3.17.244 Manual Assessments

Manual Transmittal

June 13, 2019

Purpose

(1) This transmits revised IRM 3.17.244, Accounting and Data Control - Manual Assessments.

Material Changes

(1) IPU 18U1351 issued 10-17-2018 IRM 3.17.244.2.1(9) updated manual assessment contacts.

(2) IPU 18U1351 issued 10-17-2018 IRM 3.17.244.2.2 updated Contingency Plan contacts.

(3) IPU 18U1351 issued 10-17-2018 IRM 3.17.244.4.3 added guidance for the TIN field for Form 5329 processing.

(4) IPU 18U1351 issued 10-17-2018 IRM 3.17.244.4.5 added guidance for Abstract Numbers for Form 5329 processing.

(5) IPU 18U1351 issued 10-17-2018 Exhibit 3.17.244-7 updated manual assessment contacts.

(6) IPU 18U1374 issued 10-24-2018 IRM 3.17.244.3.7(2) changed processing campus from Cincinnati to Kansas City.

(7) IPU 18U1374 issued 10-24-2018 IRM 3.17.244.5.1 changed processing campus from Cincinnati to Kansas City.

(8) IPU 18U1374 issued 10-24-2018 IRM 3.17.244.5.2 changed processing campus from Cincinnati to Kansas City.

(9) IPU 18U1374 issued 10-24-2018 IRM 3.17.244.5.5 changed processing campus from Cincinnati to Kansas City.

(10) IPU 18U1374 issued 10-24-2018 IRM 3.17.244.8(1) Note removed the workaround due to IDRS number not printing on all pages for Form 3552.

(11) IPU 18U1374 issued 10-24-2018 IRM 3.17.244.8.1 updated procedures for the access and use of the Penalty Language Tool.

(12) IPU 18U1415 issued 11-01-2018 IRM 3.17.244.8.1 truncate URL and replaced Office of Servicewide Penalties (OSP) with Penalties Knowledge Base (KB).

(13) IPU 18U1415 issued 11-01-2018 Exhibit 3.17.244-4 added TC 767 and TC 772 to AMA Code M3.

(14) IPU 18U1576 issued 12-19-2018 IRM 3.17.244.2.1 updated contact for Ogden manual assessment receipts.

(15) IPU 18U1576 issued 12-19-2018 IRM 3.17.244.2.2 updated contact for Ogden manual assessment Contingency Plan.

(16) IPU 18U1576 issued 12-19-2018 IRM 3.17.244.5.6 added subsection for Form 5329 (MFT 29) Processing.

(17) IPU 18U1576 issued 12-19-2018 Exhibit 3.17.244-3 added penalty reference numbers to the exception list for MFT 13.

(18) IPU 19U0235 issued 02-28-2019 IRM 3.17.244.2.1(9) updated manual assessment contact for Ogden.

(19) IPU 19U0235 issued 02-28-2019 IRM 3.17.244.2.2(5) updated manual assessment Contingency contact for Ogden.

(20) IPU 19U0235 issued 02-28-2019 Exhibit 3.17.244-1 updated MFT and Penalty Reference Number Table.

(21) IPU 19U0235 issued 02-28-2019 Exhibit 3.17.244-7 updated manual assessment contacts.

(22) IPU 19U0254 issued 03-04-2019 IRM 3.17.244 editorial changes throughout the IRM.

(23) IPU 19U0254 issued 03-04-2019 IRM 3.17.244.2.1 updated manual assessment contact for Austin and Ogden.

(24) IPU 19U0254 issued 03-04-2019 Exhibit 3.17.244-7 updated manual assessment contact for Austin and Ogden.

(25) IRM 3.17.244.1.2 added additional authorities.

(26) IRM 3.17.244.2.1 added reference to new subsection for rejecting manual assessments.

(27) IRM 3.17.244.2.1.1 added subsection for rejecting manual assessments.

(28) IRM 3.17.244.2.2 updated manual assessment contingency plan contact for Kansas City.

(29) IRM 3.17.244.4.14 removed 2-day requirement for printing Form 813.

(30) IRM 3.17.244.5.1 removed reference to obsolete Form 2468, Overassessment Label and Form 3473, Rejected Document Transmittal.

(31) IRM 3.17.244.6 removed reference to obsolete Form 2547, Block Slip.

(32) IRM 3.17.244-3 added MFT 35 to Tax Return Information Chart.

(33) IRM 3.17.244-4 updated Assessment Title Chart and removed table reference to document code 52.

(34) IRM 3.17.244-7 added an eFax number for Ogden.

(35) IRM 3.17.244 editorial changes throughout the IRM.

Effect on Other Documents

IRM 3.17.244 dated September 6, 2018 (effective October 01, 2018) is superseded. This IRM also incorporates the IRM Procedural Updates (IPUs) which were issued October 17, 2018 through March 4, 2019 - 18U1351, 18U1374, 18U1415, 18U1576, 19U0235 and 19U0254.

Audience

All Campus Accounting Employees

Effective Date

(06-13-2019)

Charles A. Messing
Deputy Associate Chief Financial Officer
for Custodial Financial Management

Program Scope and Objectives

  1. Purpose: This IRM provides instructions for preparing quick, prompt and jeopardy assessments in the CFO Campus Accounting Operations.

  2. Audience: The primary users of this IRM are CFO Campus Accounting employees

  3. Policy Owner: The CFO owns these IRM policies.

  4. Program Owner: The deputy associate CFO, Custodial Financial Management (FM), Campus Accounting is the group responsible for overseeing this IRM and providing guidance.

  5. Primary Stakeholders: Campus Accounting employees throughout the CFO organization.

  6. Primary Goals: To provide efficient workflow guidance for manual assessments.

Background

  1. Manual assessments are made to protect the IRS's interest when the statute is imminent or the collection of taxes is in jeopardy.

  2. The Automated Manual Assessment (AMA) System provides IRS an automated assessment process and eliminates many of the manual procedures for processing assessments.

  3. The AMA Program functions as a stand-alone, web-based system. There is not an electronic exchange of data between either Redesigned Revenue Accounting Control System (RRACS) or AMA. Data exchanged between RRACS and AMA is completed by manually entering data into RRACS.

  4. This IRM describes the accounting procedures for manual assessments. It covers the process and procedures of the manual assessment program. These procedures and controls are necessary to comply with all administrative and legal requirements of the Department of Treasury, the IRS and the Government Accountability Office (GAO).

  5. IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards and elevated through appropriate channels for executive approval.

Authorities

  1. The authorities for this IRM include:

    1. 26 CFR (Code of Federal Regulations) 301.6201-1, Assessment Authority

    2. 26 CFR 301.6203-1, Method of Assessment

    3. 31 USC 3512, Executive Agency Accounting and Other Financial Reports and Plans

    4. IRC 3121Q - Payments Not Made to an Examiner

    5. IRC 4081 - Imposition of Tax (gasoline, diesel fuel and kerosene)

    6. IRC 6161, Extension of Time to Pay Estate Tax

    7. IRC 6166 - Installment Payments

    8. IRC 6715 - Dyed Fuel Sold for Use or Used in Taxable Use, etc.

    9. IRC 6751 - Failure to File Tax Return or Pay Tax

    10. IRC 6851 - Termination Assessments of Income Tax

    11. IRC 6852 - Termination Assessments in Case of Flagrant Political Expenditures of Section 501(c)(3) Organizations

    12. IRC 6861 - Jeopardy Assessment of Income, Estate, Gift and Certain Excise Taxes

    13. IRC 6862 - Jeopardy Assessment of Taxes other than Income, Estate, Gift and Certain Excise Taxes

    14. IRC 7429 - Review of Jeopardy Levy or Assessment Procedures

Responsibilities

  1. This section provides responsibilities for:

    1. CFO

    2. deputy CFO

    3. associate CFO for FM

    4. deputy associate CFO for Custodial FM

    5. Campus Accounting

CFO
  1. The CFO is responsible for establishing financial policy for the management and reporting of the custodial assets.

Deputy CFO
  1. The deputy CFO provides direction on financial management, ensures financial products are properly presented and maintained and ensures financial systems are compliant with federal standards.

Associate CFO for FM
  1. The associate CFO for FM is responsible for establishing, maintaining and ensuring compliance with custodial revenue policy and procedures, custodial accounting operations and financial reporting.

Deputy Associate CFO for Custodial FM
  1. The deputy associate CFO for Custodial FM ensures proper accounting and timely reporting of IRS custodial activities.

CFO and Campus Accounting
  1. Employees within the CFO and Accounting operation have the responsibility of utilizing the procedures outlined in the IRM to accomplish completion of assigned tasks associated with processing the requests received to complete manual assessments.

  2. Throughout this section, references are made to other IRMs in relation to instructions necessary to process requests for manual assessments properly. Management shall be responsible for ensuring employees are aware of the related IRMs and how to obtain the electronic version of these IRMs on the publishing website.

  3. While working assigned cases, employees may come across some that are blocked on Integrated Data Retrieval System (IDRS). These cases can be identified by an IDRS security violation message, “Unauthorized Access to This Account”. If encountered, forward the case to your manager. Managers will notify the local Planning & Analysis Staff, who will take the necessary steps for requesting access to the account. Managers will retain the original case in a file awaiting access (can take up to five (5) business days). Once notified access has been granted, the case can be worked following applicable procedures.

Program Management and Review

  1. Program Reports: In accordance with management accountability review regulations, managers are responsible for ensuring that internal controls are effective and efficient in day to day operations and safeguarded against waste, fraud and abuse.

  2. Program Effectiveness: Managers are responsible for conducting operational and/or management control reviews to identify weaknesses and mitigate known risks. Managers must perform program or spot reviews for accuracy and completeness. Problems identified should be discussed with the appropriate functional area(s).

Program Controls

  1. Federal Government Accounting Requirements: 31 USC 3512, places the responsibility for establishing and maintaining adequate systems of accounting and internal control upon the head of each executive agency and states that the head of each executive agency shall establish and maintain systems of accounting and internal control that provide:

    1. Full disclosure of the financial results of the agency’s activities.

    2. Adequate financial information needed for the agency’s management purposes.

    3. Effective control over and accountability for, all funds, property and other assets for which the agency is responsible, including appropriate internal audit.

    4. Reliable accounting results serving as the basis for preparation and support of budget requests, controlling the execution of its budget and providing financial information required by the President or other designated authority.

    5. Suitable integration of the agency’s accounting with Treasury’s accounting in connection with the central accounting and reporting responsibilities imposed by the Secretary of the Treasury.

  2. These systems must conform to the accounting principles, standards and related requirements, as prescribed by the Comptroller General of the United States (U.S.). Historically, these have been reflected in the Government Accountability Office Policy and Procedures Manual for Guidance of Federal Agencies.

  3. The accounting system of an executive agency or any of its component parts is subject to review and approval by the Comptroller General. The continuing efforts to improve, modernize and simplify accounting systems in the federal government are exercised under a joint program sponsored by the Comptroller General, the Secretary of the Treasury and the Director of Office of Management and Budget (OMB). This program contemplates the full development of sound accounting within each executive agency as a working arm of management and in terms of financial information and control. It envisions an integrated pattern of accounting and financial reporting for the government that is responsive to executive and legislative needs.

  4. The established accounting and reporting principles, standards and basic procedures take into consideration the various areas of responsibility involved, the elimination of overlapping operations and paperwork and the broader application of efficient methods and techniques in accounting operations throughout the government.

Terms/Definitions

  1. The following terms are commonly used throughout this IRM:

    1. Automated Manual Assessment (AMA) - This is the system used to complete manual assessments.

    2. Automated Non-Master File (ANMF) - This is the system used to complete non-master file manual assessments.

    3. Certifying Officer - The individual responsible for “certifying” the Form 23C, Assessment Certificate - Summary Record of Assessments, which is what makes the assessments legal.

    4. Document Locator Number (DLN) - An 11 or 13 digit number assigned to every document that is processed through the pipeline.

    5. Form 2859 (Request for Quick or Prompt Assessment) - This is the form that is completed by originators that need manual assessments completed.

    6. Form 3552 (Prompt Assessment Billing Assembly) - This is the form that is generated from the AMA application when the OE and KV tasks have been completed. It is used as a notice to the taxpayer to inform them of the assessment that has been completed.

    7. Form 1331 (Notice of Adjustment) - This form will be received in Accounting when PMAs have been requested. The information needed to reverse a previously processed PMA must be included.

    8. Key Verify (KV) - This is second step taken in the AMA application when processing requests for manual assessments.

    9. Name Control (N/C) - This a two to four-character element that represents the beginning of the taxpayers’ last name.

    10. Original Entry (OE) - This is the first step taken in the AMA application when processing requests for manual assessments.

    11. Redesigned Revenue Accounting Control System (RRACS) - This is the system used to complete the journal actions.

    12. Taxpayer Identification Number (TIN) - A nine-digit number that is assigned to a specific taxpayer. This number must be present on all forms, returns and documents received for processing.

Acronyms

  1. The following table lists the acronyms that are commonly used throughout this IRM

    Acronyms Definitions
    AMA Automated Manual Assessment
    ANMF Automated Non-Master File
    ASED Assessment Statute Expiration Date
    DLN Document Locator Number
    IDRS Integrated Data Retrieval System
    IDT Identity Theft
    IRC Internal Revenue Code
    KV Key Verify
    MF Master File
    MFT Master File Tax (Code)
    NC Name Control
    NMF Non-Master File
    OE Original Entry
    PMA Protective Manual Assessment
    POA Power of Attorney
    PRN Penalty Reference Number
    RRACS Redesigned Revenue Accounting Control System
    SCCF Service Center Control File
    TIN Tax Identification Number

Related Resources

  1. The following IRMs are frequently used in conjunction with this IRM and should be referred to when additional clarification is needed.

    1. IRM 3.17.30, SC Data Controls

    2. IRM 3.17.46, Automated Non-Master File Accounting

    3. IRM 3.17.64, Accounting Control General Ledger Policies and Procedures

    4. IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates

    5. IRM 25.6.1, Statute of Limitations Processes and Procedures

Limitation on Assessments

  1. The manual assessments are prepared expeditiously to protect an assessment from being barred by the expiration of the period of limitation or to expedite the collection process. After the assessment is made, the transactions are transferred to the master file account.

  2. An assessment cannot be made after the statutory period of limitation has expired. The Submission Processing Campus (SPC) director is required to report to CFO headquarters immediately upon discovery of cases in which the statutory period of limitation expires prior to assessment of tax underpayments. See IRM 25.6.1.13, Barred Assessments/Barred Statute Cases for additional information.

Receipt of Manual Assessments (Form 2859)

  1. Form 2859, Request for Quick or Prompt Assessment, will be processed within five (5) business days from the date of receipt unless a specific 23C date has been requested.

  2. When a Form 2859 is received in RACS function, the receiving office will review the manual assessment for completeness and verify that the assessment statute expiration date (ASED) has not expired. These requests will typically be received via fax, eFax or scanned (via a shared folder). For the most recent revision of the Form 2859, Rquest for Quick or Prompt Assessment, please access the publishing website.

    Note:

    Faxed, eFaxed or scanned documents can be considered originals. See IRM 11.1.1.14 , Facsimile (FAX), Electronic Facsimile (E-FAX), and IRS Internal Enterprise Electronic Facsimile (EEFAX) Transmission of Tax Information, for additional guidelines for faxing tax information.

  3. If the ASED has more than 60 days left, the assessment can be processed through master file. If any requests are received with more than 60 days left on the ASED, the Form 2859 must be rejected back to the originator. IRM 3.17.244.2.1.1, Rejecting Manual Assessments for guidance. The following provides exceptions to rejecting the Form 2859 back to the originator:

    • Quick assessments may be prepared by the Statute function for returns where the transaction code (TC) 610 has been posted but the TC 150 has not posted. These requests will have an ASED that is more than 60 days. These requests are to be processed.

    • Status 12 (ST12) cases received from the Statute function will have more than 60 days left on the ASED. These cases are to be processed.

      Note:

      Per IRM 25.6.1.11.1.4.2.10, ST-12 (Credit - No Return), the two exceptions listed above should have a transcript of the account attached to the Form 2859.

    • Ogden may receive cases marked as "Prompt Assessment to satisfy IRC 6751" . These cases can/will have more than 60 days left on the statute. They will also have a penalty explanation attached that is to be mailed, along with the Form 3552, Prompt Assessment Billing Assembly, to the taxpayer.

    • Agreed Unpaid assessments over $50,000 must be manually assessed using quick and prompt assessment procedures. These requests may/will be received with more than 60 days left on the ASED.

    • Over $100,000 agreed, but unpaid, and the 23C date through Integrated Data Retrieval System (IDRS) will not be within 30 days from the agreement received date.

    • Austin Only LB&I Offshore Voluntary Disclosure Program (OVDP) assessments. These assessments may be received with more than 60 days left on their ASED and they will be accepted and processed.

    • Requests received with the annotation 25 percent omission in the remarks section are to be processed. These assessments are a result of taxpayer omitting 25 percent or more of income on the originally filed return. See IRM 25.6.1.9.5.3 for additional information.

  4. If a request is received and the ASED has expired, reject the request back to the originator. See IRM 3.17.244.2.1.1, Rejecting Manual Assessments, for guidance.

    Exception:

    Some "Exception Processing" cases will come from the Statute function. These cases will be identified as Exception Processing on the Form 3210, Document Transmittal, and are to be processed. See IRM 25.6.1.9.5, Special Assessment Periods - Related to Return or Item on Return for explanations.

    Exception:

    In situations where a case has gone to court and the ASED has expired, assessments may be made 60 to 90 days after the court decision. These cases should include a copy of the Form 870, Waiver of Restrictions on Assessments & Collection of Deficiency in Tax & Acceptance of Overassessment, which extends the ASED. These cases are typically received from Appeals.

    Note:

    In situations where the taxpayer files an amended return prior the ASED expiring, the ASED will be different from what’s shown on master file. The Form 2859 must have the annotation 60-day rule - amended return in the remarks section.

  5. Identity Theft cases (IDT) will be processed regardless of the ASED. Refer to IRM 25.6.1.6.14(3)(b), Criteria for Establishing a Statute of Limitations Period.

    • These cases (requests for manual assessment) will be processed regardless of the ASED.

    • These cases will be identified with "Reverse Abatement" written on the Form 3210 and/or "Identity Theft Case" written on the Form 2859.

  6. Requests received that total more than $999,999,999.99 must be rejected back to the originator. ISRP is unable to transcribe amounts $1 billion or more. The originator will need to prepare multiple (2 or more) Forms 2859 to have the assessments completed.

  7. If the Form 2859 is correct and the ASED has not expired, sign Form 3210 and fax back Part 3 (Acknowledgement copy) within 24 hours.

  8. If the assessment statute expiration date (ASED) falls on a Saturday, Sunday or Holiday, assessments can be processed on or before the next business workday (see IRM 3.30.123.2.2, Work Planning and Control, Holiday or Weekend Impact).

    Note:

    If an immediate assessment is needed, every effort should be made to have the request in the Accounting function as early as possible. A telephone call and/or an email should be forwarded to the contact shown below prior to faxing the request. This will ensure that Accounting is aware of the assessment and processing can be completed timely.

    Campus Contact Names Contact Phones
    Austin Jennifer Wossum 737-800-5042
    Jessica Ybarra 737-800-5050
    Fresno Isadora Velasquez 559-454-6969
    Leonora Hutchison 559-454-6507
    Kansas City Denise Shay 816-499-5872
    Katherine Burch 816-499-6062
    Ogden Kathy Parkinson 801-620-6898
    Sheila Paulson 801-620-7867
Rejecting Manual Assessments
  1. Whenever you receive a request that needs to be rejected, you must:

    • First contact the requestor, via telephone

    • Explain to the requestor why the case is being rejected

    • Fax, eFax or scan the request back to the originator with the reason for the rejection notated on the Form 3210.

      Note:

      See IRM 3.30.123.3.8, Processing Timeliness: Cycles, Criteria and Critical Dates, Request for Manual Assessment.

After Hours Assessments

  1. Each site must establish procedures for after-hours assessments. After-hours assessments include such items as imminent statutes, jeopardy and terminations that cannot be legally assessed during regular hours of the following workday. The following are steps that must be taken to ensure the necessary coverage is provided:

    • Appoint after-hours assessment officers, ensuring that there is an assessment officer available at all times.

    • Regularly review the appointments and the SERP Who/Where tab for Prompt, Quick, Jeopardy and Termination Assessments to ensure that the list is current.

    • Ensure that the after-hours assessment officers are properly and thoroughly trained to prepare a manual Form 23-C, Assessment Certificate - Summary Record of Assessments.

    • Provide the assessment officers with all the necessary forms and instructions for preparing the Form 23-C.

    • Each site must have procedures in place that will ensure the Form 23-C is given to the RACS function for journalization on the next business day.

  2. Procedures must be in place to ensure the necessary steps are taken to have the assessment journalized and posted to the taxpayer(s) account. The following steps should be taken:

    • The assessment officer should instruct the originator to fax the Form 2859 to a designated fax machine.

    • On the following business day, the 23-C must be given to the RACS team for journalization.

    • On the following business day, a Form 3552 must be manually prepared and a DLN must be assigned.

    • Place the DLN on the Form 2859 and fax it back to the originator.

    • Take normal steps to send the Form 3552 through pipeline processing for posting to the taxpayer(s) account.

    Note:

    See SERP Who/Where under Prompt, Quick, Jeopardy and Termination Assessments for contacts:http://serp.enterprise.irs.gov/databases/who-where.dr/prompt-quick-jeopardy-termination-assessments.html

    .

Manual Assessment Contingency Plan

  1. If a situation arises, such as unusually high volumes, disruption of service due to inclement weather or other work stoppage situations and a site is unable to process manual assessments, work should be forwarded to the alternate site listed below.

  2. The primary site needs to first contact the CFO headquarters (HQ) analyst to advise that their site is unable to process the manual assessments. HQ will issue an immediate SERP Alert to advise customers of the situation.

  3. Any requests for manual assessments, where the statute is imminent should be forwarded after contact has been made, via telephone, to the alternate site. The transfer of the work can be accomplished via fax, eFax or scanning. The method used to transfer any receipts should be determined when contact is made.

  4. All requests that are received at an alternate site will become the responsibility of that site for completion of all necessary steps. These items will be listed on an Excel spreadsheet with all pertinent data (TIN, name control, tax period, amount) and forwarded to the primary site. The primary site will have to review their receipts/ pending requests to ensure that a duplicate assessment is not completed.

  5. If a situation has prevented the site from access and the manual assessments have been input but the 23C needs to be generated and signed, CFO will be contacted as written in IRM 3.17.64.6.9, Business Resumption/Disaster Recovery Plan for the Signing of 23C Assessment Certificates.

    Primary Site Alternate Sites Contact Name Contact Phone Number
    Austin 1. Kansas City Christina Brandon 816-499-5950
    2. Ogden Kathy Parkinson 801-620-6898
    Fresno 1. Austin Jennifer Wossum 737-800-5042
    2. Ogden Kathy Parkinson 801-620-6898
    Kansas City 1. Fresno Isadora Velasquez 559-454-6664
    2. Austin Jennifer Wossum 737-800-5042
    Ogden 1. Kansas City Christina Brandon 816-499-5950
    2. Fresno Isadora Velasquez 559-454-6664

Quick, Prompt, Jeopardy and Termination Master File Assessments

  1. Quick, prompt, jeopardy and termination assessments are increases in tax, penalty or interest that must be manually processed because the increase cannot be delayed by normal processing on the IDRS. Generally, area office and campus personnel prepare these manual assessments when the expiration of the period is imminent or when the collection process must be accelerated.

  2. The only variable that distinguishes one assessment from another is the reason for making the assessment. Different reasons for making either a quick, prompt, jeopardy or termination assessment are defined below and notice routing instructions are provided.

    Note:

    Austin SPC processes all quick, prompt and jeopardy assessments for Brookhaven (Statute Operation only).

    Note:

    Ogden SPC processes all quick, prompt and jeopardy assessments for Philadelphia, Cincinnati and Memphis.

    Note:

    Fresno SPC processes all quick, prompt and jeopardy assessments for Andover.

    Note:

    Kansas City SPC processes all quick, prompt and jeopardy assessments for Atlanta.

    • Note:

      Exception: Trust fund recovery penalty (TFRP) assessments will be worked by the Ogden SPC (see IRM 3.17.244.3.1, Trust Fund Recovery Penalty (TFRP)).

      Note:

      Ogden SPC will work all termination assessments.

      Exception:

      Manual assessments for individual tax returns with a tax module balance over $999,999,999.00 must be sent to the Kansas City SPC to be processed through ANMF.

Trust Fund Recovery Penalty (TFRP)

  1. Effective September 14, 2006, all TFRP assessments will be processed by the Ogden SPC. If a TFRP assessment is misdirected, the preparer will be notified by phone and the TFRP will be sent back to the preparer.

Quick Assessment

  1. Quick assessments are assessments made expeditiously to protect the period of limitation. The quick assessment of additional taxes and agreed deficiencies is made when the statutory period for assessment will expire before assessment action can be completed under regular procedures.

    Note:

    The taxpayer must pay the amount of unpaid tax following notice and demand within 21 calendar days (10 business days if the amount demanded is $100,000 or more) to avoid the accrual of additional penalties and interest. If the taxpayer is in a receivership or probate proceeding, an immediate proof of claim may be filed.

  2. Quick assessments permit assessment of taxes subject to the deficiency procedures during bankruptcy where a statutory notice of deficiency was issued before bankruptcy and the period for petitioning the Tax Court expired prior to bankruptcy. For deficiency notices issued during bankruptcy, unagreed assessments cannot be made while the taxpayer is prohibited by the bankruptcy automatic stay from petitioning the Tax Court absent a final decision of the Bankruptcy Court determining the deficiency. Agreed assessments of deficiencies where the assessment period is not about to expire during bankruptcy are made under regular procedures.

  3. Quick assessments permit assessment of summarily assessable taxes during bankruptcy to protect the statute of limitations for assessment where the assessment period is about to expire.

  4. Quick assessments permit assessment during insolvency proceedings.

  5. Quick assessments permit the assessment of the TFRP outside of or during bankruptcy.

  6. Quick assessments allow the assessment of unpaid income, estate or gift tax deficiencies over ≡ ≡ ≡ ≡ ≡ ≡ agreed to in Examination or Appeals if the assessment cannot be input through IDRS in time to have the 23C date within 30 days of the agreement date.

  7. They provide for protective manual assessments (PMA). A PMA is made when time does not permit normal research of statute clearance.

    1. These assessments are held until it is determined by the Statute Team that research either substantiated the assessment or that abatement action is necessary.

    2. Protective manual assessments cannot be held over 45 days; taxpayer MUST receive billing within 60 days.

  8. Notices for quick assessments are sent directly to the taxpayer, unless otherwise specified.

Prompt Assessment

  1. Prompt assessments are assessments made without delay when collection appears to be at risk. The intention is to proceed with collection action as soon as possible after the assessment.

  2. They are available for use only for voluntarily filed returns secured by the IRS on delinquency investigations and returns compliance programs and for voluntarily filed returns otherwise received when the period of limitation is about to expire.

    Note:

    Prompt assessments may also be used for TFRP cases.

  3. If the taxpayer pays the amount of unpaid tax following notice and demand within 21 calendar days (10 business days if the amount demanded is $100,000 or more), the accrual of additional penalties and interest will be avoided.

    Note:

    If collection is in jeopardy, a jeopardy assessment must be used. They are usually requested by Collection.

  4. Notices for prompt assessments are always sent to the requestor unless the remarks section states "Mail Form 3552 directly to taxpayer."

    Note:

    When mailing Form 3552 directly to taxpayer, Part 5 of Form 3552 will be sent to the requestor.

  5. The requestor will do one of two things: Forward the assessment to the taxpayer or personally hand deliver the assessment to the taxpayer.

Jeopardy Assessment

  1. Jeopardy assessments allow for the collection of taxes in jeopardy. Jeopardy assessments are usually requested by the Examination Function but can also be requested by Collection. They protect the government's interest under IRC 6861 and IRC 6862. These assessments will be processed within 24 hours of receipt.

  2. Jeopardy assessments are immediate assessments made without delay in circumstances in which it is determined that collection of a tax would be endangered if normal procedures were followed. The area director must determine jeopardy. Associate Area Counsel (SB/SE), must approve all jeopardy and termination assessments in writing. See IRC 7429.

    Note:

    A signed Form 2644, Recommendation for Jeopardy or Termination Assessment, must accompany the Form 2859.

  3. Notices for jeopardy assessments are sent to the requestor. The requestor normally has already prepared a Form 3552 to hand deliver or mail to the taxpayer.

  4. Where immediate collection is necessary, the jeopardy assessment can be followed by a jeopardy levy. The area director must determine jeopardy. Where a jeopardy determination has been made, a jeopardy levy, which can follow a jeopardy assessment (or other assessment), is a levy made after assessment but before the expiration of the 30-day period for requesting a collection due process (CDP) hearing. As with jeopardy and termination assessments, Associate Area Counsel (SB/SE) must approve jeopardy levies in writing. See IRC 7429.

Termination Assessments

  1. Termination assessments provide for termination of a taxpayer's taxable year when a jeopardy situation exists and will be processed at the Ogden SPC.

  2. They protect the government's interests under the provisions of IRC 6851 and IRC 6852. They protect the government's interest by allowing the government to assess for the current or immediately preceding taxable year, at any time prior to the due date for filing.

  3. Only a territory manager, acting territory manager or an officer in an equivalent position in an International Function, can terminate a taxable period. They must make a finding that the taxpayer designs to depart from the U.S. quickly, or remove his property therefrom, or conceal himself or his property therein, or do any other act tending to prejudice or render wholly ineffectual proceedings to collect.

    Note:

    Notices for termination assessments are sent to the Compliance Campus, Collection and Examination Operations.

  4. Requests for termination assessment will be made with a Form 2859, Request for Quick or Prompt Assessment and a signed Form 2644, Recommendation for Jeopardy/Termination Assessment.

  5. Accounting is responsible for processing all requests and ensuring that the assessments are made timely. Non-Master File (NMF) is responsible for preparation of Form 6335, NMF First Notice, from the information provided by the requestor.

Receiving $1 Billion Form 1040 Returns

  1. Tax returns that could result in a tax module balance of $1 billion or more will come in via over-night traceable mail from campuses or from the Rejects/Unpostable function.

    Note:

    Manual assessments for individual tax returns with a tax module over $999,999,999.99 cannot be transferred to master file. These assessments must be sent to the Kansas City SPC to be processed through NMF.

  2. Research the "Possible $1 Billion Taxpayers" Excel spreadsheet and NMF Open and Closed database to ensure return was not previously assessed.

    Note:

    The "Possible $1 Billion Taxpayers" Excel spreadsheet is maintained in TIN order. There are six (6) columns for information: TIN, Name, MFT, Period, DLN and TC 590 CC 19.

  3. Verify all credits claimed.

    • Payment tracer research - IDRS, IMFOL, 4610 Account, Unidentified Remittance File (URF)/ Excess Collection File (XSF)

    • Tax withheld at source - Form W-2, Wage and Tax Statement, Form 1099 series, Schedule K-1 series, etc.

  4. If refund return, prepare Form 3753, Manual Refund Posting Voucher, and obtain authorized signature. Be sure to protect the 45-day interest free period.

  5. Prepare all documents needed to transfer credits to the taxpayer's non-master file account. Input a history item on the master file module indicating documents have been prepared to transfer credits to non-master file.

  6. If all claimed credits have been verified, prepare a cover sheet on letter size paper with large bold print stating "ALL CREDITS VERIFIED. DO NOT BILL TAXPAYER." If refund issued, include statement on cover sheet to show refund in the amount of ($...) has been already issued.

  7. If unable to verify all claimed credits, prepare cover sheet indicating the location and amount of credits being transferred so that bill does not go out for incorrect amount.

  8. Update the "Possible $1 Billion Taxpayers" Microsoft Excel spreadsheet (maintained at KCSPC) with all available information in taxpayer identification number (TIN) order. Photocopy pages 1 and 2.

  9. Send tax return with cover sheet to assessment desk for batching and numbering. The assessment desk will send back for photocopying. Immediately photocopy page 1 and send original tax return back to assessment desk for processing.

  10. Under cover of Form 3210, hand carry credit transfer document to Refund Team for numbering and preparation of Form 813, Document Register. Indicate "Expedite - $1 Billion Return" in remarks section of Form 3210. Also notate "Return after numbering" on the Form 3210.

  11. Hand carry to RACS (Revenue Accounting Control System) on a Form 3210 for expedite processing, once the document has been numbered and returned from Refund Team.

  12. Monitor master file and non-master file (NMF) until all documents have posted, including the Transaction Code 590 Closing Code (CC) 19 that is required input by the NMF team. If a document goes unpostable, contact Unpostable Team and take necessary steps to post to taxpayer's master file account correctly.

  13. For credit elects, research MF to determine if the tax module would be under the $1 billion limit if credit elects were transferred in. If under the limit, prepare Form 3809, Miscellaneous Adjustment Voucher, to transfer the credit elects from the current NMF account to the following year's master file account tax module.

  14. If credit elects would result in $1 billion or more of transactions on the next year's MF account, prepare Form 3809 to transfer credit elects to the 4610 Account. Input history on next year's MF account tax module indicating the amount and location (Kansas City 4610 Account) of the credit elects.

    Note:

    Not all of the taxpayers listed on the spreadsheet have $1 billion or greater tax returns every year. Most of these taxpayers obtain the maximum Extensions of Time to File and their tax returns are usually not received by IRS until October 15th. Monitor master file for the taxpayers listed on the "Possible $1 Billion Taxpayers" Excel spreadsheet for the current year tax return and record the data if it is posted on MF.

Processing $1 Billion in the Redesigned Revenue Accounting Control System (RRACS) (Kansas City SPC Only)
  1. All $1 billion tax returns and associated documents received in RACS are to be given expedite processing.

  2. When $1 billion tax returns are received in RACS from the assessment desk for renumbering to NMF, hand carry them to the accounting reports analyst for Batching, Numbering and Code and Edit. When the tax returns are received back from the accounting reports analyst, assess as Daily (taxable) and hand carry them to the database administrator (DBA) in NMF for input to the ANMF system.

  3. Verify Lines 61 through 73. Verify that all payments claimed have been received. Code Line 61 and 64 (Excess Social Security withheld) with TC 800 in red after verifying amount with Forms W-2s and Forms 1099, Schedule K-1, etc. Return to RACS assessment desk for Batching, Numbering and Code and Edit.

  4. Photocopy NMF numbered and coded Form 1040, U.S. Individual Tax Return, pages 1 and 2, Forms W-2, Forms 1099, Schedule K-1, etc.and Forms 4688 and maintain in TIN order. Enter on log.

  5. Give Form 1040 to RACS assessment technician with a letter size cover sheet attached stating "DO NOT BILL TAXPAYER," unless a true balance due results after all credits are taken into consideration.

  6. Prepare all necessary documents; e.g., Form 3753 for manual refund if applicable and credit transfers from master file to 4610 account as needed.

  7. Do not release any documents to RACS, other than Form 3753 unless it is a Monday. Wait until the Monday after Form 1040 return posts to NMF and then release.

    Note:

    Not releasing documents other than Form 3753 (unless it is a Monday), prevents the Document Locator Number (DLN) from appearing on the Service Center Control File (SCCF) as aged (due to old Julian Dates in DLNs, which are based upon prior year transaction dates).

  8. If the 45-day interest free period has expired, interest must be calculated and included on Form 3753. The Form 3753 must then be signed by a manager or other authorized person and hand delivered to the scheduler with a photocopy of Form 1040, pages 1 and 2, together with photocopies of all supporting documentation.

    Note:

    Alert individual who breaks down Form 3753 that the pink copy is to be given to the reports analyst, who will then give it to the assessment desk Technician for attachment to original return.

  9. Each Monday, RACS will receive from the reports analyst, Form 3210 with Form 813 and numbered documents for processing. Ensure that the first journalization is completed and input to ANMF Block Control Screen and hand carried to NMF DBA or NMF Manager on the same day as received from the reports analyst.

  10. Once the documents are received from the reports analyst, the ANMF DBA will immediately input them into the ANMF System, via "Load Old Accounts/Transfer In" screen.

  11. Input TC 590 CC 19 to the master file tax period to prevent issuance of a taxpayer delinquency investigation (TDI) notice.

  12. Once processing is complete, prepare Form 2275, Records Request, Charge and Recharge, , and place in folder going to files. Remove return from Files folder and under cover of the Form 3210, send return to Statistics of Income (SOI) for photocopying.

  13. When DLNs for subsequent transaction documents (Form 2424, Account Adjustment Voucher and/or Form 3809) are received (on Mondays only), ensure they are input to the ANMF system on the same day as received, i.e., Monday.

  14. Once a Recap from ANMF has been generated and received, batched and journalized in RRACS, deliver Form 813 via Form 3210 to Data Control Manager or Lead for immediate entry to Good Block Proof Record on SCCF.

    Note:

    This requirement is to ensure none of the $1 billion Form 1040 NMF DLNs appear on the SCCF Age List.

Reviewing Quick, Prompt, Jeopardy and Termination Assessment Requests

  1. Review all requests to ensure they are complete.

    1. Use the latest revision of the Form 2859 that is found on the Multimedia Publishing website.

      Note:

      Any Form 2859 that has a zero in a blank field other than Part C, 5A will be rejected back to the requestor unless the transaction code requires a zero.

      Note:

      If a request is received for Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return and Part D contains information related to credit reduction wages there must be a TC 150 on the Form 2859, if not notify the originator that the request will be rejected.

    2. When requests are received they should include the requestor's name, address and telephone number. Form 2859 contains a chart of all required items for each type of return. If any Must Enter lines are missing, contact the requestor. See the following charts (Figure 3.17.244-1).

    3. When requests are being reviewed, you need to ensure that the total assessment amount does not exceed $999,999,999.99. Requests received that total more than $999,999,999.99 must be rejected back to the originator. The originator will need create multiple Forms 2859 to get the assessments done.

    4. All Forms 2859 must be signed by an "Authorizing Official" prior to sending to Accounting.

      Note:

      An electronic signature (reflecting authorizing official's SEID), original signature or stamped signature will be permitted.

    5. The AMA application will assign a DLN and generate Form 813 for journalization through RRACS. See Exhibit 3.17.244-4 for Blocking Series. Summary Record of Assessments (Form 23C which is the RRACS Report 006) must be signed before notifying the requesting office of the date of signature and the DLN Assignment.

      Note:

      Once the requestor has received acknowledgment of the receipted Fax, Summary Record of Assessments date, the DLN and any necessary corrections to the assessment(s), the original forms can be destroyed by the requestor.


      Important: Chief Counsel has approved destroying the original request which allows the IRS to treat the hard copy FAX/Scan as an original form for legal purposes.

       

    6. If the Statute of Limitations is not imminent, original returns may be sent to Input Correction before assessment so that correct tax, interest and penalties are assessed.

  2. KCSPC Only - If the return is for a Form 706, U.S. Estate Tax Return, and the estate is paying tax under the installment privilege, then the following additional information is required:

    1. Revised value of the closely held business; and

    2. Revised value of the adjusted gross estate (IRC 6166, 14-year installment privilege).

  3. The requestor is responsible for reversing all penalties incompatible with this quick, prompt or jeopardy assessment. Reversals that have been made should be noted on the request. Take no action if there is no indication on the request.

  4. OSPC Only - As of January 1, 2004, Business Master File (BMF) has been programmed to accept Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, MFT 76, manual assessments.

Time Frames

  1. Jeopardy and Statute cases must be assessed immediately. Quick and prompt assessments which request a specific assessment date must be made by that date. Quick and prompt assessments that are neither Statute Imminent nor request a specific assessment date (23C date) have a processing time frame of no longer than five days.

  2. Original requests for quick, prompt or jeopardy assessments are the source documents. When requests are made via fax machine, the requestor is required to also fax the source documents along with the request for quick, prompt or jeopardy assessment. The source documents include:

    1. Form 2859, Request for Quick or Prompt Assessment

    2. Form 2749, Request for Trust Fund Recovery Penalty Assessment

    3. Form 2644, Recommendation for Jeopardy/Termination Assessment

    4. Tax returns (when applicable)

      Note:

      Faxed Form(s) 2859 are considered the original request.

  3. If the volume of source documents is too large to fax, the source documents should be mailed to the campus immediately after faxing request for prompt, quick or jeopardy assessment. If source documents are not received within five (5) working days, follow up with the requestor to secure the source documents. If source documents are not received within five (5) working days after follow up request, release assessment request as is to Files. Source documents received after release of assessment request should be forwarded to Files for association.

Preparation of Form 3552, Prompt Assessment Billing Assembly

  1. Form 3552 is prepared from Form 2859, Request for Quick or Prompt Assessment Use Program and Function Code 420-75600. You can view the latest revision of the Form 3552 on the Multimedia Publishing website.

Description of Form 3552, Prompt Assessment Billing Assembly

  1. The top part contains entity and assessment information. All the following should be completed. The location of this information on Form 2859 is in parentheses:

    1. MFT

    2. Tax Period (Part C, line 2a)

    3. Assessment Date (23C date)

    4. Document Locator Number

    5. Employee IDRS # of requestor (Part B)

    6. Notice Date

    7. Name Control (Part A)

    8. Taxpayer Identifying Number (Part A)

    9. Form Number or "CVPN" for Civil Penalty (Part C, line 1)

    10. Plan/Report Number (Part C, line 2b)

    11. Tax Period Ended (Part C, line 2a)

    12. Taxpayer Name and address (Part A)

  2. The second part (numbered 1 thru 28) contains account adjustment information for updating the master file. Fields 1 thru 19 note which forms being assessed require entries. This information is in Part D of Form 2859. Line 23 (870 Agreement Date) should only be completed when the assessment is an audit or Appeals assessment, TC 300, 304 or 308. This information is in Part A of Form 2859.

  3. The third part (numbered 30 thru 37) contains the assessment and billing information found in Part C, on Form 2859.

    1. These entries must be TC 150, 290 or 300 and can be found in Part C, lines 3a, 4a, 4b or 5a of Form 2859; or the input of TC 294 or TC 298 with or without a TC 290 or TC 304 or TC 308 with or without TC 300.

    2. The use of TC 290/294/298 with TC 300/304/308, (e.g., use of TC 294 with a TC 304 and/or TC 300) is invalid. When TC 294, 298, 304 or 308 are input, an interest computation date is always required. When these transaction codes are used with TC 340, the Interest-To-Date is always required.

    3. The TC 294 or 298 can be listed on Line 12 of Form 2859 and on Column 30 of Form 3552. The interest computation date will be listed on the "Int. Comp. Date" field in Part A of Form 2859 and input on Line 22 of Form 3552. The 2 percent interest date (if applicable) will be listed on the "2% Int. date" field in Part A of Form 2859 and input on Line 21 of Form 3552. TC 340 and the Interest-To-Date will be listed on Line 17, Part C, of Form 2859 and Line 20 of Form 3552.

    4. Form 3552 may be completed with an interest computation date, interest-to-date and a 2 percent interest date. An interest computation date or interest-to-date is required by the criteria listed above. The 2 percent interest date is only entered if the large corporate underpayment (LCU) rate applies.

    5. All dates listed in the reference column should be the 23C date except for the Return Received Date (TC 610) found in Part C, line 3b on Form 2859 and netted interest dates found in Part C, Line 13 through 15 on Form 2859.

    6. Penalty and Interest assessments follow next on the form. The failure to pay (FTP) is an exception. The TC 270 is only assessed when the current and future FTP computations are to be restricted. The requestor of the assessment will indicate in the remarks area of the Form 2859, if future computations of Failure To Pay penalty (FTP) are to be restricted. The amount is then entered in column 28 of Form 3552. When it is not assessed and not to be included in the transfer balance, the FTP accrued through the 23C date is entered on its own line just above line 35 of Form 3552. It is added to the balance due in column 33 for the taxpayer notice. The computer will then generate and assess the penalty when payments are received. (Penalty and interest information is found in Part C lines 4c, 5a thru 15 and line 17 on Form 2859.)

    7. Lines 35 and 36 are civil penalty information. The Penalty Reference Number is a three-digit number found on Form 2859, Part C, lines 4c or 5b. The reference amount is the amount of the penalty found on the same lines.

      Note:

      If a PRN is a part of the assessment, you must access the penalty reference tool to obtain the explanation that needs to go out to the taxpayer.

    8. All other unassessed transactions, as well, as payments collected and credits that are posted on specific modules are entered in this part in column 29.

    9. The transfer balance, which is shown on line 36, will also be printed in the blank space after Item 52, Credit Reduction Wages. This is the total of all assessed tax, interest and penalties (except the FTP penalty) adjusted by Withholding Credits and Earned Income Credit changes.

    10. The balance due, column 33, is the total of all transactions both debits and credits on the form (including the FTP penalty).

  4. The fourth part (numbered 38 thru 54) contains special information for Form 940, Form 720, Quarterly Federal Excise Tax Return, Form 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapter 41 and 42 or the IRC, and Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. This information is found in Part D, lines 21a and 21b on Form 2859. If it is a Form 940, the state code and credit reduction wages must be present when there is a TC 150 (9312 and prior). Refer to Exhibit 3.11.154-14, Tax Years and Credit Reduction States.

    Note:

    If it is a Form 94X with a TC 150, Part D of Form 2859 must be completed.

Automated Manual Assessment (AMA) Program

  1. To start the program, navigate to the home page at: https://ama.web.irs.gov/AMAJboss/. The following screen will appear:

    Figure 3.17.244-1

    This is an Image: 57188001.gif
     

    Please click here for the text description of the image.

Add New Record

  1. From the AMA Main Menu, place your mouse over "AMA, Database, and then click on Add New Record" , to see the next window:

    Figure 3.17.244-2

    This is an Image: 57188002.gif
     

    Please click here for the text description of the image.

Document Locator Number (DLN) Block Assignment

  1. This screen allows a block to be assigned to one person, giving the capability for numerous employees to input records with similar assessment information simultaneously.

    If Field is: Then:
    Form Number Enter the Form Number from Form 2859, Part C, Line 1.

    Note:

    If the assessment is for MFT 35, enter Form 1040. The Form 1040 should be used for all MFT 35 requests.

    MFT The MFT is generated by the program based on the Form Number.

    Note:

    If the assessment is for Form 1040, you will need to input the MFT code. You must input the correct MFT as indicated on the Form 2859

    23C Date Enter the 23C Date shown on Part A, if specified. Assign a 23C date if the next available date box is marked.
    Assessment Type Enter the assessment Type.
  2. When all four fields have valid data in them, the program will display the next available block based on the information entered.

  3. When the program generates a DLN Block, it is considered assigned to the current user (See Figure 3.17.244-4).

    Figure 3.17.244-3

    This is an Image: 57188003.gif
     

    Please click here for the text description of the image.

  4. To close this window, click on the "Cancel" button to return to the "AMA Home page." .

  5. Review the data fields for validity and make any necessary corrections. If a correction is made, click on the "Refresh" button. This will release the block and assign a block based on the new information.

  6. If the information is correct, click on the "Accept" button, the following screen will appear:

    Figure 3.17.244-4

    This is an Image: 57188004.gif
     

    Please click here for the text description of the image.

Form 2859, Parts A and B (Main Input)

  1. Use Part A & B of Form 2859 to fill in the appropriate fields.

    1. District This field should contain the two-digit district code for your Service center. This field cannot be modified.

    2. Assess Type Generated by DLN Block Assignment Screen.

    3. SSN or EIN This field should contain a S if the TIN is a SSN or an E if the TIN is an EIN. This field cannot be modified.

    4. TIN Enter TIN. (Required field)

      Note:

      For Form 5329 Assessments (MFT 29), enter “P” at the end of the SSN (e.g. xxx-xx-xxxxP)

    5. Name Control Enter the Name Control from Part A. (Required field)

    6. Taxpayer Name Enter the Name from part A. (Required field)

      Note:

      If the assessment requires three name lines, the "Address 1" is used as a name line, enter the street address information in the "Address 2" field.

    7. Address Enter the Address from Part A. (Required field)

    8. City, State, Zip Enter the City, State and Zip in the appropriate boxes as found on Part A. (Required field)

      Note:

      To input a foreign address, enter the name of the country in the "City:" field and a period (.) in the "State" field (to indicate a foreign address). The "Zip" field should be left blank.

    9. 870 Agreement Date Enter the 870 Agreement Date (TC 300, 304 or 308 only) from Part A. (If present)

    10. Corr. Rec'd Date Enter the Correspondence Received Date from Part A. (If present)

    11. Employee IDRS # Enter the Employee Assignment Number from Part B. (Required field)

    12. 23-C Date Enter the 23C date shown on Part A, if specified. Assign a 23C if the next available date box is marked. This is a required field.

    13. 2% Interest Date Enter the 2 percent Interest Date from Part A. (If present).

    14. Int. Comp. Date Enter the Interest Computation Date from Part A. (If present).

    15. Form Number Enter the form number from Part C or pick up the form number from the drop-down list. This will cause the MFT code to appear in the box to the right.

    16. Period Ended Enter the Period Ended from Part C, #2a, in YYYYMM format.

    17. Period End Date Generated by the program.

    18. Plan/Report No. Enter the Plan/Report Number, Part C, #2b. (Required Field for MFT 46 and 76)

    19. Ret. Rec'd Date Enter the Return Received Date, Part C, # 3b. (Required for a TC 150)

    20. Interest to Date Enter the Interest/Interest-To-Date from Part C, #17. (Required for a TC 340)

    21. 270 or 777 Enter a TC 270 or TC 777 if there is one present.

      Note:

      This will cause another box to appear below for the transaction amount.

  2. To move to the next page of the form, continue pressing the [Enter] or [TAB] key through to the last field. Use the Enter button or click on the Part C tab to get to the next window when you’re in the last field on the page.

  3. After entering a Taxpayer Identification Number (TIN) in the "SSN" or "EIN" field, the program will check the database for assessments with the same TIN.

  4. If a match is found you will receive the following message.

    Figure 3.17.244-5

    This is an Image: 57188005.gif
     

    Please click here for the text description of the image.

  5. Respond to the message appropriately to continue processing the assessment information.

  6. An additional check is made to determine if the information being entered will duplicate an existing assessment.

  7. The duplicate assessment check is made after inputting the "Period Ended" field.

  8. The following message will appear allowing you to examine the existing assessment.

    Figure 3.17.244-6

    This is an Image: 57188006.gif
     

    Please click here for the text description of the image.

    Note:

    Do not continue inputting until you have completed research to determine if you are creating an exact duplicate.

Form 2859, Part C (Transactions)

  1. Use Part C of Form 2859 to complete this window.

    Figure 3.17.244-7

    This is an Image: 57188007.gif
     

    Please click here for the text description of the image.

    1. TC Enter the first Transaction Code (TC). Input is restricted to TC 150, 290, 298, 300 or 308. (Located on lines 3a, 4a, 4b and 5a of Form 2859.)

    2. Amount Enter the amount that corresponds to the TC.

    3. Ref # Enter the Penalty Reference Numbers (i.e., 618, 680, 681) from Line 4c or line 5b for (TC 290 or 300).

    4. Amount Continue entering TC's with amounts listed in Part C.

      Note:

      If a TC 150 was entered as the first TC, the second TC will be a 610.

    5. TC Continue entering the TC's with amounts listed in Part C.

      Note:

      TC 767 is invalid for BMF accounts. If listed on Form 2859, contact originator and state that it is being rejected and the TC will need to be changed to either a TC 290 or TC 300.

    6. Amount Continue entering the amounts that correspond to the TC(s).

    7. Date Dates may be required for some TC's. If dates are needed, the program will allow you to enter a date. (i.e., TC's 765, 767, 772 and 802)

      Note:

      The transaction date of any reversing transaction must be the same as the posted transaction.

    8. Transfer Balance Not a data entry field. It will appear as transaction and/or Penalty Reference Number and money amounts are input. This field will show a running total of the transfer balance.

      Note:

      The transfer balance should never be a credit balance.

    9. Total TC's & Ref Not a data entry field. Will appear as transaction and/or Penalty Reference Number money amounts are input. This field will show a running total of transaction and Penalty Reference Number amounts.

      Note:

      The total TC's and Ref amount cannot be a credit balance.

    10. Other Dates If a required date was not entered on Parts A and B, a message window will appear requiring you to enter the necessary information. The following examples illustrate specific messages for required missing date information.

      Note:

      If you forget to enter a "Return Received Date" or the "Interest To Date" and one is required, the applicable message will appear allowing you to enter the appropriate date.

      Figure 3.17.244-8

      This is an Image: 57188008.gif
       

      Please click here for the text description of the image.

      Figure 3.17.244-9

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      Please click here for the text description of the image.

  2. After you have completed Part C, check the "Transfer Balance" and "Total TC's & Ref" amounts. The "Transfer Balance" amount should be the same value as line 18 or line 22 of Form 2859, Part C.

    Figure 3.17.244-10

    Form Number Must Enter Lines Part C Choose One Set from Column 1, 2 or 3 Applicable Lines Part D Special Instructions
      1 2 3    
    Form 11–B, Form 11–C, Form 930, Form 990, Form 990–C, Form 990–T, Form 990–PF, Form 1041-A, Form 1041 Sch. PF, Form 1065, Form 2290, Form 4638 and Form 8038 Series. 3a, 3b 4a 4b None  
    Form 706 and Form 798 3a, 3b 4a 4b None Complete Part C, line 4c, if... a "return related" penalty is applicable but only if line 4a is for $0.00 or line 4b is completed. The only valid Penalty Reference Numbers for line 4c are 680, 681, 682 and 686
    Form 720, Form 4720, Form 5329 and Form 5330 3a, 3b 4a 4b 21a, 21b, 21c, 21d, 21e, 21f Complete 21c, 21d, 21e and 21f with each applicable date, if related to a Form 5330 abstract code.
    Form 940 3a, 3b 4a 4b 22, 23, 24a, 24b  
    Form 941 3a, 3b 4a 4b 1, 2, 3, 4, 6, 8, 9, 11, 12, 14, 15 Complete Line 1 for Form 941 posted prior to 12/31/2004. Complete Line 15 for Form 941 posted after 12/31/2004.
    Form 943 3a, 3b 4a 4b 1, 2, 6, 12  
    Form 944 3a, 3b 4a 4b 1, 2, 3, 4, 6, 8, 11, 12, 14, 15 Complete Line 11 for prior year Form 944.
    Form 945 3a, 3b 4a 4b 1, 2, 12, 17  
    Form 1040, Form 1041 and Form 1120 3a, 3b 4a 4b None Complete Part C, line 4c, if... a "return related" penalty is applicable but only if line 4a is for $0.00 or line 4b is completed. The only valid Penalty Reference Numbers for line 4c are 680, 681, 685 (MFT 02 and 30 only) and 686.
    Form 1042 3a, 3b 4a 4b 18 Line 18 is only valid with TC 150
    Form 8288 3a, 3b 4a 4b 21b  
    Form CT-1 3a, 3b 4a 4b 19 Do not make entries in Part D, line 19, before 1-1-1988.
    Civil Penalty (CVPN) 5a, 5b     None Do not enter an 870 Agreement date/Tax Court Decision date in Part A. Do not use Penalty Reference Numbers 680, 681, 682, 685, or 686 in Part C, line 5b.
    Closing Agreement 5a, 5b     None Complete for Form 990, Form 990-PF, Form 8038 Series or Form 5227.
  3. Click on the Part D tab to input data if applicable.

Form 2859, Part D

  1. Use Part D of Form 2859 to complete this window. You will enter an amount or item, only if present.

    Figure 3.17.244-11

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    Please click here for the text description of the image.

    1. Adjusted Total Income Tax Withheld Enter the amount from Line 1.

    2. Taxable Soc. Sec. Wages Enter the amount from Line 2.

    3. Taxable Soc. Sec. Tips Enter the amount from Line 3.

    4. Taxable Med. Wages-Tips Enter the amount from Line 4.

    5. Additional Taxable Medicare Wages and Tips (941) Enter the amount from Line 5.

    6. Exempt Wages-Tips Paid to Qualified Employees this Quarter Enter the amount from Line 6.

    7. Section 3121Q Tax Amount Enter the amount from Line 7.

    8. Fractions of Cents Enter the amount from Line 8.

      Note:

      Fractions of Cents must be a positive amount.

    9. Sick Pay Adj Enter the amount from Line 9.

    10. Current Quarter's Tips and Group-Term Ins. Adj. Enter the amount from Line 10.

    11. Qualified Small Bus. Credit Form 8974 (Form 941, 943, 944). Enter the amount on Line 11.

    12. Income Tax Withheld - Adj. Enter the amount from Line 12.

    13. Social Sec. & Med. Tax - Adj. Enter the amount from Line 13.

    14. Special Additions to Fed. Inc. Tax Enter the amount from Line 14.

    15. Special Additions to SS & Med. Enter the amount from Line 15.

    16. Total Income Tax Withheld from Wages. Enter the amount from Line 16.

    17. Tips Deemed Wages (IRC 3121q) Enter the amount from Line 17.

    18. Total Backup Withholding Enter the amount from Line 18.

    19. Gross Income Paid Enter the amount from Line 19; entry is only valid with TC 150.

    20. Adj. to RR Retirement (CT-1) Enter the amount from Line 20.

    21. Abstract Enter any Abstract Numbers Listed in 21a.

    22. Amount Enter the amounts listed in 21b.

    23. Exc. Fringe Benefit Enter the amount from Line 21c.

    24. Reversion Enter the amount from Line 21d.

    25. Date of Transfer (MFT 17 only) Enter the amount from Line 21g. This is a required entry when the assessment is for MFT 17.

    26. Taxable Wages Enter the amount from Line 22.

    27. Total Credit Reduction Amount Enter the amount from Line 23.

    28. State Enter the States Listed in 24a.

    29. Credit Paid to State Enter the amounts listed in 24b.

    Note:

    For Form 5329 (MFT 29) Assessments, an abstract number and amount must be present on Form 2859, Part D. If an abstract number is not present, contact the originator.

  2. On Form 941, Employer's Quarterly Federal Tax Return, if a TC 150 is being posted, there should not be an entry on line 1. For Form 941, where the TC 150 posted prior to 12/31/2004, Line 12 should be blank and there should be an entry on line 1. The only time you should have an amount for Social Sec. & Med. Tax Adjustment (Line 11) is when the Form 941, TC 150 posts prior to January 1, 2005, and there is an amount for Fractions of Cents, Sick Pay or Other. The only other time you will have an entry in Line 11 is if a Form 941 TC 150 posted after January 1, 2005 or there was no TC 150 and there is an amount on Line 7e, Prior quarters' SS and Med taxes, Form 941 (rev 1-2005) or an amount is entered in Other for Form 941 (rev 1-2004) and prior.

    Form 941 Assessments
    IF.... AND.... THEN....
    A TC 150 is being posted   There should not be an entry on Line 1, Part D of 2859
    The TC 150 posted prior to 12/31/2004   Line 12 should be blank and there should be an entry on Line 1, Part D of 2859
    The TC 150 posts prior to January 1, 2005 There is an amount for Fractions of Cents, Sick Pay or Other You should have an amount for Social Sec. & Med. Tax Adjustment on Part D of 2859
    TC 150 posted after January 1, 2005 or there was no TC 150 There is an amount on Line 7e (941 1/2005 rev) or an amt in “Other” (941 1/2004 rev) You should have an amount for Social Sec. & Med. Tax Adjustment on Part D of 2859
  3. Assessments for Forms 941 are required to pass a unique validation. Entries on Part D, items 1, 5 through 14, plus tax computed for items 2, 3 and 4 are programmatically compared to the TC 150/290 entry on Part C. Only the whole dollar amount from the increase in tax (TC 150, TC 29X, TC 30X) entry and the Form 941 Check Figure will be compared despite the appearance of cents for each entry. A Form 941 or Form 944, Employer’s Annual Federal Tax Return, assessment will be considered valid if the increase in tax dollar value and the Form 941/944 Check Figure dollar values are within $1 of each other.

  4. The following example illustrates a scenario where the cents from the TC 290 entry and the Form 941 Check Figure are not exact. Despite this discrepancy, AMA has been programmed to allow the assessment to pass the validation criteria because the dollar values are within $1. This validation criterion applies only to assessments on Form 941 and Form 944. Assessments for Forms 942, Forms 943 and Form 945, Annual Return of Withheld Federal Income Tax, will continue to validate TC 150 and TC 290 entries on Part C against items 1 and 11 on Part D.

    Figure 3.17.244-12

    This is an Image: 57188037.gif
     

    Please click here for the text description of the image.

Show DLN

  1. When you have completed Part D, press the [F2] Key or click on [Show DLN] tab.

    Figure 3.17.244-13

    This is an Image: 57188011.gif
     

    Please click here for the text description of the image.

  2. To save the current record and begin entering another assessment in the same block, click on the "New Record" button.

  3. To save the current record and begin entering an assessment in another block, click on the "New Block" button.

  4. The "Save" button will save the record and exit to the AMA Main Menu.

  5. To exit the AMA Main Menu without saving, click on the "Exit" button.

    Note:

    The block will be locked until the "New Block" button is clicked, "Exit" button is clicked or the block has less than 100 documents.

    Note:

    There are instances when the DLN can be assigned, but the assessment may have errors. These errors usually do not affect the DLN that has been assigned. Review the error message and make the necessary corrections before pressing the "Save" or "New Record" buttons.

Key Verify Existing Records

  1. To verify a block of work, place your mouse over the AMA drop down, Database and then click on the "Key Verify Records" .

    Figure 3.17.244-14

    This is an Image: 57188012.gif
     

    Please click here for the text description of the image.

  2. The following screen will appear.

    Figure 3.17.244-15

    This is an Image: 57188013.gif
     

    Please click here for the text description of the image.

  3. Either enter the DLN block to key verify or select a DLN from the drop-down menu labeled DLN Block to KV. Then click on the Get button.

  4. The following screen will appear.

    Figure 3.17.244-16

    This is an Image: 57188014.gif
     

    Please click here for the text description of the image.

    Note:

    The yellow background indicates fields that have not been Key Verified. The field background color will change to white as it is Key Verified.

  5. Input all required fields per Form 2859. See example below:

    Figure 3.17.244-17

    This is an Image: 57188015.gif
     

    Please click here for the text description of the image.

  6. Special Key Verification: An enhancement has been added to the Key Verify process that will help AMA users process multiple assessments for the same taxpayer. A special key combination, CTRL-E, has been added that will allow users to bypass re-input of duplicated entity information.

    Note:

    If the taxpayer entity information is corrected during the KV process for one assessment, all subsequent assessments must be individually corrected. Do not use CTRL-E.

  7. Instructions for using CTRL-E:

    1. Key Verify the first taxpayer assessment in its entirety before proceeding to the next assessment.

    2. Place the cursor on the "Assess. Type" field.

    3. Simultaneously press the key combination CTRL-E.

    4. The following fields will be filled:

      -SSN or EIN
      -TIN
      -Name Control
      -Taxpayer Name
      -Second Name
      -Address 1
      -Address 2
      -City
      -State
      -Zip
    5. The cursor will then move to the field "870 Agree Date " . Complete the Key Verify process for the assessment.

    6. Proceed to the next assessment and follow the instructions outlined in steps 2 and 3 until all assessments for the taxpayer have been key verified.

  8. Normal Key Verify Processing: If the information entered into a field during the key verify process does not match the information entered originally, you will be prompted with the following message.

    Figure 3.17.244-18

    This is an Image: 57188016.gif
     

    Please click here for the text description of the image.

  9. If the "Original Input" information is correct, click on the "Yes" button, otherwise, click on the "No" button to accept the key verified information.

    Note:

    Changing the values in fields associated with the DLN can be input during the KV process. However, modifying the original values of "Assess. Type" , "SSN or EIN?" , "Form Number" , or "23C Date" during the KV process indicates that the assessment is not controlled correctly and a new DLN should be assigned.

Form 2859, Part C (KV)

  1. Enter all required fields in Part C, per Form 2859. When you have completed entering, continue onto Part D.

    Note:

    A check mark to the left of each transaction code indicates that the code was correctly verified.

    Figure 3.17.244-19

    This is an Image: 57188017.gif
     

    Please click here for the text description of the image.

Form 2859, Part D (KV)

  1. Enter any applicable data in Part D.

    Figure 3.17.244-20

    This is an Image: 57188018.gif
     

    Please click here for the text description of the image.

  2. Click on Show DLN tab to complete the verification.

Show DLN Screen Review

  1. The Show DLN screen is shown in the figure below. Review the information on the Show DLN screen for accuracy before continuing.

  2. The "Completed" and "Save" buttons will modify the status of the assessment to "Key Verified" . Save the key verified information to the database and exit to the Main Menu.

  3. The "Next" button will modify the status of the assessment to Key Verified, save the key verified information to the database and retrieve information for the next DLN in the block to be key verified.

  4. To exit to the AMA Home page without saving, click on the "Exit" button.

    Note:

    Key verified data is checked for consistency after clicking on the "Completed" , "Next" , or "Save" buttons. If an error exists, an error message will appear that requires a change be made to the assessment before the key verified information can be saved to the database.

    Figure 3.17.244-21

    This is an Image: 57188019.gif
     

    Please click here for the text description of the image.

Search

  1. To search for an assessment currently in the database, select AMA, Database and then click on the "Search" option. This is a useful tool for verifying the status of an assessment, reprinting the Form 3552 or accessing an assessment to make corrections.

    Figure 3.17.244-22

    This is an Image: 57188020.gif
     

    Please click here for the text description of the image.

  2. After clicking on the "Search" option from the AMA Main Menu, the Search Form will appear as shown in Figure 3.17.244-23.

  3. The search form allows you to search the database based on these search criteria:

    • DLN Block

    • TIN

    • Form Number

    • 23C Date

    • Name Control

  4. Input search criteria in any or all of the six fields and click on the Search button. The search boxes do not need to be completely filled out to begin a query. For example, 94 could be entered in the form field to get all results with a form number that begins with 94. Detailed assessment information will automatically appear in the lower portion of the screen based on the search criteria.

    Figure 3.17.244-23

    This is an Image: 57188021.gif
     

    Please click here for the text description of the image.

  5. The Search Form will allow you to retrieve the assessment information to make corrections or print a Form 3552.

  6. To edit assessment information, position the mouse pointer over the DLN to be retrieved and double click. The Research Form will appear as shown in Figure 3.17.244-23.

  7. Make any necessary changes and click on the "Save" button.

    Figure 3.17.244-24

    This is an Image: 57188022.gif
     

    Please click here for the text description of the image.

  8. Clicking on the "Save" or "Exit" buttons will close the Research Form and reopen the Search Form to view any corrections that were made. The following example shows a corrected record.

    Figure 3.17.244-25

    This is an Image: 57188023.gif
     

    Please click here for the text description of the image.

  9. To cancel a record after it has been completely input, retrieve the assessment through the Search utility. After the assessment is visible in the Research screen select the Record menu, then select Delete.

    Note:

    You can choose to either delete only the record you pulled up or the entire record block.

    Figure 3.17.244-26

    This is an Image: 57188024.gif
     

    Please click here for the text description of the image.

  10. To make an extra copy of the Form 3552, click on the printer button on the right side of the DLN in the Search screen.

    Note:

    This action will download the Form 3552 to your desktop where you can print it on the printer of your choice.

    Figure 3.17.244-27

    This is an Image: 57188025.gif
     

    Please click here for the text description of the image.

Print 3552 by DLN Block

  1. To print Form 3552, click on the "Get forms by DLN Block" menu option.

    Figure 3.17.244-28

    This is an Image: 57188026.gif
     

    Please click here for the text description of the image.

  2. The Form Print Utility page will appear as shown below.

    Figure 3.17.244-29

    This is an Image: 57188027.gif
     

    Please click here for the text description of the image.

  3. Click on the down arrow in the status box to make your selection.

  4. Click on the down arrow next to the choose 23C date to select a date.

  5. Highlight the DLN Block you would like to print and then click on the button that says Get Selected Block.

    • Putting a check by Corrected Notice or Duplicate Bill causes each subsequent Form 3552 to be printed with the checked information on them.

    • The check boxes for Parts 1,2,3,4 and 5 will set the pages of Form 3552 to be included in the generated PDF document. All five pages are selected by default so you must de-select the unwanted pages.

  6. A list of available DLN blocks will be displayed in the “Select whole block(s) to print” field. Select the block(s) for the specified 23C Date.

  7. Select the pages of Form 3552 to be printed by checking the desired check boxes next to the desired parts of the form to be generated.

  8. When you are ready to generate and download the Form 3552 document, click on the button labeled Get Selected Block. You will be prompted to open or save the PDF document for printing. To generate a Form 813 for the DLN block, click on the Get Form 813 button.

  9. Click the Exit button to exit the Form Print Utility and return to the main AMA menu.

Print Form 3552 Individually (Corrected Notice and Duplicate Bill)

  1. To print an individual Form 3552, select AMA from the menu bar, select "Database" and then click on Search.

    Figure 3.17.244-30

    This is an Image: 57188029.gif
     

    Please click here for the text description of the image.

  2. Query the AMA database for the specific DLN to be printed.

  3. To print an individual Form 3552, left click on the button with the printer icon and 3552 located to the right of each DLN in the search result as shown below:

    Figure 3.17.244-31

    This is an Image: 57188030.gif
     

    Please click here for the text description of the image.

  4. Once selected, the following screen will appear.

    Figure 3.17.244-32

    This is an Image: 57188031.gif
     

    Please click here for the text description of the image.

  5. In addition to printing a single Form 3552, the form can be identified as a "Corrected Notice" , "Duplicate Bill" or Both.

    Note:

    The "Corrected Notice" and "Duplicate Bill" options are available only during the printing of a single Form 3552.

  6. Check the corresponding box(s). This will cause the system to place the statement on the Form 3552 directly under the "Tax Period Ended" .

    Note:

    To add the appropriate statement to Form 3552, check the corresponding box or boxes. Setting a check-box as un-checked will cause Form 3552 to print without the statement. Each statement will be placed on Form 3552 directly under "Tax Period Ended."

  7. Click "OK" button to generate a PDF or Cancel to abort the operation.

Print Form 813

  1. The systemic TC 971 AC 665 is sent to IDRS when the Form 813 is printed.

    Note:

    The TC 971 AC 665 does not post systemically for MFT 17 cases that have a SSN with definer V or W. You must input the TC 971 AC 665 manually for these cases.

  2. To print Form 813, select AMA, Printing and Get Forms by DLN Block from the menu bar.

    Figure 3.17.244-33

    This is an Image: 57188032.gif
     

    Please click here for the text description of the image.

  3. The Form Print Utility page will appear.

    Figure 3.17.244-34

    This is an Image: 57188033.gif
     

    Please click here for the text description of the image.

  4. Click on the down arrow in the status box to select, "3552 Printed" .

  5. Click on the down arrow next to the Choose 23C Date.

  6. Highlight the appropriate DLN's.

    Note:

    You can highlight the DLN Block by selecting it with your mouse or navigating to it with your arrow keys and pressing the space bar.

  7. Click on the Get Form 813.

TC 971 Errors

  1. Daily, an output file is created by AMA. This output file is sent to Standardized IDRS Access (SIA) so that the TC 971 AC 665 can be placed on the module that has had the manual assessment completed.

  2. The TC 971 is sent to IDRS on the day the Form 813 is printed. The TC 971 will appear on the module in PN status up to three days after the 23C date and will contain the transaction date of the 23C date.

  3. Daily each site needs to check for any TC 971 errors that may have occurred by taking the following steps:

    • Click on Tools

    • TC 971 Errors

  4. If there are any errors, export the file to Excel and save for review the next day. Click on reset next the applicable record to send the file through the automated process a second time.

  5. If the same record errors out a second time, it will be necessary to post the TC 971 AC 665 using the manual IDRS process.

Summary Report

  1. Select AMA, Printing and the Print Status from the menu bar.

    Figure 3.17.244-35

    This is an Image: 57188034.gif
     

    Please click here for the text description of the image.

  2. Select a "Report Type" from the drop-down box. The form will then display how many documents were:

    • Input

    • Key Verified

    • 3552 Printed

    • 813 Printed

    • Corrected

    • All

  3. Click on Print to print either the inventory, status or the summary report.

    Figure 3.17.244-36

    This is an Image: 57188035.gif
     

    Please click here for the text description of the image.

Corrections of Math Errors on Returns Involving Quick and Prompt Assessments (Form 3552)

  1. If a math error on the return results in an increase of tax, TC 290 should be used with the appropriate penalty and interest codes.

    1. Prepare a new Form 3552 for the additional assessment and forward to the Revenue Officer or the requestor.

    2. Enter all appropriate adjustments in Section 02 of Form 3552 for Form 940, Form 941, Form 942, Employer’s Quarterly Tax Return for Household Employees, Form 943, Employer’s Quarterly Tax Return for Agricultural Employees, Form 944, Form 945, etc.

  2. If a math error on the return results in a tax, penalty or interest decrease, the requestor of the assessment must be notified. Forward a copy of the return and a copy of the Form 3552 to the requestor for abatement action.

Abating Unpostable Doc Code 51 Assessments (KCSPC NMF Only)

  1. When unpostable prompt, quick or jeopardy assessments occur due to missing entity information, contact should be made with the originator of the request to obtain what's needed.

  2. If the unpostable assessments cannot be corrected because of incomplete entity information (TIN and name control), instruct the Unpostable function to URC 8 Code the case to Rejects and process through Non-Master File (NMF) Accounting.

  3. Rejects will prepare Form 1331-B, Notice of Adjustment. Form 1331-B may be attached to source document, if available, or Form 3552.

  4. Accounting will enter NMF 6(51) DLN on Form 3552 (C) and as a cross reference on Form 1331-B.

  5. Rejects will code the MF register with the NMF DLN and then release the unpostable condition.

  6. Form 1331-B will be given a 6(51) DLN and sent to the Scheduling Team for preparation of Form 2188, Voucher and Schedule of Overpayment and Over Assessment.

  7. Form 3552 will be sent to NMF to be established on the ANMF database (do not bill the taxpayer; abatement will follow). Prepare Form 2275 to send to Files with re-file DLN. Form 3552 will be kept in the NMF for backup.

  8. Form 1331-B and Form 2188 will be forwarded to RACS for journalization of the abatement.

  9. The RACS team will forward 1331-B to NMF to post abatement to the ANMF account.

Civil Penalties (KCSPC NMF Only)

  1. Requests for civil penalty assessments requiring quick or prompt action will be received by the NMF Team on Form 8278, Computation and Assessment of Miscellaneous Penalties. A Form 3552, Prompt Assessment Billing Assembly, will be prepared for transfer to the civil penalty module on master file. MFT 55 will be used for IMF assessments and MFT 13 for BMF assessments.

  2. The specific Penalty Reference Number and penalty code section to be assessed will be marked on Form 8278. Each penalty code section has a specific statement that will be used as a stuffer notice, which will be included with the taxpayer notice, Parts 3 and 4 of Form 3552. Transaction Code 290 with a zero-money amount will be used for transfer in purposes. The Penalty Reference Number for each specific IRC must be listed with the penalty money amount.

  3. Requests for any joint penalty assessments, in conjunction with a jointly filed frivolous return, will be received on Form 5734, Automated Non-Master File (ANMF) Assessment Voucher. Joint penalty liabilities must be processed through ANMF per IRM 3.17.46, Automated Non-Master File Accounting.

  4. Prepare Form 3552 for Civil Penalties.

    1. The first reference line contains the 23C date, TC 290 and zero money amount.

    2. The second reference line contains the literal "Penalty Reference Number" , the Form 8278 Penalty Reference Number and the penalty money amount.

    3. The penalty money amount will be carried forward to the Transfer Balance.

    4. Stuffer statements for explanation of civil penalty assessments on Form 3552 must be prepared using the Penalty Explanation Tool.

Monthly Form 941 and Form 720

  1. As of January 1, 2012, monthly filing and special deposit procedures are no longer applicable. Revenue officers must ensure that the monthly filing and/or special deposit procedures are no longer used. Employers must file quarterly Forms 941, Employer's Quarterly Federal Tax Return, beginning with the first quarter of 2012.

  2. The final quarter to be processed using combined Form 941M, Employer's Monthly Federal Tax Returns, under monthly filing is the period ending December 1, 2011.

  3. Any Forms 941M received beyond 201112 must be returned to the originator.

Statute of Limitations Expiration Cases (Protective Manual Assessments PMAs)

  1. In Statute of Limitations expiration cases, assessments may be made without preparing Form 3552 or Form 6335 immediately thereafter.

  2. This may be accomplished by making the assessment directly from Form 2859 with source documents. Form 2859 will be numbered and assessed.

  3. After assessment, Form 2859 should be suspended until it is determined by the Statute or Tax Equity Fiscal Responsibility Act (TEFRA) Team that research either substantiated the assessment or that abatement action is necessary. If substantiated, prepare Form 3552 or Form 6335 in the normal manner.

  4. If full abatement action is necessary, Form 1331-B should be prepared by the originator and certified for the amount of the over assessment. The current version of the Form 1331-B that is on the publishing website, must be utilized. If a previous revision of the form is received, it should be rejected back to the originator.

  5. Upon receipt of the Form 1331-B, you should ensure that a received date is placed on the form.

  6. The Form 1331-B must contain the following information at a minimum;

  7. The upper portion of the form should be completed with the EIN/SSN, Form, MFT, Tax period and Name and address fields.

  8. Section I should contain the following:

    1. A statement instructing the abatement or reversal of the previously submitted assessment

    2. The 23C date

    3. The DLN

    4. The reversal transaction codes with the applicable money amounts

    5. The date and name of employee completing the request

  9. Section II should be completed with the applicable totals.

  10. The Form 1331-B must be signed by the approving official in the originating operation. Form 1331-B should not be sent to the taxpayer. Form 3552 or Form 6335 should not be prepared.

    Note:

    If there is any missing information on the Form 1331-B, contact the individual submitting the request to obtain the missing information. If the requested information is not received within three days, reject the request back to the originator, under cover of a Form 3210. Ensure that the Form 3210 provides the reason for the rejection.

  11. For full abatements, within 30 - 45 days (sometimes sooner) Accounting will receive another "packet" of work from Statute. The packet should contain the following items:

    • A Form 12305, Routing Code Slip (buck slip), which states full abatement

    • Three copies of Form 1331-B

    • One copy of Form 2859

    • Copy of Form 3552

  12. Accounting will verify the information is correct and matching between the Form 1331-B and the Form 2859. Everything should match for a full abatement including taxpayer name, SSN, address, dollar amounts, tax year, etc. If there are any differences, reject back to the originator. If everything is perfect, take the following actions:

    • Associates three copies of Form 1331-B, the copy of Form 2859 and copy of Form 3552.

    • Annotate “PMA” under the Form 1331-B Title, Notice of Adjustment, and initial and date the top left corner.

    • Prepare a Form 2188 for each "packet" and place in groups of 25 in red folders. The schedule number, date of input, District Office, Class of Tax, MFT, tax year and PMA are all entered on the Form 2188.

    • The schedule number gets written on all three copies of Form 1331-B.

    • All "packets" are reviewed and signed. Each step of review is annotated on a Form 14074, Action Routing Sheet.

    • The department manager signs each Form 2188.

  13. The folders are taken to the RACS team. Full abatements are journaled and copies are maintained in files.

  14. Once journal action is completed, access IDRS and input a TC 972 AC 665 on the appropriate tax modules.

  15. Partial abatements may be handled similarly, except second journals would reflect the portion in process to the master file or non-master file account involved, and the abatement transaction reflected on Form 3552 or Form 6335 prepared from the Form 2859.

  16. If assessments are not abated or substantiated, follow-up with the requestor within 30 days for a determination. If a response to follow-up is not received within 50 days from the date of assessment, mail the notice to the taxpayer. This will ensure that statutory notices required on certain types of assessments are issued to taxpayers within 60 days of the date of the assessment as outlined in IRM 3.17.46.7, Automated Non-Master File Accounting, Detailed NMF Notice Issuance Report.

Dyed Diesel Fuel and Dyed Kerosene Penalty Assessments (KCSPC Only)

  1. The tax imposed by IRC 4081 on diesel fuel and kerosene does not apply to diesel fuel and kerosene that is dyed red under guidelines provided by Treasury Regulations. Generally, dyed diesel fuel and dyed kerosene may not be used for taxable uses, such as use in a highway vehicle that is registered or required to be registered for highway use.

  2. A penalty generally is imposed by IRC 6715 on any person that uses, holds for use, sells or holds for sale dyed diesel fuel or dyed kerosene for a taxable use. IRC 6715 also imposes a penalty on any person that willfully alters or attempts to alter the dye strength or composition of dyed fuel and on any person that knows such fuel is so altered and sells or holds such fuel for sale for a purpose that person knows to be a taxable purpose.

  3. Fuel Compliance Officers (FCO) are responsible for preparation of Form 8278 and Form 2859. The FCO must obtain group manager approval of the documents and case file before they are forwarded to the SPC for quick assessment.

  4. The penalty assessments will be processed as a "Quick" Assessment (Document Code 51) depending on criteria described in IRM 3.17.244.3.2 Quick Assessment.

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

  1. Form 5329 is used to report additional taxes on IRAs and other qualified retirement plans.

  2. The Form 5329 includes both income tax and excise tax.

    Note:

    Generally, Form 5329 income tax is a MFT 30 assessment and Form 5329 excise tax is a MFT 29 assessment.

  3. For MFT 29 Assessments:

    • If not present, edit Form 2859 with a "P" at the end of the TIN.

    • In Part D, ensure an abstract number is present on Line 22a and a dollar amount is present on Line 22b. If not present, contact the originator.

    • Input to AMA as Form 5329 (MFT 29) with the applicable abstract number and dollar amount.

  4. Journal Instruction for MFT 29:

    • Annotate Form 813 with debit to 4120.

    • AMA will generate a DLN with Tax Class 0. Journal on RRACS as Tax Class 4.

    • Perform a second journal to debit (DR) 4220 and credit (CR) 4120.

Numbering of Manual Assessment Documents for Transfer to the Master File

  1. Number assessment documents with a transfer-in DLN (using Document Code 51). Prompt, quick and jeopardy assessment transactions will be documented on Form 3552, Prompt Assessment Billing Assembly.

  2. Form 8166, RACS Reconciliation Sheet, Form 813, Form 2859, Request for Quick or prompt assessment and Form 3552 should be attached together. All Form 3552 should be numbered with Document Code 51 in the blocking series as shown in Exhibit 3.17.244-6.

  3. Check the RACS Reconciliation Sheet for the cycle of the batch of work being released.

    1. Check to identify Form 941-M. If Form 941-M is present, give that batch of work to the technician working them. Do not work the block until the date of the block slip for that particular week comes up. Monthly Form 941s should be held by the Area Office (Collection Function) until all three months have been received. A regular Form 941, Employer's Quarterly Federal Tax Return, is prepared from them and processed as a normal Form 941.

    2. Separate BMF Finals, prompt and jeopardy assessments. Discard the Form 1332, Block and Selection Record, if attached.

  4. Form W-4, Employee’s Withholding Allowance Certificate, civil penalty assessments, blocking series 139, are single number blocking series. Single number blocking series can only be used once during a day's work. Accumulate these types of assessments and do not process until the end of the day (in doing so, you can input up to 100 items at a time), at which time you can also prepare the Form 3552.

  5. If a CI cover sheet is attached, do the following:

    1. Remove a carbon copy of Form 2275, if attached.

    2. Staple Part 1 of Form 3552, Form 2859 and carbon copy of Form 2275 together. Paper clip Form 813 to the front. This goes in for batching and IDRS input.

Edit Form 3552

  1. Code and edit each Form 3552 in preparation for transcription under IRM 3.24.21, ISRP System, Credit and Account Transfers . Scan the document to assure the accuracy of all items including, tax period, master file Tax (MFT) Code, Transaction Code and Transaction Date. For MFT 58 and 78 SSN only, enter the TIN type of "0" . Use a hyphen "0" after the SSN.

  2. Verify name control to the right of "Name Control" on the top of the form.

  3. Verify that the Agreement Date matches the 870 date from Examination or Appeals.

  4. Credit Reduction State and amount must be present on Form 3552 with TC 150 when the tax class is 8 and the MFT Code is 10 (BMF, Doc Code 51).

    1. Enter the total taxable Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, wages (line 5 Total Taxable Wages).

    2. Enter the Total Amount of Credit Reduction (line 6, Total Credit Reduction) if applicable.

    3. Enter the State Code and Credit Reduction Wage amount for each state when there is a TC 150 (line 6). All states in which wages are paid should be entered whether or not subject to credit reduction for the tax period. Enter zeroes if Credit Reduction Wages are not applicable for the state for the tax period (9312 and prior). See Exhibit 3.11.154–12, for Tax Years and Credit Reduction Rates.

  5. Verify the transaction date of any reversal Transaction Codes listed on Form 3552. For instance, the date for TC 765, TC 767, TC 772 or TC 802 must match the date of the transaction it is attempting to reverse on the master file. If not the same, line through the date on Form 3552 and change to the correct date.

  6. If TC 636 or 637 is shown on the Form 3552, change to 630 or 632 respectively. Line out transaction date. Enter a two-digit appropriation code "02" for a credit or "03" for a debit on the right side of the reference column.

  7. If the Team is contacted by Unpostable's personnel, direct the inquiry to the requestor of the assessment.

  8. Use Function Code 420 and Program Code 75600 for Coding and Editing this Form.

General Information Mailing Form 3552

  1. After Forms 3552 are printed, they are then prepared for mailing. Several conditions must be considered before mailing each bill. The following list identifies primary considerations to make in mailing Form 3552.

    1. If the Form 2859, Request for Quick or Prompt Assessment, has the words "IRC 6161, IRC 6166, or STATUS 14" in the remarks area, route the Form 3552 Parts 2, 3 and 4 to the Installment Billing Function. DO NOT mail the bill to the taxpayer or the power of attorney.

    2. If the assessment is a prompt (including some monthly returns) or jeopardy, mail Form 3552 Parts 2, 3 and 4 to the requestor of assessment. DO NOT mail bill to the taxpayer, or to the power of attorney, unless the originator has requested that the notice be sent directly to the taxpayer or the power of attorney.

    3. If the assessment is a jeopardy (Block 100-109) and is for Income, Estate or Gift taxes, type the following on the bottom of Form 3552: "Assessment made pursuant to Internal Revenue Code 6881. A statutory notice will be issued within 60 days from the date of this form." Follow mailing instructions in (b) above.

    4. If the assessment is a jeopardy (block 100-109) and is for other than Income, Estate or Gift taxes (for example, Employment or Excise taxes), type the following on the bottom of Form 3552, Part 3: "Assessment made pursuant to Internal Revenue Code 6862." Follow mailing instructions in (b) above.

    5. If the assessment is a prompt, quick or jeopardy, Form 2749 MFT 55, Penalty Reference Number 618, mail Form 3552, Parts 2, 3 and 4 to the requestor of the assessment and send a copy of the Form 2749 to the Trust Fund Recovery Team in the Ogden SPC. Do not mail bill to the taxpayer or to the power of attorney.

  2. If the assessment is a quick assessment without any of the conditions listed above, mail Form 3552, Parts 3 and 4 to the taxpayer. Part 2 should be sent to the requestor unless otherwise specified.

    1. When a power of attorney (POA) or a second address is indicated on the Form 2859, Request for Quick or Prompt Assessment, mail a copy of Form 3552 to that POA or second address in addition to the taxpayer.

    2. If the assessment is made under a section of the Internal Revenue Code that requires the use of a Penalty Reference Number, the Civil Penalty Explanation and reasonable cause statements must be typed, use the Penalty Language Tool to generate the narrative. See IRM 3.17.244.8.1 for directions for accessing the Penalty Explanations Tool.. If the Penalty Reference Number is not listed in the Penalty Language Tool , contact your CFO headquarters IRM analyst for the narrative.

      Note:

      When the Form 3552 is being mailed directly to the taxpayer, a notice explaining the civil penalty reference number assessment must be mailed with the Form 3552. Do not send the Notice when the Form 3552 is being sent to the POA or to a second address. See IRM 3.17.244.8 for instructions on preparing the notice.

    3. For quick assessments involving Tax Motivated Transactions (TMT), Reference Numbers 221 and 222 with the appropriate amounts will be entered in Items 22a and 22b on Form 2859. These items must be entered into the "Abs. No." field and "Amount" field on Form 3552. The transfer-in process will allow posting of the reference information to master file through these fields.

Penalty Language Tool Instructions

  1. To prepare a notice to be sent to the taxpayer, which explains the penalty that has been assessed, you must access the Penalty Language Tool that is located on the Servicewide Penalties website. Complete the following steps to access the tool:

    • Access the Penalties Knowledge Base (KB) website at https://portal.ds.irsnet.gov/sites/vl015/Lists/IRC6751ProceduralRequirements/DispItemForm.aspx?ID=1

      Note:

      Do not download and save the Penalty Language Tool to your desktop. All previous versions should be deleted. Bookmark it or save it to your "Favorites" and use it when needing to access the tool. Downloading and saving the tool to the desktop prevents users from receiving any future updates.

    • Click the Penalty Language Tool box to the right.

    • Click Open when the message box Do you want to open Create_Explanation_for_Form_3552.xls from portal.ds.irsnet.gov appears.

  2. Once the tool has been opened on your desktop, complete the following actions to print the applicable explanation to be sent to the taxpayer:

    • Click Start.

    • Enter the Penalty Reference Number (PRN).

    • Enter the applicable Tax Year for the assessed penalty.

    • Check either the applicable master file in the IMF/BMF box

    • If the Form 3552 reflects a balance due, check the applicable box.

    • Enter the balance due in the Total Amount in Notice box, if applicable.

    • The notice date will self-populate with the current date.

      Note:

      It is up to the campuses to determine when to print the notices. However, the notice date should be the 23C date.

    • Click the View Explanation button.

    • Verify that the balance due amount is correct.

    • Print via the Excel Print icon on the toolbar or click the preview button and print from the preview screen.

    Note:

    When exiting the Penalty Language Tool, do not save changes.

Undeliverable Form 3552

  1. When a Form 3552 is returned undeliverable, research IDRS for a new address. If a new address is found mail the Form 3552 to new address.

  2. If no new address is found, mail Form 3552 out a second time.

  3. If Form 3552 is undeliverable for a second time, send the form to be associated with the backup assessment documents. This will provide back-up if the taxpayer states at a later date that they never received the bill.

Record Retention

  1. The file copy of the Form 3552 should be kept in a secure cabinet for a minimum of one year after processing and should then be sent to the Records Center for storage. See Document 12990, Records Control Schedule, for further clarification.

Taxpayer Advocate Case Procedures, National Service Level Agreement (SLA)

  1. The National TAS has reached agreements with the commissioners of the W&I Division, SB/SE Division, TE/GE Division, CI, Appeals and LB&I Division that outline the procedures and responsibilities for the processing of TAS casework when either the statutory or delegated authority to complete case transactions rest outside of TAS. These agreements are known as service level agreements (SLAs).

  2. The SLAs are located at http://tas.web.irs.gov under the heading "Policy/Procedures/Guidance" .

  3. Per the Taxpayer Bill of Rights (TBOR), taxpayers have the right to expect a fair and just tax system which provides taxpayers with the opportunity to have their facts and circumstances considered when it might affect their underlying liabilities, ability to pay or ability to provide information timely.

  4. Taxpayers have the right to receive assistance from the TAS if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through normal channels. For additional information on the TBOR, visit http://taxpayeradvocate.irs.gov/About-TAS/Taxpayer-Rights

Service Center Control File (SCCF)

  1. Each document is assigned a (DLN).

    1. The DLN is established on the SCCF prior to the document being processed and remains on the SCCF until either accountability is transferred to Enterprise Computing Center (ECC) or the document is deleted.

    2. The Form 813 is sent to the ISRP function to establish the DLN on SCCF.

    3. When the document posts, the Form 813 is sent to Data Control for balancing to SCCF on the SCF 11-42 CRL.

  2. For additional procedures, refer to IRM 3.17.30.1.2, SCCF Control Concepts.

MFT and Credit/Penalty Reference Number Table

Credit Reference Number MFT Code Document Code
253, 255, 257, 258, 260, 262, 331, 332, 334, 336 and 338 30 51, 52
292–295 46 51, 52
296 and 299 01 51, 52
330, 333 02, 12, 34, 44 51, 52
331, 332 02, 12, 34, 44 51, 52
330-333 08 51, 52
324 40 51, 52
346 40 51, 52
350 40 51, 52
352-357 40 51, 52
359-363 40 51, 52
369 40 51, 52
375-377 40 51, 52
Penalty Reference Number MFT Code Document Code
500-518

Note:

Valid 198612 - 201012

13, 55 51
519 13 51
520-526

Note:

Valid 198612 - 201012

13, 55 51
527-528 55 51, 52
530

Note:

No longer in use

13, 55 51, 52
531, 533, 535

Note:

Valid 198612 - 201012

13, 55 51, 52
537 13,55 51, 52
543 13, 55 51, 52
547-548

Note:

Valid 198612 - 201012

13, 55 51
549-550 13, 55 51, 52
551-558, 562-567, 573, 574, 582-586, 593

Note:

559-561 are not active

13 51, 52
570, 575, 578, 579, 580, 581, 587-592, 594-599 13, 55 51, 52
584 74 51, 52
600-626

Note:

601, 602, 606, 608, 610, 615, 617, 620 and 622 no longer in use for current tax periods

13, 55 51
627 55 52
628-657

Note:

635, 640, 641 and 646 no longer in use for current tax periods

13, 55 51
658 13 51, 52
659-660 13, 55 51
661 13, 55 51
662-663 13 51, 52
662-673 55 51
674-677

Note:

675 valid 198901 - 201012

13, 55 51
678 13 51
679, 700, 710 55 51, 52
680 01-05, 07, 09-12, 14, 16, 30, 31, 33, 34, 37, 44, 50, 51, 52, 60, 63, 64, 77, 78 51, 52
681 02, 05, 30, 31, 51, 52 51, 52
682

Note:

No longer in use

51, 52 51, 52
683 01-03, 05, 07, 09-12, 14, 16, 33, 34, 37, 44, 50-52, 60,63,64, 77,78, 51, 52
683 04, 30 and 31 w/BLK 40 only, 199503-199712 only, TC 29X only 51, 52
684 15 5, 52
685

Note:

No longer in use for current tax periods

02, 30, 31 51, 52
687 30 51, 52
688 06 51
692 35 51
693 - 694 13 51
697, 699 13, 55 51, 52
701-705 55 51
706, 708, 709 13, 55 51
710 30, 31, 55 51
711, 712 13 51
713 13, 55 51
780, 781 01-05, 07, 09-12, 14, 16, 30, 31, 33, 34, 37, 44, 50, 51, 52, 60, 63, 64, 77, 78 51, 52
870-872 37 51, 52

Abstract Numbers

Abstract Numbers Table
MFT Abstract(s)
03 009-024
  026-098
  101-124
  303-310
  322, 323, 324
  326-329
  340–390
  392-398
  411-432
29 160
  162
  194, 195
  221, 222, 233, 235, 236, 237
30 221, 222
31 221, 222
49 163, 164
50 151-154
  182, 183
  213, 214
  221, 222
  237, 238
61 001-009
  013-035
  040
  221, 222
74 165, 167, 169
76 159
  161, 163, 164, 165, 167, 169
  200, 201
  203-206
  209
  224-228
  237
  450, 451, 452
77 218
78 217

Tax Return Information Chart

Tax Return Number MFT Code Tax Class Valid Tax Periods
11 61 4 196206-198706
11-B 62 4 196206-198006
11-C 63 4 Not before 196206
706GS(T) 77 5 Not before 198612; month must be 12
706GS(D) 78 5 Not before 198612; month must be 12
706/706NA 52 5 Must be 000000
709/709A 51 5 Not before 196112; month must be 12 for periods ending 197012 or earlier and after 198112; month must be 03, 06, 09 or 12 for periods 197103 through 198112.
720 03 4 Not before 196302; month must be 03, 06, 09 or 12
730 64 4 Not before 196206
940 10 8 Not before 196112; month must be 12
940EZ 10 8 Not before 198912; month must be 12
941 01 1 Not before 196203; month must be 03, 06, 09 or 12
942 04 1 199412 and before; month must be 03, 06, 09 or 12
943 11 1 Not before 196112; month must be 12
944 14 1 Not before 200612; month must be 12
945 16 1 Not before 199412; month must be 12
990 67 4 Not before 197012
990EZ 67 4 Not before 198901
990C 33 3 Not before 196112
990PF 44 4 Not before 197001
990T 34 3 Not before 196112
1040, 1040A 30, 31,35 2 Not before 196212
1041 05 2 Not before 196112
1041A 36 4 Not before 197012
1042 12 1 Not before 198512; month must be 12
1065 06 2 Not before 196112
1066 07 3 Not before 198712
1120 02 3 Not before 196112
2290 60 4 Not before 195607
4638 58 4 197007-198009
4720 50 4 Not before 197001
1041PF 37 4 197001-198712
5227 37 4 Not before 198812; month must be 12
8038-B 85 3 Not before 200812
8038-CP 46 3 Not before 200901
8038, 8038G, 8038GC, 8038T 46 3 Not before 198412
8038-TC 86 3 Not before 200812
8278 13 3 Not before 198012; month must be 12, except with Penalty Reference Number 519, 565, 613, 643, 644, 648, 650, 655, 656, 657, 661, 665, 676, 677, 693 or 694
8752 15 2 Not before 199012; month must be 12
CT-1 09 7 Not before 196203; month must be 03, 06, 09 or 12 for periods ending before 1–1–1976; month must be 12 for periods ending after 12–31–75

Table for Blocking Series

Document Code 51 (Form 3552)
AMA Code Blocking Series Assessment Title
J 100-109 Jeopardy Assessments
T1 110-119 TFRP (quick Assessments Only)
R1 120-123 Quick Assessments - Other "Agreed" Statutes
R2 124-127 Quick Assessments - Other "Unagreed" Statutes
R3 226-249 Statute PMA
Q1 128-129 Quick Assessments - CAWR/FUTA
Q2 130-132 Quick Assessments - Exam "Agreed"
Q3 133-134 Quick Assessments - Exam "Unagreed"
Q4 135-138 Quick Assessments - Appeals
Q5 200-225 Exam PMA
W-4 139 Quick Assessments - W-4 Civil Penalty Only
P1 140-144 Prompt Assessments - Collection "Agreed"
P2 145-149 Prompt Assessments - Collection "Unagreed"
P3 150-154 Prompt Assessments - All other "Agreed"
P4 155-159 Prompt Assessments - All other "Unagreed"
P5 160-179 Form 941-M and Form 720-M with Form 2859 (Form 3552)
P6 180-199 Form 941-M and Form 720-M without Form 2859 (Form 3552)
M3 940-949 Quick Assessments - MFT 31 (One-sided document, DECD, TC 765 / TC 802 / TC 767 / TC 772)
Key: R - Statute, Q - Quick, P - Prompt, J - Jeopardy, T - TFRP, W - W-4 CVPN, M - MFT 31
Assessment Title
100 - 109 Jeopardy Assessments
110 - 139 Quick Assessments
140 - 199 Prompt Assessments
200 - 249 Protective Assessments (PMA)
250 - 699 Account Transfer-In, Form 3413 (except re-transfers)
700 - 799 Account Transfer-In, Form 514B
800 - 849 Re-transfers, TC 400, Form 514B
850 - 899 Re-transfers, TC 370, Form 514B
900 - 939 Form 3413, Re-transfers, TC 370 (TC 765 and TC 802 Only)
940 - 949 Quick Assessments (MFT 31)
999 Generated Overflow TC 400

Valid BMF Transaction Codes

Trans Code Section Doc Code MFT Code
Debit (+) Credit (-)      
150   01 51 46, 85 and 86
150   01 51, 52 ALL
(except 13, 46, 61, 85 and 86)
150   02-19 51, 52 ALL
(except 46, 61, 85 and 86)
157   30-33 51, 52 ALL
(except 46, 77, 78, 85 and 86)
160   01 51, 52 ALL
(except 12, 13, 46, 85 and 86)
160   02-19 51, 52 ALL
(except 46, 85 and 86)
  161 02-19 51 ALL
(except 46, 85 and 86)
  161 02-19 52 ALL
(except 46, 77, 78, 85 and 86)
166 167 02-19 52 ALL
(except 46, 85 and 86)
170   01-19 52 02, 33, 34, 44
170   01-19 51 02, 05, 33, 34, 44
  171 02-19 51 ALL
(except 07, 46, 77, 78, 85 and 86)
  171 02-19 52 ALL
(except 05, 07, 46, 77, 78, 85 and 86)
176 177 02-19 52 ALL
(except 07, 46, 77, 78, 85 and 86)
180   01 51, 52 01, 03, 09, 10, 11, 16
180   02-19 51, 52 01, 03, 09, 10, 11, 12, 16
  181 02-19 51, 52 ALL
(except 07, 46, 77, 78, 85 and 86)
186 187 02-19 52 ALL
(except 07, 46, 77,78, 85 and 86)
190 191 02-19 51, 52 ALL
196 197 02-19 52 ALL
234   01-19 51, 52 36, 44, 67
  235 02-19 51, 52 ALL
(except 46, 77, 78, 85 and 86)
238 239 02-19 52 ALL
(except 46, 77, 78, 85 and 86)
240 241 01 51, 52 13
240 241 02-19 51, 52 ALL
240   01 51 46, 85 and 86
246   02-19 52 06, 07
  247 02-19 52 06, 07
270   01 51, 52 ALL
(except 12 and 13)
270   02-19 51, 52 ALL
  271 02-19 51 ALL
(except 78)
  271 02-19 52 ALL
272   30-33 51, 52 ALL
276 277 02-19 52 ALL
280   01 51, 52 ALL
(except 12 and 13)
280   02-19 51, 52 ALL
  281 02-19 51, 52 ALL
286   02-19 52 ALL
290   01 51, 52 ALL
(except 46, 85 and 86)
290 291 02-19 51, 52 ALL
(except 46, 85 and 86)
294   01 51, 52 ALL
(except 12, 13, 46, 77, 78, 85 and 86)
294 295 02-19 51, 52 ALL
(except 46, 77, 78, 85 and 86)
298   01 51, 52 ALL
(except 12, 13, 46, 85 and 86)
298 299 02-19 51, 52 ALL
(except 46, 85 and 86)
300   01 51, 52 ALL
(except 13, 46, 85 and 86)
300 301 02-19 51, 52 ALL
(except 46, 85 and 86)
304   01 51, 52 ALL
(except 12, 13, 46, 77, 78, 85 and 86)
304 305 02-19 51, 52 ALL
(except 46, 77, 78, 85 and 86)
308   01 51, 52 ALL
(except 12, 13, 46, 85 and 86)
308 309 02-19 51, 52 ALL
(except 46, 85 and 86)
320   01 51, 52 ALL
(except 12 and 13 )
320 321 02-19 51, 52 ALL
336 337 02-19 52 ALL
340 341 02-19 51, 52 ALL
340   02-19 51 46, 85 and 86
340 341 30-33 51, 52 ALL
342   30-33 51, 52 ALL
350   01 51, 52 ALL
(except 12, 13, 46, 85 and 86)
350 351 02-19 51, 52 ALL
(except 46, 85 and 86)
360   01 51, 52 ALL
(except 12, 13, 46, 85 and 86)
360   02-19 51, 52 ALL
(except 46, 85 and 86)
  361 02-19 51, 52 ALL
(except 46, 85 and 86)
380   02-19 51, 52 ALL
(except 46, 85 and 86)
380   02-19 51 46, 85 and 86
386   02-19 52 ALL
(except 46, 85 and 86)
388   01 52 ALL
(except 12, 13, 46, 85 and 86)
388 389 02-19 52 ALL
(except 46, 85 and 86)
  400 02-19 51 46, 85 and 86
402 400 02-19 52 ALL
(except 46, 85 and 86)
402   01 51 ALL
(except 12)
402   02-19 51 46, 85 and 86
420   30-33 52 ALL
(except 46, 77, 78, 85 and 86)
  421 30-33 52 ALL
422 423 30-33 52 ALL
(except 46, 77, 78, 85 and 86)
424   30-33 52 ALL
(except 46, 85 and 86)
  431 02-19 52 ALL
(except 46, 77, 78, 85 and 86)
450   01 51, 52 ALL
(except 12, 13, 46, 85 and 86)
450 451 02-19 51, 52 ALL
(except 46, 85 and 86)
460 462 30-33 51, 52 ALL
(except 46, 85 and 86)
470   30-33 51, 52 ALL
(except 46, 85 and 86)
471 472 30-33 51, 52 ALL
(except 46, 85 and 86)
471   30-33 51 46, 85 and 86
473 474 30-33 51, 52 ALL
(except 46, 77, 78, 85 and 86)
475   30-33 52 ALL
(except 46, 77, 78, 85 and 86)
  478 30-33 52 ALL
(except 46, 77, 78, 85 and 86)
480 481 30-33 51, 52 ALL
(except 46, 85 and 86)
482 483 30-33 51, 52 ALL
(except 46, 85 and 86)
488 489 30-33 51, 52 ALL
(except 46, 77, 78, 85 and 86)
520 521 30-33 51, 52 ALL
(except 46, 85 and 86)
522   30-33 51, 52 ALL
(except 46, 85 and 86)
530   30-33 51, 52 ALL
(except 46, 85 and 86)
531 532 30-33 51, 52 ALL
(except 46, 85 and 86)
535 534 02-19 51, 52 ALL
(except 46, 85 and 86)
537   30-33 51 ALL
(except 46, 77, 78, 85 and 86)
537   30-33 52 ALL
(except 46, 85 and 86)
550 560 30-33 51, 52 ALL
(except 46, 85 and 86)
564   30-33 51, 52 ALL
(except 46, 77, 78, 85 and 86)
570 571 30-33 51, 52 ALL
(except 46, 85 and 86)
572   30-33 51, 52 ALL
(except 46, 85 and 86)
582 583 30-33 51, 52 ALL
(except 46, 85 and 86)
590   01 52 ALL
(except 46, 77, 78, 85 and 86)
  590 30-33 51, 52 ALL
(except 46, 77, 78, 85 and 86)
591 592 30-33 51, 52 ALL
(except 46, 77, 78, 85 and 86)
593 594 30-33 51, 52 ALL
(except 46, 77, 78, 85 and 86)
595 596 30-33 51, 52 ALL
(except 46, 77, 78, 85 and 86)
597 598 30-33 51, 52 ALL
(except 46, 77, 78, 85 and 86)
599   30-33 51, 52 ALL
(except 46, 77, 78, 85 and 86)
  600 02-19 51, 52 ALL
(except 46, 85 and 86)
607 606 02-19 52 ALL
(except 46, 85 and 86)
609 608 02-19 52 ALL
(except 46, 85 and 86)
611 610 02-19 51, 52 ALL
(except 46, 85 and 86)
612   02-19 51, 52 ALL
(except 46, 85 and 86)
621 620 02-19 51, 52 ALL
(except 46, 77, 78, 85 and 86)
622   02-19 51, 52 ALL
(except 46, 77, 78, 85 and 86)
  630 20-23 51 46, 85 and 86
*632 630 20-23 51, 52 02, 05, 33, 34
632   20-23 51 46, 85 and 86
*637 636 20-23 52 02, 05, 33, 34
641 640 02-19 51, 52 ALL
(except 46, 85 and 86)
642   02-19 51, 52 ALL
(except 46, 85 and 86)
  650 02-19 51, 52 ALL
(except 02, 33, 46, 77, 78, 85 and 86)
651   02-19 51, 52 ALL
(except 46, 77, 78, 85 and 86)
652   02-19 51, 52 ALL
(except 46, 77, 78, 85 and 86)
661 660 02-19 51, 52 ALL
(except 46, 77, 78, 85 and 86)
662   02-19 51, 52 ALL
(except 46, 77, 78, 85 and 86)
671 670 02-19 51, 52 ALL
(except 46, 85 and 86)
672   02-19 51, 52 ALL
(except 46, 85 and 86)
679 678 02-19 51, 52 ALL
(except 46, 77, 78, 85 and 86)
681 680 02-19 51, 52 ALL
(except 46, 85 and 86)
682   02-19 51, 52 ALL
(except 46, 85 and 86)
691 690 02-19 51, 52 ALL
(except 46, 85 and 86)
692   02-19 51, 52 ALL
(except 46, 85 and 86)
  694 02-19 51 46, 85 and 86
695 694 02-19 51, 52 ALL
(except 46, 85 and 86)
701 700 02-19 51, 52 ALL
(except 46, 85 and 86)
702   02-19 51, 52 ALL
(except 46, 85 and 86)
  706 02-19 52 ALL
(except 46, 85 and 86)
712 710 02-19 51, 52 ALL
(except 46, 77, 78, 85 and 86)
  716 02-19 52 ALL
(except 46, 77, 78, 85 and 86)
721 720 02-19 51 ALL
(except 46, 85 and 86)
721 720 02-19 52 ALL
(except 46, 77, 78, 85 and 86)
722   02-19 51 ALL
(except 46, 85 and 86)
722   02-19 52 ALL
(except 46, 77, 78, 85 and 86)
731 730 02-19 51 ALL
(except 46, 85 and 86)
731 730 02-19 52 ALL
(except 46, 77, 78, 85 and 86)
732   02-19 51 ALL
(except 46, 85 and 86)
732   02-19 52 ALL
(except 46, 77, 78, 85 and 86)
  736 02-19 52 ALL
(except 46, 77, 78, 85 and 86)
  740 02-19 51 ALL
(except 46, 85 and 86)
  740 02-19 52 ALL
(except 46, 77, 78, 85 and 86)
742   02-19 51 ALL
(except 46, 85 and 86)
742   02-19 52 ALL
(except 46, 77, 78, 85 and 86)
  756 02-19 52 ALL
(except 46, 77, 78, 85 and 86)
  760 02-19 51 ALL
(except 46,78, 85 and 86)
  760 02-19 52 ALL
(except 46, 77, 78, 85 and 86)
762   02-19 51 ALL
(except 46, 78, 85 and 86)
762   02-19 52 ALL
(except 46, 77, 78, 85 and 86)
*767 766 02-19 51, 52 ALL
(except 46, 77, 78, 85 and 86)
  770 02-19 51 ALL
  770 02-19 52 ALL
( 77 and 78)
771   02-19 51 ALL
(except 46, 85 and 86)
771   02-19 52 ALL
(except 46, 77, 78, 85 and 86)
772   02-19 51 ALL
772   02-19 52 ALL
(77 and 78)
777 776 02-19 52 ALL
780 781 30-33 51, 52 ALL
(except 46, 85 and 86)
782   30-33 51, 52 ALL
(except 46, 85 and 86))
  788 30-33 51, 52 ALL
(except 46, 85 and 86)
792 790 02-19 51, 52 ALL
(except 46, 85 and 86)
  796 02-19 52 ALL
(except 46, 85 and 86)
802 800 02-19 51, 52 05
807 806 02-19 51, 52 05
820 821 02-19 51, 52 ALL
(except 46, 85 and 86)
  822 02-19 51, 52 ALL
(except 46, 85 and 86)
824   02-19 51, 52 ALL
(except 46, 85 and 86)
826   02-19 52 ALL
(except 46, 77, 78, 85 and 86)
830 832 02-19 51, 52 ALL
(except 46, 77, 78, 85 and 86)
836   02-19 52 ALL
(except 46, 77, 78, 85 and 86)
840 841 02-19 51 ALL
(except 46, 78, 85 and 86)
840 841 02-19 52 ALL
(except 46, 77, 78, 85 and 86)
  842 02-19 51 ALL
(except 46, 78, 85 and 86)
  842 02-19 52 ALL
(except 46, 77, 78, 85 and 86)
843   02-19 51 ALL
(except 46, 85 and 86)
843   02-19 52 ALL
(except 46, 77, 78, 85 and 86)
844   30-33 51 ALL
(except 46, 85 and 86)
844   30-33 52 ALL
(except 46, 77, 78, 85 and 86)
  845 30-33 51, 52 ALL
(except 46, 85 and 86)
846   02-19 52 ALL
(except 46, 85 and 86)
850 851 02-19 51, 52 ALL
(except 46, 85 and 86)
  852 02-19 51 ALL
(except 46, 77, 78, 85 and 86)
  852 02-19 52 ALL
(except 46, 85 and 86)
856   02-19 52 ALL
(except 46, 85 and 86)
912 914 30-33 51, 52 ALL
(except 46, 85 and 86)
930 932 30-33 52 ALL
(except 46, 85 and 86)
940 942 30-33 51, 52 ALL
(except 46, 77, 78, 85 and 86)
946   30-33 52 ALL
(except 46, 77, 78, 85 and 86)
960 961 30-33 51, 52 ALL
(except 46, 85 and 86)
962   30-33 51, 52 ALL
(except 46, 85 and 86)
  976 02-19 51, 52 ALL
(except 46, 85 and 86)
*MFT is not valid for the section: TC 767 is invalid for BMF accounts.

Valid IMF Transaction Codes

Trans Code Section Doc Code MFT Code
Debit (+) Credit (-)      
150   01 51, 52 30, 31
150   02-19 51, 52 30, 31, 55
160   01 51, 52 30, 31
160 161 02-19 51, 52 30, 31, 55
166 167 02-19 52 30,31,55
170   01 51, 52 30, 31
170 171 02-19 51, 52 30, 31, 55
176 177 02-19 52 30, 31, 55
190 191 02-19 51, 52 30, 31, 55
196 197 02-19 52 30, 31, 55
200 201 02-19 51, 52 30, 31, 55
240 241 02-19 51, 52 30, 31, 55
270   01 51, 52 30, 31
270 271 02-19 51, 52 30, 31, 55
272   30-33 51, 52 30, 31, 55
276 277 02-19 52 30, 31, 55
280   01 51, 52 30, 31
280 281 02-19 51, 52 30, 31, 55
286   02-19 52 30, 31, 55
290   01-19 51, 52 30, 31, 55
  291 02-19 51, 52 30, 31, 55
294   01 51, 52 30, 31
294 295 02-19 51, 52 30, 31, 55
298   01 51, 52 30, 31
298 299 02-19 51, 52 30, 31, 55
300   01 51, 52 30, 31
300 301 02-19 51, 52 30, 31, 55
304   01 51, 52 30, 31
304 305 02-19 51, 52 30, 31, 55
308   01 51, 52 30, 31
308 309 02-19 51, 52 30, 31, 55
310 311 02-19 51, 52 30, 31, 55
320   001 51, 52 30, 31
320 321 02-19 51, 52 30, 31, 55
336 337 02-19 52 30, 31, 55
340 341 02-19 51, 52 30, 31, 55
340 341 30-33 51, 52 30, 31, 55
342   30-33 51, 52 30, 31, 55
350   01 51, 52 30, 31
350 351 02-19 51, 52 30, 31, 55
360   01 51, 52 30, 31
360 361 02-19 51, 52 30, 31, 55
380   02-19 51, 52 30, 31, 55
386   02-19 52 30, 31, 55
388   01 52 30, 31
388 389 02-19 52 30, 31, 55
402 400 02-19 52 30, 31, 55
402   01 51 30, 31, 55
411 410 02-19 51, 52 30, 31, 55
412   02-19 51, 52 30, 31, 55
417 416 02-19 52 30, 31, 55
420* 421* 30-33 52 30, 55
422 423 30-33 52 30, 31, 55
424   30-33 52 30, 55
425   30-33 52 30, 31, 55
  430 01 52 30, 31
  430 02-19 51, 52 30, 55
  431 02-19 52 30, 31, 55
450   01 51, 52 30, 31
450 451 02-19 52 30, 31, 55
460 462 30-33 51, 52 30, 31, 55
470   30-33 51, 52 30, 31, 55
471 472 30-33 51, 52 30, 31, 55
473   30-33 51, 52 30, 31, 55
474 475 30-33 51, 52 30, 55
480 481 30-33 51, 52 30, 31, 55
482 483 30-33 51, 52 30, 31, 55
490 496 30-33 51, 52 30, 31, 55
500 502 30-33 51, 52 30, 31, 55
510 516 30-33 51, 52 30, 31, 55
517   30-33 51, 52 30, 31, 55
520 521 30-33 51, 52 30, 31, 55
522   30-33 51, 52 30, 31, 55
530   30-33 51, 52 30, 31, 55
531 532 30-33 51, 52 30, 31, 55
535 534 02-19 51, 52 30, 31, 55
537   30-33 51, 52 30, 31, 55
540 542 30-33 51, 52 30, 31, 55
550 560 30-33 51, 52 30, 31, 55
564   30-33 51, 52 30, 31, 55
570 571 30-33 51, 52 30, 31, 55
572   30-33 51, 52 30, 31, 55
576 577 02-19 51, 52 30, 31, 55
582 583 30-33 51, 52 30, 31, 55
590   30-33 51, 52 30, 55
591 592 30-33 51, 52 30, 55
593 594 30-33 51, 52 30, 55
595   30-33 51, 52 30, 55
599   30-33 51, 52 30, 55
  600 02-19 51, 52 30, 55
607 606 02-19 52 30, 31, 55
609 608 02-19 52 30, 31, 55
611 610 02-19 51, 52 30, 31, 55
612   02-19 51, 52 30, 31, 55
*632 630 20-23 51, 52 30, 31
*637 636 20-23 52 30, 31
641 640 02-19 51, 52 30, 31, 55
642   02-19 51, 52 30, 31, 55
661 660 02-19 51, 52 30, 31, 55
662   02-19 51, 52 30, 31, 55
667 666 02-19 52 30, 31, 55
671 670 02-19 51, 52 30, 31, 55
672   02-19 51, 52 30, 31, 55
681 680 02-19 51, 52 30, 31, 55
682   02-19 51, 52 30, 31, 55
691 690 02-19 51, 52 30, 31, 55
692 694 02-19 17, 18, 19, 24, 34, 38, 51, 52 30, 31, 55
695   02-19 19, 24, 34, 51, 52 30, 31, 55
701 700 02-19 51, 52 30, 31, 55
702   02-19 51, 52 30, 31, 55
  706 02-19 52 30, 31, 55
712 710 02-19 51, 52 30, 55
  716 02-19 52 30, 55
721 720 02-19 51, 52 30, 31, 55
722   02-19 51, 52 30, 31, 55
731 730 02-19 51, 52 30, 31, 55
732   02-19 51, 52 30, 31, 55
  736 02-19 52 30, 31, 55
742 740 02-19 51, 52 30, 31, 55
762 760 02-19 51, 52 30, 31, 55
765 764 02-19 51, 52 30, 31, 55
767 766 02-19 51, 52 30, 31, 55
  768 02-19 52 30, 31, 55
772 770 02-19 51, 52 30, 31, 55
777 776 02-19 52 30, 31, 55
780 781 30-33 51, 52 30, 31, 55
782   30-33 51, 52 30, 31, 55
783 784 30-33 51, 52 30, 31, 55
  788 30-33 51, 52 30, 31, 55
802 800 02-19 51, 52 30, 31, 55
807 806 02-19 52 30, 31, 55
820 821 02-19 51, 52 30, 31, 55
  822 02-19 51, 52 30, 31, 55
824   02-19 51, 52 30, 31, 55
826   02-19 52 30, 31, 55
*830 832 02-19 51, 52 30, 55
*836   02-19 52 30, 55
840 841 02-19 51, 52 30, 31, 55
843   02-19 51, 52 30, 31, 55
844 845 30-33 51, 52 30, 31, 55
846   02-19 52 30, 31, 55
850 851 02-19 51, 52 30, 31, 55
  852 02-19 51, 52 30, 31, 55
856 859 02-19 52 30, 31, 55
876   02-19 52 30, 31, 55
890 892 02-19 51, 52 30, 31, 55
896   02-19 52 30, 31, 55
912 914 30-33 51, 52 30, 31, 55
915   30-33 52 30, 31, 55
919 917 30-33 51, 52 30, 31, 55
930 932 30-33 52 30, 31, 55
940 942 30-33 51, 52 30, 31, 55
960 961 30-33 51, 52 30, 31, 55
962   30-33 51, 52 30, 31, 55
  976 02-19 51, 52 30, 31, 55
  977 02-19 51, 52 30, 31, 55
*Section 20-23 is not present with MFT-CD 55.

Manual Assessment Contacts

Campus: Name: Position: Telephone: Fax:
Austin Jennifer Wossum Manager 737-800-5042 eFax 855-254-0572
Jessica Ybarra Lead 737-800-5050  
Debbie Houston P&A 737-800-7940 eFax 855-254-0572
Fresno Isadora Velasquez Manager 559-454-6664 eFAX 855-275-3809
Leonora Hutchison Lead 559-454-6507  
Daniel Littlejohn P&A 559-454-6525  
Kansas City Denise Shay Manager 816-499-5872 eFax 866-805-2235
Katherine Burch Lead 816-499-6062  
Sheryl Dayton (P) or Jacquelyn Denise Thompson P&A 816-499-6001 816-499-6006  
Ogden Kathy Parkinson Manager 801-620-6898 eFax 855-295-5947
Sheila Paulson Lead 801-620-7867 801-620-6434
Amy Gill P&A 801-620-6495