3.12.179. Individual Master File (IMF), Payer Master File (PMF) Unpostable Resolution

(1) A portion of the daily receipts of returns and transaction codes at a Submission Processing site requires research for Social Security Numbers (SSN) and perfection of the Individual taxpayer’s account. If the entity on the account and the entity on the return do not match, then an Unpostable is created. IMF Entity Unpostables is responsible for such research and perfection. IMF Entity Unpostables also processes specific documents related to filing requirements of the IMF taxpayer. This IRM provides procedures for processing unpostable returns and transaction codes by establishing, maintaining and updating entities on the IMF.

(1) Authority of this IRM also comes from the following sources:

• Title 26 of the United States Code (USC), more commonly known as the Internal Revenue Code (IRC)

• IRS Restructuring and Reform Act (RRA 98) Section 3705(a)

• Affordable Care Act (ACA)

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

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

• Tax Cuts and Jobs Act (TCJA)

(2) IRS Employee Contact--Restructuring and Reform Act (RRA) Section 3705(a).

(3) Congressional Acts which outline additional authorities and responsibilities like the Travel and Transportation Reform Act of 1998 or the Tax Reform Act of 1986.

(4) All Policy Statements for Submission Processing are contained in IRM 1.2.1, Servicewide Policies and Authorities, Servicewide Policy Statements. Additionally Policy Statements provide authority on the tax work being completed.

(1) The Campus Director monitors operational performance for the Submission Processing campus.

(2) The Operations Manager monitors operational performance for their operation.

(3) The Team Manager/Lead monitors and ensures they have the tools to perform their duties.

(4) The Team Employees follow the instructions contained in this IRM and maintain updated IRM procedures.

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

(2) Program Effectiveness

• Embedded Quality Submission Processing (EQSP)

• Balanced Measures

• Managerial Reviews

(3) Annual Review: The processes outlined in this IRM is reviewed annually to ensure accuracy and promote consistent tax administration.

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

(2) A list of acronyms and the definitions used in this IRM. This list is not all inclusive. For a complete listing of acronyms, please refer to the Acronyms Database (irs.gov)

(1) The following IRM’s and resources will assist in performing the work as outlined in this IRM:

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

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

• IRM 2.3.13, IDRS Terminal Responses - Command Codes FFINQ, REINF, and REMFE

• IRM 2.3.15, IDRS Terminal Responses - Command Code ENMOD

• IRM 2.3.17, IDRS Terminal Responses - Command Code ESTABD

• IRM 2.3.31, IDRS Terminal Responses - Command Code CFINK and RPINK for CAF Inquiry

• IRM 2.3.35, IDRS Terminal Responses - Command Code IRPTR

• IRM 2.3.37, IDRS Terminal Responses - Command Code UPTIN for the GUF System

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

• IRM 2.3.51, IDRS Terminal Responses - Command Code IMFOL

• IRM 2.3.60, IDRS Terminal Responses - Command Codes NAMEE

• IRM 2.3.62, IDRS Terminal Responses - Command Code ESTAB

• IRM 2.3.73, IDRS Terminal Responses - Command Codes TRDBV, TRERS ,TRPRT, and R8453.

• IRM 2.3.80, IDRS Terminal Responses - Command Code DDBKD

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

• IRM 2.4.17, IDRS Terminal Input - Command codes ADD24, 34, 48, ADD24, 34, 48 and FRM24, 34, 48

• IRM 2.4.19, IDRS Terminal Input - Command codes REQ77, FRM77 and FRM7A

• IRM 2.4.28, IDRS Terminal Input - Command Code STAUP

• IRM 3.5.10, Remittance Transaction Research (RTR) System

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

• IRM 3.12.32, General Unpostables

• IRM 3.12.37, IMF General Instructions

• IRM 3.13.5, Individual Master File (IMF) Account Numbers

• IRM 3.13.122, Individual Master File (IMF) Entity Control Unpostables

• IRM 3.17.21, Credit and Account Transfers

• IRM 3.17.46, Automated Non-Master File Accounting

• IRM 3.17.79, Accounting Refund Transactions

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

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

• IRM 21.4.6, Refund Offset

• IRM 21.5.5, Unpostables

• IRM 21.5.7, Accounts Resolution - Payment Tracers

• IRM 25.6, Statute of Limitations

• IRM 5.12.3, Lien Release and Related Topics

• Integrated Data Retrieval System (IDRS)

• IRS Source Home Page

• Employee User Portal (EUP)

• Servicewide Electronic Research Program (SERP)

• Submission Processing Design Center (SPDC)

• Integrated Document Solution Enterprise: Control D/ WebAccess

• Remittance Transaction Research (RTR) System

• Integrated Automation Technologies (IAT)

• Online Retrieval System (ORS) for the Social Security Administration (SSA) site

• IDRS Command Code Job Aid

• Name Control Job Aid

• Student Guide 2526-001

• http://core.publish.no.irs.gov/docs/pdf/d7071--2016-01-00.pdfIMF Unpostables Job Aid 2526-701

(1) The objective of the Unpostable function is to maintain the integrity of the Master File by identifying and resolving transactions that are not compatible with existing Master File programming or normal Submission Processing campus operating procedures. When transactions cannot post to the master file, SP employees will use IRM procedures to resolve the unpostable condition. Unpostables are accessed using the GUF system. The GUF system sorts unposted transactions in "category codes" for all master files.

(2) The Unpostable function must review and resolve unpostable records following IRM 3.12.32.7, Unpostable Inventory Management Guidelines, and the instructions in this IRM to ensure proper processing and posting, and to minimize adverse taxpayer contact.

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

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

3. Review all unpostable systemic problems to minimize taxpayer impact. Mass receipts of unpostables due to systemic issues involving accounts in balance due status will result in mass input to defer any later notices. Mass receipts result in immediate contact by management to the Notice Review function to ensure erroneous notices are not mailed. Contact management immediately upon identifying a possible systemic problem. Keep copies of examples and sanitize when appropriate.

4. IRM 25.6, Statute of Limitations, provides guidelines for clearing and processing cases of imminent statute expiration. Different methods are used to determine the assessment statute expiration date (ASED), refund statute expiration date (RSED), or collection statute expiration date (CSED). Unpostables must "clear" all statute-imminent cases, other than transaction code (TC) 291 or TC 301 decreases, through the Statute function. Transaction codes 291 and 301 decreases will be sent to the Accounts Management Correspondence section regardless of whether the statute is imminent or expired.

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

6. IRM 3.12.32, General Unpostables, provides guidelines for the General Unpostable Framework (GUF) system.

7. Processing of unpostable returns subject to return delinquency notices where the issuance of the first notice is imminent or issued must include the processing of a TC 590 / TC 599 closing code (cc) 017/018 to both minimize unnecessary collection activity and adverse taxpayer impact.
   Use Closing Code 017 if the return is being processed BEFORE the Program Completion Date (PCD).
   Use Closing Code 018 if the return is being processed AFTER the PCD.

(3) Integrated Automation Technologies (IAT) tools are designed to increase efficiency and accuracy of regular processing. The tools allow users to be more productive and help employees ensure accurate processing. The use of an IAT tool is mandatory. See the IAT website Integrated Automation Technologies - Home (sharepoint.com) for a list of available tools and User Guides. Managers will ensure that all employees receive training on the utilization and application of IAT tools.

(1) IRM 3.12.32, General Unpostables, provides:

• Instructions for input of terminal requests to display, suspend, research and resolve unpostable cases.

• General guidelines regarding processing of Unpostable cases.

• Case reassignment guidelines and procedures.

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

• Unpostable category information, details for Form 4251, Return Charge-Out, specific details and explanations of Unpostable Listings and Reports, Command Code descriptions, Terminal Screen formats, and general Unpostable Resolution Code (URC) corrective action descriptions.

(2) In general, tax examiners will not reassign cases to or from themselves to another employee number or area unless directed by specific instructions in this manual.

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

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

(3) With CADE 2, the IMF campus cycles are:

• Campus Cycle: Thursday - Wednesday

• Master File Processing: Friday - Thursday

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

• Unpostables: New available Tuesday; Closing Tuesday

(4) IMF transaction posting time frames are outlined as follows:

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

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

(5) Individual Master File (IMF) processes and posts specific transactions daily. IMF identifies unpostable transactions each day of the cycle. However, GUF continues to run weekly. Unpostables for all 5 days of the IMF cycle are marked for GUF to locate for opening runs beginning on Mondays.

(6) IMF does not re-analyze the account at the end of the cycle to determine if the unpostable condition is resolved. There is a potential that the transaction needed to resolve the unpostable condition may post on a different day in the same cycle. In this situation, close the unpostable with URC 0.

(7) GUF 07 reports (which also generate Form 4251) contains multiple IMF data rows for each day of the production cycle (data for Day 1 of the cycle, data for Day 2 of the cycle, etc.)

(8) Not all transactions or accounts post in IMF daily. Transactions or accounts marked as weekly resequence until Master File processes the end of the cycle on Thursday.

(9) Corporate Files On-Line (CFOL) CC IMFOL and Integrated Data Retrieval System (IDRS) CC TXMOD will contain indicators on the screen to identify whether the account is a Daily account or a Weekly account.

(1) Weekly management review of unpostables includes identification of unpostables to be assigned and worked in the following priority:

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

2. Cash flow (interest impact)

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

4. All other conditions

(2) Weekly management review includes:

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

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

   Note: See IRM 3.30.123.2.4.4(2)(e) for specific repeat unpostable percentages.

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

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

(3) To minimize delays and costs to other Submission Processing campus functions ensure the following:

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

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

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

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

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

6. No Reply actions will be based on a 45 -day period for Domestic and International cases, beginning with the day the letter is mailed to the taxpayer.

(1) When resolving Unpostable records, follow the intent of the initiator as much as possible within the provisions of the Internal Revenue Code and the appropriate Master File computer programming. If there is a conflict between the general and specific instructions, notify the Headquarters Analyst for a determination.

(2) Include priority for processing payment transactions and the use of a hold via Command Code (CC) STAUP. For CC STAUP guidelines see IRM 3.12.179.15.2, Taxpayer Delinquent Investigation (TDI) and Notice Delay Information.

(3) Use the guidelines in IRM 3.12.179.11.2, Taxpayer Contact to resolve Unpostables, for Additional Information, to ensure consistency in communication with taxpayers through phone and correspondence.

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

(5) Exercise precautions and do thorough research when correcting unpostable records to apply payments to the correct module. When a payment is identified for a particular tax module and has posted or unposted within another module, correct by closing related unpostables together or inputting a credit transfer. Accurate posting of these transactions will expedite processing and minimize adverse taxpayer contact.

(6) Ways to minimize delay and cost to other campus functions:

1. Prior to transferring payments to the Unidentified Remittance File (URF), an attempt to contact taxpayers must be made if contact information is available. If the results of the contact are not conclusive, the payment must be transferred to the URF.

2. When modules are in credit status, contact the taxpayer to determine if payment is intended for another account.

3. Use caution when inputting transactions that will freeze accounts, such as TC 570 or TC 640.

4. Leaving remarks on a case is always recommended. If the case is resolved correctly, but the TE fails to leave remarks, this should not be subject to an error nor should the case be tore up by Quality Review team.

5. Attempt to resolve payment cases before requesting the document a second or third time. If the document is not available in RTR and is needed to resolve the case, request the document. Use CC UPCASD1 or CC UPCASD2 if the payment in question is the unpostable you are trying to resolve. Otherwise, use CC ESTABDO. Please refer to the IMF Unpostables Job Aid 2526-701 for an example of CC ESTABDO.. .

6. No reply actions is based on a 45-day -day period for Domestic and International cases, beginning with the day the letter is mailed to the taxpayer.

   Note: If the specific procedures conflict with unpostable philosophy, the specific Unpostable Code instructions take precedence.

(1) Cash and non-cash remittances found during processing after the mail opening operation are referred to as "discovered remittances."

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

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

(2) Unpostables will reassign cases to the appropriate function if certain criteria are met.

(3) There are four types of unpostable case closures:

1. AUTO (AUTO-VOID/AUTO REJECT) - Cases closed automatically by the GUF system. Applies to all unpostable functions. There are unpostable category codes which do auto-void/auto reject because of certain conditions that apply.

Note: Doc Code 51 unpostables cannot be GUF Auto-Closed Unpostable Resolution Code (URC) 2 to the originator.

2. MASS - Multiple cases closed with one GUF input action, batch closures.

3. FILES - After repeated attempts to secure the document, the Unpostable function will close the case to Rejects as a Special Search with "CC UPCASD4."

4. INDIVIDUAL - Single cases closed manually.

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

(2) If the IRS does not meet the 45-day interest free period for return processing, interest must be paid to the taxpayer.

(3) All unpostable returns identified on the GUF 07-42, New Unpostables with Interest Free Period Due to Expire report, and other unpostable returns which would result in a refund greater than the amount identified in the Campus as the Unpostable Interest Reduction Initiative tolerance amount, are processed as high priority work. Tax Examiners receive a GUF 51-43, Interest Reduction List report, listing "Interest Free Due to Expire" cases assigned to them. Cases must be worked, or documents ordered as soon as possible. Expedite manual refunds to Rejects if the interest free period is in jeopardy and the refund is $25,000 or more.

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

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

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

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

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

(9) When closing cases using URC 8 to Rejects, notate on the Form 8749 or 8-code slip, "Manual Refund."

(1) Submit IRM deviations in writing following instructions from IRM 1.11.2.2.3 , Internal Revenue Manual (IRM) Process, when Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

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

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

(1) The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate, that helps taxpayers and protects taxpayer rights. TAS offers free help to taxpayers when a tax problem is causing a financial difficulty, when they’ve tried and been unable to resolve their issue with the IRS, or when they believe an IRS system, process, or procedure just isn't working as it should. TAS strives to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.

(2) TAS criteria include economic burden, systemic burden, best interest of the taxpayer, and public policy. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, if additional information is required.

(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.

(1) Under certain limited circumstances where "hardship" exists, the Service Center may issue a manual refund of excess credits without first satisfying outstanding tax liabilities. These refunds are known as "Offset Bypass Refunds" (OBR’s). OBR’s may not be issued to bypass a Treasury Offset Program (TOP) obligation. Credits holding on an account are not eligible for refund to the extent that they will satisfy a TOP obligation.

1. Generally, for original returns, an OBR must be issued before the posting date (23C date) of the original return (TC 150) on which the overpayment was reported.

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

3. When the Unpostable function has problems determining whether "hardship" exists, they should suspend the case and include in remarks ”Possible Hardship” and contact local unpostable TAS liaison or lead for assistance. Action should be taken to prevent the posting of the assessment until such determination can be made.

(2) OBR’s can be requested by any functional office and must be signed by the authorized approving official as determined by your function.

(3) See IRM 21.4.6, Refund Offset, and IRM 3.17.79, Accounting Refund Transactions, for instructions as to what situations qualify for manual refunds, and how to complete the manual refund forms (Form 5792, Request for IDRS Generated Refund, and Form 3753, Manual Refund Posting Voucher).

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

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

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

   Example: Taxpayer A sends in a photocopy of a canceled check. In researching Taxpayer A's account, research determines a payment with the same transaction date but the DLN is different from that on the check, so instead of 00210-105-60025-X, it reads 00210-105-60026-X.

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

(1) IRC 6325(a) requires the IRS to release liens within 30 days when a bond is accepted, accounts are fully paid, satisfied, or are no longer legally enforceable. The 30-day time frame begins when credits are received, regardless of correct posting. IRC 6325(a) requires the issuance of a release of federal tax lien within thirty (30) calendar days of the date on which:

• The liability for the amount assessed, together with all interest in respect thereof is satisfied

• The liability for the amount assessed, together with all interest in respect thereof becomes legally unenforceable

• A bond is accepted

(2) Timely release and accuracy of the lien is essential. IRC 7432 gives taxpayers the right to sue the federal government for damages if the Service knowingly or negligently fails to release a lien.

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

• Form 3870, Request for Adjustment

• Premature assessment in Tax Court cases

• Pending abatements

• Corrected unpostables

• Delayed payment posting

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

1. IRS Source Homepage

2. SERP

3. Who/Where

4. Advisory

5. Lien Filing/Payoff/Release

6. Internal Requests

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

(1) For tax years 2014 through 2018, certain individuals must have Minimum Essential Health Coverage (MEC), have a coverage exemption, or make a Shared Responsibility Payment (SRP). For tax years beginning after December 31, 2018, the SRP is reduced to $0. This is indicated on the return by:

• Checking the full year coverage box

• Attaching Form 8965, Health Coverage Exemptions

• Making a Shared Responsibility Payment

(2) The SRP is assessed and collected under the new MFT 35.

(3) When the tax return posts, IMF generates the transactions to post the MFT 35 module one cycle later. The resequencing transactions can be viewed using CC IMFOLQ.

(1) IRC Section 965 (Repatriation Tax or Transition Tax) requires certain taxpayers to pay a transition tax on the untaxed foreign earnings of certain specified foreign corporations as if those earnings had been repatriated to the United States. Taxpayers will generally include amounts in income under section 965 in tax years 2017, 2018, or 2019. Taxpayers can elect to pay the net tax liability under section 965 in installments over eight years under section 965(h). A taxpayer may not receive a refund or credit of any portion of tax payments properly applied to the inclusion year (generally 2017 or 2018) unless and until the amount of the payments exceeds the entire unpaid income tax liability for the inclusion year, including all amounts to be paid in installments under section 965(h) in subsequent years. This provision impacts both IMF and BMF taxpayers. No new IRC 965 inclusion can be made after November 30, 2019. For IMF the inclusion year is 201712-201911. It is especially important not to remove Designated Payment Code (DPC) 64 for IRC 965 designated payments. It will harm the taxpayer and they receive a letter for non-compliance and the outstanding balance due.

(2) IRC 965 payment process:

1. A taxpayer should make two separate payments, one for the transition tax (identified as a TC 670 with DPC 64) and one for the remaining regular tax due. This may be an installment of the IRC 965 transition tax owed or the remaining full net tax liability under IRC 965.

2. The IRC 965 initial transition tax payments can be made electronically using Direct Pay, credit/debit card payment options and EFTPS. This is either the first year’s installment of the IRC 965 transition tax owed or the remaining full net tax liability under IRC 965. For the IRC 965 transition tax payment, there is no penalty for the taxpayers electing to use wire transfers as an alternative to otherwise mandated EFTPS payments. The taxpayers normally required to pay through EFTPS must submit the net tax liability under IRC 965 via wire transfer or they may be subject to penalties. On a wire payment of net tax liability under IRC 965, the taxpayer must use the 5 digit tax type code of 09650.

3. On a check or money order payment of tax owed resulting from section 965 of the Code, the taxpayer should include a payment voucher (such as Form 1040-V or 1041-V) along with all other required information written on the front of their payment (2017 965 Tax) for example.

4. For the payment owed without regard to section 965, normal payment procedures apply. This payment may be made at the same or different time from the 965 Payment but must be made by the due date of the return or penalties and interest may apply.

5. If the taxpayers did not follow the instructions on how to make a designated IRC 965 payment, the payment will post as a TC 610, EFTPS, or estimated tax payment (TC 660). These payments can be corrected to the TC 670 DPC 64 if they are IRC 965 payments that posted without the DPC 64 in error.

(3) How to Identify IRC Section 965 returns and payments.

1. DPC 64 indicates the payment is an IRC 965 designated payment. Payments that have been designated as IRC 965 payments should post to the module with TC 670 DPC 64.

2. TC 670 payment on the module with DPC 64.

3. Payment or source document if IRC Section 965, Section 965, 965, Transition Tax, DPC 64, or similar indication the payment is intended as an IRC Section 965 payment. This indication should be in the top margin of the tax return/payment posting voucher or anywhere on the paper check. These payments can be received with the IMF or BMF Forms/MFTs.

4. Utilizing Remittance Transaction Research (RTR) and in memo section referencing IRC 965 tax liability

5. Module referencing CP 56, which is the Annual Section 965 (h) Installment Notice, is generally issued to taxpayers every year in late February or early March. The taxpayers are instructed to make IRC 965 payments separate from their regular tax payment. The CP 56, Annual Section 965(h) Installment Notice has an IRC 965 payment voucher attached for this purpose.

6. A Return Processing Code (RPC) F on the Tax Return, on CC RTVUE, or TRDBV. All IMF modules where the taxpayer made an IRC 965 inclusion or election during the inclusion year or year of a triggering event should have a RPC F.

7. A Return Processing Code (RPC) 7 on the Tax Return, on CC RTVUE, or TRDBV is specific to IMF modules where a 965(i) election was made during the inclusion period.

8. A Return Processing Code (RPC) P on the Tax Return, on CC RTVUE, or TRDBV used to find 2017 modules that were granted the 2017 Penalty Waiver. These modules should include a TC 971 AC 116 and a TC 971 AC 117.

9. TC 971 AC 165 indicates an intact IRC 965(i) election with the amount of the outstanding IRC 965(i) Deferred Tax Liability reported in the MISC field.

10. g. TC 971 AC 116 represents an underpayment of the first 965(h) installment for TY 2017 ONLY. The amount of the underpayment is put in the MISC field (dollars only-no cents, no special characters).TC 971 AC 114 or may contain TC 766 CRN 263.

11. TC 971 AC 114 indicates the IRC 965 Total Tax Liability. This amount should be included in the TC 150 amount. Posted on inclusion year module and/or triggering event module only.

12. TC 971 AC 117 represents the interest charged on the underpayment of the first 965(h) installment for TY 2017 ONLY. The amount of the interest charged on the underpayment is put in the MISC field (dollars only-no cents, no special characters).

13. TC 766 CRN 263 a faux credit that masks the IRC 965 liability on Inclusion Year Module and/or Triggering Event Year Module only.

14. TC 767 CRN 263 Reverses the TC 766 CRN 263 by the amount of a payment(s) made against or credits applied to the IRC 965(h) liability on Inclusion Year Module and/or Triggering Event Year Module only. Beginning 2019, IMF programming systemically generates a TC 767 CRN 263 when a TC 670 DPC 64 posts to the Inclusion Year and/or Triggering Event Year module.

(4) Research:

1. IRC 965 tax payments have posted to the incorrect tax module and these payments should be moved to the correct module. Refunding these payments causes harm to the taxpayers. Taxpayers sending IRC 965 payments often write the year of the installment payment on the check instead of the IRC 965 inclusion year. Always research, XREF, and verify to ensure application to the correct tax period.

2. Research of CC IMFOLM for the year indicates if there is an IRC 965 Liability starting with 201712. If there is NO IRC 965 INFORMATION AVAILABLE FOR THIS MODULE, move forward to the next tax year (201812 and 201911).

3. If information is found, transfer the IRC 965 tax liability payment as a TC 670 / TC 570 DPC 64 on the tax period with IRC 965 liability. (201712, 201812, or 201911).

4. The taxpayer may not understand that the total IRC 965 payment must be reported on the inclusion year. For example: The taxpayer makes a payment, RTR memo section shows IRC 965 2023. If the IRC 965 module (IMFOLM) shows that the taxpayer elected in 2018 to pay the IRC 965 taxes, we need to apply the payments to 2018 tax year as there is when the taxpayer started the installment payment. We will apply all eight installment payments to 201812.

(5) Command Code IMFOL IRC 965 module:

1. CC IMFOL with Definer M was created to aid in identifying the IRC 965(h) deferral payments on the account.

2. The amount listed under the title, Tax Liabilities and Installments reflects the latest TC 971 AC 114 (Total Net Tax Liability under Section 965) reported by the taxpayer.

3. The amount listed under the title, Deferred amount, reflects the latest TC 766 CRN 263 remaining deferred amount.

4. The rest of the screen display reflects the yearly percentage of the eight installments based on the latest TC 971 AC 114 and the remaining installment amounts due to the latest TC 766 CRN 263, along with the yearly due dates of the installments.

5. This display screen will help in determining the amount of the IRC 965 deferral amount paid and the remaining deferral amount still owed. It will allow you to determine if an installment amount was paid, overpaid, with the overpayment being credited to the next installment or if the installment was underpaid. Caution: The CC IMFOLM display screen will recalculate with the input of a new TC 971 AC 114 and/or a new TC 766 / TC 767 CRN 263 amount. If there is an incorrect TC 971 AC 114 and/or an incorrect TC 766 / TC 767 CRN 263, the installment information shown on CC IMFOLM will also be incorrect.

(1) Definition of Prompt, Quick, and Jeopardy Assessments:

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 the assessment will expire before assessment actions can be completed under regular procedures.

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

3. Jeopardy assessments allow for the collection of taxes in circumstances in which it is determined that collection of taxes would be endangered if normal procedures are followed. Jeopardy assessments are usually requested by the Examination Function, but are also requested by Collection. They protect the government's interests under IRC 6861 (Jeopardy Assessment of Income, Estate, Gift and Certain Excise Taxes) and IRC 6862 (Jeopardy Assessment of Taxes other than Income, Estate, Gift and Certain Excise Taxes).

(2) Form 3552 (Prompt Assessment Billing Assembly) is prepared from Form 2859 (Request for Quick or Prompt Assessment) and they must be prepared by the originator. Form 3552 must contain the following information at a minimum:

1. The upper left portion of the form should be completed with the Director’s address, MFT, Tax Period, Assessment Date, Transaction Code, and Name and address fields.

2. The upper right portion of the form should be completed with the Document Locator Number, IDRS Number, Notice Date, Name Control, TIN, Form Number, and Tax Period Ended as (MM/DD/YYYY).

3. The rest of the first page should include input under numbers 31, 32, 33, and 35.

Note: If any of the information above is missing for Form 3552 reach out to the originator for the correction action. You must have Form 3552, the Form 2859 is not sufficient to close Doc Code 51 cases.

(3) For partial and full abatement Form 1331-B (Notice of Adjustment) must be prepared by the originator as well.

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

2. Section I should contain the following: A statement instructing the abatement or reversal of the previously submitted assessment, the 23C date, the DLN, the reversal transaction codes with the applicable monetary amount and the date and name of employee completing the request.

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

4. The Form 1331-B must be signed by the approving official in the originating operation under section II.

Note: If any of the information above is missing for Form 1331-B, reach out to the originator for the correction action.

(4) Form 3413 Transcription List (Account Transfer- in). Form 3413 must contain the following information:

1. The upper portion must be completed with the DLN and Section 01 from A through F.

2. The bottom section must include the preparer’s name, date prepared, and phone number.

Note: Doc Code 51 blocking series 850-899 will only have Form 3413.

(5) Follow the steps below when reaching out to the originator. Contact the originator via secured email for audit trail and cc your’s and the originator’s manager. The following must be included in the email:

1. Ask for instructions on how to edit the document with corrections and explain the Unpostables condition so they understand why it unposted. Include TIN, tax year, and sequence number in your email so they can create UPCASZ. Request Form 3552 or Form 3413 (unpostable inventory for blocking series 850-899 only) and advise the originator that they must state if it is a partial or full abatement or not. If yes, they must include Form 1331-B. The Form 1331-B is used for Form 3552 only.

2. Originator will send an email to unpostables with CC UPCASZ with remarks of their request, including Form 3552, and the Form 1331-B if the case is a partial or full abatement or Form 3413 with blocking series 850-899.

3. You must review all forms for completeness. The current version of the Forms on the Media & Publications website must be utilized. If a previous revision of the form is received, it should be rejected back to the originator.

4. Work the case based on the UPC and TC condition with the originator instructions on how they want you to close the case. Close the case per IRM with URC 0 or URC 6 if possible. If not, follow the URC 8 instructions for the specific UPC. Unpostables print the request and fill out Form 8749 with the request what should be changed. Include Form 3552 or Form 3413 as appropriate, all supporting tax documents, and Form 1331-B if the case is partial or full abatement.

(6) UPC 168 RC 0, UPC 189 RC 0, UPC 151 RC 0, UPC 197 RC 0, and UPC 194 RC 1 are the most common unpostables Doc Code 51 cases. You may see some unposted under UPC 180 RC 2, UPC 159 RC 0, UPC 162 RC 0, UPC 188 RC 0, UPC 194 RC 0, UPC 197 RC 7, UPC 138 RC 0, UPC 152 RC 1, UPC 186 RC 0, UPC 138 RC 3, and UPC 168 RC 6.

(1) A Statute of limitation (Statute) is a time period established by law to review, analyze and resolve taxpayer and/or IRS related issues.

(2) The Internal Revenue Code (IRC) states that the IRS assess, refund, credit, and collect taxes within specific time limits. When the statute period expires, the IRS can no longer assess additional tax, allow a claim for refund by the taxpayer, nor take collection action. There is an Assessment Statute Expiration Date (ASED), a Refund Statute Expiration Date (RSED), and a Collection Statute Expiration Date (CSED). Each has a different statute expiration period.

(3) The Assessment Statute Expiration Date (ASED) is identified by Generalized Unpostable Framework (GUF) and monitored to ensure that the statute does not expire.

(4) The ASED is determined as three years after the Return Due Date (RDD) or IRS received date, whichever is later.

(5) Example of statute expiration date for a timely filed return:

(6) Example of statute expiration date for a late filed return:

(7) If the ASED is imminent (two months prior to ASED), notify the manager or work leader and take necessary action to resolve.

(8) See IRM 25.6.1, Statute of Limitations Processes and Procedures.

(1) When working a Form 1040-A or Form 1040-EZ unpostable (Doc Code 207-210 only) that needs to be reprocessed, and you would normally close as URC 8, you will now close URC 1.

(2) To convert Form 1040-A or Form 1040-EZ to a Form 1040, use Form 6114, and follow conversion instructions in IRM 3.11.3-17. Close the unpostable URC 1 with Nullification area code 41 to Accounting per IRM 3.12.32.14.1.

(3) When closing the unpostable, In the remarks section on line 8 include remarks “EOY per HQ route to Accounting”. Please ensure you route the closed unpostable to the correct Accounting Campus by following the chart below.

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

• Criminal Investigation - A1

• Statute - C1, C2, or C3

• Bankruptcy - Z1 or Z2

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

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

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

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

(2) Refer to CI for review of any return or document if the taxpayer:

• Contests or challenges, for any reason, the filing of a tax return or the paying of tax.

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

(3) If the document is sent to CI or Examination for the above reasons by Code and Edit, DO NOT forward again. Continue with regular unpostable resolution procedures.

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

(2) Review the return to determine if it appears to be a frivolous return.

(1) The Integrated Data Retrieval System (IDRS) is a computer system with the capability to retrieve and update stored information about taxpayer accounts on a Master File.

(2) The Taxpayer Information File (TIF) is the major database for use within IDRS. The TIF includes the following types of accounts:

• The Business Taxpayer Information File (BTIF)

• The Individual Taxpayer Information File (ITIF)

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

• The Automated Non-Master File (ANMF)

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

(4) System Messages

• If the communication lines to the NAP are not available, the message will be CRS/NAP ACCESS NOT AVAILABLE

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

(5) Some transactions, payments and returns cannot post to the master file on IDRS due to programming checks for specific conditions. These conditions generate unpostables that may require review and resolution determination on the Generalized Unpostable Framework (GUF) system which is accessed through IDRS.

(1) IDRS Command Codes - The IDRS command codes that create a transaction for posting to the Master File will have the TIN and TIN/Name Control validated using the TIF and the National Accounts Profile (NAP). Many IDRS command codes are available and each display different taxpayer data and serve different purposes.

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

• CC FRM49 - Taxpayer Delinquent Return Notices and Investigations

• CC FRM77/FRM77A - Miscellaneous Transactions Entry

• CC ENREQ - Entity Changes

• CC REQ54 - IDRS DP Adjustment

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

• CC ADD24 / CC ADD48 - Credit Transfers

• CC UPRES - Unpostable Correction

• CC IRPOL - Inquiry of the Information Returns File

(3) Some of the most common command codes used for research are:

• CC IMFOL - research the Individual Master File for entity and tax data information posted to the Master File.

• CC DUPOL (Duplicate TIN Online) - search for all files for a specific TIN.

• CC ENMOD - display entity data for a specific TIN.

• CC INOLE - research the NAP for verification of TIN/Name Control and primary name combinations.

• CC INTST - computes the correct outstanding balance, including interest and failure to pay accruals, to the date specified in the input of the command code.

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

• CC NAMES (SSN/IRSN/ITIN)- Searches the NSF for national files of name and address data as it was filed on a tax return. The results display taxpayer names in the sequence of their probability of matching the requested name, with the exact match(es) being displayed first.

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

• CC SCFTR - used for real time research of the Service Center Control File (SCCF) and overnight research of records that have been removed to the Historic SCCF.

• CC SUMRY - used to request for display a summary of a taxpayer’s account which includes all tax modules meeting IDRS selection criteria.

• CC TRDBV - used to gain read-only access to tax return data submitted by the taxpayer.

• CC TXMOD - displays tax module data for a specific tax period on the TIF.

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

• CC URINQ - to identify unidentified remittances.

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

(4) The following command codes are used to input an action to the taxpayer's account:

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

• CC FRM49 - used to input 59X transactions

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

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

• CC REQ54 - used to generate screen format ADJ54 used to adjust the taxpayer’s account

• CC REQ77 - used to generate screen format for FRM77

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

(2) Requests for access to RTR are made through Business Entitlement Access Request System (BEARS) and must be approved by management.

(3) When payments are available on RTR, tax examiners should research to verify the payment was correctly applied. If the TIN is not notated on the image and/or the payment does not match the payment history of the account, research CC NAMEE for other entity’s and correct the payment accordingly, if necessary.

(1) If the communication lines to the NAP are not available, the message will be "Collection Reports System (CRS)/National Account Profile (NAP) ACCESS NOT AVAILABLE".

(2) If the NAP is not available, the message will be "NATIONAL ENTITY FILE NOT AVAILABLE".

(1) Generalized Unpostable Framework (GUF) users are authorized to access only those accounts required to accomplish their official duties. GUF users must not access their own or their spouse's account, the account of a friend, relative or coworker, or any account in which they have a personal financial interest. Management should only assign GUF CCs to employees authorized to process unpostable records.

(2) GUF is accessed by the command codes UPDIS, UPASG, UPCAS, UPBAT, UPTIN, UPRES, and UPREV through IDRS.

(3) Case Assignment - All unpostable cases will be assigned on GUF in the following manner:

• Submission Processing Campus assigned - XX00000000

• Unit assigned - XXXXX00000

• Individual employee assigned - XXXXXXXXXX

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

1. Submission Processing Campus assigned cases can be closed by any tax examiner (TE) with access to the Submission Processing Campus jurisdiction in their profile.

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

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

   Exception: All unpostable cases related to the TE’s unpostable case should be closed at the same time by the same TE when possible.

(4) For IDRS purposes the campus sites will have Office Identifiers. These numbers are NOT replacing the two-digit File Location Codes (FLC's) in the DLN.

(5) SP employees may encounter some accounts that are blocked on IDRS and can be identified by an IDRS security violation message: "Unauthorized Access to this Account."

1. If this message is received, forward the tax return/document to management.

2. Managers will notify the local Planning and Analysis staff who will scan the document and send it encrypted to the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ account mailbox requesting access to the account.

3. Managers will retain the original case in a file until access is granted or additional direction is provided. Requests may take up to five (5) business days.

4. Upon notification that access has been granted, resolution of the unpostable should continue following normal procedures.

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

(2) The format for the Trace ID is provided in the following table (first 14 characters):

(3) All payment deposits are assigned a 20-digit Trace ID number. When tax examiners process unpostable payment transactions, the Trace ID number may not be transcribed on the payment document. Unpostables are required to ensure that the Trace ID number is on all payments that are nullified using URC 1 or sent to Rejects using URC 8. This includes any payments that must be renumbered or reprocessed. Tax Examiners must identify the Trace ID number and enter it on the document, even if a dummy document is created. The Trace ID will not be viewable or correctable in GUF. The Trace ID number for a payment can be identified on IDRS using CC TXMOD. If the payment is from ISRP Remittance Processing System (RPS) or Lockbox, use RTR to find the Trace ID. Once the Trace ID is identified, it must be transcribed onto the payment document.

(1) Campus (and Area Office) personnel use Generalized Unpostable Framework (GUF) Command Code (CC) UPASG, CC UPBAT, CC UPDIS, CC UPCAS, CC UPRES, CC UPREV, and CC UPTIN to assign, research, review and correct (individual and batch closures) unpostable cases. See IRM 3.12.32.18, General Information for GUF Command Code Screen Formats, for more details.

(2) The following table provides the Unpostable Resolution Code (URC) validity checks for CC UPRES and the valid Master Files:

1. Master File and URC combinations are subject to additional validity checks for each URC depending on the type of record and the unpostable category criteria.

2. CC UPRES must meet all validity checks for input of the URC actions with CC definers and CC definer modifiers.

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

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

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

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

4. A Nullify Area Code is necessary when closing unpostables with URC 1, 2 or 8 to identify the receiving area.

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

(1) Unpostables are identified on IDRS by pending transaction identification codes. They indicate the status of the posting of the transaction on IDRS. The table below provides a description of the pending transaction codes.

(1) The Modernized e-File (MeF) system receives and processes electronically filed returns through the internet. Business tax return data is transmitted for MeF electronically using the Application to Application method or the Internet Filing Application method.

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

(3) MeF provides for real time processing of acknowledgements, streamlined error detection, standardization of business rules and requirements across form types, the capability to attach PDF files, and the capability for IRS employees to view MeF return data through the Return Request and Display (RRD) Subsystem in the Employee User Portal (EUP). It also generates reports for management through the Business Objects Enterprise (BOE) reports system.

(4) Tax examiners (TEs) should use the EUP system to review forms as needed when resolving an unpostable with an electronically filed return.

(1) Form 8749 must be used when a case is physically routed to another area with URC 2 or URC 8.

(2) All appropriate research should be performed and attached before routing the case. Ensure the appropriate boxes are completed to explain the process.

(3) Please refer to the IMF Unpostables Job Aid 2526-701 for an example of F 8749.

(1) The following provides the URC validity checks for CC UPRES, including the valid Master Files:

1. These Master File and URC combinations are subject to additional validity checks for each URC depending on the type of IMF or PMF record and the unpostable category criteria.

2. CC UPRES must meet all the validity checks for input of the URC actions as CC definers and CC definer modifiers.

(1) To use CC UPCAS, input CC UPDIS with an Unpostable cycle sequence, which brings up the UPRES screen. Overlay UPRES with CC UPCAS with the appropriate definer and definer modifier, if applicable.

1. Use CC UPCASD2 and UPCASD3 to make second and third document requests from Files.

2. Use CC UPCASSA to suspend a case awaiting further action. Input remarks to indicate why case is being suspended.

3. Use CC UPCASSC to suspend a case when waiting for a reply to correspondence.

4. Use CC UPCASZ to input a history item. This can be used to provide information needed in order for the assigned tax examiner to work the case. This is especially useful for related cases in other service centers. Please refer to the IMF Unpostables Job Aid 2526-701 for an example of CC UPCASZ..

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

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

2. CC UPBAT URC batch resolution actions will only validate cases with a campus or "unit" type employee number during EOD processing. Cases assigned to an INDIVIDUAL employee number will be rejected and appear on the Rejected Activity Listing.

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

4. Always enter a Nullify Area Code with URC 1, URC 2, or URC 8 to indicate the function that will resolve the case. See IRM 3.12.32.18.2, CC UPBAT- Screen Formats, or IRM 3.12.179.7, Nullification Codes.

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

(1) The GUF system automatically closes some Unpostable conditions without any tax examiner involvement. These cases are systemically sent to the initiator. Due to systemic limitations of GUF and Master File, some cases may still need to be corrected manually. For a complete list of automatic closures, see IRM 3.12.32.13, Automatic Closures by the GUF System.

(2) The Unpostables unit must ensure that cases that do not auto-close are not overlooked.

(1) Third Requests— Initiate a third request after 15 work days (21 calendar days) when a return or document cannot be located in Files after the second request, or if the document is charged-out to another area.

(1) If the unpostable document is canceled (excluding tax returns, payments, or extensions),

1. Attach form behind the return.

2. Notate "Cancel" with the date and staple securely behind the return.

3. "Remarks" should indicate the reason the action was taken.

(2) If the unpostable document (excluding tax returns, payments, or extensions) is to be canceled and is NOT attached behind the return or routed to the initiator, destroy the document.

(1) Before correcting, ensure the DLN on the document matches the DLN of the unpostable. If the document contains two DLN's and both appear to be "live" (not crossed through or canceled), contact your supervisor or lead to research.

(1) This subsection contains information on the Restructuring and Reform Act of 1998, Section 3705, which provides identification requirements for all IRS employees when communicating with taxpayers and/or their representatives on tax-related matters.

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

(3) All IRS employees who communicate, by telephone, correspondence, or face to face, with taxpayers, or their personal representatives, on tax-related matters, are required to provide the following information:

• Telephone or Face to Face Contact: Their title (e.g., Mr., Mrs., Ms., Miss), and last name, OR their first and last name, OR their first initial and last name AND their identification (ID) badge number or, if the Homeland Security Presidential Directive-12 (HSPD-12/SmartID Card) has been issued, use the 10-digit Personal Identification (PID) number.

  Note: If the last name is hyphenated or there are two last names on the ID, use as stated on the federally issued identification badge.

• Correspondence: Manually generated correspondence must include the name, telephone number and unique identifying number of an employee who can be contacted with respect to the correspondence. Any other correspondence should include a telephone number of a person who may be contacted with respect to the correspondence.

(4) IRC 6103(a) contains requirements for both protecting and disclosing confidential tax returns and return information. Before disclosing any tax information, Tax Examiners must verify they are speaking to the taxpayer or an authorized representative. For more information on authentication procedures, see IRM 21.1.3.2.3, Required Taxpayer Authentication.

(5) When making an outgoing call to taxpayers for additional information and you reach an answering machine or voice mail, you should provide the same information as indicated above but do not provide specific tax related information.

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

(7) The Taxpayer Advocate Service (TAS) assists taxpayers who are experiencing economic burdens and/or unreasonable delays in resolving tax problems with the IRS. See IRM 3.12.179.3, Taxpayer Advocate Service (TAS) Cases, for more information on determining whether TAS case criteria applies and when to prepare and route Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order) to TAS.

(1) When contact is necessary to resolve an unpostable condition, use one of the following methods.

• Correspondex Letter (C-Letter)

• Telephone Contact

• Do not Correspond

• Missing signatures

(2) On an expedited basis, the Unpostable function should resolve any correspondence received from any other campus or Area Office.

(1) The service should make every effort to locate good addresses for those taxpayers whose Master File addresses are undeliverable.

(2) Research CC ENMOD for a pending or posted address change. If found, correct and re-mail the letter.

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

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

(5) IRS employees may change an address using information received from the USPS, National Change of Address (NCOA) database. An address obtained from the NCOA database becomes the taxpayer's last known address unless the taxpayer provides clear and concise notification of a change of address or the Service properly processes a taxpayer's federal income tax return with a different address. Upon receipt of any undelivered mail piece with an affixed USPS yellow label, an IRS office should examine, research, and update the address as follows:

1. If the taxpayer’s name printed in the letter and what is shown on the "yellow label" are exactly the same, update the taxpayer address to the "yellow label" address.

2. If the taxpayer’s mailing address differs from the "yellow label" and the name printed on the "yellow label" is an exact match to the correspondence, update the taxpayer’s mailing address to the "yellow label" address. Reissue the correspondence to the taxpayer’s updated mailing address.

3. If the taxpayer first name is like that on the "yellow label", but the last name is an exact match, confirm whether IRS records show any other taxpayers with similar first names and the exact same last name at the same address. If not, update the taxpayer address. Otherwise, do not update the taxpayer address.

4. In all other cases do not update the taxpayer address.

(1) Private Mailbox (PMB) companies may be used as substitutes for the U.S. Post Office.

(2) When completing address information for Private Mailboxes, the PMB information must be entered using the correct standard format. Do not include the "#pound sign" when entering an address or a change of address. An example of a correctly entered address is as follows:
Gray Hawk Company
Mailbox Etc.
1111 Avocado Road PMB 111
Anytown, USA 11111

(1) For purposes of computing interest on overpayments on returns and the 45 day interest-free period, a return must be a "processable" form. For purposes of the rules for interest on overpayments, a return is in "processable" form if:

1. the return is filed on a permitted form;

2. the return contains the taxpayer's name, address, identification number, required signature; and

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

(2) The test for whether a return is "processable" is set forth in the IRC 6611(g). An unprocessable return may start the period of limitations on assessment; however, that period will not start if the return is "invalid" (the test for invalidity has been developed through case law).

(3) A Received Date is required on returns that are:

1. Amended

2. Delinquent

3. Prior Year

4. Early Filed Decedent

5. Short Year Tax Returns

6. Fiscal Year Returns (IMF only)

(4) Thoroughly research the available documentation and IDRS because a change to the received date may generate a notice to the taxpayer.

(5) Determine the received date in the following priority:

1. IRS received date stamp

2. U.S. Postal Service, Army Post Office (APO), U.S. Embassy or Consulate postmark date, or official postmark of a foreign country.

3. Private Meter postmark

4. Service Center Automated Mail Processing System (SCAMPS) digital dates

5. Revenue officer signature date

6. Signature Date (Current Year Returns)

7. Julian Date minus 10 days in the DLN

(6) For further information, refer to IRM 3.10.72, Receiving, Extracting, and Sorting; IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates; and/or Document 6209.

(7) Master File has the capability to maintain and display two dates. The first date is the "Return Received Date" and the second is the "Return Processable Date (RPD)". The "Return received date" will be used to determine the statute dates while Return "Processable Date" will be used to compute interest on overpayments.

(1) The following unique campus addresses and Zip Codes will be used when the taxpayer has provided no address and we cannot obtain one for IMF processing:

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

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

(3) When it is identified that a payment is intended for multiple tax periods split the payment per taxpayer intent. If payment was posted to incorrect module post to the correct module.

(4) When attempting to post a payment to a tax module which contains a TC 760, Substantiated Credit, for the same amount and approximately the same date—

1. Determine if the unposted payment was the missing payment which caused TC 760 to be input. If it was, post the payment and input TC 570 or CC NOREFP (Tuesdays only) to hold the money. Notify Accounts Management for a possible TC 760 reversal.

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

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

(1) When applying an offset or credit to any MFT 35 File Source 1, check the Designated Payment Code (DPC) of the original credit generating the transferred credit. If it has a lien or levy enforcement DPC, do not apply to this module.

(2) Lien or Levy payments cannot be applied to MFT 35, these payments can be identified by the DPC. There are several types of lien and levy payments:

• DPC 05 (Notice of Levy)

• DPC 06 (Seizure and sale)

• DPC 07 (Notice of Federal Tax Lien)

• DPC 15 (Payments received with Form 8519 taxpayer copy of Notice of Levy)

• DPC 16 (Federal Electronic Funds Transfer (EFT) levy payment)

• DPC 18 ( Federal Payment Levy Program (FPLP) anyone with a federal contract usually i.e. social security)

• DPC 19 (secondary TIN Federal Payment Levy Program [FPLP] anyone with a federal contract usually i.e. social security)

• DPC 20 (state income tax levy program – primary TIN)

• DPC 21 (state income tax levy program – secondary TIN)

• DPC 22 (Alaska permanent fund dividend [oil pipe line] – primary TIN)

• DPC 23 (Alaska permanent fund dividend – secondary TIN)

• DPC 30 (payment for municipal income tax levy)

• DPC 32 (bulk electronic levy – from employer)

(1) A credit transfer is used to transfer money from one tax module to another or between Master Files. Each has unique Doc Codes and only certain transaction codes (TCs) are valid for a specific Doc Code. The IAT Credit Transfer tool must be used for credit transfers. The tool provides a list of transferable payments, auto-fills reversal TCs, performs unpostables checks, and ensures use of appropriate codes, amounts and dates to prevent unpostables. For additional IAT information refer to the IAT Website

(2) When transferring a payment to a settled module, use unpostable bypass indicator 0 or 1 to prevent an unpostable UPC 198 or UPC 305.

(3) Transfer vouchers are identifiable by their Doc Codes; Doc Code 24, Doc Code 34, Doc Code 48, and Doc Code 58.

1. Doc Code 24: Use Doc Code 24 to transfer credits between Master Files when a secondary TC (other than 570) is needed, or when changing the TC or date on a posted transaction. The debit and credit portions post separately. These TCs are compatible: TC 170, TC 180, TC 200, TC 270, TC 280, TC 360, TC 472, TC 570, TC 610, TC 620, TC 640, TC 650, TC 660, TC 670, TC 680, TC 690, TC 700, TC 730, TC 790, TC 820, TC 824, TC 850, TC 890, and their respective reversal codes. Do Not Use a Doc Code 24 for transfers which can be input with Doc Code 34. When closing the case to another function (e.g., Rejects, Accounting) and the original document cannot be obtained, reconstruct the document using Form 2424, as a dummy document when routing. .

2. Doc Code 34Doc Code 34 transfers credits between modules within a Master File, when no secondary TC is required other than TC 570. TC 570 is normally not needed on Doc Code 34 credit transfers but can be input by entering credit freeze code 1.

   Note: Do not use a Doc Code 34 when transferring user fee payments.

3. Doc Code 48: Doc Code 48 transfers an overpayment credit elect, a refund repayment, a substantiated credit allowance or a withholding credit. A secondary TC may also be used. The compatible TCs are TC 270, TC 360, TC 410, TC 472, TC 510, TC 710, TC 720, TC 742, TC 760, TC 770, TC 800, TC 830, TC 841, and their respective reversal codes.

4. Doc Code 58: Doc Code 58 transfers accounts. The compatible TCs are TC 280, TC 360, TC 570, TC 660, TC 681, TC 690, TC 694, TC 700, TC 710, TC 730, TC 820, TC 824, TC 850, and their respective reversal codes. Use Form 3809 as a dummy document when routing unpostable Doc Code 48 and Doc Code 58 credit transfers to Rejects. .

   Note: For additional information refer to the Credit Transfer IRM 21.5.8

(4) Form 8758, Excess Collections File Addition Used to transfer non-revenue receipts to Excess Collections. For more information on the preparation and use of Form 8758 see IRM 3.17.220.2.2.1, Preparation of Form 8758.

(5) Form 8765, IDRS Control File Credit Application—requests a transfer from Excess Collections or Unidentified to a taxpayer's account. For information on the preparation and use of Form 8765, see IRM 3.17.220.2.12, Applying Amounts From the XSF. .

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

(1) During their normal work, Unpostable examiners may detect erroneous refunds. Erroneous refunds are most likely to occur with the following IMF UPCs:

• UPC 168

• UPC 175

• UPC 189

• UPC 194

• UPC 196

(2) Most of these unpostable documents will be the debit side of the doc codes 24, 48, or 58 that did not post because the credit refunded or offset to another module.

(3) With accelerated refund processing for IMF, under certain conditions, accounts will not reflect the refund transaction (TC 846) upon settlement of the account. IMF will systemically apply a refund hold for a specified period before systemically generating the refund transaction (TC 846).

1. A refund hold will be applied when the account meets Priority Refund Transcript criteria (Refund, Refund-E, Refund-S, $1M and $10M). The accounts will reflect a TC 971 AC 805 and a TC 570 with blocking series “55555” indicating the refund hold has been applied. The hold will systemically expire 4 business days after the TC 971 AC 805 date.

2. A refund hold will be applied when the account meets criteria to issue Computer Paragraphs (CPs) CP 12 , CP 16 , CP 21 , or CP 24 . These accounts will be processed during the weekly processing on Thursday. The accounts will reflect a TC 971 AC 804 and a C- freeze. The hold will systemically expire 7 calendar days after the TC 971 AC 804 date.

(4) If the credit side of the transfer has posted, and an erroneous refund is in the process of being issued, but a TC 846 is not posted:

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

2. Notify the originator that the transfer was reversed and explain why.

(5) Ensure the transaction is being directed to the correct Master File, MFT, and Taxpayer.

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

(6) If the credit part of the transfer has posted and refunded:

1. Reverse the credit using URC 6 or 8.

2. Notify the originator noting "Erroneous Refund."

(1) The Unpostable function will attempt to correct all unposted TC 740 / TC 841 prior to sending to Refund Inquiry.

(2) If unable to resolve, route to the Refund Inquiry function for assistance. See IRM 21.4.6:

(3) For a list of Refund Inquiry Unit Fax numbers, refer to http://serp.enterprise.irs.gov/databases/who-where.dr/refund-inquiry-unit-addresses.html.

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

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

3. Add "History" item on IDRS.

4. If the Refund Inquiry function is unable to identify where the refund will be posted, the credit must be transferred to Account 4970, Unapplied Refund Reversal, using Form 3809 (for Doc Code 48 and Doc Code 58) or Form 3245 (for Doc Code 45).

(4) The Refund Inquiry function will research and enter the correct information on CC UPCAS Z.

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

(6) If the Unpostable TC 740 / TC 841 is a money discrepancy, take the following action. For more information, see IRM 3.17.79, Accounting Refund Transactions.

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

2. If Doc Code 45, close with URC 1. If Doc Code 48, close with URC 8.

3. Add a "History" item to IDRS.

(1) This subsection contains instructions on how to correct unpostable conditions involving Excess Collections, Dishonored Checks or Unidentified Remittance if the corrective action can be identified.

(2) This involves various UPCs such as UPC 168, UPC 189, and UPC 194 involving the correction of credit modules.

(3) Complete all research on the case.

1. If you can determine the corrective action (i.e., correct transaction code, correct date, etc.), correct the item(s) and close with URC 6.

2. If the credit amount is INCORRECT (money amount discrepancy) or UNAVAILABLE for transfer, URC 8 to Rejects as usual. Transfer the completed information onto the correct form and forward to Accounting for corrective action to the XSF, DCF, or URF. Use Form 8758 for payments with transaction dates over a year old going to Excess Collections (XSF). Use Form 2424 for payments under 1 year old to be transferred to Unidentified (URF). These forms must be forwarded on a weekly basis.

(1) Installment Agreement (IA) User Fees are systemically transferred by the IA user fee transfer program. The transfer consists of a debit TC 672 from the tax module (MFT 30) to post as a credit TC 694 with a secondary TC 360 to the User Fee Module, MFT 55 (IMF) or MFT 13 (BMF). For more information on IA User Fees see IRM 5.19.1.6.4, Installment Agreement (IA). See IRM 3.12.10.3.3, Revenue Receipts, Installment User Fee for additional information on valid Designated Payment Codes and User Fee amounts.

(2) Use the table below to determine the valid DPCs and money amounts.

(3) If the user fee unposts on the MFT 55 account, correct as follows:

(4) User Fee reversals - TC 662 or TC 672 may unpost due to a dishonored check (TC 661 or TC 671) or an automated attempt to transfer a duplicate user fee.

1. If TC 672 is unpostable on MFT 30 and there is no unreversed TC 670 with matching date, then check the module for available payment and XREF MFT 55 for TC 694 that is equal to or more than the unposted amount, then URC 6 to the appropriate date, TXPD, and TC..

Note: If current module does not have payment, search other modules for posted payments and URC 6 following the above instructions

2. If match found, URC 8 to Rejects, post with TC 570 and appropriate tax period (20XX01) and add the DPC if applicable.

3. Any matching TC 360 on MFT 55 must also be reversed URC 2 to originator, with remarks “Input TC 361 for TC 695 to post”.

(5) If TC 695 is unpostable without the secondary TC 361, URC 2 to originator with remarks “Input TC 361 for TC 695 to post”.

(1) IMF TC 150 transactions have an RPS indicator of "S" The most common unpostable code is UPC 140, but Category Y1 includes other codes where the unpostable condition is unrelated to the remittance. Refer to IRM 3.12.32.5.17.1 for additional information on Category Y1 criteria.

1. When working these cases, research thoroughly to locate the TC 610 payment.

2. If the TC 610 is found, ensure that it posts correctly with the return.

(2) IMF TC 150 transactions without an RPS indicator of "S", where the module contains an unreversed RPS TC 610 with Doc Code 19, Doc Code 70, or Doc Code 76. Unpostable Code is UPC 140, RC 2.

(3) IMF current-year TC 610 transactions (payment with return) that are not Doc Code 24, Doc Code 34, Doc Code 45, Doc Code 48, Doc Code 58, or Doc Code 87. Unpostable Code is UPC 151.

(1) Category Y2 consists of prior list year RPS TC 610 and/or TC 150 transactions, or

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

(3) Refer to IRM 3.12.32.5.17 for additional information on Category Y2.

(1) Erroneous TDIs (Form TDI 14) can be generated when

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

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

(2) When closing a TC 150 with URC 8, and the TC 150 will not be reinput to the same tax module within six weeks after the Return Due Date (RDD), input a TC 599 with closing code 017 (current processing year returns through mid-May) or closing code 018 (for all others).

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

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

1. Use Closing Code "017" if the return is being processed BEFORE the Program Completion Date (PCD) "approximately mid-May" of the current processing year.

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

(5) All Unpostables - initiated TC 59Xs must be input through IDRS.

1. Use CC FRM49

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

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

(1) CC STAUP can update certain Integrated Data Retrieval System (IDRS) statuses real-time or request that a specific status and notice be issued during a weekly update. See IRM 3.14.1, IMF Notice Review, for notice requests.

(2) Input of CC STAUP causes a history item to be generated in the Action History Section of the tax module. The history item contains the current date, the terminal operator employee number, the Action History Source Code and the activity code "STAUP nnnn". (nnnn = the status requested plus the number of cycles delay, if present, requested by the terminal operator).

(3) Input of CC STAUP also causes the tax module’s IDRS status to update real-time. The module updates to either status 48, status 50, or the status requested as appropriate.

(4) CC TXMOD is the prerequisite for CC STAUP with the definer "S" for single line input. The TIN must be present on line 1 for proper processing of the account.

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

(6) See IRM 2.4.28, Command Codes STAUP, STATI, and STATB, for additional information.

(1) General— Frequently, a transaction cannot post unless a specific type of related transaction posts first. Most transactions require the establishment of an account or tax module as a prerequisite. Many unpostables result from improper cycling. All Doc Code 47 (Exam) and most Doc Code 54 (DP) adjustment transactions require a return be posted. Reversal transactions require the related original transaction to be present. After all transactions have posted, analyses are made, new status and freeze conditions are set (released or changed), and notices, TDA's and refunds are issued. The length of time needed to post a transaction varies.

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

(2) The following IDRS command codes have the posting delay capability:

1. DP Adjustment CC ADJ54 (Doc Code 54) and CC AMCLSE (Doc Code 47)

2. Entity changes use CC INCHG, CC BNCHG except Employee Plan Master File (EPMF), and Exempt Organization (EO) use CC EOCHG (Doc Code 50, Doc Code 53, Doc Code 63, Doc Code 80, and Doc Code 81).

(1) All payment deposits are assigned a 20-digit Trace ID number. At the time a tax examiner begins to process an unpostable payment transaction, the Trace ID number may not yet have been transcribed on the payment document.

(2) Unpostables will be required to ensure that the Trace ID number is on all payments that are nullified using URC 1 or sent to Rejects using URC 8. This includes any payments that have to be renumbered or reprocessed. The Tax Examiners (TEs) will have to identify the Trace ID number and notate it on the document, even if a dummy document is created. The Trace ID will not be viewable or correctable in GUF.

(3) The Trace ID number for a payment can be identified on IDRS using CC TXMOD. If the payment is from ISRP, RPS or Lockbox, use RTR to find the Trace ID. Once the Trace ID is identified, it must be transcribed onto the payment document.

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

1. CI: A1 or A2.

2. Statute: C1, C2, or C3.

3. Bankruptcy: Z1.

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

(1) The Data Master File (DM–1) is a data base of name controls and TINs received from three sources:

• Social Security Administration (SSA)

• IRS valid processing

• Individual Taxpayer Identification Number (ITIN) File

(2) The DM–1 receives weekly updates from all three sources.

(3) The DM–1 determines the validity of all transactions containing entity information. The DM–1 "directs" transactions to either the valid segment or the invalid segment of Master File. Transactions that obtain a proximal match on the IRS valid Name Control are given a validity digit of "0" (IMF). These transactions are directed to the valid segment of Master File for posting.

(4) If an exact match cannot be found, IMF completes a proximal match on the taxpayer's Name Control and TIN.

1. In order for IMF to obtain a "proximal match" on the taxpayers IMF Name Control and TIN, the following conditions must be met:

If ...	And ...	Then ...
A. First letter of the IMF Name Control matches the first letter of Name Control(s) found on DM-1 associated with this TIN	Any two of the remaining three letters are equal to the same two relative positions of the Name Controls (NCs) found on DM-1. OR Any two adjacent positions when interchanged, are equal to the same two relative positions of the NCs found on DM-1 and the remaining position of IMF Name Control is equal to the same relative position found on the DM-1	Proximal match occurs.

Example: If DM-1 Name Control is VASQ, a proximal match will occur for VAZQ

2. If a proximal match is obtained, the transaction is given a validity digit of "0", and it is directed to the valid segment of Master File for posting. This proximal match process corrects many typographical errors.

(5) The IRS also receives weekly tapes from the Social Security Administration that contain all name controls and TIN's assigned or updated for a one week period. These are designated as “NEW SSA Name Control” on the NAP file. This designation can be viewed via CC INOLE When a transaction finds a match on the DM-1 file with this indicator present, the transaction will post to the invalid side.

1. The account will be considered valid for processing purposes.

2. The account will display the literal NEW SSA Name Control under CC INOLE.

3. This literal prevents entity notices from generating.

4. This literal allows refunds to generate to the taxpayers.

(6) If no match is obtained, the transaction is directed to the invalid segment of the Master File and is assigned a validity indicator of "1."

1. If an account is already on the invalid segment with identical information, the transaction will post.

2. If an account is already on the invalid segment with a different Name Control, the transaction will unpost for Name Control mismatch.

3. If there is no account present on the invalid segment, the transaction will unpost.

3.12.179.18.1.3 (01-01-2014)

ECC-MTB Quarterly Merge

(1) ECC-MTB performs a quarterly merge of all accretion tapes into the DM–1. The following dates are approximations:

1. January 15

2. April 15

3. July 15

4. October 15

(2) The account will reside on the invalid side of Master File until the quarterly DM-1 merge is accomplished.

(3) The accounts with an accretion file indicator are then merged to the valid segment of the Master File.

(4) All transactions remaining on the invalid segment are compared to the new DM-1 tape.

1. If a match is obtained, the account is resequenced to the valid segment.

2. If no match is obtained, the account is returned to its original slot on the invalid segment. Figure 3.12.179-1, Long Entity, and Figure 3.12.179-2, Chart of Validity Segments.

   Note: The DM-1 can carry more than one Name Control for an SSN. Example: One year the taxpayer's name is Susan Birch (000–00–0123). Susan Birch changes their name to Susan Redwood. They updated their name with SSA to reflect their new last name. The DM-1 will carry both names for the SSN.

(1) The Master File is structured in two segments—valid and invalid for taxpayers who file using SSN's only.

(2) The validity of an SSN/Name Control combination is determined by finding a matching SSN/Name Control combination on the Data Master One File (DM-1) or the Accretion File

(3) Output from the Master File that contains an asterisk (*) or "W" immediately following the SSN indicates the account is invalid for the SSN/Name Control combination. A validity digit of "1" (IMF) is given. These transactions are directed to the invalid segment of the Master File.

(4) The most common reasons for an invalid account number are:

1. The taxpayer did not properly update name with SSA.

2. Transcription errors made by IRS.

3. The taxpayer entered an incorrect SSN.

(5) Master File is segmented according to SSN validity.

1. Valid numbers will be in SSN sequence followed by invalid numbers in SSN sequence.

2. Two taxpayers can be on the Master File under the same SSN. One taxpayer appears on the valid side of the number. One taxpayer appears on the invalid side of the number.

3. The same taxpayer can be on both the valid and invalid segments of Master File. This occurs when the taxpayer has different name controls for different tax periods and has not notified SSA of the name change.

Note: If the validity indicator of the Unpostable is directing the transaction to the invalid segment of the Master File, and the account is on the valid segment, resolve with URC 6 to add name line and/or Name Control to redirect the transaction to the valid segment. This also applies when account is on the invalid segment.

(6) If an exact match is not found in the TIN validation process, IMF attempts to find a proximal match on the DM-1 or on the accretion file.

(7) See IRM 3.13.5, Individual Master File (IMF) Account Numbers, for information on the issuance of Individual Taxpayer Identification Numbers (ITINs).

(8) Command Code MFTRA with Request Type "U" is used to request SSA NUMIDENT transcripts. The NUMIDENT entity information is direct from SSA transcripts. The requested NUMIDENT transcript will be returned in approximately one to three days. The SSA provided information includes:

1. Type of SSN Record on File

2. The Month, Day, and Year the application or correction was recorded on the SSA File

3. The Disability Status Indicator

4. The Name on the SSN card to be used in work/business

5. The Name on the most recently assigned SSN card, Name at Birth or any other name used, prioritized in that order

6. Any additional Names Used

7. Citizenship

8. Sex

9. Date of Birth

10. Place of Birth

11. Mother's Maiden Name

12. Father's Name

(1) GUF has implemented validity checks to prevent tax return SSN's out of the range of numbers issued by SSA from attempting to post to the Master File.

(2) If the taxpayer has an SSN out of the valid range, GUF will not allow the unpostable to be resolved. It will print "SSN NOT GREATER THAN 001-01-0000" or "FIRST THREE DIGITS OF SSN ARE INVALID".

(3) When the primary Social Security Number (PSSN) is out of the valid range, perform all "in-house" research. If a valid SSN, invalid SSN, or Internal Revenue Service Number (IRSN) is found, correct the unpostable record with URC 6. If no other number is found, request assignment of an IRSN. The temporary number must be established on the Master File with a TC 000. Close the Unpostable with URC 6 or URC 8 . If the return was processed as "LONG ENTITY," TC 000 is not necessary.

(4) Entity Control will send a letter to the taxpayer notifying them of the assignment of a temporary IRSN. They will explain to the taxpayer that the number shown on return is out of the range of numbers assigned by SSA. They will instruct the taxpayer to go to SSA to obtain verification of the number used on the return.

(5) Under no circumstances will a taxpayer assigned an IRSN receive a personal exemption and/or EIC. Send a 685C letter informing the taxpayer of the assignment of the IRSN, and URC 8 to Rejects. Request Rejects to remove the taxpayer's personal exemption and/or EIC claimed.

(1) Any errors observed in the taxpayer's entity information indicated from a return (TC 150) or taxpayer correspondence must be corrected.

(2) If a TC 150 for the same tax period is already posted to both the invalid and valid taxpayer's account, do not input a transaction that will cause the two accounts to merge (i.e., TC 011 / TC 013 / TC 040 / TC 041).

(1) Entity Code—A code indicating whether a transaction carries full or abbreviated entity data. The entity code is present with the following IMF unpostable and transaction codes. Otherwise the field is blank:

• UPC 148

• UPC 151

• UPC 152

• UPC 153

• UPC 156

• UPC 163

• UPC 166

• UPC 171

• UPC 176

• TC 140

• TC 150

• TC 430

(2) The following is a list of entity codes and their meanings:

(3) Filing Status Codes—Identifies the taxpayer's marital and family situation on Forms 1040, Form 1040-SR, 1040-A and Form 1040-EZ. It is an important factor in determining whether the return is required to be filed, the amount of standard deduction, and the correct tax.

(4) The meaning of Filing Status Codes (FSC) are as follows:

(1) Establishing an account

1. EC 1 - Release the case after correcting any other unpostable conditions. A long entity record entered in ISRP establishes an account.

2. EC 2, EC 4, or EC 5 - Input TC 000 to establish the account and release in the same cycle the TC 000 is input.

3. EC 3 - If TC 150 or TC 430, add the name line with URC 6. If other than TC 150 or TC 430, input TC 000 and release the case in the same cycle.

(2) Correcting name on Unpostable record

1. EC 1, EC 4, or EC 5 (TC 140, TC 150, or TC 430 only), correct the name line and Name Control using URC 6.

   Note: For FSC 2 taxpayers with the same last name for primary and spouse, enter the last name only once. (example, John & Mary<Jones)

2. EC 2 or EC 3 - If the Name Control caused the unpostable, correct the Name Control using URC 6. If the Check Digit caused the unpostable to go against the valid segment of IMF erroneously, correct the document by circling out the Check Digit; enter the appropriate Name Control. Release the case using URC 6.

(3) Correcting name on IMF residing on VALID segment:

1. If taxpayer on valid side has changed name and not notified SSA (no matching Name Control with SSA), input TC 013 on the valid side, URC 0 and cycle delay as needed.

Note: If the taxpayer's signature contains one last name or dual name is hyphenated, post the document to that Name Control.

2. If both IMF and unpostable name line are incorrect, input TC 013 to correct IMF. Follow previous correction procedures.

   Note: Document will need to be perfected if correcting the Name Control to a name not found in the Entity portion of the return (e.g. if the taxpayer signed with the valid DM-1 name, but a different name was typed into the Entity section of the return.

3. If TC 150 or TC 430, add name line (if EC 2 or EC 3) and release using URC 5 (UPC 152, UPC 153, UPC 156, or UPC 157).

4. If other than TC 150 or TC 430, input TC 013 and release unpostable case with URC 0, cycling as appropriate.

   Note: Cycling is necessary any time the account will change from valid to invalid, or from invalid to valid.

(4) If the transaction is intended for a BMF account, close with URC 8 with instructions to renumber the document. Exception: UPC 198 and UPC 305 can be closed to post to an IMF account and transferred at the same time to a BMF account. Input TC 570 to prevent an erroneous refund.

1. If the document is a return, attach page one of the correct Form (1041, 1065, 1120, etc.), with the entity section completed. Provide instructions to renumber to BMF and correct EIN, MFT, tax period, and/or Name Control.

2. If the transaction is a payment, other than UPC 198 or UPC 305, prepare a "dummy doc", noting the necessary corrections. Notate the Trace ID on the "dummy doc".

(5) Correcting the SSN on Unpostable record.

1. Before changing the taxpayer's SSN research to verify the "new" number.

2. If only the PSSN is incorrect, correct SSN using URC 6 unless Schedule SE or Form 5329 is present for the primary taxpayer. If either is present, correct with URC 8.

   Note: If return has an amount entered for line reading “Additional tax on IRA's, other qualified retirement plans, etc. Attach Form 5329 if required”, check CC TRDBV to see if Form 5329 has been "dummied in". If so, correct with URC 8.

3. If PSSN and SSSN are reversed or both are incorrect, check for any SE Schedule(s) or Form 5329. If you determine the SSSN is in error, ensure all necessary corrections are made to the account.

4. For any return sent to Rejects with URC 8 (except if cancelling DLN) input TC 599 AC 017 or AC 018 as applicable using the TIN, Name Control, MFT and tax period of the module where the return will post.:

(1) TC 000 is used to establish a taxpayer's account on the applicable Master File.

(2) The following information is necessary to establish the taxpayer using the CC INCHG screen:

1. Name Control

2. Primary Taxpayer Name

3. Spouse's Name (if taxpayer is filing Married Filing Jointly)

4. Entire address

5. Year Digits

6. Filing Status Code (FSC)

7. Spouse's SSN, if available.

8. Remarks

(3) Do not attempt to input a TC 000 for an ITIN or an IRSN, as this creates repeat or additional unpostables.

(1) When entering a name change (TC 013) to update/correct a joint return filer, it is important to ensure the joint names are in the proper format for the issuance of notices and overpayments.

(2) If joint filers require a notice, two notices are issued (one to the primary taxpayer and another to the secondary taxpayer).

(3) Although Form 1040,Form 1040-SR consists of two lines for entering joint names, Master File is limited to ONLY one line for the "Primary Name Line".

(4) Master File's Name Line field must never exceed 35 characters/spaces. It is imperative that the name line information is contained in the first name line ONLY. When space allows, all available information, including middle initial(s), will be entered.

(5) Examples of properly input name changes are shown below. Bold print indicates the primary Name Control.

(6) The above information CORRECTLY entered will display on CC ENMOD and generate two separate notices:

1. JOHN & MARY DUCK (JOHN DUCK & MARY DUCK)

2. JOHN DUCK & MARY SWAN

3. JOHN DUCK & MARY SWAN-DUCK

4. JOHN D DUCK & MARY ANN SWAN-DUCK

5. JOHN D DUCK III & MARYANN L SWAN

(7) If the primary and secondary names exceed 35 characters/spaces, see IRM 3.13.5.118.5, or http://core.publish.no.irs.gov/docs/pdf/d7071--2016-01-00.pdf, Name Control Job Aid for Individual Master File Taxpayers, for additional information.

(1) Generally, TC 040 is used when a taxpayer has a name change but has not updated with SSA to display the new Name Control. The taxpayer will be on the valid side with an invalid SSA Name Control, and will need to be moved to the invalid side with TC 040.

(2) TC 040 is used to change the name and/or TIN of the taxpayer's account that resides on the valid segment of IMF. If the Name Control input does not match the DM-1, TC 040 will move the account to the invalid side.

(3) TC 041 is used to change the name and/or TIN of the taxpayer's account that resides on the invalid segment of IMF. Often used to move new ITIN's to the valid segment before the DM-1 quarterly merge.

(4) TC 040 and TC 041 do not go through DM-1 validation processes. These TC's will not be used unless IMF established the taxpayer incorrectly; or the taxpayer provides "proof" of their identity through copies of marriage certificates, divorce decrees, legal documents showing a name change, etc.

(5) Before entering a TC 040 or TC 041, thoroughly research the taxpayer's account using CC INOLES. If necessary, request a NUMIDENT for the taxpayer using CC MFTRA U to determine the most recent and all the SSA name controls reported by the taxpayer.

(6) Information needed to complete a TC 040 or TC 041 is listed below:

• New Name Control

• Primary Name Line (All Name Lines for TC 040)

• Year Name Line

• New TIN, if necessary

• Description of change in the REMARKS field.

• Refer to IRM 3.12.179.18.8, for additional information on Name Changes.

(7) When inputting TC 041, for the YEAR-NM-LINE> field in CC INCHG, use a later year where nothing is posted.

(8) If the account is established on the valid segment with an invalid Name Control, input TC 040 to resequence the account. See IRM 3.12.179.18.9, URC 0 and cycle delay as needed.

(9) If the unpostable case is addressing the invalid side and a TC 041 is being input to the unpostable TIN, close with URC 6 and add Name Control and name line and cycle delay as needed.

(1) Individual Master File (IMF) completes a special process to establish the secondary taxpayer on Master File for all Married Filing Joint (FSC 2) accounts. In this automated process, IMF separates the secondary taxpayer from the primary taxpayer account and systemically establishes a separate account on Master File.

(2) The accounts systemically established by IMF will display transaction codes with a unique DLN of XX263-001-88888-X. The transaction code(s) may be a combination of TC 000, TC 01X, or TC 971 with Action Code (AC) 050 (to change the BOD code).

(3) Unpostable Codes UPC 151, UPC 152, UPC 153, or UPC 156 resulting from this systemic process require input of TC 040 (valid side) or TC 041 (invalid side) to bypass the NAP and correct the secondary taxpayer's name.

(4) See IRM 3.13.5, for additional information.

(1) If the return has filing status 5 checked, and the spouse's date of death is more than two years prior to tax year of return and

1. There is a dependent child, URC 8 to change the filing status to FSC 4.

2. There are no dependent children, URC 8 to change the filing status to FSC 1.

(2) If the return has a filing status other than FSC 2, has two names on name line and decedent's date of death is within tax period, (children not a factor), URC 8 to change the filing status to FSC 2.

(3) If the return has filing status FSC 5 checked, and there is only one name on the name line, and the spouse's date of death is within the tax period covered by the return, URC 8 to change to FSC 2, and include DECD in the name line.

(1) "DECD" must be entered after the taxpayer's last name (after any existing suffix).

(2) Always enter a second name line, if available. On overpaid returns, a second name line is mandatory. The refund is issued to the person(s) whose name(s) is shown on the second name line. If the proper payee cannot be determined, correspond using a 12C letter to the "Estate of ...".

(3) Include the suffix for any name indicating a court-appointed personal representative, such as: Administrator, Executor, Administrative Exec., Trustee, etc.

(4) The second name line must not include any suffixes such as "surviving spouse", "mother", "father ", "daughter", "son ", etc.

(5) For more specific procedures, refer to IRM 3.11.3, Individual Income Tax Returns, and IRM 3.12.3, Individual Income Tax Returns.

(1) IRA MFT 29 accounts will be established when Form 5329 is received with Form 1040, Form 1040-SR.

(2) In addition, IRA transactions may be input to post to established MFT 29 accounts. These transactions include entity changes, adjustments, audit transactions, etc. IRA transactions will carry a Tax Class (3rd digit of the DLN) of zero.

(3) IRA Filing History Codes

1. 0 = No IRA

2. 1 = Primary spouse has IRA

3. 2 = Secondary spouse has IRA

4. 3 = Both have IRA

5. 4 = IRA notice issued

6. 5 = IRA notice issued to primary

7. 6 = IRA notice issued to secondary

8. 7 = IRA notice issued to both

(1) Effective January 2006, the input of a TC 971 AC 144 on an MFT 30 module generates a corresponding MFT 29 module for Form 5329.

(2) See IRM 21.6.5, Individual Retirement Arrangements (IRA), Coverdell Education Savings Accounts (ESA), Archer Medical Savings Accounts (MSA) and Health Savings Accounts (HSA), within IRM 21.6.5.4.11.4, Processing Form 5329 With TC 971 AC 144, for further instructions.

(1) International returns are assigned either Filing Location Code (FLC) 20 or FLC 21 for AUSPC.

(2) FLC 20 returns include:

1. Form 1040 and Form 1040-SRwith a foreign address in the entity.

2. Form 1040 with a valid Form 2555-EZ regardless of entity information (Domestic Address)

3. Form 1040-NR and1040-NR-EZ

4. Dual Status (a taxpayer who is a U.S. resident for part of the year and a Non-resident Alien (NRA) for part of the year)

(3) File Location Code 21 returns include:

1. Form 1040 or Form 1040-SRwith addresses in U.S. possessions

2. Form 1040 or Form 1040-SRwith addresses in U.S. territories

3. Form 1040-PR

4. Form 1040-SS

5. Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI), or Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa. attached

6. Form 1040 or Form 1040-SR with Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands, attached

(1) INTL IMF cases are worked in AUSPC only.

(2) All international returns received at IRS offices other than AUSPC will be transshipped to AUSPC on Form 3210, Document Transmittal. Related payments are to be deposited at point of receipt. Refer to IRM 10.5.1.6.7.2 and IRM 10.5.1.6.7.3, Privacy and Information Protection, Privacy Policy on mail and shipping information. All transshipped returns received by AUSPC must have a received date stamp.

(3) The following is a list of international returns requiring transshipment to AUSPC for processing:

1. Any Form 1040, Form 1040-SR,Form 1040A or Form 1040EZ with an address outside the 50 United States and the District of Columbia (This does not include APO/ FPO addresses.)

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

3. Form 2555, Form 2555-EZ, Foreign Earned Income

4. Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests

5. Form 8288-B, Application for Withholding Certificate

6. Form 8804, Form 8805 or Form 8813 Statement of Withholding under Section 1446

7. Form 8833, Treaty-Based Return Position Disclosure

8. Form 8843, Statement for Exempt Individuals and Individuals With a Medical Condition

9. Taxpayer indicates an exemption of income or exclusion from tax due to an international tax treaty. Do not forward "American Indian Treaty" returns

10. "Treaty Trader" or Fulbright Grantee

11. Section 911, 913, or 931 of the Internal Revenue Code (IRC) is notated

12. Form 1040,Form 1040-SR is from Guam

13. Form W-2 from Guam

14. Form 1040-NR or Form 1040-NR-EZ (If Form 1040-NR or Form 1040-NR-EZ is attached to Form 1040,Form 1040-SR leave the Form 1040,Form 1040-SR attached)

15. Form 1040-PR

16. Form 1040-SS or Form 1040-SS (NMI)

17. Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa

18. Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands

19. Dual Status (i.e., a taxpayer who is a U.S. resident for part of the year and a Non-resident Alien (NRA) for part of the year)

20. Primary or both taxpayers are Nonresident Aliens

    Exception: Primary taxpayer is NRA with no SSN; however, secondary taxpayer has an SSN and W-2 income. In this case, edit the secondary taxpayer as the primary taxpayer and continue processing the return.

21. Income paid in foreign currency, when it has not been converted to U.S. currency

22. Any return with both Virgin Island Form W-2 and U.S. income regardless of the address

23. Section 933 of the Internal Revenue Code (IRC) is notated

(1) Examine Form 1040,Form 1040-SR, Form 1040-NR, Form 1040-NR-EZ, Form 2555, Form 2555-EZ, Form W-2 or other documents to determine the taxpayer's status. A taxpayer's status may be U.S. Citizen, U.S. Resident Alien or Nonresident Alien.

1. U.S. citizens living or traveling outside of the United States are required to file a Form 1040 orForm 1040-SR U.S. Income Tax Return, on which they must report their worldwide income.

2. U.S. Resident Aliens are generally Non U.S. citizen taxpayers who are treated as U.S. citizens for tax purposes and are required to file a Form 1040 orForm 1040-SR U.S. Income Tax Return, because they meet either the Green Card or Substantial Presence tests for the tax year in question. Like U.S. citizens, U.S. Resident Aliens are also required to report their worldwide income on a Form 1040 or Form 1040-SR.

3. Nonresident Aliens are generally Non U.S. citizens who do not meet either the Green Card or the Substantial Presence tests for the tax year in question. Nonresident Aliens are taxed on their U.S. source income and on certain foreign source income that is effectively connected with a U.S. trade or business.

(2) For more information on determining the status of an international filer, refer to Pub. 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, and Pub. 519, U.S. Tax Guide for Aliens.

(1) Amended returns must be filed with the jurisdiction which processed the original return.

(2) Estimated Tax Payments must be made to the jurisdiction which will process the tax return.

(1) U.S. citizens who have income from the Virgin Islands but are not bona fide residents of the Virgin Islands file their income tax returns with both the U.S. and the Virgin Islands government.

(1) A dual-status tax return is filed by a taxpayer who is a resident alien and a nonresident alien within the same tax year. This usually occurs in the year the alien arrives in or departs from the United States. However, a resident alien who leaves the U.S. temporarily and does not abandon lawful permanent residence (Green Card), retains resident alien status while abroad. The taxpayer is not considered dual status and must report worldwide income.

(2) The taxpayer is permitted to use Form 1040-NR as a work sheet to compute tax for the period of non-residence or Form 1040, Form 1040-SR as a work sheet to compute tax for the period of residence. If necessary, enter the data from worksheet to perfect the return.

(1) Self-employed persons residing in Puerto Rico compute and report their Social Security Self Employment tax on Form 1040-PR.

(2) Self-employed persons residing in the Virgin Islands, American Samoa, Northern Mariana Islands and Guam compute and report their Social Security Self-Employment Tax on Form 1040-SS.

(3) A signature is required on all Form 1040-PR and Form 1040-SS.

(1) Form 1040-NR and Form 1040-NR-EZ are filed by:

1. Nonresident aliens who have U.S. source income;

2. Nonresident aliens who are engaged or considered to be engaged in a trade or business in the U.S. whether or not they have income from U.S. sources;

   Note: If the taxpayer states present in the U.S. 183 days or more, review the complete return and attachments for additional information explaining the taxpayer's claim continuing Nonresident Alien status. If attachments do not verify continuing non-residency, correspond. If No Reply, process Form 1040-NR and Form 1040-NR-EZ. DO NOT allow the standard deduction or treaty benefits.

   Note: No Reply actions is based on a 45-day period for International cases, beginning with the day the letter is mailed to the taxpayer.

3. Dual status taxpayers in the year of entry into or departure from the U.S.

   Note: If there is an indication that the taxpayer is a Dual Status filer, follow instructions for Dual Status Tax Returns, IRM 3.12.179.22.6.

(2) All Forms 1040-NR and Forms 1040-NR-EZ are processed only in AUSPC under FLC 20.

(3) Income to be reported on Form 1040-NR is classified as either effectively connected with a U.S. trade or business or not effectively connected with a U.S. trade or business.

(4) Income Effectively Connected with a U.S. Trade or Business is reported on Form 1040-NR, Page 1, Lines 1a -15.

1. Returns with an entry on Line 8 ('wage income'), for batching purposes are assigned Doc Code 73. Doc Code 73 returns (wage income) are due the fifteenth day of the fourth month (0415XXXX) following the close of the tax period. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

2. Returns on which other types of "effectively-connected income" is reported Form 1040-NR (page 1, Lines 1b - 15), but which do not include WAGE (line 8) income are assigned Doc Code 72.

(5) Income Not Effectively Connected With a U.S. Trade or Business is reported on Form 1040-NR, Page 4.

1. Returns with only non-wage, effectively- connected income (Form 1040-NR, Page 1, Lines 1b-15), and/or Income Not Effectively Connected With a U.S. Trade or Business (page 4) are assigned Doc Code "72".

2. Doc Code 72 (Non-Wage, Effectively-Connected Income and/or Not Effectively Connected Income) returns are due the fifteenth day of the sixth month (0615XXXX) following the close of the tax period. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   Caution: All returns processed after June 3 (including Form 1040-NR Doc Code 72) and all returns for which the DLN Julian Date (digits 6-8) is 155 or later, require a received date. URC 8 if it is necessary to change the received date to an earlier date.

(6) Income reported on Form 1040-NR-EZ is classified as effectively connected income ONLY:

1. All Forms 1040-NR-EZ are assigned Doc Code 73.

2. Form 1040-NR-EZ is due the fifteenth day of the fourth month following the end of the tax period (04/15/2016 for TY 2015 calendar year returns).≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(1) CONDITION RC 1 Unpost TC 500 with a closing code (cc) 53, 55, 57 or 59 for any of the following conditions:

1. TC 500 cc 53, cc 55, or cc 57 input to a module that does not contain a prior posted TC 500 cc 52, cc 54, or cc 56, respectively, with a matching CSED indicator.

2. TC 500 with cc 53, cc 55, or 57 containing a transaction date prior to a Combat Entry Date or transaction date of TC 500 cc 52 or cc 54.

3. TC 500 cc 58 or TC 500 cc 59 if the transaction date falls within a combat zone period. If both transactions, TC 500 cc 58 and cc 59 are input in the same cycle and the hospitalization exit date is within a combat zone period, both transactions will unpost.

4. TC 500 cc 59 if the combat zone indicator is set to 1 and TC 500 cc 59 exit date is within a combat zone period.

5. TC 500 cc 59 unless the module contains a prior posted TC 500 cc 56 with matching CSED indicator.

6. TC 500 cc 59 if the combat zone indicator is not set to 1.

7. TC 500 cc 58 and TC 500 cc 59 are input in the same cycle, unpost both transactions if the hospitalization exit date on the TC 500 cc 59 is prior to the hospitalization entry date input on the TC 500 cc 58.

(2) Resolution UPC 133 RC 1 GUF Auto-Close URC 2 to Originator.

(1) CONDITION RC 0 This condition occurs when a TC 150 contains CCC A, CCC F, or CCC 9, FSC 2, and the literal DECD is not present in the name line. Bypass anything other than MFT 30 returns.

(2) Resolution UPC 136 RC 0: Research using the return, CC UPRES, CC INOLE, and CC TRDBV to determine if CCC 9 or CCC F is correct.

1. If CCC 9 or CCC F is correct, use the following instructions:

If...	And...	Then...
A. No refund is due		URC 6 to add literal “DECD” to name line. If return contains CCC F, proceed to instruction 3.
B. A refund is due, or return is non-compute	CCC W or L is present and a second name line is present, or	URC 6 to add literal “DECD” to name line. If return contains CCC F, proceed to instruction 3.
C. A refund is due, or return is non-compute	Second name line is missing, and/or CCC W or CCC L is missing.	Input TC 013 to add second name line, using Posting Delay Code. URC 6 to add CCC W or L as needed and to add literal “DECD” to name line. If return contains CCC F, proceed to instruction 3.
D. A refund is due, or return is non-compute	Second name line is present and CCC W or CCC L is missing	URC 6 to add CCC W or CCC L as needed and to add literal “DECD” to name line. If return contains CCC F, proceed to instruction 3.
E. Credits for a subsequent tax period are posted to the deceased taxpayer’s account	The spouse’s account is established and no name change is needed	Transfer the credits to the spouse’s account.
F. Credits for a subsequent tax period are posted to the deceased taxpayer’s account	The spouse’s account is not established	Monitor the spouse’s account until it is automatically established, (two cycles after the return posts). Then transfer the credits.
G. Credits for a subsequent tax period are posted to the deceased taxpayer’s account	The spouse’s account is established, but a name change is needed	Transfer the credits first under the current IMF Name Control. Then input TC 013 with Posting Delay Code 4.

Note: The second name line appears above the entity information on Form 4251. This must be present for a refund return, to indicate that the refund will be paid to the surviving spouse (CCC W) or to the legal representative, i.e., Court appointed, place of business, or a surviving spouse AND legal representative (CCC L), as indicated on the return. CC UPRES shows which CCCs are present on the account.

(3) If the return must not contain a CCC A, CCC 9 or CCC F, URC 8 and request removal of CCC.

• UPC 136 - Related Computer Condition Codes

(1) Research to ensure the spouse's account is established.

1. If the spouse's account is not established, Master File will generate a TC 000 to establish the spouse's account two cycles after the return posts. If credits for a subsequent tax period are posted to the deceased taxpayer's account, monitor the account until the spouse's account is established. Once established, transfer the credits to the spouse's account.

2. If the spouse's account is established, compare the name line of the established account with the spouse's name on the unpostable document.

3. If the names are different, input a TC 013 to update the established account. If transferring credits, use Posting Delay Code (PDC) 4 when inputting the TC 013.

4. If the names are the same, transfer any credits or payments as needed, cycling as appropriate. TC 430 or TC 660 payments for the tax period of the joint return will be automatically transferred by the computer.

   Note: Be sure TC 000 has posted before initiating credit transfer.

(1) CONDITION RC 1 This unpostable occurs when a TC 150 with a primary TIN that starts with a "9" and that contains a claim for the Earned Income Credit (EIC) and/or a personal exemption attempts to post.

(2) Resolution UPC 136 RC 1 GUF Auto-Close URC 8 to Rejects.

(1) CONDITION RC 1 This condition occurs when a TC 898 with Doc Code 45 has resequenced for ten cycles and the module does not contain a TC 840 with a matching DLN.

(2) Resolution UPC 137 RC 1 Use the following IF and THEN chart for case resolution.

(1) CONDITION RC 2 This condition occurs when:

1. TC 898 with Doc Code 45 does not match the DLN of a prior posted TC 840 or

2. TC 898 with Doc Code 77 and the transaction date is not within 12 days of a prior posted EFT TC 846 or within six days of a paper refund.

(2) Resolution UPC 137 RC 2 Research the module for the most recent pending or posted TC 840 / TC 846. When analyzing for this condition, only consider TC 846(s) that are dated the same date or later than the TC 898.

(1) CONDITION RC 3 This condition occurs for the following reasons:

1. the memo amount of the TC 898 is greater than the money amount of the matching TC 840 / TC 846. If the module contains multiple TC 898 / TC 899 transactions with the same date, these must be netted when performing this check.

2. the split refund indicator on the TC 898 is different from the split refund indicator on the matching TC 846 with the same date.

(2) Resolution UPC 137 RC 3 Use the following IF and THEN chart for case resolution.

(1) CONDITION RC 4 This condition occurs for the following reasons:

1. TC 899 containing an OTN (Top Offset Trace Number) that does not match the OTN of a prior posted TC 898 with the same date.

2. The split refund indicator on the TC 899 does not match the split refund indicator of a prior posted TC 898 with the same date.

(2) Resolution UPC 137 RC 4 Take the following steps to correct the unpostable.

Note: When closing cases based on the determination made by the TOP/DMF Liaison, include remarks showing the case was closed per the TOP/DMF Liaison.

Note: Always research cross-reference TINs for matching TC 898. Do not attempt to URC 6 to a proper TIN. Instead, notify management to elevate to the Headquarters IMF Unpostable Analyst through (P&A) analyst for resolution assistance. Coordination with the TOP/DMF Liaison to reinput the cross-reference TIN will be made.

(1) CONDITION RC 5 This condition occurs for either of the following:

1. TC 899 with Record Type 1-3, and 5 containing a memo amount that exceeds the net amount of a prior posted TC 898 / TC 899 with the same OTN minus the net of TC 76X with the same OTN.

2. TC 899 Record Type 4 and the module does not contain a TC 899 Record Type 2 with matching OTN. If found, unpost unless the net memo amount of the TC 899 Record Type 2 minus prior posted TC 899 with Record Type 4 (all with matching OTNs) is equal to or greater than the input TC 899 Record Type 4.

(2) Resolution UPC 137 RC 5 Often this unpostable is caused by a timing issue. TC 899 Record Type 4 will not post unless a TC 899 Record-Type 2 is already posted on the account. TC 899 Record-Types 2 and 4 will often be transmitted on the same tape from BFS, or the Record Type 2 will be sent after the Record-Type 4.

1. You must take into consideration all TOP transaction codes with the same OTN to determine the net TOP Offset amount. Disregard the signs (+ or -) of each transaction code when completing the steps below. See IRM 21.4.6.4.2.11 , Netting TOP Offsets and Reversals, for more information.

2. Determine the TOP offset, TC 898, or TC 971 AC 598 and the OTN of the offset that is to be netted.

3. Subtract from the TC 898 or TC 971 AC 598: all TC 899s or TC 971 AC 599s, type 1, type 2, or type 3, with the same OTN.

4. Subtract from the TC 898 all TC 766s with the same OTN.

5. Add to the TC 898 or TC 971 AC 598: all TC 899s or TC 971 AC 599s, type 4, with the same OTN

6. Add to the TC 898 all TC 767(s) with the same OTN.

Note: When this formula is used and the balance equals zero, refer to the TOP/DMF Liaison.

7. Written as a formula, the above steps appear as follows:

Net TOP Offset Amount
TC 898 or TC 971 AC 598 – TC 899 or TC 971 AC 599 types 1, 2, or 3 – TC 766s + TC 899 or TC 971 AC 599 type 4 + TC 767s = Net TOP Offset Amount
NOTE: The OTN must be the same for all these transactions when computing the net TOP offset amount.

8. Use the following IF and THEN chart for case resolution:

   Note: When following the case resolution below always check to ensure the transaction dates match on the TC 899 and TC 898

   Note: When closing cases based on the determination made by the TOP/DMF Liaison, include remarks showing the case was closed per the TOP/DMF Liaison.

If ...	And ...	Then ...
A. TC 899 Record-Type 1 is unpostable		Contact TOP/DMF Liaison for resolution refer to IRM 3.12.179.37 for TOPS/DMF liaison information.
B. TC 899 Record-Type 2 is unpostable	TC 766 with the same OTN and same money amount is present	Contact TOP/DMF Liaison for resolution. Refer to IRM 3.12.179.37 for TOPS/DMF liaison information.
C. TC 899 Record-Type 3 is unpostable		Contact TOP/DMF Liaison for resolution. Refer to IRM 3.12.179.37 for TOPS/DMF liaison information.
D. TC 899 (any Record-Type) is unpostable	TC 898 is unpostable (with the same OTN)	Close the TC 898 according to the UPC code resolution. Close the TC 899 with URC 0 unless the transaction date is incorrect then close with URC 6 to correct. Cycle delay to allow the TC 898 to post first.
E. TC 899 (any Record-Type) is unpostable	There is no record of TC 898	Close using URC D. Include in the remarks that there is no record of TC 898.
F. TC 899 (any Record-Type) is unpostable	TC 899 with the same record type has already posted with the same OTN and exact money amount. This may be a duplicate transaction. Note: the 2nd TC may reflect a different transaction date	Contact TOP/DMF Liaison for resolution refer to IRM 3.12.179.37 for TOPS/DMF liaison information.
G. TC 899 (any Record-Type) is unpostable	TC 899 has already posted with the same OTN	Using the offset formula: If the total reversal amount is less than the TC 898 offset amount, URC 6 to correct the transaction date. If the total reversal amount is greater than the TC 898 offset amount, URC D.
H. TC 899 Record-Type 4 is unpostable	TC 899 Record-Type 2 is unposted	Close the TC 899 Record-Type 2 according to the UPC code resolution. Using the offset formula: If the total reversal amount is less than the TC 898 offset amount, URC 6 to correct the transaction date. If the total reversal amount is greater than the TC 898 offset amount, URC D.
I. TC 899 Record- Type 4 is unpostable	TC 899 Record-Type 2 is found	Using the offset formula: If the total reversal amount is less than the TC 898 offset amount, URC 6 to correct the transaction date. If the total reversal amount is greater than the TC 898 offset amount, URC D.
J. TC 899 Record-Type 4 is unpostable	TC 899 Record-Type 2 is not found	Suspend the case for two cycles. If TC 899 Record-Type 2 is still not found then close the unpostable with URC D.

(1) CONDITION RC 6 This condition occurs when a TC 899 containing a Spouse's SSN does not match the Spouse's SSN of a prior posted TC 89X with the same date and OTN.

(2) Resolution UPC 137 RC 6 Research for correct SSN and close using URC 6.

(1) CONDITION RC 0 This condition occurs for any of the following reasons:

1. TC 720, TC 740, or TC 841 greater than the net amount of the posted TC 72X and TC 84X transactions.

2. TC 841 blocking series 77777 or 77711-77713 or 77714 if the module does not contain a prior posted EFT TC 846.

3. TC 740 / TC 841 not equal to a prior posted unreversed TC 840 or TC 846, unless TC 898 is also on the module with the same date as the TC 840 / TC 846. Unpost if the input transaction does not match an amount of a prior posted TC 840 or TC 846, or TC 849.

4. TC 740 will unpost as UPC 194 if the amount is less than a prior posted TC 840 or TC 846. TC 740 / TC 841 may be less than the money amount of the TC 840 / TC 846 providing the module contains an unreversed TC 898. In this situation, the TC 740 / TC 841 must be greater than the amount of the original refund and equal to the TC 840 / TC 846 minus the net of TC 898 / TC 899 / TC 76X with OTN. In all cases the OTN must match the OTN of the TC 898. If the TC 841 / TC 898 / TC 899 is input for a refund that is being split, the split refund indicator should be present.

5. TC 841 does not have a Split Refund Indicator that matches the indicator on a prior posted TC 846. Bypass the Split Refund Indicator for split paper refund.

6. TC 841 blocking series 77714 if the module does not contain a prior posted EFT refund.

   Note: If contacted by Accounting to release a case immediately, then URC 1 the case to Accounting. In "Remarks" (line 8 of UPRES) state the case is being closed at the request of Accounting and provide any additional information as needed.

(2) Resolution UPC 138 RC 0 - Conduct thorough research to determine if the unpostable TC is addressing the correct module.

(3) If TC 740 is a duplicate of a posted TC 841 with a DLN in blocking series 94X and cases that are not caused by one of the following:

• A duplicate TC 841

• Money amount discrepancy

• A split refund indicator issue and cannot be resolved by Unpostables
  Suspend unpostable.

• Input CC STAUP (Not to exceed 4 cycles).

• Establish an open control with the CC ACTON.

Note: TC 740 is UPC 138 RC 0 in Kansas City. Research shows a posted TC 841 (blocking series 940-949) was input by the Austin campus. Assign the control base to Austin Accounting. Refer to Document 6209, Section 4 for a complete listing of File Location Codes.

• Use Activity Code – 25 (TNSFRCASE).

• Input Category Code - RTCK (Returned Check).

• Accounting will utilize the CCA 42–43, IDRS Overage Report to identify, monitor and work these cases.

• If the account already has an established open control base, then notify the controlling area of the actions being taken.

• Monitor the account for 4 cycles and check CC UPDIS for remarks from Accounting.
  If the TC 840 or TC 843 is pending or posted close the unpostable with URC 0 to post the TC 720 or TC 740 and cycle delay as needed.
  If there is no TC 840 or TC 843 pending or posted after 4 cycles, close the unpostable case with URC 1 to Accounting.
  When either a TC 840 or a TC 843 has posted on the account, then Unpostables will close the unpostable with URC 0 to post the TC 720 or TC 740.

(4) Resolution Procedure UPC 138 RC 0 for TC 841. When there is a duplicate TC 841 posted on an account, then the following actions must be taken (unless the unpostable is Doc Code 45 and the posted TC 841 has a DLN in blocking series 94X):

(1) When a TC 720 on Doc Code 45 unposts with an inflated Julian Date (4XX-7XX), elevate to HQ through local P&A Analyst.

(2) When TC 720 is an Economic Impact Payment (EIP 3) with TC 766 CRN 338 or TC 766 CRN 257 on the module with the same money amount, close with URC 6 and change the date to match the date of the posted TC 846 date.

(3) When TC 720 on Doc Code 45 unposts and the amount of the TC 720 is greater than the net of TC 72X and TC 84X on the module (including when there are no TC 840 / TC 846 on the module), conduct thorough research to determine if the unpostable TC is addressing the correct module.

1. If unable to locate where to post the refund repayment, transfer to Unidentified. If the received date is over one year old, send the unpostable TC 720 to Excess Collections. URC 1 to Accounting with instructions to forward to Unidentified or Excess Collections as appropriate.

2. Include all research when closing the unpostable.

(1) The Refund Product Code indicators can be found on TRDBV under the attribute of Refund Anticipation Loan Code and on MeF Return Request Display (RRD) under Code and Edit values titles REF Anticipation Loan Ind. If there is no RAL code 1-4 present on CC TRDBV, the refund should not be considered a Refund Advance Product.

(2) TC 720 does not match the net amount of the posted TC 72X or TC 84X transactions on a module. The account will have the following indications that a refund that was used to obtain a refund anticipation loan (RAL) is being returned by the bank.

1. TC 916 CI Refund Freeze was posted on module, may have already been reversed.

2. TC 971 AC 017 posted – indicates a return posted to a cross-reference TIN.

3. Cross-reference TIN is an IRSN.

4. TC 846 has been reversed by a TC 841 and a TC 840 for same amount/tax period is posted on the cross-reference TIN.

5. Form 3245, Posting voucher, is marked that the repayment is for a RAL.

(3) If the TC 720 is equal to or less than the TC 840 on the XREF TIN, URC 6, definer B to move the unpostable repayment to the cross-reference TIN.

(4) If a TC 720 with a Doc Code 48 needs to be renumbered to a TC 700, then URC 1 to Accounting with instructions to input a TC 700 with a Doc Code 58.

(5) If a TC 720 with Doc Code 45, URC 1 to Accounting with instructions to renumber to Doc Code 17 as TC 670, with secondary TC 570. Send completed Form 3245 and Form 3244, along with a print of CC TXMODA, showing unpostable TC 720 and posted TC 846.