5.9.16. Insolvency Case Monitoring

IRM 1.4.51.8.3

Case Management Tools, contains guidance on the various reports utilized throughout the Insolvency program

IRM 1.4.51-9

Guide for Bar Date Follow-up Report (Field Insolvency)

IRM 1.4.51-10

Guide for Proofs of Claim Follow-up Report (Field Insolvency)

IRM 1.4.51-11

Guide for Litigation Transcript System Reports (Field Insolvency and CIO)

IRM 1.4.51-13

Guide for Court Closure Follow-up (Field Insolvency and CIO)

IRM 1.4.15-14

Guide for Tech Review Follow-Up Report (Field Insolvency and CIO)

IRM 1.4.51-16

Guide for LAMS Closed Case Listing Report (Field Insolvency and CIO)

IRM 1.4.51-22

Guide for Referral to Counsel Report (Field Insolvency)

IRM 1.4.51-23

Guide for LAMS Not Found on AIS Case Listing Report (Field Insolvency and CIO)

IRM 1.4.51-27

Guide for Aged Case Report (Field Insolvency and CIO)

IRM 1.4.51-34

Guide for Unpostable Reports (Field Insolvency and CIO)

AIS

Automated Insolvency System

ASED

Assessment Statute Expiration Date

CC

Command Code

cc

Closing Code

CCP

Centralized Case Processing

CIO

Centralized Insolvency Operation

CSED

Collection Statute Expiration Date

DOD

Date of Death

DPC

Designated Payment Code

FI

Field Insolvency

FPLP

Federal Payment Levy Program

GII

Generalized IDRS Interface

GUF

Generalized Unpostable Framework

IAT

Integrated Automation Technologies

IIP

Insolvency Interface Program

LAMS

Litigation Accounts Management System

LTS

Litigation Transcript System

MF

Master File

NFTL

Notice of Federal Tax Lien

NMF

Non-Master File

RTR

Remittance Transaction Research

SCI

Specialty Collection Insolvency

TC

Transaction Code

TIN

Taxpayer Identification Number

TPR

Trustee Payment Research

UPC

Unpostable Code

TC 520 cc 60, 61, 62, or 63 (prevents pre-petition to pre-petition offsets and freezes pre-petition refunds),

Follow the chart "When a True Module Credit Exists" below.

TC 520 cc 64 or 65 (allows pre-petition offsets and does not freeze pre-petition refunds),

Update Manual Refund screen on AIS to "never process" and document AIS history.

TC 520 cc 66 or 67 (allows pre-petition to pre-petition offsets and freezes pre-petition refunds),

Follow the chart "When a True Module Credit Exists" below.

TC 520 cc 83 (prevents all offsets and does not freeze pre-petition refunds),

Follow the chart "When a True Module Credit Exists" below.

TC 520 cc 60 or 61 (allows post-petition to post-petition offsets and does not freeze post-petition refunds),

Update Manual Refund screen on AIS to never process and document AIS.

TC 520 cc 62, 63, 66, or 67 (allows post-petition to post-petition offsets and freezes post-petition refunds),

Follow the chart "When a True Module Credit Exists" below.

TC 520 cc 64 or 65 (allows post-petition offsets and does not freeze post-petition refunds),

Update Manual Refund on AIS to “never process” and document AIS.

TC 520 cc 83 (prevents all offsets and does not freeze post-petition refunds),

Follow the chart "When a True Module Credit Exists" below.

Standing orders or local rules allow offsets,

CIO Action: Input a credit transfer online. (See IRM 21.5.8.4, IDRS Guidelines for Credit Transfers, and IRM 21.5.8.4.1, Credit Transfer Input on IDRS.) If an amended POC is required, reassign the case to the appropriate FI caseworker, documenting the AIS history with the reason for the reassignment. The FI caseworker will be advised of the potential need for case action via e-mail sent by AIS to their Outlook e-mail address.
FI Action: Prepare Form 2424 and forward to Centralized Case Processing (CCP). The document may be sent electronically by secure e-mail to *SBSE CCP INSLV. If the credit transfer will not absorb the entire credit, prepare a manual refund to issue the credit to the debtor or trustee.

Standing orders or local rules do not allow offsets, and the dollar amount meets the criteria for referral to Counsel to request a lift of stay for offset,

CIO Action: Reassign the case to the appropriate FI caseworker. Document the AIS history, noting the research results and basis for transferring the case to FI. The FI caseworker will be advised via e-mail sent by AIS to their Outlook e-mail address.
FI Action: Depending on local agreement with Area Counsel, make a determination about requesting a lift of stay for offset.

The credit is due to a TC 740 (S- freeze),

Review the account to determine if the refund was issued to an incorrect address;

• if a new address is found for the taxpayer or Trustee, reissue the manual refund to the updated address;

• if no new address can be found, document AIS with research performed and that no further action can be taken.

The credit is due to a TC 610, 640 (-F freeze), 650,

Document AIS history stating applicable TC and no actions is needed.

The credit is due to a TC 766,

TC 766 credits must be researched further to determine their credit reference number (CRN); certain CRNs are not refundable.

Research the account further to determine if this credit should be resolved or if the case should be referred to the CIO Operation Support Team.

The credit cannot be offset and does not meet the criteria for referral to Counsel, (See IRM 5.9.4.15.4, Referral Tolerances),

Prepare Form 5792, Request for IDRS Generated Refund (IGR), to refund the overpayment to the debtor or to send the credit to the debtor c/o of the trustee. If the overpayment came from the trustee, the overpayment should be sent back to the trustee. If the overpayment came from debtor or third party, the refund of the overpayment should be sent to the debtor or trustee, depending on whether the trustee has made a valid turnover request.

Research shows existing post-petition liabilities,

Apply the credit to the existing post-petition liability unless offset is barred by local rules or standing orders.
CIO Action: Input a credit transfer online. (See IRM 21.5.8.4, IDRS Guidelines for Credit Transfers, and IRM 21.5.8.4.1, Credit Transfer Input on IDRS.)
FI Action: Prepare Form 2424 (or other form accepted by CCP) requesting a credit transfer and send to CCP.

More than one post-petition liability exists,

Apply the credit to the most imminent CSED first, and continue in this same manner until the credit is exhausted (unless offset is barred by local rules or standing orders).

The credit is not exhausted but standing orders or local rules allow post-petition credits to offset to pre-petition debts,

CIO Action: Input a credit transfer online. (See IRM 21.5.8.4, IDRS Guidelines for Credit Transfers, and IRM 21.5.8.4.1, Credit Transfer Input on IDRS.) Update the AIS history explaining actions taken. If a proof of claim has been filed, reassign the case to the appropriate Field Insolvency caseworker. The Field Insolvency caseworker will be advised of the potential need for case action via an e-mail sent by AIS to their Outlook e-mail address.
FI Action: Prepare Form 2424 (or other form accepted by CCP) requesting a credit transfer and send to CCP. Amend claim or send credit letter to trustee as needed.

The case is a Chapter 13, the credit is not exhausted, no standing orders exist for offset to pre-petition liabilities, but the dollar amount meets IRM criteria for referral to Counsel to request a lift stay,

CIO Action: Document the AIS history, noting the research results and the basis for transferring the case to the Field. Reassign case to the appropriate FI caseworker. The FI caseworker will be advised of the potential need for case action via an e-mail sent by AIS to their Outlook e-mail address.
FI Action: Consider requesting a lift of stay for offset based on local referral tolerances.

The credit is not exhausted, no standing orders exist for offset to pre-petition liabilities, and the amount does not meet the criteria for referral to Counsel to request a lift of stay,

Prepare Form 5792, Request for IDRS Generated Refund (IGR), for any remaining credit and document the AIS history. The refund should be directed to the debtor or the trustee depending upon local rules or trustee turnover requests. IRM 5.9.16.3, Manual Refunds.

The new assessment is on a pre-petition period, and the case is a Chapter 13 or Chapter 7 Asset bankruptcy,

CIO Action: Re-assign the case to the appropriate FI caseworker; and document actions in the AIS history.
FI Action: Determine if a new claim should be filed or if an existing claim should be amended. (See IRM 5.9.5.4, AIS Documentation, and IRM 5.9.14.3.1, Amends Process.

The new assessment is on a pre-petition period and the case is a Chapter 7 Asset assigned to FI, Chapter 11, or Chapter 12,

FI Action: Determine if a new claim should be filed or if an existing claim should be amended.

The new assessment is on a post-petition Chapter 13 period and the assessed liability is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡

CIO Action: Input TC 520 cc 84 (See IRM 5.9.10.8(5), TC 520 Input on Post-Petition Modules), update the AIS history (example - Working LTS New Assessment for XX-20XX12 for $XX, TC 520 cc 84 input, discard) and discard the transcript in classified waste. Also, see Note below.

The new assessment is on a post-petition Chapter 13 period and IDRS indicates full pay has been received based on the systemic balance due notice,

CIO Action: document AIS and place the transcript in classified waste if full payment has been received.

The new assessment is on a post-petition Chapter 13 period, and IDRS indicates full pay has NOT been received based on the systemic balance due notice, and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡

CIO Action:

• Input TC 520 cc 84 (See, IRM 5.9.10.8(5), TC 520 Input on Post-Petition Modules. See also Note below.

• Check to see if the petition date is within the last 4 calendar years. If not, update the AIS history (example - Working LTS New Assessment for XX-20XX12 for $XX, petition date not within last 4 calendar years, TC 520 cc 84 input, and discard the transcript in classified waste.

• If the petition date is within the last 4 calendar years, update the AIS history (example - Working LTS New Assessment XX-20XX12 for $XX, TC 520 cc 84 input, reassigned to the appropriate FI caseworker.

• The FI caseworker will be advised of the potential need for case action via an e-mail sent by AIS to their Outlook e-mail address notifying them of the case transfer.

FI Action:

• Follow local procedures for addressing post-petition liabilities. Annotate the AIS history explaining how post-petition liabilities are to be handled upon discharge. (See IRM 5.9.5.4, AIS Documentation).

The TC 521 has not posted on all modules,

Use IDRS command code REQ77 to input TC 521 to those modules where TC 521 is lacking. See IDRS Command Code Job Aid on SERP.

The TC 521 has posted on all modules,

Review IDRS for the status of TC 520s. For multiple TC 520s, determine which TC 520 remains unreversed. See "Caution" above.

The TC 521 has gone unpostable on at least one module because of an incorrect closing code,

Use IDRS command code REQ77 to input TC 521 with the correct closing code to those modules where TC 521 unposted. See IDRS Command Code Job Aid on SERP.

The TC 520 relates to the LTS report bankruptcy case and the bankruptcy TC 521 has posted,

CIO Action:

• Using command code REQ77, input TC 470 with no transaction date.

• At the same time input TC 472 with no transaction date, but with a one cycle delay. (Status 72 will change to status 47 and then to status 50 systemically)

• Once the case is in status 50, input command code STAUP, using status of case prior to bankruptcy and 00 cycles to remove the status 72 indicator. See IDRS Command Code Job Aid on SERP

FI Action: Request the above actions from CCP.

The TC 520 relates to an Appeals case or other non-bankruptcy litigation,

No action is necessary as the TC 520 is valid.

The TC 520 applies to a bankruptcy case not related to the LTS report case,

No action is necessary.

The case is a Chapter 13 or a Chapter 7 No Asset bankruptcy and payments have a DPC 05 and are in violation of the automatic stay,

Prepare, Form 5792, Request for IDRS Generated Refund.

The case is a Chapter 13 or a Chapter 7 No Asset bankruptcy with DPC 06, 07, or 08, and payments are in violation of the automatic stay,

FI Action: Review case and consult Counsel for guidance.

The case is a Chapter 7A, 11, or 12 bankruptcy, and payments are in violation of the automatic stay,

A decision must be made to refer the case to Counsel for a motion for offset or adequate protection or to prepare Form 5792.

Payments are not in violation of the automatic stay,

Determine if other liabilities exist where an offset is applicable.

Payments are not in violation of the automatic stay, and an offset is applicable,

Apply the payment according to the Bankruptcy Code or local rules/standing orders. Prepare Form 2424 (or other form accepted by CCP) requesting a credit transfer and send to CCP. Amend claims or send credit letters as needed.

Payments are not in violation of the automatic stay, but an offset is not applicable,

Prepare Form 5792.

The refund is due to trustee payment that posted to a pre-petition or post-petition period,

CIO Action:

• Input TC 520 cc 81

• Update the freeze screen

• Reassign the case to FI

• Document actions

FI Action: Review the account and follow the chart in IRM 5.9.15.7.2, Multiple Refunds.

The refund is due to other non trustee payments, such as a voluntary payment,

CIO Action: Review the entire taxpayer account including RTR (Remittance Transaction Research) System, if available, to ensure the voluntary payment was posted to the correct tax period. If the taxpayer designated the payment for tax period other than the period the payment was posted to, issue Letter 510-C, Refund in Error: Return Check. Use paragraph F, T, U, W, a, b, e, h.

The refund is due to a joint liability and both debtors filed individual bankruptcies,

CIO Action

• Input TC 520 cc 81

• Update the freeze screen

• Reassign the case to FI

• Document actions

FI Action Review the account and follow the chart in IRM 5.9.15.7.2, Multiple Refunds.

The refund is due to an economic impact payment: (EIP 1: The Coronavirus Aid, Relief and Economic Security CARES Act; EIP 2: The Consolidated Appropriation Act of 2021; EIP 3: American Rescue Plan Act of 2021),

CIO Action & FI Action: No action is necessary. No AIS history is needed.

DPC code: Blank or 99,

• Check RTR, if available

• If NFTL or levy payment, follow IRM 5.9.5.8, Levies and Bankruptcy

• If not a NFTL or levy payment, follow IRM 5.9.4.5.1, Addressing Credits, Refunds, and Offsets,

• Update AIS history with all actions taken.

DPC: 04, 20, or 21 (State levy),
05 (Levy),
07 (Payment received expressly for full or partial payoff of the Notice of Federal Lien),
18 (FPLP Primary),
19 (FPLP Secondary),

• Follow IRM 5.9.5.8, Levies and Bankruptcy

• Update AIS history with all actions taken

DPC other than 04, 05, 07, 18, 19, 20, or 21,

Update AIS history listing reason for no additional action, example “Working LTS After Petition for cycle 2016XX for MFT - Period on TIN, TC 670 DPC is 03, no action needed.”

AIS history shows NFTL period already addressed,

Update AIS history stating NFTL was already addressed and no additional action is needed.

AIS history doesn’t support leaving NFTL in place,

• Follow IRM 5.9.5.9.1, NFTL Filed after Bankruptcy Filing

• Update AIS history with actions taken.

Chapter 7N,

Update AIS history stating Chapter 7N and no action is needed.

All Chapters other than 7N and not credit balance,

CIO Action:

• Review for possible reassignment to FI to amend Proof of Claim (POC).

• Update AIS history will all actions taken.

FI Action:

• Amend POC if needed.

• Update AIS history with all actions taken.

All Chapters other than 7N and credit balance,

• Follow IRM 5.9.4.5, Credits, Refunds, and Offsets

• Update AIS history with all actions taken.

Pre-petition to pre-petition or post-petition to post-petition,

Update AIS history stating offset allowed and no additional action needed.

Pre-petition to post-petition or post-petition to pre-petition,

Review, IRM 5.9.18.6.7, Post-petition Payment, and Bankruptcy Law Advisory Rules Engine (BLARE) see if offsets are allowed.

• If allowed, no action needed.

• If not allowed, reverse offset.

• Update AIS history with all actions taken.

TC 610 (Remittance with Return),
TC 640 (Advance Payment of Determined Deficiency or Underreporter Proposal),
TC 650 (Federal Tax Deposit),

Update AIS history stating transaction code and no action is needed.

TC 520 is on a period and systemic mirroring is incomplete (Example - unreversed TC 520 on MFT 31 and there is a TC 400 on the module but no TC 402),

• Re-open case on AIS.

• Reassign the case to CIO Operation Support Team. Use the SERP - CIO Team Assignment - Who/Where (irs.gov) on SERP to locate the correct SEID.

• Document AIS history.

TC 520 is on a period and the account was transferred to Non-Master File (NMF) because the transaction section exceeded maximum posting size,

You cannot reverse the open TC 520 on the MFT 30 account. The MFT 30 account has been transferred to NMF. You must order NMF transcript and take the appropriate action to process the dismissal or discharge actions.

• CIO caseworkers should refer the case to their technical lead.

• FI caseworkers should work the NMF case taking steps outlined in IRM 5.9.16.4.2(10).

A subsequent bankruptcy case has been filed,

Review cases beginning with the most current case,

• If the unreversed TC 520 is for the most current bankruptcy and the case is still open on AIS, no action is needed.

• If the unreversed TC 520 is for previous bankruptcy and case is closed on AIS, follow procedures below for appropriate action.

  Note: Closing previous bankruptcy may close (reverse) all TC 520s. If so, you will have to re-input TC 520 for the new bankruptcy.

• If the unreversed TC 520 is a previous bankruptcy and the case is on AIS, research PACER to see the if the case is closed. If PACER shows the case is closed, initiate closing action for dismissal or discharge.

Note: You need to ensure there is a posted TC 520 for the most current bankruptcy. If the TC 520 for the previous bankruptcy was not reversed, the new TC 520 may not have posted to IDRS. An IIP error or unpostable may have generated.

• If most current bankruptcy is open on AIS and no posted TC 520 on IDRS, set a follow-up to input TC 520 after previous TC 520 is closed. Document AIS history with action taken including case number and petition date of previous bankruptcy.

• If most current bankruptcy is closed on AIS and no posted TC 520 on IDRS for this bankruptcy petition date, reopen case, set follow-up to input TC 520 after previous bankruptcy case is closed. After TC 520 posts on previous filed case, need to process dismissal or discharge. Document AIS history with action taken, including case number and petition date of previous bankruptcy.

• If all cases are closed determine which 520s are unreversed on IDRS. For 520s that are unreversed follow instructions bellow for appropriate closure method.

• Notate on listing action taken.

The case was dismissed,,

• Input TC 521 to IDRS.

• Document AIS history.

• Notate action on listing.

The case was discharged,

• Review for stay violations, (such as injunctions where post-petition refunds offset to dischargeable debts). If a violation are found, take corrective action(s).

• Check for unresolved Discharge Determination Report (DDR). If found take appropriate action(s).

  Note: If appropriate action requires follow-up, reopen the case on AIS.

• Update the AIS history (Example: “Working LAMS Closed Case Listing, unreversed TC 520 ccXX on MFT/TXYR. Period addressed.)

• If stay violations are found, take appropriate action(s) and document AIS and notate on listing.

  Note: If case is reopened on AIS for monitoring or follow-up, close the case after all corrective action(s) have been taken.

The case was closed, No Liability (NL) with no balance due remaining,

Request closure through IIP See IRM 5.9.17-1, Closing Dismissals.

The case was closed NL, but a pre-petition balance due remains,

Take appropriate action to address the balance due which may include making a CNC determination, inputting TC 521 or abating the balance.

The case was closed as Other, Full Paid, or Administrative Court Closing,

• Input TC 521 to IDRS, using the current date.

• Document AIS history, and notate on listing action taken.

The case was filed on or after October 17, 2005, and the stay was not imposed,

Follow instructions in IRM 5.9.5.7, Serial Filers.

You locate the case and it is a Chapter 11 open, dismissed, discharge, or terminated,

CIO Action: Notate listing with case number, including court key, chapter, bankruptcy status and state the taxpayer is located in. Do not add case to AIS, forward case to the CIO Technical Advisor.
FI Action: Review the case. Reverse the TC 520 using TC 522, if the TC 520 was input to IDRS in error. If input of the TC 520 was correct, add the TIN to the TIN screen on AIS. After the TIN is added to the TIN screen, add each module containing a TC 520 to the AIS Freeze screen. If no case is on AIS and one should be added, send the case to CIO to add.

SSN listed is for a non-debtor spouse (NDS) in an open bankruptcy case on AIS (Example: trustee turnover exists and the NDS filed a joint return with the debtor),

• Add the SSN to the TIN screen and select “Non-Debtor Spouse” as the debtor type.

• Document AIS history and notate on listing action taken.

SSN listed is for a NDS in a closed trustee turnover case on AIS (TTEE RFND on classification screen), no IDRS balance due,

If the refund was already issued (TC 840/846)

• Manually input TC 522.

SSN listed is a NDS for a closed bankruptcy case,

• Manually input TC 522.

SSN listed is a NDS for an open bankruptcy case on AIS, and AUR or another function requested up-front mirroring and the mirroring is complete,

• Manually input TC 522 on MFT 31 tax period for NDS.

• Add MFT 31 to freeze table for debtor.

Case is not on AIS and TIN listed is a NDS on a closed bankruptcy case for their spouse, and there are no unreversed TC 520s on the debtor’s TIN and no balance due on the NDS,

• Manually input TC 522.

EIN/SSN listed is for an open bankruptcy case on AIS,

• Add the SSN to the TIN screen and select the correct file source (If MFT 51, select TIN with a V file source.)

• Document history and notate on listing action taken.

  Note: If EIN is a corporation and open bankruptcy is under SSN, refer to FI for determination if the TC 520 should have been input.

EIN/SSN listed is for a closed bankruptcy case on AIS.

• Reopen case.

• Add the SSN to the TIN screen and select correct file source (If MFT 51 select TIN with a V file source).

• Assign case to CIO if Chapter 7A, 7N, or 13, if not already in CIO’s inventory. For all other Chapters assign to FI.

• If dismissed, request input of TC 521 through IIP.

• If discharged, remove the closed on AIS date, (ensure no stay violations have occurred, including discharge injunctions where post-petition refunds offset to dischargeable debts. If a violation is found, corrective action must be taken within two work days); check for DDR, determine if applicable actions not performed or if all actions needed were taken, take necessary actions, manually input TC 521 and close case on AIS.

• Document AIS history “LAMS NOT on AIS Listing, unreversed TC 520 XX on MFT/TXYR that need to be addressed” and notate on listing action taken.

Case not on AIS, found on PACER and case remains open.

• Add case to AIS.

• Document AIS history and notate on listing action taken.

Case not on AIS, found on PACER and case has been dismissed or discharged and there are no CSED issue (any periods that are less than 10 years old).

• Add case to AIS.

• If dismissed, input dismissed and noticed dates.

• Add TC 520 and closing code to freeze screen.

• Input method of closure on AIS Taxpayer screen and request input of TC 521 through IIP.

• If discharged, input the discharge date and notice date on AIS Taxpayer screen. Initiate ADS closing action by updating the method of closure with CH7&HARDSHIPCH13 RI or 13 PLAN COMPLETED SI on the Taxpayer screen. Ensure no stay violations have occurred, including discharge injunctions where post-petition refund offset to dischargeable debts. If a violation is found, corrective action must be taken within two work days.

• Document AIS history “LAMS Not on AIS Listing, unreversed TC 520 XX on MFT/TXYR addressed and notate on listing action taken.

Case not on AIS, found on PACER and case has been dismissed or discharged and there are CSED issues (any period that are 10 years old or older).

If DLN of TC 520 is other than 28 or 28 and posting is prior to cycle 2006,

• Notate listing with the case number, including court key, chapter, status, and state the taxpayer is located in.

• Refer to CIO Technical Advisor.

• FI review the case, if the CSED has expired, follow guidance in IRM 1.4.51.15.2, CSED Accounts. If the CSED has not expired, follow the procedures above.

• If DLN of TC 520 is 28 and CSED expired, consult your lead. If the lead agrees that the CSED expired, follow guidance in IRM 1.4.51.15.2, CSED Accounts. If the CSED has not expired, follow procedures above.

TIN is not found on AIS and is not found on PACER and TIN is not a cross reference or NDS for a bankruptcy case.

• Check tax period on IDRS with open TC 520 to see if there is a deleted unpostable TC 521/522.
  If there is a deleted unpostable TC 521/522 with a date after the TC 520 date and different closing code, re-input with same closing code as open TC 520.

• Check other tax periods on IDRS to see if TC 520 closed out another period.
  If TC 521/522 found on another period reversing TC 520 with the same date, input TC 521/522 with same date as TC 521/522 that posted on other tax period.
  If no TC 521/522 found on another tax period, input TC 522 via IDRS on all open TC 520 periods.

  Note: If the closing code is 81 or 84 follow the instructions in the chart section for Closing Code 81 or the chart for Closing Code 84.

EIN / SSN listed is found on AIS without the N file source on an open bankruptcy case.

• Add the SSN to the TIN screen and select the correct file source (If MFT 17, 20, 28, 32, 50, 66, 74, 76, or 96, use N as the file source).

• Document AIS history and notate on listing action taken.

EIN / SSN listed is found on AIS without the N file source on an closed bankruptcy case.

• Reopen case.

• Add the SSN to the TIN screen and select the correct file source (If MFT 17, 20, 28, 32, 50, 66, 74, 76, or 96, use N as the file source).

• Assign case to CIO if Chapter 7A, 7N, or 13, if not already in CIO’s inventory. For all other Chapters assign to FI.

  Note: Instructions below for CIO and FI.

• Order NMF transcripts to verify actions taken on NMF.

• Ensure no stay violations have occurred, including discharge injunctions where post-petition refunds offset to dischargeable debts. If a violation is found, corrective action must be taken within two work days.

• If dismissed and NMF transcripts show no TC 521 input, prepareForm 3177, Notice of Action for Entry on Master File, requesting input of TC 521 on NMF.

• If discharged and NMF transcripts shows no TC 521 and balance due, make discharge determination
  If dischargeable, prepare Form 1331-B, Notice of Adjustment, (to adjust tax, penalty and/or interest).
  Prepare Form 3177, requesting input of TC 521 on NMF.

• If discharge and NMF transcripts shows no TC 521 and no balance due.
  Prepare Form 3177, requesting input of TC 521 on NMF.

• Document AIS history “LAMS Not on AIS Listing, unreversed TC 520 XX on MFT/TXYR and action taken” and notate on listing action taken.

EIN / SSN is not on AIS but found on PACER and the case been dismissed or discharged and there are no CSED issues (any periods that are less than 10 years old).

• Add case to AIS.

• Add the SSN to the TIN screen and select the correct file source (If MFT 17, 20, 28, 32, 50, 66, 74, 76, or 96, use N as the file source).

• Assign case to CIO if Chapter 7A, 7N, or 13, if not already in CIO’s inventory. For all other Chapters assign to FI.

  Note: Instructions below for CIO and FI

• Order NMF transcripts to verify actions taken on NMF.

• Ensure no stay violations have occurred, including discharge injunctions where post-petition refunds offset to dischargeable debts. If a violation is found corrective action must be taken within two work days.

• If dismissed and NMF transcripts show no TC 521 input, prepareForm 3177, Notice of Action for Entry on Master File, requesting input of TC 521 on NMF.

• If discharged and NMF transcripts shows no TC 521 and balance due, make discharge determination
  If dischargeable, prepare Form 1331-B, Notice of Adjustment, (to adjust tax, penalty and/or interest.)
  Prepare Form 3177, requesting input of TC 521 on NMF.

• If discharge and NMF transcripts show no TC 521 and no balance due.
  Prepare Form 3177, requesting input of TC 521 on NMF

• Document AIS history “LAMS Not on AIS Listing, unreversed TC 520 XX on MFT/TXYR and action taken” and notate on listing action taken.

EIN / SSN is not on AIS but found on PACER and the case been dismissed or discharged and there are CSED issues (any period that are 10 years old or older).

If DLN of TC 520 is other than 28 or 28 and posting is prior to cycle 2006,

• Notate listing with the case including court key, chapter, status, and state the taxpayer is located in.

• Refer to the CIO Technical Advisor

• FI review the case, if the CSED has expired, follow guidance in IRM 1.4.51.15.2, CSED Accounts. If the CSED has not expired, follow the procedures above.

• If DLN of TC 520 is 28 and CSED expired, consult your lead. If the lead agrees that the CSED expired, follow guidance in IRM 1.4.51.15.2, CSED Accounts. If the CSED has not expired, follow procedures above.

Taxpayer is deceased and date of death (DOD) is the same date as TC 520 date.

Notate the state where taxpayer lived and refer to lead for referral to CIO Technical Advisor.

Case is located on PACER and petition date matches TC 520 date.

If DLN of TC 520 is 28

• Check IDRS to see if return filed and if refund issued.

• If no balance due and refund issued to taxpayer, manually input TC 522.

• If return filed, refund is due but not issued.

• Add case to AIS.

• Input “TTEE RFND” in the classification screen.

• Prepare Form 5792 to trustee, input a 14 day follow-up on the AIS letter screen to monitor posting of TC 840.

• Document AIS history.

  • If return not filed.

  • Add case to AIS.

  • Input “TTEE RFND” in the classification screen.

  • Input a 180 day follow-up from the due date of the return.

  • Document AIS history.

If DLN of TC 520 is other than 28.

• Notate on list state where taxpayer lives.

• Refer to FI via lead.

• Do not add case to AIS, forward to CIO Technical Advisor.

You locate the case on PACER and the case is 7N that has been terminated and is not on AIS or has been closed on AIS or PACER.

IMF

• TC 520 on IMF account because the individual is an officer, partner, etc. of the business that filed bankruptcy. Refer case to FI. FI must determine if the TC 520 should have been input on the SSN.

• Document AIS history and notate on listing action taken.

EIN is Corporation

• Check to see if the modules with open TC 520(s) have a TC 530 closing code 07 or 10. If yes, input TC 521 with terminated date. If no, follow instructions in IRM 5.9.17.12, Closing Corporate Chapter 7 Bankruptcies and Chapter 7 Bankruptcies Filed by Limited Liability Companies (LLC’s).

EIN is Partnership

• Input TC 521 with terminated date.

You locate the case on PACER and the case is a 7N that has been terminated and it is open on AIS.

IMF

• TC 520 on IMF account because the individual is an officer, partner, etc. of the business that filed bankruptcy. Refer case to FI. FI must determine if the TC 520 should have been input on the SSN.

• Document AIS history and notate on listing action taken.

EIN is Corporation - Refer to IRM 5.9.17.12, Closing Corporate Chapter 7 Bankruptcies and Chapter 7 Bankruptcies Filed by Limited Liability Companies (LLC’s).

• Review Case Classification screen to determine if there is an open item requiring action prior to closing. Based on findings address classification issue or proceed with closure.

• If unresolved issues remain open, then case is kept open on IDRS and AIS for monitoring. Document history and do not take any further actions.

• If no issues remain open, input a TC 521 with a two cycle delay and a TC 530 cc 07 with jurisdiction code 3 on all unpaid modules.

• Document history to reflect actions taken.

• Input Closure Method of “Other Closing Action”.

• Input on AIS date with current date.

EIN is Partnership - Refer to IRM 5.9.17.11, Closing Chapter 7 or Liquidating Chapter 11 Partnerships

• Review Case Classification screen to determine if there is an open item requiring action prior to closing. Based on findings address classification issue or proceed with closure.

• If unresolved issues remain open then case is kept open on IDRS and AIS for monitoring. Document history and do not take any further action.

• If no issues remain open, a TC 521 must be input on all unpaid IDRS modules.

• Document history to reflect action taken.

• Input Closure Method of “Other Closing Action.

• Populate on AIS Field with current date.

You locate the case on PACER and the case is a 7A that has been terminated and is not on AIS or has been closed.

IMF

• TC 520 on IMF account because the individual is an officer, partner, etc. of the business that filed bankruptcy. Refer case to FI. FI must determine if the TC 520 should have been input on the SSN.

• Document AIS history and notate on listing action taken.

EIN is Corporation

• Check to see if the modules with open TC 520(s) have a TC 530 closing code 07 or 10. If yes, input TC 521 with terminated date. If no, follow instructions in IRM 5.9.17.12, Closing Corporate Chapter 7 Bankruptcies and Chapter 7 Bankruptcies Filed by Limited Liability Companies (LLC’s).

EIN is Partnership

• Input TC 521 with terminated date.

You locate the case on PACER and the case is a 7A that has been terminated and it is open on AIS.

IMF

• TC 520 on IMF account because the individual is an officer, partner, etc. of the business that filed bankruptcy. Refer case to FI. FI must determine if the TC 520 should have been input on the SSN.

• Document AIS history and notate on listing action taken.

EIN is Corporation

• Review AIS history to locate direction from FI caseworker. History should request the input TC 530 cc 07 and TC 521. The filing requirements may be requested to be closed. There should also be a history entry to reflect managerial approval of the TC 530 cc 07.

• Managerial approval documented, proceed with actions.

  Note: Use a 2 cycle delay for TC 521.

• No managerial approval present, reassign the case to FI. Update history to reflect no managerial approval for TC 530 cc 07.

EIN is Partnership

• Reassign to FI.

You cannot locate the case on PACER and the taxpayer is deceased and the date of death (DOD) is the same date as the TC 520.

Notate the state where taxpayer lived and refer to lead for referral to CIO Technical Advisor.

168-0

This condition occurs when an input TC 521/522 attempted to post to a TC 520 that has not previously posted.

See IRM 3.12.179.66, UPC 168 Reversal Transaction Fails to Find Original Related TC.

1) Close control base

• TC 520 has already been reversed. No other action needed.

171-4

This condition occurs when TC 520 cc 6X with a different transaction date attempts to post to an account with a posted TC 520 cc 6X.

See IRM 3.12.179.69.12 (7), Condition RC 4.

1. Close control base.

2. If the period is mirroring:

   • Chapter 7 & 13: refer to CIO for input of new TC 520.

   • Chapter 9, 11, & 12: monitor and manually re-input TC 520.

186-0

This condition occurs when a TC attempts to post to a module with M- freeze.

See IRM 3.12.179.83.1, UPC 186 Reason Code 0.

1. Close control base.

2. Chapter 7 & 13 refer to CIO for input of new TC 520.

   • Chapter 9, 11, 12, 15, Assignments and Receiverships, monitor and manually reinput new TC 520.

189-5

This condition occurs when a TC 971 AC 031, attempts to post to a module with a total balance that is zero or credit.

See IRM 3.12.179.86.8, UPC 189 Reason Code 2-6.

1) Close control base.

• The balance is abated. No other action is required.

192-0

This condition occurs when TC 520 attempts to post to an account which has a TC 520 already posted and closing codes are incompatible.

See IRM 3.12.179.91.1, UPC 192 Reason Code 0-1.

1. Close the control base.

2. Reverse the incompatible TC 520.

3. Use cycle delay to input new TC 520 or monitor for posting of unreversed TC 520 and input new TC 520.

194-2

This condition occurs when a TC 521 contains a transaction date prior to the transaction date of TC 520 being reversed.

See IRM 3.12.179.93.3, UPC 194 Reason Code 2.

1. Close control base.

2. Reinput TC 521 with correct date.

313-1

This condition occurs when an input TC 521/522 attempted to post to a TC 520 that has not previously posted.

See IRM 3.12.279.35, UPC 313 RC 1 No Related Transaction.

1. Close control base.

2. Input TC 520.

3. Use cycle delay to input new TC 521/522 or monitor for posting of TC 520 and input TC 521/522.

320-7

This condition occurs when a TC 520 with Closing Code 06X/083/085 and module contains an unreversed TC 520 with Closing Code 06X/ 083/085 other than the one input.

See IRM 3.12.279.43, UPC 320

1. Close the control base.

2. Reverse the compatible TC 520.

3. Use Cycle delay to input TC 520 or monitor for posting of reversed TC 520 and input new TC 520.

354-3

This condition occurs when a TC 971 ac 031 attempts to post.

See IRM 3.12.279.78, UPC 354 RC 1-9 TC 971 Attempts to Post.

1. Close control base.

   • The balance is abated. No other action is required.

ACTON, page down and enter to clear the row

Control Group Number, a comma, Activity Code, a comma, Case Status Code.

OR