016 to add FYM. Update sort name lines, LLC indicator and FRC as needed for a LLC.
    2. URC 0 and cycle as appropriate.
    C. The taxpayer responds to any of the above scenarios with a copy of a stamped approved Form 8716/Form 1128, or Notice of Acceptance   1. Input the FYM with TC 054/055.
    2. Close with URC 0 and cycle accordingly.

    Note:

    FYM on MF must match before entering TC 054.

    D. The taxpayer responds to any of the above scenarios with a Form 8716 and it is timely filed and states Filed pursuant to Section 301.9100-2 on the top of the form.   1. Accept the Form 8716 and input TC 054/055.
    2. Close with URC 0 and cycle accordingly.
    E. The taxpayer responds to any of the above scenarios with a Form 1128, and it is timely filed.  
    1. Accept Form 1128 and input TC 053/054.
    2. Close with URC 0 and cycle accordingly.
    F. Taxpayer sends in a correct return.  
    1. Overlay the invalid return with the correct return. Attach the appropriate routing form.
    2. Close with URC 8, and request Rejects to renumber the return and to post to the correct FYM.
    G. No reply   1. Input TC 016 to change the FYM to the taxpayer's required tax year ending.
    2. Close with URC 8.
    3. Send to Rejects and request them to cancel the DLN and send to Files.
    No reply And the payment is for a Form 1120. Close appropriately to the correct tax period and/or MFT.
    No reply And the payment is for a Form 1120S or Form 1065. Close with URC 8, request Rejects, using the appropriate routing form, to refund the payment.
    No reply And the form is a 7004. Close with URC D.
    H. The unpostable return is a Form 1041 and/or associated payment. a. The correct FYM cannot be resolved. 1. Correspond (using 3916C or appropriate letter) with the taxpayer requesting a corrected tax return.
    2. Suspend the case for 60 days.
    The unpostable return is a Form 1041 and/or associated payment. b. The correct FYM can be resolved. 1. Input TC 016 to update FYM.
    2. Close with URC 0 and cycle appropriately.
    The unpostable return is a Form 1041 and/or associated payment. c. The tax return is a FINAL tax return (or the payment is for the final return) for the business and the return has not been coded as FINAL. 1. Edit the tax return with an "F" code.
    2. Close with URC 6 and CCC "F".
    Exception: For the payment, change FYM to the FYM on the final return using CC ENREQ. Close unpostable with URC 0 and cycle accordingly.
    I. Taxpayer sends in a correct return.  
    1. Overlay the invalid return with the correct return. Attach the appropriate routing form.
    2. Close with URC 8, and request Rejects to renumber the return and to post to the correct FYM.
    J. No reply  
    1. Close with URC 8.
    2. Send to Rejects and request them to cancel the DLN and send to Files.
    No reply Payment for Form 1041. Close with URC 6 to the correct tax period and/or MFT.

    Note:

    Please refer to IRM 3.13.222.22(4) for instructions regarding incorrectly applied credits and/or payments associated with unposted returns.

  14. UPC 307 Resolution RC 1 Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts.

    1. Form 3520 is processed at the Ogden Submission Processing Center with the following Master File Tax (MFT) Code and Document Locator Number (DLN) make up:
      MFT Code 68
      File Location Code 60
      Tax Class 3
      Doc Code 83

    2. Form 3520 is filed annually by:
      Individuals using a SSN, will post on the BMF SSN (V or W tape)
      Individuals using an ITIN who do not qualify for a SSN per 6109
      Estates, Trusts, Partnerships, and Corporations using an EIN

    3. Form 3520
      There is no separate extension request for Form 3520. An extension is automatically granted when the taxpayer files an extension on Form 4868. The due date for Form 3520 is the same as the due date for the filers return. If the filer is an individual, then the due date for Form 3520 is the same as Form 1040, generally April 15.

    4. Use the table below to resolve the unpostable condition.

      If And Then
      The unpostable tax period is correct. a) It is the initial year filing.
      b) FY on return does not match filing history .
      c) No FYM on MF/Filing history matches.
      Input TC 016 to change the FYM to agree with the unpostable document. Close with URC 0 and cycle accordingly.
      The tax period on Master File is correct. The tax return was not edited correctly. Edit the Return and Close using URC 8 and request Rejects to correct the FYM.
      Unable to determine correct tax period on Master File. Filing history is inconsistent. Post the return to the FYM the taxpayer indicates on the return. Input TC 016 and close with URC 0. Cycle appropriately.
      The SSN, ITIN or IRSN on the unpostable return is incorrect.   Research for valid SSN, ITIN or IRSN. Close with URC 6 to the correct SSN (V or W). If no SSN is found assign ITIN and close with URC 6 and cycle as appropriate.
  15. UPC 307 Resolution RC 1 Form 3520-A, Annual Return of Foreign Trust With a U.S. Owner.

    1. Form 3520-A is processed at OSPC with the following MFT Code and DLN make up:
      MFT Code 42
      File Location Code 60
      Tax Class 3
      Doc Code 82

    2. Form 3520-A can be a fiscal or calendar year return. The type of entity is a Trust.

    3. Form 3520-A is used to set forth a full and complete account of the Trust’s activities, operation and other relevant information. The U.S. owner furnishes this information annually to himself and, if any, to other U.S. owners and beneficiaries of the trust who receive a distribution in that year.

    4. Extensions are filed on Form 7004. The due date for Form 3520-A is the 15th day of the 3rd month after the end of the trust tax year, generally March 15.

    5. Use the table below to resolve the unpostable condition.

      Note:

      Form 3520-A must be processed with an EIN. If an EIN cannot be found, use CC ESIGN to assign an EIN with prefix "98". Use the NIC "D" .

      If And Then
      The unpostable tax period is correct.
      1. It is the initial year filing.

      2. FY on return does not match filing history.

      3. No FYM on MF/Filing history matches.

      Input TC 016 to change the FYM to agree with the unpostable document. Close using URC 0 and cycle accordingly.
      The tax period (FYM) on Master File is correct. The return was not edited with the correct tax period. Close using URC 8 and request Rejects to correct the FYM.
      Unable to determine correct tax period on Master File. Filing history is inconsistent. Post the return to the FYM the taxpayer indicates on the return. Input TC 016 and close with URC 0. Cycle appropriately.
      The unpostable is a Form 7004. The wrong FYM was edited and input. Re-input TC 460 with correct FYM. Close unpostable with URC D.
  16. UPC 307 Resolution RC 1 Form 8804, Annual Return for Partnership Withholding Tax (Section 1446):

    If And Then
    A. The unpostable is a Form 8804. Final Form 1065 is posted and the tax period matches the tax period on the Form 8804. URC 6 with CCC "F" to the same tax period as the Form 1065.
    The unpostable is a Form 8804. Final Form 1065 is posted and the tax period "does not" match the tax period on the Form 8804. URC 6 with CCC "F" to the same tax period as the Form 1065.
    The unpostable is a Form 8804. Final Form 1065 "has not" posted. URC 6 with the CCC" F" to the tax period on the unpostable.
    B. The unpostable is a payment for a Form 8804. Final Form 1065 is posted and the tax period matches the tax period on the Form 8804. 1. Input TC 016 to change FYM to tax period Form 1065 has posted.
    2. URC 0 and cycle as appropriate.
    The unpostable is a payment for a Form 8804. Final Form 1065 is posted and the tax period does not match the tax period on the Form 8804. 1. Input TC 016 to change FYM to tax period Form 1065 has posted.
    2. URC 6 and cycle as appropriate.
    The unpostable is a payment for a Form 8804. Final Form 1065 has not posted. 1. Input TC 016 to change FYM to tax period of the unpostable.
    2. URC 0 and cycle as appropriate.

Unpostable Code (UPC) 307 Reason Code (RC) 4

  1. The Programming Requirements Package (PRP) for UPC 307 RC 4 states: TC 150 (document code 16) for MFT 02 attempting to establish the first MFT 02 tax module and the tax period month does not match the entity Fiscal Year Month.

  2. This unpostable is to verify the tax period for the first return filed when it is a Form 1120S. The "S" election is made on Form 2553 and is accepted with an input of a TC 090.

  3. A Section 444 election may be made by an electing (not an existing) S Corporation on Form 8716 to have a tax year other than a required tax year (September, October or November). TC 055 identifies the election on the BMF.

  4. The following chart list different scenarios that will help resolve UPC 307 RC 4:

    IF AND THEN
    A. The unpostable return is an 1120S. a. A TC 054/055 is on the entity and the FYM on the return is different. 1. ESTAB for the TC 054/055.
    2. Verify FYM.
    3. If the FYM on Form 1128/8716 matches the return, input TC 052 and then re-input TC 054/055 and cycle appropriately.
    4. Close with URC 0 and cycle appropriately.
    The unpostable return is an 1120S. b. The ESTAB'ed TC 054/055 FYM doesn't match the FYM on the return. 1. Correspond (using appropriate letter) with the taxpayer requesting a corrected return.
    2. Suspend for 60 days.
    The unpostable return is an 1120S. c. The calendar year ending on the TC 090 agrees with the tax period on the unpostable and the account shows a different FYM. 1. Input TC 016 to change the FYM to 12.
    2. Close with URC 0 and cycle appropriately.
    The unpostable return is an 1120S. d. There is no TC 054/055 on the account and the FYM is other than 12. 1. Correspond (using the appropriate letter) with the taxpayer requesting a copy of a stamped approved Form 8716/Form 1128, or Notice of Acceptance.
    2. Suspend the case for 60 days.
    The unpostable return is an 1120S. e. The selected tax year on the TC 090 is a fiscal year, the FYM on the unpostable return matches and there is no TC 054/055 on the account. 1. Correspond (using the appropriate letter) with the taxpayer requesting an approved stamped/timely Form 8716/Form 1128, or a corrected return.
    2. Suspend the case for 60 days.
    3. While in suspense ESTAB 090, if a Form 8716/Form 1128 is attached, input TC 054/055, as appropriate. Close with URC 0 and cycle appropriately.
    The unpostable return is an 1120S. f. The account is an LLC and there is no TC 076 or TC 090 on the account or the effective dates of the TC 076 and TC 090 are for a later tax period. Refer to IRM 3.13.222.73.6.
    B. The taxpayer responds to any of the above scenarios. a. The taxpayer validates the fiscal year with a copy of a stamped approved Form 8716/Form 1128 or Notice of Acceptance. 1. Input TC 054/055 using the taxpayer's documentation as the source document.
    2. Close with URC 0 and cycle appropriately.

    Note:

    The input FYM on the TC 054 must match the FYM on Master File, input a TC 016 if needed.

    The taxpayer responds to any of the above scenarios. b. The taxpayer replies with a Form 8716, timely filed under Section 301.9100-2, or timely filed Form 1128. 1. Accept the Form 8716/Form 1128 and input the appropriate TC.
    2. Close with URC 0, and cycle appropriately.

    Note:

    The input FYM on the TC 054 must match the FYM on Master File, input a TC 016 if needed.

    The taxpayer responds to any of the above scenarios. c. The taxpayer replies with an unacceptable Form 8716/Form 1128. 1. Deny the Form 8716/Form 1128 and input a TC 058/059.
    2. Follow procedures in IRM 3.13.222.107 and IRM 3.13.222.106 for a denied Form 8716/Form 1128.
    3. Input TC 016 to change the FYM to the taxpayer's required tax year ending.
    4. Close with URC 8.
    5. Request Rejects to cancel the DLN and forward to Files.
    The taxpayer responds to any of the above scenarios. d. Taxpayer sends in a corrected return. 1. Overlay the invalid return with the corrected return. Attach the appropriate routing form.
    2. Close with URC 8 and request Rejects to renumber the return and post to the correct FYM.
    C. No reply The unpostable form has been suspended. 1. Input TC 016 to change the FYM to the taxpayer's required tax year ending.
    2. Close with URC 8.
    3. Send to Rejects and request them to cancel the DLN and re-file.
    D. TC 092 is present on the account and return is coded with a Reject action code of 347, It is the initial return and account indicates a Letter 312C or 6800sce has been sent. The input of the TC 092 has been less than 60 days, 1. Suspend for 60 days.
    2. Review account for a posted TC 090. If TC 090 is posted for valid effective, URC 0 and cycle as appropriate.
    3. If account does not have a TC 090 with a valid effective date:
    • Return is for a corporation refer to no reply instructions in IRM 3.13.222.62.
    • Return is for a LLC refer to no reply instructions in IRM 3.13.222.73.6.

Unpostable Code (UPC) 307 Reason Code (RC) 5

  1. The Programming Requirements Package (PRP) for UPC 307 RC 5 states:
    TC 150 for MFT 06 or TC 150 (document 16) for MFT 02 with tax period month other than 12 matching on entity Fiscal Year Month and a TC 054/055 is not posted. Bypass on corrected UPC 307–5.

  2. A UPC 307 RC 5 is caused when a return (TC 150) attempts to post for a MFT 06 (Form 1065) or for a MFT 02 (Form 1120S) with a FYM other than 12, and:

    1. The FYM on the tax return matches the FYM on the BMF, and a TC 054 (Form 1128, Revenue Procedure 2006-46) or a TC 055 (Form 8716, Section 444) is not present on the BMF.

  3. Research the unpostable EIN for TC 054/055 and do the following:

    IF AND THEN
    A. The unpostable is a Form 1120S or Form 1065. A TC 054/055 is present on the BMF with the correct FY. Close with URC 0.
    B. The unpostable is a Form 1120S. a. The FYM on the unpostable document is valid, but does not match the FYM on Master File. Input TC 016, if applicable, when closing the unpostable using URC 0 and cycle appropriately.
    The unpostable is a Form 1120S. b. The tax return is a FINAL tax return for the business and the return has not been coded as FINAL. 1. Edit the tax return with an CCC "F" code.
    2. Close with URC 6 and CCC "F" .
    The unpostable is a Form 1120S. c. The tax return is a FINAL (last) Form 1120S, the 1120 FRC has changed to 01 due to a TC 091/096; and there is no "F" code on IDRS. 1. Prepare a Dummy Form 2553 (see Exhibit 3.13.222-1) and re-input the TC 090 (suppress the notice with PSC>Z) for the original date that the taxpayer requested. (This transaction may create an UPC 339 after two cycles. Monitor and close the UPC 339 for these cases with a URC 0).
    2. Close with URC 6 and CCC "Y" and cycle appropriately.
    3. Re-input TC 091/096 (suppress the notice with PSC>Z) to reverse the Dummy 2553 and cycle delay 6.
    The unpostable is a Form 1120S. d. The selected tax year on the TC 090 is a fiscal year, the FYM on the unpostable return matches and there is no TC 054/055 on the account.
    1. Correspond (using 3916C or appropriate letter) with the taxpayer requesting an approved stamped/timely Form 8716/Form 1128, or a corrected return.
    2. Suspend the case for 60 days.
    3. While in suspense ESTAB 090 to verify if Part II is checked. If checked or Form 1128/Form 8716 is found attached, input TC 016 to update FYM, if necessary , input TC 054/055, as appropriate. Input TC 054 (post delay one cycle if TC 016 was input) using a Dummy Form 1128 or Form 8716, as appropriate (suppress the notice with PSC>Z). Close with URC 0 and cycle appropriately .
    The unpostable is a Form 1120S. e. Research indicates the entity has a TC05X and they are 52-53 week year filer. 1. URC 6 or 8 to the correct FYM.
    C. The taxpayer responds to the correspondence. a. The taxpayer provides a copy of their Chief Counsel letter ruling granting their Grandfathered FYM. 1. Input TC 016 to match the FYM of the TC 054 (if necessary).
    2. Input TC 054 using a Dummy Form 1128 (suppress the notice with PSC>Z), with the taxpayer's ruling letter as the source document.
    3. Cycle the TC 054 one cycle.
    4. Close with URC 0 and cycle appropriately.
    The taxpayer responds to the correspondence. b. The taxpayer provides documentation (i.e., copy of accepted Form 1128 or Form 8716, Private Letter Ruling, etc.) to accept the FYM on the unpostable tax return. 1. Change the FYM on the BMF using a TC 054/055 (Dummy Form 1128 and Form 8716, as appropriate), (suppress the notice with PSC>Z).
    2. Close with URC 0 and cycle appropriately.
    The taxpayer responds to the correspondence. c. The taxpayer responds with a statement that a short period tax return was filed under Section 1377(a)(2) and a statement is attached indicating the termination of a shareholder. 1. Close with URC 8. Request Rejects to cancel DLN and re-file.
    2. Send 3916C or appropriate letter to taxpayer informing them a full 12-month period tax return is required and to attach to the return a statement indicating the termination of a Shareholder under Section 1377(a)(2).
    D. The taxpayer sends in a correct return.   1. Overlay the invalid return with the corrected return. Attach the appropriate routing form.
    2. Close with URC 8 and request Rejects cancel the DLN and to renumber the corrected return and post to the correct FYM.
    E. No reply or the taxpayer's response is insufficient The FYM on the unpostable tax return is not acceptable. 1. Input TC 016 to change the FYM to the taxpayer's required tax year ending.
    2. Close with URC 8.
    3. Send to Rejects and request them to cancel the DLN.

    Note:

    See Exhibit 3.13.222-1 for creating a Dummy Form 2553 with TC 090; Exhibit 3.13.222-2 for creating a Dummy Form 1128 with TC 054; Exhibit 3.13.222-3 for creating a Dummy Form 1128 with TC 053; and Exhibit 3.13.222-4 for creating a Dummy Form 8716 with TC 054/055.

  4. Form 1065 partnerships, other than Common Trust Funds, generally have one or more "majority partners" . To determine the majority partner, review the box J on the Schedule K-1's attached to the Form 1065. If the ending percentage shown on the Capital line exceeds or equals 50% and all other Schedule K-1's attached are less than 50%, the partner is considered the majority partner. However, if the Schedule K-1 specifies all partners within the partnership have an equal share (i.e., 3 partners each with 331/1%), each partner is a majority partner. Alternatively, review Schedule B-1.

  5. A partner's share of capital is defined as the portion of capital the partner would receive if the partnership were liquidated at the end of the year by the distribution of undivided interests in the partnership assets and liabilities.

  6. If the Schedule K-1's are not attached or the line listing the partner's share of ending capital is incomplete, contact the partnership to determine if there is a partnership agreement, and whether the agreement states the percentages each partner is entitled, which should have appeared on the that line.

    IF AND THEN
    A. The unpostable is a Form 1065. a. A TC 054/055 has been input and the FYM matches the FYM on the unpostable. Close with URC 0.
    The unpostable is a Form 1065. b. There is no TC 054/055 or it is posted incorrectly and the partnership is comprised of a majority partner with a greater than 50% or more ownership. (Shown on the Schedule K-1 or Schedule B-1). The FYM of the majority partner must match the FYM on the return. 1. Input TC 054 using a Dummy Form 1128 (suppress the notice with PSC>Z).
    2. Close with URC 0 and cycle appropriately.
    The unpostable is a Form 1065. c. There is no Schedule K-1 attached. 1. Paper returns, ESTAB for return with" Need K-1s" in the comments/remarks of ESTAB.
    2. Electronic filed returns view K-1s via EUP.
    3. K-1s validate the FYM, input TC 054 using a Dummy Form 1128 (suppress the notice with PSC>Z).
    4. Close with URC 0 and cycle appropriately.

    Note:

    Make one attempt to ESTAB K-1s. If not received follow instructions in d. below.

    The unpostable is a Form 1065. d. K-1s do not validate FYM. 1. Correspond with the taxpayer using the appropriate letter, for a copy of a stamped, approved Form 1128/Form 8716 or Notice of Acceptance.
    2. Suspend the case for 60 days.
    The unpostable is a Form 1065. e. The partnership is terminating, but the taxpayer does not quote Section 708(b)(1)(B). Check G on form box 6. 1. Assign a new EIN.
    2. Close with URC 6 and cycle appropriately.
    The unpostable is a Form 1065. f. The partnership is terminating, and the taxpayer quotes Section 708(b)(1)(B). Check G on form box 6. 1. Do not assign a new EIN to the partnership.
    2. Input TC 016 to correct FY, if needed.
    3. Enter CCC Y and close with URC 6 and cycle appropriately.
    The unpostable is a Form 1065. g. The taxpayer quotes IR Section 754 (transfer of partnership interest). Enter CCC Y and close with URC 6.
    The unpostable is a Form 1065. h. The tax return is a FINAL tax return for the business and the return has not been coded as final. 1. Edit the tax return with a CCC "F" code.
    2. Close with URC 6 and CCC F.
    B. The taxpayer responds to the letter. a. The taxpayer provides an approved Form 8716/Form 1128, or Notice of Acceptance.
    1. Input a TC 055/054.
    2. Close with URC 0 and cycle appropriately.
    The taxpayer responds to the letter. b. The taxpayer provides an unacceptable Form 8716/Form 1128.
    1. Deny Form 8716/Form 1128 and input a TC 058/059 as applicable.
    2. Input TC 016 to change the FYM to the taxpayer's required tax year ending.
    3. Close with URC 8.
    4. Request Rejects cancel the DLN and forward to Files.

    Note:

    See IRM 3.13.222.106 and IRM 3.13.222.107 for additional instructions for Form 1128 and Form 8716.

    C. The taxpayer replies with a corrected return.   1. Overlay the invalid return with the corrected return. Attach the appropriate routing form.
    2. Close with URC 8 and request Rejects cancel the DLN and to renumber the corrected return and post to the correct FYM.
    D. No reply   1. Input TC 016 to change the FYM to the taxpayer's required tax year ending.
    2. Close with URC 8.
    3. Request Rejects cancel the DLN and forward to Files.

Unpostable Code (UPC) 307 Reason Code (RC) 6

  1. The Programming Requirements Package (PRP) for UPC 307 RC 6 states: All TC 150 for MFT 02 (exclude doc code 16) (Form 1120S) with tax period month other than 12 not matching on entity Fiscal Year Month, Form 1120 FRC is 19 for Personal Service Corporations, and TC 054/055 is posted. Bypass on corrected UPC 307 RC 6.

  2. TC 150 for MFT 02 with document code 09/10/11 and ABLM Code 400 (Form 1120 PSC only) with a tax period month other than 12 and the Form 1120 FRC does not equal 19. Bypass on corrected UPC 307RC 6.

  3. TC 150 for MFT 02 with document code 09/10/11 and ABLM Code 400 with a tax period month other than 12 and the Form 1120 FRC is other than 19.

    Note:

    When writing to a PSC where the taxpayer has a history of filing fiscal returns without a TC05X, they should amend a maximum of 3 years returns (depending on the taxpayers history). The oldest return should be a short year return and the first and second prior years should be calendar year returns. If the taxpayer responds with only a short period return for the required year that covers the period of the unpostable, accept the return as filed.

  4. See Exhibit 3.13.222-7 for an example of BRCHG Screen for TC 054/055.

  5. The following chart lists different scenarios that will help resolve UPC 307 RC 6:

    IF AND THEN
    A. Section A on the Form 1120 is checked indicating it is a personal service corporation. a. The return has Doc Code 09/10/11 and ABLM code 400. Research has indicated the entity is a PSC and there is not a TC 054 on the account. Refer to IRM 3.13.222.39(18) for lists of valid business activities for PSCs. 1. Correspond (using 3916C or appropriate letter) with the taxpayer requesting a stamped, accepted copy, or Notice of Acceptance of Form 8716/Form 1128.
    2. Suspend the case for 60 days.
    Section A on the Form 1120 is checked indicating it is a personal service corporation. b. A timely Form 8716/Form 1128 is attached to the return and no TC 054 has been processed. 1. Input TC 054.
    2. Close with URC 0 and cycle appropriately.

    Caution:

    FYM on master file must match the FYM on the TC 054, input TC 016 if needed and cycle TC 054.

    Section A on the Form 1120 is checked indicating it is a personal service corporation. c. A TC 055 is posted to the account with the correct FYM. 1. Input TC 052 to reverse TC 055.
    2. Input Dummy TC 054 with PDC of 1.
    3. Close with URC 0 and cycle appropriately.
    B. Section A on the Form 1120 is checked indicating it is a personal service corporation. a. The return has Doc Code 09/10/11 and ABLM code 400. Research indicates they are not a PSC. IRM 3.13.222.39(18) defines a PSC and lists the valid business activities. 1. Close with URC 8.
    2. Edit return by circling out ABLM code. Print entire return if necessary.
    3. Request Rejects to cancel the DLN, renumber as a Form 1120 and delete the ABLM code.
    C. Section A on Form 1120 does not indicate it is a personal service corporation. The return has Doc Code 09/10/11 and ABLM code 400. 1. Close with URC 8.
    2. Edit return by circling out ABLM code.
    3. Request Rejects to cancel the DLN, renumber as a Form 1120 and delete the ABLM code.
    D. The taxpayer responds. a. The taxpayer states that he/she filed a Form 8716/Form 1128 and attached it to a specific return. 1. Request the return from Files.
    2. If the Form 8716/Form 1128 is found, input TC 054.
    3. Close with URC 0 and cycle appropriately.
    4. If Form 8716/Form 1128 is not found, then correspond with the taxpayer using 3916C or appropriate letter, informing them that their return is not valid.
    5. Close with URC 8, requesting Rejects to cancel the DLN and forward to Files.

    Note:

    If payment(s) are on module make notation to Rejects to refund payment(s). Refer to IRM 3.13.222.22.

    The taxpayer responds. b. The taxpayer provides a copy of an approved Form 8716/Form 1128 or Notice of Acceptance. 1. Input a TC 054.
    2. Close with URC 0 and cycle appropriately.
    The taxpayer responds. c. The taxpayer responds with a timely filed Form 8716. 1. Input TC 054.
    2. Close with URC 0 and cycle appropriately.
    The taxpayer responds. d. The taxpayer responds with a Form 8716, timely filed under 301.9100-2. 1. Accept it and input TC 054.
    2. Close with URC 0 and cycle appropriately.
    The taxpayer responds. e. The taxpayer responds stating they are not a PSC. 1. Close with URC 8.
    2. Edit return by circling out ABLM code.
    3. Requests Rejects to cancel the DLN, renumber as a Form 1120 and delete the ABLM code.
    The taxpayer responds. f. Taxpayer responds with Form 8716/Form 1128 that cannot be accepted. 1. Deny election/application as needed.
    2. Close with URC 8 and request Rejects to cancel the DLN and forward to Files.
    E. No reply   1. Input TC 016 to change the FYM to the taxpayer's required tax year ending.
    2. Close with URC 8 and request Rejects to cancel the DLN and forward to Files.

    Note:

    If payment(s) are on module make notation to Rejects to refund payment(s). Refer to IRM 3.13.222.22 .

    Note:

    See IRM 3.13.222.106 and IRM 3.13.222.107 for additional processing instructions for Form 1128 and Form 8716.

Unpostable Code (UPC) 307 Reason Code (RC) 7

  1. The Programming Requirements Package (PRP) for UPC 307 RC 7 states:
    TC 150 with Condition Code Y or TC 620 with Condition Code W not matching on entity Fiscal Year Month with input FYM not equal to 12 attempting to post with TC 054/055 posted. Bypass on corrected UPC 307.7.

  2. The following chart lists scenarios that will help resolve UPC 307 RC 7.

    IF AND THEN
    A. The unpostable is a TC 620 for Form 7004 (Form 1065, Form 1120 or Form 1120S). The Change in Account Period box is marked. Close with URC 6 and post to the correct tax period.
    B. The unpostable is a TC 620 for Form 7004 (Form 1065, Form 1120 or Form 1120S). The extension is for the Final Form 1065, Form 1120 or Form 1120S. 1. Input TC 016 to change the FYM.
    2. URC 0 and cycle extension as appropriate.
    3. Input TC 016 to change the FYM back using a posting delay code of 6.
    C. The unpostable is a Form 1065. a. The FY on the return doesn't match the FY on the BMF.
    1. ESTAB for TC 054/055.
    2. Verify FY.
    3. If FY on Form 1128/Form 8716 matches return, input TC 052, re-input TC 054/055 and cycle appropriately.
    4. Close with URC 0 and cycle accordingly.
    The unpostable is a Form 1065. b. TC 054/055 doesn't match return. 1. Correspond (using the appropriate letter) with the taxpayer.
    2. Suspend the case for 60 days.
    D. The taxpayer responds. a. The taxpayer states that the Form 8716/Form 1128 was filed and attached it to a specific return. 1. Request the return from Files.
    2. If the Form 8716/Form 1128 is found, process according to procedures described in IRM 3.13.222.107, Form 8716 and IRM 3.13.222.106, Form 1128.
    3. If Form 8716/Form 1128 is not found, then correspond with the taxpayer using the appropriate letter, informing them that their return is not valid.
    4. Close with URC 8, requesting Rejects to cancel the DLN and forward to Files.
    The taxpayer responds. b. The taxpayer provides a copy of an approved Form 8716/Form 1128 or Notice of Acceptance. 1. Input a TC 054/055.
    2. Close with URC 0 and cycle appropriately.
    The taxpayer responds. c. The taxpayer responds with a timely filed Form 8716. 1. Process per IRM 3.13.222.107, Form 8716.
    2. Close with URC 0 and cycle appropriately.
    The taxpayer responds. d. The taxpayer responds with a Form 8716, timely filed under 301.9100-2. 1. Accept it and input TC 055/054.
    2. Close with URC 0 and cycle appropriately.
    The taxpayer responds. e. The taxpayer responds with a timely filed Form 1128. 1. Process per IRM 3.13.222.106Form 1128.
    2. Close with a URC 0 and cycle appropriately.
    E. No Reply   1. Input TC 016 to change the FYM to the taxpayer's required tax year ending.
    2. Close with URC 8.
    3. Send to Rejects and request Rejects to cancel the DLN.
    F. The unpostable is a Form 1120S with a FYM other than 12. a. There is a CCC "Y" indicated on the return and on UPRES and a valid termination or revocation attached. 1. Input TC 016 to update the FYM to match the return.
    2. Input TC 096 or TC 091 with a BK 95 and the appropriate effective date.
    3. Input TC 052 (PDC 1) to reverse TC 055.
    4. Close case with URC 0 and cycle appropriately.
    The unpostable is a Form 1120S with a FYM other than 12. b. There is a CCC "Y" indicated on the return, but NOT indicated on UPRES and a valid termination or revocation. 1. Input TC 016 to update the FYM to match the return.
    2. Input TC 096 or TC 091 with a BK 95 and the appropriate effective date.
    3. Input TC 052 (PDC 1) to reverse TC 055.
    4. URC 8 with request to Rejects to input CCC "Y" for final 1120S.

    Note:

    See IRM 3.13.222.106 and IRM 3.13.222.107 for additional processing instructions for Form 1128 and Form 8716.

Unpostable Code (UPC) 307 Reason Code (RC) 8

  1. The Programming Requirements Package (PRP) for UPC 307 RC 8 states: The input fiscal month of TC 150 for MFT 02, Doc Code 07 (Form 1120 FSC) did not match entity FYM, TC 060 is posted but its effective date is greater than the tax period on input.

    IF AND THEN
    A. The unpostable is a Form 1120-FSC. a. The effective dates and the unpostable document are not the same 1. Change the date for the unpostable to agree with the Form.
    2. Close with URC 8 and transship to Ogden.

Unpostable Code (UPC) 308 - General Instructions

  1. Verify that the employment code is correct, see IRM 3.13.12.6.28 for assigning employment codes.

    Note:

    If EO questions arise while processing documents, please contact Ogden at 801-620-7093.

    Employment Code Type of Employer
    C Church or church controlled organization filing Form 8274.
    F Federal Employer
    G State of local government agency
    I Indian Tribal government
    M Maritime Industry
    S Foreign Subsidiary
    T State or local government agency covered under Section 218 agreement
    W Section 501(c)(3) of the IRC Non-profit organization
  2. To verify Employment Code "G" or "T" contact the Social Security or State Retirement Officer.

    • Do not change Employment Code T to G.

    • Employment Code T does not have a status of sub-section.

  3. To verify Employment Code "W" , use CC INOLE or ENMOD and determine from the EO section if the "W" is correct.

    1. The "W" is correct if the EO subsection is 03 and the EO Status is 01-02, 19 or 25.

    2. The "W" is correct if the EO subsection is 50, 60 or 70 and the EO Status is 01-02.

    3. The "W" is correct if the EO Status is 7, 10 or 11.

    4. The "W" is correct if the taxpayer is a church without an EO section. The term integrated auxiliary or qualified church controlled organization of a church refers to a class of organizations that are related to a church or convention or association of churches, but are not such organizations themselves. In general, the IRS will treat an organization that meets the following three requirements as an integrated auxiliary of a church. The organization must: * be described both as an IRC Section 501(c)(3) charitable organization and as a public charity under IRC Sections 509(a)(1), (2), or (3), * be affiliated with a church or convention or association of churches, and * receive financial support primarily from internal church sources as opposed to public or governmental sources. If this organization is a qualified church controlled organization then they are not required to file a Form 940.

    5. The "W" is not correct if the EO section is present and the EO subsection is not 03, 50, 60 or 70 and the EO Status is not 01-02, 19 or 25. If the EO Status is 40, then treat as if no EO section is present.

    6. If no EO section is present or the EO Status is 40 on an account that is not a church, research EDS to determine if an application for exemption is pending. If the application is pending, make sure an EO section is present and the EO Status is 40.

    7. If no EO section is present or the EO status is 40, contact the taxpayer via telephone and request a copy of the exemption letter to determine what type of organization if unable to determine type of entity.

      Note:

      Employment Code "W" should not be applied to Puerto Rico or Virgin Island employers.

  4. To verify Employment Code "C," a TC 070 must be posted. A REV EMP C transcript will generate if the taxpayer files a Form 941 and pays FICA taxes.

    1. Follow procedures in IRM 3.13.12 to verify the EMP C. Do not input a TC 071 to reverse the TC 070 until you have received the transcript and made a determination. If you are unsure, see your manager or lead before inputting the TC 071.

    2. If a TC 071 has been input as a result of an Entity employee error, reverse the TC 071 with a TC 073, cycle the transaction, and re-input the TC 070. NEVER reverse the input of a TC 071 due to taxpayer error.

  5. To verify Employment Code "F" , contact the taxpayer to determine if the "F" is correct.

  6. BMF Entity Unpostables is not able to add or change ECs F, G, or T. If an entity needs action on one of these ECs, submit to Federal State Local Government (FSLG) by:
    e-mailing to tege.fsl.cpm@irs.gov , ensure the e-mail is encrypted, or sending via EEFax to (855) 243-4014.

    Note:

    Do not prepare Form 3210.

Unpostable Code (UPC) 308 Reason Code (RC) 4

  1. The Programming Requirements Package (PRP) for UPC 308 RC 4 states:
    Any return (TC 150 - non-document code 51) input to Form 940 tax module (MFT 10) and the entity Employment Code equals "G" . Exception: TC 150 for MFT 10 posting to a tax module with no credit balance and return has 0 Total Tax Settlement.

  2. A Form 940 attempts to post and the Employment Code is "G" .

    Note:

    Verify that the Employment Code is correct. See IRM 3.13.12.6.28 for criteria.

  3. The following chart list different scenarios that will help resolve UPC 308 RC 4:

    IF AND THEN
    The unpostable is a Form 940. a. The Employment Code "G" is correct and no payment is unposted. 1. Close with URC 8.
    2. Request Rejects using the appropriate routing form to cancel the DLN and re-file.
    3. Determine if a manual refund is necessary. Prepare Form 3244, Payment Posting Voucher or RTR (Remittance Transaction Research System) print, and request Rejects, using the appropriate routing form, to refund the payment. Refer to IRM 3.13.222.22 .
    4. Use the 858C Letter to notify the taxpayer that they are not liable for Form 940 (and payment will be refunded if necessary). Remove the 940 FR if it is present. Figure 3.13.222-8
    The unpostable is a Form 940. b. The Employment Code "G" is correct and a TC 610 is unposted on UPTIN. 1. Close the unpostable 940(10) with URC 8.
    2. Request Rejects using the appropriate routing form to cancel the DLN and re-file.
    3. Use the 858C Letter to notify the taxpayer that they are not liable for Form 940 and the payment will be refunded. Remove the 940 FR if it present.
    4. Close the UPC TC 610 URC 8.
    5. Prepare a Form 3244, Payment Posting Voucher or RTR print and route to Rejects for refund.
    The unpostable is a Form 940. c. The Employment Code "G" is not correct. 1. Refer to IRM 3.13.222.54(6) for contact with FSLG to have employment code removed.
    2. Close with URC 0 and cycle appropriately.

    Figure 3.13.222-8

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    Please click here for the text description of the image.

Unpostable Code (UPC) 308 Reason Code (RC) 5

  1. The Programming Requirements Package (PRP) for UPC 308 RC 5 states:
    Any transaction except TC 370 (Doc Code 51) and TC 650 (Doc Code 97, 19 (EFTP) input to establish a MFT 10 tax module (see 5.02 (6) (f)) and the entity Employment Code (EC) is "T, W, F, G, or C" . Bypass this check on a corrected UPC 308 RC 5 with EC "W" . Exception: TC 150 for MFT 10 posting to a tax module with no credit balance and return has 0 Total Tax Settlement.

    Note:

    The following transactions will NOT POST if the MFT is 10:

    1. TC 150, return (except EC "G" )

    2. TC 370, account transfer in

    3. TC 474, return pending

    4. TC 520, closing Code 85–88, 89 (Bankruptcy) and closing Code 81 (Bankruptcy)

    5. TC 59X, taxpayer reply transaction

    6. TC 610 through 670, payments

    7. TC 611, reversal of TC 610

    8. TC 700, 710, 716 prior tax period, credit transfer

    9. TC 840, manual refund

    10. TC 91X, Intelligence Active

    11. TC 930, Push Code transaction

    12. TC 940/942, Strike Force

    13. TC 960, Central Authorization

    14. TC 971, Miscellaneous Transaction

  2. The following chart lists different scenarios that will help resolve UPC 308 RC 5:

    IF AND THEN
    A. TC 071 has been input. It is an Entity employee error. 1. Reverse the TC 071 with a TC 073.
    2. Re-input the TC 070 and cycle appropriately.
    3. NEVER reverse the input of the TC 071 due to a taxpayer error.
    B. The unpostable document is a payment. a. Payment is for Magnetic Tape Deposit. 1. Correspond with the taxpayer using the appropriate letter requesting where to apply the deposit.
    2. Apply the money according to the taxpayer's reply.
    The unpostable document is a payment. b. The payment is not to be applied to another tax period or is to be refunded. 1. Transfer the credit per local campus procedures.
    2. Include a copy of the taxpayers response and any research material.
    C. TC 700 or TC 710, credit transfer   Contact the preparer for corrective action.
    D. TC 840, Manual Refund The module is not a Dummy on IDRS. Contact Accounting for corrective action.
    E. TC 611   Contact the preparer for corrective action.
    F. TC 520 Closing code 85-88, 89 (bankruptcy) or Closing 81 (bankruptcy) Contact Collections for corrective action.
    G. TC 370 a. The account transfer must not post because it is a Doc Code 51 or 52 and the employment code is correct. 1. Contact the initiator and inform them that the employment code is correct, the taxpayer does not owe this tax and an abatement will be required.
    2. Suspend the case until the initiator responds.
    3. Close with URC 0.
    4. Route to AM/Adjustments using Form 3465, informing them to review the case for a possible adjustment and abatement of taxes.
    TC 370 b. Doc Code 51 was prepared because of an account maintenance transcript. 1. The money on the tax module can be refunded.
    2. Close appropriately.
    3. Input a TC 591 for the tax period on the BMF.
    H. TC 474, Return Pending   Close with URC D.
    I. TC 59X a. The 940 FR is on IDRS. 1. Delete the FR using BNCHG.
    2. Close with URC D.
    b. The 940 FR is not on IDRS. Close with URC D.
    J. TC 91X, 930, 940, 942, 960 or 971.   1. Close with URC 2 and route to originator.
    2. If unable to determine the originator, close with URC D.
    K. The unpostable is a credit portion of a Doc Code 34, credit transfer.   1. Close with URC 6 to the account where the debit posted.
    2. Route to preparer.
    L. The unpostable return is a Form 940. a. The taxpayer is tax exempt and not liable for FUTA. 1. Close with URC 8.
    2. Request Rejects, using the appropriate routing form, to cancel the DLN and forward to Files.
    3. Determine if a manual refund is necessary. Prepare Form 3244, Payment Posting Voucher or RTR (Remittance Transaction Research System) print, and request Rejects, using the appropriate routing form, to refund the payment. Refer to IRM 3.13.222.22 .
    4. Remove 940 filing requirement, if present.
    5. Using the 858C letter to notify the taxpayer they are not liable for Form 940 (and payment will be refunded if necessary). If the 858C letter has been sent within the last 30–45 days, no need to send another letter.
    The unpostable return is a Form 940. b. The taxpayer is tax exempt and not liable for FUTA, and a TC 610 is unposted on UPTIN. 1. Close the unpostable Form 940 with URC 8.
    2. Request Rejects, using the appropriate routing form, to cancel the DLN and forward to Files.
    3. Close the unpostable TC 610 with URC 8.
    4. Prepare Form 3244, Payment Posting Voucher, or RTR (Remittance Transaction Research System) print, and request Rejects, using the appropriate routing form, to refund the payment.
    5. Remove 940 filing requirement, if present.
    6. Using the 858C letter to notify the taxpayer they are not liable for the Form 940 and the payment will be refunded.
    M. The unpostable is a payment (i.e., TC 610, TC 670, etc.) The taxpayer is tax exempt and not liable for FUTA. 1. Close with URC 8.
    2. Prepare Form 3244, Payment Posting Voucher, or RTR (Remittance Transaction Research System) print, and request Rejects, using the appropriate routing form, to refund the payment.
    3. Using the 858C letter to notify the taxpayer that they are not liable for Form 940 and the payment will be refunded.
    N. The unpostable return is a Form 940 It cannot be determined if the entity is a qualified church controlled organization, Send 858C and suspend case for 60 days.
    O. Reply a. Entity does qualify as a church controlled organization and is not liable for FUTA, 1. Close with URC 8.
    2. Request Rejects, using the appropriate routing form, to cancel DLN and forward to files.
    3. Remove 940 filing requirement, if present.
    Reply b. Entity does qualify as a church controlled organization and is not liable for FUTA and a TC 610 is unposted on UPTIN, 1. Close the unpostable Form 940 with URC 8.
    2. Request Rejects, using the appropriate routing form, to cancel DLN and forward to files.
    3. Close the unpostable TC 610 with URC 8.
    4. Prepare Form 3244, Payment Posting Voucher, or RTR (Remittance Transaction Research System) print, and request Rejects, using the appropriate routing form, to refund the payment.
    5. Remove 940 filing requirement, if present.
    Reply c. Entity does not qualify as a church controlled organization and is liable for FUTA, 1. Input TC 016 and remove Employment Code of W.
    2. URC 0 and cycle appropriately.
    P. No reply   1. Input TC 016 and remove Employment Code of W.
    2. URC 0 and cycle appropriately.
    Q. The unpostable is a payment (i.e., TC 610, TC 670, etc.) It cannot be determined if the entity is a qualified church controlled organization, Send 858C letter and suspend case for 60 days.
    R. Reply a. Entity does qualify as a church controlled organization and is not liable for FUTA, 1. Close with URC 8.
    2. Prepare Form 3244, Payment Posting Voucher or RTR (Remittance Transaction Research System) print, and request Rejects, using the appropriate routing form, to refund the payment.
    Reply b. Entity does not qualify as a church controlled organization and is liable for FUTA, 1. Input TC 016 and remove Employment Code of W.
    2. URC 0 and cycle appropriately.
    S. No Reply   1. Input TC 016 and remove Employment Code of W.
    2. URC 0 and cycle appropriately.

    Note:

    The campuses have the option of using Form 3244, or the RTR print, when the taxpayer is not liable for Form 940, and the payment will be refunded to the taxpayer. The campuses must be consistent in whichever choice is made, (i.e., if one campus chooses to use the RTR print, they must be consistent in using the RTR print, if another campus chooses to use the Form 3244, they must be consistent in using the Form 3244).

    Figure 3.13.222-9

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    Please click here for the text description of the image.

Unpostable Code (UPC) 308 Reason Code (RC) 8

  1. The Programming Requirements Package (PRP) for UPC 308 RC 8 states:
    Any MFT 01 TC 150 with Computer Condition Code T if the entity Employment Code is "F"

  2. The Form 941 with Computer Condition Code T attempts to post, the Employment Code is "F" and the 941 FRC is 00/01/02/03/04/51/06/07/11/12/13.

  3. Form 941 filers who have employees on a seasonal or intermittent basis can file their Form 941 on a seasonal/intermittent basis. However, at least one return must be filed every year, even if no wages or distributions were made during that year.

  4. Condition Code "T" identifies these filers.

  5. Seasonal/intermittent taxpayers who fail to check the box on the Form 941 will be changed back to normal Form 941 filers.

  6. Federal agencies cannot file Form 941 on a seasonal/intermittent basis.

  7. The following chart lists different scenarios that will help resolve UPC 308 RC 8:

    IF AND THEN
    The unpostable is a Form 941. a. The employment code is correct. 1. Input a TC 016 to change the filing requirement to 02.
    2. Close with URC 8.
    3. Request Rejects using the routing form to remove the Computer Condition Code T and reprocess the form.
    The unpostable is a Form 941. b. The employment code is correct and the filing requirement code is 02. 1. Close with URC 8.
    2. Request Rejects using the routing form to remove the Computer Condition Code T and reprocess the form.
    The unpostable is a Form 941. c. The employment code is incorrect. 1. Refer to IRM 3.13.222.54(6) for contact with FSLG to have employment code removed.
    2. Close with URC 0 and cycle appropriately.

Unpostable Code (UPC) 308 Reason Code (RC) 9

  1. The Programming Requirements Package (PRP) for UPC 308 RC 9 states:
    Any transaction input to establish an MFT 10 tax module except TC 650 (Doc Code 97/19 (EFTP)) if the Entity Employment Code is blank, the entity EO Status is 01 through 19, and the Entity EO subsection is 03/ 50/60/ 70. Exception: TC 150 for MFT 10 posting to a tax module with no credit balance and return has zero Total Tax Settlement.

  2. Any transaction attempting to establish a MFT 10 tax module and the EO subsection is 03, 50, 60, or 70 and the EO status is less than 20 with no employment code.

    Note:

    If the Employment Code is not updated, input a TC 016 updating the Employment Code to "W" .

  3. The following chart lists different scenarios that will help resolve UPC 308 RC 9:

    IF AND THEN
    A. The unpostable is a Form 940. a. Research indicates an EO subsection of 03, 50, 60 or 70. 1. Update the Employment Code to "W" using CC BNCHG. Remove the 940 FR, if present.
    2. Close with URC 8 and request Rejects, using the appropriate routing form to cancel the DLN and re-file, taxpayer not liable. .
    3. Correspond with the taxpayer, using the 858C to notify the taxpayer they are not liable for the Form 940.
    The unpostable is a Form 940. b. Research indicates prepaid credits. Correspond using 858C letter with the taxpayer informing them that the payments will be applied to any outstanding balance before a refund will be released.
    The unpostable is a Form 940. c. Research indicates no outstanding balance. Correspond using 858C letter with the taxpayer informing them they must file a Form 843, Claim for Refund and Request for Abatement to receive the refund.
    B. The unpostable is a payment (i.e., TC 610, TC 670, etc.) a. Research indicates a TC 150 is also unposted. 1. Reassign the TC 150 to yourself to coordinate the resolution of both unpostables.
    2. Correspond with the taxpayer, using the 858C that they are not liable for the Form 940 and the payment will be refunded.
    3. Close with URC 8.
    4. Request Rejects using the appropriate routing form to cancel the DLNs, and refund payment.
    5. Remove the 940 FR, if present.
    The unpostable is a payment (i.e., TC 610, TC 670, etc.) b. No TC 150 is unposted. 1. DO NOT WAIT for the TC 150.
    2. Close the unpostable with URC 8.
    3. Route to Rejects using the appropriate routing form and Form 3244 or RTR print to Unidentified to refund payment.
    C. The unpostable is a TC 59X   Close with URC D.

    Note:

    If Form 940 is received and no payment has posted to the module, correspond with the taxpayer using the 858C letter, inform the taxpayer they are not liable for Form 940. Also, if 858C letter has been sent within the last 30-45 days, no need to send another letter.

Unpostable Code (UPC) 310 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 310 RC 1 states:

  2. A TC 090 input, or MFT 02 TC 150 (Doc Code 16) return carries a significant S-Corp effective date, and Form 1120 FR code is 03 or 04.

    Note:

    Life Insurance or Property and Casualty appearing in the name line may indicate an insurance company subject to tax under Subchapter L.

  3. The following chart lists different scenarios that will help resolve UPC 310 RC 1:

    IF the UNP is a Form 2553 (TC 090) or Form 1120S and AND THEN
    A. The 1120 filing requirement on our records shows 1120-03 or 1120-04.
    The name of the entity indicates the filing requirement is incorrect.
    1. Input a TC 016 to change the filing requirement to an 1120-01 using BNCHG.
    2. Close with URC 0 and cycle appropriately.
    B. The 1120 filing requirement on our records shows 1120-03 or 1120-04.
    The name on the Form 2553 indicates the filing requirement is correct.

    1. Input a TC 094, using the Form 2553 as the source document (suppress the notice with PSC>Z). See Exhibit 3.13.222-8 for sample of BNCHG screen.
    2. Send the appropriate letter to the taxpayer informing them that they are not eligible to elect S status because they are an insurance company subject to tax under Subchapter L.
    • Close TC 090 input with URC D.

    • Close MFT 02 input with URC 8.

Unpostable Code (UPC) 310 Reason Code (RC) 2

  1. The Programming Requirements Package (PRP) for UPC 310 RC 2 states:

  2. MFT 02 TC 150 (Document Code 16) input and Form 1120 FRC is 00/01/02 and,

    1. The latest TC 091/096 is posted with an effective date (year/month) earlier than the TC 150 period ending - unless a TC 090 is posted subsequent to the latest TC 091/096.

    2. The TC 150 carries a significant S-Corp effective date that is earlier than the effective date of a posted TC 091/096 unless a TC 090 is posted subsequent to the latest TC 091/096.

    Note:

    Bypass UPC 310 RC 2 through 7 if the input return contains Computer Condition Code "Q" (TETR-only return) and the tax year is 2006/2007.

    Note:

    See Exhibit 3.13.222-1 for instructions for creating a dummy Form 2553.

    IF AND THEN
    A. The UNP is a Form 1120S. a. The account has a TC091/TC096 for a tax period prior to the unpostable return. 1. Correspond (using 3852C, 3853C or other appropriate letter) with the taxpayer to verify the revocation/termination date.
    2. Suspend the case for 60 days.
    The UNP is a Form 1120S. b. The effective date of the TC091/TC096 is after the return tax period and 1120-02 has changed to 1120-01 (BK 95 was not done at time of TC091/TC096 input). 1. Prepare a dummy Form 2553 and re-input the TC 090 for the original date that the taxpayer requested (suppress notice with PSC>Z).
    2. This transaction will create an UPC 339 after two cycles. Monitor and close the UPC 339 with URC 0.
    3. Close the Form 1120S unpostable with URC 0 and cycle appropriately.
    4. Re-input the TC091/TC096 (suppress notice with PSC>Z), and cycle 6 to allow the final Form 1120S to post.
    B. Taxpayer responds to any of the above scenarios. a. Provides documentation that the TC091/TC096 date is incorrect, and provides corrected date, and the 1120 FR has changed to 01. 1. Prepare a dummy Form 2553 (suppress notice with PSC>Z). Re-input the TC 090 for the effective date of the TC 090.
    2. This transaction will create a UPC 339 after two cycles. Monitor and close the UPC 339 with URC 0.
    3. Close the Form 1120S unpostable with URC 0 and cycle appropriately.
    4. In the lower left hand corner of the return, enter the Correspondence Received Date (CRD) in YYYYMMDD format, see IRM 3.13.222.40, Correspondence Received Date (CRD).
    5. Re-input the TC091/TC096 (suppress notice with PSC >Z), and cycle 6 to allow the final Form 1120S to post.
    Taxpayer responds to any of the above scenarios. b. Indicates that the termination is invalid. 1. ESTAB for the TC 090.
    2. If the termination is not found, then prepare a dummy Form 2553 and re-input the TC 090 for the original date that the taxpayer requested (suppress notice with PSC>Z).
    3. This transaction will create a UPC 339 after two cycles. Monitor and close the UPC 339 with URC 0.
    4. Close the Form 1120S unpostable with URC 0 and cycle appropriately.
    5. If the termination statement is found, correspond with the taxpayer, using the appropriate letter, informing them of our actions.
    6. Convert the Form 1120S to a Form 1120. Refer to IRM 3.13.222.39.2, for additional instructions.
    7. Close with URC 8, and request Rejects, using the appropriate routing form to renumber the return to a Form 1120.
    Taxpayer responds to any of the above scenarios. c. Indicates that the revocation date is invalid. 1. ESTAB for the TC 090.
    2. If the revocation is not found, then prepare a dummy Form 2553 and re-input the TC 090 for the original date that the taxpayer requested (suppress the notice with PSC>Z).
    3. This transaction will create a UPC 339 after two cycles. Monitor and close the UPC 339 with URC 0.
    4. Close the Form 1120S unpostable with URC 0 and cycle appropriately.
    5. If the revocation statement is found, correspond with the taxpayer, using the appropriate letter, informing them of our actions.
    6. Convert the Form 1120S to Form 1120. Refer to IRM 3.13.222.39.2, for additional instructions.
    7. Close with URC 8, and request Rejects, using the appropriate routing form, to renumber the return to a Form 1120.
    Taxpayer responds to any of the above scenarios. d. Taxpayer provides Form 1120. 1. Overlay the Form 1120S with the Form 1120.
    2. Close with URC 8
    3. Requests Rejects, using the appropriate routing form, to renumber return to the Form 1120.
    C. No Reply   1. Convert the Form 1120S to Form 1120. Refer to IRM 3.13.222.39.2, for additional instructions.
    2. Close with URC 8 and request Rejects to cancel DLN and renumber to Form 1120.

Unpostable Code (UPC) 310 Reason Code (RC) 3

  1. The Programming Requirements Package (PRP) for UPC 310 RC 3 states:
    MFT 02 TC 150 (Document Code other than 16) input, Form 1120 FRC is 00/01/02 and

    1. An unreversed TC 090 is posted with an effective date (year/month) earlier than the input return period ending, or

    2. The TC 150 carries a significant S-Corp effective date.

    Note:

    Check the return for a statement of revocation or termination. Check Schedule K (or Schedule G for 2009 and after) for corporations or foreign shareholders and check Schedule L for two classes of stock:
    Schedule K (Form 1120): Line 4a - Box is marked yes then look through the return for a Schedule G. Line 5a (i) Name of corporation – Review this section for automatic termination of S election. EIN and Country of incorporation - Review this section for SSNs that begin with “9” or Foreign Country.
    Schedule G (Form 1120): Part I (Type of Entity) - Check for ineligible entities. Automatic termination of S election: For Profit Corp, Partnerships, Multi Member LLC, Foreign Trust or Indian Tribe. Part I (Country of Organization) - Check for Foreign County. Part II check for Non-Resident Alien. Refer to IRM 3.13.222.108.2.
    Schedule L (Form 1120): Lines 22a and 22b – Automatic termination of S election when two classes of stock are present.

    Note:

    Bypass UPC 310 RC 2 through 7 if the input return contains Computer Condition Code "Q" (TETR-only return) and the tax year is 2006/2007.

    Note:

    For timeliness of a revocation request refer to IRM 3.13.222.108.15. TP responds and claims they never signed a 2553 or an unauthorized party signed it. Refer to IRM 3.13.222.108.14 (8) and (9).

    IF the UNP is a Form 1120, and AND THEN
    A. The DLN is incorrect. There is a valid TC 090 on the account. 1. Close with URC 8.
    2. Request Rejects to renumber the return to a Form 1120S using the appropriate routing form.
    B. The tax period was transcribed incorrectly as indicated on Form 4251.   1. Close with URC 6 to correct the tax period.
    2. If not compatible, close the unpostable with URC 8.
    3. Request Rejects to input the return to the correct tax period using the appropriate routing form.
    C. The unpostable is the Last/Final 1120, and the TC 090 has already posted and changed the 1120-01 to 1120-02. The tax period on the return is earlier than the effective date of the TC 090. 1. Input a TC 016 using CC BNCHG to change the 1120-02 to 1120-00.
    2. Close with URC 0 and cycle appropriately.
    D. The taxpayer indicates a Form 1120S was not available at the time the return was filed. There is a valid TC 090 on the account. 1. Close with URC 8.
    2. Convert the Form 1120 to Form 1120S. Refer to IRM 3.13.222.39.2, for additional instructions.
    3. Verify on the form if there is an amount in the refund or tax due area, if so, Request Rejects enter the CRD, IRM 3.13.222.40, Correspondence Received Date (CRD).
    4. Correspond (using the appropriate letter) with the taxpayer informing them of our action.
    5. Using the appropriate Routing Form, Request Rejects renumber the return to a Form 1120S.
    E. The taxpayer indicates the corporation is defunct or liquidated.   1. Correspond (using the 3853C or appropriate letter) with the taxpayer informing them of the effective date of their TC 090 and why a Form 1120 is incorrect.
    2. Suspend the case for 60 days.
    F. The taxpayer attaches a copy of a timely filed revocation letter.   1. Input a TC 091 (BK 95 if applicable).
    2. Associate a copy of the letter with the DLN of the TC 090.
    3. Close with URC 0 and cycle appropriately.
    G. The taxpayer attaches a copy of a revocation letter with no indication that the request was filed timely.   1. Input TC 091 per instructions in IRM 3.13.222.108.15, Revocation of a S Election.
    2. Correspond (using the 3853C or appropriate letter) with the taxpayer informing them the TC 091 date was changed because the revocation request was not received timely. Request a Form 1120S.
    3. Suspend the case for 60 days.
    H. The taxpayer attaches a copy of a termination letter or there is a terminating event. See IRM 3.13.222.61(1)b above for list of terminating events.   1. Input a TC 096 (BK 95 if applicable), using CC BNCHG with the effective date the taxpayer indicates. If the TC 096 effective date is earlier than the beginning of the tax period return being processed, check for prior year returns that could have been converted due to a "no response". If a prior year return is identified, send Form 3465 to AM/Adjustments to have return reprocessed to Form 1120.
    2. Associate a copy of the letter with the DLN of the TC 090.
    3. Close with URC 0 and cycle appropriately.
    I. A TC 091/096 is input with a later date than the tax period on the return or in the middle of the tax period.   1. Correspond (using the appropriate letter) with the taxpayer informing them of the effective date of their TC 091/096 and why a Form 1120 is incorrect. Request Form 1120S.
    2. Suspend the case for 60 days.
    J. The TC 090 effective date is earlier than the tax period ending on the return.   1. Correspond (using the appropriate letter) with the taxpayer informing them of the effective date of TC 090.
    2. Suspend the case for 60 days.
    K. IDRS shows a TC 090 was input after the original 1120S was converted. The effective date agrees with the unpostable as originally filed. 1. Convert the Form 1120 to a Form 1120S and request rejects renumber the return to a Form 1120S using the appropriate routing form.
    2. Underline the business activity code, annotate audit code 4 to the left of line 12 and line through it and edit Computer Condition Code 3 in the center of Lines 1 and 2.
    3. Input TC 971 AC 377 to identify the conversion of Form 1120 back to the original Form 1120S.
    4. Close with a URC 8.
    L. The taxpayer responds to any of the above scenarios. a. The taxpayer provides documentation that their S election was terminated and provides the termination date. 1. Re-input TC 090 (suppress notice with PSC>Z), (if applicable). Input a TC 096 with the valid effective date and cycle appropriately.
    2. Associate a copy of the documentation with the DLN of the TC 090.
    3. Close with URC 0, and cycle appropriately.
    The taxpayer responds to any of the above scenarios. b. The taxpayer provides documentation that their S election was revoked timely and provide the revocation date. 1. Input a TC 091 using CC BNCHG with the effective date the taxpayer indicates.
    2. Associate a copy of the documentation with the DLN of the TC 090.
    3. Close with URC 0 and cycle appropriately.
    The taxpayer responds to any of the above scenarios. c. The taxpayer provides documentation that their S election was revoked. There is not proof the request was filed timely for the requested date, but it is timely for the next tax year. 1. Input TC 091. See Exhibit 3.13.222-9 for an example of TC 091 on BNCHG screen.
    2. Associate a copy of the documentation with the DLN of the TC 090.
    3. Correspond with the taxpayer using the appropriate letter, informing them of the effective date of their TC 091, that their revocation request was not received timely, the date that it was accepted, and why a Form 1120 is incorrect.
    4. Convert the Form 1120 to Form 1120S. Refer to IRM 3.13.222.39.2, for additional instructions.
    5. Close with URC 8.
    6. Request Rejects renumber the return to a Form 1120S using the appropriate routing form.
    The taxpayer responds to any of the above scenarios. d. The revocation provided by the taxpayer is not timely for the current or the next tax year. 1. Deny the request and return to the taxpayer with an explanation of denial using a 326C or other appropriate letter.
    2. Convert the Form 1120 to Form 1120S. Refer to IRM 3.13.222.39.2, for additional instructions.
    3. Close with URC 8.
    4. Request Rejects to renumber the return to a Form 1120S using the appropriate routing form and enter the CRD on Form 1120S.
    M. No Reply   1. Convert the Form 1120 to Form 1120S. Refer to IRM 3.13.222.39.2, for additional instructions.
    2. Close with URC 8 and request Rejects to cancel DLN and renumber to Form 1120S.

    Caution:

    The unpostable has an FY issue cancel DLN per UPC 307 procedures.

Unpostable Code (UPC) 310 Reason Code (RC) 4

  1. The Programming Requirements Package (PRP) for UPC 310 RC 4 states:
    MFT 02 TC 150 (Document Code 16) input, Form 1120 FRC is 00/01 and:

    1. No unreversed TC 090 is posted, unless a TC 091 is posted with an effective date later than the TC 150 period ending.

    2. TC 150 carries S-Corp effective date and Form 1120 (not Doc Code 16) already posted for this tax period.

    Note:

    USE CC ENMOD and CC UPTIN to determine if there is an open or closed unpostable TC 090. If an unreversed TC 097 is posted, contact Entity to research the files for cases pending with Chief Counsel.

    Note:

    Bypass UPC 310 RC 2 through 7 if the input return contains Computer Condition Code "Q" (TETR-only return) and the tax year is 2006/2007.

  2. The following chart lists different scenarios that will help resolve UPC 310 RC 4:

    IF the UNP is a Form 1120S, and AND THEN
    A. IDRS shows an unpostable TC 090 with an effective date that agrees with the unpostable Form 1120S.   1. Close the unpostable TC 090 with URC 0.
    2. Close the unpostable 1120S with a URC 0 and cycle appropriately.
    B. IDRS shows a TC 090 input after the 1120S attempted to post. The effective date agrees with the unpostable 1120S. Close with URC 0.
    C. The DLN is incorrect (previously converted, late reply). There is not a valid TC 090 on the account or the TC 090 is effective for a later tax period. 1. Re-convert the Form 1120S to Form 1120.
    2. Close the unpostable with URC 8 and request Rejects renumber to Form 1120.
    3. Line through audit code 4.
    D. Research indicates the corporation was in existence prior to 1972.

    Note:

    Prior to 1972 an account could have an 1120-02 filing requirement without a TC 090.
    See Exhibit 3.13.222-1 for instructions for creating a dummy Form 2553.

    Account does not reflect a TC 090, but taxpayer consistently files a Form 1120S. 1. Prepare a dummy Form 2553 with the name of the entity, EIN, and effective date of the first verified posted Form 1120S and FYM.
    2. Input TC 090 per IRM 3.13.222.108 (suppress CP notice with a PSC>Z).
    3. Close the unpostable with URC 0 and cycle appropriately.
    E. There is no TC 090 on the account.

    Note:

    Correspond with the taxpayer using the appropriate letter regardless of the tax period or whether or not the taxpayer will qualify under the Revenue Procedure.

    Thorough research of CCs NAMEB and NAMEE does not locate another EIN with an S election. 1. Correspond (using the appropriate letter) with the taxpayer informing them that we have no record of them filing Form 2553, however, they may be able to apply for relief under Revenue Procedure 2013-30.
    2. Suspend for 60 days.
    F. There is a TC 090 with a Transaction Identification Code of DU (Deleted Unpostable).   1. ESTAB for the DLN of the TC 090.
    2. If valid, re-input the TC 090.
    3. Close with URC 0 and cycle appropriately.
    4. If the Form 2553 cannot be obtained from Files, call the taxpayer and request a signed copy.
    5. If the taxpayer cannot be contacted via telephone, then correspond for the Form 2553. The Form 2553 should be considered timely, so the taxpayer is not required to file under a revenue procedure.
    G. There is a TC 076 with PARA CD:A.

    Note:

    Correspond with the taxpayer using the appropriate letter regardless of the tax period or whether or not the taxpayer will qualify under the Revenue Procedure.

    The effective date matches or is prior to the tax period on the form and there is no TC 090. 1. Correspond (using the appropriate letter) with the taxpayer informing them that we have no record of them filing Form 2553, however, they may be able to apply for relief under Revenue Procedure 2013-30.
    2. Suspend for 60 days.
    H. The taxpayer responds to any of the above scenarios. a. The taxpayer provides an approved Form 2553, or a CP 261 or IRS letter with an effective date that matches the unpostable return.

    Note:

    Taxpayer does not need to submit another signed Form 2553.

    1. Input a TC 090 CC BNCHG using the documentation provided (prepare a dummy 2553 if necessary, and suppress the notice) for the effective date and FYM. Suppress the notice, if applicable.
    2. Close with URC 0, and cycle appropriately.
    The taxpayer responds to any of the above scenarios. b. The taxpayer provides a completed Form 2553 that does not qualify for the requested effective date under Revenue Procedure 2013-30. 1. Input TC 090 (with BK 95, if applicable), suppress notice with PSC>Z, for the next tax year that they qualify.
    2. Inform the taxpayer, using the appropriate letter, of the accepted effective date of their election and their option for a Private Letter Ruling.

    Note:

    A Paragraph Selection Code may be used if the verbiage is appropriate for the response. Refer to IRM 3.13.222.108 (9).


    3. Close the unpostable with URC 8.
    4. Convert the Form 1120S to Form 1120. Refer to IRM 3.13.222.39.2 for additional instructions.
    5. Request Rejects, using the appropriate routing form, to renumber the return to a Form 1120.
    6. Request Rejects enter the CRD on Form 1120, See IRM 3.13.222.40, Correspondence Received Date (CRD).
    The taxpayer responds to any of the above scenarios. c. Taxpayer provides a timely, but incomplete, Form 2553. 1. Follow procedures according to IRM 3.13.222.8, Corresponding/Calling Taxpayers for Incomplete Information.
    2. If taxpayer does not respond with corrected information.
    Close as a "No Reply" .
    The taxpayer responds to any of the above scenarios. d. Taxpayer responds with a completed Form 1120. 1. Overlay the Form 1120S with the Form 1120.
    2. Close with URC 8.
    3. Requests Rejects, using the appropriate routing slip, to renumber the return (DLN) to a Form 1120 and enter the CRD on Form 1120.
    4. If master file has an incorrect filing requirement of an 1120–02, Remove the 1120 filing requirement.
    I. No Reply.

    Note:

    When working a No Reply and the module has been satisfied with the correct return, close with URC 8 and cancel DLN. If the Form 2553 has been received in another area and processed with the correct effective date for the unpostable, process as a reply received.

      1. Convert the Form 1120S to Form 1120. Refer to IRM 3.13.222.39.2, for additional instructions.
    2. Close with URC 8 and request Rejects to cancel DLN and renumber to Form 1120.
    J. Taxpayer files a Form 1120S. IDRS indicates the entity is a LLC or Partnership. Please refer to instruction in IRM 3.13.222.73.6.2.
  3. The following chart lists different scenarios that will help resolve UPC 310 RC 4 that have previously been coded as a Reject action code 347 under Revenue Procedure 2013-30 or they are not coded and the Form 2553 is attached:

    Note:

    Entity will no longer be converting to Form 1120 or cancelling the DLN of a Form 1120S as Rejects. To leave a better audit trail the cases will be annotated to Let Unpost. The cases should not need any further actions taken on them, only to close with a URC 8 as instructed.
    Let Unpost/Convert to 1120
    Let Unpost/Cancel DLN

    IF the UNP is a Form 1120S, and And Then
    A. TC 092 is present on the account and return is coded with a Reject action code of 347. It is an initial return and account indicates a Letter 312C or 6800sce has been sent. The input of TC 092 has been less than 60 days.

    Note:

    If the TC 092 was input over 60 days ago follow C below.


    1. Suspend for 60 days.
    2. Review account for a posted TC 090. If TC 090 is posted for a valid effective date, URC 0 and cycle as appropriate.
    3. If account does not have a TC 090 with a valid effective date:
    • Return is for a corporation refer to No Reply instructions in IRM 3.13.222.62.

    • Return is for a LLC refer to No Reply instructions in IRM 3.13.222.73.6.2.

    B. Initial Form 1120S has a Form 2553 attached filing under Rev. Proc. 2013-30 (no indication of a Reject action code 347). a. Form 2553 is complete. 1. Detach Form 2553 and reasonable cause statement to use as source document and input TC 090.
    2. URC 0 and cycle appropriately.
    Initial Form 1120S has a Form 2553 attached filing under Rev. Proc. 2013-30 (no indication of a Reject action code 347). b. Form 2553 is not complete. 1. Detach and return Form 2553 with a 312C letter or 6800sce.
    2. Suspend for 60 days.
    C. Initial Form 1120S with a Reject action code of 347 (without a Form 2553 attached). Audit Trail indicates to "Let Unpost" . 1. Correspond (using the appropriate letter) with the taxpayer informing them that we have no record of them filing Form 2553, however, they may be able to apply for relief under Revenue Procedure 2013-30.
    2. Suspend for 60 days.
    D. Initial Form 1120S with a Reject action code of 347 (Form 2553 attached but not complete). EIN recently assigned by Entity and audit trail indicates to "Let Unpost" . 1. Detach and return Form 2553 with a 312C letter.
    2. Suspend for 60 days.
    E. Taxpayer replies a. Form 2553 is complete. 1. Input TC 090.
    2. Close with URC 0 and cycle appropriately.
    Taxpayer replies b. Form 2553 is still not complete. 1. Follow procedures according to IRM 3.13.222.8, Corresponding/Calling Taxpayers for Incomplete Information.
    2. If taxpayer does not respond with corrected information.
    Close as a "No Reply" .
    Taxpayer replies c. Form 2553 does not qualify for effective date requested and return is for a Corporation. 1. Input TC 090 (with BK 95, if applicable), suppress notice with PSC>Z, for the next tax year that they qualify.
    2. Inform the taxpayer, using the appropriate letter, of the accepted effective date of their election and their option for a Private Letter Ruling.
    3. Close with URC 8.
    4. Convert the Form 1120S to Form 1120. Refer to IRM 3.13.222.39.2, for additional instructions.
    5. Request Rejects, using the appropriate routing form, to renumber the return to a Form 1120.
    6. Request Rejects to enter the CRD on Form 1120. Refer to IRM 3.13.222.40, Correspondence Received Date (CRD).
    Taxpayer replies d. Form 2553 does not qualify for the effective date requested and the return is for an LLC. 1. Input TC 090 , suppress notice with PSC>Z, for the next tax year that they qualify.
    2. Inform the taxpayer, using the appropriate letter, with DLN inserted, of the accepted effective date of their election and their option for a Private Letter Ruling.
    3. Close with URC 8.
    4. Using the appropriate routing form, request Rejects cancel the DLN and re-file.
    F. No Reply.

    Note:

    When working a No Reply and the module has been satisfied with the correct return, close with URC 8 and cancel DLN. If the Form 2553 has been received in another area and processed with the correct effective date for the unpostable, process as a reply received.

     
    • Return is for a corporation refer to No Reply instructions in IRM 3.13.222.62.

    • Return is for a LLC refer to No Reply instructions in IRM 3.13.222.73.6.

  4. Input Transaction Code 971 with Action Code (AC) 375 (Command Code FRM77) to identify when Form 1120S has failed to post to MF and a phone call was made or a letter has been issued.

  5. Input Transaction Code 971 with Action Code (AC) 376 (Command Code FRM77) to identify the conversion of Form 1120S to a Form 1120, when there is no reply or when the reply received does not resolve the unpostable issue. Always research when converting the Form 1120S to Form 1120 to verify that a TC 971 with AC 375 was input. If a TC 971 with AC 375 cannot be found, input the TC 971 AC 375 and then TC 971 AC 376 with a posting delay code of 1.

    Note:

    Input TC 971 with AC 376 is going to freeze all refunds to the taxpayer. To lift the freeze, input TC 971 with AC 377.

  6. Input Transaction Code 971 with Action Code 377 through Command Code FRM77 to identify the conversion of Form 1120 back to the original Form 1120S.

    Note:

    An example of when we should use this procedure is when we have a late reply 3853C Letter.

  7. If the TC 971 was input on an incorrect EIN, a TC 972 will need to be input to reverse the TC 971.

  8. If a TC 971 was not input on the invalid EIN, input or verify that a TC 971 was input on the valid EIN.

  9. A TC 971 cannot be input on MFT 02 if the taxpayer is a Limited Liability Company (LLC) unless there is a valid TC 076 posted for the current or prior year of the tax return.

    Figure 3.13.222-10

    This is an Image: 33790778.gif
     

    Please click here for the text description of the image.

    Figure 3.13.222-11

    This is an Image: 33790779.gif
     

    Please click here for the text description of the image.

Unpostable Code (UPC) 310 Reason Code (RC) 5

  1. The Programming Requirements Package for UPC 310 RC 5 states:
    MFT 02 TC 150 (document code 16) input, Form 1120 FRC is 00/01/02 and,

    1. An unreversed TC 090 is posted with an effective date (year/month) later than the input return period ending, or,

    2. The input TC 150 carries a S-Corp effective date (Year/Month) later than its tax period ending.

    Note:

    Bypass UPC 310 RC 2 through 7 if the input return contains Computer Condition Code "Q" (TETR-only return) and the tax year is 2006/2007.

  2. The following chart lists different scenarios that will help resolve UPC 310 RC 5:

    IF the UNP is a Form 1120S, and AND THEN
    A. The tax period on UPTIN does not agree with the tax period on the tax return. The tax period on the tax return agrees with the TC 090 effective date. Close with URC 6 to change to tax period on UPTIN to match the tax period of the return.
    B. The tax period of the tax return is earlier than the effective date of TC 090.   1. Correspond (using 3853C or other appropriate letter) with the taxpayer informing the taxpayer that our records indicate the effective date of their Subchapter S Election is not valid for the tax year indicated on the Form 1120S.
    2. Suspend the case for 60 days.
    C. The tax period of the return is earlier than the effective date of the TC 090 and the return is coded with a Reject action code 347. The Form 2553 was not approved for the requested tax year under Rev. Proc. 2013-30 and the account indicates that a 385C has been sent. 1. Do not correspond:
    • Return is for a corporation refer to No Reply instructions in IRM 3.13.222.62.

    • Return is for a LLC refer to No Reply instructions in IRM 3.13.222.73.6.2.

    D. Taxpayer responds. a. With another Form 2553 and/or documentation the election can be approved for the tax year of the unpostable. 1. Input TC 092/TC 090 (PCD 1) to approve for effective date requested. Suppress notice.
    2. Inform the taxpayer, using the appropriate letter, of the accepted effective date of their election.
    Close with URC 0 and cycle appropriately.
    Taxpayer responds. b. With another Form 2553 and/or documentation the election still cannot be approved for the tax year of the unpostable. 1. Input TC 016 to remove 1120-02 filing requirement, if necessary.
    2. Inform the taxpayer the Form 2553 was not approved for the effective date requested and options for a PLR.
    3. Convert the Form 1120S to Form 1120. Refer to IRM 3.13.222.39.2, for additional instructions.
    4. Close with URC 8 and request Rejects to cancel DLN and renumber to Form 1120.
    Taxpayer responds. c. Taxpayer sends in the correct return. 1. Overlay the invalid return with the corrected return. Attach the appropriate routing form.
    2. Close with URC 8 and request Rejects cancel the DLN and to renumber the corrected return.
    E. No Reply   1. Input TC 016 to remove 1120-02 filing requirement, if necessary.
    2. Convert the Form 1120S to Form 1120. Refer to IRM 3.13.222.39.2, for additional instructions.
    3. Close with URC 8 and request Rejects to cancel DLN and renumber to Form 1120.
    F. Taxpayer files a Form 1120S. IDRS indicates the entity is a LLC or Partnership. Please refer to instructions in IRM 3.13.222.73.6.2.
  3. Input TC 971 with AC 375 (Command Code FRM77) to identify when Form 1120S has failed to post to MF and a phone call was made or a letter has been issued. Refer to IRM 3.13.222.62, Figure 3.13.222.10 for input of TC 971.

  4. Input TC 971 with AC 376 (Command Code FRM77) to identify the conversion of Form 1120S to a Form 1120, when there is no reply or when the reply received does not resolve the unpostable issue. Refer to IRM 3.13.222.62, Figure 3.13.222.10 for input of TC 971. Always research when converting the Form 1120S to Form 1120 to verify that a TC 971 with AC 375 was input. If a TC 971 with AC 375 cannot be found, input the TC 971 AC 375 and then TC 971 AC 376 with a posting delay code of 1.

    Note:

    Input TC 971 with AC 376 is going to freeze all refunds to the taxpayer. To lift the freeze, input TC 971 with AC 377.

  5. If the TC 971 was input on an incorrect EIN, a TC 972 will need to be input to reverse the TC 971. See, Figure 3.13.222-11 for input of TC 972.

  6. If a TC 971 was not input on the invalid EIN, input or verify that a TC 971 was input on the valid EIN.

  7. A TC 971 cannot be input on MFT 02 if the taxpayer is a Limited Liability Company (LLC) unless there is a valid TC 076 posted for the current or prior year of the tax return.

Unpostable Code (UPC) 310 Reason Code (RC) 6

  1. The Programming Requirements Package (PRP) for UPC 310 RC 6 states:
    MFT 02 TC 150 (Document code 16) input, Form 1120 FRC greater than 02 and no TC 091/096 is posted.

    Note:

    Bypass UPC 310 RC 2 through 7 if the input return contains Computer Condition Code "Q" (TETR-only return) and the tax year is 2006/2007.

  2. The following chart lists different scenarios that will help resolve UPC 310 RC 6:

    IF the UNP is a Form 1120S, and THEN
    A. Form 1120S is valid based on the effective date of the TC 090. 1. Input TC 016 to delete the Form 1120 FR.
    2. Close with URC 0 and cycle appropriately
    B. Account shows Form 1120 FRC greater than 02 and no TC 090 is posted. Follow instructions for UPC 310 RC 4, IRM 3.13.222.62.
    C. Account has a TC 090 present for a later date. Follow instructions for UPC 310 RC 5, IRM 3.13.222.63 .

Unpostable Code (UPC) 310 Reason Code (RC) 7

  1. The Programming Requirements Package for UPC 310 RC 7 states:
    TC 150 for MFT 02 with Document Code 09/11 with ABLM Codes 001 (Personal Holding Company), 010 (Consolidated Return) or 400 (Personal Service Corporation) with a Form 1120 FRC 02.

    Note:

    Bypass UPC 310 RC 2 through 7 if the input return contains Computer Condition Code "Q" (TETR-only return) and the tax year is 2006/2007.

  2. The following chart list different scenarios that will help resolve UPC 310 RC 7:

    IF the UNP is a Form 1120 (for a short period) or Personal Service Corporation, and THEN
    A. The TC 090 has a later effective date. 1. Input TC 016 and change 1120-02 to 1120-00.
    2. Close with URC 0 and cycle appropriately.
    B. All others Follow instructions for UPC 310 RC 3, IRM 3.13.222.61

Unpostable Code (UPC) 310 Reason Code (RC) 8

  1. The Programming Requirements Package (PRP) for UPC 310 RC 8 states: MFT 02 TC 150 (not Doc Code 16) input, if LLC indicator is S or M and there is no posted TC 076 with an effective date prior to tax period or an unreversed TC 076 is posted but there is a subsequent posted unreversed TC 078 (rejection) posted - and no TC 076 posted subsequent to the TC 078).

  2. UPC 310 RC 8 and Entity indicates the taxpayer is a LLC. Use the following table to resolve the unpostable conditions:

    IF AND THEN
    A. BMFOLE shows a TC 076 with PARA CD:A (indicating taxpayer elected to be a C Corporation). The effective date matches the tax period on the Form, and the filing requirement on IDRS is Form 1065. 1. Input TC 016 using CC BNCHG to remove the 1065 filing requirement and input a filing requirement for a Form 1120. Update LLC indicator if needed.
    2. Close with URC 0 and cycle appropriately.
    B. BMFOLE shows a TC 076 with PARA CD:A. The effective date is later than the tax period on the form. 1. Correspond (using 3852C or appropriate letter) with the taxpayer informing them that the Form 8832 was not valid for the tax period of the return. Refer to IRM 3.13.222.73.6.1, LLC - Form 1120.
    2. Request a corrected return per Code of Federal Regulations 301-7701-3(b)(1).
    3. Suspend the case for 60 days.
    C. IDRS does not show a TC 076 is present.   1. Correspond (using 3852C or appropriate letter) with the taxpayer informing the taxpayer we have no record of them filing the Form 8832. Refer to IRM 3.13.222.73.6.1, LLC - Form 1120.
    2. Request a corrected return per Code of Federal Regulations 301-7701-3(b)(1).
    3. Suspend the case for 60 days.
    IDRS does not show a TC 076 is present. Form 8832 is attached and complete. 1. Process the Form 8832 according to IRM 3.13.222.110, Form 8832.
    2. See exhibit 3.13.222-10 for example of BNCHG.
    3. Close the unpostable with URC 0 and cycle appropriately.
    IDRS does not show a TC 076 is present. Form 8832 is attached and not complete and qualifies under Rev. Proc. 2009-41. 1. Correspond with the taxpayer using the 3574C letter or 6801sce for completion.
    2. Suspend for 60 days.
    IDRS does not show a TC 076 is present. Form 8832 is attached and not complete and does not qualify under Rev. Proc. 2009-41. 1. Deny the Form 8832 according to IRM 3.13.222.110.8 .
    2. Close unpostable with URC 8.
    3. Using the appropriate routing form, request Rejects cancel the DLN and re-file.
    D. Taxpayer replies. a. With a Notice of Acceptance or an acceptable Form 8832 or with completed form and qualifies under Rev. Proc. 20091-41. 1. Process the Form 8832 according to IRM 3.13.222.110, Form 8832.
    2. See exhibit 3.13.222-10 for example of BNCHG.
    3. Close the unpostable with URC 0 and cycle appropriately.
    Taxpayer replies. b. Without a Notice of Acceptance or an unacceptable Form 8832. 1. Deny the Form 8832 according to IRM 3.13.222.110, Form 8832.
    2. Close unpostable with URC 8.
    3. Using the appropriate routing form, request Rejects cancel the DLN and re-file.
    Taxpayer replies. c. With a Form 1065. 1. Overlay invalid Form 1120 with valid Form 1065.
    2. Close with URC 8.
    3. Request Rejects to cancel DLN of Form 1120 and renumber as Form 1065 and request Rejects to enter the CRD on Form 1065.
    F. No Reply   1. Close with URC 8.
    2. Using the appropriate routing form, request Rejects cancel the DLN and re-file.

    Note:

    If payment(s) are on module make notation to Rejects to refund payment(s).

    Note:

    When cancelling the DLN check BMFOLI for incorrect prior year liabilities for MFT 02 and if found input 590-020 via FRM49 to make TP not liable.

  3. Input Transaction Code 971 with Action Code (AC) 374 on MFT 06 (Command Code FRM77) to identify when Form 1120 has failed to post to Master File and a phone call was made or a letter has been issued. No reply received and return removed from processing. AC 374 can also be used on a TC 972.

    Caution:

    The FRC has to be a 1065 for the input of this transaction. A TC 971-374 should only be input for a multi-member LLC.

  4. See IRM 3.13.222.110 for additional procedures for processing Form 8832, and IRM 3.13.222.108 for additional procedures for processing Form 2553.

  5. If research determines the entity is not an LLC, remove the LLC indicator via BNCHG by placing a "9" in the LLC indictor field. Update the account as needed to perfect the type of entity.

Unpostable Code (UPC) 313 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 313 RC 1 states:
    An input transaction failed to find its related transaction posted to the tax module of the same MFT Code and tax period.

  2. The entity module transactions are listed below.

    1. A TC 023 attempts to post and there is no open TC 024 in the entity module.

    2. A TC 052 attempts to post and there is not a posted or unreversed TC 053, 054, or 055 on the entity module.

    3. A TC 052 attempts to post and there is not a posted or unreversed TC 058, 059 on the entity module.

    4. A TC 061, 065, or 066 attempts to post and there is not a posted or unreversed TC 060 present.

    5. A TC 062 attempts to post and there is not a posted or unreversed TC 060, 063, 064 or 065 present.

    6. A TC 071 or 072 attempts to post and there is no open TC 070 posted for cycle 8440 or later in the entity module.

    7. A TC 091 095, or 096 attempts to post and there is not a posted or unreversed TC 090 on the entity module.

    8. A TC 092 attempts to post and there is not a posted or unreversed TC 090, 093, 095, or 097 on the entity module.

    9. A TC 961 (RAF) or 962 (RAF) attempts to post and there is no open TC 960 posted on the entity.

UPC 313 - for TC 023

  1. See IRM 3.12.278.

UPC 313 - for TC 052

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 052

    • Research IDRS for an accepted Form 1128, Form 2553 or Form 8716.

    • The following chart list different scenarios that will help resolve UPC 313 RC 1:

    IF AND THEN
    A. The unpostable transaction is a TC 052. An accepted Form 1128 or Form 8716 is located. 1. Correct with URC 2.
    2. Return the unpostable document to the initiator.
    B. The unpostable transaction is a TC 052. An accepted Form 1128 or Form 8716 is not located. 1. Correct with URC 2.
    2. Return the unpostable document to the initiator.

UPC 313 - for TC 058 and TC 059

  1. UPC 313 No Related Transactions Resolution Procedures for TC 058, TC 059

    IF AND THEN
    The unpostable transaction is a TC 052. There is not a posted TC058/TC059 or there is a previously reversed TC058/TC059 on the entity module. Close with URC D and destroy the document.

UPC 313 - for TC 061

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 061

    • Research for an accepted Form 8279.

    IF AND THEN
    The unpostable transaction is a TC 061. a. An accepted Form 8279 is located. 1. Pull the Form 8279 from files.
    2. Use CC BNCHG, Document Code 63, and input the correct effective date.
    3. Correct the unpostable with URC 0.
    The unpostable transaction is a TC 061. b. An accepted Form 8279 is not located. 1. Correct the unpostable with URC 2.
    2. Return the unpostable document to the initiator.

UPC 313 - for TC 062

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 062

    IF AND THEN
    The unpostable transaction is a TC 062.   1. Correct the unpostable with URC 2.
    2. Return the unpostable document to the initiator.

UPC 313 - for TC 065

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 065

    • Verify with the source document that the input EIN is correct.

    IF AND THEN
    The unpostable transaction is a TC 065. a. The input EIN is correct. 1. Correct the unpostable with URC 2.
    2. Return the unpostable document to the initiator.
    The unpostable transaction is a TC 065. b. The input EIN is wrong. Correct the unpostable with URC 6.

UPC 313 - for TC 066

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 066

    • Verify with the source document that the input EIN is correct.

    IF AND THEN
    The unpostable transaction is a TC 066. a. The input EIN is correct and there is a source document. 1. Correct the unpostable with URC 2.
    2. Return the unpostable document to the initiator.
    The unpostable transaction is a TC 066. b. The input EIN is wrong. Correct the unpostable with URC 6.

UPC 313 - for TC 071

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 071.

    • Research IDRS for an open unpostable TC 070, see CC UPTIN

    IF AND THEN
    The unpostable transaction is a TC 071. Inconsistent transactions do not apply. 1. Prepare Form 4437 and route to the originator (Do not retain any copies).
    2. Annotate the Form 4437 with the following: "Action has been taken to revoke an election (Form 8274) and there is no evidence that an election was previously made."
    3. Correct the unpostable with URC 0.

UPC 313 - for TC 072

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 072.

    IF THEN
    The unpostable transaction is a TC 072. 1. Correct the unpostable with URC 2.
    2. Return the unpostable document to the initiator.

UPC 313 - for TC 077

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 077.

    • Research for an accepted Form 8832.
      TC 074 - Deemed Form 8832 (from Form 2553).
      TC 076 - Accepted Form 8832.

    If And Then
    A. The unpostable is a TC 077. a. There is not a TC 076 on the BMF. URC 2 to the originator.
    The unpostable is a TC 077. b. There is a posted TC 076 with later cycle date than the unposted TC 077. URC 0.
    The unpostable is a TC 077. c. There is a TC 074 on the BMF. 1. Input TC 075 to reverse TC 074.
    2. URC D the unpostable.

UPC 313 - for TC 091

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 091

    • Research for an accepted Form 2553.

    IF AND THEN
    A. The unpostable transaction is a TC 091. a. A reversed TC 090 is on the BMF.
    b. A TC 091 is on the BMF.
    1. Determine the correct date of TC 091 and ESTAB Form 2553 if necessary.
    2. If posted TC 091 date is incorrect, prepare a Dummy Form 2553 and re-input TC 090 using the original effective date (suppress notice with PSC>Z).
    3. The re-input of TC 090 will create an UPC 339. Monitor and close the UPC 339 with a 0.
    4. URC 0 unpostable with the correct effective date and cycle appropriately.
    5. If posted TC 091 date is correct close the unpostable with a URC 2. Return the unpostable document to the initiator.
    B. The unpostable transaction is a TC 091. There is no TC 090 on the BMF. 1. Close the unpostable with URC 2.
    2. Return the unpostable document to the initiator.

    Exception:

    S corporations prior to 1972 may require the input of a dummy Form 2553 (suppress notice with PSC>Z). Close the unpostable with URC 0 and cycle appropriately.

UPC 313 - for TC 092

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 092

    • Verify with the source document that the input EIN is correct.

    IF AND THEN
    The unpostable transaction is a TC 092. There is no TC 090, or the 090 was previously reversed. 1. Close with URC 2.
    2. Return the unpostable document to the initiator.

UPC 313 - for TC 095

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 095

    • Verify with the source document that the input EIN is correct.

    IF AND THEN
    A. The unpostable transaction is a TC 095. There is no TC 090. Close with URC D.
    B. The unpostable transaction is a TC 095. The TC 096 is posted. Close with URC D.
    C. The unpostable transaction is a TC 095. The input EIN is wrong. 1. Close with URC 2.
    2. Return the unpostable document to the initiator.

UPC 313 - for TC 096

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 096

    • Verify with the source document that the input EIN is correct.

    IF AND THEN
    The unpostable transaction is a TC 096. a. There is no TC 090. 1. Research for a better EIN.
    2. Close with URC 6 if a better EIN is found.
    3. Close with URC 2 and return to the initiator if the EIN is correct.
    The unpostable transaction is a TC 096. b. The input EIN is correct and there is a TC 090. Close with URC 0.
    The unpostable transaction is a TC 096. c. The input EIN is wrong and there is a TC 090. 1. Research for a better EIN.
    2. Correct the unpostable and close with URC 6.

UPC 313 - for TC 097

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 097.

    • Verify with the source document (Form 2553) that the input EIN is correct.

    IF AND THEN
    The unpostable transaction is a TC 097. a. The input EIN is correct and another transaction code (such as 093 or 095) should have been input. 1. Input the appropriate transaction code.
    2. Correct the unpostable with URC 0, and cycle appropriately.
    The unpostable transaction is a TC 097. b. Another transaction code should not have been input. Void the unpostable with URC D.
    The unpostable transaction is a TC 097. c. The input EIN is wrong. Correct the unpostable with URC 6.

UPC 313 - for TC 961/962

  1. UPC 313 - No Related Transactions Resolution Procedures for TC 961 or TC 962

    • The TC 961 or TC 962 (RAF) will unpost because:

    1. A TC 960 (RAF) is not posted on the BMF entity module.

    2. The EIN has been changed through a merge.

    3. The TC 960 is unpostable.

    IF AND THEN
    A. The TC 960 is unpostable.   Close with URC 2 and return the unpostable document to the initiator.
    B. The unpostable transaction is a TC961/TC962. a. The EIN has been merged and the new EIN is correct. 1. Correct the unpostable using URC 6 and change the EIN.
    2. Otherwise, delete the unpostable using URC D.
    The unpostable transaction is a TC961/TC962. b. The EIN has not been merged. Delete the unpostable using URC D.
    C. The unpostable transaction is a TC 962. a. The new EIN is correct and on the RAF. 1. Correct the unpostable using URC 6 and change the EIN.
    The unpostable transaction is a TC 962. b. The transaction was entered to add a new MFT. 1. Delete the unpostable with URC D.
    2. Use CC RAFUP with Definer T and reset TC 960 to 1.
    3. This will create a new TC 960 for posting to the Master File.
    The unpostable transaction is a TC 962. c. The transaction was entered, but did not change or add a new MFT. 1. Correct with URC 6.
    2. Change the TC to 960.

Unpostable Code (UPC) 317 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 317 RC 1 states:
    TC 460 attempts to post to a tax module and the extension date of the TC 460 is not equal to or greater than the due date of the return as extended.

  2. Research the unpostable TIN for a Form 1120 return filing in a later year than the unpostable transaction. The presence of a return in the later year validates that a MFT 02 FR was established for that year.

  3. The following chart lists different scenarios that will help resolve UPC 317 RC 1:

    IF THEN
    A. If a Form 1120 return filing in a later year than the unpostable transaction is located Input URC 0 to allow TC 295 OR 299 to post.
    B. If return can not be located Release URC 2 to the originator.

Unpostable Code (UPC) 323 Reason Code (RC) 2

  1. The Programming Requirements Package (PRP) for UPC 323 RC 2 states: TC 090, 093, 094, 095, 097 or TC 024/054/055/058/059 or TC 060/063/064/065 or TC 074/078/080 or TC 971 AC 281/360 attempts to post to an entity that contains an unreversed TC 090, 093, 094, 095, 097, or TC 024/054/055/058/059 or TC 060/063/064/065, or TC 074/078/080 or (TC 971 AC 281/360 with matching XREF Date) respectively.

    1. TC 082 attempts to post and there is a previous TC 082 where input effective date is less than 60 months from the effective date of the last election (TC 082) unless a TC 083, 086, or 087 is present.

    2. TC 971 AC 087 input with (1) A Disaster Ending Date of zero; or (2) TC 971 AC 087 input to an account containing an unreversed TC 971 with matching AC/FEMA and new TC 971 AC 087 disaster and date is earlier, or the disaster begin date (transaction date) is later, or (3) TC 971 AC 87 input to an account containing an unreversed TC 971 with matching AC/FEMA and both disaster begin and end dates match exactly the original disaster begin and end dates.

    3. A TC 971 C 382/383/384/385/386/387/388 if there is an unreversed TC 971, 382/383/384/385/386/387/388 posted to the Entity, (i.e., unpost AC 383 if AC 385 posted).

  2. Input transaction attempts to post to an account that has the same transaction already posted.

  3. The following chart lists different scenarios that will help resolve UPC 323 RC 2:

    IF AND THEN
    A. The unpostable transaction is a TC 090. a. It is not the correct account. 1. Close with URC D.
    2. Input the TC 090 on the correct account.
    The unpostable transaction is a TC 090. b. The TC 090 effective date matches the posted TC 090 and the entity is the same. 1. Close with URC D.
    2. Mark duplicate Form 2553 to be destroyed.
    3. If original TC 090 input date is more than 45 days, send taxpayer a 385C letter informing them of their approved effective date.
    The unpostable transaction is a TC 090. c. The TC 090 effective date does not agree with the posted TC 090 and the entity is the same. 1. Research for the posted TC 090.
    2. ESTAB for one or both of the Form 2553's if necessary.
    3. Unposted TC 090 has correct effective date, input TC 092 if necessary and close with URC 0, cycle appropriately.
    The unpostable transaction is a TC 090. d. The taxpayer is granted a better effective date. 1. Input TC 092 if one is not already posted.
    2. Close with URC 0 and cycle appropriately.
    The unpostable transaction is a TC 090. e. It cannot be determined which TC 090 is correct. 1. Correspond with the taxpayer, using the appropriate letter.
    2. Suspend the case for 60 days.
    B. The unpostable is a TC 094. There is already another TC 094 on file. 1. Close with URC D.
    2. Mark duplicate Form 2553 and attach to the DLN of TC 094 on file.
    C. The unpostable is a TC 093, 095 or 097. a. The entities are the same. 1. Close with URC D.
    The unpostable is a TC 093, 095 or 097. b. The entities are not the same. 1. Close with URC 6 to the correct EIN.
    2. If a valid EIN is not found close with URC D.
    D. The unpostable is a TC 053, 054 or 055. a. The FYM on the unpostable is the same as the previously posted TC 05X. 1. Close with URC D.
    2. Mark the duplicate to be destroyed.
    The unpostable is a TC 053, 054 or 055. b. The FYM on the unpostable does not match the posted TC 05X and the entity is the same. 1. Correspond (using the appropriate letter) with the taxpayer to determine the correct FYM.
    2. Suspend the case for 60 days.
    E. The unpostable is a TC 052. There is no TC 05X on the account. 1. Close with URC D.
    2. Mark the document to be destroyed.
    F. Taxpayer responds to any of the above scenarios. a. Indicates the posted TC 090 has the correct effective date. 1. Close with URC D.
    2. Mark duplicate Form 2553 to be destroyed.
    3. If posted TC 090 input date is more than 45 days, send taxpayer a 385C letter informing them of their approved effective date.
    Taxpayer responds to any of the above scenarios. b. Indicates that the FYM of the posted TC 05X is incorrect. 1. Input TC 052.
    2. Input TC 016 to update FYM, if necessary.
    3. Close the unpostable with URC 0 and cycle appropriately.
    Taxpayer responds to any of the above scenarios. c. Indicates the original TC 090 has the correct effective date. 1. Close with URC D.
    2. Mark duplicate Form 2553 to be destroyed.
    3. If original TC 090 input date is more than 45 days, send taxpayer a 385C letter informing them of their approved effective date.
    Taxpayer responds to any of the above scenarios. d. Indicates the original TC 090 has an incorrect effective date and the unposted TC 090 has the correct effective date. 1. Input a TC 092 to reverse the original TC 090.
    2. Close with URC 0 and cycle appropriately.
    G. No reply.   1. Close with URC D.

    2. Mark the duplicate to be destroyed.
    H. If TC 971, AC 382, 383, 384, or 385.   URC 2 to the originator.
    I. The unpostable is a Form 5768.   Refer to IRM 3.12.278, Exempt Organization Unpostable Resolution.
  4. The following table will help unpostable Form 8279:

    IF AND THEN
    A. The unpostable transaction is a Form 8279, TC 060/064. a. Another EIN is found and no TC 060/064. Close with URC 6 to the correct EIN.
    The unpostable transaction is a Form 8279, TC 060/064. b. Another EIN is found and a TC 060/064 is already on the account. 1. Close with URC D.
    2. Mark the duplicate to be destroyed.
    The unpostable transaction is a Form 8279, TC 060/064. c. The effective dates are not the same. 1. Correspond with the taxpayer to determine the correct effective date.
    2. Suspend the case for 60 days.
    B. The unpostable is a TC 063 or 065. a. The entities are the same. 1. Close with URC D.
    2. Mark the duplicate to be destroyed.
    The unpostable is a TC 063 or 065. b. The entities are not the same. Close with URC 6 to correct the EIN.
    C. Taxpayer responds. a. Indicates the original TC 060 has the correct effective date. 1. Close with URC D.
    2. Mark duplicate to be destroyed.
    Taxpayer responds. b. Indicates the original TC 060 has an incorrect effective date and the new date is received timely. 1. Reverse the TC 060 with a TC 062.
    2. Close with URC 0 and cycle appropriately.
    D. No reply.   1. Reverse the TC 060 with a TC 062.
    2. Close the unpostable with URC 8.
    3. Request Rejects to enter CCC 3 when no reply to correspondence is received from taxpayer; this suppresses credit interest from generating at Master File.

Unpostable Code (UPC) 323 Reason Code (RC) 5

  1. The Programming Requirements Package (PRP) for UPC 323 RC 5 states:
    TC 082 attempts to post and an unreversed TC 100 or 102 is present.
    TC 100 attempts to post and an unreversed TC 082 or 102 is present.
    TC 102 attempts to post and an unreversed TC 082 or 100 is present.

  2. Resolve this unpostable with URC 2, and route to preparer.

Unpostable Code (UPC) 324 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 324 RC 1 states:
    An input transaction which attempts to set Forms 941/944 indicator of the RAF Filing Code and the Entity Forms 941/944 FRC is 06, 07, 09, 10, 13, or 14.

  2. These procedures apply to both Document Code 63 and TC 960.

    Magnetic Tape Code (MTC)

    0 Blank No returns filed on Magnetic Tape
    1 Files Form 941 on Magnetic Tape.
    2 Files Form 940 on Magnetic Tape.
    3 Files Form 941 and Form 940 on Magnetic Tape.
    4 Files Form 945 on Magnetic Tape.
    5 Files Form 941 and Form 945 on Magnetic Tape.
    6 Files Form 940 and Form 945 on Magnetic Tape.
    7 Files Form 941, Form 940 and Form 945 on Magnetic Tape.

     

    IF THEN
    A. Research to determine if the Form 941 filing requirement on the master file is correct. Use the following command codes:
    1. ENMOD to query the TIF on IDRS
    2. INOLE to query the NAP at ECC-MTB.
    3. BMFOL to request a transcript of the entity.
    B. The filing requirement on the master file is correct. Use URC D and delete the unpostable.
    C. Document Code is 63 See below.
    D. The Magnetic Tape Code is incorrect Use command code BNCHG and input the Correct Magnetic Tape Code.
    E. The Magnetic Tape Code is correct Take no further action.
    F. The unpostable TC is 960 Correct the RAF using command code RAFAD with Definer Code M and delete the MFT 01 (this transaction will go unpostable, because the TC 960 is not posted), and command code RAFUP with Definer T and RESET TRANSACTION CODE TO TC 960 1. Notify the Reporting Agent that this account does not have the proper filing requirements for magnetic tape filing.
    G. If the filing requirement on the master file is not correct Use command code BNCHG and correct the BMF. Use URC 0 to correct the unpostable.

Unpostable Code (UPC) 324 Reason Code (RC) 2

  1. The Programming Requirements Package (PRP) for UPC 324 RC 2 states:
    An input transaction which attempts to set the Form 940 indicator of the RAF Filing Code and any of the following: Entity Employment Code = T, W, F, G or C; Entity EO Status = 1 - 19 and; subsection Code (current) = 03/50/60/70; The Form 940 FRC = 07.

  2. The Magnetic Tape Code is updated with:

    1. TC 01X Document Code 63

    2. TC 960 with MFT 00 and Tax Period 0000.

  3. Assign TC 960 to the RAF function.

  4. These procedures apply to both Document Code 63 and TC 960. Determine if the Magnetic Tape Code input is correct. See If/Then chart below.

  5. Research to determine if the Employment Code, EO Section or 940 filing requirement is correct. Use the following command codes:

    1. ENMOD to query the TIF on IDRS

    2. INOLE to query the NAP at ECC-MTB

    3. BMFOL MFTRD to request a transcript of the entity.

  6. The following chart lists different scenarios that will help resolve UPC 324 RC 2:

    IF THEN
    A. Research shows that the employment code EO Section or 940 filing requirement is correct. Use URC D and delete the unpostable.
    B. The Document Code is 63 the Magnetic Tape Code is incorrect. Use command code BNCHG to input the correct Magnetic Tape Code.
    C. The Magnetic Tape Code is correct. Take no further action.
    D. The unpostable is TC 960. 1. Correct the RAF, using command code:
    2. RAFAD with Definer Code M and delete the MFT 10 (this transaction will go unpostable, because the TC 960 is not posted), and RAFUP with Definer T and RESET TRANSACTION CODE TO TC 960 1.
    3. Notify the Reporting Agent that this account does not have the proper filing requirements for magnetic tape filing.
    E. If the employment code, EO section or 940 filing requirement is not correct. 1. Use command code BNCHG or EOCHG to correct the BMF.
    2. Use URC 0 to correct the unpostable.

Unpostable Code (UPC) 329 Reason Code (RC) 1

  1. The Programming Requirements Package (PRP) for UPC 329 RC 1 states:
    An input transaction attempting to update filing requirements or create a tax module which is inconsistent with current filing requirements. Exceptions: A TC 290 for MFT with blocking series 400-499, and a current filing requirement is not established for MFT 02, 05, 06, or 33 or 34.
    A TC 290 for a MFT not equal to 02 with blocking series 400-449 and the input MFT does not have a current filing requirement equal to the input MFT.
    A TC 150 for MFT 10 when Form 940 FRC is 3 or 4.
    Transaction that creates a tax module for MFT 34/44/67 when EO Status is 99.

  2. The unpostable return filed and the FRC on the BMF are not compatible.

  3. If remittance is present with the tax return, refer to IRM 3.13.222.22.

  4. The following table shows if the input transaction attempting to post will update the filing requirement or create a tax module and the input MFT is not consistent with the FRC on BMF.

    Unpostable MFT Filing requirement is not compatible if:
    01 (941) 941 FRC = 09 or 10 (With Doc Code not 51 or 52)
    02 (1120) 1041, 1065, 706GS(T), 1041-A, 5227, 1066 FRC = All FRCs
    02 (1120) 1120-C FRC = 01, unless Form 1120 FRC = 07
    02 (1120) 990-T FRC = 01, unless Form 1120 FRC = 03, 04, or 09)
    02 (1120) 990-T FRC = 02
    02 (1120) 990-PF FRC = 01, unless EO Entity Status = 19 or 22
    02 (1120) 990 FRC = 03 or 07
    02 (1120) 990 FRC = 04, 06 or 13 unless Form 1120 FRC = 9
    02 (1120) 990 FRC = 01 or 02, unless Form 1120 FRC = 01, and EO subsection = 12 or 1120 FRC = 03, 04, or 09)
    02 (1120) 8752 FRC = (Unless 1120 FRC = 02)
    05 (1041) 1120, 1065, 1120-C, 990-T, 1066, 8752 FRC = All FRCs
    05 (1041) 990 FRC = 03 thru 07
    05 (1041) 990 FRC = 01 or 02, unless EO subsection = 91
    05 (1041) 990-PF FRC = Unless EO subsection = 92
    05 (1041) 1041-QFT FRC = All FRCs other than 09
    05 (1041 QFT) 1120, 1065, 1120-C, 990-T, 1066, 8752 FRC = All FRCs
    05 (1041 QFT) 990 FRC = 03 thru 07
    05 (1041 QFT) 990 FRC = 1 or 2 unless EO subsection = 91
    05 (1041 QFT) 990-PF FRC = Unless EO subsection = 92
    05 (1041 QFT) 1041 FRC = All FRCs other than 09
    06 (1065) 1120, 1041, 1066, 1120-C, 990-T, 1041-A, 5227, 990-PF, 4720, 990, 706GS(T) FRC = All FRC
    07 (1066) 1120, 1065, 1041, 8752, 8804, 1120-C, 990-T, 1041-A, 5227, 4720, 990-PF, 990, 942, 706GS(T) FRC = All FRCs
    08 (8804) 1066, 1120-C, 990-T, 1041-A, 5227, 990-PF, 4720, 990, 706GS(T) FRC = All FRCs
    15 (8752) 1041, 1066, 1120-C, 990-T, 1041-A, 5227M 990-PF, 4720, 990, 706GS(T), 1120 FRC = Not equal to 02
    02 (1120-C) 1041, 1065, 1066, 8752, 8804, 990-T, 1041-A, 5227, 990-PF, 4720, 990, 706GS(T) FRC = All FRCs
    02 (1120-C) 1120 FRC = Not equal to 07, if 1120-C (FRC = 01)
    34 (990-T) 1041, 1065, 1066, 8752, 8804, 1120-C, 1041-A, 5227, 706GS(T) FRC = All FRCs
    34 (990-T) 990 FRC = 03
    34 (990-T) 1120 FRC = 01, 02, 06, 07, 10, 11 or 14-19
    36 (1041-A) 1066, 8752, 8804, 1120, 1065, 1120-C, 990-T, 990-PF, 990 FRC = All FRCs
    37 (5227) 1120, 1065, 1066, 8752, 8804, 1120-C, 990-T, 990-PF, 990 FRC = All FRCs
    37 (5227) 1041/706GS(T) FRC = Unless EO subsection = 90
    44 (990-PF) 1065, 1066, 8752, 8804, 1120-C, 1041-A, 5227, 990 FRC = All FRCs
    44 (990-PF) 1120 FRC = 01 unless EO entity status = 19 or 22
    44 (990-PF) 1120 FRC = 02, 06, 10, 11, 14-19
    44 (990-PF) 1041/706GS(T) FRC = Unless EO subsection = 92
    44 (990-PF) 990-T FRC = 02
    50 (4720) 1065, 1066, 8752, 8804, 1120-C FRC = All FRCs
    50 (4720) 1120 FRC = 02, 06, 07, 10, or 11
    50 (4720) 990 FRC = 03
    67 (990) 1065, 1066, 8752, 8804, 1120-C, 1041-A, 5227, 990-PF FRC = All FRCs
    67 (990) 1120 FRC = 02, 06, 07, 10, 11, 14-19
    67 (990) 1041/706GS(T) FRC = Unless EO subsection = 91
    67 (990) 1120 FRC = 01, unless 990 FRC = 1 or 2 and EO subsection = 12
    67 (990) 990-T FRC = 02
    77 (706GS(T) 8752, 8804, 1120-C, 990-T, 1066, 1120, 1065 FRC = All FRCs
    77 (706GS(T) 990 FRC = 03, 04, 06, 07, 13
    77 (706GS(T) 990 FRC = 01 or 02 unless EO subsection = 91
    77 (706GS(T) 990-PF FRC = Unless EO subsection = 92

    Figure 3.13.222-12

    This is an Image: 33790780.gif
     

    Please click here for the text description of the image.

UPC 329 RC 1 - Form 8752

  1. UPC 329 FRC mismatch RC 1 for Form 8752, Required Payment or Refund Under Section 7519: A Form 8752 attempts to post, a TC 055 is not present. For additional information on Form 8752 refer to IRM 3.13.2.7.20. Use the following table to resolve this unpostable condition:

    IF the UNP is a Form 8752, or associated payment, and AND THEN
    A. The fiscal year month is other than 12. A TC 055 is present for the appropriate year. Close with URC 0.
    B. The FRC is Form 1120S and a TC 090 is present with a fiscal year end request, and no TC 055 nor TC 054 is on the account.   ESTAB the DLN on the TC 090 to see if a Form 8716 is attached or Page 3 of the Form 2553 is complete.
    The FRC is Form 1120S and a TC 090 is present with a fiscal year end request, and no TC 055 nor TC 054 is on the account. a. Form 8716 is attached to the ESTAB'd Form 2553. 1. Input a TC 055 for the requested tax year end, see IRM 3.13.222.107 for additional instructions.
    2. Close unpostable with URC 0 and cycle appropriately.
    The FRC is Form 1120S and a TC 090 is present with a fiscal year end request, and no TC 055 nor TC 054 is on the account. b. Form 8716 is not attached to the ESTAB'd Form 2553 and the taxpayer indicates a fiscal year end. 1. Correspond (using the appropriate letter) with the taxpayer requesting a copy of the approved Form 8716, and inform the taxpayer that they are not liable to file Form 8752 if the Form 8716 is not timely. Include information regarding refunds, if applicable.
    2. Suspend the case for 60 days.
    The FRC is Form 1120S and a TC 090 is present with a fiscal year end request, and no TC 055 nor TC 054 is on the account. c. The taxpayer does not indicate a fiscal year end and December 31 is reflected. 1. Close unpostable with URC 8.
    2. Request Rejects cancel the DLN and re-file (the taxpayer is not liable).
    3. Inform the taxpayer using the appropriate letter that the form was not required to be filed.
    C. The FRC is Form 1120S and a TC 090 is present with a fiscal year end request, and no TC 055. The TC 054 is correct. 1. Close unpostable with URC 8.
    2. Request Rejects cancel the DLN and re-file (the taxpayer is not liable).
    3. Inform the taxpayer using the appropriate letter that the form was not required to be filed.
    D. The FRC is Form 1065. a. The return indicates a fiscal year end and no TC 055 is present on Master File. 1. Correspond (using the 3916C or appropriate letter) with the taxpayer requesting a copy of the approved Form 8716.
    2. Suspend the case for 60 days.
    The FRC is Form 1065. b. No TC 055 is present and the entity is a multi member LLC filing on December 31. 1. Close with URC 8.
    2. Request Rejects to cancel DLN and re-file.
    3. Inform the taxpayer using the appropriate letter the form was not required to be filed.
    E. No Reply  
    1. Input TC 016 to change to December.
    2. Close with URC 8.
    3. Request Rejects cancel the DLN and re-file.
    F. TC 055 is present but reversed with a TC 057.   1. Research for the cause of the TC 057. ESTAB for the DLN of the TC 057, if necessary. If TC 057 matches the TC 055 DLN, it is not necessary to ESTAB.
    2. If the TC 057 is not valid, re-input the TC 055, using a Dummy Form 8716 (suppress notice with PSC>Z) as the source document, with the original effective date and FY requested.
    3. Close with URC 0 and cycle appropriately.
    4. If TC 057 is valid, correspond, (using the appropriate letter) with the taxpayer informing them that their Section 444 was terminated.
    5. Suspend for 60 days.
    G. No TC 055 is present, but prior to 1988 indicates the taxpayer has filed Form 8752.   1. Input the TC 055, using a Dummy Form 8716 as the source document (suppress notice with PSC>Z) , with the original effective date and FY requested. If the original effective date is not available, then use the year of the first filed Form 8752.
    2. Close with URC 0, and cycle appropriately.
    H. Taxpayer files other than Form 1120S or Form 1065. They are not liable for the Form 8752. 1. Close with URC 8.
    2. Request Rejects, using appropriate routing Form, to cancel DLN and refund the payment. (Taxpayer not liable).
    3. Inform the taxpayer (using the 3916C or appropriate letter) the form was not required to be filed.
    I. Taxpayer responds to any of the above scenarios with a copy of their approved Form 8716, CP notice, or IRS letter granting the FYM.   1. Input a TC 055 for the requested tax year end using the original effective date and suppress the notice with PSC>Z.
    2. Close with URC 0, and cycle appropriately.
    J. Taxpayer responds with a timely Form 8716 filed pursuant to Section 301.9100-2 of the Income Tax Regulations.   1. Input a TC 055 for the requested tax year end.
    2. Close with URC 0, and cycle appropriately.
    K. Taxpayer is a Personal Service Corporation (PSC) 1120-19. TC 055 is present. PSCs are not liable for Form 8752.
    1. Input TC 052 to reverse TC 055.
    2. Input TC 054, using a dummy Form 8716 and suppress the notice (PSC>Z), and cycle appropriately.
    3. Close with URC 8.
    4. Request Rejects, using appropriate routing form, to cancel the DLN and refund payment.
    5. Correspond with the taxpayer informing them they are not liable to file Form 8752.
    L. Taxpayer responds with a Form 8716 that cannot be accepted.   1. Input a TC 058.
    2. Close with URC 8.
    3. Request Rejects, using appropriate routing form, to cancel DLN and re-file. (Taxpayer not liable).

    Note:

    See Exhibit 3.13.222-4 for additional instructions for creating a dummy Form 8716.
    See IRM 3.13.222.107 for processing Form 8716 and IRM 3.13.222.108 for processing Form 2553.

Reserved

  1. Reserved.

UPC 329 RC 1- Form 7004, 1041, 1065, or 1120 - NO EO FR

  1. There is a new 2016 revision of Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns. See Form 7004. For extension dates refer to IRM 3.11.212.4.2.1

  2. UPC 329 RC 1, Form 7004, Form 1041, Form 1065, or Form 1120 and the BMF has no EO filing requirements. Use the following table to resolve this unpostable condition:

    Note:

    These instructions do not apply to LLCs.

    IF the UNP is Form 7004, and AND THEN
    A. A determination is made that the correct return was timely filed.   1. There is no need to correspond with the taxpayer.
    2. Close with URC D.
    B. Duplicate extension has posted.   Close with URC D.
    C. The Form 7004 is not timely filed.

    Note:

    Computer Condition Code (CCC) L is denied extension.

      Close with URC D.

    Note:

    Do not remake the TC 460.

    D. Research indicates the EIN is incorrect. a. Another EIN is found with the correct FR. 1. Close with URC 6.
    2. Inform the taxpayer of the correct EIN using the appropriate letter.
    Research indicates the EIN is incorrect. b. No EIN is found. 1. Assign a new EIN.
    2. Close with URC 6, and cycle appropriately.
    E. The account is newly assigned, no TC 150 has posted, and the name indicates the FR on IDRS are incorrect.