25.15.15. Mirror Modules for Requests for Relief from Joint and Several Liability

(1) The purpose of mirroring a joint Master File Tax (MFT) 30 module into two MFT 31 modules, is to reflect each individual's joint tax liability in separate accounts. It is important to remember that each spouse’s collection statute expiration date (CSED), refund statute expiration date (RSED) and assessment statute expiration date (ASED) flow from activity on the joint MFT 30 account, and are often different for each spouse. There are events that post on the joint MFT 30 account that can affect one of these statute dates for one spouse but not the other.

(2) Mirror modules can be created by Innocent Spouse, Bankruptcy, Installment Agreements, Offer in Compromise, and Taxpayer Advocate Service. Examination and Appeals may also mirror accounts, but normally create MFT 31 accounts for separate spousal assessments and liabilities without using the mirroring process, since those MFT 31 accounts reflect each taxpayers individual liability. There are times when the joint account does not need to be replicated on the MFT 31 of one or either spouse.

(3) When it is necessary to correct an account problem, make exam adjustments or process joint amended returns on a mirrored account, the appropriate adjustment to one or both MFT 31 accounts must be determined based on the facts and circumstances.

(4) Tax adjustments input after the account is mirrored are not systemically mirrored to the spouse's account, however, adjustments to refundable credits and withholding do mirror. See IRM 25.15.15.5.2, Mirrored Payments and Credits, for a list of credit and payment codes that will mirror.

(5) Information input to MFT 31 is not transmitted to the Social Security Administration (SSA). Do not input item reference numbers to change self employment tax (889), self employment income (878/879) or medicare income (895/896) to MFT 31 accounts. Input the necessary adjustment, without the reference numbers, to the MFT 31 account(s). Changes to self employment tax, self employment income, and medicare income must be input to MFT 30. Input transaction code (TC) 290 for 0.00, the appropriate item reference numbers, reason codes and hold code to the joint MFT 30 account.

(6) From cycle 4 of 2005 until January 13, 2016, CCISO mirrored joint accounts for every request for innocent spouse relief received for the joint tax years indicated, the only exceptions being account problems that prevented mirroring. Beginning January 13, 2016, CCISO no longer mirrors all accounts upon receipt of a request for innocent spouse relief. Mirroring only occurs upon a determination of full or partial relief per IRM 25.15.18.5.2.11(6), Account Management Services (AMS).

(1) IRC 6015, Relief from joint and several liability on joint return.

(2) CFR 1.6015, code of Federal Regulations guidance on requests for relief from joint and several liability, and related proposed regulations, 80FR 72649-01 issued November 20, 2015.

(1) The Director, Exam - Field and Campus Policy (formerly known as the Director, Examination/AUR Policy), reports to the Director, Headquarters Examination, and is responsible for the delivery of policy and guidance that impacts the field and campus examination process. See IRM 1.1.16.3.5.1, Exam/AUR Policy, for additional information.

(2) Campus Exam and Field Support (formerly known as Campus-Exam Processing and Special Programs Policy), which is under the Director, Exam - Field and Campus Policy, is the group responsible for providing Servicewide policy guidance on compliance processes that relate to campus examination operations, and support Field Exam and Specialty programs in SB/SE. See IRM 1.1.16.3.5.1.5, Campus - Exam Processing and Special Programs Policy, for additional information.

(3) Employees who work in CCISO are responsible for compliance processes related to requests for innocent spouse relief and mirroring accounts per the guidelines in IRM 25.15.18.5.2.11(6), Account Management Services (AMS).

(4) Management officials in CCISO oversee employees to ensure mirroring is accomplished when appropriate.

(5) Employees should be aware that taxpayers have the right to receive assistance from the Taxpayer Advocate Service if they meet certain criteria. See IRM 25.15.1.1.3 for additional information.

(1) The following is a list of terms used in this IRM section:

(1) The following table lists commonly used acronyms and their definitions used throughout this IRM:

(1) IRM 25.15.9, Account Processing of Requests for Relief from Joint and Several Liability.

(2) IRM 25.15.14, Innocent Spouse Tracking System .

(3) IRM 25.15.18, Innocent Spouse Relief Processing Procedures.

(4) IRM 25.15.19, Non-Qualifying Claims & Complex Account Issues.

(1) Open AIMS: Do not mirror these modules. See IRM 25.15.18.5.1.5, Audit Information Management System (AIMS), for more information.

(2) Open OIC:

• Modules containing an open TC 480 (-Y freeze) indicate a processable pending OIC and require coordination with the OIC area. See IRM 25.15.7.4.4, Offer In Compromise (OIC), for more information.

• Modules containing an open TC 780 (-Y freeze) require special procedures. See IRM 25.15.7.4.4, Offer in Compromise, for more information. Note in the upper right corner of the ISTSR Input Record "Not mirrored/TC 780."

(3) Open Bankruptcy: Modules containing an open bankruptcy for the NRS, TC 520 with closing codes 60-67, 81, 83, or 85-89 will not be mirrored. Continue screening. Note in the upper right corner of the ISTSR Input Record "Not mirrored/bankruptcy." See IRM 25.15.18.5.1.8, Open Bankruptcy, Collection Due Process (CDP), or Open Litigation Cases, for more information.

(4) There are some situations that prevent mirroring of modules. The modules which can’t be mirrored will have to be transferred to the MFT 31 or Non-Master File (NMF) account of the NRS. See IRM 25.15.9.1.19, Form 12810 - Special Considerations, for more information. The situations preventing mirroring and requiring transfer to MFT 31 or NMF of NRS are:

1. If the primary or secondary taxpayer has an Internal Revenue Service Number (IRSN), Individual Taxpayer Identification Number (ITIN) or Adoption Taxpayer Identification Number (ATIN).

   Exception: ITINs with the 4th and 5th digits with the following ranges can be mirrored: 70-88, 90-92 and 94-98.

2. Do not mirror or attempt to validate a TIN if either taxpayer has an invalid TIN because the taxpayer did not update their name with SSA. If the case is fully or partially allowed, send case to the Processing Team when you are ready to close the case. If case is fully or partially allowed, the module will be transferred to NMF. Indicate "Invalid TIN" on non-mirrored ISOAR. If case is disallowed, input TC 290 .00 on MFT 30 modules.

   Caution: There might not be an * behind the TIN indicating that it is invalid. If the name control on IDRS isn't listed in INOLES category IMF name control or SSA name control, it is considered an invalid TIN.

3. Secondary taxpayer is deceased.

4. MFT 31 transactions were already generated, for example, TC 971 AC 100, AC 102, AC 103, AC 104, etc. was previously input to generate MFT 31.

5. Any request for innocent spouse relief with a Criminal Investigation (CI) freeze (-Z/Z-) requires contact with CI to determine if the taxpayers can be contacted. If CI agrees contact with the taxpayers can be made, continue screening but do not mirror the module. Note on Innocent Spouse Tracking System Record (ISTSR) Input Record the module will not be mirrored.

6. If unable to resolve the credit balance, see IRM 25.15.15.9, Resolving Credit Balance.

(5) If the MFT 30 account balance is zero, further investigation is needed to determine whether the account should be mirrored. For example, do not mirror if full relief is granted under 6015(c) and the account is full paid by RS refund offset.

(1) Modules requiring additional actions prior to mirroring are:

1. Modules with a credit balance. The credit balance must be resolved prior to mirroring the module. See IRM 25.15.15.9, Resolving Credit Balance.

2. Modules with an unresolved unpostable condition. The unpostable condition must be resolved prior to mirroring the module. IRM 25.15.15.8, Resolving Mirroring Unpostable Transaction Codes.

(1) When relief has been allowed in full and there is no refund to be issued, follow the procedures in IRM 25.15.18.5.2.13, Fully Allowed Requests, to prepare the case for further processing and closure.

(1) When relief has been allowed in full and there is a refund to be issued, follow the procedures in IRM 25.15.18.5.2.13, Fully Allowed Requests, to prepare the case for further processing and closure.

(1) When relief has been allowed in part but the Full Scope Technician can determine there are enough credits and payments to fully satisfy the RS’s liability, the case will be closed in Full Scope.

(2) Follow the procedures in IRM 25.15.18.5.2.14, Partially Allowed Relief, to prepare the case for the Processing Team.

(1) When relief has been partially allowed, Full Scope will mirror the account if no mirroring exceptions are applicable. The Processing Team will make adjustments to the RS’s MFT 31 module as needed for amounts the RS is no longer responsible for. Full Scope will follow the procedures in IRM 25.15.18.5.2.14, Partially Allowed Relief to prepare the case for the Processing Team.

(1) When relief has been disallowed, Full Scope will close the case by following the procedures in IRM 25.15.18.5.2.15, Relief Disallowed. Do not mirror.

(1) If it is necessary to manually input the transactions to mirror the modules (i.e., the primary taxpayer is deceased and the mail filing requirement (MFR) is 08 or AMS is down), the entire mirroring process takes 4 to 6 weeks.

(2) Input TC 971 AC 065 with the cross-reference TIN of the RS unless the RS is the primary taxpayer.

(3) Input TC 971 AC 104 with the cross-reference TIN for the primary spouse.

(4) Input TC 971 AC 104 with the cross-reference TIN for the secondary spouse.

(5) Input TC 971 AC 145 with a posting delay code (PDC) of 1. This creates the mirror modules for each spouse on MFT 31:

• The TC 971 AC 145 input on the MFT 30 account generates a TC 400 on the MFT 30 account and copies all transactions on the MFT 30 account to the two MFT 31 accounts.

• An M- Freeze, Account Transfer Out Freeze, is generated on all three accounts.

• Credits are generated to all three accounts, making them appear to be in zero balance.

  Caution: Do not erroneously advise the taxpayer that the account is full paid. The balance due will be re-established when the M- freeze is released.

(6) Input TC 131 with a PDC of 4 on the NRS's IDRS command code (CC) ENMOD.

(7) A TC 370 will systemically generate to both MFT 31 mirror modules. The TC 370 on the primary TIN will have a document locator number (DLN) of NN251999950XXY. The TC 370 on the secondary TIN will have a DLN of NN251999000XXY. The table below defines what the digits of the DLN mean

(8) The MFT 30 and both MFT 31 modules will have a posted TC 400 at this point. All three modules will be in zero balance. The TC 400s generate an M- freeze code so the modules are restricted from any further action unless a TC 402 is input to reverse the TC 400.

(9) Input TC 972 AC 145 with a PDC of 3 on the MFT 30 and both MFT 31 modules. Once posted the M- freeze is released, TC 402 is generated to debit each module, and it generates a TC 971 AC 132 on the MFT 30.

(10) TC 972 AC 132 generates TC 604 credit to zero balance the MFT 30 account. The TC 604 will have a unique Julian date of 996.

(11) Input TC 972 AC 065 with a PDC of 4 on the MFT 30 and the NRS's MFT 31 module.

(12) Each of these transactions is input separately via the IDRS CC REQ77. Use the claim received date as the transaction date for each transaction.

(13) A TC 971 AC 110 with a Julian date of 999 is systemically generated in each MFT 31 module with the cross-reference TIN of the other spouse. This causes the two MFT 31 modules to point to each other. Payments posted to one MFT 31 module should be systemically duplicated as a credit on the other MFT 31 module as long as the TC 971 AC 110 transactions are not reversed or there is a designated payment code of 31. The cross-reference payment will be identified by TC 290 of 0.00 and TC 766 $$$ credit reference number (CRN) TC 337. The credit reduces the module balance but is not refundable.

(1) When TC 971 AC 104 for both taxpayers are posted to the MFT 30 module, but mirroring failed and it can't be corrected, you must input a TC 972 AC 104 for both taxpayers back on the MFT 30 module. This leaves an audit trail showing mirroring was attempted but failed and can't be corrected.

(2) If a case could not be mirrored because it met one of the exceptions for mirroring, but no longer meets that exception and the case is being disallowed, you do not need to mirror it.

(3) Create the MFT 31 account of the NRS by input of TC 971 AC 103, cross-referencing the NRS’s SSN, on the MFT 30, then request transfer of the joint MFT 30 liability to the MFT 31 of the NRS by completing an ISOAR.

(1) As recently as 2015, deficiency assessments sometimes were made on joint accounts based on one signature on a waiver of assessment form if certain criteria were met. This procedure is no longer allowed. Some of these erroneous assessments against the non-signing spouse cannot be reassessed correctly and must be abated. These cases are referred to as "Barred Statute One Signature (BSOS)". These barred statutes are attributable to a policy decision and not to any employee actions or lack of actions. See IRM 25.15.19.3.1, Assessment Based on One Signature - Barred Statute One signature (BSOS), for more information.

(2) If an assessment based on one signature is present, the case will be referred to the Technical Team and closed by the Financial Specialist according to IRM 25.15.19.3.1.

(1) Processors follow procedures in IRM 25.15.9.3.2.1, Partially Allowed Claims - Mirrored, for processing of partially allowed relief claims on mirrored accounts.

(1) Any payment or credit without a designated payment code of 31 posting to a MFT 31 mirror module with an unreversed TC 971 AC 110 will be systemically cross-referenced to the related mirror module.

(2) Credits and payments transferred in or out of the module should be credited or debited, as appropriate, on the cross-reference module systemically.

(3) The mirrored credit or debit should post systemically to the cross-reference spouse’s MFT 31 mirror module as an adjustment. See below for an example of how this works.

• Credit - TC 290 .00, TC 766 $XXX.00 CRN 337

• Debit - TC 290. 00, TC 767 $XXX.00, CRN 337

• The transaction date will match the payment date on the cross-reference MFT 31 module.

(4) Payments posting to one MFT 31 module will not mirror to the cross-reference MFT 31 module for one cycle. TC 706 takes two cycles to mirror to the cross-reference MFT 31 module.

(5) The TC 971 AC 110 should remain on both taxpayers’ MFT 31 mirror modules until one of the modules reach zero or credit balance. Once either of the modules reach zero balance, both TC 971 AC 110 transactions should be reversed using TC 972 AC 110 and the appropriate cross-reference TIN.

(1) This information now resides in IRM 25.15.9.5.6.1, Manual Refund of Transaction Code (TC) 670 Payments.

(1) On a fully allowed claim where a TC 971 AC 131 will be input after the credit transfer, complete the credit transfer and debit the cross-reference MFT 31 at the same time. Reverse the TC 971 AC 110 on both taxpayers' MFT 31 accounts to stop any further mirroring. Close the case following the steps in IRM 25.15.9.3.1.1, Mirrored - Stages 12-30.

(1) Listed below are the most common mirroring transaction codes that go unpostable, and procedures on how to correct them.

(2) TC 971 AC 104

1. Check for exceptions to mirroring, -L, -V, -W, -Z or Z- freezes on the IDRS CC TXMOD, and previous TC 971 AC 10X prior to 2005, etc.

2. Check IDRS CC IMFOLT and look at the name line and secondary spouse’s TIN, follow procedures on exceptions to mirroring if invalid secondary TIN. If secondary spouse’s TIN is missing, input TIN on IDRS CC ENREQ and wait to see if it is valid before mirroring. Look for errors with the name line, e.g., spacing. Correct the name line prior to mirroring.

(3) TC 971 AC 065, TC 972 AC 065, TC 971 AC 110, TC 972 AC 110, TC 971 AC 145, and TC 972 AC 145:

1. Ensure both TC 971 AC 104s have posted.

   Reminder: A TC 971 AC 104 must be posted for the primary and secondary taxpayer.

2. Look at posting cycle of TC 402 and compare with your transaction code. You may need to update IDRS CC UPTIN for the cycle the transaction unposted.

3. Look for possible invalid secondary TIN that was validated. This can be identified by SSA name controls not matching the current name control on IDRS CC INOLES. Nothing will post after a TC 400, if invalid. Stop trying to mirror. Confer with your lead for resolution.

(4) TC 971 AC 131 will not post if there is no balance due or if there is no TC 971 AC 065 posted. It may be necessary to re-input TC 971 AC 065, then input TC 971 AC 131 with a PDC of 1 and a TC 972 AC 065 with a PDC of 2.

(5) TC 972 AC 065 may have already posted. If there is no open L- freeze on the account, the TC 972 AC 065 will not post. Ensure there is no data input error and the XREF TIN is correct.

(6) See the table below for common unpostable codes for mirroring, the explanation and the resolution: