3.28.4 Identity Theft Returns for Submission Processing

Manual Transmittal

November 13, 2018

Purpose

(1) This transmits revised IRM 3.28.4, Special Processing Procedures - Identity Theft Returns for Submission Processing.

Material Changes

(1) IRM 3.28.4.1.8 Added new subsection with steps to take when receiving a IDRS security message that an account is blocked from access.

(2) IRM 3.28.4.4(1) Removed reference to Andover and Fresno that is not needed. (IPU 18U0018 issued 01-02-2018)

(3) IRM 3.28.4.4(2) Combined paragraph two and three for clarity.

(4) IRM 3.28.4.4(5) Removed link to IRM 25.23.2.6.1 reference which no longer exists. (IPU 18U0448 issued 03-13-2018)

(5) IRM 3.28.4.4(5) Added link to IRM 25.23.3.2.6, Identity Theft Assistance Request (ITAR) - General Information.

(6) IRM 3.28.4.5.3(2) Added paragraph with links to IRM references for the GUF Command Codes.

(7) IRM 3.28.4.5.4(2) Added link to IDRS Command Code Job Aid.

(8) IRM 3.28.4.5.4(12) Removed reference to year MFT 32 was created.

(9) IRM 3.28.4.5.5(1) Revised paragraph to clarify reference to table with control base procedures.

(10) IRM 3.28.4.5.5(2) Revised Determination and Closure instructions Table. (IPU 18U0448 issued 03-13-2018)

  • Row A - Added Note with procedures for accounts where a return is already posted to the invalid side of MFT 30 (Per SERP Feedback Control# 20180019).

  • Row B - Updated link to 25.25.6-7 Command Code (CC) FRM77 TC 971 AC 111 Input Screen.

(11) IRM 3.28.4.5.5(2) Table Row A, Then Column, Second Note - Included reference for a duplicate return already posted to MFT 32.

(12) IRM 3.28.4.5.5(2) Updated table row B reference to tax years from "2016 or 2017" to "2017 or 2018" . Also updated reference from "2015" tax year to "2016" .

(13) IRM 3.28.4.5.5.1(1) Updated procedures in Caution to use Letter 4674C instead of the Letter 239C. Added the paragraphs to use for the Letter 4674C.

(14) IRM 3.28.4.5.5.3(1) Added procedures to check CC IRPTR for support for excessive withholding.

(15) IRM 3.28.4.5.6(4) In Table, Row D, added guidance for late response to Letter 4455C.

(16) IRM 3.28.4.5.7(1) , Clarified the description of a posting attempt.

(17) IRM 3.28.4.5.7(2) In table, changed tax admin source in example from "MULTL" to "UPCMUL" . (IPU 18U0018 issued 01-02-2018)

(18) IRM 3.28.4.5.9 Revised section and changed title to “Sending Documents to Files”. Removed paragraph four instructions to use Form 12772, which is obsolete. Replaced with instructions to use the IAT REQ54 Tool Adjustment Calculator to generate Form 12249 per SERP Feedback Control# 201800653.(IPU 18U0448 issued 03-13-2018)

(19) 3.28.4.5.11(3) Added note providing criteria for determining whether the majority of the income does not match IRPTR

(20) IRM 3.28.4.5.12 Added note that SPC "T" shows as Identity Theft Code "T" on TRDBV. (IPU 18U0018 issued 01-02-2018)

(21) IRM 3.28.4.5.12.1(2) Updated table, Row B link to 25.25.6-7 Command Code (CC) FRM77 TC 971 AC 111 Input Screen.(IPU 18U0448 issued 03-13-2018)

(22) IRM 3.28.4.5.12.1(2) Updated table, Row B, Note 2 to change the tax year reference from "2015" to "2016" .

(23) IRM 3.28.4.5.12.2.1(1) Updated Table, Row B link to 25.25.6-7 Command Code (CC) FRM77 TC 971 AC 111 Input Screen. (IPU 18U0448 issued 03-13-2018)

(24) IRM 3.28.4.5.12.2.1(1) Updated Table, Row B, Note 2 to change tax year reference from "2015" to "2016" .

(25) IRM 3.28.4.5.12.3(1) Updated tax period reference from "2015" to "2016" .

(26) IRM 3.28.4.5.12.3(3) Clarified when to edit the Return Processable Date. (IPU 18U0448 issued 03-13-2018)

(27) IRM 3.28.4.5.13(2) Table Row B - Added link to procedures for associating a duplicate return with an original MeF return per SERP Feedback Control# 201800520. (IPU 18U0448 issued 03-13-2018)

(28) IRM 3.28.4.5.13(3) Added procedures to process a duplicate return when a return is already posted to MFT 32.

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

Effect on Other Documents

IRM 3.28.4, dated November 14, 2017 (effective January 1, 2018) is superseded. The following IRM Procedural Updates (IPUs) issued from January 2, 2018 through March 13, 2018 have been incorporated into this IRM: 18U0018 and 18U0448.

Audience

Individual Master File (IMF) Notice Review Units, Wage and Investment, Submission Processing Centers

Effective Date

(01-01-2019)


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

Program Scope and Objectives

  1. Purpose: This IRM contains procedures for working the following types of identity theft related cases:

    • Potential identity theft returns that unpost as Unpostable Code (UPC) 147 Reason Code (RC) 0. The procedures include research to determine whether or not the return was filed by the owner of the taxpayer identification number (TIN). The Unpostables function will refer these cases to the Submission Processing Identity Theft (SP IDT) function for additional research and resolution.

    • Requests for returns to be moved from MFT 32 to MFT 30. SP IDT examiners will only work cases where the return was originally moved to MFT 32 by Submission Processing.

  2. Audience: The primary users of this IRM are Submission Processing employees in the Notice Review function, who work Identity Theft related returns.

  3. Policy Owner: Director, Submission Processing.

  4. Program Owner: Post Processing Section (An organization within Submission Processing, Specialty Branch).

  5. Primary Stakeholders: Other areas that are affected by these procedures include:

    • Accounts Management

    • Taxpayer Advocate Service

    • Return Integrity and Compliance Services

Background

  1. Confirmed Identity Theft victims are provided an Identity Protection PIN (IP PIN) to use when filing their future returns. If a paper return is filed without the required IP PIN, the return will unpost UPC 147 RC 0. The unpostable returns are routed and maintained in the Generalized Unpostable Framework (GUF) system. After research, unpostable resolution codes (URC) will be input to post the returns appropriately.

    Note:

    Effective filing season 2017, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ returns will no longer unpost UPC 147 RC 1. The instructions in this IRM will continue to apply to any existing UPC 147 RC 1 inventory.

  2. There will be situations where a return needs to be moved (reversed) from MFT 32 to MFT 30 in order for a refund to be processed. The SP IDT function will process requests for reversal only when the return was originally moved by SP IDT or the ERS/Rejects function input special processing code (SPC) "T" .

Authority

  1. Authority for these procedures is found in the following sections of the Internal Revenue Code (IRC) and their corresponding Treasury regulations:

    • IRC 6201(a)

    • IRC 6404(a)

  2. All Policy Statements for Submission Processing are contained in IRM 1.2.12,Servicewide Policies and Authorities, Policy Statements for Submission Processing Activities.

Responsibilities

  1. The Director of Submission Processing is responsible for policy related to this IRM.

  2. The Submission Processing Input Corrections Operations Manager is responsible for monitoring operational performance for their operation.

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

  4. The tax examiners are responsible for following the instructions contained in this IRM and maintain updated IRM procedures.

Program Management and Review

  1. Program Goals: Review unpostable returns and ensure that the valid returns are posted to the taxpayer’s account and the fraudulent returns are posted to MFT 32.

  2. Program Reports: Generalized Unpostable Framework (GUF) reports are used for inventory management, work assignment and follow-up. These reports are stored on the Control-D system. Information about specific reports is found in IRM 3.12.32General Unpostables.

  3. Program Effectiveness: The examiners’ case work is subject to Quality Review conducted using the Embedded Quality for Submission Processing (EQSP) System and Measured Employee Performance System (MEPS).

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

Terms/Definitions/Acronyms

  1. The table lists commonly used acronyms.

    Acronyms

    Acronym Definition
    AMS Accounts Management System
    CC Command Code
    CCC Computer Condition Code
    CSR Customer Service Representative
    DLN Document Locator Number
    EITC Earned Income Tax Credit
    EFTPS Electronic Federal Tax Payment System
    EUP Employee User Portal
    GUF Generalized Unpostable Framework
    IDRS Integrated Data Retrieval System
    IDTVA Identity Theft Victim Assistance
    IP PIN Identity Protection Personal Identification Number
    IPSU Identity Protection Specialized Unit
    IRM Internal Revenue Manual
    IRPTR Information Returns Transcript File on Line
    IRS Internal Revenue Service
    IRSN Internal Revenue Service Number
    ITAR Identity Theft Assistance Request
    IVO Integrity and Verification Operations
    LKA Last Known Address
    MFT Master File Tax Code
    NTA National Taxpayer Advocate
    OAR Operations Assistance Request
    OFP Organization, Function and Program
    RPD Return Processable Date
    RTR Remittance Transaction Research System
    SSN Social Security Number
    SPC Special Processing Code
    SP IDT Submission Processing Identity Theft
    TAC Taxpayer Assistance Center
    TAS Taxpayer Advocate Service
    TIN Taxpayer Identification Number
    TC Transaction Code
    TPP Taxpayer Protection Program
    UPC Unpostable Code
    URC Unpostable Resolution Code
    URF Unidentified Remittance File
    XSF Excess Collection File

     

Related Resources

  1. The following websites and electronic tools are used to resolve the UPC 147 cases:

    • Integrated Automation Technologies (IAT)

    • Integrated Data Retrieval System (IDRS)

    • Servicewide Electronic Research Program (SERP)

    • Accounts Management System (AMS)

Internal Revenue Manual (IRM) Deviations

  1. Service Center Directors, Headquarter Branch Chiefs, and Headquarter Analysts do not have the authority to approve deviations from IRM procedures. Any request for an exception to, or deviation from, an IRM procedure must be elevated through appropriate channels for executive approval. This will ensure other functional areas are not adversely affected by the change, and that it does not result in disparate treatment of taxpayers.

  2. See specific guidelines in IRM 1.11.2, Internal Management Documents System, Internal Revenue Manual (IRM) Process. Requests for an IRM deviation must be submitted in writing and signed by the Field Director, following instructions from IRM 1.11.2.2.4(3). Any disclosure issues will be coordinated by the Program Owner. No deviations can begin until reviewed by the Program Owner and approved at the Executive Level.

IDRS Access

  1. While working assigned cases, SP employees may come across some accounts that are blocked on IDRS. These accounts can be identified by an IDRS security violation message: "Unauthorized Access to This Account" . Also, if employees attempt to access a blocked case using the Corresponding Imaging System (CIS), they will receive a general error message, "You are not authorized to access this case" . Forward the case (e.g. UPTIN screens, correspondence, etc.) to your manager. Managers will notify the local Planning & Analysis Staff who will scan the case and send encrypted information to the "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " mailbox to request access to the account. Managers will retain the original case in a file awaiting access (can take up to five business days). Once notified access has been granted, the case can be processed following applicable procedures.

Taxpayer Advocate Service (TAS)

  1. This subsection contains information on referring cases to TAS.

TAS Background Information

  1. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers whose problems with the IRS are causing financial difficulties for the taxpayer, their family, or their business; who have tried but haven’t been able to resolve their problems with the IRS; and those who believe an IRS system or procedure isn’t working as it should.

  2. Taxpayers have the right to a fair and just tax system, which includes the right to assistance from the Taxpayer Advocate Service (TAS) if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through its normal channels. Information on TAS case acceptance criteria and how and when to refer a taxpayer to TAS is available in IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria. TAS criteria includes economic burden, systemic burden, best interest of the taxpayer, and public policy (as determined solely by the National Taxpayer Advocate (NTA)).

  3. Employees should not view TAS case criteria as a means of excluding taxpayers from TAS, but rather, as a guide to TAS case acceptance. The criteria under which TAS accepts a case should not govern whether a taxpayer is entitled to relief.

Referring Cases to TAS

  1. Refer taxpayers to the Taxpayer Advocate Service (TAS) when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria), and you can’t resolve the taxpayer’s issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. The taxpayer should be advised that TAS is available if the taxpayer is not satisfied with the service he or she received. Provide the taxpayer with the number for the NTA toll-free case intake line, 1-877-777-4778 or TTY/TDD 1-800-829-4059. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4, Same-Day Resolution by Operations.

  2. An IRS employee should make a referral to a TAS office if the employee receives a taxpayer contact, and cannot initiate action to resolve the inquiry or provide the relief requested. A taxpayer does not have to specifically request TAS assistance to be referred to TAS. IRS employees will advise taxpayers of the option to seek TAS assistance when appropriate. It is important that all IRS employees handle potential TAS cases with the taxpayer's best interest in mind. Refer also to IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, for more information.

  3. When referring cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), and forward it to TAS in accordance with your local procedures. Check the TAS box on Accounts Management Services (AMS), if applicable.

  4. The following types of cases should NOT be referred to TAS:

    1. Cases where the taxpayer’s complaint or inquiry only questions the constitutionality of the tax system; or

    2. Cases where the focus of the taxpayer's inquiry is solely to employ frivolous tax strategies to avoid or delay filing or paying federal taxes

Taxpayer Advocate Service (TAS) Operations Assistance Request (OAR)

  1. A Form 12412, Operations Assistance Request (OAR), is used by TAS to request assistance on a TAS case when TAS does not have the authority to take the required action. Unless otherwise noted by manager, OAR cases take precedence over other SP IDT cases.

  2. OARs that need to go to the SP IDT function will be routed to the SP Input Correction Notice Review (ICN) E-OAR Mailbox at each site. TAS employees will document in the subject line of the email, “IDT1” or “147” case. Any OARs received through the ICN E-OAR Mailbox will be distributed to the appropriate employee and worked as a priority.

  3. Every effort must be made to expedite completion of OAR cases. Time frames for the assigned area to complete the case will be indicated on Form 12412. Any correspondence sent to the taxpayer while TAS has an open control should also be sent to the TAS employee assigned the case.

    Note:

    The OAR may request delegated authority for TAS to issue a manual refund; see IRM 3.28.4.5.12.4, Tax Advocate Service (TAS) Request for Manual Refund.

  4. When TAS has requested expedited processing, the Operating Division or Functional Liaison will acknowledge receipt via Form 3210, secure messaging E-mail, facsimile, or by telephone within one (1) workday of receipt of the OAR. When TAS does not require expedited processing, the Operating Division or Functional Liaison will acknowledge receipt via Form 3210, secure messaging E-mail, facsimile, or by Telephone within three (3) workdays of receipt of the OAR.

  5. If additional research or documentation is required on an OAR, the employee assigned the OAR will contact the assigned TAS employee within one (1) workday of the determination, and within one (1) workday of the receipt of the OAR in the case of expedited processing OARs, to obtain information and to re-negotiate the requested completion date. If the TAS employee does not provide the information within the time frame provided, follow procedures outlined in the Service Level Agreement.

  6. If resolution of a taxpayer's case cannot be completed by the requested time frame or by a negotiated extension date, the employee will immediately notify his or her manager. The manager/employee will work with the Taxpayer Advocate contact listed on Form 12412 to arrive at agreed upon time frames for follow-up based on the facts and circumstances of the particular case.

  7. The manager/employee assigned the case will discuss the findings and recommendations on the final disposition of the case with the appropriate TAS contact. The TAS contact is responsible for communicating the final decision on the case to the taxpayer however this does not prohibit the manager/employee from also communicating that decision to the taxpayer.

  8. If the TAS contact and the manager/employee assigned the case cannot agree upon the resolution to the taxpayer's problem, the TAS employee will elevate this disagreement to the manager who will discuss it with the appropriate Operating Division manager. The manager/employee assigned the case will also elevate any disagreement to his or her manager.

  9. Upon resolution of the case, the Business Operating Division (BOD)/Function employee assigned the OAR will complete the following information on Form 12412:

    • Section V - Boxes 3, 5, 6, 7, 8, 9, 10

      Note:

      Box 4 is also required if case meets TAS criteria 1-4. Enter the date Operating Division/Functional Unit decided whether or not to comply with TAS relief/assistance request.

    • Section VI - Lines 1a, 1b, 2a, 2b, 2c

      Note:

      Lines 2a, 2b, and 2c are completed only if rejecting.

    The Form 12412 must be returned to the TAS Case Advocate within three (3) workdays from the date that all actions have been completed and transactions posted. For more information, please refer to: IRM 13.1.7, Taxpayer Advocate Service Case Criteria.

Identity Theft Assistance Requests (ITAR)

  1. Submission Processing Identity Theft (SP IDT) examiners may receive a Form 14103, Identity Theft Assistance Request (ITAR), referral from an Identity Theft Victim Assistance (IDTVA) Identity Protection Specialized Unit (IPSU) customer service representative (CSR).

  2. When the Form 14103 is received, send an acknowledgement within 5 business days via secure e-mail or by entering a case note on the linked case on Accounts Management Services (AMS). When cases are received with a Form 14103, they should be considered priority work (similar to a TAS OAR). A Form 14103, ITAR, must involve identity theft and meet TAS criteria 5-7.

  3. The SP IDT examiner is required to provide a status update every 30 days to AM IPSU.

  4. Once the unpostable issue is resolved, and all adjustment actions have been input, return the Form 14103 to the IPSU CSR with Section V and VI completedSee IRM 25.23.3.2.6 , Identity Theft Assistance Request (ITAR) - General Information, for more information.

Unpostable Code (UPC) 147 Reason Code (RC) 0

  1. The unpostable condition, UPC 147 RC 0, occurs when a return does not contain a matching Identity Protection Personal Identification Number (IP PIN), when an IP PIN is present in the entity. See IRM 3.12.179.44,UPC 147 RC 0 - Identity Protection Personal Identification Number (IP PIN).

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Effective filing season 2017, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ returns will no longer unpost UPC 147 RC 1. The instructions in this IRM will continue to apply to any existing UPC 147 RC 1 inventory.

  3. UPC 147 RC 0 cases that unpost are automatically routed to the Unpostable function for preliminary research and resolution.

  4. When Unpostables is unable to determine whether the return was submitted by the Social Security Number (SSN) owner or by an unauthorized filer, they will refer the case to the SP IDT function. Unpostables will re-assign the unpostable case to the generic unit number for the SP IDT function at their site.

Referral Process

  1. Each case referred by Unpostables may contain a UPC 147 Comparison Checklist,≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. For paper returns, Unpostables will forward the entire return with any attachments, the Form 4251, Return Charge-Out, and the checklist to SP IDT. Unpostables will only make one request to Files for the documents prior to referring a case to SP IDT. If the documents are not received from Files on the first request, then Unpostables will send the SP IDT function just the charge-out with a notation that documents were not received.

  3. Any identity theft substantiation documentation received with UPC 147 RC 0 cases will remain attached to the return. The documentation will be reviewed in making the determination of the true owner of the social security number. Substantiation documentation includes Form 14039, Identity Theft Affidavit, police reports, copies of identification cards, etc.

    Note:

    Often the documentation received with an UPC 147 RC 0 case is a duplicate of documentation previously submitted by the taxpayer.

Organization, Function, and Program (OFP) Codes for UPC 147 RC 0 and RC 1 Work

  1. SP IDT examiners should use OFP 290-40012 for time spent working UPC 147 RC 0 cases. OFP 550-40012 should be used for clerical activities related to UPC 147 RC 0 cases.

  2. Use OFP 710-40000 with hours only for working referrals on closed UPC 147 RC 0 and 1 cases including requests to move returns from MFT 32 to MFT 30.

Generalized Unpostable Framework (GUF) Command Codes

  1. The following command codes (CCs) are used for closing unpostable cases.

    1. CC UPTIN is used to display all open unpostable cases for a specific taxpayer identification number (TIN). CC UPTIN is used to get the cycle sequence number for a case.

    2. CC UPDIS is used to display unpostable records. When CC UPDIS is input with cycle sequence number, the response screen display shown will be CC UPRES.

    3. CC UPRES is used to close the unpostable case. CC UPRES is displayed when CC UPDIS is input. The unpostable resolution code (URC) is entered on the UPRES screen. Input URC "0" to re-post a return to Master File. Input URC "6" to make changes to the account prior to re-posting the return. URC 6 would be used in order to input a CCC 1 or CCC 3 to hold the refund once the return is posted. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. CC UPCASZ is used to enter remarks. Overlay CC UPRES with CC UPCAS using Definer “Z”.

  2. See the following IRMs for more information: IRM 3.12.32.12, GUF Command Codes (CC), Definers, Status, and Nullification Codes General Information, IRM 2.3.37, Command Code UPTIN for the GUF system and IRM 2.3.48, Command Code UPDIS for the GUF System.

Research Steps

  1. SP IDT will make the determination of whether or not the unpostable return was filed by the owner of the social security number (SSN). ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. Research using CC ENMOD, IMFOL, TRDBV, DDBKD, RTVUE, NAMES, INOLE, DUPOL, FFINQ, REINF, IRPTR, etc., as applicable. See the IDRS Command Code Job Aid for more information on each Command Code.

  3. Compare data from the return and attachments to prior years posted return history to determine if the return was submitted by the SSN owner. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Caution:

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

  4. Review the account and the returns to determine what information matches the previous year's identity theft return and what matches the return filed by the SSN owner.

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    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

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

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  6. Check CC IRPTR (if available) to verify if the information on the return matches IRP documents. Take the following into consideration:

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    .

  7. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  8. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Caution:

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

  9. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  10. All the information gathered through the above research should be weighed, to make a determination of whether or not the return was filed by the SSN owner. Follow the procedures in 3.28.4.5.5 to close the unpostable according to the determination.

  11. MFT 32 has been established to contain tax returns that have been identified as possible identity theft. A return will be moved from MFT 30 to MFT 32 by inputting TC 971 AC 111 on MFT 30 with the document locator number (DLN) of the identity theft return in the MISC field. Only TC 976 will post to MFT 32. A return moved to MFT 32 can be viewed using CC TRDBV.

Determination and Closure Instructions

  1. First, check for the presence of one of the IDRS control bases, (open or closed), listed in the table below. The control base is input when the taxpayer goes through the Taxpayer Protection Program (TPP) authentication process. If the control base is present, then follow the table procedures to expedite closure of the unpostable return. If the control base is not present, continue to the Determination and Closure Instructions table in paragraph two.

    If this control base is present... Then...
    1. IDRS number "1487333333", in "M" status, with activity code "NONIDT" and category code "MISC Post the return per Row A instructions in the Determination and Closure Instructions table.
    2. IDRS number "1487311111", in "M" status, with activity code "IDT" and category code "MISC" . Move the return to MFT 32 per Row B instructions in the Determination and Closure Instructions table.
  2. Follow the steps in the Determination and Closure Instructions table below to close the unpostable and input remarks.

    If... And... Then...
    A. The determination is that the return was filed by the social security number (SSN) owner Research supports this determination per IRM 3.28.4.5.4, Research Steps.

    Note:

    If you identify that a return filed by the SSN owner for the same tax period is already posted to the invalid side of MFT 30, contact the Entity Unit to merge the return to the valid side. Once that return has posted to the valid side, then continue to follow the procedures in this section.

    Note:

    If the return appears to be a duplicate of a return already posted to the valid side of MFT 30 or posted to MFT 32, follow procedures in IRM 3.28.4.5.13, Duplicate Returns.


    Post the return:
    1. Access CC UPDIS. (Response screen will be CC UPRES).

    2. If a TC 971 AC 052 with matching DLN is posted to the module, close with Unpostable Resolution Code (URC ) 6 and input Computer Condition Code “1”.

      Note:

      The DLN of the TC 971 AC 052 must match the DLN of the return in question except for the document code (4th and 5th digits) which will always be "77",

    3. If TC 971 AC 052 with matching DLN is not posted to the module, close with URC 0.

    4. Input comments “SPIDT-Good.”

    B. The determination is that the return was not filed by the SSN owner This was determined because
    • Information on IRPTR doesn’t match or

    • IRPTR is not available and other research doesn’t support income claimed.

    Research supports this determination per IRM 3.28.4.5.4, Research Steps.
    If 2017 or 2018 tax year return, move the return to MFT 32:
    1. Input TC 971 AC 111 on MFT 30 and include the document locator number (DLN) of the Identity Theft return in the MISC field. See IRM 25.25.6-7, Command Code (CC) FRM77 TC 971 AC 111 Input Screen.

    2. Suppress any notices.

    3. Using CC UPRES, close the unpostable with URC 6, input CCC "3" and input a release cycle (YYYYCC) in the REL CYC field that is one cycle beyond the current cycle . If an IDRS error message appears "EXISTING CCC 3", post the return with URC "0" and do not input CCC "3" .

    4. Input comments "SPIDT-BAD" .

    5. Send a 4310C letter to the address of the SSN owner, see IRM 3.28.4.5.5.1, Sending the Closing Letter, for instructions.

    6. Input the Identity Theft indicator, see IRM 3.28.4.5.7, Inputting IDT Theft Indicators.

    If 2016 tax year or earlier return,≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. Using CC UPRES, close the unpostable≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡

    2. Input comments "SPIDT-BAD."

    3. Send a closing letter to the address of the SSN owner, see IRM 3.28.4.5.5.1 , Sending the Closing Letter, for instructions.

    4. Input the identity theft indicator, see IRM 3.28.4.5.7, Inputting IDT Theft Indicators.

    C. The determination is that the return was not filed by the SSN owner
    • CC IRPTR is available to verify that the income was actually earned. May be employment related identity theft fraud. Possible multiple people reporting income under same SSN.

    • Research supports this determination per IRM 3.28.4.5.4, Research Steps.

    1. Move the return to an Internal Revenue Service Number (IRSN). Use a existing IRSN if one is identified. Otherwise complete Form 9956, Request for Temporary IRSN, and forward to the Entity Unit or follow local procedures for assigning an IRSN. CC TMSSN is used to assign a new IRSN. See IRM 2.4.59, Command Code TMSSN.

    2. Once the IRSN is assigned, forward the case to Rejects. Input URC 8 with Null 01 in UPRES. In the remarks field put “IRSN 9XX-XX-XXXX*”.

    3. Complete Form 8749, Unpostable Action and Routing Slip (or locally developed form), to request Rejects deny the personal exemption for the primary taxpayer, remove any Earned Income Credit (EIC), and input CCC 3 to freeze any possible refund. Also include the closing date in box 17.

    4. Attach Form 8749 to case along with edited paper return or MeF print and send to Rejects. For Philadelphia DLN cases worked by CMODE, once a week on Friday morning, the work leader will send all the completed Form 8749s by secure e-mail to the Ogden Rejects contact.

    5. Send Letter 4456C and Letter 4457C per IRM 3.28.4.5.8.

    6. Input identity theft indicators, see IRM 3.28.4.5.7Inputting Identity Theft Indicators.

    7. Close the case.

    D. Unable to make a determination whether or not the return was filed by the SSN owner Cannot verify per IRM 3.28.4.5.4, Research Steps. Send Letter 4455C for additional information. See IRM 3.28.4.5.6.

    Note:

    If a mixed entity condition is identified, input a note in Accounts Management System.

Sending the Closing Letter
  1. A closing letter must be sent to inform the taxpayer of the actions taken on the account. Update CC ENMOD as needed, to the confirmed good address and send Letter 4310C, IRS ID Theft Post-Adjustment Letter. See IRM 25.23.2.3.6, When to Update the Victim's Address, for more information. If a confirmed good address cannot be located, update the address to the Service Center address and do not send Letter 4310C. See IRM 3.13.5.64(2), Campus Address Used Only When Taxpayer Address is Unavailable, for the appropriate campus address format.

    Note:

    Do not send Letter 4310C to a deceased taxpayer. Send the letter to the deceased taxpayer's personal representative on the account or a surviving spouse.

    Caution:

    Do not send Letter 4310Cr if any of the following indicators are on the account: TC 971 AC 505 IR20150521512, TC 971 AC 505 IR20150521555 or TC 971 AC 505 IR20150521556. These indicators mean that the taxpayer’s TIN was part of the “Get Transcript” breach. Letter 4310C cannot be used because it contains links to the on-line applications which these taxpayers are blocked from using. Use Letter 4674C, Identity Theft Post Adjustment Victim Notification Letter, instead, to apprise the taxpayer of actions taken and include the following paragraphs:

    Paragraphs for Letter 4674C
    C
    K
    L
    U
    V
    Y
    h
    m (fill-in: If you have questions about this letter, contact the IRS for Specialized assistance at 800-908-4490, Monday - Friday, 7 a.m. - 7 p.m. your local time (Alaska & Hawaii follow Pacific Time))
     
     
     
     
     
  2. If the letter is returned as undeliverable, research to see if there was a typographical error or omission in the address or whether the letter was sent to appropriate address. If the address can be corrected, resend the letter, otherwise destroy as classified waste.

Resolution for MFT 29 Form 5329
  1. A return that meets the criteria for UPC 147 RC 0 may also have an associated Form 5329, Additional Tax on Qualified Plans, on MFT 29. If the MFT 29 form unposts as UPC 147 RC 0, close the unpostable with the same resolution as the associated MFT 30 return.

Non-Identity Theft Related Issues on UPC 147 Returns
  1. The determination may be that the return was filed by the SSN owner, but one of the following issues is present:

    • Return was processed to the wrong tax period

    • Multiple years of income on one tax year

    • An Internal Revenue Service Number (IRSN) was processed to a Social Security Number (SSN)

    • Excessive withholding that is not supported by Forms W-2,1099 or other valid supporting documents per CC IRPTR research. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. Close the unpostable to Rejects with URC 8 with Null 01. Send the return to Rejects with Form 8749, Unpostable Action and Routing Slip, explaining the needed correction. Also request input of special processing code (SPC) "B" to prevent another UPC 147 RC 0 from generating.

Letter 4455C for Additional Information

  1. If unable to make a determination whether or not the return was filed by the SSN owner. Send Letter 4455C, UPC 147 — Taxpayer Inquiry Letter, to the taxpayer’s address on the return. Select the Paragraph A, B or C address that corresponds to the campus sending the letter and include the correct campus fax number.

  2. Input the following comments to notify other functions that correspondence was sent. Use CC UPCASSC to suspend the case for up to 45 calendar days for domestic mail and 55 calendar days for international mail See IRM 3.12.179.5.3, UPCAS, for information on using CC UPCASSC.

    If... Then...
    1. Correspondence is needed for additional information from the taxpayer Access CC UPCASZ and input comments "SPIDT-4455C SENT" .
    2. Correspondence is needed a second time (ex: a requested page is missing or not legible) Access CC UPCASZ and input comments "SPIDT-2nd CORRSENT" .
  3. Take the following action based on the response to Letter 4455C:

    Note:

    Re-check IRPTR to see if any wages, withholding, 1099s, etc. have been added since the correspondence was sent. Also check for the following updated information: a second return has posted on the account; an address has been updated; a filing extension (TC 460) or payment (TC 610) has posted to the account; there is additional phone or Taxpayer Assistance Center (TAC) notes on the Accounts Management System (AMS). Use the new information in addition to the correspondence response to aid in making a determination.

    If... Then...
    1. The taxpayer provides a response sufficient to make a determination of whether or not the return was filed by the SSN owner. Close the unpostable by following the appropriate determination and closure instructions. See IRM 3.28.4.5.5(2), table for instructions.
    2. The taxpayer does not respond within the prescribed time frame. See IRM 3.28.4.5.5(2) table, row B or C for instructions to move the return to MFT 32 or post the return to an Internal Revenue Service Number (IRSN).
    3. The taxpayer’s response is incomplete (indicates that they filed the return but does not provide all the requested information or response is not legible.) Send Letter 131C, Information Insufficient or Incomplete for Processing Inquiry or other appropriate letter to request the missing information. Input comments "SPIDT-2nd CORRSENT and suspend for the appropriate time period."

    Note:

    Make sure to review the account for any new and relevant information prior to sending a second request.

  4. If a late response to Letter 4455C is received, research the account to determine what action to take.

    If... And... Then...
    A. The taxpayer submits the requested documentation or a valid TIN The return has been posted to an IRSN,
    1. Take appropriate action to merge/resequence the IRSN to the provided TIN.

    2. Adjust the account to allow any exemptions and/or credits that were disallowed when the return posted to the IRSN.

    B. The taxpayer submits the requested documentation or a valid TIN The return has been moved to MFT 32. Move the return back to MFT 30:
    1. Input TC 971 AC 111 on MFT 32, include the document locator number (DLN) of the return to be moved to MFT 30 and include the notice suppression, See IRM 3.28.4.5.12, Returns on MFT 32.

    2. Reverse any TC 971 AC 506 incorrectly posted on the account. See IRM 25.23.2-9, IMF Only TC 972 AC 506 Tax-Related Reversal of IDT Case Closure, IRS Identified.

    C. The taxpayer submits the requested documentation or a different/better TIN The return has not posted to an IRSN yet.
    1. Monitor the IRSN for posting of the return.

    2. Take appropriate action to merge/resequence the IRSN to the provided TIN.

    3. Adjust the account to allow any exemptions and/or credits that were disallowed when the return posted to the IRSN.

    D. The taxpayer responds that she/he did not file the return   Ensure that the unpostable has been closed following the procedures at IRM 3.28.4.5.5table, row B or C for instructions to move the return to MFT 32 or post the return to an Internal Revenue Service Number (IRSN), including inputting the appropriate IDT indicator.
  5. If the letter is returned as undeliverable, research to see if there was a typographical error or omission in the address or whether the letter was sent to appropriate address. If the address can be corrected, resend the letter, otherwise destroy as classified waste.

Inputting Identity Theft Indicators

  1. When the unpostable condition is resolved, the account must be marked with identity theft (IDT) indicators as follows. For more information, see IRM 25.23.2-8, IMF Only TC 971 AC 506–IRS Determined Tax-Related Identity Theft Case Closure.

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡  
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡  
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Example 1:
    AA 1040 2012 2013-06-10 N/C P 1 MEFILE MF UNPOSTABLE
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    AC 1040 2012 2013-02-14 N/C P 1 ONLINE ELF REJECTED
    Example 2:
    AA 1040 2012 2013-04-17 N/C P 1 PAPER MF POSTED
    AB 1040 2012 2013-06-10 N/C P 1 MEFILE MF UNPOSTABLE
  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    AA 1040 2012 2013-06-10 N/C P 1 MEFILE MF UNPOSTABLE
    AB 1040 2012 2013-02-14 N/C P 1 ONLINE ELF REJECTED

Correspondence after Issuing an Internal Revenue Service Number (IRSN)

  1. After establishing an IRSN or moving the return to an existing IRSN, send the following correspondence to the address as indicated in the table.

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

    If the address on the tax return and the LKA are the same address, only issue Letter 4456C.

Replies to Letter 4456C, UPC 147 - Temporary Number Assignment
  1. Take the following action based on the response to Letter 4456C:

    If... And... Then...
    A. The taxpayer submits the requested documentation to substantiate that they are the social security number (SSN) owner or provides a valid taxpayer identification number (TIN) The return has been posted to an Internal Revenue Service number (IRSN)
    1. Take appropriate action to merge/resequence the IRSN to the correct TIN.

    2. Adjust the account to allow any exemptions and/or credits that were disallowed when the return posted to the IRSN.

    B. The taxpayer submits the requested documentation to substantiate that they are the social security number (SSN) owner or provides a different/better taxpayer identification number (TIN) The return has not posted to an IRSN yet. Monitor the IRSN for posting of the return and follow the steps in row A above.
    C. The taxpayer responds that s/he did not file the return   No further action is required.

Sending Documents to Files

  1. Various documents will be received that need to be sent to Files. They include responses to correspondence and duplicate returns.

  2. The documents should be used in determining the identity of the return filer. Once the case is resolved, the documents should be attached to the return and sent to Files.

  3. If the return was e-filed, follow the instructions in paragraph four below for sending the documents to Files.

    Exception:

    If the return was moved to MFT 32≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , then do not input a TC 290 to generate a non-file document locator number (DLN). Send the correspondence to the Alpha Files using Form 3210, Document Transmittal. In the 'Remarks' section, notate: “Identity Theft returns(s)/forms or correspondence, store in the Alpha Files”. See IRM 3.5.61.21.10, Identity Theft Returns - Alpha Files.

  4. The IAT tool, REQ54 Tool-Adjustment Calculator, should be used to input the TC 290 on IDRS to generate a non-refile DLN. The tool will create a Form 12249, Adjustment Document, to attach to the documents. The following information should be used for filling out fields on the tool.

    1. Blocking Series (BLK) as "05"

    2. IRS Received Date (IRS-RCVD-DT) as "IRS Received Date stamped on document"

    3. Transaction Code (TC) as "290"

    4. Transaction amount (AMT) as "00"

    5. Hold-CD as "3"

    6. SOURCE-DOCUMENT-ATTACHED as "Y"

    7. REMARKS as "Attachment only"

  5. Prepare a routing form and send the documents with the Form 12249 to Files within 5 days of input. Monitor the TC 290 until posted.

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

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

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

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    Note:

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

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Review of Closed UPC 147 RC 0 and RC 1 cases with -R Freezes

  1. Taxpayer Advocate Service (TAS) Operational Assistance Requests (OARs) may be received on closed UPC 147 RC 0 and RC 1 cases that have a -R freeze input by the SP IDT function (return was not moved to MFT 32).

  2. Review the return and account information again. Re-check CC IRPTR to see if any wages, withholding, Form 1099s, etc., have been added since the case was closed. Use the new information to aid in making a determination.

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡   ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

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

Returns on MFT 32

  1. Requests may be received asking that a return be moved from MFT 32 to MFT 30 in order for a refund to be processed. SP IDT will process the reversals only if return was originally moved by SP IDT or the ERS/Rejects function input special processing code (SPC) "T" .

    Note:

    SPC "T" will show on the CC TRDBV “CODES” screen as Identity Theft Code "T."

MFT 32 Reversals - UPC 147 RC 0 and RC 1
  1. For cases where the return originally unposted as UPC 147 RC 0 or RC 1 on MFT 30, research to verify whether the return was actually filed by the social security number (SSN) owner. Review any information included with the referral or Operational Assistance Request (OAR) and check Accounts Management System (AMS)/Correspondence Imaging System (CIS) for relevant notes and documents.

  2. Take the following actions to move the return to MFT 30:

    Steps for Inputting TC 971 AC 111
    A.
    • Check for an unreversed TC 971 AC 121 on MFT 30 for the same tax period.

    • If present, open a control base in "M" status to IDRS number "1487399999" using activity code "972" and category code "MISC" . This control will notify IVO to reverse the 971 AC 121.

    B. Input TC 971 AC 111 on MFT 32, including the document locator number (DLN) of the return to be moved to MFT 30 and the notice suppression. See IRM 25.25.6-7, Command Code (CC) FRM77 TC 971 AC 111 Input Screen.

    Note:

    Input a posting delay code of one when also opening a control to IVO IDRS number "1487399999" to reverse a posted TC 971 AC 121.

    Note:

    Do not input TC 971 AC 111 to move a tax year 2016 and earlier return. Manually reprocess the return to MFT 30 following the procedures at IRM 3.28.4.5.12.3, Procedures for Manually Reprocessing MFT 32 Returns.

    Note:

    If the TC 971 AC 111 input on MFT 32 unposts and cannot be corrected, then reprocess the return manually. See procedures at IRM 3.28.4.5.12.3, Procedures for Manually Reprocessing MFT 32 Returns.

    C. Monitor the account for the return to post. Open an SP IDT control base using category code "MISC" , activity "MFT32REV" , and status "M"
    D. Open a control base to Integrity and Verification Operations (IVO) IDRS number 1487377777 using category code "MISC" , activity "MFT32REV" and status "M" . This control base will notify IVO to remove the return from the Scheme Tracking and Referral System (STARS) database since it is not considered identity theft.
    E. Reverse any TC 971 AC 506 that was input when the return was moved to MFT 32.

    Note:

    The date of the TC 972 AC 506 must match the original transaction date. See IRM 25.23.2-9, IMF Only TC 972 AC 506 Tax-Related, Reversal of Identity Theft Case Closure, IRS Identified.

    F. Update AMS notes as appropriate.
  3. If the return unposts on MFT 30 take the following steps:

    If... Then...
    A. The return unposts as UPC 147 RC 0
    • Compare the Document Locator Number (DLN) of the unpostable return with the DLN of the TC 976 posted on MFT 32 to ensure it is the same return.

    • Reassign the unpostable to the SP IDT function and close with URC 0. Continue to monitor the return to post.

    B. The return unposts UPC 126 RC 0
    • Compare the document locator number (DLN) of the unpostable return with the DLN of the TC 976 posted on MFT 32 to ensure it is the same return.

    • Continue to monitor the account until Return, Integrity and Compliance Services (RICS) closes the unpostable and the TC 150 posts.

      Note:

      Close any OAR with the response that the case should be referred to IVO for further action.

  4. Take the following action once the return has posted to MFT 30.

    Note:

    UPC 126 RC 1 generates for returns moved from MFT 32 to MFT 30. The UPC 126 RC 1 will systemically close URC 0 to post on MFT 30.

    If... Then...
    A.
    • TC 971 AC 052 is present on TXMOD with a "blank" MISC field or

    • TC 971 AC 052 contains a MISC field of "RRPNONIDT" (the DLN of the TC 971 AC 052 must match the DLN of the return in question unless the account also contains a TC 971 AC 052 with a MISC field of "RRPIDT")

    EXCEPTION: If the account contains both a TC 971 AC 052 "RRPIDT" marker and a TC 971 AC 052 "RRPNONIDT" marker, then the DLN of the TC 971 AC 052 "RRPNONIDT" marker will not match the DLN of the return. Utilize the DLN of the TC 971 AC 052 "RRPIDT" marker to determine which return is being reviewed by IVO for income verification.
    • Open a control base on MFT 30 to IVO IDRS number "1487355555" using category code "32RV", activity "MFT32REV", and status "M". The IVO function will review the case and make the determination to release the refund.

      Note:

      Close any Operational Assistance Request (OAR) with the response that the case should be referred to IVO for further action.

    B. TXMOD does not contain a TC 971 AC 052 or contains a TC 971 AC 052 with an entry in the MISC field other than "RRPNONIDT" . Input TC 290 for $.00 to release the refund.

    Note:

    If the taxpayer has requested credit elect, manually transfer the credit to the next tax year.

MFT 32 Reversals - Special Processing Code (SPC)"T"
  1. Rejects will forward late replies to 12C letters, when ERS/Rejects has moved the return to MFT 32 with SPC" T" . In these cases, the taxpayer will have responded that they did “file the return”. Operational Assistance Requests (OARs) or Form 4442, Inquiry Referrals, may also be received for a return moved to MFT 32 with SPC "T" .

  2. Review the documentation provided for information that verifies that the return was filed by the taxpayer. If estimated payments were not reported, verify whether the taxpayer made the payments or whether the payments were applied to the correct tax period or account. Research using RTR, IMFOLT, IRPTR, etc. See IRM 3.12.3.4.8.4 for more information on reviewing the reply to correspondence. If you determine that the payment does not belong to the taxpayer but you can determine where the payment should be posted, transfer the misapplied credit to the correct account.

  3. If you cannot determine the correct payer, transfer the payment to the Unidentified Remittance File (URF) or the Excess Collection File (XSF). Use Form 2424 to send a payment less than twelve months old to URF. See IRM 3.17.10.3.2, Receiving Unidentified Remittance Cases, paragraphs four and five for instructions on filing out Form 2424. If the payment is older than twelve months, then send it to XSF using Form 8758. See IRM 3.17.220.2.1.1, Preparation of Form 8758, for instructions on preparing Form 8758.

    Note:

    If the payment was made through the Electronic Federal Tax Payment System (EFTPS), fax a request to the EFTPS unit in Ogden Accounting for information that would identify who made the payment. Send the fax to 855-295-0850 and attach a TXMODA screen showing the EFTPS payment. If the EFTPS payer name matches the taxpayer name, allow the payment to remain on the module. If the payment contact information does not match, send the payment to URF or XSF as applicable.

Steps to Move a Special Processing Code "T" Return from MFT 32 to MFT 30
  1. Take the following actions to move the return back to MFT 30:

    Steps to move a SPC T return from MFT 32 to MFT 30
    A. Check for an unreversed TC 971 AC 121 on MFT 30 for the same tax period. If present, open a control base in "M" status to IDRS number "1487399999" using activity code "972" and category code "MISC" . This control will notify IVO to reverse the 971 AC 121.
    B. Input TC 971 AC 111 on MFT 32, including the document locator number (DLN) of the return to be moved to MFT 30 and the notice suppression. See IRM 25.25.6-7, Command Code (CC) FRM77 TC 971 AC 111 Input Screen.

    Note:

    Input a posting delay code of one when also opening a control to IVO IDRS number "1487399999" to reverse a posted TC 971 AC 121.

    Note:

    Do not input TC 971 AC 111 to move a tax year 2016 and earlier return. Manually reprocess the return to MFT 30 following the procedures at IRM 3.28.4.5.12.3, Procedures for Manually Reprocessing MFT 32 Returns.

    Note:

    If the TC 971 AC 111 input on MFT 32 unposts and cannot be corrected, then reprocess the return manually. See procedures at IRM 3.28.4.5.12.3, Procedures for Manually Reprocessing MFT 32 Returns.

    C. Monitor the account for the return to post. Open an SP IDT control base using category code "MISC" , activity "MFT32REV" , and status "M" .
    D. Reverse any TC 971 AC 506 that was input when the return was moved to MFT 32.

    Note:

    The date of the TC 972 AC 506 must match the original transaction date. See IRM 25.23.2-9, IMF Only TC 972 AC 506 Tax-Related, Reversal of Identity Theft Case Closure, IRS Identified

    E. Update AMS notes as appropriate.
  2. Take the following steps once the return has posted on MFT 30. The return may directly post to MFT 30 or unpost UPC 126 RC 1 and automatically close URC 0.

    If... And... Then...
    A.
    • TC 971 AC 052 is present on TXMOD with a "blank" MISC field or

    • TC 971 AC 052 contains a MISC field of "RRPNONIDT" (the DLN of the TC 971 AC 052 must match the DLN of the return in question.)

    Exception: If the account contains both a TC 971 AC 052 "RRPIDT" marker and a TC 971 AC 052 "RRPNONIDT" marker, then the DLN of the TC 971 AC 052 "RRPNONIDT" marker will not match the DLN of the return. Utilize the DLN of the TC 971 AC 052 "RRPIDT" marker to determine which return is being reviewed by IVO for income verification.
     
    • Open a control base on MFT 30 to IVO IDRS number "1487355555" using category code "32RV", activity "MFT32REV", and status "M". The IVO function will review the case and make the determination to release the refund.

      Note:

      Close any Operational Assistance Request (OAR) with the response that the case should be referred to IVO for further action.

    B. TXMOD does not contain a TC 971 AC 052 or contains a TC 971 AC 052 with an entry in the MISC field other than RRPNONIDT. the account does not need adjustment, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

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    C. TXMOD does not contain a TC 971 AC 052 or contains a TC 971 AC 052 with an entry in the MISC field other than RRPNONIDT. taxpayer attaches a 1040X to the reply, Send entire response to the 1040X unit. Do not release the -R freeze.
    D. TXMOD does not contain a TC 971 AC 052 or contains a TC 971 AC 052 with an entry in the MISC field other than RRPNONIDT. the late reply includes documentation for additional credits, deductions, or other changes to total tax, balance due, or refund. Send entire response to Accounts Management. Do not release the -R freeze.
Procedures for Manually Reprocessing MFT 32 Returns
  1. There are times when a return cannot be systemically moved from MFT 32 to MFT 30:

    • When a TC 971 AC 111 is input to move the return and the TC 971 repeatedly unposts

    • The return is for tax period 2016 or earlier

    In these circumstances, the return will have to be manually reprocessed.

  2. Obtain a paper version of the return for reprocessing.

    If... Then...
    A. eFiled return Request print of return using CC TRPRT. See the Command Code TRPRT Job Aid for more information.
    B. MeFile return Request print using Employee User Portal (EUP)
    C. Paper return Request from Files. If return is not available on first request, telephone taxpayer or send 418C letter requesting copy of return and attachments.

    Note:

    Check whether return is available on Correspondence Imaging System.

  3. Prepare the return for processing as follows:

    • Use red ink to edit the return.

    • For TY 2017 returns, edit any missing estimated payments on line 65 of Form 1040.

    • Edit special processing code "SPC B" on the return.

    • Line through the document locator number (DLN) if present.

    • Edit "SP IDT" in the upper left-hand corner of the return. Do not write "copy" on the return and circle out "copy" or "duplicate" if present.

    • Write - "Do Not Correspond For Signature" at the bottom of the return.

    • Edit the return processable date (RPD) on the front of the return, in MMDDYY format.

      Note:

      Only edit the RPD if it is later than the received date already present on the return. If original return was unprocessable because of missing information, use the 12C reply date or OAR/referral date for the RPD.

    • Include with the return, all documentation and correspondence replies used to verify the missing information and determine the return processable date.

    • Route to Batching for expedited processing.

    • Monitor the return to post. Open an SP IDT control base using category code "MISC" , activity "MFT32REV" , and status "M" .

  4. Reverse any TC 971 AC 506 that was input when the return was moved to MFT 32.

    Note:

    The date of the TC 972 AC 506 must match the original transaction date. See IRM 25.23.2-9, IMF Only TC 972 AC 506 Tax-Related, Reversal of Identity Theft Case Closure, IRS Identified.

Taxpayer Advocate Service (TAS) Request for Manual Refund
  1. A TAS Operation Assistance Request (OAR) may request authority to process a manual refund for a hardship case related to a return incorrectly moved to MFT 32. If you determine that the refund should be released but the return is still in the extended process of posting back to MFT 30, you may give TAS the delegated authority to issue a manual refund. Do not give permission for a manual refund if TC 971 AC 052 is present on TXMOD with a "blank" MISC field or TC 971 AC 052 contains a MISC field of "RRPNONIDT" , indicating that the income and/or wages will need further verification by IVO.

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Duplicate Returns

  1. When researching a UPC 147 RC 0 unpostable, you may identify a return that appears to be a duplicate of a return posted to MFT 30. If the unpostable return is determined to have been filed by the SSN owner, then check whether the return matches all of the following items on the posted return and can be considered to be a “true" duplicate.

    Note:

    These procedures do not apply if the original or duplicate return contains a math error.

    • Name Control.

    • Spousal Social Security Number (S-SSN).

    • Address.

    • Filing Status Code (FSC) Compare the input with the controlling name line.

    • Number of exemptions.

    • Adjusted Gross Income (AGI).

    • Taxable Income.

    • Tax.

    • Balance Due/Refund.

    • Credit Elect, if present. Compare input with the sum of the Unapplied Credit Elect amount PLUS the TC 83X amount.

    • Direct Deposit Information.

    This list is not all inclusive.

  2. Use the table to process the duplicate return when a return is posted to MFT 30.

    If... And... Then...
    A. Unpostable return is a "true" duplicate the Julian date and last digit (processing year) of the DLN is earlier than the posted return’s Julian date Treat as an original and continue to follow instructions in IRM 3.28.4.5.5(2) for posting the return.
    B. Unpostable return is a "true " duplicate the Julian date and last digit (processing year) of the DLN is later than the posted return’s Julian date
    1. Close with URC D and input remarks, "SPIDT-TRUE DUP" .

      Note:

      Only delete the return after supervisory approval.

    2. Cross through the DLN

    3. Fill out Form 9856. Attach to return and forward to Files to be associated with the posted return. See IRM 3.28.4.5.9 for procedures to associate a duplicate return to an original MeF return.

    C. Unpostable return is not a "true" duplicate   Continue to follow instructions in IRM 3.28.4.5.5(2) for posting the return.
  3. Use the table below to process the duplicate return when a return is already posted to MFT 32.

    If... And... Then...
    A. Unpostable return is a "true" duplicate the Julian date and last digit (processing year) of the DLN is earlier than the MFT 32 posted return’s Julian date Treat as an original and continue to follow instructions in IRM 3.28.4.5.5(2) for posting the return.
    B. Unpostable return is a "true " duplicate the Julian date and last digit (processing year) of the DLN is later than the MFT 32 posted return’s Julian date
    1. Suspend the unpostable return and follow the procedures in IRM 3.28.4.5.12.1 to move the return on MFT 32 back to MFT 30.

    2. Close the unpostable return with URC "D" and input remarks, "SPIDT-TRUE DUP" .

      Note:

      Only delete the return after supervisory approval.

    3. Cross through the DLN.

    4. Fill out Form 9856. Attach to return and forward to Files to be associated with the posted return. See IRM 3.28.4.5.9 for procedures to associate a duplicate return to an original MeF return.

    C. Unpostable return is not a "true" duplicate Return posted to MFT 32 is determined to have been filed by the SSN owner.
    1. Follow the procedures in IRM 3.28.4.5.12.1 to move the return on MFT 32 back to MFT 30.

    2. Continue to follow the instructions in IRM 3.28.4.5.5(2) for resolving the unpostable return

    .