3.17.46 Automated Non-Master File Accounting

Manual Transmittal

December 10, 2018

Note:DO NOT REMOVE AND INSERT PAGES OR DISPOSE OF OBSOLETE TRANSMITTALS PRIOR TO 01-01-2019

Purpose

(1) This transmits revised IRM 3.17.46, Accounting and Data Control, Automated Non-Master File Accounting.

Material Changes

(1) Various editorial changes throughout text.

(2) Changed all references from Cincinnati to Kansas City and Cincinnati Submission Processing Center (CSPC) to Kansas City Submission Processing Center (KCSPC) throughout text due to the NMF processing transition to Kansas City effective November 1, 2018 and updated IRM 3.17.46.1.1, to reflect the NMF processing transition to KCSPC effective November 1, 2018.

(3) Updated IRM 3.17.46.1.3.3 to include the term privacy in the section title.

(4) Updated IRM 3.17.46.1.3.3(1) to include the term privacy in addition to security.

(5) Updated IRM 3.17.46.1.3.3 (3) to include Planning and Analysis Staff’s procedures for the IDRS security violation message "Unauthorized Access to This Account" ,

(6) Updated IRM 3.17.46.1.3.3(5) to change the narrative to correct privacy acronyms and the current privacy policy.

(7) IPU 18U0884 issued 05-31-2018 Added IRM 3.17.46.5.2 to provide instruction to input CVPN into the Form field.

(8) IPU 18U0884 issued 05-31-2018 Updated IRM 3.17.46.5.4 to change $1 billion to $100 billion due to IMF programming change.

(9) Revised IRM 3.17.46.5.4 (2) to remove Blocking Series: 900–919 with remittance.

(10) Updated IRM 3.17.46.5.4 (10) with Kansas City Submission Processing SOI Edit Unit's information.

(11) IPU 18U0884 issued 05-31-2018 Updated IRM 3.17.46.5.8(1) (b) to change $1 billion to $100 billion.

(12) Updated IRM 3.17.46.5.9 (3) to add note stating tax preparation firms may submit a list of taxpayers with a cover letter instead of filing separate Form 4868, Application for Automatic Extension of Time to File U. S. Individual Income Tax Return, to request a 6-month extension. These listings of taxpayers can only be processed for extensions without remittance.

(13) IPU 18U0884 issued 05-31-2018 Added IRM 3.17.46.5.13(5) (b) to provide instruction to input Title 31 into the Form field.

(14) IPU 18U0197 issued 01-30-2018 IRM 3.17.46.5.16.1(4) (c) Added to provide instructions to input a "R" in the Exception Code Field to restrict interest and penalty, for all RBA Overflow accounts.

(15) IPU 18U0197 issued 01-30-2018 IRM 3.17.46.5.16.2(4) (b) Added to provide instructions to input a "R" in the Exception Code Field to restrict interest and penalty, for all RPP-RBA accounts transferred to ANMF.

(16) Updated IRM 3.17.46.5.16 (6) (e) and (7) (e) to include 99999-99999 transcript.

(17) Removed IRM 3.17.46.5.18, Form 706, U.S. Estate Tax Return, Employee Stock Ownership Plans (ESOP) Elections, which was repealed in 1989.

(18) IPU 18U1099 issued 07-26-2018 IRM 3.17.46.5.20(3) Removed reference to Form 706NA since all Forms 706NA, U.S. Estate (and Generation-Skipping Transfer) Tax Return, are processed on BMF (Business Master File)

(19) IPU 18U0884 issued 05-31-2018 Updated IRM 3.17.46.5.20(8) to add note stating the account must be established using the name of the Trust (currently on page 3 of the Form 706-QDT), in care of the Trustee.

(20) IPU 18U1099 issued 07-26-2018 IRM 3.17.46.5.20(7) Updated note to add in put the information from line 1b, 4a, 4b, and 4c from page 1, Part I, General Information section in the cross-reference field.

(21) Revised IRM 3.17.46.5.21 (3) to update the Blocking Series with remittance: 600-699; without remittance: 000-099.

(22) Revised IRM 3.17.46.5.25 (3) to update the Blocking Series: 000–999.

(23) Revised IRM 3.17.46.5.28 (3) to update the Blocking Series with remittance: 400-499.

(24) Revised IRM 3.17.46.5.31 (3) to update the Blocking Series with remittance: 400-499.

(25) IPU 18U1462 issued 11-16-2018 Update IRM 3.17.46.6.7(10) (a) to provide correct HHS, Health and Human Services, address.

(26) IPU 18U0571 issued 04-02-2018 IRM 3.17.46.7.11(5) (e) to change ATSC (Atlanta Service Center)/CSCO (Compliance Services Collection Operations) fax number to (855) 233-8554.

(27) IPU 18U0884 issued 05-31-2018 Updated IRM 3.17.46.8.5(3) to change $1 billion to $100 billion.

(28) IPU 18U0884 issued 05-31-2018 Updated IRM 3.17.46.11.4(2) (g) to add indicate IRM 3.17.46.11.4, Credit Balances- Refund Returns in Section IV - Other remarks of Form 3753, Manual Refund Posting Voucher, or in the remarks section on Form 5792, Request for IDRS Generated Refund (IGR).

(29) Updated Exhibit 3.17.46-6, Abstract Chart to reflect the Blocking Series for Form 1040-NR, without remit 000-999, and with remit 600-699, Blocking Series for Form 8612 with remit 400-499

Effect on Other Documents

IRM 3.17.46, Automated Non-Master File Accounting, dated November 27, 2017 (effective January 1, 2018) is superseded. IRM Procedural Update (IPU) 18U0197 issued January 30, 2018, IPU 18U0571 issued April 2, 2018, IPU 18U0884 issued May 31, 2018, IPU 18U1099 issued July 26, 2018, and IPU 18U1462 issued November 16, 2018.

Audience

Kansas City Non Master-File (NMF) employees (in W&I)

Effective Date

(01-01-2019)

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

Program Scope and Objectives

  1. This IRM provides instructions for the accounting and data control of Non-Master File (NMF) accounts using the Automated Non-Master File (ANMF) system.

    Note:

    Any requests for a deviation of IRM 3.17.46 must be submitted in writing and signed by the Field Director, following instructions from IRM 1.11.2.2.4(3), Internal Management Documents System, Internal Revenue Manual (IRM) Process. Any disclosure issues will be coordinated by the program owner. No deviations can begin until reviewed by the program owner and approved at the Executive level.

  2. Audience: Kansas City Submission Processing Accounting Non-Master File

  3. Policy Owner: The Director of Submission Processing

  4. Program Owner: Submission Processing Accounting Control Section

Background

  1. Non-Master File (NMF) accounts are a collection of revenue accounting transactions whose sole purpose is to provide a means for the assessment of taxes and collection of revenue.

    1. Non-Master File is a system of accounting which provides for not only outstanding liabilities but for all types of return and tax adjustment processing.

    2. The account reflects an assessment of tax from a return or other source document and of itself may not represent the entire liability for a tax period. An additional tax assessment is established on the NMF database as a separate account.

    3. Under the manual system, the only control compilation of all actions relating to a taxpayer were Index Cards maintained in alphabetical order by Returns files. An Index Card was prepared for each return, abatement or assessment. Under the Automated Non-Master File (ANMF) system, all NMF actions relating to an established account are accessed through the Research screen using the taxpayer's primary key: taxpayer identification number (TIN), Master File Tax (MFT) and tax period. All NMF activity which is not processed through the ANMF system will continue to be indexed.

  2. Non-Master File processing provides an essential outlet for the Master File Automated Data Processing (ADP) system.

    1. It permits the rapid implementation of new tax laws that may require extensive modifications to the ADP system for which time or resources may not be available to timely make the changes.

    2. It permits the processing for those accounts which have an excessive number of transactions for the Master File to systemically handle.

    3. It permits the processing for those accounts which have an account balance too large for the Master File to systemically handle.

    4. It provides for immediate, legal assessments (within 24–36 hours), for those instances when the Master File would be too slow to post the assessment (4–6 weeks).

    5. Split Assessment Accounts – Accounts that were originally on the Master File as a joint entity with an action taken that affects only one spouse, i.e., an accepted offer in compromise, innocent spouse and bankruptcy on one taxpayer.

      Note:

      All Split Assessment accounts are now processed on the Individual Master File under MFT 31. A majority of accounts previously established on NMF were transferred to MFT 31 from September 2004 through December 2005.

    6. Reversal of Erroneous Abatements-Accounts that require reversal of erroneous abatements when the assessment statute expiration date (ASED) has expired.

    7. Processing Employee Plans and Exempt Organization Master File accounts.

      Note:

      All Form 5330 and Form 5500 Penalty Assessments are now processed on the Business Master File.

    8. Processing of Full Collection Child Support accounts.

Non-Master File (NMF) Transition
  1. As of November 1, 2018, all NMF processing will transition to the Kansas City Submission Processing Campus (KCSPC).

Non-Master File Theory
  1. Non-Master File assessments (IRC 6201) are made as remainder assessments. The term Remainder Assessments means that any credits that were previously assessed such as Withholding (previously assessed on the Form 941, Employer's Quarterly Federal Tax Return), Estimated Tax Credits (previously assessed on the Declaration of Estimated Tax), Gasoline Tax Credits (previously assessed on the Form 720 return) etc., are used to reduce the liability prior to assessment. The remainder amount is then the assessment amount.

  2. Prior to October 1, 1996, the distinction was made between Even Returns,Refund Returns and Full Paid Returns. The Index Card Database was used to post Even and Refund returns. These procedures no longer apply. All NMF assessments are now posted to the ANMF database. The only return information that is now processed to the Index Card System are Non-Remit Extensions of Time to File and Information Only returns.

  3. Supplemental assessments (IRC 6204) of tax liability plus penalties and interest are determined by Accounts Management, Collection, Appeals, Tax Exempt/Government Entities (TE/GE) or by the Examination function. Returns on which additional assessments have been determined will bear a Form 2859, Request for Quick or Prompt Assessment, or Form 5403, Appeals Closing Record, Form 5344, Examination Closing Record, Form 5599, TE/GE Examined Closing Record, Form 5650, EP Examined Closing Record, Form 5734, Non-Master File Assessment Voucher, Form 8278, Assessment and Abatement of Miscellaneous Civil Penalties, etc. The source document will indicate the tax liability to be assessed plus any interest or penalties to be assessed and will show the assessment document locator number (DLN).

    1. Additional assessments are made and journalized for the full amount shown on the label or assessment document. These assessments will not be posted to an existing NMF account. A new NMF account will be established using a new DLN.

    2. Accrual assessments of penalty, interest or collection costs will be posted to the existing NMF account as subsequent transactions.

  4. Over-assessments may be determined by Adjustments tax examiners, the Examination function, TE/GE or Appeals. Over-assessments are declared when it is determined that the total correct liability is something less than the previously determined total liability.

  5. When an over-assessment is determined, priority for application of the credit created by the over-assessment will be as follows:

    1. Abatement of the outstanding amounts created from the assessment document.

    2. Credit to any other outstanding liabilities for the same taxpayer for any taxable periods. The credit would be applied by the collection statute expiration date. The oldest 23C date will be paid first.

    3. Refund of any excess amount that is not needed for one or two above.

  6. Overpayments occur in Non-Master File when the total payments received from the taxpayer exceed the assessed amounts on the account including any accruals to be assessed. Overpayments will result in an account with an outstanding credit balance.

    1. When a credit balance is on the account, research is done to determine if the credit is needed on some other NMF account or MF account for the same taxpayer.

    2. If the credit is needed, a Debit and Credit Adjustment Voucher, Form 2424, Account Adjustment Voucher, and Form 3809, Miscellaneous Adjustment Voucher, is prepared to transfer the credit to the account with an outstanding liability.

  7. Priority for application of the credit created by the overpayment will be as follows:

    1. Credit to any other outstanding liabilities for the same taxpayer for any taxable periods. The credit would be applied by collection statute expiration date. The oldest 23C date will be paid first. If the credit is needed, a Form 3809 or a Form 2424 should be prepared to transfer the credit to the account needing the credit.

    2. Refund of any excess amount, a Form 5792, Request for IDRS Generated Refund, or Form 3753, Manual Refund Posting Voucher, should be used to issue the refund. Appropriate supporting documentation should be attached and forwarded to Accounting.

  8. Refund Check Cancellations

    1. Occasionally NMF checks are returned for cancellation. This is usually because an additional assessment has been made, the taxpayer wishes the proceeds to be applied to some other account or the taxpayer believes the tax computation is not correct. These cancelled checks become credits to be applied. Application could be to an additional assessment, to some other taxes the taxpayer owes or to some additional assessment that is yet to be made. If correct application cannot be determined at the time of cancellation, the credit should be controlled in Account 4970 (Unapplied Refund Reversals) until the proper application is determined, but no longer than one month.

  9. Undelivered Refund Checks

    1. Refund checks are undeliverable by the Post Office at times. These checks are returned to the Disbursing Office which in turn prepares a Consolidated Listing of NMF Checks and a Form 1098, Schedule of Cancelled Checks, for cancellation. Prior to 1986, Form 1664X, Undelivered Refund, was prepared. These documents are forwarded to the campuses. A file of all Consolidated Listings is maintained by the Refund Inquiry function.

    2. See IRM 21.4, Refund Inquiries, for further instructions to process undelivered refund checks.

  10. Certified Transcripts

    1. The taxpayer return is considered the account. Original assessments, additional assessment labels, overassessment labels and original refund amounts will be reflected on the return. The NMF account is considered the account receivable record which reflects assessment and subsequent payment transactions.

    2. When a request for a Certified transcript is received research of the ANMF system and/or the closed Unit Ledger Cards (ULC) is required for information such as subsequent payments, accruals and other transaction postings for the requested tax period.

    3. A Form 4340 (NMF), Certificate of Assessment, Payments, and Other Specified Matters, Certified Transcript can now be requested via ANMF in place of the Form 4340 that was generated from the CERTS application. The Form 4340 (NMF) reflects an assessment and any subsequent transactions to the assessment and may not represent the entire liability for a particular tax period.

      Note:

      All related accounts for the tax period must also be requested.

NMF Research Concepts
  1. The following are concepts needed to adjust or certify NMF accounts:

    1. The tax return or source document (such as a Form 5734, Non-Master File Assessment Voucher or Form 2859, Request for a Quick or Prompt Assessment) reflects all major activity that affects the original assessment. For example, if a tax return is audited by Examination, a Form 2859 will be attached to the return. The return is renumbered to reflect a "47" document code. Prior to NMF automation, a Unit Ledger Card would have been established under the manual system for the assessment. An assessment label would also be affixed if the assessment resulted from a DP (Data Processing) tax adjustment.

    2. If an examination or adjustment to the original assessment on the return results in an abatement of tax a Form 1331/ Form 1331B, Notice of Adjustment, is used to abate tax, penalty, and interest. Every Form 1331/ Form 1331B, is given a schedule number. The schedule number is a number which identifies and controls an overassessment of tax. The first four-digits of the schedule number identifies the year and cycle in which a Form 2188, Voucher and Schedule of Overpayments and Overassessments, was signed by the certifying officer. Form 1331/ Form 1331B are filed in schedule number sequence, usually behind the Form 2188 on which it was certified. An Index Card was prepared for each Form 1331/ Form 1331B certified. Now that accounts are established on the NMF database, the abatement schedule number can be secured by researching the transaction section of the account.

  2. Prior to NMF automation, ULCs were prepared only for returns which indicated a balance due. Full paid or non-taxable returns did not have a ULC prepared. Instead, a Form TY–32, Index Card, was prepared. Index Cards contained the taxpayer name, Taxpayer Identification Number (TIN), MFT, tax period, type of tax, and DLN of the assessment or adjustment document and were sent to Return Files. They were the central research point for obtaining the DLN to request the return or source document since all actions (other than subsequent transactions) resulted in an Index Card. Consequently, the Index File must still be researched prior to account certification or performing an adjustment, to ensure that an adjustment is not duplicated.

  3. Index Cards were not prepared for subsequent transactions. These actions were posted on the ULC and the source documents were filed in Block Slips (Form 2547). Research was done by locating the block slip control number referenced on the ULC.

  4. Since NMF automation, NMF returns, assessments and adjustments are contained on the database. Information Only returns, and NMF No-Remit Extensions of Time to File, are not input to the ANMF system. They will require preparation of Index Cards. The database will contain all 1300 accounts (including status 89), 1324 accounts (below Taxpayer Delinquent Account deferral), 1360 (installment agreement) and 1830 accounts (including reactivated 53'd accounts). However, the related Index Cards for the converted ULCs were not loaded onto the database.

Contingency Plan
  1. In the event of a major physical disaster at the Kansas City Submission Processing Campus, follow locally established Disaster Recovery procedures.

  2. In November 2002, ANMF database migrated from the Pyramid system at each campus to the Sun Enterprise platform which is housed at the Enterprise Computing Center in Memphis, Tennessee (ECC-MEM). Disaster Recovery procedures are maintained in the ANMF Service Level Agreement (SLA) for processing at the Enterprise Computing Center in Martinsburg, West Virginia (ECC-MTB) should a disaster occur at the Enterprise Computing Center in Memphis, Tennessee.

Authority

  1. 26 U.S. Code § 1362 - Election; revocation; termination

  2. 26 U.S. Code § 4103 - Certain additional persons liable for tax where willful failure to pay

  3. 26 U.S. Code § 4081 - Imposition of tax

  4. 26 U.S. Code § 5881 - Greenmail

  5. 26 U.S. Code § 5891 - Structured settlement factoring transactions

  6. 26 U.S. Code § 6201 - Assessment authority

  7. 26 U.S. Code § 6204 - Supplemental assessments

  8. 26 U.S. Code § 7508 - Time for performing certain acts postponed by reason of service in combat zone or contingency operation

  9. 26 U.S. Code § 7804 - Other personnel

    Note:

    This listing is not all-inclusive please see other authorities throughout.

Restructuring and Reform Act of 1998
  1. Section 3201 provides for a new IRC 6015 Relief from Joint and Several Liability. Taxpayers may elect under:

    1. IRC 6015 (b) for innocent spouse relief from deficiency.

    2. IRC 6015 (c) for allocation of deficiency between spouses.

    3. Where either of the above is denied, equitable relief, under IRC 6015 (f) may be granted on the deficiency and/or underpayment of the tax liability reported on this return.

  2. Statute of limitation for collection extended for the claimant spouse requesting the relief and only for the tax period requested. The collection statute is not extended for non-claimant spouse.

  3. RRA Sec. 3201(d)–a separate notice is required to each individual filing the joint return.

  4. The first notice will be issued normally on the joint liability. Review all “Fourth/Certified” notices for joint liability. In addition to the joint billing, each taxpayer must be separately notified of the joint liability. Prepare two additional joint notices. The address label affixed to each envelope must be addressed to each taxpayer separately and sent certified mail.

  5. Follow established procedures for certified mail out of the additional notices. Maintain a record of all certified mailing in NMF or follow any alternative method of recording and maintaining this information which is already in place in the campus.

Responsibilities

  1. The Non-Master File (NMF) function is responsible for all input to the ANMF system. They are responsible for original entry and key verification for all NMF assessments, the input of all subsequent payments, the research and issuance of NMF notices, the credit balance accounts, and working all daily, weekly and monthly reports.

  2. The NMF Account Specialist provides technical assistance in complex NMF issues, serves as NMF education coordinator, a classroom instructor, and a NMF TAS and Congressional case coordinator. See IRM 3.17.46.14, NMF Account Specialist, for additional information on the duties and responsibilities of the NMF Account Specialist .

  3. The Database Administrator (DBA) is the expert on technical matters related to the ANMF system and other NMF applications. They are also required to have a thorough knowledge of NMF principles and to maintain the integrity of the ANMF system at all times. See IRM 3.17.46.15, Database Administrator (DBA), for additional information on the duties and responsibilities of the DBA.

Strengthen Management Controls
  1. In accordance with Management Accountability Review (MAR) regulations, managers are responsible for ensuring that internal controls are effective and efficient in day-to-day operations and safeguard against waste, fraud and abuse. This is accomplished by conducting operational or management control reviews to identify weaknesses and mitigate known risks within the managers realm of responsibility.

  2. Managers must also perform program or spot reviews of incoming work for accuracy and completeness. Problems identified should be discussed with the appropriate functional area for corrective action.

  3. Spot Reviews of both incoming and outgoing work processed in the NMF function must be done weekly by the manager.

  4. At least one program review must be performed each quarter by the manager.

Separation of Duties
  1. Key duties and responsibilities in authorizing, processing, recording and reviewing transactions are separated among individuals. Duties need to be divided or segregated among different people to reduce the risk of error or fraud. No one individual should control all key aspects of a transaction or event. Separation of duties is necessary to maintain the integrity of the NMF database.

  2. Periodic reviews will be conducted to ensure that standards for internal control in the federal government are built into daily operations.

Privacy and Security Over Taxpayer Information, Returns and Documents
  1. Service officials and managers must communicate privacy and security standards to subordinate employees and establish methods to enforce them. Employees are responsible for taking required precautions in providing privacy and security for the documentation, information, and property which they handle in performing official duties.

  2. When using IDRS, only access those tax modules required to accomplish your official duties. All IDRS accesses are recorded for immediate review and to determine the accuracy of an adjustment. Any unauthorized access or browsing of tax modules by employees to satisfy personal curiosity or for fraudulent reasons are prohibited by IRS and are subject to disciplinary actions and/or dismissal from the Service.

  3. While using IDRS for NMF processing (notices, transcripts, return, etc.), NMF employees may come across some that are blocked on IDRS and can be identified by an IDRS security violation message, "Unauthorized Access to This Account." Forward the documentation (notice, transcript, return, etc.) to your manager. Managers will notify the local Planning & Analysis Staff who will scan the case and send encrypted information to the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ mailbox to request access to the account. Managers will retain the original documentation in a file awaiting access (can take up to 5 business days). Once notified access has been granted, the account can be worked following applicable procedures.

  4. Sensitive But Unclassified (SBU) data including Personally Identifiable Information (PII) and tax information, must be protected with encryption and/or access controls, limiting access only to approved personnel with a need to know. Refer to IRM 10.5.1, Privacy and Information Protection, Privacy Policy for guidance on protecting and safeguarding the privacy of SBU data regardless of its format and when transmitting through email or Enterprise Electronic Fax (EEFax) system. If you suspect or know of a potential information loss the following link will provide you with instructions to report the loss of sensitive information/PII: https://portal.ds.irsnet.gov/sites/vl003/lists/reportlossestheftsdisclosures/landingview.aspx

Glossary of Accounting Terms

  1. ABATEMENTS: To reduce an assessment of tax, penalty, or interest, when determined the assessment is incorrect. Abatements require the signature of the Certifying Officer and are supported by the legal document: Form 2188, Voucher and Schedule of Overpayment and Overassessment.

  2. ABSTRACTS: The detailed breakdown of revenue receipts within the 7 major tax classes, particularly within the Excise Classification. Abstracting identifies the specific type of tax collected and directs it to the proper appropriation account set by Congressional Act.

  3. ADVANCE PAYMENT: A payment made for an anticipated predetermined deficiency prior to the actual additional tax assessment.

  4. ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES (ATF): A bureau within the Department of Justice with responsibility for monitoring the manufacture and sale of Alcohol, Tobacco Firearms, and Explosives.

  5. AREA OFFICE: An office of IRS located in a principal city for each state.

  6. ASSESSMENT: Amount of tax, fees, interest or penalty charged to a taxpayer.

  7. ASSESSMENT CERTIFICATE: To impose a tax as authorized by the Internal Revenue Code. Assessments are supported by a summary record of assessment signed by an appointed assessment officer.

  8. AUDIT TRAIL: Control of source documents, cross-reference from one type of action to another to provide a means for retrieval.

  9. BALANCE DUE: Amounts of tax, interest, penalty and/or other receivables that remain unpaid.

  10. BANKRUPTCY: When a discharge of debt is granted by the court, it relieves the debtor of any personal liability of the debt. A discharge does not affect all debt. In joint liability cases, if only one spouse is discharged of the debt then the other is not affected by the discharge and remains liable.

  11. CALENDAR YEAR: Twelve consecutive months ending December 31.

  12. COMMAND CODE (CC): A five or six-character code used to initiate contact with IDRS.

  13. COMPUTER PARAGRAPH NOTICE (CP): A computer generated message, which generates a notice resulting from an analysis of the taxpayer's account, used to notify the taxpayer of a balance due, refund, or no balance status.

  14. CREDIT BALANCE: A condition in which the amounts of credit on a tax account exceed the balance due.

  15. CULPABLE SPOUSE: During the examination of a joint return, if a culpable party is determined, Examination/Appeals will prepare assessment documents to assess the culpable spouse. This type of assessment is processed to the Individual Master File (IMF) MFT 31.

  16. DAILY ASSESSMENTS: An assessment which is prejournalized.

  17. DATA CONTROL: Procedures designed to put all documents under control to assure that all documents are processed.

  18. DEBIT BALANCE: A condition in which the balance due exceeds the total amount of credits.

  19. DEPOSIT DATE: The calendar date coinciding with the Julian Date in the DLN.

  20. DEPOSIT FUND COLLECTIONS: Account established to control receipts held in suspense, pending some other action.

  21. DEPOSIT TICKET: The form the Deposit Function is required to prepare to deposit each day's balanced remittances.

  22. DISHONORED CHECKS: Depositories return unprocessable checks to our Accounting Branch by charging these items against the Treasury General Account (TGA) as unpaid checks—these charge backs are due to the Deposit Function's erroneous encoding, lack of encoding, taxpayer insufficient funds etc.

  23. DOCUMENT: A business form, voucher, or written evidence of a transaction.

  24. DOCUMENT CODE: The fourth and fifth-digits of the DLN which identify the type of document used to record tax data information on a taxpayer's account. For example, doc. code 41 identifies Form 941, Employer's Quarterly Federal Tax Return. Refer to Document 6209, IRS Processing Codes and Information, for a complete listing of doc. codes.

  25. DOCUMENT LOCATOR NUMBER (DLN): A fifteen-digit number assigned to every return and document input through the ADP system that affects a taxpayer account. The document locator number is used to identify and locate the document.

  26. DOCUMENT REGISTER: A numerical listing of each item in a block of returns or documents. It is used as a transmittal on each block of remittance documents. Part 3 or a photo copy of the Form 813 is used to create the Master Control Record (MCR) on the Service Center Control File (SCCF). The Form 813, is used to clear the SCCF.

  27. DUE DATE: Prescribed date on which a calendar or fiscal year return must be filed.

  28. DUMMY TAX PERIOD ENDING: A 3000 series tax period ending used to establish an account on the ANMF system when that account already exists on the database causing a duplicate Primary Key condition. When establishing an account with a "dummy" tax period, be sure to input the actual period ending date of the assessment into the Actual Period Ending Date field of the entity.

  29. EMPLOYER IDENTIFICATION NUMBER: A nine-digit number used to identify a taxpayer's business account.

  30. ENTITY AREA: The face of an input document where the name, address, account number, tax period and other entity data may appear.

  31. FEDERAL TAX DEPOSIT (FTD): A system whereby taxpayers are required to make deposits of trust fund monies through local or commercial banks. These deposits are forwarded to Treasury which prepares a special Certificate of Deposit and places each item on a magnetic tape. These tapes are then shipped to Enterprise Computing Center at Martinsburg (ECC-MTB) for posting to the taxpayer's account.

    Note:

    The FTD system has been merged with the EFPPS (Electronic Federal Payment Posting System).

  32. FILE LOCATION CODE (FLC): The first two-digits of the DLN assigned to identify the district office related to the processing campus.

  33. FISCAL YEAR (FY): Twelve consecutive months ending on the last day of any month other than December.

  34. FREEZE CODE: A code restricting the Master File from refunding or offsetting from an account.

  35. GOOD BLOCK PROOF (GBP): A copy of the Form 813 is used to clear the NMF DLN from the SCCF. This is referred to as a Good Block Proof (GBP).

    Note:

    As of January 2007, an ANMF/SCCF Interface provides for the systemic posting of Good Block Proof Records to clear the NMF SCCF.

  36. INNOCENT SPOUSE: When assessments are proposed against a joint account, one spouse may claim they had no knowledge of the filed return/information. If a determination is made in favor of the "innocent spouse," tax adjustments are made separately on IMF MFT 31 for the portion determined for each spouse.

  37. INTEGRATED DATA RETRIEVAL SYSTEM (IDRS): A computer system with the capability to instantaneously retrieve or update stored information which works in harmony with our Master File of taxpayer accounts. This system is aimed at quick resolution of problems and queries concerning current taxpayer accounts. It also furnishes information immediately for IRS personnel in their work assignments.

  38. INTEGRATED SUBMISSION AND REMITTANCE PROCESSING SYSTEM (ISRP): Replacement of the Distributed Input System (DIS) and Remittance Processing System (RPS) which interfaces with the computer room for processing returns and remittances to the Master File.

  39. JOURNALIZATION: The process of debiting and crediting General Ledger accounts. Every tax transaction that involves money must be journalized to maintain accounting control.

    Note:

    Effective May 2006, an ANMF/RACS (Revenue Accounting Control System) Interface provides for the internal (batch) journalization via RACS to the various General Ledger accounts. See IRM 3.17.46.1.5 (20) for ANMF SC RECAP description

  40. JULIAN DATE: A system of numbering the days of the year from 001 through 365 (or 366) and used as the 6th, 7th and 8th-digits of the DLN.

  41. MASTER FILE: Subsidiary records of taxpayers' accounts established and maintained on magnetic tape at the Enterprise Computing Center, Martinsburg, (ECC-MTB).

  42. MASTER FILE TAX CODE (MFT CODE): A two-digit number which identifies the type of tax.

  43. MASTER CONTROL RECORDS (MCR): A tape is created from a copy of Form 813. This tape will create the MCR on the SCCF.

  44. MICROFILM: A media to provide photographic records to printed data on a reduced scale.

  45. MM/DD/YYYY: The eight-digit format which identifies the month, day, and year, i.e., January 03, 1986 will be 01/03/1986.

  46. NAME CONTROL (ALSO REFERRED TO AS ALPHA): The first four letters or hyphens of the principal name of the taxpayer. Blank spaces will be included if the principal name consists of less than four-characters.

  47. NON-MASTER FILE: Subsidiary records of taxpayer's accounts which are not established and maintained on one of the Master Files. They were manually maintained for the liability period on Unit Ledger Cards prior to the ANMF System and are now maintained on the database since the automation.

  48. NON-REMITTANCE (N/R): Returns and documents received without a payment or an unacceptable form of payment are processed in the Non-Remittance Numbering Function and the assigned DLN Julian Date is a week-end date.

  49. OFFER-IN-COMPROMISE: A proposal for settlement of tax liability for an amount less than that previously assessed (or unassessed) or a liability for specific penalties assessed (or unassessed).

  50. PERIOD ENDING: The ending year and month indicating the period covered by a tax return, e.g., 8609 indicates a return for the period ended September 30, 1986. For the ANMF system, an eight-digit field in MMDDYYYY format.

  51. PETITIONING/NON-PETITIONING SPOUSE: When a statutory notice of deficiency has been issued on a joint return and only one spouse petitions the U. S. Tax Court, assessments will be made against the non-petitioning spouse and processed through IMF MFT 31.

  52. POSTING VOUCHERS: Various procedures require the Deposit Activity to prepare a source document (posting voucher) containing all the required information for input.

  53. PRESEARCH: The act of searching for required data not present on the source documents via the IDRS or ANMF terminals prior to the actual deposit of the remittance.

  54. RECAPITULATION: Balancing the summaries of remittances to the documents.

  55. RECONCILIATION: Resolving discrepancies within the total document count and money amount for each block.

  56. REFUND: Money returned to the taxpayer as a result of overpayment of a tax liability.

  57. REIMBURSABLE PROJECTS: A projects for which IRS is paid to perform the actual processing of other agencies' data.

  58. REJECT: A return or document determined to be unprocessable because of missing data, erroneous blocking, or incomplete information. The document is coded to reject by tax examiners and is placed on reject registers for correction by error perfection groups.

  59. REMITTANCE AMOUNT: An amount of money received in payment to taxes—may be a check, money order, cashier's check, or cash.

  60. REVENUE RECEIPTS: Monies collected in payment of tax liabilities. The net totals of Accounts 2100 and 2200.

  61. SEIZED PROPERTY: Circumstance(s) sometimes requires IRS to take possession of a delinquent taxpayer's property and sell it for payment of back taxes.

  62. SERVICE CENTER CONTROL FILE (SCCF): A Magnetic Tape Control System to record the receipt of Returns or documents into the processing pipeline, to record the process of the documents through the processing system and finally to record the fact that all items have been completed. The SCCF systems maintain separate totals for revenue receipt items and other items.

  63. SOCIAL SECURITY NUMBER: A nine-digit number used to identify an individual taxpayer account.

  64. SPOUSAL ASSESSMENT: During the examination of a joint return, the Appeals Office will assess both spouses separately for the same tax issue to the IMF MFT 31.

  65. STATUTE LIMITATIONS: The Internal Revenue Code states that the IRS will assess tax, refund credit, and collect taxes within a specific time frame. This limit is known as the "Statute of Limitations." The determination of a statute expiration differs from Assessment Statute Expiration Date (ASED), Refund Statute Expiration Date (RSED), and Collection Statute Expiration Date (CSED). See IRM 25.6, Statute of Limitations, for further information.

  66. SUBSEQUENT PAYMENT: A payment received for an account that has been assessed and the taxpayer has been billed.

  67. TAX CLASS: Revenue Receipts are categorized into seven major tax classes. These are: withholding, individual income, corporation income, excise, estate and gift, carriers tax and Federal Unemployment Tax.

  68. TAX PERIOD: A six-digit number which represents the end of the tax liability year for a return; and is designated by the year and month,

    Example:

    199912

  69. TAXPAYER: An entity liable for any type of Federal tax.

  70. TAXPAYER ADVOCATE SERVICE PROGRAM: A program established whereby taxpayers' problems can be referred and controlled until the problems are resolved.

  71. TAXPAYER DELINQUENT ACCOUNT (TDA): A computer generated printout indicating that the taxpayer's account has reached a delinquent status. TDAs are sent to the Compliance Services Campus Operations (CSCO) for collection action.

  72. TAXPAYER IDENTIFICATION NUMBER (TIN): Every taxpayer on the Master File has a permanent number for identification of the tax account. The employer identification number (EIN) is used to identify taxpayers on the Business Master File. The social security number (SSN) is used as the account number of the taxpayer on the Individual Master File. The format of these account numbers is:

    VALUE MEANING
    EIN nn-nnnnnnn
    SSN nnn-nn-nnnn
  73. TRANSACTION CODE (TC): A three-digit number which defines the precise nature of the transaction. For example, TC 150 indicates "Return Filed and Tax Liability Assessed." Refer to Document 6209, IRS Processing Codes and Information, for complete listing of transaction codes.

  74. UNIDENTIFIED REMITTANCE (UR): Remittances without the necessary identification to apply to a Master File or a Non-Master File account.

  75. UNIDENTIFIED REMITTANCE FILE (URF): A separate file within the Integrated Data Retrieval System containing all remittances received that cannot be immediately identified or applied. Each record within the file contains the URF control number, amount or remittance, type of remittance, received date, taxpayer's name and other identifying information, if known.

  76. UNIT LEDGER CARD (ULC): Account cards that were used prior to the ANMF System to record all transactions related to a tax liability maintained manually.

  77. USER FRIENDLY TRANSCRIPT: this transcript, similar to a MFTRX, can be sent to the taxpayer.

  78. WEEKLY ASSESSMENTS: An assessment which is post journalized.

  79. WITH REMITTANCE (W/R): Any document received with cash, check, money order or other forms of payment.

Glossary of Computer Terms

  1. Any term in all capital letters is a data element within the system. Any term in lower case letters is the title of screen, field, or a printed report or output. Asterisk (*) terms are simply definitions.

  2. ABBREVIATED-TXPYR-NMF-ACCT-REC—Contains only the entity and transaction information records. No entity change or status change information is included.

  3. ABSTRACT-NUMBER—A three-digit number used to abstract revenue receipts. For values refer to the most current version of the "Abstract Chart" See Exhibit 3.17.46-6.

  4. ACCOUNT-BALANCE-AMOUNT—The current taxpayer account balance.

  5. ACCOUNT-BALANCE-TOTAL—The sum of the ACCOUNT-BALANCE-AMOUNT, ACCRUED-FTP-PENALTY-AMOUNT and ACCRUED-INTEREST-AMOUNT.

  6. ACCOUNT-BALANCE-UPDATE-DATE—Date of last taxpayer account balance update.

  7. ACCOUNT-UNCOLLECTIBLE-STAT-DT —The date of the posted transaction which changes the taxpayer account status to uncollectible.

  8. ACCOUNTING-VALIDATION-GROUP—Accounting information from NMF assessment documents which relates to the taxpayer entity and requires validation.

  9. ACCOUNTING-VERIFICATION-GROUP—Accounting information from NMF assessment documents which relates to the taxpayer entity and requires verification.

  10. Accounts Flagged for Notice/TDA—Weekly list of NMF accounts identified during the weekly analysis on which a 1st, 4th, or TDA Notice is being generated.

  11. ACCOUNTS-MAINTENANCE-RECORD—Various listings and transcripts of taxpayer NMF accounts requiring maintenance; i.e., analysis and/or adjustments.

  12. Accounts with Reversal Code Problems—List of reversal transaction codes for which no matching transaction is identified on the account. System generated penalty and interest is restricted on accounts containing these erroneous transactions. The list is used in conjunction with "REV ERROR" transcripts to manually calculate penalty and interest accruals, issue notices and adjust these accounts to correct these erroneous transactions.

  13. ACCRUED-FTP-PENALTY-AMOUNT—Amount of failure to pay penalty accrued.

  14. ACCRUED-FTP-PENALTY-DATE—Date through which failure to pay penalty has been accrued.

  15. ACCRUED-INTEREST-AMOUNT—Amount of interest accrued.

  16. ACCRUED-INTEREST-DATE—Date through which accrued interest has been computed.

  17. ADP-DAILY-TRANSACTION-GROUP-TRANSACTION–
    INFORMATION-RECORDs which are input from pre-journalized "Daily" assessments and the matching ENTITY-INFORMATION-RECORD.

  18. ADP-TRANSACTION-GROUP-TRANSACTION-INFORMATION–
    RECORDS which are input from routine "Weekly" assessments and subsequent transaction documents for post journalization and the matching ENTITY–INFORMATION–RECORD and POST–TRANSACTION–INFORMATION–RECORD.

  19. AGED-DAY-NUMBER—The number of days a record has remained in process (AGED). The number of days a transaction has been unpostable or the number of days since a block of documents was input.

  20. ANMF-SC-RECAP - The ANMF SERVICE CENTER (SC) RECAP OF ASSESSMENTS, ABATEMENTS, AND OTHER POST-JOURNALIZED TRANSACTIONS summarizes the data on the various NMF Recaps generated daily and sorts it into Revenue Accounting and Control System (RACS) Line Numbers for batch (internal) journalization via the RACS database. This eliminates the manual journalization from the NMF Recaps.

  21. ANMF SC RECAP Problem Report - Identifies those transactions that posted to the ANMF database, but did not meet the criteria for RACS batch journalization because it would have posted to an incorrect General Ledger Account.

  22. AREA-OFFICE-CODE—A two-digit code designating the area office. The first and second-digit of the Document Locator Number.

  23. ASSESSMENT-TYPE-INDICATOR—Indicates the type of assessment.

    VALUES MEANINGS
    P Prompt Assessment
    Q Quick Assessment
    J Jeopardy or Termination Assessment
    R Regular Assessment
  24. BLOCKING-SERIES-NUMBER—The 9th, 10th and 11th-digits of the DOCUMENT–LOCATOR–NUMBER.

  25. BOB Summary List—Listing of blocks of NMF assessment or subsequent transaction documents that DO NOT balance with the related document transmittal.

  26. BODC— a two-character field which identifies the Business Operating Division Code that has responsibility or ownership of the taxpayer(s) account. See codes in table below:

    BODC Business Operating Division
    SB Small Business/Self Employed
    WI Wage and Investment Income
    TE Tax Exempt and Government Entity
    LM Large Business and International
  27. BODCC— Business Operating Division Client Code. This three-character field which may be alpha, numeric, or both categorizes the taxpayer(s) account into a client or sub-group within the Business Operating Division Code.

  28. Certified Mail List—Weekly list of notices requiring certified mail handling. Includes all final notices before seizure, Estate and Gift (E&G), any first notice where assessment requires immediate TDA and all fourth notices.

  29. CITY-ADDRESS—The taxpayer's city address.

  30. CIVIL-PENALTY-REFERENCE-NUMBER —Three-digit number which identifies the type of civil penalty assessed.

    VALUES MEANINGS
    628 TEFRA IRC 6700
    666 TEFRA IRC 6702
    632 TEFRA IRC 6705
    634 TEFRA IRC 6707
    636 TEFRA IRC 6708
    613 TEFRA IRC 6679
    616 TEFRA IRC 6682
    624 TEFRA IRC 6695(a)–(e)
    626 TEFRA IRC 6695(f)
  31. CLAIM-ADJUSTMENT-PENDING-DATE —The date the taxpayer's claim for adjustment is submitted.

  32. CLOSED-ACCOUNT-RECALL-REQ-REC —Record input to request recall of a closed NMF taxpayer account from the CLOSED-NMF-TAXPAYER-INFO-FILE.

  33. COLLECTION LOCATION CODE— (CLC) Beginning in 2002 the CLC replaces the TDA/Taxpayer Delinquency Investigation (TDI) or Secondary Location Code and will identify the Small Business and Self-Employed (SB/SE) or Wage and Investment (W&I) Area Office (AO) controlling the collection case. The CLC will NEVER reflect a Tax Exempt (TE) or Large Business and International (LB&I) Area Office.

  34. *Collection Closing Code—The closing code with certain transaction codes (TC 470, TC 520 and TC 530) to further describe the action. See the most current version of the Document 6209, IRS Processing Codes and Information, for values and meanings.

  35. CSO-REQUEST-STATE-NAME—Two-character abbreviation for the State requesting assessment of Child Support Obligation (CSO). See the most current version of Document 7475, State and Address Abbreviations Major City Codes (MCCs), ZIP Codes and Countries, for the values and meanings.

  36. CURRENT-ASSESSMENT-DATE—The assessment date currently assigned by the RACS system. The date is set weekly from the system date. All NMF assessments which are not journalized by RACS prior to NMF processing are assigned this date as the NMF–ASSESSMENT–DATE and the TRANSACTION–DATE. This is the date that the assessment is recorded and certified.

  37. *Cursor—A visual indicator on a video screen showing position of the next entry.

  38. *Daily Assessment—Assessments which are pre-journalized when automated (MF or NMF) processing will not meet a previously determined 23C Assessment Date. This may include Prompt, Jeopardy, Termination and Quick assessments.

  39. DOCUMENT-CODE—The 4th and 5th-digits of the Document Locator Number.

  40. *Document Locator Number—A 15-digit number used to locate and/or control returns and documents affecting the taxpayer's account.

  41. DOCUMENT-TRANSMITTAL-CREDIT-AMT— The credit amount from the document transmittal.

  42. DOCUMENT-TRANSMITTAL-DEBIT-AMT— The debit amount from the document transmittal.

  43. DOCUMENT-TRANSMITTAL-ITEM-CNT— Item count of the documents included on the document transmittal.

  44. DOCUMENT-TRANSMITTAL-RECORD— NMF assessment and subsequent transaction block control information from the Form 813, Document Register. Used to balance blocks of documents and to ensure timely processing.

  45. ENTITY-INFORMATION-RECORD—Taxpayer entity information from NMF assessment documents.

  46. EXCEPTION-CODE-IND—Indicator used to identify accounts that will have exception processing.

    VALUES MEANINGS
    I Non-compute of Interest accruals
    R Non-Compute of Interest and penalty accruals
    P Non-compute of Penalty accruals
    M Manual Computation of Interest and Penalty, No Notice Generated
    U Update penalty and interest accruals
  47. FIRST-NAME-LINE—First name line of a TAXPAYER–NMF–ACCOUNT–RECORD. Includes first name, middle name or middle initial if available, and last name of individual taxpayer; if business, the business name. This line consists of 25-characters.

  48. *First Notice Date—The 23C date (used for mailing the first notice).

  49. FIRST-NOTICE-SC-ADDRESS-IND —Indicator to determine the Campus return address for inclusion on first notices.

    VALUES MEANINGS
    09 Kansas City
  50. HISTORY-DATE—The date that the ACCOUNT-HISTORY-RECORD is input to the system.

  51. IRS-EMPLOYEE-NUMBER—Ten-digit number identifying an IRS employee. Includes the organization code and the individual identification number. May also be used to identify transcript requests generated during transaction processing.

    VALUES MEANINGS
    NNNNNNNNNN, Input by Employee
    NNNNNNNNBB or, Input by Employee
    NNNNNBBBBB Input by Employee
    9999–9999 System Generated for Pre-ADP transactions Old Load Screen
    OCSP System Generated for Outer Continental Shelf Processing
    UPC 099 System Generated for 099 Unpostable condition
    UPC 000 System Generated for 000 Unpostable condition
    UPC 010 System Generated for 010 Unpostable condition
    UPC 014 System Generated for 014 Unpostable condition
    UPC 009 System Generated for 009 Unpostable condition
  52. JOURNAL-NUMBER—The fifteen-digit number assigned by the RACS function to each RACS summary.

    VALUES MEANINGS
    position 1–3 RACS screen number
    position 4–11 DATE
    position 12–15 Sequence number
  53. JULIAN-DATE—The sixth, seventh and eighth-digits of the Document Locator Number. Used as the control date

    VALUES MEANINGS
    001–366 Julian Date
    401–766 IDRS incremented Julian Date
  54. MFT-CODE—Master–File tax code used to identify the type of assessment. See IRM Exhibit 3.17.46-5 or Section 2 in the Document 6209, IRS Processing Codes and Information.

  55. NAME-CONTROL—Four alpha/numeric-characters derived from the taxpayer's surname or business name.

  56. NMF-ACCOUNT-HISTORY-LINE —Record containing history information relating to accounts maintenance activity which will affect an NMF taxpayer account.

  57. NMF-ACCOUNT-HISTORY-RECORD —History information relating to accounts maintenance activity which will affect the NMF taxpayer account. Includes the input date.

  58. NMF-ACCOUNT-STATUS-CODE— Code identifying the status of a taxpayer NMF account.

    VALUES MEANINGS
    21 First Notice
    22 Delinquent (TDA)
    24 Below TDA Tolerance
    53 Currently Non Collectible
    58 Fourth Notice
    60 Installment Agreement
    71 Offer In Compromise
    89 Suspense
    99 Account Transferred Out
  59. NMF-ACCOUNT-TRANSACTION-RECORD —Debit, credit and transaction information which affect the balance or status of NMF taxpayer account.

  60. NMF-ACCOUNT-TRANSCRIPT-RECORD—NMF account transcript used to provide taxpayer account information for case processing by campus and area office personnel. May be requested by IRS employees or generated when specific accounts require accounts maintenance action.

  61. NMF-ACCOUNT-TRANSCRIPT-REQ-REC— Requests input from area office and campus personnel for an NMF account transcript.

  62. NMF Accounts Below Tolerance for Notice/TDA Issuance (UNDER-TOLERANCE-LIST)—Weekly listing of NMF accounts on which the account balance is below the tolerance for TDA or notice issuance.

  63. NMF Accounts Flagged for Notices/TDAs—A list of accounts on which a notice or TDA is being issued.

  64. NMF Accounts Purged to Closed—A listing of abbreviated NMF account records which have been purged to the closed files. This list will contain accounts which have had an account balance of zero for 30-days or longer and no accrued penalty or interest is due.

  65. NMF-ACTUAL-PERIOD-ENDED-DATE— The actual date of the last period included in the NMF assessment. Presence is required when duplicate periods necessitate using a "dummy" period as the NMF-ASSESSMENT-PERIOD-ENDED-DT.

  66. NMF-ASSESSMENT-DATE—Date the NMF assessment is made and certified.

  67. NMF-ASSESSMENT-DOC-FORM-NUMBER— Form number of the NMF assessment document.

  68. NMF-ASSESSMENT-PERIOD-ENDED-DT— The ending date of the last period included in the NMF assessment. If an assessment is already present for the same taxpayer for the same period and MFT, then a "DUMMY" period must be assigned. In this case the NMF-ACTUAL-PERIOD-ENDED-DATE must also be included in the data input to establish the account on the ANMF system.

  69. NMF-ASSESSMENT-PERIOD-LINE— List of all periods included in the NMF assessment.

  70. NMF Assessment Recap—Summary of assessment transactions which have posted to an NMF taxpayer account. Original assessments are posted from NMF returns and Child Support Obligation (CSO) assessments. Deficiency assessments from NMF audit adjustment documents numbered with NMF deficiency blocking series; and NMF Assessment Vouchers, Form 5734. Used to effect assessment by the RACS System.

  71. NMF Block Listing—Listing of the DOCUMENT–INFORMATION–RECORD (Form 813) input to the ANMF System on a given day.

  72. NMF Cycle Proof Listing—Monthly listing of blocks of NMF documents which have been processed through the ANMF System, e.g., both transactions and block control were entered, and the block balanced allowing transactions to attempt to post to an account. Used to transmit blocks of processed documents to Returns Files after balancing is completed.

  73. *NMF-DATA-ENTRY-ERROR-MESSAGE —Error message displayed at the bottom of the screen during screen entry of NMF data.

  74. *NMF-DATA-ENTRY-ERROR-PROMPTS —A message displayed at the bottom of input screens to assist in screen entry of NMF data.

  75. NMF Entity Changes Unpostable—Daily list of entity change transactions which did not find a matching entity.

  76. NMF Entity Unpostable List—Listing of ENTITY-INFORMATION-RECORDs which duplicate the entity file key of an existing record in the NMF-TAXPAYER-INFORMATION-FILE and therefore will not be posted to the file.

  77. NMF-ERROR-CORRECTION-RECORD —Various listings of NMF transactions or blocks of transactions on which processing cannot be completed until some error condition is corrected.

  78. NMF Error Register Listing (UNMATCHED–TRANSACTION–LIST )—Listing of transaction records which did not match a document register record (Form 813) and, therefore, cannot be balanced. A separate listing is generated for both daily and weekly assessments.

  79. NMF-FIRST-NOTICE-PARAGRAPH-IND— Indicates the notice paragraph to be included on NMF first notice. Also identifies accounts on which accrued penalty/interest will not be computed and embezzlement cases.

    VALUES MEANINGS
    1 Trust Fund Recovery Penalty Statement
    2 TEFRA Penalty—6700—Abusive Tax Shelters
    3 Examination Deficiency
    4 Standard NMF Statement of Penalty/Interest Accruals
    6 TEFRA Penalty—6701—Aiding and Abetting Understatement of Tax Liability
    7 TEFRA Penalty—6702—Frivolous Tax Return
    8 Embezzlement
    X Non-Compute
  80. NMF-GENERAL-LEDGER-ACCOUNT-NUM— Account number of subsidiary files to the General Ledger.

    VALUES MEANINGS
    1321 NMF Accounts Receivable - Notice Status
    1322 NMF Accounts Receivable - TDA
    1324 NMF Accounts Receivable - Below TDA Tolerance
    1360 NMF Accounts Receivable - Installment Agreement
    1371 NMF Accounts Receivable - Offer-In-Compromise
    1389 NMF Accounts Receivable - Suspense
    1830 NMF Accounts Receivable- Inactive
  81. NMF-INTEREST-RATE—The rate of interest charged on underpayment.

  82. NMF Non-SCCF Recap—Summary of transactions posted to an NMF taxpayer account which do not affect the Service Center Control File. Includes abatement or reverse abatement transactions posted from NMF audit adjustment documents numbered with an overassessment blocking series per IRM 4.4.22, Non-Master File (NMF) Processing; penalty, interest, abatement or reverse abatement transactions posted from NMF DP adjustment documents; and transactions which write-off an NMF taxpayer account or reverse a write-off transaction, i.e., account uncollectible, statute expired, and underpayment cleared. Used to effect journalization by the RACS System. The system will generate three separate Non-SCCF Recaps:

    • NMF Non-SCCF Recap

    • NMF Non-SCCF Recap of 54/47 Doc. Code

    • NMF Non-SCCF Recap-OIC

  83. NMF Nullified Unpostable Transaction List—Listing generated daily of NMF unpostable transactions which have been nullified from the system.

  84. NMF Postings for Month of ____ (NMF-POSTED-TRANSACTION-LIST)—Listing of NMF transactions which have been posted to a taxpayer account for the month.

  85. NMF-PRINCIPAL-AMOUNT—The principal amount of assessments, abatements and universal credits on which interest and possible penalty is computed for a given period.

  86. NMF SCCF Recap—Summary of posted subsequent transactions which affect the Service Center Control File. Includes: subsequent payment, assessment of penalty or interest with subsequent payment, debit/credit transfer, refund, dishonored check, interest due taxpayer, or miscellaneous revenue receipts. Used to effect journalization by the RACS System.

  87. NMF-STATUS-CHANGE-SUMMARY —A 290 NMF Status Change list and a TC Code 53X recap is generated daily of accounts which have been changed from one status to another as the result of a certain transaction posting or when reactivating accounts from 53'd status.

  88. NMF Subsequent Transactions to Accounts in TDA Status list—Daily listing of transaction information for updating NMF IDRS taxpayer accounts.

  89. NMF-TRANSACTION-POSTING-IND —Indicator located on the Transaction Section of the Research screen which indicates which reports contain information from posting a transaction to an NMF taxpayer account.

    VALUES MEANINGS TRANSACTION INFORMATION INCLUDED ON
    P Posted NMF Postings for the Month List
    L Posted (Pre-ADP) NMF Postings for the Month List
    R RACS NMF Assessment Recap, NMF SCCF Recap or NMF NON–SCCF Summary other than TC 400 and the NMF Postings for the Month List
    S Status–Change 290 NMF Status Change List, TC CODE 53X Recap, and NMF Postings for the Month List
    T RACS–ACCT–
    TRANSFER
    NMF NON–SCCF Recap (TC 400) and NMF Postings for the Month List
    G Generated No Listing (TC does not change account balance or status.)
    Z Generated Complete Reversal of a Transaction
  90. NMF Trial Balance List—Monthly trial balance listing of each NMF taxpayer account by status for reconciling NMF subsidiary accounts to the General Ledger. A separate trial balance list is produced for Child Support Obligation accounts.

  91. NMF Unpostable Transaction List (UNPOSTABLE-SUMMARY-LIST )—Daily listing of transactions which did not find a matching entity for posting or meet an unpostable condition. The following NMF Unpostable Transaction lists are generated from the ANMF System:

    • NMF Unpostable Transaction list—Loaded Transactions

    • NMF Unpostable Transaction list—Daily

    • NMF Unpostable Transaction list (Contains the weekly unpostable transactions).

  92. NMF Unprocessed Block list—Weekly listing of blocks of NMF documents that have not been processed. This condition occurs when controlling information from the document register (Form 813) is input to the system but the related documents have not been input for processing.

  93. NMF Unverified Entity List (UNVERIFIED-ENTITY-LIST )—List of original assessments which were input but have not been key verified. A separate listing is generated for both the daily and weekly assessments.

  94. NOTICE-DATE—The date for mailing fourth and TDA notices. One week following the CURRENT-ASSESSMENT-DATE. The date is set weekly from the system date.

  95. Notice Due—Power of Attorney (POA) on File List—Weekly listing of NMF Accounts on which a notice is being issued and a Power of Attorney is indicated. Used to research the Centralized Authorization File (CAF) for POA name and address for sending copies of the notice.

  96. NOTICE-LIST-DTRM-IND—Indicator input with original assessments to determine which notice(s) and/or listing(s) to issue. Will be system generated for subsequent notices, TDAs and account maintenance listings.

    VALUES MEANINGS
    1 1st Notice
    4 4th Notice, Reformat 4th notice, Certified Mail List
    5 Child Support Letter
    7 Telephone Excise TDA
    8 Reformat 1st Notice
    9 Penalty/Interest Notice
    A Associate TDA Notice—(w/previous issue)
    B Reissue 1st Notice
    E Reissue 4th Notice
    F Reissue CNC Notice
    G Issue NMF 4th Notice
    I Reformat Installment Agreement Notice
    Q Accelerated TDA, Fourth Notice, Certified Mail List
    R Reissue TDA
    T Trust Fund Recovery Penalty TDA, First Notice, Certified Mail List
    U Under Tolerance List
    W Weekly TDA Notice
    X Reformat TDA
    Z Reformat Annual Reminder Notice, 1st Notice, Certified Mail List or TDA Notice
    Blank Hold Notice
  97. NOTICE-PARAGRAPH—Literal paragraph verbiage for inclusion on first and fourth notices.

  98. NOTICE-RECORD—First or fourth notice.

  99. NULLIFY-REASON-CODE—Three-digit code input through the Nullified Unpostable screen to identify the reason an unpostable transaction is nullified from the system.

    VALUES MEANINGS
    000 No account in the NMF Accounting System
    001 Transactions not compatible with account status
    012 Closed NMF Account not recalled
    040 TC 400 amount not equal to account balance
    053 Duplicate TC for Account Uncollectible
    086 Error on original entry
    099 NMF Account Transferred Out. No activity can post.
  100. NULLIFY-UNPOSTABLE-RECORD—Record input to nullify certain NMF unpostable transactions from the system.

  101. *Official IRS NMF Transcript—A transcript of an NMF account used to provide taxpayer account information for case processing by campus and area office personnel.

  102. OIC-STATUS-DATE—The date of the transaction which indicates that an offer in compromise has been filed.

  103. POA-INDICATOR—A "Y" is input to this field to indicate that a Power of Attorney or other third party authorization is present on the Centralized Authorization File (CAF).

  104. *Primary Key—Account TIN, MFT and TAX PERIOD ENDING.

  105. PRIMARY LOCATION CODE— Beginning in 2002, the Primary Location Code will consist of a Universal Location Code and Area Office. ULCAO ( the last two-digits will reflect the new AO code associated with the taxpayer's ULC and BOD.

  106. *Prompts—A computer language function that alerts the user to the need for additional input to continue processing data.

  107. RACS-INFORMATION-UPDATE-RECORD —Accounting and transaction information for updating the General Ledger account on the Revenue Accounting Control System.

  108. RACS-SUMMARY-SERIAL-NUMBER —Serial number systemically assigned to each RACS Summary generated. Numbering is sequential and begins with each Fiscal Year.

  109. Record–Oracle database management systems refer to rows as "record."

  110. Recap of Journaled RACS Summaries—A listing of all RACS summaries generated, including the journal number which is input through the UPDATE JRN'L screen following journalization by the RACS function.

  111. Registered Mail List—Weekly list of notices with foreign addresses which require registered mail handling.

  112. Report of Blocks Out of Balance—Listing of blocks of NMF assessment or subsequent transaction documents that do not balance with the related document transmittal. A separate listing is generated for both the daily and weekly assessments.

  113. *SCCF Adjustment Record—Adjustments to either correct or clear NMF blocks from the Service Center Control File (SCCF).

  114. SECOND-NAME-LINE—Second name line of a TAXPAYER–NMF–ACCOUNT–RECORD. Usually a continuation of the first name line. Consists of 25-alpha/numeric-characters.

  115. SECOND-NOTICE-DATE—The date of second notice issuance.

  116. SERVICE-CENTER-RETURN-ADDRESS —Return address for Kansas City Submission Processing Campus except for MFT 74 and 76 notices which have Ogden Submission Processing Campus address.

  117. STATUS-CHANGE-RECORD—Record generated by posting transaction codes which change the NMF taxpayer account status or when reactivating accounts from 53'd status to issue a TDA. Includes: claim/adjustment pending, offer in compromise, and account uncollectible processed in error. Used to format the 290 NMF Status Change list and the TC CODE 53X Recap for updating RACS.

  118. STREET-ADDRESS—The taxpayer's street address. Consists of 25-alpha/numeric-characters.

  119. TAXPAYER-IDENTIFICATION-NUMBER —Identification number assigned to each taxpayer, individual or business, in Social Security Number (SSN) or Employee Identification Number (EIN) format.

    VALUES MEANINGS
    NNN–NN–NNNN SSN
    NN–NNNNNNN EIN
    9NN–NN–NNNN Temporary SSN
  120. TAXPAYER-NMF-ACCOUNT-RECORD —Taxpayer NMF account entity, transaction and status change information.

  121. TDA-RECORD—Taxpayer Delinquent Account (TDA) notice.

  122. TOTAL-TRANSACTION-CREDIT-AMT —Total accumulated from the transaction amounts for credit transaction codes for one block of transaction documents.

  123. TOTAL-TRANSACTION DEBIT-AMT—Total accumulated from the transaction amounts for debit transaction codes for one block of transaction documents.

  124. TRANSACTION-AMOUNT—The debit or credit amount of the transaction.

  125. TRANSACTION-CODE—Three-digit code identifying the type of transaction. See Exhibit 3.17.46-7. for NMF transaction codes.

  126. TRANSACTION-CODE-DESCRIPTION—The literal description for the transaction code.

  127. TRANSACTION-DATE—The date the transaction is effective, i.e., remittance received date; assessment, abatement or refund certification date.

  128. TRANSACTION-POSTING-DATE—The date an NMF transaction posts to an NMF taxpayer account or is nullified from the system.

  129. TRANSCRIPT-CODE—The code which indicates what type of transcript will be generated.

    VALUES MEANINGS
    T Account Transfer
    1 Trust Fund Recovery Penalty NMF Account
    C Credit Balance
    M Accounts Maintenance
    O Offer In Compromise
    P Claim/Adjustment Pending
    2 Penalty/Interest Review
    D Small Debits Cleared
    S Desert Storm
    3 Spousal Assessment
  130. Transmittal Recap of RACS Summaries—List of RACS summaries generated on a given day. Used to transmit that day's Recaps (summaries) to the RACS function.

  131. TYPE-OF-TAX-ASSESSED-DESC —A narrative description for the type of tax assessed.

  132. ULC-ACCOUNT-BALANCE-AMOUNT —The account balance amount from the Unit Ledger Card.

  133. UNIVERSAL LOCATION CODE—Beginning in 2002 the ULCs will consist of the Pre-DOS (Disk Operating System)11 districts or Filing District Offices (FiDO) which was in place prior to District Office consolidation which took place in 1996 (65 District/Area Offices). There will also be a new District/Area Office Code of 78 for Washington D.C.

  134. UNPOSTABLE-TRANSACTION-CODES—Code which identifies the reason a transaction is unpostable.

    VALUES MEANINGS
    000 No account in the NMF–TAXPAYER–INFORMATION–FILE.
    002 TC 402—account status not 99.
    004 TC 480 general ledger account not "Active Accounts Receivable" or account status is installment (14).
    005 TC 481/482/483 account status not "OIC" (71).
    006 TC 530—amount not 0 and account status not "Uncollectible" (53).
    007 TC 531—account status not "Uncollectible" (53).
    008 TC 532—account status not "Uncollectible" or amount is not 0.
    009 TC 471/472/521/525—account not in status 89.
    010 Date of reversing TC does not match TC being reversed or amount is greater than TC being reversed; or reversal TC does not find related TC to reverse.
    011 TC 471 or TC 472 attempts to post to an account in 89 Status and transaction date is greater than or equal to the CLAIM–ADJUSTMENT–PENDING–DATE.
    014 TC 480/530—account in status 14 (Installment).
    015 TC 610—transaction date is NOT equal to or less than the TC 150 transaction date.
    016 TC 530—attempts to post to a zero balance account.
    017 Any subsequent transaction with doc. code 24, 27, 28, or 87 attempting to post and blocking series is not compatible with true tax class of Abstract Number.
    018 TC 470 or TC 520 attempts to post and there is no TC 531 present.
    019 TC 531 attempts to post to account in credit balance.
    020 TC attempts to post to an account with an unreversed TC 608.
    021 TC 972 attempts to post to an account without a corresponding TC 971.
    022 TC 530 attempts to post to an account which contains an unreversed TC 520.
    040 TC 400—amount not equal to account balance amount.
    041 Duplicate transaction codes attempting to post to an account with the same transaction date and/or money amount
    047 TC 470—attempts to post and account was previous flagged for notice or TDA.
    053 TC 530—amount is 0 and account status is "Uncollectible" (53).
    099 TC not 402 and account status "Transferred Out" (99).
  135. Unprocessed Nullified Transaction List—Listing of NULLIFY–UNPOSTABLE–RECORDs which did not match an unpostable transaction and hence, were not processed (were not nullified from the system).

  136. Unprocessed Restricted Database Changes List—Listing of account change requests input by the DBA that have not been processed.

  137. USER-ENTRY-NAME (password)—The login name of the user originally entering a record, which is comprised of 7-alpha/numeric-characters.

  138. USER-LOGIN-NAME (login)—The login name assigned to each user having access to the system.

  139. XREF-TAXPAYER-INFORMATION-LINE —A four line field containing 100-alpha/numeric-characters used for taxpayer identifying information used to cross-reference related NMF taxpayer accounts, such as, innocent spouse, culpable spouse and related officers involved in Trust Fund Recovery Penalty cases.

  140. ZIP-CODE—A numeric identifier for the taxpayer's city and state.

    VALUES MEANINGS
    NNNNN, or numeric
    NNNNN–NNNN  

Acronyms

  1. The following table list the acronyms used throughout this IRM.

    ACRONYMS MEANINGS
    ASED Assessment Statute Expiration Date
    BOB Block Out of Balance
    CAF Centralized Authorization File
    CSCO Compliance Services Campus Operations
    CSED Collection Statute Expiration Date
    ERSED Erroneous Refund Statute Expiration Date
    ISRP Integrated Submission and Remittance Processing
    MAR Management Accountability Review
    RACS Revenue Accounting Control System
    REV PROC Revenue Procedures
    RSED Refund Statue Expiration Date
    SCCF Service Center Control File
    TEFRA Tax Equity and Fiscal Responsibility Act
    TIN Taxpayer Identification Number

Related Resources

  1. The following Submission Processing Design Center (SPDC), courses provide instructions for NMF processing. New hires must take this training within 30-days of reporting to the NMF team. Refresher training should be taken as needed at management’s discretion.

    1. Course 2415-001 (ELMS 10740), Non-Master File Processing Student Guide.

    2. Course 2415-003, Non-Master File Processing Job Aid.

  2. The following IRMs provide instructions for the actual terminal input to Integrated Data Retrieval System (IDRS).

    1. IRM 2.4.1, IDRS Terminal Input - Section Titles and Command Codes for IDRS Terminal Input

    2. IRM 2.4.9, Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG

    3. IRM 2.4.11, Command Code NMFTM

    4. IRM 2.4.14, Command Code NMFST

  3. The following IRMs provide additional instructions for NMF processing.

    • IRM 20.1, Penalty Handbook

    • IRM 20.2, Interest

    • IRM 21.4, Refund Inquiries

    • IRM 21.7.12, Non-Master File (NMF) Adjustments

    • IRM 25.23, Identity Protection and Victim Assistance

    • IRM 25.6, Statute of Limitations

    • IRM 3.11.25, Miscellaneous Tax Returns

    • IRM 3.17.21, Credit and Account Transfers

    • IRM 3.17.30, SC Data Controls

    • IRM 3.17.41, Accounting and Operating Reports

    • IRM 3.17.63, Redesigned Revenue Accounting Control System

    • IRM 3.17.64, Accounting Control General Ledger Policies and Procedures

    • IRM 3.17.79, Accounting Refund Transactions

    • IRM 3.17.80, Working and Monitoring Category D, Erroneous Refund Cases in Accounting Operations

    • IRM 3.17.243, Miscellaneous Accounting

    • IRM 3.17.244, Manual Assessments

    • IRM 3.24.37, General Instructions

    • IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates

    • IRM 4.4, AIMS Procedures and Processing Instructions

    • IRM 8.20, Account and Processing Support

    • IRM 10.5.4, Incident Management Program

    • IRM 13, Taxpayer Advocate Service

Journalization

  1. RACS replaces the various "paper" journal forms previously used to record accounting transactions. Journalization and posting to the General Ledger accounts is accomplished by input to RACS.

  2. Direct references to specific General Ledger accounts will be minimized. The IRM 3.17.63, Redesigned Revenue Accounting Control System, and IRM 3.17.64, Accounting Control General Ledger Policies and Procedures, provides further description of the accounts.

  3. All references to journalization mean input to RACS. All accounting transactions must be journalized to ensure effective accounting control. Prior to ANMF, all transactions were prejournalized. All NMF transactions will now be either pre-journalized or post journalized as dictated by the 23C date.

ANMF SC RECAP

  1. The ANMF SERVICE CENTER RECAP OF ASSESSMENTS, ABATEMENTS, AND OTHER POST-JOURNALIZED TRANSACTIONS, hereafter referred to as ANMF SC RECAP or ARECAP, was implemented on May 2, 2006. The report mimics the weekly IMF and Business Master File (BMF) SC RECAP with one exception – ANMF SC RECAP is processed daily. However, the 23C Date is the weekly 23C Date.

  2. The ANMF SC RECAP reflects the Weekly Posting Cycle with a Day portion (DD). The cycle begins on Friday and ends on Thursday. Effective January 1, 2012, Customer Account Data Engine 2 (CADE 2) will transition the IMF Legacy processing cycle from a Saturday - Sunday to a Friday - Thursday cycle, the DD and 23C date will change to coincide with CADE 2. The DD denotes the day of input to the ANMF database as follows:

    Day of Input to ANMF DD
    Friday 01
    Monday 02
    Tuesday 03
    Wednesday 04
    Thursday 05

    For example, since Friday begins the cycle and is DD 01, it will appear on the ANMF SC RECAP as Cycle 20120201.

    The print date of the ANMF SC RECAP is the same print date on the NMF or RACS Recaps, thereby providing an audit trail.

  3. The ANMF SC RECAP summarizes the data on the NMF or RACS Recaps and records it into the appropriate RACS Line Number which is linked to the various General Ledger Accounts within the RACS database. A file is sent to the Detroit Computing Center (DCC) for internal or batch journalization via RACS which occurs two-days after input to ANMF. For instance, if Friday is the day of input to ANMF, the ANMF SC RECAP is printed on Monday, then RACS will journal on Tuesday. See Exhibit 3.17.46-9.

  4. RACS created two new batch journals – journal 142 for the Weekly Assessment data and journal 141 for the "Default" or remaining data. During month-end processing, journal 142 will recognize the 23C Date as a future journal while journal 141 will recognize the "Default" data as current. This minimizes the reconciling items for month-end reporting on Form 3997, Reconciliation of General Ledger Accounts.

  5. The ANMF SC RECAP Problem Report identifies those transactions that posted to ANMF, but did not meet the criteria for RACS batch journalization, i.e., it would have posted to an incorrect General Ledger Account. This report is strictly for NMF analysis in determining corrective action and not intended for RACS.

  6. The ANMF Nightly Processing Menu has two new options, 30 and 31, to print the ANMF SC RECAP and ANMF SC RECAP Problem Report respectively.

Block Control

  1. RACS will receive blocks of documents and prepare the Form 813 if one is not present. Each document must be numbered. All debits and credits must be listed on the Form 813.

  2. When the Form 813 is completed, stamp Part 1 with the ANMF processing stamp and initial it when the function is performed. If the Form 813 contains pre-journalized items, be sure to annotate the Form 813 with the journal number, 23C date and NMF status at this time. If the Form 813 contains post journalized items, this information will be included on the various RACS Recaps and will be annotated on Form 813 at the time RACS receives the Recap. See IRM 3.17.46.4.4 (4) and (5) for further information.

    ANMF STAMP MEANINGS
    OE (original key entry)
    KV (key verification)
    PR (proof read)
    813 (Form 813 preparation and entry to the Form 813 Block Control)
  3. Choose the option NMF Block Control/Correction from the Journal Main menu. Input the following information to the Form 813 Block Control screen: See IRM 3.17.46.13.4 for entry information.

    • Form 813 date as transaction date

    • Form 813 DLN

    • Item count

    • Total debit, and

    • Total credit

  4. Initial the ANMF stamp for "813" after the Form 813 Block Control screen entries are completed.

  5. RACS is the only function that can enter, correct or change (UP–DATE) the Block Control information.

  6. Forward the Form 813 and related documents to NMF for further processing.

Pre-Journalization

  1. Pre-journalized items include all daily assessments, embezzlement cases, adjustments (ADJs), Revenue Procedures (Rev. Proc.) and closing agreements. See IRM 3.17.46.4.1 for further information.

  2. Pre-Journalized assessments are input through the Daily Assessment screens. The window will show the 23C date based on the current date and cannot be overlaid.

  3. Each block of pre-journalized assessment source documents should contain the following information:

    • 23C date

    • Journal clerk's initials

    • Journal number

    • NMF status

Post-Journalization

  1. Post-journalized items include all weekly assessments and all other subsequent transactions including payments which are not determined as advanced payments. See IRM 3.17.46.4.2 for further information.

  2. Post journalized assessments are input through the Weekly Assessments screen. The window will show a 23C date that cannot be overlaid.

  3. Any post-journalized action taken on ANMF (i.e., assessment, status change, subsequent transaction, account transfer-out, etc.) will generate a RACS Recap. All RACS Recaps are printed on 3 part paper. Part 1 is attached to the documents and retained in NMF. Maintain Part 2 of NMF or RACS Recaps as a clean copy for official file and association with the ANMF SC RECAP. Part 3 will be kept as a back-up in the event manual journalization is required.

  4. The ANMF SC RECAP summarizes the data on the NMF or RACS Recaps. The following is performed:

    1. Print 3 copies.

    2. Annotate the Abstract number from NMF or RACS Recaps onto bottom of Form 813.

    3. Verify Form 813 to the Transmittal of RACS Summaries for accuracy.

    4. Associate all 3 copies of ANMF SC RECAP with 3 copies of the Transmittal of RACS Summaries and Form 813.

    5. Route to RACS DBA for batch journalization.

    6. Receive a copy of the ANMF SC RECAP, Transmittal of RACS Summaries, and source journals 142 and 141 from RACS upon journalization.

    7. Associate with clean copy of NMF or RACS Recaps.

    8. Maintain for official file and audit trail.

  5. The ANMF SC RECAP Problem Report identifies those transactions that posted to the ANMF database, but did not meet the criteria for batch journalization.

    Note:

    Although any data on this report should be occasional, it is imperative that the report is printed daily since Nightly Processing may overlay any data.

    The following actions are required:

    1. Print 3 copies.

    2. Do not forward to RACS.

    3. Maintain a clean copy for association with ANMF SC RECAP.

    4. Research the DLN via ANMF.

    5. Pull the related NMF Recap for the DLN.

    6. Review document to determine the cause of the problem.

    7. Prepare and process appropriate document to reverse transaction if the original document was prepared incorrectly.

    8. Determine correct journal action and either forward the NMF Recap, or, prepare the appropriate document accordingly to RACS.

    9. Document all action taken for resolution in the remarks area of the ANMF SC RECAP Problem Report for audit trail.

    10. Maintain annotated copy and corrective action with its related NMF Recap for official file purposes.

    11. Contact HQ ANMF Analyst for guidance and if data appears daily on the report.

  6. The RACS DBA and/or Designated RACS Accounting Technician responsibilities are:

    1. Hold ANMF SC RECAP associated with Transmittal Recap of RACS Summaries and Form 813 for the next day.

    2. Verify the Run ID 760433420 YYCC (YY - Year and CC - Cycle) for batch journalization.

    3. Print 3 copies of the Posting Summary and Source Journal for 142 and 141.

    4. Verify the Run ID (Document number) as in item 2 above, Cycle/DD (Alternate Document number), and the 23C Date (Prepare Date) from the Source Journal to the ANMF SC RECAP for accuracy. For example, Friday’s input via ANMF dated December 30, 2011 will reflect Cycle and DD as 20120201 with a 23C Date of 01-23-2012.

    5. Annotate batch journals number 142 and 141 on all copies of the ANMF SC RECAP and the Transmittal Recap of RACS Summaries.

    6. Associate copy of ANMF SC RECAP and the Transmittal with either its related weekly 23C Certificate or in the same manner as the MF SC RECAPS are maintained for official files.

    7. Return a copy of ANMF SC RECAP, Posting Summary, and the Source Journals to NMF.

  7. Designated RACS Accounting Technicians will:

    1. Annotate the batch journal numbers on Form 813 for release to Data Control .

    2. Provide Data Control with a copy of the ANMF SC RECAP, Posting Summary and Source Journals.

    3. Input to the UPDATE JRN'L screen from the Transmittal Recap for the Recap of Journaled RACS Summaries - 142 Journal is for Assessments and 142 Journal for all else.

    Figure 3.17.46-1

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    1. Figure 3.17.46-2

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    Figure 3.17.46-9

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  8. If Batch Journalization of the ANMF SC RECAP fails at DCC and cannot be recovered, then route the preceding NMF or RACS RECAPS to RACS for manual post-journalization. These recaps will be forwarded under the cover of the Transmittal Recap of RACS Summaries which lists all RACS Summaries generated on a given day. RACS will verify receipt of all Recaps on the transmittal by signature and date.

  9. All assessments must be journalized to conform with the 23C date indicated on each Recap. This is the month the transaction posted to the taxpayer account.

    Note:

    The only exceptions would be items posting with a future 23C date.

    1. The ANMF SC RECAP batch journal 142 is governed by the 23C Date and meets conformity. Programming was designed to recognize a future 23C Date during month-end processing.

    2. Should a system failure occur, it will necessitate manual journalization from the NMF or RACS Recaps.

  10. If a system failure necessitates manual journalization, all NMF or RACS Recaps must be journalized the same month as the transaction date indicated on each Recap including the Recaps dated the first of the following month. This is the month the transaction posted to the taxpayer account. The ANMF SC RECAP was programmed to meet this criteria.

    Note:

    All NMF or RACS Recaps received in RACS should be journalized within three-days of receipt to ensure the timeliness of subsidiary balancing and to reduce the number of reconciled items for the month.

  11. After journalization, RACS will stamp the journal number on both parts 2 and 3 of the Recap and input the journal number to the UPDATE JRN'L screen (figure 3.17.46-10). Part 2 of the Recap is retained in RACS in summary number order. Part 3 is sent back to NMF, filed by journal number to use when balancing.

    Figure 3.17.46-10

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  12. Weekly, RACS receives an Unprocessed Block List and a Recap of Journaled RACS Summaries generated from ANMF.

    1. This tool aids in control for the work flow between the RACS and NMF functions.

      Figure 3.17.46-11

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    2. The Recap of Journaled RACS Summaries is a complete list of all RACS Recaps, including journal numbers, that have been input the previous day. This is a weekly list generated by the ANMF system and is used to control the work between the RACS and NMF functions.

  13. Daily, RACS receives an NMF Block Listing (figure 3.17.46-12) from the NMF DBA. RACS associates the listing with the related Form 813 and documents and forwards this package to NMF for input of the document transactions. If the one-day delay may jeopardize timely processing of any work, transmit the Form 813 and related documents via a Form 3210, Document Transmittal, or Form 10869, Returns or Other Documents Transmittal, as soon as the Form 813 is controlled on the system. Maintain a copy of the transmittal for document control on the NMF Block listing. Types of conditions where a one-day delay may cause concerns are as follows:

    • Month end processing

    • Notice issuance on weekends and holidays

    • Expedite cases

    • Workload inventories

    Figure 3.17.46-12

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Certification—General

  1. All assessments must be certified by signature of an authorized official on the Summary Record of Assessment (Form 23C, Assessment Certificate—Summary Record of Assessments). A signed Summary Record of Assessment authorizes issuance of notices and other collection actions (refer to IRC Regulations 301.6203–1).

  2. Most actions prescribed by this Chapter will be summarized on a Summary Record of Assessment by RACS.

  3. Some assessments are prescribed for expeditious action and will be certified on a daily basis. These assessments will require immediate preparation of the Summary Record of Assessment.

  4. Each block of assessment documents will have a Form 813. The Form 813 should be annotated with the following:

    • 23C Date

    • Journal Number

    • Journal clerk's initials

  5. The ANMF system has two types of assessments: pre-journalized and post-journalized. Form 813 for pre-journaled documents must be annotated with all the information in (4) above and must also include the NMF status. Post-journaled documents will generate a Recap, which will have the 23C date and the NMF status set by the system. The journal number and journal clerk's initials must be annotated on the Recap after journalization.

  6. The ANMF system will set the 23C date for three weeks in advance. The 23C date will be reset each week after the Thursday night processing is completed. Items input on Friday will carry the next 23C date set by the system.

Certification of Overassessments

  1. The following instructions pertain to existing NMF accounts on the ANMF System and those closed ULCs that should be reopened.

  2. Form 1331/ Form 1331B, Notice of Adjustment (posting copy), will be the posting document for the abatement. It will be received with the following documentation attached:

    1. The original assessment document or return with the overassessment label or stamp attached

      Note:

      If the original document cannot be obtained a dummy document will be prepared with documentation that the original cannot be located. If the original assessment is on ANMF, a copy of the Taxpayer correspondence, or other source document which supports the abatement may be attached.

    2. If credit amounts are to be applied to another Non-Master File or a Master File account, a Form 3809, Miscellaneous Adjustment Voucher, or Form 2424, Account Adjustment Voucher, will be prepared by the originator and attached to the Form 1331/ Form 1331B. The credit transfer information will be noted in the appropriate place on the Form 1331/ Form 1331B. The Form 3809 and Form 2424, both debit and credit portions, will be forwarded for processing. The NMF account will remain in a credit balance until the debit side of the Form 3809 or Form 2424 is posted. For credits, the 23C date of the assessment or the paid date(s) whichever is later, will be considered the paid date(s) of the credit.

    3. Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund, if the credit amount will be refunded.

    4. Other documentation, Form 3870, Request for Adjustment, requesting overassessment etc.

  3. The full amount of the overassessment will be listed as an abatement on both the Form 1331/ Form 1331B and overassessment label. If the abatement credit exceeds the balance of the account, the disposition of the credit must be entered in the appropriate portion of Section II of the Form 1331/ Form 1331B.

    Example:

    Refunds and accrued interest paid or the credit transferred areas

  4. List Form 1331/ Form 1331B on Form 813. The Form 3753, or Form 5792, will be listed on separate Form 813.

  5. The Manual Refund function will prepare Form 2188, Voucher and Schedule of Overpayment and Overassessments, from Section II of Form 1331/ Form 1331B—for the net decrease in liability (total of refund elimination plus credit; total of the abatement etc.)—to certify the amounts of overassessment on Form 813. Enter the schedule number and schedule date of Form 2188 on the Form 813, Form 1331/ Form 1331B and the Overassessment Sticker. Enter the schedule number on the posting copy of Form 1331/ Form 1331B.

  6. The refund amount will be scheduled on Form 1166, Refund Schedule. Copies of the refund document will be attached to the Form 1166 and to the Form 2188.

  7. Part 2 of Form 1331/ Form 1331B and the supporting documentation will be attached to the original assessment document and forwarded to RACS for input to the Form 813 Block Control screen. Part 1 of Form 1331/ Form 1331B goes to the taxpayer.

  8. The renumbered original assessment document, Form 813 and Form 1331/ Form 1331B part 2 will be forwarded to NMF for input of the abatement or credit through the SUBSEQUENT TRANSACTION INPUT screen.

    Note:

    Input the schedule date for ALL transactions, including TC 291 and TC 301.

  9. Enter the name/employee number of the initiator in the history area.

  10. Enter the schedule number into the Refund/Abatement Schedule Number field through the subsequent transaction screen of the related NMF account.

  11. The Manual Refund function will forward Form 1331/ Form 1331B, a copy of Form 1166, Form 3753 or Form 5792, and the related case files through RACS to the NMF function for simultaneous posting of the abatement and refund to the NMF account per IRM 3.17.79, Accounting Refund Transactions. NMF will input the appropriate transactions for credit, refunds, etc., to the NMF account through the SUBSEQUENT TRANSACTION INPUT screen.

NMF Service Center Control File: Abstracting

  1. The NMF Service Center Control File (SCCF) has been established to control NMF documents in process within the campus and to summarize collected revenue by type of tax.

  2. Entry on the control file is by Form 813 input through ISRP.

  3. Clearance from the control file is made from entries on the Block Summary on the reverse of Form 813 via command code (CC) SCFAJ by Data Control. Clearance normally requires re-input from this form of the identical money amount and item count shown on the Form 813 used to establish the control file. Information to complete the Block Summary is obtained from the pre-journalized documents or from post-journalized RACS Recap Summaries generated from the ANMF System.

    Note:

    An ANMF/SCCF Interface was implemented on January 5, 2007 for daily systemic posting of the Good Block Proof Records or 0-5 adjustments to the NMF SCCF. ANMF001 File is sent to ECC at MEM for input to the newly created SCF16 output file which produces a Run-to-Run Control Report, Error Report, and ANMF Input Recap Control Listing for use by the Data Control function. This process coincides with the ANMF/RACS Interface, i.e., ANMF SC RECAP, thereby minimizing reconciling items and manual SCFAJ adjustments.

    1. The money amount will be entered as one or more amounts identified by a specific code (abstract number) as entered in item (a) of the Block Summary; total of these amounts must equal that of item (d) credit or debit amounts applied to the NMF.

    2. If more than two abstract numbers and amounts are necessary, list each above block (a) on Form 813.

    3. Post-journalized RACS Recap Summaries may require partial block clearance from the NMF Service Center Control File. Care should be taken to maintain the balance of the control file item count and money amount if this occurs.

  4. Exceptions to the preceding are—

    1. If the block of returns represents refundable or non-remittance taxable returns, or blocks of audit or data processing adjustments (doc. code 47 or 54), enter "0" (zero) as the money amount of the abstract.

    2. The doc. code 47 or 54 entry will not bear an abstract number; the return blocks must bear a valid abstract number.

    3. Non-remittance returns and refundable returns with doc. codes that do not appear in the IRM 3.17.41, Accounting and Operating Reports, do not need an abstract code or zero money amount entry on Form 813.

  5. If a remittance should be processed to a Master File account but has been improperly numbered in an NMF block:

    1. Prepare Forms 813 listing each remittance amount.

    2. Renumber the document in the proper Master File series.

    3. Route to Data Control function for on-line SCCF adjustment.

    4. Cross-reference the two Form 813 to indicate the disposition and source of the return; reduce the item count on the original form by the number of all returns renumbered.

  6. If a return or remittance should be processed NMF but has been misblocked (numbered in an improper series):

    1. Prepare Forms 813 listing each remittance amount.

    2. Renumber the document in the proper NMF series.

    3. Route to Data Control function for on-line SCCF adjustment.

    4. Cross-reference the two Form 813 to indicate the disposition and source of the return; reduce the item count on the original form by the number of all returns renumbered.

  7. All collections, reversals or subsequent re-applications must be identified for reporting purposes by an abstract number. Abstract numbers can be computer generated for some documents, but must be manually determined and input to the system for others. The proper abstract numbers applicable to collections on the various returns and documents are listed in Exhibit 3.17.46-6 and may also be found in Accounting and Operating Reports IRM 3.17.41, Accounting and Operating Reports.

    1. Returns which report only a single type of tax (e.g., Form 1042 or Form 1040-NR) will have the abstract number generated and need no manual determination. Those returns reporting more than one type of tax (Form 11, Form 5330 or Form 4720), require manual determination of the payment by the specified abstract number.

    2. If the document is listed in Accounting and Operating Reports IRM 3.17.41, Accounting and Operating Reports, as requiring manual abstracting, entry of the total credit and specified abstract number must be shown in block "a" of the NMF Block Summary on the reverse of Form 813.

    3. If the block of returns or vouchers contains credits to more than one type of tax, enter the amount allocatable to each type, identified by the appropriate abstract number, in block "a" of the NMF Block Summary. The total amount entered must equal the amount of the credit being applied from the block as entered in block "d" .

    4. If the return is underpaid and requires multiple abstracts, enter the number beside the respective liabilities for entry onto the ANMF System. Allocate payments received sequentially starting with the lowest abstract number; do not attempt to prorate payments to all types of tax represented.

  8. Collections may be received for certain types of penalties for which the computer programs necessary for abstracting have not been completed, requiring a special manual compilation and reporting.

    Note:

    Items which require special manual compilation will be identified in other sections of this manual.

    1. Enter all collections for certain types of penalties for which computer abstract programs have not been completed on the reverse of Form 813 as abstract number 139, OTHER for Unidentified Collections.

    2. Prepare a register titled "Abstract of Specified Taxes and Penalties" . Accumulate figures and collections for each type of tax or penalty by the assigned abstract number by area on a monthly basis on the register.

Limitation on Assessment

  1. An assessment cannot be made after the statutory period of limitation has expired. The Submission Processing Director is required to report immediately upon discovery of cases in which the statutory period of limitations expires prior to assessment of deficiencies. When such a case comes to the attention of the deficiency clerk or accounting control clerk, follow local procedures and prepare Form 3210, Document Transmittal, Barred Statute Case Control and forward it to the Statute Unit. The Statute Unit will reply with the appropriate information to prepare a report for the Submission Processing Director on Form 9355, Barred Statute Report.

Reversing Erroneous Abatements

  1. General—This section provides instructions for processing non-rebate erroneous abatement cases in which Master File computer programming prevents the reversal of abatement transactions after the Statute of Limitations for Assessment has expired. These cases are limited to situations in which an erroneous abatement occurred due to a clerical error that served to reduce the tax liability of that account or another account, a bankruptcy discharge, or an unauthorized abatement that occurred after referral to the Department of Justice. See IRM 25.6.1.10.2.1.1, Reversal of Erroneous Abatement. The Service will treat the account as any other account where the original tax liability has never been paid. Refer to IRM 3.17.243.2, Reversal of Erroneous Abatements, for additional background information and Credit and Account Transfer procedures.

  2. The Scheduling function will receive the Form 3465 package and:

    • Have a DLN assigned to the Form 3465.

    • Use doc. code 54.

    • Use true tax class as the 1st-digit of the block series.

    • Prepare Form 813.

    • Prepare Form 2188 reversing the amount of the erroneous abatement by bracketing the amount.

    • Photocopy Form 3465 and the memo to the Accounting Operations Manager in the Kansas City Submission Processing Campus.

    • Attach the photocopy of Form 3465 and the original memorandum to the Accounting Operations Manager in the Kansas City Submission Processing Campus to the permanent file copy of the Form 2188.

    • Associate the photocopy of the Accounting Operations Manager memo with the original Form 3465 and forward with the Form 2188 to the Certifying Officer for signature.

    • Forward the Form 2188, original Form 3465 with Form 813, photocopy of the Accounting Operations Manager memo and the original letter to the taxpayer (if a notice is required) to the RACS function.

  3. RACS will input the Form 3465 to the Form 813 Block Control screen. The Form 3465 will be the source document used for input.

  4. The Form 514-B for the account transfer from MF will be processed following normal Transfer-in procedures. See IRM 3.17.46.5.16.

    1. NMF will load the Form 514-B into Status 89. A TC 470 must be input to the ANMF database along with the other transactions. With TC 470, use a closing code 90 and the current date as the transaction date. The TC 470 will prevent an erroneous notice from generating if the Form 514-B has a balance due or if the Form 3465 indicates "No Notice to Taxpayer."

    2. Code and edit any information necessary to accomplish the loading of the account.

    3. Establish the account using the actual tax period ending through the Load Old Accounts/Transfer-in screen.

    4. Establish the account using the Entity information from the Form 3465.

    5. Establish the account in Status 89.

    6. Input the Reinstated 23C date (usually more than 3 years old).

    7. Input the first notice date (MM/DD/YYYY) in the Cross Reference field. This will be recorded as an audit trail of the actual first notice date. Do not input any notice dates from the Form 514-B into the Second, Third, Fourth, TDA or 53'd Date fields. These may be entered later as History items.

    8. Use the TC 470 date as the Claim Adjustment Pending date.

  5. NMF will process the TC 860 through the Subsequent Transaction screen. The Form 514-B must be Loaded to the database prior to the input of TC 860. Form 3465 must contain the following:

    1. Transaction Code 860.

    2. Transaction date—use the date of the Form 3465

    3. Composite amount (tax, penalty and interest combined).

  6. Forward Form 3465 and all related documents to the NMF Accounts Maintenance function as soon as the TC 860 is input.

  7. The Accounts Maintenance function will analyze each Form 3465 TC 860 request, if the reversal account was on the MF and Form 3465 indicates "No Notice to the Taxpayer" :

    1. Request a transcript of the NMF account.

    2. Photocopy the Form 3465.

    3. Forward the transcript and the copy of Form 3465 to the originator for transfer of the credit.

  8. If the reversal account came from the MF or originated in NMF and the Form 3465 indicates "Notice to the Taxpayer" :

    1. Prepare Form 3177 for input of TC 472 and route to RACS for input to Form 813 Block Control Screen.

    2. Request preparation of Form 6335 for the first notice to the taxpayer. Forward the request to the NMF DBA. The DBA will input a "reissue first notice" indicator through the NMF Weekly Correction screen after the TC 472 has posted. The NMF Standard Statement notice will generate the following Monday.

    3. Mail the first notice and the original letter to the taxpayer on the Friday preceding the projected Monday date on the first notices.

    4. Forward a transcript of the NMF account and a copy of the Form 3465 to the originator.

    5. The system will not compute penalty and interest on the TC 860 account and the generated notices will only show the balance due amount, without accruals. An accounts maintenance transcript will also be generated as an aid for manual computation of penalty and interest accruals.

    6. Type the penalty and interest accruals and the total balance due on the generated subsequent notices and mail to the taxpayer.

  9. For Non-Master File accounts only—If the reversal account was assessed as an NMF account or the original NMF assessment was abated twice, the following procedures apply.

    If Then
    If the Account has a credit balance NMF accounts maintenance will:
    • Request a current transcript of the account.

    • Prepare a 2-Way Memo to the Branch Chief requesting authorization to reverse the erroneous abatement.

    If the Branch Chief approves the request to reverse the erroneous abatement
    • Prepare Form 3465 and include all the entity information with the TC 860 amount.

    • Annotate the Form 3465 "Post to the original NMF Account ."

      Note:

      The Form 3465 will be posted as a subsequent transaction to the existing NMF account.

    • Forward the Form 3465, memo and NMF transcript to the NMF Scheduling function for preparation of Form 2188 and Form 813 as outlined in IRM 3.17.46.2.9 (7).

    • NMF Scheduling will forward the package to RACS for input to the Form 813 Block Control screen.

    • RACS will forward to NMF for processing through the Subsequent Transaction screen.

    If the account was originally assessed as an NMF account and the TC 860 will create a balance due on the account Follow the same procedures as described for the Master File account with the exception of transferring the account.
  10. Forward the Form 3465 with Form 813 to Returns Files after the month end balancing.

  11. Payments received on the TC 860 accounts will be processed as normal NMF subsequent transactions.

  12. If more than one 23C date is involved in the reversal (i.e., TC 150 and TC 290), a separate account with a TC 860 must be prepared for each of the 23C dates involved.

Reversal of Trust Fund Recovery Penalty (formerly 100% Penalty) Abatements

  1. The Two Year Hold TDA Monitoring file in the Collection Branch has been discontinued and all remaining liabilities have been abated. Subsequently, when the full amount of a Trust Fund Recovery Penalty is collected, the remaining liabilities will be abated. When a claim for refund is filed by the responsible person prior to the collection statute, reversals of the abatement may be necessary.

  2. These accounts will be maintained in NMF because the Civil Penalty Module cannot handle the reversal of the abatement using the reinstated 23C date.

  3. Collections will prepare Form 12810, Account Transfer Request Checklist, a Form 3465 and a Memorandum of Authority requesting transfer of the reversal to NMF.

  4. The Account Transfer function will prepare a Form 514-B to input the TC 400 to the Master File. When the TC 400 posts to the Master File, the Accounts Transfer function will prepare another 514-B to establish the account on the ANMF system.

  5. The Form 3465 and Memorandum of Authority will be forwarded directly to the Scheduling function without being routed through the Statute function. The Form 3465 will be assigned a DLN with doc. code 54. A Form 2188, Voucher and Schedule of Overpayments and Overassessments, will be prepared to reverse the abatement.

  6. The account will be established on the ANMF system using the 23C date of the original assessment with a Transaction Code 860. DO NOT issue a notice; issue an immediate TDA. Entries unique to the establishment of these accounts are as follows:

    1. Input a "R" into the Notice Type field.

    2. Input "22" into the NMF Status field.

    3. Input "today's date" into the TDA Date field.

    4. Input the statement "Reversal of Trust Fund Recovery Penalty Abatement" into the Cross Reference field.

  7. See IRM 3.17.46.9 to establish TDA via IDRS.

Assessments/Non-Master File Returns

  1. Receive returns with Form 813 for each block from the Returns Analysis function. Form 813 (copy) will be received separately in the Accounting Control Package.

    1. Misblocked Master File, Non-Master File or out of area (campus) returns will be identified by annotating the appropriate money amount on Form 813. Full paid returns will be identified on the Form 813 if paid interest is included or if the return becomes underpaid because of a mathematical error or insufficient remittance tendered.

    2. In full paid blocks, float underpaid returns identified as math error or misblocked part paid to the top of the block to ensure proper listing. Request Data Control to make an on-line SCCF adjustment for the renumbered returns.

    3. If the return is out of the campus area, prepare Form 2275 to include name and address of the taxpayer, return DLN and amount of credit applied. Insert Form 2275 in the proper sequence in the block and forward the return to the transfer clerk.

    4. Determine the amount of tax collected by the type of tax and enter item "a" of the NMF Block Summary on the reverse side of Form 813. Do not include items transferred from the block for renumbering.

    5. RACS will enter the Form 813 information onto the ANMF System using the Form 813 Block Control screen and then forward Form 813 and the returns to NMF for establishment of an account on the ANMF system.

  2. Upon receipt of the various NMF Recaps, complete the NMF Block Summary on the reverse of Form 813. List the DLN serial number, amount assessed, amount of payment applied or deleted from the block, amount interest paid and the General Ledger accounts.

  3. All returns should be released to files immediately after completion of the processing action.

  4. If the returns should be processed to a Master File but have been improperly numbered in a Non-Master File block, or if a Non-Master File return is improperly blocked, delete it from the block. See IRM 3.17.46.2.7 (5) and (6).

Non-Remittance Returns—Non-Master File Returns

  1. Receive returns from batching under control of Form 2345, Batch Transmittal. Returns will be numbered and blocked as assessable returns.

  2. Prepare Form 813 for the assessable blocks, listing the amounts to be assessed. Use the DLN from the Form 2345 and verify that the item count on the Form 813 equals that of the Form 2345.

  3. Upon receipt of the various NMF Recaps, complete items (a), Abstract Number and Amount, on the NMF Block Summary of Form 813 for all taxable blocks. See IRM 3.17.46.2.7, NMF Service Center Control File: Abstracting

  4. Examination audit "no changes" will no longer be established on NMF, after being closed by Examinations or Audit Information Management System (AIMS). The "No Changes" will be sent to the Files area in the campus where they were closed.

Additional Assessments

  1. These procedures apply to the additional assessments of tax, penalty, and interest on NMF returns and MF returns for which the additional assessment will remain on the ANMF.

  2. For instructions on accelerated assessments which will be immediately transferred to a Master File (never really established as Non-Master File accounts), see IRM 3.17.244, Manual Assessments, which contains procedures for processing Quick, Prompt and Jeopardy assessments. The ANMF system will only accommodate one abstract number per assessment/account. If any assessment document is received indicating assessments that carry multiple abstracts, return the document to the originator requesting preparation of additional documents. Multiple abstract assessments generally are related to multiple penalty sections on one document.

  3. Requests for original assessments will normally be received on:

    1. Action memorandum based on a court order;

    2. Various NMF returns;

    3. Form 1296, Assessment Against Transferee of Fiduciary;

    4. Form 2644, Recommendation for Jeopardy/Termination Assessment;

    5. Form 2749, Request for Trust Fund Recovery Penalty Assessment;

    6. Form 2859, Request of Quick or Prompt Assessment;

    7. Form 4881, Chapter 42 Taxes-Disqualified Person/Foundation Manager;

    8. Form 5344, Examination Closing Record;

    9. Form 5403, Appeals Closing Record;

    10. Form 5599, TE/GE Examined Closing Record;

    11. Form 5650, EP Examined Closing Record;

    12. Form 5734, NMF Assessment Voucher;

    13. Form 8278, Assessment and Abatement of Miscellaneous Civil Penalties.

  4. Form 5344, Form 5403, and Form 5599 contain coded information which must be input to the NMF account. Special handling instructions may appear on the forms.

  5. Form 4881 may assess one or more excise taxes against a foundation manager or other individual. The entity liable is the one entered in the left box at the top of the form.

    1. Taxes entered must be for only one period. If more than one period is shown on the form, return it to the EO function for preparation of additional forms.

    2. If more than one type of tax is entered, return to the EO function for proper editing of the form. All taxes (both initial and additional) should be accumulated into one total amount.

  6. If Form 3244A, part 2, Payment Posting Voucher—Examination, is attached to the assessment document, determine if the payment has been assessed or unassessed. See IRM 3.17.46.8.5, Processing of Advance NMF Payments, Payment Posting Vouchers (Form 3244 and Form 3244A) for further processing instructions.

  7. Forward Form 813 and related documents to NMF for establishment of an NMF account.

  8. When a memo of credit is indicated on an assessment:

    1. Assess for the full amounts.

    2. Prepare Form 3177 to input TC 470 and include the identifying information of the person calling, i.e., name, telephone number, organization, etc., and the amount of credit.

    3. Input a history item on the account indicating where the credit will be moved from.

      Note:

      History should include the TIN, MFT, and tax period of where the credit is being moved from.

    4. Attach the original backup documentation from the Area Office to one copy of the Form 3177.

    5. Mail parts 1 and 2 of the statement of tax due IRS (Form 6335) to the taxpayer.

Disposition of Processed Documents

  1. The NMF Cycle Proof List (CPL) is received at the beginning of each month, listing all the blocks of documents that have been processed during the preceding month.

    1. Associate the returns and other documents with the Cycle Proof List for release to files.

    2. Some returns are charged from the blocks with a Form 2275 and routed to Examination or other functions according to instructions elsewhere in this IRM. The folders containing the charged documents should also be associated with the CPL as if the returns were still present.

  2. When monthly balancing has been completed, route the CPL and associated documents to Files.

    1. Files will check off each item on the CPL to verify that the correct blocks have been received.

    2. If any block shown on the CPL is not associated, annotate the item on the listing so that Files will know that the block will be retained in NMF.

  3. Be sure to keep a copy of the CPL for one year, as this is the only permanent record of processed blocks.

Statute Cases

  1. Returns or documents that are not assessed or collected within the statutory periods prescribed by law result in a loss of revenue to the Internal Revenue Service and require the preparation of Statute Expiration Reports.

  2. The normal ASED expires three years from the date the original return was filed; or three years from the due date of the return, whichever is later (IRC 6501(a)). See IRM 25.6.1, Statue of Limitations Processes and Procedures, for other statute issues.

  3. Delinquent NMF returns should be flagged by Code and Edit and forwarded to the Statute Limitations unit for statute clearance. .

  4. Amended returns on which the expiration of the statute of limitations is imminent (four-months or less) should also be flagged by Code and Edit to alert Accounting of the statute condition. These may be routinely assessed with a 23C date on or before the statute expiration date.

Armed Forces Combat Zone—Deferment of Filing and Collection Requirements

  1. IRC 7508 provides that the Service must disregard a period of time when determining whether certain acts are performed timely when an individual is in a combat zone. The acts that are postponed include acts performed by the taxpayer, such as filing a return or paying tax due, and acts performed by the Service, such as assessing and collecting tax. The time to be disregarded is that period during which the individual serves in a combat zone or hazardous duty area, plus the period of continuous hospitalization attributable to an injury received during that time, and the next 180-days. A current list of combat zone areas can be found on IRS web page, https://www.irs.gov/newsroom/combat-zones.

    Note:

    Any documentation indicating Enduring Freedom, Operation Enduring Freedom, Operation Iraqi Freedom, Iraq, Combat Zone, or similar annotations is identified as Combat Zone.

    1. The hospitalization period to be disregarded is for both inside and outside the U.S., however, the period inside the U.S. is limited to five years.

    2. Although no penalty or interest is charged the taxpayer during this period, interest owed to the taxpayer (i.e., overpayment interest) will accrue from the later of the due date of the return or the date of payment for those who timely file a processible return under IRC 7508. If the return is timely filed (determined by taking into account the combat zone suspension period), the 45 and 180 day rules of IRC 6611 (e)(1) through (e)(3) shall not apply.

    Note:

    Combat Zone accounts are identified by a -C freeze on MF. The freeze remains on the account even after the taxpayer is no longer in the Combat Zone. Research can be done on CC IMFOLE for Combat indicator to determine if the taxpayer is still in the Combat Zone. Combat Indicator "1" indicates taxpayer is still in a combat zone. Combat indicator "2" indicates the taxpayer is no longer in a combat zone.

  2. If notified by Accounts Management, Collection, or Examination that an existing NMF account (true tax class 2 or 5 with an SSN) involves someone in the combat zone or hazardous duty area, NMF will suspend further notice issuance. An entry and departure date must be provided.

  3. A Form 3177 must be prepared to input the TC 500 to the NMF account through the Subsequent Transaction screen to suspend notice issuance. The TC 500 transaction date will be the entry date into the combat zone.

    1. Input a "R" in the Exception Code Field to restrict interest and penalty.

    2. Form 3177 should be numbered with a doc. code 77 and Blocking Series 999 for the primary SSN and 888 for the secondary SSN.

    3. TC 500 will move the NMF account from any status into status 89 (Suspense) and generate a Status Change Recap.

  4. The account will be held in status 89 for the length of time the individual is in the combat zone or hazardous duty area plus 180-days.

  5. A Form 3177 must be prepared once it is determined that the notices/TDA should resume. The TC 502 transaction date will be the date of departure plus 180-days.

    1. Form 3177 should be numbered with a doc. code 77 and a Blocking Series of 999 for the primary SSN and 888 for the secondary SSN.

    2. The TC 502 will move the account from status 89 into the previous account status and generate a Status Change Recap.

  6. Routine notice/TDA issuance will resume once the TC 502 posts to the account, however, the generated notice/TDA will not include accruals. An associated "DS500" transcript will also be generated at the time a notice/TDA is generated. This transcript is to be used to assist in the computation of accruals which must then be typed onto the "entity only" notice. No interest or penalty should be charged for the length of time the taxpayer is in the combat zone or hazardous duty area, plus 180-days. See IRM 20.2.7.9, IRC 7508, Combat Zone, for exact time frame for not charging interest when a taxpayer is in a combat zone.

Non-Master File Assessments and Timeframes

  1. The requester will establish when the assessment must be made. Jeopardy, Termination and Statute cases must be assessed immediately. Quick and Prompt assessments which request specific assessment dates should be made by that date. Assessments which are neither statute imminent nor request a specific assessment date must be made within two weeks.

  2. Original requests for assessments are the source documents. If requests are made via EEFax then the source documents must be included. If the source documents are too voluminous, then the requester is required to immediately send the source documents to the campus. If the source documents are not received within five working days, follow up with the requester to secure the source documents. Management involvement may be needed if there is no reply. Refer to IRM 3.17.244, Manual Assessments.

  3. For "Weekly" Assessments only: If a holiday falls on a Friday, the cut-off for processing weekly assessments (input to the Block Control screen) will be that Wednesday preceding the Friday holiday.

Daily Assessments

  1. Daily assessments are made to protect the assessment from being barred by the statute of limitations or to expedite the collection process. These assessments will be made through the Original Assessment-Daily screen of the ANMF System to generate Form 6335, NMF First Notice.

  2. RACS will assign a DLN to daily assessments, prepare Form 813, journalize assessments through RACS using the RACS window, enter the Form 813 information onto the ANMF System using the Form 813 Block Control screen and stamp Form 813 with the journal number and the 23C date.

    1. Form 23C will be signed and the requesting office will be informed of the date of signature and the DLN of the assessment.

    2. For Jeopardy assessments only, a separate Form 813 and DLN is prepared for each Jeopardy assessment. Multiple assessments against the same taxpayer can be included on the same Form 813.

  3. RACS will forward the Form 813 and the related documents to NMF for input to the ANMF System through the Original Assessment-Daily screen.

  4. In some instances, assessments may be faxed to the campus for immediate assessment. Faxed requests must furnish the following minimum information:

    • Affirmative statement that the Area Director has approved Form 2644 for Jeopardy or Termination assessments;

    • Name, address and Taxpayer Identification Number;

    • Type of tax and taxable period;

    • Assessment statute expiration date (ASED);

    • Amount of tax, interest and all penalties to be assessed;

    • Amounts of payments, if any, and balance due;

    • Type of assessment: Quick, Prompt, Jeopardy or Termination;

    • Appropriate abstract number;

    • Transaction codes.

  5. The standard billing schedule will apply to all NMF Quick Assessments. Input a "1" into the Notice Type field when establishing the account.

  6. Jeopardy or Termination Assessments will require a Form 6335, NMF First Notice and an immediate TDA. Input a "Z" into the Notice Type field when establishing the account.

  7. When the initiator of an NMF statute imminent assessment indicates that credits which are posted to Master File are in the process of being transferred to the tax period which is being assessed on NMF. NMF will assess the tax and the notice mailed to the taxpayer will reflect the anticipated credit.

    1. Prepare a manual notice to reflect the anticipated credit via the Alternative Notice System.

    2. Enter remarks in history area: MF transfer to NMF - Transaction Code, Transaction Date and Amount

    3. Enter "M" in the Exception Code field to prevent issuance of fourth notice to allow time for the credit to post.

    4. When the credit posts, remove the "M" from the Exception Code field.

      Note:

      Preparation of the document required to transfer the MF credit(s) to NMF remain with the initiator of the assessment request.

Weekly Assessments

  1. Assessments where the statute of limitations is not imminent or no specific immediate assessment date is requested or required will be made as a weekly assessment. Systemically, the 23C date (assessment date) is set to coincide with the RACS 23C date which is the current Monday date plus 21-days.

  2. RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen and include the 23C date on Form 813.

  3. RACS will forward Form 813 and the related documents to NMF.

  4. NMF will input the assessment to the ANMF System through the Original Assessment-Weekly screen.

  5. The ANMF SC RECAP is generated the following day after the account posts to the NMF database.

    1. It is essential that all unpostable assessments are corrected immediately upon discovery to protect the 23C date.

    2. If the unpostable is corrected by the close of business (COB) Thursday, the assessment will carry the current 23C date. However, if the unpostable is not corrected until Friday, the assessment will carry the next consecutive 23C date.

  6. NMF will forward the Recap(s) to RACS for journalization. The related Form 813 will be associated and the reverse side worked as instructed in IRM 3.17.46.2.4, Collection Statute Expired Processing. This will only occur if manual journalization is required. See IRM 3.17.46.2.4 (4) for the ANMF SC RECAP procedures.

    1. After journalization, RACS will stamp the Form 813 and the Recap (part 2 and 3) with the journal number. RACS will then input the journal number to the ANMF System using the UPDATE JRN'L screen.

    2. RACS will return part 3 of the Recap to NMF and retain part 2 of the Recap in summary number order.

    3. NMF will annotate the journal number from the Recap (part 3) on the related Recap (part 1) and on the Form 813 for an audit trail.

    4. NMF will retain part 3 of the Recap in journal number order.

Controlling Blocks

  1. Input of the Form 813 information using the Form 813 Block Control screen is the major control for all items entered onto the ANMF System. All blocks of documents that are either pre-journalized or post journalized will be input to the Form 813 Block Control screen. See IRM 3.17.46.13.4, NMF Block Control/Correction, for further instructions. The only exceptions are Even returns, Refund returns, NMF Extensions of Time to File, entity changes, transfer-in and loaded old accounts (ULCs).

  2. There are three listings generated through the ANMF System that are associated with input through the Form 813 Block Control screen.

    1. NMF Block Listing—is printed by the DBA on a daily basis. This listing shows all Forms 813 input through the Form 813 Block Control screen on the previous work day, except "dailys" . This list is forwarded to RACS immediately after generation and is used by RACS as a cover sheet to transmit all Forms 813 and the related documents to NMF for processing.

    2. Unprocessed Block list—is printed by the DBA on a weekly basis. This listing is generated when the controlling information from a Form 813 has been set-up on the Form 813 Block Control but the related documents have not been input. This listing is used as a management tool to ensure proper workflow between the NMF and RACS functions.

    3. Block Out of Balance List—is printed by the DBA on a daily basis. This listing is generated when the input transactions and the Block Control File match on DLN but the item count or debit amounts and credit amounts DO NOT match. The listing is used in conjunction with the Error Register to determine the cause of an imbalance.

  3. One listing generated through the ANMF System is associated with input to the Update Journaled RACS Recaps screen. This listing is called the RECAP of Journaled RACS Summaries and is printed on a weekly basis. The list shows all Recaps generated during a given week, and includes the journal number. The list is used as an additional balancing tool.

Association of Recaps and Form 813

  1. Many actions taken on the ANMF System (i.e., weekly assessments, status changes, subsequent transactions, etc.) will generate a Recap. All Recaps are printed on 3 part paper. Part 1 remains with the documents in NMF. Parts 2 and 3 are forwarded to RACS and after journalization, part 3 is stamped with the journal number and returned to NMF and held for balancing purposes.

    Note:

    The ANMF SC RECAP replaced Parts 2 and 3 of the NMF or RACS Recaps throughout this section. The instructions for Parts 2 and 3 will be used only if manual journalization is necessary.

  2. Each day that the Recaps are generated, the Recap (part 1) is associated with the posting or assessment documents by DLN and reviewed to verify that the item count and money amount is correct. The corresponding Forms 813, RACS Recaps (parts 2 and 3) and Transmittal Recap of RACS Summaries will be associated and forwarded to RACS for journalization. Form 813 will be retained with the documents when partial block closures occur. The Recap and the posting documents are held in NMF until the NMF monthly balancing is completed. At that time, they are associated with Form 813 and forwarded to Returns Files. The Recap and assessment documents are held in NMF for notice review and are available for month-end balancing before being forwarded to Returns Files.

  3. If the RACS Recap is identical to Form 813 (item count and money amount) of the posting or assessment document(s), follow the steps below:

    1. Notate parts 1 and 2 of the Form 813 "CLOSED" and the date the Form 813 is closed.

    2. For subsequent payment posting documents, associate Form 813 and the RACS Recap (part 1) with the documents until NMF monthly balancing is completed.

    3. For original assessment documents, associate Form 813 and the RACS Recap (part 1) with the documents for notice review.

    4. Associate all Forms 813 with the RACS Recap (parts 2 and 3) and forward to RACS for journalization.

    5. Verify and annotate that all Recaps listed on the Transmittal Recap of RACS Summaries are indeed associated for release. Forward parts 1 and 2 of the Transmittal Recap to RACS for signature to verify receipt of all Recaps listed. Retain part 3 in NMF until part 1 is signed and returned by RACS. After RACS returns part 1 of the Transmittal Recap to NMF, part 3 can be destroyed. NMF will retain a file of both the Recaps and Transmittals.

  4. If the RACS Recap is not identical to the Form 813 (in item count and money amount) of the posting or assessment document, an unpostable condition generally exists. If the Form 813 carries more than one item and the unpostable condition cannot be corrected that day, then a partial block (Form 813) will be forwarded to RACS to journalize the posted items.

    1. Notate the following on the Form 813:

    2. Item count.

    3. Dollar amount total of Form 813.

    4. "P" with the posted item count.

    5. Total posted dollar amount.

    6. Recap summary number.

    7. Make a photocopy of the annotated Form 813.

    8. Associate the photocopy of Form 813 with the Recap (parts 2 and 3) and forward to RACS for journalization.

    9. Associate Form 813 and the Recap (part 1) with the posting documents and hold in NMF until final resolution of the partial.

  5. After final resolution of the partial, notate the Form 813 with the following:

    1. "P" with the actual item count from the Recap.

    2. "PD" with the item count number from the document DLN.

    3. Total money amount posted from the Recap.

    4. Recap summary number.

    5. "CLOSED" and the date closed on both parts 1 and 2 of the Form 813.

    6. Associate Form 813 and the Recap (part 1) with the documents for Returns Files.

    7. Associate Form 813 with the Recap (parts 2 and 3) and forward to RACS for journalization.

    8. If the Form 813 is a partial, notate a "P" by the DLN on the Transmittal Recap of RACS Summaries. If the Form 813 was a partial and is now completed, notate a "C" by the DLN on the Transmittal Recap of RACS Summaries. No notation is necessary on the Transmittal Recap of RACS Summaries if the Recap and Form 813 were identical originally.

  6. If the Recap and Form 813 (in item count and money amount) do not match and the unpostable condition is corrected by nullifying the transaction, gather all blocks of posting documents by DLN using the NMF Nullified Unpostable list and follow the instructions below:

    1. Notate the Form 813 as follows:

    2. "N" with the nullified item count.

    3. Total nullified money amount.

    4. Date of the nullified list (because the NMF Nullified Unpostable list has no summary number).

    5. Highlight the nullified items.

    6. Make a photocopy of the annotated Form 813 and attach the nullified document(s) to the front.

  7. If the nullified item(s) with generated Recap(s) completes the balancing of the Form 813:

    1. Notate the original Form 813 and the photocopy of Form 813 "CLOSED" and the date the Form 813 was closed.

    2. Photocopy the closed Form 813 and attach the nullified documents.

    3. Prepare Form 2275 and indicate "permanent chargeout—documents nullified from NMF processing" for the posting documents removed from the document folder. Annotate the refile DLN if known.

    4. Associate and forward Form 813, Recap(s) (part 1) and the posted document(s) to Returns Files after the monthly balancing is completed.

    5. Form 813, Recap(s) (part 2 and 3) are associated with the Transmittal Recap of RACS Summaries and forwarded to RACS. Notate an "N" by the DLN of the nullified item on the Transmittal Recap of RACS Summaries.

    6. The photocopy of the closed Form 813 and the nullified document(s) are associated with the NMF Nullified Unpostable Transaction list and forwarded to RACS.

  8. If the nullified item(s) with no generated Recap(s) completes the balancing of the Form 813:

    1. Annotate Form 813 "CLOSED" and the date the Form 813 was closed.

    2. Photocopy the closed Form 813 and attach the nullified document(s).

    3. Associate the above document with the NMF Nullified Unpostable Transaction list and forward to RACS.

  9. If the nullified item(s) does not complete the balancing of Form 813:

    1. Photocopy the Form 813 and attach the nullified document(s).

    2. Prepare Form 2275 and indicate "permanent chargeout—documents nullified from NMF processing" .

    3. Retain the incomplete Form 813, the associated Recap(s) and the posted document(s) in the NMF Partial Files until resolution of the partial.

    4. Associate the Form 813 (copy) and the nullified document(s) with the NMF Nullified Unpostable Transaction list and forward to RACS for journalization of the remaining items.

    5. Notate the NMF Nullified list with the items being released to RACS and the items returned to the originator (no journal action required).

    6. Part 1 of the NMF Nullified Unpostable list will be retained in NMF and part 2 of the list will be forwarded to RACS with Forms 813 and the nullified documents.

  10. In some instances, a partial document may be the cause of a partial block. This condition occurs when one of the items (documents) listed on the Form 813 has multiple transactions and one or more (but not all) of the transactions go unpostable. If this condition occurs, notate the Form 813 with the following:

    1. "P" (for posted items) with the actual item count from the Recap.

    2. "PD" (to indicate the partial document) with the actual item count of the document.

    3. Total posted money amount for the Recap.

    4. Recap summary number.

    5. Make a photocopy of the annotated Form 813.

    6. Associate the photocopy of Form 813 with the Recap (parts 2 and 3) and forward to RACS for journalization.

    7. Associate Form 813 and the Recap (part 1) with the document(s) and hold in NMF until final resolution of the partial block.

  11. If the partial document carries an unpostable code 010, and is not a duplicate posting, reinput to the Form 813 Block Control screen (DO NOT create a new Form 813) will be necessary to re-establish the unpostable item ONLY.

    1. In addition to (a) through (e) above, attach a sheet of paper to the photocopy of Form 813 which should indicate the following:

    2. Annotate: re-input due to unpostable code 010.

    3. List the DLN of the original Form 813.

    4. List the new item count.

    5. List the new DR and CR amount.

    6. This sheet of paper will serve as an "in-house" paper Form 813 to provide the documentation necessary to re-input the information to the Form 813 Block Control screen.

    7. After the subsequent transaction posts to the database, normal Form 813 and Recap association will follow.

Various NMF Assessments

  1. NMF accounts originate in several different ways, original return assessments, various types initiated by other areas such as Examination, TE/GE (formerly EP/EO) and Accounts Management are routed to Accounting for processing to ANMF.

Assessments Under IRC 7804(c)

  1. Internal Revenue Code Section 7804(c) provides for assessments to be made against officers and employees of the IRS who either embezzle or fail to properly handle and account for money received in connection with the Internal Revenue laws. These assessments will be handled under NMF procedures.

  2. IRM 3.0.167, Losses and Shortages, contains more information regarding 7804(c) assessments.

  3. Prior to NMF assessment, the embezzled amount will have been journaled to the 7610 Account and a letter of notice and demand sent.

  4. If payment is not received within 30-days of the notice, a copy of the letter of notice and demand will be forwarded to RACS for prejournaling the assessment from the responsible accounting area maintaining the 7610 Account. The letters will be used as the source document and numbered as follows:

    • Tax Class 6

    • Doc. Code 54

    • Blocking Series is usually designated by tax class with a 200 Blocking Series for individual

    • MFT 20

    • Abstract Number 004

  5. The letters will be coded with a TC 290 amount and the interest (TC 340) computed from the date of the embezzlement to the 23C date. These assessments will be included as Current Assessments on the Assessment Certificate (Form 23C). See IRM 20.2.11.15, Assessment Against Treasury Department Embezzlers (NMF).

  6. After RACS has pre-journaled the assessment and input the Form 813 information into the Form 813 Block Control screen, RACS will forward the Form 813 and assessment document(s) to NMF for further processing.

  7. NMF will establish an account for the assessment on the ANMF system through the Original Assessment—Daily screen. Field entries unique to these assessments are as follows:

    1. Input an "R" into the Assessment Type field of the entity.

    2. Input a "1" into the Notice Type field to produce the Form 6335, first notice.

    3. Input an "8" into the Statement Code field. This indicator MUST be input to ensure the appropriate statement is printed on the notice.

    4. Input the year of the embezzlement into the Period Ending field.

    5. Input the Campus location of the responsible Director in the cross-reference field.

  8. The system will generate the Form 6335 after establishment of the account. Form 6335 should be mailed to the employee in question. NMF Fourth Notice (Form 4840) will be systemically-generated six weeks from the date of Form 6335. After an additional six weeks has elapsed, the account will systemically move into TDA /Status 22 and Integrated Collection System (ICS) will be updated to reflect TDA information.

  9. Notify the 7610 coordinator of the TDA issuance so a memo explaining procedures can be forwarded CSCO.

  10. NMF will load 7804(c) embezzlement cases to NMF IDRS once the account reaches TDA status regardless of balance.

  11. After posting of payments, request a transcript of the account and forward to the 7610 coordinator at the site where the loss occurred for preparation of Form 3809 to credit the 7610 Account and debit the 6900 Account.

  12. Additional interest computations on amounts outstanding will apply as outlined in IRM 20.2, Interest.

Civil Penalties

  1. Previously, most of these penalties were assessed on the NMF since they were not asserted directly in connection with an income tax deficiency. Some of these penalties relate to acts committed by the person penalized, while others are assessed for failure to file or furnish certain information and information documents.

  2. The majority of civil penalties were moved to the Master File. To accommodate civil penalties, two new MFTs have been created: MFT 55 for IMF and MFT 13 for BMF. Form 8278, Assessment and Abatement of Miscellaneous Civil Penalties, will be used by either area office or campus personnel to request assessment or abatement of certain non-return related civil penalties. In certain situations, NMF will still process the civil penalties.

  3. RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen.

  4. RACS will forward the Form 813 and the assessment documents to NMF for processing.

  5. NMF will input the assessment to the ANMF System through the Original Assessment-Weekly screen which will generate the first notice.

  6. NMF will input CVPN into the Form field.

  7. Mail two copies of the Form 6335, NMF First Notice to the taxpayer and forward part 3 to the originator.

  8. Assessment documents will be forwarded to Returns Files after the NMF monthly balancing is completed.

Community Renewal Act of 2000

  1. The Community Renewal Act of 2000 amends the Reform and Restructuring Act of 1998 Section 6331(k) stating that the Service can no longer suspend the Collection Statute of Limitations while certain offers are pending.

  2. NMF should no longer input a TC 481 (rejected OIC) or a TC 482 (withdraw OIC) with a TC 550 extending the Collection Expiration Date on the ANMF system. If a request is received, input the TC 481/482 only. Notify the sender that the TC 550 was not input, citing the Community Renewal Act of 2000 which amended RRA 1998 Section 6331(k) (3).

IMF Accounts $100 Billion and Over

  1. Form 1040, Individual Income Tax Return, which cannot be processed to Master File because the module balance is $100 billion or greater must be routed to the Accounting Function in the Kansas City Submission Processing Campus. The NMF Account Specialist will review the return for any special handling prior to posting to ANMF. For example, the taxpayer may have a tax deferral which will require coordination with the Adjustment function.

  2. Form 1040 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 10

    • Blocking Series: 000–099 non-remittance

    • MFT 20

    • Abstract Number 004

  3. RACS will pre-journalize the assessment and forward the return to NMF to establish an account on the ANMF system.

  4. NMF will establish an account on the ANMF system through the Load Old Accts/Transfer-In Screen.

  5. Entry through the Load Old ACCTS/TRANSFER-IN screen will automatically generate an account transcript the next day. These transcripts will be distinguished from the requested transcripts by the 99999–99999 in the employee number field on the transcript. The NMF function will verify the transcripts to the return. If there is an error, prepare DBA correction request.

  6. NMF will input the following transaction codes to the Master File tax period:

    1. TC 590 closing code (cc) 19 using FRM49 on primary SSN to prevent issuance of a TDI notice.

    2. TC 590 closing code (cc) 19 using FRM49 on secondary SSN, if taxpayers filed married filing joint, to prevent issuance of a TDI notice.

    3. TC 971 action code (AC) 502 using REQ77 to indicate a case of $100 billion or more on NMF.

  7. If it is determined that the return is an amended, void the DLN and renumber as follows:

    • Tax Class 6

    • Doc. Code 54

    • Blocking Series: 000–999

    • MFT 20

    • Abstract Number 004

  8. If the tax return indicates a Credit Elect in lieu of a refund, prepare Form 3809 to post TC 830 to Debit NMF and TC 710 to Credit Master File for the next tax period.

  9. Balance Due – The taxpayer usually remits estimated payments and/or may have a credit elect on the Master File prior to filing the tax return. Master File will cause an Unpostable Condition when a payment/credit results in the total balance of $100 billion or greater. Rejects will notify Accounting to move the payment/ credit to the NMF Unapplied Advance Payments Account 4610. Upon notification, the NMF Account Specialist must transfer all payments/credits via Form 2424 or Form 3809 as appropriate from the Master File module to Account 4610 pending the filing of the tax return.

    Note:

    Any Form 2424 prepared in the Accounting operation must be reviewed and initialed by the employee's manager or designee before sending to be processed.

    1. Research Account 4610 for all payments/credits that were transferred from the Master File. See IRM 3.17.46.8.5 (9) for applying credits to the taxpayer’s NMF account.

    2. Research Master File to ensure that all payments/credits have been transferred to Account 4610. If not, then prepare Form 2424 or Form 3809 accordingly to transfer the credit to the taxpayer’s NMF account.

    3. Standard billing applies for any remaining balance due.

  10. Route a photocopy of the return (including all schedules) to the following Statistics of Income Unit (SOI):

    Kansas City Submission Processing Center (KCSPC)

    Attn: SOI Edit Unit, Stop 6130

Internal Revenue Service Closing Agreements

  1. The Service will occasionally enter into a closing agreement with certain agencies. They may be transmitted from the Headquarters to the Kansas City Submission Processing Campus via memorandum. Use the closing agreement as authority for assessment and a substitute return.

  2. Make the assessment as an ANMF Excise Tax Account including any identified accrued interest using a TC 150.

  3. The tax period should always be the year and the month that the Commissioner signed the agreement. For example: July 15, 2002 (date) would be 200207.

    Note:

    If no date is included next to the signature, use the date the IRS Executed the Agreement for the tax period ending.

  4. Appropriate journalization is necessary to ensure the integrity and the balancing of the RACS and ANMF Systems. RACS will pre-journalize the initial assessment for the entire amount to Account 1300 in Status 89. RACS will forward the package to ANMF to establish an account through the LOAD Acct/Transfer-In Screen.

    1. NMF will establish the account in Status 89.

    2. Input "CLOSE AGREE" into the Form field.

    3. Input the phrase "Closing Agreement" into the Cross Reference field of the entity.

    4. Use the date of input as the Claim Adjustment Pending Date.

    5. Input "M" in the Exception Code field to prevent generation of notices and update of penalty and interest computation to ANMF when closing agreement is full paid.

    6. Input "P" in the Exception Code field if the closing agreement provides for payments over a period of years and interest will be charged on the unpaid balance.

    7. Input a TC 470. The transaction date of the TC 470 will be the date of input (same as the Claim Adjustment Pending Date).

    8. Related payments will be posted to the account using the Subsequent Transaction Screen.

    9. After the account is established, forward the closing agreement to Cycle Control for filing under the DLN assigned.

    10. Manually monitor the account for issuance of the annual bill. Prepare Form 6335 for each installment 30-days prior to the installment due date and mail to the taxpayer.

  5. The closing agreement may provide payments over a period of years. The agency will have specific responsibilities for the payment written in the agreement. Each year prepare and mail Form 6335 to the taxpayer for that year’s portion of the total tax plus interest, if applicable. A copy of Form 6335 will be sent to Returns Files. Tailor the bill to the individual closing agreement conditions. Show the total outstanding tax and then the payment due for that year (similar to an installment agreement). The agreement will include special instructions in case the agency fails to make a payment. This will include notice of default, and assessment of penalties and interest.

    Note:

    Headquarters will provide assistance with annual billing.

  6. Closing agreements received with full paid or partial remittance will be processed as two documents. The first document (closing agreement) will establish the assessment on the ANMF system, and the second document (Form 3244A) will post the payment. Monitor the account to ensure the payment posts immediately after the assessment is established to ensure correct billing to taxpayer.

  7. The closing agreement (first document) will be numbered as follows:

    • Tax Class 6

    • Doc. Code 54

    • Blocking Series 400–434

    • Abstract Number 139

    • MFT 28

  8. The Form 3244A (second document) will be numbered as follows:

    • Tax Class 6

    • Doc. Code 27

    • Blocking Series 400–434

    • Abstract Number 139

    • MFT 28

  9. Closing Agreements received without payments will be billed according to instructions received with the agreement. They will be numbered as follows:

    • Tax Class 6

    • Doc. Code 54

    • Blocking Series 400–410

    • Abstract Number 139

    • MFT 28

    Note:

    Revenue Procedures: ONLY NMF will process the new EP/EO Determination Letter application fee using procedures in IRM 3.17.46.5.5, Internal Revenue Service Closing Agreements. In the cross-reference section of the ANMF Entity screen annotate REV PROC Number e.g., REV PROC 2003-72.

Sanction Payments
  1. Employee Plan Master File (EPMF) Closing Agreements will be initiated in the Area Offices and forwarded to the Kansas City Submission Processing Campus with a cover memorandum. The Closing Agreement will be coded for the remittance to be processed as a full paid NMF or BMF return. There are to be no refunds of moneys under these Closing Agreements.

  2. The Service could receive "sanction" payments as the result of a closing agreement where the exempt organization is not required to file a return, or the facts and circumstances indicate a payment on a tax return is a sanction. A "sanction" , like various conduct penalties in the Internal Revenue Code which are not directly related to taxpayer's individual or corporate tax liabilities, is assessed to encourage voluntary compliance.

Form 5310-A, Notice of Plan Merger or Consolidation, Spinoff, or Transfer of Plan Assets or Liabilities: Notice of Qualified Separate Lines of Business
  1. EP Division Policy provides for the treatment of a late filing penalty from Form 5310-A similar to a Closing Agreement or Sanction Payment. EP, Employee Plans has deemed this to be a "compliance" fee similar to the (Revenue Procedure) Rev. Proc. 2003-72.

  2. Taxpayers will file Form 5310-A, Notice of Plan Merger or Consolidation, Spinoff, or Transfer of Plan Assets or Liabilities: Notice of Qualified Separate Lines of Business, to notify the EP Division of these changes. The taxpayer may determine that a late filing penalty is warranted if Form 5310-A is not filed within 30-days of the change. The penalty is $25.00 for each day the Form 5310-A is late with a maximum of up to $15,000.00.

  3. EP will prepare Form 5734 in lieu of a Closing Agreement for assessment of the compliance (penalty) fee using TC 240 and Form 3244 for the payment. Both documents will be annotated with Form 5310-A Penalty.

  4. RACS will pre-journalize the initial assessment for the entire amount to Account 1300 in Status 89. RACS will forward the package to ANMF to establish an account through the LOAD Acct/Transfer-In Screen.

    1. NMF will establish the account in Status 89.

    2. Input "5310-A" into the Form field.

    3. Use the date of input as the Claim Adjustment Pending Date.

    4. Input "M" in the Exception Code field to prevent generation of notices and update of penalty and interest computation to ANMF when the account is full paid.

    5. Input a TC 470. The transaction date of the TC 470 will be the date of input (same as the Claim Adjustment Pending Date).

    6. Input Form 5310-A in the "cross-reference" section of the Entity screen.

    7. Related payments should be posted to the account using the Subsequent Transaction Screen.

  5. Form 5734 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 54

    • Blocking Series 400-434

    • Abstract Number 139

    • MFT 28

  6. Form 3244 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 27

    • Blocking Series 400-434

    • Abstract Number 139

    • MFT 28

IRC 4103, Personal Liability for Excise Tax

  1. IRC 4103 imposes a liability for certain excise taxes on additional persons beyond the business taxpayer. The personal liability for excise tax is a joint and several liability. It applies to gasoline, diesel fuel, and aviation fuel excise taxes imposed by IRC 4081 or IRC 4091. When assessed against an individual, he or she will owe the same tax liability as the business taxpayer who filed Form 720, Quarterly Federal Excise Tax Return.

  2. Assessment of the personal liability for excise tax will be processed through NMF until Master File programming is completed. These assessments will be received in NMF on Form 9494, Request for Assessment of Personal Liability for Excise Tax. These assessments will be processed as NMF Daily Assessments. A "Linked Account" has been added to identify duplicate assessments. See IRM 3.17.46.13.8, Linked Accounts.

  3. The Form 9494 for NMF assessments is numbered as follows:

    • Tax Class—6

    • Doc. Code—47

    • Blocking Series—400–404, 410–414

    • MFT—45

    • Abstract Number—060, 062, 069

  4. RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen.

  5. NMF will receive the Form 813 and assessment documents from RACS and input the assessments through the Original Assessment screen to generate the first notice (Form 6335).

  6. Determine the type of assessment. The appropriate assessment type will be indicated on Form 9494 and the appropriate codes for the Assessment Type field are below:

    1. Input a "P" for Prompt assessment;

    2. Input a "Q" for Quick assessment;

    3. Input a "R" for Regular assessment;

    4. Input a "Z" for Jeopardy assessment. Jeopardy Assessments will generate a Form 6335 (1st Notice) and an immediate TDA.

    5. Input a "4" in the NMF Statement Code field to produce the Standard NMF Statement on the first notice.

    6. Input "IRC 4103" in the Cross Reference Field.

    7. Input the name, address, and EIN of the business entity to the Cross Reference field. If this information is not present on Form 9494, contact the originator.

  7. Distribution for Quick, Prompt and Jeopardy assessments: Form 6335 will be sent to the originator. The Form 6335 for the Jeopardy assessment will also be associated with the TDA and forwarded to the originator.

  8. Distribution for all regular assessments: mail Form 6335 to the taxpayer. Along with the Form 6335, include Notice 996, which is an explanation to the taxpayer concerning the assessment. A copy of Form 6335 will be forwarded to the originator.

  9. Form 9494, part 1, will be retained as the assessment document. Part 2 will be sent to the appropriate Area Office Special Procedures (SPf) or Collection Support function (CSf).

  10. Forward part 1 of Form 9494 and Form 813 to Returns Files after NMF monthly balancing is completed.

  11. Standard subsequent notice and TDA billing will apply.

  12. Occasionally, the Revenue Officer requesting the assessment will know that the assessment will be uncollectible. Form 53, Report of Currently Not Collectible Taxes, will be received along with the request for assessment, Form 9494.

    1. Input the assessment through the Original Assessment screen and mail the first notice, Form 6335 parts 1 and 2 to the taxpayer (or forward all parts of Form 6335 to the originator if the assessment was a Prompt, Quick or Jeopardy assessment).

    2. Forward Form 53 to the numbering function for numbering and preparation of Form 813.

    3. The numbering function will forward Form 813 and Form 53 to RACS for input to the Form 813 Block Control.

    4. RACS will forward Form 813 and documents to NMF for input of the TC 530 to the account through the Subsequent Transaction screen.

    5. Prepare Form 1725 and notate "pre-assessment 53, no TDA issued" . Attach it to Form 9494 (part 2). Route part 3 of Form 6335 and Form 9494 (part 2) to the Special Procedures function in the originating Area Office.

    6. Forward part 1 of Form 9494 and Form 813 to Returns Files after NMF monthly balancing is completed.

  13. When the full amount of the Personal Liability for Excise Tax is collected, the remaining liabilities will be abated.

  14. The responsibility for initiating and approving abatements and refunds on these accounts lies with the Special Procedures Function in the area office that controls the case.

  15. Collection will prepare Form 1331, Notice of Adjustment, requesting an abatement of assessment. This form will be forwarded to Accounting for input to the ANMF.

  16. The Form 1331 will be assigned a DLN with doc. code 54.

  17. If the account is in TDA status and an adjustment posts leaving a debit balance, a new TDA must be issued. Forward the TDA to the Collection Support function (CSf).

  18. If the adjustment is later determined to be erroneous, the CSf will reverse the adjustment and reinstate the liability using the original assessment date. Collection will prepare Form 3870 and a Memorandum of Authority requesting the reversal of the adjustment. A new TDA must be issued and forwarded to CSf.

Master File Tax Code MFT 31 - Split Assessments

  1. MFT 31 allows accounts requiring split processing to remain on the Master File. Split processing cases require that a joint IMF account be separated into two and sometimes three accounts. Prior to January 2001, these accounts i.e., bankruptcy, culpable spouse, innocent spouse, non-petitioning/petitioning spouse, offer in compromise, were processed on ANMF.

    Note:

    18,000 accounts previously established on NMF were transferred to MFT 31 in 2005.

Offer In Compromise
  1. These assessments are processed to MFT 31 and remain on the Master File with the exception of "Invalid SSNs and deceased secondary spouse SSNs" . This information is included in the IRM for historical and research purposes.

  2. Offers in compromise (OIC) are a proposal for settlement of a tax liability for an amount that is less than previously assessed.

  3. If the offer is to compromise taxes, penalties and interest, the offer is either accepted or rejected by the responsible area office having jurisdiction over the offer.

  4. If the offer is to compromise penalties, except Trust Fund Recovery penalties and those arising under laws relating to alcohol, tobacco and firearms, CSCO has jurisdiction over the determination.

  5. These procedures apply to all Offers in Compromise on the ANMF system.

  6. Accounts in OIC status on the ANMF system will be identified by Status Code 71.

  7. For NMF accounts in TDA status on IDRS, a TC 480 will be input to the IDRS account by CSCO. Input CC STAUP to update the IDRS account to Status 89.

    1. A Form 5147 will be generated to Accounting to update the ANMF account with a TC 480.

    2. Input of a TC 480 into the ANMF account will move the account to status 71.

  8. For NMF accounts not on IDRS, a Form 3177 will be prepared by CSCO and forwarded to Accounting to input a TC 480 to the NMF account.

  9. When the compromise is accepted, OIC will prepare a Form 3177 and forward the document to Accounting for input of a TC 780 (with a zero money amount).

  10. A Form 1331B with doc. code 54 will be prepared to abate the amounts being compromised. RACS Account 6530 will no longer be used for compromised amounts.

    1. The Form 1331B will only indicate abatement of the compromised amount; not the full liability.

    2. If the Form 1331B only indicates a TC 291, pre-search may be required to determine if the TC 291 is greater than the original TC 150 or TC 300. The original assessment may include penalties and interest assessments and multiple abatement transactions may be required.

    3. The abatement transaction codes will be input through the Subsequent Transaction screen.

  11. Payments on the remaining liability (amount not compromised) will be received on a Form 3244 and input to the NMF account through the Subsequent Transaction screen.

  12. For NMF rejected offers, OIC will prepare a Form 3177 requesting input of a TC 481.

  13. For NMF terminated offers, OIC will prepare a Form 3177 requesting input of a TC 781, TC 482.

  14. For NMF completed offers, OIC will prepare a Form 3177 requesting input of a TC 788.

  15. For each action on an OIC account, NMF will request a transcript of that account and forward the requested transcript to the Brookhaven Campus indicated below:
    IRS
    1040 Waverly Avenue Stop 669
    Holtsville, New York 11742

  16. If payments (deferred or collateral) are subsequently received on the amount that has been compromised, OIC will prepare a Form 5734 with doc. code 54 for input of a TC 290 for the payment amount and OIC will also prepare a Form 3244 with doc. code 27 for the payment. The following procedures are in effect until programming is completed to make a TC 290 valid on the Subsequent Transaction screen for accounts in status 71.

    1. NMF will establish a separate NMF account (with a "Dummy " ) Tax Period Ending) for this additional assessment (TC 290 only). The account will be established in status 21 not status 71.

    2. When establishing the account, be sure to input "follow up action on OIC account; payment on comprised amount" in the Cross Reference field of the entity.

    3. After the account has posted to the database (the following day), input the TC 670 payment from the Form 3244 through the Subsequent Transaction screen. This will create a full paid account and no bills to the taxpayer should be generated.

    4. Caution must be taken if the documents are received on a Thursday or Friday. Since the payment transaction is not input until the next day, establishing the account with only the TC 290 will generate a bill to the taxpayer on that Monday. In this case, do not establish the account until the following Monday.

NMF Credit Elects

  1. Effective January 1, 1998 all credit elects will be posted to the ANMF Database.

    1. If the NMF credit elect is for a future NMF return, then the credit should remain on the account until the return that the credit elect is intended for is received or it has aged 365-days or more on The Credit Balance Accounting Listing.

    2. If the credit elect is for a $100 billion or over IMF account, then the credit elect should be moved to the Master File for the next tax period.

NMF Extension of Time to File

  1. Remit and No-Remit Extensions of Time to File will be numbered with the doc. code of the return the extension applies to and forwarded to Code and Edit for approval.

  2. The Code and Edit function will forward approved and disapproved extensions to RACS journalization.

  3. No-Remit Extensions:

    Note:

    Tax preparation firms may submit a list of taxpayers with a cover letter instead of filing separate Form 4868 to request a 6-month extension. These listings of taxpayers can only be processed for extensions without remittance.

    1. RACS will pre-journal No-Remit Extensions. RACS will forward the Form 813 and the extensions to NMF for input to the Index Card Generation sub-system to produce an Index Card for each extension.

    2. In addition to the general information, enter No-Remit into the last address line field.

    3. NMF will forward the original extension and Form 813 to the Cycle Control unit after NMF processing is completed.

  4. Remit Extensions:

    1. Remit Extensions will be treated as Full Paid returns.

    2. RACS will input the Form 813 to the Form 813 Block Control Screen and forward to NMF.

    3. NMF will establish the account through the Original Assessment screen. Input "Extension" in the Cross Reference field. NMF will then input transaction codes 150 and 610 for the amount of the remittance.

    4. A RECAP will generate and forwarded to RACS for journalization.

  5. When the related return is received in NMF, the DBA must make a DBA Correction to change the tax period ending of the extension account to a Dummy period.

    1. If the return is determined to be a Full Paid based on the remittance received with the extension, NMF will establish an account through the Original Assessment screen.

    2. NMF will then input a transaction code 150 with a zero money amount into the transaction screen to record fact of filing.

  6. If additional tax, penalty and interest is due, NMF will establish an account for the remainder assessment through the Original Assessment screen.

  7. If the tax on the return is less than the extension, then NMF will:

    1. Establish the account through the Original Assessment screen.

    2. Give the return to the NMF Specialist for abatement action of the "extension" account using Form 1331B.

    3. Transfer full payment amount on the "extension" account to the related return via Form 2424.

      Note:

      Any Form 2424 prepared in the Accounting operation must be reviewed and initialed by the employee's manger or designee before sending to be processed.

    4. Follow procedures in IRM 3.17.46.11.4, Credit Balances - Refund Returns, for disposition of any credit balance remaining on the account.

Private Letter Ruling (PLR) Also Known as Ruling Letter Assessments

  1. IRC 1362(f)(4) allows the Service to enter into an agreement, via a Private Letter Ruling (PLR), hereafter referred to as "Ruling Letter" , with certain S Corporations to waive the termination of their S election. The Ruling Letter will be faxed from the Headquarters to the Kansas City Submission Processing Campus along with a memorandum.

  2. Use the Ruling Letter as the authority for assessment and as a substitute return.

  3. The intent of the agreement is to establish an account on the ANMF System that will allow the taxpayer to make one payment of the full amount by a designated due date assigned by Chief Counsel, without computing accruals or generating billing notices. The Ruling Letter is sent to the taxpayer at the same time a copy is faxed to the Kansas City Submission Processing Campus for assessment. The Ruling Letter also provides the taxpayer with the address of the Kansas City Campus for purposes of sending the payment for processing.

  4. Although the adjustment covers multiple tax years, only one NMF account will be established for each Ruling Letter, assessing the full amount stated in the letter using a Transaction Code 290.

  5. These assessments will be numbered as follows:

    • Tax Class 6

    • Doc. Code 54

    • Blocking Series 000–999

    • MFT 31

    • Abstract Number 006

  6. RACS will pre-journal the assessment and will input the Form 813 information into the Block Control screen.

  7. RACS will forward the Form 813 and assessment document to NMF for processing.

  8. NMF will establish the account onto the ANMF system using the Original Assessment-Daily screen. Additional field entries unique to these assessments are as follows:

    • Notice Type—1

    • Assessment Type—Q

    • Statement Code—4

    • 23C Date—the current date

    • Periods Assessed—include all periods assessed as indicated on the memorandum for Director of Customer Account Services

    • Period Ending—use the date shown in the upper right hand side of the "Legend" page of the Ruling Letter as the Actual Period Ending

      Note:

      The "Legend" is the first page of the Ruling Letter and states "Legend" in the center of the page.

    • NMF Status—21

    • Exception Code—M

      Note:

      Exception Code "M" will prohibit the generation of notices and update of penalty and interest computations to ANMF.

    • Cross-Reference—input "Ruling Letter per IRC 1362(f)(4)" , "hold notices" . Also include the Chief Counsel contact name, telephone number and PLR Control number located in the upper right of the Legend page of the Ruling Letter.

  9. On the following day, after the account has posted to the database, prepare and number a Form 3177 to input a TC 470 as a subsequent transaction. This will suspend notice issuance until the taxpayer has made full payment.

  10. Care must be taken to ensure that a Penalty and Interest notice is not mailed to the taxpayer if generated. This is generally a one-time payment where NO penalty or interest should accrue or be assessed.

  11. After 90-days have elapsed, an Accounts Maintenance transcript is generated and used to review the account. If the full payment has not been received and applied, the account and Ruling Letter should be reviewed to determine when the payment is due. If the payment is past due contact the ANMF Analyst in Headquarters for further action.

    Note:

    Ruling Letter accounts should be monitored until payment has posted.

Research Form 1120 Foreign Sales Corporation (FSC) Returns and Payments

  1. A one-time project for Form 1120 FSC processing returns and payments occurred prior to 1990 which may have not posted to the BMF or NMF. The NMF Unit in the Kansas City Submission Processing Campus maintains a listing of these documents for research purposes. Contact the NMF Team Manager for research of the listing.

Termination Assessments

  1. A termination assessment occurs when a field officer determines that unusual and perhaps illegal means were used to acquire certain goods or cash. Most requests are received by fax and are used to abruptly terminate the taxpayer's tax year. This results in a short period return which is processed as an NMF return. See IRM 3.17.46.4.1, Daily Assessments.

  2. RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen and include the 23C date on the Form 813.

  3. RACS will forward the Form 813 and the assessment documents to NMF for processing.

  4. NMF will establish the assessment (account) by input through the Original Assessment-Daily screen which will generate Form 6335 (1st notice). Field entries unique to this assessment are as follows:

    1. Input a "Z" in the Notice Type field to produce the Form 6335 and an accelerated TDA.

    2. Input a "J" in the Assessment Type field to indicate a termination assessment.

    3. Input a "4" in the NMF statement field to produce the NMF standard statement.

    4. Depending on the type of assessment involved, type either "Termination" or "Jeopardy" on the first line of the cross-reference field.

  5. When generated, use the TDA as the source document to establish the account on IDRS and distribute the Form 6335 as follows:

    1. Two copies of the notice will be forwarded to CSCO, via Form 3210, Document Transmittal.

    2. One copy of the notice will be forwarded to the Campus Examination Branch, via Form 3210.

  6. Hold the telephone assessment document until the Form 2644 with the supporting documents is received from the area office. When received, associate with the original telephone document used to make the assessment.

  7. Assessment documents will be forwarded to Returns Files after NMF processing is completed.

Title 31 Monetary Penalty Assessments

  1. The American Jobs Creation of 2004 provides the IRS with the authority to impose a monetary penalty against any representative that practices before the IRS for certain conduct. Before the 2004 Act, there was only the authority to suspend or disbar a practitioner from practice before the IRS. This monetary penalty is processed under Title 31 U.S.C. 330 and should be a minimal volume.

  2. Title 31 Monetary Penalty case are exclusively handled by the Office of Professional Responsibility (OPR). OPR is also responsible for:

    • Collection activity

    • Interest calculation for assessment

    • Notice issuance

    • ANMF account history section update

  3. OPR will enter into a Settlement Agreement (similar to a closing agreement) with the individual practitioner, firm or entity. Headquarters will transmit the Settlement Agreement to the Kansas City Submission Processing Campus via memorandum. Use the Settlement Agreement as authority for assessment and a substitute return.

    Note:

    In the situation of an "unagreed" case, a Final Agency Decision will be used in lieu of a Settlement Agreement as the authority for assessment and a substitute return.

  4. The assessment will be made as an Excise Tax using TC 240.

  5. The tax period should always be the year and month that the Director of OPR or his/her designate signed the agreement. For example, January 31, 2011 (date) would be 201101.

    Note:

    Use the date near or next to the Administrative Law Judge's (ALJ) signature in the Final Agency Decision.

  6. Appropriate journalization is necessary to ensure the integrity and balancing of the RACS and ANMF systems. RACS will pre-journalize the initial assessment for the entire amount to Account 1300 Status 89. RACS will forward the package to ANMF to establish an account through the Load Acct/Transfer screen.

    1. NMF will establish the account in Status 89.

    2. Input "Title 31" into the Form field.

    3. Input the phrase "Title 31 Monetary Penalty" into the Cross-Reference field of the entity.

    4. Use the date of input as the Claim Adjustment Pending Date.

    5. Input "M" in the Exception Code field to prevent generation of notices and update of penalty and interest computation to ANMF.

    6. Input TC 470. The transaction date of the TC 470 will be the date of input (same as the Claim Adjustment Pending Date).

      Note:

      ANMF will bypass the systemic reversal of TC 470.

    7. Related payments should be posted to the account using the Subsequent Transaction screen.

    8. After the account is established, forward the Settlement Agreement or Final Agency Decision to Cycle Control for filing under the DLN assigned.

  7. Settlement Agreements or Final Agency Decisions received with full paid or partial remittances will be processed as two documents. The first document (Settlement Agreement or Final Agency Decision) will establish the assessment on the ANMF system, and the second document (Form 3244-A) will post the payment. Monitor the account to ensure the payment posts immediately after the assessment is established to ensure correct billing to the taxpayer by OPR.

  8. The Settlement Agreement or Final Agency Decision (first document) will be numbered as follows:

    1. Tax Class 6

    2. MFT 28

    3. Doc. Code 54

    4. Blocking Series 435-440

    5. Abstract Number 147

    6. Penalty Reference Number (PRN) 779

  9. The Form 3244-A (second document) will be numbered as follows:

    1. Tax Class 6

    2. MFT 28

    3. Doc. Code 27

    4. Blocking Series 435-440

    5. Abstract Number 147

  10. Settlement Agreements or Final Agency Decisions received without payments will be billed by OPR. Payment will be sent to OPR who will then overnight express to the Deposit Unit in Kansas City.

  11. OPR will calculate the interest and prepare Form 3465 for assessment. OPR will fax or send Form 3465 to the attention of the NMF Manager in the Kansas City Submission Processing Campus.

Transferee/Transferor

  1. When the liability of an account is transferred from one TIN (transferor) to another (transferee) this transfer of liability is processed and the account is maintained in NMF. Most requests are received on Form 1296, Assessment Against Transferee or Fiduciary, or Form 2859, from the Examination Division. A "Linked Account" has been added to identify duplicate assessments. See IRM 3.17.46.13.8, Linked Accounts.

    1. RACS will receive the Form 1296 and Form 2859 with Form 813.

    2. RACS will input the Form 813 information through the Form 813 Block Control screen and forward Form 813 and the documents to NMF for processing.

  2. NMF will establish an account on the ANMF System through the Original Daily Assessment screen.

    1. Input a "Z" into the Notice Type field to generate a TDA together with the Form 6335 (immediate TDA).

    2. Input the Transferor information into the Cross Reference field.

    3. Input the statement "Failure to Pay Penalty does not apply" .

    4. Input a "P" into the Exception Code field to allow systemic -compute of penalty accruals for these accounts.

  3. Once the Form 6335 is generated, NMF will input the account to IDRS using the account transcript as the source document.

  4. Mail Form 6335 to the taxpayer, forward a copy of Form 6335 to the Examination function and to CSCO.

Trust Fund Recovery Penalties

  1. Any Form 2749 request received for Trust Fund Recovery Penalty assessment, Reference Code 618, with an Employer Identification Number (EIN) will be processed through NMF. Requests received for Trust Fund Recovery Penalty assessments with an SSN are not processed through NMF but are processed as MFT 55 to the IMF Civil Penalty Module through IDRS. A "Linked Account" field has been added to identify Duplicate Assessments. See IRM 3.17.46.13.8, Linked Accounts.

  2. The Form 2749 for NMF Trust Fund Recovery Penalties are numbered as follows:

    • Tax Class—6

    • Doc. Code—54

    • Blocking series—190–198

    • MFT—17 (Form 941) 19 (Form 943) 45 (Form 720) 12 (Form 1042) 71 (Form CT–1)

    • Abstract number—001

  3. RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen.

  4. NMF will receive the Form 813 and assessment documents from RACS. NMF will establish the assessment (account) by input through the Original Assessment screen which will generate the first notice (Form 6335).

  5. Field entries unique to this assessment are as follows:

    1. Input a "T" in the Notice Type field to produce the Trust Fund Recovery Penalty first notice and accelerate to TDA status.

    2. Determine the type of assessment. The appropriate assessment type will be indicated on Form 2749 and the appropriate codes for the Assessment Type field are below:

    3. Input a "P" for Prompt assessment;

    4. Input a "Q" for Quick assessment;

    5. Input a "R" for Regular assessment;

    6. Input a "1" in the NMF Statement Code field to produce the Trust Fund Recovery Penalty statement on the first notice and to generate Trust Fund Recovery Penalty in the Type of Tax Assessed Description field.

    7. Input the name of the corporation and the CLC assignment codes to the Cross Reference field.

    8. Input the names of the related responsible persons and corporation name in the Cross Reference field. If the corporation name is not present on Form 2749, contact the originating Compliance function.

  6. Distribution for Quick, Prompt and Jeopardy assessments: 2 copies of Form 6335 will be routed to the appropriate Area Office via Form 3210. For all regular assessments mail 2 copies of Form 6335 to the taxpayer. Form 6335 part 3 in both situations will be sent to the originator.

    1. Form 2749, part 1, will be retained as the assessment document. If part 2 is present, send it to the appropriate Area Office, Special Procedures function.

    2. If Form 433A, Collection Information Statement for Wage Earners and Self-Employed Individuals, or levy sources are attached to Form 2749, part 1, forward to CSCO. Send a photocopy of the related Form 6335 to the originating Area Office to the attention of Chief, Special Procedures function.

  7. Establish the account on IDRS using the generated NMF account transcript as the source document.

  8. Forward part 1 of Form 2749 and Form 813 to Returns Files after NMF monthly balancing is completed.

  9. A Transcript of a Trust Fund Recovery Penalty account will be generated for distribution to BSC (Brookhaven Service Center) or OSC (Ogden Service Center) CSCO each time payments, credits, abatements or other transactions are posted to the account. Determine distribution of transcripts using the chart below.

    CSCO Corporate Entity State

    Brookhaven
    Internal Revenue Service
    1940 Waverly Ave
    Holtsville, NY 11742
    Stop 662B
    CT, DC, DE, GA, KY, MA, MD, ME, NC, NH, NJ, NY, OH, PA, RI, SC, VA, VT, and WV

    Ogden
    Internal Revenue Service
    1973 North Rulon White Blvd
    Ogden, UT 84409
    Stop 5300
    AK, AL, AR, AZ, CA, CO, FL, HI, IA, ID, IL, IN, KS, LA, MI, MN, MO, MS, MT, ND, NE, NM, NV, OK, OR, SD, TN, TX, UT, WA, WI, WY, Guam, Puerto Rico, and Virgin Islands
  10. When Collection requests transfer of an account because of TDA transfer, refer to IRM 3.17.46.9, Establishing and Updating NMF TDA Accounts on IDRS, for establishing NMF TDA accounts on IDRS.

  11. Accelerate Trust Fund Recovery penalty to TDA status immediately.

    1. The NMF TDA IDRS file will accept only the first 4-digits of the TDA/TDI Assignment Code. The TDA should reflect the 4-digit assignment code of the area where the taxpayer lives. When IDRS reflects the account, the 4-digit assignment code will show. Collection will reassign the TDA to its full 8-digit TDA/TDI Assignment Code.

    2. When the account is input to IDRS enter information about other related persons from Form 2749 on the 3rd and 4th name lines of the screen display. Include:

    3. Last name, first initial

    4. TIN

    5. State abbreviation of where the related person resides.

      Note:

      Do not enter TINs or account types into the second name line address field of IDRS-NMFTM.

  12. The responsibility for input of a TC 130 on all Trust Fund Recovery penalty cases lies with the Collection Division. Accounting will not input a TC 130 for these cases.

  13. The responsibility for initiating the approving abatements and refunds on Trust Fund Recovery Penalty accounts lies with the Special Procedures Function (or ) in the area that controls the case.

  14. Occasionally, the Revenue Officer requesting the assessment will know that the assessment will be uncollectible. Form 53, Notice of Currently Not Collectible Status, will be received along with the request for assessment, Form 2749.

    1. Input the assessment through the Original Assessment screen and mail the first notice, Form 6335 to the taxpayer.

    2. Do not establish the account on IDRS.

    3. Forward Form 53, Report of Currently Not Collectable Taxes, to the numbering function for numbering and preparation of Form 813. If signature of originator and/or signature of manager is missing reject to the originator or Area Office.

    4. The numbering function will forward Form 813 and Form 53 to RACS for input to the Form 813 Block Control.

    5. RACS will forward Form 813 and documents to NMF for input of the TC 530 to the account through the Subsequent Transaction screen.

    6. Prepare Form 1725 Routing Slip and notate "pre-assessment 53, no TDA issued" . Attach it to Form 2749. Route a copy of Form 6335 and Form 2749 (parts 2, 3, and 4) to the appropriate Compliance function in the originating Area Office.

    7. Forward part 1 of Form 2749 and Form 813 to Returns Files after NMF monthly balancing is completed.

Form 514-B Accounts Transferred-In

  1. The Transfer function will prepare Form 514-B from the Master File and prepare Form 813 to process as follows:

    1. Assign a DLN with a doc. code of 51.

    2. Determine the appropriate NMF status and annotate it and the date on the left margin of the Form 514-B. For Status 21 (First Notice), enter 23C date. On Status 20, 56, 58 and 22 (TDA), include the 23C date and all other notice issuance dates.

    3. Prepare a Form 1725, Routing Slip, to route the Form 514-B to NMF. Include the NMF status on Form 1725 for easy identification for NMF to load the account onto the system in the correct status.

  2. The NMF function will load the new account onto the ANMF System through the Load Old ACCTS/TRANSFER-IN screen. Enter the Notice Type field as follows:

    1. Prepare for correction—blank.

    2. IMF/BMF Overflow—blank.

    3. Transfer from another center—R.

    4. Reverse erroneous abatements—blank.

    5. Enter the NMF status and dates from the Form 514-B.

    6. Enter the Notice Type explanation in the Cross Reference field (overflow, reverse erroneous abatements, etc.).

    7. Enter the original DLN into the Cross Reference field.

  3. The ANMF system allows for only one 23C date per account. It is extremely important to ensure that the transfer function has picked-up the correct 23C date for establishment on NMF if the account carries multiple assessments with multiple 23C dates.

    1. As a general rule, the most current 23C date should be used to establish the NMF account.

    2. If the account contains more than one assessment and all but one assessment has been satisfied (by at least nine-months), use the 23C date of the remaining balance due assessment. If this is the case, establishing separate accounts is not required.

    3. If the account contains more than one assessment and more than one of the indicated assessments remain as balance due, establish a separate NMF account for each balance due assessment taking care that the correct 23C date for each separate assessment is used.

    4. If the account contains more than one assessment and there is an unreversed TC 534 the account will need to be split to establish separate NMF accounts for each assessment taking care that the correct 23C date for each separate assessment is used.

    5. The originator requesting the transfer of a Master File account to NMF should be responsible for determining the correct 23C Date of all assessment transactions, especially those that may suspend the Assessment or Collection Statute Expiration Dates (ASED, CSED).

    6. If errors are detected, request assistance from the NMF Account Specialist in determining the correct CSED. Based on the complexity of the account, it may be necessary to refer the case back to the Credit and Account Transfer technician for immediate resolution in accordance with IRM 3.17.21, Credit and Account Transfer.

    7. If it is determined that the CSED is incorrect, then the originator should prepare Form 3177 or input Transaction Code 550 via IDRS for subsequent posting to the ANMF. Only posted TC 550 transactions on the MF account should be transferred to ANMF.

      Note:

      Effective January 1, 2001, IMF split accounts will post to the Individual Master File to MFT 31. If there is a problem with the CSED, then the originator or Collection function can input the TC 550 via IDRS.

    8. If the account is a transfer from the Master File, ensure that the Transfer function has correctly converted the transaction codes as described in IRM 3.17.46.5.16.1

    9. If the balance due is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ prepare Form 3177, Notice of Action for Entry on Master File, with TC 130 and route to the Submission Processing Campus Collection function. The Daily and Weekly NMF Accounts Flagged for Notice/TDA List may be used in lieu of Form 3177.

  4. If the message "Account with this Primary Key already exists on the database" appears at the bottom of the screen during the input of the entity information, research to determine if this account is a true re-transfer-in. In this case, follow the instructions below.

    1. Hand carry the Form 514-B document to the DBA for correction.

    2. The DBA will select the option Restricted Database Changes and input a "dummy" Tax Period to the previously closed account. See IRM 3.17.46.15.5, Notice and Account Corrections, for instructions.

    3. On the following day, the DBA will verify that the "dummy" Tax Period has posted to the closed account. If the change has not posted to the closed account, it will appear on the Unprocessed Restricted Database Changes list.

    4. Once the Change is verified, the DBA will return the Form 514-B for continued processing through the Load Old ACCOUNTS/TRANSFER-IN screen.

  5. Entry through the Load Old ACCTS/TRANSFER-IN screen will automatically generate an account transcript the next day. These transcripts will be distinguished from the requested transcripts by the "99999–99999" in the employee number field on the transcript. The NMF function will verify the transcripts to the Form 514-B for accuracy of all entries. If there is an error, prepare DBA correction request.

  6. NMF will forward the following to the Account Transfer function:

    1. Form 10869

    2. Form 514-B

    3. Form 813

    4. CP 96 or 296

    5. 99999-99999 transcript

  7. The Account Transfer function will forward the below items to the RACS function who will input the account (pre-journalized) to RACS and annotate the RACS journal number on the supporting documentation:

    1. Form 514-B

    2. Form 813

    3. CP 96 or 296

    4. 99999-99999 transcript

  8. NMF will forward to Cycle Control after NMF processing is completed.

Master File Overflow Transfer-In
  1. The Master File was not designed to accept an unlimited number of transaction codes per account module. When a Master File account contains too many "lines" and the module has met overflow status, a transaction code 400 will systemically post to transfer the account module to NMF. The account will be established through the Load Old Accounts/Transfer-In Screen and maintained on the ANMF system. See Exhibit 3.17.46-2, Load Account - Field List.

  2. If the account is in overflow status on the Master File, a CP 96 or 296 is also generated. This transcript is identified by a blocking series 999 and the word "Overflow" under the transcript title.

  3. The Transfer function will receive the CP 96 or 296 and prepare the Form 514-B and Form 813 for NMF processing.

    Note:

    A CP 96 that generates for MFT 55 with TC 240, REF-NUM 618 on Master file denotes Trust Fund Recovery and must be input to the ANMF system using MFT 17 and Abstract 001. Input "1" in the NMF statement code, and cross-reference EIN of related corporation.

    Note:

    A CP 96 that generates for MFT 55 with TC 240, REF-NUM 631 on Master file must be input the to ANMF system using MFT 28, PRN 630, and Abstract 189.

  4. NMF will follow normal Transfer-In procedures with the following exceptions, see IRM 3.17.46.5.16, Form 514-B Accounts Transferred-In.

    1. NMF will establish the account in the status indicated on the Master File account (i.e., If the account carries an unreversed TC 530, the NMF account will be established in status 53).

    2. NMF will input "RBA (Restitution Based Assessment) Overflow" in the cross reference field if the Account Transfer function has notated "RBA Overflow Account" on the top of the CP 96 or 296.

      Note:

      TC 971 AC 102 on MF denotes an RBA.

    3. Input a “R” in the Exception Code Field to restrict interest and penalty, for all RBA Overflow accounts.

    4. The Notice Type field of the entity screen will be left blank.

    5. NMF will include all the appropriate transaction codes from the CP Notice when establishing the account.

    6. Verify to ensure that the Transfer function has converted the transaction codes as follows:

    TC ACTION
    186 Change to 180
    187 Change to 181
    190, 196, 336 Change to 340
    191, 197, 337 Change to 341
    238 Change to 234
    239 Change to 235
    246 Change to 240
    276 Change to 270
    277 Change to 271
    286 Change to 280
    294, 298 Change to 290
    295, 299 Change to 291
    304, 308 Change to 300
    305, 309 Change to 301
    370 Do Not Add
    380, 386 Change to 607
    388 Do Not Add
    389 Do Not Add
    400 Do Not Add
    402 Do Not Add
    420 Do Not Add
    421 Do Not Add
    424 Do Not Add
    534 (.00) Do Not Add
    534 (with money) Change to 604
    535 (.00) Do Not Add
    535 (with money) Change to 605
    537 Change to 531
    570 Do Not Add
    600 Change to 606
    620 Change to 670
    621 Change to 671
    622 Change to 672
    630, 636 Change to 800
    632, 637 Change to 802
    660 Change to 430
    666 Change to 700
    667 Change to 820
    678 Change to 670
    679 Change to 672
    701 Change to 702
    706 Change to 700
    720 Change to 841
    721, 722 Change to 843
    736 Change to 730
    756 Change to 700
    768 Change to 764
    776 Change to 770
    790, 796 Change to 700
    792 Change to 820
    806 Change to 800
    807 Change to 802
    821 Change to 822
    824, 826 Change to 820
    836 Change to 830
    843, 846 Change to 840
    856, 876 Change to 850
    890, 896 Change to 820
    892, 897 Change to 822
    976, 977 Change to 670
    REMIT  

    Note:

    TC 800 should be coded with the due date of the return.

  5. Once established on the ANMF system, routine accounts maintenance will apply.

    1. If the account becomes a credit balance and a credit balance transcript is generated. See IRM 3.17.46.11.4, Credit Balances-Refund Returns, for procedures.

  6. Due to programming difficulties on the Master File, accounts that meet overflow criteria and are in a credit balance will also be transferred to NMF.

    1. Since the volume for these types of accounts is expected to be small and they will require special handling, they will be routed to NMF in a Special Handling folder.

    2. The Form 813 will be numbered with a doc. code 58 with a Form 3809 attached. Under the Form 3809 will be a Form 514-B numbered with a doc. code 51. DO NOT input this account with the doc. code 58. Input this account in the normal Transfer-In manner through the Load screen using the Form 514-B with the doc. code 51.

    3. Input the doc. code 58 DLN into the Cross Reference field. See IRM 3.17.21 Credit and Account Transfer, and IRM 3.17.30, SC Data Controls, if more information is needed.

RPP, Return Preparer, RBA Restitution Based Assessment, Accounts Transfer In
  1. RPP RBA case types are the result of a tax loss to the government where the basis for the RBA is generally related to a Return Preparer tax scheme. RPP case types can be identified on Master-File by an Adjustment Reason Code 141 or 142 associated with the RBA TC 29X. RPP RBA accounts can have a very high number of client accounts that are required to be linked and cross-referenced causing overflow condition and causing delays in posting credits and payments to these accounts.

  2. The RBA function will prepare Form 12810 and indicate this by notating RPP-RBA in the remarks field.

  3. The Account Transfer function will indicate RPP-RBA on the CP notice and follow normal account transfer procedures.

  4. The NMF function will follow normal transfer in procedures, see IRM 3.17.46.5.16, Form 514-B Accounts Transferred-In, for procedures.

    1. Input RPP-RBA into the Cross Reference field when establishing the account on the ANMF system.

    2. Input a “R” in the Exception Code Field to restrict interest and penalty, for all RPP-RBA accounts transferred to ANMF.

Form 514-B Accounts Transferred-Out

  1. The Transfer function will prepare Form 3413 and Form 514-B for either Master File or NMF accounts respectively. Attach a current NMF transcript. Number the documents with a 51 doc. code and forward to the RACS function.

  2. The RACS function will establish the transfer onto the ANMF System using the Form 813 Block Control screen and forward the documents to the NMF function.

  3. The NMF function will expeditiously input the TC 400 to the ANMF System through the Subsequent Transaction screen. When the TC 400 posts to the account (the next day):

    1. A NMF transcript will be generated the following day. Forward the NMF transcript to the Account Transfer function.

    2. Forward Form 813 and Form 514-B to Returns Files after month end balancing is complete.

  4. If the TC 400 goes unpostable because the TC 400 account balance amount does not equal the account balance reflected on the ANMF System, a unpostable code (UPC) 040 transcript will be generated at that time.

    1. Nullify the transaction with reason code 040.

    2. Associate the NMF transcript and the Nullified unpostable list with the entire package and return it to the RACS function.

    3. RACS will return the nullified cases to the Transfer function for correction of the TC 400 amount.

  5. The Transfer function will receive the nullified cases from the RACS function with the account transcript and prepare the corrected Form 514-B and forward it to the RACS function.

  6. The RACS function will re-establish the account with a new DLN using the Form 813 Block Control screen and forward to the NMF function.

  7. An NMF account in status 71 or 89 (TC 520) should not be transferred to Master File. Contact should be made with the responsible function to resolve the status condition prior to the transfer. Only after the account status has been changed to either a notice or TDA status should a TC 400 be input to the account.

  8. The only accounts that are transferred from another campus to Kansas City Submission Processing Center (KCSPC) NMF are either Master File Overflow or Reversal of Erroneous Abatement accounts. In both instances, the Master File account may have to be split into several NMF assessments when moved from the Master File to NMF. Each separate assessment on the Master File module becomes a separate account on NMF.

    1. If one of the balance due accounts from the split meets transfer criteria, research the entire database, including the open and closed file, to locate all the related NMF accounts for that taxpayer and Tax Period Ending.

    2. The balance due account usually will carry the Actual Tax Period Ending and the other related accounts will carry a Dummy Tax Period Ending.

    3. It is essential to transfer all the related accounts so that a complete audit trail of the Master File module can be input to the NMF database at the campus that now has the geographical jurisdiction for that particular taxpayer.

    4. There is no criteria to reject these related types of accounts back to the campus that transferred the account.

Form 706 Schedule R-1 for Generation-Skipping Transfer Tax (Direct Skips from a Trust Payment Voucher)

  1. Code Section 2603(a)(2) provides that the Generation-Skipping Transfer (GST) tax imposed on a direct skip from a trust is to be paid by the trustee. Schedule R–1 (Form 706, U.S. Estate Tax Return) serves as a payment voucher for the trustee to remit the GST tax to the Internal Revenue Service.

    Note:

    The Estate Tax has been repealed for 2010. Form 706 Schedule R-1 is not required to be filed where the Date of Death (DOD) is January 1, 2010 through December 31, 2010. In addition, payments should not be received for this time period.

  2. The Schedule R–1 (Form 706) is due to be filed and the tax paid by the trustee nine-months after the date of death, but a 2 month extension is automatically granted to file and pay the tax. If the form is filed and tax paid during the 2 month extension period, interest is charged, but no penalties are assessed.

  3. Receipt and Control Branch will forward the schedules to Returns Analysis for code and edit, math verification and computation of penalties and interest.

  4. The schedule will be processed as a 706B return and numbered as follows:

    • Tax Class 6

    • Doc. Code 85

    • Blocking Series 590–599

    • MFT 53

    • Abstract Number 141

  5. Returns Analysis will forward perfected schedules to RACS for input to the Form 813 Block Control screen. RACS will then forward Form 813 and the related documents to NMF for further processing.

  6. NMF will first research IDRS for the DLN of Form 706 for association of the schedule with the return after processing and to input to the Cross Reference field when the account is established.

  7. NMF will then establish an account on the ANMF System through the Original Assessment screen. Input the related Form 706 DLN, decedents name, and TIN to the Cross Reference field of the entity screen.

  8. Regular billing schedule and accounts maintenance will apply.

  9. Forward Schedules R–1 to files to be attached to the Form 706 after NMF processing is completed. Send a Form 10023-B, Attachment (To Be Associated With Return) to Cycle Control to cross-reference the Schedule R–1 DLN to the Form 706 DLN.

Form 706-A, United States Additional Estate Tax Return

  1. Current regulations require that Form 706-A be filed and the tax paid within six-months after qualified property ceases to be Section 2032A property.

    Note:

    The Estate Tax has been repealed for 2010. Form 706-A is not required to be filed where the Date of Death (DOD) is January 1, 2010 through December 31, 2010. In addition, payments should not be received for this time period.

  2. Code and Edit will compute interest from the due date of the return to the date of payment on the entire balance due at the rates and periods prescribed in IRM 20.2, Interest. The due date (which is after the date of disposition) of the Form 706-A will appear in the top margin of the return.

  3. RACS will receive the Form 706-A and Form 813 for input through the Form 813 Block Control screen.

  4. The block of documents will be numbered as follows:

    • Tax Class 6

    • Doc. Code 84

    • Blocking Series with remittance: 500–524; without remittance: 590–599

    • Abstract Number 141

    • MFT 53

  5. RACS will forward the Form 813 and the assessment documents to NMF for processing.

  6. NMF will establish the account on the ANMF System through the Original Assessment screen.

  7. Form 706-A should be processed as any normal remit/non-remit NMF return. Standard billing schedule and accounts maintenance will apply.

  8. The assessment documents will be forwarded to Cycle Control after NMF processing is completed.

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

  1. Form 706-QDT is based on Code Section 2056(d) and 2056(a) enacted by the Technical and Miscellaneous Revenue Act of 1988 and amended by the Revenue Reconciliation Act of 1989. The Qualified Domestic Trusts (QDT) rules are effective for estates of decedents dying after November 10, 1988.

    Note:

    The Estate Tax has been repealed for 2010. Form 706-QDT is not required to be filed where the Date of Death (DOD) is January 1, 2010 through December 31, 2010. In addition, payments should not be received for this time period.

  2. The trustees or designated filer of a qualified domestic trust (QDT) uses Form 706-QDT to figure and report the estate tax due on certain distributions from the QDT and on the value of the property remaining in the QDT on the date of the surviving spouse's death. A QDT applies only in those situations where a decedent's surviving spouse is not a U.S. citizen.

  3. Form 706-QDT will be numbered as follows:

    • Tax Class 6

    • Doc. Code 85

    • Blocking Series 519–524 with Remit; 590–599 without Remit

    • MFT 53

    • Abstract Number 220

  4. Returns Analysis will code and edit, math verify, and compute penalties and interest due on these returns.

  5. Perfected returns will be forwarded to RACS for input to the Form 813 Block Control screen.

  6. RACS will forward Form 813 and the assessment documents to NMF for processing.

  7. NMF will establish the account on the ANMF system through the Original Assessment screen.

    Note:

    The account must be established using the TIN and name of the Trust (currently on page 3 of the Form 706-QDT), in care of the Trustee. In put the information from line 1b, 4a, 4b, and 4c from page 1, Part I, General Information section in the cross reference field.

  8. The standard billing schedule and accounts maintenance will apply.

  9. The forms should be forwarded to Cycle Control after the monthly balancing is completed.

Form 1040-NR, U.S. Non-Resident Alien Income Tax Return

  1. These returns are filed to report income received by foreign estates or trusts. Form 1040-NR filed by Non-Resident individuals are processed to Master File. Form 1040-NR filed as Fiduciary Returns are processed to the ANMF system.

    Note:

    Effective March 18, 2010, on tax year 2009 returns and subsequent the Hiring Incentives to Restore Employment (HIRE) Act of 2010 added IRC 6611(e)(4) changing the credit interest-free period from 45 to 180-days on overpayment refunds related to Chapter Three Withholding (CTW) (IRC 1441 through IRC 1446). The 180-days applies to credits received from Form 1042S, Form 8805, and Form 8288A. If the credit does not apply to the CTW, then the 45-day interest period applies to any refund. If the refund consists of a combination of CTW and Non-CTW then the 45-days applies to the Non-CTW amounts and the 180-days applies to the CTW amounts.

  2. RACS will receive these returns and input Form 813 information through the Form 813 Block Control screen.

  3. The block will be numbered as follows:

    • Tax Class 6

    • Doc. Code 72/73

    • Blocking Series with remittance: 600-699; without remittance: 000-099

    • Abstract 004

    • MFT 20

  4. RACS will forward the Form 813 and the 1040-NR to NMF for processing.

  5. NMF will establish an account on the ANMF System through the Original Assessment screen.

  6. Refunds—Overpayments on returns will be processed on ANMF. Form 3753, Manual Refund Posting Voucher, will be prepared as instructed in IRM 21.4.4.4, Preparation of Manual Refund Forms. The refund will be scheduled using manual refund procedures. Enter in the cross reference field Refund and the amount of the refund.

  7. Credit Elect—If the return is noted that the credit should be applied to the next tax year, enter in the cross reference field "Credit Elect MMDDYY" (month, day, year) and the amount of the credit elect.

    Note:

    Credit elects should remain on account until the return it is intended for is received or it has aged 365-days or more on The Credit Balance Account Listing.

  8. Balance Due—Standard billing procedures will apply.

  9. Form 3809 will be prepared to post TC 710 (credit elect from prior year).

  10. Documents will be forwarded to Cycle Control after NMF processing is completed.

Forms 1042 and 1042S FY 84 and Prior - Assessment on Discrepancies

  1. Form 1042 and Form 1042S, Foreign Person's U.S. Source Income Subject to Withholding, will be verified by Adjustment Branch to determine that correct rates were used and the proper amount of taxes were withheld from non-resident aliens. The withholding agent will be liable for any tax that has been under-withheld.

  2. The Adjustment area will prepare a Form 5734, Non-Master File Assessment Voucher, and attach to the original return showing the amount of tax to be assessed against the withholding agent. The Form 5734 and the original return will be forwarded to Accounting for assessment and billing. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. RACS will receive Form 5734 and the original return from Accounts Management and input the Form 813 information into the ANMF System using the Form 813 Control screen. The block of documents will be numbered as follows:

    • Form 1042 Tax Class 1, Doc. Code 25

    • Form 1042S Tax Class 6, Doc. Code 66

    • Blocking series 500–599 for Form 1042 and 000–299 for Form 1042S

    • Abstract number 001

    • MFT 12

  4. RACS will forward Form 813, Form 5734 and the original return to NMF for processing.

  5. NMF will establish an account on the ANMF System through the Original Assessment screen using Form 5734 and the original return.

    1. Transcribe the assessment date and DLN on the label attached to the return.

    2. Input "Underpaid Withholding" and the code section involved in the Cross Reference field.

  6. If a balance due condition exists, the standard NMF billing schedule and accounts maintenance will apply.

    1. Form 6335 will be mailed to the withholding agent and a copy will be forwarded to the originator in Accounts Management.

    2. If the return is "full paid" , request a transcript of the account and forward the transcript to the originator in Accounts Management.

  7. Payments received will be processed as normal NMF payments and a copy of the notice will be used as a supporting document for posting to the NMF account.

  8. Payments secured by revenue officers will be entered on Form 3244, Payment Posting Voucher, which will be used as a supporting document for posting to the NMF account.

  9. Account reviews will be performed systemically; credit balances will generate a credit balance transcript and be resolved as required. See IRM 3.17.46.11.4, Credit Balance-Refund Returns.

  10. The assessment documents will be forwarded to Cycle Control after NMF processing is completed.

Form 1065 Partnership Accounts Over 10 Billion Dollars

  1. Form 1065, U.S. Partnership Return of Income, which cannot be processed to Master File because the module balance is $10 billion or greater will be routed to the Accounting Function for processing to NMF. RACS will receive these returns and input Form 813 information through the Form 813, Block Control screen.

  2. Form 1065 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 65

    • Blocking Series: 500–599

    • MFT 35

  3. NMF will establish an account on the ANMF system through the Original Assessment Screen.

  4. Balance Due-Estimated (ES) tax payments of 10 billion dollars or more will be located in the 4610 account. The return should indicate that ES payments have been made. Research the 4610 account and ensure that all payments have been transferred to NMF. Standard billing will apply.

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

  1. Form 1120-IC-DISC, Interest Charge Domestic International Sales-Corporation Return, is an information return filed by Interest Charge Domestic International Sales Corporations (IC–DISCs) and former DISCs. After the tax year ends the IC–DISC makes a pro rata property distribution to its shareholders and specifies at the time that this is a distribution to meet the qualification requirements. If the IC–DISC makes this distribution after the date Form 1120-IC-DISC is due, an interest charge must be paid to the Internal Revenue Submission Processing Campus where the form was filed. The charge is 4 percent of the distribution times the number of tax years that begin after the tax year to which the distribution relates until the date the IC–DISC makes the distribution. This payment may be identified from a taxpayer's reference to interest charge under regulations section 1.992–3(c)(4).

  2. If there is no tax to be assessed and there is no evidence of a payment with the Form 1120-IC-DISC, prepare an index card through the stand alone Index Card program. Do not establish an account on the database.

  3. All returns with evidence of a payment will be processed as full–Paid Return. If there is evidence of a payment with Form 1120-IC-DISC, RACS will prepare a Form 813. RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen and forward the Form 813 and Form 1120-IC-DISC to NMF for processing.

  4. The block of documents will be numbered as follows:

    • Tax Class 6

    • Doc. Code 20

    • Blocking Series 200–249 with remittance, 250–299 without remittance

    • Abstract number 006

    • MFT 23

  5. If there is evidence of a payment, NMF will establish an account on the ANMF System through the Original Assessment screen.

  6. After processing is complete forward the Form 1120-IC-DISC to the Cycle Control Function.

Form 2438, Regulated Investment Company Undistributed Capital Gains Tax Return

  1. These returns will be received separately batched in blocks of remittance and non-remittance returns. Form 2438 will be assessed as normal NMF returns but require special handling since Federal Tax Deposits must be transferred from BMF to satisfy the tax liability prior to notice issuance.

  2. RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen.

  3. The block of documents will be numbered with the following:

    • Tax Class 6

    • Doc. Code 86

    • Blocking Series: 000–999

    • Abstract number 006

    • MFT 38

  4. RACS will forward the Form 813 and the assessment documents to NMF for processing.

  5. NMF will establish an account on the ANMF System through the Original Assessment screen.

    1. Input a "4" in the NMF Statement Code filed for the NMF standard statement.

    2. After establishing the account, photocopy the Form 2438 and forward the photocopy to the NMF Accounts Maintenance function.

    3. The Accounts Maintenance function will immediately request a transcript of the taxpayer's BMF Form 1120 account through IDRS.

    4. If the FTD credits are located, transfer the credits to the NMF account.

    5. Prepare and number Form 3177 to input the TC 470 to the NMF account to hold notices until the transfer of the FTD credits are completed.

    6. If the credits cannot be found, mail Form 6335 to the taxpayer.

  6. The assessment documents will be forwarded to Cycle Control after NMF processing is completed.

  7. In rare case Exempt Organizations may file Form 990T, Exempt Organization Business Income Tax Return, to claim a refund of taxes paid on their behalf by the Regulated Investment Company. These claims will normally be received by the Accounts Management Branch who would then request an abatement (Form 1331B). See IRM 3.17.46.2.6, Certification of Overassessments, to process the overassessment.

Form 4720A (Form 4720), Return of Certain Excise Taxes on Charities and Other Persons Under Chapter 41 and 42 of the Internal Revenue Code

  1. Form 4720 is used to report the excise taxes on Private Foundations, Public Charities, Self-Dealers, Disqualified Persons, Foundation Managers and Organization Managers for activities which are not in accordance with the charitable purpose. It provides for the assessment of tax against an organization as well as an individual. Generally, Form 4720 must be filed by the due date for filing Form 990PF, Form 5227, Form 990 and Form 990EZ.

  2. Form 4720 are processed by Ogden Submission Processing Campus (OSPC). They will determine if a Form 4720A is required based on information in Part II and the signature area on page 6. Accordingly, Form 4720A is prepared and routed to NMF for processing.

  3. Processing procedures are different depending on who is filing the return. NMF will receive Form 4720A for processing if the:

    • Organization is filing for the individual(s), OSPC will prepare a separate Form 4720A for each individual listed on Form 4720, Part II.

    • Individual is filing a separate Form 4720, OSPC will convert the original Form 4720 to Form 4720A.

    • Original Form 4720 does not have a signature on the line for the "signature of officer or trustee" on page 9 (regardless if there are entries in Part I), but there is/are signature(s) on the line for self-dealers, disqualified persons, foundation managers, OSPC will convert original Form 4720 to an "A" for use as the first entry in Part II A. Photocopies of Form 4720A will be used for each additional entry in Part II A.

    • Ogden is responsible for determining whether Form 4720 is being filed for individual(s) and resolving any correspondence issues.

  4. RACS will receive Form 4720A and Form 813 for input through the Form 813 Block Control screen.

  5. Form 4720A will be numbered as follows:

    • Tax Class 6 (True Tax Class 4)

    • Doc. Code 71

    • Blocking Series: 000 —399 non-remittance; 600–699 with remittance

    • MFT 66

  6. Abstract Numbers —various:

    • 150–Self Dealing

    • 151–Undistributed Income

    • 152–Excess Business Holdings

    • 153–Investments which Jeopardize Charitable Purpose

    • 154–Taxable Expenditures

    • 182–Excess Grass Roots Contributions

    • 183–Excess Lobbying Contributions

    • 213–Tax on Political Expenditures

    • 214–Tax on Disqualifying Lobbying Expenditures

    • 232–Excess Benefit Transaction

    • 234–Split Dollar Insurance

    • 237–Prohibited Tax Shelter Transaction

    • 238–Tax on Taxable Distributions

    • 239–Tax on Prohibited Benefits

  7. NMF will establish an account on the ANMF system through the Original Assessment Screen.

    1. Include the name and EIN of the organization or entity in the Cross Reference field.

  8. Balance Due-research Master File to ensure that all payments/credits have been transferred to NMF. Standard billing will apply.

Form 8404, Interest Charge on DISC-Related Deferred Tax Liability

  1. Shareholders of Interest Charge Domestic International Sales Corporations (IC–DISCs) use Form 8404, Computation of Interest Charge on DISC-Related Deferred Tax Liability, to figure and report their interest on DISC related deferred tax liability.

  2. The Receipt and Control or Document Perfection function will forward all Form 8404 remittance returns to RACS for input to the ANMF System using the Form 813 Block Control screen. The numbering of this document is as follows:

    • Tax Class 6

    • Doc. Code 69

    • Blocking Series with remittance: 300–349; without remittance: 600–699

    • Abstract Number 009

    • MFT 23

  3. RACS will forward the Form 8404 and Form 813 to NMF for processing.

  4. NMF will establish an account on the ANMF System through the Original Assessment screen.

  5. The standard billing schedule and accounts maintenance will apply.

  6. The Assessment documents will be forwarded to Cycle Control after the NMF processing is completed.

Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts and 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies

  1. Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts, and Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies will be processed as NMF. Both returns are due March 15 of the year following the year to which the liability applies. NMF WILL NOT pre-search Form 8612 and Form 8613 prior to processing to ANMF.

  2. Receipt and Control Branch will forward the accounting package to RACS and the returns to Returns Analysis for code and edit, math verification.

  3. Form 8612 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 21

    • Blocking Series with remittance: 400–499; without remittance: 000–099

    • MFT 89

    • Abstract Number 192

  4. Form 8613 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 22

    • Blocking Series with remittance: 500–999; without remittance: 300–499

    • MFT 14

    • Abstract Number 193

  5. Perfected returns will be forwarded to RACS for input of the Form 813 information to the ANMF System using the Form 813 Block Control screen.

  6. Form 8612 and Form 8613 will be forwarded to NMF from RACS Unit for normal NMF processing.

    1. All returns will require establishment of an account on the ANMF System through the Original Assessment screen.

    2. Form 8612 and Form 8613 are subject to all normal penalties and interest computation as outlined in the IRM 20.2, Interest and the IRM 20.1, Penalty Handbook.

    3. Standard billing and accounts maintenance will apply.

      Note:

      If a Form 2758 or Form 7004 extension with remit has been filed and established, NMF will process Form 8612 and Form 8613 with a "Dummy Period." Return block of work to DBA. The DBA must make a DBA correction following instructions in IRM 3.17.46.5.9 (5), Extensions with Remit.

  7. Returns should be forwarded to Cycle Control after NMF processing is completed.

Form 8697/8866, Interest Computation Under the Look-Back Method for Completed Long Term Contracts and Property Depreciated Under the Income Forecast Method

  1. Effective May 9, 2010, ANMF will resume processing Refund Form 8697 and Form 8866 only when there is no return (TC 150) posted on MF. This is an interim process until further notice.

  2. Effective January 1, 2005, Form 8697 and Form 8866 are processed as BMF or IMF for Form 1120, Form 990T, and Form 1040. In July 2005, Form 8697 related to Form 1041 and Form 1065 are processed as BMF. NMF only processes these forms if there is no return (TC 150) on MF.

  3. The Tax Reform Act of 1986, under Section 460(b)(3) requires issuers of long term contracts (more than one tax year) entered into after February 28, 1986, to re-evaluate after the completion of the contract, the actual income/costs to those estimated at the beginning of the contract. A computation of the interest resulting from the discrepancies in taxes paid and taxes that should have been paid each year is required. This computation results in interest either owed by the taxpayer or to be refunded to the taxpayer. The Form 8697 is used to compute and report the interest due or to be refunded.

  4. The Form 8697 are now attached to Form 1120, Form 990T, or Form 1040 and are filed and processed on the Master File. If the form is not treated as an attachment and is filed separately by the taxpayer for a refund, it will continue to be processed through NMF when there is no return (TC 150) posted on MF. This is the only situation that requires NMF processing.

  5. Refund Form 8697 will be processed through the Accounts Management function.

  6. Refund Claims on Form 8697

    1. Refund Form 8697 will be received in the Refund function in the Accounting Branch with Form 1331B and Form 3753 requesting refund processing.

    2. The refund will be scheduled using manual refund procedures in IRM 21.4, Refund Inquiries.

    3. RACS will pre-journal the Form 1331B and forward it and its related Form 813 and Form 8697 and a photocopy of Form 3753 to NMF for establishment of the account.

    4. RACS will input the original Form 3753 to the Form 813 Block Control Screen and forward it and its related Form 813 and a photocopy of Form 8697 and 1331B to NMF.

    5. The NMF function will receive Form 813, Form 8697, Form 1331B and a photocopy of Form 3753. Establish the account through the Load Old Accounts/Transfer-In Screen using TC 766, MFT 69, with doc. code 54. The abstract number to be used will be determined by the refund issue claimed on the Form 8697.

      Abstract Number Type
      210 Corporation
      211 Individual
      212 Estate or Trust
    6. Form 813 and Form 3753 will be input to the account through the Subsequent Transaction Screen with a TC 840.

    7. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  7. Forward Form 8697, Form 1331B and Form 813 to Cycle Control after NMF processing is completed, unless Form 3696, Correspondence Action Sheet, or Form 3465 Adjustment Request, is attached. Returns with Form 3696 should be forwarded to the Correspondence function. Returns with Form 3465 will be forwarded to the Accounts Management function. If both forms are attached to the return, forward to the Correspondence function. Form 2275, Records Request Charge and Recharge, will be left in the block in lieu of the document.

  8. Refund Form 8866, Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method, should be processed on NMF using the exact same procedures as Form 8697.

Form 8725, Excise Tax on Greenmail, and Form 8876, Excise Tax on Structured Settlement Factoring Transactions

  1. Form 8725, Excise Tax on Greenmail, is used to report and pay the 50 percent excise tax imposed under IRC 5881. The term greenmail means, within certain limitations specified in IRC 5881, any amount a corporation (or, for transactions occurring after March 30, 1988, any person acting in concert with a corporation) pays to a shareholder to directly or indirectly acquire its stock.

  2. Form 8876, Excise Tax on Structured Settlement Factoring Transactions, is used to report and pay 40 percent excise tax imposed under IRC 5891. The Excise tax is equal to 40 percent of the undiscounted amount of the payments being acquired, over the total amount actually paid to acquire them.

  3. RACS will receive the Form 8725 and Form 813 for input through the Form 813 Block Control screen. Form 8725 will be numbered as follows:

    • Tax Class 6

    • Doc. code 21

    • Blocking Series 000–099 without remittance and 400–499 with remittance

    • MFT 27

    • Abstract Number 216

  4. RACS will receive the Form 8876 and Form 813 for input through the Form 813 Block Control screen. Form 8876 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 21

    • Blocking Series 000–099 without remittance and 400–499 with remittance

    • MFT 27

    • Abstract Number 234

  5. RACS will forward the Form 8725 or Form 8876 and Form 813 to NMF for normal processing.

    1. The tax period is the date entered in the "Date of initial receipt of greenmail" listed at the top of the Form 8725. Form 8876, the tax period is the "Date of initial receipt of the Structured Settlement" listed at the top of the Form 8876. Convert that date to MM/DD/YYYY for input to ANMF.

    2. The amount of excise tax due (Line 6, Form 8725), is a flat 50 percent of the total gain or other income (Line 5, Form 8725). The amount of tax due (Line 6, Form 8876), is a flat 40 percent of the factoring Discount (Line 3, Form 8876).

    3. The returns may be filed under either an SSN or EIN format.

  6. NMF will establish an account on the ANMF System through the Original Assessment screen.

  7. Form 8725 and Form 8876 is subject to late filing and late payment penalties if not filed or paid on time.

  8. The standard billing schedule and accounts maintenance will apply.

  9. The returns will be forwarded to Cycle Control after NMF processing is completed.

Form 8831, Excise Tax on Excess Inclusions of REMIC Residual Interest

  1. Form 8831 is used to report and pay excise taxes on any transfer of a residual interest in a REMIC (Real Estate Mortgage Investment Conduit) to a disqualified organization or any transfers of a residual interest in a pass-through entity. The tax applies to those transfers made after March 31, 1988 (unless the transfer was made under a binding contract in effect on that date). The earliest filing date for this return is March 24, 1993. Due to the small number anticipated nationwide, these returns will be processed on ANMF.

  2. Document Perfection will forward all perfected returns to RACS for input to the Form 813 Block Control screen.

  3. The block of documents will be numbered as follows:

    • Tax Class 6

    • Doc. Code 21

    • Blocking Series 000–099 without remittance and 400–499 with remittance

    • Abstract Number 221

    • MFT 89

  4. RACS will forward the documents and Form 813 to NMF for processing.

    1. All refund claim Form 8831, any return marked with an "Amended" , or returns needing penalty computation will be forwarded to the Accounts Management function for resolution prior to routing for NMF processing.

    2. Late Filing Penalty and Late Payment Penalty apply to Form 8831. The estimated Tax Penalty does not apply to Form 8831.

  5. NMF will establish an account on the ANMF System through the Original Assessment screen.

  6. The standard billing schedule and accounts maintenance will apply.

  7. Form 8831 which have "RTC RECEIVERSHIP " written at the top of the document cannot be processed using existing IRM procedures. Follow a. though e. below:

    1. Number using existing numbering criteria indicated in IRM 3.17.46.5.31 (3) above.

    2. Assess the tax indicated on line 5 of the document.

    3. Input Exception Code "R" to restrict the accruals of interest and penalty.

    4. Allow first notice to generate and mail. No subsequent notice is to be issued.

    5. Prepare form 3177 and input TC 530 CC 15. Per an Inter-Agency agreement between the IRS and the FDIC, no annual reminder notice is required.

  8. The returns will be forwarded to Cycle Control after NMF processing is completed.

Form 8924, Excise Tax on Certain Transfers of Qualifying Geothermal or Mineral Interests

  1. The Tax Relief and Health Care Act of 2006 (P.L. 109-432), Section 403, enacted a new Form 8924 for the computation and reporting of the excise tax due on the Transfer of Certain Qualifying Geothermal or Mineral Interests by an eligible entity. The return is due by the 90th day following the taxable transfer.

  2. Receipt and Control Branch will forward the accounting package to RACS and the returns to Returns Analysis for code and edit.

  3. Form 8924 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 40

    • Blocking Series 300–399 without remittance and 400–499 with remittance

    • Abstract Number 012

    • MFT 41

  4. Perfected returns will be forwarded to RACS for input of the Form 813 information to the ANMF system using the Block Control screen.

  5. RACS will forward Form 8924 to NMF for normal ANMF processing as follows:

    1. Account establishment through the Original Assessment screen.

    2. Normal penalty and interest computation in accordance with IRM 20.2, Interest and IRM 20.1, Penalty Handbook.

    3. Standard billing and accounts maintenance will apply.

    Note:

    If Form 7004 extension has been filed and established, NMF will process Form 8924 with a "Dummy Period" . Return block of work to DBA. DBA must make a DBA correction following NMF extension of time to file procedures. See IRM 3.17.46.5.9 (5), NMF Extension of Time to File.

  6. Forward returns to Cycle Control after NMF processing is completed.

Form 8928, Return of Certain Excise Taxes Under Chapter 43 of the Internal Revenue Code

  1. The Tax Relief and Health Care Act of 2006 (P. L. 109-432), Section 403, enacted a new Form 8928 for the computation and reporting of Excise taxes due on Sections 4980B, 4980D, 4980E, and 4980G for failures by group health plans or employers. The due date of the return is dependent on the Section as follows:

    1. Section 4980B and 4980D are due on or before the due date for the persons federal tax return for single employer or other responsible person.

    2. Section 4980B and 4980D are due on or before the last day of the seventh month following the end of the plan year for multiemployer o multiple employer plans.

    3. Section 4980E and 4980G are due on or before the 15th day of the fourth month following the calendar year in which the noncomparable contributions were made.

  2. Receipt and Control Branch will forward the accounting package to RACS and the return to Returns Analysis for code and edit.

  3. Form 8928 will be numbered as follows:

    • Tax Class 6

    • Doc. Code 39

    • Blocking Series 000–099 without remittance and 400–499 with remittance

    • Abstract Numbers:

      Abstract Number Section
      126 4980B
      127 4980D
      128 4980E
      137 4980G
    • MFT 41

    Note:

    Form 8928 received with excise tax due on Sections 4980B and 4980D for the same taxpayer and same tax period may be received with a "Summary Form " and several Forms 8928 attached. Only the "Summary Form" should be input. All supporting forms should be securely attached to the "Summary Form" .

  4. Perfected returns will be forwarded to RACS for input of the Form 813 information to the ANMF system using the Block Control screen.

  5. RACS will forward Form 8928 to NMF for normal ANMF processing as follows:

    1. Account establishment through the Original Assessment screen.

    2. Normal penalty and interest computation in accordance with IRM 20.2, Interest and IRM 20.1, Penalty Handbook.

    3. Standard billing and accounts maintenance will apply.

      Note:

      If Form 7004 extension has been filed and established, NMF will process Form 8928 with a "Dummy Period" . Return block of work to DBA. DBA Must make a DBA correction following NMF extension of time to file procedures. See IRM 3.17.46.5.9 (5), NMF Extension of Time to File.

  6. Forward returns to Cycle Control after NMF processing is completed.

Full Collection Child Support Cases

  1. This Section provides instructions for the assessment, collection and reporting of amounts of payments for Full Collection Child Support for which certain individuals are in arrears as reported by the various states and certified to IRS for collection by the Secretary of Health and Human Services (HHS). This project should not be confused with the Treasury's Offset Program (TOP) formerly the Service's Tax Refund Offset Program (Debtor Master File—DMF) found in IRM 21.4.6, Refund Offset. All DMF certifications are identified with a TC 130 using blocking series 999.

General

  1. Public Law 93–647 authorizes IRS collection of child support payments which have been ordered by state courts but have fallen into arrears. When certified by HHS the arrearage will be treated as taxes collectible. Sixty-days will be allowed for payment after issuance of first and final notice for initial certifications. No penalty or interest will be incurred except for bad checks and failure to surrender levied property.

  2. Application for IRS collection must be initiated by state agency administering Child Support Enforcement plans approved under Title IV–D of the Social Security Act—commonly referred as the IV–D agency. The state of address of the agency as shown on page 1 of the application becomes the state of jurisdiction as referenced in these procedures. HHS will approve or reject the application as indicated by entries on pages 4 and 5 of the application. Only approved applications, certified by the Regional Director of the Office of Child Support Enforcement (OCSE), will be received by IRS.

  3. Certified applications will be forwarded to the Kansas City Submission Processing Campus (KCSPC).

  4. All monies collected under this program will be treated as revenue receipts by KCSPC including area office operations. KCSPC will report the collections to the Treasury on Form SF 224 in a special revolving fund established by Statute.

  5. An estimate of the Service's cost to process and collect these cases will be provided to HHS as part of the monthly report prepared by KCSPC. Proper billing for these fees will be dependent on campus recognition and reporting of the requisite conditions.

  6. As the principal contact with the obligated individual in many instances, IRS incurs an additional responsibility for informing the individual of the events and conditions which occasioned its actions. Appropriate form letters and notices cannot be adequately designed at this time because of the numerous existing conditions. Due to the volume involved, Kansas City must be prepared to issue individual letters as required.

  7. KCSPC will appoint a coordinator who will work with the Department of Health and Human Services (HHS)/Social Security Administration (SSA) to answer questions pertaining to the compilation and reporting of collections for child support payments. KCSPC will notify HHS/OCSE as to the name of the Child Support Coordinator. See IRM 3.17.46.6.7 (10). for the address.

  8. Public Law 97–35 now provides for the collection of support and maintenance of a child or of a child and parent with whom the child is living. This is referred to as child and spousal support. Although spousal support (alimony) is now included, this will have no effect on the present processing instructions regarding these cases.

  9. The Child Support Coordinator (CSC) will be responsible for resolving any problems related to certifications, assessments and collections activities. This will restrict the number of persons contacting OCSE and maintain a central point of control in the campus.

    1. If the CSC is advised of obvious errors in certification applications of assessments by campus personnel or Revenue Officers, the CSC will contact the Office of Regional Director, OCSE at the telephone number furnished on page 2 of the certification application.

    2. The CSC will explain the discrepancy or error and request assistance in resolving problems which may require contacting the state.

    3. When it is determined what must be done to resolve the problem (request a corrected application to abate or increase an assessment or correct a TDA) the CSC will initiate appropriate corrective action.

    4. The CSC will monitor the case to ensure that all appropriate corrective action has been completed.

  10. All time used in processing ANMF Child Support cases should be reported under the reimbursable Function Code 710, Project Code 97030. This program code is valid with any function code deemed appropriate.

Certification Number—Child Support Assessments

  1. Each application will contain a control number assigned by the Regional OCSE office. The number will be entered in the appropriate area of the certification (page 1 of the application) and will consist of ten-characters as follows:

    1. 1–2 Alphabetical designation of the state of jurisdiction.

    2. 3–7 Date of Certification in MMDDYY format (only the last digit of the year will be shown).

    3. 8–10 Certification numbering beginning with 001 for each HHS Region for each fiscal year.

  2. Enter control number in the upper left corner of the application.

Types of Applications—Child Support Assessments

  1. Form OCSE–20 (6–84), Application for the Collection of Delinquent Child Support Payments by the Internal Revenue Service, defines the actions to be taken. There are three options, only one of which may be selected on a form:

    1. Box 2 (a) indicates that this is an initial request;

    2. Box 2 (b) indicates that this is a modification to a previous request, either an increase or decrease to a previously assessed arrearage; and

    3. Box 2 (c) indicates that this is a cancellation of a previous request. An approved application is the only means that can be used to cancel an assessment once the assessment has been established.

  2. When Box 2 (a) is checked the following actions are required:

    1. Assessment of the arrearage; and

    2. Bill the state for the fee.

    3. Manually issue Form 6335 (NMF First Notice), wait 30-days and keep a copy in the case file.

    4. Manually issue Form 4840 (NMF Fourth Notice) by Certified mail, and wait 30-days. Keep copy of notice in case file.

    5. After the 60-day stay of collection has elapsed the Taxpayer Delinquent Account (TDA) will be systemically issued without further notice.

  3. When box 2 (b) is checked and the arrearage is increased and/or the period of arrearage is extended, the following actions are required;

    1. Assessment of the additional arrearage;

    2. Manually issue Form 6335 (NMF First Notice) wait 30-days and keep a copy in the case file.

    3. Manually issue Form 4840 (NMF Fourth Notice) by certified mail, and wait 30-days. Keep copy of notice in case file.

    4. After the 60-day stay of collection has elapsed the Taxpayer Delinquent Account (TDA) will be systemically issued without further notice.

    Note:

    By law, anytime an account is increased, it must go through the First and Fourth Notice status. A Form 4840 should be used for the Fourth Notice and certified by mail before it goes TDA. It is imperative that you remove the paragraph on Form 4840 pertaining to interest and penalties.

  4. When Box 2 (b) is checked and the arrearage is decreased and/or the period of arrearage is reduced, adjust the previous assessment if necessary.

    Note:

    Anytime an account is decreased, the law does not require any notices to be sent out; however, due to courtesy, the Service does send an explanation to the taxpayer.

  5. When Box 2 (c) is checked the following actions are required:

    1. Compare the amount of the cancellation to the remaining balance of the arrearage;

    2. If the cancellation amount is greater than the remaining balance, contact the person whose name and telephone number is listed on the bottom of the back of the Form OCSE–20. Determine the exact amount to be abated; or

    3. If the cancellation amount is equal to the remaining arrearage, close the case.

  6. Other actions on these cases include the following:

    1. Reactivation of closed cases;

    2. Statute extensions;

    3. Addition of a new child to the case.

  7. If the actions noted in (6) above are needed follow steps (2) or (3).

Processing Applications—Initial Sort—Child Support Assessments

  1. Forward all applications for assessments and increases to assessments to CSCO using Form 3210. The Revenue Officer will review them to ensure they are in order.

  2. Correct application will be returned to Accounting for assessment.

  3. Incorrect applications will be returned by CSCO to the state.

  4. See the following instructions for all other applications.

Assessable Applications—Child Support Assessments

  1. Prepare Form 5734, Non-Master File Assessment Voucher in duplicate for each assessable application.

    1. Enter the name and address of obligor from item 1 of the application in block 1 of Form 5734.

    2. Enter SSN of obligor from item 1 of the application in item 3 of Form 5734.

    3. Enter MFT 59 in item 7 of Form 5734.

    4. Enter period (from and to dates from item 1 of the application) in item 6 of the Form 5734. Enter "CSO" in item 5 of Form 5734.

    5. In "Reason Assessment" box (item 12) of the Form 5734 enter: the boxes checked on application and Control number of the application (from the front of the application).

    6. If box 2 (a) or (b) of the application has been checked, enter the delinquent amount shown in item 1 of the application in item 8 of the Form 5734 with TC 150.

    7. If box 2 (b) of the application has been checked to indicate an increase, secure the previous application as identified by the control number, subtract the amount entered as item 1 from that of the application in process and enter the difference as an increase in item 8 of the Form 5734 with TC 290.

    8. Previous application may have been assessed in another campus prior to November 2002; if no record is present (or other problems arise during the processing of the application), phone the office of the Regional Director, OCSE, at the telephone number furnished on page 2 of the application and request assistance.

  2. During the preparation of Form 5734, enter "Fee" in the upper right corner of the application (beside State Control Number) if application is checked in boxes 2(a).

  3. Assign a standard DLN to Form 5734; separately block the various assessable categories.

    1. Use the AO Code for the first two-digits of the DLN

    2. Tax Class 6

    3. Doc. Code 55

    4. Blocking Series 420–424

    5. Enter the DLN in the upper center margin of the application.

  4. Establish the total debit amount for each block by listing items on Form 813. RACS will establish Form 813 through the Form 813 Block Control Screen.

  5. RACS will forward assessable Forms 5734 to NMF to establish an account on the ANMF System through the Original Assessment-Weekly Screen. The NMF Assessment Recap will be given to RACS for journalization. Boxes 2 (a) on the application will become Notice Status. Boxes 2 (b) increase will become TDA Status.

  6. Issue Notice to obligor as required by conditions of application.

    1. If box 2 (a) of the application is checked, issue letter 753(C).

    2. If boxes 2 (b) are checked, the Notice must specify the reasons for the increase or the decrease in arrearage, the amount of the same and the period covered.

    3. The Assessment is not subject to any penalty or interest charges.

    4. Mail Form 6335 with the 753(C) Letter to the taxpayer.

    5. Forward a copy of the 753(C) Letter to the originating Regional OCSE Office which certified the application.

  7. If payment is not received for accounts in Notice Status within 30-days of issuance of the First Notice, issue Form 4840CSO, Notice of Intent to Levy.

  8. If the payment is not received for the accounts in Notice Status within another 30-days of issuance of the Fourth Notice, a TDA will be systemically-generated.

    1. Enter the account on IDRS using MFT Code 59.

  9. Deposit all payments received in the same manner as for taxes collected.

    1. Enter on Form 215, Deposit Ticket, as Tax Class 4.

    2. Prepare Form 3244, Payment Posting Document for posting as a NMF subsequent payment.

    3. Abstract on reverse of Form 813, as 170. List abstract lien fees separately under Abstract 139.

  10. Establish a permanent file (in control number sequence) of all applications processed. Retain separately all applications processed during a month which are noted "Fee" in upper right corner of page 1 until all reports for that month have been prepared. Following submission of the reports, place applications in permanent file.

Decrease and Other Applications—Child Support Assessments

  1. Prepare Form 1331B, Notice of Adjustment, in duplicate for each decrease application.

    1. Enter the SSN of the obligor from item 1 of the application in the "Name and Address of Taxpayer" section of Form 1331B.

    2. Enter the period (From and to dates from item 1 of the application) in the "Taxable Period" Box of Form 1331B.

  2. In "Computation of Decrease in Liability" Box (Section 1) of the Form 1331B, enter:

    1. Name and address of obligor from item 1 of the application.

    2. Box checked on application 2 (b) or 2 (c).

    3. Control number of the application (from the upper right corner).

  3. Compare amount shown in item 2 (b) with item 1 and enter the difference in Section 1 of Form 1331B as a TC 291 decrease in liability.

  4. Previous application may have been assessed in another campus prior to November 2002; if no record is present (or other problems arise during the processing of the application), phone the office of the Regional Director, OCSE, at the telephone number furnished on page 2 of the application and request assistance.

  5. If box 2 (b) is checked, analyze the application for changed entries indicated by an asterisk and correct the ANMF account for all the relevant items such as the name, the address, etc., using the NMF ENTITY CHANGE Screen.

  6. Block application types 2 (b) and 2 (c) separately, assign standard DLN on Form 1331B as follows:

    1. Use the AO Code for the first-digits of the DLN

    2. Tax Class 6

    3. Doc. Code 54

    4. Blocking Series 425–429

    5. Enter the DLN in the upper center margin of the application

  7. Establish the total credit amount for each block by listing items on Form 813. RACS will establish the Form 813 on the Form 813 Block Control Screen.

  8. Forward all decreases, Form 1331B, to NMF for input to the ANMF System using the Subsequent Transaction Screen.

  9. Follow procedures in IRM 3.17.46.11.4, Credit Balances-Refund Returns, for any credit balance remaining on the account.

Reports-Form 5461; Report of Action Under Public Law 93–647, Child Support Assessments

  1. Form 5461 is used to report activity relating to accounts assessed under Public Law 93–647. This report is used by OCSE/HHS as follows:

    1. An accounting tool in conjunction with Form SF 224, to account for collections,

    2. To make financial settlements with state agencies, and

    3. To report the status of the accounts to the state agencies.

  2. Information or assessments not requested by the application should not be reported on Form 5461. This is true even though amounts from Lien Fees, Dishonored Check Fees or Collection Costs are rightfully assessed as a result of the child support assessment. The ANMF system generates account transcripts and a separate CSO Trial Balance listing which is used to aid in the preparation of Form 5461.

  3. Each month Form 5461 should be prepared in triplicate for each state of jurisdiction. Accounts subject to reporting are identified as follows:

    1. All accounts in notice, delinquent or currently not collectible status.

    2. Accounts for which an adjustment (caused by an application) or collection has been posted during the report month.

  4. Use Form 5461 (Rev. Rul. 6–79) with the following guidelines (see exhibits for examples):

    1. State of Jurisdiction—Enter the name of the state of jurisdiction for the certification form. This name will never change unless specifically requested by OCSE or HHS.

    2. Service Center—Enter Kansas City.

    3. Report Month—Enter the accounting month to which the report applies. Coordinate the preparation of this report so that the month end posting and journalization cut off for this report coincides with that of the month end cut-off for posting to the ANMF system.

    4. Control Number—Enter the control number of the certification form.

    5. Name of Obligor—Enter the Name and SSN of the person assessed.

    6. Date of Assessment—Enter 23C date of the assessment.

    7. Date Sent to Field—If the account is in TDA status, enter the notice date of the TDA.

    8. Date Reported Currently Not Collectible—If the account has been written-off, enter the date of the 53'd transaction.

    9. Account Transfer In/Out Date—if the account was transferred to your center during the report month, enter the name of the campus that had transferred the account and the date of transfer. If the account was transferred to another campus during the report month, enter the name of the campus and the date of transfer.

      Note:

      This is no longer applicable since NMF is processed only in Kansas City.

    10. Amount Assessed—Enter the amount of child support obligation assessed. Do not include any costs of collection (such as a lien fee) in the Amount Assessed column even though they may appear on the ANMF account.

    11. Amount Collected (Overpayment)—Enter the total amount collected on the account during the report month. If an overpayment results from a collection or an adjustment, apply the overpayment to all other outstanding child support assessments first and list the overpayment as you would any other payment to the assessment. Do not list an adjustment as an Amount Collected (Overpayment) unless that amount has already been paid (collected). Do not list collections of lien fees or other costs of collection even though they appear on the ANMF account. Amounts of overpayment that cannot be applied to another child support assessment and must be either offset to another tax liability, such as a 1040 liability, or actually refunded to the taxpayer must be shown or an overpayment in the Amount Collected (Overpayment) column as a reversal collection e.g., ($500.00). The total amount collected for that state will be reduced by the amount of the overpayment.

    12. Amount Adjusted—Enter the amount of an adjustment relating to a revised certification which increases or decreases a previously certified amount. Do not list a 53'd action as an adjustment, unless it is a statute expired case. For statute expired cases, enter the amount with an *(asterisk) and a footnote to show statute expired. This will also indicate to the office of Child Support Enforcement that they may recertify. The current fee for new assessments would apply to these cases.

    13. Balance—Enter the amount of arrearage still outstanding. In cases where an account has been 53'd, list the balance prior to the 53'd action less any payments received after 53'd. Do not include lien fees or any other collection cost in the balance.

    14. Fee—Enter the amount of the fee ($122.50) relating to applications processed during the report month which are noted "Fee" .

    15. Do not reveal the source of any collections received on an account such as "Offset from IMF" or dispositions of overpayments to other tax liabilities other than child support obligation accounts such as "Overpayment applied to IMF account" . Do not disclose any tax account information in the report that is not specifically mandated by these instructions. Do not list or include Dishonored Check Penalties in the amounts listed on the report even though they may be actually assessed or collected.

  5. The following elements will only be reported in the report month the activity took place:

    • Amount Assessed

    • Amount Collected (Overpayment)

    • Amount Adjusted

    • Fee

    • 53'd

  6. Accounts for which there has been no activity during the month will not be listed on the Form 5461.

  7. Prepare a memorandum for each state and a summary memorandum for all states. Each memorandum will show the monthly activity and inventory status for the report month. The amount of collections reported on Form 5461 must agree with the amount of collections on the memorandum.

    Note:

    It is no longer necessary to prepare "no activity" State letters.

  8. If a report for a state should require more than one page of Form 5461, enter "page 1 of 2" , etc., In the upper right corner of the form.

  9. After determining the total collections for a particular report month, send this information to the Journal Function for Same as response to 10(6) reclassification of the collections to decrease Excise Tax and increase the special HHS Account. It is essential that the total collections reported on Form 5461 agree with the collections reported on the Form SF 224. Failure to do so delays disbursement to the States by the Debt Management Branch.

  10. Send no later than the 15th work day of each month, the original and one copy of Form 5461, a copy of the specific page of the Form SF 224 showing the total collections to the Appropriation Account 75X6288A/R (blank out all other data on the page). A Summary memorandum (Cover Sheet, figure 3.17.46-13) should contain the following address:

    1. U. S. Dept. of Health and Human Services
      HHS Program Support Center
      Accounting Services
      Debt Collection Center
      7700 Wisconsin Avenue, Suite 8-8110D
      Bethesda, MD 20857

    2. A copy of the complete report must be faxed to the Headquarters ANMF Analyst.

    Figure 3.17.46-13

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    Please click here for the text description of the image.

Preparation of Form 5461, Report of Action Under Public Law 93–647

  1. No footnotes should appear on the report unless the transaction is extremely complex or not covered by existing instructions.

  2. The following is an explanation of the items reported on the 5461 (figure 3.17.46-14).

    1. Control 0000000—An Application was received and item 2 (a) was checked on the application. $1,500.00 was assessed on 01–05–98; therefore, a fee of $122.50 was charged and applicable.

    2. Control 00000001—The Account went to TDA status on 01– 05–98. The Application was received and item 2 (b) was checked on the application (reducing the arrearage by $750.00). A payment was received in the amount of $500.00 leaving a net balance still outstanding of $250.00.

    3. Control 00000002—The Account was 53'd on 01–05–98. There is a balance remaining outstanding of $500.00.

    4. Control 00000003—The Account was transferred to the Ogden Campus 01–12–98. The balance on the account was $2,000.00.

    5. Control 00000004—A payment of $500.00 was received during the month, plus an application with item 2 (c) checked, reducing the original arrearage to zero. A $600.00 overpayment was either transferred to a non-child support liability or refunded to the taxpayer.

    6. Control 00000005—The Account was transferred from Brookhaven on 01–12–98 with a balance of $1,200.00.

    7. Control 00000060—An Application was received with item 2 (b) checked. An assessment of $200.00 was made on 01–12–98. A fee of 122.50 applies to this type of application.

    8. Control 00000004—Collections are reduced by the $500.00 overpayment.

    9. Control 0000030—Statute expired account 53'd on 01– 12–98. Amount adjusted was $500.00.

    10. The social security number of the taxpayer is NOT on the figure; however, under each of the taxpayer's name, include his/her social security number. See IRM 3.17.46.6.3, Assessments/Non-Master File Returns, and IRM 3.17.46.6.5, Non-Master File Assessments and Timeframes, for complete details.

    Figure 3.17.46-14

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HHS Office Address

  1. The table below provides addresses of the Health and Human Services offices for each region.

    Addresses of HHS Offices—Child Support Assessments
    (1) Region I Office of Child Support Enforcement
    John F. Kennedy Federal Building
    Room 2000
    Boston, Massachusetts 02203
    (617) 565–1500
    (2) Region II Office of Child Support Enforcement
    Jacob K. Javits Federal Building
    26 Federal Plaza, Room 4114
    New York, New York 10278
    (212) 264–2890
    (3) Region III Office of Child Support Enforcement
    The Public Ledger Building
    150 South Independence Mall West
    Suite 864
    Philadelphia, Pennsylvania 19106-3499
    (215) 861–4000
    (4) Region IV Office of Child Support Enforcement
    Atlanta Federal Center
    61 Forsyth Street, Suite 4M60
    Atlanta, Georgia 30303-8909
    (404) 562–2800
    (5) Region V Office of Child Support Enforcement
    233 North Michigan Avenue, Suite 400
    Chicago, Illinois 60601-5519
    (312) 353–4237
    (6) Region VI Office of Child Support Enforcement
    1301 Young Street, Suite 914
    Dallas, Texas 75202
    (214) 767–9648
    (7) Region VII Office of Child Support Enforcement
    601 East 12th Street, Room 349
    Kansas City, Missouri 64106-2808
    (816) 426–3981
    (8) Region VIII Office of Child Support Enforcement
    999 18th Street
    South Terrace, Suite 499
    Denver, Colorado 80202
    (303) 844–3100
    (9) Region IX Office of Child Support Enforcement
    90 Seventh Street
    Federal Building, 9th Floor
    San Francisco, California 94103
    (415) 437–8400
    (10) Region X Office of Child Support Enforcement
    2201 Sixth Avenue, Suite 300
    Seattle, Washington 98121
    (206) 615–2547

CSO State Agency Addresses

  1. State Agencies Administering Child Support Programs Under Title IV–D of the Social Security Act.

    CSO STATE AGENCY ADDRESSES
    ALABAMA
    Department of Human Resources,
    Child Support Enforcement Division
    P.O. Box 304000
    50 Ripley Street
    Montgomery, AL 36130–1801
    (334) 242-9300
    FAX: (334) 242-0606
    ALASKA
    Child Support Services Division,
    Department of Revenue
    550 West 7th Avenue, Suite 280
    Anchorage, AK 99501–6699
    (907) 269-6900
    FAX: (907) 787-3220
    ARIZONA
    Division of Child Support Services,
    Arizona Department of Economic Security
    3443 N. Central Ave, Suite 1604,
    Phoenix, AZ 85012
    (602) 771-8190
    FAX: (602) 771-8191
    ARKANSAS
    Office of Child Support Enforcement,
    Department of Finance and Administration
    P.O. Box 8133
    Little Rock, AR 72203–8133
    1509 West 7th Street
    Little Rock, AR 72201
    (501) 682-6169
    FAX: (501) 682-8402
    CALIFORNIA
    Department of Child Support Services
    P.O. Box 419064, Mail Station 100
    Rancho Cordova, CA 95741–9064
    11150 International Drive
    Rancho Cordova, CA 95670
    (916) 464-5300
    FAX: (916) 464-5211
    COLORADO
    Division of Child Support Enforcement,
    Department of Human Services
    1575 Sherman Street, 5th Floor
    Denver, CO 80203–1714
    (303) 866-4300
    FAX: (303) 866-4360
    CONNECTICUT
    Department of Social Services,
    Bureau of Child Support Enforcement
    25 Sigourney Street
    Hartford, CT 06106
    (860) 424-4989
    FAX: (860) 951-2996
    DELAWARE
    Division of Child Support Enforcement
    Delaware Health and Social Services
    P.O. Box 11223
    Wilmington, DE 19850
    84 A Christiana Road
    New Castle, DE 19720
    (302) 395-6500
    FAX: (302) 395-6735
    DISTRICT OF COLUMBIA
    Child Support Services Division,
    Office of the Attorney General
    441 Fourth Street, NW 550 N
    Washington, DC 20001
    (202) 724-2131
    FAX: (202) 724-3710
    FLORIDA
    Child Support Enforcement,
    Department of Revenue
    P.O. Box 8030
    Tallahassee, FL 32399–7016
    (850) 717-7000
    FAX: (850) 921-0792
    GEORGIA
    Child Support Service,
    Department of Human Resources
    Two Peachtree Street,
    Atlanta, GA 30303
    (404) 657-3851
    FAX: (404) 657-3326
    GUAM
    Office of the Attorney General,
    Child Support Enforcement Division
    287 West O'Brien Drive
    Hagatna, Guam 96910
    (671) 475-3360
    FAX: (671) 475-3203
    HAWAII
    Child Support Enforcement Agency,
    Department of Attorney General
    601 Kamokila Blvd. Suite 207
    Kapolei, Hawaii 96707
    (808) 692-7000
    FAX: (808) 692-7134
    IDAHO
    Bureau of Child Support Services,
    Department of Health and Welfare
    P.O. Box 83720
    Boise, ID 83720–0036
    1740 N Westgate Drive
    Boise, ID 83704
    (800) 356-9868
    FAX: (208) 334-5571
    ILLINOIS
    Division of Child Support Services,
    Department of Healthcare and Family Services
    509 S. 6th Street
    Springfield, IL 62701
    (800) 447-4278
    FAX: (217) 524-6049
    INDIANA
    Child Support Bureau,
    Department of Child Services
    402 West Washington Street, Rm W360
    Indianapolis, IN 46204–2739
    (317) 233-5437
    FAX: (317) 233-4932
    IOWA
    Iowa Child Support Recovery Unit,
    Department of Human Services
    400 S. W. 8th Street, Suite H
    Des Moines, IA 50319–4691
    (888) 229-9223
    KANSAS
    Department for Children and Families,
    Child Support Services
    P.O. Box 497
    Topeka, KS 66601–497
    915 SW Harrison Street
    Topeka, IN 66612
    (888) 757-2445
    KENTUCKY
    Child Support Enforcement Program,
    Department for Income Support,
    Cabinet for Families and Children
    P. O. Box 2150
    730 Schenkel Lane
    Frankfort, KY 40602–2150
    (502) 564-2285
    FAX: (502) 564-5988
    LOUISIANA
    Department of Children and Family Services,
    Child Support Enforcement
    P.O. Box 94065
    627 N. Fourth Street
    Baton Rouge, LA 70802
    (225) 342-4780
    FAX: (225) 342-7397
    MAINE
    Child Support,
    Division of Support Enforcement and Recovery
    11 State House Station
    19 Union Street
    Augusta, ME 04333
    (207) 624-4100
    FAX: (207) 287-2334
    MARYLAND
    Maryland Child Support Enforcement Administration,
    Department of Human Resources
    Saratoga State Center
    311 West Saratoga Street Room 301
    Baltimore, MD 21201–3521
    (410) 767-7065
    FAX: (410) 333-6264
    MASSACHUSETTS
    Child Support Enforcement Division,
    Massachusetts Department of Revenue
    P.O. Box 9561
    Boston, MA 02114–9561
    51 Sleeper Street
    Boston, MA 02205
    (800) 332-2733
    FAX: (617) 887-7570
    MICHIGAN
    Office of Child Support,
    Department of Human Services
    P.O. Box 30478
    235 S Grand Avenue
    Lansing, MI 48909–7978
    (517) 241-7460
    FAX: (517) 373-4980
    MINNESOTA
    Office of Child Support Enforcement,
    Department of Human Services
    P.O. Box 64946.
    444 Lafayette Road
    St. Paul, MN 55155–0946
    (651) 431-4400
    FAX: (651) 431-7517
    MISSISSIPPI
    Division of Child Support Enforcement,
    Department of Human Services
    750 North State Street
    Jackson, MS 39202
    (601) 359-4861
    FAX: (601) 359-4415
    MISSOURI
    Missouri Department of Social Services,
    Family Support Division
    P.O. Box 2320
    615 Howerton Court
    Jefferson City, MO 65102–6790

    (866) 313-9960
    FAX: (573) 751-0507
    MONTANA
    Child Support,
    Department of Public Health and Human Services
    3075 N. Montana Ave. Suite 112
    Helena, MT 59620
    (406) 444-9855
    FAX: (406) 444-1370
    NEBRASKA
    Child Support Enforcement,
    Department of Health and Human Services
    P.O. Box 94728 West Campus
    220 South 17th Street
    Lincoln, NE 68509–4728
    (402) 471-1400
    FAX: (402) 471-7311
    NEVADA
    State of Nevada,
    Division of Welfare and Supportive Services,
    Child Support Enforcement Program
    1470 College Parkway
    Carson City, NV 89706–7924
    (775) 684-0705
    FAX: (775) 684-0702
    NEW HAMPSHIRE
    Division of Child Support Services,
    Department of Health and Human Services
    129 Pleasant Street
    Concord, NH 03301–8711
    (603) 271-4427
    FAX: (603) 271-4787
    NEW JERSEY
    Department of Human Services,
    Office of Child Support Services
    P.O. Box 716
    Trenton, NJ 08625–0716
    25 Market Street
    Trenton, NJ 08611
    (877) 655-4371
    NEW MEXICO
    Child Support Enforcement Division,
    Department of Human Services
    P.O. Box 25110
    Santa Fe, NM 87504
    2009 S Pacheco Street
    Santa Fe, NM 87507
    (505) 476-7207
    FAX: (505) 476-7045
    NEW YORK
    New York State,
    Division of Child Support Enforcement
    40 N. Pearl Street-Room, 13th Floor
    Albany, NY 12243–0001
    (888) 208-4485
    NORTH CAROLINA
    Office of Child Support Enforcement,
    Department of Health and Human Services
    P.O. Box 20800
    Raleigh, NC 27619–8000
    3301 Terminal Drive
    Raleigh, NC 27604
    (919) 855-4755
    (919) 715-8174
    NORTH DAKOTA
    Child Support Enforcement Program,
    Department of Human Services
    P.O. Box 7190
    Bismarck, ND 58507–7190
    Provident Life Building
    316 N 5th Street, Suite 300
    Bismark, ND 58501
    (701) 328-3582
    FAX: (701) 328-6575
    OHIO
    Office of Child Support Enforcement,
    Department of Human Services and Job and Family Services
    30 East Broad Street 31st Floor
    Columbus, OH 43215–3414
    (614) 752-6561
    FAX: (614) 752-9760
    OKLAHOMA
    Child Support Services,
    Oklahoma Department of Human Services
    P.O. Box 248822
    Oklahoma City, OK 73124
    5709 N Kelley Avenue
    Oklahoma City, OK 73111
    (405) 522-2273
    FAX: (800) 522-2922
    OREGON
    Division of Child Support,
    Oregon Department of Justice
    1162 Court Street N. E.
    Salem, OR 97301
    (503) 947-4388
    (503) 947-2578
    PENNSYLVANIA
    Child Support Program,
    Bureau of Child Support Enforcement
    P.O. Box 8018
    Harrisburg, PA 17105–8018
    1303 N 7th Street
    Harrisburg, PA 17102
    (800) 932-0211
    FAX: (717) 787-9706
    PUERTO RICO
    Administration for Child Support Enforcement
    P.O. Box 70376
    San Juan, PR 00936–8376
    306 Edif. Plaza Barbosa
    San Juan, PR 00923
    (787) 767-1500
    FAX: (787) 282-8324
    RHODE ISLAND
    Office of Child Support Services,
    Department of Human Services
    77 Dorrance Street
    Providence, RI 02904
    (401) 458-4400
    FAX: (401) 458-4407
    SOUTH CAROLINA
    Child Support Enforcement Division,
    Department of Social Services
    P.O. Box 1469
    Columbia, SC 29202–1469
    3150 Harden Street Extension
    Columbia, SC 29203
    (803) 898-9210
    (803) 898-9201
    SOUTH DAKOTA
    Division of Child Support,
    Department of Social Services
    700 Governor's Drive
    Pierre, SD 57501–2291
    (605) 773-3641
    FAX: (605) 773-7295
    TENNESSEE
    Child Support Division,
    Department of Human Services
    400 Deadrick Street
    Citizens Plaza Building, 15th Floor
    Nashville, TN 37243–1403
    (615) 313-4880
    FAX: (615) 532-2791
    TEXAS
    Child Support Division,
    Office of the Attorney General
    P.O. Box 12017
    Austin, TX 78711–2017
    300 W 15th Street
    Austin, TX 78701
    (800) 252-8014
    FAX: (512) 460-6867
    UTAH
    Child Support Services,
    Department of Human Services,
    Office of Recovery Services
    P.O. Box 45033
    Salt Lake City, UT 84145–0033
    515 East 100 South
    Salt Lake City, UT 84102
    (801) 536-8500
    FAX: (801) 536-8509
    VERMONT
    Office of Child Support,
    Department of Children and Families
    103 South Main Street
    Waterbury, VT 05671–1901
    (800) 786-3214
    (802) 871-3000
    VIRGIN ISLANDS
    U.S. Virgin Islands Department. of Justice,
    Paternity and Child Support Division
    8000 Nisky Center, Suite 500, 2nd Floor
    St. Thomas, VI 00802
    (340) 775-3070
    FAX: (340) 775-3808
    VIRGINIA
    Division of Child Support Enforcement,
    Department of Social Services
    801 East Main Street, 12th Floor
    Richmond, VA 23219
    (800) 257-9986
    FAX: (804) 726-7476
    WASHINGTON
    Division of Child Support,
    Department of Social and Health Services
    P.O. Box 9162
    Olympia, WA 98507–9162
    6135 Martin Way E
    Lacey, WA 98507
    (360) 664-5000
    FAX: (360) 664-5444
    WEST VIRGINIA
    Bureau of Child Support Enforcement,
    Department of Health and Human Resources
    350 Capitol Street Room 147
    Charleston, WV 25301–3703
    (800) 249-3778
    FAX: (304) 558-2445
    WISCONSIN
    Bureau of Child Support,
    Division of Family and Economic Security
    P.O. Box 7935
    Madison, WI 53707–7935
    201 E Washington Ave
    Madison, WI 53703
    (608) 266-9909
    FAX: (608) 267-2824
    WYOMING
    Department of Family Services,
    Child Support Enforcement
    2300 Capitol Avenue
    Hathaway Building, 5th Floor, Suite C
    Cheyenne, WY 82002
    (307) 777-6948
    FAX: (307) 777-5588

Regions

  1. Listed below are the Regional Offices.

    REGIONS
    REGION I
    Connecticut
    Maine
    Massachusetts
    Rhode Island
    Vermont
    REGION II
    New York
    New Jersey
    Puerto Rico
    Virgin Islands
    REGION III
    Delaware
    Maryland
    Pennsylvania
    Virginia
    West Virginia
    District of Columbia
    REGION IV
    Alabama
    Florida
    Georgia
    Kentucky
    Mississippi
    North Carolina
    South Carolina
    Tennessee
    REGION V
    Illinois
    Indiana
    Michigan
    Minnesota
    Ohio
    Wisconsin
    REGION VI
    Arkansas
    Louisiana
    New Mexico
    Oklahoma
    Texas
    REGION VII
    Iowa
    Kansas
    Missouri
    Nebraska
    REGION VIII
    Colorado
    Montana
    North Dakota
    South Dakota
    Utah
    Wyoming
    REGION IX
    Arizona
    California
    Hawaii
    Nevada
    Guam
    REGION X
    Alaska
    Idaho
    Oregon
    Washington

Detailed NMF Notice Issuance Report

  1. A Detailed NMF Notice Issuance Report will be generated weekly. This report will serve as a useful management tool for:

    • Monitoring inventory,

    • Detecting processing trends, and

    • Ensuring timely mail out of notices

  2. The report will categorize by Form Type and provide a separate count of the First, Fourth and Annual Reminder notices issued. The First notice is governed by the 23C date for the given week whereas the Fourth notice is determined by the Fourth Notice Date Field.

  3. The total number of notices generated weekly, including a cumulative total for the calendar year are listed at the bottom of the report.

NMF Accounts Flagged for Notices/TDA

  1. A NMF Accounts Flagged for Notices/TDA listing is generated weekly is a list of accounts on which a notice or TDA is being issued. . This listing is used:

    1. To ensure all weekly notices have been printed,

    2. To distribute notices to NMF technician for notice review, and

    3. As a source document to prepare Form 3177 for each NMF account that requires the input of a TC 130 on Master File.

    4. To conduct TC 130 quarterly review to ensure TC 130s are posting on Master File.

Notices

  1. Form 6335 is the taxpayer's 1st notice generated from the ANMF system for accounts that have a balance due. Generation of the first notice is also dependent on an entry to the Notice Type field during the establishment of the account on the database.

    1. The appropriate notice statement will be generated on the Form 6335 based on the input to the NMF Statement Code field at the time the account is established on the ANMF System through the Original Assessment screen. See IRM 3.17.46.5.15 for Trust Fund Recovery Penalty processing.

      Note:

      The system will also generate a one-time notice, Form 6335, for an account ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . See IRM 3.17.46.11.1, Penalty and Interest Review.

    2. The system will not generate a notice for a balance due ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

      Note:

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

    3. The system will not include NMF accounts that are established with an Employer Identification Number (EIN), and EPMF or EOMF accounts, or on the Master File account of a secondary taxpayer in the systemic file that is sent for posting of the TC 130. Therefore, when a Master File Entity freeze (V-), TC 130 is needed the manual processing procedures need to be followed. IRM 3.17.46.7.11 (5)

    4. A copy of Form 6335 will be routed to originator as appropriate.

    5. See figure 3.17.46-15, 3.17.46-16 and figure 3.17.46-17 for various examples of first notices.

    Figure 3.17.46-15

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    Figure 3.17.46-16

    This is an Image: 33900020.gif
     

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    Figure 3.17.46-17

    This is an Image: 33900021.gif
     

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  2. Date and mail all first notices to conform with the actual assessment date (23C date).

    Note:

    All first notices should be mailed to the taxpayer even if a payment is located.

  3. Notice issuance for Quick and routine 23C assessments will follow a regular six week schedule after the first notice.

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

  5. The fourth notice (figure 3.17.46-18) must be sent by certified mail. These notices will be hand carried from accounting to the shipping function. Kansas City Campus must obtain labels with certified mail numbers from the local post office for mailing of these notices.

    Figure 3.17.46-18

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    1. The notices will be maintained separately, certified and mailed by the shipping function.

    2. Information from each fourth notice must be maintained in a log by mailing services. A Certified Mail List is generated by the ANMF System with the fourth notices for this purpose. However, this listing can be used at Kansas City's option if Mailing Services has an alternative method of recording this information.

  6. Research the ANMF system, Master File, 4610 account, and 4430 account for advanced or misapplied payments. Extreme caution must be taken to ensure that the payment belongs to the taxpayer's account. RTR, Remittance Transaction Research, system should be utilized to ensure proper posting of the payments..

    Note:

    Erroneous refund procedures as instructed in IRM 21.4.5.4.6, Duplicate Manual Erroneous Refundsmust be followed if the misapplied payment has been refunded from ANMF or Master File account.

  7. Research Master File to ensure that the notice is issued to the most current address. If more current address is located on Master File:

    1. Prepare Form 2363 for posting of an address change.

    2. Form 2363 will be numbered and input to the ANMF system.

    3. DBA will reprint notice to the taxpayer with current address.

      Note:

      If timing does not allow DBA to reprint notice bill the taxpayer using the Alternative Notice System.

  8. All notices must be sent by certified mail using envelope E125–L. Since a separate log needs to be maintained for registered items, a Registered Mail List is generated by the ANMF System with the notices.

    Note:

    United States citizens with a foreign address have 45-days to pay≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  9. Input a history item on the account indicating whether or not the notice was sent.

  10. If the account is a true NMF assessment (will not be transferred to a Master File) and is a Prompt, Jeopardy or Termination assessment, associate two copies of Form 6335 with the duplicate copy of Form 2859 with the TDA. If the account is a Trust Fund Recovery Penalty, Quick, Prompt or Jeopardy Assessment, forward two copies of Form 6335 and Form 2749 (parts 3 and 4) with the TDA to CSCO. See IRM 3.17.46.7.8 for TDA issuance.

  11. If an NMF return is received containing an increase in tax resulting from a mathematical error, enclose Notice 746, Information About Your Notice, Penalty and Interest., with parts 1 and 2 of Form 6335 to be sent to the taxpayer.

  12. Several types of assessments have an irregular time interval between the issuance of the first notice and other subsequent notices.

    1. Child Support Program—allows 60-days after the issuance of Letter 753(C) and Form 6335; if not fully paid within that time, a TDA will be systemically issued. See IRM 3.17.46.6.2 for special instructions.

    2. For assessments which include an increase of tax on certain returns because of a mathematical error—the fourth notice will be deferred for 12 weeks. A Form 3177 will be prepared to input a TC 470 to the ANMF System to delay notice issuance.

    3. Suspension of subsequent notices for an indeterminate period may be directed by the Examination Division until all appeal rights have been exhausted for penalty assessments requested by Examination. Post a TC 470 to the account from a prepared Form 3177 and include as a history item.

  13. If a balance due notice is undeliverable or the taxpayer indicates an inability to pay, See IRM 3.17.46.7.6Undelivered NMF Notices, for further instructions.

  14. The input of a "Y" to the POA field on the Original Assessment screen at the time the account is established will generate a listing of NMF accounts on which any notice is being issued and a POA exists. It has been determined that this listing is not all-inclusive therefore, CC CFINK is required to be researched for all notices to determine if there is a POA on CAF, Centralized Authorization File. See Exhibit 3.17.46-11., NMF/MF Compatible MFTs for Power of Attorneys, for compatible MF MFTs.

    1. The Notice Due—Power of Attorney (POA) on File list may be used to research the CAF for the POA name and address. The CAF research must be conducted on all notices. Since the Master File CAF is updated on a daily basis, NMF must conduct this research each time a notice is generated to ensure the POA information is correct prior to mailing out the notices.

    2. Research CAF for all notices, if a POA is located on CAF for an account that does not contain a “Y’ the DBA will have to input the “Y” in the POA field. Only the DBA is profiled to update the account to include the POA indicator after the account has been established.. The DBA will update the POA indicator through the NOTICE CORRECTION screen.

    3. Mail a photocopy of the notice to each authorized representative and document this in the history of the account.

ANMF Annual Reminder Notice For ANMF/NMF, Form 9774

  1. Form 9774 (Figure 3.17.46-19) is issued annually to remind taxpayers of a balance due on a tax module that has been in Currently Non-Collectible (CNC) status 24 (Collection Queue) and status 60 (Installment Agreement) on ANMF for 365-days or more. These notices will be generated weekly for mailout.

  2. A 100 percent review of all Forms 9774 must be done prior to mailout.

  3. Research the ANMF system, Master File, 4610 account, and 4430 account for advanced or misapplied payments. Extreme caution must be taken to ensure that the payment belongs to the taxpayer's account. RTR, Remittance Transaction Research, system should be utilized to ensure proper posting of the payments.

    Note:

    Erroneous refund procedures as instructed in Refund Inquiries, Erroneous Refunds IRM 21.4.5.4.6. must be followed if the misapplied payment has been refunded from ANMF or Master File account.

  4. Research Master File to ensure that the notice is issued to the most current address. If more current address is located on Master File:

    1. Prepare Form 2363 for posting of an address change.

    2. Form 2363 will be numbered and input to the ANMF system.

    3. DBA will reprint notice to the taxpayer with current address.

      Note:

      If timing does not allow DBA to reprint notice bill the taxpayer using the Alternative Notice System.

  5. Research CAF by using CC CFINK to determine if there is a POA on file for all notices. See Exhibit 3.17.46-11, NMF/MF Compatible MFTs for Power of Attorneys, for compatible MF MFTs. If there is “Y” in the POA field the account will appear on the Notice Due—Power of Attorney (POA) on File List.

    1. This list may be used to research the CAF for the POA name and address. The CAF research must be conducted on all notices. Since the Master File CAF is updated on a daily basis, NMF must conduct this research each time a notice is generated to ensure the POA information is correct prior to mailing out the notices.

    2. Research CAF for all notices, if a POA is located on CAF for an account that does not contain a “Y’ the DBA will have to input the “Y” in the POA field. Only the DBA is profiled to update the account to include the POA indicator after the account has been established.. The DBA will update the POA indicator through the NOTICE CORRECTION screen.

    3. Mail a photocopy of the notice to each authorized representative and document this in the history of the account.

  6. Mail notice to taxpayer and input a history item on the account indicating whether or not the notice was sent.

  7. Forms 9774 which full-pay the account will be routed to the Accounting function. Form 9774 may be used in lieu of Form 3244, Payment Posting Voucher. If a payment is received for more than one tax period Form 3244 will be prepared for each additional tax period. Payments will be numbered as follows:

    1. TC 670

    2. Doc. Code 27

    3. MFT, Blocking Series and Abstract Number will be determined by the Form indicated on the notice. If Form 9774 is received with a part-pay, photocopy the Form 9774 and route to Campus Customer Service/Collections function.

  8. All Forms 9774 that is undeliverable will be routed to Collections. If a new address is found, the Form 9774 will be returned for re-issuance. Collections will prepare Form 2363, Mater File Entity Change, as the source document for NMF to update the taxpayer's address.

    • Enter a "F" into the Notice Type field of the Correct Weekly Notice screen of the NMF database for accounts in status 53. The notice with a new notice date will be created during weekend runs if all other notice criteria are met.

    • Enter a "Z" into the Notice Type field of the Correction Weekly Notice screen of the NMF database for accounts in status 24, 53, and 60. Format and print using options (11) Reformat CNC and (16) reprint CNC on the NMF DBA Weekly Run/Print Menu. The notice will be created and printed immediately.

    Figure 3.17.46-19

    This is an Image: 33900026.gif
     

    Please click here for the text description of the image.

Annual Notice Flag List

  1. The Annual Notice Flag List will identify tax modules in status 24 Collection Queue, status 53 Currently Non-Collectible and status 60 Installment Status, that meet the criteria for issuance of the Annual Reminder Notice Form 9774, which contain an exception code for which a manual computation of interest and/or penalty accruals is necessary. Print the list each Monday. The list contains:

    • Notice Date

    • Exception Code (See IRM 3.17.46.1.5)

    • TIN, MFT, Tax Period

    • Status

    • TC 530 date

    • Account Balance

  2. The Manual Interest and Penalty Update screen will be accessed by the DBA or other designated technicians to update the interest and penalty computations which will be generated on the notice.

  3. Select the Manual Interest and Penalty Update screen. The following input fields will appear:

    1. Account Key— enter TIN, MFT, Tax Period.

    2. Exception Code— enter "U" twice to update manual computation of penalty/interest accruals to ANMF.

    3. Interest— enter interest accruals.

    4. Interest Date— enter interest "to" date.

    5. Penalty— enter penalty amount.

    6. Penalty Date— enter penalty "to" date.

  4. Input data to fields and enter. This will update accruals to the ANMF database.

  5. Reformat and Re-print notice selecting appropriate options from the NMF DBA Weekly Run/Print Menu. If the notice is not generated within the same week, it will have to be generated using the Alternative Notice Generation system.

  6. After issuance of the notice, Exception Code "M" must be replaced so that it will appear on future listings.

    Note:

    Exception Code "M" will prohibit the generation of notices and update of penalty and interest computations to ANMF.

Status 53 Reports

  1. The Notice Yield and Issuance Report will capture the dollars collected resulting from the generated Annual Reminder Notice Form 9774 and identify the number of notices issued. The data will be cumulative.

Undeliverable Non-Master File Notices

  1. All Forms 6335 that are undeliverable will be destroyed by Collection.

  2. If Form 4840 (4th notice, sent certified mail to the taxpayer) is returned as undeliverable, but a new address is found, then:

    1. Collection will send the new address to Accounting with a request to REMAIL the notice. At that time, Collection will prepare a Form 2363 as the source document for NMF to update the taxpayer's address through the Entity Change screen.

    2. If there is no new address for the undeliverable 4th notice, then Collection will request that Accounting accelerate to TDA status. Enter "address invalid" as a history item on IDRS so that the Revenue Officer is aware to look for another address.

    3. If the 4th notice is marked as "refused" by the taxpayer, Collection will inform Accounting of such so that Accounting will accelerate to TDA status.

    4. If an undelivered fourth notice is sent to NMF and is in TDA status, input "address invalid" as a history item on IDRS.

    Note:

    If a Form 6335 or Form 4840 needs to be reissued please refer to IRM 3.17.46.15.5, Notice and Account Corrections, for further instructions.

Installment Agreement Statement

  1. Effective July 1, 2000, the IRS Restructuring and Reform Act (RRA 98) mandates that IRS provide the taxpayer and/or taxpayer's representative with an annual installment statement. Annual Installment Agreement Statement, Form 12379, will be sent to taxpayers who have an account that contains an unreversed Transaction Code (TC) 971 with Action Code (AC) 63. The ANMF system will not update the status on an account where a TC 480 or a TC 520 was input prior to reversing a TC 971 AC 63 Status Code 60.

    When a TC 480 (Status 71) or a TC 520 (Status 89) is received for input to the ANMF system:

    1. Determine if the account is in Status 60

    2. If no, input the TC 480 or the TC 520 to the account

    3. If yes, continue with instructions

    4. Locate the unreversed TC 971 AC 63

    5. Identify the TC 971 AC 63 input date

    6. Enter a TC 972 AC 63 using the same input date as the TC 971 AC 63

    7. After the TC 972 post input TC 480 or TC 520

  2. On the first Monday in July of each year the DBA will print an annual Installment Agreement (IA) Flag List with the related installment statements from the NMF database.

  3. IRC 6651(h) provides for a decrease in the FTP penalty rate for qualifying taxpayer for any month (after 12/31/1999) during which an installment agreement is in effect. See IRM 20.1.2.2.8.1.2, 1/4 Percent Penalty Rate-IRC 6651(h), for additional information. The taxpayer must meet the following criteria:

    1. The taxpayer must be an individual (a taxpayer that is not a corporation, a partnership, a trust, or an exempt organization).

      Note:

      Estate tax returns and generation skipping tax returns also meet the criteria because these returns are filed on behalf of an individual.

    2. The taxpayer filed his or her return for the tax in question on or before the due date for filing (including extensions).

    For taxpayers who meet this criteria the basic penalty rate decreases to 1/4 percent for any month during which an installment agreement is in effect.

  4. All annual IA statements must be reviewed for accuracy of the penalty and related interest computed by the ANMF system.

    Note:

    The ANMF system does not have the capability of computing the 1/4 percent penalty rate. It must be manually computed.

    1. If the return was not filed timely (TC 160 is present) normal FTP penalty and interest on that penalty apply. No further action is required.

    2. If the return was filed timely manually compute failure to pay penalty at 1/4 percent for all months which an installment agreement was in effect, using IDRS command code COMPA. See IRM Exhibit 20.1.2-3, COMPAF Examples, for an example.

    3. If manual computation is necessary reformat the Annual IA statement. Enter an "I" into the notice type field and update.

    4. Reprint the annual IA statement.

  5. The alternative notice system will be used for accounts that have multiple assessments with the same TXPD/dummy TXPD for the same taxpayer. Combine all annual IA statements that have the same taxpayer identification number (TIN) and TXPD/dummy TXPD(s). P and I computations should be verified for accuracy prior to combining annual IA statements.

    1. Review the IA Flag List to identify accounts with the same TIN and TXPD/dummy TXPD(s).

    2. Match the related annual IA statements.

    3. Combine and total separately the beginning balances, additions, reductions, accrued penalties, accrued interest and ending balances from the related annual IA statements.

    4. The total of all beginning balances, additions, reductions, accrued penalties and accrued interest should be equal to the ending balance on the IA statement.

      Note:

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

    5. NMF Form 4840, Form 9774, and Form 12379 will include a detailed penalty and interest computation with each mailout.

  6. The as of dates for the account summary section of the statement are:

    1. Beginning Balance - the date one year or less prior to July 1 of the current year (whichever is greater).

    2. Additions - June 30 of the current year.

    3. Reductions - June 30 of the current year.

    4. Accrued Interest - date of most current accrued interest calculation.

    5. Accrued Penalty - date of most current accrued penalty calculation.

    6. Enter the dates, money amounts and literals from the individual annual IA statements into the Account Summary section of Form 12379. All transactions code explanations should be spelled out completely. Refer to Annual Installment Statement Literals below:

    TC DESCRIPTION DEBIT/CREDIT
    150 TAX DEBIT
    160 DELINQUENCY PENALTY DEBIT
    161 ABATEMENT OF DELINQUENCY PENALTY CREDIT
    200 TAXPAYER IDENTIFICATION PENALTY DEBIT
    201 ABATEMENT OF TAXPAYER IDENTIFICATION PENALTY CREDIT
    234 DAILY DELINQUENCY PENALTY DEBIT
    235 ABATEMENT OF DAILY DELINQUENT PENALTY CREDIT
    240 MISCELLANEOUS PENALTY DEBIT
    241 ABATEMENT OF MISCELLANEOUS PENALTY CREDIT
    270 FAILURE TO PAY PENALTY DEBIT
    271 ABATEMENT OF FAILURE TO PAY PENALTY CREDIT
    280 BAD CHECK PENALTY DEBIT
    281 ABATEMENT OF BAD CHECK PENALTY CREDIT
    290 ADDITIONAL TAX ASSESSMENT DEBIT
    291 ABATEMENT OF TAX ASSESSMENT CREDIT
    300 TAX DEFICIENCY ASSESSMENT DEBIT
    301 ABATEMENT OF TAX DEFICIENCY ASSESSMENT CREDIT
    310 TIP PENALTY DEBIT
    311 ABATEMENT OF TIP PENALTY CREDIT
    320 FRAUD PENALTY DEBIT
    321 ABATEMENT OF FRAUD PENALTY CREDIT
    340 RESTRICTED INTEREST ASSESSMENT DEBIT
    341 ABATEMENT OF RESTRICTED INTEREST ASSESSMENT CREDIT
    350 NEGLIGENCE PENALTY DEBIT
    351 ABATEMENT OF NEGLIGENCE PENALTY CREDIT
    360 FEES AND COSTS DEBIT
    361 ABATEMENT OF FEES AND COSTS CREDIT
    430 ESTIMATED TAX DECLARATION CREDIT
    610 REMITTANCE WITH RETURN CREDIT
    611 BAD CHECK RETURNED DEBIT
    612 REVERSAL OF PAYMENT WITH RETURN DEBIT
    640 ADVANCED PAYMENT CREDIT
    641 REVERSAL OF ADVANCED PAYMENT DEBIT
    650 FEDERAL TAX DEPOSIT CREDIT
    652 REVERSAL OF FEDERAL TAX DEPOSIT DEBIT
    670 SUBSEQUENT PAYMENT CREDIT
    671 BAD CHECK PAYMENT DEBIT
    672 REVERSAL OF SUBSEQUENT PAYMENT DEBIT
    680 DESIGNATED INTEREST PAYMENT CREDIT
    681 BAD CHECK INTEREST PAYMENT DEBIT
    690 DESIGNATED PENALTY PAYMENT CREDIT
    691 DESIGNATED PENALTY PAYMENT DISHONORED DEBIT
    694 DESIGNATED PAYMENT FEES CREDIT
    695 REVERSAL OF DESIGNATED PAYMENT FEES DEBIT
    700 CREDIT APPLIED CREDIT
    702 REVERSAL OF APPLIED CREDIT DEBIT
    710 OVERPAYMENT CREDIT APPLIED CREDIT
    712 REVERSED OVERPAYMENT CREDIT APPLIED DEBIT
    716 OVERPAYMENT CREDIT ELECT CREDIT
    730 OVERPAYMENT INTEREST APPLIED CREDIT
    731 REVERSAL OVERPAYMENT INTEREST APPLIED DEBIT
    740 REFUND CHECK REDEPOSITED CREDIT
    760 SUBSTANTIATED CREDIT ALLOWANCE CREDIT
    764 EARNED INCOME CREDIT CREDIT
    765 REVERSAL OF EARNED INCOME CREDIT DEBIT
    766 REFUNDABLE CREDIT ALLOWANCE CREDIT
    767 REVERSAL OF REFUNDABLE CREDIT ALLOWANCE DEBIT
    770 INTEREST DUE TAXPAYER CREDIT
    771 REVERSAL INTEREST DUE TAXPAYER DEBIT
    800 CREDIT WITHHOLDING AND FICA CREDIT
    802 REVERSAL OF WITHHOLDING AND FICA DEBIT
    840 REFUND DEBIT
    841 REVERSAL OF REFUND CREDIT
    850 OVERPAYMENT INTEREST TRANSFER DEBIT
    851 REVERSAL OF OVERPAYMENT INTEREST TRANSFER CREDIT
    860 REVERSAL OF ERRONEOUS ABATEMENT DEBIT

    Accounts which contain a TC 914 should not receive an annual installment statement.

TDA Issuance

  1. If an assessment is a Jeopardy, Termination, Trust Fund Recovery penalty, or transferee/transferor or any other request for immediate assessments, establish the account using Notice Type "T" for Trust Fund Recovery Penalty or "Z" for all others.

    Note:

    Use an ANMF transcript to establish account onto IDRS following instructions in IRM 3.17.46.9, Establishing and Updating NMF TDA Account on IDRS.

  2. Systemic review of all accounts in notice status for which six (6) weeks have elapsed since the issuance of the fourth notice will systemically move to TDA status 22.

    1. If the taxpayer is not in TDA status, the system will search the Currently Not Collectible Account (53'd accounts, Account 1830) for taxpayer's entities ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

      Note:

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

    2. All NMF accounts meeting TDA criteria must be loaded to an SB/SE Compliance site. See IRM 3.17.46.9.

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If circumstances warrant acceleration, such as the taxpayer wants an installment agreement, input a TC 971 AC 199, this will allow the account to be accelerated to Status 22.

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

  3. Weekly, the ANMF System reviews accounts in suspense status 89 to determine if further action is required. Claims/Adjustment Pending account transcripts generate 90-days after a TC 470 has posted. A TC 472 will systemically post after 180-days has elapsed.

    1. A Claim/Adjustment Pending account transcript will also be generated if a TC 291 or TC 301 posts to an account in suspense status.

    2. Collection withheld (adjustment or credit pending, etc.) If 90-days have elapsed since Collection action was withheld, check with originator for updated status and further action.

  4. Unless excluded by immediate issuance, the account must be entered on IDRS prior to release of the TDA. Enter the TDA on IDRS expeditiously. Weekly, the ANMF System will generate TDA transcripts (Accounts Maintenance Transcripts) which are source documents for input to IDRS.

    1. Search IDRS files to determine if an account has been previously established for the entity; if not, establish both the entity and account for which the TDA is to be generated via ICS.

    2. If the entity has been established, enter the account data only.

  5. Route the Form 3210 and TDAs to CSCO for document association and review.

    1. If the account is under control of the Campus Criminal Investigation (TC 914 on the account or requested on Form 4135, Criminal Investigation Control Notice), prepare a photocopy of Form 3210, Request the related transcript and forward to the Campus Criminal Investigation Control function.

    2. If the TDA is for an airline tax protest account, prepare Form 3210, request the related transcript and forward to Protest Coordination Function for reporting purposes.

    3. Annotate on Form 3210 whether Form 4840 (Notice of Intent to Levy) was issued and the date issued.

  6. The DBA can accelerate the notice stream to transfer the account from notice to delinquent status. See IRM 3.17.46.7.8(2) c.

  7. Some accounts under control of the Criminal Investigation Division (TC 914 posted to a Master File) will be transferred via Form 514-B by memorandum to NMF.

    1. Enter on NMF in the TDA status and enter on IDRS in the normal manner.

    2. Note in the Cross Reference field of the NMF account to transfer the account back to the original Master File once the account is fully paid.

NMF ADDRESS Transcript

  1. An NMF ADDRESS Transcript will generate whenever an IMF or BMF address has been updated and there is a NMF TC 130 present on Master File. These transcripts will be pulled from Control D by the NMF function for updating the taxpayer's NMF account. It is important that these transcripts be worked expeditiously when received to ensure accuracy of the NMF database.

    Note:

    The NMF ADDRESS transcripts can be located on Control D by using job name NMFADDRE.

  2. In lieu of preparing Form 2363, the transcript may be used as the source document for posting the address change.

Alternative Notice Generation

  1. An alternative method of producing all NMF notices should be adopted locally. We recommend a local personal computer (PC) application. Generally, system downtime would only affect the "daily" assessments, but, depending on the length of the system downtime, weekly assessments may also be affected.

  2. If the system is down, the bill/notice can then be generated through the PC application and the assessments can be loaded on the ANMF system via the Load Old Accts/Transfer-in screen when the system becomes operational again.

    1. Use of the "Load" screen will provide a posting indicator of "L" which will show that the assessment was input at a later date than the 23C date.

    2. When finally establishing the assessment, the technician should input audit trail information to the Cross Reference field as follows: "Notice generated prior to assessment due to system downtime."

    3. The DBA should keep a permanent copy of the notice along with an account transcript as an audit trail of the alternative notice preparation.

  3. The PC based application should set up with a generic First Notice as follows:

    1. Page length of 66 lines.

    2. Margins set as Left 1 and Right 122 characters.

    3. Header will be on lines one and two beginning at position 1.

    4. Date of Notice set position 88 on line 3.

    5. Taxpayer Identification position 88 on line 5.

    6. DLN position 88 on line 7.

    7. Form position 88 on line 9.

    8. Tax Period position 105 on line 9.

    9. Taxpayer Names and Address position 1 on lines 10 through 13.

    10. Notice title position 36 line 16.

    11. First paragraph position 5 lines 18 and 19.

    12. Next paragraph position 5 lines 21 and 22.

    13. Type of Assessment all capital letters at position 15 line 24.

    14. Amount all capital letters at position 45 on line 24.

    15. Use lines 25 through 30 for the literal and dollar amounts of each literal.

    16. Third paragraph position 5 on lines 31, 32 and 33.

    17. Fourth paragraph position 5 on lines 35 and 36.

    18. Fifth paragraph position 5 on lines 38 and 39.

    19. Enclosures begins at position 1 on lines 46, 47, 48, and 49.

    20. Reply to starts at position 1 on lines 58, 59, 60 and 61.

    21. MFT/Tax Period begins at position 55 on line 63.

    22. Form 6335 begins at position 85 on line 64.

  4. The notices should be printed at pitch 15 or 16 depending on the printer's capabilities.

  5. The only fill in information should be as follows:

    • Date of This Notice

    • Taxpayer’s Identification Number

    • Document Locator Number

    • Form

    • Tax Period

    • Taxpayer Name and Address

      Note:

      The overflow line is only necessary if you have more than one line for the name or the address, otherwise it will not be needed).

    • The literal (see Document 6209 for the TC literal)

    • The corresponding dollar amounts for each literal

    • MFT/Tax Period

Master File Entity Freeze TC 130

  1. To reduce erroneous refunds from the Master File (MF) when an outstanding balance is present on the NMF, a transaction code 130 will be automatically generated to the Master File at the time that the Individual (SSNs) NMF account is established. A tape will systemically match the NMF account against the IMF primary social security number posted on Master File. If no match is found, an unpostable will generate. The CCA/42/43, Unpostable/Overage Listing, will be utilized to identify and resolve the TC 130 unpostables.

  2. The NMF function will conduct research of the NMF account and the Master File account utilizing the appropriate ANMF screen and IDRS command codes to search for an accurate SSN to post the transaction code 130. A transaction code 000 may be required to establish an entity for the Master File secondary spouse. Exceptions:

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

    2. Accounts with an Employer Identification Number (EIN) must be researched for a Large Corp indicator on IDRS using CC ENMOD or by ordering an entity transcript using CC MFTRA. If the indicator is present, notify the Technical Unit in the controlling campus that a NMF assessment has been made.

    3. Accounts with a notation to "prepare Form 3177" on Form 5403, Appellate Closing Record, require the input of TC 130 on the Master File even if there is also a notation to "withhold collection." These accounts will generate a first notice. Follow the procedures in (5) for completing the Form 3177, then forward the form to CSCO for input to the Master File.

  3. A systemically-generated freeze will not occur on NMF accounts that are established with an Employer Identification Number (EIN), and EPMF or EOMF accounts, or on the Master File account of a secondary taxpayer.

  4. If the Master File Entity freeze (V-) is needed on a Master File TIN or other than the original primary TIN, then follow manual processing procedures when a first notice is generated from the ANMF system.

  5. Using both the Daily and Weekly NMF Accounts Flagged for Notices/TDAs list as the source document, prepare Form 3177 for each NMF account that has a first notice issued.

    1. Enter the appropriate information in the boxes for initiator, Date, Taxpayer Name, Taxpayer address and TIN.

    2. Enter transaction code 130 in the box marked "Other."

    3. Following other, list the DLN from the NMF account and enter NMF Liability.

    4. Also list the MFT and Period Ending. If the NMF account carries a "Dummy" period ending, list the "True" period ending.

    5. Fax the Form 3177 to CSCO for input to the Master File to the following fax numbers:

      Form 3177 - EIN Form 3177 - SSN
      PSC CSCO/Collections
      Fax - (855) 235-6786
      ATSC/CSCO
      Fax - (855) 233-8554

      Note:

      Form 3210, Document Transmittal, must be utilized to forward any Form 3177 to CSCO.

    6. Monitor the account until the TC 130 posts on IDRS.

  6. Quarterly using the daily and weekly NMF Accounts Flagged for Notices/TDAs listings a mandatory review must be conducted to ensure that both the systemic and manually prepared TC 130s (V- freezes) are posting on Master File.

    1. The NMF Accounts Flagged for Notices/TDA listings should be utilized to conduct this review.

    2. A 10 % review of all NMF Accounts Flagged for Notices/TDA listings for the quarter must be done to ensure that the TC 130s are posting and the freeze (V-) is set on Master File.

    3. Report outcome of quarterly review to Headquarters, no later than two weeks after the quarter has ended. For example, if the quarter ends in March the review would be due to Headquarters by 2 weeks into April. Management is required to sign review before it is submitted to Headquarter.

  7. Once a month, the ANMF system generates a NMF Accounts Purged to Closed listing when an NMF account becomes a zero balance account. Use this listing on a monthly basis for researching both the NMF database for other outstanding accounts and the Master File to verify whether or not the Entity Freeze is still in effect. Accounts will be flagged if no other open NMF account exists. They will also be flagged if the account has a zero balance due to a TC 400.

    1. If the freeze is still on the Master File and needs to be removed (no other outstanding NMF accounts for that particular taxpayer and it is not in status 99), prepare a Form 3177 to have CSCO input a TC 131 to the Master File account. A copy of the NMF purged list can be used in lieu of Form 3177, clearly notating each TIN, input TC 131.

    2. If the freeze is no longer on the Master File account, no further action is required.

    3. Check to ensure that the NMF account on the Purge to Close List is not a zero balance due to a transfer (TC 400). If the account is on the Purge List due to a TC 400, do not release the freeze; no further action is required.

    4. Review accounts for an open TC 582. If open TC 582 is identified, see IRM 3.17.46.12.5 (2).

    5. Forward notated NMF Accounts Purged to Closed listing to:
      MSC CSCO/ Collection Operations
      Internal Revenue Service
      5333 Getwell Road Stop 81
      Memphis, TN 38118

      Note:

      Forms 3177 prepared for reversal of a TC 130 can be mailed to this address or faxed to EEFax (855) 381-6520.

Subsequent Transactions

  1. After preparing Form 813 and input of the Form 813 information on the ANMF System using the Form 813 Block Control screen, RACS will provide NMF with Form 813 and various posting documents.

    Note:

    A current ANMF transcript must be attached to each document coming to NMF for processing.

  2. Supporting documentation is required for processing NMF. All documents, forms or returns received in NMF as a "Subsequent Transaction" to be posted to the ANMF database MUST have" proper" supporting documentation attached. Proper supporting documentation accepted:

    1. Current NMF Transcript

    2. NMF Notice (Form 6335, Form 4840, Form 9774 etc.)

    3. Current NMF Screen Print (except for 5500 payments)

    4. Correspondence from Taxpayers showing an "N" after the TIN or relating to a 5500 account

    Note:

    An "INOLE" print is NOT acceptable.

  3. Proper supporting documentation will identify if there is truly a NMF account posted. Supporting documentation attached to the posting documents will ensure timely processing of payments, refunds and abatements to the ANMF Database. Misapplied payments to NMF and MFT 74 (5500 accounts) has had a negative impact on the filer and is not cost effective to the Service.

  4. Any documents, forms, or returns coming to NMF without the proper supporting documents attached will be rejected and returned to the originator.

Account 4430 Procedures

  1. The campus may choose to pre-search the system to confirm the existence of an NMF account to eliminate unpostable conditions. However, this is not always feasible due to the workload. Therefore, the following procedures apply even if pre-search is not accomplished and an NMF unpostable condition exists.

    1. Research both the open, closed, and archived NMF accounts.

    2. If no account is located on the NMF database, request research of the closed ULCs not loaded onto the database. If the ULC is located, input the ULC to the database through the Load Old Accts/Transfer-in screen.

    3. If unable to locate the account, nullify and return the document(s) to RACS to be journaled into the 4430 Account, Unpostable Documents - NMF, while further research is conducted.

    4. Maintain a spreadsheet or listing of documents journaled to 4430 Account for research and control purposes. Maintain an Open and Closed File.

  2. Prepare a file folder for each document and continue research for resolution. Annotate on 4430 Account History Sheet all actions taken. Listed below are some guidelines:

    1. NMF for delayed posting of assessment

    2. MF (both IMF and BMF)

    3. CC EMFOL and CC INOLE for entity information

    4. IDRS for correct TIN

    5. Unpostable (IMF and BMF)

    6. Contact preparer of document for additional information

      Note:

      Biweekly research must be conducted.

  3. Upon identifying the application for the payment, perform the following:

    1. Prepare One-Sided Form 2424 to Debit 4430 Account (upper portion) and Credit (lower portion) taxpayer's account for information purposes.

      Note:

      Any Form 2424 prepared in the Accounting operation must be reviewed and initialed by the employee's manger or designee before sending to be processed.

    2. Route both One-Sided Form 2424 and original payment document to RACS for journalization.

    3. Annotate spreadsheet with the journal number for proper audit trail.

    4. Maintain One-Sided Form 2424, history sheet, and attached journal in Closed 4430 Account File. Retain records in accordance with Document 12990, Records Control Schedules.

  4. If no account or Closed ULC is located after 45-days, request that RACS complete the following actions:

    Note:

    Form 1040-NR fiduciary estimated tax payments may remain in 4430 Account for 120-days.

    1. Subsequent payments and other credits will be journaled from the 4430 Account to the 4620 Account, Unidentified Remittance File. Excess Collections, Account 6800, will be used for items over one year old (Refer to Excess Collections File, IRM 3.17.220). Prepare Form 2424 to Debit 4430 Account and Credit 4620. Prepare a One-Sided Form 2424 to Debit 4430 Account and Form 8758 to Credit 6800 Account.

      Note:

      Any Form 2424 prepared in the Accounting operation must be reviewed and initialed by the employee's manger or designee before sending to be processed.

    2. Debit items found applicable to Other Receivables will be journaled from the 4430 Account to Account 1510, Other Receivables, Regular, in accordance with IRM 3.17.64, Accounting Control General Ledger Policies and Procedures. Prepare Form 2424 to Credit 4430 and Debit 1510 Accounts.

    3. Attach 4430 Account History Sheet supporting completed research to the documents as backup for these journaled items.

General Posting of Subsequent Transactions

  1. NMF will input the subsequent transaction(s) to the NMF account through the Subsequent Transaction Input screen. See IRM 3.17.46.13.14, Subsequent Transactions.

  2. If the subsequent transaction appears on the Unpostable Transaction List, see IRM 3.17.46.13.11 , Unpostable Corrections, for resolution.

  3. If the account is in 22 status (TDA) or the TDA account is in status 89, then enter the subsequent transaction(s) on IDRS using the generated "IDRS Update List" (The NMF Subsequent Transactions to Accounts in TDA Status list).

  4. After posting subsequent transactions to the NMF account, the ANMF System will generate various Recaps. Recaps will not be systemically-generated for subsequent transactions when no journal action is required.

  5. Each month, the ANMF system generates the "NMF Postings for the Month of: MM/DD/YYYY" list which also contains subsequent transactions (with the related posting indicator) that have posted to the database.

Campus Deposits

  1. Documents for payments received in the campus will be sorted at the time of deposit by tax class.

  2. When the Accounting package is received, RACS will enter the Form 813 information on the ANMF System using the Form 813 Block Control screen and forward Form 813 with the related documents to NMF for input to the NMF Account through the Subsequent Transaction screen.

  3. On delinquent status accounts, use the "IDRS Update List" for control and input to IDRS after posting transaction documents to the NMF account.

  4. If the payment was intended for Master File but has been numbered as an NMF item, process as instructed in subsection on Service Center Control File. See IRM 3.17.46.2.7.

  5. If the payment is identified as applicable to an account in another campus, do not remove the item from the Form 813 total. This will be journalized as a credit in transit to other campuses.

Payment Trace ID Number
  1. Effective January 1, 2008, all payment transactions, i.e., Deposit Tickets, require a Payment Trace ID Number as payments are processed through the various remittance processing systems including ANMF.

  2. This is a 20-character field as follows:

    Parts Characters Definitions
    Site ID NN SP Campus FLC or other Site ID
    System ID NN The system IDs are listed as follows:
        01 - EFTPS
        02 - ISRP Payment Transactions
        05 - Lockbox Bank Transactions
        10 - State Income Tax Levy Program (SITLP) Levy Payments
        12 - External Leads
        15 - Receipt and Control Manual Deposits
        20 - RACS Dishonored Check File (DCF) Debit Voucher (DV)
        25 - Accounting Deposit Ticket and DV
        30 - FTD Deposit Ticket/Debit Voucher

    Note:

    FTD has merged with EFPPS

        35 - IDRS IA User Fee Sweep
        40 - Automated Insolvency Manual DT
        45- Automated Offer in Compromise Manual DT
        50- ITIN
        55- Field Assistance Function (TAC)
    Deposit Date YYYYDDD Julian Date
    Seq Number NNN For each Deposit Date, begin with 001 and increment each additional Deposit by 1
    Transaction Seq Number NNNNNN or zero For each payment summarized in a Deposit Ticket, beginning with 000001, sequentially increment the Transaction Seq Number for each transaction
  3. ANMF has established the Payment Trace ID Number field for key entry after the Transaction Code field.

  4. The effective Transaction Date is January 1, 2008.

  5. The Payment Trace ID Number is input for the following Transaction Codes and their reversal:

    TC Reversal TC
    430 661, 662
    610 611, 612
    640 641, 642
    650 651, 652
    660 661, 662
    670 671, 672
    680 681, 682
    690 691, 692
    694 695
  6. If the Payment Trace ID Number is unavailable, and all necessary research has been conducted then "zero" fill this field. If the Payment Trace ID Number is missing the sequence number"zero" fill last six-digits. Necessary research consists of:

    1. Pulling document and reviewing for Payment Trace ID Number

    2. Research MF and ANMF

    3. Contacting sending sites of Form 2158

      Note:

      Only OIC, FTD, and DOJ (received by IPAC) payments should be "zero" filled. When the PTI field is "zero" filled a history item is required to explain the action.

  7. DO NOT input the Payment Trace ID Number on Credit Elects, Offsets, and other Dummy Credit Transactions.

  8. This information is mandatory for proper financial accounting for GAO audits.

Other Transactions

  1. Receive various documents which affect the status, entity or balance of an NMF account. These include abatements of tax, penalty or interest, debit or credit transfers, account transfers, dishonored checks, statute extensions, etc. This is not an all-inclusive list.

    Note:

    Timely processing of documents to the taxpayer's account is imperative to benefit the taxpayer and other functional areas by providing accurate data of the taxpayer's account and preventing erroneous notices. Documents such as Form 1331/ Form 1331B, Form 2158, Form 2424, Form 3244, and Form 3809 have a "6 workday processing cycle" in accordance with the IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates.

  2. All documents coming to NMF for posting MUST have proper supporting documentation attached in accordance with IRM 3.17.46.8.

  3. RACS may receive Form 5147, IDRS Transaction Record, or other various documents.

    Note:

    Control D must be utilized to pull Forms 5147.

  4. If the document is not numbered, RACS will ensure that a DLN is assigned to the document compatible with the related transaction codes. All transactions input to the database must have a valid DLN.

  5. RACS will prepare Form 813, input the information using the Form 813 Block Control screen and forward the Form 813 and the related documents to NMF. Form 813 prepared for entity changes or accounts transferred-in are not input through the Form 813 Block Control screen.

  6. NMF will input the transaction documents as follows:

    1. If the transaction code is for an entity change, input using the NMF Entity Changes screen.

    2. If the transaction code was pre-journalized for other than "dailys" , then the transaction must be input through the Load Pre-Journaled Transaction screen.

    3. All other transactions will be input using the Subsequent Transaction Input screen.

    Note:

    Debit and/or Credit money should never be entered from the Form 813. Always use the return or document to input money amount.

Processing of Advance NMF Payments, Payment Posting Vouchers (Form 3244 and Form 3244A)

  1. NMF advance payments can be received when the Examination Division has determined an NMF deficiency and secured the payment prior to the assessment.

  2. Chapter 13 bankruptcy advance payments (Form 3244) on Trust Fund Recovery Penalties for individual taxpayers should be processed as Master File advance payments on the IMF Penalty File using MFT 55.

  3. Initial processing of NMF Advance Payments is external to the ANMF system and pre-journalized to Account 4610, Unapplied Advance Payments. This account should only contain payment documents that are prepared by Examination with the exception of the IMF $100 billion taxpayers (See IRM 3.17.46.5.4). All other payments must be journaled immediately to Account 4430.

  4. Form 3244A, Payment Posting Voucher—Examination (part 1) will be received by RACS in the Accounting Package and will be used as the payment source document as required.

  5. RACS will journalize the payments as instructed in IRM 3.17.64, Accounting Control General Ledger Policies and Procedures, and forward the Form 3244A to the person who maintains the 4610 Account.

  6. The advance payment file is the subsidiary for general ledger Account 4610, Unapplied Advance Payments.

    1. Maintain a spreadsheet or listing of documents journaled to Account for research and control purposes

    2. Prepare a file folder for each document and continue research for assessment. Annotate all actions taken on 4610 Account History Sheet. Listed below are some guidelines:
      • NMF for delayed posting of assessment.
      • MF (both IMF and BMF).
      • EMFOL and INOLE for entity information.
      • IDRS (NAMES and NAMEE) for correct TIN.
      • Unpostable (IMF, BMF, and ANMF).
      • Contact preparer of document for additional information or disposition of payment.

  7. The source documents will be maintained until the applicable assessment is received or the originator instructs that the advance payment be refunded.

  8. Each quarter, March, June, September, and December contact the preparer of any Form 3244A that have been in 4610 Account for six-months or more.

    Note:

    Notate all actions taken on a 4610 Account History sheet maintained in the case file.

    1. Follow-up with the preparer if no response is received within 30-days from the date of original contact.

  9. Upon identifying the application for the payment, perform the following:

    1. Prepare One-Sided Form 2424 to Debit 4610 Account (upper portion), and credit (lower portion) taxpayer’s account for information purposes.

      Note:

      Any Form 2424 prepared in the Accounting operation must be reviewed and initialed by the employee's manger or designee before sending to be processed.

    2. Route both One-Sided Form 2424 and original payment document to RACS for journalization.

    3. Annotate spreadsheet with the journal number for proper audit trail.

    4. RACS will input the credit side of Form 2424 into the ANMF System using the Form 813 Block Control screen and forward to NMF for processing.

    5. NMF will input the credit transfer (Form 2424) transaction through the Subsequent Transaction screen. Routine accounts maintenance will apply.

  10. Source documents supporting input to the ANMF System will be forwarded to Returns Files after the monthly balancing is completed.

  11. If no assessment is required, the initiator will give instructions on the disposition of the credit. The advanced payment will not be input to the ANMF System, but will be processed external to NMF.

  12. The closed advance payment file supports the closures for the 4610 Account.

    1. Maintain One-Sided Form 2424, history sheet, and attached journal in Closed 4610 Account file.

    2. Retain records in accordance with Document 12990, Records Control Schedules.

Escrow Account for Withholding Agent (Account 4610, Unapplied Advance Payments)

  1. When a manual refund is required on dual status returns, non-resident alien returns and foreign corporation, withholding tax is computed on the allowable interest using 30 percent, or the treaty rate, as applicable. This amount of withholding tax is subtracted from the net amount of the refund in accordance with instructions in IRM 3.17.79, Accounting Refund Transactions.

  2. To provide an audit trail for the amount of withholding tax withheld until the withholding agent's return is filed, the money will be transferred to the 4610 Account, Unapplied Advance Payments. The withholding agent is the Commissioner.

  3. A Form 3809, Miscellaneous Adjustment Voucher, will be prepared to debit the 6520 Account, and credit the NMF account for the amount of interest withheld.

  4. A Form 3809, Miscellaneous Adjustment Voucher, will be prepared to debit the NMF account, from which the refund was issued, and credit the 4610 Account. A Form 5205, Information About Your Income Tax Refund, (part 2) will be attached to the back of Form 3809. In accordance with IRM 3.17.79.3.13, Non-Resident Alien and Dual Status Refunds, these transactions will be monitored monthly until all transactions have posted. Accounting will then transfer, in a lump sum, all money to the withholding agent's account.

NMF Dishonored Checks

  1. RACS will receive Form 4830, IDRS Multi-Purpose Posting Document, generated through IDRS. Form 4830 may include a TC 280, Dishonored Check Penalty.

  2. RACS will prepare Form 813 and establish control through the Form 813 Block Control screen. Forward Form 813 and documents to NMF for processing.

  3. NMF will input the dishonored check transactions, TC 671 and TC 280 (if applicable), through the Subsequent Transactions screen. If the account is in TDA status (status 22 or 89), the transaction item will appear on the system generated NMF Subsequent Transactions to Accounts in TDA Status (IDRS Update List). This list will be used to post only the transactions to IDRS for NMF accounts already established on IDRS.

    Note:

    The dishonored check date and the payment posting date must agree.

  4. The RACS SCCF Summary will be generated after the transactions post to the database.

  5. Dishonored check transactions will go unpostable when the NMF account is not currently on the open database. Research is required to identify the type of action needed to establish an open account. If the account is on the closed database:

    1. Recall the closed account using the Request for Recall of Closed Account screen.

    2. When the account is recalled to the open database (the next day), the unpostable dishonored check transaction will systemically post to the account. No further action is required.

    3. The posted transaction will prompt the system to resume notice activity as appropriate or reissue a TDA if the account was in TDA status.

    4. If the dishonored check is for an NMF account where no ULC was prepared, the dishonored check function will secure the original return and request establishment of an account. These accounts will be loaded into the system in status 21 using the Load Old Accounts/Transfer-in screen.

Entity Changes

  1. Form 5147, IDRS Posting Voucher, are generated daily with entity changes. It is important that all changes are received in NMF daily for posting. Verify receipt of all Forms 5147 by cross checking the count against the IDRS Block List document count (DOC–CNT).

  2. Doc. code 63 is used for various entity changes including address information or name change.

  3. NMF TIF transcripts for entity changes (NMF ENT CHG) are generated weekly. These transcripts should be used to ensure that all entity changes have been received and are posted to the NMF account. The transcripts may be substituted for missing Forms 5147 for posting purposes.

  4. NMF will receive requests for TIN changes on established IDRS NMF accounts. Refer to IDRS Terminal Input 2.4 for input instructions.

  5. RACS will NOT input the Form 813 information through the Form 813 Block control screen. However, RACS will still forward Form 813 and Form 5147 to NMF for input using the NMF ENTITY CHANGE screen. See IRM 3.17.46.13.15, Processing Entity Changes, for processing instructions.

  6. Form 2363 can also be received for entity changes not on IDRS. RACS will prepare Form 813.

Establishing and Updating NMF TDA Accounts on IDRS

  1. Effective January 2004, NMF processing via IDRS was centralized on one mainframe in the Enterprise Computing Center (ECC-MEM). Therefore, only ONE TDA account will exist to access and/or update.

NMF TDA Account Establishment on IDRS

  1. An account transcript will be generated for all TDAs except those accounts input through the "daily" screen.

    Note:

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

    1. Input the entity and module information to IDRS using the account transcript. Do not enter TINs or account types i.e., bankruptcy, etc., into the second name line address field of IDRS-NMFTM. This superfluous data is being captured on the TDA notice which ICS generates.

    2. Be sure to input all the notice dates shown on the transcript.

  2. "Request Completed" will provide the validity checks to ensure the account information posts to IDRS. After entry, if a mismatch is discovered which cannot be corrected on IDRS, (incorrect TIN, MFT, DLN, Tax Period) forward a request to remove the module(s) to the Campus User Support function. All requests must include an IDRS print of the incorrect input, copy of the transcript and a clear reason for the requested action. All requests for removal of a tax module(s) must be approved and signed by the first line manager. Ensure that the module balance matches the account. If not, recheck your entries.

NMF TDA Subsequent Transactions to IDRS

  1. Subsequent transactions are input to IDRS using the "NMF Subsequent Transactions to Accounts in TDA Status List" as the source document.

  2. Input transactions to IDRS. See IRM 2.4.14, IDRS Terminal Input Subsequent Transactions. Payments and Daily Area Office Remittance (DAR) transactions will still be input by the field. Their processing is unchanged and is separate from real-time processing.

    Note:

    Effective July 1, 2011, ANMF has been programmed to accept TC 538 and TC 539. TC 766 and TC 767 should no longer be used for TC 538 and TC 539 for IDRS input.

NMF Balancing

  1. Any action taken on the ANMF System i.e., weekly assessment, status change, subsequent transaction, account transfer, etc., will generate a Recap. All Recaps are printed on 3 part paper. Part 1 is attached to the documents. Parts 2 and 3 are forwarded to RACS for journalization. After journalization, RACS will stamp the journal number on both parts 2 and 3. Part 2 is retained in RACS and filed. Part 3 is compared against the Service Center General Ledger Report by the Balancing function then retained in NMF.

    Note:

    The ANMF SC RECAP replaced Parts 2 and 3 of the NMF or RACS Recaps throughout this section. The instructions for parts 2 and 3 will be used only if manual journalization is necessary.

Cut-Off Dates

  1. The NMF month end cut-off will be the last working day of each month. The RACS month end cut-off will be the 2nd day of the new month after the NMF cut-off. The majority of the reconciling items will be "dailys" which are pre-journalized. RACS will provide these pre-journalized items to NMF on a copy of Form 8166 for balancing purposes.

Researching NMF for Balancing Purposes

  1. On December 14, 2009, ANMF converted from Informix to Oracle software. This changed the appearance of the Research screens and the method in selecting the menu options by clicking on the appropriate button. The TAB key and/or mouse are used to navigate from field to field within the screen.

  2. Enter the ANMF System with your log-in and password. The Database field may not automatically display ANMF. Click on the Connect button.

  3. When the MAIN menu appears, click the RESEARCH NMF button.

  4. On the research screen—select either of the following by clicking the appropriate button:

    1. Request NMF Transcript to order transcripts, or

    2. Research Open NMF Account, or

    3. Research Closed NMF Account.

  5. Upon clicking the Research Open or Closed buttons, the screen will default to the ADD mode and display the ENTITY screen which is denoted by the gray Tab at the top. This is also indicative of the Current screen. To QUERY entity information click the "ENTER QUERY" button, use the TAB key or mouse to enter the information in the respective field and click the "EXECUTE QUERY" button to submit the request. Any field on this screen can be queried. Use the entity screen to research the correct name, TIN, period ending, MFT, DLN, account balance, account status, etc. For example:

    1. To query the EIN field, enter the EIN.

    2. To query the SSN field, enter the SSN.

    3. To query the DLN field, enter the DLN.

    4. Enter the appropriate hyphens between numbers for the SSN, EIN and DLN formats. When completed, click the "EXECUTE QUERY" button.

      Note:

      Upon executing the query, the screen will display the gray colored Tab (current screen) and Teal colored Tabs at the top. Click the appropriate TAB to view Entity, Notices, Transactions, History, etc., of the account.

  6. To research the transaction screen, select the TRANSACTIONS Tab and click the "ENTER QUERY" button, use the TAB key or mouse to enter the information in the respective field and click the "EXECUTE QUERY" button to submit the request.

    1. To view the next transactions,, click the "NEXT" button.

    2. To view previous transactions, click "PREVIOUS" button. Any field on this screen can be queried using the same steps as QUERY on the ENTITY screen.

    3. The DLN of the posting document can be queried from this screen to see if the document was posted to the correct TIN, period ending, MFT, etc.

    4. If the information you are researching is not located in the open file, click the "EXIT" button to exit the screen and return to the Research Menu. Click the Research Closed NMF Account button and follow steps 5 and 6 above.

  7. Additional database research screens are as follows. Each of the options listed below will prompt a screen which is self-explanatory and research can be performed on any field. These options are located on the NMF Processing menu.

    1. Research RACS Recaps.

    2. Research Processed F813 Cur Month.

    3. Research Posted Transactions Cur Month.

    4. Processed Nullify Up Requests.

  8. To logout click the "EXIT" button to exit the screen. This will return you to the MAIN menu. Then click the "MAIN MENU" button to exit the NMF PROCESSING MENU and return to the NMF USER MENU. If in the RESEARCH MENU, clicking the "EXIT" button will return to the NMF USER MENU. Click the "EXIT MENU" button and you will receive the following message:
    Are you sure you want to exit?
    Click the YES or NO button.
    Upon clicking YES, you will receive a message stating that "You have successfully logged out to the system. Remember to close your browser window" .
    Click OK and then the "X in the upper right hand corner to exit the Intranet" .
    You are now logged out of the system.

Balancing

  1. To balance between RACS and NMF the following research tools may be needed each month:

    1. Current month's General Ledger File (GLF) from RACS—generated by status.

    2. Last month's Trial Balance.

    3. Current month's Trial Balance.

    4. Current month's Recap of Journaled RACS Summaries from the NMF system—includes status changes. (figure 3.17.46-20)

      Figure 3.17.46-20

      This is an Image: 33900035.gif
       

      Please click here for the text description of the image.

    5. Current month's RACS Daily Posting Summary (DPS).

    6. ANMF database transaction file.

    7. Any supporting documentation for pre-journalized items (Form 8166; memo; etc.).

    8. NMF Postings for the Month of: __

  2. The GLF is the controlling document for balancing. The Subsidiary Trial Balance must balance to it.

Identifying Journals (Weekly)

  1. Receive the GLF from RACS weekly.

  2. Using the NMF RACS Summary book, identify the SSN/EIN and money amount of each journal printed on the GLF.

  3. Check the GLF and RACS summaries for accuracy in three categories;

    • Account status

    • DR/CR

    • Money amount

      Note:

      For discrepancies, request status corrections, DR/CR corrections, and/or money amount corrections and forward to RACS for journal corrections.

  4. If all journals are correctly identified after matching the RACS summaries to the GLF, no further action is necessary until you receive the following week's GLF.

  5. If all journals are not identified by a RACS summary or supporting documentation, use the DPS (Daily Posting Summary) book in the RACS unit to identify the source of a journal.

  6. All journals should be identified on each GLF weekly.

Matching NMF Subsidiary to RACS General Ledger

  1. Receive a Trial Balance listing printed on the last day of each month. Status 21 and 58 are combined on the trial balance; status 14, 22, 24, 53, 60, 71, 89 and 99 are shown separately on the trial balance. Although Child Support Obligation (CSO) (MFT 59) cases are included in all notice status on the trial balance, a separate trial balance for CSO cases is also generated.

  2. To determine if RACS and NMF agree, compare the GLF sum of the following to NMF: add the DR amount cumulative and subtract the CR amount cumulative. If that total matches the "bottom line" of the NMF trial balance, then no further balancing is needed. If they do not agree, then further balancing (reconciliation) is needed.

  3. If the totals do not agree, then:

    1. Review previous month's GLF cover sheet and any reconciliation sheet prepared to find and verify correction journals for the month.

    2. Using the previous month's trial balance and the current month's trial balance, check each posting identified on the GLF to see that the balance is correct. For a good working trail, write the journal number of each posting beside the TIN on the trial balance. If the account does not balance when all steps are complete, this will aid in identifying each posting.

    3. Check the posting date on the current month's trial balance to ensure that each posting is identified by a journal number. If a journal was not received for a posted item, it will be treated as a reconciling item on the front cover sheet until the journal is received.

    4. An item by item check between last month's and the current month's trial balances may be necessary if steps (a), (b) and (c) do not resolve the discrepancy. If you are still not balanced then continue.

  4. Check the NMF status change Summaries or the Research screen for Status Change to determine if an account status has changed.

    1. A TC 400 (transfer out) with the account balance will generate a status change to 99.

    2. A TC 402 with an account balance will reactivate the account to the previous status.

    3. A TC 470 (TP claim pending) will generate a status change to 89.

    4. A TC 471 (reverses TC 470) will change an account status from 89 to the previous status.

    5. A TC 472 (used to reverse erroneous TC 470) same as TC 471.

    6. A TC 480 (OIC pending) generates a status change to 71.

    7. A TC 481 (OIC rejected) will change an account status from 71 to the previous status.

    8. A TC 482 (OIC withdrawn) same as TC 481.

    9. A TC 483 (correction of erroneous TC 480) same as TC 481.

    10. A TC 530 with zero money amount (write-off to 1830 acct.) will generate a status change to 53.

    11. A TC 530 with a money amount is used to correct an account balance in Account 1830 only.

    12. A TC 531 (reversal of TC 530) will change an account status from 53 to the previous status.

    13. A TC 520/524 will generate a status change to 89.

    14. A TC 521/525 will reactivate the account to the previous status.

    15. A TC 971 AC 63 will change an account status to 60.

    16. A TC 972 AC 63 will change an account status from 60 to the previous status.

  5. If all is balanced, go to step b. If conditions of step b are met, no further balancing is needed. If not, continue.

    1. If a TC 531 is input with a zero money amount, then an account status change is generated from 53 to the previous status and a TDA is reissued.

    2. A TC 531 input with a significant (not zero) money amount should equal the money amount of the original TC 530 less any credits. It is used to reactivate a pre-RACS 53'd account and must have a credit posting and a journal.

    3. A TC 532 with zero money amount (used to reverse erroneous 530) will generate a status change to the previous status.

    4. Research the new status for the journal number.

  6. An additional tool in balancing is the Daily Posting Summary (DPS) book located in the RACS unit. It lists all journals prepared and what status and accounts are debited and credited.

    1. The DPS book is set up in journal date order.

    2. Journal numbers and amounts are shown.

    3. This will also show the original journal number of a source document. If the missing journal is not located on last month's GLF cover sheet and there is no RACS summary for the journal number and no status change, then the DPS may be useful to find the source document that caused the RACS change. Follow the audit trial until you locate the journal or discover that a journal needs to be prepared. If after researching the DPS you remain out of balance, then continue.

Matching Trial Balances by TIN

  1. Review by SSN/EIN each entry on the current and last month's trial balance to resolve any balance discrepancy. List the discrepancies by SSN/EIN and the action needed to resolve each difference on the GLF cover sheet.

  2. If last month's balance on any SSN/EIN does not match the new balance, and a journal is located that changed the money amount, annotated the NMF trial balance beside the SSN/EIN with the journal number. This will help you next month when the journal number adjustment posts.

  3. Research entity changes to see if the SSN/EIN changed.

  4. If you are still out of balance, then continue.

Research RACS Recaps

  1. If all indications show that a RACS Recap has not been received then research the system through the Research screen to see if a RACS Recap was generated. The Research transaction section will have a posting indicator field that contains the following indicators:

    Note:

    The ANMF SC RECAP summarizes the data from the NMF or RACS Recaps for batch journalization 141 and 142. See IRM 3.17.46.2.4 (4). The NMF Recaps are linked to the ANMF SC Recap by the 23C Date, DD portion of the Cycle, and print date.

    1. "R" will confirm the transaction posted on ANMF and a RACS Recap has been generated.

    2. "G" a generated transaction (TC 531) has been posted to the account. No Recap is generated. This account met TDA cumulation and the account status has been changed.

    3. "T" will confirm that a transfer-out (TC 400) RACS Recap was generated for that transaction.

    4. "L" will confirm that a transaction was input with a pre-journalized account through the load screen or through the Pre-Journaled Transaction screen by the DBA. A 99999–99999 account transcript is produced.

    5. "P" will confirm that a pre-journalized transaction was input and posted to ANMF, and that no RACS Recap was generated.

    6. "S" will confirm that a transaction posted to change the status of an account.

  2. QUERY the NMF database using the taxpayer's SSN/EIN and check each "Detail" file by clicking the TRANSACTION Tab of a taxpayer's record (not the entity portion) for the missing money amount.

  3. Annotate the GLF cover sheet for action pending on any of the above. There may be reconciling items in either NMF or RACS.

    1. NMF—a journal number on a general ledger sheet but no entry to the ANMF system.

    2. RACS—an entry on the NMF trial balance but no entry on the general ledger sheet.

  4. If you are still unbalanced, go back to the beginning of this section (TRIDOC) and retrace each step until you are balanced.

Reconciliation Report—Form 3997

  1. After all accounts are reconciled and all accounts are in balance, a monthly report is prepared for transmission to the Headquarters.

  2. NMF will forward the month end balances to RACS for preparation and transmission of the Form 3997 to the Headquarters. Retain a list of all reconciling items to be used in the GAO audit. The reconciling items must include the TIN, MFT, Period Ending, transaction codes and amounts, DLN, Recap Summary Number for Post Journaled transaction codes or the Journal Number for Pre-Journaled transaction codes, and the reason it is a reconciling item. The list may be maintained using local procedures, i.e., personal computer (PC).

NMF Account Review and Maintenance

  1. NMF account review and maintenance is fundamental to the accuracy of the taxpayer's account balance for notice and refund issuance as appropriate. Consideration must be given that the ANMF database is utilized by many functional areas such as Accounts Management, Collections, Customer Service, Exam, and Taxpayer Advocate Service in response to the taxpayer's inquiry.

Penalty and Interest Review

  1. In January 1999, several program changes were made to the ANMF for the computation of Failure to Pay Penalty and Interest. They are as follows:

    1. Failure to Pay (FTP) penalty and interest on the FTP penalty will begin from the date of an unpaid assessment. If the liability on an account has been completely satisfied and a subsequent assessment is made, then FTP and Interest on the FTP penalty will be computed from the date of the unpaid subsequent assessment.

    2. FTP should not exceed 25 percent on any given NMF account.

    3. On accelerated notices where the Fourth Notice and TDA are generated simultaneously and have the same date, FTP and Interest will compute to the Fourth Notice Date.

    4. A 10 business day, FTP and interest free period will apply to any payment made to an NMF account with a liability equal to or over $100,000.

    5. A 21 calendar day, FTP and interest free period will apply to any payment made to an NMF account with a liability of less than $100,000.

    6. FTP will compute 1 percent at the end of the month after the Fourth Notice.

    7. FTP computation will consider previous credits with a transaction date prior to the unpaid assessment transaction date.

    8. Interest computation criteria:

    If Then
    Prior to February 1980 Compute on a year, year, month, month, day, day, basis (YYMMDD).
    From February 1, 1980 to December 31, 1982 Calculate total days times the daily interest factor.
    From January 1, 1983 to current Interest compounded daily.
  2. For notices issued prior to January 1, 1997, the system will review accounts in notice status which are paid more than 17 calendar days after the date of first notice and compute accrued penalty and interest due.

  3. Notices issued after December 31, 1996 extended the interest—free period on payments received after the notice and demand to: 10 business days on accounts $100,000 and over≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ,

  4. On accounts under $100,000 the period is extended to 21 calendar days≡ ≡ ≡ ≡ ≡ ≡ .

  5. If the accruals are ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , the system will generate the first notice Form 6335, and update the penalty and interest notice date. The notice will include the standard statement for penalty/interest accruals.

  6. If additional penalty and interest is not paid within 45-days, the system will generate a penalty/interest review transcript. This transcript will only be generated once and the account will then be systemically purged.

    1. If the accruals do not meet TDA criteria and are ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ consider the account closed.

    2. If the accruals are ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ assess the accruals and bill the taxpayer, using the Alternative Notice System, then input a TC 530 cc 09. Document notice issuance in history.

    3. If the accruals are ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ assess the accruals and bill the taxpayer, using the Alternative Notice System, then input a TC 530 cc 39. Document notice issuance in history.

    4. If the accruals meet TDA criteria, prepare Form 5734 with a doc. code 54 or Form 3809 to assess the accruals indicated on the transcripts. Although the transcript will show a balance due of zero, the interest accrual section of the transcripts will show the amount to be assessed.

  7. Weekly, accounts scheduled for issuance of Notices/TDAs which contain reversal of erroneous abatements (TC 860 unreversed) will generate an Accounts Maintenance transcript and an incorrect notice will be generated without any penalty and interest computations. These notices must be found, via the transcript, and destroyed. Penalty and interest must be manually computed for these accounts and a notice reissued.

  8. Weekly, an Accounts with Reversal Code Problems list will be generated for accounts scheduled for notice/TDA issuance that contain transactions loaded onto the database without a transaction code to reverse. Penalty and interest must be manually computed and a manual bill must be prepared.

Penalty and Interest Computations

  1. The Accounting Branch is responsible for the computation and assertion of penalty and/or interest under the following conditions:

    1. NMF accounts paid while in notice status.

    2. Issuance of 4th notice, and issuance of TDAs for NMF accounts requiring entry of accrued penalty and interest.

    3. Refund of outstanding credit balances on NMF accounts.

  2. The system will compute and assess penalty and interest for all NMF accounts, and NMF credit balance accounts. See IRM 3.17.46.11.4.

    Exception:

    If the following conditions exist on the account:

    1. Unreversed TC 860.

    2. Any unmatched reversal transaction code that carries money.

    3. Abusive Tax Shelter assessments involving 120 percent interest.

  3. Abusive Tax Shelter assessments are identified with Reference Code 221, Tax Motivated Transaction Amount and Reference Code 222, Tax Motivated Interest Amount which reflects the use of 120 percent interest in the TC 340 amount.

    Note:

    This law was repealed in 1989, therefore it only applies to interest on returns starting in 1985 and ends with returns having due dates prior to 1990. See IRM 20.2.5.9, Tax Motivated Transaction (TMT) Interest.

    1. If the assessment contains one of these two Reference Codes, input "120% Interest" in the Cross Reference field when establishing the account.

    2. Interest accruals on these abusive tax shelter assessments must be computed manually.

  4. At times there may be special circumstances when a manual computation of penalty and/or interest accruals may be required, such as:

    • Armed Forces Combat Zone— IRC 7508. A posted TC 502 suspends the penalty and interest.

    • 1 percent penalty start date if other than Fourth Notice.

    • Large Corporations require additional 2 percent interest.

      Note:

      C-corporations owing taxes over $100,000.00 and not full paid within 30-days of the notice (23C date) may get charged an additional 2%. See IRM 20.2.5.8, Large Corporate Underpayment (LCU).

    • Interest rate ordered by Tax or Bankruptcy Court which differs from IRS normal rate.

    • Netting of interest resulting from a deficiency assessment and credit interest paid on a prior refund.

    • An abatement posted to adjust the tax liability only and not penalty and interest.

    • Abusive Tax Shelter– 120% Interest

    • Reversal of Erroneous Abatements– TC 860.

    • Unmatched reversal transactions with money.

    • Accounts where prior credits are transferred-in to an account thereby making a penalty and interest calculation incorrect.

      Note:

      See IRM 20.2.8.6, Reasons for Restrictions, for a list of additional reasons interest needs to be manually computed.

  5. Exception Code "M" and "U" are available for input through the Original Load screen or Manual Interest and Penalty Update screen.

  6. The Accounts Flagged for Notice/TDA Listing now includes an Exception Code field. Accounts identified with the "M" or "U" will require manual computation of interest and/or penalty accruals and manual issuance of the 4th notice and/or TDA. The exception code "M" accounts appearing on the list must be worked within 5-days of receipts.

    Note:

    Exception Code "M" will suppress the notice.

  7. Upon calculation of interest and/or penalty, access the Manual Interest and Penalty Update screen and enter Exception Code "U" to update the penalty and/or interest accruals. See IRM 3.17.46.7.4 (4).

  8. Manually issue the 4th notice/TDA through the Reissue Notice screen.

  9. After issuance of the notice/TDA, exception code "M" must be replaced so that it will appear on the future Exception Code "M" Listing. See IRM 3.17.46.11.3, Exception Code "M" Listing.

Exception Code "M" Listing

  1. The Exception Code "M" List will be generated one week before the end of the month. The List will contain all NMF accounts, excluding status 53, that contain exception code "M" . These accounts will require manual update of penalty and interest accruals to the ANMF database.

  2. After calculation of accruals is complete, enter through the Manual Interest and Penalty Update screen.

Credit Balances—Refund Returns

  1. The Credit Balance Account Listing which generates weekly is a management tool which can be used for monitoring of inventory, detecting processing trends, and ensuring timely disposition of Credit Balance Accounts.

    1. The report will sort by TIN order. The ANMF Account Balance date of the credit will be reflected as well as the number of days aged in the "Days AGE" column. A weekly and cumulative total number of accounts are provided.

    2. NMF Technician should utilize the report to facilitate research of credit balances. Appropriate actions for disposition of credit must be annotated in the Action to be Taken column of the report.

    3. Maintain annotated copy of the report for the official file.

  2. The system will produce a credit balance transcript the first week the account becomes a credit balance. Subsequently, the system will produce another credit balance transcript 26 cycles later. After the account is in credit balance for one year, a credit balance transcript will be generated each week. Review all credit balance transcripts to assure that all prescribed actions are taken.

    1. Verify that all penalty and interest accruals due on the account have been assessed. Compute and assess all penalty and interest accruals due on the account. If the new balance due is ≡ ≡ ≡ ≡ ≡ ≡ ≡ input a TC 530 CC 09. If the accruals are ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ assess the accruals, bill the taxpayer using the Alternative Notice System then input a TC 530. See IRM 3.17.46.7.8 (2)d for appropriate closing code.

      Note:

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

    2. Complete research is required on all credit balances to ensure proper offsets and refunds are made. Complete research includes both NMF and Master File. NMF research includes open accounts, closed accounts and the History sections of each. The IDRS Command Codes On-Line Entity (OLE) and Corporate Files On-Line (CFOL) are recommended as excellent research tools.

    3. If a known condition does not prevail indicating that the credit is proper, such as a payment with Form 7004, Application for Automatic Extension of Time to file Certain Business Income Tax, Information, and Other Returns, for Political Activity Cases, research NMF and Master File to determine if a balance due exists. If an open account is located, transfer the credit to the NMF account first. If you apply the credit to another NMF account, add an explanation of the transfer to the History section of both accounts. If no open NMF account exists and an open balance exists on the MF, then transfer the entire credit to the MF account. For transfers within NMF, transfer only up to the amount in debit plus accruals. Refund any excess credit via the manual refund procedures.

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

    5. If research discloses that the account for which a payment was intended is a zero balance, 53'd ULC, See IRM 3.17.46.12.1, Currently Not Collectible Accounts.

    6. If research discloses that the credit is a credit elect for a future NMF return, then the credit should remain on the account until the return that the credit elect is intended for is received or it has aged 365-days or more on The Credit Balance Account Listing.

    7. If no outstanding or potential (adjustment pending) liability exists, refund the overpayment. Prepare Form 3753 or Form 5792 as instructed in IRM 21.4.4.4, Preparation of Manual Refund Forms. Indicate IRM 3.17.46.11.4, Credit Balances- Refund Returns in Section IV - Other remarks of Form 3753 or in the remarks section on Form 5792. Forward to the Manual Refund function for DLN numbering, schedule number and schedule date. RACS will forward Form 3753 or Form 5792 with Form 813 to NMF for input of the TC 840 and TC 770 to the NMF account.

      Note:

      Ensure that history item is input on same day that the Form 3753 or Form 5792 is prepared.

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See IRM 3.17.46.12.3. Form 2007 should only be prepared if manual input of TC 607 is necessary.

    Note:

    A NMF transcript may be used in lieu of Form 2007.

    1. Forward Form 2007 for numbering and preparation of Form 813.

    2. Forward Form 2007 and Form 813 to RACS for input through the Form 813 Block Control screen.

    3. RACS will forward Form 813 and Form 2007 to NMF for input of the TC 607 to the NMF account through the Subsequent Transaction screen.

  4. If an account is in TDA status and a credit balance remains after the cycle balancing, contact the Area Office to confirm posting; if proper and no additional liability is disclosed, refund the overpayment.

  5. If unable to apply or refund the overpaid amount as instructed above, transfer the credit to the Excess Collections Account 6800 (money held by IRS one year or more) or the Unidentified Account 4620 (money held by IRS less than one year), as appropriate. Prepare Form 8758/ Form 2424 using TC 820 for debit items and a TC 700 for credit items and forward for numbering, batching, blocking, etc.

  6. If the credit balance is to be refunded, compute interest on the amount as required by IRM 20.2.4, Overpayment Interest.

    1. Prepare Form 5792 (Form 3753 if not on IDRS) entering amount of credit balance, interest and total amount to be refunded; secure the refund date and enter during preparation. Input Form 5792 to IDRS and forward to the refund function. RACS will forward Form 5792 and Form 5147 with Form 813 to NMF for input of the TC 840 and TC 770 to the NMF account.

      Note:

      Prepare Form 5792 as instructed in IRM 21.4.4.4, Preparation of Manual Refund Forms. Ensure that history item is added to the account on the same day of the preparation of the Form 5792.

    2. Prepare Form 3753 for an account not on IDRS. Forward to the Manual Refund function for DLN numbering, schedule number and schedule date. The Form 3753 and Form 813 will be forwarded to RACS for input to the Form 813 Block Control screen.

      Note:

      Prepare Form 3753 as instructed in IRM 21.4.4.4, Preparation of Manual Refund Forms. Ensure that history item is added to the account on the same day of the preparation of the Form 3753.

    3. If a refund check has been cancelled and the credit re-established on the NMF account and the check is to be re-issued, prepare Form 3753 or Form 5792 in the amounts posted to the account. Do not allow interest from the date of the first check to the issuance of the 2nd check unless specifically requested. Such as, a check being returned due to an IRS error, e.g., mailing it to the wrong address.

  7. Care should be taken to thoroughly document all actions taken on a credit balance account. Each separate action, from the time a Credit Balance transcript is first generated through final resolution of the credit balance condition, should be annotated on the History screen.

    Note:

    Input history items on the same day of the action taken. History items should be clear and concise so that both ANMF and research users understand all actions taken.

  8. Although a second and third credit balance transcript is generated every 26 cycles after the account originally becomes a credit balance, follow-up should be made with other functions (i.e., OIC, Appeals, etc.) that may be utilized to resolve the credit balance condition. Follow-up action should be taken at least every two-months. Also, be sure to input a history item when forwarding the Credit Balance Transcript to another function for resolution.

Form 1099 INT List
  1. The 1099 INT List contains all unreversed refund interest ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ which posted to the ANMF database from January through December. Print the list no later than January 15th of each year. See IRM 3.17.46.15.4 (4) t. To obtain the report:

    1. Access the Main Menu and select Option 6

    2. Select: Generate 1099 List

    3. Select: Print 1099 List

  2. Forward the 1099 List to the Manual Refund function for issuance of 1099–INT statements to NMF taxpayers. The taxpayer(s) must receive the Form 1099-INT by January 31st of each year.

    Note:

    Effective January 2007, an ANMF file is uploaded to the 1099 database which populates the Form 1099-INT, thereby minimizing manual preparation.

Non-Master File Erroneous Refund Procedures

  1. An Erroneous Refund (ER) is defined as "any receipt of money from the Service to which the recipient is not entitled." Examples of ERs are:

    • Misapplied payments

    • Incorrect refundable credits (TC 766)

    • Multiple TC 840s for the same overpayment

    • Refunds issued after expiration of the Statute of Limitations

    • Refunds issued to the wrong taxpayer

  2. There are five types of ERs: Category A1, Category A2, Category B, Category C, and Category D. Only Category D ERs are processed by the Accounting ER Unit. See IRM 21.4.5.4, Erroneous Refund Categories and Procedures, for details on each category.

  3. NMF ERs initiated by the NMF unit are classified as Category "D" Non-Rebate ERs. The ER Statute Expiration Date (ERSED) for recovering the Non-Rebate ER is two years. The ERSED can be five years if the taxpayer deliberately or negligently caused the ER.

  4. If the ERSED (refund transaction date) for the erroneous refund has expired, then:

    • Notate in History section "ERREF Statute Expired" and IDRS if the account is controlled.

    • Prepare a history sheet documenting any action taken.

    • Prepare Form 12356, Erroneous Refund Worksheet., as instructed in Refund Inquiries, Erroneous Refunds IRM 21.4.5.5.2.

    • Attach a transcript of the account.

    • Complete Lines 1–10 of Form 14165, Erroneous TC 840/846 Report as instructed in Refund Inquiries, Erroneous Refunds IRM 21.4.5.4.6.

    • Forward the case to the Campus ER function.

  5. If the ERSED for the erroneous refund has not expired, then:

    1. Use the IDRS CORRESPONDEX to send a 510C Refund in Error, Return Check letter. The letter will include: Date of Demand which is determined by adding 7 work days from the input date of the letter; total amount of the refund that the taxpayer received; date of refund; amount that the taxpayer needs to return which may include interest; date the repayment needs to be received by IRS; contact person and telephone number (Customer Service, 1-888-829-7434).

      Note:

      See IRM 20.2.7.6, IRC 6404 (e) (2), Erroneous Refunds, regarding interest computation and payment grace periods.

    2. Print a copy of the completed 510C letter.

    3. Notate in the History section "510C/TO/TP/ERREF."

    4. Take action necessary to correct the erroneous refund (misapplied credit, duplicate credit, etc.).

    5. If the erroneous refund was not the taxpayer's fault, and transferring or reversing the credit creates a debit balance, input a TC 470. This will prevent the taxpayer from receiving notices for six-months. After six-months, the TC 470 will be removed and the taxpayer will receive a notice.

    6. Staple any documents substantiating the ER to the history sheet. The history sheet must contain all actions taken. Include the following information on the history sheet: erroneous refund category and cause; documentation of any action taken; print of the entity and tax period; printed copy of the 510C letter.

    7. Prepare Form 12356, Erroneous Refund Worksheet., as instructed in Preparing Form 12356, Erroneous Refund Worksheet, IRM 21.4.5.5.2.

    8. Complete Lines 1–10 of Form 14165, Erroneous TC 840/846 Report, as instructed in Preparing Refund Inquiries, Erroneous Refunds 21.4.5.4.6.

    9. Forward the case to the Campus Erroneous Refund function.

    Note:

    The following link provides a copy of the 510C letter in the Researching and Resolving Erroneous Refunds course book 2493-701 page JA-14: http://coursebooks.enterprise.irs.gov/Books/IMF%20Accounting/2493-701.pdf

NMF Identity Theft Erroneous Refunds
  1. When NMF identity theft is identified a Form 3809 will be prepared to credit the taxpayer's account and debit 1545 Account, Identity Theft Erroneous Refunds.

  2. RACS will prepare Form 813 and establish control through the Form 813 Block Control screen. Forward Form 813 and documents to NMF for processing.

  3. NMF will input the NMF Identity Theft Erroneous Refund transaction, TC 841 or TC 700 (if part of the refund will be written off), through the Subsequent Transactions screen.

    Note:

    The following link provides additional information for Identity theft: http://win.web.irs.gov/accountsmgmt/IdentityProtection.htm

Account Review

  1. A report entitled the "T/C 520 Listing " is available from ANMF. The report will identify all unreversed T/C 520s categorized by Area Office then TIN order (EIN first sort, SSN second sort). An age indicator will precede the TIN as follows:

    If Then
    90–179 days— no asterisk
    180–364 days— one asterisk
    1 year or older— two asterisks
    1. The report must be produced at least once a quarter. Transcripts will not generate from these reports.

    2. The "T/C 520 Listing" will reflect the total number T/C 520s posted to ANMF as of the current date.
      The original "T/C 520 Listing" will be emailed to the appropriate Insolvency Function via memo for validation of accounts with an age indicator (two asterisks) of one year or older.
      The appropriate function must respond by annotating the validation in the Action to be Taken column on the report. A response should be received within 30-days from the date of the "T/C 520 Listing" .

    3. Maintain annotated reports as an official file copy for audit trail purposes.

  2. If an adjustment is pending or a payment is not applied to an account in TDA/notice status, the appropriate function or Campus personnel will suspend collection activities and input to IDRS a Collection Closing Code of 90 or 93 with a TC 470; IDRS will generate a Form 5147 for the transaction to the Kansas City Campus Accounting Branch.

    1. Input a TC 470 with the appropriate closing code through the Subsequent Transaction screen of the NMF account. Include in the History section the employee number of the preparer of the Form 5147. If the account is not in status 89, the TC 470 will move it to status 89. If the account is in status 89, the TC 470 will update the Claim/Adjustment Pending files. This will facilitate the 90-day, 180-day, 360-day and yearly follow-up transcript for the life of the statute. Send Form 5147 to Returns Files.

    2. After 90-days have elapsed, a transcript will be generated to review the account and if the credit or adjustment has not been applied, forward the account transcript to the originator. Update the History section that the transcript has been sent and the date it was sent. After 180-days has elapsed a TC 472 will be systemically posted and the account will move back to its original status.

    3. If the account contains a TC 520, a transcript will be generated after 90-days has elapsed. Review each transcript to determine if the TC 520 is 90 or 180 days old. If the TC 520 is not one year old, the transcript may be destroyed. Use the 360 day transcript to prepare a contact memo to the local insolvency office to verify if the TC 520 is still valid. If Special Procedures states that there is no record of the TC 520, a memo to the appropriate Appeals office should be prepared requesting the same information. If Appeals states that there is no record again, prepare a Form 3177 to input a TC 522 to the system and resume normal Notice/TDA issuance.

  3. If the payment or adjustment does not satisfy the liability and the remaining balance exceeds normal TDA tolerance, prepare Form 3177 for input of TC 471. When TC 471 posts to IDRS the status will systemically change from 89 to status 26.

    1. If the adjustment satisfies the liability within normal TDA tolerances, input TC 530 with closing code 09 through IDRS using REQ 77.

    2. If the adjustment or payment has satisfied the liability, leaving a zero balance, and the account is in status 26 on IDRS, input a STAUP 12 so the account will drop off IDRS.

    3. If the module is no longer on IDRS or is in status 12, take no terminal action.

  4. An account transcript will be systemically-generated when an abatement of tax transaction code posts to an NMF account.

Write-Off Accounts and End of Fiscal Year Processing

  1. Certain accounts will be written off as currently not collectible.

Currently Not Collectible Accounts (NMF status 53, Account 1830)

  1. TDA Eligible Accounts: If the account is eligible for TDA status i.e., appropriate notices have been issued, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ then the account will appear on the NMF ≡ ≡ ≡ ≡ ≡ ≡ ≡ for Notice/TDA Issuance list. If Compliance advises acceleration to TDA status, input of a "Q" in the Notice Type field of the Notice Correction screen to generate a TDA regardless of the debit amount. Prepare Form 3177 for input of the TC 530 with a zero money amount to the NMF account. See IRM 3.17.46.7.8 (2)d.

  2. Notice Status Accounts: Some notice status accounts (other than TDA) may be reported currently not collectible by Compliance Division. In these cases, Form 53, Report of Currently Not Collectible Taxes, and a copy of the taxpayer notice (other than the TDA) will be submitted to Accounting by Compliance Division for the input of a TC 530 with a zero money amount to the NMF account. Compliance should provide the closing code on Form 53. If the closing code is not included on the Form research IDRS. If it is not posted to IDRS or entered on the form contact the originator. Refer to instructions in (6) below.

  3. Tax Delinquent Accounts: Compliance will input TC 530 to IDRS which generates Form 5147 with doc. code 77. Kansas City Campus Accounting will input the TC 530 with a zero money amount to the NMF account to generate a status change to 53 for an account not presently in 1830.

    Note:

    Reject TC 530 request back to the originator when there is an unreversed Installment Agreement (TC 971 AC 63) on the account.

  4. For notice status accounts to be reported as currently not collectible, receive various forms of notification (Form 53, Form 3177, or Memo).

    1. Number the various documents and prepare Form 813 with the item count and zero money amount.

    2. RACS will enter the Form 813 information using the Form 813 Block Control screen.

    3. RACS will forward Form 813 and the related documents to NMF for input to the NMF account through the Subsequent Transaction screen.

  5. For delinquent status accounts (TDAs) on IDRS, a Form 5147 will be received. The Form 5147 will reflect a TC 530 with the account balance amount shown on IDRS. Input a TC 530 with zero money amount through the Subsequent Transaction screen.

  6. TDA accounts not yet on IDRS or were on IDRS but dropped off will be handled as follows:

    1. Form 53, Report of Currently Not Collectible Taxes, will be forwarded to the numbering function. Review for signature.

    2. The numbering function will number Form 53 with doc. code 77 and prepare a Form 813.

    3. Forward Form 813 and Form 53 to RACS for input using the Form 813 Block Control screen.

    4. RACS will forward Form 813 and Form 53 to NMF for input of TC 530 with a zero money amount to the NMF account through the Subsequent Transaction screen.

  7. If a TC 530 is input through the LOAD ULC–TRANSACTION screen or the Subsequent Transaction screen of the ANMF system, the cursor will automatically be positioned at the Closing Code field of that screen. If the Closing Code is not present on the transaction document, contact the originator.

Reopening and Reactivating Currently Not Collectible Accounts (53'd)

  1. Reactivated—If the Area Office determines a 53'd account is now collectible they will submit a TC 531 with zero money amount (to activate account to its prior status).

    Note:

    NMF will establish the account on IDRS and prepare Form 3177 to request input of a TC 531 with zero money amount to the NMF account. This will move the account to status 22.

  2. If an Entity Change Transaction Code 014 or 015 posts to an account currently in status 53, the system will generate an Accounts Maintenance transcript. This transcript will be used to determine if the TC 530 Closing Code was either an 03 or 12 (unable to locate or contact).

    1. If the Closing Code is either 03 or 12, NMF will prepare Form 3177 with a TC 531 (zero money amount) for input to the account through the Subsequent Transaction screen. A re-issue TDA will be systemically-generated.

    2. If the Closing Code is other than 03 or 12, destroy the generated transcript.

Debit/Credit Accounts Written-Off

  1. NMF accounts are systemically written off each week:

    1. Small Credits (less than $1.00) - posts with TC 607.

    2. Small debits (less than $5.00) - posts with TC 606.

    3. Expired Collection Statute accounts except Statuses 71 and 89 are systemically written-off to the 6600 account.

  2. Form 3177, Notice of Action for Entry on Master File, is used to write-off an NMF account to the 1830 Account.

  3. Form 53, Report of Currently Not Collectible Taxes, is received from the Compliance to write-off an account into the 1830 account. Form 53 should be numbered with a doc. code 77 and a Form 813 prepared. Review the following information prior to numbering:

    1. TIN

    2. Period ending

    3. MFT

    4. Taxpayer name

    5. Required Signature(s)

    Note:

    Research NMF to validate a–d above and to ensure that the account has not already been 53'd. If the account is in status 53, reject Form 53 to the originator. If signature of originator and/or signature of manager is missing reject to the originator or Area Office.

  4. Form 5147, will be received from RACS with a Form 4861, NMF Block Summary. Input a TC 530 with a zero money amount to the NMF account through the Subsequent Transaction screen.

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Collection Statute Expired Processing

  1. ANMF systemically writes-off accounts on a weekly basis where the Collection Statute has expired 60-days or more.

    Exception:

    Child Support Accounts, MFT 59, bypass the 60-day criteria.

    1. The systemic write-off DLN is numbered with a 77 doc. code and blocking series 555.

    2. A recap is created for each block of 50 DLNs weekly for the transactions being written off. The recap is entitled "NMF Non-SCCF Recap." Print the recap on 3 part paper. Maintain part 1 in NMF and distribute parts 2 and 3 to RACS for journaling. RACS will Debit 6600 and Credit 1322, 1324, or 1830.

      Note:

      The ARECAP is used for batch journalization in lieu of the NMF Non-SCCF Recap. See IRM 3.17.46.2.1.

    3. A listing of NMF accounts (including TIN, tax period, and CSED) that were systemically written off will be created weekly by the DBA for print as an official file copy. This replaces the CSED listings for Status 22 and 53.

    4. ANMF will permit manual input of TC 606 and TC 608 as well as the reversals TC 607 and TC 609 when absolutely necessary. This should not be used to bypass the systemic process.

      Note:

      Whenever there is a "previously" posted TC 606/607 or a TC 608/609 the ANMF system WILL-NOT systemically post another. If the account needs to be re-written off then it must be done manually.

  2. Use the following procedures in the event a manual TC 607 or TC 609 is required:

    1. Request NMF transcript and code transcript with TC 607 or TC 609 next to account balance.

    2. Forward the transcript to the numbering function in Accounting for assignment of a doc. code 77 DLN and preparation of Form 813.

    3. Forward the transcript with Form 813 to RACS for input through the Form 813 Block Control screen.

    4. RACS will forward the NMF transcript and Form 813 to NMF for input of the TC 607 or TC 609 to the NMF account through the Subsequent Transaction screen.

      Note:

      Manual input of TC 607 and TC 609 must be accomplished on a Monday date and subsequent posting(s) to the account must be completed by Wednesday of the same week. This will provide ample time for posting to the account before systemic write-off.

  3. Use the following procedures in the event a manual TC 606 or TC 608 is required:

    1. Request NMF transcript and code transcript with TC 606 or TC 608 next to account balance.

    2. Forward the transcript to the numbering function in Accounting for assignment of a doc. code 77 DLN and preparation of Form 813.

    3. Forward the transcript with Form 813 to RACS for input through the Form 813 Block Control screen.

    4. RACS will forward the NMF transcript and Form 813 to NMF for input of the TC 606 or TC 608 to the NMF account through the Subsequent Transaction screen.

  4. Use the following procedures in the event a TC 604 or TC 605 is required:

    1. Request NMF transcript and code transcript with the TC 604 or TC 605, and the amount.

      Note:

      A TC 604 is an assessed debit cleared therefore it doesn't always write-off the entire balance due on an account.

    2. Forward the transcript to the numbering function in Accounting for assignment of a doc. code 77 DLN and preparation of the Form 813.

    3. Forward the transcript with the Form 813 to RACS for input through the Form 813 Block Control screen.

    4. RACS will forward the NMF transcript and Form 813 to NMF for input of the TC 604 or TC 605 to the NMF account through the Subsequent Transaction screen.

Zero Balance NMF Accounts

  1. Any NMF account which has had a zero balance for 30-days or more and no further penalty or interest accruals are due will be systemically purged to the Closed Files of the database. An NMF Accounts Purged to Closed list will be generated each month and printed by the DBA. This listing contains abbreviated information on those accounts which have been systemically purged. A copy of the Purge to Close listing will be given to the Collection function for the input of a TC 131.

  2. Review "zero" balance accounts for an unreversed TC 582. See IRM 5.12.3.3.1(5) regarding the necessity of a manual lien release. Employees of functions with access to the Automated Lien System (ALS) will input lien release requests in these situations. For those functions that do not have access to ALS, determine the Centralized Lien Unit (CLU) lien release contact on the IRS Intranet by going to:

    • IRS Homepage, then click on

    • SERP, then click on

    • Who/Where, then click on

    • Centralized Lien Processing

    An internal use only telephone number is also provided along with the contact information provided on the CLU Website. Ensure all email communications regarding liens are via secure email.

The Automated Non-Master File

  1. The ANMF System replaced the manual NMF accounting process, i.e., posting to ULCs. Index Card Generation also resides on the ANMF System.

  2. All users should be familiar with ORACLE SQL Perform Commands.

  3. All work will be received in blocks. Each block will have an associated Form 813, Document Register, which must be entered into the ANMF system by RACS personnel. However, Form 813 prepared for No-Remit NMF Extensions of Time to File, entity changes and new accounts transferred-in are not entered through the Form 813 Block Control screen.

  4. Form 813 must be established on ANMF. For integrity purposes, Form 813 cannot be input to the system by the same Function entering the transactions.

  5. The ANMF System will not accept an account which duplicates an existing Primary Key (TIN, MFT and period ending). If this occurs, a "Dummy" tax period ending must be used when establishing the account.

  6. All assessments will require an Abstract Number for establishment.

  7. The system has one MAIN menu. Each user of the system will have a unique profile which displays only those options for which that individual has authority to access.

  8. Under the ANMF System, assessments will be either pre-journalized or post-journalized based on the 23C date.

    1. Assessments made to protect the assessment from being barred by the statute of limitations or to expedite the collection process will be pre-journalized as daily assessments.

    2. Assessments where the statute of limitations is not imminent or no specific immediate assessment date is requested or required will be post-journalized as weekly assessments.

Entering and Exiting the System

  1. Entering the system is accomplished by typing a user name (login) and password in the Logon box. Submit requests for a login and password via OL5081. Both will be issued to the individual by the Systems Administrator after security clearance.

    1. Type a pre-determined login in the "Username" field. Use the mouse to move the cursor to the next field.

    2. Type a password in the "Password" field.

    3. Type ANMF in the "Database" Field. Click the "Connect" button to access the ANMF application.

    4. Entry of your login and password will prompt the NMF USER MENU screen.

  2. To exit the screen click the "EXIT" button. This will return you to the previous menu. Then click the "EXIT MENU" button which will return to the NMF USER MENU. Upon clicking the "EXIT" button, the following message will appear:
    Are you sure you want to exit?
    Click the YES or NO button
    Upon clicking the YES button, a message will display stating that "You have successfully logged out of the system. Remember to close your browser window" .
    Click OK and then the X in the upper right hand corner to exit the Intranet.

NMF Account Transcript Requests

  1. A "taxpayer friendly" transcript can be requested via ANMF in place of the hand written Record of Account and sent to the taxpayer. The original transcript can still be requested for internal use only. A transcript reflects an assessment and any subsequent transactions to that assessment and may not represent the entire liability for a particular tax period. An official NMF transcript, either the internal use only (figure 3.17.46-21) or the "taxpayer friendly" transcript should not be confused with a Certified Transcript.

  2. A Form 4340 (NMF), Certificate of Assessment, Payments, and Other Specified Matters, "Certified Transcript" can be requested via ANMF in place of the Form 4340 that was generated from the CERTS application. The Form 4340 (NMF) reflects an assessment and any subsequent transactions to the assessment and may not represent the entire liability for a particular tax period. The ANMF system should be researched for all accounts that pertain to the requested tax period.

  3. Provide NMF Account Transcripts of all open NMF accounts, not just the TDA in question, when a transcript request is received that is tax period specific.

  4. Select the RESEARCH NMF option from the main menu and then click the REQUEST NMF TRANSCRIPT button.

    Figure 3.17.46-21

    This is an Image: 33900042.gif
     

    Please click here for the text description of the image.

  5. The NMF TRANSCRIPT REQUEST - ENTRY SCREEN will appear. Upon initial selection, the screen will default to the ADD mode. If you know the "primary key" (TIN, MFT, and Period Ending) you can request transcripts without first researching for the account, otherwise follow the instructions in IRM 3.17.46.13.3, NMF Research on the ANMF System. Transcripts will be generated the day following input of your request and will be forwarded by NMF based on employee number.

    1. The TRANSCRIPT REQUEST screen may also be accessed from the RESEARCH NMF DATABASE screen with the same command.

    2. Use the TAB key or mouse to enter the required information in each field.

      Note:

      Enter a "U" for a User Friendly transcript or a C for a Form 4340 (NMF), Certified transcript in the Transcript Type field to request a User Friendly transcript or Certified transcript. Leave the Transcript Type field blank for a normal transcript.

    3. Click the SAVE button on the Toolbar at the top of the screen to submit your request(s).

    4. Click the ADD button to enter additional requests. All fields are required.

    5. If the "primary key" entered does not match a primary key of an account on either the open or closed files of the database, you will receive the message "Account not on database—correct invalid entry" .

    6. When all requests are entered, click the EXIT button to exit the screen and return to the previous menu.

  6. All requested NMF Transcripts will include the related History file for that account. These history items will be printed at the end of each transcript.

NMF Research on the ANMF System

  1. The Research screens enable you to view a case file for an account. Researching the NMF database can be performed on any field on the screen. However, the TIN, MFT and Name Control fields are "indexed" and will provide the fastest response. Research can also be performed on specific transactions and entity changes. Select the RESEARCH NMF option from the main menu.

    1. Upon clicking the RESEARCH OPEN NMF ACCOUNT button, the NMF ENTITY FILE-RESEARCH SCREEN will appear and default to the ADD mode.

    2. Click the ENTER QUERY button. The cursor will move to the TIN field. After the TIN, use the TAB key or mouse to enter other specific information such as MFT, Period Ending, etc., click the EXECUTE QUERY button to commit the request.

    3. To view the NOTICE STATUS, TRANSACTIONS, HISTORY SECTION, etc., click the appropriate TEAL colored Tab at the top of the screen. The GRAY colored Tab displays the current screen.

    4. If the record has more than one transaction, click the "NEXT" or "PREVIOUS" button on the Toolbar to view the related transactions.

    5. When your research is completed, click the EXIT button to return to the previous menu.

  2. Researching closed accounts can be performed on any field on the screen. However, the TIN, MFT and Name Control fields will provide the fastest response.

    1. Click the RESEARCH CLOSED NMF ACCOUNT button, the NMF CLOSED ENTITY FILE RESEARCH SCREEN will appear and default to the ADD mode.

    2. Click the ENTER QUERY button. The cursor will move to the TIN field. After the TIN and/or other specific information such as MFT, Period Ending, etc., is entered, click the EXECUTE QUERY button to commit the request.

    3. To view the NOTICE STATUS, TRANSACTIONS, HISTORY SECTION, etc., click the appropriate TEAL colored Tab at the top of the screen. The GRAY colored Tab displays the current screen.

    4. If the record has more than one transaction, click the "NEXT" or "PREVIOUS" button on the Toolbar to view the related transactions.

    5. When your research is completed, click the EXIT button to return to the previous menu.

  3. HISTORY—can be queried in either the OPEN or CLOSED ENTITY FILES by using the procedures in (1) and (2) above. Click the TEAL colored HISTORY Tab to bring up any associated HISTORY for the account which will default to the ADD mode which will automatically populate the TIN, MFT, PERIOD ENDING and DATE OF ENTRY fields. Required fields are as follows:

    • History—comments about the action being taken on the account.

    • IDRS Number—employee number.

    • Click the SAVE button to commit the entry.

    • To ADD additional information you must click the ADD button and then the SAVE button.

NMF Block Control/Correction

  1. The Block Control is the input of Form 813 by the RACS function into the ANMF system. It contains the item count of documents in a block of work and the debit and credit amount for that block. All work entered into the ANMF system must have a Form 813 prepared and this information must be input through the Form 813 Block Control screen.

    Exception:

    No-Remit, NMF Extensions of Time to File, Revenue Procedures (Rev. Proc.), closing agreements, ADJs, accounts transfer-in and entity changes will not be entered through the Form 813 Block Control screen.

  2. Select the NMF BLOCK CONTROL/CORRECTION option from the Journal Main menu. The FORM 813 BLOCK CONTROL SCREEN will appear and default to the ADD mode.

    1. All fields are required and must be entered twice identically for verification. The Input Date field is generated. Input the Form 813 date or the 23C date, if different, as the Transaction Date.

    2. Click the SAVE button to commit the entry.

    3. Click the ADD button to enter additional information and then click the SAVE button upon completion of each block entered.

    4. When all blocks of work are entered, click the EXIT button to return to the previous menu.

  3. Research on the Form 813 Block Control screen is accomplished using the DLN.

    1. Click the ENTER QUERY button. The cursor will move to the first field in the screen, the Input Date. If this is not the field that you wish to research, press the TAB key or use the mouse until the cursor is in the field that you want to search.

    2. After the research information is entered, click the EXECUTE QUERY button. If a record(s) is found it will appear on your screen.

  4. This research may be needed to correct Form 813 Block Control by using the EDIT feature on the Menu Bar (very top of the screen); clicking the ADD or REMOVE button on Toolbar. After NMF has analyzed a Block out of Balance (BOB) Summary, the Error Register and the Unprocessed Block lists and determined that the cause is an error on the Form 813 Block Control, NMF will annotate the corrective actions needed then forward the various lists with the related Form 813 and documents to RACS for correction of the Form 813 Block Control File.

    1. Once the incorrect record is found, click the EDIT button and select the EDIT feature to update the record. The cursor will move to the first field in the screen.

    2. If this is not the field to be corrected, press the TAB key or use the mouse until the cursor is in the field you want to correct.

    3. The field information must be entered twice when updating.

    4. After entering the correct information, click the SAVE button to commit the entry to the database. A message will appear at the bottom of the screen that "This Record has been changed. "

    5. Steps (3) and (4) above should be repeated until all bob'd blocks are corrected.

  5. The Toolbar Command buttons ADD and REMOVE are used when making corrections to the Form 813 Block Control File.

    1. Corrections identified from the BOB Summary will use the UPDATE command "U" .

    2. Corrections identified from the Error Register will use either the UPDATE command "U" or the ADD command "A" .

    3. Corrections identified from the Unprocessed Block List will use the REMOVE command "R" .

BOB/Error Correction

  1. Each night, transactions input as weekly assessments and subsequent transactions are systemically balanced to the Form 813, Block Control File, by DLN, debit and credit amount and item count. The DBA will run the programs to balance all daily assessments to the Form 813, Block Control File. The NMF Error Register Listing is generated when the DLN of the input transaction does not match the DLN on the Block Control File. The BOB Summary is generated when the input transactions and Block Control File match on DLN but the item count or debit and credit amounts do not match.

  2. Separate Error Register and BOB Summary listings are generated from the Block Balance program for daily and weekly assessments. The subsequent transactions are included with the weekly assessments. Associate all listings by type, daily or weekly, and resolve each listing the day received. However, priority is given to the daily assessment transactions to ensure all items are corrected and processed by the DBA the same day to ensure timely notice issuance.

    1. Pull the Form 813 and related documents appearing on both the BOB Summary and Error Register.

    2. Analyze the documents, Form 813, BOB Summary and Error Register to determine the cause of the discrepancy.

  3. The most common causes for inclusion on the generated BOB Summary are:

    1. An error has been made during input of the debit and credit amount or item count from the Form 813.

    2. An error has been made during input of the transaction amounts or transaction codes.

    3. Duplicate transactions were input.

    4. One or more transactions were omitted during input of the block.

  4. The most common causes for inclusion on the generated Error Register are:

    1. The Form 813 information has not been input to the Form 813 Block Control screen or the DLN was input incorrectly.

    2. An error has been made during input of the DLN on one or more transactions.

  5. If the error was made during input of the Form 813 to the Block Control Screen it must be returned to RACS for correction.

  6. When making corrections, remember that all corrective actions must be annotated on the BOB Summary and the Error Register. NMF will select the option for BOB CORRECTION—DAILY or BOB CORRECTION—WEEKLY from the NMF PROCESSING menu as appropriate. The FORM 813 ENTRY screen will appear for daily corrections and the FORM 813 BLOCK CONTROL screen will appear for weekly corrections based on the option you choose. Instructions at the bottom of each of these screens will guide you to the linked BOB Transaction or Error'd Transaction screens.

  7. If the BOB or error is associated with the Form 813 Block Control, QUERY the Block Control File to verify the discrepancy. Only the Journal function can ADD, EDIT or REMOVE records from the Form 813 Block Control File. Forward the block to the RACS function to ADD the missing Block Control or EDIT the item count, debit and credit amount or DLN fields.

  8. If the BOB is associated with the transaction code, transaction amount or duplicate transactions, only the NMF function may ADD, UPDATE or REMOVE records from this file. Take the following steps:

    1. Click the ENTER QUERY button to QUERY the BOB'd Transactions screen by DLN to find the entire block or by TIN for a specific transaction.

    2. Click the EXECUTE QUERY button to commit the request.

    3. Use the EDIT feature on the Menu Bar to correct the transaction code and/or amount.

    4. If the transaction is a duplicate (document input twice), click the REMOVE button to delete the duplicate transaction.

  9. If the transaction was omitted, QUERY the Error'd Transactions screen by TIN to verify that the transaction was indeed omitted and/or input with an incorrect DLN.

    1. If no record is found, move to the BOB Transaction screen and then click the ADD button on the Toolbar to ADD the transaction to the BOB Transaction Table.

    2. If the transaction is found but the DLN is incorrect, stay on the Error'd Transaction screen and use the EDIT feature to correct the DLN.

  10. If the transaction DLN is in error, QUERY the Error'd Transactions screen by the TIN or DLN from the Error Register. Use the EDIT feature to correct the DLN.

Loading the Unit Ledger Card

  1. After a successful login, the MAIN ANMF menu will appear. Select the NMF PROCESSING menu option from the MAIN menu, and then select the Load Old ACCTS/TRANSFER-IN option. This will display the LOAD ULC ENTITY SECTION screen. The GRAY colored Tab displays the current screen. This option is used to establish transfer-in accounts or reopen closed Unit Ledger Cards.

  2. Upon initial selection of a menu option, the screen defaults to the ADD mode. The cursor will be positioned at the first field on the screen; the NOTICE type. See Exhibit 3.17.46-2 for field entries.

  3. As each field is filled the cursor will be positioned automatically at the next field. Use the TAB key or mouse to move the cursor to the next field if a field is not completely filled or to bypass optional fields. There may be a slight hesitation while the system verifies entries such as the State, MFT, Abstract Number, etc.—DO NOT PRESS "RETURN" .

  4. Many fields require that information be entered. The Field List in Exhibit 3.17.46–2 indicates which fields are required, which are optional or which are system generated; and the acceptable values for each.

    Note:

    Effective January 1, 2008, the Payment Trace ID Number is a required field for key entry after the Transaction Code field. See IRM 3.17.46.8.3.1 for the appropriate transactions codes.

  5. Although the NMF Assessment Document Form Number field of the entity is system generated based on MFT, it may be necessary to overlay this field if the MFT carries multiple document form numbers. Refer to Exhibit 3.17.46-5 for the MFT codes and form numbers.

  6. Prompts are displayed at the bottom of the screen to help you determine the correct entry for each field.

  7. Alpha-characters will be automatically entered in upper case.

  8. Dates have 8-characters in MMDDYYYY format; the slashes are generated automatically when you use the TAB key or mouse.

  9. Cross-Reference information must be entered to provide audit trails. The Cross Reference field consists of four lines each having 25-characters. Include items such as:

    • Original DLN on Transfer-in Unit Ledger Card (pink 514-B)

    • Transferee/Transferor

    • Petitioning/Non-Petitioning Spouse

    • CSO Control Number

    • Corporate Officers names and Corporation name and EIN for Trust Fund Recovery Penalty accounts

  10. Click the SAVE button after you have finished entering the entity information to commit to the database. If all required data is present you will receive the message "Record Added." Otherwise, the cursor will be positioned at the field which requires an entry and a prompt will appear at the bottom of the screen display to help you determine the correct entry for the field. If you discover an error prior to adding the record, you may abort the ADD command by clicking the REMOVE button on the Toolbar. Nothing will be added. Then click either the ADD button to ADD the record or EXIT button to EXIT the screen and return to the previous menu.

  11. After the entity information has been added to the record, click the LOAD TRANS TEAL colored TAB to enter the transaction information in the LOAD ULC–TRANSACTIONS SECTION screen.

  12. The entity information, i.e., SSN or EIN, MFT, Period Ending and DLN is the link between the Entity File and the Transaction Section and will be displayed from the entity just added. Verify that this information is correct before continuing.

  13. Click the ADD button to ADD the transaction information. The cursor will be positioned at the TRANSACTION DATE field.

  14. Money amounts are entered with the decimal point but NO commas.

  15. Errors on the Unit Ledger Card should not be entered. Any posting that reflects "ER" , "ERR" , "ERROR" or any other bookkeeping symbol (machine or pen and ink) that indicates a clerical error reversal should not be entered.

  16. When entering transaction dates for reversals or abatements, use the date of the transaction code being reversed or abated if the schedule date is not present.

  17. All transactions with zero amounts (account status changes, i.e., 470, 530; entity changes) not posted but annotated on the Unit Ledger Card must be entered on the NMF database as separate transactions.

    1. If entering a TC 470 or TC 520, the closing code must also be entered.

    2. If entering a TC 550, the extended COLSED date must also be input.

    3. If entering a TC 30X for any amount, the Disposal Code must also be input. If the field requires three-digits for entry, precede the Disposal Code with a "zero" .

  18. After the transaction amount is entered, click the SAVE button to commit to the database and add the record. You will receive the message, "Transaction Complete. 1 Record applied and saved" . If the transaction code is for information only (does not normally carry money), the system will automatically input a zero into the Money Amount field, click the SAVE button and the "Transaction Complete. 1 Record applied and saved" message will be displayed.

  19. If there is more than one transaction per Unit Ledger Card, clicking the ADD button will clear the previously ADDED transaction from the screen allowing for input of the next transaction.

  20. When all transactions for the Unit Ledger Card have been entered verify the Cumulative Balance with the Unit Ledger Card Balance. If the balance is correct, you will receive the message "You are Balanced" . If the balance is not correct, click the "NEXT" and "PREVIOUS" buttons to find the incorrect transaction. Once the incorrect transaction is found, click the "EDIT" button on the Menu Bar and select the EDIT feature to input the necessary corrections. Be sure to click the SAVE button to commit the data.

  21. Input the next Unit Ledger Card by clicking the "LOAD ENTITY" TAB for the Entity screen. When you click "ADD" button to input the next ULC, the screen will clear except for the DLN and Primary Key fields which should be overlaid.

  22. When all documents have been added, click the "EXIT" button to return to the previous menu.

  23. If you inadvertently exit the system while in the middle of entering data from a Unit Ledger Card, you must re-enter the Cum Bal field (ending balance on the Unit Ledger Card) in the entity section. This field is not retained once you exit the system.

  24. During the load, the system will check the following reversing transaction codes for their match. If no match is found on transaction code, these transactions will still post to the database and appear on the Accounts With Reversal Code Problems List. The system will not compute interest or penalty accruals on notices if the account has a reversal code problem that has not been corrected.

    Posted TC Reversal TC
    TC 160 TC 161
    TC 170 TC 171
    TC 180 TC 181
    TC 200 TC 201
    TC 234 TC 235
    TC 240 TC 241
    TC 270 TC 271
    TC 280 TC 281
    TC 310 TC 311
    TC 320 TC 321
    TC 340 TC 341
    TC 350 TC 351
    TC 360 TC 361
    TC 150, 290, 300 TC 291 or 301
    TC 604 TC 605
    TC 608 TC 609
    TC 610 TC 611 or 612
    TC 640 TC 641 or 642
    TC 650 TC 651 or 652
    TC 430 TC 661 or 662
    TC 670 TC 671 or 672
    TC 680 TC 681 or 682
    TC 690 TC 691 or 692
    TC 694 TC 695
    TC 700 TC 702
    TC 710, TC 716 TC 712
    TC 730 TC 731 or 732
    TC 740 TC 742
    TC 760 TC 762
    TC 764 TC 765
    TC 766 TC 767
    TC 770 TC 771 or 772
    TC 800 TC 802
    TC 840 TC 740, 841 or 842
    TC 830 TC 832
    TC 820 TC 822
    TC 850 TC 851 or 852
    TC 860 TC 862
  25. During the load, the system will check the following reversal transaction codes for their match on transaction code and transaction date. If the transaction date of the reversal TC does not match the transaction date of the TC being reversed, the transaction will still post to the database and appear on the Accounts With Reversal Code Problems List. The system will not compute interest or penalty accruals on any notice when the account contains a reversal code problem that has not been corrected.

    Reversal TC Posted TC
    TC 605 TC 604
    TC 609 TC 608
    TC 611 or TC 612 TC 610
    TC 641 or TC 642 TC 640
    TC 651 or TC 652 TC 650
    TC 661 or TC 662 TC 430
    TC 671 or TC 672 TC 670
    TC 681 or TC 682 TC 680
    TC 691 or TC 692 TC 690
    TC 695 TC 694
    TC 702 TC 700
    TC 712 TC 710 or 716
    TC 731 or TC 732 TC 730
    TC 742 TC 740
    TC 762 TC 760
    TC 771 or TC 772 TC 770
    TC 841 or TC 842 TC 840
    TC 822 TC 820
    TC 832 TC 830
    TC 851 or TC 852 TC 850
  26. During the load the system will check the following transaction codes for their match on transaction code, transaction date and the transaction amount. If the transaction amount is greater than the transaction amount of the TC being reversed, the transaction will still post to the database and appear on the Accounts With Reversal Code Problems List. The system will not compute interest or penalty accruals on notices when the account contains a reversal code problem that has not been corrected.
    TC 862—Reversal of an erroneous abatement reversed, or
    TC 740—Undelivered refund check redeposited.

Original Entry

  1. After a successful login, the NMF MAIN menu will appear. Select the NMF PROCESSING menu option and then select the ORIGINAL ASSESSMENT DAILY or the ORIGINAL ASSESSMENT WEEKLY option, as appropriate. This will display the DAILY ASSESSMENT—ENTITY INPUT (NEW) SCREEN or the WEEKLY ASSESSMENT—ENTITY FILE INPUT SCREEN.

  2. Choosing the option for ORIGINAL ASSESSMENT—DAILY or ORIGINAL ASSESSMENT—WEEKLY will be based on the 23C date. For example; all Telephonic Assessments, Termination Assessments, etc., will be input using the ORIGINAL ASSESSMENT—DAILY screen. The ORIGINAL ASSESSMENT—WEEKLY screens and the ORIGINAL ASSESSMENT—DAILY screens will appear depending on the option you choose.

  3. The cursor will be positioned at the first field on the screen. Enter the entity information from the assessment document in the appropriate fields.

  4. As each field is filled the cursor will be positioned automatically at the next field. You must use the TAB key or mouse to move the cursor to the next field if a field is not completely filled or to bypass optional fields. There may be a slight hesitation while the system verifies entries such as the State, MFT, Abstract Number, etc., DO NOT PRESS "RETURN" .

  5. Many fields require information be entered. The Field List in Exhibit 3.17.46–3 indicates which fields are required, which are optional or which are system generated; and the valid entries for each. Although the operator has the capability of overlaying the majority of the system generated fields, overlaying the NMF Account Number field is not possible on either the daily or weekly entity screens and overlaying the 23C date field is not possible on the weekly entity screen.

  6. Although the NMF Assessment Document Form Number field of the entity is system generated based on MFT, it will be necessary to input the Form number into this field if the MFT carries multiple document form numbers. Refer to Exhibit 3.17.46-5 for the MFT codes which have multiple form numbers.

  7. Alpha-characters are automatically entered in upper case.

  8. Dates are 8-characters in MMDDYYYY format; the slashes are generated automatically when you press the TAB key or mouse.

  9. Cross-Reference information must be entered to provide audit trails. Include items such as:

    • Transferee/Transferor

    • Petitioning/Non-Petitioning Spouse

    • CSO Control Number

    • EP Plan Numbers

    • Trust Fund Recovery Penalty Corporation name, EIN and corporate officer names

    • "SRC" with three-digit code for secured returns

  10. If a Power of Attorney (POA) or information Authorization is attached to the return or source document, do one or more of the following:

    1. Verify the POA on the Centralized Authorization File (CAF). If the taxpayer's or representative's address on the POA is different from what appears on the CAF, send a copy of the POA on a Form 1725 noted "Change address on CAF per attached copy" and forward it to the CAF unit for update.

    2. Review the POA to determine if the authorization is for a specific type of tax, such as Trust Fund Recovery penalty. If so, retain the authorization with the case file.

    3. If the POA is general and does not specify any particular type of tax, send a copy of the POA on a Form 1725 noted "Attached POA needs to be established on CAF" and forward it to the CAF unit.

    4. In all three cases above input a "Y" to the Power of Attorney field of the entity upon establishment.

  11. Click the SAVE button all the entity information to commit to the database. If all required data is present you will receive the message "Transaction Complete. 1 Record applied and saved" .

  12. After all entity information is added to the record, click the "DAILY TRANS or WEEKLY TRANSACTION" Tab to change to the TRANSACTION screen.

  13. The entity information, i.e., SSN or EIN, MFT, Period Ending and DLN is the link between the Entity File and the Transaction Section and will be displayed from the assessment document just added.

  14. The cursor will be positioned at the TRANSACTION DATE field. Enter the transaction information from the assessment document.

    1. If entering a TC 300, the Disposal Code must also be input. If the field requires three-digits for entry, precede the Disposal Code with a "zero" .

  15. Money amounts are entered with the decimal point but no commas.

  16. After the transaction amount is entered, click the SAVE button and the record will be added systemically. You will receive the message "Transaction Complete. 1 Record applied and saved" at the bottom of the screen.

  17. If there is more than one transaction per document, clicking the "ADD" button will clear the previously ADDED transaction from the screen allowing for input of the next transaction. The same entity information will appear as on the previous transaction screen. Be sure to click the SAVE button to commit the data.

  18. Click the DAILY ENTITY or WEEKLY ENTITY. Tab to return to the ENTITY INPUT screen which will enable you to enter the information from the next document. When you click the "ADD" button to ADD the next document, the screen will clear except for the block DLN, MFT, period ending and TIN. Overlay ALL four fields.

  19. To continue entering another block of documents, repeat steps in IRM 3.17.46.13.7 above.

  20. After all documents have been entered from a block click the EXIT button to return to the previous menu.

LINKED ACCOUNTS

  1. When more than one taxpayer is assessed for the same issue it is considered a duplicate assessment. In order to accurately identify and classify the Accounts Receivable for the year ending financial statements the related accounts must be linked.

  2. When a primary account is entered the same TIN, MFT and Tax Period will be entered in both the Linked and Primary Key. DO NOT LINK THE PRIMARY TO THE SECONDARY.

  3. After the assessment(s) has been entered to the ANMF database, return to the main menu and select LINKED ACCOUNTS. This will access the LINKED ACCOUNT INPUT screen with the following fields:

    1. Linked Account Key—enter TIN, MFT, Tax Period of the linked account.

    2. Linked Account Primary Key—enter TIN, MFT, Tax Period of the primary linked account.

    3. Linked TC—enter 971.

    4. Linked Account Type—enter appropriate alpha-character indicated below:

    LINKED ACCOUNT TYPE
    "F" Trust Fund Recovery Penalty
    "L" IRC 4103, Personal Liability for Excise Tax
    "T" Transferor/Transferee
  4. The following is an example of the Linked Account input as it would be entered to the LINKED ACCOUNT INPUT SCREEN:

    TRANSFEROR
    Linked Account Key [111–11–11112012/31/94]
    Linked Account Primary Key [111–11–11112012/31/94]
    Linked TC [971]
    Linked Account Type [F]
    TRANSFEREE
    Linked Account Key [222–22–22222012/31/94]
    Linked Account Primary Key [111–11–11112012/31/94]
    Linked TC [971]
    Linked Account Type [F]

Data Entry/Key Verification

  1. The entity portion of all original assessments and "LOADED" Unit Ledger Cards must be key verified (KV). If the entity is not KV'd, the account will not post to the database and will be listed on the Unverified Entity list.

  2. Select the KEY VERIFY–DAILY or the KEY VERIFY–WEEKLY option from the NMF PROCESSING menu. The ENTITY FILE–KEY VERIFICATION screen for "DAILY" or "WEEKLY and LOAD" will appear. When key verifying the loaded ULCs, you will select the KEY VERIFY–WEEKLY option from the NMF PROCESSING menu and click the "LOAD TRANS" Tab.

  3. Click the "VER ENTY" Tab and then the "ADD" button to ADD the entity data from the original assessment document or the ULC. Refer to the Field List Exhibit 3.17.46-2 and Exhibit 3.17.46-3.

  4. The KEY VERIFY–WEEKLY option is used to KV both "weekly" assessments and "loaded" accounts. If key verifying a "loaded" account, no entry is required in the Assessment Type field of the KV screen; however, the NMF notice statuses must be KV'd for "loaded" accounts.

  5. After all entity data is entered, click the SAVE button to commit the data. If the Original Entry (OE) and the Key Verification (KV) records match, the record will be added to the working entity file and the message "Transaction Complete. 1 Records applied and saved" will be displayed.

Data Corrections/Key Verification

  1. If all fields in the KV and the OE records do not match upon clicking the SAVE button to ADD the KV record, the cursor will be positioned at the field in error or a message will appear at the bottom of the screen describing the error.

  2. First analyze the document just entered to determine if the error is in any field just input to the KV screen.

  3. If the KV record is in error, enter the correct data in the field where the cursor is positioned and click the SAVE button. Repeat this process until all fields are corrected, then the record(s) will be added.

  4. If the KV record is correct based on the document, the OE record must be in error. Delete the KV record by clicking the REMOVE button to enable research and correction of the OE record. There are two methods of correction based on the OE fields in error.

  5. If the OE error is in one of the Primary Key fields or DLN field, remain in the KV option. If the OE error is in one of the Primary Key fields or DLN field, the related transactions MUST be EDITed (corrected) prior to correcting the OE entity. Correct the OE record as follows:

    1. If the message "No Matching Entity" is received when attempting to ADD the KV record, there is a mismatch on one of the Primary Key fields. Use the DLN as your search criteria for QUERY.

    2. If the cursor is positioned at the DLN field when attempting to ADD the KV record, there is a mismatch on the DLN. Use all three Primary Key fields as your search criteria for QUERY.

    3. Delete the KV record and click the WEEKLY TRANS Tab to correct "Weekly" transactions and the LOAD TRANS Tab to correct "Load" transactions. This will prompt the appropriate transaction screens for Primary Key and DLN corrections only.

    4. Then click the ENTER QUERY button to QUERY on the appropriate field(s) as stated in (a) and (b) above depending on the error. Click the EXECUTE QUERY to submit the request.

    5. Once the OE transaction record(s) appear, click the EDIT option on the Menu Bar and select the EDIT feature to make the necessary correction(s). After the corrections have been made, click the SAVE button to commit to the database. Wait to see the message "Transaction complete. 1 record(s) applied and saved" before attempting any other command.

    6. If the document carries multiple transactions, click the NEXT button to correct the next related transaction. Repeat this process until ALL the related transactions have been corrected.

    7. Once all the related transactions have been corrected, click the WEEKLY ENTITY Tab to correct the OE Entity.

    8. Click the ENTER QUERY button to QUERY using the same exact search criteria as used when in the transaction screen and click the EXECUTE QUERY to submit the request. Once the appropriate entity record has been found, click the EDIT option on the Menu Bar and select the EDIT feature to make the necessary correction(s) to the entity; then click the SAVE button to commit to the database.

    9. After correcting the OE record, click the VER ENTY Tab to return to the Key Verification screen and click the ADD button to ADD the previously deleted KV record.

    10. Only the Primary Key and DLN fields can be corrected through these screens within the KV option.

    11. If the KV process is not done until the day after the OE record has been ADDed, you must click the PENDING TRANS Tab to prompt the OE Pending Transaction Primary Key Correction screen to make the necessary corrections to the transactions. This command is used in this situation because the transactions are systemically moved from the "working file" to the "pending file" during nightly processing.

  6. If the OE error is in ANY FIELD OTHER THAN the Primary Key or DLN fields, ONLY the Entity will require correction. Correct the OE error as follows:

    1. Click the REMOVE button to delete the KV record.

    2. Click the EXIT button to EXIT to the NMF Processing menu.

    3. Select the option Load Old Accts/Transfer-In, Original Assessment—Weekly or Original Assessment—Daily as appropriate,

    4. Once at the entity screen, click the ENTER QUERY button to QUERY for the OE record in error. Click the EXECUTE QUERY to submit the request.

    5. Once the OE record is found, click the EDIT option on the Menu Bar and select the EDIT feature to correct the field(s) in error.

    6. After all fields in error have been corrected, click the SAVE button to commit to the database. Wait to see the message "Transaction complete. 1 record(s) applied and saved" before attempting any other command.

    7. Once the OE record has been corrected, click the EXIT button to EXIT to the NMF Processing menu and choose the KV option.

    8. Once back at the KV screen, click the ADD button to re-ADD the previously deleted KV record.

Unpostable Corrections

  1. Subsequent transactions and transactions input with Original Assessments and Loaded Unit Ledger Cards are posted to the taxpayer's entity. Certain conditions will cause a transaction to unpost. These unpostable transactions are shown on the NMF Unpostable Transaction List. Each item on the unpostable list will have a corresponding unpostable code (UPC) and number of days aged. The aging factor will reflect how many days that item has been in that particular unpostable condition. If the item is corrected for that UPC but appears on the list with a different unpostable code, the aging factor will begin again. There are three unpostable lists that may be generated and will be used to research and correct the unpostable transactions for loaded, daily and weekly transactions, respectively:

    1. NMF Unpostable Transaction List—Loaded Transactions

    2. NMF Unpostable Transaction List—Daily

    3. NMF Unpostable Transaction List

  2. When correcting unpostable transactions, select the appropriate option from the NMF processing menu as follows:

    1. Weekly and subsequent transactions—Choose the option UNPOSTABLE Correction—WEEKLY.

    2. Daily transactions—Choose the option UNPOSTABLE Correction—DAILY.

  3. Some items on the Unpostable Transaction List will have a corresponding UPC transcript generated as an aide in analyzing what corrective actions to take. The Unpostable Code (UPC) number will be located in the employee number field of the transcript. When resolving unpostable conditions, annotate each resolution action on the NMF Unpostable Transaction List.

  4. Unpostable Code 000: When the Primary Key of the transaction does not systemically find the Primary Key of the entity record on the Open Entity File a transcript will be generated. Analyze the UPC Transcript, the Unpostable Transaction List and the source documents to determine the cause of the unpostable condition. Two kinds of UPC 000 transcripts will be generated: "No record" transcripts and "Accounts in the Closed Entity File" transcripts.

    1. Transcripts showing "no record" at the bottom of the transcript means either that there truly was a finger error when entering the Primary Key of the transaction attempting to post or that the account has never been on the NMF database. The ULC was not loaded.

    2. Verify that the Primary Key of the transaction was input from the document correctly. If input incorrectly, up date using the Unpostable Correction screen. Annotate the listing to reflect each correction.

    3. If the Primary Key is correct and the account to which the transaction will post is not related to an EPMF return, search the Unit Ledger Card File. When the correct Unit Ledger Card is found analyze the Unit Ledger Card with the Unpostable Transaction List to ensure that the transaction is appropriate.

    4. If the transaction is appropriate, the account needs to be loaded. Use the Load Old Accts/TRANSFER-IN screen to load the Unit Ledger Card. Do not input the unpostable transaction when loading the ULC. The system will post the unpostable transaction automatically once the account (entity and transactions from the Unit Ledger Card) posts. No further action is required.

    5. If the transaction is inappropriate to post to the account, then see Nullified Unpostable.

    6. If a payment is other than EPMF, refer to 4430 account procedures in IRM 3.17.46.8.1, Account 4430 Procedures.

  5. If the Primary Key is correct, the unpostable transaction is a payment for an EPMF account:

    1. Follow procedures in (4) above for resolution

      Note:

      EPMF assessments are processed to BMF.

    2. If unable to apply the payment, NMF will contact the lead point of contact (POC) in the EP Accounts Unit (Ogden Accounts Management Campus) for prompt assistance within 3 work days of NMF notification/request prior to moving the payment to 4430 account.

      Upon notification from EP, NMF will timely or expeditiously process appropriate documentation to clear the EPMF Unpostable payment(s).

    3. After the transaction has been in the 4430 account for 30-days, move the payment to Unidentified in accordance with Account 4430 procedures. See IRM 3.17.46.8.1.

  6. If the Primary Key is correct and the Unpostable Document is a Form 2424 or Form 3809:

    • Research for the offsetting debit or credit portion of the document.

    • Edit the unpostable document to post to the account where the offsetting debit or credit portion posted.

  7. Transcripts showing "Closed Entity File" will be generated if the system found the entity on the Closed Entity File. Analyze the transcript to determine if posting the transaction is appropriate.

    • If posting is needed, recall the account using the NMF Processing menu option to RECALL Closed Accts. The account will be active the next day and the unpostable transaction will systemically post. No further action is needed.

    • If no posting is needed (a TC 470 attempts to post to an account in closed status, etc.) see Nullified unpostable.

    • If no Unit Ledger Card or closed ENTITY is found, use reason code 000 to nullify the transaction and return the document to the originator. See Nullified unpostable.

  8. Unpostable Code 002: A Transaction Code 402 attempts to post to an account not in status 99 (no active TC 400 in account). Nullify the transaction using reason code 001. See Nullified unpostable.

  9. Unpostable Code 004: If a TC 480 (OIC Pending) attempts to post to an account which is in 1830/ 53 status;

    1. Prepare Form 3177 with TC 532 or TC 531 and zero transaction amount to reverse the TC 530.

    2. Forward for numbering and processing.

  10. Unpostable Code 005: If a TC 481, TC 482, or TC 483 (OIC Reversals) attempts to post to an account which is not in 1300/ 71 status, nullify the transaction using reason code 001. See Nullified unpostable.

  11. Unpostable Code 006: A Transaction Code 530 with money attempts to post to an account not in Account 1830. Do not Nullify the unpostable. To correct it, forward it to Accounts Maintenance for preparation of a Form 3177 for input of a TC 530 with a zero money amount to affect a status change. Then, after the status change is effective, the TC 530 with money will systemically post to update the account balance. No NMF action is required to clear the unpostable.

  12. Unpostable Code 007: If a TC 531 attempts to post to an account which is not in 1830/ 53 status, nullify the transaction using reason code 001. See Nullified unpostable.

  13. Unpostable Code 008: If a TC 532 (Reverse TC 530) attempts to post with a transaction amount other than zero to an account which is not in 1830/ 53 status, nullify the transaction using reason code 001. See Nullified unpostable.

  14. Unpostable Code 009: If a TC 471 or TC 472 (TC 470 reversals) attempts to post to an account which is not in status 89, nullify the transaction using reason code 001. If a TC 521 or TC 522 attempts to post to an account which is not in status 89, nullify the transaction using reason code 001. See Nullified unpostable.

  15. Unpostable Code 010: A reversal Transaction Code (TC) date does not match the TC date being reversed; reversal TC amount is greater than the TC amount being reversed; or the reversal TC does not find the related TC to reverse. A UPC 010 transcript will also be generated as an aid for analysis. If only the date of the posting transaction is in error, then EDIT the transaction date through the UNPOSTABLE CORRECTIONS-TRANSACTION screen. If there is no matching transaction to reverse or if the transaction amount is greater than the transaction amount being reversed, then nullify the unpostable using reason code 086. See Nullified unpostable.

  16. Unpostable Code 011: If a TC 471 or TC 472 attempts to post to an account in Status 89 and the transaction date is earlier than or equal to the Claim Adjustment Pending Date, nullify using reason code 001.

  17. Unpostable Code 012: If a TC 400 attempts to post to an account in status 17, nullify the transaction using reason code 001.

  18. Unpostable Code 014: If a TC a TC 480 or TC 530 attempts to post to an account in status 14, nullify the transaction using reason code 001.

  19. Unpostable Code 015: If the transaction date of a TC 610 is NOT less than or equal to the transaction date of the TC 150. If the transaction date was input in error, then EDIT the transaction date through the UNPOSTABLE CORRECTIONS-TRANSACTION screen. If the transaction code was input in error (i.e., finger error and should have been a TC 670), then nullify the transaction using reason code 086 and reprocess.

  20. Unpostable Code 016: If a TC 530 attempts to post to an account with a zero balance, nullify the transaction using reason code 086.

  21. Unpostable Code 017: Any subsequent transaction with a doc. code 24, 27, 28, or 87 attempting to post and the Blocking Series of the DLN is not compatible with the True Tax Class of the Abstract Number will go unpostable. Nullify the transaction using reason code 086 and forward the document to RACS for re-numbering and a SCCF adjustment.

  22. Unpostable Code 018: If a TC 470 or TC 520 attempts to post to an account which is in 1830/ 53 status with an unreversed TC 530. Prepare Form 3177 to post a TC 531. The TC 470 or TC 520 will then post systemically when the TC 531 posts.

  23. Unpostable Code 019: If a TC 531 attempts to post to an account in credit balance, nullify the transaction using reason code 001. The credit balance must be resolved prior to posting a TC 531.

  24. Unpostable Code 020: A transaction code attempts to post to an account with an unreversed TC 608. Request and prepare NMF transcript to post TC 609 if the credit precedes the CSED. The transactions will then post systemically when the TC 609 posts. If the CSED is barred, nullify the transaction using reason code 001.

  25. Unpostable Code 021: If a TC 972 attempts to post to an account which does not contain a TC 971, nullify the transaction using reason code 001.

  26. Unpostable Code 022: If a TC 530 attempts to post to an account with an unreversed TC 520, nullify the transaction using reason code 001.

  27. Unpostable Code 040: If a TC 400 transaction money amount does not equal the Entity record account balance money amount, nullify the transaction with reason code 040. An account transcript will be generated. Associate it with the Form 514-B and send it to RACS with the Nullified Unpostable List. See Nullified unpostable.

  28. Unpostable Code 041: If a duplicate transaction code (160, 170, 180, 270, 310, 340, 350, 360, or 610) attempts to post to an account with the same transaction date and/or money amount. Nullify the transaction using reason code 001.

  29. Unpostable Code 047: A Transaction Code 470 attempts to post to an account previously flagged for a notice/TDA. Determine the dates of the TC 470. If the TC 470 should be in effect because the transaction date is prior to the notice date, the DBA can remove the notice flag through the Weekly Notice Correction screen to stop the notice. If the TC 470 date is subsequent to the notice date and the notice should go out, the TC 470 will post systemically.

  30. Unpostable Code 053: A Transaction Code 530 with zero money amount attempts to post to an account already in 53 (an unreversed TC 530 already exists) status. Nullify the transaction using reason code 053.

  31. Unpostable Code 099: If the account is in status 99 (Transferred Out), and any transaction other than TC 402 attempts to post, a UPC 099 transcript will be generated. Nullify the transaction using reason code 099. See Nullified unpostable.

Nullified Unpostable

  1. An unpostable is nullified because it cannot be processed to the database. See IRM 3.17.46.13.11 for the various reasons to nullify transactions and see IRM 3.17.46.1.5 (99) for the nullified reason code values and meanings. If a nullified item was journaled, forward the item to RACS to reverse the journal action or journal to another RACS Account as appropriate. Select the NULLIFY UNPOSTABLE TRANSACTIONS option from the NMF PROCESSING menu. The NULLIFIED unpostable screen will appear.

  2. Click the ADD button to ADD the data for each transaction to be nullified EXACTLY as it appears on the NMF Unpostable Transaction List. All fields are required and must match the unpostable transaction record exactly to affect the nullify action.

  3. If the data input to nullify the transaction does not match exactly as shown on the Unpostable Transaction List, the nullify record will appear the following day on the Unprocessed Nullified Transaction Record List. Research the Nullified Unpostable and Unpostable file (using the NMF PROCESSING menu options for those screens) to determine the error.

  4. Annotate the back of the posting document as follows:

    • NULLIFIED unpostable

    • REASON CODE

    • DATE

    • EMPLOYEE NAME

  5. If the RACS Recap and Form 813 (item count and money amount) do not match but the imbalance condition is being corrected by nullifying the transaction, gather all posting documents by block DLN using the NMF Nullified Unpostable Transaction List. Notate the 813 as follows:

    1. "N" with the nullified item count.

    2. Total nullified money amount.

    3. Date of the nullified list (because the NMF Nullified Unpostable list has no summary number).

    4. Highlight the nullified items.

    5. Make a photocopy of the annotated Form 813 and attach the nullified document(s) to the front.

  6. If the nullified item(s) with generated Recap(s) completes the balancing of the Form 813:

    1. Notate the original Form 813 and the photocopy of Form 813 "CLOSED" .

    2. Prepare Form 2275 and indicate "permanent chargeout—documents nullified from NMF processing" for the posting documents removed from the document folder. Annotate the refile DLN if known.

  7. Associate and forward as follows:

    1. Form 813, Recap(s) (part 1), Form 2275 and the posted document(s) will be forwarded to Returns Files after the monthly balancing is completed.

    2. Form 813, Recap(s) (part 2 and 3) are associated with the Transmittal Recap of RACS Summaries and forwarded to RACS. Notate an "N" by the DLN of the nullified item on the Transmittal Recap of RACS Summaries.

    3. The photocopy of the closed Form 813 and the nullified document(s) are associated with the NMF Nullified Unpostable Transaction list and forwarded to RACS.

  8. If the nullified item(s) with no generated Recap(s) completes the balancing of the Form 813:

    1. Annotate Form 813 (part 1 and copy) "CLOSED" .

    2. Photocopy the closed Form 813 and attach the nullified document(s).

    3. Associate the above document with the NMF Nullified Unpostable Transaction list and forward to RACS.

  9. If the nullified item(s) does not complete the balancing of Form 813:

    1. Photocopy the Form 813 and attach the nullified document(s).

    2. Prepare Form 2275 and indicate "permanent chargeout—documents nullified from NMF processing" .

    3. Retain the incomplete Form 813, the associated Recap(s), Form 2275 and the posting document(s) in the NMF Partial Files until resolution of the partial.

    4. Associate the Form 813 (copy) and the nullified document(s) with the NMF Nullified Unpostable Transaction list and forward to RACS.

  10. Notate the NMF Nullified list with the items being released to RACS and the items returned to the originator (no journal action required).

  11. Part 1 of the NMF Nullified Unpostable list will be retained in NMF and part 2 of the list will be forwarded to RACS with Form 813 and the nullified documents.

Recall Closed Account

  1. Occasionally an account needs to be recalled from the closed to the open file on the database. This generally happens when a subsequent payment is received or when an entity change is needed and the transaction goes unpostable with a UPC 000.

  2. Select the option RECALL Closed Accts. from the NMF Processing menu. This option will prompt the REQUEST FOR RECALL OF CLOSED ACCOUNT screen. All fields are required.

    1. Click the ADD button to ADD the TIN, MFT and Period Ending.

    2. After input of the period ending in MM/DD/YYYY format, click the SAVE button and the request will be executed if the Primary Key matches an account in the Closed file.

  3. The account will be active the next day following the request.

Subsequent Transactions

  1. A subsequent transaction is any action posted to an established account. This option from the NMF PROCESSING menu is for entering all subsequent transactions. The source document types will vary.

    Note:

    All documents or forms coming to NMF as a "Subsequent Transaction" to be posted to the ANMF system MUST have proper supporting documentation attached.

  2. Select the ENTER SUB-PAYS option from the NMF PROCESSING menu and the SUBSEQUENT TRANSACTION INPUT screen will appear.

  3. Enter each document in the Block. If a document has multiple transaction codes, each transaction code must be entered as a separate record.

    1. Click the ADD button to ADD the transaction information.

    2. After the transaction amount is input, click the SAVE button and the record will be added.

    3. If a history item is needed for a particular transaction, See IRM 3.17.46.13.3.

  4. The transaction date is determined and input as follows:

    1. A schedule date of an abatement/refund: Input the abatement/refund schedule numbers into the Abatement/Refund Schedule Number field;

      Note:

      It is required to input the Refund Schedule Number and Abatement Number upon posting of a refund and abatement. The Abatement/Refund Schedule Number field is a mandatory field when posting a refund or abatement.

    2. Received date of a payment.

    3. The current 23C date will be generated for all assessment transactions by pressing "RETURN" .

    4. Transaction date of the transaction code being reversed.

    5. All others will be indicated on the document.

  5. Effective January 1,2008, the Payment Trace ID Number is a required field for payment transactions as indicated in IRM 3.17.46.8.3.1 for key entry after the Transaction Code field.

  6. During input of any subsequent transaction the system will check the following reversal transaction codes for their match. If the transaction date does not match the transaction date of the transaction code being reversed or if the transaction amount is greater than the transaction amount of the transaction code being reversed, the transaction will not post and will be included on the Unpostable Transaction list with an unpostable code 010.

    1. TC 609 reversing TC 608

    2. TC 611 or TC 612 reversing TC 610

    3. TC 641 or TC 642 reversing TC 640

    4. TC 651 or TC 652 reversing TC 650

    5. TC 661 or TC 662 reversing TC 430

    6. TC 671 or TC 672 reversing TC 670

    7. TC 681 or TC 682 reversing TC 680

    8. TC 691 or TC 692 reversing TC 690

    9. TC 695 reversing TC 694

    10. TC 702 reversing TC 700

    11. TC 712 reversing TC 710 or TC 716

    12. TC 731 or TC 732 reversing TC 730

    13. TC 742 reversing TC 740

    14. TC 762 reversing TC 760

    15. TC 771 or TC 772 reversing TC 770

    16. TC 740, TC 841 or TC 842 reversing TC 840

    17. TC 822 reversing TC 820

    18. TC 832 reversing TC 830

    19. TC 851 or TC 852 reversing TC 850

    20. TC 862 reversing TC 860

  7. If the transaction amount is greater than the transaction amount of the TC being reversed, the following TCs will go unpostable with a UPC 010.

    1. TC 765 reversing TC 764

    2. TC 767 reversing TC 766

    3. TC 802 reversing TC 800

  8. If the transaction code is not compatible with the doc. code and blocking series of the DLN, the system will not allow input of the transaction to the screen.

  9. If a transaction code is a TC 530, TC 520, or TC 470, the cursor will move to the Closing Code field. Enter the appropriate two-digit code.

    1. Valid Closing Codes for TC 470 are 90–95, 97 and 98.

    2. Valid closing codes for TC 520 are 70–89.

      Note:

      When inputting a TC 521 to reverse a TC 520 the system will require that a closing code be entered. The closing code must be the same as the closing code of the TC 520 it is reversing. If the TC 520 is posted without a closing code, the TC 521 must be entered with no closing code.

  10. If a transaction code 520 contains Closing Code 80 with a set closing date, treat the closing date as a statute extension and post a TC 550 in addition to the TC 520 using the closing date as the statute extension date. If a request for input of a TC 550 is not provided, contact the originator.

  11. If a TC 521 contains Closing Code 81, 85, 86, 87 or 88 the Collection Statute Expiration Date (CSED is extended by the amount of time from the transaction date of the TC 520 to the transaction date of the associated TC 521 plus six-months). If the input of a TC 550 is not requested, contact the initiator.

  12. A transaction code 481 or 482 extends the Collection Statute Expiration Date (CSED) by the amount of time from the TC 480 transaction date to the TC 481 and TC 482 transaction date plus one year. If a TC 550 is not included on Form 514-B contact the initiator.

  13. If the transaction code is 550, the cursor will move to the CC field. Enter the extended Collection Statute Expiration Date. If there is no date provided, have RACS remove the document from the Block Control File (RACS) and reject to the originator.

  14. If the transaction code is an information transaction (TC 470, TC 471, TC 550, etc.), a zero transaction amount is systemically-generated and the record is automatically added.

  15. If the transaction code is one that contains no money, enter zero then press "RETURN" when the cursor moves to the transaction money amount field.

  16. If the transaction code is for a credit (TC 400, TC 610, TC 640, TC 650, TC 660, TC 670, TC 680, TC 690, TC 694, TC 700, TC 730, TC 760, or TC 780), the transaction date must be the actual date of input or earlier; the system will not allow input of a future date in this field.

  17. The History screen should be used to input any information (audit trail) related to the actual subsequent transaction. This is most critical when input of subsequent transactions where the input document was created in NMF.

  18. The ANMF system will not update the status on an account where a transaction code (TC) 480, 520, or 530 is input prior to reversing TC 971 AC 63, Status Code 60. Enter a TC 972 AC 63 using the same date as the TC 971 AC 63.

  19. To terminate a data entry session, click the EXIT button to EXIT and return to the previous menu.

Processing Entity Changes

  1. Select the ENTER ENTITY CHANGES option from the NMF PROCESSING menu. The NMF ENTITY CHANGES—ENTRY SCREEN will appear.

  2. The TIN is a required entry and you must insert the hyphens when entering the SSN or EIN.

  3. The MFT and Period Ending fields are optional entries. Input to both of these fields in conjunction with the TIN field will only affect an entity change to that one specific account.

  4. The entry of the document DLN is also required. Insert hyphens when entering.

  5. Enter the transaction date (required) listed on the document. Enter in the format MMDDYYYY; the system will input the slashes when you use the TAB key or mouse to navigate to the next field.

  6. Enter the transaction code (required) on the document and the system will generate the literal for that code.

  7. You will enter the new entity information based on the transaction code previously entered. Each transaction code must be entered separately even if there are multiple transactions per document.

  8. If the transaction code is 011, the cursor will stop at the NEW TIN field. Enter the changed SSN OR EIN, from the document, including hyphens. If the transaction code is NOT 011, the original SSN or EIN will be generated in the New TIN field.

  9. If the transaction code is 013 the cursor will stop at the NAME LINE field. Enter the new first name line. If no change to the first name line, use the TAB key or mouse.

    1. If there is a change to the name, remember to enter the new name control. If no change to the name control, use the TAB key or mouse.

    2. If there is a change to the second name line, enter the change in the NAME/ADDR OVERFLOW LINE Field. Otherwise, use the TAB key or mouse.

  10. If the transaction code is 014, the cursor will stop at the NAME/ADDR OVERFLOW LINE field. If there are two lines of address, enter the first line here, otherwise, use the TAB key or mouse.

    1. Enter the change to the address on the ADDRESS LINE field. Use this field if there is only one address line. If there are two lines of address, use the NAME/ADDR OVERFLOW LINE field for the first address line and the ADDRESS LINE field for the second address line.

    2. If there is a change to the City, State or Zip Code, enter in the appropriate field.

    3. If the address change is to a foreign address, input "XX" into the State field of the screen.

  11. If the transaction code is 015 the cursor will stop at the ZIP CODE field as well as the LOCATION CODE field (also known as the IDRS number).

  12. A transaction code 030 (usually received on an IDRS Form 5147) must be converted to a transaction code 014 and 015 and input as separate transactions.

  13. Pre-search for entity changes may be necessary. If a taxpayer has multiple accounts on the database and it is determined (through pre-search) that the entity change is only necessary for one of the taxpayer's accounts, input the TIN, MFT, and Period Ending when Adding to the Entity Change screen. If the taxpayer has multiple accounts on the database and it is determined (through pre-search) that the entity change should affect all accounts, input the TIN only when Adding to the Entity Change screen.

  14. Additional pre-search may be required to determine if the previous name or address consisted of two lines and now will only be one line. If pre-search determines that the Name/Address Overflow line no longer is required, a period (.) must be input to the Overflow field when entering the Entity Change (currently, this is the only method of blanking out the Overflow field).

  15. When an "account specific" Entity Change would create a duplicate Primary Key situation on the database, the system will not allow the transaction to be entered into the screen. In this case, the system will prompt you with the message "An account with this Primary Key exists in the fentity table." If the change creates a duplicate Primary Key in the Closed file, the message will insert fclos2enty in the place of fentity.

  16. When an Entity Change transaction code 014 or 015 posts to an account currently in status 53, the system will generate an Accounts Maintenance transcript. This transcript will be used to determine if the TC 530 carries a Closing Code 03 or 12 (unable to locate or contact).

    1. If the Closing Code is either 03 or 12, NMF will prepare a Form 3177 with a TC 531 (zero money amount) for input to the account through the Subsequent Transaction screen. A re-issued TDA will be generated systemically.

    2. If the Closing Code is other than a 03 or 12, destroy the generated transcript.

  17. Entity changes will affect both open files and closed files of the database.

Unpostable Entity Changes

  1. Entity change transactions will go unpostable if no matching entity is found in the Open file or the TIN change would create a duplicate Primary Key. These unpostable transactions will be found on the Unpostable Entity Change List. This list will be used to research and correct the unpostable entity change.

  2. When resolving the unpostable condition, annotate each resolution action on the Unpostable Entity Change List.

  3. Select the option Enter Entity Changes from the NMF PROCESSING menu.

    1. Research each unpostable clicking the ENTER QUERY button and then the EXECUTE QUERY button to submit the request.

    2. Verify that the transaction was input from the document correctly. If input incorrectly, use the EDIT option on the Menu Bar and select the EDIT feature to correct any input error.

    3. If no account is found in the open entity file or closed entity file, research the –0– balance 53'd ULC files. If the correct ULC is found, forward for loading onto the database prior to EDITING the entity.

    4. If no ULC or closed entity is found to delete the unpostable transaction, QUERY on the Entity Change screen to locate the record and when found, click the REMOVE button to remove the transaction; nullification is not necessary because Entity Changes are NOT input to the Form 813 Block Control screen.

Index Card System

  1. The Index Card file is used to record NMF activity which is not processed through the ANMF system. The source documents for input to this system are Information Only Returns, No-Remit NMF Extensions of Time to File, and numerous foreign returns and documents.

  2. The activity that is recorded can be researched and transcripts of the Index Card can be requested. Any activity which occurred before January 1994 must be researched in Files.

  3. You will need a separate login to access the Index Card menu. After a successful login, the INDEX CARD USER menu will display with the following options:

    1. 0. EXIT MENU

    2. 1. ORIGINAL ENTRY

    3. 2. RESEARCH INDEX CARDS

    4. 3. CHANGE PASSWORD

  4. The data is input to the system as follows:

    1. Select the menu option ORIGINAL ENTRY. The Index Card input screen will be displayed.

    2. The cursor will be positioned at the first field on the screen to add the required information. See Exhibit 3.17.46-4 for the valid entries for each field.

    3. Error messages will be displayed at the bottom of the screen if the input information for a particular field is invalid or is in an incorrect format.

    4. After entry to the last field (Country), and all the document information is input, click the SAVE button and the record will be added at that time. You will then receive the message "Transaction complete. 1 record(s) applied and saved" at the bottom of the screen.

    5. Repeat steps (a) through (d) above until all documents from the block are input.

  5. The DBA (Database Administrator) will select the menu option FORMAT Index Cards. The system will create an Index Card for each record added and transcripts for all requests and move them to a print file.

    1. It is important to note that ALL input activity (ADD command) is suspended when using the option to FORMAT Index Cards.

    2. The DBA must use the option FORMAT Index Cards each and every day as you will also be formatting the transcripts that have been requested that day. We suggest that this option is used first thing every morning to ensure that all transcripts that were requested the previous day are printed for distribution.

  6. After formatting is completed, the DBA will select the menu option PRINT Index Cards. The Printer Selection menu will be displayed. Since the print files will remain intact until the FORMAT option is selected again, the records can be printed more than once. If the option FORMAT is used and the Index Cards and transcripts are not printed then the option FORMAT is selected again. All previously formatted Index Cards and transcripts will be overwritten. The overwritten files will then have to be QUERIED up on the ORIGINAL ENTRY screen and the print indicator UPDATED to "Y" . The DBA will again select FORMAT and the PRINT options to reprint those Index Cards.

  7. The Index Cards and transcripts are printed on the same paper used to print ANMF transcripts. The system will print the Index Cards and transcripts in the following order:

    1. All transcripts that have an employee number in TIN order then,

    2. All Index Cards that were input (no employee number) in DLN order.

  8. The DBA will associate the Index Cards with the related documents in each block for review. If the review indicates that an Index Card requires correction, see (11) below for further instructions. After the review is completed, forward the Blocks and related Index Cards to the appropriate function.

  9. If an error is detected during the review, the DBA will select the menu option ORIGINAL ENTRY-Index Cards and follow the instructions below.

    1. Click the ENTER QUERY button, enter the TIN and click the EXECUTE QUERY button to retrieve the incorrect record.

    2. When the record is found, select the EDIT option on the Menu Bar and select EDIT to correct the field(s) in error. Use the TAB key or mouse to move the cursor to the field(s) in error.

    3. The DBA will make the necessary corrections and click the SAVE button to commit to the database. The message "Transaction complete. 1 record(s) applied and saved" will appear at the bottom of the screen.

    4. When updating, the DBA should remember to input a "Y" into the print indicator field at the upper left portion of the screen.

  10. On the following day, the DBA will return to the Index Card menu and select options FORMAT and PRINT to reprint the corrected Index Cards. Because other functions will be requesting Index Card transcripts throughout the day, each time you FORMAT and PRINT you will also be formatting and printing those requested transcripts. For consistency, we believe the FORMAT and PRINT options should only be used once each morning as described in (7) above.

  11. Distribute all transcripts to the requesting function(s) based on employee number.

  12. The Index Cards will be systemically moved from the working file to the research file during the weekend runs. All work input from Monday through Friday will be moved each week. Once the Index Card is systemically moved to the research file only the DBA will have the capability to update. It is important that all review of the week's input is completed and any changes completed by the end of the day Friday. A final FORMAT and PRINT will be required at the end of the day each Friday.

  13. The schedule for the FORMAT and PRINT options are as follows:

    1. Monday morning—No FORMAT and PRINT

    2. Tuesday morning—FORMAT and PRINT

    3. Wednesday morning—FORMAT and PRINT

    4. Thursday morning—FORMAT and PRINT

    5. Friday morning—FORMAT and PRINT

    6. Friday end of the day—FORMAT and PRINT

Index Card Research and Transcript Request

  1. The research screen is identical to the Original Input screen on the Index Card system. Researching the Index Card database can be performed on any field on the screen. However, the TIN Record ID Number and Name Control fields will provide the fastest response.

  2. To research the posted Index Card data, click the RESEARCH POSTED TAB.

    1. Click the ENTER QUERY button. The cursor will be positioned in the SSN/EIN field.

    2. Use the TAB key or mouse to move the cursor to the desired field and add the search information. After all information is entered, click the EXECUTE QUERY button to submit your request.

    3. When your research is completed, click the EXIT to return to the previous menu. Select the appropriate option to either request a Transcript as illustrated in figure 3.17.46–22 or exit the menu.

    Figure 3.17.46-22

    This is an Image: 33900084.gif
     

    Please click here for the text description of the image.

  3. To research the "pending" file data (accounts not yet posted), click the RESEARCH PENDING TAB.

    1. Click the ENTER QUERY button. The cursor will be positioned in the SSN/EIN Field.

    2. Use the Tab key or mouse to move the cursor to the desired field and add the search information. After all information is entered, click the EXECUTE QUERY button to submit your request.

    3. When your research is completed, click the EXIT to return to the previous menu. Select the appropriate option to either request a Transcript as illustrated in Figure 3.17.46-22 or exit the menu.

  4. To request a transcript of an Index Card, select the REQUEST INDEX CARD TRANSCRIPT TAB from the Research Index Card menu. TRANSCRIPT screen will appear. An Index Card transcript reflects all fields on the research screen.

    1. Click "ADD" button and enter data. All fields are required.

    2. Click the SAVE button to commit your request to the database.

    3. If the TIN and Record ID Number you entered does not match an index card on either the pending or posted file, you will receive the message "Account not on database—correct invalid entry."

    4. When all requests are entered click the EXIT button to return to the previous menu.

    5. All requested transcripts will be generated the following day and forwarded by NMF based on employee number.

Archive NMF Accounts

  1. The ANMF system now has the capability to archive accounts on the database. The system will move all accounts that have been in the closed files (zero balance) for at least one year with no activity.

  2. The Research Archived NMF Accounts option is located on all Main menus for all groups. Research and Transcript requests are accomplished exactly as they are on the normal Research NMF option.

  3. Selecting the Research Archived NMF Accounts option from the main menu will prompt the RESEARCH/TRANSCRIPT REQUEST screen.

    1. The first option on the screen is the REQUEST TRANSCRIPT OF ARCHIVED ACCOUNTS. If you know the Primary Key you can request transcripts without first researching for the account.

    2. Click the REQUEST TRANSCRIPT OF ARCHIVED ACCOUNT button and the ARCHIVED ACCOUNT TRANSCRIPT REQUEST screen will appear.

    3. Click the ADD button and enter the data. All fields are required.

    4. Click the SAVE button to commit your request to the database.

    5. When all requests are entered, click the EXIT button to return to the previous menu.

  4. The Archived Research screens enables you to view a case file on the archived database. Researching the Archived NMF database can be performed on any field on the screen and can also be performed on specific transactions, status changes, and related history sections of an account.

    1. Click the RESEARCH ARCHIVE DATABASE button and the ARCHIVED ENTITY RESEARCH screen will appear.

    2. Click the ENTER QUERY button. The cursor will be positioned at the TIN field. After input of the TIN, and/or other specific information such as MFT, Period Ending, etc., is entered, click the EXECUTE QUERY button to submit your request.

    3. Click the appropriate Teal Colored Tab to view the NOTICE STATUS DATES, TRANSACTIONS, HISTORY SECTION, and STATUS CHANGES

    4. If the account carries multiple TRANSACTIONS, click the NEXT or PREVIOUS buttons to view all the related transactions.

    5. To return to the ARCHIVED ENTITY RESEARCH screen from any of these linked screens, click the ENTITY Tab.

    6. When your research is completed, click the EXIT button to return to the previous menu.

  5. If it becomes necessary to reopen an archived account, first request a transcript of the Archived NMF Account and then input the account through the Load Old Accts/Transfer-In screen using the transcript as your source document. You cannot "recall" an archived account as you can with an account in the closed files.

  6. If an account that has once been on the Archive files and was subsequently reopened onto the open file is again moved to the Archive file, the system will overlay the old archived account with the new archived account.

NMF Account Specialist

  1. The NMF Account Specialist provides technical assistance on complex NMF issues and individual accounts and performs the same kind of work as that found in the majority of non-supervisory positions assigned to the unit.

  2. Serves as the NMF education coordinator, OJT coach and classroom instructor.

  3. Provides technical assistance for the NMF unit in the individual computations of complex penalty and interest as well as all continued education for unit tax examiners/accounting technicians in the individual computations of complex penalty and interest. Refer to IRM 20.1, Penalty Handbook and IRM 20.2, Interest.

  4. Provides technical assistance to ANMF technicians, Area Office and other Service personnel.

  5. NMF Account Specialist may coordinate with Headquarters analysts and various Service personnel concerning problems as well as program changes with NMF processing.

  6. Provides a contact point between campuses and area offices for all semi–annual verification listings.

  7. Serves as the NMF TAS and Congressional case/account coordinator.

  8. Serves as the primary NMF internal and external communication coordinator.

Database Administrator (DBA)

  1. The Database Administrator (DBA) is the Accounting Branch expert on technical matters related to the ANMF System and the other related NMF applications.

  2. The responsibilities of the DBA and the alternate DBA fit into four general categories:

    1. File and system expertise—The DBA should understand the various database files, the records contained in each file, and their relationship with each other.

    2. Run and print reports—The DBA is responsible for printing all the nightly, weekly, and monthly reports, running and printing the daily processing, and printing special reports upon request. The DBA is responsible for analyzing each report generated form the ANMF system for errors, trends or unusual situations. The DBA must understand the purpose of each report and route the reports to the technician or function responsible for follow-up action. The DBA should understand or know where to find a description of each element on all the reports.

    3. Maintain integrity of the database—The DBA must ensure that the balance and integrity of the database is maintained at all times. The DBA is given special clearance to modify records on the database and to create transactions without going through normal block balancing.

    4. Accounting expertise—The DBA should have a thorough knowledge of NMF principles and theory and understand the relationship between NMF and other functions, especially RACS.

    Note:

    ALL DBA correction back-up must be retained for two years from the date of modification.

  3. The Oracle DBA Main Menu.

    1. Option 1 provides the DBA with the same research capabilities and limitations as any other NMF research user.

    2. The DBA's research capability allow for query of the NMF database using the Standard Query Language (SQL) technique. The screens developed for this purpose do not permit any insert, update, or delete capability.

  4. The SecureCRT DBA Main Menu.

    1. Option 4, ANMF Non-Daily Print Menu I, and Option 5, ANMF Non-Daily Print Menu II, allows access to print all Notices, and various listings.

    2. Option 9 provides access to view the Error File which lists the system activity for the previous nightly runs plus other activity that has been initiated by the System Administrator. This file is primarily intended for use by the System Administrator. It should also be used by the DBA to help identify and correct problems related to the previous nightly runs; or confirm that the nightly runs have been successful.

  5. The Error File can also provide counts of each type of record on the print file to help the DBA know which options must be printed and estimate the amount of corrective and accounts maintenance work that will be required on the same day.

  6. Although the use of this file is optional, a hardcopy of the file MUST be printed each day and maintained in a binder for future reference and analysis by Headquarters Information System Management (ISM) when necessary. Retain the hardcopy for six-months.

  7. Option 6 should be used each Friday morning (but can be used at any time) to confirm that the 23C and Notice dates are current and correct.

    1. On Friday, the 23C date is 24 calendar days subsequent to the current date.

    2. The notice date is the date on the notices that are currently generated. Each Monday, this date is changed to the following Monday date.

    3. Request a Help Desk Ticket if the dates are not correct as stated above.

  8. Option 7 allows the DBA access to the Archive System Menu.

Files of the ANMF

  1. Each NMF account consists of a series of records on a relational database. As such, each record is created and maintained on a table (or file) based on the type of record and the processing status of that record.

    1. The Primary Keys (TIN, MFT, Period Ending) is the link between different records of the same account. When an account is researched or analyzed, the programs read each posted record on the database for the designated Primary Key. For entity changes, the TIN is the only link with other accounts.

    2. The DBA must learn the different tables to know where to locate records that have been processed improperly and to understand the impact of corrections that are input to screens that bypass normal validation.

  2. Each time an assessment is entered or an account is established, two different tables are affected; the entity table and the transaction table. Once the records are entered into the system, they are subjected to totally different processing because each record belongs to a different table.

  3. The entity portion of the account becomes part of the work entity file (fwrk_enty) or daily work entity file (fdwrk_enty).

    1. These records require key verification, but are not subject to balancing or posting checks after input.

    2. The records on the key verification file (fver_enty) or daily key verification file (fdver_enty) must match exactly to the work entity records at the time of input.

    3. The nightly or daily posting runs remove matching work entity and key verification entity records and create posted entity records (fentity) or posted daily entity records (fda_enty). The posted daily entities are then merged to the regular posted entity file as one of the final options on the Daily Processing menu.

    4. Occasionally, a work entity record is changed after the record has been key verified but prior to the nightly runs. If this occurs, the two records will not match during the nightly runs and they will both remain in the working files, where they must be researched and corrected using the working file (original input) screens.

    5. Entity records remain on the posted file until the account has been in a zero balance status for at least 30-days and no penalty or interest has accrued for at least 52-days. On the last weekend before the end of the month, the entities that fall within the above categories are moved to the closed entity file (fcloe_enty) and an index of the Primary Key (fprm_recal) is created in a table and systemically checked each time a new account is established to ensure that no new account can be established with a duplicate Primary Key.

  4. Weekly assessment transactions (fwtrans) and daily assessment transactions (fda_wtrans) are created at the same time as the entities but are not key verified. Instead, these transactions are subjected to posting validation and must pass block balancing. Subsequent transactions are input through a separate screen but are subject to the same posting validation and block balancing as weekly assessment transactions and are posted to the same (fwtrans) file.

    1. Blocks of transactions are matched to the input file of unprocessed Form 813 (fdln813). Transactions that do not find a matching Form 813 via the DLN, are printed on the Error Register and remain on the original (fwtrans or fda_wtrans) working file.

    2. If the block of transactions find a matching Form 813 via the DLN, the F 813 is moved to the posted 813 file (fsccf_d813). The posted 813 file is purged and printed on the Cycle Proof List on the first day of the following month.

    3. Transactions that do not match the Form 813 in total item count and debt or credit money amount are printed on the Block Out of Balance listing and moved to the weekly (fsccf) or daily (fda_sccf) block out of balance file.

    4. Balanced matching transactions move to the weekly pending transaction file (fpnd_trans) or daily pending transaction file (fd_pnd_trn), where they will attempt to post to the posted file.

  5. Unpostable transactions remain in the pending files until they are corrected or nullified.

    1. Requests to nullify weekly assessment and subsequent transactions are input to the nullify request file (fwk_unpost).

    2. When the request has been successfully processed and matched to a record on the fpnd_trans file, the transaction is moved permanently to the processed nullified file (fnull_upst).

    3. Daily assessment transactions cannot be nullified.

  6. Transactions input to the Load Old Accts/Transfer-In screen (flod_trans) are neither key verified nor block balanced. These transactions can unpost, but cannot be nullified.

    1. Erroneous transactions can be removed using the Load Pre_Jnl'd Transaction option from the NMF DBA Weekly Run menu. If the entity is still in the pending (fwrk_enty) file, transactions can be removed using the original input option from the NMF Processing menu.

    2. The flod_trans file is the only pending file for loaded transactions.

    3. To correct an unpostable loaded transaction for a primary key: go to the KV screen to correct entity; then go to the pending transaction screen to correct transaction section. Both entity and transaction sections need to be updated to correct unpostable condition.

  7. Entity changes are input to the entity change working (fwchg_enty) file. Entity changes are not key verified or block balanced.

    1. Entity changes can unpost, but remain on the fwchg_enty file until they are posted or removed (deleted). They cannot be nullified.

    2. Posted entity changes are moved to the posted entity change (fpchg_enty) file, where they remain permanently.

  8. All posted weekly assessment, load/transfer-in, and subsequent transactions are moved to the posted transaction (ftrans) file. Daily assessment transactions post to the daily transaction (fda_trans) file and are moved to the ftrans file when merged.

    1. Transactions remain on the ftrans file until accounts have become a zero balance for at least 30 to 45-days, then are moved to the closed transaction (fclo_trans) file during the next monthly purge run.

    2. Posted transactions for the current month are also included on the fholdtran file for inclusion on the monthly trial balance.

  9. The following table lists the file names and the menu options that can be used to ADD, EDIT, REMOVE, or QUERY records on each file.

    1. The numbers across the top represent the option numbers from the NMF Processing menu or the DBA Weekly Run menu. The research (Rsch) option is available from any of the Main menus.

    2. The file names are listed alphabetically.

    3. The letter ADD, UPDATE (mode), or QUERY indicates the type of action that can be made on a record in a designated file.

    4. The number next to the letter is the table number (screen number) within the menu option. Table 1 is the first screen that displays when a particular option has been selected.

    Figure 3.17.46-23

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    Please click here for the text description of the image.

Processing Daily Assessments

  1. Any assessment received from the RACS function with a journal number already assigned is considered pre-journalized and must be input through the Original Assessment-Daily screens.

    1. Although daily processing goes through block balancing the daily assessments must be manually balanced at month end as no Recaps are generated.

    2. The DBA is solely responsible for completing and balancing the Daily runs.

  2. Each day, after all Daily assessments have been input, the DBA will complete the Daily runs.

    1. While the DBA is running the Daily programs, no daily work can be entered into the system. If necessary, after the runs have been completed and balanced and all reports and notices have been printed, additional assessments can be input and processed through a second set of Daily runs.

    2. Execute the options in the order they appear on the Daily menu. Some of the menu option numbers may not match the numbers shown on the screen. For each print option, use the size, count, and pitch.

    3. Select Balance Daily Blocks (option 1 or dbal), then select the next two print options for the NMF Error Register and BOB Summary (option 2 and 3, der and dpBOB).

  3. Review the reports and documents and make any necessary corrections using the same procedures as for weekly processing. If the error was related to input of the Form 813 information by RACS, promptly hand carry to RACS for the necessary correction.

  4. When all corrections have been input, again select the option Balance Daily Blocks and repeat the process.

  5. When all errors related to Block Balancing are corrected (or any remaining errors cannot be resolved quickly), continue with the option Post Daily Entities (option 4,dpote).

    1. Print the Unverified Entity List (option 5, duvl).

    2. Use the Key Verify-Daily option from the NMF Processing menu to key verify any entities printed on this list. Then rerun the Post Daily Entities option.

  6. When all entities have posted, run Post Daily Transactions (option 6, dpott).

    1. Print the Unpostable Trans List (option 7, dput).

    2. Resolve any unpostable using the Unpostable Correction-Daily option from the NMF Processing menu. Then rerun the Post Daily Transaction option.

  7. The Daily Trial Balance is an optional run to confirm that the transactions input through the Daily process are balanced to the documents received from RACS.

    1. Choose the option Run Daily Trial Balance (option 8, drtb), followed by the option print Daily Trial Balance (option 9, dtb).

    2. Balance the report with the manual balance of all daily assessment transactions that have been input that day.

  8. When all transactions have posted (or any remaining unpostable cannot be quickly resolved), run the option Format Daily Notices (option 10, dfn) followed by the Option Print Flag Notices (option 11, dpflag).

    1. The NMF Accounts Flagged for Notices/TDAs Daily listing will indicate which notices need to be printed.

    2. Print the required notices as shown on the flag list.

  9. Route the notices to the designated technician for prompt review. If the review identifies mistakes in any entity, input the necessary corrections using the option Correct Daily Notice (option 16, dcn).

  10. The Correct Daily Notice option is used to correct any of the following elements on the posted daily entity file (fda_enty).

    • Notice Type—Must be entered to generate a notice. Use a 1 for first notice, T for Trust Fund Recovery Penalty first notice and TDA, or a Z for first notice and TDA.

    • Actual Period Ending date

    • Service Center Address Code

    • Transcript Code

    • Taxpayer Name and Address

    • Cross-Reference information

    • Periods Assessed

    • Civil Penalty Reference Number

    • NMF Assessment Date (23C date)

    • Statement Code (NMF First Notice Paragraph Indicator)

    • NMF Account Status Code

    • Business Operating Division Code (BODC) and Client Code (BODCC)

  11. When all notice corrections are completed, select the option Format Daily Notice and print the notices again.

  12. If the notice review and trial balance identify an error in a transaction after the transactions have posted, the correction cannot be made during the same Daily run.

    1. If any transaction was omitted or incorrect, wait until the transactions have been merged, then correct the account using options on the NMF DBA Weekly Run menu. The notice itself may have to be corrected manually.

    2. If an entire assessment was omitted, complete the notices for the other daily assessments then input the assessment and rerun, or hold the assessment for input the next day, depending on priority.

  13. When the Daily processing is completed and balanced, the daily posted files are normally merged into the weekly files.

    1. If unresolved errors, BOBs, or unpostable remain on the Daily file, you may consider not running the Merge option and carrying the daily files over to the next day. However, be sure to run the merge option on the last day of the month so that the Trial Balance report will be as complete as possible.

    2. Merge the daily entities first and then print the Non-Merge Entity List. This program searches the BOB (fda_sccf), error (fda_wtrans), and unpostable (fd_pnd_trn) files for any transactions with matching primary keys. If any matching records are present, the entity will not merge and will appear on the Non-Merge Entity list.

    3. If records appear on this listing for any other reason, request a Help Desk Ticket to report a program problem.

    4. After the entities have been merged, use the option Merge Transactions. Transactions that do not find a matching entity (via primary key) will remain on the daily (fda_trans) file.

  14. Daily posted entity and transaction files are available for research using option 10, Research NMF Daily (drsch), from the NMF Processing menu.

    1. The first screen to be displayed when this option is chosen is page 1 of the entity.

    2. Click the TRANSACTIONS Tab to view the transaction screen.

    3. From the transaction screen, click the NOTICES Tab to view the notice status screen.

    4. Every element on the Daily research screens are also present on the regular NMF research file, although some field values may not be valid on the Daily file.