3.17.46. Automated Non-Master File Accounting

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

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

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

3. Access all NMF actions relating to an established account through the Research screen using the taxpayer's primary key: taxpayer identification number (TIN), Master File Tax (MFT) and tax period.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(8) Priority for application of the credit created by the overpayment will be as follows:

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

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

(9) Refund Check Cancellations

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

(10) Undelivered Refund Checks

1. Refund checks are undeliverable by the Post Office at times. These checks are returned to the Disbursing Office which in turn prepares a Consolidated Listing of NMF Checks and a Form 1098, Schedule of Cancelled Checks, for cancellation. These documents are sent to the campuses. The Refund Inquiry function maintains a file of all Consolidated Listings.

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

(11) Certified Transcripts

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

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

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

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

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

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

(3) 26 U.S. Code 4081 - Imposition of tax

(4) 26 U.S. Code 5881 - Greenmail

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

(6) 26 U.S. Code 6201 - Assessment authority

(7) 26 U.S. Code 6204 - Supplemental assessments

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

(9) 26 U.S. Code 7804 - Other personnel

(1) The Submission Processing Director oversees the policies in this IRM and approves and authorizes the issuance of this Internal Management Document.

(2) The Accounting Operations Manager ensures that all guidelines are followed in all Accounting IRMs.

(3) The Non-Master File (NMF) Manager oversees the NMF team to ensure that guidelines in this IRM are followed.

(4) The NMF employees input to the ANMF system. They original entry (OE) and key verification (KV) all NMF assessments, input of all subsequent payments, research and issue of NMF notices, work the credit balance accounts, and all daily, weekly and monthly reports.

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

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

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

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

1. The manager must perform weekly Spot reviews of both incoming and outgoing work processed in the NMF function.

2. The manager must perform at least one program review each quarter.

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

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

(4) An Inventory Report must be submitted to the ANMF Headquarters Analyst on a weekly basis. This report must be submitted on the first business day of each week, and will include inventories for all NMF programs. The report will provide a beginning inventory for the weekly period, receipts and closures, and an ending inventory.

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

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

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

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

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

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

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

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

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

(5) Service officials and managers must communicate privacy and security standards to subordinate employees and establish methods to enforce them. Employees are responsible for taking required precautions in providing privacy and security for the documentation, information, and property which they handle in performing official duties.

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

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

(8) Sensitive But Unclassified (SBU) data including Personally Identifiable Information (PII) and tax information, must be protected with encryption and/or access controls, limiting access only to approved personnel with a need to know. Refer to IRM 10.5.1, Privacy and Information Protection, Privacy Policy for guidance on protecting and safeguarding the privacy of SBU data regardless of its format and when transmitting through email or Enterprise Electronic Fax (EEFax) system.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(16) DAILY ASSESSMENTS: An assessment which is prejournalized.

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

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

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

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

(21) DEPOSIT TICKET: The form the Deposit Function must prepare to deposit each day's balanced remittances.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(47) NON-MASTER FILE: Subsidiary records of taxpayer's accounts which are not established and maintained on one of the Master Files.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(66) SUBSEQUENT PAYMENT: A payment received for an account that is assessed and the taxpayer billed.

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

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

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

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

(71) TAXPAYER DELINQUENT ACCOUNT (TDA): Accounts that are not full paid 6 weeks after the 4th notice issuance date. Accounts are automatically assigned to Field Collections upon establishment on IDRS.

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

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

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

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

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

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

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

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

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

• Course 2415-001 (ITM 10740), Non-Master File Processing Student Guide.

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

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

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

• IRM 2.4.9, Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG

• IRM 2.4.11, Command Code NMFTM

• IRM 2.4.14, Command Code NMFST

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

• IRM 20.1, Penalty Handbook

• IRM 20.2, Interest

• IRM 21.4, Refund Inquiries

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

• IRM 25.23, Identity Protection and Victim Assistance

• IRM 25.6, Statute of Limitations

• IRM 3.11.25, Miscellaneous Tax Returns

• IRM 3.17.21, Credit and Account Transfers

• IRM 3.17.30, SC Data Controls

• IRM 3.17.41, Accounting and Operating Reports

• IRM 3.17.63, Redesigned Revenue Accounting Control System

• IRM 3.17.64, Accounting Control General Ledger Policies and Procedures

• IRM 3.17.79, Accounting Refund Transactions

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

• IRM 3.17.243, Miscellaneous Accounting

• IRM 3.17.244, Manual Assessments

• IRM 3.24.37, General Instructions

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

• IRM 4.4, AIMS Procedures and Processing Instructions

• IRM 8.20, Account and Processing Support

• IRM 10.5.4, Incident Management Program

• IRM 13, Taxpayer Advocate Service

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

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

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

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

(3) The ANMF SC RECAP summarizes the data on the NMF or RACS Recaps and records it into the proper RACS Line Number which is linked to the various General Ledger Accounts within the RACS database. A file is sent to the Detroit Computing Center (DCC) for internal or batch journalization via RACS which occurs two-days after input to ANMF. For instance, if Friday is the day of input to ANMF, the ANMF SC RECAP is printed on Monday, then RACS will journal on Tuesday. See Exhibit 3.17.46-8.

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

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

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

(1) RACS will receive blocks of documents and prepare the Form 813 if one is not present. Each document must have a Document Locator Number (DLN). All debits and credits must be listed on the Form 813.

(2) When completing the Form 813, stamp Part 1 with the ANMF processing stamp and initial it when the function is performed. Annotate the Form 813 with the journal number, 23C date and NMF status if the Form 813 contains pre-journalized items. If the Form 813 contains post journalized items, this information will be included on the various RACS Recaps and will be annotated on Form 813 at the time RACS receives the Recap. See IRM 3.17.46.5.4 (4) and (5) for further information.

(3) Choose the option Add Block Control from the Processing menu. Input the following information to the Form 813 Block Control screen: See IRM 3.17.46.13.4 for entry information.

• Form 813 date as transaction date

• Form 813 DLN

• Item count

• Total debit

• Total credit

(4) Initial the ANMF stamp for "813" after adding the Form 813 Block Control screen entries.

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

(6) Send the Form 813 and related documents to NMF for further processing.

(1) Pre-journalized items include all daily assessments, embezzlement cases, adjustments (ADJs), Revenue Procedures (Rev. Proc.) and closing agreements. See IRM 3.17.46.5.1 for further information.

(2) Input pre-journalized assessments through the Daily Assessment screens. The window will show the 23C date based on the current date and cannot be overlaid.

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

• 23C date

• Journal clerk's initials

• Journal number

• NMF status

(1) Post-journalized items include all weekly assessments and all other subsequent transactions including payments which are not determined as advanced payments. See IRM 3.17.46.5.2 for further information.

(2) Input post-journalized assessments through the Weekly Assessments screen. The window will show a 23C date that cannot be overlaid.

(3) Any post-journalized action taken on ANMF (i.e., assessment, status change, subsequent transaction, account transfer-out, etc.) will generate a RACS Recap. Print two copies of the RACS Recaps, one copy is attached to the documents and retained in NMF. Maintain copy two of NMF or RACS Recaps as a clean copy for official file and association with the ANMF SC RECAP.

(4) The ANMF SC RECAP summarizes the data on the NMF or RACS Recaps. Complete the following steps:

1. Print 3 copies.

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

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

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

5. Route to RACS DBA for batch journalization.

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

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

8. Maintain for official file and audit trail.

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

The following actions are required:

1. Print 3 copies.

2. Do not send to RACS.

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

4. Research the DLN via ANMF.

5. Pull the related NMF Recap for the DLN.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(7) Designated RACS Accounting Technicians will:

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

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

3. Input to the UPDATE JRN'L screen from the Transmittal Recap for the Recap of Journaled RACS Summaries - 142 Journal is for Assessments and 141 Journal for all else.

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

(9) RACS will journal all assessments to conform with the 23C date indicated on each Recap. This is the month the transaction posted to the taxpayer account.

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

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

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

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

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

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



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

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

• Month end processing

• Notice issuance on weekends and holidays

• Expedite cases

• Workload inventories

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

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

(3) RACS will certify expedite assessments and immediately prepare the Summary Record of Assessment.

(4) Each block of assessment documents will have a Form 813. Annotate the Form 813 with the following:

• 23C Date

• Journal Number

• Journal clerk's initials

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

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

(1) The following instructions pertain to existing NMF accounts on the ANMF System.

(2) Form 1331/ Form 1331B, Notice of Adjustment (posting copy), will be the posting document for the abatement. The following documentation is required:

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

   Note: If the original document cannot be obtained, prepare a dummy document with documentation that the original cannot be located. If the original assessment is on ANMF, attach a copy of the Taxpayer correspondence, or other source document which supports the abatement.

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

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

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

(3) List the full amount of the overassessment as an abatement on both the Form 1331/ Form 1331B and overassessment label. If the abatement credit exceeds the balance of the account, enter the disposition of the credit in the correct portion of Section II of the Form 1331/ Form 1331B.

(4) List Form 1331/ Form 1331B on Form 813. List the Form 3753, or Form 5792 on separate Form 813.

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

(6) The refund amount will be scheduled on Form 1166, Refund Schedule. Attach copies of the refund document to the Form 1166 and to the Form 2188.

(7) Attach Part 2 of Form 1331/ Form 1331B and the supporting documentation to the original assessment document and send to RACS for input to the Form 813 Block Control screen. Part 1 of Form 1331/ Form 1331B goes to the taxpayer.

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

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

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

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

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

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

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

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

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

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

(4) Exceptions to the preceding are—

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

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

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

(5) If a remittance that should be processed to a Master File account is identified as improperly numbered in an NMF block:

1. Prepare Forms 813 listing each remittance amount.

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

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

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

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

1. Prepare Forms 813 listing each remittance amount.

2. Renumber the document in the proper NMF series.

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

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

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

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

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

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

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

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

Note: Items which require special manual compilation are identified in other sections of this manual.

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

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

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

(1) General—This section provides instructions for processing non-rebate erroneous abatement cases in which Master File computer programming prevents the reversal of abatement transactions after the Statute of Limitations for Assessment has expired. These cases are limited to situations in which an erroneous abatement occurred due to a clerical error that served to reduce the tax liability of that account or another account, a bankruptcy discharge, or an unauthorized abatement that occurred after referral to the Department of Justice. See IRM 25.6.1.10.2.1.1, Reversal of Erroneous Abatement. The IRS will treat the account as any other account where the original tax liability is unpaid. Refer to IRM 3.17.243.3, Reversal of Erroneous Abatements, for additional background information and Credit and Account Transfer procedures.

(2) The Manual Refund Team will receive the Form 3465 package and:

1. Have a DLN assigned to the Form 3465.

2. Use doc. code 54.

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

4. Prepare Form 813.

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

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

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

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

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

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

(4) Process the Form 514-B for the account transfer from MF following normal Transfer-in procedures. See IRM 3.17.46.6.16.

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

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

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

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

5. Establish the account in Status 89.

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

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

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

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

1. Transaction Code 860.

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

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

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

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

1. Request a transcript of the NMF account.

2. Photocopy the Form 3465.

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

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

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

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

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

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

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

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

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

(10) Send the Form 3465 with Form 813 to Returns Files after the month end balancing.

(11) Process payments received on the TC 860 accounts as normal NMF subsequent transactions.

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

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

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

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

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

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

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

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

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

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

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

(7) See IRM 3.17.46.9 to establish TDA via IDRS.

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

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

(3) Upon receipt of the various NMF Recaps, complete items (a), Abstract Number and Amount, on the NMF Block Summary of Form 813 for all taxable blocks. See IRM 3.17.46.3.7, NMF Service Center Control File: Abstracting

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

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

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

(3) Requests for original assessments will normally be received on:

• Action memorandum based on a court order

• Various NMF returns

• Form 1296, Assessment Against Transferee of Fiduciary

• Form 2644, Recommendation for Jeopardy/Termination Assessment

• Form 2749, Request for Trust Fund Recovery Penalty Assessment

• Form 2859, Request of Quick or Prompt Assessment

• Form 4881, Chapter 42 Taxes-Disqualified Person/Foundation Manager

• Form 5344, Examination Closing Record

• Form 5403, Appeals Closing Record

• Form 5599, TE/GE Examined Closing Record

• Form 5650, EP Examined Closing Record

• Form 5734, NMF Assessment Voucher

• Form 8278, Assessment and Abatement of Miscellaneous Civil Penalties

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

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

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

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

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

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

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

1. Assess for the full amounts.

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

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

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

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

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

(1) Print the NMF Cycle Proof List (CPL) at the beginning of each month. It lists all the blocks of documents that processed during the preceding month.

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

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

(2) Route the CPL and associated documents to Files when monthly balancing is completed.

1. Files will check off each item on the CPL to verify receipt of each block of documents.

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

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

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

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

(3) Code and Edit will flag delinquent NMF returns and send to the Statute Unit for statute clearance.

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

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

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

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

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

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

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

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

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

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

(4) Hold the account in status 89 for the length of time the individual is in the combat zone or hazardous duty area plus 180-days.

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

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

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

(6) Routine notice/TDA issuance will resume once the TC 502 posts to the account, however, the generated notice/TDA will not include accruals. An associated "DS500" transcript will also be generated at the time a notice/TDA is generated. This transcript is to be used to assist in the computation of accruals which must then be typed onto the "entity only" notice. No interest or penalty is charged for the length of time the taxpayer is in the combat zone or hazardous duty area, plus 180-days. See IRM 20.2.7.11 IRC 7508, Combat Zone, for exact period for not charging interest when a taxpayer is in a combat zone.

(1) Daily assessments are made to protect the assessment from being barred by the statute of limitations or to expedite the collection process. These assessments are made through the Daily Assessment option from the Processing menu of the ANMF System to generate Form 6335, NMF First Notice.

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

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

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

(3) RACS will send the Form 813 and the related documents to NMF for input to the ANMF System through the Daily Assessment option from the Processing menu.

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

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

• Name, address, and Taxpayer Identification Number

• Type of tax and taxable period

• Assessment statute expiration date (ASED)

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

• Amounts of payments, if any, and balance due

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

• Correct abstract number

• Transaction codes

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

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

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

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

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

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

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

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

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

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

(3) RACS will send Form 813 and the related documents to NMF.

(4) NMF will input the assessment to the ANMF System through the Weekly Assessment option from the Processing menu .

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

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

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

(6) NMF will send the Recap(s) to RACS for journalization. The related Form 813 will be associated, and the reverse side worked as instructed in IRM 3.17.46.3.4, Collection Statute Expired Processing. This will only occur if manual journalization is required. See IRM 3.17.46.3.4 (4) for the ANMF SC RECAP procedures.

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

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

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

4. NMF will retain a copy of the Recap in journal number order.

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

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

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

2. Unprocessed Block list—is printed by the DBA weekly. This listing is generated when the controlling information from a Form 813 is set-up on the Form 813 Block Control, but the related documents not input. Management will use this listing to ensure proper workflow between the NMF and RACS functions.

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

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

(1) Many actions taken on the ANMF System (i.e., weekly assessments, status changes, subsequent transactions, etc.) will generate a Recap. The DBA prints two copies of the RACS Recaps. Keep one copy with the documents in NMF. Send one copy to RACS and after journalization is stamped with the journal number and returned to NMF and held for balancing purposes.

(2) Recaps generate daily. Associate each recap with the posting or assessment documents by DLN and review to verify that the item count and money amount is correct. Associate and send a copy of the corresponding Forms 813, RACS Recaps and Transmittal Recap of RACS Summaries to RACS for journalization. Form 813 will be kept with the documents when partial block closures occur. The Recap and the posting documents are held in NMF until the NMF monthly balancing is completed. At that time, they are associated with Form 813, verified on the Cycle Proof Listing and sent to Returns Files.

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

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

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

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

4. Associate all Forms 813 with two copies of RACS Recap and forward to RACS for journalization.

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

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

1. Item count.

2. Dollar amount total of Form 813.

3. "P" with the posted item count.

4. Total posted dollar amount.

5. Recap summary number.

6. Make a copy of the annotated Form 813.

7. Associate the copy of Form 813 with the Recaps and forward to RACS for journalization.

8. Associate Form 813 and the Recap with the posting documents and hold in NMF until final resolution of the partial.

(5) After final resolution of the partial, complete the following for the Form 813:

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

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

3. Total money amount posted from the Recap.

4. Recap summary number.

5. "CLOSED" and the date closed on the Form 813.

6. Associate Form 813 and a copy of the Recap with the documents for Returns Files.

7. Associate Form 813 with two copies of the Recap and forward to RACS for journalization.

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

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

1. Notate an "N" with the nullified item count on the Form 813.

2. Notate the Total nullified money amount on the Form 813.

3. Notate the Date of the nullified list (because the NMF Nullified Unpostable list has no summary number) on the Form 813.

4. Highlight the nullified items.

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

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

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

2. Make a copy of the closed Form 813 and attach the nullified documents.

3. Prepare Form 2275 and notate in the remarks section "permanent charge-out—documents nullified from NMF processing" for the posting documents removed from the document folder. Annotate the refile DLN if known.

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

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

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

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

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

2. Make a copy of the closed Form 813 and attach the nullified document(s).

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

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

1. Make a copy of the Form 813 and attach the nullified document(s).

2. Prepare Form 2275 and notate in the remarks section "permanent charge-out—documents nullified from NMF processing".

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

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

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

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

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

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

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

3. Total posted money amount for the Recap.

4. Recap summary number.

5. Make a copy of the annotated Form 813.

6. Associate the copy of Form 813 with two copies of the Recap and forward to RACS for journalization.

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

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

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

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

3. List the DLN of the original Form 813.

4. List the updated item count.

5. List the updated DR and CR amount.

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

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

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

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

(3) Prior to NMF assessment, the embezzled amount is journaled to the 7610 Account and a letter of notice and demand sent.

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

• Tax Class 6

• Doc. Code 54

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

• MFT 20

• Abstract Number 004

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

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

(7) NMF will establish an account for the assessment on the ANMF system through the Daily Assessment option from the Processing menu. Field entries unique to these assessments are as follows:

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

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

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

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

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

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

(9) Notify the 7610 Coordinator of the TDA issuance so a memo explaining procedures can be sent CSCO.

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

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

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

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

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

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

(4) RACS will send the Form 813 and the assessment documents to NMF for processing.

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

(6) NMF will input CVPN into the Form field.

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

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

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

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

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

(2) Form 1040 is numbered as follows:

• Tax Class 6

• Doc. Code 10

• Blocking Series: 000–099 non-remittance

• MFT 20

• Abstract Number 004

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

(4) NMF will establish an account on the ANMF system through the Load Old Accts/Transfer-In option from the Processing menu.

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

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

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

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

3. TC 971 action code (AC) 502 using REQ77 to indicate a case of $1 billion or more on NMF.

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

• Tax Class 6

• Doc. Code 54

• Blocking Series: 000–999

• MFT 20

• Abstract Number 004

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

(9) Balance Due – The taxpayer usually remits estimated payments and/or may have a credit elect on the Master File prior to filing the tax return. Master File will cause an Unpostable Condition when a payment/credit results in the total balance of $1 billion or greater. Rejects will notify Accounting to move the payment/ credit to the NMF Unapplied Advance Payments Account 4610. Upon notification, the NMF Account Specialist must transfer all payments/credits via Form 2424 or Form 3809 from the Master File module to Account 4610 pending the filing of the tax return.

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

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

3. Standard billing applies for any remaining balance due.

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

Kansas City Submission Processing Center (KCSPC)

Attn: SOI Edit Unit, Stop 6130

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

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

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

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

1. NMF will establish the account in Status 89.

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

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

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

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

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

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

8. Related payments are posted to the account using the Enter Sub Pays option from the Processing menu.

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

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

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

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

(7) The closing agreement (first document) is numbered as follows:

• Tax Class 6

• Doc. Code 54

• Blocking Series 400–434

• Abstract Number 139

• MFT 28

(8) The Form 3244A (second document) is numbered as follows:

• Tax Class 6

• Doc. Code 27

• Blocking Series 400–434

• Abstract Number 139

• MFT 28

(9) Closing Agreements received without payments are billed according to instructions received with the agreement. They are numbered as follows:

• Tax Class 6

• Doc. Code 54

• Blocking Series 400–410

• Abstract Number 139

• MFT 28

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

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

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

• Tax Class—6

• Doc. Code—47

• Blocking Series—400–404, 410–414

• MFT—45

• Abstract Number—060, 062, 069

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

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

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

1. Input a "P" for Prompt assessment;

2. Input a "Q" for Quick assessment;

3. Input a "R" for Regular assessment;

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

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

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

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

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

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

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

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

(11) Standard subsequent notice and TDA billing will apply.

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

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

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

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

4. RACS will forward Form 813 and documents to NMF for input of the TC 530 to the account through the Enter Sub Pays option from the Processing menu.

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

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

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

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

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

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

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

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

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

(1) Effective January 1, 1998 all credit elects are posted to the ANMF Database.

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

2. If the credit elect is for a $1 billion or over IMF account that must be processed on the ANMF Database, and the credit elect is under $1 billion the credit elect should be moved to the Master File for the next tax period.

(1) Remit and No-Remit Extensions of Time to File are numbered with the doc. code of the return the extension applies to and sent to Code and Edit for approval.

(2) The Code and Edit function will send approved and disapproved extensions to RACS journalization.

(3) No-Remit Extensions:

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

2. In addition to the general information, enter No-Remit into the Cross-Reference field.

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

(4) Remit Extensions:

1. Remit Extensions are processed as Full Paid returns.

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

3. NMF will establish the account through the Weekly Assessment option from the Processing menu. Input "Extension" in the Cross-Reference field. NMF will then input transaction code 150 for the amount of the payment. A subsequent transaction is processed as a transaction code 670 for the amount of the remittance.

4. A RECAP will generate and sent to RACS for journalization.

(5) When NMF receives the related return , the DBA must make a DBA Correction to change the tax period ending of the extension account to a Dummy period.

1. If the return is determined to be a Full Paid based on the remittance received with the extension, NMF will establish an account through the Weekly Assessment option from the Processing menu.

2. NMF will then input a transaction code 150 with a zero-money amount into the transaction screen to record fact of filing.

(6) If additional tax, penalty, and interest is due, NMF will establish an account for the additional assessment amount over the extension assessment amount through the Weekly Assessment option from the Processing menu.

(7) If the tax on the return is less than the extension, then NMF will:

1. Establish the account through the Weekly Assessment option from the Processing menu.

2. Give the return to the NMF Specialist for abatement action of the "extension" account using Form 1331B.

3. Transfer full payment amount on the "extension" account to the related return via Form 2424.

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

4. Follow procedures in IRM 3.17.46.11.4, Credit Balances - Refund Returns, for disposition of any credit balance remaining on the account.

(1) IRC 1362(f)(4) allows the IRS to enter into an agreement, via a Private Letter Ruling (PLR), hereafter referred to as "Ruling Letter", with certain S Corporations to waive the termination of their S election. The Ruling Letter is sent by email from the Headquarters to the Kansas City Submission Processing Campus along with a memorandum.

(2) Use the Ruling Letter as the authority for assessment and as a substitute return.

(3) The intent of the agreement is to establish an account on the ANMF System that will allow the taxpayer to make one payment of the full amount by a designated due date assigned by Chief Counsel, without computing accruals or generating billing notices. The attorney sends the Ruling Letter to the taxpayer at the same time a copy is emailed to the Kansas City Submission Processing Campus for assessment. The Ruling Letter also provides the taxpayer with the address of the Kansas City Campus for purposes of sending the payment for processing.

(4) Although the adjustment covers multiple tax years, only one NMF account is established for each Ruling Letter, assessing the full amount stated in the letter using a Transaction Code 290.

(5) These assessments are numbered as follows:

• Tax Class 6

• Doc. Code 54

• Blocking Series 000–999

• MFT 31

• Abstract Number 006

(6) RACS will pre-journal the assessment and will input the Form 813 information into the Block Control screen.

(7) RACS will send the Form 813 and assessment document to NMF for processing.

(8) NMF will establish the account onto the ANMF system using the Daily Assessment option from the Processing menu. Field entries unique to these assessments are as follows:

• Notice Type—1

• Assessment Type—Q

• Statement Code—4

• 23C Date—the current date

• Periods Assessed—include all periods assessed as shown on the memorandum for Director of Customer Account Services

• Period Ending—use the date shown in the upper right-hand side of the "Legend" page of the Ruling Letter as the Actual Period Ending

Note: The "Legend" is the first page of the Ruling Letter and states "Legend" in the center of the page.

• NMF Status—21

• Exception Code—M

  Note: Exception Code "M" will prohibit the generation of notices and update of penalty and interest computations to ANMF.

• Cross-Reference—input "Ruling Letter per IRC 1362(f)(4)", "hold notices". Also include the Chief Counsel contact name, telephone number and PLR Control number located in the upper right of the Legend page of the Ruling Letter.

(9) On the following day, after the account has posted to the database, prepare and number a Form 3177 to input a TC 470 closing code 90 as a subsequent transaction. This will suspend notice issuance until the taxpayer has made full payment.

(10) Care must be taken to ensure that a Penalty and Interest notice is not mailed to the taxpayer if generated. This is a one-time payment where NO penalty or interest should accrue or be assessed.

(11) After 90-days have elapsed, an Accounts Maintenance transcript is generated and used to review the account. If the full payment is not received and applied, the account and Ruling Letter should be reviewed to determine when the payment is due. If the payment is past due contact the ANMF Analyst in Headquarters for further action.

(1) A one-time project for Form 1120 FSC processing returns and payments occurred prior to 1990 which may have not posted to the BMF or NMF. The NMF Unit in the Kansas City Submission Processing Campus keeps a listing of these documents for research purposes. Contact the NMF Team Manager for research of the listing.

(1) A termination assessment occurs when a field officer determines that unusual and perhaps illegal means were used to acquire certain goods or cash. Most requests are received by fax and are used to abruptly terminate the taxpayer's tax year. This results in a short period return which is processed as an NMF return. See IRM 3.17.46.5.1, Daily Assessments.

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

(3) RACS will send the Form 813 and the assessment documents to NMF for processing.

(4) NMF will establish the assessment (account) by input through the Daily Assessment option from the Processing menu which will generate Form 6335 (1st notice). Field entries unique to this assessment are as follows:

1. Input a "Z" in the Notice Type field to produce the Form 6335 and an accelerated TDA.

2. Input a "J" in the Assessment Type field to indicate a termination assessment.

3. Input a "4" in the NMF statement field to produce the NMF standard statement.

4. Depending on the type of assessment involved, type either "Termination" or "Jeopardy" on the first line of the cross-reference field.

(5) When generated, use the TDA transcript as the source document to establish the account on IDRS and distribute the Form 6335 as follows:

1. Send two copies of the notice to CSCO, via Form 3210, Document Transmittal.

2. Send one copy of the notice to the Campus Examination Branch, via Form 3210.

3. Retain Form 3210 for one (1) year and then destroy as required in Document 12990, Records Control Schedules.

(6) Hold the telephone assessment document until the Form 2644 with the supporting documents are received from the area office. When received, associate with the original telephone document used to make the assessment.

(7) Send assessment documents to Returns Files after NMF processing is completed.

(1) The American Jobs Creation of 2004 provides the IRS with the authority to impose a monetary penalty against any representative that practices before the IRS for certain conduct. Before the 2004 Act, there was only the authority to suspend or disbar a practitioner from practice before the IRS. This monetary penalty is processed under Title 31 U.S.C. 330 and should be a minimal volume.

(2) Title 31 Monetary Penalty cases are exclusively handled by the Office of Professional Responsibility (OPR). OPR is also responsible for:

1. Collection activity

2. Interest calculation for assessment

3. Notice issuance

4. ANMF account history section update

(3) OPR will enter into a Settlement Agreement (similar to a closing agreement) with the individual practitioner, firm, or entity. Headquarters will send the Settlement Agreement to the Kansas City Submission Processing Campus via memorandum. Use the Settlement Agreement as authority for assessment and a substitute return.

(4) The assessment is made as an Excise Tax using TC 240.

(5) The tax period should always be the year and month that the Director of OPR or his/her designee signed the agreement. For example, January 31, 2011 (date) would be 201101.

(6) Proper journalization is necessary to ensure the integrity and balancing of the RACS and ANMF systems. RACS will pre-journalize the initial assessment for the entire amount to Account 1300 Status 89. RACS will send the package to ANMF to establish an account through the Load Acct/Transfer screen.

1. NMF will establish the account in Status 89.

2. Input "Title 31" into the Form field.

3. Input the phrase "Title 31 Monetary Penalty" into the Cross-Reference field of the entity.

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

5. Input "M" in the Exception Code field to prevent generation of notices and update of penalty and interest computation to ANMF.

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

   Note: ANMF will bypass the systemic reversal of TC 470.

7. Post related payments to the account using the Enter Sub Pays option from the Processing menu.

8. After the account is established, send the Settlement Agreement or Final IRS Decision to Cycle Control for filing under the DLN assigned.

(7) Settlement Agreements or Final IRS Decisions received with full paid or partial remittances are processed as two documents. The first document (Settlement Agreement or Final IRS Decision) will establish the assessment on the ANMF system, and the second document (Form 3244-A) will post the payment. Monitor the account to ensure the payment posts immediately after the assessment is established to ensure correct billing to the taxpayer by OPR.

(8) The Settlement Agreement or Final IRS Decision (first document) is numbered as follows:

• Tax Class 6

• MFT 28

• Doc. Code 54

• Blocking Series 435-440

• Abstract Number 147

• Penalty Reference Number (PRN) 779

(9) The Form 3244-A (second document) is numbered as follows:

• Tax Class 6

• MFT 28

• Doc. Code 27

• Blocking Series 435-440

• Abstract Number 147

(10) Settlement Agreements or Final IRS Decisions received without payments are billed by OPR. Payment is sent to OPR who will then overnight express to the Deposit Unit in Kansas City.

(11) OPR will calculate the interest and prepare Form 3465 for assessment. OPR will fax or send Form 3465 to the attention of the NMF Manager in the Kansas City Submission Processing Campus.

(1) When the liability of an account is transferred from one TIN (transferor) to another (transferee) this transfer of liability is processed and the account is maintained in NMF. Most requests are received on Form 1296, Assessment Against Transferee or Fiduciary, or Form 2859, from the Examination Division. A "Linked Account" is added to identify duplicate assessments. See IRM 3.17.46.13.8, Linked Accounts.

1. RACS will receive the Form 1296 and Form 2859 with Form 813.

2. RACS will input the Form 813 information through the Form 813 Block Control screen and forward Form 813 and the documents to NMF for processing.

(2) NMF will establish an account on the ANMF System through the Daily Assessment option from the Processing menu.

1. Input a "Z" into the Notice Type field to generate a TDA together with the Form 6335 (immediate TDA).

2. Input the Transferor information into the Cross-Reference field.

3. Input the statement "Failure to Pay Penalty does not apply."

4. Input a "P" into the Exception Code field to stop the systemic computation of penalty accruals for these accounts.

(3) Once the Form 6335 is generated, NMF will input the account to IDRS using the account transcript as the source document.

(4) Mail Form 6335 to the taxpayer, send a copy of Form 6335 to the Examination function and to CSCO.

(1) Any Form 2749 request received for Trust Fund Recovery Penalty assessment, Reference Code 618, with an Employer Identification Number (EIN) is processed through NMF. Requests received for Trust Fund Recovery Penalty assessments with an SSN are not processed through NMF but are processed as MFT 55 to the IMF Civil Penalty Module through IDRS. A "Linked Account" field is added to identify Duplicate Assessments. See IRM 3.17.46.13.8, Linked Accounts.

(2) The Form 2749 for NMF Trust Fund Recovery Penalties is numbered as follows:

• Tax Class—6

• Doc. Code—54

• Blocking series—190–198

• MFT—17 (Form 941) 19 (Form 943) 45 (Form 720) 12 (Form 1042) 71 (Form CT–1)

• Abstract number—001

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

(4) NMF will receive the Form 813 and assessment documents from RACS. NMF will establish the assessment (account) by input through the Daily Assessment option from the Processing menu which will generate the first notice (Form 6335).

(5) Field entries unique to this assessment are as follows:

1. Input a "T" in the Notice Type field to produce the Trust Fund Recovery Penalty first notice and accelerate to TDA status.

2. Determine the type of assessment. The assessment type will be indicated on Form 2749 and the codes for the Assessment Type field are below:

3. Input a "P" for Prompt assessment

4. Input a "Q" for Quick assessment

5. Input a "R" for Regular assessment

6. Input a "1" in the NMF Statement Code field to produce the Trust Fund Recovery Penalty statement on the first notice and to generate Trust Fund Recovery Penalty in the Type of Tax Assessed Description field

7. Input the name of the corporation and the CLC assignment codes to the Cross-Reference field

8. Input the names of the related responsible persons and corporation name in the Cross-Reference field. If the corporation name is not present on Form 2749, contact the originating Compliance function

(6) Distribution for Quick, Prompt and Jeopardy assessments: 2 copies of Form 6335 will be routed to the proper Area Office via Form 3210. For all regular assessments mail 2 copies of Form 6335 to the taxpayer. In both situations, send Form 6335 part 3 to the originator.

1. Form 2749, part 1, is kept as the assessment document. If part 2 is present, send it to the proper Area Office, Special Procedures function.

2. If Form 433A, Collection Information Statement for Wage Earners and Self-Employed Individuals, or levy sources are attached to Form 2749, part 1, forward to CSCO. Send a photocopy of the related Form 6335 to the originating Area Office to the attention of Chief, Special Procedures function.

(7) Establish the account on IDRS using the generated NMF account transcript as the source document.

(8) Send part 1 of Form 2749 and Form 813 to Returns Files after NMF monthly balancing is completed.

(9) A Transcript of a Trust Fund Recovery Penalty account will be generated for distribution to BSC (Brookhaven Service Center) or OSC (Ogden Service Center) CSCO each time payments, credits, abatements or other transactions are posted to the account. Determine distribution of transcripts using the chart below.

(10) When Collection requests transfer of an account because of TDA transfer, refer to IRM 3.17.46.9, Establishing and Updating NMF TDA Accounts on IDRS, for establishing NMF TDA accounts on IDRS.

(11) Accelerate Trust Fund Recovery penalty to TDA status immediately.

1. The NMF TDA IDRS file will accept only the first 4-digits of the TDA/TDI Assignment Code. The TDA should reflect the 4-digit assignment code of the area where the taxpayer lives. When IDRS reflects the account, the 4-digit assignment code will show. Collection will reassign the TDA to its full 8-digit TDA/TDI Assignment Code.

2. When the account is input to IDRS enter information about other related persons from Form 2749 on the 3rd and 4th name lines of the screen display. Include:

3. Last name, first initial

4. TIN

5. State abbreviation of where the related person lives.

   Note: Do not enter TINs or account types into the second name line address field of IDRS-NMFTM.

(12) The responsibility for input of a TC 130 on all Trust Fund Recovery penalty cases lies with the Collection Division. Accounting will not input a TC 130 for these cases.

(13) Special Procedures Function (or) in the area that controls the case has the responsibility for initiating the approving abatements and refunds on Trust Fund Recovery Penalty accounts.

(14) Occasionally, the Revenue Officer requesting the assessment will know that the assessment will be uncollectible. Form 53, Notice of Currently Not Collectible Status, will be received along with the request for assessment, Form 2749.

1. Input the assessment through the Original Assessment screen and mail the first notice, Form 6335 to the taxpayer.

2. Do not establish the account on IDRS.

3. Forward Form 53, Report of Currently Not Collectable Taxes, to the numbering function for numbering and preparation of Form 813. If signature of originator and/or signature of manager is missing reject to the originator or Area Office.

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

5. RACS will send Form 813 and documents to NMF for input of the TC 530 to the account through the Enter Sub Pays option from the Processing menu.

6. Prepare Form 1725 Routing Slip and notate "pre-assessment 53, no TDA issued". Attach it to Form 2749. Route a copy of Form 6335 and Form 2749 (parts 2, 3, and 4) to the proper Compliance function in the originating Area Office.

7. Send part 1 of Form 2749 and Form 813 to Returns Files after NMF monthly balancing is completed.

(1) The Transfer function will prepare Form 514-B from the Master File and prepare Form 813 to process as follows:

1. Assign a DLN with a doc. code of 51.

2. Determine the correct NMF status and annotate it and the date on the left margin of the Form 514-B. For Status 21 (First Notice), enter 23C date. On Status 20, 56, 58 and 22 (TDA), include the 23C date and all other notice issuance dates.

3. Prepare a Form 1725, Routing Slip, to route the Form 514-B to NMF. Include the NMF status on Form 1725 for easy identification for NMF to load the account onto the system in the correct status.

(2) The NMF function will load the new account onto the ANMF System through the Load Old ACCTS/TRANSFER-IN screen. Enter the Notice Type field as follows:

• Prepare for correction—blank.

• IMF/BMF Overflow—blank.

• Transfer from another center—R.

• Reverse erroneous abatements—blank.

(3) Enter the Cross-Reference information as follows:

1. Enter the NMF status and dates from the Form 514-B.

2. Enter the Notice Type explanation in the Cross-Reference field (overflow, reverse erroneous abatements, etc.).

3. Enter the original DLN into the Cross-Reference field.

(4) The ANMF system allows for only one 23C date per account. It is extremely important to ensure that the transfer function has picked-up the correct 23C date for establishment on NMF if the account carries multiple assessments with multiple 23C dates.

1. As a general rule, the most current 23C date should be used to establish the NMF account.

2. If the account contains more than one assessment and all but one assessment is satisfied (by at least nine-months), use the 23C date of the remaining balance due assessment. If this is the case, establishing separate accounts is not required.

3. If the account contains more than one assessment and more than one of the indicated assessments remain as balance due, establish a separate NMF account for each balance due assessment taking care that the correct 23C date for each separate assessment is used.

4. If the account contains more than one assessment and there is an unreversed TC 534 the account will need to be split to establish separate NMF accounts for each assessment taking care that the correct 23C date for each separate assessment is used.

5. The originator requesting the transfer of a Master File account to NMF should be responsible for determining the correct 23C Date of all assessment transactions, especially those that may suspend the Assessment or Collection Statute Expiration Dates (ASED, CSED).

6. If errors are detected, request assistance from the NMF Account Specialist in determining the correct CSED. Based on the complexity of the account, it may be necessary to refer the case back to the Credit and Account Transfer technician for immediate resolution in accordance with IRM 3.17.21, Credit and Account Transfer.

7. If it is determined that the CSED is incorrect, then the originator should prepare Form 3177 or input Transaction Code 550 via IDRS for subsequent posting to the ANMF. Only posted TC 550 transactions on the MF account are transferred to ANMF.

Note: Effective January 1, 2001, IMF split accounts will post to the Individual Master File to MFT 31. If there is a problem with the CSED, then the originator or Collection function can input the TC 550 via IDRS.

8. If the account is a transfer from the Master File, ensure that the Transfer function has correctly converted the transaction codes as described in IRM 3.17.46.6.16.1

9. If the balance due is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ prepare Form 3177, Notice of Action for Entry on Master File, with TC 130 and route to the Submission Processing Campus Collection function. The Daily and Weekly NMF Accounts Flagged for Notice/TDA List may be used in lieu of Form 3177.

(5) If the message "Account with this Primary Key already exists on the database" appears at the bottom of the screen during the input of the entity information, research to determine if this account is a true re-transfer-in. In this case, follow the instructions below.

1. Hand carry the Form 514-B document to the DBA for correction.

2. The DBA will select the option Assessment Correction and input a "dummy" Tax Period to the previously closed account. See IRM 3.17.46.15.5, Notice and Account Corrections, for instructions.

3. On the following day, the DBA will verify that the "dummy" Tax Period has posted to the closed account. If the change has not posted to the closed account, it will appear on the Unprocessed Restricted Database Changes list.

4. Once the Change is verified, the DBA will return the Form 514-B for continued processing through the Load Old ACCOUNTS/TRANSFER-IN screen.

(6) Entry through the Load Old ACCTS/TRANSFER-IN screen will automatically generate an account transcript the next day. These transcripts will be distinguished from the requested transcripts by the "99999–99999" in the employee number field on the transcript. The NMF function will verify the transcripts to the Form 514-B for accuracy of all entries. If there is an error, prepare DBA correction request.

(7) NMF will forward the following to the Account Transfer function:

• Form 10869

• Form 514-B

• Form 813

• CP 96 or 296

• 99999-99999 transcript

(8) The Account Transfer function will send the below items to the RACS function who will input the account (pre-journalized) to RACS and annotate the RACS journal number on the supporting documentation:

• Form 514-B

• Form 813

• CP 96 or 296

• 99999-99999 transcript

(9) NMF will send to Cycle Control after NMF processing is completed.

(1) The Transfer function will prepare Form 3413 and Form 514-B for either Master File or NMF accounts respectively. Attach a current NMF transcript. Number the documents with a 51 doc. code and forward to the RACS function.

(2) The RACS function will establish the transfer onto the ANMF System using the Form 813 Block Control screen and forward the documents to the NMF function.

(3) The NMF function will expeditiously input the TC 400 to the ANMF System through the Enter Sub Pays option from the Processing menu. When the TC 400 posts to the account (the next day):

1. An NMF transcript will be generated the following day. Send the NMF transcript that generates to the Account Transfer function.

2. Send Form 813 and Form 514-B to Returns Files after month end balancing is complete.

(4) If the TC 400 goes unpostable because the TC 400 account balance amount does not equal the account balance reflected on the ANMF System, a unpostable code (UPC) 040 transcript will be generated at that time.

1. Nullify the transaction with reason code 040.

2. Associate the NMF transcript and the Nullified unpostable list with the entire package and return it to the RACS function.

3. RACS will return the nullified cases to the Transfer function for correction of the TC 400 amount.

(5) The Transfer function will receive the nullified cases from the RACS function with the account transcript and prepare the corrected Form 514-B and forward it to the RACS function.

(6) The RACS function will re-establish the account with a new DLN using the Form 813 Block Control screen and forward to the NMF function.

(7) An NMF account in status 71 or 89 (TC 520) should not be transferred to Master File. Contact the responsible function to resolve the status condition prior to the transfer. A TC400 is input only to accounts in notice or TDA status.

(8) The only accounts that are transferred from another campus to Kansas City Submission Processing Center (KCSPC) NMF are either Master File Overflow or Reversal of Erroneous Abatement accounts. In both instances, the Master File account may have to be split into several NMF assessments when moved from the Master File to NMF. Each separate assessment on the Master File module becomes a separate account on NMF.

1. If one of the balance due accounts from the split meets transfer criteria, research the entire database, including the open and closed file, to locate all the related NMF accounts for that taxpayer and Tax Period Ending.

2. The balance due account usually will carry the Actual Tax Period Ending and the other related accounts will carry a Dummy Tax Period Ending.

3. It is essential to transfer all the related accounts so that a complete audit trail of the Master File module can be input to the NMF database at the campus that now has the geographical jurisdiction for that particular taxpayer.

4. There are no criteria to reject these related types of accounts back to the campus that transferred the account.

(1) Internal Revenue Code 2603(a)(2) provides that the Generation-Skipping Transfer (GST) tax imposed on a direct skip from a trust is to be paid by the trustee. Schedule R–1 (Form 706, U.S. Estate Tax Return) serves as a payment voucher for the trustee to remit the GST tax to the Internal Revenue Service.

(2) The Schedule R–1 (Form 706) is due to be filed and the tax paid by the trustee nine-months after the date of death, but a 2-month extension is automatically granted to file and pay the tax. If the form is filed and tax paid during the 2-month extension period, interest is charged, but no penalties are assessed.

(3) Receipt and Control Branch will forward the schedules to Returns Analysis for code and edit, math verification and computation of penalties and interest.

(4) The schedule is processed as a 706B return and numbered as follows:

• Tax Class 6

• Doc. Code 85

• Blocking Series 590–599

• MFT 53

• Abstract Number 141

(5) Returns Analysis will forward perfected schedules to RACS for input to the Form 813 Block Control screen. RACS will then forward Form 813 and the related documents to NMF for further processing.

(6) NMF will first research IDRS for the DLN of Form 706 for association of the schedule with the return after processing and to input to the Cross-Reference field when the account is established.

(7) NMF will then establish an account on the ANMF System through the Weekly Assessment option from the Processing menu. Input the related Form 706 DLN, decedents name, and TIN to the Cross-Reference field of the entity screen.

(8) Regular billing schedule and accounts maintenance will apply.

(9) Send Schedules R–1 to files to be attached to the Form 706 after NMF processing is completed. Send a Form 10023-B, Attachment (To Be Associated With Return) to Cycle Control to cross-reference the Schedule R–1 DLN to the Form 706 DLN.

(1) Current regulations require that Form 706-A be filed, and the tax paid within six-months after qualified property ceases to be Section 2032A property.

(2) Code and Edit will compute interest from the due date of the return to the date of payment on the entire balance due at the rates and periods prescribed in IRM 20.2, Interest. The due date (which is after the date of disposition) of the Form 706-A will appear in the top margin of the return.

(3) RACS will receive the Form 706-A and Form 813 for input through the Form 813 Block Control screen.

(4) The block of documents is numbered as follows:

• Tax Class 6

• Doc. Code 84

• Blocking Series with remittance: 500–524; without remittance: 590–599

• Abstract Number 141

• MFT 53

(5) RACS will forward the Form 813 and the assessment documents to NMF for processing.

(6) NMF will establish the account on the ANMF System through the Weekly Assessment option from the Processing menu.

(7) Form 706-A is processed as any normal remit/non-remit NMF return. Standard billing schedule and accounts maintenance will apply.

(8) Send the assessment documents to Cycle Control after NMF processing is completed.

(1) Form 706-QDT is based on Code Section 2056(d) and 2056(a) enacted by the Technical and Miscellaneous Revenue Act of 1988 and amended by the Revenue Reconciliation Act of 1989. The Qualified Domestic Trusts (QDT) rules are effective for estates of decedents dying after November 10, 1988.

(2) The trustees or designated filer of a qualified domestic trust (QDT) uses Form 706-QDT to figure and report the estate tax due on certain distributions from the QDT and on the value of the property remaining in the QDT on the date of the surviving spouse's death. A QDT applies only in those situations where a decedent's surviving spouse is not a U.S. citizen.

(3) Form 706-QDT is numbered as follows:

• Tax Class 6

• Doc. Code 85

• Blocking Series 519–524 with Remit; 590–599 without Remit

• MFT 53

• Abstract Number 220

(4) Returns Analysis will code and edit, math verify, and compute penalties and interest due on these returns.

(5) Perfected returns are sent to RACS for input to the Form 813 Block Control screen.

(6) RACS will send Form 813 and the assessment documents to NMF for processing.

(7) NMF will establish the account on the ANMF system through the Weekly Assessment option from the Processing menu.

(8) The standard billing schedule and accounts maintenance will apply.

(9) Send the forms to Cycle Control after the monthly balancing is completed.

(1) These returns are filed to report income received by foreign estates or trusts. Form 1040-NR filed by Non-Resident individuals are processed to Master File. Form 1040-NR filed as Fiduciary Returns are processed to the ANMF system.

(2) RACS will receive these returns and input Form 813 information through the Form 813 Block Control screen.

(3) The block is numbered as follows:

• Tax Class 6

• Doc. Code 72/73

• Blocking Series with remittance: 600-699; without remittance: 000-099

• Abstract 004

• MFT 20

(4) RACS will forward the Form 813 and the 1040-NR to NMF for processing.

(5) NMF will establish an account on the ANMF System through the Weekly Assessment option from the Processing menu.

(6) Refunds—Overpayments on returns are processed on ANMF. Form 3753, Manual Refund Posting Voucher, will be prepared as instructed in IRM 21.4.4.5, Preparation of Manual Refund Forms. The refund is scheduled using manual refund procedures. Enter in the cross-reference field Refund and the amount of the refund.

(7) Credit Elect—If the return is noted that the credit should be applied to the next tax year, enter in the cross reference field "Credit Elect MMDDYY" (month, day, year) and the amount of the credit elect.

(8) Allocation of Withholding – Trusts can elect to allocate withholding to beneficiaries. Code and Edit will edit an X next to the allocation amount, so it is not picked up during the return processing. If indicated on the return, provide a copy to the Account Specialist to prepare a Form 3809 with a TC 802 to transfer the allocation amount to the 6550 Account.

(9) Balance Due—Standard billing procedures will apply.

(10) Form 3809 will be prepared to post TC 710 (credit elect from prior year).

(11) Send documents to Cycle Control after NMF processing is completed.

(1) Form 1042 and Form 1042S, Foreign Person's U.S. Source Income Subject to Withholding, will be verified by Adjustment Branch to determine that correct rates were used, and the proper amount of taxes were withheld from non-resident aliens. The withholding agent will be liable for any tax that is under-withheld.

(2) The Adjustment area will prepare a Form 5734, Non-Master File Assessment Voucher, and attach to the original return showing the amount of tax to be assessed against the withholding agent. The Form 5734 and the original return will be forwarded to Accounting for assessment and billing. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(3) RACS will receive Form 5734, and the original return from Accounts Management and input the Form 813 information into the ANMF System using the Form 813 Control screen. Number the block of documents as follows:

• Form 1042 Tax Class 1, Doc. Code 25

• Form 1042S Tax Class 6, Doc. Code 66

• Blocking series 500–599 for Form 1042 and 000–299 for Form 1042S

• Abstract number 001

• MFT 12

(4) RACS will forward Form 813, Form 5734 and the original return to NMF for processing.

(5) NMF will establish an account on the ANMF System through the Weekly Assessment option from the Processing menu using Form 5734 and the original return.

1. Transcribe the assessment date and DLN on the label attached to the return.

2. Input "Underpaid Withholding" and the code section involved in the Cross-Reference field.

(6) If a balance due condition exists, the standard NMF billing schedule and accounts maintenance will apply.

1. Mail the Form 6335 to the withholding agent and send a copy to the originator in Accounts Management.

2. If the return is "full paid," request a transcript of the account and forward the transcript to the originator in Accounts Management.

(7) Payments received are processed as normal NMF payments and a copy of the notice is used as a supporting document for posting to the NMF account.

(8) Payments secured by revenue officers are entered on Form 3244, Payment Posting Voucher, which is used as a supporting document for posting to the NMF account.

(9) Account reviews are performed systemically; credit balances will generate a credit balance transcript and be resolved as required. See IRM 3.17.46.11.4, Credit Balance-Refund Returns.

(10) Send the assessment documents to Cycle Control after NMF processing is completed.

(1) Form 1065, U.S. Partnership Return of Income, which cannot be processed to Master File because the module balance is $10 billion or greater are sent to the Accounting Function for processing to NMF. RACS will receive these returns and input Form 813 information through the Form 813, Block Control screen.

(2) Form 1065 is numbered as follows:

• Tax Class 6

• Doc. Code 65

• Blocking Series: 500–599

• MFT 35

(3) NMF will establish an account on the ANMF system through the Weekly Assessment option from the Processing menu.

(4) Balance Due-Estimated (ES) tax payments of 10 billion dollars or more will be located in the 4610 account. The return should indicate that ES payments have been made. Research the 4610 account and transfer all payments to NMF. Standard billing will apply.

(1) Form 1120-IC-DISC, Interest Charge Domestic International Sales-Corporation Return, is an information return filed by Interest Charge Domestic International Sales Corporations (IC–DISCs) and former DISCs. After the tax year ends the IC–DISC makes a pro rata property distribution to its shareholders and specifies at the time that this is a distribution to meet the qualification requirements. If the IC–DISC makes this distribution after the date Form 1120-IC-DISC is due, an interest charge must be paid to the Internal Revenue Submission Processing Campus where the form was filed. The charge is 4 percent of the distribution times the number of tax years that begin after the tax year to which the distribution relates until the date the IC–DISC makes the distribution. This payment may be identified from a taxpayer's reference to interest charge under regulations section 1.992–3(c)(4).

(2) If there is no tax to be assessed and there is no evidence of a payment with the Form 1120-IC-DISC, prepare an index card through the Index Card process.

(3) Process all returns with evidence of a payment as full–Paid Return. If there is evidence of a payment with Form 1120-IC-DISC, RACS will prepare a Form 813. RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen and forward the Form 813 and Form 1120-IC-DISC to NMF for processing.

(4) The block of documents is numbered as follows:

• Tax Class 6

• Doc. Code 20

• Blocking Series 200–249 with remittance, 250–299 without remittance

• Abstract number 006

• MFT 23

(5) If there is evidence of a payment, NMF will establish an account on the ANMF System through the Weekly Assessment option from the Processing menu.

(6) After processing is complete forward the Form 1120-IC-DISC to the Cycle Control Function.

(1) These returns are received separately batched in blocks of remittance and non-remittance returns. Form 2438 is assessed as normal NMF returns but require special handling since Federal Tax Deposits must be transferred from BMF to satisfy the tax liability prior to notice issuance.

(2) RACS will input the Form 813 information into the ANMF System using the Form 813 Block Control screen.

(3) The block of documents is numbered as follows:

• Tax Class 6

• Doc. Code 86

• Blocking Series: 000–999

• Abstract number 006

• MFT 38

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

(5) NMF will establish an account on the ANMF System through the Weekly Assessment option from the Processing menu.

1. Input a "4" in the NMF Statement Code filed for the NMF standard statement.

2. After establishing the account, photocopy the Form 2438 and forward the photocopy to the NMF Accounts Maintenance function.

3. The Accounts Maintenance function will immediately request a transcript of the taxpayer's BMF Form 1120 account through IDRS.

4. If the FTD credits are located, transfer the credits to the NMF account.

5. Prepare and number Form 3177 to input the TC 470 to the NMF account to hold notices until the transfer of the FTD credits are completed.

6. If the credits cannot be found, mail Form 6335 to the taxpayer.

(6) Send the assessment documents to Cycle Control after NMF processing is completed.

(7) In rare case Exempt Organizations may file Form 990T, Exempt Organization Business Income Tax Return, to claim a refund of taxes paid on their behalf by the Regulated Investment Company. These claims are normally received by the Accounts Management Branch who would then request an abatement (Form 1331B). See IRM 3.17.46.3.6, Certification of Overassessments, to process the overassessment.

(1) Form 4720 is used to report the excise taxes on Private Foundations, Public Charities, Self-Dealers, Disqualified Persons, Foundation Managers and Organization Managers for activities which are not in accordance with the charitable purpose. It provides for the assessment of tax against an organization as well as an individual. Generally, Form 4720 must be filed by the due date for filing Form 990PF, Form 5227, Form 990, and Form 990EZ.

(2) Form 4720 are processed by Ogden Submission Processing Campus (OSPC). They will determine if a Form 4720A is required based on information in Part II and the signature area on page 6. If required, Form 4720A is prepared and routed to NMF for processing.

(3) Processing procedures are different depending on who is filing the return. NMF will receive Form 4720A for processing if the:

1. Organization is filing for the individual(s), OSPC will prepare a separate Form 4720A for each individual listed on Form 4720, Part II.

2. Individual is filing a separate Form 4720, OSPC will convert the original Form 4720 to Form 4720A.

3. Original Form 4720 does not have a signature on the line for the "signature of officer or trustee" on page 9 (regardless if there are entries in Part I), but there is/are signature(s) on the line for self-dealers, disqualified persons, foundation managers, OSPC will convert original Form 4720 to an "A" for use as the first entry in Part II A. Photocopies of Form 4720A are used for each additional entry in Part II A.

4. Ogden is responsible for determining whether Form 4720 is being filed for individual(s) and resolving any correspondence issues.

(4) RACS will receive Form 4720A and Form 813 for input through the Form 813 Block Control screen.

(5) Form 4720A is numbered as follows:

• Tax Class 6 (True Tax Class 4)

• Doc. Code 71

• Blocking Series: 000 —399 non-remittance; 600–699 with remittance

• MFT 66

(6) Abstract Numbers —various:

• 150–Self Dealing

• 151–Undistributed Income

• 152–Excess Business Holdings

• 153–Investments which Jeopardize Charitable Purpose

• 154–Taxable Expenditures

• 182–Excess Grass Roots Contributions

• 183–Excess Lobbying Contributions

• 213–Tax on Political Expenditures

• 214–Tax on Disqualifying Lobbying Expenditures

• 232–Excess Benefit Transaction

• 234–Split Dollar Insurance

• 237–Prohibited Tax Shelter Transaction

• 238–Tax on Taxable Distributions

• 239–Tax on Prohibited Benefits

(7) NMF will establish an account on the ANMF system through the Weekly Assessment option from the Processing menu.

1. Include the name and EIN of the organization or entity in the Cross Reference field.

(8) Balance Due-research Master File to locate all payments/credits and transfer to NMF. Standard billing will apply.

(1) Shareholders of Interest Charge Domestic International Sales Corporations (IC–DISCs) use Form 8404, Computation of Interest Charge on DISC-Related Deferred Tax Liability, to figure and report their interest on DISC related deferred tax liability.

(2) The Receipt and Control or Document Perfection function will forward all Form 8404 remittance returns to RACS for input to the ANMF System using the Form 813 Block Control screen. Number the document as follows:

• Tax Class 6

• Doc. Code 69

• Blocking Series with remittance: 300–349; without remittance: 600–699

• Abstract Number 009

• MFT 23

(3) RACS will forward the Form 8404 and Form 813 to NMF for processing.

(4) NMF will establish an account on the ANMF System through the Weekly Assessment option from the Processing menu.

(5) The standard billing schedule and accounts maintenance will apply.

(6) Send the Assessment documents to Cycle Control after the NMF processing is completed.

(1) Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts, and Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies are processed as NMF. Both returns are due March 15 of the year following the year to which the liability applies. NMF WILL NOT pre-search Form 8612 and Form 8613 prior to processing to ANMF.

(2) Receipt and Control Branch will forward the accounting package to RACS and the returns to Returns Analysis for code and edit, math verification.

(3) Number Form 8612 as follows:

• Tax Class 6

• Doc. Code 21

• Blocking Series with remittance: 400–499; without remittance: 000–099

• MFT 89

• Abstract Number 192

(4) Form 8613 is numbered as follows:

• Tax Class 6

• Doc. Code 22

• Blocking Series with remittance: 500–999; without remittance: 300–499

• MFT 14

• Abstract Number 193

(5) Send perfected returns to RACS for input of the Form 813 information to the ANMF System using the Form 813 Block Control screen.

(6) Send Form 8612 and Form 8613 to NMF from RACS Unit for normal NMF processing.

1. All returns will require establishment of an account on the ANMF System through the Weekly Assessment option from the Processing menu.

2. Form 8612 and Form 8613 are subject to all normal penalties and interest computation as outlined in the IRM 20.2, Interest and the IRM 20.1, Penalty Handbook.

3. Standard billing and accounts maintenance will apply.

Note: If a Form 2758 or Form 7004 extension with remit is previously filed and established, NMF will process Form 8612 and Form 8613 with a "Dummy Period." Return block of work to DBA. The DBA must make a DBA correction following instructions in IRM 3.17.46.5.9 (5), Extensions with Remit.

(7) Send returns to Cycle Control after NMF processing is completed.

(1) Effective May 9, 2010, ANMF will resume processing Refund Form 8697 and Form 8866 only when there is no return (TC 150) posted on MF. This is an interim process until further notice.

(2) Effective January 1, 2005, Form 8697 and Form 8866 are processed as BMF or IMF for Form 1120, Form 990T, and Form 1040. In July 2005, Form 8697 related to Form 1041 and Form 1065 are processed as BMF. NMF only processes these forms if there is no return (TC 150) on MF.

(3) The Tax Reform Act of 1986, under Section 460(b)(3) requires issuers of long term contracts (more than one tax year) entered into after February 28, 1986, to re-evaluate after the completion of the contract, the actual income/costs to those estimated at the beginning of the contract. A computation of the interest resulting from the discrepancies in taxes paid and taxes that should be paid each year is required. This computation results in interest either owed by the taxpayer or to be refunded to the taxpayer. The Form 8697 is used to compute and report the interest due or to be refunded.

(4) The Form 8697 are attached to Form 1120, Form 990T, or Form 1040 and are filed and processed on the Master File. If the form is not treated as an attachment and is filed separately by the taxpayer for a refund, it will continue to be processed through NMF when there is no return (TC 150) posted on MF. This is the only situation that requires NMF processing.

(5) Refund Form 8697 is processed through the Accounts Management function.

(6) Refund Claims on Form 8697

1. Refund Form 8697 is received in the Refund function in the Accounting Branch with Form 1331B and Form 3753 requesting refund processing.

2. The refund is scheduled using manual refund procedures in IRM 21.4, Refund Inquiries.

3. RACS will pre-journal the Form 1331B and forward it and its related Form 813 and Form 8697 and a photocopy of Form 3753 to NMF for establishment of the account.

4. RACS will input the original Form 3753 to the Form 813 Block Control Screen and forward it and its related Form 813 and a photocopy of Form 8697 and 1331B to NMF.

5. The NMF function will receive Form 813, Form 8697, Form 1331B and a photocopy of Form 3753. Establish the account through the Load Old Accounts/Transfer-In Screen using TC 766, MFT 69, with doc. code 54. Determine the abstract number to be used by the refund issue claimed on the Form 8697.

Abstract Number	Type
210	Corporation
211	Individual
212	Estate or Trust

6. Input Form 3753 through the Enter Sub Pays option from the Processing menu with a TC 840.

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

(7) Send Form 8697, Form 1331B and Form 813 to Cycle Control after NMF processing is completed, unless Form 3696, Correspondence Action Sheet, or Form 3465 Adjustment Request, is attached. Send returns with Form 3696 to the Correspondence function. Send returns with Form 3465 to the Accounts Management function. If both forms are attached to the return, forward to the Correspondence function. Form 2275, Records Request, Charge and Recharge, is placed in the block in lieu of the document.

(8) Refund Form 8866, Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method, are processed on NMF using the exact same procedures as Form 8697.

(1) Form 8725, Excise Tax on Greenmail, is used to report and pay the 50 percent excise tax imposed under IRC 5881. The term greenmail means, within certain limitations specified in IRC 5881, any amount a corporation (or, for transactions occurring after March 30, 1988, any person acting in concert with a corporation) pays to a shareholder to directly or indirectly acquire its stock.

(2) Form 8876, Excise Tax on Structured Settlement Factoring Transactions, is used to report and pay 40 percent excise tax imposed under IRC 5891. The Excise tax is equal to 40 percent of the undiscounted amount of the payments being acquired, over the total amount actually paid to acquire them.

(3) RACS will receive the Form 8725 and Form 813 for input through the Form 813 Block Control screen. Form 8725 is numbered as follows:

• Tax Class 6

• Doc. code 21

• Blocking Series 000–099 without remittance and 400–499 with remittance

• MFT 27

• Abstract Number 216

(4) RACS will receive the Form 8876 and Form 813 for input through the Form 813 Block Control screen. Form 8876 is numbered as follows:

• Tax Class 6

• Doc. Code 21

• Blocking Series 000–099 without remittance and 400–499 with remittance

• MFT 27

• Abstract Number 234

(5) RACS will forward the Form 8725 or Form 8876 and Form 813 to NMF for normal processing.

1. The tax period is the date entered in the "Date of initial receipt of greenmail" listed at the top of the Form 8725. Form 8876, the tax period is the "Date of initial receipt of the Structured Settlement" listed at the top of the Form 8876. Convert that date to MM/DD/YYYY for input to ANMF.

2. The amount of excise tax due (Line 6, Form 8725), is a flat 50 percent of the total gain or other income (Line 5, Form 8725). The amount of tax due (Line 6, Form 8876), is a flat 40 percent of the factoring Discount (Line 3, Form 8876).

3. The returns are filed under either an SSN or EIN format.

(6) NMF will establish an account on the ANMF System through the Weekly Assessment option from the Processing menu.

(7) Form 8725 and Form 8876 is subject to late filing and late payment penalties if not filed or paid on time.

(8) The standard billing schedule and accounts maintenance will apply.

(9) Send the returns to Cycle Control after NMF processing is completed.

(1) Form 8831 is used to report and pay excise taxes on any transfer of a residual interest in a REMIC (Real Estate Mortgage Investment Conduit) to a disqualified organization or any transfers of a residual interest in a pass-through entity. The tax applies to those transfers made after March 31, 1988 (unless the transfer was made under a binding contract in effect on that date). The earliest filing date for this return is March 24, 1993. Due to the small number anticipated nationwide, these returns are processed on ANMF.

(2) Document Perfection will forward all perfected returns to RACS for input to the Form 813 Block Control screen.

(3) The block of documents is numbered follows:

• Tax Class 6

• Doc. Code 21

• Blocking Series 000–099 without remittance and 400–499 with remittance

• Abstract Number 221

• MFT 89

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

1. Send all refund claim Form 8831, any return marked with an "Amended", or returns needing penalty computation to the Accounts Management function for resolution prior to routing for NMF processing.

2. Late Filing Penalty and Late Payment Penalty apply to Form 8831. The estimated Tax Penalty does not apply to Form 8831.

(5) NMF will establish an account on the ANMF System through the Weekly Assessment option from the Processing menu.

(6) The standard billing schedule and accounts maintenance will apply.

(7) Form 8831 which have "RTC RECEIVERSHIP"written at the top of the document cannot be processed using existing IRM procedures. Follow a. though e. below:

1. Number using existing numbering criteria indicated in IRM 3.17.46.6.31 (3) above.

2. Assess the tax indicated on line 5 of the document.

3. Input Exception Code "R" to restrict the accruals of interest and penalty.

4. Allow first notice to generate and mail. No subsequent notice is to be issued.

5. Prepare form 3177 and input TC 530 CC 15. Per an Inter-Agency agreement between the IRS and the FDIC, no annual reminder notice is required.

(8) Send the returns to Cycle Control after NMF processing is completed.

(1) The Tax Relief and Health Care Act of 2006 (P.L. 109-432), Section 403, enacted a new Form 8924 for the computation and reporting of the excise tax due on the Transfer of Certain Qualifying Geothermal or Mineral Interests by an eligible entity. The return is due by the 90th day following the taxable transfer.

(2) Receipt and Control Branch will forward the accounting package to RACS and the returns to Returns Analysis for code and edit.

(3) Form 8924 is numbered as follows:

• Tax Class 6

• Doc. Code 40

• Blocking Series 300–399 without remittance and 400–499 with remittance

• Abstract Number 012

• MFT 41

(4) Send Perfected returns to RACS for input of the Form 813 information to the ANMF system using the Block Control screen.

(5) RACS will forward Form 8924 to NMF for normal ANMF processing as follows:

1. Account establishment through the Weekly Assessment option from the Processing menu.

2. Normal penalty and interest computation in accordance with IRM 20.2, Interest and IRM 20.1, Penalty Handbook.

3. Standard billing and accounts maintenance will apply.

(6) Send returns to Cycle Control after NMF processing is completed.

(1) The Tax Relief and Health Care Act of 2006 (P. L. 109-432), Section 403, enacted a new Form 8928 for the computation and reporting of Excise taxes due on Sections 4980B, 4980D, 4980E, and 4980G for failures by group health plans or employers. The due date of the return is dependent on the Section as follows:

1. Section 4980B and 4980D are due on or before the due date for the persons federal tax return for single employer or another responsible person.

2. Section 4980B and 4980D are due on or before the last day of the seventh month following the end of the plan year for multiemployer or multiple employer plans.

3. Section 4980E and 4980G are due on or before the 15th day of the fourth month following the calendar year in which the noncomparable contributions were made.

(2) Receipt and Control Branch will forward the accounting package to RACS and the return to Returns Analysis for code and edit.

(3) Form 8928 is numbered as follows:

• Tax Class 6

• Doc. Code 39

• Blocking Series 000–099 without remittance and 400–499 with remittance

• Abstract Numbers:

Abstract Number	Section
126	4980B
127	4980D
128	4980E
137	4980G

• MFT 41

(4) Send perfected returns to RACS for input of the Form 813 information to the ANMF system using the Block Control screen.

(5) RACS will forward Form 8928 to NMF for normal ANMF processing as follows:

1. Account establishment through the Weekly Assessment option from the Processing menu.

2. Normal penalty and interest computation in accordance with IRM 20.2, Interest and IRM 20.1, Penalty Handbook.

3. Standard billing and accounts maintenance will apply.

Note: If Form 7004 extension is previously filed and established, NMF will process Form 8928 with a "Dummy Period". Return block of work to DBA. DBA Must make a DBA correction following NMF extension of time to file procedures. See IRM 3.17.46.6.9(5), NMF Extension of Time to File.

(6) Send returns to Cycle Control after NMF processing is completed.

(1) Form CT-2, Employee Representative’s Quarterly Railroad Tax Return is processed as NMF. This is a quarterly filed return, due 2 months after the end of the quarter.

(2) RACS will receive these returns and input Form 813 information through the Form 813 Block Control Screen.

(3) The block is numbered as follows:

• Tax Class 6

• Doc Code 02

• Blocking Series 000-999

• Abstract 145

• MFT 72

(4) RACS will forward the Form 813 and the CT-2 to NMF for processing.

(5) NMF will establish the account on the ANMF System through the Weekly Assessment option from the Processing menu.

(1) An NMF Accounts Flagged for Notices/TDA listing is generated weekly is a list of accounts on which a notice or TDA is being issued. This listing is used:

1. To ensure the printing of all weekly notices,

2. To distribute notices to NMF technician for notice review, and

3. As a source document to prepare Form 3177 for each NMF account that requires the input of a TC 130 on Master File.

4. To conduct TC 130 quarterly review to ensure TC 130s are posting on Master File.

(1) Form 6335 is the taxpayer's 1st notice generated from the ANMF system for accounts that have a balance due. Generation of the first notice is also dependent on an entry to the Notice Type field during the establishment of the account on the database.

1. The proper notice statement is generated on the Form 6335 based on the input to the NMF Statement Code field at the time the account is established on the ANMF System through the Original Assessment screen. See IRM 3.17.46.6.15 for Trust Fund Recovery Penalty processing.

Note: The system will also generate a one-time notice, Form 6335, for an account ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. See IRM 3.17.46.11.1, Penalty and Interest Review.

2. The system will not generate a notice for a balance due ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3. The system will not include NMF accounts that are established with an Employer Identification Number (EIN), and EPMF or EOMF accounts, or on the Master File account of a secondary taxpayer in the systemic file that is sent for posting of the TC 130. Follow manual processing procedures when a Master File Entity freeze (V-), TC 130 is needed. IRM 3.17.46.7.12 (5)

4. Send a copy of Form 6335 to originator.

5. See figure 3.17.46-15, 3.17.46-16, and figure 3.17.46-17 for various examples of first notices.

(2) Date and mail all first notices to conform with the actual assessment date (23C date).

(3) Notice issuance for Quick and routine 23C assessments will follow a regular six-week schedule after the first notice.

(4) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(5) Send the fourth notice (figure 3.17.46-18) by certified mail. These notices will be hand carried from accounting to the shipping function. Kansas City Campus must obtain labels with certified mail numbers from the local post office for mailing of these notices.

1. The notices are maintained separately, certified and mailed by the shipping function.

2. Mailing services keeps a log with tracking information from each fourth notice. A Certified Mail List is generated by the ANMF System with the fourth notices for this purpose. However, this listing is used at Kansas City's option if Mailing Services has an alternative method of recording this information.

(6) Research the ANMF system, Master File, 4610 account, and 4430 account for advanced or misapplied payments. Use extreme caution to ensure that the payment belongs to the taxpayer's account. Use the RTR, Remittance Transaction Research, system to ensure proper posting of the payments.

(7) Research Master File to ensure that the notice is issued to the most current address. If more current address is located on Master File:

1. Prepare Form 2363 for posting of an address change.

2. Number Form 2363 and input to the ANMF system.

3. DBA will reprint notice to the taxpayer with current address.

   Note: If timing does not allow DBA to reprint notice bill the taxpayer using the Alternative Notice System.

(8) All notices are sent by certified mail using envelope E125–L. Since a separate log needs to be maintained for registered items, a Registered Mail List is generated by the ANMF System with the notices.

(9) Input a history item on the account indicating whether or not the notice was sent.

(10) If the account is a true NMF assessment (will not be transferred to a Master File) and is a Prompt, Jeopardy or Termination assessment, associate two copies of Form 6335 with the duplicate copy of Form 2859 with the TDA. If the account is a Trust Fund Recovery Penalty, Quick, Prompt or Jeopardy Assessment, forward two copies of Form 6335 and Form 2749 (parts 3 and 4) with the TDA to CSCO. See IRM 3.17.46.7.9 for TDA issuance.

(11) If an NMF return is received containing an increase in tax resulting from a mathematical error, enclose Notice 746, Information About Your Notice, Penalty and Interest, with parts 1 and 2 of Form 6335 to be sent to the taxpayer.

(12) Several types of assessments have an irregular time interval between the issuance of the first notice and other subsequent notices.

1. For assessments which include an increase of tax on certain returns because of a mathematical error—the fourth notice will be deferred for 12 weeks. A Form 3177 will be prepared to input a TC 470 to the ANMF System to delay notice issuance.

2. Suspension of subsequent notices for an indeterminate period may be directed by the Examination Division until all appeal rights are exhausted for penalty assessments requested by Examination. Post a TC 470 to the account from a prepared Form 3177 and include as a history item.

(13) If a balance due notice is undeliverable or the taxpayer indicates an inability to pay, See IRM 3.17.46.7.7 Undelivered NMF Notices, for further instructions.

(14) The input of a "Yes" to the POA field on the Weekly Assessment screen at the time the account is established will generate a listing of NMF accounts on which any notice is being issued and a POA exists. This listing is not all-inclusive therefore, Research CC CFINK for all notices to determine if there is a POA on CAF, Centralized Authorization File. See Exhibit 3.17.46-10, NMF/MF Compatible MFTs for Power of Attorneys, for compatible MF MFTs.

1. Use the Notice Due—Power of Attorney (POA) on File list to research the CAF for the POA name and address. The CAF research must be conducted on all notices. Since the Master File CAF is updated daily, NMF must conduct this research each time a notice is generated to ensure the POA information is correct prior to mailing out the notices.

2. Research CAF for all notices, if a POA is located on CAF for an account that does not contain a “Yes’ the DBA will have to input the “Yes” in the POA field. Only the DBA is profiled to update the account to include the POA indicator after the account is established. The DBA will update the POA indicator through the Assessment Correction screen.

3. Mail a photocopy of the notice to each authorized representative and document this in the history of the account.

(1) Form 9774 (Figure 3.17.46-19) is issued annually to remind taxpayers of a balance due on a tax module that has been in Currently Non-Collectible (CNC) status 24 (Collection Queue) and status 60 (Installment Agreement) on ANMF for 365-days or more. These notices will be generated weekly for mailout.

(2) A 100 percent review of all Forms 9774 must be done prior to mailout.

(3) Research the ANMF system, Master File, 4610 account, and 4430 account for advanced or misapplied payments. Extreme caution must be taken to ensure that the payment belongs to the taxpayer's account. RTR, Remittance Transaction Research, system should be utilized to ensure proper posting of the payments.

(4) Research Master File to ensure that the notice is issued to the most current address. If more current address is located on Master File:

1. Prepare Form 2363 for posting of an address change.

2. Form 2363 will be numbered and input to the ANMF system.

3. DBA will reprint notice to the taxpayer with current address.

   Note: If timing does not allow DBA to reprint notice bill the taxpayer using the Alternative Notice System.

(5) Research CAF by using CC CFINK to determine if there is a POA on file for all notices. See Exhibit 3.17.46-10, NMF/MF Compatible MFTs for Power of Attorneys, for compatible MF MFTs. If there is “Y” in the POA field the account will appear on the Notice Due—Power of Attorney (POA) on File List.

1. This list may be used to research the CAF for the POA name and address. The CAF research must be conducted on all notices. Since the Master File CAF is updated daily, NMF must conduct this research each time a notice is generated to ensure the POA information is correct prior to mailing out the notices.

2. Research CAF for all notices, if a POA is located on CAF for an account that does not contain a “Yes’ the DBA will have to input the “Yes” in the POA field. Only the DBA is profiled to update the account to include the POA indicator after the account is established. The DBA will update the POA indicator through the Assessment Correction screen.

3. Mail a photocopy of the notice to each authorized representative and document this in the history of the account.

(6) Mail notice to taxpayer and input a history item on the account indicating whether or not the notice was sent.

(7) Forms 9774 which full-pay the account will be routed to the Accounting function. Form 9774 may be used in lieu of Form 3244, Payment Posting Voucher. If a payment is received for more than one tax period Form 3244 will be prepared for each additional tax period. Payments will be numbered as follows:

1. TC 670

2. Doc. Code 27

3. Determine the MFT, Blocking Series and Abstract Number by the Form indicated on the notice. If Form 9774 is received with a part-pay, photocopy the Form 9774 and route to Campus Customer Service/Collections function.

(8) Undeliverable Forms 9774 will be routed to Collections. If a new address is found, the Form 9774 will be returned for re-issuance. Collections will prepare Form 2363, Master File Entity Change, as the source document for NMF to update the taxpayer's address.

1. Enter a "F" into the Notice Type field of the Correct Weekly Notice screen of the NMF database for accounts in status 53. The notice with a new notice date will be created during weekend runs if all other notice criteria are met.

2. Enter a "Z" into the Notice Type field of the Correction Weekly Notice screen of the NMF database for accounts in status 24, 53, and 60. Format and print using options (11) Reformat CNC and (16) reprint CNC on the NMF DBA Weekly Run/Print Menu. The notice will be created and printed immediately.

(1) The ANMF Headquarters Analyst will issue a SERP Alert when relief has been granted to a geographic area because of a disaster which will include a link to the zip codes of the affected areas. The procedures in this section shall be followed for issuing notices in the affected areas during the disaster period prescribed in the SERP Alert and after the disaster period ends.

(2) A Disaster Notice Spreadsheet will be maintained for each separate disaster, and will include account information for notices generated in the affected areas where these procedures have been followed. The spreadsheet will be sent to the ANMF Headquarters Analyst weekly.

(3) The following actions need to be taken on any accounts that generate a 1st Notice during the disaster period:

1. Conduct normal notice research and issue notice if applicable.

2. Prepare and expedite Form 3177 for input of TC 470 CC 090.

3. Input history “1st notice sent, XXXX Disaster. Form 3177 prepared for TC 470 CC 090.”

4. Update Disaster Notice Spreadsheet to reflect the account and date information.

(4) The following actions need to be taken on any account that generate a 4th Notice or CNC Notice during the disaster period:

1. Hold notice for further instructions when the disaster period ends. Notices will be reissued following the disaster period end date and may include relief of penalty and interest.

2. Prepare and expedite Form 3177 for input of TC 470 CC 090.

3. Input history “XXX notice not sent, XXXX Disaster. Form 3177 prepared for TC 470 CC 090.”

4. Update Disaster Notice Spreadsheet to reflect the account and date information

(5) When the disaster relief period ends the following actions need to be taken on all accounts with a remaining balance due where a 1st Notice was issued and a TC 470 was input:

1. Prepare Form 3177 for TC 472.

2. Input history “Form 3177 prepared for TC 472, XXXX Disaster relief period expired MM/DD/YYYY.”

3. Input TC 472.

4. Once the TC 472 posts, the account will move to status 58 and generate a 4th Notice. Follow normal procedures for issuance of the 4th Notice.

(6) When the disaster relief period ends the following actions need to be taken on all accounts with a remaining balance due where the 4th Notice was held:

1. Prepare Form 3177 for TC 472.

2. Input history “Form 3177 prepared for TC 472, XXXX Disaster relief period expired MM/DD/YYYY.”

3. Input TC 472.

4. Prepare an Alternative 4th Notice with current date for issuance.

(7) When the disaster relief period ends the following actions need to be taken on all accounts with a remaining balance due where the CNC Notice was held:

1. Prepare Form 3177 for TC 472.

2. Input history “Form 3177 prepared for TC 472, XXXX Disaster relief period expired MM/DD/YYYY.”

3. Input TC 472.

4. After the TC 472 posts the account will move into its previous status, and the DBA will reformat and print the CNC Notice for issuance.

(8) When held notices are reissued the ANMF Headquarters Analyst will indicate whether there is any relief from Penalty and Interest.

(1) The Annual Notice Flag List will identify tax modules in status 24 Collection Queue, status 53 Currently Non-Collectible and status 60 Installment Status, that meet the criteria for issuance of the Annual Reminder Notice Form 9774, which contain an exception code for which a manual computation of interest and/or penalty accruals is necessary. Print the list each Monday. The list contains:

• Notice Date

• Exception Code

• TIN, MFT, Tax Period

• Status

• TC 530 date

• Account Balance

(2) The Manual Interest and Penalty Update screen will be accessed by the DBA or other designated technicians to update the interest and penalty computations which will be generated on the notice.

(3) Select the Manual Interest and Penalty Update screen. The following input fields will appear:

1. Account Key— enter TIN, MFT, Tax Period.

2. Exception Code— enter "U" twice to update manual computation of penalty/interest accruals to ANMF.

3. Interest— enter interest accruals.

4. Interest Date— enter interest "to" date.

5. Penalty— enter penalty amount.

6. Penalty Date— enter penalty "to" date.

(4) Input data to fields and enter. This will update accruals to the ANMF database.

(5) Reformat and Re-print notice selecting appropriate options from the NMF DBA Weekly Run/Print Menu. If the notice is not generated within the same week, it will have to be generated using the Alternative Notice Generation system.

(6) After issuance of the notice, Exception Code "M" must be replaced so that it will appear on future listings.

(1) The Notice Yield and Issuance Report will capture the dollars collected resulting from the generated Annual Reminder Notice Form 9774 and identify the number of notices issued. The data will be cumulative.

(1) All Forms 6335 that are undeliverable will be destroyed by Collection.

(2) If Form 4840 (4th notice, sent certified mail to the taxpayer) is returned as undeliverable, but a new address is found, then:

1. Collection will send the new address to Accounting with a request to REMAIL the notice. At that time, Collection will prepare a Form 2363 as the source document for NMF to update the taxpayer's address through the Entity Change screen.

2. If there is no new address for the undeliverable 4th notice, then Collection will request that Accounting accelerate to TDA status. Enter "address invalid" as a history item on IDRS so that the Revenue Officer is aware to look for another address.

3. If the 4th notice is marked as "refused" by the taxpayer, Collection will inform Accounting of such so that Accounting will accelerate to TDA status.

4. If an undelivered fourth notice is sent to NMF and is in TDA status, input "address invalid" as a history item on IDRS.

(1) Effective July 1, 2000, the IRS Restructuring and Reform Act (RRA 98) mandates that IRS provide the taxpayer and/or taxpayer's representative with an annual installment statement. Annual Installment Agreement Statement, Form 12379, will be sent to taxpayers who have an account that contains an unreversed Transaction Code (TC) 971 with Action Code (AC) 63. The ANMF system will not update the status on an account where a TC 480 or a TC 520 was input prior to reversing a TC 971 AC 63 Status Code 60.

When a TC 480 (Status 71) or a TC 520 (Status 89) is received for input to the ANMF system:

1. Determine if the account is in Status 60

2. If no, input the TC 480 or the TC 520 to the account

3. If yes, continue with instructions

4. Locate the unreversed TC 971 AC 63

5. Identify the TC 971 AC 63 input date

6. Enter a TC 972 AC 63 using the same input date as the TC 971 AC 63

7. After the TC 972 post input TC 480 or TC 520

(2) On the first Monday in July of each year the DBA will print an annual Installment Agreement (IA) Flag List with the related installment statements from the NMF database.

(3) IRC 6651(h) provides for a decrease in the FTP penalty rate for qualifying taxpayer for any month (after 12/31/1999) during which an installment agreement is in effect. See IRM 20.1.2.3.8.1.2, 1/4 Percent Penalty Rate-IRC 6651(h), for additional information. The taxpayer must meet the following criteria:

1. The taxpayer must be an individual (a taxpayer that is not a corporation, a partnership, a trust, or an exempt organization).

   Note: Estate tax returns and generation skipping tax returns also meet the criteria because these returns are filed on behalf of an individual.

2. The taxpayer filed his or her return for the tax in question on or before the due date for filing (including extensions).

(4) All annual IA statements must be reviewed for accuracy of the penalty and related interest computed by the ANMF system.

1. If the return was not filed timely (TC 160 is present) normal FTP penalty and interest on that penalty apply. No further action is required.

2. If the return was filed timely manually compute failure to pay penalty at 1/4 percent for all months which an installment agreement was in effect, using IDRS command code COMPA. See IRM Exhibit 20.1.2-3, COMPAF Examples, for an example.

3. If manual computation is necessary, reformat the Annual IA statement. Enter an "I" into the notice type field and update.

4. Reprint the annual IA statement.

(5) The alternative notice system will be used for accounts that have multiple assessments with the same TXPD/dummy TXPD for the same taxpayer. Combine all annual IA statements that have the same taxpayer identification number (TIN) and TXPD/dummy TXPD(s). P and I computations should be verified for accuracy prior to combining annual IA statements.

1. Review the IA Flag List to identify accounts with the same TIN and TXPD/dummy TXPD(s).

2. Match the related annual IA statements.

3. Combine and total separately the beginning balances, additions, reductions, accrued penalties, accrued interest and ending balances from the related annual IA statements.

4. The total of all beginning balances, additions, reductions, accrued penalties and accrued interest should be equal to the ending balance on the IA statement.

   Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

5. NMF Form 4840, Form 9774, and Form 12379 will include a detailed penalty and interest computation with each mailout.

(6) The as of dates for the account summary section of the statement are:

1. Beginning Balance - the date one year or less prior to July 1 of the current year (whichever is greater).

2. Additions - June 30 of the current year.

3. Reductions - June 30 of the current year.

4. Accrued Interest - date of most current accrued interest calculation.

5. Accrued Penalty - date of most current accrued penalty calculation.

6. Enter the dates, money amounts and literals from the individual annual IA statements into the Account Summary section of Form 12379. All transactions code explanations should be spelled out completely. Refer to Annual Installment Statement Literals below:

(1) If an assessment is a Jeopardy, Termination, Trust Fund Recovery penalty, or transferee/transferor or any other request for immediate assessments, establish the account using Notice Type "T" for Trust Fund Recovery Penalty or "Z" for all others.

(2) Systemic review of all accounts in notice status for which six (6) weeks have elapsed since the issuance of the fourth notice will systemically move to TDA status 22.

1. If the taxpayer is not in TDA status, the system will search the Currently Not Collectible Account (53'd accounts, Account 1830) for taxpayer's entities ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

   Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡

2. All NMF accounts meeting TDA criteria must be loaded to an SB/SE Compliance site. See IRM 3.17.46.9

3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If circumstances warrant acceleration, such as the taxpayer wants an installment agreement, input a TC 971 AC 199, this will allow the account to be accelerated to Status 22.

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

(3) Weekly, the ANMF System reviews accounts in suspense status 89 to determine if further action is required. Claims/Adjustment Pending account transcripts generate 90-days after a TC 470 has posted. A TC 472 will systemically post after 180-days has elapsed.

1. A Claim/Adjustment Pending account transcript will also be generated if a TC 291 or TC 301 posts to an account in suspense status.

2. Collection withheld (adjustment or credit pending, etc.) If 90-days have elapsed since Collection action was withheld, check with originator for updated status and further action.

(4) Unless excluded by immediate issuance, the account must be entered on IDRS prior to release of the TDA. Enter the TDA on IDRS expeditiously. Weekly, the ANMF System will generate TDA transcripts (Accounts Maintenance Transcripts) which are source documents for input to IDRS.

1. Search IDRS files to determine if an entity is established for the account; if not, establish both the entity and account for which the TDA is to be generated via ICS.

2. If the entity is established, enter the account data only.

(5) Route the Form 3210 and TDAs to CSCO for document association and review.

1. If the account is under control of the Campus Criminal Investigation (TC 914 on the account or requested on Form 4135, Criminal Investigation Control Notice), prepare a photocopy of Form 3210, Request the related transcript and forward to the Campus Criminal Investigation Control function.

2. If the TDA is for an airline tax protest account, prepare Form 3210, request the related transcript and forward to Protest Coordination Function for reporting purposes.

3. Annotate on Form 3210 whether Form 4840 (Notice of Intent to Levy) was issued and the date issued.

(6) The DBA can accelerate the notice stream to transfer the account from notice to delinquent status. See IRM 3.17.46.7.9(2) c.

(7) Some accounts under control of the Criminal Investigation Division (TC 914 posted to a Master File) will be transferred via Form 514-B by memorandum to NMF.

1. Enter on NMF in the TDA status and enter on IDRS in the normal manner.

2. Note in the Cross-Reference field of the NMF account to transfer the account back to the original Master File once the account is fully paid.

(1) An NMF ADDRESS Transcript will generate whenever an IMF or BMF address is updated and there is an NMF TC 130 present on Master File. These transcripts will be pulled from Control D by the NMF function for updating the taxpayer's NMF account. It is important that these transcripts be worked expeditiously when received to ensure accuracy of the NMF database.

(2) In lieu of preparing Form 2363, the transcript may be used as the source document for posting the address change.

(1) An alternative method of producing all NMF notices should be adopted locally. We recommend a local personal computer (PC) application. Generally, system downtime would only affect the "daily" assessments, but, depending on the length of the system downtime, weekly assessments may also be affected.

(2) If the system is down, the bill/notice can then be generated through the PC application and the assessments can be loaded on the ANMF system via the Load Old Accts/Transfer-in screen when the system becomes operational again.

1. Use of the "Load" screen will provide a posting indicator of "L" which will show that the assessment was input at a later date than the 23C date.

2. When finally establishing the assessment, the technician should input audit trail information to the Cross-Reference field as follows: "Notice generated prior to assessment due to system downtime."

3. The DBA should keep a permanent copy of the notice along with an account transcript as an audit trail of the alternative notice preparation.

(3) The PC based application should set up with a generic First Notice as follows:

1. Page length of 66 lines.

2. Margins set as Left 1 and Right 122 characters.

3. Header will be on lines one and two beginning at position 1.

4. Date of Notice set position 88 on line 3.

5. Taxpayer Identification position 88 on line 5.

6. DLN position 88 on line 7.

7. Form position 88 on line 9.

8. Tax Period position 105 on line 9.

9. Taxpayer Names and Address position 1 on lines 10 through 13.

10. Notice title position 36 line 16.

11. First paragraph position 5 lines 18 and 19.

12. Next paragraph position 5 lines 21 and 22.

13. Type of Assessment all capital letters at position 15 line 24.

14. Amount all capital letters at position 45 on line 24.

15. Use lines 25 through 30 for the literal and dollar amounts of each literal.

16. Third paragraph position 5 on lines 31, 32 and 33.

17. Fourth paragraph position 5 on lines 35 and 36.

18. Fifth paragraph position 5 on lines 38 and 39.

19. Enclosures begins at position 1 on lines 46, 47, 48, and 49.

20. Reply to starts at position 1 on lines 58, 59, 60 and 61.

21. MFT/Tax Period begins at position 55 on line 63.

22. Form 6335 begins at position 85 on line 64.

(4) The notices should be printed at pitch 15 or 16 depending on the printer's capabilities.

(5) The only fill in information should be as follows:

• Date of This Notice

• Taxpayer’s Identification Number

• Document Locator Number

• Form

• Tax Period

• Taxpayer Name and Address

  Note: The overflow line is only necessary if you have more than one line for the name or the address, otherwise it will not be needed).

• The literal (see Document 6209 for the TC literal)

• The corresponding dollar amounts for each literal

• MFT/Tax Period

(1) To reduce erroneous refunds from the Master File (MF) when an outstanding balance is present on the NMF, a transaction code 130 will be automatically generated to the Master File at the time that the Individual (SSNs) NMF account is established. A tape will systemically match the NMF account against the IMF primary social security number posted on Master File. If no match is found, an unpostable will generate. The CCA/42/43, Unpostable/Overage Listing, will be utilized to identify and resolve the TC 130 unpostables.

(2) The NMF function will conduct research of the NMF account and the Master File account utilizing the ANMF screen and IDRS command codes to search for an accurate SSN to post the transaction code 130. A transaction code 000 may be required to establish an entity for the Master File secondary spouse. Exceptions:

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

2. Accounts with an Employer Identification Number (EIN) must be researched for a Large Corp indicator on IDRS using CC ENMOD or by ordering an entity transcript using CC MFTRA. If the indicator is present, notify the Technical Unit in the controlling campus that an NMF assessment has been made.

3. Accounts with a notation to "prepare Form 3177" on Form 5403, Appellate Closing Record, require the input of TC 130 on the Master File even if there is also a notation to "withhold collection." These accounts will generate a first notice. Follow the procedures in (5) for completing the Form 3177, then forward the form to CSCO for input to the Master File.

(3) A systemically generated freeze will not occur on NMF accounts that are established with an Employer Identification Number (EIN), and EPMF or EOMF accounts, or on the Master File account of a secondary taxpayer.

(4) If the Master File Entity freeze (V-) is needed on a Master File TIN or other than the original primary TIN, then follow manual processing procedures when a first notice is generated from the ANMF system.

(5) Using both the Daily and Weekly NMF Accounts Flagged for Notices/TDAs list as the source document, prepare Form 3177 for each NMF account that has a first notice issued.

1. Enter the pertinent information in the boxes for initiator, Date, Taxpayer Name, Taxpayer address and TIN.

2. Enter transaction code 130 in the box marked "Other."

3. Following other, list the DLN from the NMF account and enter NMF Liability.

4. Also list the MFT and Period Ending. If the NMF account carries a "Dummy" period ending, list the "True" period ending.

5. Fax the Form 3177 to CSCO for input to the Master File to the following fax numbers:

Form 3177 - EIN	Form 3177 - SSN
PSC CSCO/Collections Fax - (855) 235-6786	ATSC/CSCO Fax - (855) 233-8554

Note: Form 3210, Document Transmittal, must be utilized to forward any Form 3177 to CSCO.

6. Monitor the account until the TC 130 posts on IDRS.

(6) Quarterly using the daily and weekly NMF Accounts Flagged for Notices/TDAs listings a mandatory review must be conducted to ensure that both the systemic and manually prepared TC 130s (V- freezes) are posting on Master File.

1. The NMF Accounts Flagged for Notices/TDA listings should be utilized to conduct this review.

2. A 10 percent review of all NMF Accounts Flagged for Notices/TDA listings for the quarter must be done to ensure that the TC 130s are posting and the freeze (V-) is set on Master File.

3. Report outcome of quarterly review to Headquarters, no later than two weeks after the quarter has ended. For example, if the quarter ends in March the review would be due to Headquarters by 2 weeks into April. Management is required to sign review before it is submitted to Headquarters.

(7) Once a month, the ANMF system generates an NMF Accounts Purged to Closed listing when an NMF account becomes a zero-balance account. Use this listing monthly for researching both the NMF database for other outstanding accounts and the Master File to verify whether or not the Entity Freeze is still in effect. Accounts will be flagged if no other open NMF account exists. They will also be flagged if the account has a zero-balance due to a TC 400.

1. If the freeze is still on the Master File and needs to be removed (no other outstanding NMF accounts for that particular taxpayer and it is not in status 99), prepare a Form 3177 to have CSCO input a TC 131 to the Master File account. A copy of the NMF purged list can be used in lieu of Form 3177, clearly notating each TIN, input TC 131.

2. If the freeze is no longer on the Master File account, no further action is required.

3. Check to ensure that the NMF account on the Purge to Close List is not a zero-balance due to a transfer (TC 400). If the account is on the Purge List due to a TC 400, do not release the freeze; no further action is required.

4. Review accounts for an open TC 582. If open TC 582 is identified, see IRM 3.17.46.12.5(2).

5. Forward notated NMF Accounts Purged to Closed listing to:
   MSC CSCO/ Collection Operations
   Internal Revenue Service
   5333 Getwell Road Stop 81
   Memphis, TN 38118

Note: Forms 3177 prepared for reversal of a TC 130 can be mailed to this address or faxed to EEFax (855) 381-6520.

(1) The campus may choose to pre-search the system to confirm the existence of an NMF account to eliminate unpostable conditions. However, this is not always feasible due to the workload. Therefore, the following procedures apply even if pre-search is not accomplished and an NMF unpostable condition exists.

1. Research both the open, closed, and archived NMF accounts.

2. If no account is located on the NMF database, request research of the closed ULCs not loaded onto the database. If the ULC is located, input the ULC to the database through the Load Old Accts/Transfer-in screen.

3. If unable to locate the account, nullify and return the document(s) to RACS to be journaled into the 4430 Account, Unpostable Documents - NMF, while further research is conducted.

4. Maintain a spreadsheet or listing of documents journaled to 4430 Account for research and control purposes. Maintain an Open and Closed File.

(2) Prepare a file folder for each document and continue research for resolution. Annotate on 4430 Account History Sheet all actions taken. Listed below are guidelines:

1. NMF for delayed posting of assessment

2. MF (both IMF and BMF)

3. CC EMFOL and CC INOLE for entity information

4. IDRS for correct TIN

5. Unpostable (IMF and BMF)

6. Contact preparer of document for additional information

Note: Biweekly research must be conducted.

(3) Upon identifying the application for the payment, perform the following:

1. Prepare One-Sided Form 2424 to Debit 4430 Account (upper portion) and Credit (lower portion) taxpayer's account for information purposes.

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

2. Route both One-Sided Form 2424 and original payment document to RACS for journalization.

3. Annotate spreadsheet with the journal number for proper audit trail.

4. Maintain One-Sided Form 2424, history sheet, and attached journal in Closed 4430 Account File. Retain records in accordance with Document 12990, Records Control Schedules.

(4) If no account or Closed ULC is located after 45-days, request that RACS complete the following actions:

1. Subsequent payments and other credits will be journaled from the 4430 Account to the 4620 Account, Unidentified Remittance File. Excess Collections, Account 6800, will be used for items over one year old (Refer to Excess Collections File, IRM 3.17.220). Prepare Form 2424 to Debit 4430 Account and Credit 4620. Prepare a One-Sided Form 2424 to Debit 4430 Account and Form 8758 to Credit 6800 Account.

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

2. Debit items found applicable to Other Receivables will be journaled from the 4430 Account to Account 1510, Other Receivables, Regular, in accordance with IRM 3.17.64, Accounting Control General Ledger Policies and Procedures. Prepare Form 2424 to Credit 4430 and Debit 1510 Accounts.

3. Attach 4430 Account History Sheet supporting completed research to the documents as backup for these journaled items.

(1) NMF will input the subsequent transaction(s) to the NMF account through the Enter Sub Pays option from the Processing menu. See IRM 3.17.46.13.13, Subsequent Transactions.

(2) If the subsequent transaction appears on the Unpostable Transaction List, see IRM 3.17.46.13.11, Unpostable Corrections, for resolution.

(3) If the account is in 22 status (TDA) or the TDA account is in status 89, then enter the subsequent transaction(s) on IDRS using the generated "IDRS Update List" (The NMF Subsequent Transactions to Accounts in TDA Status list).

(4) After posting subsequent transactions to the NMF account, the ANMF System will generate various Recaps. Recaps will not be systemically generated for subsequent transactions when no journal action is required.

(5) Each month, the ANMF system generates the "NMF Postings for the Month of: MM/DD/YYYY" list which also contains subsequent transactions (with the related posting indicator) that have posted to the database.

(1) Documents for payments received in the campus will be sorted at the time of deposit by tax class.

(2) When the Accounting package is received, RACS will enter the Form 813 information on the ANMF System using the Form 813 Block Control screen and forward Form 813 with the related documents to NMF for input to the NMF Account through the Enter Sub Pays option from the Processing menu.

(3) On delinquent status accounts, use the "IDRS Update List" for control and input to IDRS after posting transaction documents to the NMF account.

(4) If the payment was intended for Master File but is numbered as an NMF item, process as instructed in subsection on Service Center Control File. See IRM 3.17.46.3.7

(5) If the payment is identified as applicable to an account in another campus, do not remove the item from the Form 813 total. This will be journalized as a credit in transit to other campuses.

(1) NMF receives various documents which affect the status, entity, or balance of an NMF account. These include abatements of tax, penalty or interest, debit or credit transfers, account transfers, dishonored checks, statute extensions, etc. This is not an all-inclusive list.

(2) All documents coming to NMF for posting MUST have proper supporting documentation attached in accordance with IRM 3.17.46.8.

(3) RACS may receive Form 5147, IDRS Transaction Record, or other various documents.

(4) If the document is not numbered, RACS will ensure that a DLN is assigned to the document compatible with the related transaction codes. All transactions input to the database must have a valid DLN.

(5) RACS will prepare Form 813, input the information using the Form 813 Block Control screen and forward the Form 813 and the related documents to NMF. Form 813 prepared for entity changes or accounts transferred-in are not input through the Form 813 Block Control screen.

(6) NMF will input the transaction documents as follows:

1. If the transaction code is for an entity change, input using the NMF Entity Changes screen.

2. If the transaction code was pre-journalized for other than "daily assessments," then the transaction must be input through the Load Pre-Journaled Transaction screen.

3. All other transactions will be input using the Enter Sub Pays option from the Processing menu.

(1) NMF advance payments can be received when the Examination Division has determined an NMF deficiency and secured the payment prior to the assessment.

(2) Chapter 13 bankruptcy advance payments (Form 3244) on Trust Fund Recovery Penalties for individual taxpayers should be processed as Master File advance payments on the IMF Penalty File using MFT 55.

(3) Initial processing of NMF Advance Payments is external to the ANMF system and pre-journalized to Account 4610, Unapplied Advance Payments. This account should only contain payment documents that are prepared by Examination except for the IMF $100 billion taxpayers (See IRM 3.17.46.6.4). All other payments must be journaled immediately to Account 4430.

(4) Form 3244A, Payment Posting Voucher—Examination (part 1) will be received by RACS in the Accounting Package and will be used as the payment source document as required.

(5) RACS will journalize the payments as instructed in IRM 3.17.64, Accounting Control General Ledger Policies and Procedures, and forward the Form 3244A to the person who maintains the 4610 Account.

(6) The advance payment file is the subsidiary for general ledger Account 4610, Unapplied Advance Payments.

1. Maintain a spreadsheet or listing of documents journaled to Account for research and control purposes

2. Prepare a file folder for each document and continue research for assessment. Annotate all actions taken on 4610 Account History Sheet. Listed below are guidelines:
   • NMF for delayed posting of assessment.
   • MF (both IMF and BMF).
   • EMFOL and INOLE for entity information.
   • IDRS (NAMES and NAMEE) for correct TIN.
   • Unpostable (IMF, BMF, and ANMF).
   • Contact preparer of document for additional information or disposition of payment.

(7) The source documents will be maintained until the applicable assessment is received or the originator instructs that the advance payment be refunded.

(8) Each quarter, March, June, September, and December contact the preparer of any Form 3244A in 4610 Account aged for six-months or more.

Note: Notate all actions taken on a 4610 Account History sheet maintained in the case file.

1. Follow-up with the preparer if no response is received within 30-days from the date of original contact.

(9) Upon identifying the application for the payment, perform the following:

1. Prepare One-Sided Form 2424 to Debit 4610 Account (upper portion), and credit (lower portion) taxpayer’s account for information purposes.

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

2. Route both One-Sided Form 2424 and original payment document to RACS for journalization.

3. Annotate spreadsheet with the journal number for proper audit trail.

4. RACS will input the credit side of Form 2424 into the ANMF System using the Form 813 Block Control screen and forward to NMF for processing.

5. NMF will input the credit transfer (Form 2424) transaction through the Enter Sub Pays option from the Processing menu. Routine accounts maintenance will apply.

(10) Source documents supporting input to the ANMF System will be forwarded to Returns Files after the monthly balancing is completed.

(11) If no assessment is required, the initiator will give instructions on the disposition of the credit. The advanced payment will not be input to the ANMF System, but will be processed external to NMF.

(12) The closed advance payment file supports the closures for the 4610 Account.

1. Maintain One-Sided Form 2424, history sheet, and attached journal in Closed 4610 Account file.

2. Retain records in accordance with Document 12990, Records Control Schedules.

(1) When a manual refund is required on dual status returns, non-resident alien returns and foreign corporation, withholding tax is computed on the allowable interest using 30 percent, or the treaty rate, as applicable. This amount of withholding tax is subtracted from the net amount of the refund in accordance with instructions in IRM 3.17.79, Accounting Refund Transactions.

(2) To provide an audit trail for the amount of withholding tax withheld until the withholding agent's return is filed, the money will be transferred to the 4610 Account, Unapplied Advance Payments. The withholding agent is the Commissioner.

(3) A Form 3809, Miscellaneous Adjustment Voucher, will be prepared to debit the 6520 Account, and credit the NMF account for the amount of interest withheld.

(4) A Form 3809, Miscellaneous Adjustment Voucher, will be prepared to debit the NMF account, from which the refund was issued, and credit the 4610 Account. A Form 5205, Information About Your Income Tax Refund, (part 2) will be attached to the back of Form 3809. In accordance with IRM 3.17.79.3.13, Non-Resident Alien and Dual Status Refunds, these transactions will be monitored monthly until all transactions have posted.

(5) A Form 3809 will be prepared to debit 4610 Account, and credit the withholding agent’s account, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, using a TC 700 for the lump sum of all interest withheld each month.

(6) Maintain a spreadsheet of all interest withheld and provide Ogden RACS team with this spreadsheet at month end.

(7) Retain records in accordance with Document 12990, Records Control Schedules.

(1) RACS will receive Form 4830, IDRS Multi-Purpose Posting Document, generated through IDRS. Form 4830 may include a TC 280, Dishonored Check Penalty.

(2) RACS will prepare Form 813 and establish control through the Form 813 Block Control screen. Forward Form 813 and documents to NMF for processing.

(3) NMF will input the dishonored check transactions, TC 611 or TC 671 and TC 280 (if applicable), through the Subsequent Transactions screen. If the account is in TDA status (status 22 or 89), the transaction item will appear on the system generated NMF Subsequent Transactions to Accounts in TDA Status (IDRS Update List). This list will be used to post only the transactions to IDRS for NMF accounts already established on IDRS.

(4) The RACS SCCF Summary will be generated after the transactions post to the database.

(5) Dishonored check transactions will go unpostable when the NMF account is not currently on the open database. Research is required to identify the type of action needed to establish an open account. If the account is on the closed database:

1. The posted transaction will prompt the system to resume notice activity or reissue a TDA if the account was in TDA status.

2. If the dishonored check is for an NMF account where no ULC was prepared, the dishonored check function will secure the original return and request establishment of an account. These accounts will be loaded into the system in status 21 using the Load Old Accounts/Transfer-in screen.

(1) Form 5147, IDRS Posting Voucher, are generated daily with entity changes. It is important that all changes are received in NMF daily for posting. Verify receipt of all Forms 5147 by cross checking the count against the IDRS Block List document count (DOC–CNT).

(2) Doc. code 63 is used for various entity changes including address information or name change.

(3) NMF TIF transcripts for entity changes (NMF ENT CHG) are generated weekly. These transcripts should be used to ensure that all entity changes are received and posted to the NMF account. The transcripts may be substituted for missing Forms 5147 for posting purposes.

(4) NMF will receive requests for TIN changes on established IDRS NMF accounts. Refer to IDRS Terminal Input 2.4 for input instructions.

(5) RACS will NOT input the Form 813 information through the Form 813 Block control screen. However, RACS will still forward Form 813 and Form 5147 to NMF for input using the NMF ENTITY CHANGE screen. See IRM 3.17.46.13.14, Processing Entity Changes, for processing instructions.

(6) Form 2363 can also be received for entity changes not on IDRS. RACS will prepare Form 813.

(1) An account transcript will be generated for all TDAs except those accounts input through the "daily" screen.

1. Input the entity and module information to IDRS using the account transcript. Do not enter TINs or account types i.e., bankruptcy, etc., into the second name line address field of IDRS-NMFTM. This superfluous data is being captured on the TDA notice which ICS generates.

2. Be sure to input all the notice dates shown on the transcript.

(2) "Request Completed" will provide the validity checks to ensure the account information posts to IDRS. After entry, if a mismatch is discovered which cannot be corrected on IDRS, (incorrect TIN, MFT, DLN, Tax Period) forward a request to remove the module(s) to the Campus User Support function. All requests must include an IDRS print of the incorrect input, copy of the transcript and a clear reason for the requested action. All requests for removal of a tax module(s) must be approved and signed by the first line manager. Ensure that the module balance matches the account. If not, recheck your entries.

(1) Subsequent transactions are input to IDRS using the "NMF Subsequent Transactions to Accounts in TDA Status List" as the source document.

(2) Input transactions to IDRS. See IRM 2.4.14, IDRS Terminal Input Subsequent Transactions. Payments and Daily Area Office Remittance (DAR) transactions will still be input by the field. Their processing is unchanged and is separate from real-time processing.

(1) The NMF month end cut-off will be the last working day of each month. The RACS month end cut-off will be the 2nd day of the new month after the NMF cut-off. Most of the reconciling items will be "daily assessments" which are pre-journalized. RACS will provide these pre-journalized items to NMF on a copy of Form 8166 for balancing purposes.

(1) On October 25, 2020, ANMF converted from Oracle forms to Java software. This changed the appearance of the Research screens and the method in selecting the menu options by using the drop-down menu options. The TAB key and/or mouse are used to navigate from field to field within the screen.

(2) Enter the ANMF System.

(3) When the MAIN menu appears, use the drop-down to choose your role. All users have research role. Other roles are specific to the needs of the employees.

(4) Use the menu options at the top of the screen to determine the correct action needed. Under the “Research” tab are the options to research assessments, entity changes, index cards, notices, status changes and transactions. The assessment request results will also provide sections for each of the options except for index cards. Currently a TIN is required for research.

1. To query the EIN field, enter the EIN.

2. To query the SSN field, enter the SSN.

3. Enter the appropriate hyphens between numbers for the SSN, and EIN formats. When completed, click the "Submit" button.

Note: Click the TIN hyperlink to get to the main section of the account. Click the hyperlinks to view Entity, Notices, Transactions, History, etc., of the account.

(5) Research can be done on any of the options under the research menu, but all require the input of a TIN at this time. Using the assessment option will provide all of the available information through links.

(6) Additional database research screens are as follows. Each of the options listed below will prompt a screen which is self-explanatory, and research can be performed on any field. These options are located on the NMF Processing menu and are only available on the Data Entry role at this time.

1. Research RACS Recaps.

2. Research Processed F813 Cur Month.

3. Research Posted Transactions Cur Month.

4. Processed Nullify Up Requests.

(7) To logout click the "LogOut" option at the top of the screen. This will take you to the IRS Source home page and then the "X in the upper right-hand corner to exit the Intranet".
You are logged out of the system.

(1) Use the following research tools to balance between RACS and NMF each month:

• Current month's General Ledger File (GLF) from RACS—generated by status.

• Last month's Trial Balance.

• Current month's Trial Balance.

• Current month's Recap of Journaled RACS Summaries from the NMF system—includes status changes. (figure 3.17.46-20)



• Current month's RACS Daily Posting Summary (DPS).

• ANMF database transaction file.

• Any supporting documentation for pre-journalized items (Form 8166; memo; etc.).

• NMF Postings for the Month of: __

(2) The GLF is the controlling document for balancing. The Subsidiary Trial Balance must balance to it.

(1) Receive the GLF from RACS weekly.

(2) Using the NMF RACS Summary book, identify the SSN/EIN and money amount of each journal printed on the GLF.

(3) Check the GLF and RACS summaries for accuracy in three categories:

• Account status

• DR/CR

• Money amount

Note: For discrepancies, request status corrections, DR/CR corrections, and/or money amount corrections and forward to RACS for journal corrections.

(4) If all journals are correctly identified after matching the RACS summaries to the GLF, no further action is necessary until you receive the following week's GLF.

(5) If all journals are not identified by a RACS summary or supporting documentation, use the DPS (Daily Posting Summary) book in the RACS unit to identify the source of a journal.

(6) All journals should be identified on each GLF weekly.

(1) Receive a Trial Balance listing printed on the last day of each month. Status 21 and 58 are combined on the trial balance; status 14, 22, 24, 53, 60, 71, 89 and 99 are shown separately on the trial balance.

(2) To determine if RACS and NMF agree, compare the GLF sum of the following to NMF: add the DR amount cumulative and subtract the CR amount cumulative. If that total matches the "bottom line" of the NMF trial balance, then no further balancing is needed. If they do not agree, then further balancing (reconciliation) is needed.

(3) If the totals do not agree, then:

1. Review previous month's GLF cover sheet and any reconciliation sheet prepared to find and verify correction journals for the month.

2. Using the previous month's trial balance and the current month's trial balance, check each posting identified on the GLF to see that the balance is correct. For a good working trail, write the journal number of each posting beside the TIN on the trial balance. If the account does not balance when all steps are complete, this will aid in identifying each posting.

3. Check the posting date on the current month's trial balance to ensure that each posting is identified by a journal number. If a journal was not received for a posted item, it will be treated as a reconciling item on the front cover sheet until the journal is received.

4. An item by item check between last month's and the current month's trial balances may be necessary if steps (a), (b) and (c) do not resolve the discrepancy. If you are still not balanced, then continue.

(4) Check the NMF status change Summaries or the Research screen for Status Change to determine if an account status has changed.

1. A TC 400 (transfer out) with the account balance will generate a status change to 99.

2. A TC 402 with an account balance will reactivate the account to the previous status.

3. A TC 470 (TP claim pending) will generate a status change to 89.

4. A TC 471 (reverses TC 470) will change an account status from 89 to the previous status.

5. A TC 472 (used to reverse erroneous TC 470) same as TC 471.

6. A TC 480 (OIC pending) generates a status change to 71.

7. A TC 481 (OIC rejected) will change an account status from 71 to the previous status.

8. A TC 482 (OIC withdrawn) same as TC 481.

9. A TC 483 (correction of erroneous TC 480) same as TC 481.

10. A TC 530 with zero money amount (write-off to 1830 acct.) will generate a status change to 53.

11. A TC 530 with a money amount is used to correct an account balance in Account 1830 only.

12. A TC 531 (reversal of TC 530) will change an account status from 53 to the previous status.

13. A TC 520/524 will generate a status change to 89.

14. A TC 521/525 will reactivate the account to the previous status.

15. A TC 971 AC 63 will change an account status to 60.

16. A TC 972 AC 63 will change an account status from 60 to the previous status.

(5) If all is balanced, go to step b. If conditions of step b are met, no further balancing is needed. If not, continue.

1. If a TC 531 is input with a zero-money amount, then an account status change is generated from 53 to the previous status and a TDA is reissued.

2. A TC 531 input with a significant (not zero) money amount should equal the money amount of the original TC 530 less any credits. It is used to reactivate a pre-RACS 53'd account and must have a credit posting and a journal.

3. A TC 532 with zero money amount (used to reverse erroneous 530) will generate a status change to the previous status.

4. Research the new status for the journal number.

(6) An additional tool in balancing is the Daily Posting Summary (DPS) book located in the RACS unit. It lists all journals prepared and what status and accounts are debited and credited.

1. The DPS book is set up in journal date order.

2. Journal numbers and amounts are shown.

3. This will also show the original journal number of a source document. If the missing journal is not located on last month's GLF cover sheet and there is no RACS summary for the journal number and no status change, then the DPS may be useful to find the source document that caused the RACS change. Follow the audit trial until you locate the journal or discover that a journal needs to be prepared. If after researching the DPS you remain out of balance, then continue.

(1) Review by SSN/EIN each entry on the current and last month's trial balance to resolve any balance discrepancy. List the discrepancies by SSN/EIN and the action needed to resolve each difference on the GLF cover sheet.

(2) If last month's balance on any SSN/EIN does not match the new balance, and a journal is located that changed the money amount, annotate the NMF trial balance beside the SSN/EIN with the journal number. This will help you next month when the journal number adjustment posts.

(3) Research entity changes to see if the SSN/EIN changed.

(4) If you are still out of balance, then continue.

(1) If all indications show that a RACS Recap is not received, then research the system through the Research screen to see if a RACS Recap was generated. The Research transaction section will have a posting indicator field that contains the following indicators:

Note: The ANMF SC RECAP summarizes the data from the NMF or RACS Recaps for batch journalization 141 and 142. See IRM 3.17.46.3.4 (4) The NMF Recaps are linked to the ANMF SC Recap by the 23C Date, DD portion of the Cycle, and print date.

1. "R" will confirm the transaction posted on ANMF and a RACS Recap generated.

2. "G" a generated transaction (TC 531) is posted to the account. No Recap is generated. This account met TDA cumulation and the account status has changed.

3. "T" will confirm that a transfer-out (TC 400) RACS Recap was generated for that transaction.

4. "L" will confirm that a transaction was input with a pre-journalized account through the load screen or through the Pre-Journaled Transaction screen by the DBA. A 99999–99999 account transcript is produced.

5. "P" will confirm that a pre-journalized transaction was input and posted to ANMF, and that no RACS Recap was generated.

6. "S" will confirm that a transaction posted to change the status of an account.

(2) Search the NMF database using the taxpayer's SSN/EIN and check each "Detail" file by clicking the Transaction Details link of a taxpayer's record (not the entity portion) for the missing money amount.

(3) Annotate the GLF cover sheet for action pending on any of the above. There may be reconciling items in either NMF or RACS.

1. NMF—a journal number on a general ledger sheet but no entry to the ANMF system.

2. RACS—an entry on the NMF trial balance but no entry on the general ledger sheet.

(4) If you are still unbalanced, go back to the beginning of this section (TRIDOC) and retrace each step until you are balanced.

(1) After all accounts are reconciled and all accounts are in balance, a monthly report is prepared for transmission to the Headquarters.

(2) NMF will forward the month end balances to RACS for preparation and transmission of the Form 3997 to the Headquarters. Retain a list of all reconciling items to be used in the GAO audit. The reconciling items must include the TIN, MFT, Period Ending, transaction codes and amounts, DLN, Recap Summary Number for Post Journaled transaction codes or the Journal Number for Pre-Journaled transaction codes, and the reason it is a reconciling item. The list may be maintained using local procedures, i.e., personal computer (PC).

(1) In January 1999, program changes were made to the ANMF for the computation of Failure to Pay Penalty and Interest. They are as follows:

1. Failure to Pay (FTP) penalty and interest on the FTP penalty will begin from the date of an unpaid assessment. If the liability on an account is completely satisfied and a subsequent assessment is made, then FTP and Interest on the FTP penalty will be computed from the date of the unpaid subsequent assessment.

2. FTP should not exceed 25 percent on any given NMF account.

3. On accelerated notices where the Fourth Notice and TDA are generated simultaneously and have the same date, FTP and Interest will compute to the Fourth Notice Date.

4. A 10 business day, FTP and interest free period will apply to any payment made to an NMF account with a liability equal to or over $100,000.

5. A 21 calendar day, FTP and interest free period will apply to any payment made to an NMF account with a liability of less than $100,000.

6. FTP will compute 1 percent at the end of the month after the Fourth Notice.

7. FTP computation will consider previous credits with a transaction date prior to the unpaid assessment transaction date.

8. Interest computation criteria:

(2) For notices issued prior to January 1, 1997, the system will review accounts in notice status which are paid more than 17 calendar days after the date of first notice and compute accrued penalty and interest due.

(3) Notices issued after December 31, 1996 extended the interest—free period on payments received after the notice and demand to: 10 business days on accounts $100,000 and over ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡,

(4) On accounts under $100,000 the period is extended to 21 calendar days ≡ ≡ ≡ ≡ ≡.

(5) If the accruals are ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, the system will generate the first notice Form 6335 and update the penalty and interest notice date. The notice will include the standard statement for penalty/interest accruals.

(6) If additional penalty and interest is not paid within 45-days, the system will generate a penalty/interest review transcript. This transcript will only be generated once, and the account will then be systemically purged.

1. If the accruals do not meet TDA criteria and are ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ consider the account closed.

2. If the accruals are ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ assess the accruals and bill the taxpayer, using the Alternative Notice System, then input a TC 530 cc 09. Document notice issuance in history.

3. If the accruals are ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ assess the accruals and bill the taxpayer, using the Alternative Notice System, then input a TC 530 cc 39. Document notice issuance in history.

4. If the accruals meet TDA criteria, prepare Form 5734 with a doc. code 54 or Form 3465 to assess the accruals indicated on the transcripts. Although the transcript will show a balance due of zero, the interest accrual section of the transcripts will show the amount to be assessed.

(7) Weekly, accounts scheduled for issuance of Notices/TDAs which contain reversal of erroneous abatements (TC 860 unreversed) will generate an Accounts Maintenance transcript and an incorrect notice will be generated without any penalty and interest computations. These notices must be found, via the transcript, and destroyed. Penalty and interest must be manually computed for these accounts and a notice reissued.

(8) Weekly, an Accounts with Reversal Code Problems list will be generated for accounts scheduled for notice/TDA issuance that contain transactions loaded onto the database without a transaction code to reverse. Penalty and interest must be manually computed, and a manual bill must be prepared.

(1) The Accounting Branch is responsible for the computation and assertion of penalty and/or interest under the following conditions:

• NMF accounts paid while in notice status.

• Issuance of 4th notice, and issuance of TDAs for NMF accounts requiring entry of accrued penalty and interest.

• Refund of outstanding credit balances on NMF accounts.

(2) The system will compute and assess penalty and interest for all NMF accounts, and NMF credit balance accounts. See IRM 3.17.46.11.4

• Unreversed TC 860.

• Any unmatched reversal transaction code that carries money.

• Abusive Tax Shelter assessments involving 120 percent interest.

(3) Abusive Tax Shelter assessments are identified with Reference Code 221, Tax Motivated Transaction Amount and Reference Code 222, Tax Motivated Interest Amount which reflects the use of 120 percent interest in the TC 340 amount.

1. If the assessment contains one of these two Reference Codes, input "120% Interest" in the Cross-Reference field when establishing the account.

2. Interest accruals on these abusive tax shelter assessments must be computed manually.

(4) At times there may be circumstances when a manual computation of penalty and/or interest accruals may be required, such as:

• Armed Forces Combat Zone— IRC 7508. A posted TC 502 suspends the penalty and interest.

• 1 percent penalty start date if other than Fourth Notice.

• Large Corporations require additional 2 percent interest.

  Note: C-corporations owing taxes over $100,000.00 and not full paid within 30-days of the notice (23C date) may get charged an additional 2%. See IRM 20.2.5.8, Large Corporate Underpayment (LCU).

• Interest rate ordered by Tax or Bankruptcy Court which differs from IRS normal rate.

• Netting of interest resulting from a deficiency assessment and credit interest paid on a prior refund.

• An abatement posted to adjust the tax liability only and not penalty and interest.

• Abusive Tax Shelter– 120% Interest

• Reversal of Erroneous Abatements– TC 860.

• Unmatched reversal transactions with money.

• Accounts where prior credits are transferred-in to an account thereby making a penalty and interest calculation incorrect.

Note: See IRM 20.2.8.6, Reasons for Restrictions, for a list of additional reasons interest needs to be manually computed.

(5) Exception Code "M" and "U" are available for input through the Original Load screen or Manual Interest and Penalty Update screen.

(6) The Accounts Flagged for Notice/TDA Listing now includes an Exception Code field. Accounts identified with the "M" or "U" will require manual computation of interest and/or penalty accruals and manual issuance of the 4th notice and/or TDA. The exception code "M" accounts appearing on the list must be worked within 5-days of receipts.

(7) Upon calculation of interest and/or penalty, access the Manual Interest and Penalty Update screen and enter Exception Code "U" to update the penalty and/or interest accruals. See IRM 3.17.46.7.5 (4).

(8) Manually issue the 4th notice/TDA through the Reissue Notice screen.

(9) After issuance of the notice/TDA, exception code "M" must be replaced so that it will appear on the future Exception Code "M" Listing. See IRM 3.17.46.11.3, Exception Code "M" Listing.

(1) The Exception Code "M" List will be generated one week before the end of the month. The List will contain all NMF accounts, excluding status 53, that contain exception code "M". These accounts will require manual update of penalty and interest accruals to the ANMF database.

(2) After calculation of accruals is complete, enter through the Manual Interest and Penalty Update screen.

(1) The Credit Balance Account Listing which generates weekly is a management tool which can be used for monitoring of inventory, detecting processing trends, and ensuring timely disposition of Credit Balance Accounts.

1. The report will sort by TIN order. The ANMF Account Balance date of the credit will be reflected as well as the number of days aged in the "Days AGE" column. A weekly and cumulative total number of accounts are provided.

2. NMF Technician should utilize the report to facilitate research of credit balances. Actions for disposition of credit must be annotated in the Action to be Taken column of the report.

3. Maintain annotated copy of the report for the official file.

(2) The system will produce a credit balance transcript the first week the account becomes a credit balance. Subsequently, the system will produce another credit balance transcript 26 cycles later. After the account is in credit balance for one year, a credit balance transcript will be generated each week. Review all credit balance transcripts to assure that all prescribed actions are taken.

1. Verify that all penalty and interest accruals due on the account are assessed. Compute and assess all penalty and interest accruals due on the account. If the new balance due is ≡ ≡ ≡ ≡ ≡ ≡ ≡ input a TC 530 CC 09. If the accruals are ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ assess the accruals, bill the taxpayer using the Alternative Notice System.

   Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

2. Complete research is required on all credit balances to ensure proper offsets and refunds are made. Complete research includes both NMF and Master File. NMF research includes open accounts, closed accounts, and the History sections of each. The IDRS Command Codes On-Line Entity (OLE) and Corporate Files On-Line (CFOL) are recommended as excellent research tools.

3. If a known condition does not prevail indicating that the credit is proper, such as a payment with Form 7004, Application for Automatic Extension of Time to file Certain Business Income Tax, Information, and Other Returns, for Political Activity Cases, research NMF and Master File to determine if a balance due exists. If an open account is located, transfer the credit to the NMF account first. If you apply the credit to another NMF account, add an explanation of the transfer to the History section of both accounts. If no open NMF account exists and an open balance exists on the MF, then transfer the entire credit to the MF account. For transfers within NMF, transfer only up to the amount in debit plus accruals. Refund any excess credit via the manual refund procedures.

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

5. If research discloses that the account for which a payment was intended is a zero balance, 53'd ULC, See IRM 3.17.46.12.1, Currently Not Collectible Accounts.

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

7. If no outstanding or potential (adjustment pending) liability exists, refund the overpayment. Prepare Form 3753 or Form 5792 as instructed in IRM 21.4.4.5, Preparation of Manual Refund Forms. Indicate IRM 3.17.46.11.4, Credit Balances- Refund Returns in Section IV - Other remarks of Form 3753 or in the remarks section on Form 5792. Forward to the Manual Refund function for DLN numbering, schedule number and schedule date. RACS will forward Form 3753 or Form 5792 with Form 813 to NMF for input of the TC 840 and TC 770 to the NMF account.

Note: Ensure that history item is input on same day that the Form 3753 or Form 5792 is prepared.

(3) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See IRM 3.17.46.12.3 Form 2007 should only be prepared if manual input of TC 607 is necessary.

1. Forward Form 2007 for numbering and preparation of Form 813.

2. Forward Form 2007 and Form 813 to RACS for input through the Form 813 Block Control screen.

3. RACS will forward Form 813 and Form 2007 to NMF for input of the TC 607 to the NMF account through the Subsequent Transaction screen.

(4) If an account is in TDA status and a credit balance remains after the cycle balancing, contact the Area Office to confirm posting; if proper and no additional liability is disclosed, refund the overpayment.

(5) If unable to apply or refund the overpaid amount as instructed above, transfer the credit to the Excess Collections Account 6800 (money held by IRS one year or more) or the Unidentified Account 4620 (money held by IRS less than one year), as appropriate. Prepare Form 8758/ Form 2424 using TC 820 for debit items and a TC 700 for credit items and send for numbering, batching, blocking, etc.

(6) If the credit balance is to be refunded, compute interest on the amount as required by IRM 20.2.4, Overpayment Interest.

1. Prepare Form 5792 (Form 3753 if not on IDRS) entering amount of credit balance, interest, and total amount to be refunded; secure the refund date and enter during preparation. Input Form 5792 to IDRS and forward to the refund function. RACS will forward Form 5792 and Form 5147 with Form 813 to NMF for input of the TC 840 and TC 770 to the NMF account.

Note: Prepare Form 5792 as instructed in IRM 21.4.4.5, Preparation of Manual Refund Forms. Ensure that history item is added to the account on the same day of the preparation of the Form 5792.

2. Prepare Form 3753 for an account not on IDRS. Forward to the Manual Refund function for DLN numbering, schedule number and schedule date. The Form 3753 and Form 813 will be forwarded to RACS for input to the Form 813 Block Control screen.

Note: Prepare Form 3753 as instructed in IRM 21.4.4.5, Preparation of Manual Refund Forms. Ensure that history item is added to the account on the same day of the preparation of the Form 3753.

3. If a refund check is cancelled and the credit re-established on the NMF account and the check is to be re-issued, prepare Form 3753 or Form 5792 in the amounts posted to the account. Do not allow interest from the date of the first check to the issuance of the 2nd check unless specifically requested. Such as, a check being returned due to an IRS error, e.g., mailing it to the wrong address.

(7) Care should be taken to thoroughly document all actions taken on a credit balance account. Each separate action, from the time a Credit Balance transcript is first generated through final resolution of the credit balance condition, should be annotated on the History screen.

(8) Although a second and third credit balance transcript is generated every 26 cycles after the account originally becomes a credit balance, follow-up should be made with other functions (i.e., OIC, Appeals, etc.) that may be utilized to resolve the credit balance condition. Follow-up action should be taken at least every two-months. Also, be sure to input a history item when forwarding the Credit Balance Transcript to another function for resolution.

(1) An Erroneous Refund (ER) is defined as "any receipt of money from the IRS to which the recipient is not entitled." Examples of ERs are:

• Misapplied payments

• Incorrect refundable credits (TC 766)

• Multiple TC 840s for the same overpayment

• Refunds issued after expiration of the Statute of Limitations

• Refunds issued to the wrong taxpayer

(2) There are five types of ERs: Category A1, Category A2, Category B, Category C, and Category D. Only Category D ERs are processed by the Accounting ER Unit. See IRM 21.4.5.4, Erroneous Refund Categories and Procedures, for details on each category.

(3) NMF ERs initiated by the NMF unit are classified as Category "D" Non-Rebate ERs. The ER Statute Expiration Date (ERSED) for recovering the Non-Rebate ER is two years. The ERSED can be five years if the taxpayer deliberately or negligently caused the ER.

(4) If the ERSED (refund transaction date) for the erroneous refund has expired, then:

1. Notate in History section "ERREF Statute Expired" and IDRS if the account is controlled.

2. Prepare a history sheet documenting any action taken.

3. Prepare Form 12356, Erroneous Refund Worksheet, as instructed in Refund Inquiries, Erroneous Refunds IRM 21.4.5.6.2.

4. Attach a transcript of the account.

5. Complete Lines 1–10 of Form 14165, Erroneous TC 840/846 Report as instructed in Refund Inquiries, Erroneous Refunds IRM 21.4.5.5.6.2.

6. Forward the case to the Campus ER function.

(5) If the ERSED for the erroneous refund has not expired, then:

1. Use the IDRS CORRESPONDEX to send a 510C Refund in Error, Return Check letter. The letter will include: Date of Demand which is determined by adding 7 workdays from the input date of the letter; total amount of the refund that the taxpayer received; date of refund; amount that the taxpayer needs to return which may include interest; date the repayment needs to be received by IRS; contact person and telephone number (Customer Service, 1-833-972-8965).

   Note: See IRM 20.2.7.7, IRC 6404 (e) (2), Erroneous Refunds, regarding interest computation and payment grace periods.

2. Print a copy of the completed 510C Letter.

3. Notate in the History section "510C/TO/TP/ERRF."

4. Take action necessary to correct the erroneous refund (misapplied credit, duplicate credit, etc.).

5. If the erroneous refund was not the taxpayer's fault and transferring or reversing the credit creates a debit balance, input a TC 470. This will prevent the taxpayer from receiving notices for six-months. After six-months, the TC 470 will be removed, and the taxpayer will receive a notice.

6. Staple any documents substantiating the ER to the history sheet. The history sheet must contain all actions taken. Include the following information on the history sheet: erroneous refund category and cause; documentation of any action taken; print of the entity and tax period; printed copy of the 510C Letter.

7. Prepare Form 12356, Erroneous Refund Worksheet., as instructed in Preparing Form 12356, Erroneous Refund Worksheet, IRM 21.4.5.6.2.

8. Complete Lines 1–10 of Form 14165, Erroneous TC 840/846 Report, as instructed in Preparing Refund Inquiries, Erroneous Refunds 21.4.5.5.6.2.

9. Forward the case to the Campus Erroneous Refund function.

(1) A report entitled the "T/C 520 Listing" is available from ANMF. The report will identify all unreversed T/C 520s categorized by Area Office then TIN order (EIN first sort, SSN second sort). An age indicator will precede the TIN as follows:

1. The report must be produced at least once a quarter. Transcripts will not generate from these reports.

2. The "T/C 520 Listing" will reflect the total number T/C 520s posted to ANMF as of the current date.
   The original "T/C 520 Listing" will be emailed to the Insolvency Function via memo for validation of accounts with an age indicator (two asterisks) of one year or older.
   The appropriate function must respond by annotating the validation in the Action to be Taken column on the report. A response should be received within 30-days from the date of the "T/C 520 Listing".

3. Maintain annotated reports as an official file copy for audit trail purposes.

(2) If an adjustment is pending or a payment is not applied to an account in TDA/notice status, the assigned function or Campus personnel will suspend collection activities and input to IDRS a Collection Closing Code of 90 or 93 with a TC 470; IDRS will generate a Form 5147 for the transaction to the Kansas City Campus Accounting Branch.

1. Input a TC 470 with the closing code through the Subsequent Transaction screen of the NMF account. Include in the History section the employee number of the preparer of the Form 5147. If the account is not in status 89, the TC 470 will move it to status 89. If the account is in status 89, the TC 470 will update the Claim/Adjustment Pending files. This will facilitate the 90-day, 180-day, 360-day, and yearly follow-up transcript for the life of the statute. Send Form 5147 to Returns Files.

2. After 90-days have elapsed, a transcript will be generated to review the account and if the credit or adjustment has not posted, forward the account transcript to the originator. Update the History section that the transcript is sent and the date it was sent. After 180-days has elapsed a TC 472 will be systemically posted, and the account will move back to its original status.

3. If the account contains a TC 520, a transcript will be generated after 90-days has elapsed. Review each transcript to determine if the TC 520 is 90 or 180 days old. If the TC 520 is not one year old, the transcript may be destroyed. Use the 360-day transcript to prepare a contact memo to the local insolvency office to verify if the TC 520 is still valid. If Special Procedures states that there is no record of the TC 520, a memo to the appropriate Appeals office should be prepared requesting the same information. If Appeals states that there is no record again, prepare a Form 3177 to input a TC 522 to the system and resume normal Notice/TDA issuance.

(3) If the payment or adjustment does not satisfy the liability and the remaining balance exceeds normal TDA tolerance, prepare Form 3177 for input of TC 471. When TC 471 posts to IDRS the status will systemically change from 89 to status 26.

1. If the adjustment satisfies the liability within normal TDA tolerances, input TC 530 with closing code 09 through IDRS using REQ 77.

2. If the adjustment or payment has satisfied the liability, leaving a zero balance, and the account is in status 26 on IDRS, input a STAUP 12 so the account will drop off IDRS.

3. If the module is no longer on IDRS or is in status 12, take no terminal action.

(4) An account transcript will be systemically generated when an abatement of tax transaction code posts to an NMF account.

(1) TDA Eligible Accounts: If the account is eligible for TDA status i.e., notices issued, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ then the account will appear on the NMF ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for Notice/TDA Issuance list. If Compliance advises acceleration to TDA status, input of a "Q" in the Notice Type field of the Notice Correction screen to generate a TDA regardless of the debit amount. Prepare Form 3177 for input of the TC 530 with a zero-money amount to the NMF account. See IRM 3.17.46.7.9 (2)d.

(2) Notice Status Accounts: Notice status accounts (other than TDA) may be reported currently not collectible by Compliance Division. In these cases, Form 53, Report of Currently Not Collectible Taxes, and a copy of the taxpayer notice (other than the TDA) will be submitted to Accounting by Compliance Division for the input of a TC 530 with a zero-money amount to the NMF account. Compliance should provide the closing code on Form 53. If the closing code is not included on the Form research IDRS. If it is not posted to IDRS or entered on the form, contact the originator. Refer to instructions in (6) below.

(3) Tax Delinquent Accounts: Compliance will input TC 530 to IDRS which generates Form 5147 with doc. code 77. Kansas City Campus Accounting will input the TC 530 with a zero money amount to the NMF account to generate a status change to 53 for an account not presently in 1830.

(4) For notice status accounts to be reported as currently not collectible, receive various forms of notification (Form 53, Form 3177, or Memo).

1. Number the various documents and prepare Form 813 with the item count and zero money amount.

2. RACS will enter the Form 813 information using the Form 813 Block Control screen.

3. RACS will forward Form 813 and the related documents to NMF for input to the NMF account through the Subsequent Transaction screen.

(5) For delinquent status accounts (TDAs) on IDRS, a Form 5147 will be received. The Form 5147 will reflect a TC 530 with the account balance amount shown on IDRS. Input a TC 530 with zero money amount through the Subsequent Transaction screen.

(6) TDA accounts not yet on IDRS or were on IDRS but dropped off will be handled as follows:

1. Form 53, Report of Currently Not Collectible Taxes, will be forwarded to the numbering function. Review for signature.

2. The numbering function will number Form 53 with doc. code 77 and prepare a Form 813.

3. Forward Form 813 and Form 53 to RACS for input using the Form 813 Block Control screen.

4. RACS will forward Form 813 and Form 53 to NMF for input of TC 530 with a zero money amount to the NMF account through the Subsequent Transaction screen.

(7) If a TC 530 is input through the LOAD ULC–TRANSACTION screen or the Subsequent Transaction screen of the ANMF system, the cursor will automatically be positioned at the Closing Code field of that screen. If the Closing Code is not present on the transaction document, contact the originator.

(1) Reactivated—If the Area Office determines a 53'd account is now collectible they will submit a TC 531 with zero money amount (to activate account to its prior status).

(2) If an Entity Change Transaction Code 014 or 015 posts to an account currently in status 53, the system will generate an Accounts Maintenance transcript. This transcript will be used to determine if the TC 530 Closing Code was either an 03 or 12 (unable to locate or contact).

1. If the Closing Code is either 03 or 12, NMF will prepare Form 3177 with a TC 531 (zero money amount) for input to the account through the Subsequent Transaction screen. A re-issue TDA will be systemically generated.

2. If the Closing Code is other than 03 or 12, destroy the generated transcript.

(1) NMF accounts are systemically written off each week:

1. Small Credits (less than $1.00) - posts with TC 607.

2. Small debits (less than $5.00) - posts with TC 606.

3. Expired Collection Statute accounts except Statuses 71 and 89 are systemically written off to the 6600 account.

(2) Form 3177, Notice of Action for Entry on Master File, is used to write-off an NMF account to the 1830 Account.

(3) Compliance will send Form 53, Report of Currently Not Collectible Taxes to write-off an account into the 1830 account. Form 53 is numbered with a doc. code 77 and a Form 813 prepared. Review the following information prior to numbering:

• TIN

• Period ending

• MFT

• Taxpayer name

• Required Signature(s)

(4) Form 5147 is received from RACS with a Form 4861, NMF Block Summary. Input a TC 530 with a zero money amount to the NMF account through the Subsequent Transaction screen.

(5) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(1) ANMF systemically writes-off accounts on a weekly basis where the Collection Statute has expired 60-days or more.

1. The systemic write-off DLN is numbered with a 77 doc. code and blocking series 555.

2. A recap is created for each block of 50 DLNs weekly for the transactions being written off. The recap is titled "NMF Non-SCCF Recap." Print one copy of the recap to be maintained in NMF.

   Note: The ARECAP is used for batch journalization in lieu of the NMF Non-SCCF Recap. See IRM 3.17.46.3.1

3. The DBA will print a weekly listing of NMF accounts (including TIN, tax period, and CSED) that were systemically written off as an official file copy. This replaces the CSED listings for Status 22 and 53.

4. ANMF will permit manual input of TC 606 and TC 608 as well as the reversals TC 607 and TC 609 when absolutely necessary. This is not used to bypass the systemic process.

Note: Whenever there is a "previously" posted TC 606/607 or a TC 608/609 the ANMF system WILL-NOT systemically post another. If the account needs to be re-written off, then it must be done manually.

(2) Use the following procedures in the event a manual TC 607 or TC 609 is required:

1. Request NMF transcript and code transcript with TC 607 or TC 609 next to account balance.

2. Forward the transcript to the numbering function in Accounting for assignment of a doc. code 77 DLN and preparation of Form 813.

3. Forward the transcript with Form 813 to RACS for input through the Form 813 Block Control screen.

4. RACS will forward the NMF transcript and Form 813 to NMF for input of the TC 607 or TC 609 to the NMF account through the Enter Sub Pays option from the Processing menu.

Note: Complete the manual input of TC 607 and TC 609 on a Monday date and subsequent posting(s) to the account must be completed by Wednesday of the same week. This will provide ample time for posting to the account before systemic write-off.

(3) Use the following procedures in the event a manual TC 606 or TC 608 is required:

1. Request NMF transcript and code transcript with TC 606 or TC 608 next to account balance.

2. Forward the transcript to the numbering function in Accounting for assignment of a doc. code 77 DLN and preparation of Form 813.

3. Forward the transcript with Form 813 to RACS for input through the Form 813 Block Control screen.

4. RACS will forward the NMF transcript and Form 813 to NMF for input of the TC 606 or TC 608 to the NMF account through the Enter Sub Pays option from the Processing menu.

(4) Use the following procedures in the event a TC 604 or TC 605 is required:

1. Request NMF transcript and code transcript with the TC 604 or TC 605, and the amount.

   Note: A TC 604 is an assessed debit cleared therefore it doesn't always write-off the entire balance due on an account.

2. Forward the transcript to the numbering function in Accounting for assignment of a doc. code 77 DLN and preparation of the Form 813.

3. Forward the transcript with the Form 813 to RACS for input through the Form 813 Block Control screen.

4. RACS will forward the NMF transcript and Form 813 to NMF for input of the TC 604 or TC 605 to the NMF account through the Enter Sub Pays option from the Processing menu.

(1) Any NMF account which has had a zero balance for 30-days or more and no further penalty or interest accruals are due will be systemically purged to the Closed Files of the database. The DBA will print the NMF Accounts Purged to Closed list each month. This listing contains abbreviated information on those accounts which systemically purged. Send a copy of the Purge to Close listing to the Collection function for the input of a TC 131.

(2) Review "zero" balance accounts for an unreversed TC 582. See IRM 5.12.3.3.1(5) regarding the necessity of a manual lien release. Employees of functions with access to the Automated Lien System (ALS) will input lien release requests in these situations. For those functions that do not have access to ALS, determine the Centralized Lien Unit (CLU) lien release contact on the IRS Intranet by going to:

1. IRS Homepage, then click on

2. SERP, then click on

3. Who/Where, then click on

4. Centralized Lien Processing

(1) Submit requests for access via BEARS (Business Entitlement Access Request System). An email will be issued to the individual by the Systems Administrator after approval with a job aid and the link to the application. Use this link to initiate access. The system will automatically open with the research screen.

(2) To exit the screen, click the "LogOut" button. This will exit the application and return to the IRS Source page. .
Click OK and then the X in the upper right-hand corner to exit the Intranet.

(1) Request a "taxpayer friendly" transcript via ANMF in place of the handwritten Record of Account and sent to the taxpayer. Request the original transcript for internal use only. A transcript reflects an assessment and any subsequent transactions to that assessment and may not represent the entire liability for a particular tax period. An official NMF transcript, either the internal use only (figure 3.17.46-21) or the "taxpayer friendly" transcript should not be confused with a Certified Transcript.

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

(3) Provide NMF Account Transcripts of all open NMF accounts, not just the TDA in question, when a transcript request is received that is tax period specific.

(4) Select the Processing drop-down option from the main menu and then click the Request Transcript option from the Processing menu.

(5) The Request Transcript screen will appear. If you know the "primary key" (TIN, MFT, and Period Ending) you can request transcripts without first researching for the account, otherwise follow the instructions in IRM 3.17.46.13.3, NMF Research on the ANMF System. Transcripts are generated the day following input of your request and will be sent by NMF based on SEID.

1. Select Request Transcript from the Processing menu on the Research Assessment screen.

2. Use the TAB key or mouse to enter the required information in each field.

   Note: Use the drop-down in the type field to choose User Friendly, Certified, or Regular transcripts.

3. Click the Submit button on the screen to submit your request(s).

4. If the "primary key" entered does not match a primary key of an account on either the open or closed files of the database, you will receive the message "Account not on database—correct invalid entry".

5. When all requests are entered, click the LogOut button to exit or use the drop-downs on the menus for other options .

(6) All NMF Transcripts requested with an "R" will include the related History file for that account. These history items will be printed at the end of each transcript.

(1) The Research screens enable you to view a case file for an account. With Data Entry role access, researching the NMF database can be performed on any field on the screen. Research can also be performed on specific transactions and entity changes. Select the RESEARCH option from the drop-down menu.

1. Upon clicking the research option from the drop-down menu, the appropriate screen will appear.

2. The account status file will refine the search to a specific status (open, closed, pending, etc.) Use the TAB key or mouse to enter specific information such as TIN, MFT, Period Ending, etc., click the Submit button to commit the request.

3. To view the NOTICE STATUS, TRANSACTIONS, HISTORY SECTION, etc., click the appropriate hyperlink from the main assessment screen.

4. If the record has more than one screen of transactions, click the "NEXT" or "PREVIOUS" button on the bottom right of each screen view the related transactions.

5. When your research is completed, click the option for the next action or click Logout button to exit the application.

(2) HISTORY—can be queried by using the procedures in (1) above. Click the History hyperlink to view any associated HISTORY for the account. Click the Add History option from the Processing Menu to add a history item. The screen will automatically populate the TIN, MFT, PERIOD ENDING and DATE OF ENTRY fields. Required fields are as follows:

• History—comments about the action being taken on the account.

• Click the Submit button to commit the entry.

• To ADD additional information, Click the Add History option from the Processing menu and repeat the process.

(1) The Block Control is the input of Form 813 by the RACS function into the ANMF system. It contains the item count of documents in a block of work and the debit and credit amount for that block. All work entered into the ANMF system must have a Form 813 prepared and this information must be input through the Form 813 Block Control screen. Only the Journal role can add and make updates to the block control screen.

(2) Select the Add Block Control option from the Processing menu. The FORM 813 BLOCK CONTROL SCREEN will appear and default to the ADD mode.

1. All fields are required. The Input Date field is generated. Input the Form 813 date or the 23C date, if different, as the Transaction Date.

2. Click the Submit button to commit the entry.

3. Click the Add Block Control button to enter additional information and then click the Submit button upon completion of each block entered.

4. When all blocks of work are entered, click the Logout button or use the menu drop-downs to perform other actions.